Concept, Characteristics, Life cycle and

the Phases of the Construction Project

Submitted to: Submitted by:

Mr. Vishwa Nath Khanal Prakanda Dawadi (072MSHPE011)
Prakash K.C. (072MSHPE012)
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Contents
Definition and Concept of Construction Project.............................................................................3
Characteristics of Construction Project...........................................................................................3
Project life cycle..............................................................................................................................4
Project Initiation:..........................................................................................................................5
Project Planning:..........................................................................................................................5
Project Execution:........................................................................................................................5
Project closure:.............................................................................................................................6
Different Phases in a Construction Project......................................................................................6
1. Pre Project Phase:.................................................................................................................6
2. Planning and Design Phase:..................................................................................................9
a) Planning and Feasibility stage...........................................................................................9
b) Design Stage.....................................................................................................................9
c) Development of Contract documents:.............................................................................10
3. Contractor Selection Phase.................................................................................................10
4. Project Mobilization Phase:................................................................................................11
5. Project Operation Phase:.....................................................................................................11
6. Project Closure and Termination Phase..............................................................................12
Definition and Concept of Construction Project
Any project is not just a way to make or do something but it’s an opportunity to achieve some
desired result by implementing a systematic management approach. So, it is important to
understand the definition and key characteristics of construction project.
A project is a great opportunity for organizations and individuals to achieve their business and
non-business objectives more efficiently through implementing change. Projects help us make
desired changes in an organized manner and with reduced probability of failure. Projects differ
from other types of work (e.g. process, task, procedure). Meanwhile, in the broadest sense a
project is defined as a specific, finite activity that produces an observable and measurable result
under certain preset requirement.
It is an attempt to implement desired change to an environment in a controlled way. By using
projects we can plan and do our activities, for example: build a garage, run a marketing
campaign, develop a website, organize a party, go on vacation, graduate a university with
honors, or whatever else we may wish to do.
Construction is the installation and assembling activities for the equipments and materials at the
site in accordance with approved construction drawings, procedures and specifications. The
Construction requires large number of skilled construction labors and construction equipment
until the plant is mechanically completed. The Construction work complies with local laws and
regulations, especially local labor laws, environment and safety requirement.
A construction project is set of activities performed to achieve construction of pre-desired quality
and quantity within certain time frame and budget frame.

Characteristics of Construction Project

Every project has its own characteristics set aside so that it can be completed within budget and
time. As cost and time for a construction project are interdependent, these should be carefully
planned. An increase or decrease in construction project time affects the budget of construction
projects. These set characteristics define the projects and helps in completing the project in time.

 A project has a specified target.

 A project is unique and cannot be replicated with the same task and resources giving the
same results.
 The construction project should satisfy the owner’s requirement and expectations from
the project.
 The construction project is not a routine work, although there are some aspects that are
routine.
  The construction project consists of a number of associated activities contributing to the
project as a whole.
 The time limit for completion of project is defined.
 The Construction project is complex and it involves a number of individuals from
different departments. So, right coordination shall be setup within departments.
 The project manager must be flexible to accommodate any change that might occur
during the project.
 There are factors of uncertainty such as the performance of individuals, how their skills
adapt to unfamiliar work, and other unknown external influences.
 The total cost of construction project is defined and project has target be completed
within the given budget.
 The project should provide unique opportunities to acquire new skills.
 The project gives authority to the project manager to adapt to working under changing
circumstances, as the nature of the project can change.
 There are risks with each step of the project, and the project manager should manage
those risks to reach the project goal.

Project life cycle

The lifecycle of project starts from the conception of project by client. It includes various phases
in which the involvement of different technical, administrative as well as other expertise is
required. The life cycle of a construction project can be seen in the diagram below.
Project Initiation:
The problem and the set of objectives is defined during the initiation of project. The problem is
identified, various course of action to solve the problem is determined in this phase. The
necessary staff to carry out the project is assigned in this phase, the necessary planning for
succeeding phases is outlined in this phase. Generally, the following actions are carried out in
this phase:
 Identification of problem or conception of business
 Feasibility study
 Development of alternatives
 Development of terms of reference
 Appoint a project team
 Set up a project office
 Perform phase review
Project Planning:
As the purpose and the outcome of a construction project is defined, the project goes into full
planning phase. In this phase the detailed planning and design of project is done. Following
actions are carried out in this stage of project life cycle:
 Outlining of activities their interdependencies and time frame
 Planning of resources (labor, material and equipment.
 Financial plan and cost analysis
 Quality assurance plan and control measures
 Risk plan their identification and mitigation measures
 Acceptance plan
 Communication plan
 Contract plan

Project Execution:
In this stage of project life cycle all the plans prepared in project planning phase is implemented.
The necessary managerial actions to control and deliver the desired output is carried out. The
execution of different tests is done to ensure the quality of product being delivered. In this stage
following actions are carried out:
 Execution of plans from planning phase
 Establishment of necessary management procedures to monitor and control the output
 Identification of changes, risks and application of mitigation measures
 Execution of quality assurance plan
After finishing all the process in execution process the construction delivers a constructed project
and the project is now ready for closure.

