1.1  The Construction Project  item

A project is defined, whether it is in construction or not, by the following Items:

a- A defined goal or objective .

b- Specific tasks to be performed.

c- A defined beginning and end.

e- Resources being consumed.

The goal of construction project is to build something. What differentiate the    construction

industry from other industries is that its projects are large, built on-site, and generally unique.

Time, money, labor, equipment, and, materials are all examples of the kinds of resources that are

consumed by the project.

Projects begin with a stated goal established by the owner and accomplished by the project team.

As the team begins to design, estimate, and plan out the project, the members learn more about

the project than was known when the goal was first established. This often leads to a redefinition

of the stated project goals.

1.2 The Need for Project Management  Item :

The construction industry is the largest industry in the world. It is more of a service than a

manufacturing industry. Growth in this industry in fact is an indicator of the economic conditions

of a country. This is because the construction industry consumes a wide employment circle of

labor.

While the manufacturing industry exhibit high-quality products, timelines of service delivery,

reasonable cost of service, and low failure rates, the construction industry, on the other hand, is

generally the opposite. Most projects exhibit cost overruns, time extensions, and conflicts among

parties. Figure 1.1 is an example of a complicated project. 1.1 The Construction Project

A project is defined, whether it is in construction or not, by the following characteristics:

a- A defined goal or objective.

b- Specific tasks to be performed.

c- A defined beginning and end.

e- Resources being consumed.

The goal of construction project is to build something. What differentiate the construction

industry from other industries is that its projects are large, built on-site, and generally unique.

Time, money, labor, equipment, and, materials are all examples of the kinds of resources that are

consumed by the project.

Projects begin with a stated goal established by the owner and accomplished by the project team.

As the team begins to design, estimate, and plan out the project, the members learn more about

the project than was known when the goal was first established. This often leads to a redefinition

of the stated project goals.

 

1.3 The Need for Project Management Item :

The construction industry is the largest industry in the world. It is more of a service than a manufacturing industry. Growth in this industry in fact is an indicator of the economic conditions of a country. This is because the construction industry consumes  a wide employment circle of labor.

While the manufacturing industry exhibit high-quality products, timelines of service delivery,

reasonable cost of service, and low failure rates, the construction industry, on the other hand, is

generally the opposite. Most projects exhibit cost overruns, time extensions, and conflicts among

parties. Figure 1 is an example of a complicated project.

 The Project Life Cycle

The acquisition of a constructed facility usually represents a major capital investment, whether

its owner happens to be an individual, a private corporation or a public agency. Since the

commitment of resources for such an investment is motivated by market demands or perceived

needs, the facility is expected to satisfy certain objectives within the constraints specified by the

owner and relevant regulations.

1.4 Major Types of Construction Projects :

In planning for various types of construction, the methods of procuring professional services,

awarding construction contracts, and financing the constructed facility can be quite different. The

broad spectrum of constructed facilities may be classified into four major categories, each with

its own characteristics.

1.4.1 Residential Housing Construction :

Residential housing construction includes houses and high-rise apartments. During the

development and construction of such projects, the developers usually serve as surrogate owners

and take charge, making necessary contractual agreements for design and construction, and

arranging the financing and sale of the completed structures. Residential housing designs are

usually performed by architects and engineers, and the construction executed by builders who

hire subcontractors for the structural, mechanical, electrical and other specialty work.

The residential housing market is heavily affected by general economic conditions. Often, a

slight increase in total demand will cause a substantial investment in construction, since many

housing projects can be started at different locations by different individuals and developers at

the same time. Because of the relative ease of entry, many new builders are attracted to the

residential housing construction. Hence, this market is highly competitive, with potentially high

risks as well as high rewards.

 

1.4.2 Institutional and Commercial Building Construction :

In the first Institutional and commercial building encompasses a great variety of project types and sizes,

such as schools and universities, medical centers and hospitals, sports facilities, shopping

centers, warehouses and light manufacturing plants, and skyscrapers for offices and hotels. The

owners of such buildings may or may not be familiar with construction industry practices, but

they usually are able to select competent professional consultants and arrange the financing of

the constructed facilities themselves. Specialty architects and engineers are often engaged for

designing a specific type of building, while the builders or general contractors undertaking such

projects may also be specialized in only that type of building.

Because of the higher costs and greater sophistication of institutional and commercial buildings

in comparison with residential housing, this market segment is shared by fewer competitors.

Since the construction of some of these buildings is a long process which once started will take

some time to proceed until completion, the demand is less sensitive to general economic

conditions than that for housing construction.

1.4.3 Specialized Industrial Construction

Specialized industrial construction usually involves very large scale projects with a high degree

of technological complexity, such as oil refineries, steel mills, chemical processing plants and

coal-fired or nuclear power plants. The owners usually are deeply involved in the development

of a project, and prefer to work with designers-builders such that the total time for the

completion of the project can be shortened. They also want to pick a team of designers and

builders with whom the owner has developed good working relations over the years.

Although the initiation of such projects is also affected by the state of the economy, long range

demand forecasting is the most important factor since such projects are capital intensive and

require considerable amount of planning and construction time.