lecture slides4; construction project planning

MANAGEMENT:CIVIL II_ MCIV 2/0

MODULE FOUR(4): CONSTRUCTION CONTRACT/PROJECT PLANNING

JB NARTEY

CONSTRUCTION_EXCAVATION

CONSTRUCTION_BUILDING FOUNDATIONS

CONTRUCTION_DOOR LINTOLS

CONSTRUCTION_ROOF

CONSTRUCTION_ROAD PAVEMENT

CONSTRUCTION_ROAD BASE COMPACTION

CONSTRUCTION_TRENCHING

CONSTRUCTION_VIP TOILET PIT

CONSTRUCTION_MATERIAL SUPPLY/DELIVERY

CONSTRUCTION_BUILDING

CONSTRUCTION_ SEWER PIPE LAYING

CONSTRUCTION_STEEL FRAMES

CONSTRUCTION_ROAD SURFACING

CONSTRUCTION_DAM CONSTRUCTION

VIDEO

• WATCH VIDEO

SOURCE OF BUSINESS(Construction Enterprise(“Contractor”)

Private Investments(Profitable Ventures))

Tendering/Contracting• -Government Sector

• Private Sector

CONSTRUCTION CONTRACT LIFECYCLE_3 STAGES

TTENDERINGOpen,closed,negotiated

PRE-CONSTRUCTION

CONSTRUCTION

CONSTRUCTION CONTRACT_PLANNING

• In any successful construction contract there are 3 kinds of planning:

• PRE-TENDER PLANNING• PRE-CONSTRUCTION PLANNING• CONTRUCTION PLANNING

TENDERING TENDER ENQUIRIES/NOTICE/ADVERT

TENDER BRIEFING/SITE VISIT-COMPULSORY

TENDER OPENING/CLOSINGNOT COMPULSORY

TENDER EVALUATION

TENDER ADJUDICATION

CONTRACT AWARD/CONTRACT AGREEMENT

7 DAYS

14 DAYS

SITE HANDOVER

60 DAYS

RFP/RFQ/TENDER DOCS

TENDER ADVERT/NOTICE

• REFER TO TENDER ADVERT/NOTICE

TENDER ADVERT/NOTICE• Date of the tender Advertisement• Client Name • Project Name/ Tender Number• Scope of Works/Scope Statement(brief)• Class of Contractors- CIDB Grading, Gives an idea of the value of contract• Tender documents/RFPS/RFQs- Place, date and Price of Purchase• Technical Enquiries- Contact Person name and phone details• Tender Briefing/Clarification/Compulsory Site Inspection- Place, date and time• Tender delivery instructions( 2-envelope/2-step/1-envelope • Tender Submission Deadline-Place, date and time• Tender Type- Open competitive• Method of Evaluation/Adjudication (90/10, 80/20) • Tenders of less than R500 000 in value are adjudicated according to the 80/20

preference point system. Tenders of over R500 000 in value are adjudicated according to the 90/10 preference point system.

TENDER ADVERT/NOTICE• Pre-Qualification evaluation/Functionality• Experience, Resources etc

• Tender Data- Tender Specifications/Conditions of tender/Tender Requirements; – Procurement Regulation – Incompleteness, Unsigned tenders not acceptable– Tenders sent by email of fax not acceptable– CIDB Registration( Both contractors/Sub-contractors)– Tender Validity( 90 days-12 weeks)– Tenderers registered on suppliers database

• Returnable Documents– Proof of attendance of the tender clarification meeting– Municipal Levy Certificate– CIDB Certificate– VAT Registration Certificate– BB-BEE Certificate– Professional Indemnity Insurance Certificate( Consultant)– SARS certificates– CK document– Certified ID copies of company directors– Proof of purchase of tender documents

TENDER DOCUMENTS/RFP/RFQ

• BUY THESE DOCUMENTS AS EARLY AS POSSIBLE

• PRICING OF THE TENDER DOCUMENTS• ATTACH ALL THE REQUESTED

RETURNABLE DOCUMENTS• COMPLETE ALL THE RETURNABLE FORMS• GET IT SIGNED AND INITIAL EVERY PAGE

TENDER BRIEFING/CLARIFICATION MEETING/SITE VISIT

• 7 DAYS AFTER THE TENDER ADVERTISEMENT OR • 14 DAYS BEFORE TENDER OPENING• COMPULSORY• ATTENDANCE REGISTER; WILL FORM PART OF THE

TENDER EVALUATION• SEEK CLARIFICATION OF THE

TENDER_ERRORS/INCONSISTENCIES/AMBIGUITIES• ASSESS THE COMPETITION• INSPECT THE SITE

TENDER OPENING/CLOSING

• TENDER BOX OPENED• TENDERS OPENED, READ OUT, RECORDED

AND SIGNED• WITNESSES• ATTENDANCE_ NOT COMPULSORY

I WILL ADVISE THAT YOU ATTEND

TENDER EVALUATION/ADJUDICATION

• COMPLETENESS/RESPONSIVENESS• PRE-QUALIFICATION(EXP.& RESOURCES)• ACCURACY( CORRECTION OF ARITHMETIC

ERRORS)• COMPETITIVENESS/RANKING( PRICE,BBB-EE)• SELECT THE BEST TENDER

CONTRACT AWARD

• CONTRACT AWARD/APPOINTMENT LETTER DELIVERED

• SIGNED & INITIALLED BY BOTH PARTIES

• PLEASE CHECK FOR ERRORS,INCONSISTENCIES,AMBIGUITIES AND CORRECT THEM BEFORE SIGNING

CONTRACT AGREEMENT• LEGAL DOCUMENT BETWEEN CONTRACTOR AND

CLIENT• PRE-CONTRACT REQUIREMENTS_FULFILLED

– PERFORMANCE SURETY,OHS PLAN,QMP,EMP,WORK PROGRAM,CASHFLOWS,ALL RISK INSURANCE ETC

• PREPARED,SIGNED AND INITIALLED BY BOTH PARTIES

SITE HANDOVER• CLIENT SHOWING YOU AROUND THE SITE

– SURVEY PEGS, SITE FACILITIES etc• INTRODUCTION TO THE COMMUNITY/SOCIAL

FACILITATOR• CLO APPOINTMENT• HANDOVER OF SITE_ SITE HANDOVER CERTIFICATE• SITE LAYOUT DRAWINGS• SETTING OUT DRAWINGS• COMPULSORY ATTENDANCE• ATTENDANCE REGISTER• WORK COMMENCES

PRE-TENDER PLANNING

• It is the planning a Construction Enterprise(“Contractor) does prior to tender opening.

• A minimum of 21 days is allowed between the tender advertisement and the tender opening.

PRE-TENDER PLANNING_CORE OBJECTIVE

•WIN THE OPEN COMPETITIVE TENDER

•SUCCESSFUL TENDER

PRE-TENDER PLANNING_SUB-OBJECTIVES

• To ensure the most efficient and economical use of labour and plant is considered in the tender pricing_ BEST PRICE(OVER-PRICING/UNDER PRICING?)

• Ensure the tender is priced competitively and accurately._ COMPETITIVE , ACCURATE & COMPLETE PRICE

• To reduce or eliminate, the risk of inaccurate opinions influencing decisions, which affect the tender pricing. _REDUCE PRICE RISK

PRE-TENDER PLANNING PROCESS_10 STEPS

DECISION TO TENDER

PRE-TENDER MEETING

SITE INSPECTION REPORT

PRICE ENQUIRIES TO SUBCONTRACTORS & SUPPLIERS

METHOD STATEMENTS

BUILD-UP OF CONSTRUCTION ESTIMATE

NETWORK, PRE-TENDER PROGRAMME(GANTT CHART)-ROUGH

BUILD UP OF P&GS

ADJUDICATION OF TENDER ESTIMATE

ANALYSIS OF TENDER PERFORMANCE

STUDY & ANALYSIS OF THE TENDER DOCUMENT

PRELIMINARY CASHFLOWS

WBS

PRE-TENDER PLANNING_STUDY & ANALYSIS OF THE TENDER

DOCUMENT/RFP/RFQ• STUDY THOROUGHLY THE FF:

–SCOPE, BOQ,–TENDER CONDITIONS,

• TENDER EVALUATION CRITERIA,• RETURNABLES. ETC

–CONTRACT CONDITIONS, • DURATION OF CONTRACT ETC

–CHECK FOR ERRORS,INCONSISTENCIES,AMBIGUITIES

–ASSESS THEIR RISK AND COST IMPLICATIONS

PRE-TENDER PLANNING_DECISION TO TENDER

• Site Conditions; Site Inspection Report• Technological Factors; New technology, familiar technology• Contractual Factors; Conditions of the contract• Legal Factors; Regulations in the area• Economic Factors: Competition, Interest rates on loans, Availability

of funds• Financial Factors; Profit,ROI, Reserve funds available• Resources Availability; Plant,equipment,labour,materials,sub-

contractors in the area.• Public Relations factors; future job prospects with client,

advertisement to company• Political factors; Trade unions influence, Government spending

policy changes

PRE-TENDER MEETING_PLANNING/PREPARATORY MEETING

•

• Purpose• Plan and phase the activities of the Pre-tender planning phase.

• Chairperson; • MD/GM

• Invitees/tender team: – Office Manager,– Contract Manager,/Contractors Rep/Site Agent– Chief Estimator,– Planning Engineer– Planner,– Chief Buyer – Job Estimator

• Agenda• • Grading of the tender– The degree of interest in the tender (Grade A-D) – Full Treatment to Minimal Treatment• Assigning roles/responsibilities to team leader/team members• Pre-Tender planning/strategy• Obtain team member commitments to their planned deadlines based on current work load.

PRE-TENDER PLANTable 1: Typical Pre-tender program/Gantt chart

Duration

(days) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

1 Pre-tender coordination & Integration

21 Tender doc complete

- Office Manager

1.1* Purchase of tender documents - 0 Tender docs+ proof of purchase

R600 Office Manager

1.2 Tender Study/Analysis 1.1 0 Tender Strategy Office Manager

1.3* Pre-tender Meeting 1.2 Minutes M.D./G.M

1.4 Pre-tender programming 1.3 0 Pre-tender program

Planner

1.5 Tender briefing/clarification meeting/site Visit

1.4 0 Proof of attendance / Site Inspection Report

R200 Contracts Manager

1.6* Returnable documents/forms/certificates compilation

1.1 13 Returnable forms/docs/certificates.completed

R200 Contracts Manager/office manager

1.7 Cost/Technical Risk Analysis 1.5 6 Risk Analysis Report

- Contracts Manager

1.8 Method Statements/Gantt Chart 1.5 4 Method Statements

- Contracts Manager1.9 Send Enquiries/Obtain Quotations

from Suppliers1.3 4 Quotations from

suppliersR500 Buyer

1.10 Tender Estimation 1.7 3 Cost estimates build up

- Estimators/C.M.

1.11* Tender Review/Adjudication 1.10 3 Approved Tender

- M.D./G.M

1.12* Tender Submission 1.11 0 Proof of Tender Submission

R200 Office Manager

1.13 Tender opening/closing 1.12 0 Proof of Attendance

R200 Office Manager

Events

Milestone

Critical ActivitiesCritical path; 1.1-1.6-1.10-1.11-1.12

Pre-tender duration; 21 calendar days

Hammock

Duration(Days) Team member responsible

Item No. Activity Pred. Deliverable Cost

PRE-TENDER PLAN IMPLEMENTATION

• Control the quality of the pre-tender plan execution process.• Pre-tender plan- Schedule activities with floats especially the major activities assigned to other members of the team.

(earliest time and latest time- 2 days)• Conduct a CPM analysis to determine the critical path and critical activities.• Pay special attention to the progress of the critical activities and ensure they are on schedule.• Start the execution of the pre-tender plan as early as possible. Avoid last minute work.

• Mirror the tender data and tender evaluation criteria • Strict and religious adherence to the tender data(conditions of tender/tender specifications/tender requirements)• Start working on the returnables as soon as the tender documents is purchased due to their long lead times.• Returnable forms completely filled out and requisite certificates/documents attached.• Follow up on the tender team’s work progress. Be proactive with help with the team. don’t wait until their work is due.• Check for addendums if there had been any late changes• Talk only of when the tender is “going out” not when it is “due”.• Speak up on negative changes, wrong team members, wrong approach/methodology-Be the tender advocate/defence.• Hand deliver at least a day before the deadline and follow up to ensure delivery.•

PRE-TENDER PLANNING_ TENDER CLARIFICATION MEETING

• 2 WEEKS BEFORE TENDER OPENING• CLARIFY PRICE

ASSUMPTIONS,UNCLEAR/AMBIGUOUS/CONTRADICTORY/ILLOGICAL STATEMENTS IN THE TENDER DOCUMENTS.

