Housing Project Development phases

Housing Project Development phases
The housing project development process can be divided into the following broad phases:
1. Project initiation and validation phase - Conceiving the development idea or concept and initiating the project, including gaining control of a site that suits the idea
2. Pre-design feasibility or development appraisal phase - Preliminary studies are conducted to determine if the idea is viable, and whether to proceed
3. Pre-contract detail design development and technical documentation phase - Extending the appointment of professionals for further work stages, refining and finalising designs, conducting cost estimates and feasibility studies, preparing technical documentation, obtaining municipal approval to start building, initiating marketing (if applicable), and securing funding
4. Construction procurement or tender phase – Deciding on tender and contracting strategies and options, calling for proposals or tenders, adjudicating tenders, and awarding and signing construction contracts
5. Implementation or post-contract construction phase - Managing the actual construction process from site handover to the contractor(s) to taking on the completed units, and closing out the process financially and administratively

Why is good construction management practice important?

Good construction management practice is essential in maintaining efficiency, cost-effectiveness and control on projects. This, in turn, helps to maintain and protect projected profits, long-term financial viability, integrity, good reputation and good customer relations. Effective construction management, therefore, is an essential tool in ensuring the sustainability of the construction entity, together with marketing and adequate capitalisation. Other reasons for practising good construction management include the following:
Ensuring the most efficient and effective use of scarce and costly resources such as money, people’s time, materials and equipment in producing affordable housing to people with low income
Maintaining high standards of quality and workmanship to ensure that beneficiaries live in pleasant and well-functioning buildings; and managing entities enjoy low-maintenance requirements and expenses for the ultimate benefit of paying occupants
Maintaining high standards of health and safety on building sites
Setting an example and being a role model for aspiring entrepreneurs and development organisations in the community
Building a reputation for dependable service (on time, within budget, and of good quality) with clients, communities and funding agencies
Building trust and good relations with suppliers, subcontractors, professionals, and support organisations, which leads to smoother running of projects with fewer problems, delays and disputes
• • • • • •

How should the entity behave when acting as a "main contractor"?

Where an entity acts as developer only, it will normally employ professional consultants and a main contractor to do the design and construction work respectively. In this case, design risk and accountability rest with the design team, while construction risk lies with the main contractor.
Acting as both developer and main contractor often places an entity in a position in which it is important to draw a clear line between the two responsibilities, and to organise its operational structure or project in such a way that accountability resides where it appropriately belongs. This could mean, for instance, that the external design team reports to those members or employees within the entity that are responsible for managing the development process, and that construction-related activities and resources (subcontractors, suppliers and labour) are managed by other members or employees of the entity responsible for managing the construction process.
Establishing and maintaining differentiated functions and accountabilities becomes difficult where some or all of the same people from the organisation are involved in both functions (as is often the case). It is advisable to draw up function charts and organograms before starting a building project, so that staff who fulfil dual or multiple roles can clearly differentiate between the actions required for management of the development process on the one hand, and management of the construction process, on the other.
Acting as a main contractor only requires an entity to focus on the management of construction process. This also requires an operational structure to be in place, in order to clarify the roles and responsibilities of each of the members or employees.

What is construction?
Construction can be seen as the conversion of "raw" resource inputs into defined functioning outputs, by means of a managed process.
More specifically, construction is the use by a contractor of supervised labour, and appropriate plant, equipment and other constructional aids, to process and assemble materials and components on site (sometimes partly off site), according to design and specifications, into a completed functioning building.
What are the main objectives of a construction project?
The main objectives of each construction project (based on the principles of project management) are to erect the building or facility in accordance with the design and specifications, with the most effective use of resources and control of risk, and to complete it:
within the budget (allowable cost)
on time (within the specified and agreed contract period or legitimate extensions thereof)
to an acceptable and agreed standard of quality and workmanship
The above are the "technical" objectives of a project. There are usually other "softer" objectives as well, such as achieving buy-in through participation, capacity building, skills transfer, and promoting job creation and local economic development.
What does a main contractor do?
Acting as the main contractor on a building project involves the following:
Interpreting the project drawings, specifications, tender and contract documents, in order to fully understand the project requirements, risks, and legal and physical conditions under which it will have to be carried out
Using the above interpretation to:
estimate the likely cost (for tendering, budgeting and cost-control purposes)
determine and allocate resources to the different phases of the work
plan a functional site layout (placing of material stockpiles, storage, administration and service facilities, securing entrances and ensuring efficient movement of vehicles)
plan and schedule the execution of the work, establish quality control measures, and determine own working capital and cash-flow requirements for the work to be done