THE PRIME PROFESSIONAL

As requested, I am presenting this paper which reflects my well-meaning reaction to the ongoing
move to make the architectural profession formally recognized as the prime professional in the
construction industry, the only one to exercise and enjoy this privilege to the exclusion of other
professions.

All that I can say is anchored on my 48 years of hands-on professional career development that
was totally focused on the operational and managerial aspects of construction. From 1955 to the
present, I have been a part of and participant in the making of our construction history. Within
this period, I have constructed and managed the construction of diverse types of buildings as
contractor and as Project Manager (PM) or Construction Manager (CM) for Owners and
Contractors. And in my good working relationship with design professionals led by the
Architect, I had a valuable learning experience with them.

In view of the insights I have gained in constructing (contracting) business and in project or
construction management of projects, I honestly believe that no particular profession should have
the exclusive privilege to the title prime professional. Rather, this privilege should be opened to
and enjoyed by any and all professionals who satisfy the qualification requirements for prime
professional as prescribed by the respective national professional concerned subject to the
approval of the Professional Regulation Commission (PRC).

Since the exclusivity of the privilege sought by the architectural profession to the title prime
professional is undemocratic, if not discriminatory, it is my informed judgment that the engineer
has as much a stake to claim on said title as the architect due to the following:

1. As a rule, the architect and the engineer have mutually complemented each other in the
practice of their profession since ancient times. These complementary functions of the
architect and the engineer were evident in vertical structures and site development works
as far as design and construction were concerned. In projects they undertook as partners,
they alternately played the lead-role in design and construction.

As to their completed projects where they worked together or separately, what was
distinctly noticeable is that the architect’s specialized skill was more in architectural
design than construction and the engineer more in engineering design and construction.
They also share the same experience of doing projects from conception to
implementation.
The distinct specialized skill of the architect (architectural design) and the engineer
(engineering design & construction) still obtains today because design and construction
may be likened to the two sides of the coin. For an architect to come up with a good
 design, a basic understanding of construction activities is imperative of his design has to
tie up with construction realities. In the same manner, an engineer will need to have a
working knowledge of architectural design concepts and objectives, if he is to succeed in
having the plan and specifications interpreted correctly and also have the plan translated
into the actual building as intended by the design. Simply put, the architect and the
engineer have historically co-existed as the co-equal prime professionals in vertical and
site development construction.

2. In 1945 when the last Pacific War ended and the reconstruction period began, especially
in Manila, the architect was indeed looked up to as the prime professional. This did not
necessarily mean that he was better qualified than other professionals, but something that
could be attributed to the construction situation then and state or status of professional
practice.

This was the time when high-rise construction did not exceed the five-storey limitation,
and construction methods and technology were conventional. Due to this construction
limitation as well as the few amenities to be installed, the complexity and magnitude of
the work was well within the competence of one professional or a small group of
practitioners. And the architect who had the needed expertise in design and construction
at that time was almost always the one commissioned by owners.

Thus, he did a valid claim to the title prime professional which empowered him to make
construction rules and conditions for the contractor to follow and the parameters to
govern the working relationship with the different design professionals who were
members of his design team to ensure optimal results.

This was the construction scenario from 1945 to the late 1970s. Yet even as prime
professional then, the architect was not expected to render all the design and construction
services that were within the scope of his work. In this regard, the architect was more
busy and visible in the office than in the field.

3. When premium and mega projects emerged during the construction booms of the 1980s
and the 1990s, construction methods and technology became highly sophisticated,
thereby effecting a structural change to the conventional project organization and
implementation as well as to the professional relationship between architects and
engineers.

Unlike before, it is now the owner who hired on individual basis the special designers or
other consultants who must work with the architect. However, some owners who were
cost-conscious and desired to fast track construction hired a PM or CM to implement the
 building construction. Usually, this PM or CM was either an architect or an engineer
whom the owner had full trust in his technical competence and work ethic.

