SPECIALIZATION 1 – CONSTRUCTION MANAGEMENT

MODULE 1: INTRODUCTION TO ORGANIZATION

AND MANAGEMENT (PART 1)
What is the role of a Project Manager?
What is a Project?
 The project manager is the person assigned by
 A project is a temporary endeavor undertaken to the performing organization to lead the team that
create a unique product, service, or result. The is responsible for achieving the project
temporary nature of projects indicates that a objectives.
project has a definite beginning and end.  Project managers should possess the
following competencies:
Example of projects include, but are not limited to: o Knowledge
 Developing a new product, service, or result o Performance
 Effecting a change in the structure, processes, o Personal
staffing, or style of an organization o Interpersonal Skills
 Developing or acquiring a new or modified  Leadership, Team building,
information system (hardware or software) Motivation, Communication,
 Conducting a research effort whose outcome will Influencing, Decision-making,
be aptly recorded Political and cultural awareness,
 Constructing a building, industrial plant, or Negotiation, Trust building,
infrastructure Conflict management, and
 Implementing, improving, or enhancing existing Coaching
business processes and procedures
Organization
What is Project Management?
 A group of individuals who are cooperating
 Project management is the application of willingly and effectively for a common goal.
knowledge, skills, tools, and techniques to
project activities to meet the project The Structural Organization
requirements. Project management is  Arranged in hierarchy to make something
accomplished through the appropriate working
application and integration of the 47 logically
grouped project management processes, which Organizational Cultures and Styles
are categorized into five Process Groups.
Organizational culture is shaped by the common
 The 5 process groups are:
experiences of members of the organization and most
o Initiating
organizations have developed unique cultures over time
o Planning
by practice and common usage. Common experiences
o Executing
include, but are not limited to:
o Monitoring and Controlling
o Closing  Shared visions,
 Managing a project typically includes, but is mission, values,
not limited to: beliefs, and
o Identifying requirements expectations
o Addressing the various needs,  Regulations,
concerns, and expectations of the policies,
stakeholders in planning and executing methods, and
the project procedures
o Setting up, maintaining, and carrying out  Motivation and reward systems
communications among stakeholders  Risk tolerance
that are active, effective, and  View of leadership, hierarchy, and authority
collaborative in nature relationships
o Managing stakeholders towards meeting  Code of conduct, work ethic, and work hours
 Operating environments
project requirements and creating
project deliverables Organizational Communications
 Balancing the competing project constraints
which include, but are not limited to:  Types of Communications
o Scope o (Letter, E-mail, Verbal, Conference)
o Quality  Formal
o Schedule o Professional Setting
o Budget o No slang
o Resources o Pronounce words correctly
o Risks  Informal
o Friend and family
Operations Management o Contains shortened versions of words
o Contains slang words
 Operations management is a subject area that is
outside the scope of formal project management 3 Parts of Communication
as described in this standard.
SPECIALIZATION 1 – CONSTRUCTION MANAGEMENT

 Downward Communication – where

information moves from higher management to
employees
 Upward Communication – where information
moves from employee to higher management
 Horizontal Communication – where
information is shared between peers

Structural Elements of an Organization

 Men: The different members of the organization

starting from the very top of the last workman in
the enterprise.
 Materials: The materials necessary in the
distribution of functions or in the attainment of its
objectives.
 Machine: The tools necessary in producing its
desired output.
 Methods: The procedures and ways used in the
course of its action.
 Money: The financial resources of the
organization.

Organizational Structures

Projects and project management take place in an

environment that is broader than that of the project itself.
Understanding this broader context helps ensure that Many organizational structures include strategic, middle
work is carried out in alignment with the organization’s management, and operational levels. The project
goals and managed in accordance with the manager may interact with all three levels depending on
organization’s established practices. This section factors such as:
describes how organization influences affect the  Strategic importance of the project
methods used for staffing, managing, and executing the  Capacity of stakeholders to exert influence on
project. the project
An organization’s culture, style, and structure influence  Degree of project management maturity
how its projects are performed. The organization’s level  Project management systems
of project management maturity and its project  Organizational communications
management systems can also influence the project. This interaction determines project characteristics such
When a project involves external entities such as those as:
that are part of a joint venture or partnering agreement,
the project will be influenced by more than one  Project manager’s level of authority
organization.  Resource availability and management
 Entity controlling the project budget
 Project manager’s role
 Project team composition

Types of Organizational Structures

A business’s organizational structure identifies the

relationships among departments and personnel and
indicates the lines of communication and decision
making. Two principal types of organizational structures
are line and line-and-staff organizations. Two newer
structures in companies today
are matrix and team organizations.

Line Organization

In a line organization, all authority and responsibility

can be traced in a direct line from the top executive
down to the lowest employee level in the
organization.
SPECIALIZATION 1 – CONSTRUCTION MANAGEMENT

A line organization is shown in Figure 13-9 (sales is the

only area for which the complete organization is shown).
The lines joining the individual boxes indicate the lines of
authority. The lines show, for example, that the president
has authority over the sales manager, the sales
manager has authority over the assistant sales manager, Large and complex businesses need a great deal of
the assistant sales manager has authority over the expertise to operate well. Managers have greater
branch managers, and the branch managers have difficulty mastering the knowledge and skills they need in
authority over the sales representatives. all their areas of responsibility. In the line-and-staff
organization, managers have direct control over the units
In addition, the lines describe how formal and employees they supervise but have access to staff
communications are expected to flow up and down the specialists for assistance. Specifically, the line-and-staff
organization. In a line organization, the president has organization adds staff specialists to a line organization.
direct control over all units of the business, but It is designed to solve the problem of complexity and still
responsibility, authority, and accountability are passed retain the advantages of direct and definite lines of
along from one person to another, down to the lowest authority. Staff specialists give advice and assistance to
level. Under this form of organization, each person is line personnel. Staff personnel have no authority over
responsible to only one manager, who, in turn, is line personnel; that is, staff personnel cannot require
responsible to someone else. anyone in the line organization to perform any task. They
are there to help with specialized jobs.
This type of organization can be very efficient because
new plans and ideas can be put into effect immediately Matrix Organization
in one area of the business without involvement from
other areas. However, it often leads to many layers of A newer, more flexible structure is the matrix
management and isolation or lack of communication organization, sometimes called a project organization. A
between departments and divisions. There is no direct matrix organization organizes employees into
way that managers of different departments not in the temporary work teams to complete specific projects.
same line of authority can communicate and work Employees report to a project manager with authority
together. and responsibility for the project. When a new project
must be done, employees with the needed skills are
Line-and-Staff Organization assigned to work on the project team. They work for that
manager until the project is finished. Then they are
assigned to a new project and another project manager.
Work assignments and relationships in a matrix
organization are clear but temporary.

