CE-332 CONSTRUCTION ENGINEERING AND MANAGEMENT

CE-332 CONSTRUCTION ENGINEERING AND MANAGEMENT CHP 4 - PROJECT CHRONOLOGY LECTURER : ASSOC. PROF. DR. AHMET ÖZTAŞ UNIVERSITY OF GAZİANTEP DEPARTMENT OF CIVIL ENGINEERING Lecture 4

CHP4-PROJECT CHRONOLOGY • Introduction • Project initiation • Feasibility analysis • Financing • Design of project • Procurement • Construction • Turnover and startup • Operation of facility • Disposal of facility • Conclusion

Learning Objectives In this chapter you will learn the following: • The principal tasks in life cycle of a project • What information must be gathered and investigated to successfully initiate a project. • The principal phases in project design. • What must be done to move from construction to operation.

Introduction-1 Life of a facility goes through many phases. • It starts with an idea. • Idea combined with money --- project is born. • Project is developed as drawings and specifications. • Then, it is built. • When completed, turned over to owner, and occupied, maintained, repaired and eventually dies. • At some point in lifetime a facility is likely to be renovated, either to renew obsolete systems or change its use. Figure 4.1 shows a design/build/use/dispose scenario for a shopping mall.

Introduction-2 Life cycle of a shopping mall: • Feasibility analysis; investigate the economics of the mall • Design; produce “biddable” contract documents • Procurement; builder selection, material order • Construction; mall physically constructed • Turnover; transition from construction to operation • Operation; business is conducted

Sequence of a Project: Feasibility study. Concept estimate of cost and timing CONCEPT APPRAISAL option to abandon Progressive refinement of cost and timing in relation to the project’s objectives. CONCEPT DEVELOPMENT option to abandon DESIGN AND DOCUMENTATION option to abandon Progressive and continuous control of cost and timing CONSTRUCTION Who are the main Parties to a project? . . . COMMISSIONING

Project initiation-1 All construction activity is the result of basic economic demand. Individuals needs homes, roads, stores, shelter, etc. Specific construction projects arise because corporations or government bodies recognize the need --- serve this demand and act to create them. Construction activity tends to foster further construction activity. Recognizing needs is first step, but there must be a way to move from recognition to reality. Answer lies in economic structure of the country.

Project initiation-2 • Demographic and market analysis are used to forecast future growth areas in the country. • Opportunities, once identified, are financed and then projects initiated. • As businesses increase, population grow to work in them. Because these people must travel to work, roads and other transportation modes become necessary.

Feasibility analysis-1 Before deciding to invest in a specific area, an investor wants to be sure on an adequate return. Therefore before any commitment, an analysis is performed to examine the proposed investment from several standpoints. These are shown on figure; • Market demand, • Cost of construction, • Cost of money, • Timing of project,

Feasibility analysis-2 Project initiation Cost of money Schedule Budget Market demand Revise program or cancel project Proceed? Design

Feasibility analysis-3 During the early analysis stage, owner consults • Architects who provide early design advice, and • Construction professionals, who offer cost and constructability advice. Example:

Financing If project gets past the first hurdle of profitability for the investor, owner must arrange financial backing for some of the work. Some of it provide himself. Commonly, initial investor acquires outside funds to supplement his or her own. • Barrow from banks • Barrow from insurance company • Invite outside investors to share in future profits. Example: A corporation wishing to build a factory could barrow from a bank or sell additional stocks or bonds. Whatever the source of additional funds, other individuals or firms decide to lend or invest funds based on their own expectation of return on investment.

Design of project If owner decide to proceed, hires a design professional. If he elects to proceed using a construction management mode, he chooses a construction professional, Who provides cost, schedule, and construction advice throughout the design process. Design is divided into 4 stages. • Programming, • Schematic design, • Design development, • Construction documents.

