Management:
Art of getting things done through and with people in formally organised groups.
Project:
PMBOK published by PMI defines a project as a temporary endeavour undertaken to
provide unique product or service.
Planned set of interrelated tasks and activities to be executed over a fixed period and within
certain cost and limitations to achieve an objective. Effective planning can be helpful in
successful completion of project.
Construction project:
Construction project includes all materials and work necessary for construction of finished
structure. They involve varying manpower and their duration varies from project to project.
Each of the project is ‘unique’ and ‘temporary’ in nature. Unique means every project is
different in some way from other, ‘temporary’ means each project has a definite beginning
and definite end. A project may involve single unit of one organisation or may extend across
organisational boundaries in case of joint ventures and partnering.
Unique features of a construction project:
One time activity- Must be performed correctly the first time every time
Complexity- It is multidisciplinary because it involves set of interrelated tasks to be done by
specialists.
High cost and time of execution.
High risk of failure
Difficulty of defining quality standards
Uniqueness of people relationship
Feedback mechanism
Lack of experience of client or owner
Untrained workforce
Phases of a construction project:
Phases can be defined as breakdown of construction project into a number of stages during its
lifetime. Since each construction project is unique, it is difficult to identify some common
stages across all construction projects depending on type of project.
Different project phases include:
a) Pre- project phase
b) Project phase
c) Post- project phase
Pre- project phase:
It includes three sub-phases:
i) Initiation or idea phase: Aims to identify all possible projects based on examination of
needs and possible options. Also referred as initiation or idea phase. Eg: Addressing parking
problem in a city.
ii) Project concepts: Sort out all mentioned information to identify some project concepts.
Using suitable selection procedure inline with the objectives of the organisation, several
concepts are selected. This is one of the most important phase as it affects the final cost
involved. The concepts selected are used in feasibility phase.
iii) Feasibility: Aims to appraise the project concepts considering needs, capabilities and
know-how of the organisation. This phase is characterised into:
a) Conceptual: For selected concepts, preliminary layouts are prepared. Design briefs are
formulated.
b) Project strategy: Concerns with the selection of in-house design team or contractors design
team. Assessment of resource requirement and availability as well as contractor type, number
required and project schedule, scope etc are assessed.
c) Estimate: Preliminary estimate is prepared by breaking down the project into different
elements/ work packages. The estimate for each work package is prepared.
d) Approval: Consists of financial evaluation, identifying funding details and their timing etc
and also evaluation of different options.
Feasibility may be marketing, technical, environmental and financial feasibility studies.
Financial feasibility study is done only if the first three sub phases are found to be positive.
The feasibility phase ends when decision maker decides to transform the project concept into
project.
Project phase:
Referred also as project implementation phase, project realization phase or project
materialisation phase. It consists of the following subphases:
1) Basic design phase: Carried out by engineering organisation and architects. The
documentation for tendering and contracting the construction and equipment procurement are
done in this phase. Basic design calculation, preparing tender drawings, design and material
specification are done in this phase.
2) Detailed design phase: Carried out in-house or through contracting. Item rate contract may
be used for detailed design and in some cases, other types of contracts may be used.
3) Tendering phase: Tenders are prepared if contract is to be executed through contracting. It
includes preparation of clear and precise documents on specifications and agreement
conditions, preparing BOQ et. After evaluation of bids, successful contractor is awarded the
contract.
4) Execution or construction phase: After contract is awarded construction begins. If detailed
drawings are not available, it may be prepared suitably and followed by construction. The
progress of work is closely noted for assessing cost and schedule. The variations are noted
and corrective measures are taken.
5) Closure or completion phase: Construction is handed over to the owner. In some cases
client issues approval of work and completion certificate after all works are checked and
found to be in order.
Post- project phase:
Known as turnover phase or start-up phase. The responsibility of construction is handed over
to the owner from engineers, architects etc. This phase includes:
1) Utilization phase: Client makes use of finished project and performance is monitored at
regular intervals, maintenance if necessary are undertaken
2) Close-down phase: Once the project has lived its intended life, it is dismantled and
disposed of.
Detailed Project Report (DPR)
DPR is a document for planning the project and implementing the project. It is a complete
document for investment, decision making, approval and planning. DPR is always prepared
based on guidelines and standards of a company. It is a time-consuming process and costly as
specialists from various streams such as engineering, market research, finance etc are
involved.
Objectives of DPR preparation are:
1) It gives an assurance that the project performance of a reliable quality and within optimum
cost.
2)To appreciate that the project is site specific and help to achieve the required performance.
3) To understand the method of project appraisal i.e. various types of analysis be it financial,
economic or technical.
DPR should include all the following aspects in a detailed manner:
1) Technology and design aspects: The specialists findings should ensure that there are
minimum technical uncertainties and deal with technology and design which are tested and
proven. Overseas technical consultation should be explored preferably after the existing
technology within the country are assessed as they will be cheaper and eco-friendly.
2) Economic aspects: These aspects of a project includes: -
Location of the project, benefits of the location and the volume of work involved
Availability and utilisation of resources in the most beneficial manner
Cost benefit analysis is also done, and investment criteria may be based on payback period or
cash flow techniques such as IRR, Benefit- cost ratio, Net present worth.
3) Social and political aspects: The public attitude towards the project is important as it may
involve displacement of people to a large extent. The environmental pollution and ecological
balance before and after completion are to be assessed. A favourable political condition has
to be ensured for successful completion of project.
4) Financial aspects: Timely availability of funds and continuous cash flow are the most
important aspects for completion of work in a time bound manner. The availability of
resources are also to be ensured throughout i.e during implementation period and during the
revenue generation period. The income generated has to be beneficial in repayment of
principal and pay interest for the amount borrowed. The risks encountered during work
execution are to be minimum.
The DPR should consist of following main points:
a) Salient features of the project.
b) Statisitcs
c) Statements, tables and charts if any
d) Maps, photographs etc. giving necessary physical data
e) Detailed plans and estimates
f) Schedule of rates (SoR) used to find cost of work
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