CONSTRUCTION

PROJECT
MANAGEMENT
HANDOUT, contents lifted from PMBOOK

MARCIANO B. APILADO, C. E., Ed. D.

Professor

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What is Project Management?
The management of construction projects requires knowledge of modern
management as well as an understanding of the design and construction
process. Construction projects have a specific set of objectives and
constraints such as a required time frame for completion. While the relevant
technology, institutional arrangements or processes will differ, the
management of such projects has much in common with the management of
similar types of projects in other specialty or technology domains such as
aerospace, pharmaceutical and energy developments.

Generally, project management is distinguished from the general

management of corporations by the mission-oriented nature of a project. A
project organization will generally be terminated when the mission is
accomplished. According to the Project Management Institute, the discipline
of project management can be defined as follows:

Project management is the art of directing and coordinating human and

material resources throughout the life of a project by using modern
management techniques to achieve predetermined objectives of scope, cost,
time, quality and participation satisfaction.

The basic ingredients for a project management framework may be

represented schematically in Figure 2-1. A working knowledge of general
management and familiarity with the special knowledge domain related to
the project are indispensable. Supporting disciplines such as computer
science and decision science may also play an important role. In fact,
modern management practices and various special knowledge domains have
absorbed various techniques or tools which were once identified only with
the supporting disciplines. For example, computer-based information
systems and decision support systems are now common-place tools for
general management. Similarly, many operations research techniques such
as linear programming and network analysis are now widely used in many
knowledge or application domains. Hence, the representation in Figure 2-1
reflects only the sources from which the project management framework
evolves.

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 Figure 2-1:  Basic Ingredients in Project Management

the functions of project management for construction generally include the

following:

1. Specification of project objectives and plans including delineation of

scope, budgeting, scheduling, setting performance requirements, and
selecting project participants.
2. Maximization of efficient resource utilization through procurement of
labor, materials and equipment according to the prescribed schedule
and plan.
3. Implementation of various operations through proper coordination and
control of planning, design, estimating, contracting and construction in
the entire process.
4. Development of effective communications and mechanisms for
resolving conflicts among the various participants.

The Project Management Institute focuses on nine distinct areas requiring

project manager knowledge and attention:

1. Project integration management to ensure that the various project

elements are effectively coordinated.
2. Project scope management to ensure that all the work required (and
only the required work) is included.
3. Project time management to provide an effective project schedule.
4. Project cost management to identify needed resources and maintain
budget control.
5. Project quality management to ensure functional requirements are
met.

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6. Project human resource management to development and effectively
employ project personnel.
7. Project communications management to ensure effective internal and
external communications.
8. Project risk management to analyze and mitigate potential risks.
9. Project procurement management to obtain necessary resources from
external sources

Trends in Modern Management

1. In recent years, major developments in management reflect the
acceptance to various degrees of the following elements: (1) the
management process approach, (2) the management science
and decision support approach, (3) the behavioral science
approach for human resource development, and (4) sustainable
competitive advantage. These four approaches complement
each other in current practice, and provide a useful groundwork
for project management.

2. The management process approach emphasizes the systematic

study of management by identifying management functions in an
organization and then examining each in detail. There is general
agreement regarding the functions of planning, organizing and
controlling. A major tenet is that by analyzing management
along functional lines, a framework can be constructed into
which all new management activities can be placed. Thus, the
manager's job is regarded as coordinating a process of
interrelated functions, which are neither totally random nor
rigidly predetermined, but are dynamic as the process evolves.
Another tenet is that management principles can be derived
from an intellectual analysis of management functions. By
dividing the manager's job into functional components, principles
based upon each function can be extracted. Hence, management
functions can be organized into a hierarchical structure designed
to improve operational efficiency, such as the example of the
organization for a manufacturing company shown in Figure 2-2.
The basic management functions are performed by all managers,
regardless of enterprise, activity or hierarchical levels. Finally,
the development of a management philosophy results in helping
the manager to establish relationships between human and
material resources. The outcome of following an established
philosophy of operation helps the manager win the support of
the subordinates in achieving organizational objectives.

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Figure 2-2:  Illustrative Hierarchical Structure of Management Functions

Risks in construction projects may be classified in a number of ways. One

form of classification is as follows:

1. Socioeconomic factors
o Environmental protection
o Public safety regulation
o Economic instability
o Exchange rate fluctuation
2. Organizational relationships
o Contractual relations
o Attitudes of participants
o Communication
3. Technological problems

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 o Design assumptions
o Site conditions
o Construction procedures
o Construction occupational safety

Organization of Project Participants

The top management of the owner sets the overall policy and selects the
appropriate organization to take charge of a proposed project. Its policy will
dictate how the project life cycle is divided among organizations and which
professionals should be engaged. Decisions by the top management of the
owner will also influence the organization to be adopted for project
management. In general, there are many ways to decompose a project into
stages. The most typical ways are:

 Sequential processing whereby the project is divided into separate

stages and each stage is carried out successively in sequence.
 Parallel processing whereby the project is divided into independent
parts such that all stages are carried out simultaneously.
 Staggered processing whereby the stages may be overlapping, such as
the use of phased design-construct procedures for fast track operation.

It should be pointed out that some decompositions may work out better than
others, depending on the circumstances. In any case, the prevalence of
decomposition makes the subsequent integration particularly important. The
critical issues involved in organization for project management are:

 How many organizations are involved?

 What are the relationships among the organizations?
 When are the various organizations brought into the project?

There are two basic approaches to organize for project implementation, even
though many variations may exist as a result of different contractual
relationships adopted by the owner and builder. These basic approaches are
divided along the following lines:

1. Separation of organizations. Numerous organizations serve as

consultants or contractors to the owner, with different organizations
handling design and construction functions. Typical examples which
involve different degrees of separation are:
o Traditional sequence of design and construction
o Professional construction management
2. Integration of organizations. A single or joint venture consisting of
a number of organizations with a single command undertakes both

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 design and construction functions. Two extremes may be cited as
examples:
o Owner-builder operation in which all work will be handled in
house by force account.
o Turnkey operation in which all work is contracted to a vendor
which is responsible for delivering the completed project

Since construction projects may be managed by a spectrum of participants in

a variety of combinations, the organization for the management of such
projects may vary from case to case. On one extreme, each project may be
staffed by existing personnel in the functional divisions of the organization
on an ad-hoc basis as shown in Figure 2-4 until the project is completed. This
arrangement is referred to as the matrix organization as each project
manager must negotiate all resources for the project from the existing
organizational framework. On the other hand, the organization may consist
of a small central functional staff for the exclusive purpose of supporting
various projects, each of which has its functional divisions as shown in Figure
2-5. This decentralized set-up is referred to as the project oriented
organization as each project manager has autonomy in managing the
project. There are many variations of management style between these two
extremes, depending on the objectives of the organization and the nature of
the construction project. For example, a large chemical company with in-
house staff for planning, design and construction of facilities for new product
lines will naturally adopt the matrix organization. On the other hand, a
construction company whose existence depends entirely on the
management of certain types of construction projects may find the project-
oriented organization particularly attractive. While organizations may differ,
the same basic principles of management structure are applicable to most
situations.

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 Figure 2-4:  A Matrix Organization

A professional construction manager is a firm specialized in the practice of

professional construction management which includes:

 Work with owner and the A/E firms from the beginning and make
recommendations on design improvements, construction technology,
schedules and construction economy.

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  Propose design and construction alternatives if appropriate, and
analyze the effects of the alternatives on the project cost and
schedule.
 Monitor subsequent development of the project in order that these
targets are not exceeded without the knowledge of the owner.
 Coordinate procurement of material and equipment and the work of all
construction contractors, and monthly payments to contractors,
changes, claims and inspection for conforming design requirements.
 Perform other project related services as required by owners.

Professional construction management is usually used when a project is very

large or complex. The organizational features that are characteristics of
mega-projects can be summarized as follows:

 The overall organizational approach for the project will change as the
project advances. The "functional" organization may change to a
"matrix" which may change to a "project" organization (not necessarily
in this order).
 Within the overall organization, there will probably be functional,
project, and matrix suborganizations all at the same time. This feature
greatly complicates the theory and the practice of management, yet is
essential for overall cost effectiveness.
 Successful giant, complex organizations usually have a strong matrix-
type suborganization at the level where basic cost and schedule
control responsibility is assigned. This suborganization is referred to as
a "cost center" or as a "project" and is headed by a project manager.
The cost center matrix may have participants assigned from many
different functional groups. In turn, these functional groups may have
technical reporting responsibilities to several different and higher tiers
in the organization. The key to a cost effective effort is the
development of this project suborganization into a single team under
the leadership of a strong project manager.
 The extent to which decision-making will be centralized or
decentralized is crucial to the organization of the mega-project.

Consequently, it is important to recognize the changing nature of the

organizational structure as a project is carried out in various stages.

Example 2-6:  Managing the Channel Tunnel Construction from

Britain to France

The underground railroad tunnel from Britain to France is commonly called

the Channel Tunnel or Chunnel. It was built by tunneling from each side.
Starting in 1987, the tunnels had a breakthough in 1990.

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Management turmoil dogged the project from the start. In 1989, seven of the
eight top people in the construction organization left. There was a built in
conflict between the contractors and government overseers: "The
fundamental thing wrong is that the constractors own less than 6% of
Eurotunnel. Their interest is to build and sell the project at a profit.
(Eurotunnel's) interest is for it to operate economically, safely and reliably for
the next 50 years." (Alastair Morton, Eurotunnel CEO, quoted in ENR,
12/10/90, p. 56).

From the responses of six contractors, the key factors cited for successful
projects are:

 well defined scope

 extensive early planning
 good leadership, management and first line supervision
 positive client relationship with client involvement
 proper project team chemistry
 quick response to changes
 engineering managers concerned with the total project, not just the
engineering elements.

Conversely, the key factors cited for unsuccessful projects are:

 ill-defined scope
 poor management
 poor planning
 breakdown in communication between engineering and construction
 unrealistic scope, schedules and budgets
 many changes at various stages of progress
 lack of good project control

References
1. Barrie, Donald S. and Boyd C. Paulson, Jr., Professional Construction
Management, McGraw-Hill Book Company, 2nd Ed., 1984.
2. Halpin, Daniel W. and Ronald W. Woodhead, Construction
Management, John Wiley and Sons, 1980.

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 3. Hodgetts, R.M., Management: Theory, Process and Practice, W.B.
Saunders Co., Philadelphia, PA, 1979.
4. Kerzner, H. Project Management: A Systems Approach to Planning,
Scheduling and Controlling. 2nd. Ed., Van Nostrand Reinhold, New
York, 1984.
5. Levitt, R.E., R.D. Logcher and N.H. Quaddumi, "Impact of Owner-
Engineer Risk Sharing on Design Conservatism," ASCE Journal of
Professional Issues in Engineering, Vol. 110, 1984, pp. 157-167.
6. Moolin, F.P., Jr., and F.A. McCoy: "Managing the Alaska Pipeline
Project," Civil Engineering, November 1981, pp. 51-54.
7. Murray, L., E. Gallardo, S. Aggarwal and R. Waywitka, "Marketing
Construction Management Services," ASCE Journal of Construction
Division, Vol. 107, 1981, pp. 665-677.
8. Project Management Institute, A Guide to the Project Management
Body of Knowledge, Newtown Square, Pennsylvania, 2000.

The Design and Construction Process

In the planning of facilities, it is important to recognize the close relationship

between design and construction. These processes can best be viewed as an
integrated system. Broadly speaking, design is a process of creating the
description of a new facility, usually represented by detailed plans and
specifications; construction planning is a process of identifying activities and
resources required to make the design a physical reality. Hence, construction
is the implementation of a design envisioned by architects and engineers. In
both design and construction, numerous operational tasks must be
performed with a variety of precedence and other relationships among the
different tasks.

Several characteristics are unique to the planning of constructed facilities

and should be kept in mind even at the very early stage of the project life
cycle. These include the following:

 Nearly every facility is custom designed and constructed, and often requires
a long time to complete.
 Both the design and construction of a facility must satisfy the conditions
peculiar to a specific site.
 Because each project is site specific, its execution is influenced by natural,
social and other locational conditions such as weather, labor supply, local
building codes, etc.
 Since the service life of a facility is long, the anticipation of future
requirements is inherently difficult.
 Because of technological complexity and market demands, changes of design
plans during construction are not uncommon.

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Example 3-1: Responsibility for Shop Drawings

The willingness to assume responsibilities does not come easily from any
party in the current litigious climate of the construction industry in the
United States. On the other hand, if owner, architect, engineer, contractor
and other groups that represent parts of the industry do not jointly fix the
responsibilities of various tasks to appropriate parties, the standards of
practice will eventually be set by court decisions. In an attempt to provide a
guide to the entire spectrum of participants in a construction project, the
American Society of Civil Engineers issued a Manual of Professional Practice
entitled Quality in the Constructed Project in 1990. This manual is intended
to help bring a turn around of the fragmentation of activities in the design
and construction process.

Shop drawings represent the assembly details for erecting a structure which
should reflect the intent and rationale of the original structural design. They
are prepared by the construction contractor and reviewed by the design
professional. However, since the responsibility for preparing shop drawings
was traditionally assigned to construction contractors, design professionals
took the view that the review process was advisory and assumed no
responsibility for their accuracy. This justification was ruled unacceptable by
a court in connection with the walkway failure at the Hyatt Hotel in Kansas
City in 1985. In preparing the ASCE Manual of Professional Practice for
Quality in the Constructed Project, the responsibilities for preparation of shop
drawings proved to be the most difficult to develop. The reason for this
situation is not difficult to fathom since the responsibilities for the task are
diffused, and all parties must agree to the new responsibilities assigned to
each in the recommended risk-reward relations shown in Table 3-1.

Traditionally, the owner is not involved in the preparation and review of shop
drawings, and perhaps is even unaware of any potential problems. In the
recommended practice, the owner is required to take responsibility for
providing adequate time and funding, including approval of scheduling, in
order to allow the design professionals and construction contractors to
perform satisfactorily.

Table 3-1  Recommended Responsibility for Shop Drawings

Responsible Party

Task Design
Owne Construction
Professiona
r Contractor
l

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Provide adequate time and funding for shop
Prime    
drawing preparation and review

Arrange for structural design Prime    

Provide structural design   Prime  

Establish overall responsibility for connection

  Prime  
design

Accomplish connection design (by design

  Prime  
professional)

Alternatively, provide loading requirement and

other information necessary for shop drawing   Prime  
preparation

Alternatively, accomplish some or all of

connection design (by constuctor with a licensed     Prime
P.E.)

Specify shop drawing requirements and Revie

Prime  
procedures w

Approve proper scheduling Prime Assisting Assisting

Provide shop drawing and submit the drawing on

    Prime
schedule

Make timely reviews and approvals   Prime  

Provide erection procedures, construction

bracing, shoring, means, methods and
    Prime
techniques of construction, and construction
safety

A new facility may involve complex new technology for operation in hostile
environments such as severe climate or restricted accessibility. Large
projects with unprecedented demands for resources such as labor supply,
material and infrastructure may also call for careful technological feasibility
studies. Major elements in a feasibility study on production technology
should include, but are not limited to, the following:

 Project type as characterized by the technology required, such as

synthetic fuels, petrochemicals, nuclear power plants, etc.

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  Project size in dollars, design engineer's hours, construction labor
hours, etc.
 Design, including sources of any special technology which require
licensing agreements.
 Project location which may pose problems in environmental protection,
labor productivity and special risks.

The series of actions taken in the conceptual design process may be

described as follows:

 Formulation refers to the definition or description of a design problem

in broad terms through the synthesis of ideas describing alternative
facilities.
 Analysis refines the problem definition or description by separating
important from peripheral information and by pulling together the
essential detail. Interpretation and prediction are usually required as
part of the analysis.
 Search involves gathering a set of potential solutions for performing
the specified functions and satisfying the user requirements.
 Decision means that each of the potential solutions is evaluated and
compared to the alternatives until the best solution is obtained.
 Specification is to describe the chosen solution in a form which
contains enough detail for implementation.
 Modification refers to the change in the solution or re-design if the
solution is found to be wanting or if new information is discovered in
the process of design.

As the project moves from conceptual planning to detailed design, the

design process becomes more formal. In general, the actions of formulation,
analysis, search, decision, specification and modification still hold, but they
represent specific steps with less random interactions in detailed design. The
design methodology thus formalized can be applied to a variety of design
problems. For example, the analogy of the schematic diagrams of the
structural design process and of the computer program development process
is shown in Figure 3-5.

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 Figure 3-5: An Analogy Between Structural Design and Computer Program
Development Process
(Reprinted with permission from E.H. Gaylord and C. N. Gaylord, eds., Structural
Engineering Handbook,
2nd Ed., McGraw-Hill Book Company, New York, 1979.)

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Different design styles may be used. The adoption of a particular style often
depends on factors such as time pressure or available design tools, as well
as the nature of the design problem. Examples of different styles are:

 Top-down design. Begin with a behavior description of the facility

and work towards descriptions of its components and their
interconnections.
 Bottom-up design. Begin with a set of components, and see if they
can be arranged to meet the behavior description of the facility.

Functional Design
The objective of functional design for a proposed facility is to treat the
facility as a complex system of interrelated spaces which are organized
systematically according to the functions to be performed in these spaces in
order to serve a collection of needs. The arrangement of physical spaces can
be viewed as an iterative design process to find a suitable floor plan to
facilitate the movement of people and goods associated with the operations
intended.

A designer often relies on a heuristic approach, i.e., applying selected rules

or strategies serving to stimulate the investigation in search for a solution.
The heuristic approach used in arranging spatial layouts for facilities is based
generally on the following considerations:

1. identification of the goals and constraints for specified tasks,

2. determination of the current state of each task in the iterative design
process,
3. evaluation of the differences between the current state and the goals,
4. means of directing the efforts of search towards the goals on the basis
of past experience.

Hence, the procedure for seeking the goals can be recycled iteratively in
order to make tradeoffs and thus improve the solution of spatial layouts.

Consider, for example, an integrated functional design for a proposed

hospital.  Since the responsibilities for satisfying various needs in a hospital
are divided among different groups of personnel within the hospital
administrative structure, a hierarchy of functions corresponding to different
levels of responsibilities is proposed in the systematic organization of
hospital functions. In this model, the functions of a hospital system are
decomposed into a hierarchy of several levels:

1. Hospital--conglomerate of all hospital services resulting from top

policy decisions,

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 2. Division--broadly related activities assigned to the same general area
by administrative decisions,
3. Department--combination of services delivered by a service or
treatment group,
4. Suite--specific style of common services or treatments performed in
the same suite of rooms,
5. Room--all activities that can be carried out in the same internal
environment surrounded by physical barriers,
6. Zone--several closely related activities that are undertaken by
individuals,
7. Object--a single activity associated with an individual.

Value Engineering
Value engineering may be broadly defined as an organized approach in
identifying unnecessary costs in design and construction and in soliciting or
proposing alternative design or construction technology to reduce costs
without sacrificing quality or performance requirements. It usually involves
the steps of gathering pertinent information, searching for creative ideas,
evaluating the promising alternatives, and proposing a more cost effective
alternative. This approach is usually applied at the beginning of the
construction phase of the project life cycle.

The use of value engineering in the public sector of construction has been
fostered by legislation and government regulation, but the approach has not
been widely adopted in the private sector of construction. One explanation
may lie in the difference in practice of engineering design services in the
public and private sectors. In the public sector, the fee for design services is
tightly monitored against the "market price," or may even be based on the
lowest bid for service. Such a practice in setting professional fees
encourages the design professionals to adopt known and tried designs and
construction technologies without giving much thought to alternatives that
are innovative but risky. Contractors are willing to examine such alternatives
when offered incentives for sharing the savings by owners. In the private
sector, the owner has the freedom to offer such incentives to design
professionals as well as the contractors without being concerned about the
appearance of favoritism in engaging professional services.

Another source of cost savings from value engineering is the ability of

contractors to take advantage of proprietary or unusual techniques and
knowledge specific to the contractor's firm. For example, a contractor may
have much more experience with a particular method of tunneling that is not
specified in the original design and, because of this experience, the
alternative method may be less expensive. In advance of a bidding
competition, a design professional does not know which contractor will

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undertake the construction of a facility. Once a particular contractor is
chosen, then modifications to the construction technology or design may
take advantage of peculiar advantages of the contractor's organization.

As a final source of savings in value engineering, the contractor may offer

genuine new design or construction insights which have escaped the
attention of the design professional even if the latter is not restrained by the
fee structure to explore more alternatives. If the expertise of the contractor
can be utilized, of course, the best time to employ it is during the planning
and design phase of the project life cycle. That is why professional
construction management or integrated design/construction are often
preferred by private owners.

Construction Planning
The development of a construction plan is very much analogous to the
development of a good facility design. The planner must weigh the costs and
reliability of different options while at the same time insuring technical
feasibility. Construction planning is more difficult in some ways since the
building process is dynamic as the site and the physical facility change over
time as construction proceeds. On the other hand, construction operations
tend to be fairly standard from one project to another, whereas structural or
foundation details might differ considerably from one facility to another.

Forming a good construction plan is an exceptionally challenging problem.

There are numerous possible plans available for any given project. While
past experience is a good guide to construction planning, each project is
likely to have special problems or opportunities that may require
considerable ingenuity and creativity to overcome or exploit. Unfortunately,
it is quite difficult to provide direct guidance concerning general procedures
or strategies to form good plans in all circumstances. There are some
recommendations or issues that can be addressed to describe the
characteristics of good plans, but this does not necessarily tell a planner how
to discover a good plan. However, as in the design process, strategies of
decomposition in which planning is divided into subproblems and
hierarchical planning in which general activities are repeatably subdivided
into more specific tasks can be readily adopted in many cases.

From the standpoint of construction contractors or the construction divisions

of large firms, the planning process for construction projects consists of three
stages that take place between the moment in which a planner starts the
plan for the construction of a facility to the moment in which the evaluation
of the final output of the construction process is finished.

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The estimate stage involves the development of a cost and duration
estimate for the construction of a facility as part of the proposal of a
contractor to an owner. It is the stage in which assumptions of resource
commitment to the necessary activities to build the facility are made by a
planner. A careful and thorough analysis of different conditions imposed by
the construction project design and by site characteristics are taken into
consideration to determine the best estimate. The success of a contractor
depends upon this estimate, not only to obtain a job but also to construct the
facility with the highest profit. The planner has to look for the time-cost
combination that will allow the contractor to be successful in his
commitment. The result of a high estimate would be to lose the job, and the
result of a low estimate could be to win the job, but to lose money in the
construction process. When changes are done, they should improve the
estimate, taking into account not only present effects, but also future
outcomes of succeeding activities. It is very seldom the case in which the
output of the construction process exactly echoes the estimate offered to the
owner.

In the monitoring and control stage of the construction process, the

construction manager has to keep constant track of both activities' durations
and ongoing costs. It is misleading to think that if the construction of the
facility is on schedule or ahead of schedule, the cost will also be on the
estimate or below the estimate, especially if several changes are made.
Constant evaluation is necessary until the construction of the facility is
complete. When work is finished in the construction process, and information
about it is provided to the planner, the third stage of the planning process
can begin.

The evaluation stage is the one in which results of the construction process
are matched against the estimate. A planner deals with this uncertainty
during the estimate stage. Only when the outcome of the construction
process is known is he/she able to evaluate the validity of the estimate. It is
in this last stage of the planning process that he or she determines if the
assumptions were correct. If they were not or if new constraints emerge,
he/she should introduce corresponding adjustments in future planning.

Example 3-12: Planning of pre-fabrication

When might pre-fabricated components be used in preference to

components assembled on a construction site? A straightforward answer is
to use pre-fabricated components whenever their cost, including
transportation, is less than the cost of assembly on site. As an example,
forms for concrete panels might be transported to a construction site with
reinforcing bars already built in, necessary coatings applied to the forms, and
even special features such as electrical conduit already installed in the form.
In some cases, it might be less expensive to pre-fabricate and transport the

19
entire concrete panel to a manufacturing site. In contrast, traditional
construction practice would be to assemble all the different features of the
panel on-site. The relevant costs of these alternatives could be assessed
during construction planning to determine the lowest cost alternative.

In addition to the consideration of direct costs, a construction planner should

also consider some other aspects of this technology choice. First, the planner
must insure that pre-fabricated components will satisfy the relevant building
codes and regulations. Second, the relative quality of traditional versus pre-
fabricated components as experienced in the final facility should be
considered. Finally, the availability of components at the required time
during the construction process should also be considered.

Example 3-13: Impacts of building codes

Building codes originated as a part of the building regulatory process for the
safety and general welfare of the public. The source of all authority to enact
building codes is based on the police power of the state which may be
delegated by the state legislature to local government units. Consequently,
about 8,000 localities having their own building codes, either by following a
national model code or developing a local code. The lack of uniformity of
building codes may be attributed to a variety of reasons:

 Neighboring municipalities may adopt different national models as the basis

for local regulation.
 Periodic revisions of national codes may not be adopted by local authorities
before the lapse of several years.
 Municipalities may explicitly decline to adopt specific provisions of national
model codes or may use their own variants of key provisions.
 Local authorities may differ in interpretation of the same language in national
model codes.

