INTRODUCTION TO CMPM Project Stages

1. Definition and Planning

Management • Establish project’s goals

• Establish broad project characteristics
1. As a process • Create project plan
• It is a process of directing and facilitating the work of 2. Design
people who are organized for a common purpose
• Involves architectural and engineering design of the
2. As a function entire project
• It is the function of getting things done through the • Final working drawings and specifications
efforts of others • Research materials, equipment and design
3. Procurement

Construction Project Participants • Ordering expediting, and delivering of goods and

services required for the construction project
1. The owners
4. Construction
• Private – owner owns land and pays for construction
of the facility, able to accept or reject bids based on • Execution of construction work as per construction
many parameters including cost, quality and plan and design
reputation
• Public – owner is a government agency, public pays
for the facility, and has very strict method of soliciting Construction Project Categories
and accepting bids, writing specifications (building is
1. Residential Buildings – entails creating, maintaining and
for public use)
changing buildings that house people, goods or equipment
2. Design Professionals – assist owner in developing plan for
facility, making sure it is structurally sound • Single family homes, apartments, townhomes,
condos, nursing homes and dorms
• Make sure all systems, utilities and facilities are • Typically, engineers and architects plan residential
integrated into design houses and construction companies hire
• Responsible for applying for and obtaining all subcontractors to do the mechanical, structural and
necessary permits electrical work
• In a single-family home, design and building are
3. Contractor – build the project to the specifications set forth
frequently handled by the same company
in the contract for a contracted price
2. Commercial Buildings – dependent on economy
• Will subcontract to specialty firms
• Subcontractors may subcontract further • Schools, sports stadiums, shopping malls, hospitals,
stadiums, theaters, skyscrapers and commercial hubs
• A retail store is typically commissioned by a business
Construction Project – is an intricate, time-consuming and or private owner
organized process of constructing, renovating and retrofitting • Government frequently provides funding for and
physical structures or infrastructures oversight of infrastructure projects like schools,
healthcare facilities, etc
3. Infrastructure and Heavy Constructions – refers to
Characteristics of Construction Project infrastructures facilities, systems and structures that are
• Defined goals and objective developed, owned and operated by the government
• Unique • Includes all facilities that are open to the general
• Complex and diverse public for use
• Interdependent with each task • Highways, mass transit systems, tunnels, bridges,
• Has a definite beginning and end or specific time pipelines, drainage systems and sewage treatment
frame plants
• Satisfy the owner’s expectation and requirements
• Not a routine work
• Involve significant task Types of Infrastructure and Heavy Constructions
1. Soft Infrastructure – refers to all institutions that help
maintain a healthy economy

Cebeda, Princess Danica A.

CE 412 – Construction Methods and Project Management
CE – 3203
2. Hard Infrastructure – comprises all the physical systems 3. Design Development
that are crucial to running a modern, industrialized economy
• Final design phase
3. Critical Infrastructure – makes up all the assets that are • Make system choices based on cost and schedule
defined by the government as being crucial to the functioning • Prequalification process for binder’s contract
of an economy documents and determination of work packages
• Fair cost estimate and schedule developed

Other Examples of Infrastructure and Heavy 4. Construction

Constructions • Mobilization milestones
• Transportation Infrastructure • Substantial completion
• Water Infrastructure • Punchlist items
• Power and Energy Infrastructure • Project close out
• Telecommunications Infrastructure
• Political Infrastructure
• Educational Infrastructure Bid – a proposal submitted by a contractor, supplier or service
provider to compete for a project or contract

• Typically include a detailed description of the work to

Industrial Projects – is a proposal for an investment to build, be performed, the timeline for completion and the
expand, or develop special facilities in order to increase the estimated cost
production of goods and/or services in a community over a
specific period of time Project Risk – refers to the likelihood that an event or
condition may occur
• Include buildings directly used in the production of
power, the manufacture of products, the mining of • Could have an adverse impact on a project’s
raw materials, and the storage of textile, petroleum objectives, schedule, budget or quality
products, wood and paper products, chemicals, • Different types: technical, environmental, financial,
plastics and metals legal and operational

