BATANGAS STATE UNIVERSITY

COLLEGE OF ENGINEERING, ARCHITECTURE AND FINE ARTS

BACHELOR OF SCIENCE IN CIVIL ENGINEERING
2nd Semester, SY. 2020-2021

Module No. 1
CE 412: CONSTRUCTION METHODS AND PROJECT MANAGEMENT:

ORGANIZATION AND
MANAGEMENT
BY: ENGR. RYAN M. MACARAIG
 LESSON OUTLINE
1. Introduction 12. Executive Leadership
2. What is Organization? 13. Delegation of Authority
3. The Structural 14. Responsibility and
Organization Authority defined
4. Principles of Good 15. Personnel Coordination
Organization 16. Scientific Management
5. Organization and Business 17. Humanistic Management
6. What is Management? 18. Directing People on the
7. Management Concept Job
8. Management Structures 19. How to Give Effective
9. Management Control Order
10. The Manager 20. The Knowledge Worker
11. Executive Functions
 REFERENCES:
- Project Construction Management by Max B.
Fajardo, Jr. 2000
- A Guide to the Project Management Body of
Knowledge (PMBOK), 5th Edition
INTRODUCTION
 INTRODUCTION
- The driving force behind every organization is its
management team. Different teams operate in different
ways. There is no universal accurate management to
define the one that is best.

- The company may have the most modern plant and

equipment, a highly skilled and experienced labor force,
ample materials and financial resources, yet become
failure in its purpose of making profit. There may be many
reasons and circumstances responsible behind this failure,
but the most frequent reason is poor management.
 WHAT IS
ORGANIZATION?
 WHAT IS ORGANIZATION?

- ORGANIZATION is a group of
individuals who are cooperating willingly and
effectively for a common goal. It is nothing
more than the mechanism by which
administration directs, coordinates and
controls its business. It is indeed, the very
foundation of administration. To be specific,
organization seeks to know who is to do and
what is to be done.
THE STUCTURAL
ORGANIZATION
 THE STRUCTURAL ORGANIZATION

- STRUCTURAL ORGANIZATION is the formal

arrangements that are established to coordinate
all activities in order to implement a given strategy.

- Thus, structure reflects the anatomy of a firm

through its focus on the mechanisms and processes
that link both vertically and horizontally the various
parts of an organization.
 THE STRUCTURAL ORGANIZATION

The Structural Elements of an Organization

are:

1. Men / Manpower
2. Materials
3. Machine
4. Methods
5. Money
 THE STRUCTURAL ORGANIZATION

The Structural Elements of an Organization are:

1. Men / Manpower
2. Materials
3. Machine
4. Methods
5. Money
6. Moment
7. Management
8. Mother Nature
 THE STRUCTURAL ORGANIZATION

The Major elements of Organizational

Structures are:

1. Distribution of functions
2. Vertical and horizontal authority
relationships
3. Communication and decision processes
4. Policies
PRINCIPLES OF GOOD
ORGANIZATION
 PRINCIPLES OF GOOD ORGANIZATION
Business organization has conditions peculiar to itself. A set of rules
cannot be laid down that would be applicable to organization of all
enterprises. However, certain underlying principles can be given and
among them are:

1. Principle of Objective
2. Analysis
3. Simplicity
4. Functionalism
5. Departmentalization
6. Centralization of Authority and Responsibility
7. Limited Span of Control
ORGANIZATION AND
BUSINESS
 ORGANIZATION AND BUSINESS

Business had been defined as an

organization of people with varied skills,
which uses capital and talents to produce
goods or services, which can be
considered as; the system through which
economic activity was organized by those
who seek to make profit.
 ORGANIZATION AND BUSINESS

Experience proved that higher

accomplishment is dependent upon the
interest and willing cooperation of both
the project supervisor and the workers.
 WHAT IS
MANAGEMENT?
 WHAT IS MANAGEMENT?

• Management is a process.

• Management is a function.
MANAGEMENT
CONCEPT
 MANAGEMENT CONCEPT

• Management to be effective must be

systematic.

• Management to be successful must be

scientific.

• Management must be humanistic.

MANAGEMENT
STRUCTURES
 MANAGEMENT STRUCTURES

The primary objective of management

structure is to facilitate the coordination
and control over the activities of the
company. No two companies are
identical. Thus, each company should be
studied in terms of its purpose, size and the
nature of its business. In any sizeable
organization, there should be a delegation
of responsibility because:
 MANAGEMENT STRUCTURES

• The primary objective of management

structure is to facilitate the coordination
and control over the activities of the
company. No two companies are
identical. Thus, each company should
be studied in terms of its purpose, size
and the nature of its business. In any
sizeable organization, there should be a
delegation of responsibility because:
 MANAGEMENT STRUCTURES

1. It is physically impossible for one person

to control effectively all the works of a
large organization through personal
contact with it. The manager must rely
on other persons to be responsible for
designated phases of the work.
 MANAGEMENT STRUCTURES

2. No person possesses the skills necessary

to guide personally the highly specialized
activities in a modern construction
business. An expert on every line of
activities must be responsible of such
department. An architect assumed the
responsibility of planning works, Engineer
for civil works, electrical engineer for
electrical works etc.
 MANAGEMENT STRUCTURES
Line of Responsibility works in two ways:

1. From the executive to the superior down to the

workers under his jurisdiction and conversely
2. From the workers to those who are in authority
over him

The line of authority must be kept clear at all times in

order to facilitate the ready flow of communications
and control.
MANAGEMENT
CONTROL
 MANAGEMENT CONTROL

CONTROL as a verb is defined by Webster’s

new college dictionary as “to check or
regulate… to keep within the limits.” Yet,
managerial control carries with it a much
broader interpretation to apply; not only to
check nor command, but also the whip.
Not only to regulate, but also to stimulate.
 MANAGEMENT CONTROL

The success or failure of any enterprise

depends greatly upon the manager.

To have effective control, the manager

must know by heart the reasons why his
business or enterprise exists.
 MANAGEMENT CONTROL
EFFECTIVE COMMUNICATION SYSTEM

To the manager, information has four purposes

to serve:

1. It must answer the questions what are we

going to do?
2. How well are we doing?
3. How can we do better?
4. Does it serve as an aid to coordination?
THE MANAGER
 THE MANAGER

The MANAGER as executive is the most

difficult and with the highest degree of
responsibility.

The nature of his job is varied from the

simplest to the most complicated one.
 THE MANAGER
QUALITY OF AN EFECTIVE MANAGER:

An effective manager must have the following qualities:

1. He studies, analyzes and dissects his job.
2. He knows how to delegate the administrative details of
his job.
3. He is willing to delegate to and share with his
subordinates the credit of a job well done.
4. He trains and develops his men to prepare them to
assume delegated work.
5. He knows how to control and plan his time.
6. He institutes controls for effective performance.
EXECUTIVE
FUNCTIONS
 EXECUTIVE FUNCTIONS

Managers do not do the actual work of

the organization. His specific functions are:

1. To PLAN
2. To ORGANIZE
3. To DIRECT
4. To CONTROL
 EXECUTIVE FUNCTIONS

PLANNING is the job of making things

happen that would otherwise not occur.

Plans may be classified as:

1. Objective of the enterprise
2. Policies
3. Procedures
4. Budgets and
5. Programs
 EXECUTIVE FUNCTIONS
ORGANIZING

A good organizational structure does not guarantee

good performance, but a poor one makes good
performance impossible, either the caliber of the
individual managers notwithstanding.

Improving the organization will always improve

performance. In short, a good organization structure
is necessary though not a sufficient condition for
good performance.
 EXECUTIVE FUNCTIONS
DIRECTING

Directing is guiding and overseeing subordinates.

- Leadership

- Coordination
 EXECUTIVE FUNCTIONS
CONTROL

It is defined as the process by which an

executive gets performance of his subordinates
to correspond as closely as possible to chosen
plans, orders, objectives, or policies.
 EXECUTIVE
LEADERSHIP
DELEGATION OF
AUTHORITY
RESPONSIBILITY AND
AUTHORITY DEFINED
 PERSONNEL
COORDINATION
 PERSONNEL COORDINATION
SIGNIFICANT FACTORS

1. The need for close supervisions as judges by the skill

of the workers and difficulty of the operations.

2. The availability of experienced and trustworthy

personnel capable of acting in supervisory
capacity.
 SCIENTIFIC
MANAGEMENT
 PERSONNEL COORDINATION
SCIENTIFIC OR TASK MANAGEMENT THEORY

1. Division of Labor and Specialization

2. Unity of command and centralization of decision

making

3. One way authority

4. Narrow span of control

 HUMANISTIC
MANAGEMENT
 HUMANISTIC MANAGEMENT
INDISPENSABLE FACTORS IN THE SUCCESS OF
ENTERPRISE MANAGEMENT:

1. A goal

2. An ideal

3. A vision
DIRECTING PEOPLE
ON THE JOB
 DIRECTING PEOPLE ON THE JOB
An ORDER is a specific message conveyed by a
leader to a follower for the purpose of influencing the
follower to take desired action. Orders are either
verbal or written.

FOUR DISTINCT CATEGORIES OF ORDER

1. A request
2. A suggestion
3. Asking for volunteers
4. A direct order
 HOW TO GIVE
EFFECTIVE ORDER
 HOW TO GIVE EFFECTIVE ORDERS

1. Obtain favorable attention.

2. Make it simple and specific.
3. Phrase it tactfully for best results.
4. Explain why it should be done your way.
5. Let him have it.
6. Note his readiness to act.
7. Give him faith in his ability to carry it out.
THE KNOWLEDGE
WORKER
END OF MODULE 1
THANK YOU
 BATANGAS STATE UNIVERSITY
COLLEGE OF ENGINEERING, ARCHITECTURE AND FINE ARTS
BACHELOR OF SCIENCE IN CIVIL ENGINEERING
2nd Semester, SY. 2020-2021

Module No. 2
CE 412: CONSTRUCTION METHODS AND PROJECT MANAGEMENT:

DECISION MAKING
BY: ENGR. RYAN M. MACARAIG
 LESSON OUTLINE
1. Introduction 7. Budgeting the Time
2. Effective Decisions 8. First Things First
3. The Effective 9. Employee Discipline
Managers 10. Principles of
4. Decision Process Discipline
5. Reasons for Poor
Decisions
6. Elements of Decision
Process
 REFERENCES:
- Project Construction Management by Max B.
Fajardo, Jr. 2000
- A Guide to the Project Management Body of
Knowledge (PMBOK), 5th Edition
INTRODUCTION
 INTRODUCTION
- Decision making is the fundamental process of
management. Most of the efforts of managers are related
to this process. Unfortunately, decisions do not always
turned out as planned.

