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Introduction to construction

Instructor: Solomon Abebe

management
ARCH 4341

1
PRESENTATION OUTLINE
1. Construction Project

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2. Phases of a Construction Project
3. Importance of Construction and Construction Industry

Instructor: Solomon Abebe

4. Indian Construction Industry Vs. Ethiopian
5. Construction Management
6. Importance of Planning, Scheduling and Controlling
Projects
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 1. CONSTRUCTION PROJECT
Project :

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A Project is defined as a temporary endeavor
undertaken to create a unique product/service/results.

Instructor: Solomon Abebe

Product:
The product in case of a construction project is the
constructed facility such as a building, a bridge, a
highway, a dam, a canal, a factory etc. 3
CONSTRUCTION PROJECT…
•Construction projects involve varying

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manpower and their duration can range
from a few weeks to more than five years.

Instructor: Solomon Abebe

•Each construction project is ‘unique’ and
‘temporary’ in nature and so is the
management involved.
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CONSTRUCTION PROJECTS…
Unique Features of a Construction Project
One time activity

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A start and finish
Complexity

Instructor: Solomon Abebe

Involvement of several people on an adhoc basis
Limited set of resources
High cost
A time frame for completion
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High risk of failure
Difficulty in defining quality standards
Sequencing of activities and phases

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No practice/rehearsals
Uniqueness of people relationship

Instructor: Solomon Abebe

Lack of experience of client/owner
Feedback mechanism
High level of subcontracting
Uncertainty exists 6
2. PHASES OF A CONSTRUCTION
PROJECT

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A. Briefing stage
B. Designing stage

Instructor: Solomon Abebe

C. Tendering stage
D. Construction stage
E. Commissioning stage 7
A. Briefing stage
• This stage is also called the ‘Report stage’.
• It is the stage where ideas originated by individuals

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are studied with regard to cost and benefits so as to
establish the economic viability/social utility of a

Instructor: Solomon Abebe

project.
Purpose
• The purpose of the briefing stage is to enable the
client to specify project functions and permissible
costs.
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Activities (Briefing stage)
• To appoint a project committee, if necessary.
• To appoint a project manager who will have a continuing
responsibility to the client through out the construction project.

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• To carry out technical and non-technical investigation so that
alternative proposals may be given due consideration.

Instructor: Solomon Abebe

• To study the various alternatives and identify the most
feasible one.
• To prepare the project report which is the outcome of the first
stage.

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Feasibility report
• Technical analysis

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• Economic analysis

Instructor: Solomon Abebe

• Financial analysis
• Ecological analysis
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B. Designing stage
• It is a very important stage in the field of construction
because any modification of the project after this stage

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would prove expensive.
• A realistic and detailed cost estimate of the project can

Instructor: Solomon Abebe

be prepared during the design stage.
Purpose
• The purpose of this stage is to complete the project
summary and determine the method of construction and 11

estimated costs so as to obtain necessary approvals

Activities (Designing stage)
• To develop the project summary for the final adoption
of the most suitable alternative.
• To carry out technical investigations such as,

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– Soil investigation

Instructor: Tesfahun Gebrie (Kesis)

– Topographic investigation
– Materials surveys
– Market surveys
• To prepare detailed design, working drawings, 12

specifications, bill of quantities, final cost estimate and

C. Tendering stage
• During this stage tenders are invited and the
contract is awarded at the best available terms

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agreed mutually between the owner’s team and
the contractors.

Instructor: Solomon Abebe

Purpose
• The purpose of the tendering stage is to appoint
a contractor who will undertake the construction
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work on the most suitable terms and conditions of
quality, cost and completion time.
Activities (Tendering stage)
• To invite tenders from the contractors for the
construction work and to award the contract.
• Pre-qualification of contractors involves an

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investigation of the potential of contractor’s financial,

Instructor: Solomon Abebe

managerial and physical resources, contractor’s
experience of handling similar projects, etc.
• To prepare contract documents, to be signed by the
client and the contractor.
• Holding a pre-bid conference and providing the 14

necessary information.
Activities (Tendering stage)
• Negotiating contract price with qualified
contractor.

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• Reviewing documents submitted by

Instructor: Solomon Abebe

contractor.

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D. Construction stage
• The construction stage involves the execution
of construction work as per the design,

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drawing and within agreed limits of time, cost
and specified quality.
Construction Planning Activities
• Construction schedule
• Manpower schedule
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• Material delivery schedule
• Plant and equipment schedule Instructor: Solomon Abebe
Control of site operations Activities
• Supply of materials and equipment
• Supervision for quality control

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• Co-ordination among sub-contractors

Instructor: Solomon Abebe

• Supervision for quality control
• Supply of necessary drawings
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E. Commissioning stage
• It is the stage in which the performance of the
structure is evaluated and the proposed nature of

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maintenance and repair are considered.

