ESTIMATING,QUANTITY SURVEYING, Detailed Estimates

QUANTITY TAKE-OFF

ESTIMATING - this includes the detailed

particulars for the quantities, rates
- An estimate for any construction and costs of all the items involved
work may be defined as the for satisfactory completion of
process of calculating the project.
quantities and cost of various items
required in connection with the • Approximate Estimate
work.
- this is made to find out an
PURPOSE OF ESTIMATING
approximate cost in a short time
1. To ascertain the necessary amount of and thus enable the responsible
money required by the owner to authority concerned to consider the
complete the proposed work. financial aspect of the scheme for
2. To ascertain quantities of materials according sanction to the same.
required in order to program their timely
procurement. o UNIT METHOD - in this
3. To calculate the numbers of different method all cost of a unit
categories of workers those are to be quantity such as per km for
employed to complete the work within a highway, per meter of
the scheduled time of completion. span from a bridge, per
4. To assess the requirement of tools, classroom for school
plants and equipment required to building, per bed for
complete the work according to the hospital, per liter for water
program. tank, etc are considered first
5. To fix up the completion period from the and the estimate is prepared
volume of works involved in the by multiplying the cost per
estimate. corresponding unit by the
number of units in the
6. To draw up a construction schedule
structure.
and program and also to arrange the
funds required according to the
program.
7. To invite tenders and prepare bills
for payment.
8. An estimate for an existing property
is required for valuation.

ESTIMATION COMPOSITION
QUANTITY X RATE = COST TYPES
OF ESTIMATING
 o SUPERFICIAL OR SQUARE estimation, cost planning, value
METHOD - is a type of engineering, feasibility studies,
approximate estimates cost benefit analysis, lifecycle
wherein plinth area of a costing, and valuation.
building shall be determined
first. Estimate of building is COST ESTIMATION
worked out and multiplied by
- accounts for each element required
the area of the building with
for the project — from materials to
area rate of the locality for
labor — and calculates a total
similar buildings constructed
amount that determines a project's
recently.
budget. An initial cost estimate can
determine whether an organization
• Revised Estimate
greenlights a project.
- it is a detailed estimate for the COST PLANNING
revised quantities and rates of
items of work originally provided in - Cost planning is a fundamental
the estimate without material process that involves estimating
deviations of a structural nature and managing the costs associated
from the design originally approved with a construction project from its
for the project. inception to its completion.

VALUE ENGINEERING
• Supplementary Estimate
- also known as value analysis or
- while work is in progress, some value management, is a systematic
changes or additional works due to and organized approach used in
material deviation of a structural quantity surveying and
nature from the design originally construction to maximize the value
approved may be thought of a project while minimizing costs.
necessary for the development of a
project. FEASIBILITY STUDIES

- are comprehensive assessments

• Maintenance or Repair Estimate
conducted at the early stages of a
construction project to determine
- after completion of a work it is
whether the project is financially
necessary to maintain the same for
and technically viable
its proper function and for the
same as estimate is prepared for COST-BENEFIT ANALYSIS
the items which require renewal,
replacement, repairs, etc. - is a systematic and quantitative
evaluation method used to assess
QUANTITY SURVEYING the financial feasibility and
economic viability of construction
- Is broadly concerned with the
projects or other investments.
estimation, planning, and control of
the cost projects. It cover a wide
range of activities including cost
LIFECYCLE COSTING • Construction Stage
- often referred to as whole-life
- Keeps the cost on track, cash flow
costing or life cycle cost analysis
data, cost effects on changes,
(LCCA), is a comprehensive
project report, resolving disputes.
approach in quantity surveying and
construction management that
• Post-Construction Stage
involves the evaluation of all costs
associated with a construction
- Adds up the total cost, records the
project or asset over its entire
actual costs, statement of final
lifecycle.
account.
VALUATION
QUANTITY TAKE-OFF
- refers to the process of
- The process of preparing a
determining the monetary value or
complete list of all components
worth of a construction project,
needed to complete the project.
property, or asset at a specific
- Includes all components including
point in time.
site and direct overhead.
QUANTITY SURVEYOR - Units include all common unit
( feet, sq. feet, yards, etc.),
- Quantity surveyor (construction months, each, and lump sum.
cost consultants/cost estimators)
work for either the client or the SITE WORKS
contractor and can be based in an
- Site works is the trimming of lot
office or on-site. They make sure
and building area to formation
the costs of large construction and
levels including all necessary
infrastructure projects are
cutting, filling and compaction as
accurately estimated based on
required. It is a part of a
initial requirements and project
construction project that is not part
specs.
of a building house's physical
STAGES OF WORKS structures.

• Project Inception Stage ITEMS INVOLVED IN SITEWORKS

- Feasibility studies and rough
• Clearing and Grubbing
Estimates

- Removal of trees, shrubs, stumps

• Pre-Construction Stage
and rubbish from site.
- Identifies costs, estimated budget,
• Batterboard and Layouting
value engineering, detailed
estimate.
- Making the location of proposed
new structures.
 • Soil Poisoning TWO BASIC FUNCTIONSOF
CONSTRUCTION EQUIPMENT
- Also known as subterranean
- Operators which stay within the
termite control.
confines of the construction site
- Haulers which transport materials
• Excavation
to and from the site

- The process of moving earth, rock TYPES OF CONSTRUCTION EQUIPMENT

or other materials with tools,
equipment or explosives. it • Earth Moving Equipment
includes earthworks, trenching,
wall shafts, tunneling and - Earth moving equipment are large,
underground. heavy-duty vehicles that are often
seen in the mining and
• Backfilling and Compaction construction sites to move and
relocate heavy materials, rocks,
- happens after excavation when the and mud, dirt and debris or
soil is compacted back into the lumber.
trench or foundation. Unit of - Ex. Excavators, Graders, Loaders,
measurement is cubic meter Backhoe, Bulldozer, Crawler
(volume) Loader, Ditches, Scraper, Loading
Shovel
• Disposal
• Construction Vehicles
- Disposal of excess materials
- Units of measurement is - Construction vehicles are designed
cubic meter (volume huge to transport engineering
- Disposal=excavation-backfilling materials from one place to
another.
- EX. Tippers, Trailers, Tank Truck

