PROJECT LIFE CYCLE

WHAT IS CONSTRUCTION ?
• Construction is the process of building some facility physically.
• Construction is the process of preparing and forming buildings and building
systems. Construction starts with planning, design and financing and
continues until the structure is ready for occupancy
 WHAT IS CONSTRUCTION ?
• Building
• Roads / Highway
• Airport
• Harbor
• Dam
• Tunnel
• Bridge
DISTRIBUTION OF CONSTRUCTION SECTOR
 WHAT IS A PROJECT?

A project is a temporary endeavor undertaken to create a unique

product, service, or result
(Guide to the Project Management – Body of Knowledge, the Project Management Institute,
4th. Ed., 2008, p. 5)

A project is a sequence of unique, complex and connected

activities having one goal or purpose that must be completed by a
specific time, within budget and according to specification
(Robert Wysocki / Robert Beck Jr. / Daniel B. Crane: Effective Project Management, John
Wiley & Sons, 2002, p.65)
 WHAT IS A PROJECT?
A project is a complex, nonroutine, one-time effort limited by time,
budget, resources, and performance specifications designed to meet
customer needs
(Clifford F. Gray / Erik W. Larson, Project Management: The Managerial Process, 2.
ed., p. 15)
 CONSTRUCTION PROJECT
• Unique nature
• Uncertainty involve
• Division in phases for management control
• Collection of phases is called Project life cycle
 PROJECT LIFE CYCLE

Phases
• Concept and Feasibility Studies
• Engineering and Design
• Procurement
• Construction (Execution)
• Start-up
• Operation and Utilization
 Project Life Cycle

Concept and Engineering and Procurement

Feasibility Studies Design

Construction Start-up Operation and

(Execution) Utilization
 PHASE 1: CONCEPT AND FEASIBILITY
STUDIES
1. Initiation:
• Client/ owner develops an idea and discusses it with the concerned
personnel
• Owner hires key consultants (may include designer, technical consultants
and construction manager)
 CONCEPT AND FEASIBILITY STUDIES
2. Process:
• Project Formulation (conceiving and documenting the concept into a project) – major actor is
client
• Feasibility Studies (checking the viability of the project)
• Need Analysis (Recognition of the need of facility / project)
• Requirement Analysis (specific parameters required to fulfil need)
• Conceptual Analysis (Feasible Location, Size, Investment)
• Technical Analysis (Technical requirements including nature of skill, equipment, material,
technology and methods needed)
• Economic feasibility (Benefits must be greater than cost)
• Environmental Impact Assessment (EIA) (including Environmental, Political, Social, Cultural,
Community, Demographic Aspects)
• Conceptual Estimate
• Preliminary Program
 CONCEPT AND FEASIBILITY STUDIES
3. End Deliverables:
• Feasibility Report, Preliminary Estimate and Program
• Go/ No-Go Decision Client
 PHASE 2: ENGINEERING AND DESIGN
1. Initiation:
• Go Decision  By client
2. Process:
• Preliminary Engineering and Design – almost 30%
• Investigation and Evaluation of Design Alternatives
• Comparative Economic Studies
• Budgeting Estimate
• Value Engineering (for fast track projects)
• Breakup of Project in Work Packages (for fast track projects)
• Master Schedule for Work Packages (fast track)
 ENGINEERING AND DESIGN
• Detailed Engineering and Design (Architectural, Structural, Electrical,
Mechanical, HVAC, Interior, etc.)
• Finalization of Design Systems
• Breaking Down, Analyzing and Designing the Systems and its Elements so that it
complies with Standards of Safety and Performance
• Systems Estimate
3. End Deliverables:
• Drawings and specification
 PHASE 3: PROCUREMENT
1. Initiation:
• Drawings and Specifications
2. Process:
• Bid Procurement
• Analysis and Selection of Contractors for Prequalification
• Contract Documentation
• Tender Floating
• Fair Cost Estimate
• Value Engineering (for fast track projects)
• Analysis and Recommendation of Contractors for Award
• Contract Terms and Conditions
• Contract Agreement and Award
 PROCUREMENT
• Resource Procurement
• Obtaining Materials
• Obtaining Equipment
• Obtaining Skill Procuring necessary Permits
3. End Deliverables:
• Award of contract
 PHASE 4: CONSTRUCTION
1. Initiation:
• Award of contract
2. Process:
• Construction Plan Development and Approval
• Site Setup
• Mobilization
• Organization and Coordination of all Resources (labor, equipment,
permanent and temporary materials, supplies and utilities, money,
technology and methods, and time)
• Preliminary site works
 CONSTRUCTION
• Civil, MEP, HVAC works
• Value Engineering (for fast track projects)
• Initial Testing of Facility
3. End Deliverables:
• Project handover to client/Owner
 PHASE 5: START UP
1. Initiation:
• Project handover
2. Process:
• Testing, Adjusting and Correcting (to make sure that all Project Components
function well together as a total system)
• Warranty Period - Repair and Maintenance within Designer’s and
Contractor’s Warrantee period (a period wherein the designer and contractor
can be called back to correct problems that were not immediately evident
upon initial testing and to make
 START UP
suitable adjustments. At the end of Warrantee Period, Retention money is returned
to designer/ contractor)
• Initial Capital Turnover
3. End Deliverables:
• Fully Operation Utilization
PHASE 6: OPERATION AND UTILIZATION
1. Initiation:
• End of start up period
2. Process:
• Operational Utilization
• Capital Turnover
• Regular Periodic Maintenance
• Alterations and Expansions
 PC PERFORMAE
• For the project cycle following six (6) proformas have been designed by the
Planning Commission.

Performa Purpose
1 PC-I Form Detailed project document

2 PC-II Form For preparation of pre-feasibility, feasibility study, conducting

survey

3 PC-III Form For submission of quarterly monitoring/progress report of project

4 PC-IV Form For submission of completion report of project

5 PC-V Form For submission of evaluation /implementation report on annual

basis for five years (helps in policy formulation for future)

6 Low cost PC-I Form For preparation of small projects costing less