PROJECT PHASES

Project Phases
1. Project Identification
2. Project Formulation Study
a) A Preliminary Project Formulation Study- Prefeasibility Study
b) Feasibility Study or Detailed Project Report
3. Project Appraisal
4. Negotiations & Project Approval
5. EIA and clearance procedures
6. Tendering
1. Preparation of Tender Documents
2. Notice Inviting Tender (NIT)
3. Tendering
4. Tender opening, scrutiny, evaluation, negotiation, letter of award.
7. Pre-construction Planning
8. Project Implementation
9. Project Monitoring & Control
10. Commissioning & Closeout
11. Warranty Period
 1.Project Identification
 Identification of high priority projects
 possible to finance and
 whether the Govt. and users are interested.
 Viable from technical and financial point of view.
 Cost Benefit Ratio: Cost of the project less than the expected
benefits.
 Aspects to be examined;
 Functional Aspects: Operational and civil structural plans
 Location & Site: Climate, topography, Infrastructure, land,
Labor etc.,
 Construction Aspects: Design and technical requirement
 Operational Aspects: Project Management, O&M,
Expenditure & Revenue generation, Occupational Safety &
Health
 2.Project Formulation Study
 After Project Identification: Whether the project should be
executed or not ?
 Taken up in two stages: Prefeasibility & Feasibility Study
 2. a Prefeasibility Study
 Preliminary information related to project are collected
and
 analyzed and
 decision is taken whether to go for feasibility study or not.
 It consists of Demand estimates on
 satisfying overall national and regional demand,
 alternative locations,
 preliminary technical (Whether can be taken up)and
economic feasibility (Block Cost Estimates),
 benefits and implementation
2a. Pre-Feasibility Studies
(Nainital Sewerage Plan: ADB
Funded)
 Augmentation of old sewer
network = 5 km sewer length: 250
lacs.
 GIS based mapping of the existing
sewerage system: 100 lacs
 Sewer cleaning equipments.: 100
lacs
 Slope stabilization of outfall sewer
with advanced nailing and
shortcrete technologies: 200 lacs
(4000 m2 @ Rs 5000/ m2)
Prefeasibility Study-Urban
Transport
 Document the routes—
 identify potential user groups by income and other
characteristics (e.g.,gender) along the proposed corridor,
 assess their mobility needs and problems as Basis for project
design.
 For the proposed design, estimate ridership by group and
their access to employment (destination)centers.
 Consider options for route and mode type and design to
optimize ridership and access and Minimize disruption.
 Document impacts and mitigation measures, both for
transit and NMT or alternate investments.
2 b. Feasibility Study or DPR
 If decision has been taken to take up the work- based on
technical and economic feasibility. THEN
 Owner hires a consultant to prepare a
FUNCTIONAL/DETAILED design and specifications
 These documents become bid documents, along with
CONTRACTS-general & special conditions-
 The report consists of : Precise and detailed account of what
is involved in actually setting up the project.
 Objective of Feasibility Study is to examine:
 Whether the project objectives are realistic
 Recommendations are technically sound
 Beneficial in terms of financial, economical and social,
environmental point of view
2b. Feasibility Study or
DPR- Contents
 Introduction and Govt. policy
 Objectives
 Alternative locations
 Marketing/demand analysis
 Site investigation
 Detail of structure, type, size and cost
 Layout
 Estimates
 Specifications
 O&M cost
 Working capital, cash flow requirement
 Environmental Management Plan
 Resource Availability
 3.Project Appraisal

 Examination of feasibility or DPR by various

agencies.
 Some Projects third party agencies are employed
for the evaluation of DPR.
 IIT Roorkee for Noida Authority, NGRBA, PMGSY
etc., projects
 Aspects considered; Technical, Institutional,
Financial, Investment, Environment
4. Negotiations & Approval

 Discussion with project Authorities and

financial institutions- ADB, WB etc..
 Scrutinized by Project appraisal division of
Planning commission etc…
 Methods of Work Execution
Work

Departmentally by
Employing Daily Labour Through Contractor
on muster roll

Without Tender With Tender

Piece Work
Agreemen
t-
Schedule
Lump Sum Labour
Rate
Contract Contract
Contract
Piece Work Agreement

 Rates are agreed without reference to total

quantity.
 Small work decided by competent authority
after calling quotations from approved
contractors
Lump sum contract

 Owner seeks lumpsum bid for the design

plans, specifications , scope or works
 A single lump sum is quoted for a job and
accepted as fixed price.
 Effective for small jobs where details are
exactly and precisely described.
Scheduled Rate or Unit Price
Contract
 The payment to the contractor is based on
the units of the work actually done and
measured in the field.
 The contractor has to perform the quantities
of work actually required in the field at his
quoted price, whether they are less or greater
than owner estimates
5.Tendering- Preparation of
Tender Documents
 5.1- Preparation of Tender Documents- By updating
feasibility report, specifications, filling information gaps. It
consists of :
 General and special conditions of the contract.-
 Schedule of item of works and specifications.
 Plan and drawing.
 Time of completion & Progress
 Amount of security money to be deposited.
 Mode of payment. Penalty conditions for slow progress
and delay
 Rate of power supply and water supply
 Designation of arbitration authority in case of disputes
 Tendering- Notice Inviting
Tender
 5.2 NIT- Notice Inviting Tenders: General notice issued
by the owner inviting tenders from the prospective
construction firm .
 The information is given to general public through
newspaper etc., and the purpose is to get competitive
offer.
 Tendering: Tender Submission
 5.3 Tendering: Written offer by the contractor to do work at
a given price and specified period and under certain
condition
 Open Tendering- Every registered firm is free to submit
tenders
 Limited tendering- Tenders are invited from limited or
restricted firms (Generally for specialized works)
 Single Tendering- Tenders are invited from a single party
only- When the value of work is very small, Highly
technical nature or when the firm is well known for rates
offer
 Tendering- Earnest Money
 Earnest Money: At the time of submitting tender, the
tenderer is required to deposit about 2% of the
estimated cost of the contact value of the project with
the department.
 Purpose:
 This money is collected in order to avoid refusal from
the contractor to accept the contract, once the
contract is awarded to him.
 To avoid unnecessary competition by avoiding the
contractors who may not have sound financial status.
 5.4 Tender opening, scrutiny,
evaluation, negotiation, letter
of award
 Tenders are opened by authorized officers in presence of
tenderers.
 Scrutiny- Check deposition of Earnest money, quoted
rates are not too high or low etc.,
 Evaluation-By the tender committee consisting of
members from executing, finance etc.,
 Negotiation

