The development of any project follows some major phases in project life cycle. For the success of the project, the project team must successfully plan, organize and control their work activities so that they are performed in proper sequence and on time. Some parts of the major phases of project life cycle is performed before the construction phase starts.
Following are the steps involved in development of a construction project from scratch:
1. Conceptual phase
2. Proposal phase
3. Project design phase
a) Engineering design
b) Procurement of major equipment
c) Project control function
d) Construction inputs from experienced engineers
4. Procurement of other construction materials
5. On-site construction
6. Facility start-up and turnover
- Product development
- Process development
- Marketing surveys
- Setting project scope and design basis
- Capital cost estimating
- Project financing plans
- Economic feasibility studies
- Board approval of the project
- Preparing a contracting plan – like terms and conditions of contract, payment terms, security deposit, earnest money deposit etc.
- Prequalifying contractor slate – prequalification needed for a contractor to carry out the project is finalized, like size of project executed by the contract, type of project executed by the contractor etc.
- Preparing a request for proposal (RFP) or Request for Quotation (RFQ – this involves bill of quantities of each item of work to be executed in the construction project, and quotation for the same is requested from the contractor.
- Receiving and analyzing the proposals- each quotation received by the means of tendering is then opened and analysed as per the requirement of the client. Then client decides on selection of the best proposal based on cost and quality in mind and contractors work experience.
- Selecting the best proposal
- Negotiating a contract: after the best proposal is selected by the client, the selected contractor is called for negotiation. In this step, generally contractors are requested to review the rates quoted by them so as to minimize the cost of the project.
- Engineering design phase: it covers those activities required to generate the plans and specifications for the procurement of the equipment and construction materials and the construction of the facility. Process design, mechanical design, civil, architectural and structural design, piping design, electrical design, instrumentation design, general specifications and construction input from past experiences and other experienced engineers are the major activities in this phase.
- Equipment procurement activity: procurement of construction materials and equipment are carried out during design stage and transported to the construction site as specified and on time to meet the construction schedule. Interaction between construction groups and procurement groups becomes much important during this phase of the construction.
- Project control functions: to meet the project goals relating to budget, schedule, and quality effectively, a team of control specialists performs the necessary project control functions. All the project commitments and expenditures are monitored by cost engineers to see that they conform to the budget and cash flow projections. Weekly and monthly project reports are prepared to ensure that various activities are as planned or to take any steps to keep the activities on track.
- Construction field activities: each team member is presented with certain jobs on site for the construction of the project on time and as per contracting terms. The construction manager delegates the major areas of the construction project. The group of engineers is led by a field superintendent who directly reports to the construction manager. This superintendent is assisted in executing the construction work by an organization of area engineers, craft superintendents, general foremen, and sub-contractor supervisors. All other field groups perform their duties to support the field construction operation.