Construction

A. Definition
B. Construction Completion Work Phase
C. Construction Management Definitions
D. Construction Equipment and Tools
E. Construction Materials
F. Construction Activities
G. Additional Definitions
H. Institutes

A. Definition

Construction is the installation and assembling activities for the project equipment and materials at the site in accordance with approved construction drawings, procedures and specifications. The Construction requires large number of skilled construction labours and construction equipment until the plant is mechanically completed (M/C: Mechanical Completion). After the Construction activities are completed, the plant is handed over to the operation group with all required documents. The Construction work comply with local laws and regulations, especially local labour laws, environment, and safety requirement.

Management is the activity in an organisation and the coordination of business in order to achieve defined objectives and goals that manages and controls resources (people, money, time, technology, procedure, etc.) efficiently and effectively. The Management includes to develop team objectives and goals, set up detailed execution plan and procedures, and coordinate with internal and external parties. Practice of modern management originates from the 16th century study of low-efficiency and failures of certain enterprises, conducted by the English statesman Sir Thomas More (1478-1535). The Management is also an academic discipline, a social science whose objective is to study social organisation.

Construction Management is for the maximise construction efficiency and minimise interferences with other activities at the site. The Construction Management is to control and manage the construction activities in accordance with the construction document and materials deliveries to the site as per the construction sequence. The Construction Management team evaluates and develops the optimum level (number) of construction labour mobilisation plan and minimisation of additional site works (e.g., re-do, preservation works etc.) through the construction cost and schedule control and management as well as the construction HSE and Quality management.

Home Office Construction Management is the construction planning and coordination activities with all various organisations to determine how to best perform the construction effort at the site. The Home Office Construction Management is performed during the engineering and early procurement phase to develop the construction planning such as the selection of construction technologies, performing the constructability study, development of construction organisation, schedule, budget, and resources requirement, and detailed construction methods and procedures including temporary facilities, construction sub-contracting plan, etc.

Site Manager (or Construction Manager) is an overall responsible person for the project construction management at the construction site. The Site Manager is required to keep within the timescale and construction budget of a project, and manage any delays or problems encountered on site during a construction period. Also, responsible for the managing of the quality control, HSSE (health, safety, security, and environment), and dealing inquiries and communications with consultants, clients, engineers, inspectors, and the public for the construction activities at the site. The Site Manager ensures that drawing and materials are delivered on time and construction resources are available on the work including the construction subcontractor, construction equipment and tools, and required procedures, and construction utilities, etc. The Site Manager involves the project initiation and planning stage as a home office construction planning before site activities are commenced, and responsible for managing communications between all parties involved in the site development of the project. (Refer to the Construction Manager)

Construction Manager is responsible for direct construction activities such as erection and installation of equipment and materials reporting to the Site Manager, and supported by construction superintendents, supervisors, and construction subcontractors. Normally, the Construction Manager is a Site Manager of a small size of construction project. (Refer to the Site Manager (or Construction Manager))

B. Construction Completion Work Phase

Construction Work Completed means that all the works described in the contract documents have been carried out as specified, all appropriate payments have been made, there are no defects and an appropriate handover has taken place, and physically ready to be occupied or to be put into use.

Construction Completion Management Tool is a computerised systematic software including a structured testing, commissioning and start-up of the multi-discipline process plants and utilities from construction planning through commissioning. The Construction Completion Management Tool delivers a fully certified and documented operational plant in which the tool applies a database including all relevant engineering information for items to be mechanically completed and commissioned.

Mechanical Completion (M/C) is the final phase of construction activities to verify the completeness of the constructed plant that each installed component conforms to or is fabricated, installed, and tested in accordance with the project specifications and procedures after all mechanical works including pre-commissioning (PC) activities are completed. A M/C is one of the project key milestones when the M/C is achieved, owner (client) releases the Mechanical Completion Certificate (MCC), and the plant is handed over for the commissioning and operation activities from the construction (normally EPC Contractor) to the plant operation group (normally owner organisation). Practically, some minor works can be transferred and performed during commissioning and operation which are not related safety and performance. Reference guideline is API 700 Plant Completion Checklist.

