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Construction project lifecycle (Design - Tender - Build contract type)

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Rebecca Yang

on 26 July 2014

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Transcript of Construction project lifecycle (Design - Tender - Build contract type)

Project Life Cycle
Typical construction project life cycle
Do you believe it?
Can we say the project lifecycle is six days?
Why can it be built in six days?
Pre-project / Conception
Planning and design
Contractor selection & mobilisation
Construction
Project closeout / Commissioning & Turnover
Occupancy / Use
Renewal
Demolition
The project life cycle
Project life cycle
Why
-Stages in project life cycle
What
-Activities in each stage
Who
-
People in each stage
What will you learn?
Pre-project / Conception
Planning and design
Contractor selection
Construction
Project closeout / Commissioning & Turnove
r

Contractor mobilisation
Pre-project
A perceived need
A desire to improve or add to productive capacity
The wish for more efficient provision of some public service
An idea
Why?
Who?
Client
What?
Prior to the commencement of the construction project, even before the selection of the designer and the accomplishment of any planning activities........
Project type
Needs, Constraints......
... expectations
Selection of the project delivery system
Design - tender -build
Design - build
Construction manager
Project manager
Turnkey
Build - own - operate - transfer
Joint venture
Phased construction
Design
Tender
Build
Selection of the type of contract
Lump sum / Fixed price
Unit price / measure and value
Cost plus
Variations of basic cost plus
Time and materials
Planning and design
Prior to the selection of the organizations that will assemble the various project elements in the field......
Why?
Analysing the reality of client's dream
Showing the dream on drawings
Developing a construction contract
Getting permit from council
Project manager (Client)
- act on behalf of the client in managing the project
Who?
Architect
- perform the planning, design and construction liaison tasks
Engineer S
- structural design, heating, ventilating and air conditioning (HVAC) systems, water systems, electrical systems, roadway layout, pavement degin.
Geotechnical specialist
- advise on dealing with earthquake susceptibility, soft sediments, alternative foundation solutions, unstable slopes and flooding potential......
Land surveyor
- establishment of property corners and boundaries, determination of land contours and slopes
Cost estimator & Quantity surveyor
- estimate the final cost, prepare schedules of quantities of the various project elements.
Other stakeholders
What?
Contract document development
Design stage
Planning permit
Planning and feasibility study
The various parties (stakeholders) define and clarify the project's purpose and scope, conduct feasibility studies, select and acquire land and investigate site conditions and consider options for how the work might be assembled.
Consultant selection
Client and its project manager
- Soliciting preliminary expressions of interest and qualification
Consultant firms
- express interests, prepare proposals (statement of work, areas of expertise required, time schedule, project budget, submit date)
The brief
A statement that specifies the scope of the project. It defines the objectives to be achieved and lays out in a general way what the final product will accomplish.
By client OR By client and consultants
Programme development
A more comprehensive statement of the project elements must be developed. These elements will be translated into the physical aspects.
Client & Some stakeholders & Architects
Identification of alternatives
Propose possible ways to satisfiy different stakeholders
Owner and its project manager, Arthitect, surveyor
Site investigation
Geotechnical specialist
: study of soil conditions, Geography
Land surveyor
: establish corners and boundaries
Project manager (client), other specialists, Architects
: envrionment analysis, access
Contructability analysis
Each alternative will be studied for such things as ease of contruction, impact on the project schedule, effects that different materials might have on procurement and installation, safety considerations and various coordination issues among personnel, equipment and materials.
Design professionals and a consultant with special knowledge of construction procedures
Preliminary cost estimate
Use some broad measures of cost to develop the estimate
Cost estimator & Quantity surveyor
Funding or financial feasibility analysis
Get funding approval, being financial viable
Financial bodies, decision board, financial analyser
Schematic design
Project manager (Owner) & Architect & Engineers & Some other specialists
Detailed design
Lay out the relationships among the project elements
Provide the detailed calculations and drawings that specify the sizes and locations of the structural members, earthworks, mechanical systems and all other parts that make up the project
Architect - developing a design concept with plan, elevation and sectional views that meet the space and programme requirements;

Engineers - develop concepts of how the various systems will fit into the facility: foundation systems, cooling and heating systems......
35% of the total planning and design effort has been expended upon completion of schematic design.
A written report
A set of detailed drawings
A more refined cost estimate
65% of the planning and design effort has been expended.
Drawings:
scaled and dimensioned graphic depictions of the project features, usually with notes that explain related details.
General layout
Architectural, showing all dimensions and locations of all features in the building
Structural, with details of all major elements including connections and fastenings
Mechanical, including plumbing, heating, ventilation, air conditioning and special mechanical equipment
Electrical, with light fixtures, motors, conduit and cable, communication system components and other details.
Technical specifications
: describe the project, its materials and its methods or performance requirements
Up-front documents:
describe the relationships and responsibilities of the parties
Bidding requirments
Contract and subcontract procedure
Measurement and payment
Schedule of quantities
Invitation to tender
Instructions to tenderers
Tender form
It is the first part of the approval process which is submitted by the developer or owner to building surveyor for approval of new projects and renovations involving structural changes.
Design drawings
Statement of environmental effects, Materials reuse statement
Other reports (e.g. flora and fauna assessments, bushfire assessments)
Certificates (e.g. Basix system in NSW, First rate in VIC)
Contractor selection
The process of selecting construction firms that will assemble the project in the field
Why?
Find suitable contractor(s) to build the project
Who?
Project manager (Client)
Construction firms (contractors) - do the construction works based on drawings and project requirements
What?
Project manager (client)
Methods for contractor selection
Pre-qualification
Post qualification
Open tender
Invited tender
Contractors
Considerations in deciding to tender
Project type
Project size
Project location
Specialised work
Anticipated construction problems
Completion date
Labour conditions and supply
Preliminary job planning
Method statement
Constructability analysis
Site visits
Preliminary schedule
Pre-tender meetings
Cost estimating
(1) Net project cost
(1.1)Construction cost
(1.1.1)Direct costs: Labour, Materials, Equipment, Subcontract work
(1.1.2) Site or project overheads or oncosts
(1.2) Company, general overheads
(2) Markup or margin
(2.1) Profit
(2.2) Contingency or risk
Total tender price
Turning the estimate into a tender