Instructor: Solomon Abebe

Purpose
• The purpose of this stage is to ensure that the
construction work has been carried out as per the
drawing and specifications and all the facilities
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developed function properly as envisaged in the design.
Activities (Commissioning stage)
• To keep various records of actual work.
• To inspect the construction work thoroughly

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and have any defects rectifies.

Instructor: Solomon .A
• To prepare operating instructions and
maintenance manuals.
• To carry out tests for performance, such as
water tightness, strength etc. 19
3. IMPORTANCE OF CONSTRUCTION AND
CONSTRUCTION INDUSTRY
• Construction is an important part of real estate

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and infrastructure such as:

Instructor: Solomon.A
• Real estate
– Residential
– Industrial
– Corporate 20

– Commercial
 – Urban infrastructure
– Ports
– Airports
– Power

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• The importance of construction can be gauged

Instructor: Solomon.A
from the fact that cost of construction of certain
infrastructure projects may be as high as 60 to
80% of the total project cost.

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• Construction is recognized as the basic input for
socio-economic development of a country.
• Since construction industry is dependent on a

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number of industries, its growth in other

Instructor: Solomon.A
industries as well.
– Development of building materials industry
– Development of construction equipments
industry 22
•Construction products such as buildings,
bridges, roads, power plants have a long life
as compared to the products of other

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industries.

Instructor: Solomn.A
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 4. INDIAN CONSTRUCTION INDUSTRY
Factors in favour of Indian construction industry
• Availability of cheap labour

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• Availability of qualified professionals

Instructor: Solomon.A
• Large number of construction companies
• Actual shortage of housing
• Boost from the government
• Growth in industrial sector
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 INDIAN CONSTRUCTION INDUSTRY (Cont.)
Factors against the Indian construction industry
• Low productivity

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• Low ratio of skilled to unskilled workers
• High cost of finance

Instructor: Solomon.A
• Complicated tax structure
• Presence of small contractors who lack financial and
technology backup
• Negligible investment in R & D 25

• Competition from multinational companies

Investment Opportunities in Construction in
India
• Construction development in residential, retail,

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commercial and hospitality sectors
• Technology and solutions for smart sustainable

Instructor: Solomon.A
cities
• Technology for the promotion of low cost
housing
• Green building solutions 26

• Smart cities
• Training and Skill development of
construction sector workers
• Urban water supply, Sewage, Sewage

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treatment, Solid waste management

Instructor: Solomon.A
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 5. CONSTRUCTION MANAGEMENT
• Project Management is the art and science of
mobilising and managing people, materials,
equipment and money to complete the assigned

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project work on time, within budgeted costs and

Instructor: Solomon.A
specified technical performance standards.
• Construction Management may be defined as the
management in which group of people of different
categories works together, to execute the project
economically without affecting the quality in a well 28

planned and organized manner.

Scope of Construction Management
• Planning and estimating
• Execution of works
• Financial management

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• Material management

Instructor: Solomon.A
• Equipment management
• Labour management
• Site layout
• Equipments and Materials plant location
• Labour relationships 29

• Industrial psychology for smooth flow of work

Need of Construction Management
• Co-ordination between different agencies
• Economy in Construction

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• Development of management and machinery

Instructor: Solomon.A
• Speed of Construction
• Quality Control of materials and workmanship

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Objectives of Construction Management
• Completing the work within estimated budget.
• Completing the work within specified time.
• The Quality and workmanship should be better.

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• The work should be executed as per specification.
• Providing safe and satisfactory working conditions for all
personnel and workers.
• Taking sound decisions at the lowest practical management
level through delegation of authority.
• Motivating people to give their best within their capacities. 31
• Creating an organization that works as a team.
Instructor: Solomon.A
Phases / Functions of Construction Management
• Planning and Scheduling
• Organising
•

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Staffing
• Directing
•

Instructor: Solomon.A
Controlling
• Co-ordinating
• Communication
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Planning - Planning involves formulation of a number
of alternative of realistic work plans for achieving
specified objectives and finally selecting a plan which is
best suited from the standpoint of available resources

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and constraints imposed upon the project.
• Planning is the administrative process which translates

Instructor: Solomon.A
the policy into a method of achieving the objectives.
• How a project will be carried out?
• What materials will be used?
• What equipment and machineries will be utilized? 33
• What men and staff will be employed?
Scheduling - Scheduling is the fitting of the final work plan to a
time scale.
It shows the duration and order of various construction activities.
‘When to do?’

