ACH 216 Lecture 02 (Project Format)

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  • 1. The Project Format Project Development & Organization Management Levels of Construction Basic Management Activities
  • 2. Project Development and Organization Life Cycle of the Construction Project Development Process
  • 3. START
  • 4. Concept and Feasibility Studies
    • Construction projects begin with recognition of a need
    • Elements of the phase include:
      • Conceptual analyses
      • Technical and economic feasibility studies
      • Environmental impact reports
    • Studies are handled by owner or owner’s consultants
    • Considerable amounts of “free” info is available from or offered by public and private organizations
  • 5. Concept and Feasibility Studies
    • Issues related to this phase:
      • location
      • employment for skilled, productive workers
      • present and projected costs & customs associated with labor force
      • transportation and transferring of raw materials
      • access to raw materials and markets
      • sources of energy, i.e., gas, oil, electricity
      • access to communication facilities
      • political and institutional factors that effect development and operation of facility
      • sociological, economic & demographic impact on community
      • environmental impact
  • 6. Engineering and Design
    • Two (2) main phases:
      • Preliminary Engineering and Design
      • Detailed Engineering and Design
    • Phases are traditionally by architects and engineers
    • Owner’s operations and utilization knowledge can be used in this phase
  • 7. Engineering and Design
      • stresses architectural concepts
      • evaluation of technological process alternatives
      • size and capacity decisions
      • comparative economic studies
      • compliance with
    This is where the first of 5 phases in the Basic Architectural Service begins: Schematic Design
    • Preliminary Engineering and Design Phase
        • zoning regulations
        • building codes
        • licensing procedures
        • safety standards
        • environmental impact
  • 8. Engineering and Design
      • process of breaking down, analyzing, and designing structure & its elements
      • compliance with recognized standards of safety and performance
      • rendering design in the form of a set of explicit drawings and specifications
    This is where the second and third of 5 phases in the Basic Architectural Service begins: Design Development Construction Documentation
    • Detailed Engineering and Design Phase
  • 9. Procurement
    • Two (2) main activities:
      • Contracting and Subcontracting
        • services of general & specialty construction
        • soliciting for competitive bids
        • takes place soon after the phase completion of Detailed Engineering and Design
      • Materials, Equipment & Labor
        • required to construct project
        • soliciting for competitive bids
    • both phases are handled by contractor or construction manager
    • phases can proceed incrementally or overlap design phase
    This is where the forth of 5 phases in the Basic Architectural Service begins: Bidding & Negotiation
  • 10. Construction
    • process where plans and specifications are converted into physical structures and facilities
    • organization and coordination of ALL resources for the project:
      • labor
      • construction equipment
      • permanent and temporary materials
      • supplies and utilities
      • money
      • technology and methods
      • time
    This is where the last of 5 phases in the Basic Architectural Service begins: Construction Administration
  • 11. Construction
    • Resources are used to complete the project
      • on schedule
      • within budget
      • in accordance to the standards of quality and performance specified by the A/E
  • 12. Start-up and Implementation
    • process to insure that the structure/facility and its components function properly and together as a total system
    • involves testing, adjusting and correcting major building systems
      • electrical
      • mechanical
      • safety and security
      • communications
      • technical
    • phase involves warranty period in which designer and contractors are called back to correct or “tweak” problems
  • 13. Operation & Utilization
    • functional value of project is determined by objectives of 5 preceding phases
    • projected operational life is 20-25 years or more
    • overall cost and value of structure throughout operation is determined during conception through start-up.
