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Estimation, Valuation & Project

Management

Civil Engineering Department

Indian Institute of Engineering Science and Technology,
Shibpur
Jul – Nov 2019

Introduction to Project Conception

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Project Conception
• Project is defined in the dictionary as “a scheme of something to
be done”.
• Scheme is defined as “a plan of proposed action for achieving an
end”.
• Plan can be defined in many ways
• narrowest sense, denotes a particular view of an object looking from top
• broader sense, denotes detailed method formulated beforehand for
undertaking any project and presented in the form of proposals, reports and
drawings.

• In practice these three terms -- project, scheme and plan are

somewhat interchangeably used.

Project Conception
• Project Development Life Cycle

Stage – I Inception, Project Planning, Selection and approval

Stage – II Implementation
Stage – III Management Operation and Maintenance
Stage – IV Improvement, Augmentation, Renovation, Expansion etc. as necessary
and if feasible.
Stage – V Replacement and Renewal
[Repeat Stage – I to IV in respect of the new system]

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Project Conception
• Project Development Life Cycle

Stage – I Inception, Project Planning, Selection and approval

• Survey and Analysis of current situation and Projection of future
requirement and demand.
• Formulation of basic proposal for meeting the requirement including
preparation of basic functional plan
• Preparation of Preliminary Project Report indicating specific plan of
action comprising
•Plans [e.g. building plan]
•Design and drawings [e.g. structural design and drawing]
•Bill of quantities and cost estimate
• Obtaining decision for implementation of the project
• Detailed working drawings, detailed estimate and specification,
Preparing implementation schedule and construction work programme.
• Preparation of Detailed Project Report

Project Conception
• Project Development Life Cycle

Stage – II Implementation
• Preparation of Tender Document, Invitation of Tender, and Selection
of Contractor
• Construction Planning and Management
• Construction supervision and monitoring in respect of
Control of quality
Control of cost
Control of time

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Project Conception
• Project is a group of discernible tasks or activities that are
conducted in a coordinated effort to accomplish one or more
unique objectives.
• Management is to effectively plan, organize, staff, direct and
control a process for the achievement of goals and objectives.
Management includes steps of planning, scheduling and
controlling the various phases or segments of a construction
project.
• Construction project management may be defined as the
planning, scheduling, evaluation, and controlling of construction
tasks or activities to accomplish specific objectives by effectively
allocating and utilizing resources and also selecting appropriate
technology in a manner that minimizes costs and maximizes
customer / owner satisfaction.

Project Conception
• Resources
• Material resources
• Equipment / Machinery resources
• Spatial resources
• Manpower resources
• Temporal resources

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Project Conception
• Characteristics of Construction Project
• In terms of annual expenditure construction industry is one of
the largest industries in the world.
• It is an aggregation of diverse trades and professions that have
a strong influence on the global economy.
• All constructed facilities are built following the intent of
functions and forms.
• Construction projects are undertaken by the individual (single
person / public or private organization) to create a new facility
or renovate existing facility.
• Construction projects are of two types
 Horizontal construction: Roads, bridges, dams, airports,
tunnels etc. also termed as heavy construction.
 Vertical construction: Residential and non-residential building
construction.

Project Conception
• Construction Project and Manufacturing Industry
• Similarity of Construction industry and Manufacturing Industry
 Set up at particular site
 Select and procure appropriate resources
 Fabricate the product
• Difference between Construction industry and Manufacturing
Industry
 Manufacturing industry is normally static whereas
Construction industry is dynamic
 Manufacturing industry is more standardized but the process
of Construction industry is more difficult to standardize.

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Project Conception
• Project planning addresses
• What is going to be done in the project?
• What recourses will be necessary?
• How the project will be accomplished?
• Where the project will be undertaken?
• By whom the project will be undertaken?
• When the project will be made?

Project Management
• Project Planning Procedure
• Define project objective
• Establish goals and final target
• Set up the means of achieving goals i.e. activities
• Evaluate the available resource
• Determine alternatives course of action
• Test for consistency with the policy
• Choose the final alternative

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Project Management
• Scheduling
• It is the allocation of resources.
• Laying out of actual activities of the project in time order
• Assigning the starting and completion dates of each activity of
the work
• Calculating material and man power requirements

Need for Construction Project Management

• As the complexity of projects increases the requirement of
organized planning and scheduling enhanced.
• An organized planning procedure define effectively
• Sequential list of tasks and sub-tasks
• Project time as well as time of tasks and sub-tasks
• Costs
• Responsibility
• Need for organized planning and scheduling is influenced by
• Project size and number of project activities
• Project type
• Background of project / construction manager
• Project cost
• Contract requirements
• Owner requirements
• Resource characteristics
• Risk assessment

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Need for Construction Project Management

Number of Project Activities / Level of Details

Number of activities tends to get
unmanageable as project
becomes large
Increase in project
size and
complexity tends
to more rapidly
increase number
of activities

Slow increase in number of

project activities in this section

Project Size / Complexity