The lack of uniformity in building codes has serious impact on design and
construction as well as the regulatory process for buildings. Among the
significant factors are:

 Delay in the diffusion of new building innovations which may take a long time
to find their ways to be incorporated in building codes.
 Discouragement to new production organizations, such as industrialized
construction and prefabrication.

Duplication of administrative cost of public

agencies and compliance cost incurred by
private Pre-Project Planning

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Even before design and construction processes begin, there is a stage of
"pre-project planning" that can be critical for project success. In this process,
the project scope is established. Since construction and design professionals
are often not involved in this project scope stage, the terminology of
describing this as a "pre-project" process has arisen. From the owner's
perspective, defining the project scope is just another phase in the process
of acquiring a constructed facility.

The definition of a project scope typically involves developing project

alternatives at a conceptual level, analyzing project risks and economic
payoff, developing a financial plan, making a decision to proceed (or not),
and deciding upon the project organization and control plan. The next few
chapters will examine these different problems at some length.

The danger of poor project definition comes from escalating costs (as new
items are added) or, in the extreme, project failure. A good definition of
scope allows all the parties in the project to understand what is needed and
to work towards meeting those needs.

Example 3-14: The Project Definition Rating Index (PDRI) for

Building Projects The Construction Industry Institute has developed rating
indexes for different types of projects to assess the adequacy of project
scope definitions. These are intended to reflect best practices in the building
industry and provides a checklist for recommended activities and milestones
to define a project scope. The rating index is a weighted sum of scores
received for a variety of items on the scope definition checklist. Each item in
the checklist is rated as "not applicable" (0), "complete definition" (1), "minor
deficiencies" (2), "some deficiencies" (3), "major deficiencies" (4) or
"incomplete or poor definition" (5). Lower scores in these categories are
preferable. Some items in the checklist include:

 Business Strategy for building use, justification, plan, economic

analysis, facility requirements, expansion/alteration consideration, site
selection issues and project objectives.
 Owner Philosophy with regard to reliability, maintenance, operation
and design.
 Project Requirements for value engineering, design, existing facility,
scope of work review, schedule and budget.
 Site Information including applicable regulatory reporting and permits
requirements.
 Building Programming including room by room definitions for use,
finishes, interior requirements and hvac (heating, ventilating and air
conditioning).
 Design Parameters including all components and a constructability
analysis.

21
  Equipment including inventory, locations and utility requirements.

References
1. Au, T. and P. Christiano, Structural Analysis, Prentice-Hall, Inc.,
Englewood Cliffs, NJ, 1987.
2. Building Research Advisory Board, Exploratory Study on Responsibility,
Liability and Accountability for Risks in Construction, National Academy
of Sciences, Washington, D.C., 1978.
3. Drucker, P.F., Innovation and Entrepreneurship: Practice and Principles,
Harper and Row, New York, 1985.
4. Gaylord, E., and C. Gaylord (Editors), Structural Engineering Handbook,
McGraw-Hill Book Co., New York, 1979.
5. Levitt, R.E., R.D. Logcher and N.H. Quaddumi, "Impact of Owner-
Engineer Risk Sharing on Design Conservatism," ASCE Journal of
Professional Issues in Engineering, Vol. 110, 1984, pp. 157-167.
6. Simon, H.A., The Science of the Artificial, Second Edition, MIT Press,
Cambridge, MA, 1981.
7. Tatum, C.B., "Innovation on the Construction Project: A Process View,"
Project Management Journal, Vol. 18, No. 5, 1987, pp. 57-67.
8. Pre-Project Planning Research Team, Pre-Project Planning Handbook
Construction Industry Institute, Publication 39-2, April 1995.

 firms.

Labor, Material and Equipment Utilization

Good project management in construction must vigorously pursue the

efficient utilization of labor, material and equipment. Improvement of labor
productivity should be a major and continual concern of those who are
responsible for cost control of constructed facilities. Material handling, which
includes procurement, inventory, shop fabrication and field servicing,
requires special attention for cost reduction. The use of new equipment and
innovative methods has made possible wholesale changes in construction
technologies in recent decades. Organizations which do not recognize the
impact of various innovations and have not adapted to changing
environments have justifiably been forced out of the mainstream of
construction activities.

Observing the trends in construction technology presents a very mixed and

ambiguous picture. On the one hand, many of the techniques and materials
used for construction are essentially unchanged since the introduction of

22
mechanization in the early part of the twentieth century. For example, a
history of the Panama Canal construction from 1904 to 1914 argues that:

[T]he work could not have done any faster or more efficiently in our day,
despite all technological and mechanical advances in the time since, the
reason being that no present system could possibly carry the spoil away any
faster or more efficiently than the system employed. No motor trucks were
used in the digging of the canal; everything ran on rails. And because of the
mud and rain, no other method would have worked half so well.

In contrast to this view of one large project, one may also point to the
continual change and improvements occurring in traditional materials and
techniques. Bricklaying provides a good example of such changes:

Bricklaying...is said not to have changed in thousands of years; perhaps in

the literal placing of brick on brick it has not. But masonry technology has
changed a great deal. Motorized wheelbarrows and mortar mixers,
sophisticated scaffolding systems, and forklift trucks now assist the
bricklayer. New epoxy mortars give stronger adhesion between bricks.
Mortar additives and cold-weather protection eliminate winter shutdowns.

Labor Productivity
Productivity in construction is often broadly defined as output per labor hour.
Since labor constitutes a large part of the construction cost and the quantity
of labor hours in performing a task in construction is more susceptible to the
influence of management than are materials or capital, this productivity
measure is often referred to as labor productivity. However, it is important to
note that labor productivity is a measure of the overall effectiveness of an
operating system in utilizing labor, equipment and capital to convert labor
efforts into useful output, and is not a measure of the capabilities of labor
alone. For example, by investing in a piece of new equipment to perform
certain tasks in construction, output may be increased for the same number
of labor hours, thus resulting in higher labor productivity.

Construction output may be expressed in terms of functional units or

constant dollars. In the former case, labor productivity is associated with
units of product per labor hour, such as cubic yards of concrete placed per
hour or miles of highway paved per hour. In the latter case, labor
productivity is identified with value of construction (in constant dollars) per
labor hour. The value of construction in this regard is not measured by the
benefit of constructed facilities, but by construction cost. Labor productivity
measured in this way requires considerable care in interpretation. For
example, wage rates in construction have been declining in the US during
the period 1970 to 1990, and since wages are an important component in

23
construction costs, the value of construction put in place per hour of work
will decline as a result, suggesting lower productivity.

Factors Affecting Job-Site Productivity

Job-site productivity is influenced by many factors which can be
characterized either as labor characteristics, project work conditions or as
non-productive activities. The labor characteristics include:

 age, skill and experience of workforce

 leadership and motivation of workforce

The project work conditions include among other factors:

 Job size and complexity.

 Job site accessibility.
 Labor availability.
 Equipment utilization.
 Contractual agreements.
 Local climate.
 Local cultural characteristics, particularly in foreign operations.

The non-productive activities associated with a project may or may not be

paid by the owner, but they nevertheless take up potential labor resources
which can otherwise be directed to the project. The non-productive activities
include among other factors:

 Indirect labor required to maintain the progress of the project

 Rework for correcting unsatisfactory work
 Temporary work stoppage due to inclement weather or material shortage
 Time off for union activities
 Absentee time, including late start and early quits
 Non-working holidays
 Strikes

Each category of factors affects the productive labor available to a project as

well as the on-site labor efficiency.

Labor Characteristics

Performance analysis is a common tool for assessing worker quality and

contribution. Factors that might be evaluated include:

 Quality of Work - caliber of work produced or accomplished.

 Quantity of Work - volume of acceptable work

24
  Job Knowledge - demonstrated knowledge of requirements, methods,
techniques and skills involved in doing the job and in applying these to
increase productivity.
 Related Work Knowledge - knowledge of effects of work upon other areas and
knowledge of related areas which have influence on assigned work.
 Judgment - soundness of conclusions, decisions and actions.
 Initiative - ability to take effective action without being told.
 Resource Utilization - ability to delineate project needs and locate, plan and
effectively use all resources available.
 Dependability - reliability in assuming and carrying out commitments and
obligations.
 Analytical Ability - effectiveness in thinking through a problem and reaching
sound conclusions.
 Communicative Ability - effectiveness in using orgal and written
communications and in keeping subordinates, associates, superiors and
others adequately informed.
 Interpersonal Skills - effectiveness in relating in an appropriate and
productive manner to others.
 Ability to Work Under Pressure - ability to meet tight deadlines and adapt to
changes.
 Security Sensitivity - ability to handle confidential information appropriately
and to exercise care in safeguarding sensitive information.
 Safety Consciousness - has knowledge of good safety practices and
demonstrates awareness of own personal safety and the safety of others.
 Profit and Cost Sensitivity - ability to seek out, generate and implement
profit-making ideas.
 Planning Effectiveness - ability to anticipate needs, forecast conditions, set
goals and standards, plan and schedule work and measure results.
 Leadership - ability to develop in others the willingenss and desire to work
towards common objectives.
 Delegating - effectiveness in delegating work appropriately.
 Development People - ability to select, train and appraise personnel, set
standards of performance, and provide motivation to grow in their capacity.
< li>Diversity (Equal Employment Opportunity) - ability to be senstive to the
needs of minorities, females and other protected groups and to demonstrate
affirmative action in responding to these needs.

Materials Management
Materials management is an important element in project planning and
control. Materials represent a major expense in construction, so minimizing
procurement or purchase costs presents important opportunities for reducing
costs. Poor materials management can also result in large and avoidable
costs during construction. First, if materials are purchased early, capital may
be tied up and interest charges incurred on the excess inventory of
materials. Even worse, materials may deteriorate during storage or be stolen
unless special care is taken. For example, electrical equipment often must be
stored in waterproof locations. Second, delays and extra expenses may be

25
incurred if materials required for particular activities are not available.
Accordingly, insuring a timely flow of material is an important concern of
project managers.

Materials management is not just a concern during the monitoring stage in

which construction is taking place. Decisions about material procurement
may also be required during the initial planning and scheduling stages. For
example, activities can be inserted in the project schedule to represent
purchasing of major items such as elevators for buildings. The availability of
materials may greatly influence the schedule in projects with a fast track or
very tight time schedule: sufficient time for obtaining the necessary
materials must be allowed. In some case, more expensive suppliers or
shippers may be employed to save time.

Materials management is also a problem at the organization level if central

purchasing and inventory control is used for standard items. In this case, the
various projects undertaken by the organization would present requests to
the central purchasing group. In turn, this group would maintain inventories
of standard items to reduce the delay in providing material or to obtain lower
costs due to bulk purchasing. This organizational materials management
problem is analogous to inventory control in any organization facing
continuing demand for particular items.

Materials ordering problems lend themselves particularly well to computer

based systems to insure the consistency and completeness of the purchasing
process. In the manufacturing realm, the use of automated materials
requirements planning systems is common. In these systems, the master
production schedule, inventory records and product component lists are
merged to determine what items must be ordered, when they should be
ordered, and how much of each item should be ordered in each time period.
The heart of these calculations is simple arithmetic: the projected demand
for each material item in each period is subtracted from the available
inventory. When the inventory becomes too low, a new order is
recommended. For items that are non-standard or not kept in inventory, the
calculation is even simpler since no inventory must be considered. With a
materials requirement system, much of the detailed record keeping is
automated and project managers are alerted to purchasing requirements.

Example 4-4: Examples of benefits for materials management

systems.

From a study of twenty heavy construction sites, the following benefits from
the introduction of materials management systems were noted:

 In one project, a 6% reduction in craft labor costs occurred due

to the improved availability of materials as needed on site. On

26
 other projects, an 8% savings due to reduced delay for materials
was estimated.
 A comparison of two projects with and without a materials
management system revealed a change in productivity from
1.92 man-hours per unit without a system to 1.14 man-hours per
unit with a new system. Again, much of this difference can be
attributed to the timely availability of materials.
 Warehouse costs were found to decrease 50% on one project
with the introduction of improved inventory management,
representing a savings of $ 92,000. Interest charges for
inventory also declined, with one project reporting a cash flow
savings of $ 85,000 from improved materials management.

Against these various benefits, the costs of acquiring and maintaining a

materials management system has to be compared. However, management
studies suggest that investment in such systems can be quite beneficial.

Example 4-6: Process plant equipment procurement

The procurement and delivery of bulk materials items such as piping

electrical and structural elements involves a series of activities if such items
are not standard and/or in stock. The times required for various activities in
the procurement of such items might be estimated to be as follows:

Durati Cumulati
Activities on ve
(days) Duration
Requisition ready by designer
Owner approval 0 0
Inquiry issued to vendors 5 5
Vendor quotations received 3 8
Complete bid evaluation by 15 23
designer 7 30
Owner approval 5 35
Place purchase order 5 40
Receive preliminary shop 10 50
drawings 10 60
Receive final design drawings 60-200 120-260
Fabrication and delivery

As a result, this type of equipment procurement will typically require four to

nine months. Slippage or contraction in this standard schedule is also
possible, based on such factors as the extent to which a fabricator is busy.

Construction Equipment
27
The selection of the appropriate type and size of construction equipment
often affects the required amount of time and effort and thus the job-site
productivity of a project. It is therefore important for site managers and
construction planners to be familiar with the characteristics of the major
types of equipment most commonly used in construction.

Excavation and Loading

One family of construction machines used for excavation is broadly classified

as a crane-shovel as indicated by the variety of machines in Figure 4-3. The
crane-shovel consists of three major components:

 a carrier or mounting which provides mobility and stability for the machine.
 a revolving deck or turntable which contains the power and control units.
 a front end attachment which serves the special functions in an operation.

The type of mounting for all machines in Figure 4-3 is referred to as crawler
mounting, which is particularly suitable for crawling over relatively rugged
surfaces at a job site. Other types of mounting include truck mounting and
wheel mounting which provide greater mobility between job sites, but
require better surfaces for their operation. The revolving deck includes a cab
to house the person operating the mounting and/or the revolving deck. The
types of front end attachments in Figure 4-3 might include a crane with
hook, claim shell, dragline, backhoe, shovel and piledriver.

Figure 4-3  Typical Machines in the Crane-Shovel Family

Compaction and Grading

The function of compaction equipment is to produce higher density in soil

mechanically. The basic forces used in compaction are static weight,
kneading, impact and vibration. The degree of compaction that may be

28
achieved depends on the properties of soil, its moisture content, the
thickness of the soil layer for compaction and the method of compaction.
Some major types of compaction equipment are shown in Figure 4-4, which
includes rollers with different operating characteristics.

The function of grading equipment is to bring the earthwork to the desired

shape and elevation. Major types of grading equipment include motor
graders and grade trimmers. The former is an all-purpose machine for
grading and surface finishing, while the latter is used for heavy construction
because of its higher operating speed.

Figure 4-4  Some Major Types of Compaction Equipment

Drilling and Blasting

Rock excavation is an audacious task requiring special equipment and

methods. The degree of difficulty depends on physical characteristics of the
rock type to be excavated, such as grain size, planes of weakness,
weathering, brittleness and hardness. The task of rock excavation includes
loosening, loading, hauling and compacting. The loosening operation is
specialized for rock excavation and is performed by drilling, blasting or
ripping.

Major types of drilling equipment are percussion drills, rotary drills, and
rotary-percussion drills. A percussion drill penetrates and cuts rock by impact
while it rotates without cutting on the upstroke. Common types of percussion

29
drills include a jackhammer which is hand-held and others which are
mounted on a fixed frame or on a wagon or crawl for mobility. A rotary drill
cuts by turning a bit against the rock surface. A rotary-percussion drill
combines the two cutting movements to provide a faster penetration in rock.

Blasting requires the use of explosives, the most common of which is

dynamite. Generally, electric blasting caps are connected in a circuit with
insulated wires. Power sources may be power lines or blasting machines
designed for firing electric cap circuits. Also available are non-electrical
blasting systems which combine the precise timing and flexibility of electric
blasting and the safety of non-electrical detonation.

Tractor-mounted rippers are capable of penetrating and prying loose most

rock types. The blade or ripper is connected to an adjustable shank which
controls the angle at the tip of the blade as it is raised or lowered.
Automated ripper control may be installed to control ripping depth and tip
angle.

In rock tunneling, special tunnel machines equipped with multiple cutter

heads and capable of excavating full diameter of the tunnel are now
available. Their use has increasingly replaced the traditional methods of
drilling and blasting.

Lifting and Erecting

Derricks are commonly used to lift equipment of materials in industrial or

building construction. A derrick consists of a vertical mast and an inclined
boom sprouting from the foot of the mast. The mast is held in position by
guys or stifflegs connected to a base while a topping lift links the top of the
mast and the top of the inclined boom. A hook in the road line hanging from
the top of the inclined boom is used to lift loads. Guy derricks may easily be
moved from one floor to the next in a building under construction while
stiffleg derricks may be mounted on tracks for movement within a work area.

Tower cranes are used to lift loads to great heights and to facilitate the
erection of steel building frames. Horizon boom type tower cranes are most
common in highrise building construction. Inclined boom type tower cranes
are also used for erecting steel structures.

Mixing and Paving

Basic types of equipment for paving include machines for dispensing

concrete and bituminous materials for pavement surfaces. Concrete mixers
may also be used to mix portland cement, sand, gravel and water in batches
for other types of construction other than paving.

30
A truck mixer refers to a concrete mixer mounted on a truck which is capable
of transporting ready mixed concrete from a central batch plant to
construction sites. A paving mixer is a self propelled concrete mixer
equipped with a boom and a bucket to place concrete at any desired point
within a roadway. It can be used as a stationary mixer or used to supply
slipform pavers that are capable of spreading, consolidating and finishing a
concrete slab without the use of forms.

A bituminous distributor is a truck-mounted plant for generating liquid

bituminous materials and applying them to road surfaces through a spray
bar connected to the end of the truck. Bituminous materials include both
asphalt and tar which have similar properties except that tar is not soluble in
petroleum products. While asphalt is most frequently used for road surfacing,
tar is used when the pavement is likely to be heavily exposed to petroleum
spills.

Construction Tools and Other Equipment

Air compressors and pumps are widely used as the power sources for
construction tools and equipment. Common pneumatic construction tools
include drills, hammers, grinders, saws, wrenches, staple guns, sandblasting
guns, and concrete vibrators. Pumps are used to supply water or to dewater
at construction sites and to provide water jets for some types of
construction.

Automation of Equipment

The introduction of new mechanized equipment in construction has had a

profound effect on the cost and productivity of construction as well as the
methods used for construction itself. An exciting example of innovation in
this regard is the introduction of computer microprocessors on tools and
equipment. As a result, the performance and activity of equipment can be
continually monitored and adjusted for improvement. In many cases,
automation of at least part of the construction process is possible and
desirable. For example, wrenches that automatically monitor the elongation
of bolts and the applied torque can be programmed to achieve the best bolt
tightness. On grading projects, laser controlled scrapers can produce desired
cuts faster and more precisely than wholly manual methods. Possibilities for
automation and robotics in construction are explored more fully in Chapter
16.

Example 4-8: Tunneling Equipment

In the mid-1980's, some Japanese firms were successful in obtaining

construction contracts for tunneling in the United States by using new
equipment and methods. For example, the Japanese firm of Ohbayashi won

31
the sewer contract in San Francisco because of its advanced tunneling
technology. When a tunnel is dug through soft earth, as in San Francisco, it
must be maintained at a few atmospheres of pressure to keep it from caving
in. Workers must spend several hours in a pressure chamber before entering
the tunnel and several more in decompression afterwards. They can stay
inside for only three or four hours, always at considerable risk from cave-ins
and asphyxiation. Ohbayashi used the new Japanese "earth-pressure-
balance" method, which eliminates these problems. Whirling blades advance
slowly, cutting the tunnel. The loose earth temporarily remains behind to
balance the pressure of the compact earth on all sides. Meanwhile,
prefabricated concrete segments are inserted and joined with waterproof
seals to line the tunnel. Then the loose earth is conveyed away. This new
tunneling method enabled Ohbayashi to bid $5 million below the engineer's
estimate for a San Francisco sewer. The firm completed the tunnel three
months ahead of schedule. In effect, an innovation involving new technology
and method led to considerable cost and time savings.

Choice of Equipment and Standard

Production Rates
Typically, construction equipment is used to perform essentially repetitive
operations, and can be broadly classified according to two basic functions:
(1) operators such as cranes, graders, etc. which stay within the confines of
the construction site, and (2) haulers such as dump trucks, ready mixed
concrete truck, etc. which transport materials to and from the site. In both
cases, the cycle of a piece of equipment is a sequence of tasks which is
repeated to produce a unit of output. For example, the sequence of tasks for
a crane might be to fit and install a wall panel (or a package of eight wall
panels) on the side of a building; similarly, the sequence of tasks of a ready
mixed concrete truck might be to load, haul and unload two cubic yards (or
one truck load) of fresh concrete.

In order to increase job-site productivity, it is beneficial to select equipment

with proper characteristics and a size most suitable for the work conditions
at a construction site. In excavation for building construction, for examples,
factors that could affect the selection of excavators include:

1. Size of the job: Larger volumes of excavation will require larger excavators,
or smaller excavators in greater number.
2. Activity time constraints: Shortage of time for excavation may force
contractors to increase the size or numbers of equipment for activities
related to excavation.
3. Availability of equipment: Productivity of excavation activities will
diminish if the equipment used to perform them is available but not the most
adequate.

32
 4. Cost of transportation of equipment: This cost depends on the size of the
job, the distance of transportation, and the means of transportation.
5. Type of excavation: Principal types of excavation in building projects are
cut and/or fill, excavation massive, and excavation for the elements of
foundation. The most adequate equipment to perform one of these activities
is not the most adequate to perform the others.
6. Soil characteristics: The type and condition of the soil is important when
choosing the most adequate equipment since each piece of equipment has
different outputs for different soils. Moreover, one excavation pit could have
different soils at different stratums.
7. Geometric characteristics of elements to be excavated: Functional
characteristics of different types of equipment makes such considerations
necessary.
8. Space constraints: The performance of equipment is influenced by the
spatial limitations for the movement of excavators.
9. Characteristics of haul units: The size of an excavator will depend on the
haul units if there is a constraint on the size and/or number of these units.
10.Location of dumping areas: The distance between the construction site
and dumping areas could be relevant not only for selecting the type and
number of haulers, but also the type of excavators.
11.Weather and temperature: Rain, snow and severe temperature conditions
affect the job-site productivity of labor and equipment.

By comparing various types of machines for excavation, for example, power

shovels are generally found to be the most suitable for excavating from a
level surface and for attacking an existing digging surface or one created by
the power shovel; furthermore, they have the capability of placing the
excavated material directly onto the haulers. Another alternative is to use
bulldozers for excavation.

The choice of the type and size of haulers is based on the consideration that
the number of haulers selected must be capable of disposing of the
excavated materials expeditiously. Factors which affect this selection
include:

1. Output of excavators: The size and characteristics of the excavators

selected will determine the output volume excavated per day.
2. Distance to dump site: Sometimes part of the excavated materials may be
piled up in a corner at the job-site for use as backfill.
3. Probable average speed: The average speed of the haulers to and from
the dumping site will determine the cycle time for each hauling trip.
4. Volume of excavated materials: The volume of excavated materials
including the part to be piled up should be hauled away as soon as possible.
5. Spatial and weight constraints: The size and weight of the haulers must
be feasible at the job site and over the route from the construction site to the
dumping area.

33
Dump trucks are usually used as haulers for excavated materials as they can
move freely with relatively high speeds on city streets as well as on
highways.

The cycle capacity C of a piece of equipment is defined as the number of

output units per cycle of operation under standard work conditions. The
capacity is a function of the output units used in the measurement as well as
the size of the equipment and the material to be processed. The cycle time T
refers to units of time per cycle of operation. The standard production rate R
of a piece of construction equipment is defined as the number of output units
per unit time. Hence:

4.4

or

4.5

The daily standard production rate Pe of an excavator can be obtained by

multiplying its standard production rate Re by the number of operating hours
He per day. Thus:

4.6

where Ce and Te are cycle capacity (in units of volume) and cycle time (in
hours) of the excavator respectively.

In determining the daily standard production rate of a hauler, it is necessary

to determine first the cycle time from the distance D to a dump site and the
average speed S of the hauler. Let Tt be the travel time for the round trip to
the dump site, To be the loading time and Td be the dumping time. Then the
travel time for the round trip is given by:

4.7

34
The loading time is related to the cycle time of the excavator Te and the
relative capacities Ch and Ce of the hauler and the excavator respectively. In
the optimum or standard case:

4.8

For a given dumping time Td, the cycle time Th of the hauler is given by:

4.9

The daily standard production rate Ph of a hauler can be obtained by

multiplying its standard production rate Rh by the number of operating hours
Hh per day. Hence:

4.10

This expression assumes that haulers begin loading as soon as they return
from the dump site.

