Lecture slides4; Construction Project Planning

MANAGEMENT:CIVIL II_ MCIV 2/0
MODULE FOUR(4): CONSTRUCTION
CONTRACT/PROJECT PLANNING
JB NARTEY

CONSTRUCTION_BUILDING
FOUNDATIONS

CONSTRUCTION_ROAD BASE COMPACTION

CONSTRUCTION_MATERIAL
SUPPLY/DELIVERY

CONSTRUCTION_ SEWER PIPE LAYING

SOURCE OF BUSINESS
(Construction Enterprise(“Contractor”)
Private Investments
(Profitable
Ventures))
Tendering/Contracting
•-Government Sector
•Private Sector

CONSTRUCTION CONTRACT LIFECYCLE
_3 STAGES
TTENDERING
Open,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/CLOSING
NOT 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

• 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.

• 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/certi
ficates.complet
ed
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 Suppliers
1.3 4 Quotations from
suppliers
R500 Buyer
1.10 Tender Estimation 1.7 3 Cost estimates
build up
- Estimator
s/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 Activities
Critical path; 1.1-1.6-1.10-1.11-1.12
Pre-tender duration; 21 calendar days
Hammock
Duration(Days) Team
member
responsi
ble
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/CONTRA
DICTORY/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 LAYING
1.0 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 Planning
1.2.8Compaction
1.2.9 Surface Reinstatem
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 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

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

_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

_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 Work
Qty
(A)
Resource
type,
Capacity,
No.
Method/
Approach
Resource
Output
Rate(B)
Resource
Required
(C=A/B)
Resource
Available
(D)
Duration
(C/D)

CONSTRUCTION METHOD
STATEMENT_EXAMPLE 1
Act
.
No.
Activity Work
Qty
(A)
Resource
type,
Capacity,
No.
Method/
Approach
Resourc
e
Output
Rate(B)
Resource
Required
(A/B)
Resource
Available
(D)
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/spa
des,fork/for
k hoe.
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 day
Site Inspection report: Availability of cheap inexperienced labour, soft ground etc
Construction Method/Approach; Labour Intensive
Operational Sequence-3 operations
Exc-load-transport(haul)-unload-dispose ( E.L.H.U.D.)

CONSTRUCTION METHOD
STATEMENT_EXAMPLE 1
• 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.

CONSTRUCTION METHOD
STATEMENT_EXAMPLE 2
Act
.
No.
Activity Work
Qty
(A)
Resource
type,
Capacity,
No.
Method/
Approach
Resourc
e
Output
Rate(B)
Resource
Required
(A/B)
Resource
Available
(D)
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
headpans
Mix
0.8m3/
md
14 mds 7
mds/day
2 days
Scope: Cast 11m3 of vibrated reinforced concrete 1:2:4 in foundation footings
Contract Period: 1 day
Site Inspection report: Availability of cheap inexperienced labour, soft ground etc
Construction Method/Approach; Labour Intensive
Operational Sequence-5 sequence of operations
Batch-Mix-Transport-Place-Vibrate-Cure

CONSTRUCTION METHOD
STATEMENT_EXAMPLE 2
• Checks
• Compare to 1 day Contract period stipulated in the
resources) or fast track(overlap) activities using the

CONSTRUCTION METHOD
STATEMENT_EXAMPLE 3
• 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
STATEMENT_EXAMPLE 3
• 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

CONSTRUCTION METHOD
STATEMENT_EXAMPLE 3
• 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)
Reduce
d Level
Excavati
on
1500
0 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,of
f 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
_ALTERNATIVE 1

_ALTERNATIVE 2Activity Qty
(A)
Resource
Type,Capa
city,No.
Method
Statement
Resource
prod.rate(B)
Resource
Required
(C=A/B)
Resources
Available(D)
Duration
(C/D)
Reduced
Level
Excavatio
n
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,trans
port,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,offloa
d and return
To achieve
work balance;
7 /7.2= 1
trucks +1= 2
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

