Terms (CMPM) Flashcards
1
Q
It is a process of directing and facilitating the
work of people who are organized for a
common purpose.
A
Management
2
Q
It is the function of getting things done
through the efforts of others
A
Management
3
Q
CONSTRUCTION PROJECT PARTICIPANTS
A
Owner
Design Professionals
Contractor
4
Q
owner owns land and pays for construction. Able to accept/reject bids
A
private owner
5
Q
government agency, public pays for the facility. Very strict method of soliciting bids, accepting bids, writing specifications
A
public owner
6
Q
assist owner in developing plan for facility, making sure it is structurally sound
A
Design Professionals
7
Q
Make sure all systems, utilities and facilities are integrated into design
A
Design Professionals
8
Q
Responsible for applying for and obtaining all necessary permits
A
Design Professionals
9
Q
build the project to the specifications set forth in the contract for a contracted price
A
contractor
10
Q
Will subcontract to specialty firms. Subcontractors may subcontract further
A
contractor
11
Q
is an intricate, time-consuming and organized process of constructing, renovating and retrofitting physical structures or infrastructures
A
construction project
12
Q
Characteristics of Construction Project
A
- Defined goals and objective
- Unique
- Complex and diverse
- Interdependent with each task
- Has a definite beginning and end or specific time frame
- Satisfy the owner’s expectations and requirements
- Not a routine work
- Involve significant task
13
Q
Project Stages
A
- Definition and Planning
- Design
- Procurement
- Construction
14
Q
- Establish project’s goals
- Establish broad project characteristics
- Create project plan
A
Definition and Planning
15
Q
- Involves architectural and engineering design of the entire project
- Final working drawings and specifications
- Research materials, equipment and design
A
Design
16
Q
Ordering expediting, and delivering of goods and services required for the construction project
A
Procurement
17
Q
Execution of construction work as per construction plan and design
A
Construction
18
Q
Construction Project Categories
A
- Residential Buildings
- Commercial Buildings
- Infrastructure and Heavy Constructions
19
Q
entails creating, maintaining and changing buildings that house people, goods or equipment
A
Residential Buildings
20
Q
Single family homes, apartments, townhomes, condos, nursing homes and dorms
A
Residential Buildings
21
Q
dependent on economy
A
Commercial Buildings
22
Q
Schools, sports stadiums, shopping malls, hospitals, stadiums, theaters, skyscrapers and commercial hubs
A
Commercial Buildings
23
Q
_________ frequently provides funding for and oversight of infrastructure projects like schools, healthcare facilities, etc
A
Government
24
Q
refers to infrastructures facilities, systems and structures that are developed, owned and operated by the government. Includes all facilities that are open to the general public for use
A
Infrastructure and Heavy Constructions
25
Highways, mass transit systems, tunnels, bridges, pipelines, drainage systems and sewage treatment plants
Infrastructure and Heavy Constructions
26
Types of Infrastructure and Heavy Constructions
1. Soft Infrastructure
2. Hard Infrastructure
3. Critical Infrastructure
27
refers to all institutions that help maintain a healthy economy
Soft Infrastructure
28
comprises all the physical systems that are crucial to running a modern, industrialized economy
Hard Infrastructure
29
makes up all the assets that are defined by the government as being crucial to the functioning of an economy
Critical Infrastructure
30
Other Examples of Infrastructure and Heavy Constructions
- Transportation Infrastructure
- Water Infrastructure
- Power and Energy Infrastructure
- Telecommunications Infrastructure
- Political Infrastructure
- Educational Infrastructure
31
is a proposal for an investment to build, expand, or develop special facilities in order to increase the production of goods and/or services in a community over a specific period of time
Industrial Projects
32
Include buildings directly used in the production of power, the manufacture of products, the mining of raw materials, and the storage of textile, petroleum products, wood and paper products, chemicals, plastics and metals
Industrial Projects
33
Types of Industrial Projects
- Heavy Industrial Buildings
- Warehouses
-Telecom Centers or Data Hosting Centers
- Cold Storage Buildings
- Light Manufacturing Buildings
- Flex Buildings
34
Chronology of Project Construction
1. Conceptual Planning
2. Schematic Design
3. Design Development
4. Construction
35
add in or delete items to get desired product
Iterative Process
36
a proposal submitted by a contractor, supplier or service provider to compete for a project or contract
bid
37
Typically include a detailed description of the work to be performed, the timeline for completion and the estimated cost
bid
38
refers to the likelihood that an event or condition may occur
Project Risk
39
Could have an adverse impact on a project’s objectives, schedule, budget or quality
Project Risk
40
Different Types of Project Risk
1. technical
2. environmental
3. financial
4. legal
5. operational
41
Examples of Project Risks
- Project Site
- Project