In the matrix organization, there is no permanent

organizational structure in which an employee continues
to report to the same manager and works in only one
functional area. It is difficult to develop an organizational
chart for this type of organization because it changes
regularly. Typically, the company prepares an
organization chart for each project, so that employees
know the current project structure and the management
and employee relationships. The company prepares a
new chart when that project ends and a new one begins.
The matrix organization is used successfully in research
firms, advertising agencies, and construction companies,
but it is being considered by other types of businesses
as well because it provides flexibility and allows for rapid
change. This structure uses the specific skills of
managers and employees as effectively as possible by
SPECIALIZATION 1 – CONSTRUCTION MANAGEMENT

bringing together people with the right skills for each effective team structures have a better record of keeping
project. When employees are given new project customers happy, reducing absenteeism, reducing
assignments, managers must be careful to define turnover, and keeping motivation high. Teams require
authority and responsibility so as not to violate unity of certain ingredients for success. Managers must support
command. the idea and assist the teams as needed.

Team Organization Team members must become competent in three

areas:

1. Technical job skills

2. Interpersonal skills, such as writing, speaking,

discussing, and negotiating

3. Administrative skills, such as leading meetings,

thinking analytically, and maintaining records

Teams need top-management support as well as skills in

these three areas to do well. New teams must have both
time and support to be able to mature to their full
potential.

The newest type of organization structure is known as

team organization. A team organization divides
employees into permanent work teams. The teams have
responsibility and authority for important business Principles of Good Organization
activities with limited management control over their
daily work. Teams often have team leaders who are Organizational Chart – An organization chart is a
likely to be experienced employees rather than drawing that shows the structure of an organization,
managers. Team leaders replace the traditional position major job classifications, and the reporting relationships
of supervisor and act as facilitators more than as among the organization’s personnel. The figure below is
traditional managers. an example of an organization chart for a retail business.

Team leaders help their teams identify problems and The purposes of the organization chart are to:
work with them to solve the problems as a group. Team  Show the major work units that make up the
members report to the team leader, and the team leader business
makes some management decisions for the team.  Allow employees to identify which unit they are
A full-time manager is responsible for several teams affiliated with, how it relates to other units, and
and meets with team leaders for planning, progress to whom they are accountable, and
reports, and problem solving. Sometimes teams are  Identify lines of authority and formal
organized without a permanently designated team communication within the organization
leader. These are self-directed work teams, in which Large organizations usually provide new employees
team members together are responsible for the work information through an employee handbook or on the
assigned to the team. Self-directed work teams have a company’s Web site that explains the organization of the
manager to whom they can turn with unusual or very business and shows an organization chart. By
difficult problems, but most of the time they work understanding an organization chart, employees have
together to establish goals and to plan and organize their some idea of where and how they fit into the company,
work. Often members take turns as team leader or how the organization works, and possible promotion
facilitator. A self-directed team has full authority over opportunities. As changes occur in an organization
planning, performing, and evaluating its work. through reorganization of work or when major operating
For ideas and assistance, the team may talk to other units are bought and sold, the company’s organization
teams or draw on the support of specialists available to chart can become outdated. To be a useful management
work with all teams in the organization. In addition, the and communication tool, the chart should be revised
team is expected to talk to suppliers and customers from when changes occur in the organizational structure.
inside or outside the business to get their input and The elements that should be considered when
feedback. In self-directed work teams, the team decides organizing work are:
who will do which types of work and how they will do it.
Each worker must be able to perform the tasks of most 1. Division of Work – in establishing an
other team members to cover for absent members or organization structure, the total work to be done
additional workloads. Team members hire, train, and must be divided into units, such as departments.
even fire new team members, evaluate individual and The first consideration is the grouping of
team performance, and handle most of the traditional activities into broad, natural divisions, such as
management tasks. buying and selling or production, marketing, and
administration.
The role of the manager is to serve as the team’s 2. Facilities and Working Conditions – while
consultant and to concentrate on higher-level divisions of work are being established, the
management tasks. Companies that have developed physical aspects of organizing must also be
SPECIALIZATION 1 – CONSTRUCTION MANAGEMENT

considered. These aspects include providing the members need to be aware of who is in charge
necessary equipment and materials for of each activity. Ultimately the entire team and
employees to be able to complete their work, its supervisor are responsible for the results
and arranging the layout of the facilities so that produced. A team member cannot shift the
all work flows smoothly and provides the best blame to someone else or fail to undertake a
working conditions possible. share of the workload if that organizational
3. Employees – dividing the work into manageable structure is to work successfully.
units and providing adequate equipment and 4. Span of Control – span of control is the number
facilities must be done with employees in mind. of employees that any one manager supervises
In fact, organizing involves establishing good directly. Organizations must establish a
relationships among the employees, the work to reasonable span of control for each manager.
be performed, and the facilities needed, so that The manager who supervises too many people
productivity will be high. In part, organization is a is overworked and unable to perform all duties
successful matching of the employee and the effectively. On the other hand, valuable time is
employee’s materials and work. Employees wasted if a manager has too few people to
should be matched to work that they are supervise. That manager may supervise each
prepared to do. That means that they have the person too closely or spend too much time in no
necessary preparation and skill to complete the management work. In general, the span of
assigned tasks. If employees are members of control is larger at the lower levels of an
work teams, the total skills of the team should organization than at the higher levels.
match the work requirements.

Principles of Good Organization

MODULE 2: MANAGEMENT AND MANAGEMENT
1. Responsibility and Authority – responsibility is STRUCTURE, CONCEPTS, AND CONTROLS
the obligation to do an assigned task. In a good
organization, the assigned tasks are clearly Management
identified so all employees know exactly the  The process of directing and facilitating the
work for which they are responsible. Authority is work of people who are organized for a common
the right to make decisions about assigned work purpose. It is the process of combining the
and to make assignments to others concerning efforts and resources of individuals with a
that work. Authority is delegated from the top of common interest to achieve a desired objective.
the organization to others at lower levels.  The function of getting things done through the
2. Accountability – accountability is the obligation efforts of others. It is the application of authority
to accept responsibility for the outcomes of and the assumption of responsibility. It is the art
assigned tasks. When any manager assigns of handling people.
responsibility and delegates authority to an
employee, the manager does not give away the Management and Management Concepts
responsibility for ensuring that the work is
Management is a distinct ongoing process of allocating
completed and for evaluating the quality of that
inputs of an organization (human and economic
employee’s performance. Although the manager
resources) by typical managerial functions (planning,
is ultimately responsible for the work, the
organizing, directing and controlling) for the purpose of
employee is accountable to the manager for
achieving stated objectives, viz., output of goods and
performing the assigned work properly, including
services desired by its customers (environment). In the
the quality, quantity, and completion time. The
process, work is performed with and through personnel
manager, in turn, is accountable to his or her
of the organization in an ever-changing business
boss for the outcomes of all work done in the
environment.
unit.
3. Unity of Command – an important principle of This definition includes principal ideas of any school of
good organization is unity of command. Unity of management thought:
command means that no employee reports to
more than one supervisor at a time or for a  Functional school sees management as a
particular task. Confusion and poor work process of planning, organizing, directing, and
relations result when a person has work controlling.
assigned by and is accountable to more than  Behavioral school is not interested in the
one supervisor. The person may not know which process only but rather in the way the process
assignment to perform first or may receive affects the organization, i.e., with and through
conflicting instructions regarding the same work personnel or human resources.
assignment. With the increasing use of teams,  Quantitative school wants to improve the
problems with unity of command are more likely quality of decision-making, i.e., fulfilling the
to occur. Teams and their supervisors must stated objectives of the enterprise.
practice the same careful organization of work  Systems approach concentrates on the entire
as when more traditional structures are used. organization, i.e., inputs-process-outputs.
Teams need clear assignments of responsibility
and authority for their tasks, and all team
SPECIALIZATION 1 – CONSTRUCTION MANAGEMENT

