Construction Management Exam 2

indirect costs

(aka overhead/general conditions) costs to manage and deliver the materials, labor, equipment, and subcontracts employed on any job, includes supervision, job trailer expense, temporary utilities, testing and inspections, and job photographs, security, etc

project evaluation

(post-mortems) last step in post construction, Opportunity for construction management team to review successes and hurdles.

query list

A list of questions and needed clarifications compiled by an estimator as they review the plans and specs during the estimating process.

capital project

A long-term investment project that will increase the organization's assets

Liquidated Damages

An amount of money paid to owner for each day the project goes over completion date in contract, not in all contracts

unbalanced bids

Bidding some items at inflated prices and compensating by bidding other items at below-cost prices changes cash flow of project, increases unit price of early cost items, may be related to expected variations in quantities

Permitting/ inspection process

CM team must be vigilant in pursuing timely building permit release, superintendent must be fully aware of inspection requirements connected to the proj.

superintendent

Coordinates all of the on-site construction activities. He/she is the daily point contact for the owner other representatives

implied warranty

Deal with products, materials, and equipment

add-ons

Describes the taxes, overhead and profit added to the estimate after all other costs have been calculated..

working drawings

Drawings that convey all of the information needed to manufacture and assemble a design.

bid depositories

Facility used to collect subcontractor bids

capital expenditure

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. This type of outlay is made by companies to maintain or increase the scope of their operations. These expenditures can include everything from replacing a roof to building a brand new factory.

factors that influence trust

History and experience, Competence and ability, Similarities and differences, Relative power and authority, Character

Project Manager (PM)

Leader of the team, usually with extensive experience in construction and management

committed listening

Listening intently to another person to make sure that you clearly understand what they mean by the words they are speaking without judging, assessing, or negating what they are saying

Mangement

Manage things - comes with title like project manager = schedules, budgets, safety program

final documentation

Package of documents to be submitted to the owner including, Warranties, Operation and Maintenance manuals, Inspection and testing reports, and As-built drawings

Quantity Surveyors

People who count up and calculate quantities of materials, labor, and equipment

land development

Refers to altering the landscape in any number of ways such as: changing landforms from a natural or semi-natural state for a purpose such as agriculture or housing

subcontracts

Sections of the job are out for bid to respective trades and prices are returned to the general contractor. Once the General contractor is selected the subcontract is then executed with each trade contractor, scope is important when choosing subcontracts

Certificate of Occupancy

Signifies all life safety code requirements are met prior to anyone occupying the building, issued by building officials

scope sheet

Similar to a work package, a scope sheet describes the items of work to be performed under a particular trade heading. It often accompanies a subcontractor's bid or a request for quotation.

committed speaking

Speaking with intention and purpose, using words specifically to clearly convey your exact meaning

due dilligence

The process of identifying any problems or areas of concern that exist and addressing them during the preconstruction phase, site investigation/soil testing

Unforeseen Conditions

Unknown physical conditions at the site that were not anticipated by the owner or the contractor

commissioning

a process of testing and checking all equipment and systems within the facility at the end of a project to assure proper functioning and operation. This may also include the training of owner personnel in the operation and maintenance of the equipment

alternates

a request included in the bidding documents asking the contractor to supply a price for some type of variation from the base bid. Allow the owner some flexibility in modifying the cost of a project when the bids are submitted by varying the quantity or quality of protions of the job. add- add to the base bid deduct- reduce the base amount

estimate

a summary, based on the best information available, of probable quantities and costs of materials, labor, equipment, and subcontracts to complete a project, includes taxes, overhead, and profit, can make or break project

Vulnerability based trust

accountability - Establishing honesty among team members through authentic check-ins and providing the support needed to make sure all team members, and thereby the project, succeed.