• COMPULSORY• ATTENDANCE REGISTER ADMINISTERED.• FORMS PART OF THE RETURNABLES FOR TENDER

EVALUATION• ATTENDANCE REGISTER

PRE-TENDER PLANNING_ SITE INSPECTION

• 2 WEEKS BEFORE TENDER OPENING• COMPULSORY SITE INSPECTION• ATTENDANCE REGISTER ADMINISTERED. FORMS

PART OF THE RETURNABLES FOR TENDER EVALUATION

• SITE INFORMATION GATHERING • SITE EVALUATION AND ITS COST IMPLICATIONS• SITE INSPECTION REPORT

PRE-TENDER PLANNING _SITE INSPECTION/VISIT REPORT

• Locality/location of the site• Transport services available to the site• Location/address of labour employment office (job centre) • Other contracts currently under construction in the area• Condition of access routes to the site• Soil Conditions• Availability of water and electricity • Ground conditions on the site

– Topography– Surface water conditions– Details of trial pits – Water table levels

• Extent of temporary works that is required– Extent of site fencing that is required– Site security and lighting that is required– Temporary services to be provided

• Availability of subcontractors• Availability of local labour• Extent of welfare facilities required• Any other special requirements as pointed out by Engineer or noticed

PRE-TENDER PLANNING_PRICE ENQUIRIES TO SUB-CONTRACTORS

• GOAL:

• SHOP FOR COMPETITIVE AND REALISTIC PRICES (P&E,LABOUR) FROM SUB-CONTRACTORS

• WHICH SUB-CONTRACTOR’S GIVES COMPETITIVE & REALISTIC PRICES?• WHICH SUB-CONTRACTOR’S TO CHOOSE WHEN CONTRACT IS AWARDED?

• FACTORS TO CONSIDER;– No. of trade enquiries – competition– Policy of sharing – good relations– Dates of sub-contracts– Compliance with bill of quantities and specifications – Consistency of unit rates throughout quotation– Rates realistic in relation to that of competitions– Preliminaries and attendances included?– Compliance with main contract (payment conditions/retention)– Onerous (burdensome) conditions– Quality and extent of supervision– Competence and mastery of speciality– Degree to which dependent on further subcontracting– Availability and condition of equipment– Economic and financial stability– Labour policies and practices– Expecting capability– Previous experiences that you and other contractors have had with him (the subcontractor)

PRE-TENDER PLANNING_PRICE ENQUIRIES TO SUPPLIERS

• GOAL:

• SHOP FOR COMPETITIVE AND REALISTIC PRICES (MATERIALS ) FROM SUPPLIERS.

• WHICH SUPPLIERS GIVES COMPETITIVE & REALISTIC PRICES?• WHICH SUPPLIERS TO CHOOSE WHEN CONTRACT IS AWARDED?

• FACTORS TO CONSIDER;– Previous experience that your company, and others have had with supplier– Strength and stability of his business– Experience as a supplier in his field of business– How realistic his quotations are– Quality of his materials– Consistent standards of his materials– How and where he gets his supplies from (buy in or self manufacturer)– Quantity discounts; Cash discounts– Does he undertake to deliver?– Reputation– Reserve facilities– Location in relation to construction site– Internal facilities of supplier (well equipped; conditions of stores etc.)– Labour relations (Any unrests; etc. – Labour policies and practices)– Single or multiple supplier– After sales service– Credit facilities

PRE-TENDER PLANNING_WBS

1.0 CONSTRUCTION PROJECT

1.2 CONSTRUCTION1.1 PRE-CONSTRUCTION

1.1.3 Sign offer & Acceptance

1.1.4 Site Handover

1.2.1 Mobilisation + Site Establishment

1.2.2 Activity 1

1.2.3 Activity 2

1.1.5 Pre-Construction Planning

1.1.2 Contract Requirements; Insurance,Performance surety, OHS Plan, QMP,, EMP, Work Program, Cash flows etc

1.1.1 Letter of Appointment

CLASS EXERCISE_WBS_WATER PIPE LAYING PROJECT

• • Draw up a WBS, Method Statement and a Gantt chart for the

ff.project.• • Excavate a trench 500mm wide with an average depth of 2.5m in soft

material. A 400mm pipe is to be laid in 2.5m sections. The trench is then backfilled using the excavated material. Spoil material is to be ridden away. Trench is 500m long.

• Site Inspection Report; Availability of cheap labour, soft soil etc• • Construction Method/Approach; Labour Intensive • •

• 400mm dia

• 2.5m

• 500m

• 5OOmm

EXAMPLE_WBS_WATER PIPE LAYING1.0 WATER PIPE LAYING

PROJECT

1.2 CONSTRUCTION1.1 PRE-CONSTRUCTION

1.1.3 Sign offer & Acceptance

1.1.4 Site Handover

1.2.1 Mobilisation+ Site Establishment

1.2.2 Site Clearing

1.2.3 Setting Out

1.2.4 Excavation

1.2.5 Pipe Bedding

1.2.6 Pipe laying

1.2.7 Backfill

1.1.5 Pre-Construction Planning1.2.8Compaction

1.2.9 Surface Reinstatement

1.1.2 Contract Requirements; Insurance, Performance Surety, OHS

Plan, QMP,, EMP, Work Program, Cash flows etc

1.1.1 Letter of Appointment

PRE-TENDER PLANNING_CONSTRUCTION METHOD STATEMENT

• CONSTRUCTION METHODS OR• CONSTRUCTION APPROACH

PRE-TENDER PLANNING_CONSTRUCTION METHOD STATEMENTS

• The method statement mainly deals with the method whereby the work will be executed.

• A method statement analyses the various methods available to the contractor to perform an item of work

• egs. • Excavate trenches or pour concrete for

suspended floors, Rock blasting etc

CONSTRUCTION METHOD STATEMENT_EXAMPLE

• Activity: • Excavation and dispose at a distance not exceeding

50m

• Method statement/Methodology; 3 operations• Exc. by hand using hand held tools such as

shovels/spades,fork/fork hoe. • Load exc. material by hand into wheelbarrows. • Haul & dispose by wheelbarrows at a distance not

exceeding 50m.

CONSTRUCTION METHOD STATEMENTS

• DIVIDE WORK ACTIVITY INTO A SERIES OF OPERATIONS

• PROVIDE CMS FOR EACH OPERATION• STATEMENT CLARITY.(BE SPECIFIC)

– METHOD( BY HAND OR BY P&E)–IF BY HAND, WHICH TOOLS?– IF BY P& E, WHICH P&E?– TYPE & QTY OF MATERIALS USED

PRE-TENDER PLANNING_CONSTRUCTION METHOD STATEMENTS

_PRE-REQUISITES

• SCOPE OF WORK(BOQ)• CONTRACT/WORK DURATION• SITE INSPECTION REPORT

–SITE LOCATION,RESOURCE AVAILABILITY,AREA REGULATIONS,LEVEL OF SKILLS,SOIL CONDITIONS ETC

• WORK PRODUCTIVITY/OUTPUT RATES

CONSTRUCTION METHOD/APPROACH

• Method of Construction impacts on the ff; – Duration– Operational Sequence( Network)– Work Program( Gantt Charts) – Resource Requirements( P& E,Labour,Materials) – Cost/Pricing

• The construction team must be given the opportunity at this point to have an input in the method of construction. since they are the men who will eventually have to do the

work and they may well wish to influence some of the methods.

CONSTRUCTION METHOD/APPROACH_DOCUMENTS

Ensure Compliance with the ff;

• C.E. Contract Method Specifications; – SANS 1200 Series

• C.E. Contract Conditions: – GCC 2010

• C.E. construction health & safety standards -OHSA/Construction Regulations

• C.E. Construction code of practice -(SAFCEC/CIDB/MBSA/NHBRC/EPWP)

CONSTRUCTION APPROACH/METHOD

• 2 main types;• LABOUR INTENSIVE/BASED METHOD

– BY HAND USING SMALL TOOLS/EQUIPMENTS

• CAPITAL/EQUIPMENT INTENSIVE METHOD-– MECHANICALLY USING HEAVY PLANT & EQUIPMENTS

LABOUR-INTENSIVE/BASED METHODS

CAPITAL -INTENSIVE METHODS

CONSTRUCTION METHOD• This made up of a sequence of construction

operations• Example; • Activity: Pipe Trench Excavation• Construction Method- Labour Intensive• Construction Operations_ E.L.H.U.D.

• Excavate• Load• Haul• Unload• Dispose

CONSTRUCTION METHOD_DECISION

• SITE CONDITIONS_SITE INSPECTION REPORT• CONTRACT METHOD SPECS• USER-FRIENDLINESS• FLEXIBILITY• ECONOMICAL/COST EFFECTIVENESS• EFFECTIVENESS AND EFFICIENCY• COST-TIME TRADE OFF• CLIENT REQUIREMENTS• OHSA/ CONSTRUCTION REGULATIONS/OHS PLAN• CONTRACT CONDITIONS_GCC 2010• CE CODE OF PRACTICE_SAFCEC/CIDB

CONSTRUCTION METHOD STATEMENT_2 SECTIONS

• SECTION 1; PREPARATORY METHOD STATEMENT–MOBILISATION METHOD STATEMENT–SITE ESTABLISHMENT METHOD STATEMENT

• SECTION 2; CONSTRUCTION METHOD STATEMENT

• -ACTIVITY• -OPERATIONS_METHOD STATEMENT FOR

EACH OPERATION

CONSTRUCTION METHOD STATEMENT_SECTION 1 _PREPARATORY METHOD STATEMENT_EXAMPLE

• Mobilization • Immediately company x is awarded the contract or contract is signed between

the two parties, we will mobilize and take possession of the sites. Materials, construction materials, equipment and personnel will be moved to the site within a period of one week. Two head quarter locations will be identified within the two lots, so that it will be easy for movement of personnel’s, materials and equipment. The essence of the two headquarter locations is to facilitate the easy and continuous supply of materials etc so that work will be speedily done.

• Site Establishment; Base Camp:• • Company x would establish its base camp in an agreed location established by

the Project manager. This camp will house our personnel. Materials, equipments plants and all other accessories to be used for the project will be stocked in the Base Camp.

CONSTRUCTION METHOD STATEMENT_FORMAT

Act.No.

Activity WorkQty(A)

Resource type,Capacity,No.

Method/Approach

Resource OutputRate(B)

Resource Required(C=A/B)

Resource Available(D)

Duration(C/D)

CONSTRUCTION METHOD STATEMENT_EXAMPLE 1

Act.No.

Activity WorkQty(A)


Method/Approach


Resource Required(A/B)


Duration(C/D)

1.0 Excavate sticky soil an area of 7 m long, 4 m wide and 1 m deep and dispose not exceeding 50m

7m x 4m x 1m = 28 m3

7 Local labourers

Exc. By hand using hand held tools such as shovels/spades,fork/fork hoe. load exc. material by hand into wheelbarrows Haul & dispose by wheelbarrows at a distance not exceeding 50m H.U.D.

2 m3/md

14 mds 7 mds/day

2 days

Scope: Excavate sticky soil over an area of 7 m long, 4 m wide and 1 m deep and dispose not exceeding 50m.Contract period: 1 daySite Inspection report: Availability of cheap inexperienced labour, soft ground etc Construction Method/Approach; Labour IntensiveOperational Sequence-3 operations Exc-load-transport(haul)-unload-dispose ( E.L.H.U.D.)


• Checks• Compare to 1 day contract period stipulated in the

conditions of contract(tender documents) if it agrees. If it does not then you crash(increase resources) or fast track(overlap) activities using the inter-relationship between the activities.


Act.No.

