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PROJECT CHRONOLOGY

PROJECT CHRONOLOGY. (Refer to Chapter 5). PROJECT LIFE CYCLE. Project initiation Feasibility studies Design Procurement Construction Project closure Operation Disposal. INITIATION. Establish needs Define the project Goals Business requirements Technical requirements.

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PROJECT CHRONOLOGY

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  1. PROJECT CHRONOLOGY (Refer to Chapter 5)

  2. PROJECT LIFE CYCLE • Project initiation • Feasibility studies • Design • Procurement • Construction • Project closure • Operation • Disposal

  3. INITIATION • Establish needs • Define the project • Goals • Business requirements • Technical requirements

  4. FEASIBLITY ANALYSIS • A preliminary study undertaken to determine and document a project's viability. • Economic • Technical • Social • Marketing • The results of this study are used to make a decision of go or no-go. • An analysis of possible alternative solutions to a problem and a recommendation on the best alternative.

  5. FINANCE • Investment in a constructed facility represents a cost in the short term that returns benefits only over the long term use of the facility. • Costs occur earlier than the benefits, and owners of facilities must obtain the capital resources to finance the costs of construction. • A project cannot proceed without adequate financing, and the cost of providing adequate financing can be quite large. • For these reasons, attention to project finance is an important aspect of project management.

  6. FINANCE • Finance is also a concern to the other organizations involved in a project such as the general contractor and material suppliers. • Unless an owner immediately and completely covers the costs incurred by each participant, these organizations face financing problems of their own. • Project finance problem is to obtain funds to bridge the time between making expenditures and obtaining revenues.

  7. FINANCE • Based on the conceptual plan, the cost estimate and the construction plan, the cash flow of costs and receipts for a project can be estimated. • Normally, this cash flow will involve expenditures in early periods. • Covering this negative cash balance in the most beneficial or cost effective fashion is the project finance problem. During planning and design, expenditures of the owner are modest, whereas substantial costs are incurred during construction.

  8. FINANCE • Only after the facility is complete do revenues begin. • In contrast, a contractor would receive periodic payments from the owner as construction proceeds. • However, a contractor also may have a negative cash balance due to delays in payment and retainage of profits or cost reimbursements on the part of the owner.

  9. DESIGN • Programming • Written statement of requirements • Schematic Design • Defining the characteristics of the project • Design Development • Finalizing the design of major building systems • Construction Documents • Working drawings • Specifications • Bidding documents

  10. Specifications Group (Old) • Division 01 — General Requirements • Division 02 — Site Construction • Division 03 — Concrete • Division 04 — Masonry • Division 05 — Metals • Division 06 — Wood and Plastics • Division 07 — Thermal and Moisture Protection • Division 08 — Doors and Windows • Division 09 — Finishes • Division 10 — Specialties • Division 11 — Equipment • Division 12 — Furnishings • Division 13 — Special Construction • Division 14 — Conveying Systems • Division 15 — Mechanical • Division 16 — Electrical

  11. Specifications Group (New) • General Requirements Subgroup • Division 01 — General Requirements • Facility Construction Subgroup • Division 02 — Existing Conditions • Division 03 — Concrete • Division 04 — Masonry • Division 05 — Metals • Division 06 — Wood, Plastics, and Composites • Division 07 — Thermal and Moisture Protection • Division 08 — Openings • Division 09 — Finishes • Division 10 — Specialties • Division 11 — Equipment • Division 12 — Furnishings • Division 13 — Special Construction • Division 14 — Conveying Equipment • Division 15 — RESERVED FOR FUTURE EXPANSION • Division 16 — RESERVED FOR FUTURE EXPANSION

  12. Specifications Group (New) • Facility Services Subgroup: • Division 20 — RESERVED FOR FUTURE EXPANSION • Division 21 — Fire Suppression • Division 22 — Plumbing • Division 23 — Heating Ventilating and Air Conditioning • Division 24 — RESERVED FOR FUTURE EXPANSION • Division 25 — Integrated Automation • Division 26 — Electrical • Division 27 — Communications • Division 28 — Electronic Safety and Security • Division 29 — RESERVED FOR FUTURE EXPANSION

  13. Specifications Group (New) • Site and Infrastructure Subgroup: • Division 30 — RESERVED FOR FUTURE EXPANSION • Division 31 — Earthwork • Division 32 — Exterior Improvements • Division 33 — Utilities • Division 34 — Transportation • Division 35 — Waterway and Marine • Division 36 — RESERVED FOR FUTURE EXPANSION • Division 37 — RESERVED FOR FUTURE EXPANSION • Division 38 — RESERVED FOR FUTURE EXPANSION • Division 39 — RESERVED FOR FUTURE EXPANSION