4. Within this period, a radical change in the contracting (constructing) business occurred as
the prime contractor depended upon different subcontractors for the implementation of
his contract with the owner. Where before the practice was for him to have his own work
force to do almost all the work items, the present practice is to source out most of said
work items to subcontractors, most especially the finishing works. In fact, this situation
brought about the need for the owner or contractor to hire a PM or CM to manage the
construction of the project.

5. It should be noted that project or construction management evolved out of the

architectural and engineering works in the 1950s and 1960s. This infant profession came
of age with the 1980s and 1990s boom in land property and real state speculation and
high-rise construction, specially in Makati City. It brought about the specialization in the
varied phases of the project which, in turn, required the selection of the right mix of
professionals and specialists that would make the synergistic Project Team. This was the
period that produced a new crop of seasoned PMs, CMs, architects, engineers,
contractors, suppliers, etc.

As far as project management and construction management are concerned, they are
interchangeable, though, strictly speaking, the former includes design and which may
also be included in the latter if the owner chooses to do so. As far back as the late 1970s,
project or construction management was already incorporated in the training program of
the Development Academy of the Philippines for government executives to upgrade their
management and leadership skills. Today, project or construction management has
become a regular training course in many government training centers as well as part of
engineering curricula in such reputable universities as UP, MIT, UST.

Unfortunately, in the growing up years of this new profession, it did not readily merit the
acceptance of most owners. But as it made a good impression later, individual
professionals or firms were born here and there, and sometimes out of nowhere, to
engage in the practice of project or construction management, not a few of which were of
dubious track record. The worse part of it is that some of the money-driven PMs or CMs
with poor credentials were the ones who often cornered the market.

Considering that most PMs and CMs are members of the National Philippine Institute of
Civil Engineers (PICE), the officers of said organization who were well aware of
unethical practitioners took the initiative to professionalize the engineering profession by
categorizing it into five (5) fields of specialization, one of which is the Construction
Management and Engineering. PICE has established qualification requirements and
standards for entry into the specialists category as shown in attached sheets. This
ongoing program of position-level classification will not only start the professional career
of a newly-licensed civil engineer in the right direction but will also level the playing
field for those ethically practiced their profession.

Going back to the question of who, among professionals in the construction industry, are
really deserving of their claim to the title prime professional, I cast my vote in favour of
the PM or CM due to the following:

1. A project requires multi-disciplinary skills in planning, organizing,

controlling, coordinating, monitoring and evaluating functions that
compromise the major responsibilities of the PM or CM. Likewise, project
construction involves several items of work that are interrelated from one
another such that they must be undertaken according to their sequential order
of priorities. Because of this interrelationship, the successful completion of
the project largely depends upon the cooperative and coordinative efforts of
all the project participants, a job that fittingly belongs to a real PM or CM who
is the prime mover and central figure in the project.

2. What distinguishes the services of a PM or CM from other professional

service providers in the construction industry is not so much the capability to
solve technical problems as the knack to handle people. Or to make workers
want to do things for him, a special knowledge and skill acquired by hands-on
experience over a period of time. This is what leadership is all about – the
leader setting an inspiring example, uttering motivational words, and
charismatically practicing effective human relations. Ultimately, the success
of a project is a success in dealing with people.

3. With respect to construction problems, new methods or approaches are

applied to them from time to time. Seminars are attended, technical books
read and special training taken to make field engineers better problem-solvers.
Despite this training stint, still the same problems keep on recurring and
staying unsolved. Eventually, the bottomline is that nothing is technically
wrong with the problem-solving techniques except for the late realization that
the engineer concerned is not aware of what is the right technique or even if
he knows the right expertise, he does not know how to apply it right. To
know the right expertise and how to apply it right is only gained by actually
experiencing the learning process which takes time before it is internalized by
the learner.
 4. A prime professional is not just a technical expert, a project implementor but,
above all, a manager-leader. And the PM or CM is the one who specially
combines the manager-leader qualities or qualifications and who specifically
masters the science of managing material resources and the art of leading
human resources so that they will give the best they could possibly contribute
to the successful execution of the whole project. Because of this, a noted
project management lecturer had characterized “Project Management as the
most difficult, sophisticated and advanced practice of management” and the
Project Manager as a “technical generalist managing functional specialists.”

