Construction Management

Construction Management

Assignment 5

If the precise nature of a portion of the work is not defined at the time of tendering, the tender documents may include a requirement that the tenderers include in their total prices a certain amount as a provisional sum , as recognition that the successful contractor will be required to perform this work. All tenderers include this same amount, which is the owner's best estimate of its cost, with the understanding that the parties will change the contract amount later if the actual cost is different from the provisional sum. Prime cost sums are similar, but they are confined to materials to be provided by the contractor or a subcontractor but whose exact nature or quantity cannot be defined at the time of tendering.

In respect of any and every Prime Cost or P.C. Sum provided in the Contract, the amount due to any Contractor shall be determined by deducting the said Prime Cost or P.C. Sum and the relevant profit and/or attendance charges from the Contract Sum and substituting for the same with the actual amount due to relevant Nominated Sub-Contractor or Nominated Supplier as valued in accordance with the relevant sub-contract and the sums due to any Contractor by way of profit and/or attendance charges at the rates or prices stipulated in the Contract Documents.

Staff has prepared estimates for trending of Provisional Sum ltems, and has identified that additional funds are needed for the following items.

Assignment 6

Elements to be considered in Estimation of the project

Project Estimation should consider validation of project performance as measured against the plan for purposes of evaluating estimate accuracy and ensuring proper methodology is utilized. Metrics based on comparison of project estimates and corresponding actuals should also be utilized when making decisions regarding estimates of remaining or future work. A sound risk management program should also be implemented and should capture risk occurrence for current and future reference. Estimates should include applicable adjustments relative to risk management policies where necessary.

Proper incorporation of Risk management into the estimating process will reduce project uncertainties and will enable better estimates. Finally, estimation methodologies should provide a basis for developing performance metrics used to determine project health and provide capability to make informed decisions on contingencies.

1. Pre-Letting Engineering: Internal—Mn/DOT

2. Pre-Letting Engineering: External—Consultants

3. Construction Engineering: Internal—Mn/DOT

4. Construction Engineering: External—Consultants

5. Project Construction Cost

Per Scoping Report (e.g., roads, bridges, approaches, and other structures) Contractor Work (e.g., staking, creation of machine control, landscaping and retaining walls)

6. Detours and Haul Roads

7. Pre-Letting Traffic Management: Enforcement and Incident Mgt

8. Construction Traffic Management: Extraordinary Enforcement and Incident Mgt

9. Pre-Letting Communications/Public Information

10. Construction Communications/Public Information

11. Right of Way

12. Utilities

13. Railroads

14. Municipal/Local Issues

15. Turn-Backs: Before

16. Turn-Backs: After

17. Landscaping

18. Environmental Clean-Up/ Mitigation

19. Incentives (moves to Construction Contingency after Letting)

It must be recognized that even the final construction estimate is of limited accuracy and that it bears little resemblance to the advance determination of the production ...