Submitting the tender envelope (tender proposal/form, a certified cheque or tender bond)
Selecting successful contractor
Lowest price tender
Best-value tender
Notice to proceed
The document that notifies the contractor of the acceptance of its proposal and directs the contractor to commence work, often within a specified time.
Contract agreement
Contractor mobilisation
Construction
Project closeout
Between the award of the construction contract and the beginning of construction work in the field. Much of this work will continue into the days and weeks during which fieldwork is beginning.
Why?
Prepare for and set the stage for "construction"
Who?
(Project manager, cost estimator, Procurement department)
Project manager (Client), Head Contractor team (Project manager, Site manager, Contract administrator, Cost estimator, engineers......), Subcontractors (Plumber, painter, carpenter, plaster, concrete pre-caster, tiler, fencer...... http://en.wikipedia.org/wiki/List_of_construction_trades)
What?
Legal and contractual issues
Construction permit
The second part of approval process and a certificate will need to be reviewed by a building surveyor before construction can begin.
Design and construction drawings

Project specification (e.g. site preparation, concrete construction, timber and steel construction, roofing, cladding, plumbing, electrical and mechanical installations, pavement and roads......)
Insurance
The Head Contract with the client will specify certain types of required insurance coverage to be purchased and maintained by the contractor.
Property insurance
Liability insurance
Work cover
Programming, planning and scheduling
Work breakdown structure
To define the various work tasks that must be completed
Gantt chart
To indicate how the various activities will be carried out so as to complete the project by the target completion date
Network schedules
To relate project activities in a network, and show the order in which they are intended to be performed
Budgeting and cost systems
Cost control and monitoring system
To provide a means for comparing actual with budgeted expenses
To develop a database of prductivity and cost performance data for use in estimating the costs of subsequent projects
To generate data for valuing variations and changes to the contract and potential claims for additional payments
Cash flow projection
The timing of expenses and revenues

Information about when to expect payment requests and in what amounts
Organising the worksite
To set up the site in a manner that will allow the work to proceed efficiently and effectively
Demolition of existing structures
Establishment of services (water, electricity, stormwater, sewerage, gas)
Temporary facilities (offices, housing and food service, utilities, medical and fist aid facilities)
Access roads
Security and signage
Procurement & Project staffing
Material procurement
Subcontracting - Subcontractors
Site organisation structure
The project manager (Head contractor) is called upon to perform a variety of responsibilities aimed at effective and efficient use of resources in the assembly of the several parts of the project.
Why?
To set up the building
Who?
Head contractor team
Subcontractors(crane driver, carpenter, concrete pre-caster, plumber, painter, tiler, fencer, electrician, steel manufacturer......)
Consultant professionals (Architect, Engineers, Surveyors, specialists)
What?
Project structure
Management
The project is almost complete! But before it can be declared finished, however, a number of activities must take place and several responsibilities must be fulfilled.
Why?
Completing the work, which includes the physical activities that must be accomplished on the site

Closing out the project, involving the multitude of required documents and other paperwork issues, some related to finances by others to certificates, project records and provision to the client of the required training, operational information etc.
Who?
Head contractor team, client, design professionals, subcontractors
What?
Completing the work
Closing out the project
Testing
Various systems (e.g. electrical systems, ventilation and air conditioning, fire protection, pumps, heating, security, elevators and communications) are required to be started and tested under operational conditions at the end of the project.
Cleanup
E.g. the scouring of walls and cellings, shampooing of carpets, cleaning of exterior walls, window washing, removing dust.
Discrepancy list
A list of work items yet to be completed, including repairs and discrepancies, in order to fulfil the contract's requirements
Inspection
Representatives from all the design disciplines, and from the client as well as the head contractor participate in the inspection.
Closing the construction office and temporary facilities
Subcontractor payment
Final quantities
Request for final payment
Liquidated damages
Certificates (payment, completion, occupancy)
Training sessions
Post-project analysis, critique and report
Cost management
Time management
Qulity management
Procurement
Human resource management
Communication
Documentation
Safty management
Risk management
Change management
Sample technical specification ourline for highway construction
Materformat technical specification division for buildings
Building surveyor - professionals trained in understanding and interpreting building law. He or she is authorised to assess building plans with a view to ensuring they are compliant with the Building Regulations. http://aibs.businesscatalyst.com/fabs/about_building_surveyors
Dr. Rebecca Yang - School of Property, Construction and Project Management, RMIT University
Full transcript