Some construction projects are small
renovations or repair jobs, like repainting or fixing leaks, where the owner may act as designer, paymaster and labourer for the entire project. However, more complex or ambitious projects usually require additional multi-disciplinary expertise and manpower, so the owner may commission one or more specialist businesses to undertake detailed planning, design, construction and handover of the work. Often the owner will appoint one business to oversee the project (this may be a
designer, a
contractor, a
construction manager, or other advisors); such specialists are normally appointed for their expertise in
project delivery and construction management and will help the owner define the project
brief, agree on a
budget and
schedule, liaise with relevant public authorities, and procure materials and the services of other specialists (the
supply chain, comprising
subcontractors and materials suppliers).
Contracts are agreed for the delivery of services by all businesses, alongside other detailed plans aimed at ensuring legal, timely, on-budget and safe delivery of the specified works. Design, finance, and legal aspects overlap and interrelate. The design must be not only structurally sound and appropriate for the use and location, but must also be financially possible to build, and legal to use. The financial structure must be adequate to build the design provided and must pay amounts that are legally owed. Legal structures integrate design with other activities and enforce financial and other construction processes. These processes also affect procurement strategies.
Clients may, for example, appoint a
business to design the project, after which a competitive process is undertaken to appoint a lead contractor to construct the asset (
design–bid–build); they may appoint a business to lead both design and construction (
design-build); or they may directly appoint a designer, contractor and specialist subcontractors (
construction management). Some forms of procurement emphasize collaborative relationships (
partnering, alliancing) between the client, the contractor, and other stakeholders within a construction project, seeking to ameliorate often highly competitive and adversarial industry practices.
DfMA (design for manufacture and assembly) and so-called
modern methods of construction approaches also emphasize early collaboration with manufacturers and suppliers regarding products and components. Construction or refurbishment work in a "live" environment (where residents or businesses remain living in or operating on the site) requires particular care, planning and communication.
Planning ,
Indonesia When applicable, a proposed construction project must comply with local
land-use planning policies including
zoning and
building code requirements. A project will normally be assessed (by the 'authority having jurisdiction', AHJ, typically the
municipality where the project will be located) for its potential impacts on neighbouring properties, and upon existing infrastructure (transportation, social infrastructure, and utilities including water supply, sewerage, electricity, telecommunications, etc.). Data may be gathered through
site analysis,
site surveys and
geotechnical investigations. Construction normally cannot start until
planning permission has been granted, and may require preparatory work to ensure relevant infrastructure has been upgraded before building work can commence. Preparatory works will also include surveys of existing utility lines to avoid damage-causing outages and other hazardous situations. Some legal requirements come from
malum in se considerations, or the desire to prevent indisputably bad phenomena, e.g. explosions or bridge collapses. Other legal requirements come from
malum prohibitum considerations, or factors that are a matter of custom or expectation, such as isolating businesses from a business district or residences from a residential district. An attorney may seek changes or exemptions in the law that governs the land where the building will be built, either by arguing that a rule is inapplicable (the bridge design will not cause a collapse), or that the custom is no longer needed (acceptance of live-work spaces has grown in the community). During the construction of a building, a municipal building inspector usually inspects the ongoing work periodically to ensure that construction adheres to the approved plans and the local building code. Once construction is complete, any later changes made to a building or other asset that affect safety, including its use, expansion, structural integrity, and
fire protection, usually require municipality approval.
Finance Depending on the type of project,
mortgage bankers,
accountants, and
cost engineers may participate in creating an overall plan for the financial management of a construction project. The presence of the mortgage banker is highly likely, even in relatively small projects since the owner's equity in the property is the most obvious source of funding for a building project. Accountants act to study the expected monetary flow over the life of the project and to monitor the payouts throughout the process. Professionals including cost engineers,
estimators and
quantity surveyors apply expertise to relate the work and materials involved to a proper valuation. Financial planning ensures adequate safeguards and contingency plans are in place before the project is started, and ensures that the plan is properly executed over the life of the project. Construction projects can suffer from preventable financial problems. Underbids happen when builders ask for too little money to complete the project.
Cash flow problems exist when the present amount of funding cannot cover the current costs for labour and materials; such problems may arise even when the overall budget is adequate, presenting a temporary issue. Cost overruns with government projects have occurred when the contractor identified change orders or project changes that increased costs, which are not subject to competition from other firms as they have already been eliminated from consideration after the initial bid.
Fraud is also an issue of growing significance within construction. Large projects can involve highly complex financial plans and often start with a conceptual
cost estimate performed by a
building estimator. As portions of a project are completed, they may be sold, supplanting one lender or owner for another, while the logistical requirements of having the right trades and materials available for each stage of the building construction project carry forward.
Public–private partnerships (PPPs) or
private finance initiatives (PFIs) may also be used to help deliver major projects. According to
McKinsey in 2019, the "vast majority of large construction projects go over budget and take 20% longer than expected".