Against this background, it is to be noted that the profession of PM or CM, being the product of
formal education and experiential training in actual construction for a given time-period, has a
better claim on the title prime professional. As far as the PICE’s professionalization program for
its members is concerned, an engineer who applies for the position-title Construction
Management Specialist must have to pass the qualification requirements to formally earn and
own said title.

Since this passing of the qualification requirements is a necessary condition for a PM or CM to

become a duly recognized as a prime professional, what is therefore all the fuss over the matter,
this being a right of every engineer-applicant who, after successfully qualifying for the desired
position-title, will accordingly enjoy the privilege attached to it.

PROJECT CONSTRUCTION MANAGEMENT

By: EUSTAQUIO T. CORONEL, JR.

Chairman, Construction Management and Engineering Specialty Division

I. Resources in Project / Construction Management

a.) MAN – refers to the operationally required manpower for the project such as technicians,
craftsmen and engineers whose common task and goal is to finish the project.
b.) MONEY – refers to the cash flow projection, control of cash and accounts
receivables/payables, which make up the funding cycle.

c.) MANAGEMENT – refers to the owner and his representatives who assume the primary
functions of planning and scheduling of the project construction with the aid of such tools
 as the Bar Chart, Gantt Chart, S-Curve, Manpower Requirements and PERT/CPM Chart.
They also provide the leadership, organizational and control systems to evaluate, monitor
and communicate project progress, problems and related matters.

d.) MATERIALS – refers to the material requirements of the project which have to be
purchased and delivered on time for installation, properly inspected to meet specifications
and quality standards.

e.) EQUIPMENT – refers to the needed equipments to be used in the project, status of their
availability, their proper repair and maintenance which includes the institution of
preventive measures to ensure that equipments are in good running condition at all times.

f.) TECHNOLOGY – refers to the latest state-of-the-art technological innovations that can
increase productivity, improve fabrication process/construction methodology and
maximize the use of labor and materials.

II. Five Characteristics To Measure The Success of a Project

A project can be said to have been successfully completed if it bears the following
characteristics:

a. Completion of Schedule (Planning & Schedule)

b. Completion of Pre-Determined Cost or Within the Budget (Control of Cost)
c. Maintenance of Good Relations among the Personnel Associated with the Project
(Quality of Relationship)
d. Completion in Conformity with Contract Conditions and Specifications (Technical
Performance)
e. Maintenance of Complete Documents/Records at Field Office (Documentation In Project
Implementation)

III. Diagnostic Activities To Be Done

a. Planning and Scheduling

1. determine and review how job is to be undertaken by the Project Team headed by the
Project Manager
2. determine the sources needed; bill of materials, equipment, finances and timing
3. plan execution ) engineering
) procurement
) construction
 4. study the drawings and master the contract conditions and specifications
5. specify performance indicators
6. list of critical items to purchase and approval of sourcing
7. master schedule with milestones
8. detailed schedule by discipline ) concreting
) electrical
) mechanical
) plumbing
9. reporting systems ) reports to top management
) reports of foreman to project managers
) frequency of reports

b. Control of Cost

1. Bar Chart, Gantt Chart, combination of Gantt and CPM Charts

2. Review of project budget, costs of different items to render up-to-date
3. Cost control plan; procedures to be approved
4. Change order procedures
5. Cost performance indicators identified
6. Project control budget established
7. Monitoring of costs and productivity
8. Variance analysis
9. Cash flow projections and funding needed
10. Quality assurance ) engineering
) procurement of materials & equipment
) work
) personnel
11. Personnel evaluation
12. Adherence to procedures

c. Quality of Relationships

1. problem areas to identify and solutions proposed

2. timely visible response to owner’s requirements
3. management commitment to the project
4. feedback from client management

d. Technical Conformance

In construction implementation of the project, it is absolutely necessary for management

to master the conditions of the contract and understand the technical and legal
specifications. These documents should be considered the bible of the project.
 By management in the project, I refer to all levels of supervision from the Foreman to the
Project Manager. Of course, the extent of the need for knowledge of the documents
depends on the level of management. The foreman for instance, should know the portion
of the items of work assigned to him. On the other hand, the Project Manager should
know the requirements of the entire project.

