Project appraisal is the process of evaluating a project’s viability and potential returns before investors commit resources. Project appraisal is crucial for several reasons. It helps manage financial risk by providing essential data to create risk mitigation strategies. It also forecasts potential returns on investments, enabling comparisons with expected returns. Additionally, it ensures that investment decisions align with organizational objectives. Finally, this process assesses how efficiently and effectively resources are used in making decisions.  Several project appraisal approac ..read more

Profit is not earned at the end of a project; it is secured at the start with accurate cost estimation and proper cost planning. This statement highlights the importance of understanding these two key terms, often essential for commercial management professionals but frequently misunderstood, even by practitioners. This raises the question: Are these two connected, or are they separate concepts? To understand their relationship, first we need to know what each term means. Cost Estimation & Cost Planning Estimation is the process of determining the overall cost requirements before starting ..read more

Have you ever looked at a towering skyscraper or a sturdy bridge and wondered about the journey it undertook from just an idea to its grand existence? Welcome to the fascinating world of civil engineering and construction, where dreams are crafted into concrete realities through meticulous planning, design, and execution. In this article, we embark on a journey through the Seven stages of a project lifecycle in construction, exploring each phase’s significance and the magic it brings to the built environment. Stage 1: Conception Every monumental project starts with a spark of inspiration, a v ..read more

Cost-benefit analysis is a comprehensive project appraisal technique used by both public and private organizations to aid in complex investment decisions. It Assesses the input costs and output benefits by means of a market approach. This process involves identifying, comparing & ranking options using multiple criteria. Some projects still proceed even when a conventional development appraisal gives a negative residual figure because Conventional appraisal only considers the cost of land, construction, maintenance, professional fees NOT Value to individuals, cities, Time, life etc. CBA ref ..read more

The design brief is the project management document that consists of information about the client and client’s requirement such as space, use, look and comfort building. It outlines business objectives and associated design strategies. It is connected to the design and construction contract. The document describes the work to be built to the contact amount. A thorough and design brief is a critical part of the design process. It helps develop trust and understanding between the client and designer – and serves as an essential point of reference for both parties. Features of a standard design b ..read more

Disputes are inevitable part of construction industry irrespective of size and complexity of projects. They not only waste money, but also reduce profitability and relationship amongst project stakeholders. In this series of articles, management of disputes shall be discussed in depth covering the topics such as reasons for disputes, types of disputes, impact of disputes and resolution methods of disputes. Reasons for construction disputes Lack of understanding about contract Financial pressure Organizational and operational culture External Factors (Consultants/Weather/Legislation) Contract ..read more

Construction Risk Management – Introduction In theory, risk is usually defined as a positive or negative deviation of a variable from its expected value or status. But, generally risk is understood only as a loss. Risk is defined as a potential future event which is uncertain in likelihood and consequence and if it occurs could affect your company’s ability to achieve its project objectives. In order to turn risks into chances, the Risk Manager must first know his risk sufficiently well. Risk management focuses to avoid losses and seize available chances from risks. Effective risk management s ..read more

Key Construction Management Professionals: Introduction Prior to understand the roles and responsibilities of construction management staff, it is recommended to understand some key words. • Professional – A person providing quality services to the community without harming to the society as well as profession. • Professionalism: An attitude that individuals assume to portray and protect the image of profession • Professional = Skills + Knowledge + Respect for ethics Although there are several professionals involving in construction industry, in this article roles and duties of following profe ..read more

Client satisfaction and understanding of the process is a vital factor affecting the construction industry’s business. Early days, every countries and construction companies were using different work flow and it creates conflicts amongst stakeholders. Therefore, Royal Institute of British Architects (RIBA) has introduced a plan of work (Framework) to construction management professionals and clients to ease process by giving extreme clarity on each phases of project. The RIBA plan provides well-structured arrangement for a smooth flow of work. In this article RIBA plan of work 2013 is discusse ..read more

Introduction to Value Management Value Management focuses to find a balance between the cost and performance of any project. In simple terms, it can be defined as care and attention to function provided better value for money. Comparatively it is a new concept to the construction industry and undertaken by various construction management professionals. In VM exercise, firstly the expectation and functional requirement of client shall be identified and analyzed. Thereafter VM team shall find alternative options/design to fulfill requirement of client by taking consideration of buildability and ..read more