Chapter 2 Construction Project Development F23

Chapter Two
Construction Project
Development.
INE 529
Project Contracting
Construction Vs. Manufacturing
Processes.
❑ Manufactured Products are typically designed
and produced without a designated purchaser.
❑ In Construction, the process of purchase

begins with a client who has a need for a
facility. The purchaser typically approaches a
design professional to more specifically define
the nature of the project.
Project Format
❑ In contrast to other manufacturing industries that fabricate
large numbers of units, such as automobiles or television sets,
the construction industry is generally focused on the
production of a single and unique end product. That is usually
unique in design and method of fabrication.
❑ The facility is stylized in terms of its function,

appearance, and location. In case of town houses or fast
food restaurants still the units must be site- adapted and
stylized to some degree.
Project Format Cont’d.
❑The focus of construction project management is the
planning and control of resources within the
framework of a project.
Project Development
❑Construction projects are developed in a clearly
sequential fashion.
▪ The general steps are as follows:
1. A need for a facility is identified by the client.
2. Initial feasibility and cost projections are developed.
3. The decision to proceed with conceptual design is made and a design

professional is retained.
4. The conceptual design and scope of work is developed to include an

approximate estimate of cost.
5. The decision is made to proceed with the development of final
design documents after the preliminary design is approved, which
fully define the project for purposes of construction.
6. Based on the final design documents, the project is advertised

and proposals to include quotations for construction of the work
is solicited.
7. Based on proposals received, a constructor is selected and a

notice to the constructor to proceed with the work is given. The
proposal and the acceptance of the proposal on the part of the
owner constitute the formation of a contract for the work.
8. The process of constructing the facility is initiated. Work is

completed and the facility is available for acceptance. Occupancy
and utilization.
9. In complex projects, a period of testing decides
if the facility operates as designed and planned.
This period is typical of industrial projects and is
referred to as project start-up.
10. The facility operates and is maintained

during a specified service life.
11. The facility is disposed of if appropriate or

maintained thru it’s existence.
❑ The key players in this development
sequence are:
1. The owner.
2. The designer or design professional.
3. The Constructor.
Construction Technology and
Construction Management.
❑ Construction technology relates to the methods or
techniques used to place the physical materials and
elements of construction at the jobsite.
❑ Technology can be broken in two words:
1. TECHNO
2. LOGIC
Construction Management. Cont’d
❑ Logic addresses the concept of sequence or order of things.
❑ Technical to this leads to the idea that technology has to do

with the technical sequence in which something is done to
produce an end result.
❑ Once a project is defined, one of the most critical

questions facing the Construction Project Manager is
“ What construction technique or method should be
selected? ”
Construction Management. Cont’d
❑In contrast to construction technology,
construction management addresses how the
resources available to the Project Manager can be
best applied. Typically, when speaking of
resources for construction, we think of the four
M’s of construction:
“Manpower, Machines, Materials, and Money.”
Construction Management is
Resource-Driven.
❑ The job of a construction Project manager is to efficiently
and economically apply the required resources to realize a
constructed facility of acceptable Quality within the time
frame and budgeted cost specified.
▪ “ on time and within budget” most common words used in

the construction industry however recently the concept of
quality as a requirement has become increasingly important
aspect of the construction process. The term got expanded
to say :
“ a quality facility on time and within budget “
Construction Management is
Resource-Driven. Cont’d
❑ The construction project manager is provided with
resources such as Labor, material and equipment and
expected to build a facility that meets the specification
and is consistent with the drawings provided for the
project.
❑ The mission of construction is constrained in terms of

available time and amount of available money.
❑ The challenge faced is to apply the resources within

the limited funding and time available.
“This is the essence of construction.”
Management Levels of Construction
❑There are four levels of hierarchy can be identified as
follows:
1. Organizational.
2. Project.
3. Operation.
4. Task.
Cont’d
1. Organization: The organizational level is concerned
with the legal and business structure
of a firm.
2. Project: Project-level is dominated by term

relating to the breakdown of the
project for the purpose of time and
cost control.
Cont’d
3. Operation : The construction operation level is concerned
with the technology and details of how
construction is performed.
It focuses on work at the field level..
4. Task: The task level is concerned with the identification

and assignment of elemental portions of work to
field units and work crews.

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Chapter Two

❑ In Construction, the process of purchase

❑ The facility is stylized in terms of its function,

▪ The general steps are as follows:

1. A need for a facility is identified by the client.

2. Initial feasibility and cost projections are developed.

3. The decision to proceed with conceptual design is made and a design

4. The conceptual design and scope of work is developed to include an

6. Based on the final design documents, the project is advertised

7. Based on proposals received, a constructor is selected and a

8. The process of constructing the facility is initiated. Work is

10. The facility operates and is maintained

11. The facility is disposed of if appropriate or

❑ Technology can be broken in two words:

❑ Technical to this leads to the idea that technology has to do

❑ Once a project is defined, one of the most critical

▪ “ on time and within budget” most common words used in

❑ The mission of construction is constrained in terms of

❑ The challenge faced is to apply the resources within

2. Project: Project-level is dominated by term

4. Task: The task level is concerned with the identification

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