- Who make decisions? Only executive make decisions. This

is by virtue of his position or authority. Decision making is
only one of manager’s tasks. It is but a small fraction of his
time. But to make decisions is his specific work.
EFFECTIVE DECISIONS
 EFFECTIVE DECISIONS
What is a DECISION?

• Decision is a judgment.

• It is a choice between alternatives

• It is rarely a choice between right of wrong.

• It is at best a choice between almost right and probably

wrong.
 EFFECTIVE DECISIONS
There is one final question the effective decision maker asks:

IS THE DECISION REALLY NECESSARY?

One alternative is always the alternative of doing nothing.

THE EFFECTIVE
MANAGERS
 THE EFFECTIVE MANAGERS

Effective managers are expected to make

effective decisions. Decisions with
significant impact on the entire
organization, its performance and results,
defines the manager.
 THE EFFECTIVE MANAGERS

Effective decision maker constantly monitors the

result of the decision to ascertain that the desired
objectives have been achieved. If they have not, the
decision maker may have to restart the entire
process, or perhaps a review of the situation may
reveal the following:

1. An error in the actual implementation

2. An error in calculation
DECISION PROCESS
 DECISION PROCESS
Effective decisions are made through a systematic process
defining clearly the elements in a distinct sequence of steps.
Most successful decision making follows a process that
consist of the following steps:

1. Identify the problem

2. Specify objectives and the decision criteria
3. Develop alternatives
4. Analyze and compare alternatives
5. Select the best alternative
6. Implement the chosen alternative
7. Monitor the results to ensure the desired results are
achieved.
REASONS FOR POOR
DECISIONS
 REASONS FOR POOR DECISIONS

Sometimes despite the best efforts of the manager, a

decision turns out to be poor due to unforeseeable
circumstances. Although such occurrences are not
very common, but more often, failure can be traced
on some combination of the following reasons:

1. Errors made in the decision process

2. Bounded rationality
3. Sub-optimism
 ELEMENTS OF
DECISION PROCESS
 ELEMENTS OF DECISION PROCESS
There are five elements in the process of decision making.

1. See if the problem was generic and could only be solved

through a decision established by a rule, or principle.
2. Define the specifications which the answer to the problem
had to satisfy, that is, of the boundary conditions.
3. The thinking through what is right, that is, the solution
which will satisfy the specifications before attention is
given to the compromises, adaptations, and concessions
needed to make the decision acceptable.
4. The building into the decision of the action to carry it out.
5. The feedback, which tests the validity and effectiveness of
the decision against the actual course of events.
BUDGETING THE TIME
 BUDGETING THE TIME

Effective manager know that time is the limiting

factor. He does not start with his work. He starts with
his time. And he does not start out with planning, but
start by finding out where his time will actually goes.

Our daily accomplishments are set by time – the

scarcest resource. In the process, we call
accomplishment as time.
FIRST THINGS FIRST
EMPLOYEE DISCIPLINE
 EMPLOYEE DISCIPLINE

Discipline is a means that

management uses to bring employees
behavior under control
 EMPLOYEE DISCIPLINE

Control within this context has three major

dimensions:

1. As a means of establishing awareness on the part

of the employees regarding the proper behavior,
attitude and conduct in their jobs.
2. As a means of establishing an atmosphere
conducive to working together efficiently.
3. As a means of correcting or reforming employees
who commit any infraction or violation of
company rules and regulations.
PRINCIPLES OF
DISCIPLINE
END OF MODULE 2
THANK YOU
CMPM CHAPTER 3.
Construction Pre- Planning
3.1 Planning
Planning is an art, and the art of planning exist only among human beings. This power to
be able to plan distinguishes man from the other members of the animal kingdom.
The environmental development through planning is a natural field for Architects as they
are in a better position because of their training and experience. However, for a good planning,
intelligence and experience are necessary. And for a plan to be successful, it must be prepared by
those were trained and qualified.
The pre-planning stage, establishes and determine the direction and success of any
construction project. Unfortunately, it seems that some engineers and constructors have not given
the pre-planning special emphasis despite their one direction of going there.
Past experience has proven that there is no short cuts to sound construction pre-planning.
There is no new procedure to replace the following four basic rules for any job.
1. The construction superintendent should be included in the consultation at the very
start of the planning stage. Do not just present him later the finished plan and say:
"here is the plan for you to implement.
2. Make a job breakdown into components. This will simplify the whole program.
3. Prepare a construction plan that will be consulted constantly. Do not just file it in a
drawer only to accumulate dust.
4. Take advantage of new tools, which have demonstrated in saving time, money or
confusion. For instance, a computer can be used to layout on one sheet a detailed
schedule according to number of days, crafts, man-hours, costs,procurement and
completion of a process.
For Whom and What are We Planning for?
1. We are planning for the owners of the company when we plan to achieve a profit by
operating at the minimum capacity, utilizing the available resources.
2. We are planning for the employees when we plan to create or maintain jobs.
Planning Functions has Four Different Dimensions, namely:
1. Planning is a philosophy
2. Planning is integration
3. Planning is a process
4. Planning is a collection of procedures.
 Planning is a philosophy. Looking ahead is a way of thinking, a concern about the future
effects of today's action. Planning involves a state of the mind that recognizes the need for
orderliness and the value of direction.
Individual planners may sway between optimism and pessimism, but they dare not stray
too far from reality
Planning is integration. Both long- and short-range plans provides a unified structure to
give purpose to the organizational units involved. Broader plans consider the client, the supplier
and other peripheral contact of the company.
Planning is a process. Goals and objectives are the most obvious consequence of the
planning process. A loose objective of survival or of making profit is a poor guideline clearly
inadequate for steering an enterprise. A winning plan includes:
1. The strategy that defines how much has to be done to achieve the objectives.
2. The sequence of events that satisfies those strategies and
3. The assignment that lead to the accomplishment of the events.
Planning is a collection of procedures. All companies make plans ahead to some extent
and apply their own methods of doing so. In small company, one person may do it all, but larger
companies have standard procedures for formulating and carrying out plans.
3-2 The Project Manager
The central figure in a project is the project manager. He bears the ultimate responsibility
for the success or failure of the project. His role in the construction is one of an organizers, a
person who is capable of working through others to accomplish
The objectives of the project. The job of project manager can be both difficult and
rewarding. However, the reward of the job of project manager comes
from:

1. The benefits of being associated with a successful project.

2. The personal satisfaction of seeing it through to its conclusion
3. The challenge of the job, and working with other people.

Project construction management differs much from management of more traditional

activities. It is a unique one-time operation with one major objective - to accomplish a specified
task in a limited time framework. The main feature in project construction is the Project Manager
who oversee a variety of operations that involves repetitive activities, and other various works.
 Project Manager must often function in an environment that is beset with uncertainties.
He has to coordinate and motivate people who sometimes owe their allegiance to other managers
in their functional areas.
There are people who work on a project that possesses specialized knowledge and skills that the
project manager does not have. Nevertheless, the project manager is expected to guide and
evaluate their respective works. He may not have the authority he needs to accomplish all the
objectives of the project, but instead, he relies on persuasion and cooperation of others to realize
the project goals.
Generally, construction projects have some elements in common. The problems of
planning and coordinating project activities can be quite formidable for large projects, which
typically have hundreds or even thousands of activities, that must be carefully planned and
monitored if the project is to proceed according to the following schedule at a reasonable cost.

1. Project goals must be established and priorities are set.

2. Different works must be identified and time estimate must be determined.
3. Resource requirement must be projected, and budget must be prepared.
4.Once underway, progress must be monitored to assure achievement of the goal.

The project manager's mission is to plan, coordinate, control and accomplish. His
achievement can probably be traced to his success in managing people. Similarly, people at
every tier of corporate hierarchy, exercise essentially the same management principles to lead
other people towards the accomplishment of organizational objectives.
Managerial competence is a function of a manager's character, knowledge, and
experience. These three ingredients interact to mold a particular style of management. Styles
may be altered or fashioned by education gained from formal training and work seasoning. An
advantage of studying management techniques is the opportunity it allows to explore and
develop managerial skills without suffering the consequences of trial and error learning.
3-3 The Worksheet
The initial move to get the project under way is for the Project Manager to convene a
preliminary discussion on the documents, and to gather more information as may be available at
the early stage. There should be additional and pre-planning information available such as, the
client's required operational date.
What the Project Manager needs to now are:
1. The logical construction sequence that must be followed.
2. The quantity and the delivery dates of various materials to be used.
3. How much and what kind of manpower will be needed.
4. When to start and complete the job on time.

The first step in construction pre-planning is to prepare a graph and plotting the
anticipated date of delivery of all major equipment at the site. The optimum time for each
construction activities could be analyzed. Severe craft peaks and uneconomical use of equipment
will appear on the projected graph, which could then be adjusted to prevent future conflicts in the
field.
By working backward from the expected completion date, the experienced project
manager can predict the latest possible starting date for any of the activities that make up the
whole construction project. The worksheet represents a plan of action presented graphically by a
critical sequence of functions of subsidiary activities contained within a compact period of time.
3-4 Timetable
The project manager should conduct one or more informal sessions with key personnel
assigned to the project such as:
1. The construction superintendent
2. Job buyer
3. Drafting room coordinator
4. Job expediter.
During the session, the preliminary construction program or work sheet is reviewed to
determine whether engineering work and procurement of materials can be accomplished at the
rate and in the sequence as programmed in the schedule.
The sequence of construction activities, which are related to optional early and late starts,
will serve as a running list of individual job components, with notations to work activities with
greater importance and priority over the others.
Specifications for equipment and materials, which are in the development, should be
processed according to their importance or urgency in the overall project. The design and
drafting effort can be organized, to produce those drawings that are necessary at the early stage
of the construction program for field installation or to complement an urgent purchase of
materials.
 At this early stage of construction development, it is essential and timely for the
procurement committee to place orders for long term delivery of items at an early phase of the
project. The relative urgency of the onsite receipt as scheduled, may be used in establishing a
shop fabrication schedule with the supplier.
One important function of the construction planner is the preparation of an accurate
manpower estimates assigned to each function This can be done on the basis of manpower
category of the works like: working on foundations and underground facilities or by craft such as
carpenters. tinsmith. plumber, electrician. laborers or by group methods, The manpower
distribution and classifications can be done in two ways: by manual or by the use of computer.
By manual method, it takes more time but results in a more accurate and realistic summary as an
anticipation of the need without reverting to an average manpower distribution.
On the other hand, manpower distribution by computer, lessen the engineers time but the
result is less realistic because it is applied on the average manpower loadings to the computer.
The manpower summary result will be lower than might be realistically anticipated. Where time
is available, the manual method prepared by an experienced engineer is preferred

In either case, what is needed is the rate of anticipated manpower expenditure on the
basis of work category or classification or on the basis of crafts. In addition, it is a worthwhile
instrument in establishing the limit extremes of manpower application to summarize the
manpower loading in two ways:

1. With all functions performed in their earliest position on the timetable.

2. With all functions performed in their latest starting position.

3-5 Project Engineer's Review

The Project Engineer must
1. Review the timetable thoroughly
2. Raise questions on its overall logic and workability
3. Offer constructive criticism on detailed work functions and interrelated
activities.
Invariably, this review will result in a minor revision of the schedule. After gathering
most of the detailed information and made part of the timetable, the entire program is broken
down into several component parts.
After the projects have been delineated on the timetable as a separate job with minor
qualifications, it can be considered as a project itself. As the project becomes an active
construction program in the field, its progress, man-hour utilization. Field labor expenditures,
quality and quantity of suspension, and major material status are all monitored and recorded at
the field and home office.