 Negotiation-
 Lowest offer is higher than justified amount,
 time does not permit to recall tender,
 if modifications are proposed by the lowest tender in
the scope of work.
 Though total cost is reasonable but certain items are
reasonably high or low by Etc.,
 letter of award

 Letter of Award, generally preceded by

Letter of Intent: Issued to successful bidder
for the award of work contain all agreed
terms and conditions.
 Security Money
 Security Money: After the acceptance of the
tender of a contactor, the contractor has to
deposit about 10% of the tender amount with
the client.
 This amount is inclusive of the 2% EMD.
 It serves as guarantee that the contractor will
perform the work as per specifications and will
also maintain satisfactory progress.
 It is refunded to the contractor after 6-12 months
from handling over the work to the client.
6.0 Pre-Construction Planning

 Activities performed prior to construction to prepare

project for execution.
 It includes plans for
 resource mobilization (Men, material, equipments
available at right time and right place).
 Delegation of responsibilities, powers and
authorities to various persons.
 Development of plans into activities,
 precise estimates,
 Time schedule on CPM & PERT network
6.0 Pre-Construction Planning
– Project Plan Documents
 Project Organization Chart: Showing organizational
responsibilities, authorities and relationships, linear
responsibility charts.
 Commitment & Agreements: With concerned departments
and organization, formal and legal documents.
 Administrative procedures manual.
 Work Breakdown Structure: Gives the list of basic project
components, which are further broken down into tasks and
activities.
 CPM Network: Shows in the form of chart various activities to
be performed for the project and their sequence and inter-
dependence.
 Milestone Bar Chart: The network schedules are
converted into time-scale bar charts showing
major/important events as milestone.
 Resource schedule & Plans: The bar chart form of
presentation of plans can be used for project
resources and funds and also for depicting progress.
 Reporting Formats: It would be necessary to design
formats for reporting periodically progress and
performance on projects for different levels of
management within the project and also for
Government and funding agencies.
 7.0 Project Implementation
 Mobilization of labor, materials, and equipment.
 Availability of adequate infrastructure facilities
 Land acquisition- Type, ownership
 Transport: Road (approach, haulage, plant) special equipments
(Trailers wagon, vehicles)
 Power Sources; Captive or Grid
 Building/sheds/houses: Store and warehouse for equipments,
and material during construction, shed and hutments for labor,
temporary office, nearby township.
 Communication-Telephone, Post office, fax, wireless
 Constructing the facility according to the plans and
specifications.
 Performance during-construction planning, including short-
interval schedules and team meetings.
8.0 Project Monitoring &
Control
 Monitoring requires:
 Quantitative Progress
 Cost incurred
 Comparing progress achieved and cost incurred with
already set target.
 Find out shortfall, reasons and corrective action.
 Systematic procedure to collect and analyze information
related to implementation.
 Basic objective: To identify areas where
corrective actions are required to ensure proper
implementation as per plan.
8.0 Project Monitoring &
Control
 Monitoring is required to cover the following aspects:
 Collection of information regarding physical
progress of implementation of the project.
 It includes quantitative progress of implementation
of mobilization, erection and commissioning of
equipment in time .
 Collection of information regarding cost incurred
for achieving abovementioned progress.
 Comparing the progress achieved and cost incurred
with already set target.
8.0 Project Monitoring & Control
 Projection of future progress and costs based on the
progress achieved and resources available and
finding its effect on overall target of completion of
project and its revised estimated cost.
 Find out shortfall and determine reasons for the
same.
 Initiate corrective actions for these shortfalls and
modify the plans, if so required.
 Review the corrective actions.
 To coordinate with other departments.
 Keep record of all relevant information for future
use.
 9.0 Commissioning and
Closeout
 Systems are commissioned and training is provided to
owner’s personnel.
 Punch list is prepared by owner and completed by
contractor.
 Occupancy permit is obtained and facility is turned over to
owner.
Commissioning & Close-Out
10. Warranty Period

 Contractor warrants facility for one year and will fix and
defects during that time.
 Post-occupancy evaluation may be performed by owner
to assess satisfaction of occupants.
Project Management
 General goal of Construction:
 Project on time
 Within budget
 With states quality standards
 Safe Environment
 Less than 20 % of projects meets the above requirement
 Project management is essentially about managing the project from
an idea to through completion
 Hence Project Management best described in terms of their
component processes
 Five processes groups – initiating, planning, executing, controlling &
closing
 Nine knowledge areas: Project integration management, project scope
management, Project time management, project communication
management, project risk and procurement management)