Types of Industrial Projects Examples of Project Risks

• Heavy Industrial Buildings 1. Project Site – neighbors, regulatory environment,

• Warehouses subsurface conditions, economic climate
• Telecom Centers or Data Hosting Centers 2. Project – complexity, planned technologies, degree of
• Cold Storage Buildings finishes, materials, mechanical/electrical system
• Light Manufacturing Buildings
• Flex Buildings 3. Process – project funding, timetable, preconstruction info,
project unknowns
4. Owner Organization – sophistication, organizational
Chronology of Project Construction structure, decision making
1. Conceptual Planning

• Owner makes decision on designers, site, project cost Contingency – is the amount of money or time set aside to
and schedule cover unforeseen events or risks that may arise during the
• Iterative process – add in or delete items to get desired course of project
product
• Are intended to cover unexpected costs or delays that
• Need to gather much info as possible
could impact a project’s schedule, budget or quality
• Rehab work undercovers many unknowns
• Cannot be returned or refunded to the owner
• Permits are started and applications are made
2. Schematic Design
Developing a Contingency Plan
• Actual design begins
• Looking at methods and materials to use 1. Identify potential risks
• Value engineering 2. Assess the probability and potential impact of each
• Begin setting up work packages risk
• Long lead time items 3. Develop a response plan
• Preliminary estimate (+/- 10%) and schedule are 4. Assign responsibilities
completed 5. Monitor and update the plan

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CE 412 – Construction Methods and Project Management
CE – 3203
LECTURE 1 – CONTRACTS AND Types of Contracts
SPECIFICATIONS 1. Lumpsum Contract – aka “pakyawan”, no individual rate
quotes and the contractor agrees to perform the entire work
for a total amount of money
Contract – refers to an agreement between two or more
• Contractor will only receive payment once project is
people with a common intention
complete (quit = no pay)
• It is enforceable by law and aims to create obligations,
Suitability of Lumpsum Contract
and define expectations between parties
• For experienced contractor for a more realistic bid
• Not suitable for difficult foundations, excavations of
Elements of a Contract uncertain character, and projects susceptible to
unpredictable hazards and variations
1. Offer – begins with desire and responsibility, outlines
duties and must include an exchange of value Advantages of Lumpsum Contract

• One party wants something and the other can fulfill it • Owner has power to decide whether to start or shelve
the project knowing the total lumpsum
2. Acceptance – the one who creates the offer can choose to
• Contractor can earn more profit by in-depth planning
accept or reject it
and effective management
• Conditional – accept with certain conditions Disadvantages of Lumpsum Contract
• Acceptance by Action
• Option Agreement – has a specific period of time • Before contract is awarded, the project has to be
studied thoroughly and complete documents must be
3. Signatory Awareness – aka “meeting of the minds”, both prepared in advance
parties must willingly and knowingly enter into agreement • Unforeseen detail of work are not specified in the
• Juris contract and additional items may have to be
• Undue Influence – gaslighting to sign undertaken
• Fraud or Misinformation
4. Contractual Consideration – is something of value 2. Item Rate or Schedule Contract – contractor is waged on
exchanged between parties in a contract which is essential for an item rate basis
a contract to be valid and enforceable
• The amount to be received by the contractor is
• Executed – already been performed determined by the quantities of work executed
• Executory – promise to perform something in the
future Suitability of Item Rate or Schedule Contract