The number of haulers required is also of interest. Let w denote the swell
factor of the soil such that wPe denotes the daily volume of loose excavated
materials resulting from the excavation volume Pe. Then the approximate
number of haulers required to dispose of the excavated materials is given
by:

4.11

While the standard production rate of a piece of equipment is based on

"standard" or ideal conditions, equipment productivities at job sites are
influenced by actual work conditions and a variety of inefficiencies and work
stoppages. As one example, various factor adjustments can be used to
account in a approximate fashion for actual site conditions. If the conditions
that lower the standard production rate are denoted by n factors F1, F2, ..., Fn,
each of which is smaller than 1, then the actual equipment productivity R' at
the job site can be related to the standard production rate R as follows:

35
4.12

On the other hand, the cycle time T' at the job site will be increased by these
factors, reflecting actual work conditions. If only these factors are involved,
T' is related to the standard cycle time T as:

4.13

Each of these various adjustment factors must be determined from

experience or observation of job sites. For example, a bulk composition
factor is derived for bulk excavation in building construction because the
standard production rate for general bulk excavation is reduced when an
excavator is used to create a ramp to reach the bottom of the bulk and to
open up a space in the bulk to accommodate the hauler.

In addition to the problem of estimating the various factors, F1, F2, ..., Fn, it
may also be important to account for interactions among the factors and the
exact influence of particular site characteristics.

Example 4-9: Daily standard production rate of a power shovel

A power shovel with a dipper of one cubic yard capacity has a standard
operating cycle time of 30 seconds. Find the daily standard production rate
of the shovel.

For Ce = 1 cu. yd., Te = 30 sec. and He = 8 hours, the daily standard

production rate is found from Eq. (4.6) as follows:

In practice, of course, this standard rate would be modified to reflect various

production inefficiencies, as described in Example 4-11.

Example 4-10: Daily standard production rate of a dump truck

A dump truck with a capacity of 6 cubic yards is used to dispose of

excavated materials at a dump site 4 miles away. The average speed of the
dump truck is 30 mph and the dumping time is 30 seconds. Find the daily
standard production rate of the truck. If a fleet of dump trucks of this

36
capacity is used to dispose of the excavated materials in Example 4-9 for 8
hours per day, determine the number of trucks needed daily, assuming a
swell factor of 1.1 for the soil.

The daily standard production rate of a dump truck can be obtained by using
Equations (4.7) through (4.10):

Hence, the daily hauler productivity is:

Finally, from Equation (4.12), the number of trucks required is:

implying that 8 trucks should be used.

Example 4-11: Job site productivity of a power shovel

A power shovel with a dipper of one cubic yard capacity (in Example 4-9) has
a standard production rate of 960 cubic yards for an 8-hour day. Determine

37
the job site productivity and the actual cycle time of this shovel under the
work conditions at the site that affects its productivity as shown below:

Facto
Work Conditions at the Site   rs

Bulk composition 0.954

Soil properties and water content 0.983

Equipment idle time for worker

0.8
breaks

Management efficiency 0.7

Using Equation (4.11), the job site productivity of the power shovel per day is
given by:

The actual cycle time can be determined as follows:

Noting Equation (4.6), the actual cycle time can also be obtained from the
relation T'e = (CeHe)/P'e. Thus:

Example 4-12: Job site productivity of a dump truck

A dump truck with a capacity of 6 cubic yards (in Example 4-10) is used to
dispose of excavated materials. The distance from the dump site is 4 miles
and the average speed of the dump truck is 30 mph. The job site productivity
of the power shovel per day (in Example 4-11) is 504 cubic yards, which will
be modified by a swell factor of 1.1. The only factors affecting the job site
productivity of the dump truck in addition to those affecting the power

38
shovel are 0.80 for equipment idle time and 0.70 for management efficiency.
Determine the job site productivity of the dump truck. If a fleet of such
trucks is used to haul the excavated material, find the number of trucks
needed daily.

The actual cycle time T'h of the dump truck can be obtained by summing the
actual times for traveling, loading and dumping:

Hence, the actual cycle time is:

The jobsite productivity P'h of the dump truck per day is:

The number of trucks needed daily is:

so 8 trucks are required.

References
39
 1. Bourdon, C.C., and R.W. Levitt, Union and Open Shop Construction,
Lexington Books, D.C. Heath and Co., Lexington, MA, 1980.
2. Caterpillar Performance Handbook, 18@+(th) Edition, Caterpillar, Inc.,
Peoria, IL, 1987.
3. Cordell, R.H., "Construction Productivity Management," Cost
Engineering, Vol. 28, No. 2, February 1986, pp. 14-23.
4. Lange, J.E., and D.Q. Mills, The Construction Industry, Lexington Books,
D.C. Heath and Co., Lexington, MA, 1979.
5. Nunnally, S.W., Construction Methods and Management, Prentice-Hall,
Englewoood Cliffs, NJ, 2nd Ed., 1987.
6. Peurifoy, R.L., Construction Planning, Equipment and Methods, 2nd
Edition, McGraw-Hill, New York, 1970.
7. Tersine, R.J., Principles of Inventory and Materials Management, North
Holland, New York, 1982.

Costs Associated with Constructed Facilities

The costs of a constructed facility to the owner include both the initial capital cost
and the subsequent operation and maintenance costs. Each of these major cost
categories consists of a number of cost components.

The capital cost for a construction project includes the expenses related to
the inital establishment of the facility:

 Land acquisition, including assembly, holding and improvement

 Planning and feasibility studies
 Architectural and engineering design
 Construction, including materials, equipment and labor
 Field supervision of construction
 Construction financing
 Insurance and taxes during construction
 Owner's general office overhead
 Equipment and furnishings not included in construction
 Inspection and testing

The operation and maintenance cost in subsequent years over the project life cycle
includes the following expenses:

 Land rent, if applicable

 Operating staff
 Labor and material for maintenance and repairs
 Periodic renovations
 Insurance and taxes
 Financing costs

40
  Utilities
 Owner's other expenses

The magnitude of each of these cost components depends on the nature, size and
location of the project as well as the management organization, among many
considerations. The owner is interested in achieving the lowest possible overall
project cost that is consistent with its investment objectives.

It is important for design professionals and construction managers to realize

that while the construction cost may be the single largest component of the
capital cost, other cost components are not insignificant. For example, land
acquisition costs are a major expenditure for building construction in high-
density urban areas, and construction financing costs can reach the same
order of magnitude as the construction cost in large projects such as the
construction of nuclear power plants.

From the owner's perspective, it is equally important to estimate the

corresponding operation and maintenance cost of each alternative for a
proposed facility in order to analyze the life cycle costs. The large
expenditures needed for facility maintenance, especially for publicly owned
infrastructure, are reminders of the neglect in the past to consider fully the
implications of operation and maintenance cost in the design stage.

In most construction budgets, there is an allowance for contingencies or

unexpected costs occuring during construction. This contingency amount
may be included within each cost item or be included in a single category of
construction contingency. The amount of contingency is based on historical
experience and the expected difficulty of a particular construction project.
For example, one construction firm makes estimates of the expected cost in
five different areas:

 Design development changes,

 Schedule adjustments,
 General administration changes (such as wage rates),
 Differing site conditions for those expected, and
 Third party requirements imposed during construction, such as new permits.

Contingent amounts not spent for construction can be released near the end of
construction to the owner or to add additional project elements.

In this chapter, we shall focus on the estimation of construction cost, with

only occasional reference to other cost components. In Chapter 6, we shall
deal with the economic evaluation of a constructed facility on the basis of
both the capital cost and the operation and maintenance cost in the life cycle
of the facility. It is at this stage that tradeoffs between operating and capital
costs can be analyzed.

41
Example 5-1: Energy project resource demands

The resources demands for three types of major energy projects investigated during
the energy crisis in the 1970's are shown in Table 5-1. These projects are: (1) an oil
shale project with a capacity of 50,000 barrels of oil product per day; (2) a coal
gasification project that makes gas with a heating value of 320 billions of British
thermal units per day, or equivalent to about 50,000 barrels of oil product per day;
and (3) a tar sand project with a capacity of 150,000 barrels of oil product per day.

For each project, the cost in billions of dollars, the engineering manpower
requirement for basic design in thousands of hours, the engineering
manpower requirement for detailed engineering in millions of hours, the
skilled labor requirement for construction in millions of hours and the
material requirement in billions of dollars are shown in Table 5-1. To build
several projects of such an order of magnitude concurrently could drive up
the costs and strain the availability of all resources required to complete the
projects. Consequently, cost estimation often represents an exercise in
professional judgment instead of merely compiling a bill of quantities and
collecting cost data to reach a total estimate mechanically.

TABLE 5-1 Resource Requirements of Some Major Energy Projects

Oil shale Coal gasification Tar Sands

(50,000 (320 billions (150,000
barrels/day) BTU/day) barrels/day)

Cost
2.5 4 8 to 10
   ($ billion)

Basic design
   (Thousands of 80 200 100
hours)

Detailed
engineering
3 to 4 4 to 5 6 to 8
   (Millions of
hours)

Construction
   (Millions of 20 30 40
hours)

Materials 1 2 2.5

42
    ($ billion)

Source: Exxon Research and Engineering Company, Florham Park,

NJ

Approaches to Cost Estimation

Cost estimating is one of the most important steps in project management. A cost
estimate establishes the base line of the project cost at different stages of
development of the project. A cost estimate at a given stage of project development
represents a prediction provided by the cost engineer or estimator on the basis of
available data. According to the American Association of Cost Engineers, cost
engineering is defined as that area of engineering practice where engineering
judgment and experience are utilized in the application of scientific principles and
techniques to the problem of cost estimation, cost control and profitability.

Virtually all cost estimation is performed according to one or some

combination of the following basic approaches:

Production function. In microeconomics, the relationship between the

output of a process and the necessary resources is referred to as the
production function. In construction, the production function may be
expressed by the relationship between the volume of construction and a
factor of production such as labor or capital. A production function relates
the amount or volume of output to the various inputs of labor, material and
equipment. For example, the amount of output Q may be derived as a
function of various input factors x1, x2, ..., xn by means of mathematical
and/or statistical methods. Thus, for a specified level of output, we may
attempt to find a set of values for the input factors so as to minimize the
production cost. The relationship between the size of a building project
(expressed in square feet) to the input labor (expressed in labor hours per
square foot) is an example of a production function for construction. Several
such production functions are shown in Figure 3-3 of Chapter 3.

Empirical cost inference. Empirical estimation of cost functions requires

statistical techniques which relate the cost of constructing or operating a
facility to a few important characteristics or attributes of the system. The
role of statistical inference is to estimate the best parameter values or
constants in an assumed cost function. Usually, this is accomplished by
means of regression analysis techniques.

Unit costs for bill of quantities. A unit cost is assigned to each of the
facility components or tasks as represented by the bill of quantities. The total
43
cost is the summation of the products of the quantities multiplied by the
corresponding unit costs. The unit cost method is straightforward in principle
but quite laborious in application. The initial step is to break down or
disaggregate a process into a number of tasks. Collectively, these tasks must
be completed for the construction of a facility. Once these tasks are defined
and quantities representing these tasks are assessed, a unit cost is assigned
to each and then the total cost is determined by summing the costs incurred
in each task. The level of detail in decomposing into tasks will vary
considerably from one estimate to another.

Allocation of joint costs. Allocations of cost from existing accounts may be

used to develop a cost function of an operation. The basic idea in this
method is that each expenditure item can be assigned to particular
characteristics of the operation. Ideally, the allocation of joint costs should be
causally related to the category of basic costs in an allocation process. In
many instances, however, a causal relationship between the allocation factor
and the cost item cannot be identified or may not exist. For example, in
construction projects, the accounts for basic costs may be classified
according to (1) labor, (2) material, (3) construction equipment, (4)
construction supervision, and (5) general office overhead. These basic costs
may then be allocated proportionally to various tasks which are subdivisions
of a project.

Types of Construction Cost Estimates

Construction cost constitutes only a fraction, though a substantial fraction, of the
total project cost. However, it is the part of the cost under the control of the
construction project manager. The required levels of accuracy of construction cost
estimates vary at different stages of project development, ranging from ball park
figures in the early stage to fairly reliable figures for budget control prior to
construction. Since design decisions made at the beginning stage of a project life
cycle are more tentative than those made at a later stage, the cost estimates made
at the earlier stage are expected to be less accurate. Generally, the accuracy of a
cost estimate will reflect the information available at the time of estimation.

Construction cost estimates may be viewed from different perspectives

because of different institutional requirements. In spite of the many types of
cost estimates used at different stages of a project, cost estimates can best
be classified into three major categories according to their functions. A
construction cost estimate serves one of the three basic functions: design,
bid and control. For establishing the financing of a project, either a design
estimate or a bid estimate is used.

44
 1. Design Estimates. For the owner or its designated design professionals, the
types of cost estimates encountered run parallel with the planning and design
as follows:
o Screening estimates (or order of magnitude estimates)
o Preliminary estimates (or conceptual estimates)
o Detailed estimates (or definitive estimates)
o Engineer's estimates based on plans and specifications

For each of these different estimates, the amount of design information

available typically increases.

2. Bid Estimates. For the contractor, a bid estimate submitted to the owner
either for competitive bidding or negotiation consists of direct construction
cost including field supervision, plus a markup to cover general overhead and
profits. The direct cost of construction for bid estimates is usually derived
from a combination of the following approaches.
o Subcontractor quotations
o Quantity takeoffs
o Construction procedures.

3. Control Estimates. For monitoring the project during construction, a control

estimate is derived from available information to establish:

o Budget estimate for financing

o Budgeted cost after contracting but prior to construction
o Estimated cost to completion during the progress of construction.

Estimation of Operating Costs

1. In order to analyze the life cycle costs of a proposed facility, it is
necessary to estimate the operation and maintenance costs over
time after the start up of the facility. The stream of operating
costs over the life of the facility depends upon subsequent
maintenance policies and facility use. In particular, the
magnitude of routine maintenance costs will be reduced if the
facility undergoes periodic repairs and rehabilitation at periodic
intervals.
2. Since the tradeoff between the capital cost and the operating
cost is an essential part of the economic evaluation of a facility,
the operating cost is viewed not as a separate entity, but as a
part of the larger parcel of life cycle cost at the planning and
design stage. The techniques of estimating life cycle costs are

45
 similar to those used for estimating capital costs, including
empirical cost functions and the unit cost method of estimating
the labor, material and equipment costs. However, it is the
interaction of the operating and capital costs which deserve
special attention.
3. As suggested earlier in the discussion of the exponential rule for
estimating, the value of the cost exponent may influence the
decision whether extra capacity should be built to accommodate
future growth. Similarly, the economy of scale may also influence
the decision on rehabilitation at a given time. As the
rehabilitation work becomes extensive, it becomes a capital
project with all the implications of its own life cycle. Hence, the
cost estimation of a rehabilitation project may also involve
capital and operating costs.
4. While deferring the discussion of the economic evaluation of
constructed facilities to Chapter 6, it is sufficient to point out that
the stream of operating costs over time represents a series of
costs at different time periods which have different values with
respect to the present. Consequently, the cost data at different
time periods must be converted to a common base line if
meaningful comparison is desired.

Example 5-17: Maintenance cost on a roadway

1. Maintenance costs for constructed roadways tend to increase

with both age and use of the facility. As an example, the
following empirical model was estimated for maintenance
expenditures on sections of the Ohio Turnpike:
2. C = 596 + 0.0019 V + 21.7 A
3. where C is the annual cost of routine maintenance per lane-mile
(in 1967 dollars), V is the volume of traffic on the roadway
(measured in equivalent standard axle loads, ESAL, so that a
heavy truck is represented as equivalent to many automobiles),
and A is the age of the pavement in years since the last
resurfacing. According to this model, routine maintenance costs
will increase each year as the pavement service deteriorates. In
addition, maintenance costs increase with additional pavement
stress due to increased traffic or to heavier axle loads, as
reflected in the variable V.
4. For example, for V = 500,300 ESAL and A = 5 years, the annual
cost of routine maintenance per lane-mile is estimated to be:
5. C = 596 + (0.0019)(500,300) + (21.7)(5)
= 596 + 950.5 + 108.5 = 1,655 (in 1967 dollars)

Example 5-18: Time stream of costs over the life of a roadway

46
 1. The time stream of costs over the life of a roadway depends
upon the intervals at which rehabilitation is carried out. If the
rehabilitation strategy and the traffic are known, the time stream
of costs can be estimated.
2. Using a life cycle model which predicts the economic life of
highway pavement on the basis of the effects of traffic and other
factors, an optimal schedule for rehabilitation can be developed.
For example, a time stream of costs and resurfacing projects for
one pavement section is shown in Figure 5-11. As described in
the previous example, the routine maintenance costs increase as
the pavement ages, but decline after each new resurfacing. As
the pavement continues to age, resurfacing becomes more
frequent until the roadway is completely reconstructed at the
end of 35 years.

References
1. Ahuja, H.N. and W.J. Campbell, Estimating: From Concept to
Completion, Prentice-Hall, Inc., Englewood Cliffs, NJ, 1987.
2. Clark, F.D., and A.B. Lorenzoni, Applied Cost Engineering, Marcel
Dekker, Inc., New York, 1978.
3. Clark, J.E., Structural Concrete Cost Estimating, McGraw-Hill, Inc., New
York, 1983.
4. Diekmann, J.R., "Probabilistic Estimating: Mathematics and
Applications," ASCE Journal of Construction Engineering and
Management, Vol. 109, 1983, pp. 297-308.
5. Humphreys, K.K. (ed.) Project and Cost Engineers' Handbook
(sponsored by American Association of Cost Engineers), 2nd Ed.,
Marcel Dekker, Inc., New York, 1984.
6. Maevis, A.C., "Construction Cost Control by the Owners," ASCE Journal
of the Construction Division, Vol. 106, 1980, pp. 435-446.
7. Wohl, M. and C. Hendrickson, Transportation Investment and Pricing
Principles, John Wiley & Sons, New York, 1984.

Pricing for Constructed Facilities

47
Because of the unique nature of constructed facilities, it is almost imperative
to have a separate price for each facility. The construction contract price
includes the direct project cost including field supervision expenses plus the
markup imposed by contractors for general overhead expenses and profit.
The factors influencing a facility price will vary by type of facility and location
as well. Within each of the major categories of construction such as
residential housing, commercial buildings, industrial complexes and
infrastructure, there are smaller segments which have very different
environments with regard to price setting. However, all pricing arrangements
have some common features in the form of the legal documents binding the
owner and the supplier(s) of the facility. Without addressing special issues in
various industry segments, the most common types of pricing arrangements
can be described broadly to illustrate the basic principles.

Competitive Bidding

The basic structure of the bidding process consists of the formulation of

detailed plans and specifications of a facility based on the objectives and
requirements of the owner, and the invitation of qualified contractors to bid
for the right to execute the project. The definition of a qualified contractor
usually calls for a minimal evidence of previous experience and financial
stability. In the private sector, the owner has considerable latitude in
selecting the bidders, ranging from open competition to the restriction of
bidders to a few favored contractors. In the public sector, the rules are
carefully delineated to place all qualified contractors on an equal footing for
competition, and strictly enforced to prevent collusion among contractors
and unethical or illegal actions by public officials.

Detailed plans and specifications are usually prepared by an

architectural/engineering firm which oversees the bidding process on behalf
of the owner. The final bids are normally submitted on either a lump sum or
unit price basis, as stipulated by the owner. A lump sum bid represents the
total price for which a contractor offers to complete a facility according to
the detailed plans and specifications. Unit price bidding is used in projects for
which the quantity of materials or the amount of labor involved in some key
tasks is particularly uncertain. In such cases, the contractor is permitted to
submit a list of unit prices for those tasks, and the final price used to
determine the lowest bidder is based on the lump sum price computed by
multiplying the quoted unit price for each specified task by the
corresponding quantity in the owner's estimates for quantities. However, the
total payment to the winning contractor will be based on the actual
quantities multiplied by the respective quoted unit prices.

48
Negotiated Contracts

Instead of inviting competitive bidding, private owners often choose to award

construction contracts with one or more selected contractors. A major reason
for using negotiated contracts is the flexibility of this type of pricing
arrangement, particularly for projects of large size and great complexity or
for projects which substantially duplicate previous facilities sponsored by the
owner. An owner may value the expertise and integrity of a particular
contractor who has a good reputation or has worked successfully for the
owner in the past. If it becomes necessary to meet a deadline for completion
of the project, the construction of a project may proceed without waiting for
the completion of the detailed plans and specifications with a contractor that
the owner can trust. However, the owner's staff must be highly
knowledgeable and competent in evaluating contractor proposals and
monitoring subsequent performance.

Generally, negotiated contracts require the reimbursement of direct project

cost plus the contractor's fee as determined by one of the following
methods:

1. Cost plus fixed percentage

2. Cost plus fixed fee
3. Cost plus variable fee
4. Target estimate
5. Guaranteed maximum price or cost

The fixed percentage or fixed fee is determined at the outset of the project,
while variable fee and target estimates are used as an incentive to reduce
costs by sharing any cost savings. A guaranteed maximum cost arrangement
imposes a penalty on a contractor for cost overruns and failure to complete
the project on time. With a guaranteed maximum price contract, amounts
below the maximum are typically shared between the owner and the
contractor, while the contractor is responsible for costs above the maximum.

Contract Provisions for Risk Allocation

Provisions for the allocation of risk among parties to a contract can appear in
numerous areas in addition to the total construction price. Typically, these
provisions assign responsibility for covering the costs of possible or
unforeseen occurances. A partial list of responsibilities with concomitant risk
that can be assigned to different parties would include:

 Force majeure (i.e., this provision absolves an owner or a contractor for

payment for costs due to "Acts of God" and other external events such as war
or labor strikes)

49
  Indemnification (i.e., this provision absolves the indemified party from any
payment for losses and damages incurred by a third party such as adjacent
property owners.)
 Liens (i.e., assurances that third party claims are settled such as "mechanics
liens" for worker wages),
 Labor laws (i.e., payments for any violation of labor laws and regulations on
the job site),
 Differing site conditions (i.e., responsibility for extra costs due to unexpected
site conditions),
 Delays and extensions of time,
 Liquidated damages (i.e., payments for any facility defects with payment
amounts agreed to in advance)
 Consequential damages (i.e., payments for actual damage costs assessed
upon impact of facility defects),
 Occupational safety and health of workers,
 Permits, licenses, laws, and regulations,
 Equal employment opportunity regulations,
 Termination for default by contractor,
 Suspension of work,
 Warranties and guarantees.

Types of Construction Contracts

While construction contracts serve as a means of pricing construction, they
also structure the allocation of risk to the various parties involved. The owner
has the sole power to decide what type of contract should be used for a
specific facility to be constructed and to set forth the terms in a contractual
agreement. It is important to understand the risks of the contractors
associated with different types of construction contracts.

Lump Sum Contract

In a lump sum contract, the owner has essentially assigned all the risk to the
contractor, who in turn can be expected to ask for a higher markup in order
to take care of unforeseen contingencies. Beside the fixed lump sum price,
other commitments are often made by the contractor in the form of
submittals such as a specific schedule, the management reporting system or
a quality control program. If the actual cost of the project is underestimated,
the underestimated cost will reduce the contractor's profit by that amount.
An overestimate has an opposite effect, but may reduce the chance of being
a low bidder for the project.

Unit Price Contract

In a unit price contract, the risk of inaccurate estimation of uncertain

quantities for some key tasks has been removed from the contractor.
However, some contractors may submit an "unbalanced bid" when it

50
discovers large discrepancies between its estimates and the owner's
estimates of these quantities. Depending on the confidence of the contractor
on its own estimates and its propensity on risk, a contractor can slightly raise
the unit prices on the underestimated tasks while lowering the unit prices on
other tasks. If the contractor is correct in its assessment, it can increase its
profit substantially since the payment is made on the actual quantities of
tasks; and if the reverse is true, it can lose on this basis. Furthermore, the
owner may disqualify a contractor if the bid appears to be heavily
unbalanced. To the extent that an underestimate or overestimate is caused
by changes in the quantities of work, neither error will effect the contractor's
profit beyond the markup in the unit prices.

Cost Plus Fixed Percentage Contract

For certain types of construction involving new technology or extremely

pressing needs, the owner is sometimes forced to assume all risks of cost
overruns. The contractor will receive the actual direct job cost plus a fixed
percentage, and have little incentive to reduce job cost. Furthermore, if there
are pressing needs to complete the project, overtime payments to workers
are common and will further increase the job cost. Unless there are
compelling reasons, such as the urgency in the construction of military
installations, the owner should not use this type of contract.

Cost Plus Fixed Fee Contract

Under this type of contract, the contractor will receive the actual direct job
cost plus a fixed fee, and will have some incentive to complete the job
quickly since its fee is fixed regardless of the duration of the project.
However, the owner still assumes the risks of direct job cost overrun while
the contractor may risk the erosion of its profits if the project is dragged on
beyond the expected time.

Cost Plus Variable Percentage Contract

For this type of contract, the contractor agrees to a penalty if the actual cost
exceeds the estimated job cost, or a reward if the actual cost is below the
estimated job cost. In return for taking the risk on its own estimate, the
contractor is allowed a variable percentage of the direct job-cost for its fee.
Furthermore, the project duration is usually specified and the contractor
must abide by the deadline for completion. This type of contract allocates
considerable risk for cost overruns to the owner, but also provides incentives
to contractors to reduce costs as much as possible.

51
Target Estimate Contract

This is another form of contract which specifies a penalty or reward to a

contractor, depending on whether the actual cost is greater than or less than
the contractor's estimated direct job cost. Usually, the percentages of
savings or overrun to be shared by the owner and the contractor are
predetermined and the project duration is specified in the contract. Bonuses
or penalties may be stipulated for different project completion dates.