CONSTRUCTION METHOD
STATEMENT_EXAMPLE 3
• Checks
• Compare to Contract period stipulated in the
resources) or fast track( overlap) activities using the
• 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_BOQ
Act 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
ctivity Work
Qty
(A)
Resource
type,
Capacity,
No.
Method/
Approach
Resource
Output
Rate(B)
Resource
Required
(C=A/B)
Resource
Available
(D)
Du
(C
ite
learing
250m2 1 lab 350m2/md 0.7 mds 1 md/day 1
etting Out 500m 12 gangs 15m/gd 34 gds 12 gds/day 3
xcavation 625m3 25 labs 5m3/md 125mds 25mds/day 5
ipe
edding
12.5m3 2 labs 5m3/md 2.5mds 2 mds/day 1.
ipe laying 500m 5 labs 19m/md 26.3mds 5 mds/day 5
ackfill &
ompaction
550m3 25 labs 3m3/md 183.3mds 25 mds/day 8
urface
einstatem
250m2 25 labs 3m2/md 83.3 mds 25mds/day 4

PRE-TENDER PROGRAM
CLASS EXERCISE_GANTT CHART
Prepare the table of predecessors,
network diagram and the gantt chart

CLASS EXERCISE_TABLE OF PREDECESSORS
WBS 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
1.2.1
5
1.2.2
1
1.2.3
3
1.2.4
5
1.2.5
1.2
1.2.6
5
1.2.7
8
1.2.8
4
Critical Path; start-1.2.1-1.2.3-1.2.4-1.2.6-1.2.7-1.2.8
Project Duration: 5+3+5+5+8+4 = 30 days

CLASS EXERCISE_GANTT CHART
Pr. Dur
(days)
Duration(days)
1 2 3 4 5 6 7 8 9 1
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
2
0
2
1
2
2
2
3
2
4
2
5
1.1 1
1.2 3
1.3 5
1.4 1.2
1.5 5

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-UP
PRE-REQUISITES
– 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
• SITE LOCATION,RESOURCE AVAILABILITY,AREA
REGULATIONS,LEVEL OF SKILLS,SOIL CONDITIONS
ETC
• 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

BUILD-UP OF P&Gs-A
• Relocation of Existing Services
• Cost of Excavation by hand in soft and
intermediate material to expose services.

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

BUILD-UP OF P&Gs-A
• Installation & Commissioning
• Installation & commissioning of all
mechanical equipment

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-A
CLASS 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 _ SUMMARY
CLASS 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

TENDER _ SUMMARY
CLASS EXERCISE
• 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

WORK-PROGRAM RELATED CASHFLOW BUDGET
CLASS EXERCISE
112
CUMULATIVE
COST
BUDGET(R)
TIME
(DAYS)30
669,618.75

CASHFLOW BUDGET( ¼ -1/3 S-CURVE)
CLASS EXERCISE
113
DIRECT COST
BUDGET(R)
TIME
(DAYS)30
313,199
¼ - 1/3 S-CURVE

CASHFLOW BUDGET(S-CURVE)
114
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.

TENDER _ SUMMARY
CLASS EXERCISE
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 _ SUMMARY
CLASS 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
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 COMPLETION
PRACTICAL COMPLETION CERTIFICATE,
50% RETENTION RELEASE
WORKS COMPLETEDN
Contract
Period
14
Days
14
Days

POST-CONTRACT/CONSTRUCTION PHASE
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

• 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.

_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-REQUISITES
• CONTRACT/WORK DURATION
• GANTT CHART
• COST ESTIMATES
–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

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

ORGANISATIONAL STRUCTURE/ORGANOGRAM
• THE STRUCTURE WITHIN WHICH THE PROJECT WILL
BE ORGANISED.
• FEATURES;
• DESIGNATIONS(POSTS)
• RESPONSIBILITIES/DUTIES
• INTERRELATIONSHIPS(AUTHORITY LINES)
• COMMUNICATION LINES
136

A Project Organisational structure;
A classroom block, R5million contract
137
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 REQUIREMENTS
LABOUR RESOURCE SCHEDULE
• METHOD STATEMENT(TENDER STAGE)
• GANTT CHART(TENDER STAGE)
• LABOUR HISTOGRAM/CURVE
• LABOUR RESOURCE AVAILABLE/DAY
• RESOURCE OVERLOAD/OVER-
SCHEDULING