CONSTRUCTION EQUIPMENT,
• Material Handling Equipment
OPERATIONS, PRODUCTIVITY, AND
MAINTENANCE
- Material handling equipment are
CONSTRUCTION EQUIPMENT used to assist other equipment by
conveying, hoisting, and lifting,
- refers to heavy-duty vehicles, and others.
specially designed for executing - EX. Crane, Hoist, Conveyor, Forklift
construction tasks. Trucks
- They are also known as heavy
machines, heavy trucks, heavy • Construction Equipment
equipment, engineering equipment,
heavy vehicles, or heavy - These are equipment used in the
hydraulics. construction site to ease the labor
- of mixing, compacting and the like.
- EX. Concrete Mixer, Compactor,
Road Roller, Paver
EQUIPMENT MANAGEMENT - It may be noted here that the
- Construction equipment value of the equipment depreciates
management refers to continuous with time.
evaluation of the construction
• Taxes
equipment fleet and its cost while
at the same time considering the
- It represents the property taxes to
projects at hand.
be paid to the state or central
- It is the process of balancing the
government.
expense and use of the
construction equipment against the
• Insurance Cost
timelines and income from the
projects.
- It represents the annual premium
EQUIPMENT COST to be paid to insurance companies
to cover the cost incurred due to
- Equipment Costs means the total accidents, fire, theft, etc. for the
cost of the Equipment. construction equipment.
OWNERSHIP COST
• Storage Cost
- Ownership cost is the total cost
associated with the construction - It is the cost of keeping the
equipment for owning it. equipment in storage yards when it
is not operating at the work site.
OWNERSHIP COST CONSTS OF: Storage cost includes the rental
• Initial Cost and maintenance charge for
storage yards, wages of security
- It is the capital investment guards, and wages of workers
required to own the equipment. It employed for bringing in and out of
includes purchase cost, sales tax, the storage yards.
and transportation cost. OPERATING COST

• Salvage Value - Operating cost is incurred only

when the equipment is operated.
- It represents the expected cash The operating cost of the
inflow that will be received by equipment is influenced by various
disposing of equipment at the end parameters namely number of
of its useful life. operating hours, location of job
site, operating conditions, category
• Interest Cost of equipment etc.

- Interest cost or cost of capital

investment is the annual cost of
interest charged on the borrowed
money or that of capital
investment to acquire the
ownership of the equipment.
OPERATING COST CONSIST OF: • Cost of Replacing High-Wear
Items
• Repair and Maintenance Cost

- It represents the cost of highwears

- It includes the cost of replacement
items, and these items have a
parts, labor charges and the cost of
shorter life as compared to the
setting up and operating facilities
service life of the equipment.
to carry out major repair and
maintenance operations.
• Cost of Mobilization Assembly
and Demobilization
• Fuel Cost
- The construction equipments are
- This cost includes transportation
generally powered by internal
charges from one project site to
combustion engines that use
another, road permits, unloading
gasoline (petrol) or diesel.
charges, cost of assembly at the
project site etc.
• Tire Cost
IMPORTANCE OF CONSTRUCTION
- The cost of pneumatic tires (rubber EQUIPMENT MAINTENANCE
tires) is considered as a part of
operating costs. The tire cost 1. Safety
includes the tire repair and 2. Reliability
replacement charges. 3. Cost-Efficiency
4. Performance
• Cost of Lubricating Oil, Filter, 5. Quality Assurance
and Grease 6. Reduction in Unexpected Failures
7. Avoiding Emergency Repairs
- The quantity of lubricating oil, filter 8. Operator Satisfaction
and grease required depends on
operating hours, frequency of 7 STRATEGIES IN MAINTAINING
CONSTRUCTION EQUIPMENT
changes, engine characteristics,
and working conditions at the job 1. Regular Inspection
site. 2. Scheduled Preventive Maintenance
- The quantity of lubricating oil 3. Operator Training
required by an engine is equal to 4. Record-Keeping
the amount added during complete 5. Storage and Shelter
change plus the small amount 6. Replace Parts Proactively
added between the changes. 7. Educate both equipment operators and
maintenance technicians.
• Equipment or Operator Wages
CONSIDERATIONS IN CALIBRATING OF
- The operator cost includes the THE EQUIPMENT
hourly wages and benefits paid by
the company to the operators. 1. Manufacturer’s Recommendations
2. Frequency of Use
3. Environmental Conditions
4. Historical Data
EXAMPLES OF EQUIPMENTS AND ITS RESOURCE MANAGEMENT PROCESS
CORRESPONDING TIME OF
CALIBRATION 1. Resource Analysis – the process of
gauging your current resource
1. Heavy Equipment Load Cells-Before availability to determine what
each use or as per manufacturer resources are missing for the
guidelines execution of a project or action plan.
2. Surveying Equipment – Annually 2. Resource Planning – Explains what
3. Concrete Testing Equipment – Every your project resource requirements
12 to 24 months or after any are and how they’ll be met.
repair/maintenance. 3. Resource Scheduling – Ensure that
4. GPS Systems for Grading – those resources are readily available.
Periodically, as specified by the GPS 4. Resource Allocation – An ongoing
system manufacturer. process that’s simply defined as
picking the right resources at the right
BENEFITS OF EQUIPMENT
time to achieve project tasks.
MAINTENANCE
5. Resource Tracking – Keep track of
1. Maintaining peak equipment the performance of your team.
performance
MANPOWER LEVELLING
2. Enhanced Safety
3. Reducing the number of unexpected - Manpower leveling is a technique
breakdowns used in project management to
4. Extending equipment lifespan ensure that the workforce of a
5. Greater equipment availability project is allocated in a way that
maximizes productivity and
efficiency.
RESOURCE MANAGEMENT, RESOURCE
LEVELLING, CONSTRUCTION LABOUR, CONSTRUCTION AND LABOUR
MANPOWER PLANNING, CONTROL AND REQUIREMENTS
MONITORING
- Construction labor and
PROJECT RESOURCE MANAGEMENT requirements refer to the
workforce and associated needs
- It is the process of planning,
essential for planning, executing,
scheduling, and allocating
and completing construction
resources to complete a project.
projects. Managing labor effectively
- Necessary Resources:
is crucial for ensuring projects are
o Human Resource
completed on time, within budget,
o Materials
and to the required quality
o Equipment standards.
o Facilities
1. LABOR CATEGORIES – typically
involves the following:

a. Skilled Tradespeople –
Involves skilled people in
special fields.
 b. General Laborers – Involves of general laborers for support
work on general tasks such as tasks.
cleaning and assisting skilled
laborers. 4. COMPLIANCE WITH LABOR
c. Project Management and LAWS - Construction projects must
Supervision – Involves people comply with local, state, and federal
that oversee the progress of the labor laws, which often include
project. regulations regarding:
d. Administrative and Support
a. Wages – Ensuring workers
Staff – Handle documentation,
receive fair wages, including
permits and paperworks.
overtime pay when applicable.
2. SKILL AND QUALIFICATIONS b. Safety – Adhering to
REQUIREMENTS – each category has Occupational Safety and Health
a qualification requirement Administration (OSHA)
regulations and providing safe
a. Skilled Trades – Workers must working conditions.
have the appropriate licenses, c. Labor Unions – Complying
certifications, and training for with collective bargaining
their trade. For example, agreements and maintaining
electricians need electrical positive relations with labor
licenses, while welders require unions, if applicable.
welding certifications.
b. General Laborers – These 5. SAFETY REQUIREMENTS – Safety
workers typically need basic is a top priority in construction, and
construction knowledge and on- labor requirements include:
the-job training. Safety training
a. Safety Training – Providing
is crucial for all construction
workers with appropriate safety
laborers.
training, including hazard
c. Project Management and
identification, emergency
Administrative Staff – Must
procedures, and the use of
have degrees in construction
personal protective equipment
management or related fields
(PPE).
and hold certifications.
b. Safety Officers - Appointing
3. LABOR PLANNING – each safety officers or coordinators to
category has a qualification enforce safety protocols and
requirement. conduct regular inspections.

a. Workforce Scheduling – 6. EQUIPMENT AND TOOLS - Labor

Determine the number of requirements also extend to
workers needed at different equipment and tools:
stages of the project and create
a detailed schedule. a. Heavy Machinery - Ensuring
b. Resource Allocation – that skilled operators are
Allocate skilled workers where available to operate heavy
their expertise is most needed machinery such as cranes,
and ensure an adequate supply excavators, and bulldozers.
 b. Hand Tools – Providing c. Safety Records – Maintaining
workers with the necessary records of safety incidents,
hand tools, power tools, and inspections, and safety training.
safety equipment for their
tasks. 10. QUALITY CONTROL –
Construction labor requirements
7. LABOR CONTINGENCIES – should also include quality control
Construction projects may face measures to ensure work meets
unexpected challenges, such as specified standards and specifications.
weather delays, equipment In conclusion, construction labor and
breakdowns, or labor shortages. Labor its associated requirements are critical
requirements should account for these components of any construction
contingencies and have contingency project. Proper planning, compliance
plans in place. with labor laws, safety protocols,
effective communication, and
8. COMMUNICATION AND
documentation are essential for the
COORDINATION –
successful execution of construction
Effective
projects of all types and sizes.
communication and coordination
among labor categories and project MANPOWER PLANNING
stakeholders are vital:
- Also known as Human Resource
a. Regular Meetings – Holding Planning, Manpower Management,
regular meetings to discuss or Workforce Planning.
progress, address issues, and - A crucial aspect of human resource
ensure everyone is aligned with management that
project goals. enables
b. Stakeholder Engagement – organizations to effectively plan
Maintaining clear and allocate their workforce
communication with clients, requirements.
contractors, suppliers, and
regulatory authorities. IMPORTANCE OF MANPOWER PLANNING