Guaranteed Maximum Cost Contract

When the project scope is well defined, an owner may choose to ask the
contractor to take all the risks, both in terms of actual project cost and
project time. Any work change orders from the owner must be extremely
minor if at all, since performance specifications are provided to the owner at
the outset of construction. The owner and the contractor agree to a project
cost guaranteed by the contractor as maximum. There may be or may not be
additional provisions to share any savings if any in the contract. This type of
contract is particularly suitable for turnkey operation.

Relative Costs of Construction Contracts

Regardless of the type of construction contract selected by the owner, the
contractor recognizes that the actual construction cost will never be identical
to its own estimate because of imperfect information. Furthermore, it is
common for the owner to place work change orders to modify the original
scope of work for which the contractor will receive additional payments as
stipulated in the contract. The contractor will use different markups
commensurate with its market circumstances and with the risks involved in
different types of contracts, leading to different contract prices at the time of
bidding or negotiation. The type of contract agreed upon may also provide
the contractor with greater incentives to try to reduce costs as much as
possible. The contractor's gross profit at the completion of a project is
affected by the type of contract, the accuracy of its original estimate, and
the nature of work change orders. The owner's actual payment for the
project is also affected by the contract and the nature of work change orders.

In order to illustrate the relative costs of several types of construction

contracts, the pricing mechanisms for such construction contracts are
formulated on the same direct job cost plus corresponding markups
reflecting the risks. Let us adopt the following notation:

E= contractor's original estimate of the direct job cost at the time of contract award

M = amount of markup by the contractor in the contract

52
B = estimated construction price at the time of signing contract

A = contractor's actual cost for the original scope of work in the contract

U = underestimate of the cost of work in the original estimate (with negative value
of U denoting an overestimate)

C = additional cost of work due to change orders

P = actual payment to contractor by the owner

F = contractor's gross profit

R = basic percentage markup above the original estimate for fixed fee contract

Ri = premium percentage markup for contract type i such that the total percentage
markup is (R + Ri), e.g. (R + R1) for a lump sum contract, (R + R2) for a unit price
contract, and (R + R3) for a guaranteed maximum cost contract

N = a factor in the target estimate for sharing the savings in cost as agreed upon by
the owner and the contractor, with 0 N 1.

At the time of a contract award, the contract price is given by:

(8.1)

The underestimation of the cost of work in the original contract is defined as:

(8.2)

Then, at the completion of the project, the contractor's actual cost for the
original scope of work is:

(8.3)

For various types of construction contracts, the contractor's markup and the
price for construction agreed to in the contract are shown in Table 8-1. Note
that at the time of contract award, it is assumed that A = E, even though the
effects of underestimation on the contractor's gross profits are different for

53
various types of construction contracts when the actual cost of the project is
assessed upon its completion.

TABLE 8-1  Original Estimated Contract Prices

Type of Contract Markup Contract Price

B = (1 +R+
1. Lump sum
M= (R +R1)E R1)E
2. Unit price
M= (R + R2)E B = (1 +R+
3. Cost plus fixed %
M= RA = RE R2)E
4. Cost plus fixed fee
M= RE B = (1 + R)E
5. Cost plus variable
M= R (2E - A) = RE B = (1 + R)E
%
M= RE + N (E-A) = B = (1 + R)E
6. Target estimate
RE B = (1 + R)E
7. Guaranteed max
M= (R + R3)E B = (1 + R+
cost
R3)E

Payments of change orders are also different in contract provisions for

different types of contracts. Suppose that payments for change orders
agreed upon for various types of contracts are as shown in column 2 of Table
8-2. The owner's actual payments based on these provisions as well as the
incentive provisions for various types of contracts are given in column 3 of
Table 8-2. The corresponding contractor's profits under various contractual
arrangements are shown in Table 8-3.

TABLE 8-2  Owner's Actual Payment with Different Contract

Provisions

Change Order
Type of Contract Payment Owner's Payment

1. Lump sum P = B + C(1 + R + R1)

2. Unit price C(1 + R + R 1) P = (1 + R + R2)A + C
3. Cost plus fixed % C(1 + R + R 2) P = (1 + R)(A + C)
4. Cost plus fixed fee C(1 + R) P = RE + A + C
5. Cost plus variable C P = R (2E - A + C) + A
% C(1 + R) +C
6. Target estimate C P = RE + N (E - A) + A
7. Guaranteed max 0 +C
cost P=B

54
 TABLE 8-3  Contractor's Gross Profit with Different Contract
Provisions

Profit from Change

Type of Contract Order Contractor's Gross Profit

1. Lump sum
F= E - A + (R + R1)(E +
2. Unit price C(R + R1)
C)
3. Cost plus fixed % C(R + R2
F= (R + R2)(A + C)
4. Cost plus fixed fee CR
F= R (A + C)
5. Cost plus variable 0
F= RE
% CR
F= R (2E - A + C)
6. Target estimate 0
F= RE + N (E - A)
7. Guaranteed max -C
F= (1 + R + R3)E - A - C
cost

It is important to note that the equations in Tables 8-1 through 8-3 are
illustrative, subject to the simplified conditions of payments assumed under
the various types of contracts. When the negotiated conditions of payment
are different, the equations must also be modified.

Example 8-5: Contractor's Gross Profits under Different Contract

Arrangements

Consider a construction project for which the contractor's original estimate is

$6,000,000. For various types of contracts, R = 10%, R1 = 2%, R2 = 1%, R3 =
5% and N = 0.5. The contractor is not compensated for change orders under
the guaranteed maximum cost contract if the total cost for the change
orders is within 6% ($360,000) of the original estimate. Determine the
contractor's gross profit for each of the seven types of construction contracts
for each of the following conditions.

(a) U = 0, C = 0
(b) U = 0, C = 6% E = $360,000
(c) U = 4% E = $240,000, C = 0
(d) U = 4% E = $240,000 C = 6% E = $360,000
(e) U = -4% E = -$240,000, C = 0
(f) U = -4% E = -$240,000, C = 6% E = $360,000

In this example, the percentage markup for the cost plus fixed percentage
contract is 10% which is used as the bench mark for comparison. The

55
percentage markup for the lump sum contract is 12% while that for the unit
price contract is 11%, reflecting the degrees of higher risk. The fixed fee for
the cost plus fixed fee is based on 10% of the estimated cost, which is
comparable to the cost plus fixed percentage contract if there is no
overestimate or underestimate in cost. The basic percentage markup is 10%
for both the cost plus variable percentage contract and the target estimator
contract, but they are subject to incentive bonuses and penalties that are
built in the formulas for owners' payments. The percentage markup for the
guaranteed maximum cost contract is 15% to account for the high risk
undertaken by the contractor. The results of computation for all seven types
of contracts under different conditions of underestimation U and change
order C are shown in Table 8-4

TABLE 8-4  Contractor's Gross Profits under Different Conditions

(in $1,000)

U=0 U=0 U=4%E U=4%E U=-4%E U=-4%E

Type of Contract C=0 C=6%E C=0 C=6%E C=0 C=6%E

1. lump sum
$720 $763 $480 $523 $960 $1,003
2. unit price
660 700 686 726 634 674
3. cost + fixed %
600 636 624 660 576 612
4. cost + fixed
600 600 600 600 600 600
fee
600 636 576 616 624 660
5. cost + Var %
600 600 480 480 720 720
6. target estimate
900 540 660 300 1,140 780
7. guar. max. cost

References
1. Au, T., R.L. Bostleman and E.W. Parti, "Construction Management
Game-Deterministic Model," Asce Journal of the Construction Division,
Vol. 95, 1969, pp. 25-38.
2. Building Research Advisory Board, Exploratory Study on Responsibility,
Liability and Accountability for Risks in Construction, National Academy
of Sciences, Washington, D.C., 1978.
3. Construction Industry Cost Effectiveness Project, "Contractual
Arrangements," Report A-7, The Business Roundtable, New York,
October 1982.
4. Dudziak, W. and C. Hendrickson, "A Negotiating Simulation Game,"
ASCE Journal of Management in Engineering, Vol. 4, No. 2, 1988.

56
 5. Graham, P.H., "Owner Management of Risk in Construction Contracts,"
Current Practice in Cost Estimating and Cost Control, Proceedings of an
ASCE Conference, Austin, Texas, April 1983, pp. 207-215.
6. Green, E.D., "Getting Out of Court -- Private Resolution of Civil
Disputes," Boston Bar Journal, May-June 1986, pp. 11-20.
7. Park, William R., The Strategy of Contracting for Profit, 2nd Edition,
Prentice-Hall, Englewood Cliffs, NJ, 1986.
8. Raiffa, Howard, The Art and Science of Negotiation, Harvard University
Press, Cambridge, MA, 1982.
9. Walker, N., E.N. Walker and T.K. Rohdenburg, Legal Pitfalls in
Architecture, Engineering and Building Construction, 2nd Edition,
McGraw-Hill Book Co., New York, 1979.

Construction Planning

Construction planning is a fundamental and challenging activity in the

management and execution of construction projects. It involves the choice of
technology, the definition of work tasks, the estimation of the required
resources and durations for individual tasks, and the identification of any
interactions among the different work tasks. A good construction plan is the
basis for developing the budget and the schedule for work. Developing the
construction plan is a critical task in the management of construction, even if
the plan is not written or otherwise formally recorded. In addition to these
technical aspects of construction planning, it may also be necessary to make
organizational decisions about the relationships between project participants
and even which organizations to include in a project. For example, the extent
to which sub-contractors will be used on a project is often determined during
construction planning.

Forming a construction plan is a highly challenging task. As Sherlock Holmes

noted:

Most people, if you describe a train of events to them, will tell you what the
result would be. They can put those events together in their minds, and
argue from them that something will come to pass. There are few people,
however, who, if you told them a result, would be able to evolve from their
own inner consciousness what the steps were which led up to that result.
This power is what I mean when I talk of reasoning backward.

Like a detective, a planner begins with a result (i.e. a facility design) and
must synthesize the steps required to yield this result. Essential aspects of
construction planning include the generation of required activities, analysis
of the implications of these activities, and choice among the various
alternative means of performing activities. In contrast to a detective
discovering a single train of events, however, construction planners also face

57
the normative problem of choosing the best among numerous alternative
plans. Moreover, a detective is faced with an observable result, whereas a
planner must imagine the final facility as described in the plans and
specifications.

In developing a construction plan, it is common to adopt a primary emphasis

on either cost control or on schedule control as illustrated in Fig. 9-1. Some
projects are primarily divided into expense categories with associated costs.
In these cases, construction planning is cost or expense oriented. Within the
categories of expenditure, a distinction is made between costs incurred
directly in the performance of an activity and indirectly for the
accomplishment of the project. For example, borrowing expenses for project
financing and overhead items are commonly treated as indirect costs. For
other projects, scheduling of work activities over time is critical and is
emphasized in the planning process. In this case, the planner insures that
the proper precedences among activities are maintained and that efficient
scheduling of the available resources prevails. Traditional scheduling
procedures emphasize the maintenance of task precedences (resulting in
critical path scheduling procedures) or efficient use of resources over time
(resulting in job shop scheduling procedures). Finally, most complex projects
require consideration of both cost and scheduling over time, so that
planning, monitoring and record keeping must consider both dimensions. In
these cases, the integration of schedule and budget information is a major
concern.

Choice of Technology and Construction

Method
As in the development of appropriate alternatives for facility design, choices
of appropriate technology and methods for construction are often ill-
structured yet critical ingredients in the success of the project. For example,
a decision whether to pump or to transport concrete in buckets will directly
affect the cost and duration of tasks involved in building construction. A
decision between these two alternatives should consider the relative costs,
reliabilities, and availability of equipment for the two transport methods.
Unfortunately, the exact implications of different methods depend upon
numerous considerations for which information may be sketchy during the
planning phase, such as the experience and expertise of workers or the
particular underground condition at a site.

In selecting among alternative methods and technologies, it may be

necessary to formulate a number of construction plans based on alternative
methods or assumptions. Once the full plan is available, then the cost, time
and reliability impacts of the alternative approaches can be reviewed. This
examination of several alternatives is often made explicit in bidding

58
competitions in which several alternative designs may be proposed or value
engineering for alternative construction methods may be permitted. In this
case, potential constructors may wish to prepare plans for each alternative
design using the suggested construction method as well as to prepare plans
for alternative construction methods which would be proposed as part of the
value engineering process.

In forming a construction plan, a useful approach is to simulate the

construction process either in the imagination of the planner or with a formal
computer based simulation technique. By observing the result, comparisons
among different plans or problems with the existing plan can be identified.
For example, a decision to use a particular piece of equipment for an
operation immediately leads to the question of whether or not there is
sufficient access space for the equipment. Three dimensional geometric
models in a computer aided design (CAD) system may be helpful in
simulating space requirements for operations and for identifying any
interferences. Similarly, problems in resource availability identified during
the simulation of the construction process might be effectively forestalled by
providing additional resources as part of the construction plan.

Example 9-1: A roadway rehabilitation

An example from a roadway rehabilitation project in Pittsburgh, PA can serve

to illustrate the importance of good construction planning and the effect of
technology choice. In this project, the decks on overpass bridges as well as
the pavement on the highway itself were to be replaced. The initial
construction plan was to work outward from each end of the overpass
bridges while the highway surface was replaced below the bridges. As a
result, access of equipment and concrete trucks to the overpass bridges was
a considerable problem. However, the highway work could be staged so that
each overpass bridge was accessible from below at prescribed times. By
pumping concrete up to the overpass bridge deck from the highway below,
costs were reduced and the work was accomplished much more quickly.

Defining Work Tasks

At the same time that the choice of technology and general method are
considered, a parallel step in the planning process is to define the various
work tasks that must be accomplished. These work tasks represent the
necessary framework to permit scheduling of construction activities, along
with estimating the resources required by the individual work tasks, and any
necessary precedences or required sequence among the tasks. The terms
work "tasks" or "activities" are often used interchangeably in construction
plans to refer to specific, defined items of work. In job shop or manufacturing
terminology, a project would be called a "job" and an activity called an

59
"operation", but the sense of the terms is equivalent. The scheduling
problem is to determine an appropriate set of activity start time, resource
allocations and completion times that will result in completion of the project
in a timely and efficient fashion. Construction planning is the necessary fore-
runner to scheduling. In this planning, defining work tasks, technology and
construction method is typically done either simultaeously or in a series of
iterations.

the sub-task "clean concrete forms" could be subdivided into the various
operations:

 Transport forms from on-site storage and unload onto the cleaning
station.
 Position forms on the cleaning station.
 Wash forms with water.
 Clean concrete debris from the form's surface.
 Coat the form surface with an oil release agent for the next use.
 Unload the form from the cleaning station and transport to the storage
location.

Defining Precedence Relationships Among

Activities
Once work activities have been defined, the relationships among the
activities can be specified. Precedence relations between activities signify
that the activities must take place in a particular sequence. Numerous
natural sequences exist for construction activities due to requirements for
structural integrity, regulations, and other technical requirements. For
example, design drawings cannot be checked before they are drawn.
Diagramatically, precedence relationships can be illustrated by a network or
graph in which the activities are represented by arrows as in Figure 9-0. The
arrows in Figure 9-3 are called branches or links in the activity network, while
the circles marking the beginning or end of each arrow are called nodes or
events. In this figure, links represent particular activities, while the nodes
represent milestone events.

60
 Figure 9-3  Illustrative Set of Four Activities with Precedences

More complicated precedence relationships can also be specified. For

example, one activity might not be able to start for several days after the
completion of another activity. As a common example, concrete might have
to cure (or set) for several days before formwork is removed. This restriction
on the removal of forms activity is called a lag between the completion of
one activity (i.e., pouring concrete in this case) and the start of another
activity (i.e., removing formwork in this case). Many computer based
scheduling programs permit the use of a variety of precedence relationships.

Three mistakes should be avoided in specifying predecessor relationships for

construction plans. First, a circle of activity precedences will result in an
impossible plan. For example, if activity A precedes activity B, activity B
precedes activity C, and activity C precedes activity A, then the project can
never be started or completed! Figure 9-4 illustrates the resulting activity
network. Fortunately, formal scheduling methods and good computer
scheduling programs will find any such errors in the logic of the construction
plan.

Figure 9-4  Example of an Impossible Work Plan

Forgetting a necessary precedence relationship can be more insidious. For

example, suppose that installation of dry wall should be done prior to floor
finishing. Ignoring this precedence relationship may result in both activities
being scheduled at the same time. Corrections on the spot may result in
increased costs or problems of quality in the completed project.
Unfortunately, there are few ways in which precedence omissions can be

61
found other than with checks by knowledgeable managers or by comparison
to comparable projects. One other possible but little used mechanism for
checking precedences is to conduct a physical or computer based simulation
of the construction process and observe any problems.

Finally, it is important to realize that different types of precedence

relationships can be defined and that each has different implications for the
schedule of activities:

 Some activities have a necessary technical or physical relationship that

cannot be superseded. For example, concrete pours cannot proceed
before formwork and reinforcement are in place.
 Some activities have a necessary precedence relationship over a
continuous space rather than as discrete work task relationships. For
example, formwork may be placed in the first part of an excavation
trench even as the excavation equipment continues to work further
along in the trench. Formwork placement cannot proceed further than
the excavation, but the two activities can be started and stopped
independently within this constraint.
 Some "precedence relationships" are not technically necessary but are
imposed due to implicit decisions within the construction plan. For
example, two activities may require the same piece of equipment so a
precedence relationship might be defined between the two to insure
that they are not scheduled for the same time period. Which activity is
scheduled first is arbitrary. As a second example, reversing the
sequence of two activities may be technically possible but more
expensive. In this case, the precedence relationship is not physically
necessary but only applied to reduce costs as perceived at the time of
scheduling.

In revising schedules as work proceeds, it is important to realize that

different types of precedence relationships have quite different implications
for the flexibility and cost of changing the construction plan. Unfortunately,
many formal scheduling systems do not possess the capability of indicating
this type of flexibility. As a result, the burden is placed upon the manager of
making such decisions and insuring realistic and effective schedules. With all
the other responsibilities of a project manager, it is no surprise that
preparing or revising the formal, computer based construction plan is a low
priority to a manager in such cases. Nevertheless, formal construction plans
may be essential for good management of complicated projects.

Example 9-4: Precedence Definition for Site Preparation and

Foundation Work

Suppose that a site preparation and concrete slab foundation construction

project consists of nine different activities:
62
A. Site clearing (of brush and minor debris),
B. Removal of trees,
C. General excavation,
D. Grading general area,
E. Excavation for utility trenches,
F. Placing formwork and reinforcement for concrete,
G. Installing sewer lines,
H. Installing other utilities,
I. Pouring concrete.

Activities A (site clearing) and B (tree removal) do not have preceding

activities since they depend on none of the other activities. We assume that
activities C (general excavation) and D (general grading) are preceded by
activity A (site clearing). It might also be the case that the planner wished to
delay any excavation until trees were removed, so that B (tree removal)
would be a precedent activity to C (general excavation) and D (general
grading). Activities E (trench excavation) and F (concrete preparation)
cannot begin until the completion of general excavation and tree removal,
since they involve subsequent excavation and trench preparation. Activities
G (install lines) and H (install utilities) represent installation in the utility
trenches and cannot be attempted until the trenches are prepared, so that
activity E (trench excavation) is a preceding activity. We also assume that
the utilities should not be installed until grading is completed to avoid
equipment conflicts, so activity D (general grading) is also preceding
activities G (install sewers) and H (install utilities). Finally, activity I (pour
concrete) cannot begin until the sewer line is installed and formwork and
reinforcement are ready, so activities F and G are preceding. Other utilities
may be routed over the slab foundation, so activity H (install utilities) is not
necessarily a preceding activity for activity I (pour concrete). The result of
our planning are the immediate precedences shown in Table 9-1.

TABLE 9-1  Precedence Relations for a Nine-Activity Project

Example
Activit Predecessor
y Description s
Site clearing
A ---
Removal of trees
B ---
General excavation
C A
Grading general area
D A
Excavation for utility trenches
E B,C
Placing formwork and reinforcement for
F B,C
concrete
G D,E
Installing sewer lines
H D,E
Installing other utilities
I F,G
Pouring concrete

63
With this information, the next problem is to represent the activities in a
network diagram and to determine all the precedence relationships among
the activities. One network representation of these nine activities is shown in
Figure 9-5, in which the activities appear as branches or links between
nodes. The nodes represent milestones of possible beginning and starting
times. This representation is called an activity-on-branch diagram. Note that
an initial event beginning activity is defined (Node 0 in Figure 9-5), while
node 5 represents the completion of all activities.

Figure 9-6  Activity-on-Node Representation of a Nine Activity Project

It is also notable that Table 9-1 lists only the immediate predecessor
relationships. Clearly, there are other precedence relationships which involve
more than one activity. For example, "installing sewer lines" (activity G)
cannot be undertaken before "site clearing" (Activity A) is complete since the
activity "grading general area" (Activity D) must precede activity G and must
follow activity A. Table 9-1 is an implicit precedence list since only immediate
predecessors are recorded. An explicit predecessor list would include all of
the preceding activities for activity G. Table 9-2 shows all such predecessor
relationships implied by the project plan. This table can be produced by
tracing all paths through the network back from a particular activity and can
be performed algorithmically. [7] For example, inspecting Figure 9-6 reveals
that each activity except for activity B depends upon the completion of
activity A.

TABLE 9-2  All Activity Precedence Relationships for a Nine-Activity Project

Predecessor Direct Successor All Successor All Predecessor
Activity Activities Activities Activities
A C,D E,F,G,H,I ---
B E,F G,H,I ---
C E,F G,H,I A
D G,H I A
E G,H I A,B,C
F I --- A,B,C
G I --- A,B,C,D,E
H --- --- A,B,C,D,E
I --- --- A,B,C,D,E,F,G

64
 Estimating Activity Durations
In most scheduling procedures, each work activity has an associated time
duration. These durations are used extensively in preparing a schedule. For
example, suppose that the durations shown in Table 9-3 were estimated for
the project diagrammed in Figure 9-0. The entire set of activities would then
require at least 3 days, since the activities follow one another directly and
require a total of 1.0 + 0.5 + 0.5 + 1.0 = 3 days. If another activity
proceeded in parallel with this sequence, the 3 day minimum duration of
these four activities is unaffected. More than 3 days would be required for
the sequence if there was a delay or a lag between the completion of one
activity and the start of another.

TABLE 9-3  Durations and Predecessors for a Four Activity Project

Illustration
Activity Predecessor Duration (Days)
Excavate trench --- 1.0
Place formwork Excavate trench 0.5
Place reinforcing Place formwork 0.5
Pour concrete Place reinforcing 1.0

All formal scheduling procedures rely upon estimates of the durations of the
various project activities as well as the definitions of the predecessor
relationships among tasks. The variability of an activity's duration may also
be considered. Formally, the probability distribution of an activity's duration
as well as the expected or most likely duration may be used in scheduling. A
probability distribution indicates the chance that a particular activity
duration will occur. In advance of actually doing a particular task, we cannot
be certain exactly how long the task will require.

A straightforward approach to the estimation of activity durations is to keep

historical records of particular activities and rely on the average durations
from this experience in making new duration estimates. Since the scope of
activities are unlikely to be identical between different projects, unit
productivity rates are typically employed for this purpose. For example, the
duration of an activity Dij such as concrete formwork assembly might be
estimated as:

(9.1)

65
where Aij is the required formwork area to assemble (in square yards), Pij is
the average productivity of a standard crew in this task (measured in square
yards per hour), and Nij is the number of crews assigned to the task. In some
organizations, unit production time, Tij, is defined as the time required to
complete a unit of work by a standard crew (measured in hours per square
yards) is used as a productivity measure such that Tij is a reciprocal of Pij.

A formula such as Eq. (9.1) can be used for nearly all construction activities.
Typically, the required quantity of work, Aij is determined from detailed
examination of the final facility design. This quantity-take-off to obtain the
required amounts of materials, volumes, and areas is a very common
process in bid preparation by contractors. In some countries, specialized
quantity surveyors provide the information on required quantities for all
potential contractors and the owner. The number of crews working, Nij, is
decided by the planner. In many cases, the number or amount of resources
applied to particular activities may be modified in light of the resulting
project plan and schedule. Finally, some estimate of the expected work
productivity, Pij must be provided to apply Equation (9.1). As with cost
factors, commercial services can provide average productivity figures for
many standard activities of this sort. Historical records in a firm can also
provide data for estimation of productivities.

The calculation of a duration as in Equation (9.1) is only an approximation to

the actual activity duration for a number of reasons. First, it is usually the
case that peculiarities of the project make the accomplishment of a
particular activity more or less difficult. For example, access to the forms in a
particular location may be difficult; as a result, the productivity of
assembling forms may be lower than the average value for a particular
project. Often, adjustments based on engineering judgment are made to the
calculated durations from Equation (9.1) for this reason.

