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A WARM
An effort is made to throw
Light on departmental
Execution process for
academic knowledge.
(Karnataka PWD)
C O N S T R U C T I O N
M A N A G E M E N T
By: Er. V.H.Jadahav
M.Tech (Str) M.I.E
Adjunct Professor
K.L.E.Technological University,
Vidyanagar Hubballi,
Retd. Technical Advisor (KPWD AEE),
HDBRTS Co. Lted Rayapur
Dharwad
E-mail: vithaljadhavh@gmail.com
Who is an Engineer?
“A person qualified in
Engineering or who
maintains or makes
something to happen”
M A N A G E R:
A person who manages all
activities of an event in a
scheduled, safe, economic and
sustainable way.
An Engineer may be a manager
C O N S T R U C T I O N
M A N A G E M E N T
Construct : Build –Various processes
Management : –Various skills
Construction Industry
includes:
Management
Finance
Human resource
Materials
Technical up to date Skill
Advanced Tools and Plants
Work : Input process Output.
It is difficult to define a work, because
every activity of a living organism may
have to be defined as a work, as it
involves an input and an out put
involving some process.
Works
Classification of works: Based on
Nature.
Importance.
Structural component.
Cost.
Usage.
Life period or usage period.
Civil engineering works
Road work
Bridge works
Building works
Irrigation works
Electrical works
Sanitary works
Construction Organization
(Industry / Company)
Resource – Owner
Manager – Engineer
Executor – Agency or Contractor
Manager’s duties and responsibilities:
Scheduled Planning.
Team building.
Resource management.
Advanced & skilled management.
Labour management.
Material management.
Quality management.
Safety management.
Object of a Manager:
To complete an event within the
stipulated time with quality, safety,
stability, economy, serviceability
under good working environment
etc.,
To achieve the object :Requirements:
Skilled manager.
Sufficient fund.
Proper investigation/Proper D.P.R.
Scheduled planning : CPM (Critical Path
Method)/ PERT (Programme Evaluation
and Review Technique) –MMR/MRM
Work environment
Set of Construction management in KPW,P & IWT Department:
PWD Minister - (Govt.,)
Principal secretary - (Govt.,)
PW,P & IWT Secretary - Govt.,)
Chief Engineer - (Zone)
Superintending Engineer -(Circle/Four District)
Executive Engineer - (Division/District)
Assistant Executive Engineer - (Taluka)
Assistant Engineer - (Section)
Junior Engineer and - (Section or Sub Section)
Work Inspector (Supervisory level)
Quality Policy of the Department
“To Plan Construct and Maintain,
Safe, Functional, Cost effective and
Continually improving infrastructure
of Road Network and Buildings in
Karnataka”
Department is governed by
KCSR – Karnataka Civil Service
Rule(Administration)
PWD Codes Volume-I and II
Delegation of Financial Powers (G.O)
Government Orders and Circulars
Tendering --- Standard Bid Document (S.B.D).
e-tendering.
Delegations of financial powers.
(Latest amendments to be referred).
G.O No., PWD 1FCR 93 Bangalore dated : 15-12-1994
G.O No., PWD 671 FC-1 2009 Bangalore dated : 03-2-2010
And many more Govt. orders as and when
emergency services are needed i.e., to execute
flood relief works or any natural disaster relief
works etc.,
Departmental Procedure to take up a work
Need assessment:
Requisition from Public,
Representation by Public representative,
Officers' inspection based.
User requirement(User Dept.,), and
Media news.
Proposal submission: As per the delegation powers.
Allocation of fund:
Budget allocation / Special grant /
C.R.F / NABARD-RIDF /
Deposit contribution etc.,
Head of accounts under which KPWD(latest to be referred)
5054 - Bridges ( -03-337-0-01-172)
5054 - Other road formation (-03-337-0-02-172 )
5054 - Other road formation S.C.P. (-03-337-0-02-422)
5054 - Other road formation T.S.P. (-03-337-0-02-423)
5054 – Suvarna Raste vikas Yojane – S.D.P Dr.Nanjundappa report
(04-800-0-1-09-133)
5054 – Suvarna Raste vikas Yojane – (Roads) (-04-800-0-1-09-172)
5054 - Central Road Fund (C.R.F) (-04-800-2-02-172)
5054 – NABARD (SDP) – S.D.P Dr.Nanjundappa report Programme.