5. Contractual Capacity – a person cannot sign away their • Generally used for all types of engineering works
rights without fully understanding what they are agreeing to financed by public or government bodies
• Suitable for works which can be divided into various
• Ensures all parties comprehend the terms, obligations items and quantities under each item can be
and consequences before signing accurately estimated
• Considerations for lack of legal capacity:
- With mental disorder Advantages of Item Rate or Schedule Contract
- Under influence of alcohol • Detailed drawings are not necessary at the time of
- Minor allotting a contract
- Does not understand the language
• Payment of contractor is made on the actual work
• Means to ensure legal capacity done by him at the agreed rates
- Court appointed for minors
• Changes in drawings or quantities of items can be
- Translated language
made as per requirement within agreed limits
6. Contract Legality – must comply with federal, state and
Disadvantages of Item Rate or Schedule Contract
local laws
• Total value of work can only be computed upon
• A contract involving illegal activities or products is
completion of project
unenforceable
• Additional staff is required to take detailed
• How is contract illegal?
measurements of work done for releasing payments
- Undue influence
• Scope for additional saving with the use of interior
- Juris
quality materials may prompt the contractor to use
- Misinterpretation
such materials in the work

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CE 412 – Construction Methods and Project Management
CE – 3203
3. Lumpsum and Scheduled Contract – similar to lumpsum, 6. Special Contracts
except for the inclusion of a rate schedule
a. Turn-Key Contract – integrated contract in which all
• Contractor agrees to undertake a particular work at a works (CE, EE, ME, etc) are in a single contactor called the
fixed sum within a specified time, and necessarily main contractor
according to plans and detailed specifications
• Main contractor can hire subcontractors
• Schedule rates is given to regulate extra money
• Owner does not need to coordinate the work of all
• Measurements are not required for the original work,
different contractors
but extra items must be measured for payment
• Example: powerplants, hospitals, real estate
Suitability of Lumpsum and Scheduled Contract
b. Package Contract – two or more related jobs are combined
• For construction works with experienced contractors in a single contract
who are also capable of estimating the project cost
• Main contractor is responsible for safeguarding
more realistically
owner’s interest
Advantages of Lumpsum and Scheduled Contract • Main contractor cannot hire subcontractors (1
contractor = all task)
• Additional staff for recording measurements of
original work is not required c. Negotiated Contract – takes place between representatives
• Owner can know from tenders as to what the project of owner and main contractor for project cost and other
will cost him conditions

Disadvantages of Lumpsum and Scheduled Contract • Detailed specifications are arrived at by discussions
• Involves extended discussions for finalization
• Requires thorough investigation of project before
• Example: IT systems, hospitals
contract is awarded, and necessary to complete all
documents d. Continuing Contract – new or additional work is awarded
• Dispute arises from non-scheduled extra items to the contractor on the basis of agreed terms
brought by modifications in drawings
• Does not require re-tendering, saving time and money
e. Running Contract – provides goods and services
4. Cost Plus Fixed Fee Contract – amount of fee is continuously at specified intervals or as when required by
determined as a plump sum from a consideration of the scope owner
of its work, approximate cost, etc
• Contract price is not fixed and payment is based on
Suitability of Cost Plus Fixed Fee Contract goods supplied or services rendered
• Example: food supplies, fuel, maintenance
• For works required to be completed expeditiously
• For important structures where the cost of
construction is immaterial or unimportant
Contract Documents – is an agreement between two or more
Advantages of Cost Plus Fixed Fee Contract parties that establish each party’s obligations, responsibilities
and rights
• Actual cost is to be borne by the owner
• Work can be taken in hand even before the detailed • Purpose: to ensure that all parties are clear about their
drawings and specifications are finalized roles and what is expected of them
• Changes in design and methods of construction can • Consist of a contract agreement (on non-judicial
easily be carried out without disputes stamp paper of prescribed value), and a set of
• Work can be executed speedily documents with each page signed

Disadvantage of Cost Plus Fixed Fee Contract

• Final cost of the work is not known in advance Parts of a Contract Document
1. Cover Title Page – name of work, owner, contract, contract
agreement number, contents, etc
5. Cost Plus Percentage of Cost Contract – given on certain
percentages over the actual cost of construction instead of 2. Contents Page – contents of the agreement with page
awarding work on lumpsum or item rate basis references

