CE142-Construction Methods & Project

Management

LECTURE -2
Participants
in the
Construction Project
Dr. J. BERLIN P. JUANZON

CE, MBA, MSCM

PARTICIPANTS IN THE
CONSTRUCTION PROJECT
1. Owner / Client

Private or public
Conceives the construction
project
Increasing level of
sophistication

Classification of Clients Sector:

1. Public owners consist of national and local government
agencies or units tasked to implement construction
projects intended either for public use (roads, bridges,
ports, dams, parks, and similar works) or for public
service(government buildings and other facilities or
structures for the development of the national wealth).
2. Private owners, on the other hand, are non- governmental
entities requiring services for residential, commercial,
and/or industrial construction.

Participants in the Construction Process

2. Designer

Architects

Size of firms ranging form single

practitioner to large integrated firms
Mostly building and residential
construction

Engineers

Civil, mechanical, structural,

electrical,chemical, environmental,
geotechechnical, and multidiscipline

Participants in the Construction Process

3. General Contractor

General contractor also called Prime

contractor
Specialty contractors working as
subcontractors
Organization ranges from small, one-person
company to large, integrated A/E/C firms
Part of a design-build team

Participants in the Construction Process

4. Construction Manager

Two principle divisions of CM

CM for Fee (management services only)

CM At Risk

Operates similarly to a GC or DB with

no labor or capital equipment
Can encompass the management of the
design process as well as construction
CM services including inspection and
overall project or program management

Participants in the Construction Process

5.

Suppliers

6.

Fabricators

7.

Manufactures, distributors, research, promotions

Materials and equipment sales
Equipment Rental
Structural steel, pre-castors, wood products

Labor/Trade Unions

8.0 Government
Two major types of governmental
project owners:
1. Infrastructure Agencies - are
those whose primary function is to
provide (either by contract or by
direct administration) the necessary
public works or facilities within
their areas of responsibility.

The bulk of public construction projects are

implemented by three major infrastructure
agencies:

1. Department of Public Works

and Highways (DPWH),
2. Department of Transportation
and Communication (DOTC), and
3. Department of Energy (DOE).

Under these three agencies are several offices

and government corporations also classified as
infrastructure agencies. These include the:
National Power Corporation (NPC)
National Irrigation Administration(NIA)
National Electrification Administration (NEA)
Philippine Ports Authority (PPA)
Local Water and Utilities Administration (LWUA)
Bureau of Air Transportation (BAT),

Philippine National Railways (PNR),

Light Railways Transit Authority
(LRTA).
National Housing Authority (NHA).
Most of these agencies have decentralized
organizational structures which allow for
infrastructure planning and delivery at the
regional and district levels.

Participants in the Construction Process

9. Utility Companies

Electric, communications, water,

gas,sanitary sewer

Private petroleum pipelines

Owner or service provider

Integral part of the process

Existing facilities in conflict with new

construction

Interruption of service can be very

costly

Participants in the Construction Process

10. Industry Associations

Organizations of construction
contractors

Organizations of the design and

management professions

Construction material and equipment

suppliers and product research

Construction labor organizations

Coordination and arbitration

Inspection, specifications, and costs

10. Industry Associations

Functions and services

Industry information and communication

Development and maintenance of
standards
Industry coordination
Collective bargaining
Statistics (market & industry)
Meetings and conventions

Project Delivery Organization

Construction by owners forces
Owner-managed construction
Construction by general contractor
Design-build team
CM Contract

Construction employing owner

forces

Usually small in-house construction or

renovations
Industrial projects or institutional (such as
hospitals or schools

Owner-managed construction
Residential/commercial building developers
Industrial or institutional

 Construction by General Contractor

Also referred to as Prime Contractor
Most common method of delivery
Contractor bears substantial risks and financial
responsibility
Facility designed by in-house architect/engineer
or by design consultants
Often requires specialty subcontractors

Specialty contractors might include those

specializing in one of theClearing
following:
and grubbing
Excavation
Steel erection
Concrete
Cast-in-place
Prestressed/Precast
Masonry
Timber/wood

framing
Piping/plumbing

Blasting/demolition
Electrical
Painting
HVAC
Environmental
remediation
Many, many others

 Design-Build (Turnkey)
Single firm or team responsible for design and
construction minimizes coordination problems
More efficient designs with the interjection of
constructibility and innovation
Often employs fast-track construction
Benefits include reduced overall delivery time
and one-stop shopping for the owner
Disadvantages include complexity of evaluating
proposals

 CM Contract -- Fee (management services

only) also referred to as Agency
Specialized construction skills through all project

stages including preconstruction

Provides close coordination between design and
construction
Eliminates impact of conflicts of interest
Independent and objective evaluation of costs,
schedules, and performance
Potential saving in time and cost
Disadvantages include no risks associated with
costs increase

 CM Contract At-Risk
CM assumes financial risks similar to a GC
CM manages all phases of the work without
performing any actual work tasks
CMs only resources are management personnel
Contractors/subcontractors have a direct
contract with CM
Contract form is often a negotiated guaranteed
maximum price arrangement
Disadvantages includes lack of impartiality