(-04-800-3-01-133)
5054 – NABARD (SCP) –Programme. (-04-800-3-01-422)
5054 – NABARD (TSP) –Programme. (-04-800-3-01-423)
5054 – NABARD Bridges –Programme. (-04-800-3-01-436)
5054 – NABARD Roads –Programme. (-04-800-3-02-436)
5054 – KRDCL-(SDP)–Dr.Nanjundappa report Programme.Programme.
(-18-190-0-01-133)
3054 – State Highway Maintenance –Programme. (-03-337-0-05-200)
3054 – State Highway Maintenance –Programme. (-03-337-0-05-200)
Head of accounts under which KPWD –
( Conti…..)
3054 – 12th Finance Nonplan–Programme. (-04-105-1-01-200)
3054 – CMGSY(MDR)–Programme. (-04-337-1-09-172)
4059 – Departmental Buildings–Programme. (ont-80-051-0-29-
386)
4059 – Minividhanasoudha and Sub-registrar-Blds. (-80-051-0-30-386)
4059 – Court buildings (State & Central sponsered). (-80-051-0-32-386)
4059 – High Court Circuit Bench(DWD+GLB). (-80-051-0-38-386)
4059 – Suvarna Soudha Belgaum. (-80-051-0-40-386)
4216 – Buildings. (-01-700-2-01-386)
2059 – Dept. buildings Repairs (Nonplan). (-80-053-4-00-200)
2059 – 12th Finance Buildings repair and Maintenance. (-80-053-5-00-200)
2216 – Other Residential bld. repair and Maintenance.(NP) (-01-700-3-01-200)
5054 – Renewal of SH (SCP).(Plan) (-03-337-0-13-422)
5054 – Renewal of SH (TSP).(Plan) (-03-337-0-13-423)
5054 – State Highway Project (Renewal) (-03-337-0-13-172)
5054 – Roads & Brg. Maintenance. (-04-800-1-01-200)
5054 – Western Ghat Roads Maintenance and Improvements(Non Plan)
4059 –Facilities for Handicaped - (-80-051-0-29-386)
Project preparation:
Reconnaissance survey,
Detailed survey,
Detailed design (ref: IS,IRC,MORT&H,NBC),
Preparation of Design and drawings, and
Preparation of detailed project(Estimte).
Project submission: From A.E.E up to Secretary. Depending
Up on delegation of financial powers.
Project approvals:
Administrative approval (Budget allocation)
Technical Sanction,
D.T.P.(Draft Tender Papers) approval.
Tender notification (E-Tendering),
Tender approval.
Mode of Execution :
1) Tendering
a) Manual : By advertising in local news and in
Gazette (now almost all tenders are
called under e-procurement).
b) e-tendering : Through Department website
2) Short term tendering : By advertising on office Notice
board
3) Piece work agreement : By mutual consent
(Petty works only)
4) Through department : Only under emergency.
(now generally no work is being taken up departmentally)
Types of Contracts and
Guidelines for their choice
Codal Provisions
Paragraph 168 of KPWD Code Volume I
discusses in brief only two types of
contracts, namely Lump-sum and Schedule
(Item Rate);
Development projects of Government
Departments/PSUs and local bodies are
sometimes complex and necessitate use of
other alternative types of contracts.
Government Instructions
Circular issued by FD in January 2005;
Circular details the various types of contracts
and gives guidance for their choice;
Choice of type of contract has to be made at
the initial stage itself, preparation of P.P.;
Type of contract affects the subsequent
stages of procurement, the content of tender
document,
Lump-sum or all inclusive contract
Tenderer quotes a fixed sum for execution of work as per
design and specification within stipulated time; Payment
is linked to stage of completion of an activity; Relatively
easy to administer; Inflexible for design changes
Normally used for small, short duration, well defined,
detailed works; Example standard housing, bus shelters,
primary health centre etc.