Legal , widening the road from six to twelve travel lanes A construction project is a complex net of
construction contracts and other legal obligations, each of which all parties must carefully consider. A contract is the exchange of a set of obligations between two or more parties, and provides structures to manage issues. For example, construction delays can be costly, so construction contracts set out clear expectations and clear paths to manage delays. Poorly drafted contracts can lead to confusion and costly disputes. At the start of a project, legal advisors seek to identify ambiguities and other potential sources of trouble in the contract structures, and to present options for preventing problems. During projects, they work to avoid and resolve conflicts that arise. In each case, the lawyer facilitates an exchange of obligations that matches the reality of the project. ,
South Korea Procurement Traditional or design-bid-build Design-bid-build is the most common and well-established method of construction procurement. In this arrangement, the
architect,
engineer or builder acts for the client as the project coordinator. They design the works, prepare specifications and design deliverables (models, drawings, etc.), administer the contract,
tender the works, and manage the works from inception to completion. In parallel, there are direct contractual links between the client and the main contractor, who, in turn, has direct contractual relationships with subcontractors. The arrangement continues until the project is ready for handover.
Design-build Design-build became more common from the late 20th century, and involves the client contracting a single entity to provide design and construction. In some cases, the design-build package can also include finding the site, arranging funding and applying for all necessary statutory consents. Typically, the client invites several Design & Build (D&B) contractors to submit proposals to meet the project brief and then selects a preferred supplier. Often this will be a
consortium involving a design firm and a contractor (sometimes more than one of each). In the United States,
departments of transportation usually use design-build contracts as a way of progressing projects where states lack the skills or resources, particularly for very large projects.
Construction management In a construction management arrangement, the client enters into separate contracts with the designer (architect or engineer), a
construction manager, and individual
trade contractors. The client takes on the contractual role, while the construction or project manager provides the active role of managing the separate trade contracts, and ensuring that they complete all work smoothly and effectively together. This approach is often used to speed up
procurement processes, to allow the client greater flexibility in design variation throughout the contract, to enable the appointment of individual work contractors, to separate contractual responsibility on each individual throughout the contract, and to provide greater client control.
Design In the industrialized world, construction usually involves the translation of designs into reality. Most commonly (i.e.: in a design-bid-build project), the design team is employed by (i.e. in contract with) the property owner. Depending upon the type of project, a design team may include
architects,
civil engineers,
mechanical engineers,
electrical engineers,
structural engineers,
fire protection engineers, planning
consultants, architectural consultants, and archaeological consultants. A 'lead designer' will normally be identified to help coordinate different disciplinary inputs to the overall design. This may be aided by integration of previously separate disciplines (often undertaken by separate firms) into multi-disciplinary firms with experts from all related fields, or by firms establishing relationships to support design-build processes. The increasing complexity of construction projects creates the need for design professionals trained in all phases of a project's life-cycle and develop an appreciation of the asset as an advanced technological system requiring close integration of many sub-systems and their individual components, including sustainability. For buildings,
building engineering is an emerging discipline that attempts to meet this new challenge. Traditionally, design has involved the production of
sketches,
architectural and
engineering drawings, and
specifications. Until the late 20th century, drawings were largely hand-
drafted; adoption of
computer-aided design (CAD) technologies then improved design productivity, while the 21st-century introduction of
building information modeling (BIM) processes has involved the use of computer-generated models that can be used in their own right or to generate drawings and other
visualisations as well as capturing non-geometric data about building components and systems. On some projects, work on-site will not start until design work is largely complete; on others, some design work may be undertaken concurrently with the early stages of on-site activity (for example, work on a building's foundations may commence while designers are still working on the detailed designs of the building's internal spaces). Some projects may include elements that are designed for
off-site construction (see also DfMA,
prefabrication and
modular building) and are then delivered to the site ready for erection, installation or assembly.
On-site construction s, for the rebuilding of the
Houses of Parliament in
Cape Town CBD Once contractors and other relevant professionals have been appointed and designs are sufficiently advanced, work may commence on the project site. Some projects require preliminary works, such as land preparation and levelling, demolition of existing structures (see
below), or laying foundations, and there are circumstances where this work may be contracted for in advance of finalising the contract and costs for the whole project. Typically, a construction site will include a secure perimeter to restrict unauthorised access, site access control points, office and welfare accommodation for personnel from the main contractor and other firms involved in the project team, and storage areas for materials, machinery and equipment. According to the ''McGraw-Hill Dictionary of Architecture and Construction's
definition, construction may be said to have started'' when the first feature of the permanent structure has been put in place, such as pile driving, or the pouring of slabs or footings.
Commissioning and handover Commissioning is the process of verifying that all subsystems of a new building (or other assets) work as intended to achieve the owner's project requirements and as designed by the project's architects and engineers.
Defects liability period A period after handover (or practical completion) during which the owner may identify any shortcomings in relation to the building specification ('defects'), with a view to the contractor correcting the defect.
Maintenance, repair and improvement Maintenance involves functional checks, servicing, repairing or replacing of necessary devices, equipment,
machinery, building infrastructure, and supporting utilities in industrial, business, governmental, and residential installations.
Demolition Demolition is the discipline of safely and efficiently tearing down
buildings and other artificial
structures.
Demolition contrasts with
deconstruction, which involves taking a building apart while carefully preserving valuable elements for reuse purposes (
recycling – see also
circular economy). ==Industry scale and characteristics==