CLASS EXERCISE_LABOUR HISTOGRAM
Act. Lab.
Req.
Dur
(day
s)
Duration(days)
1 2 3 4 5 6 7 8 9 1
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
2
0
2
1
2
2
2
3
2
4
2
5
2
6
2
7
2
8
2
9
B 1 1 1
C 48 3 4
8
4
8
4
8
D 25 5 2
5
2
5
2
5
2
5
E 2 1.2 2
F 5 5 5 5 5 5 5
G 25 8 2
5
2
5
2
5
2
5
2
5
2
5
2
5
2
5
H 25 4 2
5
2
5
2
5
2
5

LABOUR HISTOGRAM_CLASS EXERCISE
140
LABOUR
TIME
(DAYS)
Labour Availability

LABOUR CURVE_CLASS EXERCISE
141
CUMULATIVE
LABOUR
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

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_EXAMPLE
TABLEOF PREDECESSORS
Task Lab.required/day Duration Predecessor
A 2 2 -
B 2 2 A
C 6 4 A
D 3 2 B
E 1 5 C
F 2 1 D,E

NETWORK DIAGRAM
B D
2 2
A F
2 1
C E
4 5
CRITICAL PATH A-C-E-F
DURATION 12 DAYS

GANTT CHART
1 2 3 4 5 6 7 8 9 10 11 12
A 2 2- 2 2
B 2 2A 2 2
C 6 4A 6 6 6 6
D 3 2B 3 3
E 1 5C 1 1 1 1 1
F 2 1D,E 2
2 2 8 8 9 9 1 1 1 1 1 2
2 4 12 20 29 38 39 40 41 42 43 45
Duration(Days)
Cumulative
Totals
Activity
Lab.requi
red/day Duration
Predeces
sor

LABOUR HISTOGRAM
RESOURCEOVER-LOAD/OVER-SCHEDULE
LabourRequired/day 12
11
10
9
8
7 LabourAvailable=6men/da
6
5
4
3
2
1
Duration(days)

REVISED GANTT CHART
1 2 3 4 5 6 7 8 9 10 11 12
A 3 1- 3 2/3*2=1day
B 1 4A 1 1 1 1 2/1*2=4days
C 5 5A 5 5 5 5 5 6/5*4=4.8days
D 1 6B 1 1 1 1 1 1 3/1*2=6days
E 1 5C 1 1 1 1 1
F 2 1D,E 2
3 6 6 6 6 6 2 2 2 2 2 2
3 9 15 21 27 33 35 37 39 41 43 45
Totals
Cumulative
Duration
CalculationsActivity
Lab.requi
red/day Duration
Predeces
sor
Duration(Days)

LEVELLED LABOUR HISTOGRAM
RESOURCELEVELLED
LabourRequired/day 12
11
10
9
8
6
5
4
3
2
1
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
CumulativeLabourRequired/day
Duration(days)
Labour Curve

REVISED NETWORK
B D
4 6
A F
1 1
C E
5 5
2 CRITICAL PATHS A-C-E-F & A-B-D-F
DURATION 12 DAYS

LABOUR RESOURCE LEVELLING_EXAMPLE
Activity Lab.required/day Duration Predecessor
A 2 2 -
B 3 3 A
C 3 6 A
D 2 2 A
E 3 5 B
F 2 7 C
G 3 3 D
H 2 1 E,F,G

NETWORK DIAGRAM
D G
2 3
A B E H
2 3 5 1
C F
6 7
CRITICAL PATH A-C-F-H
DURATION 16DAYS

GANTT CHART
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
A 2 2- 2 2
B 3 3A 3 3 3
C 3 6A 3 3 3 3 3 3
D 2 2A 2 2
E 3 5B 3 3 3 3 3
F 2 7C 2 2 2 2 2 2 2
G 3 3D 3 3 3
H 2 1E,F,G 2
2 2 8 8 9 9 9 6 5 5 2 2 2 2 2 2
2 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
LabourRequired/day RESOURCEOVER-LOAD/OVER-SCHEDULE
10
9
8
6
5
4
3
2
1
Duration(days)

REVISED GANTT CHART
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
A 3 1- 3 2/3*2=1day
B 1 9A 1 1 1 1 1 1 1 1 1 3/1*3=9days
C 3 6A 3 3 3 3 3 3
D 1 4A 1 1 1 1 2/1*2=4days
E 2 7.5B 2 2 2 2 2 2 2 2 3/2*5=7.5days
F 2 7C 2 2 2 2 2 2 2
G 1 9D 1 1 1 1 1 1 1 1 1 3/1*3=9days
H 2 1E,F,G 2
3 5 5 5 5 5 5 6 6 6 5 5 5 5 4 0
3 8 13 18 23 28 33 39 45 51 56 61 66 71 75 75
Totals
Cumulative
Duration(Days) Duration
CalculationsActivity
Lab.required/
day Duration Predecessor