 Contingency approach emphasizes dynamic  Humanistic Management – where machine

nature of management process in an ever- may have standard efficiency and be set to run
changing business environment. at a given speed, human beings, cannot be
easily regulated to a pre-determined point of
Let us formulate a precise definition of management. It accomplishment. It has been proven many times
should be the basis of our study of the principles of that application of good human relations through
management. The substance of management should be cooperation and coordination leading towards
identified as a process. A process is something that a greater accomplishment.
person does. A process also implies ongoing and
unceasing cyclical operations. In management we have Management Structure
planning-action-control cycle. Our definition must
incorporate this management cycle. A process indicates The primary objective of management structure is to
the dynamic nature of management. It also implies that facilitate the coordination and control over the activities
change is a constant reality of organizational life and of the company. Each company is unique and should be
management is the management of change. Lastly, studied in terms of its purpose, size and the nature of its
management is regarded as a social process because it business. The delegation of responsibility should be
is directly concerned with management of human considered in any sizable organization because:
resources in order to secure cooperation and teamwork 1. It is impossible for one person to control
from the people in their performance. effectively all the works of a large organization
There are twin purposes of the management process: through personal contact with it.
2. No person possesses the skills necessary to
1. Maximum productivity or profitability guide personally the specialized activities in a
2. Maximum human welfare and satisfaction modern construction business. Hence, an expert
on every line of activities much be responsible
on such department.

There are five parts to a definition of management as a The line of authority must be clear at all times. The line
process: of responsibility works in two ways:
1. Management is Co-ordination – the manager 1. From the executive to the supervisor down to
of an enterprise must effectively coordinate all the workers under his jurisdiction and
activities and resources of the organization conversely.
2. Management is a Process – the manager 2. From the workers to those who are in authority
achieves proper co-ordination of resources by over him.
means of the managerial functions of planning,
organizing, staffing, directing (or leading and Management Controls
motivating) and controlling
3. Management is a Purpose Process – it is  Control – to check or regulate. To keep within
directed toward the achievement of pre- limits.
determined goals or objectives. Without an  Control includes activities that require restrictive
objective, we have no destination to reach or a or corrective action. The success or failure of
path to follow to arrive at our destination, i.e., a any enterprise depends greatly upon the
goal, both management and organization must manager and the effective tool for success is
be purposive or goal-oriented management control.
4. Management is a Social Process – it is the art Steps in Controlling
of getting things done through other people
5. Management is a Cyclical Process – it 1. Establishing standards for each of the
represents planning-action-re-planning cycle, company’s goals
i.e., an ongoing process to attain the planned 2. Measuring and comparing performance against
goals. the established standards to see if performance
met the goals
Concepts of Management 3. Taking corrective action when performance falls
 Systematic Management – things can be done short of the standards
better by means of plan of action. The plan is a In many cases, the managers had to set a standard
step-by-step outline of what Is to be done and based on the work to be accomplished. Then they
who does what. Good decisions and actions are compared performance against the standard to see if the
based on the systematic application of sound company’s goals could be met. Finally, if performance
principles and complete and reliable facts, and was not meeting the standard, the managers had to
of good practices. determine how to correct the problem. Controlling
 Scientific Management – this has done more to activities should be completed before the problem is too
advance and win the status of mankind today big or too expensive to correct.
than has any other single factor. By the
application of the scientific method to the study The Manager
and analysis of the operations of a particular job,
 Effective managers must be a good leader
men have discovered the best-known methods
o Organize
of performing the operation.
o Coordinate
SPECIALIZATION 1 – CONSTRUCTION MANAGEMENT

o Direct o Market Agencies, Public, Competitors,

 Self-confidence, Intelligence, Enthusiasm, Customers, Government Agencies,
Honesty and Integrity, Knowledgeable, Financial Institutions, Suppliers, etc.
Observes and Evaluate
Concepts of Management
Executive Functions of a Manager
 Scientific Management
(from Das, Nag Leiri & Kirby’s PASS Theory of o Production and output as indicated is
Intelligence) reflected in schemes of "PAYMENT BY
RESULT" (F.W. Taylor)
 Planning Planning
o Work Simplification
 Attention Directing
 Humanistic Management
 Simultaneous Leadership
o Human is the most important asset
 Successive Coordination
5 Key Factors to Success
Executive Leadership
1. Strategy
 To give orders, influence and guide the
2. People
Organization’s members
3. Marketing
 New concepts of leadership may be influenced
4. Operations
by:
5. Finances and Facilities
o Technological Advancement
o Gender Equality Directing People at Work
o Politics
o Laws and Regulation What is an order?
o Others  Direction or instruction to do something
 To send request to make something, to supply
or to serve

Verbal Order – emergency situations only

Delegation of Authority
Written Order – authorized order, must always be the
 Assignment of Duties way on how you give orders
 Granting Authority
Request – to formally ask for something
 Creating Responsibility and Accountability
Command – an authoritative order given by a manager
Importance:
to his staff
1. Division of workload among organization
How to give effective order?
members
2. The manager can focus 1. Obtain favorable attention
3. Flow of authority can be observed 2. Make it simple and specific
4. Trains staff that results in enhancement of their 3. Explain your order further
skills and abilities
Types of Workers
Difference between Authority and Responsibility
 Knowledge Worker – someone whose job
Authority involves handling information
 Manual Worker – someone who works
 Legal right of a person or manager to command
physically
his staff
 Skilled Workers – someone who works with
 Authority is attached to the position of the
special skills and training (vocational)
manager concerned
 Can be delegated by a manager to a staff MODULE 3: DECISION MAKING IN PROJECT
 It flows from top to bottom MANAGEMENT
Responsibility “Effective Decisions come from Effective Managers”
 It is the obligation of staff to perform the work Decision-Making
assigned to him
 Responsibility arises out of manager-staff  The fundamental process of management. The
relationship in which the staff agrees to carry out process of making choices by identifying a
the duty given to him decision, gathering information, and assessing
 Can not be shifted and is absolute alternative resolutions.
 It flows from bottom to top  A selection method
 May take time in order to reach the correct
Personnel Coordination alternatives
 “A research of identifying and choosing
 Internal
alternatives based on the decision-makers’
o Vertical – Manager to Staff (vv)
weights, values, and preferences”
o Horizontal – Co-workers
 External
SPECIALIZATION 1 – CONSTRUCTION MANAGEMENT

Decision – Is a judgment. It is a choice between

alternatives.