9. RECORDING AND • Optimizing the use of

DOCUMENTATION – Accurate Human Resource
record-keeping and documentation are
essential for compliance, - the primary objective of manpower
accountability, and project planning is to optimize the use of
management: existing human resources. this
means ensuring that the
a. Timesheets – Tracking labor organization has the right number
hours worked by each of employees with the necessary
employee. skills and qualifications to meet its
b. Materials and Equipment goals and objectives.
Logs – Keeping records of
materials used and equipment
operated.
• Improving Employee Satisfaction UNDERSTANDING THE MANPOWER
PLANNING PROCESS
- this is achieved by ensuring that
the existing workforce is engaged • Assess Current Workforce
in work that is meaningful and
challenging, which increases - the HR department must have a
employee morale and motivation. comprehensive understanding of
- the current workforce. this involves
• Maintaining an analyzing the background, skillset,
adequate qualifications, and location of all
workforce employees to have a clear picture
of the available talent pool within
- this means ensuring that the the company.
organization has enough
employees to meet its goals and • Forecast Future
objectives, and that employees
have the necessary skills and - given the constant changes in
qualifications to perform their job business requirements, companies
duties effectively. must anticipate future trends and
identify the type of employees that
• Meeting future workforce needs would be most suitable for their
organization.
- this is usually done to
accommodate company growth, • Gap Analysis
future industry developments, and
constantly changing business - this step involves assessing the
requirements. future manpower current status of your organization
planning is also essential when a and determining where you want to
company wishes to prepare itself to be in the future, and then
handle new and upcoming future comparing them to what will be
projects. required to reach your future
objectives. you will also need to
• Minimizing recruitment costs evaluate your current hr
procedures and determine which
- manpower planning helps ones are effective and what can be
organizations to minimize added to assist in reaching your
recruitment costs. by forecasting goals.
workforce requirements and
analyzing the current manpower • Develop and Implement strategies
inventory, organizations can
determine the most cost-effective - having analyzed the current and
methods of recruiting and retaining future workforce requirements,
employees. strategies such as hiring new
employees, providing incentives for
existing staff retention, or
outsourcing specific tasks should
be formulated and executed.
 ensure that adequate resources are Project Monitoring Activities can
available to implement these include things like:
strategies.
• Tracking project milestones and
• Monitor and Evaluate deliverables
• Checking the project performance
is on track to meet goals,
- continual monitoring and
objectives, and KPIS, and
assessment are required for the developing performance metric
effective execution of manpower reports.
planning. to determine the success • Checking the project schedule and
of strategies that are implemented, timeline is on track.
it is important to track relevant • Assessing the project budget and
performance indicators, like costs compared with the forecasts.
employee turnover rates. • Carrying out an overall quality
consistent evaluation control assessment, and
and improvement of the process will conducting quality reviews (and
lead to improved outcomes in the creating reports)
future. • Watching out for any general
issues that arise, and building an
EXAMPLES OF MANPOWER PLANNING issue log
IN THE F&B INDUSTRY • Conducting risk assessments and
1. Staffing producing risk management plans
2. Determining the right mix of skills and • Setting up progress meetings and
qualifications conducting status reports and
3. Forecasting future workforce reviews
requirements. PROJECT CONTROLLING
PROJECT MONITORING AND CONTROL
- Project controlling is the second
stage of this project management
- helps you measure project
phase. it’s the process of taking
performance. use the process to
any action needed for issues or
look at the project plan, review
changes that have been identified
project status, identify potential
during the monitoring stage.
problems, and implement changes
- This is about putting controls in
when necessary. this phase
place to ensure that things don’t go
coincides with the execution phase
further off track, but also actioning
of the project lifecycle.
anything that needs fixing. this is
PROJECT MONITORING compared to project monitoring
which is focused on observation
- it’s the process of regularly and evaluation.
observing and tracking the
Project Monitoring Activities can
progress of your project.
include things like:
- this is the first step in the project
monitoring and controlling phase
• Analyzing the data and information
and involves collecting data and
that you’ve collected during the
information about various aspects
project monitoring stage.
of the project.
 • Assessing any changes from your
original plan, and the impact of these
variances on the project’s course to PROJECT MONITORING AND CONTROL
success. TECHNIQUES
• Prioritizing activities according to their
potential impact on your project. • Earned Value Analysis (EVA)
• Making decisions about the best
course of action to get the project
- is a technique that can be used to
back on track.
• Delivering any compare the actual cost and
updated progress of a project against its
documentation, such as revised planned cost and progress.
project schedules.
• Informing and negotiating with key • Milestone Tracking
stakeholders as needed throughout
the project.
- creating and tracking your
IMPORTANCE OF PROJECT MONITORING milestones is a common technique
AND CONTROL that is used to ensure that a
project is progressing successfully.
- Project monitoring and control are it involves identifying your key
essential to completing a project performance indicators and
on time, on budget, and within
monitoring them regularly
scope. monitoring and control
processes identify deviations from throughout the process.
the project plan.
- Project monitoring and control • Risk Management
ensure that performance is
seamless, efficient, and on track. - risk management is the process of
identifying any potential risks that
Alan Zucker
your project may encounter and
• founder of project management creating a detailed plan that will
essentials, llc help to eliminate or mitigate them.
• “Project managers know that no
PROJECT MONITORING AND CONTROL
project proceeds perfectly according to TOOLS
plan. we must be diligent in tracking
performance to see if it meets our • Gantt Charts
expectations for success. if not, we
must determine what is needed to - a tool that gives you a visual
keep the project on track." representation of a number of
different areas of your project. this
HOW TO CREATE A PROJECT can include things such as the
MONITORING AND CONTROL PLAN schedule, the tasks, and any
1. Outline the project. deviations from your original plan.
2. Break down the project into subtasks
or units of work.
3. Execute the project plan, and report
and analyze to identify variances.
 • Right Time
• Resource Management Software
- Ensure you order your materials on
- resource management, allocation, time, so they arrive right before
and capacity planning play an you need them on the construction
important role in making sure your site.
project always has hands on deck
throughout its life cycle. • Right Place

MATERIAL MANAGEMENT - Avoid double handling and ensure

CONSTRUCTION MATERIAL MANAGEMENT the right materials are delivered to
the right construction site.
- is the process of procuring, Furthermore, if the job site is
allocating, and disposing of large, have a dedicated delivery
construction material. point where the workers will collect
- is to source materials on time and the materials.
at a reasonable cost to be utilized
in every construction project. • Right Price
- this process is vital for every
construction project since it - Get multiple quotes and compare
ensures meeting project goals prices when purchasing building
material. Ensure you get
EFFECTIVE CONSTRUCTION MATERIAL competitive and affordable prices
MANAGEMENT to maximize profitability for your
1. Planning and Acquisition of Materials construction company.
2. Scheduling and Transportation PROCESS OF CONSTRUCTION MATERIAL
3. Quality Control MANAGEMENT
4. Storage and inventory management
5. Waste Management 1. Material Planning
2. Purchasing
5 RIGHTS 3. Store Keeping
• Right Materials 4. Inventory Control
5. Receiving, Inspection, and Dispatching
- Find materials that fit the project 6. Value Analysis, Standardization and
requirements in terms of quality, Variety Reduction
type, and purpose. 7. Materials Handling and Traffic Variety
8. Disposal of scrap and surplus, Material
• Right Quantities Preservation

CONSTRUCTION EQUIPMENT
- Ensure you order materials in
MANAGEMENT
sufficient amounts to meet the
project demands. - is the process of directing and
controlling construction equipment.
- Construction equipment managers
are in charge of the equipment
used by a construction company.
 - They responsible for purchasing, longevity of their equipment and
maintaining, and repairing the maintain productivity.
equipment, as well as storing, 6. Be prepared for breakdowns -
cleaning, and transporting them. Construction equipment managers
need to have a plan in place to
BEST PRACTICES FOR CONSTRUCTION
prevent major project delays and
EQUIPMENT MANAGEMENT
headaches for everyone involved.
1. Inventory and track your 7. Stay up-to-date on project details
equipment - Knowing what - Knowing project details like timelines
equipment is owned versus rented is and budgets helps manage equipment
essential to effective construction requests and ensures the right
equipment management. This should equipment gets assigned to the right
include parts and tools. job.
2. Understand the value of your 8. Go paperless - Switching to a
equipment - Knowing the value of paperless system where all
your equipment is essential when it information can be stored securely
comes to insurance claims, and accessed anytime, anywhere by
purchasing, renting, or liquidating all stakeholders.
equipment. 9. Use the right software - Using the
Keep a detailed record of each piece of right management software to
equipment’ s history such as; manage trucks and vehicles makes the
Purchase date and price, Mileage at role of a construction equipment
purchase, Hours worked, Working manager much easier. Ideally,
conditions, Maintenance and repair construction equipment managers will
details have software that helps with;
3. Provide operators with the proper Equipment tracking, Inventory control,
training - Well-trained operators Project management, Maintenance
contribute positively to the lifespan of scheduling, Warranty tracking, Work
equipment and to your company’s order management.
efficiency. If they are diligent with
SOFTWARE APPLICATIONS
their daily checks and operate the
machinery properly, this minimizes • Enterprise Resource Planning
the risk of damaged equipment. (ERP) Systems
4. Inspect equipment after use -
Harsh conditions on the job site or - ERP systems integrate various
aggressive usage by the operator may business processes, including
cause damage that you ’ll want to get procurement, inventory
ahead of before it becomes a problem management, and project
and compromises the company’s planning. They provide a
overall profitability. centralized platform for real-time
5. Schedule data sharing and decision-making.
preventative
maintenance - Preventative
equipment maintenance is one of the
most important things a construction
company can do to increase
the
• Building Information • RFID Technology
Modeling (BIM)
Software - RFID uses radio-frequency
identification to track and manage
- BIM allows the creation of a digital materials. RFID tags on equipment
representation of a construction or materials enable automated
project’ s physical and functional identification and data capture.
characteristic. It aids in design
coordination, clash detection, and STRATEGIES FOR SOFTWARE-DRIVEN
material quantity estimation. MATERIAL MANAGEMENT