Disadvantage of Cost Plus Percentage of Cost Contract 3. Notice Inviting Tender – name of work, brief description,
estimated cost, date and time of receiving the tender, etc
• Tendency of the contractor to increase the work to
earn profit by way of percentage of enhanced actual • Ensures transparency and fairness of bidding
cost
4. Tender Form – bill of quantities, contractor’s rates, total
cost of work, time for completion, security money, etc

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CE 412 – Construction Methods and Project Management
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5. Schedule of Issue of Materials – list of materials to be 9. Force of Nature and Natural Disasters – contractors
issued by the department or owner to the contractor should obtain insurance for risks that can be covered, can
request compensation for non-insurable losses
6. Drawings – complete set of fully-dimensioned drawings
including plans, elevations, sections, etc 10. Price Escalation – labor wages and material prices may
increase as result of inflation
7. Specifications – clear and precise covering all items of the
bill of quantities 11. Termination of Contract – owner may impose a penalty
of up to 10% of the estimated project cost
• General Specifications – class and type of work
quality of materials, etc in general (as a whole)
• Detailed Specifications – detailed description of
Specifications – are statements that shall describe the:
each item including material and method to be used
• Nature and class of work
8. Conditions of Contract
• Materials to be used
• Rates of each item of work inclusive of materials, • Labor to be employed
labor, transport, etc • Method of work
• Manner of payment of contractor including running • Precautions to be taken
payment final payment, refund of security money, etc • Quality of workmanship
• Time of completion of work
• Proportionate progress to be achieved
• Penalty for poor quality and unsatisfactory work, lack Purpose of Specifications
of proportionate progress and for delay in completion
• Extension of time for completion of work • Guide the bidder at the time of tendering for arriving
• Engaging other agency at contractor’s cost and risk at a fair price for the work involved
• Termination of contract • Provide guidance for execution and supervision of
work and purchase of materials
• Subletting of the work
• State the acceptance criteria for different items
• Changes in design/drawings (as per plan to as per
built plan)
• Arbitration for settlement of disputes
Types of Specifications
1. Contract Specification
Important Conditions of Contracts Connected with
Contractual Problems • General Specifications – aka brief specification,
gives general idea of the class and type of work, brief
1. Time of Completion – contractor is required to complete descriptions of materials, quality and workmanship
the work within the agreed time of completion • Detailed Specification – provide detailed
2. Delay and Time Extension – should be brought to notice descriptions, written in same order in which the work
of the owner by the contractor in writing, for seeking time is carried out
extension 2. Guide Specifications – provide guidelines for preparing
3. Penalty – a fine imposed on the contractor for contract specifications
nonfulfillment of his contractual obligations • Give broad idea about class and type of construction
4. Compensation for Delay in Completion of Work – 28 for a particular purpose
compensations may be stated as percentage of estimated cost 3. Standard Specifications – serve as the guidance of all
of work for each unit of time delay (maximum 10%) concerned with construction or construction industry
5. Liquidated Damages – fixed stipulated sum payable by the • Includes method of manufacture, tests, code of
contractor on account of penalty for delays and does not bear practice, etc
any real damage to owner (generally high and fixed per day)
4. Manufacturer’s Specifications – includes installation
6. Debitable Agency – when a contractor fails to meet instructions and other guidelines for use and maintenance of
contractual obligations, a debitable agency is appointed to the product
complete the work
• Provided in the form of manuals
7. Valuation of Variations – based on change orders issued
in writing by the owner (individual items – max 25%, total
cost – max 10%)
8. Settlement of Disputes – efforts should be made to address
disputes, arbitration clause may be incorporated to settle
disputes not resolved through mutual discussions

Cebeda, Princess Danica A.