Rule – One does not make a decision unless there is

disagreement. Right decision demands adequate
disagreement.

Limiting Factor – Time is the limiting factor in decision-

making. Time is a unique resource and its supply is
totally inelastic and absolutely irreplaceable. Time
budgeting is very important in decision-making. Effective
manager does not start with his work. He starts with his
time.

Analysis Paralysis – An inability to make a decision

due to over-thinking a problem. An individual or a group
can have too much data. The result is endless wrangling
over the upsides and downsides of each option, and an
inability to pick one.

Decision Types in Management

Reasons for Poor Decisions

 Error made in the decision process – some

managers demonstrate an inability to make a
decision, sitting down on matters, when the
decision should have long been rendered.
 Bounded Rationality – refers to the limit as
control in making decision because of costs,
human abilities, time, technology and the
availability of information
 Sub-Optimization – the result from each
different department’s attempt to reach a
Decision-making maybe needed when: solution that is optimum for their department.
 Under Certainties Effective Manager
 Under Risks
 Under Uncertainties  Makes effective decision
 Concentrates on the important decision with the
7 Steps in Decision-Making Process highest level of conceptual understanding
 Knows that a decision must be based on
 Identify the decision
principles
 Gather information
 Distinguishes between right and wrong
 Identify Alternatives
compromise
 Weigh the Evidence
 Insists on alternatives
 Choose among alternatives
 Monitors the result of the decision to ascertain
 Take action
the objectives.
 Review your decision

Common Challenges in Decision-Making

5 Elements of Decision Process

 The Decision Maker

 Goals to be served
 Relevant Alternatives
 Scores
 Evaluation Criteria (Choices)

Things to consider:

 Time Budgeting
 Employee Discipline
 Principles of Decision Making

Principles of Decision-Making

 Marginal Theory of Decision-Making

 Psychological Theory
 Principles of Alternatives
SPECIALIZATION 1 – CONSTRUCTION MANAGEMENT

 Mathematical Theory  Design: translating the vision into detailed

 Principle of Limiting Factors plans, including schematic design, design
 Principle of Participation development, and construction drawings
 Planning: developing a strategic plan for project
Decision-Making Process execution, including timelines, budgets, and
1. Identify the problem. resources
2. Specify objectives and the decision criteria 2. BUILDING PERMITS
3. Develop alternatives
4. Analyze and compare alternatives  Secure all the needed building permits before
5. Select the best alternatives project commencement
6. Implement the chosen alternative  Can be time-consuming as several overlapping
7. Monitor results to ensure that the desired authorities have to approve a project
outputs are achieved.  Straightforward in some projects but takes
months or years in others
Disagreement before Decision-Making
3. PRECONSTRUCTION PHASE: LAYING THE
 Safeguard against the decision maker’s FOUNDATION
becoming hostage of the organization
 Provide alternatives to a decision  Planning: finalizing the project plan,
 Stimulate the imagination streamlining the design, and assembling
resources
Elements of Decision-Making Process  Cost Estimation: developing accurate cost
1. See if the problem is generic and could only be estimates based on labor, materials, and
solved through a decision established by a rule regulatory requirements
or principle  Contract Negotiation: entering into legally
2. Define the specifications which the answer to binding agreements with contractors and
the problem had to satisfy, i.e., of the boundary subcontractors
conditions 4. PROCUREMENT: SECURING THE RESOURCES
3. The thinking through what is right, i.e., the
solution will satisfy the specifications before  Materials: procuring necessary materials,
attention is given to the compromises, including building supplies, fixtures, and finishes
adaptations, and concessions needed to make  Labor: hiring skilled and unskilled labor,
the decision acceptable. including contractors, subcontractors, and
4. The building into the decision of the action to specialized workers
carry it out.  Equipment: sourcing construction equipment,
5. The feedback, which tests the validity and including heavy machinery, tools, and safety
effectiveness of the decision against the actual gear
course is events.
5. CONSTRUCTION PHASE: BUILDING THE
Decision Tree Analysis PROJECT

A diagram that describes a decision under consideration  Site Preparation: preparing the construction
and the implications of choosing one or another of the site, including clearing land, excavating, and
available alternatives. setting up utilities
 Foundation Construction: building the
foundation, which provides structural support for
the entire building
 Framing: erecting the building’s framework,
including walls, floors, and roof
 Roofing: installing the roof, ensuring
MODULE 4: THE CONSTRUCTION PROJECT
weatherproofing and structural integrity
LIFECYCLE
 Exterior Finish: completing the exterior
Understanding the Construction Project Lifecycle finishes, including siding, windows, and doors
 Interior Finish: adding the interior finishes,
 Conception: initial ideas, location, and building including flooring, drywall, painting, and fixtures
codes
 Design: detailed plans, specifications, and 6. POST-CONSTRUCTION: FINALIZING THE
blueprints PROJECT
 Preconstruction: planning, cost estimation, and
 Final Inspections: conducting inspections to
contract negotiations
ensure compliance with building codes and
 Procurement: sourcing materials, labor, and
safety standards
equipment
 Punch List: identifying and rectifying any
1. PROJECT CONCEPTION, DESIGN, AND remaining deficiencies or defects
PLANNING  Project Handover: transferring ownership of the
completed project to the client
 Conception: the initial stage where the project’s  Warranty and Maintenance: providing
purpose, scope, and feasibility are determined warranties for construction work and
establishing maintenance procedures
SPECIALIZATION 1 – CONSTRUCTION MANAGEMENT