Item rate/unit rate/ad-measurement contract
Most common type of contract;
Tenderer quotes unit rates for different items;
Unit rates is inclusive of the costs of labour, materials,
equipment; Detailed measurements are recorded and
payment made at the tendered unit rates; Flexible to
handle variations due to changes in design; Higher
supervisory costs; Amenable for manipulation
Percentage rate contract
Contractors to submit the %age above or
below the current schedule of rates;
Simple to comprehend for the contractor;
Decision on tender immediate;
Irrational tender, same percentage above or
below different category of items;
Appropriate for small value contracts, when
items of work are few and belong to same
category.
Cost plus contracts
Periodic reimbursement of contractor’s costs of
inputs plus fee to cover overheads;
Fee may be fixed or percentage of measured costs;
Early mobilization possible in emergency situations
or poorly defined works;
If fee is fixed little incentive to produce quality
work; If fee is %, limited incentive to be cost
effective;
Appropriate for open ended emergency situations;
Mostly used in private sector.
Supply and erect/install, commission and
test contracts
Single responsibility;
Management is simple;
Direct cost is likely to be more;
Appropriate for power plants, water
pumping plants, water treatment and
sewerage treatment plants;
telecommunication projects etc
Design and Build Contract
Innovative competitive designs are possible,
which result in economy, better design and
aesthetics;
Pre-qualification is an essential feature;
Appropriate for important buildings, major
bridges, complex, flyover, navigation works,
airports and other infrastructure works
Turnkey contracts
Tenders for alternative systems and processes;
Two stage tendering procedure followed;
Usually Lump sum with price adjustment;
Employer is able to choose the best available
processes and thus effect economy;
Appropriate for procurement of complex industrial
process plants such as steel mills, fertilizer plants,
food processing, oil refineries etc.
Management Contracts
Firm acts in the role of a contractor that
does not actually perform work directly but
manages the work of other sub-contractors;
Bears full responsibility and risk for price,
quantity and timely performance of
contract;
Appropriate for major infrastructure projects
such as airports, sea ports etc.
Public Private Participation contracts
BOT, BOO, BOOT contracts;
Concessionary turn key type of contract including
financing in addition to design and construction,
operation and maintenance of public and private
revenue earning projects;
It is a way of overcoming the budgetary constraints
to acquire the needed infrastructure for growth;
Appropriate for profit earning projects such as
power generation and distribution, toll roads, and
other projects.
Execution Steps:
Execution of agreement,
Handingover of site,
Preparation of CPM (By the bidder),
Line out preparation,
Set up of site requirement
Field office set up, Safety measures, Quality
control unit, stock yard, Civic amenities etc.,
Inspection of work:
Periodic inspection of the work will be done by the officers, starting
from A.E.E to C.E and for important works the work will be inspected
by Principal Secretary and Secretary.
Lineout confirmation by A.E.E and E.E.
 Foundation details by S.E
Quality monitoring of work:
Quality of materials - A.E.E/E.E/S.E Q. Assurance
 Quality assurance - Field staff also.
Quality assurance - Agency in site Lab. Also
Quality assurance - Third party consultancy.
Monitoring progress of work:
Daily- - W.I/J.E/A.E/A.E.E
 Monthly - E.E/S.E/C.E/Sec.(MMR)
Time extension: May have to be granted.
On departmental fault or Natural disaster effect.
With fine on agency’s fault.
E.I.R.L : On inspection and its need based on technical
problem.
Work Slip : For excess quantities.
Rescind of contract: On fault of agency after penalizing
him up to 7.5%
Revised estimate : If the expenditure exceeds
15% (see latest department new code limits) of
the original sanctioned amount then a revised
estimate will have to be prepared based on
actual expenditure and will be got approved by
the competent authority.