The manpower assignment for each activity on the timetable is then translated into a graphical
presentation, showing the anticipated manpower expenditures and the target progress of the work
in percentages
1.By graphical reporting, manpower and percentage accomplishment is easier to evaluate
showing the general direction and condition of the job.
2. Data are received by way of one-page weekly progress report and a weekly field
payroll report.
3. A field man-hour report is submitted every month

By close control and evaluation of field cost and man-hour expenditures it can easily detect the
following:
1. Possible budget man-hour overruns
2. Craft peaks
3. Weakness in supervision coverage
4. Inadequacy of tools and equipment

The manpower and "Percentage Complete" graph will indicate the possibility of
sustaining a successful rescue operation by keeping a constant watch and taking possible action
as soon as the program begins to lose ground. The graph indicates the necessity of having pre-
planned schedule to provide a basis for monitoring, assisting, controlling and adjusting a
program when it deviates from the prescribed path.
A daily look at the graph, alerts the Project Manager and his home office to the possible
need for a radical action such as:
1. Manpower reallocation for elaborate re-scheduling or
2. For a speedy economic analysis of the whole project to determine whether extra
manpower or two shift operation may be necessary.
A periodic visit to the construction site is necessary for the various members of the
central construction department staff to audit the program so that:
 1. A first-hand review of the progress is made and the general status of the work is
compared with the timetable and discussed with the key field supervisory staff.
2. Home office assistance is offered to the field superintendent in pushing particular
phases of the project that may be held up in such areas as drafting of procurement.
3. Suggestions are made and discussed with the field organizations as to how its
progress can be improved.

Discussions and review of construction problems at the site assures a clearer

understanding of the work status for the following actions
1. Alternate solutions may be reviewed
2. Exchanging ideas for a better solution
3. To implement results as agreed in the meeting
The site review, gives everyone an opportunity for a general discussion of ideas and
techniques on concurrent construction work. The best pre-planning approach requires a constant
attention to a construction project. Above all pre-planning should be flexible enough to give it a
chance to adjust quickly and radically at any time when it be necessary.
3-6 Preliminaries and Site Management
After a contract is awarded, the contractor has to:
I. Determine the key personnel to supervise the work
2. Make provisions for the equipment to be used.
3.Determine the location and methods of erecting temporary structures such as:
a. Job offices
b. Storage sheds
c. Workshops
d. Roadway, etc
e. Bank house for workers and facilities.

The layout of these structures should be planned carefully, in anticipation of its removal during
the excavation of the permanent works more particularly, the storage and its contents, which
might cause disorganization and delays.
The job should be adequate, but not excessively staffed, to ensure efficient execution of
the work. Large construction work needs competent foremen. The contractor must be selective in
sending men of proven ability and qualification to start the work even if they are replaced later
by selected personnel engaged locally
The construction site should be maintained in strict tidiness and in an orderly routine
because it has a psychological effect on the staff and workers, which promote conscientious
service. Remember that the owner would like to see the actual work getting under way in its
fullest operation and orderliness in carrying out the construction work, idle time and unnecessary
cost should be avoided. Time saving devices such as telephone, loudspeakers, signal posts,
traffic control, sign board location and other economy measures should be installed immediately
upon commencement of the work. Before the work get started, it should be first established from
which the buildings may be demarcated on the ground.
The excavator with his equipment should start cleaning, stripping and digging operations.
Material deliveries should also start as soon as possible and a labor force started the excavation
for the foundation work, etc. If all these operations get under way without undue delay, the job
will have a healthy aspect, high morale and satisfaction of all concerned from the owner to the
contractor and down to the lowly laborers.
The contractor should procure sufficient copies of the plan and specification to distribute
among his supervisory staff. This will thoroughly acquaint them with the details of the job.
Likewise, the sub-contractors and consultant should be furnished with the plans and
specifications so that, there is no excuse for mistake and delay on this account.

Preliminaries in Organizing a Construction Job

Project undergoes series of stages which includes:
I. Planning
2. Execution of major activities
3. Project phase out

Project construction life cycle requires various requirements such as:

1. The site must be found and boundaries relocated
2. Plan must be drawn.
3. Plan must be approved by the owner
4. Building permit must be secured
5. Succession of personnel follows
 Succession of personnel is the rotation of personnel who will be doing different kinds of
job according to their specialties.
For instance:
1. Those doing the site relocation and preparation, and laying of foundation.
2. Erecting the foundation and column, floor and roof framework.
3. Constructing walls and partitions
4. Plumbing and water supply connections including drainage system.
5. Mechanical equipment
6. Electrical and communication wiring system
7. Installation of kitchen, bathroom fixtures and appliances.
8 Interior finishing work
9. Doors and windows
10. Fainting and varnishing, and other finishing works.

The main objectives in the preliminaries of organizing a construction job are:

1. To secure the necessary licenses and building permits
2. Prepare a time and progress chart.
3. Have an access to the site or a temporary roadway.
4. Construction of boarding, fences, and temporary shed.
5. Construction of temporary field offices for the staff.
6. Arrangement for canteen facilities.
7. Cleaning and leveling the site,
8. Demolition of existing structures
9. Disposal of materials obtain from the demolition
10. Shoring to adjoining structures
11. Arrangement for temporary water and electric supply
12. Allotment and preparation of storage space for use of contractor and sub-contractors
13. Allotment of space for borrows pits or other sources of fill to be brought in.
14. Provision for drains and soak-ways.
15. General site problems including any special features.

Organization of the Work

Organization of the work, consist of making proper assignments and sequence of the
works in a systematic order aimed at making the best use of labor, materials and time. The
organization of the work is the responsibility of the contractor under the direction of the
supervising Architect or Engineer.

There are two independent but related spheres of control and responsibility that exist in
the project construction, namely
1. The owner is represented by his Architect or Engineer
2. The contractor
Each has their own duties to perform in the interest of their employer - the owner. Most
of their respective duties and responsibilities were stipulated and defined in the contract, and all
will be better exercised if each one appreciates the duty and responsibility of the other. The
contractor is generally responsible to the owner for the following duties;
1. Providing and making access roads with due regards to the convenience of construction.
2. Erection of site office in a central position to facilitate checking of all site activities.
3. Erection of store shed of adequate capacity to ensure;

a. Protection of materials against damage

b. Protection of materials against deterioration
C. Prevent materials from wastage and pilfering
4. Construction of temporary quarters and ancillaries for labor with due regard to site of works,
amenities and hygienic conditions.
3. Appointment of supervisory staff possessing technical
knowledge and capable of controlling the work and labor
6. Early arrangement for construction equipment
a. Scaffolding d. Ladders
b. Formwork e. Tools
C. Instruments and machinery with necessary screw. fuel and parts etc.

The Engineer or Architect on behalf of the owner is also responsible for the following duties.
1. As representative of the owner
a Act as interpreter of the plan
b as guardian and arbiter between the owner and contractor
2. Maintain site records and documents like:
a. Layout plans
b. Contract documents
c. Time and progress chart
d. Work diary
e. Contractor's order book
f. Records of tests
g Progress report
h Measurement book, etc.

3-7 Planning Program and Progress Chart

The most important part of the works organization are:
1. The preparation of a comprehensive time and progress chart for the execution of the work.
2. The periodic revision of the chart as circumstances demand, and the regular comparison of
progress chart made with the program.
The project manager is required to prepare an approved time and progress chart. which is
generally part of the main contract documents.
1. The time and progress char must show an analysis of the chief elements and types of
construction involved in the project.
2. The scheduled dates of commencement and completion of every stage of the main contract
and of sub-contracts.
Without proper program, the construction work can be disorderly managed, the time and
progress charts serve as the coordination and control of all the work under the different sub-
divisions of the contract. With this time and progress chart it is easy to pinpoint where the delay
has occurred, and who is responsible for the delay.
Likewise, because of a clear definition of the dates, all parties concerned have to assume
their tasks making much easier for the contractor to finish the job on time Besides of being the
standard requirement, the chart, automatically shows and offer the following information:
1. The sequence of operations
2. " The target time and date for their completion
3. The rate of which they must be carried out
4 The owner's staff and the contractor's staff should be familiar with the information
given in the chart and should constantly strive to carry out the work according to the
projected rate of accomplishment.
5. If some operations are to be done by sub-contractors, they should be notified in
advance and given a clear understanding of what exactly is expected from them.
6. The chart also tends to prevent changes in design and layout with consequent delays
and increased in cost. It also provides essential information regarding labor, materials
and plant requirements.
From this program, the owner can be furnished with particulars of the likely financial
requirements during the period of construction, and will be able to coordinate his program for
ringing the scheme into use.