Mechanical Completion Certificate (MCC) is an owner's acceptance certificate issued to a contractor when the contractor completes or achieves the requirements of Mechanical Completion (M/C) criteria in accordance with the contract.

Pre-commissioning (PC) is one of the construction activities that involve the verification of functional operability of elements within the system to achieve a state of readiness for the Commissioning and Start-up operation. Sometimes, for the pre-commissioning of Process units require the completion of the commissioning activities of utility facilities. The Pre-commissioning may require an energisation of equipment includes the running and entire testing of the power generation systems, testing of emergency shutdown and control systems and dynamic trials prior to commissioning and start-up operations. The Pre-Commissioning activities should be completed prior to the achievement of the Mechanical Completion Certificate (MCC).

Commissioning is the activities performed in getting processes running to establish normal operation that include the process verification and documentation of the facility and its system components and assemblies are designed, installed, tested, and operated to meet the project requirements of individual units and systems. The Commissioning activity consists of checking and testing all functions according to their design parameters in conditions as close as possible to the design conditions, and the performance tests on mechanical equipment and piping system as well as control systems operability and functionality. The Commissioning activities are performed after construction and pre-commissioning is completed.

Ready for Start-up (RFSU) is a final phase of construction, and an initial operation in which a plant or facility is a mechanically completed and fully commissioned. A RFSU is ready to introduce the feed stock for the operation. 

Start-up is the plant operation activities that is the commencement of an initial operation after achieved the completion of construction works and commissioning activities, and continued until the acceptable production capacity and quality are achieved: successful plant performance test and commercial operation start.

Performance Test is a test or an examination of the plant capacity and quality to achieve the desired results that is to verify the plant meets the specifications and contractual requirement. The Performance Test requires a system or plant to actually perform a task or activity, rather than individual performance tests or inspections referring to specific parts.

Hand Over (or Turnover) is a responsibility transfer work process, giving of care, custody, and control (CCC) for project to owner at the final stage of project after the plant is constructed, inspected, and tested. The Hand Over activity includes all constructed facilities as well as project documentations as specified in the contract that is one of the project close out activities.

Provisional Acceptance (PA) is a conditional acceptance but usually without any specific conditions or provisions in the mechanical work (Mechanical Completion (M/C)). The Provisional Acceptance means an owner has accepted the project, but the plant performance is needed to have a verification or confirmation at the actual operation conditions within an agreed period. The plant is handed over to the owner when the contractor achieves the Provisional Acceptance. The Final Acceptance to be achieved after the plant performance is verified or confirmed (Performance Test) based on the agreed contractual requirement.

Provisional Acceptance Certificate (PAC) is an owner's acceptance certificate to contractor when the contractor achieves the requirements of provisional acceptance (PA) criteria in accordance with the contract terms and conditions. (Refer to the Mechanical Completion (M/C), Provisional Acceptance (PC), Hand Over, Care, Custody and Control (CCC), Performance Test, Final Acceptance)

Final Acceptance (FA) is an owner’s acceptance of the facility or project from the contractor after the entire work is completed, tested, and inspected in accordance with the contractual requirements. When the Final Acceptance is achieved, owner releases the Final Acceptance certificate to the contractor, and the plant is a permanently handed over to the owner, and confirmed by the making of final payment to the contractor.

Final Acceptance Certificate (FAC) is a certification system work process that is issued by an owner to a contractor after successfully completed the final acceptance criteria such as a performance test including all the contractual obligations and requirements.

Project Close-out activities include the preparation and development of project completion report (e.g., project histories and performance analysis with relevant raw data); project financial close out activities; archive project information to the company organisation; appraisals and demobilise project members. Any minor open issues including agreed punch works can be performed during a turn-around work period, any minor unsolved claims with other parties, and remaining financial follow-up activities such as a final payment to be paid after expiring of the warranty period, and bond returns, etc., can be handed-over to the company dedicated team.

C. Construction Management Definitions

Construction Management

Constructability is the collaboration work processes of the construction knowledge and experience in planning, design, procurement, and field construction to achieve overall project objectives and goals. The Constructability reviews and studies including the construction abilities as a feasibility study including accessible and workable of construction labours and equipment; project equipment and material; maintenance equipment and people, and operation people considering the construction sequence. The Constructability reviews are required at various of project stages, for a site selection at the beginning stage, for development of overall plot plans at conceptual design and FEED stage, for finalisation of detailed building and equipment layouts at detailed engineering stage, and for detailed construction planning at the construction stage.

