General Financial Rules (GFR) 2017

 

1: MANAGEMENT PROCESS

Management is the systematic process of planning, organizing, staffing, directing and controlling resources to achieve organizational goals efficiently and effectively. In construction projects, management ensures optimum use of men, materials, machines, money and time to complete work within budget and schedule

CONSTRUCTIONAL-MANAGEMENT

.Importance of Management

1.     Achievement of Goals – Converts scattered resources into coordinated efforts.

2.     Optimum Utilization of Resources – Prevents wastage of manpower, materials and machines.

3.     Cost Reduction – Proper planning ensures maximum output with minimum input.

4.     Sound Organization – Clear authority, responsibility and accountability.

5.     Adaptability – Helps organizations survive changing environments.

6.     Social Welfare – Improves productivity, employment and living standards.

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Functions of Management

1. Planning

Planning is deciding in advance what to do, how to do it and when to do it. It bridges the gap between present and future goals. In construction, planning includes scheduling, budgeting and resource forecasting.

2. Organizing

Organizing involves grouping activities, assigning duties and establishing authority relationships. It ensures smooth coordination among departments.

3. Staffing

Staffing means placing the right person at the right job. It includes recruitment, training, promotion, performance appraisal and remuneration.

4. Directing

Directing activates people to perform tasks through:

• Supervision
• Motivation
• Leadership
• Communication

5. Controlling

Controlling ensures work is done as per plan by comparing actual performance with standards and taking corrective action.

Management Theories

• Contingency Theory – No single best management style; decisions depend on situations.
• Systems Theory – Organization works as an interrelated system.
• Chaos Theory – Change is inevitable and unpredictable.
• Theory X & Theory Y – Assumptions about worker motivation.

Management Roles (Mintzberg)

1.     Interpersonal Roles – Figurehead, leader, liaison

2.     Informational Roles – Monitor, disseminator, spokesperson

3.     Decisional Roles – Entrepreneur, resource allocator, negotiator

Organizational Structures

• Line Organization – Simple, direct authority flow.
• Functional Organization – Specialized supervisors.
• Line and Staff Organization – Balance of authority and expert advice.

 

2: CONSTRUCTION PROJECTS & MANAGEMENT

Types of Construction Projects

1.     Private Projects – Residential, commercial, industrial.

2.     State Projects – Schools, roads, bridges funded by state bodies.

3.     Federal Projects – National highways, dams, government buildings

CONSTRUCTIONAL-MANAGEMENT

.

Construction Process Stages

1.     Concept

2.     Contracts & Bidding

3.     Construction

4.     Payments

5.     Completion

Construction Manager – Functions

• Planning and scheduling
• Cost and quality control
• Safety management
• Contract administration
• Conflict resolution

Construction Planning

Planning selects the best method of executing work with minimum cost and time.

Stages of Planning

1.     Pre-Tender Planning – Site visit, soil study, risk analysis.

2.     Contract Planning – Labour, material, scheduling and sequencing.

Construction Management Techniques

• CPM (Critical Path Method) – Determines critical activities.
• PERT – Uses probability for time estimation.
• Lean Construction – Minimizes waste.
• Line of Balance – Repetitive work scheduling.

 

3 : RESOURCE PLANNING & STORES

Resources

• Manpower
• Materials
• Machinery

Resource Planning Techniques

1.     Resource Loading

2.     Resource Aggregation

3.     Resource Availability Analysis

4.     Resource-Constrained Scheduling

5.     Resource Leveling

Stores Management

• Indent – Authorization for issue of materials
• Invoice – Record of supply
• Bin Card – Stock record
• Materials-at-Site Account – Tracks receipts and consumption

Scheduling

Scheduling determines activity sequence, duration and resource allocation.