Activity WorkQty(A)


Method/Approach


Resource Required(A/B)


Duration(C/D)

1.0 Cast 11m3 of vibrated reinforced concrete 1:2:4 in foundation footings

11m3 7 Local labourers

Batch cement and other aggregates manually using headpansMix constituents using a concrete mixerTransport concrete mixture manually using wheelbarrows/headpansPlace manually using tamping rods to vibrateCure manually using a water hose

0.8m3/md

14 mds 7 mds/day

2 days

Scope: Cast 11m3 of vibrated reinforced concrete 1:2:4 in foundation footingsContract Period: 1 daySite Inspection report: Availability of cheap inexperienced labour, soft ground etcConstruction Method/Approach; Labour IntensiveOperational Sequence-5 sequence of operations Batch-Mix-Transport-Place-Vibrate-Cure


• Checks• Compare to 1 day Contract period stipulated in the

conditions of contract(tender documents) if it agrees. If it does not then you crash(increase resources) or fast track(overlap) activities using the inter-relationship between the activities.


• Scope of Work(SOW):

• Reduced level excavation is to be carried out for a housing project. The area of the site on plan in 200m by 150m and an average excavation depth of 0.50m are to be carted off the site to a nearby tip.

• Quantity of work; 200m x 150m x 0.50m = 15,000 m3

• Contract Period: 12 days

• Site Inspection Report• • Good access to site by means of existing streets which should be left in position until the excavation

work is complete.• Local authority tipping facilities located 3 km from the site. Tipping fee R1.00 per load• Surface material to be excavated consists of filling material remaining from demolished properties.

A number of cellars are apparent on the block plans for the site. The existing site is reasonably level.


• Construction Method/Approach; • Capital/Equipment Intensive• • Operational Sequence; 4 or 5 sequences of operations• Setting out• Exc-Load-transport(haul)-Unload/Dispose and return- direct• OR• Setting out• Exc-push to spoil heaps-Exc-load-transport(haul)-Unload/dispose

and return- Indirect

Compare alternatives on the basis of cost


• Resource Type, Capacity,Number; • • 3 No. tracked hydraulic excavator fitted with 1.5-2m3 capacity bucket. (TLB) • 9 No. 8-10 m3 capacity tipper trucks • 2 No. Drag lines fitted with 2 m3 buckets• 2 No. D6 Bull Dozer• 1 No. Crawler Tractor

• 1 Banks man• • • Alternative Methods that could be considered include:• • Alt-1• Use of 1 crawler tractor to excavate, 3 hydraulic excavator with a 1.5 m3 capacity bucket to load nine(9) No. 8-10m3 capacity

tipper trucks which will transport, offload and return.• 1 Banks man

• Alt-2• Use of 2 D6 bulldozer to excavate and push the material into spoil heaps adjacent to the access roads. • Excavate spoil heaps using 2 draglines fitted with 2 m3 buckets located on top of spoil heaps and directly load 8 tipper trucks

which will transport, offload and return.• 1 Banks man•

Activity

Qty (A)

Resource Type,Capacity,No.

Method Statement

Resource prod.rate(B)

Resource Required (C=A/B)

Resources Available(D)

Duration (C/D)

Reduced Level Excavation

15000 m3

3 TLBs fitted with 1.5- 2 m3 bucket+ 3 tipper trucks 8-10 m3 per TLB 1 Bankman

3 TLB excavate & Load 9 tipper trucks direct, transport,off load at tip off site and return

TLB- 45 m3/hour (loading) 3 TLBS- 135m3/hour 12mins to Exc+load one(1) 9m3 truck Assume 24 mins for 1 truck to transport, offload and return To achieve work balance; 24/12= 2 trucks +1= 3 trucks

112 machine hours(3 TLBS + 9 trucks)

3 TLBs+ 9 trucks 1 bankman

112 hours= 14 days

CONSTRUCTION METHOD STATEMENT_ALTERNATIVE 1

CONSTRUCTION METHOD STATEMENT _ALTERNATIVE 2

Activity Qty (A)

Resource Type,Capacity,No.

Method Statement

Resource prod.rate(B)

Resource Required (C=A/B)

Resources Available(D)

Duration (C/D)

Reduced Level Excavation

15000 m3

2 D6 Bull dozers 2 draglines fitted with 2 m3 buckets 2 tipper trucks 8-10 m3 per dragline 1 Bankman

2 D6 Bull dozers to excavate and push material to spoil heaps adjacent to access road, 2 draglines fitted with 2 m3 buckets to be located on top of each spoil heap. Draglines Load 8 tipper trucks,transport,offload and return

D6 Dozer-120m3/hour-Exc+push 2 D6 Dozers- 240m3/hour Dragline- 75m3/hour( Exc+load) 2 Draglines- 150m3/hour 7.2 mins to Exc+load one(1) 9m3 truck Assume 7 mins for truck to transport,offload and return To achieve work balance; 7 /7.2= 1 trucks +1= 2 trucks

62.5 machine hrs( 2 D6 dozers) 100 hrs(2 draglines)

2 D6 Bull dozers 2 draglines fitted with 2 m3 buckets 2 tipper trucks 8-10 m3 per dragline 1 Bankman

62.5 hrs= 8 days 100 hours= 12 days


• Checks• Compare to Contract period stipulated in the

conditions of contract(tender documents) if it agrees. If it does not then you crash(increase resources) or fast track( overlap) activities using the inter-relationship between the activities.

• Alternative 1 is the best method

CLASS EXERCISE_METHOD STATEMENT SOW• Excavate a trench 500mm wide with an average depth of 2.5m in soft

material. A 400mm pipe is to be laid in 2.5m sections. The trench is then backfilled using the excavated material. Spoil material is to be ridden away. Trench is 500m long.

• Contract Period: 30 days

• Site Inspection Report; • Availability of cheap labour, soft soil,medium dense bush etc• • Construction Method/Approach; • Labour Intensive • •

CLASS EXERCISE_DRAWING

• 400mm dia

• 2.5m

• 500m

• 5OOmm

CLASS EXERCISE_BOQAct No. Activity Qty Work Output Rate

1,2,1 Site Clearing 250m2 350m2/md

1.2.2 Setting Out 500m 15m/gd

1.2.3 Excavation 625m3 5m3/md

1.2.4 Pipe Bedding 12.5m3 5m3/md

1.2.5 Pipe laying 500m 19m/md

1.2.6 Backfill & Compaction 550m3 3 m3/md

1.2.7 Surface Reinstatement 250m2 3 m2/md

CLASS EXERCISE_SECTION 1- PREPARATORY METHOD STATEMENT

• Mobilization• Immediately company x is awarded the contract or contract is

signed between the two parties, we will mobilize and take possession of the sites. Materials, construction materials, equipment and personnel will be moved to the site within a period of one week.

• Site Establishment; Base Camp:

• Company x would establish its base camp in an agreed location established by the Project manager. This camp will house our personnel. Materials, equipments plants and all other accessories to be used for the project will be stocked in the Base Camp.

CLASS EXERCISE_SECTION 2- CONSTRUCTION METHOD STATEMENT

Act.No.

Activity WorkQty(A)


Method/Approach


Resource Required(C=A/B)


Duration(C/D)

1,2,1 Site Clearing

250m2 1 lab 350m2/md 0.7 mds 1 md/day 1 day

1.2.2 Setting Out 500m 12 gangs 15m/gd 34 gds 12 gds/day 3 days

1.2.3 Excavation 625m3 25 labs 5m3/md 125mds 25mds/day 5 days

1.2.4 Pipe Bedding

12.5m3 2 labs 5m3/md 2.5mds 2 mds/day 1.2 days

1.2.5 Pipe laying 500m 5 labs 19m/md 26.3mds 5 mds/day 5 days

1.2.6 Backfill & Compaction

550m3 25 labs 3m3/md 183.3mds 25 mds/day 8 days

1.2.7 Surface Reinstatement

250m2 25 labs 3m2/md 83.3 mds 25mds/day 4 days

PRE-TENDER PROGRAMCLASS EXERCISE_GANTT CHART

Prepare the table of predecessors, network diagram and the gantt chart

CLASS EXERCISE_TABLE OF PREDECESSORSWBS code Activity Name Predecessors Duration

(days)

1.2.1 Mob+Site Establishment

- 5

1.2.2 Site Clearing - 1

1.2.3 Setting Out 1.2.1,1.2.2 3

1.2.4 Exc. 1.2.3 5

1.2.5 Pipe Bedding 1.2.3 1.2

1.2.6 Pipe Laying 1,2.4, 1.2.5 5

1.2.7 Backfill+Compaction

1.2.6 8

1.2.8 Surface Reinstatement 1.2.7 4

CLASS EXERCISE_NETWORK DIAGRAM

1.2.15

1.2.21

1.2.33

1.2.45

1.2.51.2

1.2.65

1.2.78

1.2.84start

Critical Path; start-1.2.1-1.2.3-1.2.4-1.2.6-1.2.7-1.2.8Project Duration: 5+3+5+5+8+4 = 30 days

CLASS EXERCISE_GANTT CHARTWBS code

Activity Name

Pr. Dur(days)

Duration(days)

1 2 3 4 5 6 7 8 9 10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

1.2.2

Site Clearing

1.1 1

1.2.3

Setting Out

1.2 3

1.2.4

Exc. 1.3 5

1.2.5

Pipe Bedding

1.4 1.2

1.2.6

Pipe Laying

1.5 5

1.2.7

Backfill+Compaction

1.6 8

1.2.8

Surface Reinstatement

1.7 4

PRE-TENDER PROGRAM_CLASS EXERCISE

• Compare the planned duration of the project to the Contract period stipulated in the conditions of contract(tender documents) if it agrees. If it does not then you crash(increase resources) or fast track( overlap) activities using the inter-relationship between the activities.

• Its extremely important that the contractor does not run over the contract period. There are substantial penalty and bonus clauses for most contracts.

• • The Contractor may submit an alternative tender stipulating

a lower time period with an alternative price.

COST ESTIMATES BUILD-UPPRE-REQUISITES

• SCOPE OF WORK(BOQ)• SITE INSPECTION REPORT

– SITE LOCATION,RESOURCE AVAILABILITY,AREA REGULATIONS,LEVEL OF SKILLS,SOIL CONDITIONS ETC

• PRICE ENQUIRIES(SUB-CONTRACTORS/SUPPLIERS)• METHOD STATEMENT• GANTT CHART

COST ESTIMATE BUILD-UP

• SECTION A- PRELIMINARIES & GENERAL ITEMS(P&GS)

• SECTION B- THE WORKS(“PERMANENT WORKS”)

BUILD UP OF THE WORKS(“PERMANENT”) ESTIMATE-B

• FOR EACH ACTIVITY/WORK ITEM ESTIMATE THE;– LABOUR COST– P&E COST– MATERIAL COST

• DIRECT COST • =LABOUR COST+P&E COST+MATERIAL COST

• USE WORKS ESTIMATE TEMPLATE PROVIDED. • TRIPLE CHECK THE ARITHMETICS ON THE COST

ESTIMATES

CLASS EXERCISE_ BUILD-UP OF WORKS(“PERMANENT”) ESTIMATE-B

• COMPLETE CLASS EXERCISE

P&Gs BUILD-UP -A

• Pre-construction Expenses• Preparatory works expenses• Other Site overheads.• Provisional Sums• ADD Profit & Overheads

• They are claimed by the contractor on a pro-rata/proportion basis

P&Gs BUILD-UP_PRE-REQUISITES

• SCOPE OF WORK(BOQ)• SITE INSPECTION REPORT

• SITE LOCATION,RESOURCE AVAILABILITY,AREA REGULATIONS,LEVEL OF SKILLS,SOIL CONDITIONS ETC

• METHOD STATEMENT• GANTT CHART

P&Gs BUILD-UP_COST ITEMS

• Fixed Cost/Charge/ Value related Items• Time-Related Items• Specified Provisional Items/ Sums• Prime costs (PC) Items• Day works Items• Temporary Works/Items• Relocation of Existing Services• Health & Safety( OHSA) Items • Environmental Management Items• Installation & Commissioning Items

• TRIPLE CHECK THE ARITHMETICS ON THE P&Gs

•

BUILD-UP OF P&Gs-A

• Fixed Cost/Charge/ Value related Items• Contractual Requirements

– Cost of Insurance of works– Cost of performance bond and surety

• Establishment +de-establishment of Site facilities;– Furnished Site offices,ablution facilities etc_ Contractor– Furnished Site offices,ablution facilities etc_Engineer– Name Boards

• Small plant/tools• Final clearance and hand over• Priced as a LUMPSUM

BUILD-UP OF P&Gs-A• Time-Related Items• O& M of site facilities( Contractors and Engineers offices)• Site Supervision(Supervisor)• Security/Lighting• Welfare and safety provisions( Toilets/Kitchen)• Site transport services/Travel Expenses(Operators)• Site accommodation• Water• Head office charges, • Employment of CLO/Labour Officer • Add profit & overheads(%) on employment of CLO/Labour officer• Priced on a TIME-BASIS(price per month/day/weeks)

BUILD-UP OF P&Gs-A• Specified Provisional Sums( SPS)• Are estimates of additional work that have a high likelihood of being required

but were not quantified at the time the Bill of Quantities was drawn up. • Cost of work which at the tender stage has not been sufficiently defined to

enable it to be priced by tenderers.Eg. water supply, piling etc.• Cost of work to be done by specialist firms/sub-contractors eg. geotechnical

investigations by geotechnical engineers, Setting out, supply of Mechanical plant and hoisting, Scaffolding and gantries

• Provisional sums are a way of adding some extra money to the construction budget.