- Process
- Owner Organization
42
neighbors, regulatory environment, subsurface conditions, economic climate
Project Site
43
complexity, planned technologies, degree of finishes, materials, mechanical/electrical system
Project
44
project funding, timetable, preconstruction info, project unknowns
Process
45
sophistication, organizational structure, decision making
Owner Organization
46
is the amount of money or time set aside to cover unforeseen events or risks that may arise during the course of project
contingency
47
Are intended to cover unexpected costs or delays that could impact a project’s schedule, budget or quality. It cannot be returned or refunded to the owner
contingency
48
Developing a Contingency Plan
1. Identify potential risks
2. Assess the probability and potential impact of each risk
3. Develop a response plan
4. Assign responsibilities
5. Monitor and update the plan
49
refers to an agreement between two or more people with a common intention
Contract
50
It is enforceable by law and aims to create obligations, and define expectations between parties
Contract
51
Elements of a Contract
1. Offer
2. Acceptance
3. Signatory Awareness
4. Contractual Consideration
5. Contractual Capacity
6. Contract Legality
52
begins with desire and responsibility, outlines duties and must include an exchange of value. One party wants something and the other can fulfill it
offer
53
the one who creates the offer can choose to accept or reject it
acceptance
54
Types of Acceptance
- conditional
- acceptance by action
- option agreement
55
accept with certain conditions
conditional
56
aka “meeting of the minds”, both parties must willingly and knowingly enter into agreement
signatory awareness
57
is something of value exchanged between parties in a contract which is essential for a contract to be valid and enforceable
Contractual Consideration
58
a person cannot sign away their rights without fully understanding what they are agreeing to
Contractual Capacity
59
must comply with federal, state and local laws
Contract Legality
60
Types of Contracts
1. Lumpsum Contract
2. Item Rate or Schedule Contract
3. Lumpsum and Scheduled Contract
4. Cost Plus Fixed Fee Contract
5. Cost Plus Percentage of Cost Contract
6. Special Contracts
61
aka “pakyawan”, no individual rate quotes and the contractor agrees to perform the entire work for a total amount of money
Lumpsum Contract
62
contractor is waged on an item rate basis
Item Rate or Schedule Contract
63
similar to lumpsum, except for the inclusion of a rate schedule
Lumpsum and Scheduled Contract
64
amount of fee is determined as a plump sum from a consideration of the scope of its work, approximate cost, etc
Cost Plus Fixed Fee Contract
65
given on certain percentages over the actual cost of construction instead of awarding work on lumpsum or item rate basis
Cost Plus Percentage of Cost Contract
66
integrated contract in which all works (CE, EE, ME, etc) are in a single contactor called the main contractor
Turn-Key Contract
67
two or more related jobs are combined in a single contract
Package Contract
68
Main contractor can hire subcontractors. Owner does not need to coordinate the work of all different contractors
Example: powerplants, hospitals, real estate
Turn-Key Contract
69
Main contractor is responsible for safeguarding owner’s interest. Main contractor cannot hire subcontractors (1 contractor = all task)
Package Contract
70
takes place between representatives of owner and main contractor for project cost and other conditions. Detailed specifications are arrived at by discussions. Involves extended discussions for finalization
Example: IT systems, hospitals
negotiated contract
71
new or additional work is awarded to the contractor on the basis of agreed terms. Does not require re-tendering, saving time and money
Continuing Contract
72
provides goods and services continuously at specified intervals or as when required by owner. Contract price is not fixed and payment is based on goods supplied or services rendered
Example: food supplies, fuel, maintenance
Running Contract
73
is an agreement between two or more parties that establish each party’s obligations, responsibilities and rights
Contract Documents
74
Consist of a contract agreement (on non-judicial stamp paper of prescribed value), and a set of documents with each page signed
Contract Documents
75
Parts of a Contract Document
1. Cover Title Page
2. Contents Page
3. Notice Inviting Tender
4. Tender Form
5. Schedule of Issue of Materials
6. Drawings
7. Specifications
8. Conditions of Contract
76
name of work, owner, contract, contract agreement number, contents, etc
cover title page
77
contents of the agreement with page references
contents page
78
name of work, brief description, estimated cost, date and time of receiving the tender, etc
Notice inviting tender
79
list of materials to be issued by the department or owner to the contractor
schedule of issue of materials
80
complete set of fully-dimensioned drawings including plans, elevations, sections, etc
drawings
81
clear and precise covering all items of the bill of quantities
specifications
82
class and type of work quality of materials, etc in general (as a whole)
general specifications
83