Tools

• Bar Chart
• CPM Network

 

MULTIPLE CHOICE QUESTIONS (MCQs)

1.     Management is the art of getting work done through:
A) Machines
B) Money
C) People
D) Materials

2.     Which is the first function of management?
A) Staffing
B) Planning
C) Directing
D) Controlling

3.     CPM focuses mainly on:
A) Cost
B) Quality
C) Critical activities
D) Materials

4.     Which organization structure follows unity of command strictly?
A) Functional
B) Line
C) Line & Staff
D) Matrix

5.     PERT was developed by:
A) DuPont
B) US Navy
C) Ford
D) Taylor

6.     Resource leveling aims to:
A) Reduce cost
B) Increase duration
C) Balance resources
D) Increase profit

7.     Which project is publicly funded?
A) Private
B) Industrial
C) State
D) Residential

8.     Theory X assumes workers are:
A) Self-motivated
B) Lazy
C) Innovative
D) Creative

9.     Bar chart is also known as:
A) Network chart
B) Gantt chart
C) CPM chart
D) Flow chart

10.                        Materials are issued only on:
A) Invoice
B) Bin card
C) Indent
D) Voucher

11.                        Which function of management ensures work is performed as per plan?
A) Planning
B) Organizing
C) Directing
D) Controlling

12.                        Staffing mainly deals with:
A) Machines
B) Money
C) Manpower
D) Materials

13.                        The main objective of controlling is to:
A) Punish workers
B) Increase profit
C) Ensure performance as per standards
D) Reduce labour

14.                        Functional organization was proposed by:
A) Henry Fayol
B) F.W. Taylor
C) Mintzberg
D) Koontz

15.                        Which role of manager involves decision making?
A) Informational
B) Interpersonal
C) Decisional
D) Supervisory

16.                        In CPM, the critical path is the path with:
A) Maximum float
B) Minimum activities
C) Longest duration
D) Highest cost

17.                        Float time is associated with:
A) Critical activities
B) Non-critical activities
C) All activities
D) Final activity

18.                        PERT uses which time estimates?
A) Single
B) Two
C) Three
D) Four

19.                        Which construction project is funded by central government?
A) Private
B) State
C) Federal
D) Industrial

20.                        Resource leveling is done mainly to:
A) Reduce project duration
B) Reduce cost
C) Balance resource usage
D) Increase profit

21.                        Which planning is done before tender submission?
A) Contract planning
B) Site execution planning
C) Pre-tender planning
D) Post-construction planning

22.                        The document authorizing issue of materials from stores is:
A) Invoice
B) Bin card
C) Indent
D) Voucher

23.                        Bin card is maintained at:
A) Site office
B) Divisional office
C) Store room
D) Head office

24.                        Bar charts are also called:
A) CPM charts
B) PERT charts
C) Gantt charts
D) Network charts

25.                        Which scheduling method clearly shows inter-dependency of activities?
A) Bar chart
B) Histogram
C) CPM
D) Pie chart

26.                        Construction planning mainly aims at:
A) Increasing wages
B) Minimizing cost and time
C) Reducing labour
D) Maximizing paperwork

27.                        Resource aggregation generally results in:
A) Straight line
B) Bell-shaped curve
C) Zigzag curve
D) Random curve

28.                        Which resource planning technique shifts non-critical activities?
A) Resource loading
B) Resource leveling
C) Resource allocation
D) Resource analysis

29.                        Measurement Book (M-Book) is used for:
A) Store records
B) Labour attendance
C) Recording measurements
D) Financial audit

30.                        CPM was developed by:
A) Henry Fayol
B) F.W. Taylor
C) Morgan Walker & James Kelley
D) Mintzberg

31.                        Which contract has fixed total cost?
A) Item rate
B) Percentage rate
C) Lump sum
D) Cost plus

32.                        Tender is:
A) Agreement
B) Contractor’s written offer
C) Payment bill
D) Measurement record

33.                        Muster Roll is used for payment to:
A) Contractors
B) Suppliers
C) Casual labour
D) Engineers

34.                        Casual labour is generally paid on:
A) Monthly basis
B) Weekly basis
C) Daily basis
D) Annual basis

35.                        Regular establishment employees are paid:
A) Daily wages
B) Piece rate
C) Monthly salary
D) Contract basis

36.                        Which Act ensures minimum wages?
A) Contract Labour Act
B) Workmen Compensation Act
C) Minimum Wages Act, 1948
D) Factory Act

37.                        Real wage includes:
A) Only cash payment
B) Bonus and benefits
C) Overtime only
D) Allowances only

38.                        Which accident cause is due to poor lighting?
A) Human cause
B) Mechanical cause
C) Environmental cause
D) Administrative cause

39.                        Workmen Compensation Act applies in case of:
A) Illness only
B) Accident during employment
C) Voluntary injury
D) Alcohol consumption

