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CONSTRUCTION MANAGEMENT

CHAPTERIII
PROJECT INITIATION

During project initiation, the Agency plans how the authorized project is to be implemented.
Planning begins by fleshing out what the project is to deliver and documenting the result in the
PRD. The Agency then considers what approach to take to manage and carry out the work to
implement the project, selects the project delivery method, assesses the type and size of
resources needed for the project, and documents these in the PMP. Planning concludes with
establishing the selected project management organization through the assignment of Agency
staff to the project and retaining of a Program Management Consultant (PMC) for the project
management work where the Agency does not have staff resources with the necessary skill and
experience. Early in a Project, the Owner must select a process for design and construction.
There are many choices, each with advantages and disadvantages. And the process selected
may affect financing; selection of team members; and the project cos quality, and schedule.

Early Planning in U.S.A


This planning guide was developed in a collaborative effort between partners.

Recognize the federal environmental requirements and factor in the associated expenses

for the project;

Designate the responsible party to fulfill these requirements;

Complete the requirements by filing the necessary paperwork, performing the required

activities, and obtaining the essential permits; and

Identify additional sources of information to help implement these requirements

throughout your project.

The guide contains two parts. Part I presents background information on environmental
requirements for the construction and development industries. It also contains a checklist to
help assign environmental responsibilities. Part II contains seven self-audit checklists that help
construction companies evaluate their compliance status in these seven areas once the project
has commenced.

This guide can be used at the following stages of your project:


Pre-Bid
A clear understanding of the federal environmental requirements is necessary even at the
pre-bid phase. Not including the cost of complying with environmental requirements up front
can lead to cost overruns or profit loss in the future. By using this document, owners/developers
will be able to determine the level of effort needed to comply with the requirements, and the
contractors/subcontractors can more accurately include environmental compliance costs in their
bids.
Pre-Construction
If you do not assign responsibility for environmental compliance before you start the project,
some important steps may be omitted during construction. Prior to breaking ground, you should
sit down with the other members of the construction team, and use this document to assign
responsibility for meeting your environmental obligations. Section II in Part I of this guide
contains a checklist of required tasks for each federal environmental regulation associated with
the construction process. By completing these checklists prior to breaking ground, you will help
ensure that your environmental requirements are not overlooked during construction.

During Construction
No matter how thoroughly you prepare for a construction project, you may still encounter
unexpected situations requiring environmental knowledge and understanding. You can use
this guide as a reference tool to find answers to questions that you encounter during the
construction process. It identifies many resources you will find useful. Additionally, the seven
self-audit checklists contained in Part II of this guide will help you apply the knowledge gained
in Part I to your actual construction site.
With the help of this document, you can properly manage your environmental responsibilities,
and therefore reduce the risk of future enforcement actions and penalties.

Design and Construction


The design and Construction Projects progress through three phases:

Project definition

Design and

Construction

It should be mentioned that for a total project, there are business planning steps that precede
design and there is an operations and maintenance phase that follows construction.

Project definition
It sets the stage for design work, the design work sets the stage for construction work. The
project definition phase involves discovery to identify and analyze project requirements and
constraints.
The project can be generally classified into three sectors:

Buildings

Infrastructures

Process

For Building-sector projects, where the architect is the prime designer, the design follows 3
stages:

Schematic design produced the basic appearance of the building

Design development defines the functional use and system in the project

Contract documents plans, specifications for constructing the project

For Infrastructure, includes transportation system, such as city streets, country roads, federal
and state highways, airports and navigational waterways, which is the prime designer is the
engineer.
For Process-sectors projects include chemical plants, oil refining, pharmaceuticals, pulp and
paper and electrical generating

Private versus Private Project


Private-sector project is typically a business that provide goods and service for a profit.
Examples include commercial retail stores, manufacturing facilities, industrial process plants,
and entertainment facilities, since the owner is a private business, the business administrators
have the flexibility to choose any engineering and construction services.
Public-sector project is typically a government agency, such as city, country, state or federal.
Examples include local school boards, state highway departments, of the federal department of
energy and defense. For public-sector projects the owner typically uses the competitive-bid
method based on the lowest bid price for securing engineering and construction services.

Contractual Arrangement
Project management requires teamwork among three principal contracting parties.

Owners team must provide the project needs, level of quality expected, permissible
budget and required schedule.

Designers team must develop a set of contract documents that meets the owners
needs, budget, required level of quality and schedule.

Contactor team must efficiently manage a physical work required to build the project
in accordance with the contract documents.

There are numerous combinations of contract arrangement for handling a project,


bellow are 4 simplest form.

Design/Bid/Build commonly used for projects that have no unusual features and welldefined scope. It is a three-party arrangement involving the owner, designer and
contractor.

Design/Build contract that is often use to shorten the time required to complete a
project or to provide flexibility for the owner to make changes in the project during
construction.

Construction Management ( CM ) this contract is a four party arrangement involving


the owner, designer, CM firm and the contractor. The CM basic concept is that the
owner assigns a contract to a firm that is knowledgeable and capable of coordinating all
aspects of the project to meet the intended use of the project by owner.

Owner/Agent Arrangement is sometimes use for handling a project. Some owners


perform part of a design with in house personnel and contract the balance of the design
to one or more outside design consultant.

Owners
There are 2 general types of owner:
Single-builder owners organizations that do not have a need for project in a repetitive basis,
normally have a limited project staff, and contract all design and construction activities to
other organization.
Multiple-builder owners generally large organization that have a continual need for projects,
and generally have a staff assigned to project work.

Phases of a Project
Owners Need for
project

Request for engineering study

Conceptual configuration and alternatives for


technical feasibility
Development of cost and schedule for each
alternative

Review by owner
Economic analysis for rate of return, Pay back
period, Capital recovery or benefit/cost ratios
Owner request for
further study of
project

Owner authorizes project and


selects project delivery method

Final design of project


Detailed drawing, written specifications, and
preparation of contract documents

Procurement of Bulk
materials, special
equipment, construction
contract

Construction contractors
administration of contracts
for physical work in place

Project close out


System testing, final
inspection, as-built
drawings

Owner abandons
project

Owners Study
A project starts as a need by the owner for the design and construction of a facility to produce a
product or service the need for the facility may be recognized by an operating division of the
owner, a corporate planning group, a top executive, a board of directors, or an outside
consulting firm. Generally one or more person within the owners organization are assigned to
perform a needs assessment to study the merits on pursuing the project.
The first requirement of thee owner is objective setting. It provides focus for scope definition,
guides the design process and influence the motivation of the project team. The process of
setting objectives involves an optimization of quality, cost and schedule.
The owners study must conclude with a well-defined set of project objectives and needs, the
minimum requirements of the quality and performance, an approved maximum budget, and a
required project completion date.