For instance, the following provisions are normally provided in the regular contract
conditions and specifications:

1. Change clauses generally require a written order and the claim should be submitted
within 30 days.

2. Changed condition clauses generally require a notice before conditions are disturbed.
For instance, if adobe is found instead of soil in excavating the footings for the
foundation, the attention of the owner’s representatives should be called. Change
orders will require not only an increase in costs but also a time extension.

3. Time extension clauses normally require a notice in writing ten (10) days from the
start of the delay.

4. Generally, a penalty clause is provided in the contract of 1/10 of 1% of the contract

amount but not exceed 5% of the contract price. There are however some contracts
that provide for larger liquidated damages.

Based on past cases on liquidated damages, penalties are generally not upheld unless:

1. The amount fixed is a reasonable forecast of just compensation for harm that is
caused by breach;

2. The harm caused by delays can be estimated;

3. Liquidated damages have been found to be invalid where no damage could be

anticipated. An example is a delay in the completion of the installation of water lines
where the source of water is not available, the rationale being that the delay will not
cause any damage since the pipelines cannot be used even if they are completed due
to non-availability of water; and

4. The provision for liquidated damages is proportionate to the possible loss.

e. Documentation in Project Implementation

In addition to the full understanding of the contract conditions and specifications, it is

necessary for project management to maintain a complete record and documentation of
activities during the project implementation. This is especially true in resolving issues on
change orders, time extensions, change of specifications, preparation of detailed
drawings, redesign of structural members, changed conditions and change clauses.

To support construction claims, one has to have a proper system of documentation for the
management of the projects. This is necessary to support extra requests for extra
compensation. To collect extra charges, all claims must be supported and documentation
is the key.

It is important to keep pre-bid and pre-proposal materials such as invitation notices,

minutes of the meetings, daily notes, photographs and reports on site visits, proposed
schedules, queries, replies and all other correspondences associated with the projects.
We have found it very useful to require the Foreman up to the Project Manager to
accomplish in a logbook all significant happenings during the day.

Contract signing is a very significant event but it is essential to have someone in the
organization examine and review very carefully the documents and drawings and to make
sure that these documents represent the bid or proposal submitted. It is important that
after contract signing, a complete set of documents be kept beyond the reach of project
personnel. A copy of subsequent change orders and revised drawings should also be filed
with these documents.

All correspondences of the owner, owner’s representatives, architects, sub-contractors,

etc. should be filed in their respective subject files.

Among the examples of documents to be kept in a project site are the following:

1. Notice to Proceed
2. Schedules
3. Notes and Minutes of Job Meetings
4. Conferences
5. Notes and Confirmation or oral Instructions
6. Additional or Supplementary Drawings
7. Field Orders
8. Revised Drawings
9. Submitted Logs
10. Drawing Logs
11. Change Estimates and Calculations
12. Change Orders
13. Extra Work Costs
14. Field Survey Books and Calculations
15. Cost Records
16. Job Diaries
17. Photographs
18. Inspection Reports
19. Approvals of Works in Place
20. Material Certificates

It is important to confirm orders, decisions, agreements and instruction especially if these

are verbal. The minutes of the meetings should be read carefully and notations should be
made of any disagreement. All correspondences that need to be answered should be
replied to.

Among Filipinos, we are quite informal in our dealings with the owner and/or the
owner’s representatives. In general, we are entitled to charge any costs that we incur as a
consequence of someone else’s inaction or mistake. We are entitled to charge for
deviations from original expected conditions and changes in drawings and specifications.
Normally, if the changes are not major, the contractor does not bother to ask for change
orders and he proceeds to perform additional work without corresponding charges.
Generally too, for approved change orders where the additional work may be substantial,
the contractor concerned with additional costs and sometimes overlooks the need for time
extension for the completion of the project. In the developed countries, the change orders
and change clauses are automatically subject to additional charges and time extension
provided proper documentation is presented. One serious problem among Filipino
contractors is their apparent lack of concern for the importance of documentation and in
dealing with change orders and change clauses in an informal manner. As a result, when
the time comes for negotiations, talks are hampered by lack of documentation.
Negotiations become a protracted affair and difficulties ensue.