40.                        Contract Labour Act applies when workers exceed:
A) 10
B) 15
C) 20
D) 50

41.                        Scheduling mainly helps in:
A) Wage fixation
B) Resource optimization
C) Labour law compliance
D) Tender evaluation

42.                        Which chart does NOT show progress clearly?
A) CPM
B) Network diagram
C) Bar chart
D) Resource histogram

43.                        Which activity delay delays entire project?
A) Non-critical
B) Dummy
C) Critical
D) Float

44.                        Which is NOT a management function?
A) Planning
B) Organizing
C) Directing
D) Accounting

45.                        Construction management aims at:
A) Maximum cost
B) Minimum production
C) Maximum output at least cost
D) Maximum manpower

46.                        Stores should not be issued in bulk to contractors to avoid:
A) Delay
B) Pilferage
C) Quality issues
D) Documentation

47.                        Which planning is done after tender acceptance?
A) Pre-tender
B) Contract planning
C) Strategic planning
D) Financial planning

48.                        Which scheduling method is simplest?
A) CPM
B) PERT
C) Bar chart
D) Line of balance

49.                        CPM is best suited for:
A) Highly uncertain projects
B) Probabilistic analysis
C) Deterministic projects
D) Small projects only

50.                        The longest path in network determines:
A) Cost
B) Float
C) Duration
D) Quality

 

Answer Key

1-C, 2-B, 3-C, 4-B, 5-B, 6-C, 7-C, 8-B, 9-B, 10-C 11-D, 12-C, 13-C, 14-B, 15-C, 16-C, 17-B,18-C, 19-C, 20-C, 21-C, 22-C, 23-C, 24-C, 25-C, 26-B, 27-B, 28-B, 29-C, 30-C, 31-C, 32-B, 33-C,    34-C, 35-C, 36-C, 37-B, 38-C, 39-B, 40-C, 41-B, 42-C, 43-C, 44-D, 45-C, 46-B, 47-B, 48-C, 49-C, 50-C

PYQ-BASED MCQs (Previous-Year Question Pattern)

1.     Which management function is called the “life spark” of organization?
A) Planning
B) Staffing
C) Directing
D) Controlling

2.     In CPM, activities with zero float are called:
A) Dummy
B) Free
C) Critical
D) Independent

3.     PERT is most suitable for projects which are:
A) Repetitive
B) Small
C) Uncertain in time
D) Low cost

4.     Line organization strictly follows:
A) Unity of direction
B) Unity of command
C) Division of work
D) Centralization

5.     Resource leveling is applied when:
A) Cost is fixed
B) Duration is flexible
C) Duration is fixed
D) Labour is unlimited

6.     Which document forms the basis of contractor payment?
A) Bin card
B) Indent
C) Measurement book
D) Invoice

7.     Lump sum contract is suitable when:
A) Quantities are uncertain
B) Design is incomplete
C) Scope is well defined
D) Rates fluctuate

8.     Casual labour wages are recorded in:
A) Cash book
B) Ledger
C) Muster roll
D) Bill register

9.     The critical path always has:
A) Maximum cost
B) Minimum activities
C) Zero float
D) Minimum duration

10.                        Which Act regulates employment of contract labour?
A) Minimum Wages Act
B) Contract Labour Act, 1970
C) Factory Act
D) Compensation Act

 

Answer Key

1-C, 2-C, 3-C, 4-B, 5-C, 6-C, 7-C, 8-C, 9-C, 10-B

LONG ANSWER QUESTIONS

1. Explain the functions of management in construction projects.

Management functions include planning, organizing, staffing, directing and controlling. Planning defines objectives, scheduling and budgeting. Organizing establishes authority relationships. Staffing ensures skilled manpower availability. Directing motivates and guides workers. Controlling compares actual progress with planned standards and applies corrective measures to achieve project goals efficiently.

2. Describe CPM and its importance in construction management.

CPM is a network-based project scheduling technique that identifies critical activities affecting project duration. It helps managers focus on crucial tasks, optimize time, control delays and allocate resources effectively. CPM improves planning accuracy and timely project completion.

3. Explain resource leveling and its advantages.

Resource leveling balances demand and supply of resources by shifting non-critical activities within float time. It avoids over-utilization, reduces idle time, improves efficiency and ensures smooth workflow without extending project duration.

