Construction Management Chair

CONSTRUCTION MANAGEMENT
Chapter 5
Project Mobilization

Delivered by: Teklebrhan K.

October, 2020
 CONTENTS
Project Mobilization
1. Legal and contractual issues

2. Programming and scheduling

3. Organizing the work site

4. Project staffing

AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 1. Legal and Contractual Issues
1.1 General
 Mobilization encompass activities that take place
between the award of the construction contract and the
beginning of construction work in the field.
 Some of this work may have begun prior to, and in
anticipation of, the award, and much of it will continue
into the days and weeks during which fieldwork is
beginning.
 The contractor may be required to make a number of
arrangements for various kinds of ‘paper work’ as part of
the pre-construction mobilization.
 Because these requirements vary from project to project
and especially from country to country, we deal with
them in a general way.

AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 1. Legal and Contractual Issues
1.2 Bonds
 A surety bond is a legal instrument issued by a third party
to guarantee the obligations of a first party to a second
party. This surety ship can be thought of as a guarantee of
performance.
 In construction:
 The first party, or the one that takes on the obligation,
is the contractor, or the principal.
 The second party, the owner with whom the contractor
enters, or anticipates entering, into a contract is the
obligee.
 The third party, the bonding company that guarantees
the obligation, is the surety

AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 1. Legal and Contractual Issues
1.2 Bonds
 If the principal (contractor) fails to carry out its
obligations, the surety makes good the loss to the owner,
but the surety then has recourse to the contractor for
reimbursement if possible.
 Of the three types of bonds the contractor may be
required to obtain, the tender bond (or bid bond, or
proposal bond) is issued during the contractor selection
phase, whereas the other two, the performance bond and
the labor and material payment bond, are obtained
during project mobilization.
 The tender bond provides the owner with bid security.
The purpose is to protect the owner against loss if the
selected contractor does not begin the project as directed.

AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 1. Legal and Contractual Issues
1.2 Bonds
 A performance bond acts to protect the owner from non-
performance by the contractor.
 Upon signing the contract, the owner is entitled to receive
what it contracted for, a completed project in substantial
accordance with the contract documents.
 If the contractor (the principal, in the parlance used
above) defaults by not delivering in accordance with the
contract, the surety is responsible to the owner (obligee)
to complete the project or have it completed, at the price
agreed upon between the owner and the defaulting
contractor, provided that the owner has met its obligations
under the contract.

AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 1. Legal and Contractual Issues
1.2 Bonds
 A labor and material payment bond also provides
protection to the owner, but in a different way; such as
against claims from subcontractors, material suppliers,
workers and others that the contractor has not paid them
moneys due.
 If the contractor fails to pay outstanding charges incurred
in connection with the project, the surety will pay those
debts.
 Tender bonds are furnished with the tender. Performance
and payment bonds are furnished to the owner during
project mobilization, within a specified time limit after
contract signing (or perhaps at the time of signing).

AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 1. Legal and Contractual Issues
1.3 Insurance
 Although the available insurance coverage and the
regulations governing insurance vary among different
countries, the contractor, in mobilizing for the project,
will always have to arrange for appropriate insurance.
 A brief review of the types of insurance utilized in the
construction industry are dealt with hereunder.
 An insurance policy is an agreement under which the
insurer agrees to assume financial responsibility for a
loss or liability covered by the policy. The insurance
company has the duty to:
 Defend the contractor if a claim covered by the policy
is brought against the contractor, and
 Protect the contractor against loss covered by the
policy.
AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 1. Legal and Contractual Issues
1.3 Insurance
 As consideration for the insurance company’s promise to
provide such protection, the contractor pays a fee, called
a premium.
 The contract will specify certain types of required
insurance coverage to be purchased and maintained by
the contractor.
 Beyond that, some insurance may be a legal requirement
even if not stipulated in the contract.
 Furthermore, the contractor may choose to carry other
insurance not required by law or by contract. It is helpful
to divide the types of construction insurance into:
 Property insurance,
 Liability insurance,
 Employee insurance and other types.
AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 1. Legal and Contractual Issues
1.3 Insurance
 Insurance against the contractor’s own plant and other
property will probably not be required by the contract, but
the contractor may choose to purchase this coverage.
 A common form of liability insurance is comprehensive
general liability insurance, which protects the contractor,
in a single policy, against liability to the public.
 It covers injuries to people not employed on the project and
damage to the property of others arising from operations on the
project.
 Various other kinds of coverage may be included, such as
liability to the public due to actions of subcontractors,
completed-operations coverage for work handed over to the
owner, professional liability insurance for design and other
professional services rendered by the contractor and protection
for injury and property damage caused by the contractor’s
vehicles.
AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 1. Legal and Contractual Issues
1.3 Insurance
 Among common forms of employee insurance, some of
which may be required as part of a collective bargaining
contract, are employee benefit insurance, covering
medical and hospital costs beyond those provided by
workers’ compensation, social security or similar
government programs.

AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 2. Programming and Scheduling
 With the contract in hand and the project mobilization
phase underway, the contractor will undertake to develop
a more detailed plan and schedule for the project’s time
dimensions.
 The result will be a document that will assist with
deploying personnel and equipment, procuring materials
and supplies and planning cash flows.
 Equally as important, it will provide the basis for
monitoring and controlling project progress as the
project proceeds.

AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 3. Organizing the Work Site
 An important activity as the contractor begins work in the
field is to set up the site in a manner that will allow the
work to proceed efficiently and effectively.
 It encompasses the following issues:
 Temporary services and facilities;
 Site layout plan; and
 Buying out the job.

AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 3. Organizing the Work Site
3.1 Temporary Services and Facilities
 The following are among the various temporary services
and facilities that will likely be needed.
 Offices,
 Workshops and indoor storage,
 Temporary housing and food service,
 Temporary utilities,
 Sanitary facilities,
 Medical and first aid facilities,
 Access and delivery,
 Storage/lay down areas, and
 Quarries and borrow areas.

AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 3. Organizing the Work Site
3.1 Temporary Services and Facilities
A. Offices
 The office must be lockable and secure, have adequate
desk space and areas for accessing drawings and other
contract documents, provide wall space to display the
project program, have meeting and storage space and, if
possible, offer a direct view of the worksite.
 The contractor may be responsible for providing office
space for design professional and owner representatives
or subcontractors; even if not, locations for such quarters
must be provided in the site layout plan.

AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 3. Organizing the Work Site
3.1 Temporary Services and Facilities
B. Workshops and indoor storage
 On a construction project of even modest size, it is likely
that some on-site fabrication will be required and often
such work is performed at inside locations protected from
the weather.
C. Temporary housing and food service
 The ‘construction camp’ is an important feature of many
projects in remote locations. When a project is located
such that it is unreasonable for workers to return home
every night, sleeping quarters and food service will be
provided.
D. Temporary utilities
 The office and shops will need the usual kinds of utilities,
such as electric power, water and communication.
AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 3. Organizing the Work Site
3.1 Temporary Services and Facilities
E. Sanitary facilities
 Drinking water, washing water and toilets must be
provided for employees, including those of
subcontractors.
F. Medical and first aid facilities
 If the project is sufficiently large, the contractor may need
to provide a separate building, staffed with medical
personnel, to care for the injuries and other health issues
that are likely to arise.
G. Access and delivery
 Like any other community, the worksite must be planned
so that it has adequate access to it and within it for the
movement of people and the delivery and handling of
materials.
AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 3. Organizing the Work Site
3.1 Temporary Services and Facilities
H. Storage/lay down areas
 The systematic storage of materials ensures savings in
time when it is time to install the materials. These storage
areas are frequently referred to as laydown areas on the
jobsite.
 An area should be established for the delivery of each
major material. Sorting of materials as they are delivered
will reduce confusion later. The construction programme
will be a helpful tool to determine when and in what
quantities the various materials will need to be stored.
 Sufficient space must be provided not only for the
materials themselves but also for handling equipment to
manoeuvre in aisles or roadways.

AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 3. Organizing the Work Site
3.1 Temporary Services and Facilities
H. Storage/lay down areas
 Jobsite security must be considered in planning the layout
and staffing of the worksite. Any construction project is
of interest to the public. While the contractor probably
appreciates this interest, the public must nonetheless be
excluded from the site, for reasons of both safety of the
public and security of the completed works, the
construction equipment and the stored materials.

AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 3. Organizing the Work Site
3.1 Temporary Services and Facilities
I. Quarries and borrow areas
 Worksite planning may involve the contractor in
acquiring and developing sites that will provide rock,
gravel and other materials..
 Depending on the nature of the project, these sites may be
on the worksite itself or some distance away.
 On many projects, the development of such sites and the
loading and hauling of the materials represent major
proportions of the total project cost.
 Thus, access to rock quarries and borrow areas, the
movement of vehicles and loading equipment within
them and the routes used to haul to the areas where the
materials will be deposited deserve detailed planning.

AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 3. Organizing the Work Site
3.2 Site Layout Plan
 All of the worksite organization considerations discussed
above will converge in a plan that will be described in
writing and shown on a drawing or series of drawings.
 The jobsite layout plan includes the following: jobsite
space allocation, jobsite access, material handling, worker
transportation, temporary facilities, jobsite security etc.
 Helpful references for establishing the plan include the
construction documents, the program, technical data on
lifting and conveyance equipment, local codes, safety
standards, size and weights of the large anticipated lifting
loads and information from subcontractors and their
storage needs.

AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 3. Organizing the Work Site
3.2 Site Layout Plan

AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 3. Organizing the Work Site
3.3 Buying out the Job
 The term buyout, in the context of construction project
mobilization, refers to procuring the materials and
equipment that will be installed in the project and
arranging subcontracts.
 It includes both selecting suppliers and subcontractors
and finalizing their purchase orders or subcontracts.
A. Material Procurement
 The materials procurement process consists of several
interrelated steps, as follows:
 Receipt and evaluation of offers,
 Purchasing or placement of the purchase order,
 Approval by the owner or owner’s representative, and
 Expediting or contact with the supplier to assure timely
delivery, fabrication, shipping, delivery and inspection.
AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 3. Organizing the Work Site
3.3 Buying out the Job
B. Sub-contracting
 The contractor’s other major responsibility under ‘buying
out the job’ is to arrange subcontract for those portions of
the work the contractor will not perform itself.
 First, the contractor must decide which work will be
subcontracted, a decision that is made, for most
subcontracts, before the project mobilization phase.
 Then, proposals will be received and analyzed and finally,
negotiations lead to finalizing the subcontracts.

AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 4. Project Staffing

 To carry out the work in the field requires people and

those people must be organized in effective relationships.
 This section considers the organization structure at the
worksite and the sources of the laborers whose hands,
minds, tools and equipment will assemble the final
product in the field.

AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.
 THANK YOU!

AAU, EiABC, Construction Management, Lecture note, October 2020, Delivered By Teklebrhan K.