Construction Sequence means that the erection and installation sequences of the project equipment and materials as well as the completion sequences of units, systems or subsystems based on the plant commissioning sequence. The Construction Sequence is developed in accordance with the minimisation of the interference with engineering, procurement and operation activities, and the interface with inter-disciplinary activities at the site. (Refer to the Erection Sequence)

Erection Sequence is an order or series of equipment and facility erection or installation sequence, normally construction erection work starts from 1) underground works, 2) a tall and heavy equipment erection, 3) from the middle of plant area, 4) longest duration activities. The Construction Erection Sequence development requires considering of the equipment and material delivery schedule, engineering document, and drawing release schedule as well as the construction erection equipment availability, accessibility, and workable spaces. 

Care, Custody, and Control (CCC) is a term used primarily in liability coverages to cover the property under a property insurance that is not owned by the insured, but which is legally in the insured’s possession or under his control. (e.g., Rental Equipment) A CCC is an event by which the assumption of responsibility for the safety, operating, and maintenance of a fixed asset by the operating organisation that is normally accepted upon mechanical completion of the asset.

Certification System is an auditable work process of the project documentation that ensures the facilities are constructed, commissioned and handed over to an owner in accordance with the specifications, procedures, and contractual requirements including engineering and design output; documented as-built; inspected and tested; and handed over all facilities with necessary documentation. (Refer to the Mechanical Completion Certificate (MCC), Provisional Acceptance Certificate (PAC), Final Acceptance Certificate (FAC), etc.)

Construction Contractor is a construction company or firm which undertakes construction works at the site as a part of a project based on the contract terms and conditions with a client. (Refer to the Contractor; Subcontractor)

Construction Indicator is a trend or fact that indicates the current status and future construction activities such as the permits, contractors, construction employment, and construction cost index, etc.

Field Engineering

Field Engineering is one of the construction organisations that is to perform the design and engineering work at the site. Primary responsibility is an interpretation of engineering design and document to the construction teams, supporting ad-hoc engineering related site activities including field material supply, gathering requested site information feedback to the Engineering division, and assisting engineering matter to operation and maintenance team. The Field Engineering team involves performing of completeness check and inspection of construction outcomes, and development of hand-over documentations.

Approved for Constriction (AFC) means that the document or drawing was reviewed and approved by authorities of internal and external organisations including the client representatives for the construction. A Construction team must use only an AFC marked or stamped drawings and documents for the construction works and activities.

Assembly Drawing defines the configuration and contents of the assembly that is used to represent items more than one component. The Assembly Drawing establishes an item identification for each assembly containing detailed requirements for all parts and sub-assemblies that makes the final product. The Assembly Drawing shows how the components fit together and orthogonal plans, sections and elevations, or three-dimensional views, containing overall dimensions, weight and mass, identification of all the components, quantities of material, supply details, list of reference drawings, and notes.

Bar Bending Schedule is a civil and structural construction detailed design and engineering drawing that provides information of a bill of materials (BM) for re-bars. 

Bill of Quantity (BOQ or BQ) is all the quantities from the engineering BOM (Bill of Material) of all disciplinary works (e.g., piping, electrical, civil, structure, insulation, etc.) to be sent to suppliers for pricing or purchasing that is the product specifications and details required to build a construction project. A BOQ or BQ document includes itemised list of materials, parts, and labour required to construct for a specific scope of work that is used in bidding or tendering in the construction industry. (Refer to the BM or BOM)

Construction Document includes the project specifications and procedures, and drawings, etc., for the construction works and activities.

Construction Engineering is to perform the engineering activities or works at the construction site that deals with the designing, planning, construction, and management of design and engineering matters. The Construction Engineering covers wide range of activities to evaluate and select the techniques for assembling and installing materials and components as well as developing workable, cost-effective, low-risk technical solutions. (Refer to the Field Engineering)

 

Field Controls

Field Project Controls are to support construction management methodologies that focus on controlling the schedule and cost of the project construction at the site. The Field Project Controls are responsible for developing analysis and reporting associated with various project controls activities, such as cost estimating, analysis, and schedule development, maintenance, monitoring, impact identification, recovery plan development, and variance analysis, etc., that may need a forecasting ability, developing corrective action plan, and proceeding change management process with construction team members to support a right and effective decision making.

