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PARTIES INVOLVED: 1. OWNER

2. DESIGNER

3. SUPPLIER

4. CONSTRUCTOR 5. END USER

- Is the step in which plans, specifications,

materials and permanent equipment are transformed by a constructor usually called a

contractor, into a finished facility.

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CONTRACT - determines the actions of the parties in their dealings with each other. The parties to a contract are bound to each other for a certain period of time by a unique and exclusive relationship (privity of contract) they have created for their mutual benefit, which gives them both obligations which they have agreed to accept so that both may benefit.

CONSTRUCTION CONTRACT DOCUMENTS

-define the agreement between the owner and the contractor. It is a two-party agreement that does not include the designer

1. AGREEMENT AND ACCEPTANCE

2. CONSIDERATION

3. CAPACITY

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4. LEGAL

COMMON TYPES OF

CONTRACTS

-Also known as FIXED FREE CONTRACT.

-Contract where there is an agreement in which one party

consents to pay another party a set of an amount for completing the work or

providing the goods described in the agreement.

-This kind of contract is based on estimated quantities of items included

in the project and their unit prices. The final price of the project is dependent

on the quantities needed to carry out the work.

-A contract agreement wherein the purchaser agrees to pay the cost of all

labor and materials plus an amount for contractor overhead and profit (usually

as a percentage of the labor and material cost).

-Compensation is based on the engineering and/or contracting

performance according an agreed target - budget, schedule and/or quality.

The two basic categories of incentive contracts are

Fixed Price Incentive Contracts

Cost Reimbursement Incentive Contracts

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-Compensation is based on a percentage of the construction costs.

-Compensation is based on the engineering and/or contracting performance according an agreed target - budget, schedule and/or

quality.

The two basic categories of incentive contracts are

Fixed Price Incentive Contracts

Cost Reimbursement Incentive Contracts

1. RESIDENTIAL

2. BUILDING-COMMERCIAL 3. INDUSTRIAL

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4. HIGHWAY HEAVY 5. SPECIALTY

1. RESIDENTIAL

2. BUILDING-COMMERCIAL

3. INDUSTRIAL

4. HIGHWAY HEAVY

5. SPECIALTY

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1. Design the concrete structures with as many duplicate members as practical in order to permit the reuse of forms without re building

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2. Simplify the design of the structure where possible

3. Design the use of cost-saving equipments and methods.

4. Eliminate unnecessary special construction requirements.

5. Design to minimize labor-intensive activities.

6. Specify a quality of workmanship that is consistent with required project quality.

7. Furnish adequate subsurface information where possible.

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8.Refrain from requiring the constructor to assume the adequacy of the design or the responsibility for information that should be furnished by engineer or architect.

9. Use local materials when they are satisfactory.

10. Write simple, straight forward specifications which clearly state what is expected define either the results expected or the methods of accomplishing the desired results, but not both.

11. When possible, use standardized specifications which are familiar to the constructors.

12. Hold pre-bidding conferences with constructors in order to eliminate uncertainties.

13. Use inspectors who have sufficient judgment and experience to understand the project and to give them the authority to make decisions.

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1. Prebidding studies of the project and the site to determine the effect of:

a. Topography

b. Geology

c. Climate

d. Sources of material

e. Access to the project

f. Housing facilities

g. Storage facilities

h. Labor Supply

i. Local Services

2. The use of alternate construction equipment, having higher capacities, higher efficiencies, higher speed, more maneuverability, and lower operating cost.

3. The payment of a bonus to the key personnel for production in excess of a specified rate.

4. The use of radios in means of communication between the headquarters office and key personnel on projects covering large areas.

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5. The practice of holding periodic conferences with key personnel to discuss plans, procedures, and results.

6. Adoption of realistic safety practices on a project as a means of reducing accidents.

7. Considering the desirability of subcontracting specialized operations to other contractors who can do the work more economically than the general contractor.

8. Considering the desirability of improving shop and serving facilities for better maintenance of construction equipment.

- This is a formalized application of a specialized branch of engineering whose objective is to effect economy in the cost of constructing a project.

- Value engineering maybe applied to a project in One or Two Stages.

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1. During or immediately after the completion of the plans and specifications, and prior to their release to contractors.