3-8 Maintaining Time and Progress Chart

The making of time and progress chart is a matter of trial and error. It requires
consideration of alternative methods and the effect of each event, resulting in an orderly
arrangement of event and an ultimate savings of time and cost.
The chart should be flexible so as to permit modifications to meet unknown
contingencies that may arise. It will enable those in-charge of the work to see the effect of the
contingency. It will be on subsequent operations and to make the necessary adjustments to bring
the program back into line.
The chart is divided into many horizontal spaces as are required for the major operations
of the job. The vertical columns provide space for:
1. A description of the items
2, The target date for letting the sub-contract or purchase order.
3. Anticipated starting date, the expected completion date and sufficient number of monthly
columns to cover the total time for completion.
4. One or two extra columns for the possible over-run.
After the form is drawn up, the next step is to complete the description column in
approximately the same order as the operations will take place on the site, except that operations
belonging to the same trade or classification of work which should be grouped together
regardless of the time when they will be executed, and the mechanical trades are entered last.
The target dates for buying materials should be worked back from the starting date and
time allowance for the operations requiring shop drawings and fabrication. The progress is
shown in green color for on time, and red for behind schedule.
The ideal chart shows the progress line green throughout the contract period, On large
project, a separate chart is provided showing a date of delivery and a date of using up of all
principal materials and laborers of each category employed on the main contract and of the sub-
contracts.
The time and progress charts is kept up to date so that when the Owner or the Engineer
visit the site, they could see a true comparison between the actual progress against the scheduled
program. Within the first week of each month, the contractor shall forward to the engineer or
architect a progress report showing particulars of the work done in workshop and on the site, also
giving the present position, the rate of progress, estimated time of completion and hold-ups for
the delay if any.
3-9 Planning and Scheduling with Gantt Chart
The Gantt chart is a tool used for planning and scheduling simple projects. With the
chart, the project engineer can initially schedule project activities, and to monitor progress over
time by comparing planned progress to actual progress.
To prepare the chart, the project manager has to identify the major activities that would
be required. Estimates for each activity are made and the sequence was determined. Once
completed the chart indicates which activities were to occur including their planned duration, and
when they were to occur.
As the project progresses, the project manager would be able to see which activities were
ahead of schedule and which activities were delaying the project. This will enable the project
manager to direct attention where it was needed most to speed up the project to catch up with the
schedule.
 The advantage of the Gantt chart is its simplicity, making it very popular. Gantt chart
however, fails to reveal certain relationships among activities that can be crucial to effective
project management. For instance, if one of the early activities would have to be delayed, it is
because they could not start until that activity was completed. Conversely, some activities may
be delayed without affecting the overall project schedule.
A Gantt chart does not directly reveal this information. Gantt charts are useful for simple
projects where activities are simultaneous or where a string of sequential activities are involved.
On a more complex projects, Gantt chart can be useful for initial project planning, which then
gives way to the use of networks called PERT and CPM which will be discussed in Chapter 4 to
Chapter 8.
3-10 Material Supply
The buying of materials is an important activity in all construction works. The contractor has to
determine his material requirements and scheduled the sequence of its deliveries. There are items
which requires time for the preparation of shop drawings and fabrication before installation.
Hence, the list of material requirements from the bill of quantities should be made without delay.
 The contractor should refer the material quotations received at the time of preparing his
bid for the job which can be used as the basis of negotiations with the suppliers. A large number
of quotations may be obtained from the suppliers, and to facilitate their analysis, a comparative
statement should be made for each classification of the quotations received, listing along with the
price any conditions by which may be qualified.
A purchasing program for construction materials should be prepared according to its
priority. In the absence of this purchasing program, the materials are likely to arrival at the site
either, too soon with consequence of prolonged storage and possible deterioration or too late
deliveries which will cause undue delay of the work
Confusion usually results from delay and shortage of materials of day-to-day
requirements if they are ordered at the eleventh hour. The purchasing program will facilitate the
withdrawal of materials and ensure prompt delivery by the supplier because of the planned
schedule of deliveries. Purchase orders are prepared In triplicate, with original going to the job
site. A purchase or- der form should contain all the information such as:
1. Description of the materials
2. Quantities required
3. Time and place of delivery
4. Unit price
5. Amount
The purchasing clerk of the contractor must have experience in identifying the variety of
materials and supplies in general demand for construction work including the trade names, the
quality and local practices that govern the prices.
He must work in close liaison with the contractor's staff who prepare the details of
requirements to meet the work program. He should work in conjunction with the storekeeper at
the site regarding the chasing of deliveries where suppliers fail to comply with their
commitment.

3-11 Financial and Budgeting

Money is a universal lubricant, which keeps a business enterprise dynamic. Without
sufficient financing, a business cannot get started. And without adequate budgeting, a business
once started cannot reach its full potential.
The business must have sufficient capital structure to sustain. its growth. It also needs a
sound profit plan or budget to support and control its day-to-day operations. Thus, a healthy
construction company is one, which has sufficient resources and the capability of controlling its
cash flow.
 Construction business requires sufficient funds to cover its operation to maintain
equipment, purchase of materials and sup lies, to pay salaries and wages, to cover storage fees,
transportation and reserve for other services including SOP. These are current operations where
the funds to cover them are called working capital.
Profit Motive. In a competitive construction business, the profit motive is a predominant
factor of considerations for upon it may rest the justification for and in fact the very survival of
the company. No one feels secure about investing in or doing business within a venture that
appears to be skidding downward
The Budget. The budget is the long-term responsibility of management to use investment
that will yield the largest possible profit and it is the function of budgeting to plan that profit
profile.
A budget is a means toward an end, not an end within itself. Budget was made to serve a
purpose. They established goals wherein each department and its workers must contribute their
designed share in accordance with the unified plan. The budget must lead to precision and
confidence among the employees under the following principles:
1. A department head knows what was laid out for his department to accomplish.
2. He knows what is expected of him.
3. He knows when he has done a good job or when and where he is falling behind. With
this, much of the worry of uncertainty is eliminated.

Budget should be a conservative aid to all departments within the organization toward
their common goals. Unfortunately, this purpose is frequently misunderstood, giving an early
impression and meaning to the budget as:
1. A control of expenditures established in the minds of the subordinates. An attitude that
budget is only a negative control for which belief has led to the "padding" of department
budget.
2. The idea therefore in each department is to propose as large an allotment of expenditures
as possible that when all budgets were assembled and that reduction is necessary, each
department felt that it was the subject of discrimination. Thus, the budget has become a
"sore spot" and a factor of disintegration among the personnel.
A budget properly planned and operated, may have a constructive influence on the
personnel of an organization. It must serve as a means of bringing understanding of the common
goals of all who belong to the organization, and all who serve it. In this capacity, the budget will
serve as a coordinating and unifying influence to all concerned.
Types of budget. There are two principal types of budget.

1. The static or fixed budget

2. The variable or flexible budget

Static Budget. This type of budget depends upon the ability to predict income with at least a
reasonable degree of accuracy. A fixed sum of money is allocated for expenditures with a fixed
budget of operations for a specified period.
Variable Budget. This type of budget, recognizes the unreliability of income prediction and
make provisions in advance for variations in construction expenditures in accordance with
variation in income. Variable budget is constructed in anticipation of variables income. It
provides advance for orderly change in the volume of construction and expenditures.
Fixed Cost is one that is constant in total amount for a given period. For example: the salaries of
major executives, capital tax, depreciation and the like, remain fixed regardless of the volume of
construction activities.
Variable Cost increases or decreases in proportion with the volume of production or
construction activities. Other items such as direct labor and direct material cost vary in
proportion with the amount of contract which are called variable costs.
In general, simplicity in budgeting should be held as a primary virtue. Detailed clerical
work in the preparation and operation of a budget should be held to a minimum. These principles
not only eliminate unnecessary costs in budgeting but in general, promotes clearer interpretation
and control of the budget
There are two types of variable budget:
1. Step budget
2. Variable rate of cost per unit of work

Step budget is a series of budget set up at different level of construction volume or

contract. This is anticipated on variations in volume where changes in cost will occur such as
additional shifts, building and supervisory personnel
Variable rate cost is calculated as an average rate between two points of minimum and
maximum construction operations.
3-12 Budget Preparation
The preparation of budget estimate in each department is a committee proposition. This is
under the principle of participation as a means toward cooperation. Participation in the
preparation of a budget serves to familiarize the personnel with the problems involved.
With their knowledge of the problems and the feeling of being part in setting the goal and
limitation of the department, the personnel give more effective consideration and cooperation on
the budget preparation.
The head of the department may act as the chairman of the details for the within his own
department for the preparation of the budget that company as a whole. department committee,
but in no case of a large department, He should delegate responsibility for the gathering follows
the general patterns of the budget organization for the committee. In other words, he should have
an organization within his own department for the preparation of the budget that follows the
general patterns of the budget organization for the company as whole
This organization will not only lead to a better budget preparation but will also serve as a
mechanism for budget control.
The Financial Budget
Financial budget represents a summary of the anticipated income and disbursement for
the budget period. The purpose is to plan for the allocations of working capital as presented by
the current assets of the company. Data for financial budget are derived from the budget as
prepared by the different department. The financial budget must anticipate the cash receipt by
months, quarter or other designated period and make allowance for the raising of additional fund
if needed to meet the current expenses. This means that income from accounts receivables, notes
receivables, cash transaction and others, must be budget as accurately as possible.
Expenditures may be planned in consideration of the following:
1. The absolute necessities of the budget of various department such as weekly or monthly
requirements of materials for construction, payroll etc.
2. Limitation of available cash.
It is not considered a good management to have large amount of cash lying idle to meet
unusually large expenditures.
The interest being paid for such idle money has to be considered. There are many
problems arising out of attempted control of working capital, but these problems must be
anticipated and alternatives are selected to meet them. Short-term loan is availed of whenever
there is large construction contract. Financial budget acts as a negative control over other
department, especially when capital is limited but urgently needed in time of rapid construction
where additional capital and equipment is necessary. In most instances, financial budget provides
a systematic and positive approach towards the attainment of the coordinated plans and divisions.
3-13 Procurement Processes
In project construction, the importance of the procurement liability for getting the right materials
delivered from the suppliers to the site on time, cannot be taken for granted. A minor item or low
value material not available when needed can stop the construction activities, put people out of
work and delay of completion. For instance, in the absence of a common wire nails carpentry
work activities could be paralyzed. In general, the purchasing agent is made responsible for
maintaining the following major procurement factors:
1. Quality of the materials
2. Quantity of the materials
3. Time of delivery
4. Price of the materials

The procurement department and his agent are expected to:

1. Know and maintain records showing the materials and their possible substitute, sources
of supply, prices and quantities available.
2. Review specifications for possible simplifications and standardization of materials as for
unreasonable requirements.
3. Negotiate with suppliers for possible extension of credit.
4. Gather and analyze price quotations and fluctuations.
5. Place orders with suppliers
6. Follow up purchase orders for delivery as specified
7. Audit invoices to check compliance with agreed terms and conditions
8. Maintain records of all purchases
9. Coordinate with other departments on all matters pertaining to procurement.
The prerequisite of any purchasing contract is meeting of the minds as to the exact nature
of the materials required and to be furnished. Material standard which defines the major
requirements such as; size, color, forms, composition, performance of the materials and also the
state acceptance terms and shipping conditions requires purchase specifications. There are
materials which are purchased by catalogue number, description or by its name. This practice is
practically simple but because of specifications of branded catalogue items are often subject to
change
Purchase order usually starts from a purchase requisition, It specifics the kind, quantity
and when is to be delivered. Purchase requisitions are serially numbered as an aid in filing and
follow up. For items ordered regularly, a traveling requisition 's used. This is a card carrying the
usual information on the purchase requisition but with space for the word "repeat order. This is
used over and over again without the retrying data. This procedure, eliminate clerical works and
the need for a separate purchase history record.
 Materials bought under continuing contract or those purchased repeatedly do not require
quotations from the supplier since all the necessary information is already available to both
parties. In case of repeat order, the purchase order form might include the phrase "as previously
furnished on our PO No_____. The unit price and discount expected will likewise be shown as
with the purchase order number and that of the original requisition
3-14 Inventory Control
Effective inventory control is aimed at providing an adequate but not excessive supply of
materials at hand at all times to meet operating requirements, However, for most companies
inventories perform two functions:
1. They act as safety stock of materials or in effect, short term insurance against fluctuations
in supply.
2. Inventories permit a company to operate with disconnected processes in the construction
and disbursement cycle