Why are Construction Project Phases Important? The Construction Manager

1. Risk Management – phasing helps to identify Required Knowledge:

and mitigate risks at each stage, ensuring a
smooth project flow  Construction and Building
2. Coordination and Collaboration – phases  Technology
establish a clear framework for coordinating  Public Safety
activities and ensuring seamless teamwork  Customer Service
3. Project Control and Monitoring – phases  Human Resources
provide a structure for monitoring project  Mathematics
progress, identifying potential issues, and Skills and Abilities:
making necessary adjustments
4. Quality Assurance and Control – phases allow  Time Management
for regular quality checks, ensuring that the  Negotiation
project meets standards and specifications  Decision-Making
 Problem Solving
How to Organize the Construction Process
The construction manager offers advice, uncolored
 Clear Roadmap – define project goals, by any conflicting interest, on matters such as:
timelines, budgets, and resources
 Construction Checklist – create a  Optimum use of available funds;
comprehensive checklist for each phase,  Control of the scope of the work;
including safety procedures and quality control  Project scheduling;
measures  Optimum use of design and construction firms’
 Progress Tracking – monitor project milestones skill and talents;
and track progress against established  Avoidance of delays, changes, and disputes;
deadlines  Enhancing project design and construction
 Effective Communication – maintain open quality;
communication channels among all stakeholders  Optimum flexibility in contracting and
to ensure everyone is informed and on the same procurement
page  Cash flow management

Conclusion: Navigating the Construction Project CM at-risk

Lifecycle
 Entails a commitment by the construction
 The construction project lifecycle is a manager to deliver the project within a
comprehensive and structured approach to Guaranteed Maximum Price (GMP), in most
managing complex construction projects. By cases
understanding the phases, best practices, and
challenges involved, you can optimize project Planning and Scheduling
outcomes and achieve successful delivery. Project management methodology:

 Work breakdown structure

 Project network of activities
o Critical path method (CPM), Resource
management, Resource leveling

Architecture-Engineer:
MODULE 5: FUNDAMENTALS OF CONSTRUCTION  Work Inspection
MANAGEMENT  Change order
 Review payment
Construction Project Management
 Materials and samples
 Overall planning, coordination and control from  Shop drawings
beginning to completion of a construction project  3D image

Functions: Construction Management – Accounting &

Operational for Contractors, Building & Civil
1. Specifying project objectives and plans including
delineation of scope, budgeting, scheduling,  Sets up the estimates, the budgets, and the
setting performance requirements and selecting construction timetable for the client and
project participants. develops the construction strategy
2. Maximizing the resources efficiently thru  Selects the subcontractors and workers
procurement of labor, material, and equipment.  Provides required explanations for the builders
3. Implementing various operations through proper and other professional associated with the
coordination and planning, design, estimating, project
contracting, and construction in the entire  Coordinating and collaborating with the
process. architects, engineers, and specialists
4. Developing effective communications and
mechanisms for resolving conflicts.
SPECIALIZATION 1 – CONSTRUCTION MANAGEMENT

 Ensures the construction project complies with

all building codes and any other legal or
regulatory requirements
 When delays or problems occur – as they
always do – the construction manager is the
project’s first responder, ready to make the
changes required to move the project past the
issue

Obtaining the Project

 Bids – a bid is given to the owner by the

construction manager that are willing to
complete their construction project. A bid tells
the owner how much money they should expect
to pay the construction
o Open Bid: an open bid is used for
public projects. Any and all contractors
are allowed to submit their bid due to
public advertising.
o Closed Bid: a closed bid is used for
private projects. A selection of
contractors are sent an invitation for bid
so only the can submit for the specified
project. b. Key Considerations for Efficiency:
i. Overlapping Tasks –
Selection Methods Reinforcement and formwork
 Low-Bid Selection can proceed simultaneously.
 Best-Value Selection ii. Proper Curing – Avoid rushing
 Qualifications-Based Selection (request for removal of formworks to prevent
structural issues.
qualifications)
iii. Quality Control – Inspections
Payment Contracts at each phase (before pouring,
after curing)
 Lump Sum iv. Equipment Use – Concrete
 Cost-Plus-Fee mixers, vibrators, and speed
 Guaranteed Maximum Price cutters must be available.
 Unit-Price 2. Define Task Durations
Construction Management Team a. Estimate the time required for each
activity, usually in days or weeks
 Planning Engineer, Project Coordinator, Field
Engineer, Office Engineer, Quantity Surveyor,
Project Engineer, Area Superintendent, Project
Manager, Estimator, Lead Estimator, Senior
Estimator, Chief Estimator

MODULE 6: CRITICAL PATH METHOD (CPM)

1. Identify all project activities

a. List all tasks required to complete the
project. These should be specific,
measurable work items (e.g.,
Excavation, Formworks, Concrete
Pouring)

3. Determine Task Dependencies

SPECIALIZATION 1 – CONSTRUCTION MANAGEMENT

a. Establish which tasks must be c. Any task not on the critical path has
completed before others can begin float/slack (flexibility)
(predecessors & successors) d. Example: If the longest path in the
b. Example: project is Excavation > Reinforcement >
i. Excavation must be completed Concrete > 2nd Floor > Roof Deck >
before Reinforcement Works Final Checks, that becomes the Critical
can start Path.
ii. Formwork can proceed while
reinforcement is ongoing EXAMPLE:

MODULE 7: CONSTRUCTION CONTRACTS

4. Create a Network Diagram
a. Draw a flowchart or graph representing Parties to the Contract
the sequence of tasks, showing how
they are linked.  Offeror – makes an offer
i. Nodes = Tasks  Offeree – has the power to accept the offer and
ii. Arrows = Dependencies create a contract
5. Calculate the Earliest Start (ES) and Earliest Elements of Contract
Finish (EF) for Each Task
a. Earliest Start (ES) = Earliest time a task 1. Offer
can begin 2. Consideration
b. Earliest Finish (EF) = ES + Task 3. Acceptance
Duration 4. Mutuality
i. If a task has multiple
Offer
predecessors, ES = latest EF
of preceding tasks  An offer is a clear proposal by one party to enter
c. Formula: into an agreement with another party under
i. EF = ES+DurationEF = ES + specific terms.
DurationEF=ES+Duration  Example: A contractor submits a bid to build a
ii. Example: If Excavation (10 house for Php500,000. This bid serves as an
days) starts at Day 0, offer to provide construction services under
 ES for Reinforcement = agreed conditions.
10
 EF for Reinforcement = Consideration
10 + 10 = 20
 Consideration is the value (monetary or
6. Calculate the Latest Start (LS) and Latest
otherwise) that each party gives up in exchange
Finish (LF) for Each Task
for receiving a benefit from the contract.
a. Work backward from the project end
 Example:
date to determine the latest times each
o The client agrees to pay Php500,000 for
task can start/finish without delaying the
the house construction.
project.
o The contractor agrees to provide labor,
i. LF = Minimum LS of
successor tasks materials, and expertise
ii. LS = LF – Duration  The money paid and the services provided are
iii. Example: If roof deck structural both forms of consideration
works must finish by Day 45, Acceptance
 LF of Roof Deck = 45
 LS of Roof Deck = 45 -  Acceptance occurs when the party receiving the
21 = 24 offer agrees to the terms without modifications
7. Identify the Critical Path  Example:
a. The Critical Path is the longest o The client signs the contract and
sequence of dependent tasks with no confirms the contractor’s proposal,
slack time (float = 0) agreeing to pay Php500,000 for the
b. Delays in any critical task will delay the construction. This signature or verbal
entire project. agreement is the acceptance.
SPECIALIZATION 1 – CONSTRUCTION MANAGEMENT