Programming-1 A program is a written statement of the requirements of the building. It is the basis of design. Program describes • Spaces needed, • Services required in those spaces, and • Relationships of functions to be performed in the building. Written by owner or user of building, by architect, or by a professional hired.

Programming-2 The nature of the programming process depends on two things: • The sophistication of the owner; Owners vary considerably in their degree of understanding about building process and it affects program. • The complexity of the proposed facility;The complexity of the project itself can determine how the programming needs to be accomplished. Using these information owner proceed or cancel

Programming-3 When programming is complete, the owner has information about: • The needed size of the project in relation to the requirements of the users • The mechanical, electrical and plumbing systems • Vertical and horizontal circulation • Public areas

Schematic design-1 Once the program is complete and the owner has decided to proceed, the designer begins actual design of the project. The process begins with the schematic design-the stage in which the designer defines the building’s characteristics in a number of ways. Before schematic design begins; • The owner selects a site for the building • Site investigations done by the owner give the designer information about soil conditions and makeup that in large part determine the type of foundation and structure possible for the particular site

Schematic design-2 • The architect develops preliminary floor plans that reflect the relationships of the various functional areas to one other • Sitting and location of the building are determined as well as its visual form. When the schematic design is complete, the owner is again faced with the decision to proceed further or to cancel the project. At this time, all information developed to date-market information, financing costs, construction costs and design-are factored into the decision.

Design development When project team enters design development, it pursues a single design concept. The purpose of this stage is to refine the design and obtain detailed information from the users about their requirements. During this phase owner, designer and construction professional finalize the design of major building systems. For example – structural, plumbing, elevator, roofing, mechanical, exterior façade, electrical.

Construction documents Architect creates final working construction documents used to bid the job for construction and to build the job in the field. Documents including specifications and drawings, Should meet • program criteria, …programming • Reflect the design .. schematic design, and • Refine all detailed work, …design development

Procurement Procurement: overall process of finding and purchasing the materials called for in the contract and hiring the best subcontractors to build the project. Construction documents must be accurate and must clearly communicate to the bidders. First task --- hire many subcontractors In traditional system … owner (with help of architect) requests bids from a list of qualified contractors. In CM system … project documents are divided into bid packages. owner (with help of architect and CM) evaluate requested bids. Sometimes owner purchase equipment or materials before a contractor hired. Such material is known long-lead items.

Construction Once procurement process completed, construction can begin Main element: task of managing and coordinating the field operations. This means; • Scheduling crews in proper sequence, • Choosing most efficient and safe construction techniques and methods • Directing the production process. To accomplish this task, construction professional • must order correct material, • ensure adequate supply of necessary tools & equipment, • monitor schedule, cost, and quality. A parallel task is contract administration.

Turnover and start-up After construction completed, project must be turned over to owner for use during the rest of its economic life. Turn over involves complicated technical issues and problems For example: testing of piping Turnover is also a legal process, involves various legal certification, such as certification of occupancy, and certificate of substantial completion. The process is long and tedious. Document includes … • insurance certificates, • inspection reports, • completed change orders.

Operation of facility This phase is the responsibility of owner or tenant of building. In this, building is put to the use for which it was intended. The period can last for many years before a major renovation is necessary. This phase is also the period of greatest expenditure on the project total operating cost are higher. • More money will be invested up front, but the payback can be realized in the operating costs of the facility • Facility owners and managers usually need advice about the best model to use in making decisions during the planning stages of the project

Disposal of facility At the end of its useful life, a project or a facility may meet any one of a number of fates. It may be closed down or simply abandoned. It may be disassembled or removed. It may also be renovated or overhauled

CONCLUSION People are involved in the life cycle of a building. • Who analyze the need for the facility and decide • Project enters the design/build phase • Architects are hired to design • Construction professionals are hired to carry out the actual assembly • All parties need to work in harmony

Next Chapter Chapter 5 Construction Services during design

CE-332 CONSTRUCTION ENGINEERING AND MANAGEMENT