2. After a contractor is awarded for the construction of the project.

-Each piece of construction equipment is specifically designed by the manufacturers to perform certain mechanical operations

-The proof of how well the planner understands the projects and coordinates the utilization of the companys equipment is in the bottom line when the contract is completed is by PROFIT OR LOSS.

-Planning is required for, Production achievement, Cost control, Commitment, Consistency, Communication, and Coordination of the project and the parties involved in the project.

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Planning must also clearly identify the work to be done and establish the following:

1. Desired schedule

2. Realistic cost estimates

3. Quality objectives

4. The Best contracting strategy.

Formal Planning Involves the following Steps:

1. Analyze the project, establish the scope and feasibility, and specify the limitations involved:

Time

Money

Location

Competition of resources

Coordination requirements

2. Divide the Project down into specific and discrete activities.

- For large projects, combine small activities into larger activities (hierarchical). This is known as hammocking.

3. Estimate the time, resources, and cost required to perform each activity. Such estimates must be reasonable.

4. Place activities in proper relation to each other with respect to their logic constraints.

5. Portray a plan in a form of a network which shows interrelationships between the activities.

6. Place activities in time sequence. A Bar Chart is an excellent way of depicting this information.

7. Apply limitations of time, available resources, climate, etc. This will provide:

The times for delivery of materials and installed equipment.

The classifications and number of workers needed and the periods of time will be needed.

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- This method of project planning involves the identification of specific activities, their durations and interrelationships.

1. Activity-On-Arrow (AOA)

- commonly called arrow diagramming.

2. Activity-On-Node (AON)

- commonly called precedence diagramming.

- Each of these types, both generally termed critical path method (CPM).

- They uses the same information in a slightly different form.

Basic principles and limitations of AOA and AON are that:

They portray the dependency relationships among activities.

All activities have a single duration and must have an identifiable beginning and end.

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All activities preceding a given activity must be completed before the given activity can begin.

Basic networks do not indicate the time sequence of a project.

An activity may not be interrupted. (A major limitation).

ACTIVITY- A specific job or task that has to be performed.

EVENT- The start or completion of an activity. It requires no time in itself and is usually indicated on the AOA diagram by a number enclosed in a circle. The event is sometimes referred as a node.

ARROW- A line drawn to represent each activity in a network, joining two events(the start and the finish of an activity).

AOA Network- This is the arrow diagram drawn to portray the proper relationships of activities in a project.

DUMMY- is an artificial activity, usually represented on the diagram by a dotted line to describe the proper relationship on the activities.

EARLY START (ES)

- This is the earliest time that an activity can start.

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DURATION (D)

- The estimated time to perform an activity.

EARLY FINISH (EF)

- Is the earliest time that an activity can be finished.

- EF = ES + D

LATE START (LS)

- Is the latest time that an activity can be started without delaying the completion of the project.

- LS= LF-D

LATE FINISH (LF)

- Is the latest time that an activity can be finished without delaying the completion of the project.

- LF= LS+D

TOTAL FLOAT (TF)

- This is the amount of time that an activity maybe delayed without delaying the completion of the project.

TF= LS - ES = LF EF.

FREE FLOAT (FF)

- Is the time that the finish of an activity can be delayed without delaying the early start time of any following activity.

- FF= ES of the following activity EF of this activity.

CRITICAL PATH

- Is the longest interconnected path of activities through the network.

CRITICAL ACTIVITY

- An activity on the critical path. It has a zero float time, that is LS ES = 0

And LF EF = 0.

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1. Separate the project into discrete activities, each with a definite starting point and ending point.

2. Estimate the duration of each activity.

3. Determine the proper sequencing of each activity, including which activity must precede or follow other activities.

4. Draw an AOA network with the activities and events which are properly interconnected.

5. Examine the network and optimize, if possible, to eliminate unnecessary dummy activities.

6. Assign numbers to all events, being sure that the from number is always less than the to number.

7. Make a forward pass and backward pass through the network to establish ES, LS, EF, LF times for all activities.

8. Determine the critical path or paths and critical activities.

9. Prepare a table listing all activities, their designations, durations, and ES, LS, EF and LF times, and their total float.