Mutuality (Mutual Agreement) Cost Plus Percentage of Cost

 Both parties must willingly agree to the contract  The contractor is reimbursed for all costs
terms, ensuring a “meeting of the minds.” incurred plus a percentage-based profit.
 Example:  Example: A contractor builds a factory and is
o If a client hires a contractor but later reimbursed for all material and labor costs plus
realizes the contract contains 10% of the total cost.
undisclosed additional costs, there is no
Cost Plus Fixed Fee
mutuality because both parties did not
fully agree to all terms. However, if both  The contractor is reimbursed for costs incurred
parties discuss and agree on all terms and receives a fixed fee regardless of the total
before signing, mutuality is established. cost.
 Example: A defense contractor is reimbursed for
Types of Contracts
actual costs to build a military vehicle and
 Lump sum contract receives a fixed Php500,000 fee.
 Unit price Contract
Target Cost with Variable Fees Contract
 Schedule of Rates Contract
 Admeasurement Contract  The contractor and client agree on a target cost,
 Cost reimbursement Contracts and fees vary based on performance, incentives,
 Cost plus Percentage of Cost and penalties.
 Cost plus Fixed Fee  Example: A hospital construction contract has a
 Target Cost with Variable Fees Contract target cost of Php 50 million. If completed under
 Guaranteed maximum Price Contract (GMP) budget, the contractor gets a bonus; if over
budget, the contractor shares the extra costs.
Lump Sum Contract
Guaranteed Maximum Price (GMP) Contract
 A fixed-price contract where the contractor
agrees to complete a project for a  The contractor is reimbursed for actual costs up
predetermined total cost, regardless of actual to a maximum agreed amount; any excess costs
expenses. are the contractor's responsibility.
 Example: A contractor agrees to build a house  Example: A contractor agrees to build a school
for Php500,000, covering all materials, labor, with a GMP of Php10 million. If costs exceed
and other costs. this amount, the contractor covers the excess.
Unit Price Contract Typical Steps to a Construction Contract
 The contract specifies a price per unit of work ✓ Receive either an inquiry or request for proposal
(e.g., per cubic meter of concrete), and the total (RFP) or an invitation to bid/tender (ITB).
payment depends on the actual quantities used.
 Example: A road construction contract might ✓ Prepare a proposal or bid/tender for the work and
specify Php500 per cubic meter of asphalt laid, submit to the owner.
with the final cost determined by the total
✓ Negotiate all details of the contract with the owner.
volume used.
✓ Signing the contract.
Schedule of Rates Contract
Understanding why Contract varies Development
 The contractor is paid based on pre-agreed
Focused Analysis
rates for different types of work, often used in
maintenance or repair contracts.  DEMAND Businesses fuels construction
 Example: A maintenance contractor is paid industry and it is evolving in all possible
Php800 per hour for electrical work and $80 per directions.
hour for plumbing work.  STRATEGY Strategic Planning extends from
process of defining its directions on resource
allocation to pursue its objectives to control
Admeasurement Contract mechanisms for guiding its implementations.
 LIMITATIONS Time and Resources are key
 Payment is based on measured quantities of drivers for Creativity.
work completed, usually combined with a Bill of  RISK Management Development in risk
Quantities (BoQ). mitigation constantly change management and
 Example: A contractor is hired to build a bridge, professional practices.
and payments are made based on the actual
volume of concrete poured and steel used. Basic Contract Pro-Format

Cost Reimbursement Contracts Title and Introduction

 The contractor is reimbursed for actual costs  Clearly states the name of the contract (e.g.,
incurred, plus an agreed fee or profit margin. "Construction Agreement" or "Service
 Example: A research project where a contractor Agreement").
is reimbursed for all research expenses, plus a
management fee.
SPECIALIZATION 1 – CONSTRUCTION MANAGEMENT

 Identifies the parties involved, including their

legal names and addresses.

Definitions and Interpretations

 Provides explanations of key terms used in the

contract to prevent ambiguity.

Scope of Work (SOW) or Description of Services

Contract Law
 Details the obligations and responsibilities of
each party.  A contract is a legally enforceable agreement
 Specifies the work to be performed, between two or more parties that creates an
deliverables, and performance expectations. obligation to do or not to do particular things.
 The term "party" can mean an individual person,
Payment Terms and Pricing company, or corporation.
 Defines the total contract price, payment Laws that Governs Contract:
schedule, and acceptable payment methods.
 Specifies penalties for late payments, retainage,  Civil Code (Consent, Object, Cause)
and invoicing procedures.  National Building Code
 Government Procurement Reform Act
Duration and Timeline (Government Projects)
 Construction Industry Authority of the Philippines
 Establishes the contract's start date, completion
(Document 102)
date, and milestones (if applicable).
 Includes provisions for extensions, delays, or Contract Disputes and Resolutions
time-based penalties.
Negotiation
Terms and Conditions
 A direct discussion between disputing parties
 Covers the legal obligations and rights of each aimed at resolving issues without third-party
party. intervention. It's often the first step in dispute
 May include warranties, indemnities, force resolution, emphasizing open communication
majeure clauses, and compliance with laws. and compromise.
Change Order or Variation Clause  Governing Body: Parties Themselves
 Outlines the process for modifying the contract,  Legal Framework:
such as changes in scope or costs.
o Civil Code of the Philippines
Termination Clause (Republic Act No. 386): The Civil Code
 Specifies the conditions under which the governs obligations and contracts,
providing the foundational legal
contract can be terminated, including breach of
principles that guide negotiations and
contract, mutual agreement, or force majeure.
enforceability of agreements reached
Dispute Resolution therein.