All-in Rate is 1) the total cost of an item including all direct and indirect costs that is a rate by a Contractor to an Owner by which the Contractor collects direct labour cost and indirect cost including benefits and burdens, overhead, expenses, and profit on a per-hour basis. Individual contracts specify what is to be covered in the all-in rate. (e.g., in construction: All-In Labor Rate = (Total Direct Cost of Labor + Total Indirect Cost of Labor) / Total work hours); 2) the total fees and interest included in a financial transaction, or all the expenses and charges related to an operation or service of a company.

Construction Cost is the cost of the entire construction of the Project that is the sum of all cost, direct or indirect of the work to the owner of all elements of the project designed or specified by the design professional for material and equipment into a project ready for operation. The Construction Cost includes the field labour, field contracts, supervision, administration, construction equipment and tools, field office expenses, field purchased material cost, and construction temporary facilities and utilities, but do not include the engineering, procurement services cost, and cost of land or rights of way, etc.

Construction Detailed Schedule refers to a Detailed Network Schedule (Level 4 Schedule).

Construction Price Index measures changes in cost for production factors in construction industry including materials of various types, equipment, salaries, transport, etc., that is based on measurements of a number of goods and salaries. The material costs index measures the price development of the main construction materials, and the labour costs index measures the salary for engineers, techniques and workers.

Construction Progress is the status of a construction project at a particular point in time that involves assessing and tracking the completion of various tasks, milestones, or phases within the project to determine how much work has been accomplished compared to the overall project timeline or schedule. A Construction Progress Report informs management of the overall field construction progress (physical percent complete), costs, performance, and manpower to a specific reporting cut-off date as well as major accomplishments, areas of concern, and other pertinent information necessary for proper management and control.

Detailed Network Schedule (Level 4 Schedule or Execution Schedule or Construction Detailed Schedule) is a detailed and discipline-wide working level network schedule that is the critical path method (CPM) management schedule displaying all detailed activities to be accomplished by the project workforce. The Detailed Network Schedule can be expanded of the Project Control Level (Level 3) Schedule. Sometime, the Detailed Network Schedule is developed by a construction subcontractor based on the Project Control Level (Level 3) Schedule.

 

Field Material Control 

Field Material Control is the construction management activity that is the systematic material controls all stages at the site to help in maintaining regular and uninterrupted flow of the materials. The Field Material Control activities are managing and controlling the delivered equipment and materials at the site including materials receiving, provide a receiving inspection and issue the report (OS&D report), warehouse management, inventory check and status reporting, field material purchasing, and hand-over excess materials.

Material Management is the process of planning, organising, and controlling the flow of bulk materials that is a systematic measuring and trending of bulk material quantities of the cost associated with the purchase, supply, and installation. The Material Management is one of the critical activities for the project success that involves all aspects of the supply chain, including sourcing and procurement, inventory management, transportation, and storage. (e.g., quantity forecasting and supplying of bulk materials from BM take-off, and material handling to construction installation) The Material Management within the procurement organisation is an integrated effort between estimating, project controls, engineering disciplines, and construction field material controls.

Barcode is a machine-readable code in the form of numbers and a pattern of parallel lines of varying widths that is an optical, representation of data, printed on a commodity and used especially for stock control. (Refer to the QR Code (Quick Response Code))

Blanket Order is a purchase order (PO) consisted of the price basis and all applicable terms and conditions that applies for bulk materials supply for the large and mega project construction. After its acceptance by the supplier, purchase order (quantities) may be made against it periodically. (Also, called as the Framework Agreement or Umbrella Agreement)

Bonded Area is authorised by customs authorities for the temporary storage of imported or to be exported goods or cargoes without the customs clearance is proceed (before payment of duties). The Bonded Area is a designated area including warehouse or other secured area used in export and import of international trades. 

