In the modern industrialized world, construction usually involves the translation of designs into reality. A formal design team may be assembled to plan the physical proceedings, and to integrate those proceedings with the other parts. The design usually consists of and, usually prepared by a design team including, cost engineers (or ), planning, architectural consultants, and archaeological consultants. The design team is most commonly employed by (i.
e. in contract with) the property owner. Under this system, once the design is completed by the design team, a number of construction companies or construction management companies may then be asked to make a bid for the work, either based directly on the design, or on the basis of drawings and a provided by a. Following evaluation of bids, the owner will typically award a contract to the most cost efficient bidder.
The modern trend in design is toward integration of previously separated specialties, especially among large firms. In the past, architects, interior designers, engineers, developers, construction managers, and general contractors were more likely to be entirely separate companies, even in the larger firms. Presently, a firm that is nominally an "architecture" or "construction management" firm may have experts from all related fields as employees, or to have an associated company that provides each necessary skill. Thus, each such firm may offer itself as "one-stop shopping" for a construction project, from beginning to end.
This is designated as a "design build" contract where the contractor is given a performance specification and must undertake the project from design to construction, while adhering to the performance specifications. Several project structures can assist the owner in this integration, including design-build, partnering and construction management. In general, each of these project structures allows the owner to integrate the services of architects, interior designers, engineers and constructors throughout design and construction. In response, many companies are growing beyond traditional offerings of design or construction services alone and are placing more emphasis on establishing relationships with other necessary participants through the design-build process.
The increasing complexity of construction projects creates the need for design professionals trained in all phases of the project's life-cycle and develop an appreciation of the building as an advanced technological system requiring close integration of many sub-systems and their individual components, including sustainability. is an emerging discipline that attempts to meet this new challenge. Construction projects can suffer from preventable financial problems. Underbids ask for too little money to complete the project.
problems exist when the present amount of funding cannot cover the current costs for labour and materials, and because they are a matter of having sufficient funds at a specific time, can arise even when the overall total is enough. is a problem in many fields, but is notoriously prevalent in the construction field [. Financial planning for the project is intended to ensure that a solid plan with adequate safeguards and contingency plans are in place before the project is started and is required to ensure that the plan is properly executed over the life of the project. , and are likely participants in creating an overall plan for the financial management of the building 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. Cost engineers and apply expertise to relate the work and materials involved to a proper valuation. Cost overruns with government projects have occurred when the contractor was able to identify change orders or changes in the project resulting in large increases in cost, which are not subject to competition by other firms as they have already been eliminated from consideration after the initial bid.
Large projects can involve highly complex financial plans and often start with a conceptual estimate performed by a. 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 carries forward. In many English-speaking countries, but not the United States, projects typically use quantity surveyors. A construction project must fit into the legal framework governing the property.
These include governmental regulations on the use of property, and obligations that are created in the process of construction. The project must adhere to and requirements. Constructing a project that fails to adhere to codes will not benefit the owner. Some legal requirements come from considerations, or the desire to prevent things that are indisputably badБ bridge collapses or explosions.
Other legal requirements come from considerations, or things that are a matter of custom or expectation, such as isolating businesses to a business district and residences to a residential district. An attorney may seek changes or exemptions in the law governing the land where the building will be built, either by arguing that a rule is inapplicable (the bridge design will not collapse), or that the custom is no longer needed (acceptance of live-work spaces has grown in the community). A construction project is a complex net of and other legal obligations, each of which must be carefully considered. A contract is the exchange of a set of obligations between two or more parties, but it is not so simple a matter as trying to get the other side to agree to as much as possible in exchange for as little as possible.
The time element in construction means that a delay costs money, and in cases of bottlenecks, the delay can be extremely expensive. Thus, the contracts must be designed to ensure that each side is capable of performing the obligations set out. Contracts that set out clear expectations and clear paths to accomplishing those expectations are far more likely to result in the project flowing smoothly, whereas poorly drafted contracts lead to confusion and collapse. Legal advisors in the beginning of a construction project seek to identify ambiguities and other potential sources of trouble in the contract structure, and to present options for preventing problems.
Throughout the process of the project, 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. 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 accommodate the need for building the design provided, and must pay amounts that are legally owed. The legal structure must integrate the design into the surrounding legal framework, and enforce the financial consequences of the construction process. Procurement describes the merging of activities undertaken by the client to obtain a building. There are many different methods of construction procurement; however the three most common types of procurement are traditional (design-bid-build), design-build and management contracting.
There is also a growing number of new forms of procurement that involve relationship contracting where the emphasis is on a co-operative relationship between the principal and contractor and other stakeholders within a construction project. New forms include partnering such as Public-Private Partnering (PPPs) aka (PFIs) and alliances such as "pure" or "project" alliances and "impure" or "strategic" alliances. The focus on co-operation is to ameliorate the many problems that arise from the often highly competitive and adversarial practices within the construction industry. This is the most common method of construction procurement and is well established and recognized.
In this arrangement, the architect or acts as the project coordinator. His or her role is to design the works, prepare the specifications and produce construction drawings, administer the contract, the works, and manage the works from inception to completion. There are direct contractual links between the architect's client and the main contractor. Any subcontractor will have a direct contractual relationship with the main contractor.
The procedure continues until building is ready for occupancy. This approach has become more common in recent years, and involves the client contracting a single entity to both provide a design and to build that design. In some cases, the design-build package can also include finding the site, arranging funding and applying for all necessary statutory consents. The owner produces a list of requirements for a project, giving an overall view of the project's goals.
Several DB contractors present different ideas about how to accomplish these goals. The owner selects the ideas he or she likes best and hires the appropriate contractor. Often, it is not just one contractor, but a consortium of several contractors working together. Once these have been hired, they begin building the first phase of the project.
As they build phase 1, they design phase 2. This is in contrast to a design-bid-build contract, where the project is completely designed by the owner, then bid on, then completed. Kent Hansen pointed out that state usually use design build contracts as a way of progressing projects when states lack the resources. In such departments, design build contracts are usually employed for very large projects.
In this arrangement the client plays an active role in the procurement system by entering into separate contracts with the designer (architect or ), the, and individual. 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. Management procurement systems are often used to speed up the procurement processes, allow the client greater flexibility in design variation throughout the contract, give the ability to appoint individual work contractors, separate contractual responsibility on each individual throughout the contract, and to provide greater client control.