Construction and Implementation of a Capital Project - Simply Put!

Introduction

In the Marstan Guide Introduction to Project Management, we said that Construction and Implementation is the fifth of the seven stages of a capital project.

The manner in which the project will be implemented is effectively set when the form of procurement was decided (See Assembling the project team - Simply Put!) and the design was executed (see Managing the design phase - Simply Put!)

The main purposes of the construction and implementation phase

The main purposes of the construction and implementation stage are to:

1. Construct the building required at the time and price agreed.
2. Plan for the Client’s subsequent occupation of the building.
3. Procure equipment or fittings which will be fitted by the Client after the project has been completed by the Contractor.

The main components of the construction and implementation stage

The main components of this stage are:

1. Construction
2. Programme management
3. Quality management
4. Cost control
5. Equipment procurement
6. Commissioning plans

1. Construction

On the face of it, the construction phase is the period when the Contactor is handed the site to carry out all of the work, whilst the Client, Project Manager and Design Team have little to do.

During this stage, all members of the Project Team are fully involved to ensure that they get the product that they want, delivered safely and within time and budget. It is worth bearing in mind that the safety responsibility alone (which is delegated to the Contractor) still remains a major responsibility for the Client and their advisers.

2. Programme management

Too few projects finish on time. One of the reasons for this is a failure by Contractors, Project Managers and Design Teams to acknowledge early enough that a trend for delay has occurred. There is often an optimism that “we will catch up”, although this is rarely the case in reality.

The remedies for this are simple:

1. Project Managers should pay close attention to progress in relation to programme.
2. Progress should also be measured in cash flow terms as this is less open to interpretation than a programme.

The earlier that a delay is acknowledged, the greater the chance that it will be mitigated.

3. Quality management

This requires a detailed knowledge of the drawings, specifications and contract documents together with a process for regular and detailed observation of completed sections of the work on site.

This is an area where there would be a false economy if Design Team fees are negotiated down too hard.

4. Cost Control

Cost control procedures must be implemented at the outside of a project and remain in place until the project is complete and all of the final accounts have been paid. The most important thing to a Client is the out-turn cost of a project.

Effective cost control procedures should encapsulate the following principles:

1. The initial budget must be realistic and accurate otherwise the project is destined to go over budget from the outset.
2. The independent cost adviser must be given full licence to report independently.
3. The expenditure should be monitored closely and any adverse trends discussed to determine if savings are necessary.
4. Design changes and client changes should be avoided unless they are absolutely unavoidable.
5. Decisions should be made quickly so that the Contractors are not delayed as this causes additional costs.

5. Equipment procurement

Most Clients have equipment which they will purchase separately because it would be inappropriate for it to be managed by a Building Contractor.

In the ideal world, all such equipment would arrive on the day after the building was complete. (Too early and the Client would be faced with a storage problem; too late and there will be delay to the site for operational completion.)

6. Commissioning Plans

As soon as the building is complete, the Client can carry out the operational commissioning of the building. The Contractor would have been responsible for testing the building and its services, but the Client needs to be satisfied that his staff know their way around the building, understand how to use new equipment and can operate everything safely and efficiently.

The “deliverables” at the end of the Construction and Implementation stage

At the end of this stage you should have the following:

1. A completed building with all components and services working.
2. A list of defects to be rectified during the course of the defects liability period.
3. A secure store filled with all equipment to be installed directly by the Client or their supplier.
4. A set of plans for commissioning the building and training staff to use the building and equipment.