The following are justifiable reasons for a contractor to charge additional costs:

1. Inconsistencies, Errors or Omissions in the Contract Documents, Lack of Action on

the Part of Other Parties to the Contract
2. Unavailability of Access and Right of Way
3. Different Site Conditions
4. Work Suspension
5. Additional Work
6. Changes in Plans
7. Delays of Works of Others
8. Acceleration of Work by Others and Approval of Owner
9. Delays in Schedules by Others
10. Changes in Work Sequence

The following are items of work for which the contractor is entitled to charge additional
cost:

1. Additional Labor/Materials
2. Escalation Charges for Labor/Materials
3. Additional Supervision
4. Additional use of Equipment
5. Cost of Additional Financing
 Claims for additional compensation should be promptly presented to the owner and/or the
owner’s representative. This presentation should be detailed and fully documented.
Based on experience, when the claims are promptly made and properly documented, the
contractor stands a good chance of getting them approved. Claims after a long lapse of
time and devoid of detailed documentation stand a poor chance of approval. On
occasions when the contractor knows he will have to file claims but cannot fix additional
amount, it is advisable to draw the attention of the owner that additional costs will be
incurred which will accrue to the owner.

We have given you the general features of the project/construction management that we
consider right because it has never failed us in the many types and sizes of projects we
have successfully completed for the past 42 years. We also found out that the right
project/construction management will prove ineffectual in the field, if not done right.
And the right project/construction management cannot be done right without project
planning and project monitoring.

Since construction realities are unique and peculiar, attended by risk factors, the
successful completion of a project largely depends upon the proven ability of the
Project/Construction Manager to identify these risk factors. Once they are identified, he
must provide the guidelines that will ensure that the contractor can meet his work
schedule from day to day. Usually, these risks which cause budget overruns and work
slippages result from bad planning and poor monitoring of construction activities.

Due to the high premium we put on project planning and project monitoring, we thought
it best to include them in this talk for your reference and guidance. They play a pivotal
role in the success of project implementation by constantly keeping track of any deviation
from the overall projected construction operations which tell what direction the project is
going at any point in time and what necessary corrections to it will be affected.

A. PROJECT PLANNING

Among the major industries, construction is recognized as most unique and peculiar due to its
highly volatile and unpredictable nature. Because of this, effective management starts with the
planning of the project which necessitates an integrated and coordinated effort of all project
participants. Hence, it becomes operationally necessary to plan what are the things to do and
what best way they can be done to fully comply with the contract.

Project planning is a means by which all the various activities involved in project
implementation are properly synchronized so that the available resources are wisely allocated
and fully utilized for optimum production and productivity.

Since the construction of a project covers a wide range of constant and variable factors,
planning should be given priority consideration to the following inputs:
1. Materials, whether local or imported, which require long lead-time to procure due to
scarcity in the market, fabrication period, etc.

2. Manpower build-up that shall be coordinated with other project participants whose
manpower requirements must be determined for definition of jurisdictional responsibilities.

3. Equipment usage, whether special equipments are needed, including the load limits of
roads, height clearance of bridges and overpass going to and from the site.

4. Site Condition

a. information regarding interruptions in utility services such as brownouts for electricity,

notices on water interruptions, particularly the days and time of the day, duration, etc.

b. information on where to locate temporary utility lines, whether to locate them outside
of the site; whether there is a need to put temporary roads for detour purposes of the
public.

c. knowledge of where to get temporary utility service and who will provide it for
construction or site use.

d. location of work and storage areas for the prime contractor and other trades.

e. coordination with the local traffic office regarding regulations or restrictions governing
the use of the public streets for equipment movement or construction activities.

f. determination of site accessibility, specially if there is a need to provide residential and

commercial areas temporary road/bridges for their use during construction.