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• Time plan
• Resources plan

Instructor: Solomon.A
• Plan for controlling project
• Schedule of design and drawing preparation
• Work quantities
• Progress of work planned
• Resource allocations 34

• Budget costs
Organising – Organising is concerned with division
of the total construction work into manageable sections
and systematically arranging various operations by
delegating specific tasks to individuals.

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Instructor: Solomon.A
Staffing – Organizing involve the division of the
project work into sections and staffing is the provision
of people to fill the positions so created.
• Staffing functions- Recruiting the right people,
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Arranging staff training courses, Carrying out proper
staff assessment
Directing – The directing function is concerned with training
sub-ordinates to carry out assigned tasks, supervising their
work and guiding their efforts.
• The essence of directing lies in the ability to motivate

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people individually and as groups to utilize their creative

Instructor: Solomon.A
efforts in achieving specified objectives.
Controlling – Controlling is necessary for ensuring effective
and efficient working.
• It involves a constant review of the work plan to check on
actual achievements and to discover and rectify deviations 36
through appropriate corrective measures.
Co-ordinating – This is a process where the
framework of the organization is made to operate
smoothly with the flow of information, decisions

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and results in every direction.

Instructor: Solomon.A
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 7/28/2022
Instructor: Solomon,.A
6. Importance of Planning, Scheduling and
Controlling projects

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Planning
• Planning aims at formulation of a time based plan of action
for co-ordinating various activities and resources to achieve
specified objectives.

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• Planning is the process of developing the project plan.

Instructor: Solomon.A
Benefits (Planning)
• Project plan clearly defines project’s scope of work.
• Project plan aids the management in performing its functions
efficiently and effectively.
• Project plan identifies critical activities. 39
• Project plan provides the yard-stick for measuring progress
and evaluating resources performance.
Benefits (Planning)…
• A project plan maintains continuity of work, specially
when project organization is temporary and its
staffing is transient in nature.

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• Project plans provide the basis of coordinating the

Instructor: Solomon.A
efforts of clients, consultants, architects, designers,
quantity surveyors, suppliers, contractors and the
project staff.
• Project plan creates healthy environment.
• It commits individuals to tasks and motivates them to 40

achieve challenging targets.

Benefits (Scheduling)
• Schedule simplify a project plan.
• Schedule validates time objectives.

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• Schedule aids in the optimization of resources
employed.

Instructor: Tesfahun Gebrie (Kesis)

• Schedule enables forecasting of input resources like
man, materials and machinery.
• Schedule brings out implications of time and
resources constraints.
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Benefits (Controlling)
• The control system aids the management at various
levels to perform its functions efficiently and
effectively for achieving the overall project

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objectives.

Instructor:Solomon.A
Benefits (At each level of management for Controlling)
(a) Operational control at supervisory level
(b) Administrative control at managerial level
(c) Directional Control at General Manager (GM) /
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Project Manager (PM) level
Benefits (At each level of management for
Controlling)…
(a) Operational control at supervisory level
• Minimizing unproductive man hours

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• Preventing wastage of materials

Instructor: Solomon.A
• Economizing plant and machinery utilization
• Reducing activity execution time
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(b) Administrative control at managerial level
• Updating the work quantities status and determining
the balance scope of work

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• Analyzing project time status
• Evaluating production cost status and forecasting

Instructor: Solomon.A
future trends
• Calculating income status and forecasting cash
inflows
• Computing budget status and forecasting cash 44

inflows
(c) Directional Control at General Manager (GM) /
Project Manager (PM) level
• Analyzing project time – cost behaviour and making
decisions on time saving when required

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• Reviewing project cost and profitability, and making

Instructor: Solomon.A
profitability improvement decisions
• Auditing management’s performance
(d) Strategic control at corporate level
• Determining overall profitability
• Budgeting and allocating funds and resources 45

• Updating the company’s planning norms and unit rates for

Construction Project Categories
• Building construction
• Infrastructure construction

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• Industrial construction

Instructor: Solomon,A
• Special – purpose projects

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Building construction
• Residential buildings
• Commercial buildings

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• Educational buildings

Instructor: Solomon.A
• Recreational buildings
• Hospitals and hotels
• Warehouse and marketing facilities
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Infrastructure construction
• Highways and expressways
• Dams and canals

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• Airports
•

Instructor: Solomon.A
Railways
• Bridges
• Oil / gas pipelines
• Large water supply and sewerage networks
•
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Docks and harbours
• Nuclear and thermal power plants
Industrial construction
• Construction of steel plants
• Petroleum refineries