Construction Allowance is the construction cutting waste quantities for the construction fabrication or prefabrication mistakes, errors, and losses. The Construction bulk materials are supplied with manufacturer’s standard size and length, but the construction drawings are generated based on the actual process requirements and dimensional plot sizes. The Construction Allowance (Construction Cutting Waste) quantities of an industrial, company, or specific project standard (additional ratios of each bulk items) should be added to the engineering BM (Bill of Material) for the procurement.

Construction Material refers to the Consumable Material.

 

Modular Construction

Modular Construction is a construction technique in which all or a part of sections or facilities are prefabricated or assembled in one location and then transported to the site, placed in position, and connected. The modules are limited in size and weight only by handling capabilities such as fabrication yard, inland and ocean transportation, erection or installation capacity.

Modular means related module or constructed with standardised units (modules) that applies pre-engineered, factory fabricated structures between 80 to 95% are completed at the factory and then delivered to the site for final assembly.

Modular Design is an engineering technique that is a module design of a complete unit or plant divide into smaller sections (system or subsystem) with tie-in provisions.

Modularisation (Modularization) is one of the construction methods that is applicable for difficulties in a skilled labour mobilisation at the site or remote areas and significantly disadvantages in economics for a traditional stick-built construction method which requires the large number of labours, construction equipment and supporting infrastructures. Modules are self contained and operated with essential utility supply. In general, a Modularisation project is shorter project schedule, but cost is dependent.  

Modularity is a degree of the modular application that depends on the project, especially the location of the construction site. 

Module is a set of separated parts from a complete unit or plant, or the self contained and operated with essential utility supply that is a transportable pre-assembly components of process plant designed to minimise site installation and commissioning activities, and labour costs.

Module Types are pre-assembled unit (PAU), pre-assembled rack (PAR), pre-assembled building (PAB), and vendor assembled unit (VAU).

D. Construction Equipment and Tools

Construction Equipment is the heavy construction vehicles and machines that includes for Civil: Backhoe, Bulldozer, Compactor, Excavator, Grader, Loader, Paving, Concrete Mixer, Pile Boring Machine, Skid Steer, etc. ; Erection and Installation: Crawler Crane, Telescopic Crane, Truck Crane, Tower Crane, etc.; Heavy and Tall Equipment Erection: Gin Pole, Hydro Jackup Crane (Cramo, Master); Piping and Pipeline: Pipe layer; Transportation: Track, Forklift, Material Handler, etc.; Tunnel Boring Machine (TBM), etc.

Gantry Crane is a type of overhead crane that is a mobile crane in the shape of a gantry, also used for unloading bulk cargo vessels.

Gin Pole is a lifting device that is a construction erection equipment used to assist in installing the tall or heavy equipment.

Self-Propelled Modular Transporter (SPMT) is a platform vehicle with modules of four, five or six axle lines. The modules can be connected to multi-wheel transporters to transport a load that is too big or too heavy for a truck or low-loader. A SPMT can rotate around its centre to make a 360° turn (carrousel) and can move sideways. Each SPMT axle can carry up to 40 metric tonnes, including its own weight. The modules fit on a normal truck. A separate power pack drives the (connected) module(s) and supplies hydraulic pressure for the steering, driving and height adjustment of the modules.

Tunnel Boring Machine (TBM) is a piece of equipment designed to bore circular tunnels.

Tool is a piece of device, equipment or computer programme (software) of work implement that can be used by hand for a specific purpose.

Pig is a pipeline inspection and cleaning device with blades or brushes that can be performed without stopping the flow of the product in the pipeline.

E. Construction Material

Consumable Material (or Construction Material) is supplied or purchased on a bulk basis, and incorporated into other goods and lost their identity in the assembly: welding rods, gases, paints, shims, etc. The Construction Consumable Material is normally procured by a field material control team, or supplied by a construction subcontractor.

Adobe is a kind of clay used as a building material that is mixture of earth and straw made into bricks and dried in the sun.

Block is 1) a solid and straight of hard material used for the construction; 2) a divided designated area.

DPC (Damp Proof Course) is a barrier created to resist moisture rising by capillary action, rising damp. A DPC layer is generally constructed below all housing walls.

DPM (Damp Proof Membrane) is a membrane material applied to prevent moisture transmission. A DPM is the form of a polyethylene sheet underneath concrete, and may be used for A DPC (Damp Proof Course).