commitment management

accountability - The practice of being aware of each team member's tasks and deliverables, checking-in with them periodically, and helping when needed for the success of the project

cost

actual dollars spent for materials, labor, equipment, services, insurance, etc

The procurement stage

aka buying out the job, purchasing labor, materials, equipment, and subcontracts

Pre-Construction services

anticipatory planning, analytical, and evaluation activities that occur before construction begins, often during the design phase when at-risk CM, or design build is employed as the project delivery method

contract administraitor

assists PM and superintendent with contract details

Work Breakdown Structure (WBS)

basic building blocks of estimate and schedule, organizes work by breaking down each divisions of work into a separate work package, each is detailed items of work bundled together under a particular trade

pre-estimate

become famileir with requirements of project by: reviewing plans and specs, pre-bid meeting, site visit

pre-bid meeting

bidder's estimators usually sent to project site to ask questions

value

combination of design, quality, usefulness, character, style, location, amenities, functionality, desirability

lump sum estimates

common in construction, construction cost=cost of materials, labor, equipment, subcontracts, overhead, bonds, permits and fees, and markup

unit price estimates

common in engineering, bidders receive schedule of bid items/quantities, project cost=sum of the quantities for each bid item multiplied by the contractor's bid

pre-construction meeting

construction stage, when building is ready to start, superintendent will hold a pre-construction meeting for all subcontractors and major material suppliers, sets tone and ground rules (safety, meetings, scheduling)

completing the estimate

contractor delivers bid to owner, bid procedures specifies when and how contractors will know they've been awarded the contract

addenda

contractor identified errors in plans/specs, issued 4 days before bid due

direct costs

costs that actually go into building the facility such as materials, labor, equipment and subcontracts

quality of work

defined by standards in specifications

The design and bidding stages

design, bidding, contract award, notice to proceed

preconstruction time frame

design-bid-build, preconstruction after design is complete at-risk CM, design-build, and other alternative methods, pre-construction begins with design phase and overlaps with construction

balancing estimating and bidding

develop most probable cost, balance of being low often enough while maintaining profitable operations

allowances

dollars that are to be included in the bid, detailed in the specs

time of construction

estimator must anticipate changes in prices and availability of labor

calculating quantities

first determine quantities of materials/labor/general conditions then apply a unit price factor to the equation i.e. each, linear feet, square feet

project/field engineer

first step in progressing through the ranks of project management. Primarily handle paperwork such as requests for information (RFI), submittals, and shop drawings

product-oriented generating value perspective

focus on a product or building element you can provide for less money

punchlist

guides project punchout detailed list of items still to be completed, complied from lists by the owner, architect, contractor

site visit

important, site conditions are harder to understand in the plans/specs Consider distance from office, site conditions, access, soil, security requirement, traffic, storage

effective collaboration and team integration

integrated team creates new options and solutions that a single person would not have come up with collaborate=work together integrate=blend together

ethical commitment

keeping your word, honesty, fairly compensating employees, paying subs/vendors on time, rewarding superior performance

management factors

knowing owner or architect = slow/difficult, have to watch inexperienced subcontractor carefully

leadership

lead people - can be executed at any level = empower, encourage, inspire

land entitlement

legal process of obtaining approvals from a governing municipality to allow for the development of a certain building type

function or performance generating value perspective

look for alternative products to provide the same, or better, function and performance

effective communication

make specific requests, only accept committed responses, hold yourself and others accountable for the request and what was promised committed listening/speaking

alternative project delivery methods

most common are At-risk CM and design build, overlap design and construction to Better manage risks Generate better value and Eliminate waste owner benefits with lower costs, grater value, efficiency, higher quality, more innovation the project team, the owners, designers, contractors, vendors, persoeel, etc using collaboration, coordination, and communication give benefits of newest technology and advancemnts in materials and methods

markup

not profit, Distinguish own forces work versus work done by others

construction operations

on-site project team must be able to answer questions of the subs and owner and uses requests for informationterm- to clarify the designers intent, coordinates of all trades must be proactively managed for a smooth job

the bidding stage

plans/specs produced for bidders, stage is coordinated by either the architect or CM in assisting the owner in contractor selection