Final certification for the work:
Issue of Utilization Certificate.(U.C):
Project completion Certificate.(P.C.R)
Thank you

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Construction management

  • 2. An effort is made to throw Light on departmental Execution process for academic knowledge. (Karnataka PWD)
  • 3. C O N S T R U C T I O N M A N A G E M E N T By: Er. V.H.Jadahav M.Tech (Str) M.I.E Adjunct Professor K.L.E.Technological University, Vidyanagar Hubballi, Retd. Technical Advisor (KPWD AEE), HDBRTS Co. Lted Rayapur Dharwad E-mail: vithaljadhavh@gmail.com
  • 4. Who is an Engineer? “A person qualified in Engineering or who maintains or makes something to happen”
  • 5. M A N A G E R: A person who manages all activities of an event in a scheduled, safe, economic and sustainable way. An Engineer may be a manager
  • 6. C O N S T R U C T I O N M A N A G E M E N T Construct : Build –Various processes Management : –Various skills
  • 8. Work : Input process Output. It is difficult to define a work, because every activity of a living organism may have to be defined as a work, as it involves an input and an out put involving some process.
  • 9. Works Classification of works: Based on Nature. Importance. Structural component. Cost. Usage. Life period or usage period.
  • 10. Civil engineering works Road work Bridge works Building works Irrigation works Electrical works Sanitary works
  • 11. Construction Organization (Industry / Company) Resource – Owner Manager – Engineer Executor – Agency or Contractor
  • 12. Manager’s duties and responsibilities: Scheduled Planning. Team building. Resource management. Advanced & skilled management. Labour management. Material management. Quality management. Safety management.
  • 13. Object of a Manager: To complete an event within the stipulated time with quality, safety, stability, economy, serviceability under good working environment etc.,
  • 14. To achieve the object :Requirements: Skilled manager. Sufficient fund. Proper investigation/Proper D.P.R. Scheduled planning : CPM (Critical Path Method)/ PERT (Programme Evaluation and Review Technique) –MMR/MRM Work environment
  • 15. Set of Construction management in KPW,P & IWT Department: PWD Minister - (Govt.,) Principal secretary - (Govt.,) PW,P & IWT Secretary - Govt.,) Chief Engineer - (Zone) Superintending Engineer -(Circle/Four District) Executive Engineer - (Division/District) Assistant Executive Engineer - (Taluka) Assistant Engineer - (Section) Junior Engineer and - (Section or Sub Section) Work Inspector (Supervisory level)
  • 16. Quality Policy of the Department “To Plan Construct and Maintain, Safe, Functional, Cost effective and Continually improving infrastructure of Road Network and Buildings in Karnataka”
  • 17. Department is governed by KCSR – Karnataka Civil Service Rule(Administration) PWD Codes Volume-I and II Delegation of Financial Powers (G.O) Government Orders and Circulars Tendering --- Standard Bid Document (S.B.D). e-tendering.