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• Chemical and Fertilizer plants
•

Instructor: Solomon.A
Consumer goods factories
• Automobile and aircraft industry

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Special – purpose projects
• Environmental works
• Emergencies

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• Remedial works
•

Instructor: Solomon.A
Installation and commissioning of equipment
Classification of projects based on completion time
• Large duration projects (over 10 years)
• Medium duration projects (3 to 10 years)
• Short duration projects (few months to 3 years) 50

• Special short term projects (less than 1 year)

Classification of projects based on project value
• Mega value projects (say over $1000 million)
• Large value projects ($ 100 million to $ 1000

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million)

Instructor: Solomon.A
• Medium value projects ($ 10 million to $ 100
million)
• Small value projects (less than $ 10 million)

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Classification of projects based on plant and
equipment.
Light Construction

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• Residential buildings

Instructor: Solomon.A
• Educational buildings
• Recreational buildings
• Commercial buildings
• Schools, hotels
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• Small bridges, water tanks
Classification of projects based on plant and
equipment …
Heavy Construction

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• Dams, barrages, tunnels

Instructor: Solomon.A
• Highways, railways, airports
• Harbours
• Multispan bridges with well / pile foundations

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Resources for Construction Industry
• Man power
• Money

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• Materials

Instructor: Solomon.A
• Machinery

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Resources for Construction Industry…
• Man power – Man power in the form of technical and
managerial personnel and work force in various trades is
essential to carry out project activities.

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• Money – Adequate funds should be available for smooth

Instructor: Solomon.A
implementation of the project.
• Materials – bricks, steel, stones, timber, aggregate,
scaffolding, cement, water supply and sanitary fittings, lime,
petrol, oil, lubricants
• Machinery – batching and mixing plants, Mixers, crushers, 55
Trucks, dumpers, tractors, Rollers, Powers, Cranes,
excavators, hoist, Pumps, generators
Stakeholders of a Construction Project
(Construction Team)
• Owner

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• Engineers / Architects

Instructor: Solomon.A
• Contractors

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Owner – The owner in a building or engineering project may
be an individual, group of individuals, private or public
undertaking.

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Responsibilities of the owner
• The owner is supposed to provide necessary site on which

Instructor: Solomon.A
the proposed work is to be constructed.
• The owner should appoint an engineer, to look after the
technical requirements of the work.
• The owner should supply necessary plans and working
drawings through his architect to the contractor in time so 57
that the work is not unnecessarily delayed.
Responsibilities of the owner…
• The owner should respect the conditions of contract
concerning his powers and duties.
• The owner should provide necessary work front to the

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contractor so that work is not delayed.

Instructor: Solomon.A
• The owner should make necessary arrangement for the
funds required for the construction of the work so that
regular payments shall be made to the contractor.
• It is desirable that the owner should pass all the instructions
to the contractor through his engineer. 58
• The owner should supply materials and issue machinery, if
it is a part of the contract.
Responsibilities of the owner…
• The owner should make arrangements to record the
measurement of items in time before they are covered up in
the subsequent execution of work.

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• The owner should not interfere with the progress of the

Instructor: Solomon.A
work and should not pass such instructions which will lead
to the problems of extra items, liquidated damages, etc.
• The owner should not suspend the work temporarily unless
it appears to be in his interest to do so.
• To take over possession of the completed work timely from 59
the contractor.
Engineers and architects
• This includes structural, mechanical and electrical
engineers, architects, quantity surveyors, specialists

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such as structural consultants, safety and maintenance
planners, soil investigators etc.

Instructor: Solomon.A
Responsibility of engineer
• To organize and supervise the execution of work and
to see that they are suitably and economically carried
out with specified quality of materials. 60
Engineers and architects…
• It is the duty of the executive engineer to prepare
estimate of proposed works through his subordinates

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and submit the same to his superintending engineer.
• The engineer is responsible for explaining the plans

Instructor: Solomon.A
and provisions of the specifications.
• The engineer is responsible for giving all lines and
levels required in connection with the work.
• It is his duty to invite tenders for works valued within 61

his power, after obtaining administrative and technical

Engineers and architects…
• In certain complicated items, the engineer should
give the sequence of operations and should explain

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method of construction in detail to the contractor.
• It is duty of the engineer to prepare specifications for

Instructor: Solomon.A
the work and to see that these specifications are
accurate, proper and reasonable for the work.
• The assistant engineer is responsible for taking
detailed measurement of works during progress and to 62
enter the same in M.B. and prepare bills for payment.
Engineers and architects…
• To see that machinery likely to be used on works are
properly maintenance and safely house.

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• To keep tools and plants in working conditions and
arrange to protect surplus stock from deterioration.

