PREFACE

Project Study is a new subject in the College of Engineering as it only started

somewhere in the early seventies. One reason for incorporating the subject is the
present demand for technical men to undertake feasibility studies which is a basic
requirement of Foreign lending institutions before a borrower country could be granted
assistance money for financing projects proposed for construction/improvements.
The inclusion of this subject in the curriculum of engineering schools in the
Philippines is another step forward in the local technology and is a welcome answer to
the need of those charged not only with the design but also in the construction of
engineering structures.
Feasibility Study, which is substantially treated in this book is also a timely
offering for students in line with the present government thrust toward countryside
development through infrastructures for which feasibility study is a basic requirement
particularly in the construction of roads and bridges.
This book was prepared, because the author who is teaching this subject, Project
Study have been handicapped by the lack of references conforming to the requirements
of the course of study, which are not found in the recommended text and references
prescribed for this subject. The materials and data used herein came from other books
and references. Much of the contents of this book were drawn from the books and
pamphlets written by various authors and also from seminars, in-service training,
experience and from my co-professors in the University, this book was made possible.
The primary aim of is book is to prepare students once they stepped out of the
University to practice their chosen profession. This book offers the students practically
all aspects in the field of construction from the beginning up to the completion of the
proposed project, from feasibility study, surveys, plans, designs, estimates, financing,
specifications, advertisements, contract documents, job planning, cost estimates,
including the actual construction phase of the project.
It is accepted that this book is by no means a complete text, as this is an initial
venture by the author. It has still its shortcomings and he welcome comments and
suggestions from the reading public. However, the author believes that with this book
the students will be equipped with the necessary motivation particularly in applying for a
job.
The author is indebted to his colleagues in the University of Nueva Caceres for
useful data and suggestions, to Engineers D.Cadag, G. Agawa, J. Azcarraga and Dean
Maximo O. Panelo Jr. He is especially grateful to Dr. Eliseo A. Palaroan Jr. to these men
and others too, the author, expresses heartfelt thanks and appreciation for their kind
help and assistance in the preparation of this book.

November, 1984

R. A. Senares

PREFACE
---------------------------------------------------------------------------------- III

CONTENTS

Chapter I.
o
o
o
o
o
o
o
o
o
Chapter II.
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o

PROJECT MANAGEMENT

---------------------------------------- 1

Project Study
Project Purposes
Characteristics of Projects
Project Management
Functions of Project Management
Reasons Why Projects Fail
Project Management v.s. Functional Department
Project Planning and Management
Guidelines for a Case Study of a Project Planning and Management Cycle
FEASIBILITY STUDY

------------------------------------------------- 12

The Process of Project Development

Project Feasibility Study
Basic Aspects of Feasibility Study
Market Study
Technical Aspect
Financial Aspect
Economic Study
Net Present Value
Benefit-Cost Ratio
Basic Vehicle Operating Costs
Basic Running Cost
Basic Fixed Costs
Basic Time Costs
Traffic Cost Calculations
Internal Rate of Return
Operational feasibility
Management Aspects
Social Aspect
Environmental Aspect
Choice of the most Feasible Alternative
Traffic Aspect
Traffic Count

o Road Influence Area

o Feasibility Study Outline for a Highway Project
Chapter III. PRELIMINARY PLANNING AND DESIGN
------------------------- 43
o
o
o
o
o
o
o
o
o
o
o
o

Engineering Investigations
Survey procedures
Reconnaissance
Monumenting
Traversing
Horizontal Alignment
Bench mark Levelling
Longitudinal and Cross-Sectional levelling
Plotting Profiles and Cross-Sections
Parcellary Survey
Soils and Materials Investigations
Drainage and Bridge Site Investigations

Chapter IV. FINAL SURVEY, FINAL PLAN AND DESIGN ------------------------- 49

o
o
o
o

Final Survey
Design of Horizontal Alignment
Design of Vertical Alignment
Design of Cross-Section

Chapter V. ESTIMATES, FINANCING, SPECIFICATIONS AND

ADVERTISEMENTS
------------------------------------------------------------- 54
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o

Estimates
Kinds of Estimates
Estimator
Collection of Data
Preliminary Investigations
Subdivisions of Estimating
Estimating Labor
Estimating Materials
Estimating Plant or Equipment
Estimating Overhead
Estimating Profit
Other Costs
Financing
Specifications
Clearing and Grubbing
Roadway and Drainage Excavation
Excavation for Structures

o
o
o
o
o
o
o
o

Borrow
Aggregate Sub-base
Foundation Fill
Portland Cement Concrete Pavement
Concrete
Reinforcing Steel
Reinforced Concrete Culvert Pipe
Advertisements

