Policies of Management of Construction Projects

By: Haseeb Jamal / On: Jun 18, 2017

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.

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