LEVELLED LABOUR HISTOGRAM
LabourRequired/day RESOURCELEVELLED
10
9
8
7
6
5
4
3
2
1
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
CumulativeLabourrequired/day
Duration(days)
Labour Curve

REVISED NETWORK DIAGRAM
B
9
E
7.5
A C F H
1 6 7 1
D G
4 9
2 CRITICAL PATHS A-C-F-H/A-D-G-H
DURATION 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

OTHER TIME-SCHEDULING TECHNIQUES
NETWORK ANALYSIS
CRITICAL PATH METHOD(CPM)
PRECEDENCE DIAGRAMS
PERT
LINE OF BALANCE(LOB)

NETWORK ANALYSIS
CRITICAL PATH METHOD(CPM)
• Purpose:
• Introduce Schedule Flexibility
• Determination of the Critical path: Critical
and non-critical activities
• Determination of the project duration

ACTIVITY SEQUENCING
PREDECESSOR-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
•

WBS
_WAKING UP & GETTING DRESSED
172
1.0 Waking up & Getting Dressed
1.1
Wake up
1.2 Get
Undressed
1.3 Take a
shower
1.4 Dress up
1.4.1
Apply
Cosmetics
1.4.2
Put on
underwear
1.4.3
Put on
Socks
1.4.4
Put on
dress
1.4.5
Put on
shoes
1.4.6
Comb
Hair
1.4.4.1
Put on
trousers
1.4.4.2
Put on
shirt
1.3.1
Wash
hair
1.3.2
Wash
body
1.3.3
Dry up
1.4.1.1
Apply C.
face
1.4.1.2
Apply C.
body

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
173

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
EF
Activity i
ES
Activity 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_EXAMPLE
WBS 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 14
d 4 g 5
7 11 12 17 17 21
j 4
0 5 5 11 11 17 17 21
a 5 e 6 h 6
0 5 5 11 11 17
12 18
5 8 i 6
c 3 8 12 15 21
8 11 f 4
11 15
0 4
b 4
7 11
CriticalPath=a-e-h-j
ES EF CriticalTime/ProjectDuration=21days
Act.Name Duration
LS LF
ES-EarliestStart EF-Earliestfinish
LS-LatestStart LF-Latestfinish
start
ffinish

FLOATS TABLE
Act. 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

HOMEWORK
Activity 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

ASAPPROJECTS
10 15 15 19 19 24 24 27
I 5 J 4 K 5 L 3
29 34 34 38 38 43 43 46
0 10 10 18 18 22 22 27 27 34 36 46
B 10 C 8 A 4 D 5 M 7 N 10
0 10 10 18 18 22 22 27 29 36 36 46
46 54
27 36 O 8
CRITICALPATH-B-C-A-D-E-N-O E 9 46 54
27 36
CRITICALTIME/PROJECTDURATION-10+8+4+5+9+10+8=54days
27 37
P 10
28 38
22 27 27 33 37 45
F 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

PrecedenceDiagram
0 4 FF-4dayslead
A 4
0 11
2 12
SS-2dayslag B 10 FF-3dayslead
2 12
2 15
C 6
SS-0dayslead 9 15
FF-FinishtoFinish
SS-StarttoStart

SCHEDULE FLEXIBILITY
• THIS WILL HAVE TO BE ASSESSED BY THE PM.
• CHECKING HOW SUFFICIENT AND REALISTIC THE
FLOATS,LEAD AND LAG TIMES ARE.

