Local Contractors Coming Together To Sponsor

Each of the multiple participants in planning, designing, funding, constructing, and operating physical facilities has a different perspective on project management for construction, similar to the five blind men encountering different sections of an elephant. Specialized expertise can be useful, especially in large and complex projects, where experts from many fields can provide invaluable assistance. Nonetheless, understanding how the various aspects of the process interact is beneficial. Poor coordination and communication among professionals can lead to waste, high costs, and delays. It is in the owners’ best interests to ensure that such issues do not arise. All players in the process must consider the owners’ interests because, in the end, it is the owners who provide the resources and make the decisions.

We can focus our attention on constructing facilities’ entire project management process by adopting the owners’ perspective rather than the historical roles of specialists such as planners, architects, engineering designers, constructors, fabricators, material suppliers, financial analysts, and others. Each specialization has made significant progress in developing new procedures and equipment for efficiently completing construction projects. On the other hand, these specialists can better respond to the owner’s needs for their services, promote their expertise, and improve their productivity and quality of work if they understand the complete project management process.

The Life Cycle of a Project

Whether an individual, a private organization or a government agency owns a developed facility, it usually represents a significant capital investment. Because market demands or perceived needs drive the commitment of resources for such an investment, the facility is expected to meet particular goals while remaining within the owner’s and regulatory limits, except for speculative housing, where residential units may be offered as-built by the developer, the owners custom-made most developed amenities. A real estate developer can be considered a sponsor of construction projects in the same way that a government agency can sponsor a public project and then hand it over to another government entity after it is completed. The phrases “owner” and “sponsor” are interchangeable in project management because both have the ultimate authority to make all key decisions. Because an owner is effectively acquiring a facility based on a promise in some agreement, it will be prudent for any owner to thoroughly understand the acquisition process to keep strong control over the finished facility’s quality, punctuality, and cost.

The project life cycle for a developed facility can be depicted schematically in Figure 1-1 from an owner’s perspective. A project is designed to respond to market demands or needs promptly. Various options may be examined at the conceptual planning stage, and the technological and economic feasibility will be evaluated and compared to choose the best project feasible. The funding methods for the offered alternatives must also be investigated, and the project will be scheduled in terms of completion and cash flow availability. Following the project’s scope definition, a detailed engineering design will act as the blueprint for construction, and the final cost estimate will serve as the cost control baseline. The delivery of materials and the project’s building on site must be properly planned and controlled during the procurement and construction stages. When a building project is finished, there is normally a brief time of start-up or shake-down before the facility is occupied. Finally, the facility’s management is given over to the owner for full occupation until the facility reaches the end of its useful life and is demolished or converted.

The Most Common Construction Types

Because most owners are only interested in obtaining a specific sort of built facility, they should be familiar with standard industrial processes for the type of construction they are interested in. Similarly, the construction sector comprises a wide range of segments and goods. Some owners may only buy a built facility once in a while and are only interested in short-term benefits. On the other hand, many owners demand the acquisition of new facilities and regularly repair existing assets. It is in their best interests to keep the building sector alive. Owners have more power to affect the construction sector collectively than they realize since their actions can create incentives or disincentives for construction innovation, efficiency, and quality. It is in the best interests of all parties if the owners take an active role in the construction and positively impact the industry’s performance.

The methods of professional sourcing services, awarding construction contracts, and funding the completed building might be extremely different when planning for various types of development. The broad spectrum of advanced facilities can be divided into four key categories for discussion, each with its unique characteristics.

Construction of Residential Housing

Single-family homes, multi-family dwellings, and high-rise apartments are examples of residential housing construction. During the development and construction of such projects, developers or sponsors with experience in the construction industry typically act as surrogate owners and take charge, negotiating necessary contractual agreements for design and construction, and arranging financing and sale of the finished structures. Residential housing is typically designed by architects and engineers and built by builders who hire subcontractors for structural, mechanical, electrical, and other specialty work. Single-family dwellings, which the builders may also create, are an exception to this pattern.

General economic conditions, tax legislation, and the government’s monetary and fiscal policies all significantly impact the residential property market. Because multiple housing projects can be begun at different locations by different individuals and developers simultaneously, a minor increase in total demand can sometimes result in a significant rise in construction investment. Many new builders are drawn to residential housing development because of the relative simplicity of entrance, at least at the lower end of the market. As a result, this market is extremely competitive, with both high risks and big profits. There are many Politicians Striving for community change.