Lecture 3: Project Chronology

Project Chronology
Project Initiation

Feasibility

Design

Procurement

Construction Turnover

Operation

Disposal

Gould and Joyce: Construction Project Management, 3rd ed. © 2009 Pearson Education, Upper Saddle River, NJ 07458.
All rights reserved
 Project Initiation

◼ All construction activity is the result of basic economic demand

◼ Individual consumer demands – homes, roads, etc.

◼ Both corporations and government bodies may act to fulfill

these needs

◼ Construction activity tends to foster further construction activity

(e.g., Gawadar port)

◼ Construction – a direct result of increased business activity –

invest for expanding business and running operations

Gould and Joyce: Construction Project Management, 3rd ed. © 2009 Pearson Education, Upper Saddle River, NJ 07458.
All rights reserved
 Feasibility Study
Initiation

Cost Schedule
Budget Market need/ Demand
(construction + financing) (time to market)

Revise/Cancel Proceed

Design

Gould and Joyce: Construction Project Management, 3rd ed. © 2009 Pearson Education, Upper Saddle River, NJ 07458.
All rights reserved
 Financing

◼ Debt + Equity (Mix)

◼ Banks / Insurers / outside investors (partners)

◼ Financiers must also find the opportunity as

attractive

◼ Issues in financing may lead to project cancellation

Gould and Joyce: Construction Project Management, 3rd ed. © 2009 Pearson Education, Upper Saddle River, NJ 07458.
All rights reserved
Design
◼ At this stage, the owner:

◼ Hires a design professional, and/or

◼ Construction professional (obtain advice on cost,

schedule, and construction aspects)

◼ The design in broken down into several

stages to provide milestones for the owner to
review progress

Gould and Joyce: Construction Project Management, 3rd ed. © 2009 Pearson Education, Upper Saddle River, NJ 07458.
All rights reserved
 4 Stages of Project Design

Programming

Schematic Design

Design Development

Construction Documents

Gould and Joyce: Construction Project Management, 3rd ed. © 2009 Pearson Education, Upper Saddle River, NJ 07458.
All rights reserved
 Design Phase I: Programming
◼ A written statement of the requirements of the
buildings (needs and functions)
◼ Owners need to:
◼ Establish building population and functions to be housed
within the facility, required spaces and services
◼ Select desirable systems (mechanical, electrical, plumbing)
and materials
◼ Define budget and timeframe for construction: to include
any key milestone turnover dates

◼ Written by owner or consultant

◼ Project sophistication matters

◼ Go/no-go decision
Gould and Joyce: Construction Project Management, 3rd ed. © 2009 Pearson Education, Upper Saddle River, NJ 07458.
All rights reserved
 Design Phase II: Schematic Design
◼ Preliminary Design of the Project
◼ Designer defines building characteristics
◼ Contents of Schematic Design

◼ Site & Location of the project, alternative design

schemes, Rough floor plans, building’s visual form

◼ Architects: compare the alternative design options

◼ Construction Manager: break-down the construction

work, square foot pricing, long lead items, materials hard
to purchase

◼ Go / no-go

Gould and Joyce: Construction Project Management, 3rd ed. © 2009 Pearson Education, Upper Saddle River, NJ 07458.
All rights reserved
 Design Phase III: Design
Development
◼ Focuses on the design of major building systems
◼ A single design concept is pursued
◼ Delivery of Design Development
◼ Architectural, structural, mechanical and electrical systems refined floor
plan, elevation plans and section plans, plumbing, elevator, exterior
façade, outline specifications – detailed and finalized
◼ Users provide detailed information (number of electrical outlets,
sinks needed in the laboratory)
◼ Responsibilities
◼ Architects: selecting all the major systems and components
◼ Construction Manager: Evaluating the cost and schedule and conduct
value engineering
◼ Go / no-go
Gould and Joyce: Construction Project Management, 3rd ed. © 2009 Pearson Education, Upper Saddle River, NJ 07458.
All rights reserved
 Design Phase IV Contract
Documents
◼ Complete a set of well-defined working drawings and
technical specifications

◼ Delivery of this phase

◼ Contract Documents (drawings, specifications)

Gould and Joyce: Construction Project Management, 3rd ed. © 2009 Pearson Education, Upper Saddle River, NJ 07458.
All rights reserved
 Procurement Phase
◼ Contractor/ contractors selection

◼ Bidding

◼ Award of contracts/ Notice to proceed

◼ Supplier and subcontractor selection

◼ Long-lead items procurement (owner or CM)

Gould and Joyce: Construction Project Management, 3rd ed. © 2009 Pearson Education, Upper Saddle River, NJ 07458.
All rights reserved
 Construction Phase
◼ Perform construction

◼ Scheduling the crews in the proper sequence

◼ Choosing the most efficient construction method

◼ Monitor schedule, cost, quality and safety

◼ Contract administration by owner, designer and

the contractor - (manage scope changes,
payments and financial control, etc.)
Gould and Joyce: Construction Project Management, 3rd ed. © 2009 Pearson Education, Upper Saddle River, NJ 07458.
All rights reserved
Turnover and Startup
◼ Project is turned over to the owner after
construction for the rest of its economic life

◼ For buildings, some important aspects include:

◼ Systems Testing
◼ Training
◼ Collect Warranties
◼ As-Builts
◼ Certificate of Occupancy

Gould and Joyce: Construction Project Management, 3rd ed. © 2009 Pearson Education, Upper Saddle River, NJ 07458.
All rights reserved
Operation of the facility

◼ The facility is used for its intended purpose until

the end of its useful life

◼ Responsibility of the owner

◼ It is the period of greatest expenditure on the

project (operational costs)

Gould and Joyce: Construction Project Management, 3rd ed. © 2009 Pearson Education, Upper Saddle River, NJ 07458.
All rights reserved
Disposal
◼ At the end of the useful life, the facility may be:
◼ Closed down or abandoned
◼ Disassembled or removed
◼ Renovated or overhauled
◼ Remodeled and converted to another use

◼ If a facility is renovated or remodeled, feasibility

needs to be performed as the facility begins a
new life

Gould and Joyce: Construction Project Management, 3rd ed. © 2009 Pearson Education, Upper Saddle River, NJ 07458.
All rights reserved