• Advanced Construction Materials

• Construction Project Management
Software
- Advanced construction materials
refer to innovative substances
- These tools facilitate project
designed to enhance the
planning, scheduling, and
performance, durability, and
collaboration. They help track
sustainability of structures.
material deliveries, manage
budgets, and meet project
• Construction Equipment Lifecycle
timelines. One example of
Management
Construction Project Management
Software is Procore.
- Construction equipment lifecycle
management involves overseeing
• Supply Chain Management (SCM)
the entire lifespan of construction
Software
machinery, from acquisition and
deployment to maintenance,
- SCM software optimizes the
monitoring, and eventual
procurement and distribution of
replacement or disposal.
materials, ensuring a smooth flow
throughout the supply chain.
• Digital Documentation
of Construction
• Inventory Management Software
Materials
- Inventory management tools help
track and control materials within
- Digital documentation in the
warehouses or construction sites,
context of construction materials
minimizing stockouts and reducing
involves creating and maintaining
excess inventory.
electronic catalogs and databases
containing comprehensive
• Material Requirement
information about each material.
Planning (MRP)
Software
- MRP software plans and manages
the production and procurement of • Predictive Analytics for
materials based on demand Materials Forecasting
forecasts, optimizing inventory
levels.
 - Predictive analytics involves using - Break down the project into
historical data, statistical smaller tasks and identify their
algorithms, and machine learning dependencies.
techniques to identify the likelihood
of future outcomes. • Allocating Resources
MATERIAL SCHEDULE
- Assign resources to each task
- A comprehensive document that based on their skill set, availability,
outlines the project’ s scope, and expertise.
deliverables, resource
requirements, and deadlines. • Setting Realistic Deadline
- ·Material Schedule shows the direct
relationship between the project - ·Establish realistic deadlines for
scope and design to the material each task, considering potential
cost, type, sizes and quantities. delays, dependencies, and resource
availability
HOW TO PREPARE FOR MATERIAL
SCHEDULING • Monitoring and Adjusting
the Schedule
Some things you can do to prepare for
material scheduling in construction
- ·Make adjustments as necessary to
include:
accommodate unforeseen
• Research various software options to circumstances or changes in
find the best fit for your project. project requirements.
• Make a list of all required materials
WAYS TO CREATE MATERIAL SCHEDULE
needed for the project.
• Determine the number of each needed • Material Scheduling Software
material.
• Find the best supplier for each - When using a material scheduling
material. Get quotes from each software, you need to consider the
supplier. features you need, the price, and
• Compare prices for potential suppliers; whether or not it’s compatible with
choose the most cost-effective option. your project management
software.
HOW TO CREATE AN EFFECTIVE
MATERIAL SCHEDULE
• Excel Templates
• Gathering Project Information
- If you use Excel templates, you’ll
- Start by gathering all relevant need to ensure that the template is
information about the project. accurate and up to date. You’ll also
need to know how to use formulas
and cell references.

• Identifying and Prioritizing Tasks Disadvantages of Using Excel

 1. Human Error - with so many cells
and formulas, it’s easy to make - By having a material schedule, you
mistakes when inputting data. will know the exact cost of all
2. Inaccurate Data - This is often due materials needed for the project.
to human error but can also be due This can help you stay within your
to outdated information. budget and avoid any cost
3. Lack of Features - Excel templates overruns.
often lack features that are found
in material scheduling software. • Ensure Quality Control
4. Lost Data - If documents are lost
or deleted, the data in the Excel - Having a material schedule allows
template can be lost. you to easily track all materials
used during the construction
• Starting from Scratch process. This can help you identify
any defective materials and ensure
that only high-quality materials are
- To create your own material used in the construction project.
schedule, you’ll need to consider a
few different things. such as CHALLENGES IN MATERIAL SCHEDULING
deciding what information you
want to include, how you want to • Lack of Clarity in Project Scoping
organize the material schedule and
- Inadequate understanding of the
how to keep track of the material
project’ s scope can lead to
schedule. misalignment between the material
schedule and project objectives.
BENEFITS OF MATERIAL SCHEDULING
• Inaccurate Resource Estimation
• Avoid Material Shortage
- Incorrectly estimating resource
- If you have a material schedule, requirements can result in
you will know exactly how much of overstaffing or underutilization,
each material is needed and when leading to inefficiencies.
it will be needed. This can help
avoid construction delays due to • Unforeseen Delays
and
material shortages.
Dependencies

• Better Project Management - Projects often encounter

unexpected delays or dependencies
- ·By having a material schedule, the that disrupt the material schedule.
project manager can easily Flexibility and contingency planning
communicate to the construction can help address these challenges
and minimize their impact.
workers what materials are needed
and when they will be needed. This
can help avoid construction delays
due to miscommunication.