  14. Specifications Group (New) • Process Equipment Subgroup: • Division 40 — Process Integration • Division 41 — Material Processing and Handling Equipment • Division 42 — Process Heating, Cooling, and Drying Equipment • Division 43 — Process Gas and Liquid Handling, Purification and Storage Equipment • Division 44 — Pollution Control Equipment • Division 45 — Industry-Specific Manufacturing Equipment • Division 46 — RESERVED FOR FUTURE EXPANSION • Division 47 — RESERVED FOR FUTURE EXPANSION • Division 48 — Electrical Power Generation • Division 49 — RESERVED FOR FUTURE EXPANSION

  15. PRE-PROJECT PLANNING • Assess the adequacy of project scope definitions • "not applicable" (0), "complete definition" (1), "minor deficiencies" (2), "some deficiencies" (3), "major deficiencies" (4) or "incomplete or poor definition" (5) • Some items in the checklist include: • Business Strategy for building use, justification, plan, economic analysis, facility requirements, expansion/alteration consideration, site selection issues and project objectives. • Owner Philosophy with regard to reliability, maintenance, operation and design.

  16. PRE-PROJECT PLANNING • Project Requirements for value engineering, design, existing facility, scope of work review, schedule and budget. • Site Information including applicable regulatory reporting and permits requirements. • Building Programming including room by room definitions for use, finishes, interior requirements and hvac (heating, ventilating and air conditioning). • Design Parameters including all components and a constructability analysis. • Equipment including inventory, locations and utility requirements.

  17. PROCUREMENT • The process of hiring professionals to construct the facilities • Accuracy and completion of construction documents must be ascertained before this process • Request for bid from qualified contractors • Selection of contractors

  18. CONSTRUCTION PLANNING • Estimate stage • Involves the development of a cost and duration estimate for the construction of a facility as part of the proposal of a contractor to an owner. • Assumptions of resource commitment to the necessary activities to build the facility are made by a planner. • A careful and thorough analysis of different conditions imposed by the construction project design and by site characteristics are taken into consideration to determine the best estimate.

  19. CONSTRUCTION PLANNING • The success of a contractor depends upon this estimate, not only to obtain a job but also to construct the facility with the highest profit. • The planner has to look for the time-cost combination that will allow the contractor to be successful in his commitment. • The result of a high estimate would be to lose the job, and the result of a low estimate could be to win the job, but to lose money in the construction process. • When changes are done, they should improve the estimate, taking into account not only present effects, but also future outcomes of succeeding activities. • It is very seldom the case in which the output of the construction process exactly echoes the estimate offered to the owner.

  20. CONSTRUCTION • Monitoring and control stage • Construction manager has to keep constant track of both activities' durations and ongoing costs. • Misleading to think that if the construction of the facility is on schedule or ahead of schedule, the cost will also be on the estimate or below the estimate, especially if several changes are made. • Constant evaluation is necessary until the construction of the facility is complete.

  21. CONSTRUCTION • Evaluation stage • Results of the construction process are matched against the estimate. • A planner deals with this uncertainty during the estimate stage. • Only when the outcome of the construction process is known is he/she able to evaluate the validity of the estimate. • It is in this last stage of the planning process that he or she determines if the assumptions were correct. • If they were not or if new constraints emerge, he/she should introduce corresponding adjustments in future planning.

  22. CONSTRUCTION • Managing and coordinating field operations • Procuring equipment, materials, and labor in proper sequence • Efficient and safe construction methods • Directing production process • Prepare shop drawings • Monitoring schedule, cost, and quality

  23. CONSTRUCTION • Shop drawings • Shop drawings represent the assembly details for erecting a structure which should reflect the intent and rationale of the original structural design. • They are prepared by the construction contractor and reviewed by the design professional. • The responsibility for preparing shop drawings was traditionally assigned to construction contractors. • Design professionals took the view that the review process was advisory and assumed no responsibility for their accuracy. • This justification was ruled unacceptable by a court in connection with the walkway failure at the Hyatt Hotel in Kansas City in 1985.

  24. Recommended Responsibility for Shop Drawings

  25. CONSTRUCTION • Contact administration • Record keeping • Controlling changes • Accounting for payments • Maintaining work schedules • Keeping track of contract documents

  26. PROJECT CLOSURE • A project is not complete until it is officially turned over to the owner • All the major systems (Electrical, HVAC, etc.) are required to be tested before turnover • Certificates of warranty to be provided • Changes during construction to be documented • Final drawings reflecting all changes to be completed and submitted to the owner • Certificate of occupancy • Certificate of substantial completion

  27. OPERATION • Responsibility of the owner • Period in which the facility is put to use for what it is intended • Period of greatest expenditure • Operating cost • Knowledge of such costs is important in planning future facilities • Facility manager

  28. DISPOSAL • At the end of useful life • Depreciation • Renovated and brought back to good operating condition • Disassembled or removed • Closed down • Abandoned

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