3-15 Site Management of the Work

Safety in the project construction must be given primary considered from the mechanical
side to the legal angles of workmen's compensation or even as a matter of training and
motivation toward safe work practices for workers.
The immediate supervisor's responsibility is to see to it that the working place is properly
arranged and maintained wherein the equipment, scaffoldings and the like are all in safe
operating conditions. He should strictly see to it, that all workers do follow the safe working
habits.
Regardless of the exact percentage relationship, influencing human motivation to work
safely is an important responsibility of the foreman and supervisors. Safety must begin from the
drawing board. In the original design of the layout of work place or tools, accident hazards may
be built in or eliminated. A safety minded project engineer will make adequate provisions for
safety measures to:
1. Minimize manual handling hazards of materials.
2. Will locate control and fuse panels where they can be reached safely.
3. Will install strong and rigid forms and scaffoldings
4. Will insulate all live wires and screen high pressure areas
5. Will adequately guard belting and line shafting even if it is normally accessible
The safety minded engineer is one representative of management whose interest is
primarily on safety. In addition to accident prevention, a complete safety program has to do with
promotion of workers health, with prevention of such occupational diseases and fire prevention.
Fire protection as safety function, is highly important for some of the materials being used might
be flammable.

3-16 Planned Maintenance

Effective maintenance of the plant and construction equipment is a prerequisite to
efficient operation and uninterrupted construction activities. While deterioration of building
cannot be stopped, it can be retarded by maintenance.
Machine and equipment likewise, are subject to wear and tear from use. Machine tend to
get out of adjustment not only as the result of use, but also because of temperature changes,
vibration, seasoning of machine parts and a host of other causes.
Time is likewise a factor as corrosion forms in bodies and on various vital parts of the
machine. Dirt gradually finds its way into many types of equipment. Moisture seeps into
electrical windings and breaks down insulation. To counteract the effect of all these inherent
diseases, in equipment, the only wonder drug that could be prescribed is proper periodic
maintenance.
Planned maintenance is an organized attempt to prevent sudden breakdown in equipment
and periodic shutdown for repairs. It is accomplished under the program of preventive
maintenance, a definite program of periodic cleaning, servicing, inspection and replacement of
worn parts.
Preventive maintenance has long been an economic necessity for construction equipment which
must operate on a continuous process. When failure does occur, investigation is made to know
the cause, and statistical records are kept to indicate whether or not the preventive maintenance
program is effective and working. Maintenance for the machine and equipment is very costly.
Continuity of operations demand that the following general procedures should be carried out:

1. Down time of each equipment for servicing is planned in advance.

2. Important items of equipment that requires regular cleaning and maintenance or liable to
sudden failure should be ready at hand for substitution at any time of failure or signs of
approaching failure.
3. Records should be maintained and analysis made of repetitive failure.
4. Regular and prescribed inspections should be made for signs of impending failure,
 A number of engineers feel that in the long run, the cost of regular inspections of
equipment exceeds the cost of failures that are hereby prevented. They pointed out, that many
break downs occur suddenly and without warning. Hence, predicting the approach of such
failures is statistical improbable.
How does one foresee a fractured drive shaft, a sticky hydraulic valve, a limit switch that
suddenly fails to operate a transformer that blows up? These are only few of equipment
breakdown headache which are difficult if not impossible to cure by the inspection medicine.
Thus, every case of preventive maintenance inspection must be weighed on the balance scale of
cost. The question is: does an ounce of prevention really affect a pound of cure, or does a pound
of prevention result in only an ounce of cure?
Where machine and equipment have been in operation for a considerable period of time,
records of the timing and extent of failures are available. Knowing the probability of breakdowns
and their associated costs, the expected expenses of different maintenance policies are calculated.
Preventive maintenance program is indicative of the value of calculation, which revealed the
interval between overhauls that minimizes. maintenance costs. Economic reasoning frequently
must bow to other considerations. On some items of equipment, failure is prohibitive from the
standpoint both of property damage and of employee safety. The frequency of inspections will
depend upon the nature of the facility or item being checked, its importance to the continuity of
operations or to the safety of the plant and workers and the time interval from the first indication
of trouble to the actual failure. General inspection of machinery can be scheduled at intervals of
perhaps 3 to 4 months depending upon the volume of service or operations.
Equipment Rental
The trend in construction business is to have equipment rented. In very recent years, there has
been a significant swing toward the rental of equipment as opposed to outright purchase. This
trend has found particular favor in rental plans for construction equipment, delivery trucks,
materials handling trucks and office equipment.
Renting equipment offers the advantages of no capital out-lay, no maintenance or
servicing worries for the user, and rental cost filly deductible on income tax classified as current
business expense. Whether the long-range cost of such rentals compared with ownership is lower
is a debatable point which each company must decide on the merits of its own case.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
 A ctivity A ctivity Or igR %
em E ar ly E ar ly 2008 2009 2010 2011
JU LA U GS E POC TN OVD E CJA NFE B MA RA P RMA YJU N JU L A U GS E POC TN OVD E CJA N FE BMA RA P RMA YJU N JU L A U GS E POC TN OVD E CJA N FE BMA R A P RMA Y JU NJU L
ID D escr ipti on D ur D ur S tar t Finish

FAIRMONT HOTEL & RAFFLES SUITE & RE S

.
002 Is s uanc e of FC D 0 03N O V 08 Issuance of FC D
001 Is s uanc e of N TP 0 03N O V 08 Issuance of N TP
003 P rojec t H andov er by O w ner 0 03N O V 08 P r oject H andover by Owner
004 Mobiliz ati on 16 09N O V 08 24N O V 08 Mobilizati on
005 Temfac il L ay out 11 23N O V 08 03D E C 08 Tem facil Layout
006 R emov al of Tow er C rane 0 27J U N 10 R em oval of Tower C r ane
007 H andov er of E lev ator S haft 0 12J U L10 H andover of E levator S haft
008 B uilding W atertightnes s 0 01J A N 11 B uilding W ater tightness
009 B uilding E nergiz ation 0 21J A N 11 B uilding E ner gization
010 P rojec t Fi nis h 0 30A P R 11 P r oject Finish
ON -S ITE D E LIV E R Y A N D MOB ILIZA TION
M004 A w ard to S ubc ontrac tors 0 04D E C 08 A war d to S ubcontr actor s
M005 S tart of D eliv ery 0 11D E C 08 S tar t of D eliver y
M006 Mobiliz ati on of P lumbing and S anitary 8 11D E C 08 18D E C 08 Mobilizati on of P lum bing and S anitar y C ontr ac tor
M007 Mobiliz ati on of E lec tric al C on trac tor 8 11D E C 08 18D E C 08 Mobilizati on of E lectr ical C ontr actor
M008 Mobiliz ati on of Mec hanic al C ontrac tor 8 11D E C 08 18D E C 08 Mobilizati on of Mechanical C ontr actor
M009 D eliv ery o f W indow s 0 31MA R 09 D eliver y of W indows
M010 D eliv ery o f D oors 0 04A P R 09 D eliver y of D oor s
M001 Mobiliz ati on of O ther Finis hin g C ontrac tors 8 06J U N 09 13J U N 09 Mobilizati on of Other Finishing C ontr actor s
M002 Mobiliz ati on of P ainting C ont rac tor 8 06J U N 09 13J U N 09 Mobilizati on of P ainting C ontr actor
M003 D eliv ery o f G ens et 0 10S E P 09 D eliver y of Genset
C ON S TR U C TION S C H E D U LE
G 001 E x c av atio n and Trimming 50 04D E C 08 22J A N 09 E xcavation and Tr im m ing
G 002 S truc tural W ork s 490* 23J A N 09 27MA Y 10 S tr uctur a l W or ks
G 003 ME P W o rk s 769* 23FE B 09 02A P R 11 ME P W or ks
G 004 Mas onry W ork s 515* 30MA Y 09 26O C T10 Masonr y W or ks
G 005 C eiling Fi nis hes 618* 30MA Y 09 06FE B 11 C eiling Fi nishes
G 006 W all Finis hes 650* 07J U N 09 18MA R 11 W all Finis hes
G 007 D oor J am bs and D oors Ins tal lation 507* 07J U N 09 26O C T10 D oor Jam bs and D oor s Installation
G 008 Metal W o rk s 650* 07J U N 09 18MA R 11 Metal W or ks
G 010 P ainting W ork s 636* 21J U N 09 18MA R 11 P ainting W or ks
G 011 Mis c ellan eous W ork s 554 21J U N 09 26D E C 10 Miscellaneous W or ks
G 009 Floor Finis hes 628* 29J U N 09 18MA R 11 Floor Fini shes
G 012 A luminum & G las s W ork s 520* 26J U L09 27D E C 10 A lum inum & Glass W or ks
G 013 P rojec t H andov er 126 26D E C 10 30A P R 11 P r oject H andover
C IV IL/S TR U C TU R A L
S TR FN FO U N D A TIO N 22 23J A N 09 13FE B 09 FOU N D A TION 17
 Activity Activity Or igRem
% E ar ly E ar ly 2008 2009 2010 2011
JULAUGS E POCTNOVDE CJANFE BMARAP RMAYJUN JUL AUGS E POCTNOVDE CJANFE BMARAP RMAYJUN JUL AUGS E POCTNOVDE CJANFE BMARAP RMAY JUNJUL
ID Descr ipti on Dur Dur S tar t Finish
S TR B 3 B A S E ME N T 3 30 14FE B 09 15MA R 09 BAS E ME NT 3
S TR B 2 B A S E ME N T 2 30 16MA R 09 14A P R 09 BAS E ME NT 2
S TR B 1 B A S E ME N T 1 30 15A P R 09 14MA Y 09 BAS E ME NT 1
S TR G G R O U N D FLO O R 21 15MA Y 09 04J U N 09 GROUND FLOOR
S TR 2 2N D FLO O R 14 05J U N 09 18J U N 09 2ND FLO OR
S TR 3 3R D FLO O R 14 19J U N 09 02J U L09 3RD FLO OR
S TR 4 4TH FLO O R 14 03J U L09 16J U L09 4TH FLOO R
S TR 5 5TH FLO O R 14 17J U L09 30J U L09 5TH FLOO R
S TR 6 6TH FLO O R 14 31J U L09 13A U G 09 6TH FLOO R
S TR 7 7TH FLO O R 14 14A U G 09 27A U G 09 7TH FLOO R
S TR 8 8TH FLO O R 14 28A U G 09 10S E P 09 8TH FLOO R
S TR MF ME C H A N IC A L FLO O R 14 11S E P 09 24S E P 09 ME CHAN ICAL FLOOR
S TR 9 9TH FLO O R 14 25S E P 09 08O C T09 9TH FLOO R
S TR 10 10TH FLO O R 11 09O C T09 19O C T09 10TH FLO OR
S TR 11 11TH FLO O R 11 20O C T09 30O C T09 11TH FLO OR
S TR 12 12TH FLO O R 11 31O C T09 10N O V 09 12TH FLO OR
S TR 14 14TH FLO O R 11 11N O V 09 21N O V 09 14TH FLO OR
S TR 15 15TH FLO O R 11 22N O V 09 02D E C 09 15TH FLO OR
S TR 16 16TH FLO O R 11 03D E C 09 13D E C 09 16TH FLO OR
S TR 17 17TH FLO O R 11 14D E C 09 24D E C 09 17TH FLO OR
S TR 18 18TH FLO O R 11 25D E C 09 04J A N 10 18TH FLO OR
S TR 19 19TH FLO O R 11 05J A N 10 15J A N 10 19TH FLO OR
S TR 20 20TH FLO O R 11 16J A N 10 26J A N 10 20TH FLO OR
S TR 21 21S T FLO O R 11 27J A N 10 06FE B 10 21S T FLO OR
S TR 22 22N D FLO O R 11 07FE B 10 17FE B 10 22ND FLO OR
S TR 23 23R D FLO O R 11 18FE B 10 28FE B 10 23RD FLO OR
S TR 24 24TH FLO O R 11 01MA R 10 11MA R 10 24TH FLO OR
S TR 25 25TH FLO O R 11 12MA R 10 22MA R 10 25TH FLO OR
S TR 26 26TH FLO O R 11 23MA R 10 02A P R 10 26TH FLO OR
S TR 27 27TH FLO O R 11 03A P R 10 13A P R 10 27TH FLO OR
S TR 28 28TH FLO O R 11 14A P R 10 24A P R 10 28TH FLO OR
S TR 29 29TH FLO O R 11 25A P R 10 05MA Y 10 29TH FLO OR
S TR 30 30TH FLO O R 11 06MA Y 10 16MA Y 10 30TH FLO OR
S TR R D R OOF D E C K 11 17MA Y 10 27MA Y 10 ROOF DE CK

