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Policies of Management of Construction Projects

By: Haseeb Jamal / On: Jun 18, 2017
Highway Construction Management Project

Policies of Management

  • Factors contractors consider in deciding whether or not to bid a particular project include:
    • Location of the work
    • Factors Contractors Consider
      • Identity of the owner
      • Availability of key company personnel
      • Experience in the type of work solicited
    • Factors Contractors Consider
      • Whether or not there is financing for the project
      • Size of the project.

Policies of Management

Bid Preparation

Bid preparation is expensive! In preparing a bid, contractors must consider the costs of:

  • Equipment
  • Labor
  • Materials
  • Subcontractors

Consider the costs of:

  • Job and company overhead, contingency, and profit
  • Should also consider the number of competitor bidders and the bidding history of those competitors on similar projects

Award Phase

  • Owner provides:
    • Builder’s Risk insurance
  • Successful bidder must provide:
    • Payment and performance bonds
    • Workers compensation insurance
    • Liability insurance
    • List of subcontractors
    • Detailed project schedule

Notice to Proceed

Contractor cannot begin the work until the Notice to Proceed is received – so Use the time between bid opening and contract award for detailed pre-project planning.

Pre-project planning

Planning how the work will proceed and in what sequence

  • Construction procedures
  • Type of equipment to be used
  • Job access
  • Location of the field office and storage areas
  • Final selection of subcontractors and suppliers

Pre-project planning

  • Cash flow analysis should be completed to determine if the company needs to borrow money
  • Detailed project schedule is prepared
  • Work break down (WBS) and pay schedule are planned

Construction Phase

Size of the contractor’s on-site project management organization is a function of the size and complexity of the project.

Project Management Team



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