In a construction project, the client initiates and finances the project, acting as the employer or

buyer of services from consulting and contracting firms. Consultants, or designers, translate the
client's needs into a structural design. Contracting firms then transform these designs and
specifications into the actual structure.

Specifications and Drawings

A specification provides written instructions, detailing and describing the specific work to be
executed for a particular trade. In essence, it's a statement of how to perform a task.

The key differences between specifications and drawings are:

Drawings generally show:

 Dimensions, extents, size, shape, and location of component parts.

 Location of materials, machinery, and fixtures.
 Interaction of furniture, equipment, and space.
 Schedules of finishes, windows, and doors.

Specifications generally describe:

 Type and quality of materials, equipment, labor, or workmanship.

 Methods of fabrication, installation, and erection.
 Standards, codes, and costs.
 Allowance submittals and substitutions.
 Costs included, insurance, and bonds.
 Project records and site facilities.

Types of Specifications

Specifications are broadly categorized into four types:

1. Manufacturer's Specification: Prepared by manufacturers for user guidance, including

product property descriptions and installation guidelines.
2. Guide Specification: Developed by individuals or groups based on manufacturer's
specifications, established workmanship trends, service and laboratory tests, and research
findings, serving as guidelines for contract specification preparation.
3. Standard Specification: Intended for use as a reference standard in construction
projects, these are guide specifications standardized by recognized authorities.
4. Contract (Project) Specification: Prepared specifically for a particular project to
accompany drawings and other contract documents.

Other types of specifications include:

 Proprietary Specifications: Call for materials, products, systems, and equipment by

their trade names and model numbers.
  Performance Specifications: Define products based on desired, performance-oriented
end results.
 Reference Specifications: Refer to quality levels established by recognized testing
authorities or standards set by quality control authorities.
 Descriptive Specifications: Detail all components of products, their arrangements,
assembly methods, physical and chemical properties, arrangement relationships of parts,
and numerous other specifics.
 Cash Allowance Specifications: Direct bidders to set aside a specified amount of money
for construction work as directed by the specifier.

Specification Writing

Specifications are not created from scratch but are prepared based on existing standards, codes,
guidelines, and laws. Effective specification writing requires:

 Visualization: Having a clear picture of the system.

 Research: To understand the correct legal implications.
 Clear Thinking: Comprehending things directly without misinterpretation.
 Organizing: Structuring known information to write the specification.

Quantity Surveying

Quantity surveying involves measuring civil works, preparing specifications, and estimating
project costs, either for individual trades or the entire project. This process includes:

 Taking Off: Measuring or scaling dimensions from drawings and recording them in an
easily understandable format.
 Squaring: Multiplying, adding, subtracting, or dividing recorded dimensions to obtain
linear measures, areas, or volumes.
 Abstracting: Transferring squared dimensions to abstract sheets and consolidating
similar dimensions to determine the total quantity of each item.

Types of Taking Off Methods

 Mensuration: The calculation of geometric quantities (length, area, volume) from known
dimensions and angles.
 Girth (perimeter) Computation: Linear measurement, with various methods for
calculation.
o In-to-in and Out-to-out Method: Some wall lengths are measured out-to-out,
others in-to-in (offsets are added to out-to-out lengths and deducted from in-to-in
lengths). This method is used regardless of symmetry.
 Long Wall (Out-to-Out) = Inner Length + 2 Times Thickness of the Wall
 Short Wall (In-to-In) = Inner Length - 2 Times Thickness of the Wall
o Centre Line Method: Suitable only when all wall cross-sections are
symmetrical. The center line length is found and used for quantity taking off (only
width and depth vary). All dimensions are taken center to center.
 o Crossing Method: Lengths and breadths of walls as shown in the plan are used.
This method is useful only if footing offsets are symmetrical.
 Long Wall (Out-to-Out) = Inner Length + 2 Times Thickness of the Wall
 Short Wall (In-to-In) = Inner Length

Excavation Types

 Bulk Excavation: Excavation to achieve reduced levels for every structural element
below ground level.
 Pit Excavation: For isolated footings.
 Trench Excavation: For foundation walls.

Disposal and Cart Away

 Disposal: Covers cleaning the building area, including cart away.

 Cart Away: Total excavated volume minus backfill volume.

Concrete for Substructure

 Cast-in-situ Concrete: Formed on-site, requiring formwork and reinforcement.

Measured by volume, except in ribbed slabs and grouting.
 Prefabricated Concrete: Manufactured in a factory, brought to the site, and joined to
form a building. It doesn't require formwork but needs special care during connection.
 Pre-tensioned (Post-tensioned) Concrete: Involves pre-stressing the concrete to prepare
it for downward bending due to load.
 Concrete Ancillaries: Include windowsills, lintels, expansion joints, and permanent and
temporary embedded materials. Measured in linear meters (ml) or enumerated.

Masonry Works

Masonry works involve laying building material units of specified dimensions using a binding
material like mortar.