Girder is a long, thick piece of iron steel or concrete structure for buildings, bridges, or a framework of large structures.

Gravel is a small stone used for a concrete mix and a surface paving material.

F. Construction Activities

Abrasive Blast Cleaning or Abrasive Blasting is a cleaning and roughening of a surface by the high velocity impact of an abrasive that is propelled by a mechanical device powered by an electricity such as a centrifugal blasting wheel or a discharge of pressurised fluid from a blast nozzle. The Abrasive Blast Cleaning is widely used in industries such as automotive, shipbuilding, construction, aerospace, and metal fabrication. (Refer to the Grit Blasting)

Airless Spraying is a process of painting or coating technique that uses high hydraulic pressure to spray painting or coating fluids.

Airtightness Test (or Air Pressure Test) is a total leakage test used the air differential pressure between an inside of system and outside of entire system envelope. (Refer to the Leak Test; Pressure Testing; Pressurisation (Pressurization) Testing).

American Wire Gauge (AWG) is the U.S. standard for gauging the size (diameter) of non-ferrous wire.

Architectural Coating is the painting and other coating used to coat buildings and homes that is an organic coating intended for onsite application to interior or exterior surfaces.

Authorised Work is 1) an approved work permit that can be processed; 2) an additional work that effort for which defined contract costs have not been agreed to, but for which written authorisation has been received.

Backfill means to refill in a hole that a space around excavated area and buried components.

Battre Board (Batter Board)

G. Additional Definitions

Abrasive is a small solid substance used for grinding, cutting, roughening, polishing, or cleaning a surface by friction or high velocity to make it shiny.

Advanced Manufacturing Technology is defined as the use of innovative technologies and methodologies for improved competitiveness in the manufacturing sectors.

Brownfield is a previously developed industrial or commercial property that is abandoned or underused, and has the potential for being redeveloped.

Brownfield Plant is a revamping, upgrading or modification project of the existing plant. (Opposite of the Grass Root Plant)

Construction All Risk (CAR) Insurance refers to the Erection All Risk (EAR) Insurance.

Energy Performance Certificate (EPC) is the energy efficiency rating that is the measure of the overall energy using efficiency of the properties. The Energy Performance Certificate (EPC) is placed on a colour-coded scale from A (very efficient) to G (inefficient), and states what the energy efficiency rating could be improved, and highlights cost effective ways to achieve a better rating. The Energy Performance Certificate (EPC) shows the amount of energy used per m²; and the level of carbon dioxide emissions (given in tonnes per year), and is valid for 10 years from when issued.

EPC (Engineering, Procurement and Construction) Project is one of the typical contract types of the oil and gas business sector that defines contractor's scope of work (EPC). A Contractor provides the works for Engineering, Procurement and Construction up to a Mechanical Completion (MC) of the plant, and hand-over to the Owner for a start-up and operation.

Grass Roots Plant 

H. Institute

American Welding Society (AWS) was founded in 1919 as a multifaceted, nonprofit organization. Advancing the science, technology, and application of welding and allied joining and cutting processes worldwide: that’s our mission and it’s why we exist. Whether you’re here to explore membership, certification, advanced training, updated standards, conferences, professional collaborations or the many exciting career opportunities in welding today – we are here to support you. Count on AWS for the leading-edge industry knowledge, resources and tools you need to achieve even greater business and career success. (Source: www.aws.org)

Construction Industry Institute (CII), based at The University of Texas at Austin, is a consortium of more than 130 leading owner, engineering-contractor, and supplier firms from both the public and private arenas. These organizations have joined together to enhance the business effectiveness and sustainability of the capital facility life cycle through CII research, related initiatives, and industry alliances. A learning organization with a wealth of knowledge and information, CII is unique in the engineering and construction industry. (www.construction-institute.org/)

International Labour Organization (ILO) is devoted to promoting social justice and internationally recognized human and labour rights, pursuing its founding mission that social justice is essential to universal and lasting peace. Only tripartite U.N. agency, the ILO brings together governments, employers and workers representatives of 187 member States, to set labour standards, develop policies and devise programmes promoting decent work for all women and men. (Source: www.ilo.org)

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