Basically, all projects undergo the same processes from growth to maturity. This is called the project development lifecycle and it represents all the major stages of evolution in any commercial undertaking. Construction projects span a wide range of possible installations occurring in many different settings. Some are small repair or makeover endeavors while others are complex infrastructural creations. A commercial construction project can be as modest as a Greenwood asphalt repair task or as large as a nuclear power plant. The common factor in all of them is that they are all commissioned by corporate, industrial, or institutional clients. The surprising thing is that notwithstanding the size, nature, or cost of any commercial project, they all share a similar life story. And it starts with:
This is the conception stage where a need is identified and a solution proposed. The solution is the project and its specifications and feasibility are determined by the need that needs to be fulfilled or solved. This is the stage where the size, function and quality of the project are determined. The project cost is roughly estimated and the expected business/financial benefits outlined. Key stakeholders, such as the project financier/client, manager, contractor, quantity surveyor/estimator, engineer etc, are also identified and listed.
The next step involves the creation of a rough outline or design of the project followed by the crafting of a detailed plan. The rough draft is used as a general guide to identify all the key elements and issues that feature in the project. The detailed design comes with full development plans including visuals for the construction process and listed quantities of required materials and resources — all these are used to create and compute estimated project costs.
Now that you have a set of fully developed project plans, its time to think about the cash required to make this proposed dream a reality. This stage involves arranging for the procurement of adequate financial resources to cover all the expenditures projected above. The nature and size of the project usually dictates the structure and type of financing. Mostly, there are three major financing concerns. There is the project development expenditure that covers the two stages discussed above. There is also the actual construction or implementation costs to finance the capital costs. The third bill is for contingencies; just in case there are cost excesses and time delays. Some project budgets also include project maintenance and operational costs.
Hiring Of Contractors And Legal And Regulatory Consents
Before construction begins, you need to hire the constructors. You should start with a contractor. And if you choose right, he should be able to cater for all the other workforce requirements. A good contractor should also assist in the procurement of building and construction permits & authorizations. You will still need legal and regulatory approval for issues like fire safety, health & safety, water, and so on. Sometimes you might be required to engage in public consultation and also to conduct an environmental impact assessment.
This the most resource-intensive stage in the whole project development lifecycle because the actual physical construction happens here. The whole process is based on the already established and signed project contract, which includes the terms of payment.
The last step is the surrender of the completed project by the contractor to the client. This might include training and a performance evaluation period. Some contracts feature a maintenance and warranty period.