Policies of Management of Construction Projects

Policies of Management

• Factors contractors consider in deciding whether or not to bid a particular project include:
  • Location of the work
  • Factors Contractors Consider
    • Identity of the owner
    • Availability of key company personnel
    • Experience in the type of work solicited
  • Factors Contractors Consider
    • Whether or not there is financing for the project
    • Size of the project.

Bid Preparation

Bid preparation is expensive! In preparing a bid, contractors must consider the costs of:

• Equipment
• Labor
• Materials
• Subcontractors

Consider the costs of:

• Job and company overhead, contingency, and profit
• Should also consider the number of competitor bidders and the bidding history of those competitors on similar projects
  

Award Phase

• Owner provides:
  • Builder’s Risk insurance
• Successful bidder must provide:
  • Payment and performance bonds
  • Workers compensation insurance
  • Liability insurance
  • List of subcontractors
  • Detailed project schedule
    

Notice to Proceed

Contractor cannot begin the work until the Notice to Proceed is received – so Use the time between bid opening and contract award for detailed pre-project planning.

Pre-project planning

Planning how the work will proceed and in what sequence

• Construction procedures
• Type of equipment to be used
• Job access
• Location of the field office and storage areas
• Final selection of subcontractors and suppliers
  

Pre-project planning

• Cash flow analysis should be completed to determine if the company needs to borrow money
• Detailed project schedule is prepared
• Work break down (WBS) and pay schedule are planned
  

Construction Phase

Size of the contractor’s on-site project management organization is a function of the size and complexity of the project.

Steps in Construction Scheduling
The process of determining the interrelationship of associated timings of operations...

Cost Control Management Techniques
Involves determining what physical resources (people, equipment, materials etc) and what quantities of each should be used to perform project activities...

Resource Levelling Allocation Management
Techniques for resource allocation management and resource levelling, resources may be limited or unlimited in nature from project to project.