    • parties involved in this stage:
      • homeowners;
        • weekend maintenance
      • janitors and facility engineers
        • general operations and repair
      • public works staff
        • general upkeep & maintenance
  • 14. Construction Projects develop in a sequential or linear fashion: A need for a facility is identified by the owner Initial feasibility and cost projections are developed Decision to proceed with conceptual design is made and a design professional is chosen and retained Conceptual design and scope of work is developed to include an approximate estimate of cost Decision is made to proceed with the development of final design documentation, which fully defines the project for construction purposes Conceptual and Feasibility Studies Engineering and Design
  • 15. Construction Projects develop in a sequential or linear fashion: Based on final design documents, the project is advertised and proposals to include quotations for construction are solicited Based on proposals received, a contractor is selected and notice to proceed is given. Acceptance of proposal by owner will form a contract for the work Process of construction is started. Work is completed and facility is available for acceptance and occupancy/utilization Procurement Construction
  • 16. Construction Projects develop in a sequential or linear fashion: In complex projects, a period of testing determines if the facility operates as designed and planned Facility operates and is maintained during specified service life Facility is disposed of if appropriate or maintained in perpetuity Start-up & Implementation Operation & Utilization Average operational life of a building = 25-30 years
  • 17. Development Process Concept & Feasibility
    • Recognition of Need
    • Market Analysis
      • verify the need really exists
    • Create Owner
      • singe family residences; one person
      • commercial ventures; investors (partners)
    • Obtain “control” of land ownership
    • Zoning Analysis
    • Project Financial Analysis
      • costs analysis  benefit analysis
  • 18. Development Process Engineering & Design
    • Schematic Design
    • Design Development
    • Leasing commences
    • Obtain commitment for property loan
    • Obtain commitment for construction loan
    • Obtain commitment for permanent loan
    • Complete construction contract documents
    • Obtain permit approvals for construction
    • Purchase property
  • 19. Development Process Procurement
    • Bid project for construction
    • Contractor solicit bids from sub-contractors
    • Contractor prepares bid package
    • Contractor issues competitive bid
    • Owner selects general contractor
    • Owner obtains construction loan
    • General Contractor begins to mobilize resources
    • Sub-contractors prepare shop drawings and submittal packages for specialty items
    • General Contractor leases necessary construction equipment and other operational items; i.e.., trailer, office space
  • 20. Development Process Construction
    • Site is cleared of debris
    • Excavation begins for foundation
    • Foundation is poured/laid/driven
    • Inspection is done on foundation
    • Construction starts on building shell
    • Construction proceeds with major mechanical/electrical
    • Inspection on mechanical/electrical
    • Construction starts on tenant or interior improvements
    • Final Inspection is completed
    • Punch List and Turnover
  • 21. Development Process Start-up & Implementation
    • Obtain occupancy permit
    • Owner obtain permanent loan
    • Owner pays off construction loan with permanent loan
    • Punch list is completed
    • Maintenance issues are reviewed
    • As-Built drawings and Warranty packages are prepared
    • Occupy Building
    • Additional building operations are “tweaked” as necessary
    • As-Builts and Warranty packages are submitted to Owner
  • 22. Development Process Operation & Utilization
    • Owner hires Property Manager
    • Property Manager handles leases, building maintenance, construction tenant improvements
    • Owner holds property for a sufficient amount of time
    • OR
    • Owner sells property
    • The process starts all over again
      • New owner makes improvements to building
      • Original owner finds new venture
  • 23. Management Levels of Construction Four Levels of Hierarchy Organizational Project Operation (and Process) Task
  • 24. Organizational
    • legal and business structure of a firm
    • functional areas of management
    • interaction between head office & field managers
  • 25. Project
    • breakdown of project for purpose of time & cost control
    • concept of resources is defined & related to activity (materials and scheduling)
  • 26. Operation (and Process)
    • technology and details of how construction is performed
    • can encompass several distinct processes
  • 27. Task
    • identification and assignment of elemental portions of work to field units and work crews
  • 28. Organizational Structure of Construction Management Basic Management Activities Organizational Concepts
  • 29. Basic Management Activities
    • Planning
    • Organizing
    • Scoping
    • Controlling
  • 30. Basic Management Activities Planning
    • Construction companies use this activity for the following reasons:
      • More large, complex projects involving many people and resources to coordinate
      • Increasing reliance on sub-contracting
        • Work of many sub-c has to be coordinated
      • Markets are more turbulent and economic and social change has accelerated
        • Makes future less predictable
  • 31. Basic Management Activities Planning
    • Set clear performance objectives, usually in terms of time, quality, safety, cost and environmental impact
    • Activities include programming, costing, and scheduling
    • Activities are interrelated and developed in overlapping phases
    • Identify accurately the resources needed and action to be taken to achieve objectives
    • Involves a work breakdown of a code structure for estimating, scheduling, and costing direct and indirect work activities
    • Set up procedures for monitoring the implementation of the plan
  • 32. Basic Management Activities Organizing
    • Integrate individual, consultant and contractor efforts into an effective team
    • Process to relate tasks to people, firms, regulatory agencies, and other interested groups, to achieve economical and timely performance
    • To develop an efficient organization, project manager must handle:
      • Design
      • Delegation of responsibility
      • Working relationships between individuals & groups
      • Communication program
  • 33. Basic Management Activities Scoping
    • Clearly defines desired project process
    • Establishes realistic and specific objectives, which establish in advance the desired results.
    • Objectives are to be stated in definite and measurable terms
    • Objectives cover costs, schedules, and quality/performance requirements
    • Objectives must be reasonable and achievable
    • Effective communication between project team members is essential
  • 34. Basic Management Activities Controlling
    • Monitor, influence and direct achievement of project objectives throughout the performance phase
    • Requires an awareness of the current status of cost, schedule and quality of performance
    • Personal inspection of the project operation is required to ensure that work is being done properly; supervision
    • When work deviates from project plan, project manager is responsible for remedial action to gain control over project
  • 35. NEXT LECTURE
    • Who’s Who in Construction
    • Project #1 assigned