4. Explain types of construction projects.

Construction projects are classified into private, state and federal projects. Private projects are owned by individuals or companies. State projects are funded by state governments. Federal projects are national-level infrastructure works like highways and dams.

5. Explain the importance of construction planning.

Construction planning minimizes cost, reduces delays, optimizes resources, prevents conflicts and improves coordination. It ensures systematic execution of work and timely completion within budget.

CASE–1 : Delay in Housing Project

A private housing project was scheduled for completion in 18 months. Due to improper planning, shortage of skilled labour and frequent material delays, the project got delayed by 5 months. The project manager failed to revise the schedule and did not monitor critical activities.

Questions:

1. Which management function was mainly lacking in this project?
2. Name the scheduling technique that could have identified delay-causing activities.
3. Which activities must be closely monitored to avoid such delay?
4. Suggest two corrective measures to prevent future delays.

Expected Answers (Key Points):

• Controlling and Planning
• CPM
• Critical activities
• Proper scheduling, resource planning, regular monitoring

CASE–2 : Resource Imbalance at Construction Site

In a bridge construction project, the contractor deployed a large number of workers during initial stages, while later activities suffered from labour shortage. This caused idle time in early stages and overtime wages in later stages.

Questions:

1. Identify the construction management problem in this case.
2. Which resource management technique should have been used?
3. What is the main objective of this technique?
4. Name one disadvantage if this technique is not applied.

Expected Answers:

• Improper resource allocation
• Resource leveling
• Balanced utilization of resources
• Idle time, increased cost

CASE–3 : Accident at Construction Site

A worker fell from scaffolding due to absence of safety railings and poor lighting. Investigation revealed that no safety inspection was conducted and workers were not trained properly.

Questions:

1. Identify the type of accident cause involved.
2. Which management responsibility was neglected?
3. Name the Act applicable in this situation.
4. Suggest two safety measures to avoid such accidents.

Expected Answers:

• Environmental and administrative cause
• Directing and Controlling
• Workmen Compensation Act
• Safety training, proper lighting, safety rails

CASE–4 : Poor Stores Management

At a construction site, materials were frequently unavailable despite sufficient stock in store records. On inspection, bin cards were not updated regularly and materials were issued without proper authorization.

Questions:

1. Which management area is weak in this case?
2. Name the document used for authorization of material issue.
3. Where should bin cards be maintained?
4. Suggest two improvements in stores management.

Expected Answers:

• Stores management
• Indent
• Store room
• Regular updating, proper record keeping

CASE–5 : Tender and Contract Issue

A contractor quoted a very low rate to secure a government project. Later, he faced heavy losses due to underestimated quantities and increased material costs.

Questions:

1. Identify the mistake made by the contractor.
2. Which type of contract would be risky in this situation?
3. What planning stage was ignored by the contractor?
4. Suggest one precaution while bidding.

Expected Answers:

• Improper pre-tender planning
• Lump sum contract
• Pre-tender planning
• Detailed cost analysis

CASE–6 : Ineffective Supervision

In a road construction project, workers were often absent, quality of work was poor and progress was slow. The site engineer rarely visited the site and instructions were unclear.

Questions:

1. Which function of management is poorly performed?
2. Name two elements of directing involved here.
3. What is the impact of poor supervision?
4. Suggest one corrective action.

Expected Answers:

• Directing
• Supervision, communication
• Low productivity, poor quality
• Regular supervision, clear instructions

CASE–7 : CPM Application

A project has two paths:

• Path A = 20 days
• Path B = 26 days

Questions:

1. Identify the critical path.
2. What is the project duration?
3. What happens if Path B is delayed by 3 days?
4. Can Path A be delayed without affecting project completion?

Expected Answers:

• Path B
• 26 days
• Project completion will be delayed
• Yes, if float is available

 

 

CASE–8 : Labour Payment Issue

Casual labour at a site complained about delayed wages. The site clerk failed to maintain proper attendance records.

Questions:

1. Which document is used for recording casual labour attendance?
2. Which management function is weak?
3. Name one effect of delayed wages on productivity.
4. Suggest one corrective step.

Expected Answers:

• Muster roll
• Controlling
• Low morale, absenteeism
• Timely wage payment