BUSTILLO, CRIZA JANE A.

BSCE 4B
CE PRO 2
LESSON 1 AND 2 TAKEAWAYS

LESSON 1: INTRODUCTION, CONSTRUCTION, PROJECT CYCLE, PREPARING A BID PACKAGE, BIDDING

In every project successfully acquired by a contractor it goes through different phases to finish it
before or on ends meet or what we call the deadline and it actually encompasses project processes in
making it possible.

1. INITIATION PHASE - the validation of the project. Analysis comes in where the project manager
and its team have to validate every papers needed to proceed on planning and to further have a more
clear idea and other expected necessities that needs to be dealt with initially.

These are: project idea, business care, nature, goals, scope, project charter, feasibility study, risks,
success criteria, stakeholders and financial analysis.

2. PLANNING PHASE - a detailed plan on how to execute the project. The plan must be thoroughly
break down into small tasks in order for the whole team to function and while making sure that it is
achievable within the time frame.

These are: tasks, schedules, budget, resources, quality, risks, procurement, communicatuon plan

3. EXECUTION PHASE - turns your plan into action. The project manager’s job in this phase of the
project management life cycle is to keep work on track, organize team members, manage timelines, and
make sure the work is done according to the original plan.

4. MONITORING AND CONTROL PHASE - parallel to execution phase. Ensure that team members
are meeting their time and quality goals for tasks.

5. CLOSING PHASE - Detailing and finalization of the project for final deliverables. Also, eventhough
the project is done, it has to be recorded and evaluated in which the experience and knowledge
acquired in here could be useful for future projects.

• Each phase of construction has its own set of defined tasks and objectives. If performed thoroughly,
they establish the strategic framework for a successful project.
T2– DEFINITION OF TERMS

Construction Bidding - process of submitting a propos to undertake, or manage the undertaking of a

Bid - Refers to a signed offer or proposal to undertake a contract submitted by a bidder in response to
and in consonance with the requirements of the Bidding Documents. For purposes of, and throughout
this IRR, the term “Bid” shall be equivalent to and be used interchangeably with “Proposal” and
“Tender”.

Bidder - Refers to an eligible contractor, manufacturer, supplier, distributor and/or consultant

Bidding Documents - Refer to the documents issued by the procuring entity as the basis for bids,
furnishing all information necessary for a prospective bidder to prepare a bid for the infrastructure
projects, goods and/or consulting services required by the procuring entity.

Procurement - Refers to the acquisition of goods, consulting services, and the contracting for
infrastructure projects by the procuring entity. In case of projects involving mixed procurements, the
nature of the procurement, i.e., goods, infrastructure projects, or consulting services, shall be
determined based on the primary purpose of the contract. Procurement shall also include the lease of
goods and real estate. With respect to real property, its procurement shall be governed by the
provisions of R.A. 8974 and other applicable laws, rules and regulations.

Procuring Entity - Refers to any branch, constitutional commission or office, agency, department,
bureau, office, or instrumentality of the GOP (NGA), including GOCC, GFI, SUC and LGU procuring goods,
consulting services and infrastructure projects.

Subcontractors - are companies or individual people that you hire to help you complete a project. They
report to you and not the client, and as the contractor, you manage their project duties, payments, and
any other business actions.

Contractors - When clients hire you to work on a specific project or on a freelance basis. They are
responsible for planning, leading, executing, supervising and inspecting a building construction project.
The responsibility extends from the beginning to the end of the project, regardless of its scope.

Contractors' all risks (CAR) insurance - is a non-standard insurance policy that provides coverage for
property damage and third-party injury or damage claims, the two primary types of risks on construction
projects.

Lump sum contract - is a construction agreement in which the contractor agrees to complete the project
for a predetermined, set price.

Bid Package - means the package of documents Borrower's general contractor is required to distribute
to potential bidders as part of the process of selecting subcontractors for the Development.

T3– PREPARING A BID PACKAGE

The Bid Package is to include the following:

(i) an invitation to bid;

(ii) copy of the proposed construction contract;

(iv) all Construction Plans.

• A set of documents that contain the scope of work, specifications, drawings, and general conditions
for a project or job. Prospective contractors should be able to review the bid package and develop
their cost estimates and schedules for the work.

T4– BIDDING PROCESS

1. Bid Solicitation

2. Subcontracting

3. Bid Submission

4. Bid Selection

5. Contract Formation

6. Project Delivery

• In bidding for the project, suppliers usually try to submit their lowest possible price for consideration
by the awarding body (the client). However, this may not be the sole criterion in selection as the
supplier's experience, qualifications, availability, quality and so on may also be considered.

• Although the construction bidding process can seem daunting, there is a guaranteed way to simplify
it. As an owner, the no-fail way to ensure you get the best value for your project is by hiring
trustworthy subcontractors and general contractors.

T5– BIDDING REQUIREMENT

• When a contractor fails to abide by any of the conditions of the contract, the surety and contractor
are both held liable.

Company getting a Construction bond steps:

1. Reviewing job requirements to see if a construction or contract bond is needed.

2. Getting a bid bond from the surety agent and submitting it with the proposal.

3. If awarded a contract, approaching the agent for a performance bond.

4. Completing the job.

5. Getting a maintenance bond, if required, once the job is completed to do any repairs.
LESSON 2: ISSUES DURING CONSTRUCTION PHASE, CONTRACTS AND SPECIFICATIONS, CONSTRUCTION
CONTRACTS

T1— CONTRACTOR'S ROLE

• Duties and responsibilities of a contractor during the construction phase are kept in mind to avoid
some mistakes, damage and loses on their counterparts. It would be considered as a breached of
contract if he did not meet the conditions needed to be fulfilled.

T2— ISSUES DURING CONSTRUCTION PHASE

1. Site Layout

2. Time Extension

3. Change Orders

4. Changed Conditions

5. Value Engineering

• During the process, there could be an occurence of change in some parts that can be costly in time,
effort and money but avoiding to waste an amount invested from the initial plan. Modifications or
improvements may be added or not, as long as there is an agreement between the contractor and the
client. It could be beneficial either to your company or your project.

T3— CONTRACTS AND SPECIFICATIONS

• The agreement should contain several sections of clauses defining the scope, terms, and conditions
of the project, including what work will be done, the project schedule, payment terms, legal
requirements, how disputes will be resolved, and more.

T4 — DEFINITION OF TERMS

Contract - a legal agreement, usually between two companies or between an employer and employee,
which involves doing work for a stated sum of money.

Construction contract agreement - is a document that sets the scope and terms of work for a
construction project. It is an agreement between the contractor doing the construction and the person
or company who hires them to do the work.

Progress payment - is a regular payment for the contractor's expenditures and fee or markup for the
portion of the work performed.

Retainage - is an amount of money that owner holds back as an incentive for the contractor to properly
complete the project.
Liquidated damage - is the damage to the owner due to contractor overrunning the day of the project
completion. The contractor pays for each day overrunning a sum equal to the sum lost by the owner.

T5 — CONSTRUCTION CONTRACT

• A construction contract agreement protects the legal and financial stake of everyone involved in a
construction project. Neither the owner of the construction company nor the owner of the property
should start a construction job without one.