detailed description of each item including material and method to be used
detailed specifications
84
bill of quantities, contractor’s rates, total cost of work, time for completion, security money, etc
tender form
85
Important Conditions of Contracts Connected with Contractual Problems
1. Time of Completion
2. Delay and Time Extension
3. Penalty
4. Compensation for Delay in Completion of Work
5. Liquidated Damages
6. Debitable Agency
7. Valuation of Variations
8. Settlement of Disputes
9. Force of Nature and Natural Disasters
10. Price Escalation
11. Termination of Contract
86
contractor is required to complete the work within the agreed time of completion
time of completion
87
should be brought to notice of the owner by the contractor in writing, for seeking time extension
delay and time extension
88
a fine imposed on the contractor for nonfulfillment of his contractual obligations
penalty
89
28 compensations may be stated as percentage of estimated cost of work for each unit of time delay (maximum 10%)
compensation for delay in completion of work
90
fixed stipulated sum payable by the contractor on account of penalty for delays and does not bear any real damage to owner (generally high and fixed per day)
liquidated damages
91
when a contractor fails to meet contractual obligations, a debitable agency is appointed to complete the work
debitable agency
92
based on change orders issued in writing by the owner (individual items – max 25%, total cost – max 10%)
valuation of variation
93
efforts should be made to address disputes, arbitration clause may be incorporated to settle disputes not resolved through mutual discussions
settlement of disputes
94
contractors should obtain insurance for risks that can be covered, can request compensation for non-insurable losses
force of nature and natural disasters
95
labor wages and material prices may increase as result of inflation
price escalation
96
owner may impose a penalty of up to 10% of the estimated project cost
termination of contract
97
Types of Specifications
1. Contract Specification
2. Guide Specifications
3. Standard Specifications
4. Manufacturer’s Specifications
98
aka brief specification, gives general idea of the class and type of work, brief descriptions of materials, quality and workmanship
general specifications
99
provide detailed descriptions, written in same order in which the work is carried out
detailed specifications
100
provide guidelines for preparing contract specifications. Give broad idea about class and type of construction for a particular purpose
guide specifications
101
serve as the guidance of all concerned with construction or construction industry. Includes method of manufacture, tests, code of practice, etc
standard specifications
102
includes installation instructions and other guidelines for use and maintenance of the product. Provided in the form of manuals
manufacturer's specifications
103
refers to to a structured systems where engineers, project managers, laborers, etc work cooperatively toward a common goal
organization
104
is based on certain parameters: determination and groupings of activities, assigning activities to each department, actions defining hierarchy, etc
organization structure
105
Structural Elements of an Organization
1. Men
2. Materials
3. Machine
4. Methods
5. Money
106
Major Elements of Organizational Structures:
- Distribution of functions
- Vertical and horizontal authority relationships
- Communication and decision processes
- Policies
107
Success Factors for a Construction Organization
1. Top Management Competence
2. Experience and Performance
3. Effective Cost Control Measures
4. Availability of Resources
5. Supply Chain and Leadership
108
effective risk management system, well-defined strategy, strong professional culture, financial stability, etc
top management competence
109
client satisfaction with the company’s products or services, company’s reputation and track record, experience in the construction industry
experience and performance
110
organization’s access to cost control measures, presence of favorable government policies
effective cost control measures
111
availability of qualified personnel, access to necessary materials, equipment and labor
availability of resources
112
efficient supply chain management, presence of dynamic leadership
supply chain and leadership
113
refers to the official framework that determines how a business or entity is legally recognized, governed, taxed and operated. Defines ownership, management roles, liability and regulatory compliance requirements
Legal Organization Structure
114
simplest structure to set up. Owned by one person, owner and business are legally the same
sole proprietorship
115
involves two or more people sharing ownership
partnership
116
has equal roles
general partnership
117
has varying roles and responsibilities
limited partnership
118
the entity a separate legal entity from its owners
corporation
119
exists as separate legal entity from its owners
C- corporation
120
may consist of up to 100 shareholders and functions the same way as partnership
S-corporation
121
refers to the framework that defines how roles and responsibilities are distributed within a company
Management Organization Structure
122
Types of Management Organization Structure