• The work itself is only undertaken on instruction from the Engineer.• It may or may not be carried out by the contractor• QC & QA Inspections and testing• A LUMPSUM is written into the Bill. • Contractor only tenders a % of the Lumpsum for overheads, attendance

charges and profit.

BUILD-UP OF P&Gs-A• Prime costs (PC)• Are fixed sums added to the Bill to compensate for

delays incurred on items (like special materials, services by local authorities, items with a long delivery lead time) normally ordered by the Client and that are to be paid for through the contract and may be installed by the Contractor.

• The Prime Cost is shown as a LUMPSUM in the Bill • Contractor is asked to tender a % of the lumpsum to

cover his overheads, charges and profit+ a sum for the transport, plant and labour needed to install the item.

BUILD-UP OF P&Gs-A• Day works • Method of valuing work on the basis of time spent by the

workmen, materials used and the plant employed• Is a work or material item which cannot in terms of the

contract be measured in terms of dimensions. • Has to be measured in terms of time and cost eg.

dewatering • A day work schedule is often included.

– A schedule of rates(cost/unit) for the various types of labour, plant and materials that may be used.

• The Contractor is asked to price the day work schedule, or a % (to cover his overheads, charges and profit) to be added to actual costs of labour, materials and plant.

BUILD-UP OF P&Gs-A• Temporary Works/Items• Coffer dams and access roads• Notice Boards• Road Signs• Fencing• Temporary utility lines connections• Temporary services and reinstatement• Public Services – electric, gas, telephones, fees and rates• Temporary water installations• Priced as a LUMPSUM

BUILD-UP OF P&Gs-A• Relocation of Existing Services• Cost of Excavation by hand in soft and

intermediate material to expose services.• Priced as a LUMPSUM

BUILD-UP OF P&Gs-A

• Health & Safety( OHSA)• Fixed charge Costs_ OHS Plan• Time related Costs_OHS Monthly Audits• Placed as a LUMPSUM or TIME-BASED in

the Bill.• Contractor provides a % of the lumpsum

or time-based for Profits,attendance and Overheads

BUILD-UP OF P&Gs-A

• Environmental Management• The cost of additional works not covered elsewhere

required to ensure compliance with the EMP and Record of Decision

• Priced as a LUMPSUM

BUILD-UP OF P&Gs-A

• Installation & Commissioning• Installation & commissioning of all

mechanical equipment• Priced as a LUMPSUM

BUILD-UP OF P&Gs-A

• The following preliminary items are affected by the location of the site

– Travelling expenses for operatives– Provision of site transport and vehicle for site manager’s

use – Access problems associated with undertaking the works– Temporary hardstandings for plant– Extent of temporary access roads

BUILD-UP OF P&Gs-ACLASS EXERCISE

• COMPLETE CLASS EXERCISE

ADJUDICATION OF ESTIMATE

• Convert the cost estimate into a tender

• Top management to decide on the ff:–Profit and Overheads mark-up( 25%)–Contingencies (15%)–Price Escalations (10%)–Discount offer (5%)

RECORDS & ANALYSIS OF TENDER PERFORMANCE

• Records of all past tender results whether won or lost.

• This record must include all the parties that tendered and all the tender prices.

• THIS IS WHY YOU MUST ATTEND THE TENDER OPENING AND TAKE RECORDS

RECORDS & ANALYSIS OF TENDER PERFORMANCE

These tender results/records can be used to analyse alterations necessary in the;– Profit and overheads mark-up,– Contingencies,–Price escalations –Discounts–Tendering policy.

TENDER _ SUMMARY• Ps& Gs COST ESTIMATE-A • WORKS COST ESTIMATE –B

– ACTIVITY 1– ACTIVITY 2– .– .

• TOTAL-WORKS-B • NET TOTAL(A+B) • LESS SPS • NET TOTAL LESS SPS • ADD 15% CONTINGENCIES • SUBTOTAL- 1 • ADD 10% ESCALATION • SUBTOTAL-2 • ADD 14% VAT • TENDERED SUM/TENDER PRICE

ADJUDICATION OF ESTIMATE_CLASS EXERCISE

• CONVERT COST ESTIMATES TO TENDER

• DECIDE ON THE FF;–Profit and Overheads mark-up( 25%)–Contingencies (15%)–Price Escalations (10%)–Discount offer (5%)

TENDER _ SUMMARYCLASS EXERCISE

• Ps& Gs COST ESTIMATE - 278,120.00• WORKS COST ESTIMATE - 391,498.75• NET TOTAL(A+B) -669,618.75• LESS SPS - (138,500.00)• NET TOTAL LESS SPS - 531,118.75• ADD 15% CONTINGENCIES - 79,667.81• SUBTOTAL- 1 - 610,786.56• ADD 10% ESCALATION - 61,078.65• SUBTOTAL-2 -671,865.21• ADD 14% VAT - 94,061.13• TENDERED SUM/TENDER PRICE -765,926.34


• Ps& Gs COST ESTIMATE -A - 278,120.00

• WORKS COST ESTIMATE-B– SITE CLEARING– SETTING OUT– EXCAVATION– PIPE BEDDING– PIPE LAYING– BACKFILL & COMPACTION– SURFACE REINSTATEMENT

TOTALS-WORKS -B - 391,498.75• NET TOTAL(A+B) -669,618.75• LESS SPS - (138,500.00)• NET TOTAL LESS SPS - 531,118.75• ADD 15% CONTINGENCIES - 79,667.81• SUBTOTAL- 1 - 610,786.56• ADD 10% ESCALATION - 61,078.65• SUBTOTAL-2 -671,865.21• ADD 14% VAT - 94,061.13• TENDERED SUM/TENDER PRICE -765,926.34

CASHFLOW BUDGETS_2 TYPES

• CASHFLOW BUDGET– S-CURVE ( EVM PURPOSES)– WORK PROGRAM- RELATED

112

WORK-PROGRAM RELATED CASHFLOW BUDGET

CLASS EXERCISE

CUMULATIVECOST

BUDGET(R)

TIME(DAYS)30

669,618.75

113

CASHFLOW BUDGET( ¼ -1/3 S-CURVE)CLASS EXERCISE

DIRECT COSTBUDGET(R)

TIME(DAYS)30

313,199¼ - 1/3 S-CURVE

114

CASHFLOW BUDGET(S-CURVE)

MONTH CUMULATIVE COST BUDGET(S-CURVE)

MONTHLY COST BUDGET

0 0 0

1 . .

2 . .

3 . .

4 . .

. . .

. . .

30

TOTALS

CASHFLOWS• The cash flows is a representation of the speed at

which work is expected to progress.– SLOW-FAST-SLOW

• The cash flows is also a representation of the value of work expected to be produced per day or week or month.

• The cash flows also gives you the days, weeks or months of highest production.


COST TYPE AMOUNT % OF TOTAL

DIRECT COST 313,199.00 41

INDIRECT COST

H/O OVERHEADS-10% 31,319.90 4.1

PROFIT -15% 46,979.85 6.1

P&GS 278,120.00

LESS SPS (138,500.00)

P&GS LESS SPS 139,620.00 18.2

CONTINGENCY 79,667.81 10.4

EXCALATION 61,078.65 8

VAT 94,061.13 12.2

TOTALS 765,926.34 100

WORKING CAPITAL _ SUMMARYCLASS EXERCISE

COST TYPE AMOUNT % OF TOTAL

DIRECT COST 313,199.00 41

INDIRECT COST

H/O OVERHEADS-10% 31,319.90 4.1

P&GS LESS SPS 139,620.00

P&GS LESS SPS LESS PROFIT 121,408.70 15.8

TOTALS 465,927.60 60.9%

WORKING CAPITAL = 60% OF THE TENDERED SUM

PRE-TENDER PLANNING_DOCUMENTS

• All documents produced or used must be filed for future use–Copies of completed tender documents–Minutes of pre-tender meetings–Pre-tender plan–Method Statements–Gantt charts etc.

PRE-CONTRACT PLANNING_3 PHASES

• PRE-CONSTRUCTION PHASE• CONSTRUCTION PHASE• POST-CONSTRUCTION PHASE

PRE- CONTRACT/CONSTRUCTION PHASE

1.1.4 Sign Offer & Acceptance

1.1.3 Contract Requirements; Insurance, Performance Surety, OHS Plan, QMP,, EMP, Work Program, Cash flows etc

1.1.2 Issue the Letter of Appointment

14days

1.1.5 Documents Approval & Site Handover/Work Commencement

7 days

CONSTRUCTION/CONTRACT PHASE

SNAGGING(PHYSICAL DEFECTS)

DE-SNAGGING(FIX PHYSICAL DEFECTS)

WORK COMMENCEMENTN

PRACTICAL COMPLETIONPRACTICAL COMPLETION CERTIFICATE,

50% RETENTION RELEASE

WORKS COMPLETEDN

Contract Period

14 Days

14 Days

POST-CONTRACT/CONSTRUCTION PHASE

PRACTICAL COMPLETIONPRACTICAL COMPLETION CERTIFICATE, 50% RETENTION RELEASE

SNAGGING(LATENT DEFECTS)

DE-SNAGGING

FINAL COMPLETION, FINAL COMPLETION

CERTIFICATE, 50% RETENTION RELEASE

DEFECTS LIABILITY PERIOD

( 6-12 MONTHS)

WORKS COMPLETION

14 days

14 days

PRE-CONTRACT PLANNING

• After the tender is awarded and before the work on site commences a certain amount of planning is required by Contracting team.

• • SAFCEC recommends a reasonable period( 21 days) for this purpose

to allow the contractor to draw upon his resources, establish the site and make the necessary arrangements to start construction.

• A commencement date is normally stated in the contract schedule.

PRE-CONTRACT PLANNING_OBJECTIVES

• To set up baselines(time, cost, performance) for monitoring and controlling of the project activities and progress in order to reach the completion target.

PRE-CONTRACT PLANNING_PRE-REQUISITES

• SCOPE OF WORK(BOQ)• CONTRACT/WORK DURATION• METHOD STATEMENT• GANTT CHART• COST ESTIMATES• SITE INSPECTION REPORT

–SITE LOCATION,RESOURCE AVAILABILITY,AREA REGULATIONS,LEVEL OF SKILLS,SOIL CONDITIONS ETC

LETTER OF APPOINTMENT

• Approval /Acceptance of the tender offer.• Letter of appointment/award• 7 days

FULFILL CONTRACTUAL REQUIREMENTS

• 14 Days• Acceptance letters, • Performance surety, (Bank/finance institution provided)• Insurance( All Risk)• Workmen compensation insurance-COIDA• OHS plan and approval. • QMP and approval• EMP, permits and approvals• Form of offer and acceptance completed and signed • Commencement date; date of signing and completion of the Form

of offer and acceptance. • Project can be handed over and work commenced after the Form

of offer and acceptance is completed and signed.( 7 days)

INITIAL CONTACTS

• CLIENT• ENGINEER• STATUTORY AUTHORITIES;DOL,DEDEAT• MATERIAL SUPPLIERS• OWN/NOMINATED SUB-CONTRACTORS• PLANT HIRE FIRMS• OWN STAFF( SHARE GOOD NEWS)• PROSPECTIVE SITE MANAGER APPOINTMENT

PRE-CONTRACT MEETING_PLANNING/PREPARATORY MEETING

•

• Purpose• Plan and phase the activities of the pre-construction , construction and post-construction phases.

