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CE 366 Exam 1 review

by: Thomas Kelly

CE 366 Exam 1 review CE 366

Thomas Kelly

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Exam 1 review
Construction Engineering
Dr. Moynihan
Class Notes
Construction, Management
25 ?




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This 11 page Class Notes was uploaded by Thomas Kelly on Tuesday September 13, 2016. The Class Notes belongs to CE 366 at University of Alabama - Tuscaloosa taught by Dr. Moynihan in Spring 2015. Since its upload, it has received 2 views.


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Date Created: 09/13/16
CE 366 Exam 1 Review Project Management – is the planning, organizing, directing and controlling of company resources for a relatively short-term objective that has been established to complete specific goals  Understand the fundamentals of construction project management including design and construction process, construction contracts, and project delivery methods, labor and materials, and safety.  Understand the basics of scheduling and be able to design an optimal schedule for project construction  Know the basics of conceptual estimating and detailed estimating  Understand project control techniques and earned value analysis Construction Project Management  Projects are a one-time, unique effort of limited time duration involving work of a non-standardized and variable nature.  Project condition include o Technical complexity, bid amount, schedule promises o Field conditions that are unpredictable o Cost and time requirements constantly changing  Planning and re-planning (as part of managerial control) assume a monumental role  A system of project management is needed o Different than general management of a single company o More coordinating the work of different companies Functions of management: Planning, Organizing, Directing and Controlling The Project Plan includes o Activities and which organization is responsible o A detailed time schedule for the activities o Resources needed to complete each activity on time o A budget based on resource utilization and costs Field Progress Is monitored and compared to plan such as: o Percent completion of an activity and overall project o Time and resources consumed by an activity and overall project  Management – by – exception ensues: o Deviations from plan are detected o “Work-around” are conceived and implemented o The plan is altered and time/cost forecasts are updated  Resource Management and Financial Controls support field management Project Delivery Systems  Design-Bid-Construct (design-bid-build)  Construction Manager (CM) o 2 contract types  For Fee  At Risk o Timing of involvement  Preconstruction services  Construction services o Design–Construct (Design-Build)  45-50% of all projects  Time advantages because fast-tracking  Accountability and coordination improve  # And type of change orders are reduced o Integrated Project Delivery (IPD)  To manage the new complexities a new contract basis has been developed  IPD = a single contract signed by all stakeholders – owner, designer, contractor, subcontractors and suppliers  Risk is shared  Profit (or loss) is shared  Shared risk and reward across all stakeholders Construction Contract Types  Most Common o Fixed sum (lump sum or unit price) o Cost plus a fee o Cost plus a fee with guaranteed maximum price (GMP)  Less Common o Work-by-force account o Turn-key o Build-operate-transfer (BOT) o Joint venture (national or international firm partners with local firm) Time and Cost Management  The project end-item is described, and its quality and performance levels specified, in the form of specifications  Time and cost schedules are established  A system of recording field data and summarizing it in an information system in implemented for informal decision–making  Both time and cost management eventually impact actual costs, hence profits  Time and cost control are achieved by a combination of o Procedures of time/cost tracking at a reasonable level o The hierarchy of managerial control down to individual delivery, activity, worker, and so on Final Cost Estimate (Contractor’s Estimate)  Prepared when finalized working drawing and specifications are ready  Detailed compilation of al costs, usually associated with a bid  Winning contractors estimate becomes basis for construction control system  Accuracy of estimate depends on many factors o Quality of cost data available to estimators o Similarity of construction activities to contractors experience o Uncertainties/imponderables of this project o Expertise of estimators Planning and Scheduling  Is a prerequisite for project time control, establishing: o What is to be done o How is it to be done o Order, or precedence sequence, for activities  Plans are documented in various ways, such as: o Gantt Charts (bar charts for schedule activities) o Precedence Charts o Arrow charts  Studies of the plan (conceptual schedule) are made to determine: o How to meet project completion date o Resource requirements for individual activities; overall project o Adjustments to resolve unbalanced or conflicting demands o Ultimately, a calendar-date schedule of each activity The Last Planner Process  The Last Planner Process, was developed by Lean Construction