5. Pertinent Laws / Regulations

a. permits and clearances which are not uniform in all localities, specially some required
documents for submission before approval of desired permit / clearance.

b. special regulations from government agencies or private associations such as height

limitation imposed by the Air Transportation Office and safety requirements of local
government units as well as the existing rules of subdivision / village associations
which may require a change in the contract time or construction schedule.

c. ecological laws or executive orders that set a control or constraint on construction such
as environmental clearance certificate, locational clearance, zonal classification,
sewage treatment plant, etc.
The planning for construction is strictly an activity-centered process which defines the
activities that compromise the project and specifies the sequential order for doing each
activity. The step next to it is the setting of the timeframe for the completion of each activity
and the whole construction period for that matter. This is called project or time scheduling
which develops the network diagram from which overall construction operations is projected.

At present, the most commonly used scheduling methods are the following:

1. Bar Chart

The Bar Chart has been derived from the Gantt Chart which is a graphic record of the
project’s progress. It gives detail of work along with the time schedule of the actual
beginning and completion dates for each activity. Thus, it shows the day-to-day status of
every activity, the comparison between the actual accomplishment and the corresponding
work schedule including the rate of progress to date.

When the bar chart is related and collated with cost and resources estimate, some of the
other planning and control tools to be obtained from it are the individual schedules and
distributions for manpower materials, equipment and cash flow.

The bar chart has the distinct character of being easily understood by non-technical or lay
people. However, its very simplicity becomes its weakness as a control tool because it
lacks the detailed breakdown of the different activities, particularly their proper sequencing
and operational dependencies. The built-in weakness makes it difficult for a bar chart to
be a fully effective updating instrument.

2. S-Curve Schedule

An S-Curve schedule is another common tool of project management that is used for cost
control and progress reporting. It ties up accomplishment and time, establishing the rate of
accomplishment at a given period, and showing the volume of work at one place and time
and at the other.

The S-Curve represents the actual accomplishment as against the schedules work, visually
identified with a sloping line originating from the bottom left zero percent (0%)
accomplishment going up to the upper right 100% accomplishment.

Looking at the S-Curveline, the reader can readily see the project status at a given time,
whether it is ahead of or behind schedule. An updated S-Curve will immediately present
the positive and negative variance of accomplishment and as such the timely remedial
measures can be applied. This is, in fact, what makes the S-Curve such a widely used
management reporting tool.

To overcome the shared weakness of the Bar-Chart and the S-Curve due to their failure to
reflect their interdependencies of activities in their sequential order, the network
 techniques (PERT / CPM) were devised to improved the planning, scheduling and
controlling requirements of projects, specially the megasize projects of today.

3. PERT / CPM Techniques

Both Program Evaluation and Review Technique (PERT) and Critical Path Method (CPM)
had almost simultaneously evolved in the late 1950s though independently formulated
from each other. Similarities in both techniques are found in the detailed breakdown of
activities represented by a network diagram indicating the sequential order or relationships
to one another; in the use of arrows to represent activities of the network lines and events
of the network nodes that represent the points in time at which activities may be started or
due for completion; in the estimate of time duration and schedule for each activity.

In the completion of the time estimate for every activity, critical activities that must meet
the schedule are predetermined to ensure completion of said activities and those dependent
upon them. Likewise, the same goes for activities with extra time (slack time for PERT &
float time for CPM) to undertake them.

One basic difference between PERT and CPM is the multi-time estimate used by the
former and the single-time estimate by the latter. In the intervening years, this difference
has disappeared after undergoing much transformations and blending of the two until they
have become like two sides of the same coin. For this reason, the common advantages that
CPM has placed in the hands of project/construction managers are the following:

a. provides a means to predict with reasonable accuracy the time required for overall
project completion.

b. makes possible the identification of those activities whose expedient execution is

crucial to timely project completion.

c. serves as a guide for project shortening when completion date must be advanced.

d. provides a basis for the scheduling of subcontractors and material deliveries to the
jobsite.

e. serves as a basis for balanced scheduling of manpower and construction equipment on

the project.

f. makes possible the rapid evaluation of alternative construction methods.

g. serves as a convenient vehicle for progress reporting and recording.

h. affords a basis for evaluating the time effects of construction changes and delays.

