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Construction Project Organization, Legal Structure, and Construction Project Requirements

The document discusses the requirements for organizing and executing a construction project. It describes: 1) The need for an organizational structure that defines roles and responsibilities to facilitate project coordination. Functional, matrix, and hierarchical structures are discussed. 2) Legal structures for construction companies including sole proprietorships, partnerships, and corporations. 3) Key phases of a construction project including design, bidding/negotiation, construction documents, and general construction administration.

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John Aldren Abasolo
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320 views

Construction Project Organization, Legal Structure, and Construction Project Requirements

The document discusses the requirements for organizing and executing a construction project. It describes: 1) The need for an organizational structure that defines roles and responsibilities to facilitate project coordination. Functional, matrix, and hierarchical structures are discussed. 2) Legal structures for construction companies including sole proprietorships, partnerships, and corporations. 3) Key phases of a construction project including design, bidding/negotiation, construction documents, and general construction administration.

Uploaded by

John Aldren Abasolo
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Construction Project

Organization, Legal Structure,


and
Construction Project
Requirements 
REPORTERS:
ABASOLO, JOHN ALDREN
ARAÑA, GERONIMO
CORPUZ, GERWENE

http://www.free-powerpoint-templates-design.com
is a group of individuals who are cooperating willingly and
effectively for a common goal It is nothing more than the
Organization mechanism by which administration directs, coordinates and
controls its business. It is indeed, the very foundation of
administration.

A good execute may be able to secure good results with a


poor organization, and a good organization may produce
results from a poor executive. But the ideal set up is, a
combination of a good organization and a good executive.
Project defines the human infrastructure, and identifies roles and
responsibilities of each positions that facilitates the
Organization coordination and implementation of project activities.

The success of project depends on its organizational


structure, key personnel capability, and management work
process in which where decision is made. The Project
organization can be structured as a Functional Structure
organization, Project TF (Task force) (traditional Hierarchical)
Structure organization, and Matrix Structure organization.
5 Structural Elements of an
Organization (5 M’s):

Men Materials Machine Methods Money


These are the different Represents the The tools necessary in The procedures and The financial
members of the materials necessary in producing its desired ways used in the resources of the
organization starting the distribution of output. course of its actions. organization.
from the very top of functions or in the
the last workman in attainment of its
the enterprise. objectives.
Major Elements of
Organizational Structure

Distribution of Functions.
01 The functions to be performed, the groupings of functions, and
the vertical and horizontal task relationship among functions.

Vertical and Horizontal authority relationships

02 who have the authority to do

Communication and Decision processes


03 The manner in which formal decisions are made and by whom.

Policies.
04 The decision, rules or guidelines established.
Types of
Project
Organization
Types
Functional Project TF (Task
Organization Force) Organization Matrix Organization
Structure

is a structure in which is a traditional hierarchical


divides the specific roles structure organization that is
according to its function defined by PMI as a
commonly used in Hierarchical Structure,
production industries. Projectized Organization. A
The Functional Project Manager who is the is a general company
organization structure is head of all author the human structure in which the
divided roles and infrastructure, and identifies reporting process is set up
functions by the division roles and responsibilities of as dual relationships, task
or department, such as each positions that facilitates force team (project
project management, the coordination and management) and
engineering, implementation of project functional management.
procurement, activities.
construction, and project
controls
Legal Structure for a
Construction Company

Contractors have wrestled with the proper legal structure


for their company for years. There is no hard and fast
conclusion that works for everyone. There are, however a
few things to consider and review that may make the
decision easier.
Legal Structure for a Construction Company
Sole Proprietorship
This is the method chosen by most new businesses to get up and rolling. There is, however, no
difference between you and the company or your personal or business assets. Additionally, this
method offers virtually no legal protection for you from lawsuits and creditors. That means if you are
S
sued, both you and your company are open to attack and both your personal and business bank
accounts become the target.

Partnership
This is where two or more people get together and try to do business under the
umbrella of a "partnership". The legal aspects of the partnership are whatever the

P
partners want it to be.
A written contract is an important matter on how the partnership is set up, how it is to
be run and by whom. If no written contract is present, it will certainly end up in a
disagreement at some point in time.

Corporation
Corporation is where large scale of people are involved on a business or
project. Rules must be followed if you wish to remain bullet proof. If you
follow the rules, you are reasonably well protected.

C
The "C" corporation does have a downside and that is double taxation.
The corporation is taxed on income and if you take a dividend (pay, salary,
bonus) then you are taxed personally on that amount.
Construction Project
Requirements 
Actual design begins with the architect's preparation of
schematic designs, the simple functional or space diagrams
Design that illustrate an analysis of the project requirements as set
out in the program. In preparing schematics, the architect's
intuition as an artist alternates with his or her objective
judgment as an engineer or scientist. Several solutions to
the design problem may be developed and presented to the
client.
The printed construction documents are then distributed to
various construction contractors for their bidding or
Bidding or negotiation. The purpose of this phase of the architect's
services is to select from among qualified contractors the
Negotiation one who will do the work shown and described in the
document for the lowest dollar figure. It usually takes
contractors about thirty days to assemble their figures,
whereupon they each submit their own bid to the client. The
qualified contractor who submits the lowest bid is then
selected by the client in consultation with the architect. An
owner-contractor agreement covering the construction of the
project is executed by the client and the selected contractor.
When the design development materials are approved, the
Construction architect prepares the final construction documents. These
include the working drawings and specifications that show or
Documents describe in detail all the work to be undertaken by the
building contractors in the construction of the project. Their
quality depends on the accuracy of cost estimates of the
work and the effectiveness in constructing the building as it
was designed by the architect.
During the construction phase, the architect provides general
Construction administration of the construction contract. The architect
must check the bonds and insurance materials furnished by
Phase the contractor, check shop drawings and samples submitted
by the contractor, and prepare any supplemental drawings or
other interpretations required to clarify the construction
documents
Thank You

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