Project closure:
After the execution of project is complete the project advances to its closure. In this stage of
project lifecycle, the construction project following things are done:
 the product is handed over to the client
 termination of contract
 releasing the resources used
 notification of completion of project to all the stake holders
 conduct post implementation review to measure the level of success of the project
 suggestion of lesson learnt and recommendation for future projects
Different Phases in a Construction Project

A construction project can be divided into six different phases. Different phases have their own
set of objectives and activities. The phases do not necessarily have to come one after another, but
can also overlap during same time.

1. Pre Project Phase:

In this phase of construction, the client (owner) is responsible for the conception of project. The
project deliverables are defined, the method of construction contract and its controlling measures
are also defined. At first the owner fixes the type of construction method or contract that is going
to adopted in the project. The relation between client, construction company(contractor), and
consultant differs greatly form project to project on the basis of type of contract method used.

 Selection of project delivery system:

He/she may select from various method of project delivery system like below:

 Design tender and Build Method: this method is traditional and was widely used in
construction projects. In this method the owner hires an agency to prepare preliminary
planning and design then on the basis of the contract document developed a contractor is
selected. This method separates the design and planning responsibility from construction
and the parties are involved different. There is no risk of coordination because the design
part is complete before construction. But the passed construction cannot be achieved
from this method and the owner have to administer the design and construction contracts.
 Design Build: In this method a single organization is responsible for the design planning
and construction of construction. The development of project is sole responsibility of the
contractor which enables us to adopt the phased construction. In this type of system there
is little control on project by the owner.

 Document and construct: In this method at first the design is performed under contract
to owner. Later in construction phase the design is performed under contractor.
 Turnkey: In this method everything including the planning, design, and construction.
The owner relies on the contractor for entire project. In this method the owner gives up
his almost all his rights voluntarily to contractors. For this type of method to be in use the
development of scopes and detail planning and vision is required at the beginning of the
project.
 Build – Own- Operate and Transfer: In this type of method the owner relies on the
sponsor for the design and building of project. The risks are transferred to sponsor by the
owner. The sponsor conducts the detailed cost analysis and if feasible they invest on the
project. Sponsor does planning and design of project, construct and goes for operation.
After the completion of project, they operate the project for some period. Then the project
is transferred to the owner. When the owner does not have sufficient funding and
technology available by themselves this type of method is used. The risks are mainly
born by the contractors. This method requires large upfront investment. Mainly huge
projects like hydropower development are completed using this method.
 Joint Venture: if one contractor lacks the technology and manpower to carry out the
project solely, the joint venture method of delivery is used. in this type of contract, the
strength of each parties involved is used to tackle the differences allowing combined
expertise to build large projects. This method requires perfect coordination and
communication and clear agreement between the parties involved.
  Force Account: in this method the construction is done by the owner itself. Owner has
direct control of the project. This method is done without tendering process.

 Evaluation of Project Delivery System:

Among above project delivery system, the owner chooses a best alternative and proceeds
to the contracting of project. The contract documents are prepared accordingly and
tendering is done. The selection of project delivery system depends upon the various
factors like risks, speed of execution, cost control, quality control, technology and
manpower available etc.
 Selection of type of Contract:
After selecting the best method of delivery for particular project. The type of contract is
decided and the basis of payment is also selected. Some of the type of contract are
 unit rate method
 lump sum or fixed price method
 Cost plus