B. PROJECT MONITORING
After the project is properly planned and its constructions gets underway, its successful
completion will largely depend on how closely and religiously the ongoing activities are
monitored. This is the decisive role the PM plays in the monitoring of the project during
its entire life.

Project monitoring is a system that coordinates and integrates the different but
interdependent work of the project participants involved in the operations. The PM
assumes the responsibility of seeing to it that said participants have really conformed with
their respective contract requirements as to time, cost and quality.

The key elements that make the monitoring of the PM an effective control system are the
following:

1. Using the scheduling methods (i.e., bar chart, S-curve & PERT / CPM) previously
cited to ensure timely orders and deliveries of materials and equipment to the jobsite,
proper placement of manpower during the duration of construction. With the aid of
these methods, one can readily know the status of a project at a given time, whether it
is on schedule, behind or ahead it.

2. Estimating project cost on a continuing basis to know from time to time how actual
cost compares with the budget cost, particularly the specific items that have positive or
negative variances. Once the completed works is far beyond 50% of the project, the
cost to complete the remaining works is computed to determine whether it is within the
budget or not.

3. Conducting an ocular inspection of completed and ongoing works, identifying non-

conforming works, requiring the punchlisting of defective works and undertaking their
rectification. This inspection work may be done on regular or on as needed-basis
depending upon the nature and extent of project progress or slippage.

4. Holding regular coordination meeting at the jobsite which serves as the forum and
clearing house of construction issues or problems brought up by the project participants
concerned regarding their respective works. Said issues or problems are either
resolved with finality or referred to the right parties for necessary decision or action.
In these meetings, the status or progress of the ongoing work is disclosed, new
commitments are made as old ones are fulfilled. All of these are duly recorded in the
minutes to which the project participants present affixed their signatures.

5. Installing a purchasing and an accounting system at the owner’s Central Office that is
flexible enough to meet the unique and peculiar realities of construction which is
plagued by uncertainties and risks. Governed and guided by the principle that time is
of the essence, the processing, approval and release of papers should not be attended
and caught by the web of proverbial red tape and decision-making or action-taking by
the officers or their duly authorized representatives should be immediate and decisive.
A no-nonsense monitoring of the project requires teamwork between the Central Office
represented by its Purchasing and Accounting Sections and the Field Office
represented by the PM and his staff. Both offices are individually and collectively
tasked to carry out the following monitoring responsibility:

a) Purchasing Section: As the project is directly dependent upon the needed

materials, their availability on the site, the Purchasing Officer must coordinate with
the PM regarding the following:

 The Bill of Materials, specially the quantities to be purchased.

 Quality of materials and specifications.

 The schedule of deliveries for needed materials including the difficulties of

procuring them due to unavoidable circumstances.

 The need to prioritize material requirements to have enough lead time to

procure them.

 Any requisition for materials, equipment and supplies from the Field Office
must have to be ordered by the Purchasing offices according to the delivery
schedule. He must not be satisfied with mere follow-ups after placing the
orders but must have to make sure that the ordered materials, equipment, and
supplies had been actually delivered to the site on schedule.

 The Purchasing Officer’s responsibility in material procurement does not end at

the issuance of the PO and follow-ups. His job is done only after ordered
materials, equipment, and supplies had been received and stored at the site. If
existing rule on procurement will cause a delay on the ongoing work because of
multi-tiered level of approvals to pass through, they must be bent a little, if
necessary, to expedite the timely deliveries of needed materials, etc.