• Chairperson; • Chief Estimator

• Invitees/Pre-contract planning team: – Chief Estimator, – Buyer, – Chief QS– Office manager– Contracts Manager (in consultation with his site agents and Foremen)– Chief planning Engineer – Plant Manager – HR Manager. – Site Manager/Agent

• Agenda• Announce the Award of the contract• Acquaint the team with the general background information on the tender.• Assigning roles/responsibilities to team leader/team members• Pre- contract planning/strategy• Obtain team member commitments to their planned deadlines based on current work load.

PRE-CONTRACT PLAN4.0 PRE-CONTRACT PROGRAMMING

Table 1: Typical Pre-contract program/Gantt chart

Duration

(days) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

1 Pre-contract coordination & Integration 21 Work Commencement Contracts Manager

1.1 Collect Letter of Appointment - Letter of Appointment Contracts Manager

1.2 Fulfill Contractual Requirements 1.1 14 Insurance,Performance Surety,Work Program,OHS,EMP,QMP etc

Office Manager

1.3 Contact Contractual Parties 1.2 3 Contract Manager

1.4 Pre-Contract Planning Meeting 1.3 0 Minutes Chief Estimator

1.5 Pre-contract programming 1.3 0 Pre-contract program Planner

1.6 Registration of Drawings 1.4,1.5 0 Drawing Register & Contracts Record Book

Contracts Manager

1.7 Site Layout plannning 1.4,1.5 5 Site Layout plan C.M./Site Manager

1.8 Drawing up of Org.structure 1.4,1.5 0 Project Org.Structure C.M.

1.9 Labour Resource Loading/Levelling 1.4,1.5 0 Resource Curve/histograms Chief planning Engineer/C.M.

1.10 Revise Construction Methods 1.9 0 Construction Method Statement

1.11 Draw up a master & Section program(works) 1.10 3 Master Program(Works) Chief planning Engineer/C.M.

1.12 Prepare Resource Requirement Schedules 1.11 5 Resource Requirement Schedules

C.M./Site Manager/Planner/Estimator

1.13 Preparation & Approval of Expenditure Budgets 1.12 3 Project Exp.Budget C.M.

1.14 Preparation of Cashflow Budget & Contract doc 1.13 4 Cashflow forecast & Contract docs

Chief QS

1.15 Place orders with sub-contractors/suppliers 1.12 0 Sub-contractor/suppliers orders

Buyer

1.16 Arrangement for Site office logistics & licences, permits,notices etc

1.7 12 Site office logistics & permits,licences,notices etc.

O.M.

1.17 Site Handover/Work Commencement 1.16 0 Site Handover Certificate/Letter of Appointment

Contracts/Site Manager

Non-Critical Activity

Milestone

Critical Activity

Critical path; 1.1-1.3-1.4-1.5-1.6-1.8-1.9-1.10-1.11-1.12-1.13-1.14-1.17

Pre-contract duration; 21 days

Hammock

Team member responsibleItem No. Activity Pred. Deliverable

CONTRACT RECORDS

• Records of all contract information• Contractual claims• Drawing Register

– Record the issue date of drawings received from the Engineer and other consultants.

• Site Instruction Book– Record the issue date of site instructions received from

the Engineer and other consultants.

PLANNING SITE LAYOUT

• This enables the site manager to consider access problems, the siting of offices, site accommodation location of plant, storage facilities etc.

• Site layout drawing with relevant information

SITE LAYOUT PLAN_EXAMPLE

TEMPORARY SITE SERVICES

• Applications must be made for all temporary services requirements during the pre-contract period, e.g. water, electricity and telephone services.

OBTAIN LICENCES,PERMITS,NOTICES• Licences;

– Hoardings, gantries over a public right of way.(DOT) – Storage of petrol or explosives on site.

• Permits;

– Construction work(DOL)– Road closures,(DOT) – Road/River Crossings– Part road closures, (DOT)– Catering facilities on site (DOL)– Overtime working.(DOL)

• Notices;– Rock Blasting– Deep Excavations– De-watering

136

ORGANISATIONAL STRUCTURE/ORGANOGRAM

• THE STRUCTURE WITHIN WHICH THE PROJECT WILL BE ORGANISED.

• FEATURES;• DESIGNATIONS(POSTS)• RESPONSIBILITIES/DUTIES• INTERRELATIONSHIPS(AUTHORITY LINES)• COMMUNICATION LINES

137

A Project Organisational structure; A classroom block, R5million contract

H/O

C.M.

P.M.Store boy/Time clerk Estimator/Buyer

Site Agent-Building Works Site Agent-Civil Works Site Agent-Access Road

Foremen Foremen Foremen

Artisans

Labourers

Artisans

Labourers

Artisans

Labourers

RESOURCE REQUIREMENTSLABOUR RESOURCE SCHEDULE

• METHOD STATEMENT(TENDER STAGE)• GANTT CHART(TENDER STAGE)• LABOUR HISTOGRAM/CURVE• LABOUR RESOURCE AVAILABLE/DAY• RESOURCE OVERLOAD/OVER-

SCHEDULING

CLASS EXERCISE_LABOUR HISTOGRAMWBS code

Act. Lab.Req.

Dur(days)

Duration(days)

1 2 3 4 5 6 7 8 9 10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

2. B 1 1 1

3. C 48 3 48

48

48

4. D 25 5 25

25

25

25

5. E 2 1.2 2

6. F 5 5 5 5 5 5 5

7. G 25 8 25

25

25

25

25

25

25

25

8. H 25 4 25

25

25

25

Total Labour

1 48

48

48

25

25

25

27

5 5 5 5 5 25

25

25

25

25

25

25

25

25

25

25

25

Cum Labour 1 49

97

145

170

195

220

247

252

257

262

267

272

297

322

347

372

397

422

447

472

497

522

547

572

140

LABOUR HISTOGRAM_CLASS EXERCISE

LABOUR

TIME(DAYS)

Labour Availability

141

LABOUR CURVE_CLASS EXERCISE

CUMULATIVELABOUR

TIME(DAYS)30

572

LABOUR RESOURCE SCHEDULE_CLASS EXERCISE

• From the METHOD STATEMENT & GANTT CHART drawn at the tender stage–DRAW LABOUR HISTOGRAM–ASSUME LABOUR RESOURCE

AVAILABLE/DAY–RESOURCE OVERLOAD/OVER-SCHEDULE

RESOURCE REQUIREMENTS LABOUR RESOURCE LEVELLING

• REDISTRIBUTION OF SCHEDULED LABOUR RESOURCES– MOVE RESOURCES FROM NON-CRITICAL ACTIVITIES TO

CRITICAL ACTIVITIES – RESCHEDULE NON-CRITICAL ACTIVITIES– KEEP THE NETWORK LOGIC

• REVISE GANTT CHART• REVISE NETWORK • RE-DRAW LEVELLED LABOUR HISTOGRAM • RE-DRAW LABOUR CURVE • REVISE METHOD STATEMENT

LABOUR HISTOGRAM_EXAMPLETABLE OF PREDECESSORSTask Lab.required/day Duration PredecessorA 2 2 -B 2 2 AC 6 4 AD 3 2 BE 1 5 CF 2 1 D,E

NETWORK DIAGRAM

B D2 2

A F2 1

C E4 5

CRITICAL PATH A-C-E-FDURATION 12 DAYS

GANTT CHART

1 2 3 4 5 6 7 8 9 10 11 12A 2 2 - 2 2B 2 2 A 2 2C 6 4 A 6 6 6 6D 3 2 B 3 3E 1 5 C 1 1 1 1 1F 2 1 D,E 2

2 2 8 8 9 9 1 1 1 1 1 22 4 12 20 29 38 39 40 41 42 43 45

Duration(Days)

CumulativeTotals

ActivityLab.required/day Duration

Predecessor

LABOUR HISTOGRAM

RESOURCE OVER-LOAD/OVER-SCHEDULELabour Required/day 12

1110

987 Labour Available= 6 men/day654321

Duration(days)

REVISED GANTT CHART

1 2 3 4 5 6 7 8 9 10 11 12A 3 1 - 3 2/3*2=1 dayB 1 4 A 1 1 1 1 2/1*2=4 daysC 5 5 A 5 5 5 5 5 6/5*4=4.8 daysD 1 6 B 1 1 1 1 1 1 3/1*2=6 daysE 1 5 C 1 1 1 1 1F 2 1 D,E 2

3 6 6 6 6 6 2 2 2 2 2 23 9 15 21 27 33 35 37 39 41 43 45

TotalsCumulative

Duration CalculationsActivity

Lab.required/day Duration

Predecessor

Duration(Days)

LEVELLED LABOUR HISTOGRAM

RESOURCE LEVELLEDLabour Required/day 12

1110


Duration(days)

LABOUR CURVE

0

5

10

15

20

25

30

35

40

45

50

1 2 3 4 5 6 7 8 9 10 11 12

Cum

ulati

ve L

abou

r Req

uire

d/da

y

Duration(days)

Labour Curve

REVISED NETWORK

B D4 6

A F1 1

C E5 5

2 CRITICAL PATHS A-C-E-F & A-B-D-FDURATION 12 DAYS

LABOUR RESOURCE LEVELLING_EXAMPLE

Activity Lab.required/day Duration PredecessorA 2 2 -B 3 3 AC 3 6 AD 2 2 AE 3 5 BF 2 7 CG 3 3 DH 2 1 E,F,G

NETWORK DIAGRAM

D G2 3

A B E H2 3 5 1

C F6 7

CRITICAL PATH A-C-F-HDURATION 16 DAYS

GANTT CHART

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16A 2 2 - 2 2B 3 3 A 3 3 3C 3 6 A 3 3 3 3 3 3D 2 2 A 2 2E 3 5 B 3 3 3 3 3F 2 7 C 2 2 2 2 2 2 2G 3 3 D 3 3 3H 2 1 E,F,G 2

2 2 8 8 9 9 9 6 5 5 2 2 2 2 2 22 4 12 20 29 38 47 53 58 63 65 67 69 71 73 75Cumulative

Totals

Duration(Days)Activity

Lab.required/day Duration Predecessor

LABOUR HISTOGRAM

Labour Required/day RESOURCE OVER-LOAD/OVER-SCHEDULE


Duration(days)

REVISED GANTT CHART

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16A 3 1 - 3 2/3*2= 1 dayB 1 9 A 1 1 1 1 1 1 1 1 1 3/1*3=9 daysC 3 6 A 3 3 3 3 3 3D 1 4 A 1 1 1 1 2/1*2=4 daysE 2 7.5 B 2 2 2 2 2 2 2 2 3/2*5 = 7.5 daysF 2 7 C 2 2 2 2 2 2 2G 1 9 D 1 1 1 1 1 1 1 1 1 3/1*3 = 9 daysH 2 1 E,F,G 2

3 5 5 5 5 5 5 6 6 6 5 5 5 5 4 03 8 13 18 23 28 33 39 45 51 56 61 66 71 75 75

TotalsCumulative

Duration(Days) Duration CalculationsActivity

Lab.required/day Duration Predecessor

LEVELLED LABOUR HISTOGRAM

Labour Required/day RESOURCE LEVELLED

10987654321

Duration(days)

REVISED LABOUR CURVE

0

10

20

30

40

50

60

70

80

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Cum

ulativ

e La

bour

requ

ired/

day

Duration(days)

Labour Curve

REVISED NETWORK DIAGRAMB9

E7.5

A C F H1 6 7 1

D G4 9

2 CRITICAL PATHS A-C-F-H/A-D-G-HDURATION 15 DAYS

END

LABOUR RESOURCE LEVELLING_CLASS EXERCISE

–RESCHEDULE/REDISTRIBUTE LABOUR•REVISE GANTT CHART•RE-DRAW LABOUR HISTOGRAM(LEVELLED)

•RE-DRAW LABOUR CURVE•REVISE NETWORK•REVISE METHOD STATEMENT

MASTER PROGRAM_EXTENDED & REVISED GANTT CHART

• TIME CONTROL SYSTEM• EXTEND THE REVISED GANTT CHART• MAKE ALLOWANCE FOR THE FF;

– DEFECTS LIABILITY PERIOD(6-MONTHS)– EVENTS: MONTHLY SITE MEETINGS– MILESTONES; COMMENCEMENT, PRACTICAL

COMPLETION,FINAL COMPLETION DATES– MONTHLY OHS AUDITS AND ENVIRONMENTAL AUDITS

DATES– MOB+SITE ESTABLISHMENT– SNAGGING+DE-SNAGGING TIMES,– QC & QA INSPECTIONS AND TEST TIMES

MASTER PROGRAM_CLASS EXERCISE

OTHER TIME-SCHEDULING TECHNIQUES

NETWORK ANALYSISCRITICAL PATH METHOD(CPM)PRECEDENCE DIAGRAMSPERT

LINE OF BALANCE(LOB)

NETWORK ANALYSISCRITICAL PATH METHOD(CPM)

• Purpose:• Introduce Schedule Flexibility• Determination of the Critical path: Critical

and non-critical activities• Determination of the project duration

ACTIVITY SEQUENCINGPREDECESSOR-SUCCESSOR RELATIONSHIPS

• Defines technological dependence.