Chapter VI. CONTRACT, CONTRACT DRAWINGS ---------------------------------- 68

o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o

Contract
Notice to Contractor
Bid or Proposal
Contract Bond
Extra Work
Special Provisions
Bidder
Pre Qualifications of Bidders
Bidding Committee
Employer
Consultants
Bill of Quantities
Calendar Day
Change Order
Engineer
Contractor
Bid Schedule
Pre-Bid Information
Award
Execution of Contract
Bidding and Contract Documents
Submission of Tenders
Opening and Examination of Tenders
Award of Contract
Tender Bond Schedule
Credit Line
Financial Statement
Contract Pro-Formas
Contract Drawings

Chapter VII. JOB PLANNING

------------------------------------------------------------ 93

o Planning the Management of a Job

o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o

Tentative Plan
Site Visit
Planning Plant & Equipment
Planning Labor
Planning Materials
Planning Overhead
Planning Sub-contracts
Time & Work Schedules
PERT
Critical Path Method
Basic Elements of Critical Path Method
Critical Path Scheduling
Developing a Critical Path Schedule
Determining Total Float
Determining Free Float
Time-Grid Diagram

Chapter VIII. ANALYSIS OF CONSTRUCTION PROCEDURES ------------------ 117

o
o
o
o
o
o
o
o
o
o
o
o
o
o

Clearing and Grubbing

Roadway and Drainage Excavation
Solid-Rock Excavation
Common Excavation
Excavation of Unsuitable Materials
Excavation for Structures
Borrow
Aggregate Sub-base
Foundation Fill
Portland Cement Concrete Pavement
Concrete
Box-Culvert
Reinforcing Steel
Reinforced Concrete Culvert Pipe

Chapter IX. SELECTION OF EQUIPMENT

o
o
o
o
o
o
o
o

Investment Cost
Operating cost
Maintenance & Repair Cost
Equipment Selection Factors
Type of Equipment
Productivity of the Equipment
Operation to be Undertaken
Equipment Mobility

-------------------------------------------- 137

o
o
o
o
o

Time Schedules
Balancing of Equipment
Versatility and Adaptability
Spare Parts
Sources of Construction Equipment

Chapter X. CONSTRUCTION PLANT EQUIPMENT ---------------------------------- 148

o
o
o
o
o
o
o
o

Definition
Plant Economics
Equipment Required for a Construction Job
Plant Design
Plant Design for Concrete Highway
Plant Costs
Apportionment of Costs
Estimating Construction Plant

Chater XI. CONSTRUCTION COST ESTIMATING

o
o
o
o
o
o
o
o

---------------------------------- 159

Project Cost Estimates

Bid Schedule of a Concrete Paving Project
Bill of Materials and Detailed Estimates for a Concrete Paving Project
Detailed Estimates
Bill of Materials
Daily Rates of the Manpower Requirements
Daily Rental Rate of Construction Equipment
List of Laboratory Equipment and Apparatus

CHAPTER I

PROJECT MANAGEMENT
INTRODUCTION The management of development projects is becoming one of the
most critical aspects of administration not only in government but also in private
enterprises. The need for trained manpower to plan and implement projects in the
social, economic and technical fields has increased with the present trust of the
government to develop the countryside or the rural areas particularly in the construction
of infrastructure projects most especially in the road construction.
Despite previous experiences in regards to this construction projects, yet, it
seems, there are a lot more to know in line with project implementation, as some of the
output of such undertakings were not of satisfactory quality as evidenced by immediate
repairs conducted on these newly completed projects. We simply do not have or still
lacks adequate institutional capacity on trained manpower to plan and implement
projects effectively. We need to train and develop administrators or project managers in
all aspects of project planning and implementation.
Some important aspects or factors regarding project management will be
discussed in this chapter, but before learning the management of projects, let us first
know what a project is.
PROJECT STUDY In recent years, too much emphasis was given to project study, the
success of this undertaking will largely defend on how effectively a project feasibility
study will be conducted. Project study is now closely associated with feasibility studies.
Before going deeply into feasibility studies which is treated on the next chapter of this
book, let us first define what a project is. Webster defines the word Project as a
specific plan or design; a scheme; an idea; a planned undertaking. A project therefore
is a unique and not a repetitive activity. Good projects like all other good things in life
have to be identified, developed and evaluated. How to find and prepare good sound
projects is the question that confronts planners and developers of which is partly solved
by the inception of project feasibility studies.

Project study is defined as a careful and critical investigation and or examination

