Construction Project Development & Contract Fundamentals

Construction Project Development Notes

Module Information

• Module: Construction Project Development

• Course: CM 4306 – Building Construction Contract

• Instructor: Vinny Kaushal, Ph.D., P.E., Associate Professor of Instruction, Department of Civil Engineering, University of Texas at Arlington

Development & Construction Process: Project Origin

• A project typically originates from an unfulfilled need by a Developer, Owner, or Governmental Agency.

• Common Needs Include:

  • To make money (profit generation).

  • Need for a new or larger office facility, or expansion of an existing one.

  • Requirement for a new or larger facility to accommodate new technology.

  • Development of new schools, roads, bridges, or other infrastructure.

  • Upgrades to existing infrastructure.

Development Phases

• Before design and construction, projects undergo several critical development phases:

  • Marketing Studies: Assessing market demand and viability.

  • Feasibility Studies: Evaluating the practicality and potential success of a project, encompassing:

    • Programming: Defining the project's functional requirements and spaces.

    • Conceptual Estimates: Initial cost approximations.

    • Proformas: Financial projections to assess profitability.

  • Site Selection: Involves a thorough assessment of potential sites:

    • Entitlements: Obtaining necessary legal rights and approvals for development.

    • Phase I Environmental Studies: Initial environmental assessment to identify potential contamination.

    • Soil Investigation: Geotechnical studies to understand subsurface conditions.

Selection of Consultants

• A project requires a diverse team of consultants, broadly categorized into Design Teams and Specialty Consultants.

• Design Teams:

  • Architect: Leads the overall design and aesthetic.

  • Engineers: Specializations include:

    • Civil Engineer

    • Structural Engineer

    • Mechanical Engineer

    • Electrical Engineer

    • Plumbing Engineer

    • Acoustical Engineer

  • Landscape Architect: Designs outdoor spaces.

  • Interior Designer: Plans and designs interior spaces.

• Specialty Consultants:

  • Waterproofing

  • Environmental

  • Curtain Wall

  • Commissioning (ensuring systems operate as intended)

  • Green Building/LEED (Leadership in Energy and Environmental Design)

  • Permitting

  • Accessibility

• Construction Team:

  • Construction Manager

  • General Contractor

  • Estimating personnel

• Green Building Team:

  • LEED® Accredited Professional

  • Commissioning Agent

Other Project Participants

• Beyond the core consultant teams, numerous other parties are involved:

  • Super Subs: Major subcontractors with significant scopes of work.

  • Government Agencies – Authority Having Jurisdiction (AHJ): Entities with legal control over building codes, zoning, and permits.

  • Subcontractors/Sub-subcontractors: Perform specialized work packages.

  • Manufacturers, Suppliers, Product Representatives: Provide materials and equipment, and technical support.

  • Testing & Inspection Agencies: Ensure quality and compliance for a range of elements:

    • Soil

    • Environmental

    • Concrete

    • Waterproofing/Sealants

    • Quality control

    • Steel frame

    • Welding

    • Torque (e.g., structural connections)

  • Owner’s Representative: Represents the owner's interests and manages the project on their behalf.

  • Facility Manager: Oversees the operation and maintenance of the completed facility.

  • Specifications: Detailed written requirements for materials, equipment, and workmanship.

  • Construction Contract Administration: Managing the contractual obligations throughout construction.

  • Contractor, Construction Manager, Project Manager, Superintendent, Project Engineer, Risk Manager: Key personnel on the construction side.

Facility Life Cycle (Modules Perspective)

• The project involves a continuous life cycle, which can be broken down into distinct modules:

  • Module $2$: Project Conception – The initial idea and needs identification.

  • Module $3$: Design – Development of plans and specifications.

  • Module $4$: Construction Documents – Detailed drawings and specifications for construction.

  • Module $5$: Project Delivery – The method chosen to execute the project.

  • Module $6$: Construction (Procurement) & Negotiating – The actual building process and contract negotiations.

  • Module $7$: Facility Management – Ongoing operation and maintenance of the completed structure.

  • Module $8$: (Implied) – Often relates to end-of-life, renovation, or future expansions, tying back to the cycle.

Renovations of Existing Facilities

• When renovating, a thorough evaluation of the existing facility is crucial:

  • Site: Access, subsurface conditions, drainage, parking, zoning compliance, and existing utilities.

  • Function: Adequacy of current spaces for intended new use.

  • Structural: Integrity and capacity of the existing structural system.

  • Envelope: Condition of the roof, walls, windows, and sealants.

  • Environmental: Presence of hazardous materials or environmental concerns.

  • Systems: Evaluation of HVAC, Plumbing, Electrical, Fire Alarm, Fire Protection, Life Safety, and Accessibility systems.

Design & Document Phases

• The design progresses through several stages, often aligned with AIA (American Institute of Architects) classifications:

  • Conceptual (Schematic per AIA):

    • Focuses on the program, basic plans, and elevations.

  • Schematic (Design Development per AIA):

    • Defines the size, shape, and primary materials for the project.

  • Construction Documents (CDs) (same per AIA):

    • Comprises detailed drawings and specifications used for the actual construction of the facility.

Design & Contract Development Progress

• Design documents evolve in stages, typically measured by completeness:

  • $1$. Conceptual: Often starts as a