  • 18. Delegations of financial powers. (Latest amendments to be referred). G.O No., PWD 1FCR 93 Bangalore dated : 15-12-1994 G.O No., PWD 671 FC-1 2009 Bangalore dated : 03-2-2010 And many more Govt. orders as and when emergency services are needed i.e., to execute flood relief works or any natural disaster relief works etc.,
  • 19. Departmental Procedure to take up a work Need assessment: Requisition from Public, Representation by Public representative, Officers' inspection based. User requirement(User Dept.,), and Media news. Proposal submission: As per the delegation powers. Allocation of fund: Budget allocation / Special grant / C.R.F / NABARD-RIDF / Deposit contribution etc.,
  • 20. Head of accounts under which KPWD(latest to be referred) 5054 - Bridges ( -03-337-0-01-172) 5054 - Other road formation (-03-337-0-02-172 ) 5054 - Other road formation S.C.P. (-03-337-0-02-422) 5054 - Other road formation T.S.P. (-03-337-0-02-423) 5054 – Suvarna Raste vikas Yojane – S.D.P Dr.Nanjundappa report (04-800-0-1-09-133) 5054 – Suvarna Raste vikas Yojane – (Roads) (-04-800-0-1-09-172) 5054 - Central Road Fund (C.R.F) (-04-800-2-02-172) 5054 – NABARD (SDP) – S.D.P Dr.Nanjundappa report Programme. (-04-800-3-01-133) 5054 – NABARD (SCP) –Programme. (-04-800-3-01-422) 5054 – NABARD (TSP) –Programme. (-04-800-3-01-423) 5054 – NABARD Bridges –Programme. (-04-800-3-01-436) 5054 – NABARD Roads –Programme. (-04-800-3-02-436) 5054 – KRDCL-(SDP)–Dr.Nanjundappa report Programme.Programme. (-18-190-0-01-133) 3054 – State Highway Maintenance –Programme. (-03-337-0-05-200) 3054 – State Highway Maintenance –Programme. (-03-337-0-05-200)
  • 21. Head of accounts under which KPWD – ( Conti…..) 3054 – 12th Finance Nonplan–Programme. (-04-105-1-01-200) 3054 – CMGSY(MDR)–Programme. (-04-337-1-09-172) 4059 – Departmental Buildings–Programme. (ont-80-051-0-29- 386) 4059 – Minividhanasoudha and Sub-registrar-Blds. (-80-051-0-30-386) 4059 – Court buildings (State & Central sponsered). (-80-051-0-32-386) 4059 – High Court Circuit Bench(DWD+GLB). (-80-051-0-38-386) 4059 – Suvarna Soudha Belgaum. (-80-051-0-40-386) 4216 – Buildings. (-01-700-2-01-386) 2059 – Dept. buildings Repairs (Nonplan). (-80-053-4-00-200) 2059 – 12th Finance Buildings repair and Maintenance. (-80-053-5-00-200) 2216 – Other Residential bld. repair and Maintenance.(NP) (-01-700-3-01-200) 5054 – Renewal of SH (SCP).(Plan) (-03-337-0-13-422) 5054 – Renewal of SH (TSP).(Plan) (-03-337-0-13-423) 5054 – State Highway Project (Renewal) (-03-337-0-13-172) 5054 – Roads & Brg. Maintenance. (-04-800-1-01-200) 5054 – Western Ghat Roads Maintenance and Improvements(Non Plan) 4059 –Facilities for Handicaped - (-80-051-0-29-386)
  • 22. Project preparation: Reconnaissance survey, Detailed survey, Detailed design (ref: IS,IRC,MORT&H,NBC), Preparation of Design and drawings, and Preparation of detailed project(Estimte). Project submission: From A.E.E up to Secretary. Depending Up on delegation of financial powers. Project approvals: Administrative approval (Budget allocation) Technical Sanction, D.T.P.(Draft Tender Papers) approval. Tender notification (E-Tendering), Tender approval.
  • 23. Mode of Execution : 1) Tendering a) Manual : By advertising in local news and in Gazette (now almost all tenders are called under e-procurement). b) e-tendering : Through Department website 2) Short term tendering : By advertising on office Notice board 3) Piece work agreement : By mutual consent (Petty works only) 4) Through department : Only under emergency. (now generally no work is being taken up departmentally)
  • 24. Types of Contracts and Guidelines for their choice
  • 25. Codal Provisions Paragraph 168 of KPWD Code Volume I discusses in brief only two types of contracts, namely Lump-sum and Schedule (Item Rate); Development projects of Government Departments/PSUs and local bodies are sometimes complex and necessitate use of other alternative types of contracts.
  • 26. Government Instructions Circular issued by FD in January 2005; Circular details the various types of contracts and gives guidance for their choice; Choice of type of contract has to be made at the initial stage itself, preparation of P.P.; Type of contract affects the subsequent stages of procurement, the content of tender document,
  • 27. Lump-sum or all inclusive contract Tenderer quotes a fixed sum for execution of work as per design and specification within stipulated time; Payment is linked to stage of completion of an activity; Relatively easy to administer; Inflexible for design changes Normally used for small, short duration, well defined, detailed works; Example standard housing, bus shelters, primary health centre etc.
