PROJECT DEVELOPMENT

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PROJECT DEVELOPMENT
ARE 413 CONSTRUCTION MANAGEMENT CLASS -3 By
MOHAMMED JALALUDDIN LECTURER CONSTRUCTION
ENGINEERING MANAGEMENT DEPT Handout 4
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Presentation Outline

• Phases of a construction project
• Planning
• Design
• Construction Procurement
• Construction
• Post construction
• Notice to Bidders

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Objectives of Class

• To acquire a working knowledge of the principal
  project phases.
• To identify activities associated with each
  phase of a construction project.
• To provide an understanding of the design and
  construction process and the roles of the
  different participants, and the types of
  documents produced during each phase

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Major Project Phases

• The major phases in the project cycle that are
  common to most design and construction projects
  are
• Project Planning
• Design
• Schematic Design
• Design Development
• Contract Documents
• Construction Procurement (Bidding Phase)
• Construction
• Post Construction

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Cost-Influence Curve
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Project Life Cycle
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Project Need

• 1 st step in any project
• Owner establishes a need
• Conceptual definition
• Economic considerations
• Projection of demand
• Time frame to meet market need
• Depends on location, resources, and available
  labor
• Feasibility study
• Critical information for decision makers

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Formal Need Evaluation

• Input required for decision process
• 1. Cost/benefit analysis
• Compare estimated cost versus revenues
• Two types of benefits
• Tangible ()
• Intangible (improve quality of life)
• 2. Plans of the facility (sketches, graphical
  representation)
• 3. Cost Estimate (conceptual)

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Cost/Benefit Analysis

• Commercial/Profit based projects
• Comparison of project costs against expected
  revenues
• Public or Non - profit based projects
• Tangible benefits ()
• Expected amount of revenues generated (ex.
  Electricity)
• Intangible benefits
• Related to quality of life
• Ex Dam project, highway projects, water
  treatment plants, etc.

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Conceptual Drawings Estimates

• Conceptual documentation
• Provides funding sources with a better
  understanding
• Conceptual design package includes
• Drawings
• Architectural renderings, sketches, and layouts
• Estimates
• Cost estimate based on conceptual drawings
• Supporting budget for the project
• Amount of documentation is based upon
  complexity of the project.

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Preliminary Detailed Design

• A/E is obtained by owner to produce
• Set of plans drawings indicating work to be
  accomplished
• Specifications verbal description of
  construction and quality
• Completed set of documents are legally binding
  elements of a contract.

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Preliminary Design

• 1 st Step in document production
• 40 of completed design
• Offers time to review plans and specifications
• All engineering disciplines involved
• Structural, Mechanical, Electrical, Civil, etc.
• All disciplinary designs become interlinked
• Sizing of units are determined
• Preliminary estimate is developed based upon
  preliminary designs ( 20 accuracy)

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Final or Detailed Design

• 2 nd step in document production
• Decisions on all aspects of the project are
  made
• Exterior/interior finishes
• Precise locations of utilities
• Design of substructure and superstructure
• Specifications are finalized
• Detailed estimate
• Based upon detailed set of plans
• 3 accuracy

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Final or Detailed Design (contd)

• Owners Estimate helps
• 1. Ensure project is within financial resources
• 2. Establishes a reference point
• Bids may be rejected
• Owner reserves the right to reject bids
• Once complete, owner approves/disapproves
  design
• If design is approved, owner advertises the
  project

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All we do is put it on paper. Its your job
to build it.
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Notice To Bidders

• Notice To Bidders
• Announces to bidders a project is being let for
  bid
• Owner is ready to receive bids
• Seeking Lowest Bid Price
• Job advertisement to qualified bidders
• Advertisement Methods
• Public vs. Private
• Difference is determined by funding

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Notice To Bid Information

• Notice To Bid contains
• General description of project
• Type, size, location
• Availability of plans and specs.
• Plan fees and pick-up locations
• Time, place, and date of bid opening
• Required Bid Bond/Bidding Security
• Proposal information
• Describes what shall be include in submitted
  proposal

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He was the lowest bidder
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Prequalification

• Owner makes certain that the selected contractor
  is capable of performing the work described
• Before considering a bid, owner may decide to
  prequalify all bidders
• Each bidders submits documents that establish
  firms expertise and capacity in similar
  construction
• Prequalification Why
• Owners has a doubt regarding the contractors
  ability to complete construction or perform the
  work

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Cont.
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Phase 1 Project Planning

• The planning stage of the project
• During this phase of the project the owner
  makes decisions that set the tone for the
  project. All projects begin with an idea or a
  need
• During this stage the owner
• selects the project site, and
• establishes a conceptual estimate, schedule.
• The most critical decision that is made during
  this project phase is to make a decision as to
  whether or not to proceed with the project
  (called a go/no go decision).

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Phase 1 Project PlanningPhase Activities

• Feasibility studies
• Facility programming
• Budgeting
• Project delivery system selection
• Scheduling
• Site selection/acquisition
• Site investigation
• Financing
• Design services procurement

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Phase 2 DESIGN PHASE

• Design process involves
• Schematic Design
• Talk to owner, rough sketches
• Design Development
• Major Systems component selected
• Contract Documents
• Preliminary Cost estimate
• Develop Preliminary working drawings
• Develop working drawings with Specifications

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Schematic Design

• The A/E reviews and evaluates the owners program
  and budget requirements and discusses with the
  owner alternative approaches to the design and
  construction
• During schematic design, the A/E prepares
  conceptual design documents. These may include
  Preliminary sketches ,Small scale schematic
  plans, elevations, sections, diagrams,
  renderings, and other graphic and written
  documents, General written description of
  project.
• The completion of the schematic design phase
  represents approximately 30 percent design
  completion for the project

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Design Development

• The design development phase takes the project
  from about 30 percent to approximately 60 percent
  design.
• It is the time when the design team will be
  evaluating and selecting all the major systems
  and components of the project.
• During this phase of the project the design
  team is involved in the evaluation and
  finalization of all the architectural components
  and project systems.
• The project's budget and schedule continue to be
  monitored and adjusted.

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The Architectural Design Process - General
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Architectural Fee - Payment Schedule
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Construction Bid Documents
Architect
Structural Engineer
Mechanical Engineer
CAD Drafting Software
Construction Bid Documents
Specifications
Architectural Drawings
Structural Drawings
Mechanical Electrical Drawings
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Phase 3 Construction Procurement

• Contractor qualification/bidder list
• Solicitation
• Proposal preparation
• Bid/proposal opening
• Bid/proposal evaluation
• Award of contract
• Final negotiation

Phase 4 Construction

• Mobilization
• Subcontracting
• Purchasing
• Permits
• Site preparation
• Foundations
• Interior finishes and equipment

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Phase 5 Post construction

• Start-up and testing
• Leasing
• Tenant improvements
• Move-in
• Operation
• Correction
• Repairs/maintenance
• Building evaluation

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Development, Design, Construction, and
Management Process

Contractors
Developers
Owners
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CONCLUSION

• The major phases in the project cycle are
• Project Planning
• Design
• Schematic Design
• Design Development
• Contract Documents
• Construction Procurement (Bidding Phase)
• Construction
• Post Construction( Occupancy)