 The first and foremost consideration in procurement is to get the ordered

materials, etc., where and when they are needed. Any delay in the processing
of paperworks will adversely affect the ongoing work.

b) Accounting Section: Like the Purchasing Section, the Accounting Section

should not be tied to rigid observance of rules and procedures which cause delay in
the payment of financial obligations to contractors, subcontractors, suppliers,
workers, etc., due to the following:

 Progress billings or payrolls submitted to Accounting Section for payment often

sleep or are not attended to promptly because the Accounting Officer is
unfamiliar with the provisions of the contract or does not know what to do if
 the matter before him is not covered by the existing policies, rules and
procedures, whether written or unwritten.

 In dealing with the Field Office, the Accounting Officer must give special
consideration to the collection problem of contractors, subcontractors and
suppliers in particular that is hampering the flow of work at the site. Top
management must provide him with the necessary latitude of authority and
decision-making power so that he can expeditiously act on billings or claims for
payment in connection with the project. As such, he does not have to forward
papers to or wait for action from higher management. In fact, the Accounting
Officer must know who can represent him in his absence so that the daily
business can normally proceed without any disruption or unnecessary delay in
the flow of paperworks.

 In the preparation of checks for payment of due accounts, it is again necessary

to be definite as to who are qualified to sign checks or what maximum amounts
the Accounting Officer or any other officer is authorized to sign checks or
documents for and in behalf of the company. By this arrangement, payments or
billings and other due accounts are promptly paid which contributes a lot to the
on-schedule completion of the project.

 The proper aging of payables based on the credit terms of the suppliers, existing
contracts, etc., should be done regularly to enable the Accounting Section to
determine which payables are about to fall due, have become overdue including
the period they have been overdue. The Accounting Officer must therefore see
to it that the aging table is always updated to keep it up-to-date on the needed
information.

 Regarding the warehouse, the warehouseman is the custodian of the materials

he receives, stores and issues and of the documents supporting the movement of
said materials. He is administratively under the Accounting Section but
operationally under the Field Office. As such, the Accounting Section does the
monitoring of the warehouse transactions through its auditing and inspection
functions.

 A periodic analysis of these documents and a monthly inventory of warehouse

stocks is part of the auditing and inspection work of the Accounting Section to
monitor the incoming and outgoing materials, used and available stocks, etc.,
which protects the best interest of the project.

As the completion of the project is the direct responsibility of the PM, he can only succeed
in achieving it if he has the full support and cooperation of Head Office, (Purchasing &
Accounting Sections). He can only do his job as much as the Purchasing Officer and
Accounting Officer have done theirs accordingly.
Project monitoring by Head Office and Field Office is reflected in the various
communications in terms of regular reports, minutes of site coordination meetings,
emergency meetings to attend to critical problems requiring immediate action / decision.
Top management relies so much on these reports / recorded minutes of site meetings, etc.,
to make the necessary decision or to take immediate actions that will determinate the
ultimate fate of the project.

Project monitoring can only be as good as the quality and accuracy of the date /
information that go into the planning and scheduling of construction. Thus, project
management has the responsibility of undeviatingly maintaining this standard of quality
and accuracy so that decisions or actions to based on them shall provide that best interest
of the project.

To ensure that the monitoring of the project is working as intended, it is advisable to

designate an Overall Project Coordination (OPC) who will assume overall monitoring
responsibility over the performance of Central Office and Field Office personnel
concerned.

In case the Purchasing Officer, the Accounting Officer and the PM could not put their act
together which hinders the flow of construction work and paperworks, the OPC should call
a meeting for the purpose of finding a solution to their problem which should be resolved
by giving primacy to what is best for the project.

The OPC must not only act upon the appearance of a problem in cooperation and
coordination but must always take the initiative of improving the existing monitoring
system in place so that problems will not arise unexpectedly or they can be prevented
before they arise. He is accountable to top management for making project monitoring
effectively contribute to the successful completion of the project in terms of schedule, cost
and quality.

With all these things I took up with you this afternoon, I do hope that, in some way, the
time you spent in listening to me has been worthwhile in terms of your having gained some
knowledge and certain insights that may be useful to your professional career and business
endeavours.

Prepared by:

ETCOR Construction Consultancy Corporation