3.

Planning and design phase

ARE 4122
CONSTRUCTION MANAGEMENT

By
TADESSE AYALEW

LECTURER

CHAIR OF CONSTRUCTION MANAGEMENT, EiABC

Outline
 Introduction
 Planning and feasibility study stage
 Design stage
 Contract document development stage
3.1 Introduction
 In this chapter we describe the significant activities that take place
in the project development process prior to the selection of the
organizations that will assemble the various project elements in
the field.
 After describing many of the parties involved in the planning and
design phase, we divide this phase into three stages.
 In the first, or planning and feasibility study stage, the various
parties define and clarify the project’s purpose and scope, conduct
feasibility studies, select and acquire land and investigate site
conditions and consider options, in a preliminary way, for how the
work might be assembled.
 In the second, or design stage, schematic design lays out the
relationships among the project elements, while design
development provides the detailed calculations and drawings that
specify the sizes and locations of the structural members,
earthworks, mechanical systems and all other parts that make up
the project.
 In the contract document development stage, all of the documents
required to enter into a construction contract are put together,
including the detailed working drawings, technical specifications
and legal conditions of the contract.
 When the planning and design phase is complete, the owner or the
owner’s representative is ready to select the construction
organization.
3.2Planning and feasibility study stage
 Two key things should be accomplished early in the planning and
feasibility study stage.
 First, there must be a clear understanding of the project’s objectives,
purposes, scope and nature by both the client/owner and
organization responsible for carrying out the work (or at least those
members of the project team identified by that time); a brief or other
defining document is essential to this process.
 Second, a relationship between the client/owner and the project
delivery organization must be established, with clearly defined roles
and responsibilities.
Consultant selection
 Among the first tasks to face the owner when initiating the project

will be to select the primary design professional.

 The selection procedure outlined below can also apply to the

selection of sub consultants and others on the project team,

although often in a somewhat modified an simplified form.

 In order to obtain proposals from prospective consultants, the

owner will sometimes begin by soliciting preliminary expressions

of interest and qualification.
 Such solicitations may be made available in the local newspaper, in

professional publications and newsletters and by direct mailings to

previously engaged firms.

 They will describe the proposed project in a general way and

invite responses by a fixed deadline. Response may require

completion of a questionnaire outlining the ‘consultant’s
qualifications.

 After the prospective consultants express their interest, the owner

selects the best suited for further consideration.

 Then selected firms are invited to prepare proposals which contain

at the least the following:

 statement of work,

 areas of expertise required,

 time schedule,

 type of contract proposed,

 project budget,

 submittal date,

 information to be included in the proposal and expected

selection date.
 Preparation of effective proposals is essential to the long-term health of

the consulting organization; many hundreds of hours can be expended

on a single proposal.

 To be fair to all parties, the owner should inform proposers of the

criteria that will be used to evaluate proposals.

 Most design professionals believe strongly that selection should be

based on qualifications rather than price

 Qualifications-based selection (QBS) uses criteria other than price to select

the consultant, with the fee decided after selection;

 According to FIDIC, in QBS procedure, the proposals would include such elements as the
following
 past experience with projects of a similar nature;

 details of organisation, project control and financial control;

 size, expertise and responsibilities of staff, especially the qualifications of the proposed

 project design manager;

 type of organisation and managerial method for executing the work;

 quality assurance organisation;

 knowledge of local conditions;

 local resources;

 project methodology;

 availability of resources;

 schedule;

 an indication of how well the proposer understands the project.

 Firms prepare their proposals using these or similar elements as

their outlines, knowing that the evaluation will be based on those

criteria.

 The proposals are submitted and evaluated, usually by a committee

from the owner’s organization, sometimes with the help of the

programme or project manager, if one has been selected by that
time.

 The top two or three candidates then become the shortlisted firms

and interviews/negotaition are held with each.

 Following the interviews, a top-ranked firm is identified (not

necessarily Engineering International, Inc., depending upon

the interviews) and negotiations are undertaken to try to
reach an agreement for services.

 During these negotiations, the issue of an appropriate fee is

considered. If these negotiations fail to reach an agreement,

negotiations are held with the next-ranked firm, and so
forth, until a suitable understanding is reached.
Site investigation
 In parallel with other preliminary planning, investigation of

the site is conducted at varying levels of detail.

 When several alternatives are still under consideration, the

various potential sites will be studied from the standpoint of

general soil conditions, topography, access and cost.