Total 909 03N O V 08 30A P R 11 18

19
20
21
22
 PREPARATORY WORKS - SCHEDULE FOR MOBILIZATION
SCHEDULE 2016 2017
ITEM DESCRIPTION Dur.
DEC JAN FEB
START FINISH -2 -1 1
PRELIMINARY WORK SCHEDULE
PREPARATORY WORKS 70 8-Dec-16 15-Feb-17
1.00 Consolidation of Tools and Equipment 8 31-Dec-16 7-Jan-17
1.1 Light/Heavy Construction Equipment 5 31-Dec-16 4-Jan-17
1.2 Small Construction and Power Tools 3 5-Jan-17 7-Jan-17
Consolidation of scaffolding / formworks
2.00 9 15-Dec-16 23-Dec-16
system
2.1 Scaffolding / Formworks System 9 15-Dec-16 23-Dec-16
3 Consolidation of materials for temfacil 14 8-Dec-16 21-Dec-16
3.1 Temprary Facilities 14 8-Dec-16 21-Dec-16
Consolidation of equipment and fixtures /
4.00 9 22-Dec-16 30-Dec-16
Appliances
Site Office Equipment and Fixtures /
4.1 2 22-Dec-16 23-Dec-16
Appliances
4.2 Staff House-Fixtures / Appliances 2 27-Dec-16 28-Dec-16
4.3 Workers Baracks-Fixtures / Appliances 2 29-Dec-16 30-Dec-16
4.4. Communication Equipments 2 29-Dec-16 30-Dec-16
5.00 Consolidation of instruments 2 23-Dec-16 24-Dec-16
6.00 Barge Loading 8 5-Jan-17 12-Jan-17
7.00 Barge Departure 1 13-Jan-17 13-Jan-17 TARGET BARGE DEPARTURE
8.00 Barge ETA @ Site 1 18-Jan-17 18-Jan-17
9.00 Manpower Departure at Manila 1 13-Jan-17 13-Jan-17
10.00 Manpower Deployment to Site 1 18-Jan-17 18-Jan-17
11.00 Barge Unloading 4 19-Jan-17 22-Jan-17
11.1 Stowage to Staff House 4 19-Jan-17 22-Jan-17
11.2 Stowage to Laydown Area 4 19-Jan-17 22-Jan-17
11.3 Stowage to Motorpool 4 19-Jan-17 22-Jan-17
12.00 Temfacil Construction 27 20-Jan-17 15-Feb-17
11.1 Construction of Worker Staff House 27 20-Jan-17 15-Feb-17
11.2 Refurbishment of Site Office (DMCI) 11 20-Jan-17 30-Jan-17
11.3 Fence Installation at Laydown Area 9 31-Jan-17 8-Feb-17
11.4 Setup of Motorpool Area 7 9-Feb-17 15-Feb-17 23
 GENERAL CONSTRUCTION SCHEDULE
ITE SCHEDULE 2016 2017 2018
DESCRIPTION Dur.
M DEC JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN JUL

START FINISH -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

SARANGANI ENERGY CORPORATION (SEC2) DAY 01: FEB. 16,

A MILESTONE 590 7-Dec-16 19-Jul-18
1 Issuance of Letter of Intent (LOI) 1 7-Dec-16 7-Dec-16 Issuance of LOI
2 Site Mobilization / Temfacil 70 8-Dec-16 15-Feb-17 Site Mobilization / Temfacil
3 Boiler Sheet Piling 1 16-Feb-17 16-Feb-17 Boiler Sheet Piling
4 Boiler Foundation Excavation 1 3-Mar-17 3-Mar-17 Boiler Foundation Excavation
5 First Pouring 1 17-Apr-17 17-Apr-17 First Pouring
6 STG Matt Foundation Complete 1 17-Apr-17 17-Apr-17 STG Matt Foundation Complete
7 Table Top for STG Completion 1 30-Aug-17 30-Aug-17 Table Top for STG Completion
8 Boiler Foundation Complete 1 2-Jun-17 2-Jun-17 Boiler Foundation Complete
9 TG Building Foundation Complete 1 14-Aug-17 14-Aug-17 TG Building Completed
10 Cooling Tower Concrete Strcuture Complete 1 12-Jan-18 12-Jan-18 Cooling Tower Complete
11 TG Auxilliary Equipment Foundation Complete 1 28-Nov-17 28-Nov-17 TG Aux. Eqmnt. Foundation Complete
12 Boiler Auxilliary Foundation Complete 1 25-Nov-17 25-Nov-17 Boiler Aux. Foundation Complete
13 ESP and Stack Foundation Comple 1 2-Dec-17 2-Dec-17 ESP & Stack Foundation Comp.
14 Completion 1 19-Jul-18 19-Jul-18 Completion
B CONSTRUCTION PHASE 519 16-Feb-17 19-Jul-18
B.1 CIVIL GENERAL 395 20-Jun-17 19-Jul-18
1 Earth Structure 66 29-Jun-17 2-Sep-17
2 U/G Sewer Piping 296 5-Jul-17 26-Apr-18
3 Road 395 20-Jun-17 19-Jul-18
3.1 Coal Handling and Storage Area 205 20-Jun-17 10-Jan-18
3.2 Boiler Area Incl. ESP and Stack Area 296 5-Jul-17 26-Apr-18
3.3 STG incl Transformer Yard Area 188 13-Jan-18 19-Jul-18
3.4 W ater Treatment Area 30 12-Jun-18 11-Jul-18
B.2 CONCTETE STRUCTURE 372 16-Feb-17 22-Feb-18
1 Boiler Area Incl. ESP and Stack Area 336 16-Feb-17 17-Jan-18
1.2 Boiler Foundation 107 16-Feb-17 2-Jun-17
1.2 PAF/SAF Foundation 229 3-Jun-17 17-Jan-18
1.3 ESP and Stack Foundation 135 21-Jul-17 2-Dec-17
2 Miscellaneous Concrete Strcuture 131 18-Jul-17 25-Nov-17
3 STG Building 372 16-Feb-17 22-Feb-18
3.1 Table Top for STG 196 16-Feb-17 30-Aug-17
3.2 TG Building Foundation 108 29-Apr-17 14-Aug-17
3.3 Auxilliary Equipment Foundation 106 15-Aug-17 28-Nov-17
3.4 STG Shelter Slab Concreting 311 18-Apr-17 22-Feb-18
4 Cooling Tower Concrete Structure 179 18-Jul-17 12-Jan-18
5 Pipe Sleeper 91 17-Aug-17 15-Nov-17
6 Other Concrete Stucture 134 20-May-17 30-Sep-17
6.1 Reclaiming Hopper Pit 122 20-May-17 18-Sep-17
6.2 Fuel Oil Pump & Shelter 29 2-Sep-17 30-Sep-17
B.3 BUILDING 192 2-Sep-17 12-Mar-18
1 ESP Electrical and Control Building 122 23-Sep-17 22-Jan-18
2 W ater Treatment Building 91 16-Sep-17 15-Dec-17
3 W ell W ater Pump House 91 2-Sep-17 1-Dec-17
4 Sand Storage Building 90 11-Sep-17 9-Dec-17
5 Chemincal Dosing Shed, Elec Room, Storage 91 12-Dec-17 12-Mar-18
C DEMOBILIZATION 31 19-Jun-18 19-Jul-18
24
25
26
Definition: Ratio of man-hour spent over the quantity produced

Man-hour
Productivity Rate =
Production Quantity

27
 Date Man-hour Utilized Production
man-hour cu.m.
10-Jul-07 12 x 11 hrs 132 21
11-Jul-07 12 x 8 hrs 96 15
12-Jul-07 12 x 11 hrs 132 14
13-Jul-07 10 x 8 hrs 80 10
14-Jul-07 12 x 14 hrs 168 90
15-Jul-07 12 x 8 hrs 96 41
16-Jul-07 12 x 11 hrs 132 18
836 209
man-hour cu.m.