CE 412 – Construction Methods and Project Management
CE – 3203
LECTURE 2 – CONSTRUCTION Causes of Project Failure
PROJECT ORGANIZATION • Improper planning of project
• Excessive in project cost
• Sudden increase in materials and labor rates
Organization – in engineering, refers to to a structured • Defective structural design
systems where engineers, project managers, laborers, etc • Lack of technical skills of supervisor or engineer
work cooperatively toward a common goal • Inexperienced contactor
• Organization structure is based on certain parameters: • Poor relations among owner, engineer and labors
determination and groupings of activities, assigning • Lack of planning for maintenance after the
activities to each department, actions defining completion of project
hierarchy, etc

Legal Organization Structure – refers to the official

Structural Elements of an Organization framework that determines how a business or entity is legally
recognized, governed, taxed and operated
• Men
• Materials • Defines ownership, management roles, liability and
regulatory compliance requirements
• Machine
• Methods
• Money
Types of Legal Organization Structure
1. Sole Proprietorship – simplest structure to set up
Major Elements of Organizational Structures:
• Owned by one person, owner and business are legally
• Distribution of functions the same
• Vertical and horizontal authority relationships
2. Partnership – involves two or more people sharing
• Communication and decision processes
ownership
• Policies
• General Partnership – has equal roles
• Limited Partnership – has varying roles and
Importance of Organization in Engineering responsibilities

• Enhances efficiency and productivity 3. Corporation – gives the entity a separate legal entity from
• Ensures quality control and compliance its owners
• Improves collaboration among engineering
• C-corporation – exists as separate legal entity from
disciplines
its owners
• Reduces risks and improves safety measures
• S-corporation – may consist of up to 100
• Helps in budget management and cost control shareholders and functions the same way as
• Supports project scalability and growth partnership
• Enhances decision-making and accountability

Management Organization Structure – refers to the

Success Factors for a Construction Organization framework that defines how roles and responsibilities are
1. Top Management Competence – effective risk distributed within a company
management system, well-defined strategy, strong • Determines how decisions are made, how
professional culture, financial stability, etc communication flows, how employees interact at
2. Experience and Performance – client satisfaction with the different levels of organization
company’s products or services, company’s reputation and
track record, experience in the construction industry
Types of Management Organization Structure
3. Effective Cost Control Measures – organization’s access
to cost control measures, presence of favorable government 1. Hierarchical Structure – most traditional structure, with a
policies clear chain of command (top management to employees)

4. Availability of Resources – availability of qualified 2. Flat Structure – has same power and authority
personnel, access to necessary materials, equipment and labor
3. Matrix Structure – employees report to multiple managers
5. Supply Chain and Leadership – efficient supply chain
4. Functional Structure - few or no levels of middle
management, presence of dynamic leadership
management, with employees having more autonomy

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CE 412 – Construction Methods and Project Management
CE – 3203
6. Divisional Structure – divided into self-sufficient 3. Matrix – employees report to both functional and project
divisions based on product lines, geography and market managers
segments
• Weak Matrix – functional managers have more
7. Team-based Structure – employees work in cross- power than project managers
functional teams rather than following a strict hierarchy • Balance Matrix – power is shared equally
• Strong Matrix – project managers have more power
8. Network Structure – decentralized structure where a
than functional managers
company outsources many functions but coordinates them
centrally Advantages of Matrix Organization

• Improved communication and collaboration

Types of Structure of Construction Organization • Flexibility
• Career growth and development
1. Line or Military – earliest and simplest form
Disadvantages of Matrix Organization
• Based upon military formation
• Downward delegation of authority • Possible confusion in reporting
• More complex than other structures
2. Line and Staff – more complex, with a mix of leadership • Potential risk of conflicts
and expertise working together

• Line Manager – have authority over core activities

and decisions of department Principle of Good Organization
• Staff Specialists – provide support, advice and 1. Objective – focused on setting clear and specific goals
expertise but do not have direct authority
2. Analysis – systematic examination of processes, structures
and performance to enhance efficiency and decision-making
Types of Organization for Project Management 3. Simplicity – idea that systems and processes should be
1. Functional – hierarchical type wherein people are grouped simplified and broken down into smaller task units without
as per their area of specialization sacrificing effectiveness

• Supervised by the functional manager with expertise 4. Functionality – idea that every component of organization
in the same field should serve a clear and practical purpose