In addition, productivity rates may vary in both systematic and random

fashions from the average. An example of systematic variation is the effect
of learning on productivity. As a crew becomes familiar with an activity and
the work habits of the crew, their productivity will typically improve. Figure
9-7 illustrates the type of productivity increase that might occur with
experience; this curve is called a learning curve. The result is that
productivity Pij is a function of the duration of an activity or project. A
common construction example is that the assembly of floors in a building
might go faster at higher levels due to improved productivity even though
the transportation time up to the active construction area is longer. Again,
historical records or subjective adjustments might be made to represent
learning curve variations in average productivity.

66
 Figure 9-7  Illustration of Productivity Changes Due to Learning

Random factors will also influence productivity rates and make estimation of
activity durations uncertain. For example, a scheduler will typically not know
at the time of making the initial schedule how skillful the crew and manager
will be that are assigned to a particular project. The productivity of a skilled
designer may be many times that of an unskilled engineer. In the absence of
specific knowledge, the estimator can only use average values of
productivity.

Weather effects are often very important and thus deserve particular
attention in estimating durations. Weather has both systematic and random
influences on activity durations. Whether or not a rainstorm will come on a
particular day is certainly a random effect that will influence the productivity
of many activities. However, the likelihood of a rainstorm is likely to vary
systematically from one month or one site to the next. Adjustment factors for
inclement weather as well as meteorological records can be used to
incorporate the effects of weather on durations. As a simple example, an
activity might require ten days in perfect weather, but the activity could not
proceed in the rain. Furthermore, suppose that rain is expected ten percent

67
of the days in a particular month. In this case, the expected activity duration
is eleven days including one expected rain day.

Finally, the use of average productivity factors themselves cause problems in

the calculation presented in Equation (9.1). The expected value of the
multiplicative reciprocal of a variable is not exactly equal to the reciprocal of
the variable's expected value. For example, if productivity on an activity is
either six in good weather (ie., P=6) or two in bad weather (ie., P=2) and
good or bad weather is equally likely, then the expected productivity is P =
(6)(0.5) + (2)(0.5) = 4, and the reciprocal of expected productivity is 1/4.
However, the expected reciprocal of productivity is E[1/P] = (0.5)/6 + (0.5)/2
= 1/3. The reciprocal of expected productivity is 25% less than the expected
value of the reciprocal in this case! By representing only two possible
productivity values, this example represents an extreme case, but it is
always true that the use of average productivity factors in Equation (9.1) will
result in optimistic estimates of activity durations. The use of actual
averages for the reciprocals of productivity or small adjustment factors may
be used to correct for this non-linearity problem.

The simple duration calculation shown in Equation (9.1) also assumes an

inverse linear relationship between the number of crews assigned to an
activity and the total duration of work. While this is a reasonable assumption
in situations for which crews can work independently and require no special
coordination, it need not always be true. For example, design tasks may be
divided among numerous architects and engineers, but delays to insure
proper coordination and communication increase as the number of workers
increase. As another example, insuring a smooth flow of material to all crews
on a site may be increasingly difficult as the number of crews increase. In
these latter cases, the relationship between activity duration and the number
of crews is unlikely to be inversely proportional as shown in Equation (9.1).
As a result, adjustments to the estimated productivity from Equation (9.1)
must be made. Alternatively, more complicated functional relationships
might be estimated between duration and resources used in the same way
that nonlinear preliminary or conceptual cost estimate models are prepared.

One mechanism to formalize the estimation of activity durations is to employ

a hierarchical estimation framework. This approach decomposes the
estimation problem into component parts in which the higher levels in the
hierarchy represent attributes which depend upon the details of lower level
adjustments and calculations. For example, Figure 9-8 represents various
levels in the estimation of the duration of masonry construction. At the
lowest level, the maximum productivity for the activity is estimated based
upon general work conditions. Table 9-4 illustrates some possible maximum
productivity values that might be employed in this estimation. At the next
higher level, adjustments to these maximum productivities are made to
account for special site conditions and crew compositions; table 9-5

68
illustrates some possible adjustment rules. At the highest level, adjustments
for overall effects such as weather are introduced. Also shown in Figure 9-8
are nodes to estimate down or unproductive time associated with the
masonry construction activity. The formalization of the estimation process
illustrated in Figure 9-8 permits the development of computer aids for the
estimation process or can serve as a conceptual framework for a human
estimator.

TABLE 9-4  Maximum Productivity Estimates for Masonry

Work
Masonry Maximum produstivity
unit size Condition(s) achievable
8 inch block None 400 units/day/mason
6 inch Wall is "long" 430 units/day/mason
6 inch Wall is not "long" 370 units/day/mason
12 inch Labor is nonunion 300 units/day/mason
4 inch Wall is "long" 480 units/day/mason
Weather is "warm and
dry"
or high-strength mortar
is used
4 inch Wall is not "long" 430 units/day/mason
Weather is "warm and
dry"
or high-strength mortar
is used
4 inch Wall is "long" 370 units/day/mason
Weather is not "warm
and dry"
or high-strength mortar
is not used
4 inch Wall is not "long" 320 units/day/mason
Weather is not "warm
and dry"
or high-strength mortar
is not used
8 inch There is support from 1,000 units/day/mason
existing wall
8 inch There is no support 750 units/day/mason
from existing wall
12 inch There is support from 700 units/day/mason
existing wall
12 inch There is no support 550

69
 from existing wall

TABLE 9-5  Possible Adjustments to Maximum Productivities

for Masonry Construction/caption>
Adjustment
magnitude
(% of
Impact Condition(s) maximum)
Crew type Crew type is nonunion 15%
Job is "large"
Crew type Crew type is union 10%
Job is "small"
Supporting There are less than two laborers 20%
labor per crew
Supporting There are more than two 10%
labor masons/laborers
Elevation Steel frame building with 10%
masonry exterior
wall has "insufficient" support
labor
Elevation Solid masonry building with work 12%
on exterior uses nonunion labor
Visibility block is not covered 7%
Temperature Temperature is below 45 F o
15%
Temperature Temperature is above 45 F o
10%
Brick texture bricks are baked high 10%
Weather is cold or moist

70
Figure 9-8  A Hierarchical Estimation Framework for Masonry Construction

References
1. Baracco-Miller, E., "Planning for Construction," Unpublished MS Thesis,
Dept. of Civil Engineering, Carnegie Mellon University, 1987.
2. Construction Specifications Institute, MASTERFORMAT - Master List of
Section Titles and Numbers, Releasing Industry Group, Alexandria, VA,
1983.
3. Jackson, M.J. Computers in Construction Planning and Control, Allen &
Unwin, London, 1986.
4. Sacerdoti, E.D. A Structure for Plans and Behavior, Elsevier North-
Holland, New York, 1977.
5. Zozaya-Gorostiza, C., "An Expert System for Construction Project
Planning," Unpublished PhD Dissertation, Dept. of Civil Engineering,
Carnegie Mellon University, 1988.

71
Relevance of Construction Schedules
In addition to assigning dates to project activities, project scheduling is
intended to match the resources of equipment, materials and labor with
project work tasks over time. Good scheduling can eliminate problems due to
production bottlenecks, facilitate the timely procurement of necessary
materials, and otherwise insure the completion of a project as soon as
possible. In contrast, poor scheduling can result in considerable waste as
laborers and equipment wait for the availability of needed resources or the
completion of preceding tasks. Delays in the completion of an entire project
due to poor scheduling can also create havoc for owners who are eager to
start using the constructed facilities.

Attitudes toward the formal scheduling of projects are often extreme. Many
owners require detailed construction schedules to be submitted by
contractors as a means of monitoring the work progress. The actual work
performed is commonly compared to the schedule to determine if
construction is proceeding satisfactorily. After the completion of
construction, similar comparisons between the planned schedule and the
actual accomplishments may be performed to allocate the liability for project
delays due to changes requested by the owner, worker strikes or other
unforeseen circumstances.

In contrast to these instances of reliance upon formal schedules, many field

supervisors disdain and dislike formal scheduling procedures. In particular,
the critical path method of scheduling is commonly required by owners and
has been taught in universities for over two decades, but is often regarded in
the field as irrelevant to actual operations and a time consuming distraction.
The result is "seat-of-the-pants" scheduling that can be good or that can
result in grossly inefficient schedules and poor productivity. Progressive
construction firms use formal scheduling procedures whenever the
complexity of work tasks is high and the coordination of different workers is
required.

Formal scheduling procedures have become much more common with the
advent of personal computers on construction sites and easy-to-use software
programs. Sharing schedule information via the Internet has also provided a
greater incentive to use formal scheduling methods. Savvy construction
supervisors often carry schedule and budget information around with
wearable or handheld computers. As a result, the continued development of
easy to use computer programs and improved methods of presenting
schedules hav overcome the practical problems associated with formal
scheduling mechanisms. But problems with the use of scheduling techniques
will continue until managers understand their proper use and limitations.

72
A basic distinction exists between resource oriented and time oriented
scheduling techniques. For resource oriented scheduling, the focus is on
using and scheduling particular resources in an effective fashion. For
example, the project manager's main concern on a high-rise building site
might be to insure that cranes are used effectively for moving materials;
without effective scheduling in this case, delivery trucks might queue on the
ground and workers wait for deliveries on upper floors. For time oriented
scheduling, the emphasis is on determining the completion time of the
project given the necessary precedence relationships among activities.
Hybrid techniques for resource leveling or resource constrained scheduling in
the presence of precedence relationships also exist. Most scheduling
software is time-oriented, although virtually all of the programs have the
capability to introduce resource constaints.

This chapter will introduce the fundamentals of scheduling methods. Our

discussion will generally assume that computer based scheduling programs
will be applied. Consequently, the wide variety of manual or mechanical
scheduling techniques will not be discussed in any detail. These manual
methods are not as capable or as convenient as computer based scheduling.
With the availability of these computer based scheduling programs, it is
important for managers to understand the basic operations performed by
scheduling programs. Moreover, even if formal methods are not applied in
particular cases, the conceptual framework of formal scheduling methods
provides a valuable reference for a manager. Accordingly, examples
involving hand calculations will be provided throughout the chapter to
facilitate understanding.

The Critical Path Method

The most widely used scheduling technique is the critical path method (CPM)
for scheduling, often referred to as critical path scheduling. This method
calculates the minimum completion time for a project along with the possible
start and finish times for the project activities. Indeed, many texts and
managers regard critical path scheduling as the only usable and practical
scheduling procedure. Computer programs and algorithms for critical path
scheduling are widely available and can efficiently handle projects with
thousands of activities.

The critical path itself represents the set or sequence of

predecessor/successor activities which will take the longest time to
complete. The duration of the critical path is the sum of the activities'
durations along the path. Thus, the critical path can be defined as the
longest possible path through the "network" of project activities, as
described in Chapter 9. The duration of the critical path represents the
minimum time required to complete a project. Any delays along the critical

73
path would imply that additional time would be required to complete the
project.

There may be more than one critical path among all the project activities, so
completion of the entire project could be delayed by delaying activities along
any one of the critical paths. For example, a project consisting of two
activities performed in parallel that each require three days would have each
activity critical for a completion in three days.

Formally, critical path scheduling assumes that a project has been divided
into activities of fixed duration and well defined predecessor relationships. A
predecessor relationship implies that one activity must come before another
in the schedule. No resource constraints other than those implied by
precedence relationships are recognized in the simplest form of critical path
scheduling.

To use critical path scheduling in practice, construction planners often

represent a resource constraint by a precedence relation. A constraint is
simply a restriction on the options available to a manager, and a resource
constraint is a constraint deriving from the limited availability of some
resource of equipment, material, space or labor. For example, one of two
activities requiring the same piece of equipment might be arbitrarily
assumed to precede the other activity. This artificial precedence constraint
insures that the two activities requiring the same resource will not be
scheduled at the same time. Also, most critical path scheduling algorithms
impose restrictions on the generality of the activity relationships or network
geometries which are used. In essence, these restrictions imply that the
construction plan can be represented by a network plan in which activities
appear as nodes in a network, as in Figure 9-6. Nodes are numbered, and no
two nodes can have the same number or designation. Two nodes are
introduced to represent the start and completion of the project itself.

The actual computer representation of the project schedule generally

consists of a list of activities along with their associated durations, required
resources and predecessor activities. Graphical network representations
rather than a list are helpful for visualization of the plan and to insure that
mathematical requirements are met. The actual input of the data to a
computer program may be accomplished by filling in blanks on a screen
menu, reading an existing datafile, or typing data directly to the program
with identifiers for the type of information being provided.

With an activity-on-branch network, dummy activities may be introduced for

the purposes of providing unique activity designations and maintaining the
correct sequence of activities. A dummy activity is assumed to have no time
duration and can be graphically represented by a dashed line in a network.
Several cases in which dummy activities are useful are illustrated in Fig. 10-

74
1. In Fig. 10-1(a), the elimination of activity C would mean that both
activities B and D would be identified as being between nodes 1 and 3.
However, if a dummy activity X is introduced, as shown in part (b) of the
figure, the unique designations for activity B (node 1 to 2) and D (node 1 to
3) will be preserved. Furthermore, if the problem in part (a) is changed so
that activity E cannot start until both C and D are completed but that F can
start after D alone is completed, the order in the new sequence can be
indicated by the addition of a dummy activity Y, as shown in part (c). In
general, dummy activities may be necessary to meet the requirements of
specific computer scheduling algorithms, but it is important to limit the
number of such dummy link insertions to the extent possible.

75
Figure 10-1  Dummy Activities in a Project Network

76
Many computer scheduling systems support only one network
representation, either activity-on-branch or acitivity-on-node. A good project
manager is familiar with either representation.

Example 10-1: Formulating a network diagram

Suppose that we wish to form an activity network for a seven-activity network with
the following precedences:

Activity Predecessors

A ---
B ---
C A,B
D C
E C
F D
G D,E

Forming an activity-on-branch network for this set of activities might begin

be drawing activities A, B and C as shown in Figure 10-2(a). At this point, we
note that two activities (A and B) lie between the same two event nodes; for
clarity, we insert a dummy activity X and continue to place other activities as
in Figure 10-2(b). Placing activity G in the figure presents a problem,
however, since we wish both activity D and activity E to be predecessors.
Inserting an additional dummy activity Y along with activity G completes the
activity network, as shown in Figure 10-2(c). A comparable activity-on-node
representation is shown in Figure 10-3, including project start and finish
nodes. Note that dummy activities are not required for expressing
precedence relationships in activity-on-node networks.

77
Figure 10-2  An Activity-on-Branch Network for Critical Path Scheduling

78
 Figure 10-3  An Activity-on-Node Network for Critical Path Scheduling

Calculations for Critical Path Scheduling

With the background provided by the previous sections, we can formulate
the critical path scheduling mathematically. We shall present an algorithm or
set of instructions for critical path scheduling assuming an activity-on-branch
project network. We also assume that all precedences are of a finish-to-start
nature, so that a succeeding activity cannot start until the completion of a
preceding activity. In a later section, we present a comparable algorithm for
activity-on-node representations with multiple precedence types.

Suppose that our project network has n+1 nodes, the initial event being 0
and the last event being n. Let the time at which node events occur be x1,
x2,...., xn, respectively. The start of the project at x0 will be defined as time 0.
Nodal event times must be consistent with activity durations, so that an
activity's successor node event time must be larger than an activity's
predecessor node event time plus its duration. For an activity defined as
starting from event i and ending at event j, this relationship can be
expressed as the inequality constraint, xj xi + Dij where Dij is the duration of
activity (i,j). This same expression can be written for every activity and must
hold true in any feasible schedule. Mathematically, then, the critical path
scheduling problem is to minimize the time of project completion (xn) subject
to the constraints that each node completion event cannot occur until each
of the predecessor activities have been completed:

Minimize

(10.1)

subject to

79
This is a linear programming problem since the objective value to be
minimized and each of the constraints is a linear equation.

Rather than solving the critical path scheduling problem with a linear
programming algorithm (such as the Simplex method), more efficient
techniques are available that take advantage of the network structure of the
problem. These solution methods are very efficient with respect to the
required computations, so that very large networks can be treated even with
personal computers. These methods also give some very useful information
about possible activity schedules. The programs can compute the earliest
and latest possible starting times for each activity which are consistent with
completing the project in the shortest possible time. This calculation is of
particular interest for activities which are not on the critical path (or paths),
since these activities might be slightly delayed or re-scheduled over time as
a manager desires without delaying the entire project.

An efficient solution process for critical path scheduling based upon node
labeling is shown in Table 10-1. Three algorithms appear in the table. The
event numbering algorithm numbers the nodes (or events) of the project
such that the beginning event has a lower number than the ending event for
each activity. Technically, this algorithm accomplishes a "topological sort" of
the activities. The project start node is given number 0. As long as the
project activities fulfill the conditions for an activity-on-branch network, this
type of numbering system is always possible. Some software packages for
critical path scheduling do not have this numbering algorithm programmed,
so that the construction project planners must insure that appropriate
numbering is done.

TABLE 10-1  Critical Path Scheduling Algorithms (Activity-on-Branch

Representation)

Event Numbering Algorithm

Step 1: Give the starting event number 0.

Step 2: Give the next number to any unnumbered event whose predecessor
events
     are each already numbered.

80
 Repeat Step 2 until all events are numbered.

Earliest Event Time Algorithm

Step 1: Let E(0) = 0.

Step 2: For j = 1,2,3,...,n (where n is the last event), let
     E(j) = maximum {E(i) + Dij}
where the maximum is computed over all activities (i,j) that have j as the
ending event.

Latest Event Time Algorithm

Step 1: Let L(n) equal the required completion time of the project.
     Note: L(n) must equal or exceed E(n).
Step 2: For i = n-1, n-2, ..., 0, let
     L(i) = minimum {L(j) - Dij}
where the minimum is computed over all activities (i,j) that have i as the
starting event.

The earliest event time algorithm computes the earliest possible time, E(i),
at which each event, i, in the network can occur. Earliest event times are
computed as the maximum of the earliest start times plus activity durations
for each of the activities immediately preceding an event. The earliest start
time for each activity (i,j) is equal to the earliest possible time for the
preceding event E(i):

(10.2)

The earliest finish time of each activity (i,j) can be calculated by:

(10.3)

Activities are identified in this algorithm by the predecessor node (or event) i
and the successor node j. The algorithm simply requires that each event in
the network should be examined in turn beginning with the project start
(node 0).

The latest event time algorithm computes the latest possible time, L(j), at
which each event j in the network can occur, given the desired completion

81
time of the project, L(n) for the last event n. Usually, the desired completion
time will be equal to the earliest possible completion time, so that E(n) =
L(n) for the final node n. The procedure for finding the latest event time is
analogous to that for the earliest event time except that the procedure
begins with the final event and works backwards through the project
activities. Thus, the earliest event time algorithm is often called a forward
pass through the network, whereas the latest event time algorithm is the the
backward pass through the network. The latest finish time consistent with
completion of the project in the desired time frame of L(n) for each activity
(i,j) is equal to the latest possible time L(j) for the succeeding event:

(10.4)

The latest start time of each activity (i,j) can be calculated by:

(10.5)

The earliest start and latest finish times for each event are useful pieces of
information in developing a project schedule. Events which have equal
earliest and latest times, E(i) = L(i), lie on the critical path or paths. An
activity (i,j) is a critical activity if it satisfies all of the following conditions:

(10.6)

(10.7)

(10.8)

Hence, activities between critical events are also on a critical path as long as
the activity's earliest start time equals its latest start time, ES(i,j) = LS(i,j). To
avoid delaying the project, all the activities on a critical path should begin as
soon as possible, so each critical activity (i,j) must be scheduled to begin at
the earliest possible start time, E(i).

Example 10-2: Critical path scheduling calculations

82
Consider the network shown in Figure 10-4 in which the project start is given
number 0. Then, the only event that has each predecessor numbered is the
successor to activity A, so it receives number 1. After this, the only event that has
each predecessor numbered is the successor to the two activities B and C, so it
receives number 2. The other event numbers resulting from the algorithm are also
shown in the figure. For this simple project network, each stage in the numbering
process found only one possible event to number at any time. With more than one
feasible event to number, the choice of which to number next is arbitrary. For
example, if activity C did not exist in the project for Figure 10-4, the successor
event for activity A or for activity B could have been numbered 1.

Figure 10-4  A Nine-Activity Project Network

Once the node numbers are established, a good aid for manual scheduling is
to draw a small rectangle near each node with two possible entries. The left
hand side would contain the earliest time the event could occur, whereas the
right hand side would contain the latest time the event could occur without
delaying the entire project. Figure 10-5 illustrates a typical box.

Figure 10-5  E(i) and L(i) Display for Hand Calculation of Critical Path for
Activity-on-Branch Representation

83
 TABLE 10-2  Precedence Relations and Durations for a Nine Activity
Project Example

Activit
y Description Predecessors Duration

Site clearing
A --- 4
Removal of trees
B --- 3
General excavation
C A 8
Grading general area
D A 7
Excavation for trenches
E B, C 9
Placing formwork and reinforcement for
F B, C 12
concrete
G D, E 2
Installing sewer lines
H D, E 5
Installing other utilities
I F, G 6
Pouring concrete

For the network in Figure 10-4 with activity durations in Table 10-2, the
earliest event time calculations proceed as follows:

Step 1
E(0) = 0

Step 2

j=1 E(1) = Max{E(0) + D01} = Max{ 0 + 4 } = 4

E(2) = Max{E(0) + D02; E(1) + D12} = Max{0 + 3; 4 +

j=2
8} = 12

E(3) = Max{E(1) + D13; E(2) + D23} = Max{4 + 7; 12 +

j=3
9} = 21

E(4) = Max{E(2) + D24; E(3) + D34} = Max{12 + 12; 21

j=4
+ 2} = 24

E(5) = Max{E(3) + D35; E(4) + D45} = Max{21 + 5; 24

j=5
+ 6} = 30

Thus, the minimum time required to complete the project is 30 since E(5) =
30. In this case, each event had at most two predecessors.

84
For the "backward pass," the latest event time calculations are:

Step 1
L(5) = E(5) = 30

Step 2

j=4 L(4) = Min {L(5) - D45} = Min {30 - 6} = 24

L(3) = Min {L(5) - D35; L(4) - D34} = Min {30 -5; 24 -

j=3
2} = 22

L(2) = Min {L(4) - D24; L(3) - D23} = Min {24 - 12; 22

j=2
- 9} = 12

L(1) = Min {L(3) - D13; L(2) - D12} = Min {22 - 7; 12 -

j=1
8} = 4

L(0) = Min {L(2) - D02; L(1) - D01} = Min {12 - 3; 4 -

j=0
4} = 0

In this example, E(0) = L(0), E(1) = L(1), E(2) = L(2), E(4) = L(4),and E(5) =
L(5). As a result, all nodes but node 3 are in the critical path. Activities on the
critical path include A (0,1), C (1,2), F (2,4) and I (4,5) as shown in Table 10-
3.

TABLE 10-3  Identification of Activities on the Critical Path for a Nine-

Activity Project

Duration Earliest start time Latest finish time Latest start time
Activity Dij E(i)=ES(i,j) L(j)=LF(i,j) LS(i,j)

A (0,1) 4 0* 4* 0
B (0,2) 3 0 12 9
C (1,2) 8 4* 12* 4
D (1,3) 7 4 22 15
E (2,3) 9 12 22 13
F (2,4) 12 12* 24* 12
G (3,4) 2 21 24 22
H (3,5) 5 21 30 25
I (4,5) 6 24 30* 24

*Activity on a critical path since E(i) + DiJ = L(j).

Activity Float and Schedules

85
A number of different activity schedules can be developed from the critical
path scheduling procedure described in the previous section. An earliest
time schedule would be developed by starting each activity as soon as
possible, at ES(i,j). Similarly, a latest time schedule would delay the start of
each activity as long as possible but still finish the project in the minimum
possible time. This late schedule can be developed by setting each activity's
start time to LS(i,j).

Activities that have different early and late start times (i.e., ES(i,j) < LS(i,j))
can be scheduled to start anytime between ES(i,j) and LS(i,j) as shown in
Figure 10-6. The concept of float is to use part or all of this allowable range
to schedule an activity without delaying the completion of the project. An
activity that has the earliest time for its predecessor and successor nodes
differing by more than its duration possesses a window in which it can be
scheduled. That is, if E(i) + Dij < L(j), then some float is available in which to
schedule this activity.

Figure 10-6  Illustration of Activity Float

86
Float is a very valuable concept since it represents the scheduling flexibility
or "maneuvering room" available to complete particular tasks. Activities on
the critical path do not provide any flexibility for scheduling nor leeway in
case of problems. For activities with some float, the actual starting time
might be chosen to balance work loads over time, to correspond with
material deliveries, or to improve the project's cash flow.

Of course, if one activity is allowed to float or change in the schedule, then

the amount of float available for other activities may decrease. Three
separate categories of float are defined in critical path scheduling:

1. Free float is the amount of delay which can be assigned to any one activity
without delaying subsequent activities. The free float, FF(i,j), associated with
activity (i,j) is:

(10.9)

2. Independent float is the amount of delay which can be assigned to any one
activity without delaying subsequent activities or restricting the scheduling of
preceding activities. Independent float, IF(i,j), for activity (i,j) is calculated as:

(10.10)

3. Total float is the maximum amount of delay which can be assigned to any
activity without delaying the entire project. The total float, TF(i,j), for any
activity (i,j) is calculated as:

(10.11)

Each of these "floats" indicates an amount of flexibility associated with an

activity. In all cases, total float equals or exceeds free float, while
independent float is always less than or equal to free float. Also, any activity
on a critical path has all three values of float equal to zero. The converse of
this statement is also true, so any activity which has zero total float can be
recognized as being on a critical path.