• Accurate Cost Estimate • Budget Constraints

 measure deliverables and action
- Limited budgets can restrict needs to be taken throughout the
resource allocation and force project.
compromises in the material
schedule. Regular monitoring and THREE PHASES OF QUALITY
adjustments can help optimize MANAGEMENT
budget utilization and mitigate this
challenge. 1. Quality Planning – quality plan is
created. Every plan should have
PRACTICES FOR MATERIAL
SCHEDULING desired objective or goal and quality
plan is no exception.
- Project Managers should follow
these best practices to ensure the 2. Quality Assurance – is all about
effectiveness of material schedule: evaluating if a project is moving
towards delivering quality services.
• Clearly Defined Project Objectives Ensuring corrective action actions too
• Thorough Resource Analysis falls in the phase of quality assurance.
• Flexibility and Contingency
Planning 3. Quality Control – the operational
• Regular Communication and techniques are used in order to ensure
Updates
quality standards. Any time a problem
IMPORTANCE OF MATERIAL arises relating to quality or if the
SCHEDULING quality plan is not executed in the
desired manner, corrective actions
- Material schedules are essential for should be effective.
effective project management.
They enable project managers to PROJECT TRIANGLE STRATEGY
allocate resources optimally,
anticipate potential bottlenecks, • Cost – the cost element of the
and mitigate risks. A well-crafted triangle goes beyond the simple
material schedule ensures project financial expense in the project’s
teams are aligned, stakeholders budget.
are informed, and project
• Time – includes the project timeline,
objectives are achieved.
hours worked on the project, time
allocated for different phases like
Quality Management (Quality Planning, planning or implementation.
Assurance, and Control) • Scope – refers to the size of the
project. It is identified during the
QUALITY MANAGEMENT project planning phase and includes all
- All about managing quality in project activity a.k.a. the work that
services. When it comes to project has to be done in order for the project
management, ensuring desired to be completed.
quality is the goal.
BENEFITS OF QUALITY MANAGEMENT
- The project delivery should ensure
quality management. • Quality Product – ensuring you and
- In project quality management, the project team check the quality of
standards are set ahead of time to the project means the product will go
 through multiple development WHO MANAGES PROGRAMS IN PROJECT
processes. MANAGEMENT?
• Customer Satisfaction – Tackling
problems real-time and - A program manager’s role is to
communicating with the customer will coordinate all projects within a
ensure they’re up to date and aware program to align with the
of any issues. strategies and long-term objectives
• Increased Productivity – with a of an organization.
project quality management system - They oversee programs and assess
everyone knows the deadlines and deliverables to ensure that every
what is needed in advance. project goal is reached.
• Financial Gains – project can run
BENEFITS OF QUALITY PROGRAM
over budget if good quality
management is absent. • Clarity – A program aligns multiple
projects together towards one shared
QUALITY PROGRAM
goal.
- Overall quality control, quality • Efficiency – Program managers can
assurance, and associated activities use project management software to
performed by, or on behalf of, the oversee progress for all projects at a
design-builder to ensure that all glance and prioritize resource
work complies with the contract. accordingly.
• Risk Management – a set of best
PROGRAM practices can be established to identify
- Exist to create value by improving similar risks and avoid repeating
the management of projects and to mistakes.
create benefits through better QUALITY PLAN
organization f projects.
- It is a group of related projects - A document, or several documents
managed as whole unit. that together specify quality
standards, practices, resources,
CHARACTERISTICS OF PROGRAMS IN specifications, and the sequence of
PROJECT MANAGEMENT activities relevant to a particular
product, service, project, or
• Large – programs deal with big,
contact.
overall company goals rather than
smaller targets and deliverables. WHY QUALITY PLAN?
• General – a project management
program is general in its approach the 1. It helps you plan out your schedule so
specific details are outlined in the that everyone knows what they need
projects, tasks, and subtasks. to do, when, and how to do it.
• Strategic – programs focus on long- 2. Quality planning ensures that your
term objectives and the multilayered product or service will meet customer
plans to achieve them. expectation.
QUALITY PLAN OVERVIEW WHY ARE AUDITS IMPORTANT?
1. Goals/Objectives – this includes the 1. Determining the conformity or
specifications, characteristics, cycle nonconformity of the quality system
time, costs, resources, reduction of elements with specified requirements.
imperfections and bugs, and degree of 2. Providing evidence for the reduction
uniformity, effectiveness, and elimination of any problem areas.
dependability, etc. 3. Recognizing improvement
2. Process steps/procedures – steps in opportunities
the process that constitute the
operating practice or procedures of AUDITOR
the organization.
3. Distribution of responsibilities – - A person who understands the
allocation of responsibilities, authority, business and industry standards
and resource during the different and conducts audit as per the
standards.
phases of the process or project.
- Quality auditors can be internal
4. Standards – Specific documented auditor, an employee of the
standards, practices, procedures, and company being audited, and
instructions to be applied. external auditor, a third party hired
5. Change/Modifications from an approved agency,
documentation procedure – A customer or client to evaluate the
quality system or products.
documented procedure for changes
and modifications to a quality plan as
TYPES OF QUALITY AUDIT
a process is improved.
6. Quality process measurement – a • Process Audit – specifies whether a
way to measure the value of the company’s processes are working
quality document itself. within defined limits. It measures
conformance to any predefined
AUDIT requirements or industry standards
along with the effectiveness and
- Audit is the examination or adequacy of the process controls as
inspection of various books of established by procedures, work
accounts by an auditor followed by instructions, training, and process
physical checking of inventory to specifications.
• Product Audit – inspects whether a
make sure that all departments are
particular product or service complies
following documented system of with customer requirements,
recording transactions. specifications, and performance
standards.
QUALITY AUDIT • System Audit – confirms that all
elements of a management system
- Typically conducted by an internal are effective and appropriate, and
or external quality auditor or audit have been developed, implemented,
team at agreed time intervals, and documented as per the specified
ensuring that an organization has requirements. A quality management
clearly defined system for quality system audit measures an
monitoring. It is essential element organization's existing quality
management system to assure in
of ISO 9001 quality system
conformance with contract,
standard.
 commitments, company policies, and PROCESS OF FMEA
regulatory requirements.
1. Select the types or process
QUALITY REVIEW 2. Form a cross-functional team
3. Define the scope and boundaries