  • 28. Item rate/unit rate/ad-measurement contract Most common type of contract; Tenderer quotes unit rates for different items; Unit rates is inclusive of the costs of labour, materials, equipment; Detailed measurements are recorded and payment made at the tendered unit rates; Flexible to handle variations due to changes in design; Higher supervisory costs; Amenable for manipulation
  • 29. Percentage rate contract Contractors to submit the %age above or below the current schedule of rates; Simple to comprehend for the contractor; Decision on tender immediate; Irrational tender, same percentage above or below different category of items; Appropriate for small value contracts, when items of work are few and belong to same category.
  • 30. Cost plus contracts Periodic reimbursement of contractor’s costs of inputs plus fee to cover overheads; Fee may be fixed or percentage of measured costs; Early mobilization possible in emergency situations or poorly defined works; If fee is fixed little incentive to produce quality work; If fee is %, limited incentive to be cost effective; Appropriate for open ended emergency situations; Mostly used in private sector.
  • 31. Supply and erect/install, commission and test contracts Single responsibility; Management is simple; Direct cost is likely to be more; Appropriate for power plants, water pumping plants, water treatment and sewerage treatment plants; telecommunication projects etc
  • 32. Design and Build Contract Innovative competitive designs are possible, which result in economy, better design and aesthetics; Pre-qualification is an essential feature; Appropriate for important buildings, major bridges, complex, flyover, navigation works, airports and other infrastructure works
  • 33. Turnkey contracts Tenders for alternative systems and processes; Two stage tendering procedure followed; Usually Lump sum with price adjustment; Employer is able to choose the best available processes and thus effect economy; Appropriate for procurement of complex industrial process plants such as steel mills, fertilizer plants, food processing, oil refineries etc.
  • 34. Management Contracts Firm acts in the role of a contractor that does not actually perform work directly but manages the work of other sub-contractors; Bears full responsibility and risk for price, quantity and timely performance of contract; Appropriate for major infrastructure projects such as airports, sea ports etc.
  • 35. Public Private Participation contracts BOT, BOO, BOOT contracts; Concessionary turn key type of contract including financing in addition to design and construction, operation and maintenance of public and private revenue earning projects; It is a way of overcoming the budgetary constraints to acquire the needed infrastructure for growth; Appropriate for profit earning projects such as power generation and distribution, toll roads, and other projects.
  • 36. Execution Steps: Execution of agreement, Handingover of site, Preparation of CPM (By the bidder), Line out preparation, Set up of site requirement Field office set up, Safety measures, Quality control unit, stock yard, Civic amenities etc., Inspection of work: Periodic inspection of the work will be done by the officers, starting from A.E.E to C.E and for important works the work will be inspected by Principal Secretary and Secretary. Lineout confirmation by A.E.E and E.E.  Foundation details by S.E
  • 37. Quality monitoring of work: Quality of materials - A.E.E/E.E/S.E Q. Assurance  Quality assurance - Field staff also. Quality assurance - Agency in site Lab. Also Quality assurance - Third party consultancy. Monitoring progress of work: Daily- - W.I/J.E/A.E/A.E.E  Monthly - E.E/S.E/C.E/Sec.(MMR)
  • 38. Time extension: May have to be granted. On departmental fault or Natural disaster effect. With fine on agency’s fault. E.I.R.L : On inspection and its need based on technical problem. Work Slip : For excess quantities. Rescind of contract: On fault of agency after penalizing him up to 7.5%
  • 39. Revised estimate : If the expenditure exceeds 15% (see latest department new code limits) of the original sanctioned amount then a revised estimate will have to be prepared based on actual expenditure and will be got approved by the competent authority.
  • 40. Final certification for the work: Issue of Utilization Certificate.(U.C): Project completion Certificate.(P.C.R)