• Predecessor Activity – An activity that has to be done before another activity can be done• • Successor Activity- An activity that can be done only once another activity has been done. • Example:

Predecessor Activity Successor Activity

•

EXCAVATION PIPE BEDDING

CONCURRENT RELATIONSHIPS

• Two activities that can be done at the same time/simultaneously.

• Example:

SITE ESTABLISHMENT

PLACE ORDER FOR MATERIALS

DEPENDENCIES

• Mandatory Dependency • Is inherent in the work to be done/ Work

Methods/Technology• • Example:•

EXCAVATION PIPE BEDDING

Discretionary Dependency-

• Preferred(best practice) to do the preceding activity before the successor is started. It is the result of a decision or discretion.

• • Example:•

MUNICIPAL APPROVAL

OBTAIN FINANCE

External Dependency• Dependency between an activity on a project and

another activity that does not form part of the same project.

• Example: External Dependency

PLOUGHING SOWING

RAIN

No Dependency

• Anyone of the 2 activities can be done first or they can be done concurrently.

• • Example

SITE ESTABLISHMENT

ORDER OF MATERIALS

TABLE OF PREDECESSORS

• Defines in a tabular form the predecessor/Successor relationships/Precedence Relationships/Dependencies between the listed activities.

• A table of predecessors•

– List of activities and their respective WBS codes – When the activities listed have to be done.– Predecessor/Successor relationships

•

172

WBS_WAKING UP & GETTING DRESSED

1.0 Waking up & Getting Dressed

1.1Wake up

1.2 Get Undressed

1.3 Take a shower

1.4 Dress up

1.4.1Apply Cosmetics

1.4.2Put on underwear

1.4.3Put on Socks

1.4.4Put on dress

1.4.5Put on shoes

1.4.6Comb Hair

1.4.4.1Put on trousers

1.4.4.2Put on shirt

1.3.1Wash hair

1.3.2Wash body

1.3.3Dry up

1.4.1.1Apply C.face

1.4.1.2Apply C. body

173

EXAMPLE_TABLE OF PREDECESSORS

WBS code Activity Name Predecessor Duration(mins)

1.1 Wake up - 5

1.2 Get Undressed 1.1 5

1.3 Take a shower 1.2 20

1.4 Dress -up 1.3 30

ACTIVITY NODES

ES- Earliest Start, EF-Earliest Finish, LS-Late Start, LF-Late Finish

ES EF

ACTIVITY DURATION

LS LF

FORWARD PASS_ ES and EF values

• Used to determine the ES & EF dates of activities• • EF= ES+ Duration• • Rule: When a successor activity has more than one

predecessor, the predecessor with the latest/longer EF is used to determine the ES of that successor activity.

•

FORWARD PASS

10 16

A 6

10 20

C 10

20 30

B 10

BACKWARD PASS_ LS and LF values • Used to determine the LS & LF dates of activities

• LS= LF- Duration• • Asap Projects: Assume the longer final EF of the end activity as its LF and

conduct a backward pass.• • Due Date Projects: Use the predetermined and fixed due date of the project

as the LF of the last activity and conduct a backward pass. This could generate floats on the critical path

• • Rule: When an activity has more than one successor, the successor with the

earliest/shorter LS is used to determine the LF of that successor activity.•

BACKWARD PASS

0 10

A 10

0 10

10 20

C 10

10 20

10 16

B 6

14 20

SCHEDULE FLEXIBILITY_FLOATS/SLACK

• Activity Slack or Float • The amount of time a noncritical task can be delayed from its early start or early

finish without delaying the project end date is called slack or float . • Slack/float = LS – ES = LF – EF

• Slack/floats is a way of introducing flexibility into the project time schedule • Critical Activities/Critical path have zero float

• There could be a float on the critical path for a predetermined fixed due date project.

• Non-critical activities have a float. Schedule in the Gantt chart as early as possible.

ACTIVITY FLOAT

10 15

E 5

20 25

10 13

G 10

22 25

15 20

F 5

25 30

float/slack( Activity G) = 25-13 = 12 days

FREE FLOAT

• The amount of time that an activity could be delayed without delaying the early start of any activity immediately succeeding it.

• Free float = ESJ - EFI

EFActivity i

ESActivity j

FREE FLOAT

10 15

E 5

20 25

10 13

G 3

22 25

15 20

F 5

25 30

Free float for Activity G = 15-13 = 2 days

TOTAL FLOAT

• ACTIVITY FLOAT + FREE FLOAT

TOTAL FLOAT

10 15

E 5

20 25

10 13

G 3

22 25

15 20

F 5

25 30

Total float for Activity G = 12+ 2 = 14days

CPM_EXAMPLE

• Draw a network diagram out of this table of predecessors. Identify the critical path and the duration of the project.

CPM_EXAMPLEWBS Code Activity Name Predecessor Duration

1.1 A - 5

1.2 B - 4

1.3 C A 3

1.4 D A 4

1.5 E A 6

1.6 F B,C 4

1.7 G D 5

1.8 H D,E 6

1.9 I F 6

1.10 J G,H 4

Example 1

5 9 9 14d 4 g 5

7 11 12 17 17 21j 4

0 5 5 11 11 17 17 21a 5 e 6 h 6

0 5 5 11 11 1712 18

5 8 i 6c 3 8 12 15 21

8 11 f 411 15

0 4b 4

7 11Critical Path= a-e-h-j

ES EF Critical Time/Project Duration = 21 daysAct.Name DurationLS LF

ES-Earliest Start EF-Earliest finishLS-Latest Start LF-Latest finish

start

ffinish

FLOATS TABLEAct. No. Activity Activity Float Free Float

1.1 A 0 0

1.2 B 7 4

1.3 C 3 0

1.4 D 2 2

1.5 E 0 0

1.6 F 3 0

1.7 G 3 3

1.8 H 0 0

1.9 I 3 3

1.10 J 0 0

HOMEWORK

• Draw and analyze the network diagram out of this table of predecessors. Identify the critical path and the duration of the project

HOMEWORKActivity Name Duration Predecessors

A 4 C

B 10 -

C 8 B

D 5 A

E 9 D

F 5 A

G 6 F

H 8 G,P

I 5 B

J 4 I

K 5 J

L 3 K

M 7 D

N 10 E,M

O 8 H,L,N

P 10 D

ASAP PROJECTS10 15 15 19 19 24 24 27

I 5 J 4 K 5 L 329 34 34 38 38 43 43 46

0 10 10 18 18 22 22 27 27 34 36 46B 10 C 8 A 4 D 5 M 7 N 10

0 10 10 18 18 22 22 27 29 36 36 4646 54

27 36 O 8CRITICAL PATH-B-C-A-D-E-N-O E 9 46 54

27 36CRITICAL TIME/PROJECT DURATION- 10+8+4+5+9+10+8=54 days

27 37P 10

28 38

22 27 27 33 37 45F 5 G 6 H 8

27 32 32 38 38 46

PRECEDENCE DIAGRAMS_EXTENSIONS TO CPM NETWORKS

• Offers greater flexibility to scheduling• Make allowances for;

–Time lags and Lead times and within the network.

–SS,SF,FF,FS relationships in the network.• Network node times are calculated in a

manner similar to CPM.

Time Lag( Waiting Time)

• Amount of time that a successor activity must be delayed for some reason or technical reason.

Start to Finish(SF) Relationships

• Activity B cannot be completed until 25 days after the start of Activity A

• Example: Phase out old system(B) cannot be finished until 25 days after testing new system(A) begins

Lag SF- 25 Lag SF 25

A B

B

A

Finish to Start (FS) Relationships

• Activity B can only start 5 days after Activity A has been completed.

Examples: – Tearing down scaffolding(B) can start no sooner than 5 days after plaster walls(A)

– Striking formwork(B) can start no sooner than 5 days after concrete is poured(A)

– Moving in(B) can start no sooner than 5 days after painting the room(A) is completed,

• In this case, we might add a fictitious activity/dummy task after the plastering, painting or pouring the concrete that takes the required time (drying time) and then let the follow - on begin.

• Similar to FREE FLOAT

Lag FS- 5 Lag FS 5

A B

A

B

Start to Start Activity(SS) Relationships

• B cannot begin until Activity A has been underway for at least two days.

• Example:• Setting electrical wires in place cannot begin until

two days after framing has begun.

Lag SS - 2 Lag SS 2 1

A

B

B

A

Finish to Finish(FF) Relationships

• Activity A must be completed at least 1 day before Activity B is completed.

• Example: If Activity A is priming the walls of a house, Activity B might be the activities involved in selecting, purchasing, and finally delivering the wallpaper. It is important not to hang the paper until the wall primer has dried for 1 day-24 hours.

• • Painting parking lines(B) must be finished within 5 days after laying asphalt(A) has been finished

Lag FF - 5 Lag FF 5

A

B

B

A

Lead Time( Overlap)

• Opposite of lag. • An overlap between activities

Start to Finish(SF) Relationships

• Activity B will be completed 5 days before predecessor activity A starts.

Lead SF- -5 Lead SF -5

A B

B

A

Finish to Start (FS) Relationships

• An activity B can start before its predecessor activity A is completed.

• Example In construction projects, construction(B) might start 5 days before the designs are finished..

-5 Lead FS Lead FS - 5

A

B

B

A

Start to Start (SS) Relationships

Activity B can begin 2 days before predecessor activity A will begin.

Lead SS - - 2 Lead SS - 2

A

B

B

A

Finish to Finish(FF) Relationships

• An activity B can finish 1 day before its predecessor activity A is finished.

-1 Lead FF Lead FF - 1

A

B

A

B

Precedence Diagram

0 4 FF-4 days leadA 4

0 112 12

SS-2days lag B 10 FF-3days lead2 12

2 15C 6

SS-0 days lead 9 15

FF- Finish to FinishSS-Start to Start

SCHEDULE FLEXIBILITY

• THIS WILL HAVE TO BE ASSESSED BY THE PM. • CHECKING HOW SUFFICIENT AND REALISTIC THE

FLOATS,LEAD AND LAG TIMES ARE.

RESOURCE REQUIREMENTSSMALL TOOLS/EQUIPMENT SCHEDULE

• Purpose– Bulk Purchases and Early delivery

• Revised Method Statement• Master Program• Small tools/equipment schedule• 10% provision for waste,breakages and losses.

