PROJECT DEVELOPMENT

PROCESS
LECTURE: 1
PROJECT DEVELOPMENT PROCESS
For an effective and efficient construction and project management it is
very important to know the project development process. The project
development of a project varies from Private to Public Sector. However,
the basic concept remains same which includes the following steps:
1. Project Concept / Project Charter
2. Project Studies, Investigations and Feasibilities
3. Project Proposal / PC-I
4. Project Approvals & Fund Releases
5. Design and Specifications
6. Tendering and Contracting
7. Construction & Installation
8. Testing and Commissioning
9. Operation & Maintenance
 Project Life cycle
(Conventional Delivery Method)

Conceptualization

Need based
Assessment
Efforts/
Cost
Cumulative
Cost/Efforts

Termination
Inception Planning & Desig- Doc. T&C Execution Time
Feasibility ning Erection/Installation/Construction

Designing
• Conceptual Design Execution
Planning & • Preliminary Design Documentation • Design
Feasibility •Detail Design • Drawings Implementation Termination
• Installation and •Testing as per
- Architectural
• Technical - Geotechnical • Specifications
Feasibility - Structure •Preparation of Erection specification (NDT)
- HVAC •Commissioning3
•Economical •Tender documents •Construction
Feasibility
- Finish Work
•M&E • Final settlement
 4

Project Lifecycle
(Public Sector Projects)
Planning phase Execution of project Termination
(Design, Erection/Installation/Construction)
Degree of risk
Impact/
Degree
of risk

Cumulative Cost

PC-I Project Project

PC-I Project
Preparation Pre-PDWP Terminal Impact
Approved Performance
Efforts/ Project Evaluation Evaluation
Concept Monitoring
Scrutiny
Cost Clearance (PC-IV) PC-V
(Project (PC-III)
PC-II Appraisal)

Origination Time
Project Initiation
Project Planning
Approval
Project Execution
Project Close out
Implementation
 Total work
Project Planning& Design Tendering & Construction Operation
Initialization Feasibility Contracting

Organizational capability
I1 P&F 1 D1 T&C 1 C1 O1
I2 P&F 2 D2 T&C 2 C2 O2
I3 P&F 3 D3 T&C 3 C3 O3
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i2 p&f 2 d2 t&c 2 c2 o2
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Hired services (contact or sub contract)

 6

Project Development
Process
Pre-investment Questions to be Answered
in the Project Concept / Charter / Proposal
• What to be done? Scope of Project / Nature of activities

• Why to be done? Objectives

• Where to be done? Location of activity

• When to be done? Phasing of activities.

• What cost / benefits? Physical (Financial). Human (Social)

• What plan of action? Organization, Management

• Who will benefit? Target group

i. Project Concept & Charter
A Project Concept is as
short as a sentence and
no longer than a page.
The format of a project
concept resembles
a concept statement and
often includes the
following sections:

• Project Name
• Strategy
• Rough Cost
• Client
• Project-concept
• Background
• Objectives etc.
i. Project Concept & Charter
• A Project Charter is also known as a project definition document is a
formal and short document that clearly defines the project vision,
objectives, scope, goals, client, stakeholders & participants and the
teams involved in the project.
• As per the PMBOK Guide, the project charter is an official document
that formally authorizes a project or a phase and documenting initial
requirements that satisfies stakeholders’ need and expectation.
• It is a key document which explains why the project is needed, how
long the project will take to complete, which resources are needed and
how much will it cost.