 Details how disputes will be handled, including Arbitration

mediation, arbitration, or court proceedings.
 Arbitration involves disputing parties presenting
Liability and Risk Allocation their case to an impartial tribunal, which renders
a binding decision

 Governing Body: Construction Industry

 Defines responsibilities for damages, liabilities, Arbitration Commission (CIAC)
and insurance coverage.
 Legal Framework:
Confidentiality and Non-Disclosure (if applicable)
o Alternative Dispute Resolution Act of
 Protects sensitive information shared between 2004 (Republic Act No. 9285): This act
parties. promotes the use of alternative dispute
Governing Law and Jurisdiction resolution methods, including arbitration,
and recognizes the CIAC's role in
 Specifies which laws govern the contract and construction disputes.
where legal disputes will be resolved.
Mediation
Signatures and Execution
 Involves a neutral third party, known as a
mediator, who assists disputing parties in
reaching a voluntary, mutually acceptable
resolution. Unlike arbitration, the mediator does
not impose a decision but facilitates dialogue to
help parties find common ground.
SPECIALIZATION 1 – CONSTRUCTION MANAGEMENT

 Governing Body: Construction Industry 2. Use a work breakdown structure to identify

Arbitration Commission (CIAC) project tasks
 Legal Framework: 3. Determine your project deliverables
o Alternative Dispute Resolution Act of 4. Establish acceptance criteria for your project
2004 (Republic Act No. 9285): This act deliverables
institutionalizes mediation as a viable 5. Use the CPM method to create a project timeline
dispute resolution method and 6. Establish payment terms for the project
encourages its use across various 7. Establish project reporting procedures
sectors, including construction
Government Procurement (RA 9184)
Litigation
 Procurement refers to acquisition of goods,
 Litigation involves resolving disputes through the consulting services, and the contracting of
court system, where a judge adjudicates the infrastructure projects by the procuring entity
case based on evidence and legal arguments
Definition of Terms
presented by both parties. It's typically
considered a last resort due to its formal, time-  ABC – Approved Budget for the Contract.
consuming, and costly nature.  ARCC – Allowable Range of Contract Cost.
 Governing Body: Philippine Judiciary  BAC – Bids and Awards Committee.
 Legal Framework:  Bid – A signed offer or proposal to undertake a
o Rules of Court: These rules govern the contract submitted by a bidder in response to
procedures for civil litigation in the and in consonance with the requirements of the
Philippines, outlining the processes for bidding documents. Also referred to as Proposal
filing cases, presenting evidence, and and Tender. (2016 revised IRR, Section 5[c])
appealing decisions.  Bidder – Refers to a contractor, manufacturer,
supplier, distributor and/or consultant who
MODULE 8: CONSTRUCTION SCOPE OF WORK
submits a bid in response to the requirements of
AND PROCUREMENT
the Bidding Documents. (2016 revised IRR,
What is a Scope of Work? Section 5[d])
 Bidding Documents – The documents issued
 An agreement on the work you’re going to by the Procuring Entity as the bases for bids,
perform on the project furnishing all information necessary for a
prospective bidder to prepare a bid for the
What are included in the Scope of Work?
Goods, Infrastructure Projects, and/or
 Project Deliverables: Consulting Services required by the Procuring
o What your project delivers Entity. (2016 revised IRR, Section 5[e])
o Clearly identify each item here  BIR – Bureau of Internal Revenue.
o Creating a work breakdown structure  BSP – Bangko Sentral ng Pilipinas.
can help with this step  CDA – Cooperative Development Authority.
o An acceptance criterion for the project  Consulting Services – Refer to services for
deliverables, such as quality standards Infrastructure Projects and other types of
or functional requirements projects or activities of the GOP requiring
 Project Timeline: adequate external technical and professional
o Defines the start of a project to its end expertise that are beyond the capability and/or
capacity of the GOP to undertake such as, but
o Delineates the major phases across the
not limited to: (i) advisory and review services;
schedule of the project’s duration
(ii) pre-investment or feasibility studies; (iii)
o Mark the points in the project when your
design; (iv) construction supervision; (v)
deliverables are ready
management and related services; and (vi) other
o Overall plan of any project
technical services or special studies. (2016
o Gantt Chart revised IRR, Section 5[i])
 Project Milestones:  Contract – Refers to the agreement entered into
o Tasks between the Procuring Entity and the Supplier or
o Milestone Manufacturer or Distributor or Service Provider
o Define your key milestones on a timeline for procurement of Goods and Services;
in the scope of work document, Contractor for Procurement of Infrastructure
including project kickoffs, meetings, Projects; or Consultant or Consulting Firm for
hand-offs, etc. Procurement of Consulting Services; as the
 Project Reports case may be, as recorded in the Contract Form
o Reports throughout the project, signed by the parties, including all attachments
delivered to either your team or and appendices thereto and all documents
customer, stakeholder or sponsor incorporated by reference therein.
o Status reports, progress reports,  Contractor – is a natural or juridical entity
variance reports and more whose proposal was accepted by the Procuring
Entity and to whom the Contract to execute the
How to Write a Scope of Work Work was awarded. Contractor as used in these
Bidding Documents may likewise refer to a
1. Define the project goals
supplier, distributor, manufacturer, or consultant.
SPECIALIZATION 1 – CONSTRUCTION MANAGEMENT

 CPI – Consumer Price Index.  SEC – Securities and Exchange Commission.

 DOLE – Department of Labor and Employment.  SLCC – Single Largest Completed Contract.
 DTI – Department of Trade and Industry.  UN – United Nations.
 Foreign-funded Procurement or Foreign-
Assisted Project – Refers to procurement Invitation to Bid
whose funding source is from a foreign  Provides information that enables potential
government, foreign or international financing Bidders to decide whether to participate in the
institution as specified in the Treaty or procurement at hand.
International or Executive Agreement. (2016  Date of availability of the Bidding Documents,
revised IRR, Section 5[b]). which shall be from the time the IB is first
 GFI – Government Financial Institution. advertised/posted until the deadline for the
 GOCC – Government-owned and/or –controlled submission and receipt of bids;
corporation.  The place where the Bidding Documents may be
 Goods – Refer to all items, supplies, materials acquired or the website where it may be
and general support services, except Consulting downloaded;
Services and Infrastructure Projects, which may  The deadline for the submission and receipt of
be needed in the transaction of public bids
businesses or in the pursuit of any government  Why important bid evaluation criteria.
undertaking, project or activity, whether in the
nature of equipment, furniture, stationery, Instruction to Bidders
materials for construction, or personal property
 Provides the information necessary for bidders
of any kind, including nonpersonal or contractual
to prepare responsive bids, in accordance with
services such as the repair and maintenance of
the requirements of the Procuring Entity
equipment and furniture, as well as trucking,
 Provides information on bid submission,
hauling, janitorial, security, and related or
eligibility check, opening and evaluation of bids,
analogous services, as well as procurement of
post-qualification, and on the award of contract
materials and supplies provided by the
Procuring Entity for such services. The term Contents:
“related” or “analogous services” shall include,
but is not limited to, lease or purchase of office  Scope of Bid
space, media advertisements, health  Funding Information
maintenance services, and other services  Bidding Requirements
essential to the operation of the Procuring Entity.  Corrupt, Fraudulent, Collusive, Coercive, and
(2016 revised IRR, Section 5[r]) Obstructive Practices
 GOP – Government of the Philippines.  Eligible Bidders
 Infrastructure Projects – Include the  Origin of Associated Goods
construction, improvement, rehabilitation,  Subcontracts (50%)
demolition, repair, restoration or maintenance of  Pre-Bid Conference
roads and bridges, railways, airports, seaports,  Clarification and Amendment of Bidding
communication facilities, civil works components Documents
of information technology projects, irrigation,  Documents Comprising the Bid: Eligibility and
flood control and drainage, water supply, Technical Components
sanitation, sewerage and solid waste  Documents Comprising the Bid: Financial
management systems, shore protection, Component
energy/power and electrification facilities,  Alternative Bids
national buildings, school buildings, hospital  Bid Prices
buildings, and other related construction projects  Bid and Payment Currencies
of the government. Also referred to as civil  Bid Security
works or works. (2016 revised IRR, Section 5[u])  Sealing and Marking of Bids
 LGUs – Local Government Units.  Deadline for Submission of Bids
 NFCC – Net Financial Contracting Capacity.  Opening and Preliminary Examination of Bids
 NGA – National Government Agency.  Signing of the Contract
 PCAB – Philippine Contractors Accreditation
Bid Data Sheet
Board.
 PhilGEPS - Philippine Government Electronic  Provisions that supplement, amend, or specify in
Procurement System. detail, information, or requirements included in
 Procurement Project – refers to a specific or the ITB found in Section II, which are specific to
identified procurement covering goods, each procurement.
infrastructure project or consulting services. A  Assist the Procuring Entity in providing the
Procurement Project shall be described, specific information in relation to corresponding
detailed, and scheduled in the Project clauses in the ITB and has to be prepared for
Procurement Management Plan prepared by the each specific procurement.
agency which shall be consolidated in the
procuring entity's Annual Procurement Plan. General Conditions of Contract
(GPPB Circular No. 06-2019 dated 17 July
 Matters governing performance of the
2019)
Contractor, payments under the contract, or
 PSA – Philippine Statistics Authority.
matters affecting the risks, rights
SPECIALIZATION 1 – CONSTRUCTION MANAGEMENT