EXAMPLESMALL TOOLS & EQUIPMENT REQUIREMENTS SCHEDULE

CONTRACT NAME :

LOCATION:

PREPARED BY:

DATE:

1ST LOAD REQUIRED SHEET NO:Item No. Activity Small Tool/Equipment Qty

1.3 Site Clearing Axe 1Saw 1Rope 1

1.4 Setting Out Profiles,boning rods and stringlines 11.5 Excavation shovels 3

pickaxe 31.6 Cast Base

Concreteheadpans

4wheelbarrow 4shovel 4wood float 1screed beam 1tamping rod 1water hose 1

1.7 Build found wall Headpans 2wheelbarrows 2shovels 2hand trowels 1spiirit level & stringlines 1

1.8 Found Inspection -

1.9 Backfill shovel 6watering can 1hand stamper 1

This is finalised after a review of the method statement & the Gantt chart

SMALL TOOLS/EQUIPMENT SCHEDULE _CLASS EXERCISE

REVISED CONTRACT BUDGETS

• CONTROL SYSTEM

• PROCEDURE;– REVISED METHOD STATEMENT– MASTER PROGRAM( REVISED & EXTENDED GANTT

CHART)– PRICE CHANGES/NEW PRICE QUOTATIONS– REWORK THE TENDER COST ESTIMATES– REVISE THE TENDER COST BUDGET

CONTRACT BUDGET• REVISED DIRECT COST( LABOUR COST,PLANT COST,MATERIAL COST)• REVISED OVERHEADS/INDIRECT COST:

– ACTIVITY OVERHEADS(15%),– TRANSPORT,MATERIAL WASTAGE/LOSSES ETC– PRELIMINARY& GENERAL ITEMS(P&GS)(5%)– SITE ESTABLISHMENT,SITE OVERHEADS,PERMITS ETC– H/O EXPENSES(5%)– H/O RENT,UTILITIES,H/O STAFF SALARIES,STATIONERY – PRICE ESCALATION; (10%)– CHANGES IN PRICE,BANK CHARGES &INTEREST RATES ETC, 10%

• COST BUDGET• = DIRECT COST+ INDIRECT COST/OVERHEADS

CONTRACT BUDGETS_CLASS EXERCISE

RESOURCE REQUIREMENTSMATERIALS SCHEDULE

• Materials with a long delivery time must be paid special attention

• Material discrepancies between the Spec., B.O.Q and drawings must now be iron out.

• REVISED METHOD STATEMENT• MASTER PROGRAM• COST BUDGET SCHEDULE• MATERIAL SCHEDULE

MATERIALS REQUIREMENTS SCHEDULE

PROJECT NAME :

LOCATION:

PREPARED BY:

DATE: SHEET NO:

RemarksNotice Required Date Required Date Received

1.3 Site Clearing

1.4 Setting Out

1.5 Excavation

1.6 Cast Base Concrete Cement 30 bag Day 13 to Day 15Sand 3 m3 Day 13 to Day 16Aggregates 6 m3 Day 13 to Day 17

1.7 Build found wall Bricks 1460 No. Day 16 to Day 23Cement 12 bagSand 2 m3

1.8 Found Inspection

1.9 Backfill

Delivery time expected = Date ordered vs Date RequiredLong delivery time means the materials must be ordered as early as possible


key datesDate OrderedItem No. Activity

Description of Material Supplier Address/Tel.No.Order No. Qty Unit

RESOURCE REQUIREMENTSMATERIALS SCHEDULE_CLASS EXERCISE

RESOURCE REQUIREMENTSPLANT SCHEDULE

• REVISED METHOD STATEMENT• MASTER PROGRAM• REVISED COST BUDGET • PLANTS SCHEDULE

PLANT REQUIREMENTS SCHEDULE

CONTRACT NAME :

LOCATION:

PREPARED BY:

DATE: SHEET NO:

Item No ActivityPlant Description

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 271.3 Site Clearing

1.4 Setting Out

1.5 Excavation

1.6 Cast Base Concrete

1.7 Build found wall


1.9 Backfill

This is finalised after a review of the method statement & the Gantt chart & consideration of the plant allocated in the P&GS

Duration No.of days RequiredDate Required

RESOURCE REQUIREMENTSPLANT SCHEDULE_CLASS EXERCISE

RESOURCE REQUIREMENTSSUB-CONTRACTOR/SUPPLIERS SCHEDULE

• REVISED METHOD STATEMENT• MASTER PROGRAM• COST BUDGET SCHEDULE• SUB-CONTRACTOR/SUPPLIERS SCHEDULE

SUB CONTRATORS AND SUPPLIERS REQUIREMENTS SCHEDULE

CONTRACT NAME :

LOCATION:

PREPARED BY:

DATE: SHEET NO:

Order No. Notice Date calledRequired start finish period start finish to site

1.3 Site Clearing

1.4 Setting Out

1.5 Excavation

1.6 Cast Base Concrete

1.7 Build found wall


1.9 Backfill


Sub-contractor(

own/nominaActivityItem No.

Estimated ActualAddress/Tel.No.

Supplier(own/nominated)

SUB-CONTRACTOR/SUPPLIERS SCHEDULE_CLASS EXERCISE

PLACE ORDERS_SUB-CONTRACTORS/SUPPLIERS

• Orders must now be placed with the sub-contractors and suppliers whom quotes were obtained from during the Pre-Tender Planning Phase. Usually the lowest price (one used in the Tender Price) is accepted.

CONTRACT INFORMATION SCHEDULE_DESIGN TEAM

• REVISED METHOD STATEMENT• MASTER PROGRAM• CONTRACT INFORMATION SCHEDULE_DESIGN

CONTRACT INFORMATION SCHEDULECONTRACT INFORMATION REQUIREMENTS SCHEDULE

CONTRACT NAME :

LOCATION:

PREPARED BY:

DATE:

Item No. ActivityDetails of information required

Information required from

BOQ Ref.Anticipated commencement date

Information required by

Date information received

Date of request

Remarks

1.3 Site Clearing1.4 Setting Out1.5 Excavation1.6 Cast Base

Concrete1.7 Build found

wall1.8 Found

Inspection1.9 Backfill

CONTRACT INFORMATION SCHEDULE_DESIGN TEAM_CLASS EXERCISE

VARIATION ORDERS • The engineer or engineer’s representative will issue variation orders from time to

time. • This can be done on a pre-printed variation order form but it could also be in the

form of a site instruction. • In either case the Engineer has to sign the order or it may be signed by his

representative (COW). • In the case of an oral site instruction the contractor must confirm the instruction

in writing within 7 days to the Engineer. If the Engineer does not dispute the confirmation within 7 days then the confirmation by contractor will be considered as an Engineers instruction.

• Because variation orders involve adjustment to the contract price, it is important to file the variation orders and keep it safe for purpose of drawing up the final account.

• A copy of all variations must be forwarded to the head office where the Quantity Surveying Department will work up the rates and prices.

• A note must be made of the state of the contract at the time the V.O is received.

VARIATION ORDERS

• A variation order can be issued to change:–the design of the construction

(drawings)–the quantity of work (bills of quotes)–the quality of the work (spec and BOQ)

VARIATION ORDERS • Any change in a P.C. sum or as P.S. is dealt with

separately and the value of such variation must be given to the Engineer.

• The basis of determining the value of the variation is on the prices quoted in the BOQ where these prices are applicable as follows:– using BOQ rates– a fair valuation of the work based on BOQ rates– new prices agreed between Engineer and contractors– daywork basis

• All variations must be measured and priced within the stipulated time, as determined in terms of the contract.

DAYWORKS• Day work is a method of establishing the cost of extra work on a contract to

which normal pricing methods cannot be applied and involves the recording of all labour, material and plant used in performing the extra work.

• Day work can be used as a method of establishing the value of extra work ordered by the Engineer in the case where rates for doing the work is not relevant to the operation or where B or Q rates are not available for the type of work e.g. work in underpinning was not allowed in the original contract or altering the structure after the work has been completed.

• All items of cost must be properly recorded and most contractors use a specific form for recording such costs.

• The form is generally formulated to enable site staff to record all labour cost, material cost and plant cost separately. – Labour cost is recorded by noting the number of the operative, his name, his trade, the

hours worked on each day of the specific week, the rate and totals. – Materials cost must show the date of purchase, the supplier, the quantity, a description

of the material, the cost of the material and totals.– Plant cost must show the quantity of plant, a description of the plant, the rate of the

number of hours worked and transport hours (if any)>

DAYWORKS• To the above cost a certain percentage is added as provided in

contract and is usually 100% on all current material prices and 40% on labour.

• Labour costs does not include supervisory or admin staff.• The day work sheets must be given to the Engineer or his

representative within 21 days after the week in which the work was done for signing of the day work sheet.

• Copies of vouchers must accompany the day work sheet for all material purchased.

• If workmen are paid more than the minimum amount laid down by the Industrial Agreement then their rates must be submitted to the Engineer.

• These rates must be the same as that paid to the workmen prior to extra work (day works).

TIME-COST TRADE OFF_CRASHING

• Accelerating or Reducing the duration on the critical activities(critical time) through the application of more resources or changing the technology and use a more sophisticated technology to accelerate the work to completion.

• Accelerating or Reducing the duration on the critical activities therefore entails a higher cost.

• Crash duration is therefore the newly adjusted project time.

•

CRASHING_PRE-REQUISITES

• When making estimates for crashing, it is important to make sure that the resources required to crash the project are, in fact, available.

CRASHING_DANGERS• It is important to remember that when we change

technology to accelerate a project, we may also be changing the level of risk in carrying out the activity.

• Some tasks cannot be crashed. They must follow their natural course of progress.

CRASH_PROCEDURE

• Start with the normal schedule for all project activities,

• Crash selected activities on the critical path, one at a time, to decrease project duration at the minimum additional cost.

CRASHING_PRINCIPLES• Focus on the critical path(s) when trying to shorten the

duration of a project. • Crashing a non-critical activity will not influence project

duration. • When shortening a project’s duration, select the least

expensive way to do it. ie choose the least costly(lowest cost slope) alternative to shorten the project duration first

• If project duration has not been reduced sufficiently, choose second cheapest alternative and so on.

• Keep an eye on all the non-critical paths• If a non-critical path becomes critical reduce activity

duration on this path as well in the next round.

ACTIVITY COST SLOPE

Direct cost( labor, plant, materials) Cc Cn

TC Tn Time

Cost slope(S) = crash cost - normal cost = Cc- Cn (<0) crash time - normal time TC- Tn

ACTIVITY COST SLOPE• The steeper the slope the higher the direct cost of accelerating or reducing

the duration of the activity • • The direct cost of the activity increases as the activity is crushed.• • The total direct cost of the project also increases as the project is crushed.• • However the indirect cost(overheads) rather decreases as the project

duration is crashed and increases as the project duration is extended or delayed..

• The PM should ignore indirect (overhead) costs over which he or she has no control but it should be noted that indirect costs are often altered when a project is crashed.

•

NORMAL & CRASH SCHEDULES

• Normal Schedule; Normal duration at a normal cost

• Crash Schedule; Crash duration at a crash cost

• Partial Crushing; doing half at normal duration and cost and the other half at crash cost & duration if permissible

EXAMPLE 1_CRASHING

Example 1; Activity

Precedence

Duration(days) Cost ( R) Cost Slope(R/day) Normal Crash Normal Crash

A - 2 1 50 54 -4 B A 6 3 51 54 -1 C A 4 2 50 58 -4 D B,C 3 2 50 52 -2 Total 201 218

Assumption; Partial Crushing permissible

NORMAL SCHEDULE

Normal Schedule; Critical Path; A-B-D, Critical/Project Duration; 2+6+3= 11 days

A 2

B 6

C 4

D 3

STEP 1Step 1: Crash the activities on the critical path, Crash the cheapest critical activity first followed by the next and so on. Crash Activity B by 2 days, New Project Duration; 2+4+3 = 9 days, 2 critical paths now: ABD & ACD Additional Cost; 2x R1/day = R2

A 2

B 6 4

C 4

D 3

STEP 2Crash Activity D by 1 day New Project Duration; 2+4+3 = 8 days, Same 2 critical paths: ABD & ACD Additional Cost; 1x R2/day = R2

A 2

B 6 4

C 4

D 3 2

STEP 3Crash Activity A by 1 day New Project Duration; 1+4+2 = 7days, Same 2 critical paths: ABD & ACD Additional Cost; 1x R4/day = R4

A 2 1

B 6 4

C 4

D 3 2

STEP 4Crash Activity B & C by 1 day each Crash Schedule; New Project Duration; 1+3+2 = 6 days, Same 2 critical paths: ABD & ACD Additional Cost; 1x R1/day+1X R4/day = R5

A 2 1

B 6 4 3

C 4 3

D 3 2

SUMMARY

Summary Activity

Duration(days) Additional Cost (R) Normal Crash

Crash B by 2 days

6 4 2

Crash D by 1 day 3 2 2 Crash A by 1 day 2 1 4 Crash B & C by 1 day each

4,4 3,3 5

Total 11 6 13

EXAMPLE 2_CRASHING

Example 2; Activity

Precedence

Duration(days) Cost® Cost Slope(R/day) Normal Crash Normal Crash

A - 3 2 40 80 -40 B A 2 1 20 80 -60 C A 2 2 20 20 - D* A 4 1 30 120 -30 E** B 3 1 10 80 -35 Total 8 4 120 380

*-partial crushing allowed, **-partial crushing not allowed-Technological discontinuity

NORMAL SCHEDULE Normal Schedule Dummy

A 3

C 2

D 4

B 2

E 3

End

The network ’ s critical path is A - B – E-dummy , the project duration is 8 daysThe decision about which activities to crash depends on how much we need to reduce the duration of the project.