836 mh
Productivity Rate =
209 cu.m.

= 4.00 mh/cu.m.
28
 Date Man-hour Utilized Production
man-hour sqm.
10-Jul-07 54 x 11 hrs 594 92
11-Jul-07 54 x 11 hrs 594 70
12-Jul-07 54 x 11 hrs 594 60
13-Jul-07 54 x 11 hrs 594 48
14-Jul-07 54 x 14 hrs 756 410
15-Jul-07 54 x 11 hrs 594 240
16-Jul-07 54 x 11 hrs 594 108
4,320 1,028
man-hour sqm.

4,320 mh
Productivity Rate =
1,028 sqm.

= 4.20 mh/sqm.
29
 Relative Quantity Man-hour from
Man-hour Composition
Weight 4.0 mhr/cu.m.

Preparation Work 10% 0.4

Concrete Pouring/Placing 75% 3.0

Clean-up 10% 0.4

Curing 5% 0.2

100% 4.0 mh/cu.m.

Note: The productivity rate and relative weight may vary depending on the structure,
type of project, framing layout, pouring method, and other factors based on actual
site condition. 30
 Relative Quantity Man-hour from
Man-hour Composition
Weight 4.20 mhr/sqm.

Preparation Work 10% 0.42

- materials handling, fabrication

Installation Work 75% 3.15

- set-up, fixing, form oil application

Form Removal 15% 0.63

- dismantling, cleaning and sorting

100% 4.20 mh/sqm.

Note: The productivity rate and relative weight may vary depending on the structure,
type of project, framing layout, form system to be used, and other factors based on actual
site condition. 31
 Relative Quantity Man-hour from
Man-hour Composition
Weight 0.075 mh/kg

Preparation Work 20% 0.015

- handling, fabrication

75% 0.056
Installation Work

5% 0.004
Punchlist prior to Pouring

100% 0.075 mh/kg

Note: The productivity rate and relative weight may vary depending on the structure,
type of project, framing layout, and other factors based on actual site condition.
32
 Relative Quantity Man-hour from
Man-hour Composition
Weight 2.75 mhr/sqm.

Preparation Work 20% 0.55

- survey, handling, workers platform

70% 1.925
Installation Work

Completion 10% 0.275

- dismantle platform, clean-up

100% 2.75 mh/sqm.

Note: The productivity rate and relative weight may vary depending on the structure,
type of project, framing layout, and other factors based on actual site condition.
33
 As of This Period As of
CONCRETE
9-July 10-16 July 16-July
Man-hour Utilized (mh) 2,418 836 3,254
Periodic Production (cu.m.) 604 209 838
Productivity Rate (mh/cu.m.) 4.00 4.00 3.88

As of This Period As of
FORMWORKS
9-July 10-16 July 16-July
Man-hour Utilized (mh) 10,872 4,320 15,192

Periodic Production (sqm.) 2,718 1,028 3,771

Productivity Rate (mh/sqm.) 4.00 4.20 4.03

34
 Work Duration Production
Scope of Work Quantity Unit
(weeks) (per week)

Excavation Volume 12,000 cu m 6 2,000.00

Formwork Area 19,046 sq m 4 4,761.50

Rebar Weight 487,483 kgs 4 121,870.75

Concrete Volume 2,968 cu m 4 742.00

CHB Area 132 sq m 4 33.00

Plastering Area 750 sq m 4 187.50

Various Finishes

Floor 1,104 sq m 4 276.00

Wall 808 sq m 4 202.00

Ceiling 145 sq m 4 36.25

35
 CONCRETE FORMWORKS REBAR
DATE
(cu.m.) (sqm.) (kg)
JANUARY
FEBRUARY 1,419.00 1,933.00 252,731.00
MARCH 3,646.00 9,389.00 649,908.00
APRIL 2,697.00 16,938.00 517,828.00
MAY 2,697.00 16,938.00 487,483.00
JUNE 2,968.00 19,046.00 487,483.00
2007
JULY 2,968.00 19,046.00 487,483.00
AUGUST 2,968.00 19,046.00 487,483.00
SEPTEMBER 2,968.00 19,046.00 487,483.00
OCTOBER 2,968.00 19,046.00 487,483.00
NOVEMBER 671.00 3,871.00 81,277.00
DECEMBER
TOTAL 25,970.00 144,299.00 4,426,642.00

36
37
38
39
40
41
 Work Production Productivity
Manhour No. of
Scope of Work Qty Unit Duration per week Rate
Required Men
(week) (cu.m.) (mh/unit)

Excavation 2,000 cu.m. 4 500 8.00 4,000 67

Concreting 3,000 cu.m. 4 750 4.00 3,000 50

Formwork 19,000 sqm. 4 4,750 4.20 19,950 333

Rebar 480,000 kg 4 120,000 0.075 9,000 150

CONCRETE FORMWORKS REBAR

80% Labor 40 60% Carpenter 200 30% Steelman 45

20% Mason 10 40% Labor 133 70% Labor 105

100% 50 men 100% 333 men 100% 150 men

42
 CONCRETE MANPOWER Labor Mason
DATE
(cu.m.) (mh) 80% 20%
JANUARY
FEBRUARY 1,419.00 22 18 4
MARCH 3,646.00 57 46 11
APRIL 2,697.00 42 34 8
MAY 2,697.00 42 34 8
JUNE 2,968.00 46 37 9
2007
JULY 2,968.00 46 37 9
AUGUST 2,968.00 46 37 9
SEPTEMBER 2,968.00 46 37 9
OCTOBER 2,968.00 46 37 9
NOVEMBER 671.00 11 9 2
DECEMBER
TOTAL 25,970.00
43
 FORMWORKS MANPOWER Carpenter Labor
DATE
(sqm.) (mh) 60% 40%
JANUARY
FEBRUARY 1,933.00 32 20 12
MARCH 9,389.00 152 92 60
APRIL 16,938.00 274 165 109
MAY 16,938.00 274 165 109
JUNE 19,046.00 308 185 123
2007
JULY 19,046.00 308 185 123
AUGUST 19,046.00 308 185 123
SEPTEMBER 19,046.00 308 185 123
OCTOBER 19,046.00 308 185 123
NOVEMBER 3,871.00 63 38 25
DECEMBER
TOTAL 144,299.00
44
 REBAR MANPOWER Steelman Labor
DATE
(kg) (mh) 30% 70%
JANUARY
FEBRUARY 252,731.00 73 22 51
MARCH 649,908.00 188 57 131
APRIL 517,828.00 150 45 105
MAY 487,483.00 141 43 98
JUNE 487,483.00 141 43 98
2007
JULY 487,483.00 141 43 98
AUGUST 487,483.00 141 43 98
SEPTEMBER 487,483.00 141 43 98
OCTOBER 487,483.00 141 43 98
NOVEMBER 81,277.00 24 8 16
DECEMBER
TOTAL 4,426,642.00
45
 CONSTRUCTION DURATION
MANPOWER TOTAL
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
A. INDIRECT LABOR
Site Manager 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 20
Project In Charge 1 1 1 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2 2 2 2 1 54
Field Engineer 6 6 9 11 11 13 13 13 13 13 13 13 13 13 9 9 6 2 2 2 2 192
Office Engineer 1 2 4 7 8 12 12 12 14 14 14 14 14 14 14 14 14 14 14 14 14 14 12 4 270
Surveyor 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 1 1 56
Project Architect 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 23
CQC Staff 8 12 12 12 12 12 12 12 12 12 12 12 12 6 6 6 4 2 2 178
Safety Officer 2 3 6 6 6 6 6 6 6 6 6 6 6 4 4 4 2 2 1 88
Administrative Head 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 23
EIC 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 43
General Foreman 1 1 2 2 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 4 4 4 2 1 111
SUB-TOTAL 4 6 12 21 28 48 55 58 62 62 62 62 62 62 62 62 62 58 50 44 40 34 28 14 1,058

B. DIRECT LABOR
Carpenter 16 16 40 40 40 40 40 40 40 40 40 40 40 40 40 32 32 32 32 24 704
Mason 12 12 30 30 30 30 30 30 30 30 30 30 30 30 30 20 20 20 20 12 506
Steelman 6 6 18 18 18 18 18 18 18 18 18 18 18 18 18 6 6 6 6 6 276
Laborer 64 64 160 160 160 160 160 160 160 160 160 160 160 160 160 128 128 128 128 96 2,816
SUB-TOTAL 0 0 0 98 98 248 248 248 248 248 248 248 248 248 248 248 248 248 186 186 186 186 138 0 4,302

GRAND TOTAL 4 6 12 119 126 296 303 306 310 310 310 310 310 310 310 310 310 306 236 230 226 220 166 14 5,360
46
47
 EQUIPMENT CONSTRUCTION DURATION
EQUIPMENT LIST TOTAL
SPECIFICATION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
MATERIAL LIFTING
Crawler Crane 45T 1 1 1 1 1 1 1 1 8
Mobile Crane 25T 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 16
Tower Crane 10T 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 30
SUB-TOTAL 0 0 0 0 0 2 3 3 3 3 4 4 4 4 4 4 4 4 3 3 2 0 0 54
MATERIAL HANDLING
Canter Mitsubishi, 6-wheeler 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 38
Cargo Truck 6-8 tons 1 1 1 1 1 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2 1 1 54
Dump Truck 10T Cap 1 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2 2 2 1 55
SUB-TOTAL 1 1 3 5 6 8 8 8 8 8 8 8 8 8 8 8 8 8 8 7 5 5 3 147
GENERAL WORKS
Air Compressor 185 cfm IR 6 6 6 6 6 4 4 4 4 4 4 4 4 4 2 2 2 1 73
Bulldozer 2 2 2 2 2 1 1 1 1 1 1 1 17
Payloader 2 2 2 2 2 2 2 2 3 3 4 4 4 4 3 3 3 2 2 2 2 55
SUB-TOTAL 4 4 4 2 2 8 8 8 11 11 9 9 9 9 8 8 8 6 6 4 4 2 1 145
EARTHWORKS
Backhoe 0.8cum 6 6 10 10 10 14 14 14 14 14 12 10 134
Clamshell 4 4 2 2 2 2 2 2 2 22
Road Roller 10T 3 3 3 9
SUB-TOTAL 0 0 0 0 6 6 10 10 13 17 21 18 16 16 14 12 2 2 2 0 0 0 0 165

GRAND TOTAL 5 5 7 7 14 24 29 29 35 39 42 39 37 37 34 32 22 20 19 14 11 6 4 511

48
 SEC 210 SRPI

FAIRMONT NAIA X PARANAQUE SEWER NETWORK

49
50
51
Chapter 4

4.1

What is PERT and what is CPM?