87
The various categories of activity float are illustrated in Figure 10-6 in which
the activity is represented by a bar which can move back and forth in time
depending upon its scheduling start. Three possible scheduled starts are
shown, corresponding to the cases of starting each activity at the earliest
event time, E(i), the latest activity start time LS(i,j), and at the latest event
time L(i). The three categories of float can be found directly from this figure.
Finally, a fourth bar is included in the figure to illustrate the possibility that
an activity might start, be temporarily halted, and then re-start. In this case,
the temporary halt was sufficiently short that it was less than the
independent float time and thus would not interfere with other activities.
Whether or not such work splitting is possible or economical depends upon
the nature of the activity.

As shown in Table 10-3, activity D(1,3) has free and independent floats of 10
for the project shown in Figure 10-4. Thus, the start of this activity could be
scheduled anytime between time 4 and 14 after the project began without
interfering with the schedule of other activities or with the earliest
completion time of the project. As the total float of 11 units indicates, the
start of activity D could also be delayed until time 15, but this would require
that the schedule of other activities be restricted. For example, starting
activity D at time 15 would require that activity G would begin as soon as
activity D was completed. However, if this schedule was maintained, the
overall completion date of the project would not be changed.

Example 10-3: Critical path for a fabrication project

As another example of critical path scheduling, consider the seven activities

associated with the fabrication of a steel component shown in Table 10-4. Figure 10-
7 shows the network diagram associated with these seven activities. Note that an
additional dummy activity X has been added to insure that the correct precedence
relationships are maintained for activity E. A simple rule to observe is that if an
activity has more than one immediate predecessor and another activity has at least
one but not all of these predecessor activity as a predecessor, a dummy activity will
be required to maintain precedence relationships. Thus, in the figure, activity E has
activities B and C as predecessors, while activity D has only activity C as a
predecessor. Hence, a dummy activity is required. Node numbers have also been
added to this figure using the procedure outlined in Table 10-1. Note that the node
numbers on nodes 1 and 2 could have been exchanged in this numbering process
since after numbering node 0, either node 1 or node 2 could be numbered next.

TABLE 10-4  Precedences and Durations for a Seven

Activity Project

Activity Description Predecessors Duration

A Preliminary design --- 6

88
 Evaluation of design
B A 1
Contract negotiation
C --- 8
Preparation of fabrication
D C 5
plant
E B, C 9
Final design
F D, E 12
Fabrication of Product
G F 3
Shipment of Product to owner

Figure 10-7  Illustration of a Seven Activity Project Network

The results of the earliest and latest event time algorithms (appearing in
Table 10-1) are shown in Table 10-5. The minimum completion time for the
project is 32 days. In this small project, all of the event nodes except node 1
are on the critical path. Table 10-6 shows the earliest and latest start times
for the various activities including the different categories of float. Activities
C,E,F,G and the dummy activity X are seen to lie on the critical path.

TABLE 10-5  Event Times for a Seven Activity

Project

Node Earliest Time E(i) Latest Time L(j)

0 0 0
1 6 7
2 8 8
3 8 8

89
 4 17 17
5 29 29
6 32 32

TABLE 10-6  Earliest Start, Latest Start and Activity Floats for a Seven
Activity Project

Latest start Free

Activit Earliest start time float Independent Total
y time ES(i,j) LS(i,j) float float

A (0,1) 0 1 0 0 1
B (1,3) 6 7 1 0 1
C (0,2) 0 0 0 0 0
D (2,4) 8 12 4 4 4
E (3,4) 8 8 0 0 0
F (4,5) 17 17 0 0 0
G (5,6) 29 29 0 0 0
X (2,3) 8 8 0 0 0

Presenting Project Schedules

Communicating the project schedule is a vital ingredient in successful project
management. A good presentation will greatly ease the manager's problem
of understanding the multitude of activities and their inter-relationships.
Moreover, numerous individuals and parties are involved in any project, and
they have to understand their assignments. Graphical presentations of
project schedules are particularly useful since it is much easier to
comprehend a graphical display of numerous pieces of information than to
sift through a large table of numbers. Early computer scheduling systems
were particularly poor in this regard since they produced pages and pages of
numbers without aids to the manager for understanding them. A short
example appears in Tables 10-5 and 10-6; in practice, a project summary
table would be much longer. It is extremely tedious to read a table of activity
numbers, durations, schedule times, and floats and thereby gain an
understanding and appreciation of a project schedule. In practice, producing
diagrams manually has been a common prescription to the lack of
automated drafting facilities. Indeed, it has been common to use computer
programs to perform critical path scheduling and then to produce bar charts

90
of detailed activity schedules and resource assignments manually. With the
availability of computer graphics, the cost and effort of producing graphical
presentations has been significantly reduced and the production of
presentation aids can be automated.

Network diagrams for projects have already been introduced. These

diagrams provide a powerful visualization of the precedences and
relationships among the various project activities. They are a basic means of
communicating a project plan among the participating planners and project
monitors. Project planning is often conducted by producing network
representations of greater and greater refinement until the plan is
satisfactory.

A useful variation on project network diagrams is to draw a time-scaled

network. The activity diagrams shown in the previous section were
topological networks in that only the relationship between nodes and
branches were of interest. The actual diagram could be distorted in any way
desired as long as the connections between nodes were not changed. In
time-scaled network diagrams, activities on the network are plotted on a
horizontal axis measuring the time since project commencement. Figure 10-
8 gives an example of a time-scaled activity-on-branch diagram for the nine
activity project in Figure 10-4. In this time-scaled diagram, each node is
shown at its earliest possible time. By looking over the horizontal axis, the
time at which activity can begin can be observed. Obviously, this time scaled
diagram is produced as a display after activities are initially scheduled by the
critical path method.

91
 Figure 10-8  Illustration of a Time Scaled Network Diagram with Nine
Activities

Another useful graphical representation tool is a bar or Gantt chart

illustrating the scheduled time for each activity. The bar chart lists activities
and shows their scheduled start, finish and duration. An illustrative bar chart
for the nine activity project appearing in Figure 10-4 is shown in Figure 10-9.
Activities are listed in the vertical axis of this figure, while time since project
commencement is shown along the horizontal axis. During the course of
monitoring a project, useful additions to the basic bar chart include a vertical
line to indicate the current time plus small marks to indicate the current
state of work on each activity. In Figure 10-9, a hypothetical project state

92
after 4 periods is shown. The small "v" marks on each activity represent the
current state of each activity.

Figure 10-9  An Example Bar Chart for a Nine Activity Project

Bar charts are particularly helpful for communicating the current state and
schedule of activities on a project. As such, they have found wide acceptance
as a project representation tool in the field. For planning purposes, bar charts

93
are not as useful since they do not indicate the precedence relationships
among activities. Thus, a planner must remember or record separately that a
change in one activity's schedule may require changes to successor
activities. There have been various schemes for mechanically linking activity
bars to represent precedences, but it is now easier to use computer based
tools to represent such relationships.

Other graphical representations are also useful in project monitoring. Time

and activity graphs are extremely useful in portraying the current status of a
project as well as the existence of activity float. For example, Figure 10-10
shows two possible schedules for the nine activity project described in Table
9-1 and shown in the previous figures. The first schedule would occur if each
activity was scheduled at its earliest start time, ES(i,j) consistent with
completion of the project in the minimum possible time. With this schedule,
Figure 10-10 shows the percent of project activity completed versus time.
The second schedule in Figure 10-10 is based on latest possible start times
for each activity, LS(i,j). The horizontal time difference between the two
feasible schedules gives an indication of the extent of possible float. If the
project goes according to plan, the actual percentage completion at different
times should fall between these curves. In practice, a vertical axis
representing cash expenditures rather than percent completed is often used
in developing a project representation of this type. For this purpose, activity
cost estimates are used in preparing a time versus completion graph.
Separate "S-curves" may also be prepared for groups of activities on the
same graph, such as separate curves for the design, procurement,
foundation or particular sub-contractor activities.

94
 Figure 10-10  Example of Percentage Completion versus Time for
Alternative Schedules with a Nine Activity Project

Time versus completion curves are also useful in project monitoring. Not only
the history of the project can be indicated, but the future possibilities for
earliest and latest start times. For example, Figure 10-11 illustrates a project
that is forty percent complete after eight days for the nine activity example.
In this case, the project is well ahead of the original schedule; some activities
were completed in less than their expected durations. The possible earliest
and latest start time schedules from the current project status are also
shown on the figure.

95
Figure 10-11  Illustration of Actual Percentage Completion versus Time for a
Nine Activity Project Underway

Graphs of resource use over time are also of interest to project planners and
managers. An example of resource use is shown in Figure 10-12 for the
resource of total employment on the site of a project. This graph is prepared
by summing the resource requirements for each activity at each time period
for a particular project schedule. With limited resources of some kind, graphs
of this type can indicate when the competition for a resource is too large to
accommodate; in cases of this kind, resource constrained scheduling may be
necessary as described in Section 10.9. Even without fixed resource
constraints, a scheduler tries to avoid extreme fluctuations in the demand for
labor or other resources since these fluctuations typically incur high costs for

96
training, hiring, transportation, and management. Thus, a planner might alter
a schedule through the use of available activity floats so as to level or
smooth out the demand for resources. Resource graphs such as Figure 10-12
provide an invaluable indication of the potential trouble spots and the
success that a scheduler has in avoiding them.

Figure 10-12  Illustration of Resource Use over Time for a Nine Activity
Project

A common difficulty with project network diagrams is that too much

information is available for easy presentation in a network. In a project with,
say, five hundred activities, drawing activities so that they can be seen
without a microscope requires a considerable expanse of paper. A large
project might require the wall space in a room to include the entire diagram.
On a computer display, a typical restriction is that less than twenty activities
can be successfully displayed at the same time. The problem of displaying
numerous activities becomes particularly acute when accessory information
such as activity identifying numbers or phrases, durations and resources are
added to the diagram.

97
One practical solution to this representation problem is to define sets of
activities that can be represented together as a single activity. That is, for
display purposes, network diagrams can be produced in which one "activity"
would represent a number of real sub-activities. For example, an activity
such as "foundation design" might be inserted in summary diagrams. In the
actual project plan, this one activity could be sub-divided into numerous
tasks with their own precedences, durations and other attributes. These sub-
groups are sometimes termed fragnets for fragments of the full network. The
result of this organization is the possibility of producing diagrams that
summarize the entire project as well as detailed representations of particular
sets of activities. The hierarchy of diagrams can also be introduced to the
production of reports so that summary reports for groups of activities can be
produced. Thus, detailed representations of particular activities such as
plumbing might be prepared with all other activities either omitted or
summarized in larger, aggregate activity representations. The
CSI/MASTERSPEC activity definition codes described in Chapter 9 provide a
widely adopted example of a hierarchical organization of this type. Even if
summary reports and diagrams are prepared, the actual scheduling would
use detailed activity characteristics, of course.

An example figure of a sub-network appears in Figure 10-13. Summary

displays would include only a single node A to represent the set of activities
in the sub-network. Note that precedence relationships shown in the master
network would have to be interpreted with care since a particular
precedence might be due to an activity that would not commence at the
start of activity on the sub-network.

98
 Figure 10-13  Illustration of a Sub-Network in a Summary Diagram

The use of graphical project representations is an important and extremely

useful aid to planners and managers. Of course, detailed numerical reports
may also be required to check the peculiarities of particular activities. But
graphs and diagrams provide an invaluable means of rapidly communicating
or understanding a project schedule. With computer based storage of basic
project data, graphical output is readily obtainable and should be used
whenever possible.

Finally, the scheduling procedure described in Section 10.3 simply counted

days from the initial starting point. Practical scheduling programs include a
calendar conversion to provide calendar dates for scheduled work as well as
the number of days from the initiation of the project. This conversion can be
accomplished by establishing a one-to-one correspondence between project
dates and calendar dates. For example, project day 2 would be May 4 if the
project began at time 0 on May 2 and no holidays intervened. In this
calendar conversion, weekends and holidays would be excluded from
consideration for scheduling, although the planner might overrule this
feature. Also, the number of work shifts or working hours in each day could
be defined, to provide consistency with the time units used is estimating

99
activity durations. Project reports and graphs would typically use actual
calendar days.

Critical Path Scheduling for Activity-on-Node

and with Leads, Lags, and Windows
Performing the critical path scheduling algorithm for activity-on-node
representations is only a small variation from the activity-on-branch
algorithm presented above. An example of the activity-on-node diagram for
a seven activity network is shown in Figure 10-3. Some addition terminology
is needed to account for the time delay at a node associated with the task
activity. Accordingly, we define: ES(i) as the earliest start time for activity
(and node) i, EF(i) is the earliest finish time for activity (and node) i, LS(i) is
the latest start and LF(i) is the latest finish time for activity (and node) i.
Table 10-7 shows the relevant calculations for the node numbering
algorithm, the forward pass and the backward pass calculations.

TABLE 10-7  Critical Path Scheduling Algorithms (Activity-on-Node

Representation)

Activity Numbering Algorithm

Step 1: Give the starting activity number 0.

Step 2: Give the next number to any unnumbered activity whose
predecessor activities
     are each already numbered.
Repeat Step 2 until all activities are numbered.

Forward Pass

Step 1: Let E(0) = 0.

Step 2: For j = 1,2,3,...,n (where n is the last activity), let
     ES(j) = maximum {EF(i)}
where the maximum is computed over all activities (i) that have j as their
successor.
Step 3: EF(j) = ES(j) + Dj

Backward Pass

Step 1: Let L(n) equal the required completion time of the project.
     Note: L(n) must equal or exceed E(n).
Step 2: For i = n-1, n-2, ..., 0, let
     LF(i) = minimum {LS(j)}
where the minimum is computed over all activities (j) that have i as their
predecessor.

100
 Step 3: LS(i) = LF(i) - Di

For manual application of the critical path algorithm shown in Table 10-7, it is
helpful to draw a square of four entries, representing the ES(i), EF(i), LS(i)
and LF (i) as shown in Figure 10-14. During the forward pass, the boxes for
ES(i) and EF(i) are filled in. As an exercise for the reader, the seven activity
network in Figure 10-3 can be scheduled. Results should be identical to those
obtained for the activity-on-branch calculations.

Figure 10-14  ES, EF, LS and LF Display for Hand Calculation of Critical Path
for Activity-on-Node Representation

Building on the critical path scheduling calculations described in the previous

sections, some additional capabilities are useful. Desirable extensions
include the definition of allowable windows for activities and the introduction
of more complicated precedence relationships among activities. For
example, a planner may wish to have an activity of removing formwork from
a new building component follow the concrete pour by some pre-defined lag
period to allow setting. This delay would represent a required gap between
the completion of a preceding activity and the start of a successor. The
scheduling calculations to accommodate these complications will be
described in this section. Again, the standard critical path scheduling
assumptions of fixed activity durations and unlimited resource availability
will be made here, although these assumptions will be relaxed in later
sections.

A capability of many scheduling programs is to incorporate types of activity

interactions in addition to the straightforward predecessor finish to successor
start constraint used in Section 10.3. Incorporation of additional categories of
interactions is often called precedence diagramming. [2] For example, it may
be the case that installing concrete forms in a foundation trench might begin
a few hours after the start of the trench excavation. This would be an
example of a start-to-start constraint with a lead: the start of the trench-
excavation activity would lead the start of the concrete-form-placement

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activity by a few hours. Eight separate categories of precedence constraints
can be defined, representing greater than (leads) or less than (lags) time
constraints for each of four different inter-activity relationships. These
relationships are summarized in Table 10-8. Typical precedence relationships
would be:

 Direct or finish-to-start leads

The successor activity cannot start until the preceding activity is complete by
at least the prescribed lead time (FS). Thus, the start of a successor activity
must exceed the finish of the preceding activity by at least FS.
 Start-to-start leads
The successor activity cannot start until work on the preceding activity has
been underway by at least the prescribed lead time (SS).
 Finish-to-finish leadss
The successor activity must have at least FF periods of work remaining at the
completion of the preceding activity.
 Start-to-finish leads
The successor activity must have at least SF periods of work remaining at the
start of the preceding activity.

While the eight precedence relationships in Table 10-8 are all possible, the
most common precedence relationship is the straightforward direct
precedence between the finish of a preceding activity and the start of the
successor activity with no required gap (so FS = 0).

TABLE 10-8  Eight Possible Activity Precedence Relationships

Relationship Explanation

Finish-to-start Latest Finish of Predecessor Earliest Start of Successor

Lead + FS

Finish-to-start Latest Finish of Predecessor Earliest Start of Successor

Lag + FS

Start-to-start Earliest Start of Predecessor Earliest Start of Successor

Lead + SS

Start-to-start Earliest Start of Predecessor Earliest Start of Successor

Lag + SS

Finish-to-finish Latest Finish of Predecessor Earliest Finish of Successor

Lead + FF

Finish-to-finish Latest Finish of Predecessor Earliest Finish of Successor

Lag

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 + FF

Start-to-finish Earliest Start of Predecessor Earliest Finish of Successor

Lead + SF

Start-to-finish Earliest Start of Predecessor Earliest Finish of Successor

Lag + SF

The computations with these lead and lag constraints are somewhat more
complicated variations on the basic calculations defined in Table 10-1 for
critical path scheduling. For example, a start-to-start lead would modify the
calculation of the earliest start time to consider whether or not the necessary
lead constraint was met:

(10.12)

where SSij represents a start-to-start lead between activity (i,j) and any of
the activities starting at event j.

The possibility of interrupting or splitting activities into two work segments

can be particularly important to insure feasible schedules in the case of
numerous lead or lag constraints. With activity splitting, an activity is divided
into two sub-activities with a possible gap or idle time between work on the
two subactivities. The computations for scheduling treat each sub-activity
separately after a split is made. Splitting is performed to reflect available
scheduling flexibility or to allow the development of a feasible schedule. For
example, splitting may permit scheduling the early finish of a successor
activity at a date later than the earliest start of the successor plus its
duration. In effect, the successor activity is split into two segments with the
later segment scheduled to finish after a particular time. Most commonly,
this occurs when a constraint involving the finish time of two activities
determines the required finish time of the successor. When this situation
occurs, it is advantageous to split the successor activity into two so the first
part of the successor activity can start earlier but still finish in accordance
with the applicable finish-to-finish constraint.

Finally, the definition of activity windows can be extremely useful. An activity

window defines a permissible period in which a particularly activity may be
scheduled. To impose a window constraint, a planner could specify an
earliest possible start time for an activity (WES) or a latest possible
completion time (WLF). Latest possible starts (WLS) and earliest possible

103
finishes (WEF) might also be imposed. In the extreme, a required start time
might be insured by setting the earliest and latest window start times equal
(WES = WLS). These window constraints would be in addition to the time
constraints imposed by precedence relationships among the various project
activities. Window constraints are particularly useful in enforcing milestone
completion requirements on project activities. For example, a milestone
activity may be defined with no duration but a latest possible completion
time. Any activities preceding this milestone activity cannot be scheduled for
completion after the milestone date. Window constraints are actually a
special case of the other precedence constraints summarized above:
windows are constraints in which the precedecessor activity is the project
start. Thus, an earliest possible start time window (WES) is a start-to-start
lead.

One related issue is the selection of an appropriate network representation.

Generally, the activity-on-branch representation will lead to a more compact
diagram and is also consistent with other engineering network
representations of structures or circuits. [3] For example, the nine activities
shown in Figure 10-4 result in an activity-on-branch network with six nodes
and nine branches. In contrast, the comparable activity-on-node network
shown in Figure 9-6 has eleven nodes (with the addition of a node for project
start and completion) and fifteen branches. The activity-on-node diagram is
more complicated and more difficult to draw, particularly since branches
must be drawn crossing one another. Despite this larger size, an important
practical reason to select activity-on-node diagrams is that numerous types
of precedence relationships are easier to represent in these diagrams. For
example, different symbols might be used on each of the branches in Figure
9-6 to represent direct precedences, start-to-start precedences, start-to-
finish precedences, etc. Alternatively, the beginning and end points of the
precedence links can indicate the type of lead or lag precedence
relationship. Another advantage of activity-on-node representations is that
the introduction of dummy links as in Figure 10-1 is not required. Either
representation can be used for the critical path scheduling computations
described earlier. In the absence of lead and lag precedence relationships, it
is more common to select the compact activity-on-branch diagram, although
a unified model for this purpose is described in Chapter 11. Of course, one
reason to pick activity-on-branch or activity-on-node representations is that
particular computer scheduling programs available at a site are based on
one representation or the other. Since both representations are in common
use, project managers should be familiar with either network representation.

Many commercially available computer scheduling programs include the

necessary computational procedures to incorporate windows and many of
the various precedence relationships described above. Indeed, the term
"precedence diagramming" and the calculations associated with these lags

104
seems to have first appeared in the user's manual for a computer scheduling
program.

If the construction plan suggests that such complicated lags are important,
then these scheduling algorithms should be adopted. In the next section, the
various computations associated with critical path scheduling with several
types of leads, lags and windows are presented.

Calculations for Scheduling with Leads, Lags

and Windows
Table 10-9 contains an algorithmic description of the calculations required
for critical path scheduling with leads, lags and windows. This description
assumes an activity-on-node project network representation, since this
representation is much easier to use with complicated precedence
relationships. The possible precedence relationships accomadated by the
procedure contained in Table 10-9 are finish-to-start leads, start-to-start
leads, finish-to-finish lags and start-to-finish lags. Windows for earliest starts
or latest finishes are also accomodated. Incorporating other precedence and
window types in a scheduling procedure is also possible as described in
Chapter 11. With an activity-on-node representation, we assume that an
initiation and a termination activity are included to mark the beginning and
end of the project. The set of procedures described in Table 10-9 does not
provide for automatic splitting of activities.

TABLE 10-9  Critical Path Scheduling Algorithms with Leads, Lags and Windows
(Activity-on-Node Representations)

Activity Numbering Algorithm

Step 1: Give the starting activity number 0.

Step 2: Give the next number to any unnumbered activity whose predecessor
activities
     are each already numbered.
Repeat Step 2 until all activities are numbered.

Forward Pass Computations

Step 0: Set the earliest start and the earliest finish of the initial activity to zero:
     (ES(0) = EF(0) = 0).
Repeat the following steps for each activity k = 0,1,2,...,m:
Step 1: Compute the earliest start time (ES(k)) of activity k:
     ES(k) = Maximum {0; WES(k) for the earliest start window time,
     WEF(k) - D(k) for the earliest finish window time;
     EF(i) + FS(i,k) for each preceding activity with a F-S constraint;

105
     ES(i) + SS(i,k) for each preceding activity with a S-S constraint;
     EF(i) + FF(i,k) - D(k) for each preceding activity with a F-F constraint;
     ES(i) + SF(i,k) - D(k) for each preceding activity with a S-F constraint.}
Step 2: Compute the earliest finish time EF(k) of activity k:
     EF(k) = ES(k) + D(k).

Backward Pass Computations

Step 0: Set the latest finish and latest start of the terminal activity to the early start
time:
     LF(m) = LS(m) = ES(m) = EF(m)
Repeat the following steps for each activity in reverse order, k = m-1,m-2,...,2,1,0:
Step 1: Compute the latest finish time for activity k:
     LF(k) = Min{ LF(m), WLF(k) for the latest finish window time;
     WLS(k) + D(k) for the latest start window time;
     LS(j) - FS(k,j) for each succeeding activity with a F-S constraint;
     LF(j) - FF(k,j) for each succeeding activity with a FF constraint;
     LS(j) - SS(k,j) + D(k) for each succeeding activity with a SS constraint;
     LF(j) - SF(k,j) + D(k) for each succeeding activity with a SF constraint.}
Step 2: Compute the latest start time for activity k:
     LS(k) = LF(k) - D(k)

The first step in the scheduling algorithm is to sort activities such that no
higher numbered activity precedes a lower numbered activity. With
numbered activities, durations can be denoted D(k), where k is the number
of an activity. Other activity information can also be referenced by the
activity number. Note that node events used in activity-on-branch
representations are not required in this case.

The forward pass calculations compute an earliest start time (ES(k)) and an
earliest finish time (EF(k)) for each activity in turn (Table 10-9). In computing
the earliest start time of an activity k, the earliest start window time (WES),
the earliest finish window time (WEF), and each of the various precedence
relationships must be considered. Constraints on finish times are included by
identifying minimum finish times and then subtracting the activity duration.
A default earliest start time of day 0 is also insured for all activities. A second
step in the procedure is to identify each activity's earliest finish time (EF(k)).

The backward pass calculations proceed in a manner very similar to those of

the forward pass (Table 10-9). In the backward pass, the latest finish and the
latest start times for each activity are calculated. In computing the latest
finish time, the latest start time is identified which is consistent with
precedence constraints on an activity's starting time. This computation

106
requires a minimization over applicable window times and all successor
activities. A check for a feasible activity schedule can also be imposed at this
point: if the late start time is less than the early start time (LS(k) < ES(k)),
then the activity schedule is not possible.