EXAMPLE 2A • To reduce the total network duration by 1 day. From the original 8 days down to 7 days. • • We must reduce the time required by one of the activities along the critical path.• • • Inspecting the Table above to see which critical activity can be reduced at the least cost, • • Crash activity A by 1 day which adds R40 to the project ’ s current cost of $120.• or• Crash Activity B by 1 day at an added cost of R60 • or• Crash activity E by 2 days for an additional cost of R70. crashing E would only shorten the project

duration by 1 day because when E is shortened, the path A - D – dummy (7 days long) becomes the critical path and does not allow the project to be shortened to 6 days.

• • Crashing A is the least additional cost, So select that option to crush the project by 1 day.• • The total cost of crashing is R40• The total project cost is R120 + R40 = R160.•

EXAMPLE 2A Dummy Crash Schedule, A-B- E-dummy is still the critical path.

A 3 2

C 2

D 4

E 3

End

B 2

EXAMPLE 2B • Suppose the project must be crashed by 2 days.

from the original 8 days down to 6 days. • Crash activity E for 2 days (R70), but critical path A -

D - dummy (7-days ’ duration) must also be crashed at least 1 day. We choose to crash D(R30/day) because it is cheaper than A(R40).

• The total cost of crashing is R70+R30= R100, • Total project cost is R120 + R100 = R220.

EXAMPLE 2B

Dummy

Crash Schedule, A-B- E-dummy and A-D-dummy are both critical paths. So they must be crashed together.

A 3

C 2

D 4 3

E 3 1

End

B 2

EXAMPLE 2C • Now suppose we wanted to crash the project by 3 days, from

the original 8 days down to 5 days. • • E must be crashed by 2 days, costing R70, and A or B by a day.• We choose A , the cheapest, for an additional R40. • This leaves D to be crashed by 1 day for another R30,• Total crashing cost of R70+R40+R30=R140 • Total project cost = R120 +R140 = R260• • Note that we did not crash B this time, as we did for example 2b

(6 days). This is due to the technological discontinuity in activity E .

•

EXAMPLE 2C

Dummy

Crash Schedule, A-B- E-dummy and A-D-dummy are still the critical paths

A 3 2

C 2

D 4 3

E 3 1

End

B 2

EXAMPLE 2D• • Consider crashing the project by 4 days. From 8 days down to a project duration of 4

days.• • Considering Example 2c we crashed E , the technological discontinuity, to reach a 5 - day

project duration, all the remaining activities can be incrementally crashed by a day. • A - B - E –dummy and A - D - dummy are both critical paths. • Only B and D can still be crashed so we crash each by 1 day for an additional cost beyond

the 5 - day schedule • Total crashing cost= R60 +R30 = $90 • Total project cost of R260 + R90 = R350 • New crush Schedule= 4 days• • Note that C is now critical, therefore all paths are critical. Since the critical paths A - B – E-

dummy and A-C-dummy are at their full extent of crashing, the project duration cannot be further reduced, even though activity D could be crashed another day. From observation it becomes increasingly costly to squeeze additional time out of the project.

•

EXAMPLE 2D Dummy

Crash Schedule, All paths are critical now.

A 3 2

C 2

D 4 3 2

E 3 1

End

B 2 1

ADVANTAGES & DISADVANTAGES• Advantages

• Saves the project contractor from penalty clauses that make it liable for late delivery or bonuses for early delivery.

• Helpful to the PM in exercising control over project duration and cost.• Helpful in dealing with senior managers who may argue for early project

completion dates with little understanding of the costs involved.• Beneficial when clients plead for early delivery. If the client is willing to

pay the cost of crashing, or if the firm is willing to subsidize the client, the PM can afford to listen with a sympathetic ear.

• Disadvantages

• It’s quite costly to crash an activity/project.

CONSTRUCTION CONTRACT _MONITORING & CONTROL

EVM( COST & TIME)

EARNED VALUE MANAGEMENT• Problem statement• The common problem with comparing actual expenditures against plan

(a.k.a. baseline or budget) for any given time period is that the comparison fails to consider the actual progress made on the project.

• Thus, if expenditures are lower than expected for a given period, it may be either good or bad, depending on whether progress is in line with that amount of expenditure.

• Similarly, if expenditures are higher than expected, this may be acceptable if progress is sufficiently greater than planned for that period.

• • Hint: The performance of a task or project cannot be evaluated by

considering cost factors alone.• • The earned value reporting system addresses this problem by integrating

cost reporting and progress reporting

EARNED VALUE MANAGEMENT• Earned Value(EV)• • The earned value ( EV ) of a task (or a project) is the budgeted cost of the work actually

performed. • It is calculated by multiplying the budgeted cost of the task by the percentage of completion of

the task and summing over all tasks for the project. • We then aggregate/sum the individual task earned values to make reasonable estimates of the

overall project earned value.• • To the best of our knowledge, there is no satisfactory way to measure accurately the percent

of completion of most tasks, let alone to measure accurately the percent of completion of an entire project. Its almost always an estimate

• • • Earned Value Analysis• It is the process of deriving some measure of overall project progress in terms of performance,

budget, and schedule.• Represents a way to capture both progress/performance and cost on a certain date as

measured against budget or schedule. •

EARNED VALUE GRAPH/CHART2.4 Earned Value (EV) graph/chart Earned Value graphs/chart can be drawn for each task or activity within the project to show progress on the task or activity

Cost/Exp AC (cumulative)

PV Cost Variance(CV)

Schedule Variance (SV) PC EV Time (days/weeks/months) Review/Reporting Date AC/ACWP-Actual cost/exp, PV/BCWS-Planned value/budget/baseline, EV/BCWP-Earned Value, PC- Percentage Completed

Actual Exp.

Planned cost

Progress

EARNED VALUE FORMULAS• a) EV ; Earned Value(EV) = % completion x PV-------Task/Activity• • EV= PC * BAC -------------Project• • The earned value(EV) completed to date tells the manager whether progress is up to expectation( the “

baseline ” planned for this point in time).• • b) SV: The Schedule Variance= EV- PV, • • PV>EV implies SV <0, Indicates delay/behind schedule/time overruns.• PV<EV implies SV >0 Indicates task is ahead of schedule• • Hint: Projects far ahead of schedule is not always good. It might impair the cash flow. Fast cash flow

depletion.• • c) CV: Cost Variance= EV-AC, • • AC>EV. CV<0 ,indicates cost overrun/over-expenditure/over-budget on the task/project• AC<EV implies CV>0, indicates the task/project is progressing under-budget/under-expenditure• •

EARNED VALUE FORMULAS• d) CPI; Cost Performance Index(CPI) = EV/AC• • AC>EV, CPI<1 undesirable, • AC<EV, CPI>1 desirable• • e) SPI: Schedule Performance Index(SPI)=EV/PV, • • EV<PV, SPI<1 undesirable, • • EV>PV, SPI>1 desirable.• • • f)PC: % Completion(PC) = EV/BAC*100 •

EARNED VALUE FORMULAS• g) EAC; Estimated Cost at Completion(EAC)/Revised Budget • • EAC = BAC/CPI = AC+ETC= AC+BAC-EV , • IF AC =0,EV=0, THEN EAC = BAC• EAC = AC/PC, • • • h) ETC; Estimated Cost to Complete(ETC) = (BAC-EV)/CPI = EAC-AC• • • i) PR; Planned Production Rate(PR) = BAC/TPV

• •

EARNED VALUE FORMULAS• j) P; Productivity = AC/EV = 1/CPI• • If AC<EV, EAC<BAC, desirable• • If AC>EV, EAC>BAC, Undesirable• • • k) TV: Time Variance/Schedule Slippage( TV) = Status date- Planned date • • Measures the No. of days that the project is ahead/behind schedule as on the reporting date • • TV = TEV - TPV = TEV - TAC = SV/PR, • • TV>0 Project is ahead of schedule• • TV <0 Project behind schedule.• • • l) VAC; Budget Variance/Overrun/Additional Cost upon Completion = BAC-EAC

PROGRESS REPORT_END OF MAYAct BAC PC(%) ACWP JAN FEB MAR APR MAY JUNE

A 100 100 100 100

B 400 100 500 200 200

C 1200 75 1000 400 400 400

D 600 25 200 300 300

E 200 0 0 200

TOTALS 2500 1800 100 600 600 700 300 200

100 700 1,300 2000 2300 2500

EV CHART_END OF MAYAct BAC BCWS/

PVPC(%) BCWP/EV

=PCXBACACWP/AC SV

=BCWP-BCWS

CV=BCWP-ACWP

EAC=AC/PC

A 100 100 100 100 100 0 0 100

B 400 400 100 400 500 0 -100 500

C 1200 1200 75 900 1000 -300 -100 1333

D 600 300 25 150 200 -150 -50 800

E 200 0 0 0 0 0 0 200

2500 2000 1550 1800 -450 -250 2933

2933 EAC

2500 BACBUDGET VARIANCE

Progress( R ) 2000 BCWSETC

(Cum.)

1800 ACWP

1550 ACWP BCWPCV

SV

1000 BCWP TIME VARIANCE

500

BCWS

0JAN FEB MAR APR MAY JUN JULY AUG SEPT OCT

Duration(months)

Reporting Month Planned Completion date Revised Completion date

Projections

EV GRAPH_END OF MAY

CONCLUSION

• Sv<0, Project is overall behind schedule• CV<0 , Project is overspent• VAC; Budget variance/Additional cost upon

completion= EAC-BAC= 2933-2500= 433• Time Variance(TV)= 3.5 months• Revised Completion date; Mid October• ETC: Estimated Cost to Complete = EAC-ACWP=

2933-1800= 1133

EXAMPLE_EV GRAPH

SOLUTION• Refer to Fig 1.• •

• At Review date/Time now• • PC = EV/BAC = 400/1000*100 = 40%• • EAC = AC/PC*100 = 600/40%*100 = 1500• • Budget Variance = BAC-EAC= 1000-1500 = - 500, Budget Overrun• • SV= EV-PV = 400-500 = -100, Project behind schedule, Time overrun• • CV = EV-AC= 400-600 = -200, Cost overrun, Cost is higher than the original estimate.• • Slippage TV = TEV - TPV

• • •

EXAMPLE_EV GRAPH

SOLUTION• Refer to Fig 3;

• Suppose that work on a project task was expected to cost R1500 to complete the task and the workers were originally scheduled to have finished today. As of today, however, the workers have actually expended R1350, and our best estimate is that they are about 2/3 finished.

• BAC= 1500, PC =2/3, Earned Value(EV) = BAC*PC = 1500(2/3) = 1000• AC=1350, EV= PC*BAC = 2/3*1500 = 1000• Cost / spending variance(CV) = EV -AC = 1000 - 1350 = -350 • We are spending more than the baseline plan indicates. Over- expenditure

• Schedule variance(SV) = EV -PV = 1000 -1500 = - 500, • We are behind schedule

• CPI = EV / AC = 1000 / 1350 = 74% <1• SPI = EV / PV = 1000/ 1500 = 67%<1

• Thus, we are spending more than the baseline plan indicates and, given what we have spent, we have not made as much progress as we should have.

SOLUTION• Estimated (remaining cost ) to completion (ETC) • =( BAC- EV ) /CPI • = ( 1500 -1000 ) / 74% = 676

• Assumption: work will be completed at the same level of efficiency or inefficiency as conducted thus far.

• The total cost to complete the task is the projected ( total cost )

estimated at completion (EAC) = ETC + AC = 676 + 1350 = 2026

• That is, the projected additional cost to complete this task is R676 which, when added to the cost accrued to date of R1350 gives a total task cost to completion of R2026 rather than the original estimate of R1500.

CORRECTIVE ACTIONS• Borrowing resources from other tasks, • Holding a brainstorming meeting with the project team, • Requesting extra resources from senior management, • Informing the client and/or senior management of the

projected deficiency. • Meet only key project requirements at the least cost and

time.

• Unfortunately, research has indicated that the chances of correcting a poorly performing project which is more than 15 – 20 percent complete is effectively nil .

lecture slides4; construction project planning

Engineering