PERT is a Program Evaluation and Review Technique. CPM is the Critical Path Method. PERT and
CPM were developed independently in the later part of 1950's. These two are networks. A techniques,
used for planning and coordinating large scale projects.

The use of PERT began in 1958 through the joint efforts of the Lockheed Aircraft, the U.S. Navy
Special Project Office and the consulting firm of Booz, Allen & Hamilton in the efforts of the U.S.
government to speed up the Polaris Missile project.

The U.S. government's apprehension that the Soviet Union, might gained nuclear superiority
over the U.S., early completion of the project was given top priority. A special operations research team
was directed to formulate a new approach considering that the management concepts and methods at
that time were not adequate. The concept was formulated by the research team and is then called
Program Evaluation and Review Technique, which is simply called PERT.

The Polaris Missile project is a large one involving over 3,000 contractors and 11,000 sub-
contractors with several thousands of work activities. The use of PERT in this large scale project was
proven successful in shortening the length of the project completion time.

In 1956, prior to the development of PERT, the Critical Path Method which is simply called CPM
was developed by J.E. Kelly of the Remington Rand Corp. and M.R. Walker of Du Pont in an effort by
commercial industry to make an advanced scheduling and cost control methods. By April 1958, CPM in
application was demonstrated in a real success.

CPM was designed as a tool for planning, scheduling, and control of construction work. Its
emphasis was on the work or activities to be managed. The network diagram defined and focused
attention on the job to be accomplished. The schedule derives the earliest and the latest times for their
start and finish.

PERT was developed as a result of looking for an improved method of planning and evaluating
progress of a large-scale research and development program. It was designed to provide the
management a periodic reporting of current status and an outlook for the future on meeting approved
plans and schedules. It answers the questions such as: "Is this a feasible schedule? And what are the
probabilities of making it?

Although PERT and CPM were developed independently, yet, they have a great deal in common.
Users adopted certain features from one technique for use with the other.

For instance, PERT originally stressed probabilistic activity time estimate because the field in
which it was developed was typified by high uncertainty. In contrast, CPM originally made no provisions
for variable time estimates. However, from a conceptual analysis, most of these differences were
relatively minor. For practical purposes, the two techniques are the same. Thus, comments and
procedures described will apply to both PERT and CPM project analysis.
 PERT/CPM is a control tool for defining the parts of construction job and then putting them
together in a network form. It serves as an aid to the construction manager but it does not make
decision for him nor does it guarantee good management. PERT/ CPM only serves the project manager
to see the whole picture of the entire job. It encourages periodic re-evaluation and providing an
accurate measure of progress. Thus, a person in charge of each work and the project manager knows
what is supposed to happen and when it is supposed to happen.

4-2 PERT/CPM Project Requirements

Today, ether of the two techniques can be used with deterministic or probabilities of time. The
remarkable historical record of PERT and CPM on large scale projects accomplishment has gained
worldwide acceptance. In all major projects of the government, PERT and CPM network is a mandatory
requirement.

Under Presidential Decree (PD) 1594, Prescribing Policies, Guidelines, Rules and Regulations for
government infrastructure contracts provides that:

"The program of work shall include, among others things, estimates of the work items,
quantities, costs and a PERT/CPM network of the project. activities... in the preparation of the bidding
documents, the government shall make and estimate of the actual number of working days required to
complete the project through PERT/CPM analysis of the project activities and corrected for holidays and
weekends."

On January 27, 1968, president Ferdinand E. Marcos issued Memorandum Circular No. 153
which provides that:

"In order that the performance discipline on the field could be controlled and easy reporting
system could be made to facilitate the monitoring, evaluation, inspection completion of infrastructure
projects, all heads of departments and chief of bureaus and offices concerned are hereby required to
change the old system of preparing the work programs of said projects from the Gantt Chart (Bar Type)
to the PERT/CPM network. Strict compliance herewith is enjoined."

On June 19, 1968, the Executive Committee for Infrastructure Program implemented the
Presidential Order in a letter to all implementing agencies to wit:

"Your attention is invited to a Presidential Order requiring the preparation of a PERT/CPM

diagram for every major project prior to their actual construction."

Section 6 of R.A 5979 requires the application of PERT/ CPM technique to all projects with an
estimated cost of P100.000 or more. Thus, PERT/CPM now has become an integral part as requirement
of project construction management.

With the use of PERT/CPM, the project manager can easily obtain the following informations:

I. The graphical display of project activities

2. An estimate of how long will the project last

3. Determine which activities are the most critical to timely project completion.

4. Determine how long any activity can be delayed without lengthening the project.
4-3 Three Phases of PERT/CPM

The three phases of PERT/CPM are:

1. Planning

2. Scheduling

3. Control-Monitor

Planning

Planning is defined as determining the relationship between the work operation and the sequence in
which they are to be per- formed. Scheduling or sequence involves distribution of work time to each
work operation and determining when to start and when to finish.

Each work operation can be performed in different ways at different costs and in different time
duration. Most construction projects have specified time of start and time of completion. When the
contract time is less, in effect it requires higher indirect costs. Thus, in order to catch-up with the
allotted time, some of the operations must be speeded-up. Consequently, to speed up construction
work requires higher direct cost because of overtime, shift of work, additional manpower and
equipment and various expensive methods which are not done on normal construction operations with
sufficient time duration.

However, there is a danger that shortening a single operation may only increase project cost but
may not shortened construction time considering that other operations have not been shortened. On
the other hand, shortening all operations at the same time may only increase project cost more than
what is necessary to obtain he desired decrease of construction time.

The Critical Path Method (CPM) offers the solution through

systematic approach. The specific information provided by the

CPM are enumerated as follows:

1. PERT/CPM pinpoints the particular work operations whose completion times are responsible for
controlling the complete date.

2. It provides a means of speeding up a project without excessive costs for overtime. Without the use of
PERT/CPM when speeding up the project overtime expenditures may be in total waste.

3. It gives a time leeway or float available for each of the non-critical work operations. The information
on float time will give the project manager that opportunity to maneuver in their planning and control of
the operations.

4. It establishes time boundaries for operations with possibilities of shifting resources, equipment and
manpower to meet time requirements
5. PERT/CPM indicates the earliest starting date for each work operations and sub-contracts for supply
and delivery of materials.

6. It shows the most advantageous scheduling for all operations. This gives planning information as to
time and cost in choosing methods, equipment, crew and work hours.

7. It offers a means of assessing the effect on the overall project variations in one operation such as
change orders.

8. In case of change order where the owner would not want to extend the contract time, PERT/CPM
offers a means of re-scheduling the operations but still to be completed at the least increase in cost.

9. With the critical path schedule as revised to reflect the change order, any claim if any, for additional
payment will be understood both by the owner and the contractor.

10. In case of serious delay due to weather, late material or equipment delivery, the network can be
revised at that stage and new computation is made to determine the new critical operation if any and
revised float times determined for the non-critical operations.

In any project construction undertakings, planning is the most important consideration which includes:

1. Gathering of all the necessary input data to make the PERT/CPM works.

2. Planning phase is the main work of the contractor for being familiar and knowledgeable of his costing
methods of doing

3. The contractor can seek assistance for the accomplishment of his work particularly the gathering of
data, but his basic responsibility on this matter cannot be delegated to any outsider group.

4. The contractor has the complete perception, experiences, resources, and interest in getting the
project done in the best possible time and cost.

5. The planning stages give the contractor a "Dry Run" on the construction of the project.

6. If the contractor wants an effective approach and use of the construction management, he must do it
himself.

7. By performing the work personally, one obtains intimate first-hand knowledge of the job and gain
insight and details of anticipated problems.

SCHEDULING

In PERT/CPM, Scheduling is defined as the process of translating the arrow diagram into time
table of calendar days. This is done by the day date table converting working days into calendar days
which permits the inclusion of weekends, holidays, weather and other time lost.

The PERT/CPM schedule shows the relationships between the operations and the leeway
limitations. All activities should be checked with the day-to-day table. All crew and management
restraints along the critical path should be verified and the restraints should be adjusted to give
satisfactory project completion. Non critical activities can be scheduled to more efficiently utilize
manpower and available resources

Job control through the use of PERT/CPM gives the management a reliable system identifying
job problems within days instead of months. Progress along the arrow diagram should be updated for
immediate references. The diagram must show the status of the project at any time and indicate which
activities can be started and to pinpoint the cause of the delay.

The PERT/CPM diagram should be updated periodically to account for:

1. Time discrepancies

2. Deliveries

3. Weather

4. Change orders

5. Unexpected events or conditions.

Updating of the diagram is based on the number of days the project is out of schedule.

CONTROLLING AND MONITORING

Flexibility and updated re-computations brought about by changing conditions is the key to a
successful network programming. To keep the schedule more up to date and meaningful, it can be done
by hand but is easier and less in cost if it is done with the assistance of computer to have the following
output.

1. The contractor is supplied with time status reports showing the overall status of the project in general
and in particular.

2. The contractor is provided with revised schedules which reflect the actual work conditions and the
project status.

3. The contractor is supplied with cost status reports showing how much money is being disbursed for
what type of expenses.

4. The contractor should be supplied with those reports as frequently as desired or required to maintain
control over the project.

In the Planning Phase, there are five inputs that can be obtained:

1. A network diagram defining the activities in the project.

2. The duration of activities

3. Cost estimates of the activities for monitoring cost, cash flow requirements

4. Resource estimates

5. Trade indicators (responsibility) for activity grouping.

From the Schedule Phase, there are four output that can be

obtained:

1. The schedule of activities in the network showing the following

a. The Critical Activities

b. The Earliest Start date for each activity

c. The Earliest Finish date for each activity

d. The Latest Start date for each activity

d. The Latest Finish date for each activity

e. The Float which refers to the amount of extra time available for an activity.

2. A Bar Chart or a Time Scaled Network (arrow diagram network for the project).

3. A. Resource Analysis showing the number and kind of resources, man power, equipment and others
that are required for each day of the project.

4. A Cash Requirement prediction indicating how much cash to be disbursed for the job and the amount
of money that will be collected as a result of work accomplishment.

The Control Monitor Phase uses actual data which includes:

1. Additions to the project - This refers to the new activities.

2. Deletion from the project

3. Changes as to duration, description, trade indicators, cost estimates or resource estimates.

4. Actual starting dates

5. Actual finishing dates.

The Output Phase consists of the following:

1. Time status report

2. Revised schedules

3. Revised Bar Charts/ Arrow Diagram or Network

4. Revised resource analysis

5. Revised cash flow predictions

6. Cost status reports

There are three major reasons for construction failure:

1. Unbalanced organization due to lack of planning and scheduling.

2. Lack of financial planning

3. Poor cost control.