 Obligations of the parties under the contract are announces a bidding for a 10-
included in the GCC and Special Conditions of kilometer national highway.
Contract  Interested contractors submit
proposals, and the lowest
Special Conditions of Contract responsive bid that meets
 Information that complements provisions of the technical requirements is
GCC must be incorporated awarded the project.
 Amendments and/or supplements to provisions 2. Alternative Methods of Procurement
of the GCC as necessitated by the o Used when competitive bidding is
circumstances of the specific purchase, must impractical or inefficient. The common
also be incorporated. alternative methods include:
o Limited Source Bidding (Selective
Specifications Bidding)
 Used for highly specialized
 Precise and clear specifications is a prerequisite
goods and services
for Bidders
 Only pre-selected suppliers or
 Specifications must be drafted to permit the
consultants with known
widest possible competition and, at the same
expertise are invited
time, present a clear statement of the required
 Example: Construction of a
standards of workmanship, materials, and
Specialized Military Facility
performance of the goods and services to be
 The AFP needs a
procured
secure military
Drawings installation
 Only pre-qualified
 The actual drawings, including site plans, should contractors with security
be attached to this section, or annexed in a clearance are invited to
separate folder bid.
Bill of Quantities o Direct Contracting (Single Source
Procurement)
 To provide sufficient information on the  Used when only one supplier is
quantities of Works to be performed to enable available, or a specific brand is
Bids to be prepared efficiently and accurately; required for compatibility
and  Example: Procurement of a
 When a contract has been entered into, to Specific Bridge Component
provide a priced Bill of Quantities for use in the  A government-funded
periodic valuation of Works executed bridge project requires a
proprietary expansion
Checklist of Technical and Financial Documents
joint system available
Class “A” Documents only from one
manufacturer
 Valid PhilGEPS Registration Certificate (Legal)  The contractor directly
 Technical Documents purchases it from the
sole supplier
Class “B” Documents
o Repeat Order
 Financial Component Envelope  Allowed for procurement of
goods if the original contract
Types of Procurement Methods was awarded through
 From Republic Act No. 9184, also known as competitive bidding.
the Government Procurement Reform Act  Limited to up to 25% of the
(GPRA), and its Implementing Rules and original quantity and within six
Regulations (IRR) months from contract approval
 Example: Purchase of
Additional Streetlights
1. Competitive Bidding (Public Bidding)
 A city government
o The default method of procurement.
ordered 500 LED
o Open to all eligible suppliers, streetlights through
contractors, or consultants. public bidding
o Follows a strict process: advertisement,  Due to positive results,
pre-bid conference, bid submission, they request an
evaluation, post-qualification, and additional 100 units
awarding. from the same supplier
o Ensures transparency, competitiveness, under repeat order
and value for money. o Shopping
o Example: Construction of a National  Used for low-value goods and
Highway services
 The Department of Public  Two-types:
Works and Highways (DPWH)
SPECIALIZATION 1 – CONSTRUCTION MANAGEMENT

 50,000 and below – contractor to continue

requires price the work.
quotations from at least  Small Value Procurement – if
three suppliers the amount is within the
 Above 50,000 to threshold set by the procuring
1,000,000 – requires entity
written requests for  Example: Barangay
quotations from at least Road Repair
three suppliers  A local government
 Example: Small-Scale needs a minor road
Renovation of a Barangay Hall patching project worth
 A barangay needs to ₱200,000.
repair its office ceiling  They directly negotiate
due to minor leaks. with a small contractor
 The local government since the project cost is
seeks quotations from within the threshold.
three hardware stores  Agency-to-Agency
and selects the best Agreements – when
offer procurement is made from
o Negotiated Procurement another government agency
 Used in specific circumstances,  Example: DPWH
such as: Contracting PAGASA
 Two Failed Biddings – when for Weather Monitoring
two competitive biddings result Equipment Installation
in failure  The DPWH needs
 Example: Construction weather sensors for
of Provincial Hospital flood control projects.
 A provincial government  Instead of bidding, they
bids out a hospital enter into an agreement
project, but both with PAGASA, a
attempts fail due to lack government agency
of qualified bidders. specializing in
 They proceed with meteorology.
negotiated procurement
by directly selecting a
qualified contractor.
 Emergency Cases – for urgent
needs due to calamities,
disasters, or national security
concerns
 Example: Flood Control
Infrastructure After a
Typhoon
 After a strong typhoon,
the National
Disaster Risk Reduction
and Management
Council (NDRRMC)
urgently hires a
contractor to repair
dikes and drainage
systems to prevent
further flooding
 Take-over of Contracts – when
a previous contractor failed to
complete the project
 Example: Take-over of
Contracts: Unfinished
Government Housing
Project
 A developer failed to
complete a housing
project for calamity
victims.
 The government
negotiates with another