1. Hierarchical Structure
2. Flat Structure
3. Matrix Structure
4. Functional Structure
5. Divisional Structure
6. Team-based Structure
7. Network Structure
123
most traditional structure, with a clear chain of command (top management to employees)
hierarchical structure
124
has same power and authority
flat structure
125
employees report to multiple managers
matrix structure
126
few or no levels of middle management, with employees having more autonomy
functional structure
127
divided into self-sufficient divisions based on product lines, geography and market segments
divisional structure
128
employees work in cross-functional teams rather than following a strict hierarchy
team-based structure
129
decentralized structure where a company outsources many functions but coordinates them centrally
network structure
130
Types of Structure of Construction Organization
1. Line or Military
2. Line and Staff
131
earliest and simplest form. Based upon military formation. Downward delegation of authority
line or military
132
more complex, with a mix of leadership and expertise working together
line and staff
133
have authority over core activities and decisions of department
line manager
134
provide support, advice and expertise but do not have direct authority
staff specialists
135
Types of Organization for Project Management
1. Functional
2. Projectized
3. Matrix
136
hierarchical type wherein people are grouped as per their area of specialization. Supervised by the functional manager with expertise in the same field
functional
137
nearly the opposite of functional organization. Focused on the project itself, authority rests with the project manager
projectized
138
employees report to both functional and project managers
matrix
139
140
141
142
Principle of Good Organization
1. Objective
2. Analysis
3. Functionality
4. Simplicity
5. Departamentalized
6. Centralization of authority and responsibility
7. limited span of control
143
focused on setting clear and specific goals
objective
144
systematic examination of processes, structures and performance to enhance efficiency and decision-making
analysis
145
idea that systems and processes should be simplified and broken down into smaller task units without sacrificing effectiveness
simplicity
146
idea that every component of organization should serve a clear and practical purpose
functionality
147
process of dividing an organization into distinct units based on functions and tasks
departmentalized
148
top leaders have the most power, senior management makes big decisions while low-level managers have less authority
centralized of authority and responsibility
149
refers to a number of employees a manager oversees
limited span of control
150
Different Levels in a Construction Project Organization
1. Executive
2. Managerial
3. Technical
4. Supervisory
5. Operational
151
Roles in Construction Project Organization
1. Owners/Clients
2. Construction Project Manager
3. Architects and Designers
4. Structural Engineer
5. Construction Superintendent
6. General Foreman
7. Trade Foreman
8. Site Clerk
9. General Contractors
10. Subcontractors
11. Quality Control Inspector
12. Safety Officer
13. Surveyors
14. Permitting Specialists
15. Legal Counsel
152
highest level, responsible for making strategic decisions, setting company policies, etc
executive
153
oversees the planning, execution and closing of the project
managerial
154
detailed planning, designing and engineering aspects of the project
technical
155
oversees the work of various trade workers and ensures project is progressing
supervisory
156
hands-on level where skilled workers, laborers and equipment operators execute physical tasks
operational
157
project initiator and defines project scope, objectives and budget
owner/clients
158
leads the project team to ensure a quality project within time, budget and scope
construction project manager
159
qualified professionals in charge of design, planning and supervision of construction processes
architects and designers
160
responsible for any structural failure, supervise material selection, structural integrity, etc
structural engineer
161
develop a schedule, oversee workers’ performance and manage communications from office to the field
construction superintendent
162
in charge of day-to-day operations, oversee the entire construction workforce
general foreman
163
experienced workers in specific field, but organize other workers to ensure they have the right tools and machinery, coordinate tasks and train employees
trade foreman
164
aka field engineer, entry-level position, ideal for recent graduates
site clerk
165
responsible for coordinating subcontractors, managing operations at site, ensure activities are performed correctly by subcontractors
general contractors
166
specialists in specific trades like plumbing, HVAC, electrical, concrete, etc
subcontractors
167
ensures work meet the project’s quality standards
quality control inspector
168
focus on maintaining a safe work environment
safety officer
169
provide precise measurements and data to establish property boundaries, elevations, and site conditions
surveyors
170
ensures all necessary permits are obtained before construction begins
permitting specialists
171
legal counsel
172