Advantages of Functional Organization 5. Departmentalization – process of dividing an organization

into distinct units based on functions and tasks
• Specialized expertise
6. Centralization of Authority and Responsibility – top
• Clear roles and responsibilities
leaders have the most power, senior management makes big
• Efficiency and focused work
decisions while low-level managers have less authority
Disadvantages of Functional Organization
7. Limited Span of Control – refers to a number of
• Poor communication between departments employees a manager oversees
• Limited flexibility
• Slow decision-making
Different Levels in a Construction Project Organization
1. Executive – highest level, responsible for making strategic
2. Projectized – nearly the opposite of functional organization decisions, setting company policies, etc
• Focused on the project itself, authority rests with the 2. Managerial – oversees the planning, execution and closing
project manager of the project
Advantages of Projectized Organization 3. Technical – detailed planning, designing and engineering
aspects of the project
• Clear focus on projects
• Faster decision-making 4. Supervisory – oversees the work of various trade workers
• Clear line of authority and ensures project is progressing
Disadvantages of Projectized Organization 5. Operational – hands-on level where skilled workers,
laborers and equipment operators execute physical tasks
• High costs of equipment and employees
• Risk of overworking employees
• Dependency on project managers

Cebeda, Princess Danica A.

CE 412 – Construction Methods and Project Management
CE – 3203
Roles in Construction Project Organization Desired Results of Planning and Scheduling
1. Owners/Clients – project initiator and defines project • Finish the project on time
scope, objectives and budget • Continuous (uninterrupted) flow of work (no delays)
• Reduced amount of rework (least amount of changes)
2. Construction Project Manager – leads the project team to
ensure a quality project within time, budget and scope • Minimize confusion and misunderstandings
• Increased knowledge of status of project by everyone
3. Architects and Designers – qualified professionals in • Meaningful and timely reports to management
charge of design, planning and supervision of construction • You run the project instead of the project running you
processes • Knowledge of scheduled times of key parts of the
4. Structural Engineer – responsible for any structural project
failure, supervise material selection, structural integrity, etc • Knowledge of distribution of costs of the project
• Accountability of people, defined responsibility or
5. Construction Superintendent – develop a schedule, authority
oversee workers’ performance and manage communications • Clear understanding of who does what, when, and
from office to the field how much
6. General Foreman – in charge of day-to-day operations, • Integration of all work to ensure a quality project for
oversee the entire construction workforce the owner

7. Trade Foreman – experienced workers in specific field,

but organize other workers to ensure they have the right tools Key Principle for Planning and Scheduling
and machinery, coordinate tasks and train employees
• Begin planning before starting work, rather than after
8. Site Clerk – aka field engineer, entry-level position, ideal
starting work
for recent graduates
• Involve people who will actually do the work in the
9. General Contractors – responsible for coordinating planning and scheduling process
subcontractors, managing operations at site, ensure activities • Include all aspects of the project: scope, budget,
are performed correctly by subcontractors schedule, and quality
• Build flexibility into the plan, Include allowance for
10. Subcontractors – specialists in specific trades like changes and time for reviews and approvals
plumbing, HVAC, electrical, concrete, etc
• Remember the schedule is the plan for doing the
11. Quality Control Inspector – ensures work meet the work, and it will never be precisely correct
project’s quality standards • Keep the plan simple, eliminate irrelevant details that
prevent the plan from being readable
12. Safety Officer – focus on maintaining a safe work
• Communicate the plan to all parties; any plan is
environment
worthless unless it is known
13. Surveyors – provide precise measurements and data to
establish property boundaries, elevations, and site conditions
Work Breakdown Structure – graphical display of the
14. Permitting Specialists – ensures all necessary permits are
project that shows division of work in multi-level system
obtained before construction begins
• WBS is the cornerstone of the project work plan
15. Legal Counsel – provide legal advice on contract,
• Defines work to be performed, identifies the needed
disputes and liability issues
expertise establishes a base for project scheduling

