CE610 Construction Management HW-1
Review Questions (True or False)
1. The contract value of the designer, construction managers, subcontractors, material supplies,
finance companies, and testing agencies together equals about 10% of U.S
Bidding and Negotiations
Now that the Plans and Specifications are complete and all of the
regulatory permits and easements have been obtained, the project is
ready to go out to bid.
At this point the Construction Manag
Part 1: Time and Material change
Public vs Private
The cost of materials is based on upon the invoices.
During the First Part of Lecture, we discussed the Matrix that used to
evaluate the bids. One of the items t
Part 1: Shop Drawings
Shop Drawings show in detail the proposed fabrication or assembly of
project components. They are also used to indicate the installation, form
and fit of equipment being incorporated into the projec
Bidding and Negotiations for Natural Gas Pipeline Projects
Natural gas production in the United States is booming from hydraulic
Schedule is everything in gas pipeline project.
The project schedu
Design Report/Technical Memorandum
List Required Permits
Public Clients will have a very structured
The new industrial/treatment process or equipment has been installed,
certified and tested it now has to be commissioned.
The Owner personal have to be trained and the equipment has to inte
Project Life Cycle
Personally there is nothing more rewarding than thinking a project
from a basic concept, through design and actually witnessing the
project commissioned and put into operation.
As Engineers, Architect
CE610 Construction Management
1. List the Four (4) definitions of prior negative experience.
1) The bidder has been found, through either court adjudication, arbitration, mediation, or other
contractually stipulated alternate dispute resol
1. The construction managers cash flow and financing cost of this cash flow can exceed project
False. Poor cash flow management and the resulting high finance costs is a common cause of
construction firm bankruptcy and failure.
2. The future value
1.7 Laws, Regulations, Codes, and Standards
1. Laws by legislatures, regulations by unelected government staff, codes by national coderelated organizations, and standards by trade organizations all establish the regulatory
framework for construction proje
1. Insurance costs can be greater than project profit, and preclude contractors from securing
needed projects or even forcing them out of business.
True. Insurance is a large portion of project cost than profit. This large insurance cost is variable a
1. Time has costs and impacts managed and measured with scheduling and cost management.
True. Time is measured and managed directly with scheduling, and the direct cost impact is
measured with cost management.
2. The time impacts of indirect costs are
1. Order of magnitude estimates are needed to initiate planned project. Identical methods are
used to estimate costs and to estimate time.
False. Order of magnitude estimates are needed to initiate and plan the project, but these order of
1. Contract document accuracy is highly important. Spelling, punctuation, dates and names can
all determine winners and losers in later disputes.
True. Contracts document precise agreements, so the contract and all documentation leading up to
3.4 A consultant has estimated that the demand (D) for a particular product can be approximated by the
following equation for prices between $200 and $800:
The supply (S) for this product can be estimated as follows:
S=500+ 0.5 P
a. What will be t