SMALL 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 1
Saw 1
Rope 1
1.4 Setting Out Profiles,boning rods and stringlines 1
1.5 Excavation shovels 3
pickaxe 3
1.6 Cast Base
Concrete
headpans
4
wheelbarrow 4
shovel 4
wood float 1
screed beam 1
tamping rod 1
water hose 1
1.7 Build found wall Headpans 2
wheelbarrows 2
shovels 2
hand trowels 1
spiirit level & stringlines 1
1.8 Found Inspection -
1.9 Backfill shovel 6
watering can 1
hand 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

MATERIALS 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

MATERIALSREQUIREMENTSSCHEDULE
PROJECT NAME:
LOCATION:
PREPAREDBY:
DATE: SHEETNO:
Remarks
NoticeRequired DateRequired DateReceived
1.3 SiteClearing
1.4 SettingOut
1.5 Excavation
1.6 Cast BaseConcrete Cement 30 bag Day13toDay15
Sand 3 m3 Day13toDay16
Aggregates 6 m3 Day13toDay17
1.7 Buildfoundwall Bricks 1460 No. Day16toDay23
Cement 12 bag
Sand 2 m3
1.8 FoundInspection
1.9 Backfill
Deliverytimeexpected=DateorderedvsDateRequired
Longdeliverytimemeansthematerialsmustbeorderedasearlyaspossible
Thisisfinalisedafterareviewofthemethodstatement&theGanttchart
keydates
DateOrderedItem No. Activity
Descriptionof
Material Supplier Address/Tel.No.OrderNo. Qty Unit

MATERIALS SCHEDULE_CLASS
EXERCISE

PLANT SCHEDULE
• MASTER PROGRAM
• REVISED COST BUDGET
• PLANTS SCHEDULE

PLANTREQUIREMENTSSCHEDULE
CONTRACTNAME:
LOCATION:
PREPAREDBY:
DATE: SHEETNO:
Item No Activity
Plant
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 27
1.3 SiteClearing
1.4 SettingOut
1.5 Excavation
1.6 CastBase
Concrete
1.7 Buildfound
wall
1.8 Found
Inspection
1.9 Backfill
Thisisfinalisedafterareviewofthemethodstatement&theGanttchart&considerationoftheplantallocatedintheP&GS
Duration No.ofdays
RequiredDateRequired

PLANT SCHEDULE_CLASS EXERCISE

SUB-CONTRACTOR/SUPPLIERS SCHEDULE
• MASTER PROGRAM
• COST BUDGET SCHEDULE
• SUB-CONTRACTOR/SUPPLIERS SCHEDULE

SUBCONTRATORSANDSUPPLIERSREQUIREMENTS SCHEDULE
CONTRACT NAME:
LOCATION:
PREPAREDBY:
DATE: SHEETNO:
OrderNo. Notice Datecalled
Required start finish period start finish tosite
1.3 SiteClearing
1.4 SettingOut
1.5 Excavation
1.6 Cast Base
Concrete
1.7 Buildfound
wall
1.8 Found
Inspection
1.9 Backfill
Thisisfinalisedafterareviewofthemethodstatement&theGanttchart
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
• MASTER PROGRAM
• CONTRACT INFORMATION SCHEDULE_DESIGN

CONTRACT INFORMATION SCHEDULE
CONTRACTINFORMATIONREQUIREMENTS SCHEDULE
CONTRACT NAME :
LOCATION:
PREPARED BY:
DATE:
Item No. Activity
Details of
information
required
Information
required
from
BOQ Ref.
Anticipated
commencement
date
Information
required by
Date
information
received
Date of
request
Remarks
1.3 Site Clearing
1.4 Setting Out
1.5 Excavation
1.6 Cast Base
Concrete
1.7 Build found
wall
1.8 Found
Inspection
1.9 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 1
Step 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 2
Crash Activity D by 1 day
New Project Duration; 2+4+3 = 8 days, Same 2 critical paths: ABD & ACD
A
2
B
6 4
C
4
D
3 2

STEP 3
Crash Activity A by 1 day
New Project Duration; 1+4+2 = 7days, Same 2 critical paths: ABD & ACD
A
2 1
B
6 4
C
4
D
3 2

STEP 4
Crash 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 days
The 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/CHART
2.4 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
AC
ve)
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.
Planne
d cost
Prog
ress

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
•
•

• 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
•

• 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
•
•

• 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 MAY
Act 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 MAY
Act BAC BCWS/
PV
PC(%) BCWP/EV
=PCXBAC
ACWP/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 BAC
BUDGET VARIANCE
Progress( R ) 2000 BCWS
ETC
(Cum.)
1800 ACWP
1550 ACWP BCWP
CV
SV
1000 BCWP TIME VARIANCE
500
BCWS
0
JAN 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

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
•
•
•

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

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