The result of the forward and backward pass calculations are the earliest
start time, the latest start time, the earliest finish time, and the latest finish
time for each activity. The activity float is computed as the latest start time
less the earliest start time. Note that window constraints may be
instrumental in setting the amount of float, so that activities without any
float may either lie on the critical path or be constrained by an allowable
window.

To consider the possibility of activity splitting, the various formulas for the
forward and backward passes in Table 10-9 must be modified. For example,
in considering the possibility of activity splitting due to start-to-start lead
(SS), it is important to ensure that the preceding activity has been underway
for at least the required lead period. If the preceding activity was split and
the first sub-activity was not underway for a sufficiently long period, then the
following activity cannot start until the first plus the second sub-activities
have been underway for a period equal to SS(i,k). Thus, in setting the earliest
start time for an activity, the calculation takes into account the duration of
the first subactivity (DA(i)) for preceding activities involving a start-to-start
lead. Algebraically, the term in the earliest start time calculation pertaining
to start-to-start precedence constraints (ES(i) + SS(i,k)) has two parts with
the possibility of activity splitting:

(10.13) ES(i) + SS(i,k)

(10.14) EF(i) - D(i) + SS(i,k) for split preceding activities with DA(i) < SS(i,k)

where DA(i) is the duration of the first sub-activity of the preceding activity.

The computation of earliest finish time involves similar considerations,

except that the finish-to-finish and start-to-finish lag constraints are involved.
In this case, a maximization over the following terms is required:

EF(k) = Maximum{ES(k) + D(k),

    EF(i) + FF(i,k) for each preceding activity with a FF
precedence,
(10.15)     ES(i) + SF(i,k) for each preceding activity with a SF precedence
and which is not split,
    EF(i) - D(i) + SF(i,k) for each preceding activity with a SF
precedence and which is split}

107
Finally, the necessity to split an activity is also considered. If the earliest
possible finish time is greater than the earliest start time plus the activity
duration, then the activity must be split.

Another possible extension of the scheduling computations in Table 10-9

would be to include a duration modification capability during the forward and
backward passes. This capability would permit alternative work calendars for
different activities or for modifications to reflect effects of time of the year on
activity durations. For example, the duration of outside work during winter
months would be increased. As another example, activities with weekend
work permitted might have their weekday durations shortened to reflect
weekend work accomplishments.

Example 10-4: Impacts of precedence relationships and windows

To illustrate the impacts of different precedence relationships, consider a project

consisting of only two activities in addition to the start and finish. The start is
numbered activity 0, the first activity is number 1, the second activity is number 2,
and the finish is activity 3. Each activity is assumed to have a duration of five days.
With a direct finish-to-start precedence relationship without a lag, the critical path
calculations reveal:

ES(0) = 0
ES(1) = 0
EF(1) = ES(1) + D(1) = 0 + 5 = 5
ES(2) = EF(1) + FS(1,2) = 5 + 0 = 5
EF(2) = ES(2) + D(2) = 5 + 5 = 10
ES(3) = EF(2) + FS(2,3) = 10 + 0 = 10 = EF(3)

So the earliest project completion time is ten days.

With a start-to-start precedence constraint with a two day lead, the

scheduling calculations are:

ES(0) = 0
ES(1) = 0
EF(1) = ES(1) + D(1) = 0 + 5 = 5
ES(2) = ES(1) + SS(1,2) = 0 + 2 = 2
EF(2) = ES(2) + D(2) = 2 + 5 = 7
ES(3) = EF(2) + FS(2,3) = 7 + 0 = 7.

In this case, activity 2 can begin two days after the start of activity 1 and
proceed in parallel with activity 1. The result is that the project completion
date drops from ten days to seven days.

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Finally, suppose that a finish-to-finish precedence relationship exists
between activity 1 and activity 2 with a two day lag. The scheduling
calculations are:

ES(0) = 0 = EF(0)
ES(1) = EF(0) + FS(0,1) = 0 + 0 = 0
EF(1) = ES(1) + D(1) = 0 + 5 = 5
ES(2) = EF(1) + FF(1,2) - D(2) = 5 + 2 - 5 = 2
EF(2) = ES(2) + D(2) = 2 + 5 = 7
ES(3) = EF(2) + FS(2,3) = 7 + 0 = 7 = EF(3)

In this case, the earliest finish for activity 2 is on day seven to allow the
necessary two day lag from the completion of activity 1. The minimum
project completion time is again seven days.

Example 10-5: Scheduling in the presence of leads and windows.

As a second example of the scheduling computations involved in the presence of

leads, lags and windows, we shall perform the calculations required for the project
shown in Figure 10-15. Start and end activities are included in the project diagram,
making a total of eleven activities. The various windows and durations for the
activities are summarized in Table 10-10 and the precedence relationships appear
in Table 10-11. Only earliest start (WES) and latest finish (WLF) window constraints
are included in this example problem. All four types of precedence relationships are
included in this project. Note that two activities may have more than one type of
precedence relationship at the same time; in this case, activities 2 and 5 have both
S-S and F-F precedences. In Figure 10-15, the different precedence relationships are
shown by links connecting the activity nodes. The type of precedence relationship is
indicated by the beginning or end point of each arrow. For example, start-to-start
precedences go from the left portion of the preceding activity to the left portion of
the following activity. Application of the activity sorting algorithm (Table 10-9)
reveals that the existing activity numbers are appropriate for the critical path
algorithm. These activity numbers will be used in the forward and backward pass
calculations.

109
 Figure 10-15  Example Project Network with Lead Precedences

TABLE 10-10  Predecessors, Successors, Windows and Durations for an Example

Project

Activity Predecessor Successor Earliest Start Latest Finish Activity

Number s s Window Window Duration

0 --- 1, 2, 4 --- --- 0

1 0 3, 4, 6 --- --- 2
2 0 5 --- --- 5
3 1 6 2 --- 4
4 0 7, 8 --- --- 3
5 2, 2 7, 8 --- 16 5
6 1, 3 9 6 16 6
7 4, 5 9 --- --- 2
8 4, 5 10 --- --- 4
9 6, 7 10 --- 16 5
10 8, 9 --- --- --- 0

110
 TABLE 10-11  Precedences in a Eleven Activity Project
Example

Predecessor Successor Type Lead

0 1 FS 0
0 2 FS 0
0 4 FS 0
1 3 SS 1
1 4 SF 1
1 6 FS 2
2 5 SS 2
2 5 FF 2
3 6 FS 0
4 7 SS 2
4 8 FS 0
5 7 FS 1
5 8 SS 3
6 9 FF 4
7 9 FS 0
8 10 FS 0
9 10 FS 0

During the forward pass calculations (Table 10-9), the earliest start and
earliest finish times are computed for each activity. The relevant calculations
are:

ES(0) = EF(0) = 0
ES(1) = Max{0; EF(0) + FS(0,1)} = Max {0; 0 + 0} = 0.
EF(1) = ES(1) + D(1) = 0 + 2 = 2
ES(2) = Max{0; EF(0) + FS(0,1)} = Max{0; 0 + 0} = 0.
EF(2) = ES(2) + D(2) = 0 + 5 = 5
ES(3) = Max{0; WES(3); ES(1) + SS(1,3)} = Max{0; 2; 0 + 1} = 2.
EF(3) = ES(3) + D(3) = 2 + 4 = 6

Note that in the calculation of the earliest start for activity 3, the start was
delayed to be consistent with the earliest start time window.

ES(4) = Max{0; ES(0) + FS(0,1); ES(1) + SF(1,4) - D(4)} = Max{0; 0 + 0; 0+1-3} =

0.
EF(4) = ES(4) + D(4) = 0 + 3 = 3

111
ES(5) = Max{0; ES(2) + SS(2,5); EF(2) + FF(2,5) - D(5)} = Max{0; 0+2; 5+2-5} = 2
EF(5) = ES(5) + D(5) = 2 + 5 = 7
ES(6) = Max{0; WES(6); EF(1) + FS(1,6); EF(3) + FS(3,6)} = Max{0; 6; 2+2; 6+0}
=6
EF(6) = ES(6) + D(6) = 6 + 6 = 12
ES(7) = Max{0; ES(4) + SS(4,7); EF(5) + FS(5,7)} = Max{0; 0+2; 7+1} = 8
EF(7) = ES(7) + D(7) = 8 + 2 = 10
ES(8) = Max{0; EF(4) + FS(4,8); ES(5) + SS(5,8)} = Max{0; 3+0; 2+3} = 5
EF(8) = ES(8) + D(8) = 5 + 4 = 9
ES(9) = Max{0; EF(7) + FS(7,9); EF(6) + FF(6,9) - D(9)} = Max{0; 10+0; 12+4-5} =
11
EF(9) = ES(9) + D(9) = 11 + 5 = 16
ES(10) = Max{0; EF(8) + FS(8,10); EF(9) + FS(9,10)} = Max{0; 9+0; 16+0} = 16
EF(10) = ES(10) + D(10) = 16

As the result of these computations, the earliest project completion time is

found to be 16 days.

The backward pass computations result in the latest finish and latest start
times for each activity. These calculations are:

LF(10) = LS(10) = ES(10) = EF(10) = 16

LF(9) = Min{WLF(9); LF(10);LS(10) - FS(9,10)} = Min{16;16; 16-0} = 16
LS(9) = LF(9) - D(9) = 16 - 5 = 11
LF(8) = Min{LF(10); LS(10) - FS(8,10)} = Min{16; 16-0} = 16
LS(8) = LF(8) - D(8) = 16 - 4 = 12
LF(7) = Min{LF(10); LS(9) - FS(7,9)} = Min{16; 11-0} = 11
LS(7) = LF(7) - D(7) = 11 - 2 = 9
LF(6) = Min{LF(10); WLF(6); LF(9) - FF(6,9)} = Min{16; 16; 16-4} = 12
LS(6) = LF(6) - D(6) = 12 - 6 = 6
LF(5) = Min{LF(10); WLF(10); LS(7) - FS(5,7); LS(8) - SS(5,8) + D(8)} = Min{16; 16;
9-1; 12-3+4} = 8
LS(5) = LF(5) - D(5) = 8 - 5 = 3
LF(4) = Min{LF(10); LS(8) - FS(4,8); LS(7) - SS(4,7) + D(7)} = Min{16; 12-0; 9-2+2}
=9
LS(4) = LF(4) - D(4) = 9 - 3 = 6
LF(3) = Min{LF(10); LS(6) - FS(3,6)} = Min{16; 6-0} = 6
LS(3) = LF(3) - D(3) = 6 - 4 = 2
LF(2) = Min{LF(10); LF(5) - FF(2,5); LS(5) - SS(2,5) + D(5)} = Min{16; 8-2; 3-2+5} =
6
LS(2) = LF(2) - D(2) = 6 - 5 = 1
LF(1) = Min{LF(10); LS(6) - FS(1,6); LS(3) - SS(1,3) + D(3); Lf(4) - SF(1,4) + D(4)}
LS(1) = LF(1) - D(1) = 2 -2 = 0
LF(0) = Min{LF(10); LS(1) - FS(0,1); LS(2) - FS(0,2); LS(4) - FS(0,4)} = Min{16; 0-0;

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1-0; 6-0} = 0
LS(0) = LF(0) - D(0) = 0

The earliest and latest start times for each of the activities are summarized
in Table 10-12. Activities without float are 0, 1, 6, 9 and 10. These activities
also constitute the critical path in the project. Note that activities 6 and 9 are
related by a finish-to-finish precedence with a 4 day lag. Decreasing this lag
would result in a reduction in the overall project duration.

TABLE 10-12  Summary of Activity Start and Finish Times for an

Example Problem

Activity Earliest Start Latest Start Float

0 0 0 0
1 0 0 0
2 0 1 1
3 0 2 2
4 0 6 6
5 2 3 1
6 6 6 0
7 8 9 1
8 5 12 7
9 11 11 0
10 16 16 0

Scheduling with Resource Constraints and

Precedences
The previous section outlined resource oriented approaches to the
scheduling problem. In this section, we shall review some general
approaches to integrating both concerns in scheduling.

Two problems arise in developing a resource constrained project schedule.

First, it is not necessarily the case that a critical path schedule is feasible.
Because one or more resources might be needed by numerous activities, it
can easily be the case that the shortest project duration identified by the
critical path scheduling calculation is impossible. The difficulty arises
because critical path scheduling assumes that no resource availability
problems or bottlenecks will arise. Finding a feasible or possible schedule is
the first problem in resource constrained scheduling. Of course, there may
be a numerous possible schedules which conform with time and resource

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constraints. As a second problem, it is also desirable to determine schedules
which have low costs or, ideally, the lowest cost.

Numerous heuristic methods have been suggested for resource constrained

scheduling. Many begin from critical path schedules which are modified in
light of the resource constraints. Others begin in the opposite fashion by
introducing resource constraints and then imposing precedence constraints
on the activities. Still others begin with a ranking or classification of activities
into priority groups for special attention in scheduling. One type of heuristic
may be better than another for different types of problems. Certainly,
projects in which only an occasional resource constraint exists might be best
scheduled starting from a critical path schedule. At the other extreme,
projects with numerous important resource constraints might be best
scheduled by considering critical resources first. A mixed approach would be
to proceed simultaneously considering precedence and resource constraints.

A simple modification to critical path scheduling has been shown to be

effective for a number of scheduling problems and is simple to implement.
For this heuristic procedure, critical path scheduling is applied initially. The
result is the familiar set of possible early and late start times for each
activity. Scheduling each activity to begin at its earliest possible start time
may result in more than one activity requiring a particular resource at the
same time. Hence, the initial schedule may not be feasible. The heuristic
proceeds by identifying cases in which activities compete for a resource and
selecting one activity to proceed. The start time of other activities are then
shifted later in time. A simple rule for choosing which activity has priority is
to select the activity with the earliest CPM late start time (calculated as
LS(i,j) = L(j)-Dij) among those activities which are both feasible (in that all
their precedence requirements are satisfied) and competing for the resource.
This decision rule is applied from the start of the project until the end for
each type of resource in turn.

The order in which resources are considered in this scheduling process may
influence the ultimate schedule. A good heuristic to employ in deciding the
order in which resources are to be considered is to consider more important
resources first. More important resources are those that have high costs or
that are likely to represent an important bottleneck for project completion.
Once important resources are scheduled, other resource allocations tend to
be much easier. The resulting scheduling procedure is described in Table 10-
14.

The late start time heuristic described in Table 10-14 is only one of many
possible scheduling rules. It has the advantage of giving priority to activities
which must start sooner to finish the project on time. However, it is myopic
in that it doesn't consider trade-offs among resource types nor the changes
in the late start time that will be occurring as activities are shifted later in

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time. More complicated rules can be devised to incorporate broader
knowledge of the project schedule. These complicated rules require greater
computational effort and may or may not result in scheduling improvements
in the end.

TABLE 10-14  A Resource-Oriented Scheduling Procedure

Step 1:

Rank all resources from the most important to the least

important, and number the resources i = 1,2,3,...,m.

Step 2:

Set the scheduled start time for each activity to the earliest
start time.

For each resource i = 1,2,3,...,m in turn:

Step 3:

Start at the project beginning, so set t = 0.

Step 4:

Compute the demand for resource i at time t by summing

up the requirements for resource i for all activities
scheduled to be underway at time t.

If demand for resource i in time t is greater than the resource

availability, then select the activity with the greatest late
start time requiring resource i at time t, and shift its
scheduled start time to time t+1.

Repeat Step 4 until the resource constraint at time t for

resource i is satisfied.

Step 5:

Repeat step 4 for each project period in turn, setting t =

t+1.

Example 10-9: Resource constrained scheduling with nine activities.

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As an example of resource constrained scheduling, we shall re-examine the nine
activity project discussed in Section 10.3. To begin with, suppose that four workers
and two pieces of equipment such as backhoes are available for the project. The
required resources for each of the nine project activities are summarized in Table
10-15. Graphs of resource requirements over the 30 day project duration are shown
in Figure 10-17. Equipment availability in this schedule is not a problem. However,
on two occasions, more than the four available workers are scheduled for work.
Thus, the existing project schedule is infeasible and should be altered.

TABLE 10-15  Resources Required and Starting Times for a Nine Activity Project

Activit Workers Equipment Earliest Start Latest Start Duratio

y Required Required Time Time n

A 2 0 0 0 4
B 2 1 0 9 3
C 2 1 4 4 8
D 2 1 4 15 7
E 2 1 12 13 9
F 2 0 12 12 12
G 2 1 21 22 2
H 2 1 21 25 5
I 4 1 24 24 6

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Figure 10-17  Resources Required over Time for Nine Activity Project:
Schedule I

117
The first resource problem occurs on day 21 when activity F is underway and
activities G and H are scheduled to start. Applying the latest start time
heuristic to decide which activity should start, the manager should re-
schedule activity H since it has a later value of LS(i,j), i.e., day 25 versus day
22 as seen in Table 10-15. Two workers become available on day 23 after
the completion of activity G. Since activity H is the only activity which is
feasible at that time, it is scheduled to begin. Two workers also become
available on day 24 at the completion of activity F. At this point, activity I is
available for starting. If possible, it would be scheduled to begin with only
two workers until the completion of activity H on day 28. If all 4 workers were
definitely required, then activity I would be scheduled to begin on day 28. In
this latter case, the project duration would be 34 days, representing a 4 day
increase due to the limited number of workers available.

Example 10-10: Additional resource constraints.

As another example, suppose that only one piece of equipment was available for
the project. As seen in Figure 10-17, the original schedule would have to be
significantly modified in this case. Application of the resource constrained
scheduling heuristic proceeds as follows as applied to the original project schedule:

1. On day 4, activities D and C are both scheduled to begin. Since activity D has
a larger value of late start time, it should be re-scheduled.
2. On day 12, activities D and E are available for starting. Again based on a later
value of late start time (15 versus 13), activity D is deferred.
3. On day 21, activity E is completed. At this point, activity D is the only feasible
activity and it is scheduled for starting.
4. On day 28, the planner can start either activity G or activity H. Based on the
later start time heuristic, activity G is chosen to start.
5. On completion of activity G at day 30, activity H is scheduled to begin.

The resulting profile of resource use is shown in Figure 10-18. Note that
activities F and I were not considered in applying the heuristic since these
activities did not require the special equipment being considered. In the
figure, activity I is scheduled after the completion of activity H due to the
requirement of 4 workers for this activity. As a result, the project duration
has increased to 41 days. During much of this time, all four workers are not
assigned to an activity. At this point, a prudent planner would consider
whether or not it would be cost effective to obtain an additional piece of
equipment for the project.

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 Figure 10-18  Resources Required over Time for Nine Activity Project:
Schedule II

10.10 References
1. Au, T. Introduction to Systems Engineering--Deterministic Models, Addison-
Wesley, Reading, MA, 1973, Chapter 8.
2. Baker, K., An Introduction to Sequencing and Scheduling, John Wiley, 1974.

119
 3. Jackson, M.J., Computers in Construction Planning and Control, Allen & Unwin,
1986.
4. Moder, J., C. Phillips and E. Davis, Project Management with CPM, PERT and
Precedence Diagramming, Van Nostrand Reinhold Company, Third
Edition,1983.
5. Willis, E. M., Scheduling Construction Projects, John Wiley & Sons, 1986.

Use of Advanced Scheduling Techniques

Construction project scheduling is a topic that has received extensive
research over a number of decades. The previous chapter described the
fundamental scheduling techniques widely used and supported by numerous
commercial scheduling systems. A variety of special techniques have also
been developed to address specific circumstances or problems. With the
availability of more powerful computers and software, the use of advanced
scheduling techniques is becoming easier and of greater relevance to
practice. In this chapter, we survey some of the techniques that can be
employed in this regard. These techniques address some important practical
problems, such as:

 scheduling in the face of uncertain estimates on activity durations,

 integrated planning of scheduling and resource allocation,
 scheduling in unstructured or poorly formulated circumstances.

A final section in the chapter describes some possible improvements in the

project scheduling process. In Chapter 14, we consider issues of computer
based implementation of scheduling procedures, particularly in the context
of integrating scheduling with other project management procedures

Scheduling with Uncertain Durations

Section 10.3 described the application of critical path scheduling for the
situation in which activity durations are fixed and known. Unfortunately,
activity durations are estimates of the actual time required, and there is
liable to be a significant amount of uncertainty associated with the actual
durations. During the preliminary planning stages for a project, the
uncertainty in activity durations is particularly large since the scope and
obstacles to the project are still undefined. Activities that are outside of the
control of the owner are likely to be more uncertain. For example, the time
required to gain regulatory approval for projects may vary tremendously.
Other external events such as adverse weather, trench collapses, or labor
strikes make duration estimates particularly uncertain.

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Two simple approaches to dealing with the uncertainty in activity durations
warrant some discussion before introducing more formal scheduling
procedures to deal with uncertainty. First, the uncertainty in activity
durations may simply be ignored and scheduling done using the expected or
most likely time duration for each activity. Since only one duration estimate
needs to be made for each activity, this approach reduces the required work
in setting up the original schedule. Formal methods of introducing
uncertainty into the scheduling process require more work and assumptions.
While this simple approach might be defended, it has two drawbacks. First,
the use of expected activity durations typically results in overly optimistic
schedules for completion; a numerical example of this optimism appears
below. Second, the use of single activity durations often produces a rigid,
inflexible mindset on the part of schedulers. As field managers appreciate,
activity durations vary considerable and can be influenced by good
leadership and close attention. As a result, field managers may loose
confidence in the realism of a schedule based upon fixed activity durations.
Clearly, the use of fixed activity durations in setting up a schedule makes a
continual process of monitoring and updating the schedule in light of actual
experience imperative. Otherwise, the project schedule is rapidly outdated.

A second simple approach to incorporation uncertainty also deserves

mention. Many managers recognize that the use of expected durations may
result in overly optimistic schedules, so they include a contingency
allowance in their estimate of activity durations. For example, an activity
with an expected duration of two days might be scheduled for a period of 2.2
days, including a ten percent contingency. Systematic application of this
contingency would result in a ten percent increase in the expected time to
complete the project. While the use of this rule-of-thumb or heuristic
contingency factor can result in more accurate schedules, it is likely that
formal scheduling methods that incorporate uncertainty more formally are
useful as a means of obtaining greater accuracy or in understanding the
effects of activity delays.

The most common formal approach to incorporate uncertainty in the

scheduling process is to apply the critical path scheduling process (as
described in Section 10.3) and then analyze the results from a probabilistic
perspective. This process is usually referred to as the PERT scheduling or
evaluation method. As noted earlier, the duration of the critical path
represents the minimum time required to complete the project. Using
expected activity durations and critical path scheduling, a critical path of
activities can be identified. This critical path is then used to analyze the
duration of the project incorporating the uncertainty of the activity durations
along the critical path. The expected project duration is equal to the sum of
the expected durations of the activities along the critical path. Assuming that
activity durations are independent random variables, the variance or
variation in the duration of this critical path is calculated as the sum of the

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variances along the critical path. With the mean and variance of the
identified critical path known, the distribution of activity durations can also
be computed.

Crashing and Time/Cost Tradeoffs

The previous sections discussed the duration of activities as either fixed or
random numbers with known characteristics. However, activity durations can
often vary depending upon the type and amount of resources that are
applied. Assigning more workers to a particular activity will normally result in
a shorter duration. [6] Greater speed may result in higher costs and lower
quality, however. In this section, we shall consider the impacts of time, cost
and quality tradeoffs in activity durations. In this process, we shall discuss
the procedure of project crashing as described below.

A simple representation of the possible relationship between the duration of

an activity and its direct costs appears in Figure 11-3. Considering only this
activity in isolation and without reference to the project completion deadline,
a manager would undoubtedly choose a duration which implies minimum
direct cost, represented by Dij and Cij in the figure. Unfortunately, if each
activity was scheduled for the duration that resulted in the minimum direct
cost in this way, the time to complete the entire project might be too long
and substantial penalties associated with the late project start-up might be
incurred. This is a small example of sub-optimization, in which a small
component of a project is optimized or improved to the detriment of the
entire project performance. Avoiding this problem of sub-optimization is a
fundamental concern of project managers.

Scheduling in Poorly Structured Problems

The previous discussion of activity scheduling suggested that the general
structure of the construction plan was known in advance. With previously
defined activities, relationships among activities, and required resources, the
scheduling problem could be represented as a mathematical optimization
problem. Even in the case in which durations are uncertain, we assumed that
the underlying probability distribution of durations is known and applied
analytical techniques to investigate schedules.

While these various scheduling techniques have been exceedingly useful,

they do not cover the range of scheduling problems encountered in practice.
In particular, there are many cases in which costs and durations depend
upon other activities due to congestion on the site. In contrast, the
scheduling techniques discussed previously assume that durations of
activities are generally independent of each other. A second problem stems
from the complexity of construction technologies. In the course of resource

122
allocations, numerous additional constraints or objectives may exist that are
difficult to represent analytically. For example, different workers may have
specialized in one type of activity or another. With greater experience, the
work efficiency for particular crews may substantially increase.
Unfortunately, representing such effects in the scheduling process can be
very difficult. Another case of complexity occurs when activity durations and
schedules are negotiated among the different parties in a project so there is
no single overall planner.

