Importance of construction Quality of completed pro is highly dependent on the workmanship and management of construction.

Quality depend on completeness of contract document and 3 factors, labors who produce work, field supervisor who superivise the work, quality of material. Majority of total project budget and schedule is expended during construction. Cost and time required to build is always higher than it required to design. Owner need project at earliest possible date, delay can cause problems. Risk Assumption scope-no error, budget-acceptable, reasonable profit, schedule-reasonable Condition that alter budget schedule changes by owner, modification of design, differing site condition. To reduce these condition there should be a reasonable contigency to allow variation. Sufficient time given to contractor Condition that disrupt flow of work weather, delivery of material, clarification of question related to design. Contractor must plan and anticipate the requirement of project and develop a schedule to allow time variation Project manager must be alert to those situation, continually plan, alter and coordinate the project. Fixed price contractor Lumpsum contract fix cost, complete set of plans and specification, contractor entilted compensation for any changes,changes made during construction costly, reduce cost by minimize clients changes, schedule rate is included Unit price constract contractor submit cost per unit work, quantity or work yet to be determined, completed specification and design, errors estimation is costly Cost reimbursable contract require extensive monitoring of material deliveries and measurement of work, suitable for client that need flexiblity of modifying project, cost plus a percentage of fixed fee, incentive, used when construction has to start early. Design bid build project delivery traditional method, design work completed before tendering, cost is primary schedule is secondary scope well defined, designer and contractor work for client, designer paid based on pre-arranged fee, contractor paid based on lump sum, longer time required for completing design Design build project delivery chosen to compress the time to complete the project, construction start before all design is completed, completion time reduced, client has time to make changes before work are done, for project when schedule is primary, cost is secondary, scope is not well defined. Agency CM CM as agency and work for a fee, CM is a firm outside the owner's organization, exercise no design and construction work, assist is selecting designer and contractor Corporate CM CM is from owner's organization, scope of work similar to agency CM, design and cons done by 3rd parties Contractor CM from construction firm, focus more on construction, hire design work. Designer CM from design firm, Bridging Project Delivery Method hybrid method of project delivery method for building type projects, contract documents prepared by owner's designer, define functional use and appearance of project, details of construction prepared by contractor, final design and construction drawing done by contractor Fast track project used for project that need to be completed in earliest possible time, as soon as design complete construction work start, performed under D/B or CM pd, used by the request of owner

Turn Key Project used for project that are designed built and put into opeartion before it is turned over to owner, typially are manufacturing or process plant type facilities, BOT, the contractor may secure the land perform all aspect of design manage construction staff and train personnel transfer the project to owner Keys to the successful project a good field construction rep must be present that rep the interest of owner, the field construction rep's responsibility and authority must be defined clearly to all parties, good and detail construction schedule must be developed and used by contractor, not the owner, the owner only define the start/end date of project, develop a schedule to guide numerous construction operation, develop a good project control system to monitor measure and evaluate the cost and schedule, good communication reduce misunderstanding. Relationship with contractors must be fair, consistent, polite and firm Quality control quality of construction work is depends on control of construction which is the resp of constructor, right attitude, traditional aceptance of construction work involve 100% visual inspection, sample is tested to determine the quality of material, if test within stated tolerance the material is passed, engineering judgement is applied to reach a decision wheter or the material should be tested purpose is to ensure that the work is accomplised in accordance with the requirement, contractor establish a quality control plan, maintain job surveillance system, perform test and keep record, owner monitor the contractor's quality control plan and make spot check inspection. Direct Negotiation held to openly discuss and resolve the conflict, no other parties involved, quickest and most economical method without legal format, negotiator for each party must have authority to act for his company, success of negotiation depends on willingness of dispute parties to negotiate a good faith Mediation an independent objective person is used to assist in resolving dispute, mediation has no authority to issue final decision, mediator serve as catalyst to explore althenative solution to gather facts and clarify discrepancies persude the parties to adopt flexibilities Arbitration arbitrator has authority to issue final binding decision, cannot be appealed, submission a dispute to a mutually agreed third party who decision is legally binding and enforceable, arbitration clause is included in the contract, 5 steps: agreement to arbitrate, selection of arbitrator, preparation of hearing, hearing of the dispute and award. Faster than litigation Litigation resolution of dispute by lawsuits resolved in the legal formality of court system, requires a long period of time, higher legal cost, legal counsels are used to represent the interests of parties, final resolution is determined by the court of law. Management of changes management of changes is enhanced if changes can be predicted, request a list of anticipated change orders on monthly basis, PM anticipate the changes evaluate the need of change, candid discussion of the merits of changes may result in no changes, there must be through evaluation of all aspects of a change, changes should be thoroughly evaluated, clearly defined, agreed by all parties and implemented in the most efficient manner. Resource management poor work from poor instruction, late delivery of material, unavailable tools or lack of leadership there must be well defined work plan that clearly defines the work that must be accomplished and work that is planned, this planned must be communicated, selection of equipment on a project must be a part of the plan and schedule, pm is responsible to develop an equipment plan, adequate consideration must be given to the down time and maintenance of equipment, material management system includes the major function of identifying, acquiring, storing, distributing and disposing of material utilization of people is enhanced by ensuring that qualitymaterial are available, timing of delivery of material is important, contractor responsible to insure a well defined material management system and material management plan is developed, there must be a well defined scope of work, cost and schedule for each subcontractor.