 As the options are narrowed, further detail will be developed

on the preferred option or options. The geotechnical

specialist will provide major input at this step.
Constructability analysis
 Throughout planning and design, it is essential to consider
whether proposed alternatives can be built and whether they can
be built efficiently.
 The term ‘constructability’ is used for this evaluation, which is a
continuing process, perhaps more active during the design stage
. . . a process that utilizes experienced construction personnel with
extensive construction knowledge early in the design stages of projects to
ensure that the projects are buildable, while also being cost effective,
bidable, and maintainable.
Public input
 We have already suggested that members of the general

public may be involved in the development of the project

programme, prior to the identification and study of
alternative approaches to meeting the programme objectives.

 The public will likely have other opportunities as well to be

part of the project.

 At various points in the planning and design process, public

hearings and workshops may be held.

Preliminary cost estimate
 In order to determine whether an alternative under consideration

is financially feasible, an estimate of its cost is needed.

 During the planning process, such an estimate cannot be made

with a large degree of precision, as we indicated in our discussion

of the role of the cost estimator.

 Usually the estimator uses some broad measures of cost to develop

the estimate.
Financial feasibility analysis
 Not only must a project meet certain technical and performance
requirements, it must also be financially viable.
 The funds proposed to be invested in the project must show the
potential to generate an economic return to those investing in the
project that is at least equal to that available to them from other
similarly risky investments.
 This concept of ‘return on investment’ is appropriate for most
projects, whether in the private or public sector.
 For a private-sector manufacturing facility, the company making

the investment of funds expects to generate sufficient cash flows

from operating the facility to pay for the construction and the

ongoing operating expenses and, in addition, have an attractive

interest rate of return.

 In the case of a publicly funded roadway or school facility, those

ratepayers who provide the funding expect that the benefits, either

in money terms or in non-quantifiable measures, will be at least

equal to the funds invested in the project.

 Project recommendation
 Having studied the various options from the standpoint of costs, economic

benefits, ease of construction, schedule impacts, as well as the all-important

matter of alignment with user objectives and the project programme, the design
professional is then in a position to recommend an option.

 Sometimes the recommendation will be not to proceed; ‘do nothing’ is always

an option! Whatever the recommendation, the design professional will prepare a

report for the owner describing the planning process, identifying the
alternatives and explaining the rationale for the selected option.

 If the recommendation is to proceed, the report will suggest the appropriate

steps to be taken to launch the design stage. The choice of whether to

implement the recommendation is the owner’s, of course.
 Funding
 The point in time at which funding approval is sought for a project

varies with the nature of the project.

 Sometimes the money has been allocated before much of the planning

process has been carried out.

 Occasionally a complete design is prepared, ready for contractor

selection, prior to availability of funds. More often, however, the

process outlined above leads to a recommendation that the project

proceed and that it be funded. In this case, before further design

efforts are undertaken, assurance of available funding is sought.

Site selection and land acquisition
 Until funding is approved, there is no need to acquire land

for the project (assuming the site is not already in possession

of the owner).

 As explained earlier, various sites will likely have been

investigated, each with alternative layouts specific to the site.

 In our site investigation section, we listed such considerations

as soil conditions, topography, access and environmental

impacts as important site characteristics.
 When funding is approved, it may be for a project at a
specific site or the approval may allow for alternative sites,
depending upon further investigation and negotiation.
 In any case, ultimately the project site, if not already owned,
must be acquired, through purchase, lease or other
arrangement.

 The site acquisition step completes the usual process of

planning and feasibility study and allows the design stage to

begin
3.3 Design stage

 The two parts of the design stage are schematic design and

design development, after which the contract document (or

construction document) development stage results in fully
completed documents.

 The process is a continuum, with some overlaps and

considerable similarity among the topics and tasks. We begin

by describing schematic design.
3.3.1 Schematic design

 The design professional is responsible for producing a set of

preliminary drawings for approval by the owner.

 On a building project, the architect will take the lead in

developing a design concept with plan, elevation and

sectional views that meet the space and program me
requirements.

 Engineers will develop concepts of how the various systems

will fit into the facility

 These preliminary drawings may be freehand sketches, but

they should illustrate the project’s character and emphasis

such aspects as harmony with the surrounding area and any
improvements, architectural style, exterior appearance,
planning and zoning requirements and overall structural
concepts.
3.3.2 Design development
 Design development activities flow naturally from, and are
based on, documents produced during schematic design.
 All of the major decisions for the project will be made during design
development. The sketches prepared during schematic design will be
thoroughly detailed and developed into a complete set of design
drawings. All building materials, fixtures and finishes will be selected . . .
When [design development] is complete, the project will be fully
developed
3.4 Contract document development stage

 During this final stage of the design phase, all of the previous

effort is transformed into documents that will form the basis

for the construction contract.

 When this stage is completed, the contractor, or contractors,

can be selected, after which the work involved in procuring

and assembling the physical parts can begin.
Thank you