2. Planning and Design Phase:

This phase of construction project life cycle includes various actions done prior to the selection
of construction agency. This phase mainly includes three stages. First would be the feasibility
stage the project’s purpose, scope and significance is defined. After the feasibility study of the
project is conducted. In second stage the design of the project is done. Schematic design, layout
and the relationship between various parties involved is developed. Design drawing, calculation
of structural members cost analysis, estimation etc is carried out in this stage of planning and
design phase. After this the final stage is the contract development stage. Based on the above
feasibility studies, design and the construction delivery method selected in previous phase a
contract documents are prepared. In the planning and design phase various experts are involved
and the coordination between them is necessary.
a) Planning and Feasibility stage: In this stage at first the objectives, goal, and nature of
project by involved parties. After that a relation between the owner and the construction
organization have to be developed with defining the duties and responsibilities of each
parties. Following steps are followed in a planning and feasibility stage:
 Selection of consultant
 The brief statement of project is developed
 Identification of alternatives
 Site investigation
 Constructability analysis
 Public participation
 Analysis of available standards and codes
 Primary cost estimation
 Financial feasibility analysis
 Project recommendation
 Site selection and land acquisition

b) Design Stage: After the selection of particular alternative. The most important
decisions regarding the design are already done previously in earlier stage but refining
of construction plan is done to achieve the optimum results from selected alternative.
Based on previous decisions the design of construction project is done in following
stages:
 Schematic Design: Preliminary drawings (can be freehand sketches too)
and written report is submitted to owner which is to be approved by owner.
Architects develop a conceptual plan, sectional and elevation views,
engineers develop the concepts by which various elements like geology,
structure etc. fit together.
 Design Development: in this stage the schematic design developed
previously are developed into detailed designs for constructions. It includes
detailed civil, mechanical, geological, electrical, plumbing designs. These
design are more detailed and specific than the schematic designs.

c) Development of Contract documents: in this stage all the design elements and
decisions made in previous stages is converted into documents which aids in the
development of contract documents. Completion of this stage paves the way for the
selection of contractors and procurement of materials and equipment. Contract
document include the following elements:
 Design drawings
 General Conditions of contract
 Special conditions of Contract
 Specifications
 Schedules of quantity
  Tender invitation notice
 Instructions to tenderers
 Tender Form
 Agreement
 Security bonds and insurance documents

3. Contractor Selection Phase

After the completion of planning and design phase of construction project contractor
selection is done. The contractors file application for the job and the owner selects a
contractor among them. The construction organization or person is selection based on the
contract and the project delivery system. Various steps in contractor selection process are
given below:
 Pre/Post- qualification: this steps bars the incompetent contractors from applying
for tender based on the experiences, technological qualifications. It makes sure
that the contractor is qualified, experienced, responsible and able to complete the
job.
In post qualification the low bidding tenderer is required to submit information
about their qualification to check their competency.
 Open tender: Owner invites tender and the interested construction firms apply for
the job based on the qualifications stated by the owner.
 Negotiation may be done to state various statements in conditions of contract to
dictate the responsibilities of each parties.
 After the negotiation and the formation of contract document contract agreement
is done

4. Project Mobilization Phase:

This phase of construction project deals with the various procedures between the
awarding of contract and the beginning of construction works. Some of these works has
already begun in the previous phases. It deals with all the works related to insurance,
planning of works and quality control plan. Various works done in this phase of
construction project are given below:
 Legal and contractual issues
 Insurance
 Permits consent and license
 Security Bond
  Partnering
 Planning and Scheduling
 Work Break down structure
 Bar-charts
 Network Charts
 Cost analysis and cost control plan
 Quality control plan
 Operation Modelling

5. Project Operation Phase:

This phase is the stage of actual performance of construction in field. All the previous
planning and design done leads to this phase of construction. In this phase the monitoring
and control of various activities of construction is done to gain the required output.
Resource management, management of equipment and personnel is also done in this
phase. It also describes communication and documentation issues between various units
of project operation phase. It also deals with measurements and progress payment,
variation and document management responsibility. The various aspects of project
operation phase are given below:
 Monitoring and Control: it is achieved by formation and updating of work
schedule, cost control techniques by collecting and analyzing data from field
and reporting it accordingly.
 Quality management
 Safety management
 Environmental management
 Resources management
 Document and Communication
 Dispute Resolution and Legal measures

6. Project Closure and Termination Phase

This is the final phase of construction project. All the jobs are finalized in this phase. This
is also called commissioning of project. The project to be successful, this phase should be
taken seriously and all the actions should be completed. This phase can be divided in two
parts as below:
 Completing the works: All the construction works are concluded in this step. It is
done in following steps:
 Testing and startup
  Cleaning up
 Preparation of punch lists
 Inspections of product
 Beneficiary Occupancy in case of delay
 Handing over of keys
 Personnel actions
 Closing of project office
 Closing out the project: After completing of all the tasks assigned the closing out
of project is done. It handles project financing and completing all the necessary
documentation. The following steps are done in the closing out of the construction
project.
 Payment to subcontractors
 Final release or wavier of liens
 Consent of surety
 Final quantities
 Request for final payment
 Liquidated damages are considered
 Final Payment and release of retention money
 Final accounting cost control completion

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