Key Characters and Components of WBS

LECTURE 3 – PLANNING AND 1. The 100% Rule – ensures that WBS covers the 100% of
SCHEDULING the project scope at all levels

• Every component or sub-task must be accounted for,

ensuring that no work is omitted
Project Planning – process of identifying all the activities
necessary to successfully complete the project 2. Leveled Structure

• Prerequisite to project scheduling • Level 1 – represents the entire project

• Level 2 – breaks down major deliverables
Project Scheduling – process of determining the sequential
• Level 3 and beyond – further divide tasks into smaller
order of planned activities, assigning realistic durations to
components
each and determining start to finish dates

Cebeda, Princess Danica A.

CE 412 – Construction Methods and Project Management
CE – 3203
Methods for Planning and Scheduling Steps in Planning and Scheduling
1. Gantt Chart or Bar Chart – tool used for planning and 1. Develop a work breakdown structure that identifies
scheduling simple projects work items (activities)
2. Prepare a drawing (network diagram) that shows each
• Project engineer can initially schedule project activity in the order it must be performed to complete
activities, and to monitor progress over time by the project
comparing planned progress to actual progress 3. Determine the time, cost, and resources required to
• Does not show interdependence of activities and does complete each activity
not integrate costs or resources with schedule 4. Compute the schedule to determine start, finish and
2. Critical Path Method (CPM) – provides interrelationships float times
of activities and scheduling of costs and resources 5. Analyze costs and resources for the project
6. Communicate the results of the plan and schedule
• Offers a thorough approach to scheduling, planning,
and managing projects
• NAS or Network Analysis Systems – approach of Program Evaluation and Review Techniques (PERT) – is
describing and organizing work using a graphical applicable for projects where there is a high degree of
diagram that illustrates work tasks and their uncertainty about how long any given activity will take to
interdependencies complete
Two Approaches on Making CPM Diagram:
1. AOA or Activity on Arrow Purpose of PERT Method
2. AON or Activity on Node – most managers refer because • Estimate project timelines
of the precedence method and does not require dummy • Visualize the project flow
activities • Analyze and manage uncertainty
• Identify the critical path
• Improve decision making
Key Terms in CPM Diagram:
1. Duration (D) – estimated time to perform an activity
Types of Activities
2. Early Start (ES) – earliest time activity can be started
1. Series – an activity cannot be performed unless predecessor
3. Early Finish (EF) – earliest time activity can be finished is finished
• EF = ES + D 2. Parallel – activities that can be performed simultaneously
4. Late Finish (LF) – latest time activity can be finished
5. Late Start (LS) – lates time activity can be started without PERT Diagram – an arrow diagram on a network showing
delaying the completion date the interrelationship or interdependencies of the various
activities of a project
• LS = LF – D
6. Total Float (TF) – amount of time an activity can be
delayed without delaying completion date (aka. slack) Time Estimates in PERT
• TF = LF – EF or LS – ES 1. Optimistic Duration (To) – time in which activity will go
exactly as planned
7. Free Float (FF) – amount of time activity can be delayed
without delaying early start time 2. Pessimistic Duration (Tp) – time in which activity will
encounter different problems and will cause delays
• FFi = ESj – Efi
• i – preceding activity, j – following activity 3. Most Likely Duration (Tm) – realistic estimate to
complete all activities
8. Critical Path – series of interconnected activities through
the network diagram with zero free float and total float

• Determines the minimum time to complete the project Formulas in Solving

9. Dummy Activity – indicates that any activity following the 1. Expected Duration (Te)
dummy cannot be started until the activities preceding the
dummy are completed (represented by a dotted line)
10. Predecessor – known as before something
11. Successor – one that follows or after something

Cebeda, Princess Danica A.

CE 412 – Construction Methods and Project Management
CE – 3203
2. Variance for the Expected Duration

3. Variance and Standard Deviation for Entire Path

4. Deviation (z)

Cebeda, Princess Danica A.

CE 412 – Construction Methods and Project Management
CE – 3203