A practical approach to these types of concerns is to insure that all schedules

are reviewed and modified by experienced project managers before
implementation. This manual review permits the incorporation of global
constraints or consideration of peculiarities of workers and equipment.
Indeed, interactive schedule revision to accomadate resource constraints is
often superior to any computer based heuristic. With improved graphic
representations and information availability, man-machine interaction is
likely to improve as a scheduling procedure.

More generally, the solution procedures for scheduling in these more

complicated situations cannot be reduced to mathematical algorithms. The
best solution approach is likely to be a "generate-and-test" cycle for
alternative plans and schedules. In this process, a possible schedule is
hypothesized or generated. This schedule is tested for feasibility with respect
to relevant constraints (such as available resources or time horizons) and
desireability with respect to different objectives. Ideally, the process of
evaluating an alternative will suggest directions for improvements or identify
particular trouble spots. These results are then used in the generation of a
new test alternative. This process continues until a satisfactory plan is
obtained.

Two important problems must be borne in mind in applying a "generate-and-

test" strategy. First, the number of possible plans and schedules is
enormous, so considerable insight to the problem must be used in
generating reasonable alternatives. Secondly, evaluating alternatives also
may involve considerable effort and judgment. As a result, the number of
actual cycles of alternative testing that can be accomadated is limited. One
hope for computer technology in this regard is that the burdensome
calculations associated with this type of planning may be assumed by the
computer, thereby reducing the cost and required time for the planning
effort. Some mechanisms along these lines are described in Chapter 15.

Example 11-9: Man-machine Interactive Scheduling

An interactive system for scheduling with resource constraints might have the
following characteristics:

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  graphic displays of bar charts, resource use over time, activity networks and
other graphic images available in different windows of a screen
simultaneously,
 descriptions of particular activities including allocated resources and chosen
technologies available in windows as desired by a user,
 a three dimensional animation of the construction process that can be
stopped to show the progress of construction on the facility at any time,
 easy-to-use methods for changing start times and allocated resources, and
 utilities to run relevant scheduling algorithms such as the critical path
method at any time.

Improving the Scheduling Process

Despite considerable attention by researchers and practitioners, the process
of construction planning and scheduling still presents problems and
opportunities for improvement. The importance of scheduling in insuring the
effective coordination of work and the attainment of project deadlines is
indisputable. For large projects with many parties involved, the use of formal
schedules is indispensable.

The network model for representing project activities has been provided as
an important conceptual and computational framework for planning and
scheduling. Networks not only communicate the basic precedence
relationships between activities, they also form the basis for most scheduling
computations.

As a practical matter, most project scheduling is performed with the critical

path scheduling method, supplemented by heuristic procedures used in
project crash analysis or resource constrained scheduling. Many commercial
software programs are available to perform these tasks. Probabilistic
scheduling or the use of optimization software to perform time/cost trade-
offs is rather more infrequently applied, but there are software programs
available to perform these tasks if desired.

Rather than concentrating upon more elaborate solution algorithms, the

most important innovations in construction scheduling are likely to appear in
the areas of data storage, ease of use, data representation, communication
and diagnostic or interpretation aids. Integration of scheduling information
with accounting and design information through the means of database
systems is one beneficial innovation; many scheduling systems do not
provide such integration of information. The techniques discussed in Chapter
14 are particularly useful in this regard.

With regard to ease of use, the introduction of interactive scheduling

systems, graphical output devices and automated data acquisition should
produce a very different environment than has existed. In the past,

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scheduling was performed as a batch operation with output contained in
lengthy tables of numbers. Updating of work progress and revising activity
duration was a time consuming manual task. It is no surprise that managers
viewed scheduling as extremely burdensome in this environment. The lower
costs associated with computer systems as well as improved software make
"user friendly" environments a real possibility for field operations on large
projects.

Finally, information representation is an area which can result in substantial

improvements. While the network model of project activities is an extremely
useful device to represent a project, many aspects of project plans and
activity inter-relationships cannot or have not been represented in network
models. For example, the similarity of processes among different activities is
usually unrecorded in the formal project representation. As a result, updating
a project network in response to new information about a process such as
concrete pours can be tedious. What is needed is a much more flexible and
complete representation of project information. Some avenues for change
along these lines are discussed in Chapter 15.

References
1. Bratley, Paul, Bennett L. Fox and Linus E. Schrage, A Guide to Simulation,
Springer-Verlag, 1973.
2. Elmaghraby, S.E., Activity Networks: Project Planning and Control by Network
Models, John Wiley, New York, 1977.
3. Jackson, M.J., Computers in Construction Planning and Control, Allen & Unwin,
London, 1986.
4. Moder, J., C. Phillips and E. Davis, Project Management with CPM, PERT and
Precedence Diagramming, Third Edition, Van Nostrand Reinhold Company,
1983.

Quality and Safety Concerns in Construction

Quality control and safety represent increasingly important concerns for
project managers. Defects or failures in constructed facilities can result in
very large costs. Even with minor defects, re-construction may be required
and facility operations impaired. Increased costs and delays are the result. In
the worst case, failures may cause personal injuries or fatalities. Accidents
during the construction process can similarly result in personal injuries and
large costs. Indirect costs of insurance, inspection and regulation are
increasing rapidly due to these increased direct costs. Good project
managers try to ensure that the job is done right the first time and that no
major accidents occur on the project.

As with cost control, the most important decisions regarding the quality of a
completed facility are made during the design and planning stages rather
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than during construction. It is during these preliminary stages that
component configurations, material specifications and functional
performance are decided. Quality control during construction consists largely
of insuring conformance to these original design and planning decisions.

While conformance to existing design decisions is the primary focus of

quality control, there are exceptions to this rule. First, unforeseen
circumstances, incorrect design decisions or changes desired by an owner in
the facility function may require re-evaluation of design decisions during the
course of construction. While these changes may be motivated by the
concern for quality, they represent occasions for re-design with all the
attendant objectives and constraints. As a second case, some designs rely
upon informed and appropriate decision making during the construction
process itself. For example, some tunneling methods make decisions about
the amount of shoring required at different locations based upon observation
of soil conditions during the tunneling process. Since such decisions are
based on better information concerning actual site conditions, the facility
design may be more cost effective as a result. Any special case of re-design
during construction requires the various considerations discussed in Chapter
3.

With the attention to conformance as the measure of quality during the

construction process, the specification of quality requirements in the design
and contract documentation becomes extremely important. Quality
requirements should be clear and verifiable, so that all parties in the project
can understand the requirements for conformance. Much of the discussion in
this chapter relates to the development and the implications of different
quality requirements for construction as well as the issues associated with
insuring conformance.

Safety during the construction project is also influenced in large part by

decisions made during the planning and design process. Some designs or
construction plans are inherently difficult and dangerous to implement,
whereas other, comparable plans may considerably reduce the possibility of
accidents. For example, clear separation of traffic from construction zones
during roadway rehabilitation can greatly reduce the possibility of accidental
collisions. Beyond these design decisions, safety largely depends upon
education, vigilance and cooperation during the construction process.
Workers should be constantly alert to the possibilities of accidents and avoid
taken unnecessary risks.

Organizing for Quality and Safety

A variety of different organizations are possible for quality and safety control
during construction. One common model is to have a group responsible for

126
quality assurance and another group primarily responsible for safety within
an organization. In large organizations, departments dedicated to quality
assurance and to safety might assign specific individuals to assume
responsibility for these functions on particular projects. For smaller projects,
the project manager or an assistant might assume these and other
responsibilities. In either case, insuring safe and quality construction is a
concern of the project manager in overall charge of the project in addition to
the concerns of personnel, cost, time and other management issues.

Inspectors and quality assurance personnel will be involved in a project to

represent a variety of different organizations. Each of the parties directly
concerned with the project may have their own quality and safety inspectors,
including the owner, the engineer/architect, and the various constructor
firms. These inspectors may be contractors from specialized quality
assurance organizations. In addition to on-site inspections, samples of
materials will commonly be tested by specialized laboratories to insure
compliance. Inspectors to insure compliance with regulatory requirements
will also be involved. Common examples are inspectors for the local
government's building department, for environmental agencies, and for
occupational health and safety agencies.

The US Occupational Safety and Health Administration (OSHA) routinely

conducts site visits of work places in conjunction with approved state
inspection agencies. OSHA inspectors are required by law to issue citations
for all standard violations observed. Safety standards prescribe a variety of
mechanical safeguards and procedures; for example, ladder safety is
covered by over 140 regulations. In cases of extreme non-compliance with
standards, OSHA inspectors can stop work on a project. However, only a
small fraction of construction sites are visited by OSHA inspectors and most
construction site accidents are not caused by violations of existing
standards. As a result, safety is largely the responsibility of the managers on
site rather than that of public inspectors.

While the multitude of participants involved in the construction process

require the services of inspectors, it cannot be emphasized too strongly that
inspectors are only a formal check on quality control. Quality control should
be a primary objective for all the members of a project team. Managers
should take responsibility for maintaining and improving quality control.
Employee participation in quality control should be sought and rewarded,
including the introduction of new ideas. Most important of all, quality
improvement can serve as a catalyst for improved productivity. By
suggesting new work methods, by avoiding rework, and by avoiding long
term problems, good quality control can pay for itself. Owners should
promote good quality control and seek out contractors who maintain such
standards.

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In addition to the various organizational bodies involved in quality control,
issues of quality control arise in virtually all the functional areas of
construction activities. For example, insuring accurate and useful information
is an important part of maintaining quality performance. Other aspects of
quality control include document control (including changes during the
construction process), procurement, field inspection and testing, and final
checkout of the facility.

Work and Material Specifications

Specifications of work quality are an important feature of facility designs.
Specifications of required quality and components represent part of the
necessary documentation to describe a facility. Typically, this documentation
includes any special provisions of the facility design as well as references to
generally accepted specifications to be used during construction.

General specifications of work quality are available in numerous fields and

are issued in publications of organizations such as the American Society for
Testing and Materials (ASTM), the American National Standards Institute
(ANSI), or the Construction Specifications Institute (CSI). Distinct
specifications are formalized for particular types of construction activities,
such as welding standards issued by the American Welding Society, or for
particular facility types, such as the Standard Specifications for Highway
Bridges issued by the American Association of State Highway and
Transportation Officials. These general specifications must be modified to
reflect local conditions, policies, available materials, local regulations and
other special circumstances.

Construction specifications normally consist of a series of instructions or

prohibitions for specific operations. For example, the following passage
illustrates a typical specification, in this case for excavation for structures:

Conform to elevations and dimensions shown on plan within a tolerance of plus or

minus 0.10 foot, and extending a sufficient distance from footings and foundations
to permit placing and removal of concrete formwork, installation of services, other
construction, and for inspection. In excavating for footings and foundations, take
care not to disturb bottom of excavation. Excavate by hand to final grade just
before concrete reinforcement is placed. Trim bottoms to required lines and grades
to leave solid base to receive concrete.

This set of specifications requires judgment in application since some items

are not precisely specified. For example, excavation must extend a
"sufficient" distance to permit inspection and other activities. Obviously, the
term "sufficient" in this case may be subject to varying interpretations. In
contrast, a specification that tolerances are within plus or minus a tenth of a

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foot is subject to direct measurement. However, specific requirements of the
facility or characteristics of the site may make the standard tolerance of a
tenth of a foot inappropriate. Writing specifications typically requires a trade-
off between assuming reasonable behavior on the part of all the parties
concerned in interpreting words such as "sufficient" versus the effort and
possible inaccuracy in pre-specifying all operations.

In recent years, performance specifications have been developed for many

construction operations. Rather than specifying the required construction
process, these specifications refer to the required performance or quality of
the finished facility. The exact method by which this performance is obtained
is left to the construction contractor. For example, traditional specifications
for asphalt pavement specified the composition of the asphalt material, the
asphalt temperature during paving, and compacting procedures. In contrast,
a performance specification for asphalt would detail the desired performance
of the pavement with respect to impermeability, strength, etc. How the
desired performance level was attained would be up to the paving
contractor. In some cases, the payment for asphalt paving might increase
with better quality of asphalt beyond some minimum level of performance.

Example 13-1: Concrete Pavement Strength

Concrete pavements of superior strength result in cost savings by delaying the time
at which repairs or re-construction is required. In contrast, concrete of lower quality
will necessitate more frequent overlays or other repair procedures. Contract
provisions with adjustments to the amount of a contractor's compensation based on
pavement quality have become increasingly common in recognition of the cost
savings associated with higher quality construction. Even if a pavement does not
meet the "ultimate" design standard, it is still worth using the lower quality
pavement and re-surfacing later rather than completely rejecting the pavement.
Based on these life cycle cost considerations, a typical pay schedule might be:

Load Pay
Ratio Factor

<0.50 Reject
0.50-0.69 0.90
0.70-0.89 0.95
0.90-1.09 1.00
1.10-1.29 1.05
1.30-1.49 1.10
>1.50 1.12

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In this table, the Load Ratio is the ratio of the actual pavement strength to
the desired design strength and the Pay Factor is a fraction by which the
total pavement contract amount is multiplied to obtain the appropriate
compensation to the contractor. For example, if a contractor achieves
concrete strength twenty percent greater than the design specification, then
the load ratio is 1.20 and the appropriate pay factor is 1.05, so the contractor
receives a five percent bonus. Load factors are computed after tests on the
concrete actually used in a pavement. Note that a 90% pay factor exists in
this case with even pavement quality only 50% of that originally desired.
This high pay factor even with weak concrete strength might exist since
much of the cost of pavements are incurred in preparing the pavement
foundation. Concrete strengths of less then 50% are cause for complete
rejection in this case, however.

Total Quality Control

Quality control in construction typically involves insuring compliance with
minimum standards of material and workmanship in order to insure the
performance of the facility according to the design. These minimum
standards are contained in the specifications described in the previous
section. For the purpose of insuring compliance, random samples and
statistical methods are commonly used as the basis for accepting or
rejecting work completed and batches of materials. Rejection of a batch is
based on non-conformance or violation of the relevant design specifications.
Procedures for this quality control practice are described in the following
sections.

An implicit assumption in these traditional quality control practices is the

notion of an acceptable quality level which is a allowable fraction of defective
items. Materials obtained from suppliers or work performed by an
organization is inspected and passed as acceptable if the estimated
defective percentage is within the acceptable quality level. Problems with
materials or goods are corrected after delivery of the product.

In contrast to this traditional approach of quality control is the goal of total

quality control. In this system, no defective items are allowed anywhere in
the construction process. While the zero defects goal can never be
permanently obtained, it provides a goal so that an organization is never
satisfied with its quality control program even if defects are reduced by
substantial amounts year after year. This concept and approach to quality
control was first developed in manufacturing firms in Japan and Europe, but
has since spread to many construction companies. The best known formal
certification for quality improvement is the International Organization for
Standardization's ISO 9000 standard. ISO 9000 emphasizes good

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documentation, quality goals and a series of cycles of planning,
implementation and review.

Total quality control is a commitment to quality expressed in all parts of an

organization and typically involves many elements. Design reviews to insure
safe and effective construction procedures are a major element. Other
elements include extensive training for personnel, shifting the responsibility
for detecting defects from quality control inspectors to workers, and
continually maintaining equipment. Worker involvement in improved quality
control is often formalized in quality circles in which groups of workers meet
regularly to make suggestions for quality improvement. Material suppliers
are also required to insure zero defects in delivered goods. Initally, all
materials from a supplier are inspected and batches of goods with any
defective items are returned. Suppliers with good records can be certified
and not subject to complete inspection subsequently.

The traditional microeconomic view of quality control is that there is an

"optimum" proportion of defective items. Trying to achieve greater quality
than this optimum would substantially increase costs of inspection and
reduce worker productivity. However, many companies have found that
commitment to total quality control has substantial economic benefits that
had been unappreciated in traditional approaches. Expenses associated with
inventory, rework, scrap and warranties were reduced. Worker enthusiasm
and commitment improved. Customers often appreciated higher quality work
and would pay a premium for good quality. As a result, improved quality
control became a competitive advantage.

Of course, total quality control is difficult to apply, particular in construction.

The unique nature of each facility, the variability in the workforce, the
multitude of subcontractors and the cost of making necessary investments in
education and procedures make programs of total quality control in
construction difficult. Nevertheless, a commitment to improved quality even
without endorsing the goal of zero defects can pay real dividends to
organizations.

Example 13-2: Experience with Quality Circles

Quality circles represent a group of five to fifteen workers who meet on a frequent
basis to identify, discuss and solve productivity and quality problems. A circle leader
acts as liason between the workers in the group and upper levels of management.
Appearing below are some examples of reported quality circle accomplishments in
construction: [2]

1. On a highway project under construction by Taisei Corporation, it was found

that the loss rate of ready-mixed concrete was too high. A quality circle
composed of cement masons found out that the most important reason for

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 this was due to an inaccurate checking method. By applying the circle's
recommendations, the loss rate was reduced by 11.4%.
2. In a building project by Shimizu Construction Company, may cases of faulty
reinforced concrete work were reported. The iron workers quality circle
examined their work thoroughly and soon the faulty workmanship
disappeared. A 10% increase in productivity was also achieved.

Safety
Construction is a relatively hazardous undertaking. As Table 13-1 illustrates,
there are significantly more injuries and lost workdays due to injuries or
illnesses in construction than in virtually any other industry. These work
related injuries and illnesses are exceedingly costly. The Construction
Industry Cost Effectiveness Project estimated that accidents cost $8.9 billion
or nearly seven percent of the $137 billion (in 1979 dollars) spent annually
for industrial, utility and commercial construction in the United States.
Included in this total are direct costs (medical costs, premiums for workers'
compensation benefits, liability and property losses) as well as indirect costs
(reduced worker productivity, delays in projects, administrative time, and
damage to equipment and the facility). In contrast to most industrial
accidents, innocent bystanders may also be injuried by construction
accidents. Several crane collapses from high rise buildings under
construction have resulted in fatalities to passerbys. Prudent project
managers and owners would like to reduce accidents, injuries and illnesses
as much as possible.

TABLE 13-1  Nonfatal Occupational Injury and Illness Incidence Rates

Industry 1996 2006

Agriculture, forestry, fishing 8.7 6

Mining 5.4 3.5
Construction 9.9 5.9
Manufacturing 10.6 6
Trade,Transportation and utilities 8.7 5
Financial activities 2.4 1.5
Professional and business services 6.0 1.2

Note: Data represent total number of cases per 100 full-time employees

Source: U.S. Bureau of Labor Statistics, Occupational injuries and Illnesses in the
United States by Industry, annual

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As with all the other costs of construction, it is a mistake for owners to ignore
a significant category of costs such as injury and illnesses. While contractors
may pay insurance premiums directly, these costs are reflected in bid prices
or contract amounts. Delays caused by injuries and illnesses can present
significant opportunity costs to owners. In the long run, the owners of
constructed facilities must pay all the costs of construction. For the case of
injuries and illnesses, this general principle might be slightly qualified since
significant costs are borne by workers themselves or society at large.
However, court judgements and insurance payments compensate for
individual losses and are ultimately borne by the owners.

The causes of injuries in construction are numerous. Table 13-2 lists the
reported causes of accidents in the US construction industry in 1997 and
2004. A similar catalogue of causes would exist for other countries. The
largest single category for both injuries and fatalities are individual falls.
Handling goods and transportation are also a significant cause of injuries.
From a management perspective, however, these reported causes do not
really provide a useful prescription for safety policies. An individual fall may
be caused by a series of coincidences: a railing might not be secure, a
worker might be inattentive, the footing may be slippery, etc. Removing any
one of these compound causes might serve to prevent any particular
accident. However, it is clear that conditions such as unsecured railings will
normally increase the risk of accidents. Table 13-3 provides a more detailed
list of causes of fatalities for construction sites alone, but again each fatality
may have multiple causes.

TABLE 13-2  Fatal Occupational Injuries

in Construction, 1997 and 2004

Year 1997 2004

Total fatalities
Falls
1,107 1,234
Transportation incidents
376 445
Contact with objects &
288 287
equipment
199 267
Exposure to harmful
188 170
substances and
environments

Source: Bureau of Labor Statistics

TABLE 13-3  Fatality Causes in Construction, 1996/1997 and

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 2006/2007

Year 96/97 06/07

Total accidents 287 241

Falls from a height 88 45
Struck by a moving vehicle 43 30
Struck by moving/falling object 57 40
Trapped by something overturning/collapsing 16 19
Drowning/asphyxiation 9 16

Source: Bureau of Labor Statistics

Various measures are available to improve jobsite safety in construction.

Several of the most important occur before construction is undertaken.
These include design, choice of technology and education. By altering facility
designs, particular structures can be safer or more hazardous to construct.
For example, parapets can be designed to appropriate heights for
construction worker safety, rather than the minimum height required by
building codes.

Choice of technology can also be critical in determining the safety of a

jobsite. Safeguards built into machinery can notify operators of problems or
prevent injuries. For example, simple switches can prevent equipment from
being operating when protective shields are not in place. With the availability
of on-board electronics (including computer chips) and sensors, the
possibilities for sophisticated machine controllers and monitors has greatly
expanded for construction equipment and tools. Materials and work process
choices also influence the safety of construction. For example, substitution of
alternative materials for asbestos can reduce or eliminate the prospects of
long term illnesses such as asbestiosis.

Educating workers and managers in proper procedures and hazards can have
a direct impact on jobsite safety. The realization of the large costs involved
in construction injuries and illnesses provides a considerable motivation for
awareness and education. Regular safety inspections and safety meetings
have become standard practices on most job sites.

Pre-qualification of contractors and sub-contractors with regard to safety is

another important avenue for safety improvement. If contractors are only
invitied to bid or enter negotiations if they have an acceptable record of
safety (as well as quality performance), then a direct incentive is provided to
insure adequate safety on the part of contractors.

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During the construction process itself, the most important safety related
measures are to insure vigilance and cooperation on the part of managers,
inspectors and workers. Vigilance involves considering the risks of different
working practices. In also involves maintaining temporary physical
safeguards such as barricades, braces, guylines, railings, toeboards and the
like. Sets of standard practices are also important, such as:

 requiring hard hats on site.

 requiring eye protection on site.
 requiring hearing protection near loud equipment.
 insuring safety shoes for workers.
 providing first-aid supplies and trained personnel on site

While eliminating accidents and work related illnesses is a worthwhile goal, it

will never be attained. Construction has a number of characteristics making
it inherently hazardous. Large forces are involved in many operations. The
jobsite is continually changing as construction proceeds. Workers do not
have fixed worksites and must move around a structure under construction.
The tenure of a worker on a site is short, so the worker's familiarity and the
employer-employee relationship are less settled than in manufacturing
settings. Despite these peculiarities and as a result of exactly these special
problems, improving worksite safety is a very important project management
concern.

Example 13-6: Trench collapse

To replace 1,200 feet of a sewer line, a trench of between 12.5 and 18 feet deep
was required down the center of a four lane street. The contractor chose to begin
excavation of the trench from the shallower end, requiring a 12.5 deep trench.
Initially, the contractor used a nine foot high, four foot wide steel trench box for soil
support. A trench box is a rigid steel frame consisting of two walls supported by
welded struts with open sides and ends. This method had the advantage that traffic
could be maintained in at least two lanes during the reconstruction work.

In the shallow parts of the trench, the trench box seemed to adequately
support the excavation. However, as the trench got deeper, more soil was
unsupported below the trench box. Intermittent soil collapses in the trench
began to occur. Eventually, an old parallel six inch water main collapsed,
thereby saturating the soil and leading to massive soil collapse at the bottom
of the trench. Replacement of the water main was added to the initial
contract. At this point, the contractor began sloping the sides of the trench,
thereby requiring the closure of the entire street.

The initial use of the trench box was convenient, but it was clearly
inadequate and unsafe. Workers in the trench were in continuing danger of
accidents stemming from soil collapse. Disruption to surrounding facilities

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such as the parallel water main was highly likely. Adoption of a tongue and
groove vertical sheeting system over the full height of the trench or,
alternatively, the sloping excavation eventually adopted are clearly
preferable.

13.9 References
1. Ang, A.H.S. and W.H. Tang, Probability Concepts in Engineering Planning and
Design: Volume I - Basic Principles, John Wiley and Sons, Inc., New York,
1975.
2. Au, T., R.M. Shane, and L.A. Hoel, Fundamentals of Systems Engineering:
Probabilistic Models, Addison-Wesley Publishing Co., Reading MA, 1972
3. Bowker, A.H. and Liebermann, G. J., Engineering Statistics, Prentice-Hall,
1972.
4. Fox, A.J. and Cornell, H.A., (eds), Quality in the Constructed Project, American
Society of Civil Engineers, New York, 1984.
5. International Organization for Standardization, "Sampling Procedures and
Charts for Inspection by Variables for Percent Defective, ISO 3951-1981 (E)",
Statistical Methods, ISO Standard Handbook 3, International Organization for
Standardization, Paris, France, 1981.
6. Skibniewski, M. and Hendrickson, C., Methods to Improve the Safety
Performance of the U.S. Construction Industry, Technical Report, Department
of Civil Engineering, Carnegie Mellon University, 1983.
7. United States Department of Defense, Sampling Procedures and Tables for
Inspection by Variables, (Military Standard 414), Washington D.C.: U.S.
Government Printing Office, 1957.
8. United States Department of Defense, Sampling Procedures and Tables for
Inspection by Attributes, (Military Standard 105D), Washington D.C.: U.S.
Government Printing Office, 1963

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