Institute to facilitate supervisory planning  It focuses on 4 characteristics of the plan that support reliable planning for work assignments: o Definition o Soundness o Sequence o Size Work Breakdown Structure (WBS)  A hierarchical organization of the work elements contained in a project  Collectively describe the overall product and may involve hardware, software, services and documentation  Links the end objective and its constituent operations The Critical Path Methods (CPM)  Uses a network model of the project activities o A graphical job plan o Precedence relationships and other constraints o Time to complete each activity (using assumed labor)  Uses a network-based algorithm to determine: o The project critical path (longest path from start to finish) o The critical activities (those on the critical path -> zero slack) o Total time to complete the project, and reach critical milestones o Proposed start and finish dates for each activity, and extent of flexibility in preliminary schedule, leading to finalized schedules often communicated (and monitored) as Gantt charts o Many other uses (items 5-11 on p.24) once project begins  CPM Chart  Time Contingency Allowance o The project durations estimate provided by CPM is a forecast based on many assumptions  Each activity could experience “abnormal conditions”  Resources may be delayed or less productive than assumed  Weather may affect entire project, or portions off the project, depending on the timing, the type of work in- progress, and nature of the “weather day(s)”  Materials may be late, or on-time but damaged, or discovered wrong (upon inspection) o Time contingencies can be applied to specific activities, but typically a general allowance is made at milestones or for overall project completion time  CPM “Activity-on-Node” Notation and Assumption o Each activity “j” has a duration “Dj” and enough resources are available to conduct any activities simultaneously within the precedence constraints o Activities are represented by rectangles called “nodes” or “nodules” -> ES Activity  EF Number Activity  Description o Arrows between LS Duration LF activities are assumed to mean “finish-to- start” logic  An activity can not start until all the immediately preceding activates have finished  Once all preceding activities have been finished, the succeeding activity can immediately start o Other logic of lag and lead times to be discussed later Production Planning  Detailed planning of actual operations – how the activities on the networks or Gantt charts are to be accomplished  Production planning firmly establishes o The construction methods to be used o The assignment of personnel o The movement of material to the workforce o The assembly process  Production planning includes o Site layout o Arrangement of utilities o Preparation of storage and prefabrication areas o Establishing vehicle pathways and material flow patterns Production Time Reduction (Acceleration)  Also known as o Least cost expediting o Project compression o Activity time–cost trade-off or “crashing”  Does not require expediting al project activities (shotgun approach)  To reduce the project completion time, the project critical path must be shortened  To reduce the time to achieve a milestone or interface event, the event critical path must be shortened  As critical activities are accelerated to shorten critical path(s) o The floats along all paths to the accelerated activity change o The critical path eventually changes (hence activities may change from non-critical to critical, vice versa) o Second critical path may emerge, or disappear Shortening the Longest Time Path  2 ways to accomplish shortening o 1) Modify the job logic, such that the longest path is reduced  Rearrange order of activities  Eliminate activities (by Negotiation)  Parallelization of activities o 2) Reduce the time duration (crash) one or more critical path activities  Increased manpower or overtime work  Additional equipment  Can be accomplished via:  Transferring resources from slack activities to the critical path  Apply increased cost  Remember after each logic or activity duration adjustment, the critical path and float times must be recomputed Project Resource Management  Projects resources include: o Manpower o Equipment o Materials o Subcontractors  The cost estimate was based on these resources, and the schedule plan assumed they would be availbe on-site, in the quantity/quality needed, at time needed  The project manager has to assure these resources are made available and are applied to the work o Long range resource requirements for general planning o Short term resource requirements for detailed planning  Resource leveling and resource sharing across projects are used in attempts to optimize efficiency  Principles of resource management: o The scheduling and allocation of workers, equipment, and materials are interrelated – shortages or lateness of one affects efficient use of the other o The more float in non critical activities, the more efficient resource allocations within the project can be due to the ability to shift resource allocation within project many be due to the ability to shift resource application times (within limits), hence level overall demand o Sharing resources across subprojects or geographically close projects