- Also known as quality assessment 4. Identify failure modes
- Comprehensive evaluation process 5. Determine failure effects
that assesses various aspects of a 6. Assign severity ratings
project, design, or construction 7. Identify causes of failure
process 8. Assign occurrence ratings
- Ensures they meet specified 9. Determine detection methods
standards, regulations, and client 10. Assign detection ratings
requirements. 11. Calculate risk priority number
12. Prioritize and rank failure modes
BENEFITS OF QUALITY REVIEW 13. Develop and implement
mitigation strategies
• Improves reliability, functionality, and 14. Review and document results
sustainability of infrastructure. 15. Monitor and update
• Reduces maintenance and repair
costs. FMEA SPREADSHEET
• Enhances satisfaction and trust of
clients, public, and regulatory • FMEA uses a spreadsheet to identify
authorities. and note down potential failures within
a process using qualitative and
KEY ASPECTS OF A QUALITY REVIEW IN CIVIL systematic methods.
ENGINEERING • Includes information such as
responsibility, failure effects, causes,
• Design review and actions taken.
o Code and standard compliance
o Risk assessment PROCUREMENT
• Construction and quality review
o Material and workmanship - Procurement in construction
inspection involves the process of acquiring
o Safety compliance goods and services needed for a
• Project management review construction project. It usually
o Schedule and budget adherence begins with the identification of
need, followed by the selection of
o Change management
contractors or suppliers (also
• Quality control and assurance
known as vendors), negotiation of
o Testing and inspection
prices, and finally, the awarding of
contracts.
FAILURE MODE EFFECT ANALYSIS
(FMEA) TYPES OF PROCUREMENT
• Methodology that • Single-Source Procurement - when
enables a construction company procures all of
organizations to anticipate the various their materials and services from one
point of failure during design stage. supplier. This option is often used
• Steps include determining failure when the company has a good
modes, assessing severity, assigning relationship with the supplier and
probability number, assigning trusts them to provide quality
detection number, and calculating risk materials and services.
priority number.
 limit the number of suppliers who
have access to the information.
Benefits of single-source procurement
DIFFERENCES BETWEEN PUBLIC AND
o Lower pricing, as all requirements PRIVATE PROCUREMENT
are consolidated with one supplier
o Consistent quality (or at least • Project objectives and scope
quality that meets expectations)
o Faster purchasing times due to - Public sector projects tend to have
communication with a single more complex and diverse
supplier objectives, such as social,
o Easier measurement of supplier environmental, and economic
performance. benefits, as well as meeting the
needs of various stakeholders,
• Multiple-Source Procurement - As such as the government, the
the name suggests, multiple-source public, and the end-users.
procurement is a system in which - Private sector projects, on the
construction companies procure other hand, are usually more
materials, goods and services from focused on maximizing the return
multiple suppliers. This option is often on investment, meeting the market
used when the company wants to demand, and satisfying the client's
compare prices and quality before requirements.
making a final procurement decision.
Distribution of risk is perhaps the • Procurement regulations and
biggest benefit of multiple-source standards
procurement. By having a network of
multiple contractors/suppliers, you can - Public sector projects are subject
spread risk and have a safety net to strict legal and ethical rules that
should one of your supply chain aim to ensure transparency,
players run into difficulties. accountability, fairness, and value
• Two-Stage Procurement - A two- for money in the use of public
stage tender is when a construction funds.
company first provides a list of - Private sector projects, however,
requirements to potential contractors have more freedom and discretion
or suppliers, who then submit their in choosing their procurement
prices for the project. After reviewing methods, partners, and contracts,
the prices, the construction company as long as they comply with the
invites the most promising general laws and regulations of the
contractors/suppliers to submit a more industry.
detailed proposal. This option is often
used when the scope of work is • Procurement models and methods
complex, and the construction
company wants a better idea of - Public sector projects may prefer
pricing before making a decision. models and methods that allow
• Selective Tendering - Selective more involvement and control by
tendering, also known as restrictive the client, such as traditional or
tendering, is when a construction construction management.
company invites only pre-qualified - Private sector projects may opt for
suppliers to submit bids for the models and methods that delegate
project. This option is often used when more authority and risk to the
the scope of work is complex or contractor, such as design and
sensitive and the company wants to build or partnering.
 • Procurement performance and 3 MAJOR DECISION IN BIDDING
outcomes
1. The project delivery method
- Both public and private sector 2. The procurement method
projects can benefit from adopting 3. The contract model.
a performance-based and
outcome-oriented approach to
PROJECT DELIVERY METHOD
construction procurement, as well
as fostering a culture of trust,
- refers to the approach or strategy
communication, and collaboration
employed to execute a construction
among the project participants.
or development project.
- It shares the common goal of
• Procurement trends and
helping the owners built new
innovations.
structures on time and on budget.
These methods also ensure quality
- Both public and private sector
and performance requirements.
projects can leverage these trends
and innovations to improve their
Four Types
procurement performance and
competitiveness, as well as to
1. Design Tender
address the current and future
challenges and opportunities in the
• Also known as a design-build-bid.
construction industry.
Commonly used in a government
projects.
IMPORTANCE OF PROCUREMENT
• it is often used in traditional
construction projects in which the
- Procurement is one of the most
client has a predetermined design
important factors in the success of
and then invites competitive bids to
construction projects. It’s pivotal
execute the project based on the
throughout the entire project
design.
during both design and
• These bids evaluate the factors
construction phases—and it relies
such as cost- effectiveness,
heavily on the experience, market
contractor qualifications, and
knowledge, and resources of the
the proposed construction
project managers.
approach.
BIDDING 2. CMAR Method
- Process of submitting a tender by • Also known as construction
the contractor to the client as a management at risk.
proposal to conduct or manage a • it involves a collaborative approach
particular construction project. between the client, design
professionals, and the construction
BIDDING IN QUALITY MANAGEMENT manager.
• This method is mainly employed for
- Refers to the process of soliciting complex projects. The construction
and selecting suppliers or manager is involved in even before
contractors for goods or services the design phase. They are chosen
based on quality criteria. by the basis of his or her
experience and qualifications and
not on the basis of the lowest
price
 criterion.

