Lecture 3:

Overview of steps in execution of

a project

Dr. Salah Haj Ismail

2019-2020 Engineering Faculty

 2

The Construction management process groups are

Initiating Designing Executing

Planning Operating
Concept
 The Project Management Processes 3

Identifying The Project Management process Groups

The project management process groups are

Initiating Planning Executing Controlling Closing

The groups are a collection of activities that contribute to the

control and implementation of the project management life
cycle
The output of one process group will act as input for another
process group
 4
The Project Management Processes
Identifying The Project Management process Groups

While there is a logical succession and order to the flow of

the processes, process groups will overlap other groups (as
shown in Figure
 Concept of A project

Preparation of preliminary Estimate

Administration approval and Financial Sanctions

Planning and Detailed Design

Preparation of Detailed Estimate
Final Approval and Technical Sanctions

Identification of Agency to Execute Job(notice inviting Tender(NIT)

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 Tender
• A written offer to execute a specified work
within a certain time under certain conditions
of contract between the contractor and the
client for a certain amount of money

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 Notice Inviting Tender NIT
• Public document announcing a work and inviting
interested parties to “bid”
• Details of the condition of the work are also either
indicated or the method of obtaining them is given.
• Depending on the Scale(Estimated Cost) the level of
Circulation Could be different.
• https://www.eihale.gov.tr/
• https://aybu.edu.tr/projelerofisi/custom_page-403-
bap-satinalma-duyurulari.html

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 General Contents of An NIT
• Name of the client inviting tender.
• Pre qualifications if any.
• Nature of Work
• Estimated cost
• Time of Completion
• Conditions while undertaking contract
– General Conditions of Contract(GCC)
– Special conditions of contract (SCC)
. Details of Earnest Money Deposit(EMD)
Details Of Security Deposit(SD) and Performance guarantee.
Last Date ( time) for submission.
Date, Time, and place of tenders opening
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 Earnest Money Deposit(EMD)

- while submitting a tender the contractor has to deposit a

certain amount of money say about 2 percent of the
estimated project cost with the client as a guarantee for
the earnestness of the bid.
EMD can be forfeited by the client, if the bidder wants to
withdraw the bid after the opening

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 Security Deposit (SD)
• Security deposit: is deducted from running
account bills; we will talk about running
account bills later on as funds available to the
client for any repair of the work during the
defect liability period.
• This money is refunded to contractor after this
defect liability period has lapsed( and no
defect is pending for rectification)

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 Letter of Intent and performance Guarantee

- The client identifies the agency to whom the

works to be awarded, and issues a letter of
intent(LOI) asking the bidder:
*invites the bidder to deposit a performance
guarantees let us say 5 percent of the
award value.
*Mobilize and start the work, the date of
start is defined in LOI)
This performance guarantee is released after the
issue of completion certificate by the client, if the
performance (time, cost…etc) during the
execution found satisfactory.
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 Evaluation of bids and identifying contractor

the bids may be evaluated on the basis of lowest cost alone

In some cases, technical competences, Financial soundness, Safety
Record..etc may also be part of evaluation process.(submitting
documents)
Bids are invited in two parts( technical and financial) and opened
Separately)
Financial bids are usually opened only for thos bids which qualified
technically.

the evaluation can be based on only the cost for the technically qualified
bidders or ,
It could be based on a composite score based on evaluation of technical
and financial bits.
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 NIT

Evaluating bids based on bidding Criteria

Award of job and signing contracts

Mobilization Advance
Starting the construction work
• Checking Documents and financial records
• mobilization advance is given to the contractor by the client to initiate
construction activities at site; it is recovered from running account bills

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• construction projects may go on for long periods of time and
involve substantial commitment of resources. Therefore:
• The contractor will need to be paid periodically for the parts
of the work that are completed.
• A provision for escalation in agreed prices and also critical
items such as steel or cement could be made available by the
client at a fixed rate with some conditions

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 Different types of contracts
• lump sum
• turnkey
• item rate
• build,own, operate and transfer (BOOT).
• engineering procurement and
construction(EPC).
• find out more about these types of contracts
• have a specific simple project in mind

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 Project

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