Project Cost Estimation

Project cost estimation is the process of assigning a monetary value to all necessary costs for
the planning, implementation, and monitoring stages of a proposed project.

 Preliminary/Approximate Costing: Required to assess the client's financial position

before costly detailed designs are undertaken.
 Detailed Cost Estimate (based on item rate): The most reliable and accurate estimate,
where quantities are carefully prepared from drawings, and the total cost is calculated
using up-to-date market rates. It includes:
o Direct costs: Materials, labor, and equipment.
o Indirect costs: Head office and site overhead costs.
Basic Cost Components of a Construction Project

The cost of any construction project fundamentally comprises:

A. Direct Construction Cost: All costs directly attributable to a specific project activity. These
primarily include:

 Direct Material Costs: Cost of materials, consumables, and components used for an
activity, including allowances for scrap and wastage.
 Direct Labor Costs: Costs related to workers on a specific activity (e.g., carpenters,
masons, painters).
 Direct Equipment Costs: Costs of machinery and plants used in executing a specific
activity.
 Subcontract Costs: If activities are subcontracted, the subcontractor's price is considered
a direct cost.

B. Indirect Construction Cost: Costs not directly booked under a specific activity but necessary
to keep the entire project operational.

 Head Office Overhead Costs: Costs to run the construction company's overall
operations, typically managing multiple projects.
 Site Overhead Costs: Costs to run a specific construction project at the site level.

C. Risk Allowance: Contractors often include risk allowances in tender prices to offset potential
negative impacts from contractual, technical, political, and economic risks.

D. Profit and Income Tax: Contractors undertake projects to generate profit from their capital
investment.

Rate analysis is the process of determining the cost per unit of measurement for different work
items.

Valuation

Valuation is the art of estimating the fair monetary desirability of owning a specific property for
a specific purpose.

Various Definitions of Value

 Market Value: Value established in a public market through exchanges between willing
sellers and buyers.
 Replacement Value: Cost to replace a property or its service with an equally satisfactory
and comparable property/service at current price levels.
 Real Value or Value to the Owner: The intrinsic value to owners as a long-term
investment, rather than immediate realization.
  Liquidated Value: An estimate of the sum a shareholder would receive if a company
were voluntarily wound up.
 Speculation Value: The future secret prospects of a property, if visualized.
 Forced Sale Value: The value of a property when the owner is compelled to sell due to
urgent necessity.
 Reversionary Value: The value of an asset to the owner after the lease period expires.
 Book Value: The value of an asset as shown in accounting records, derived by deducting
total depreciation from its purchase value.
 Depreciated Value: Theoretically equal to book value for accounting purposes, but used
to determine efficient economic value.
 Face Value: The price paid to purchase an asset.
 Insurance Value: The net replacement cost, considering the depreciated condition of the
asset.
 Potential Value: The value an asset could fetch if sold in the open market at a later date
due to its potential.
 Assessed Value: Value of machinery realized on sale when its useful life is over, but it's
not completely useless.
 Scrap or Junk Value: Value of any asset, particularly a machine, when it becomes
absolutely useless except for sale as junk.
 Earning Value: The present value of a property that will yield future income.
 Distress Value: When a property is sold at a lower price than its open market value.

Depreciation and Obsolescence

 Depreciation: Wear and tear that occurs when a machine, equipment, or building
performs useful work.
 Obsolescence: Depreciation of existing machinery or assets due to newer and better
inventions, equipment designs, or processes.

Area Measurements

 Gross External Area (GEA): The area of a building measured externally at each floor
level.
 Gross Internal Area (GIA): The area of a building measured to the internal face of the
perimeter walls at each floor level.
 Net Internal Area (NIA): The usable area within a building measured to the internal
face of the perimeter walls at each floor level.

Cost Approach Methods

There are three main cost approach methods for valuation:

 Replacement Cost Method: Indicates value by calculating the cost of a similar asset
offering equivalent utility.
 Reproduction Cost Method: Indicates value by calculating the cost to recreate an exact
replica of an asset.
  Summation Method: Calculates the value of an asset by adding the separate values of its
component parts.

Methods for Estimating New Replacement/Reproduction Cost

 Detailed Method (Quantity Survey Method): A detailed estimate of all resources for
each building component, considering direct and indirect costs.
 Unit-in-Place Method (Segregated Cost Method): Determines the cost of installed
materials (e.g., foundation, superstructure) and sums them up.
 Comparative Unit (Area/Volume) Method: Compares the subject property's value with
similar properties whose costs have been broken down to Cost/m$^2$.
 Trending Method: Estimates the new reproduction cost (not replacement cost) by
applying an index or trend factor to the property's historical cost to convert it to current
cost.