Instructor: Solomon.A
• To prevent encroachment on government lands under
his division.
• The engineer is responsible for the acts of his
assistants or other agencies employed by him. 63
• It is also the duty of the engineer to assist the court of
Contractor
• The contractor may be an individual undertaking
small or big need the services of qualified engineers.

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Responsibilities of the contractor
• The contractor is responsible to provide all the

Instructor: Solomon.A
materials, labour, equipments, etc. required under the
provisions of the contract for the execution of the
work.
• The contractor should carry out the work as per plans 64
and specifications and as per directions given by the
engineer
Responsibilities of the contractor…
• The contractor should inform the supervising engineer
before taking up any new item and before covering up of
any work.

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• The contractor should appoint a qualified person on site

Instructor: Solomon.A
of the work to whom instructions and directions can be
imparted.
• The contractor is responsible for any damage to the
persons or adjoining properties during execution of the
work. 65

• The contractor should submit the bills of work as and

Responsibilities of the contractor…
• The contractor is responsible to respect all the
prevailing labour laws and should make regular
payments to his labourers as well as to the

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subcontractors.

Instructor: Solomon.A
• The contractor should give all the required assistance
to the engineer for establishing the lines and levels of
the work.
• • The contractor is responsible for arranging for the
66
permit of the controlled materials and for paying fees
and royalties for the use of patented articles.
Responsibilities of the contractor…
• The contractor is responsible for the safety of all the
labourers and personnel working at the site and
should provide safety shoes, helmets etc. to the

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workmen.

Instructor: Solomon.A
• To handover the completed work in a sound
condition.
• The contractor should submit his claims for extra
items in due time.
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Interaction between Owner, Engineer and Contractor
1. Co-relation between the Owner and an Engineer
• As the owner finances the project and employs an

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engineer who agrees to perform his professional duties
with reasonable efforts and skill.

Instructor: Solomon.A
• If an engineer makes an unfortunate mistake, in spite
of due skill, he is not liable for his mistake unless the
owner proves that he failed to perform his duty
carefully.
• It is responsibility of the engineer to plan things for the 68

owner economically.
Interaction between Owner, Engineer and Contractor
2. Co-relation between an Engineer and Contractor
• There is much co-relation between an engineer and a

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contractor as the latter executes the work in strict
supervision of the former.

Instructor: Solomon.A
• The contractor has to work as per the design and
drawing in consultation with the engineer to avoid
any dispute.

69
Causes of delay in construction project
• Unexpected site conditions
• Difficulties in availability of materials

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• Difficulties in availability of labours
• Weather conditions – heavy rain

Instructor: Solomon.A
• Delay in issue of construction drawings
• Lack of liaison between contractor and Engineer
• Delay in clarifying bills
•
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Cash flow and financial constraints
• Dispute between contractor and owner/engineer
Engineer and Construction Economy
• To adopt such construction methods which would
result in the lowest practical cost of the project.

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• Using as simple design as possible.
• Making use of locally available materials.

Instructor: Solomon.A
• Encouraging the use of materials of commercial
sizes.
• Making use of cost saving equipments and adopting
proper construction methods. 71

• Furnishing adequate foundation details, wherever

Engineer and Construction Economy…
• Using standard specifications with which the
contractor is familiar.

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• Providing suitable checks on costs of labour,
materials, equipments, supervision charges, etc.

Instructor: Solomon.A
• Engaging supervisors who have sufficient judgement
and experience in construction.
• Providing necessary work front to the contractor to
avoid any delay in construction 72
Contractor and Construction Economy
• Pre bidding studies of the project on the following aspects
will effect economy.
– Topography of the area

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– Climate

Instructor: Solomon.A
– Sources of materials
– Geology
– Availability of labour
– Local services, power, fuel, water
– Access to the site 73

– Storage facilities for materials and equipments

Contractor and Construction Economy…
• By employing trained and experienced staff.
• Using alternate construction equipment having higher
capacity and efficiency but lower operating cost.

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• Maintaining the construction equipments in proper working

Instructor: Solomon.A
conditions.
• Maintaining an atmosphere of co-operation with the labour
force.
• Giving liberal incentives to the labour force for greater
output. 74
• Adopting reliable safety measures to reduce accidents.
Contractor and Construction Economy…
• Holding periodic meeting with key personnel and
concerned design engineers to discuss plans,

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procedures and results.
• To satisfy himself with a reasonable percentage of

Instructor: Solomon.A
profit.
• Appointing sub-contractors for the specialized
operations.
75
 THANK YOU!!!

Instructor: Solomon.A 7/28/2022

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