Project team key components

poeple, trust, accountability, ethical commitment

addenda

pre-bid plan/spec changes

value engineering

preconstruction best used during the design phase, but many owners haphazardly apply it during the construction phase which can lead to decreased value, applied correctly = enhanced results

life-cycle cost analysis

preconstruction calculating return on investment considering payoff and Initial first cost, Service cost, Maintenance cost, Operating cost, Disposal cost

Feasibility Studies

preconstruction done in very early stages to determine success of project for owners purpose, pros/cons examined, ensures decisions makers have the info they need before making a go/no-go decision

estimating churn

preconstruction during conceptual estimating new estimates based on the cost model must be put together multiple times during design to ensure the project is staying on budget, ensures no surprises with final project cost

constructability reviews

preconstruction performed by project manager during pre-construction to ease the construction process and look at quality, value, code compliance, schedule, sustainability, energy efficiency, and anything else deemed important to the owner's ultimate goals

conceptual estimating

preconstruction used during design to ensure completed design is within owners budget, if not during design over budget is common and owners options are: Increase budget to meet the design, redesign to the budget, Ask the contractor to perform value engineering

cost model

preconstruction used to create a working budget to guide design by allocating budget limits to design elements and systems, developed with project program including overall quantities. Added to that are the quality standards desired by the owner and current unit pricing

integrated project leader

primary accountability associated with leading design-build team, may take place of PM or PM reports to IPL, skills are communication, strategic foresight, emotional intelligence

Steps of the design stage

programming and feasibility, schematic design, design development, contract documents, as-builts

pre-construction

project manager leads assembling the team that will complete the job, detailed planning is invaluable, one of the hardest stages to manage, number of team members and when they're assigned to the team depends on project size/complexity

Project closeout steps

project punchout substantial completion final inspection certificate of occupancy commissioning final documentation final completion

factors impacting project cost

project size, complexity, site location, time of construction, quality of work, market conditions, management factors

Project overhead vs general overhead

project specific items that do not pertain to a specific item of work in the project, VS, general and administrative expense (running of the business)

substantial completion

punch list competed, designer determines facility can be utilized for intended purpose, end of project and beginning of warranty period, payments due to contractor are released

pricing the work

quantities are first half of estimate, now plug in the unit costs for each item of material, labor, equipment, and general conditions in your estimate, source of costs and their reliability is estimators primary concern

estimating process concerns

quantities, pricing, productivity

price

related to what the market will bear, owner may be given price greater than the cost for anticipated inflation, Increasing material prices, Labor shortages, Weather delays

mobilization

setting up, getting ready for construction, and laying out the site to be a safe and efficient environment (site layout, earthwork)

AEC culture shift and challenges

shifting towards collaborative nature, Challenges = Low-bid mentality, Competing agendas, Large diverse teams, Multigenerational workforce, Technology

decommissioning

shutting down a building and removing it safely from operational use

building the estimate

start form 48 divisions of CSI master format outline, common way to organize estimate use work breakdown structure

Value Engineering/analysis

to optimize resources by reviewing designs, products, materials, installation methods, applications, and execution to get the best value for the owner. Impacted by delivery method. Include field personnel who can provide valuable info

Pre-construction services evolution

today is a distinct part of the construction process, became more common as more alternative delivery methods are used

obtaining subcontractor/vendor bids

today they make up bulk of estimate, While the estimating team is putting together their own pricing for self performed work, they must also be gathering prices from subs for work they are not going to self perform, to ensure solid bids: includes soliciting the bids, receiving the bids, analyzing the bids, and choosing the bids

detailed estimates

used with complete set of plans and specs, as their accuracy increases, so does the time/skill required to complete the estimate

preliminary estimates

used with preliminary drawings with overall dimensions, slightly higher accuracy to establish initial budgets and financing, never used to commit to contract price

market conditions

when construction contracts are scarce cost becomes very competitive, estimate will reflect this

conceptual estimate

when there are no drawings, to help owner determine feasibility

express warranty

work will be preformed in a good and workmanlike manner