Procurement Process

Physical infrastructures are costly, and competitive procurement ensures appropriate savings. An
effective procurement method adheres to the "Five Rights":

 The Right Quality: Avoiding wasteful expenditure on unqualified services, goods, or

works.
 The Right Quantity: Carefully computing and correctly including the quantity in the
Bill of Quantities (BOQ).
 The Right Cost/Price: Ensuring the cost aligns with the expected quality of work.
 The Right Counterparts: Guaranteeing that the parties involved are competent for the
job.
 The Right Time: Establishing and agreeing upon the appropriate time for resource
provision and obligation fulfillment.

Competitive Tendering

The goal of competitive bidding is to acquire goods, works, or services at the most economic
cost for the project owner.

 Open Tendering: All eligible bidders are allowed; consumes time for tendering and bid
evaluation.
 Limited Tendering: Only bidders meeting specific qualification criteria are allowed;
applicable for urgent or unique projects.
 Negotiated Tendering: In rare circumstances, eligible firms can be directly appointed by
project owners.

Procurement Steps

 Single-Staged: Bidders submit a single proposal, which is then evaluated.

  Two-Staged: Bidders submit separate proposals, typically financial first, then technical,
with separate evaluations.

Pre- and Post-Qualification Tendering

 Pre-qualification: An internationally accepted practice, typically required for large and

complex civil works contracts. Eligible bidders provide evidence of their ability to
perform the required services before tendering.
 Post-qualification: Financial evaluation is conducted first, ranking bidders based on
their tender price. Technical evaluation occurs after the financial evaluation.

Contract Planning

Construction projects are initiated based on business or development demands. Contract

planning involves deciding on proposed delivery systems, procurement methods, and contract
types, along with provisions for alterations.

Procurement management is the process of selecting individuals or organizations to perform

intended services and/or works, based on provisions made during the contract planning phase. It
includes preparation, tendering, and evaluation (including award recommendation).

Contract management is the process of reaching a contractual agreement for implementation,

administering it, and finally concluding the contract. Like procurement management, it's based
on decisions made during the contract planning phase.

Procurement and Contract Delivery Systems

 Force Account: Project owners undertake the project themselves, often when they
believe it offers a comparative advantage in cost, time, and quality.
 Design-Bid-Build (DBB): The most common delivery system in Ethiopia. After basic
planning, project owners engage design and/or supervision consultants through tender or
negotiated contracts.
 Design-Build (DB) / Turnkey: Addresses problems associated with Force Account and
DBB, promoting privatization and reducing fragmentation, adversarial relations, and
owner risk.
 Finance/Build-Operate-Transfer (BOT): A Public-Private Partnership (PPP) where a
private company finances, designs, constructs, operates for a period (e.g., 10 years), and
then transfers the project. BOT contractors rely on project financiers for equity or credit.
 Construction/Facility Management Consultancy: A response to issues in DB and BOT
where the project owner's interests weren't fully represented, and to address
fragmentation between planning and implementation.
o CM at Risk: The consultant is responsible for project risks, leading to increased
costs.
o CM at Free: The client bears all risks.
o Facility Management: Similar to construction management but also includes
facility operation for a period.
Contract Elements :- A contract is an agreement where two or more persons create, vary, or
extinguish proprietary obligations. The fundamental elements of a contract are:

A. Capacity: Competence to enter into a legally binding agreement.

B. Consent: A declared willingness of the individual to enter into a contract, free from defects or
vices.

 Offer: A proposal expressing the offeror's willingness to enter an agreement if accepted.

 Acceptance: A declaration of will to enter into a legally binding contract.

Defects in Consent (Vices of Consent):

 Mistake: A misunderstanding or erroneous belief about a matter of fact or law.

 Fraud: A false representation made knowingly or recklessly to gain a material
advantage.
 Duress: A threat of imminent danger (future or immediate) against the contracting party
or their close relatives.

C. Object of Contract: The specific obligations of the contracting parties (e.g., employer and
contractor obligations in a construction contract).

D. Form: The type of contract, and whether it's made orally or in writing.

Types of Construction Contracts

 Lump Sum Fixed Price Contract: The contractor agrees to execute the project for a
fixed lump sum, subject to variations only if drawings and specifications are altered
beyond a contract-defined limit by the owner.
 Lump Sum Fixed Price and Escalation Contract: Similar to the lump sum fixed price
contract but includes provisions for price adjustments based on specified price indices.
 Lump Sum Fixed Price and Schedule Rate Contract: An extension of the lump sum
fixed price contract that incorporates unit prices for different activities, aiding in
managing variation works and claims.
 Lump Sum Fixed Price with Escalation and Schedule Rate Contract: Minimizes the
inclusion of contingencies in tender prices by contractors.
 Unit/Item Rate Contract: Based on a priced bill of quantities with estimated quantities
of well-defined work items and their agreed-upon fixed unit prices.
 Schedule Rate Contract: Based solely on agreed unit prices for intended work items,
without estimated quantities. Detailed work specifications and general drawings are
typically used during tendering.
 Cost Plus Fixed Fee Contract: Addresses the shortcoming of "cost plus percentage of
cost" contracts by discouraging contractors from increasing project costs, as their fee is
fixed regardless of total cost.