3. Design Build CONTRACT MODEL

• The owner provides the contract to • A contract model refers to the
a single entity that can handle both specific legal framework and terms
the design and construction. established to govern the
• This entity is called a design-build relationships, rights, and obligations
firm or design-build contractor that of the parties involved in a project.
is consist of consist of architects, • A common examples include lump-
engineers, and contractors sum contracts, where a fixed price
• This method promotes is agreed upon for the entire
collaboration, streamlines project; cost- plus contracts, where
communication, and often results in the client pays the contractor's
faster project delivery. costs plus an additional fee; and
unit-price contracts, where specific
4. Integrated Project Delivery work items are priced individually
• It is another collaborative project RELATIONSHIP OF BIDDING IN
delivery method that involves the QUALITY MANAGEMENT
owner, architect, contractor, and
sometimes other consultants, to - The relationship between bidding
work as a team. and quality management is
• Often involves a multi-party fundamental in ensuring the delivery
agreement that promotes shared of high-quality products or services.
risk and reward. - Evaluating bids ensures that the
chosen supplier aligns with the
organization's quality goals and
PROCUREMENT METHOD
standards.
• It is a method through which the - The bidding process is an integral
construction services are obtained. part of quality management,
influencing every aspect from
• It encompasses the entire process
initial specifications to the final
of identifying, selecting, and
delivery of a high-quality
contracting with suppliers,
outcome.
contractors, and other
stakeholders to fulfill the project
QUOTATION
requirements.
• an effective procurement method
- A quotation is a document that a
considers factors such as project
seller provides to a buyer to offer
complexity, the availability of
goods or services at a stated price,
qualified contractors, and the
under specified conditions.
desired level of competition.
• construction procurement is
QUOTATION vs. ESTIMATE
generally classified into: best value
method (bvs), negotiated method,
Quotation: a quote is an offer to do a job
sole source or direct select, and low
for an exact price.
bid
Estimate: an estimate is roughly how
much the contractor thinks the job will
cost, based on skill and past
experience.
WHEN TO SEND A QUOTATION IN including your business name,
BUSINESS
address, email address, phone
- Quotations are normally sent at the number, and (if applicable) vat
request of a customer who wants to registration number or business
know more about certain goods or registration number.
services before they make a • Your customer's details: their
purchase. name, phone number, email
address, etc.: You might also choose
THINGS TO CONSIDER WHEN
to include your payment terms and a
WRITING QUOTAION
rough time schedule – i.e. How long
When deciding how to write a the project will take to be completed
quotation, there are a few different or how long it will be until goods are
factors to consider: delivered.

1. Think about how to best communicate HOW TO FORMAT YOUR SALES

with your customers. As mentioned, QUOTAION?
it’s important that your quotation
reaches your client promptly, so many 1. Your quotation template should have
businesses choose to create the word ‘quote’ or ‘quotation’ clearly
quotations with invoicing software as visible at the top of the document so
this lets you write quotes quickly and that your customers can easily
send them directly via email. distinguish the quote from other
2. Think about which method looks the documents.
most professional. While you're not 2. Your quotations should be easy to
required to use a specific quotation read, with a clear font and layout. If
format, layout, or template, sending you’d like to customize or personalize
an unprofessional, amateur-looking your quotation format, you could add
quote can give the wrong impression a company logo or choose colors that
about your business and the quality of reflect your business’s brand.
your work. 3. Even if you send your quotations via
email, be aware of how your quotes
THINGS TO INCLUDE IN A will look when they’re printed, as
QUOTATION TEMPLATE some customers prefer to keep
physical records. You should try to fit
Using a quotation template that includes the the quotation format within an a4
following information gives potential sheet of paper, and attach separate
customers get a better idea of what they’re files if necessary.
committing to:
PARETO ANALYSIS
• The price: your quotation template
- Pareto analysis is a decision-making
should include the total amount due
tool used to compare and fix
for the client's order, as well as the problems strategically. It uses the
price of individual products or pareto principle, which is also
services. known as the 80/20 rule – named
• An expiration date: each quotation after italian economist vilfredo
you send should indicate how long the pareto. He found that many
phenomena or trends follow the
quotation will remain valid.
80/20 rule.
• Company details: a quotation
template should include the full
contact details of your business,
ORIGIN OF PARETO ANALYSIS • Ranked bards arranged in
descending order - The height of
- Pareto analysis traces its roots to the bar represents the frequency of
the pareto principle, first observed occurrence of a particular category.
by the italian sociologist and These bars must be arranged in
economist vilfredo pareto. While descending order.
studying income distribution across • Cumulative percentage curve -
italy in 1986, vilfredo showed that Shows the cumulative percentage (on
80% of income in the country was the y-axis) while traversing the
owned by 20% of the population. categories from left to right. A
This principle is also known as the secondary y-axis with a 0 to 100%
80/20 rule (most common), the law scale is used to plot the cumulative
of the vital few or the principle of line graph.
factor sparsity, which all
interchangeably mean the same. CONSTRUCTING PARETO CHART
- Vilfredo Pareto: Italian sociologist
and economist 1. Identify a list of problems
- Joseph Juran: American engineer 2. Group the problems together
and well-known quality management 3. Score each problem
advocate 4. Identify the cause of each problem

WHY USE PARETO ANALYSIS? TREND ANALYSIS

Organizations have diverse goals and - Trend analysis is a technique used

aspirations but in most cases, are in technical analysis that attempts
constrained by resources (money, to predict future stock price
manpower, machines, technology etc.). movements based on recently
Under such limitations, pareto analysis can observed trend data. Trend analysis
help create maximum impact with the least uses historical data, such as price
amount of effort. This enables teams to work movements and trade volume, to
more efficiently on specific initiatives. forecast the long-term direction of
Targets can be achieved faster simply by market sentiment.
prioritizing initiatives in the right order. - Trend analysis is a technique used
in technical analysis that attempts
• Setting clear priorities for the to predict future stock price
organization movements based on recently
• Increased daily productivity observed trend data. Trend analysis
• Ability to portion work into uses historical data, such as price
movements and trade volume, to
manageable segments
forecast the long-term direction of
COMPONENTS OF PARETO CHART market sentiment.

• X- axis - The category of data is TYPES OF TREND ANALYSIS

plotted along the x-axis. In the below
example, the categories are the There are three main types of market trend
causes of delay in an assembly line for analysts to consider:
manufacturing setup.
• Y- axis - Occurrences of each of the • Upward trend
categories are plotted along y-axis. • Downward trend
This represents the number of • Sideways trend
recorded cases where a particular
cause led to the delay
TREND TRADING STRATEGIES

Trend traders attempt to isolate and

extract profit from trends. There are many
different trend trading strategies using a
variety of technical indicators:

1. Moving averages- The strategy involves

taking long positions in the market when a
short-term moving average surpasses a
long-term moving average and taking short
positions when a short-term moving average
falls below a long-term moving average.

2. Momentum indicators - The described

strategy involves taking long positions in
securities exhibiting strong momentum
trends and exiting these positions when the
momentum weakens. The relative strength
index (rsi) is commonly utilized to implement
and gauge the effectiveness of these
strategies.

3. Trendlines & chart patterns - The

strategy described involves taking long
positions in a security as it follows an upward
trend, accompanied by placing a stop-loss
order below crucial trendline support levels.
This approach aims to exit the position and
secure a profit if the stock shows signs of
reversing from its upward trend.