Project Management

By Deepanshu Rastogi|Updated : December 2nd, 2021

Through Champion Study Plan for GATE Civil Engineering (CE) 2022, we are providing Project Management study notes and other important materials on every topic of each subject.

These topic-wise study notes are useful for the preparation of various upcoming exams like GATE CivilIESBARCISROSSC-JEState Engineering Services examinations and other important upcoming competitive exams.

The article contains fundamental notes on the "Project Management"  topic of the "Construction Planning and Management" subject.


Types of Construction Projects

The civil Engineer Project manager or construction manager has to interact with various fields of specializations depending upon the type of the project. A project manager involved in the construction of a hospital has to interact with a medical professional. Similarly, the construction of petroleum, refinery involves the complex interaction with the chemical engineer, mechanical engineer, electrical engineers.

Based on the intersection of knowledge and interaction with other disciplines, civil engineering projects can be grouped as follows.

  • Building Projects
  • Heavy engineering Project
  • Industrial Projects

Building construction projects can be further divided into Residential Buildings and commercial buildings.

  • Building Construction Projects

During the design phase, building design is coordinated by an architect who works with other engineering disciplines such as structure engineer, electrical engineer whereas the construction phase is coordinated by the civil engineers. But group leader in the building projects is generally architect. A building project can further be classified into 

  • Residential Building
  • Commercial and other buildings.

Residential buildings in India are primarily single or double-storey buildings. Multi-storied residential buildings are also getting constructed. Another building project produces a variety of building ranging from hospitals, temples, and small stores to commercial office towers, theatres and cinema halls, government buildings, recreational facilities, small schools.

Economically building project accounts for around 60 to 70 per cent of the construction project in a country. But most of the constructions are carried out in an unorganized way. In India, building construction projects are very fragmented and the majority of construction in the rural and semi-urban areas is carried out by non-engineering ways. Building construction in India is highly labour–intensive. Most of the labourers employed for building projects are semi-skilled and untrained. Uses of heavy equipment are very rare. Building projects are governed by many local as well as general laws, such as municipal laws, building laws etc.

  • Heavy Engineering Construction

Heavy engineering construction includes primary infrastructural facilities such as transportation system railways, road, bridges, mass transit system, hydraulic structure (dam, barrage, flood control system, hydroelectric power, irrigation system) water treatment and water supply system, wastewater treatment and its disposal, power line transmission.

Heavy engineering construction accounts for around 25-30 per cent of total construction.

Construction is carried out by a reputed big company.

Heavy engineering projects are mostly financed by the government. These are primarily infrastructure projects.

Design, as well as construction in these projects, is the primary job of civil engineers although inputs from other departments play an important role.

Heavy engineering projects are highly equipment intensive and large quantities of materials are used.

  • Industrial Project

Industrial Projects are highly specialized projects and it is dominated by large construction firms.

These projects include power plants(fossil fuel, nuclear power), petroleum refineries and petrochemical plants, fertilizer plants, large steel plants, heavy manufacturing plants, aircraft industry.

Industrial projects account for only 10 per cent of the total construction projects, but it requires the highest level of engineering expertise from various engineering disciplines, such as chemical, mechanical, electrical engineering.

Industrial constructions are a very specialized job and consist of large complex mechanical, electrical, instrumentation work.

Construction is dominated by skilled labour and quite labour-intensive compared to heavy engineering but large equipment are also used. 

Tenders and Contracts

Basic Terms

Basic Definitions

(i) Tendering

Tendering is the process by which bids are invited from interested contractors to carry out specific packages of construction work. An agreement between the contractor and the department is executed, fixation of is the main clause, for the completion of the job through the process of tendering.

(ii) Tender notice: The Tender Notice is a brief description of the job being tendered to be published in Newspapers and on the Internet.

(iii) Tender Form: It is a printed standard form of contract giving standard conditions of contract, general rules and directions for the guidance of contractors.

(iv) Quotation: The rates quoted by a contractor in response to tender call are called “quotations”.

(v) Earnest money: This is the money deposited by the contractor with the tenders, which indicates the willingness of the contractor to work for the department. Generally, the earnest money is 2% of the total estimated cost of the project. This money is refunded back if the tender of that contactor is not accepted.

(vi) Security money: This is the money that the contractor has to deposit with the department when the contract is allotted to him. It is 10% of the total estimate. The earnest money deposited by the contractor is also included in this amount. This deposit is kept as a check so that the conditions of the contract agreed upon are fulfilled and the work is the progress and quality of the work is not satisfactory

(vii) Contract: A contract is an agreement entered between two or more parties who promise to exchange money, goods, or services according to a specified schedule and are legally enforceable.

Type of Tenders

There are three types of tendering methods in construction management:

(a) Open tendering: Under open tendering the employer advertises his proposed project, and permits as many contractors as are interested to apply for tender documents. The contractor is chosen on the basis of price and quality bids by them.

(b) Selective Tendering: Under selective tendering the employer advertises his project invites selected contractors to place a bid for the project. The contractor who submits the lowest tender is generally awarded the contract.

(c) Negotiated Tendering: In Negotiated tendering, only one contractor is invited to submit prices for a project. Usually, this is for specialized work or when particular equipment is needed as an extension of existing works, or for further work following a previous contract.

Types of Contract

The major type of contracts that are used in construction management are as follows:

(a) Item Rate contract: The total price of the project in the item rate contract is based on the price of each item’s unit. The contractor is paid as per the rates of items specified in the bill of quantity.

(b) Lump-Sum Contract: In this type of contract, the contractor bids a lump sum amount based on the drawings for the overall project. This contract is ideal when the project scope is well defined at the design stage because there is limited flexibility for modifying the design during the construction period.

(c) Percentage rate contract: In this type of contract, the contractor agrees to take the work of construction for a fixed percentage over the actual cost of construction. The contractor arranges for the labour, materials required for the completion of the work, and maintains a proper account of the construction costs.

(d) Material supply contract: In this form of contract, the contractors have to offer their rates for supply of the required quantity of materials, inclusive of all local taxes, carriage and delivery charges of materials to the specified site within the time fixed in the tenders.


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