within a company leads to more efficiency, but requires sophisticated coordination/communication o Resources allocated on a project-wide or company-wide basis require a system of priority/adjudication among sources of demand Manpower Leveling  The process of smoothing out daily labor demands o Applied to some (not all) crafts on a project o Other crafts have to be provided when needed, then removed to other company projects (or subcontracted)  Fig. 8.2 shows daily demand for 2 groups: o Carpenters a o Laborers  Peak labor demand days are investigated first o Which activity’s cause the demand o Are they critical activities? o If not critical, seek ways to use float time to reschedule the activity (and perhaps succeeding activities due to chain effect)  Heuristic for Manpower Leveling o A heuristic (an approximate solution, based on simplified rules) method is often used in construction, to revise the early-statrrt schedule  The critical activities are scheduled first  The non-critical activities are scheduled in order of their computed late-start dates  If more than on activity has same late-start date, preference is given to the one with the least total float Line-Of-Balance Scheduling  Compares time vs. location o Horizontal axis = time o Vertical axis = location o Slope represents production rate o Slope need not to be continuous  A key advantage is clear indication of when a slower activity is overtaken by its successor Time Management System  Upon implementing the project plan, progress meeting the schedule must be monitored  Conditions will arise that disrupt the original plan and schedule  Managers at various levels attempt to manage resources in a way to meet the current “official schedule”  When schedules being to slip, the system of progress feedback should alert responsible managers up through the PM  These regular reports are part of the repetitive “time management cycle” Progress Analysis  At the weekly progress review: o What is the status of currently identififed critical activites?  Finished by scheduled EF = LF, no problem  Started late, but not finished --- anyway to catch up?  Finished late, then the project scheduled completion will be delayed according to the number of days late o What is the status of current non-ciritcal activities?  A) Use a late-start activity sort – any activity that missed its LS date puts the project “behind”  B) Uses a late–finish activity sort – any activity that did not finish by its LF date generated a new critical path for the rest of the project, and the project completion will be delayed according to this number of days  C) Use total float to determine same information as in b Project Cost Controls  Need a complete and detailed cost estimate o Based on a detailed quantity “take off” applied to labor, construction equipment, and materials; may use estimating relationships based on past o Augmented by subcontract amounts and taxes, overhead, and surety bonds  Next, a project control budget (a schedule of costs) is created, and used for cost control during field construction  Production rates and costs incurred are recorded, at least weekly  Summary reports then pinpoint where costs exceed budget, leading to investigations and correction action  Data on production rates and unit costs are stored in corporate databases (data banks), by cost code (work type), for future cost estimating Cost Codes  Cost codes are essential to: o Tie the entire job system together o Enable granularity required to effectively identify cost anomalies on a timely basis o Link costs with schedule o Integrate the job cost system into the company cost system Timing and Detail of Reports  Labor and Equipment Costs o Estimates contain uncertainly o Labor and equipment application, and work progress, vary from plan o Must be monitored/ reported in sufficiently short time intervals using cost accounting information  Other Costs Controls and Report o Disbursements policies/ controls apply to materials and subcontract o Regular accounting practice captures non-labor field overhead o Monthly financial accounting reports are adequate for overall project cost monitoring Earned Value Analysis (EVA)  Tends to be used in large projects, to assist the PM and his staff in assessing overall project cost and schedule status o Also can be used:  (1) On individual activities to isolate those “in trouble” from the rest  (2) To forecast a range on most likely project cost and completion  Compares physical work accomplished to date, with actual cost expenditure and the planned work to be accomplished by this date  Input data for EVA at current time (now) o Cost budget for each activity or work category o Cost incurred for each activity that has started (whether finished, or not)  EVA Analysis Results o Can plot these three variables versus time, each time they are updated, to assess cumulative project status, showing:  Cost Variance CV= BCWP – ACWP  Schedule Variance SV = BCWP –BCWS  Positive values are good; the larger the better o Can calculate unit-less indices (proportion deviation from plan) as follows:  Cost Performance Index -> CPI = BCWP/ACMP  Schedule Performance Index -> SPI = BCWP/BCWS  Index values greater than 1 indicate positive performance to plan; the larger the better


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