of a proposal, scheme, idea or of an specific plan or design for the purpose of attaining
or achieving the desired goals or objectives.
Some of the specific targets or objectives of project study are:
1. To finish the project at the earliest possible time
2. To complete the project at a minimum cost and
3. To run the project on a smooth and orderly manner so as to avoid
unnecessary delays.
PROJECT PURPOSES Every undertaking has its own objectives. Project purposes
listed below are limited to and intended for road constructions only, thus:
1.) Increase agricultural production
2.) Induce or create employment
3.) Increase commercial complementarities and
4.) Promote social development
1. Increase agricultural production Significant land and water development increase
agricultural production. Rural roads are an essential part to provide the incentives
to motivate production investment especially by reducing transportation costs.
2. Induce employment During the project construction period, labor force will be
utilized thereby creating employment particularly on the influenced area where the
proposed project will be constructed.
After the completion of the project, there will again be induced employment for
road maintenance. Farm-to-market roads will also induced secondary employment,
i.e. more drivers, and other support services will be created.
3. Increase commercial complementarities The expanded road systems are
expected to provide increased incentives for entrepreneurs, new stores,
restaurants, cottage industries, suppliers, buyers, bunkers, etc. Requirements for
public and private transportation of goods and services are expected to expand
with more and better roads.
4. Promote social development Improved road accesses will open up new
opportunities for residents especially the more isolated rural communities. Mobility
and interaction is expected to increase between barrios, and between barrios and
the larger towns and cities. The flow of new technology, government support
services and commercial services will increase.
CHARACTERISTICS OF PROJECTS Different types of projects have different
behaviours and characteristics. The following are the characteristics of projects in
consonance with the concept of project management:
1. Projects are non-traditional, innovative processes for development. The
project manager works out independently from the normal chain of command

of the organization. He exercises the power of functional departments or

divisions in his decisions for given targets. He thus negotiates with the
functional departments directly, cutting across staff and line hierarchies
common in the classical organization.
2. Projects are complex efforts. A project produces specific results during a
fixed schedule within an established budget, it cuts across organizational
lines, it is a unique endeavour, not completely repetitious of any previous
effort.
3. A project is the process of creating specific result. A project is the entire
process needed to produce a new product, new system or other defined
results. Both the process and the product that is the result of the process
comprises the project.
4. A project has a life cycle. The life cycle of a project has an identifiable start
and end points which can be related to a time scale. A project passes through
a several distinct phases as it matures. The life cycle includes all phases from
point of inception to final termination and evaluation.
5. Projects need multi-disciplinary skills. A project is a complete operation by
itself where the project manager acts like general manager, pooling various
skills together in a united assault to achieve specific objectives within a
budget and timetable. These skills will vary according to the nature of the
project.
PROJECT MANAGEMENT To realize the desired goals and objectives of a project it
must be well organized with an effective and systematic project management. It
involves a process of attaining the goals/objectives set forth in an activity or investment
at a minimal cost through the effective use of physical and financial resources.
The objectives of project management are:
1. Achieving proper control of the project to ensure the completion on schedule
and within budget.
2. While achieving the desired quality of the resulting product or service.
FUNCTIONS OF PROJECT MANAGEMENT There are five functions of project
management: 1. Planning, 2. Organizing, 3. Staffing, 4. Directing and 5. Control.
1. Planning Involves selecting objectives, strategies, policies and programs
and the procedures of attaining/achieving the objectives or goals,
2. Organizing Involves the establishing of structures as well as schedules of
activities (scheduling tools, such as pert/cpm and Gantt charts).
3. Staffing means hiring the qualified men to handle the job and also calls for
maintaining these men.

4. Directing This aspect has to do with leadership, there are two kinds of a
leader, one is an autocratic leader and the other is a democratic leader.
An AUTOCRATIC leader is one who dictates and the subordinates has no
choice but to follow.
A democratic leader is one who believes in group process, interactions, he
hears the voice of his subordinates.
5. Control Is the regulation/evaluation of your subordinates in regards to the
desired set-up goals or standards.

Wonders of Project Management The seven eternal works of man which are
considered wonders of the world were attributed to an effective project management,
these are the following:
1.
2.
3.
4.
5.
6.
7.

The pyramids of Giza in Egypt

Hanging gardens of Babylon in Iraq
Statue of Zeus in Greece
Temple of Diana in Turkey
Tomb of King Mausolus in Turkey
Statue of Apollo at the Aegean Sea in Rhodes and
Lighthouse in Alexiandria in Egypt

REASONS WHY PROJECT FAIL A project manager should not only be fully equipped
of procedures and guidelines for effective management but he should also be aware of
the possible adverse effects which contributes to project failure, such as:
1. Ineffective planning/preparation
2. Defective project design
3. Vague targets
4. Failure to anticipate obstacles
5. Lack of controls
6. Wrong choice of a project manager
7. Lack of support from top management
8. Funds do not come as promised
9. Inadequate staff support
10. Conflict between project and functional managers
11. Faulty appraisal
12. Inadequate execution and supervision
13. Sheer bad luck
14. Inexperience project engineers
PROJECT MANAGEMENT VS FUNCTIONAL DEPARTMENT Let us describe the
characteristics of a project unit compared to a functional unit, say the BUREAU of
Maintenance of the Ministry of Public Works and Highways.

For Example, MAINTENANCE BUREAU,

MPWH
Has a specific life cycle
1. Continuous life from year to year
Has definite start and completion 2. No specific calendar dates other than
points
fiscal year budget
Can be abruptly terminated if goals 3. Assurance of continued function even
are not met, always terminated when
in major reorganization.
project is completed
Total effort must be completed within 4. Maximum work is performed within the
fixed budget and schedule
budget ceiling
5.
6.
7.
PROJECT UNIT

1.
2
3

4
4
5
6
7