Construction projects aren’t a single, monolithic event.

Rather, a construction project consists of a series of events or

tasks that must be completed over time. One way that we help conceptualize the process of bringing a project idea to
life is by breaking down construction projects into different phases.

There is all of the work that must be completed prior to the beginning of construction, the physical construction itself,
and the period of time after construction has been completed but before the project is handed over to the owner. Let’s
take a moment to examine each of these phases.

PRECONSTRUCTION PHASE

The pre-construction phase in a construction project is less familiar to most people than the construction management
process itself. The pre-construction phase encompasses all of the activities in a construction project that occur prior to
construction. Put another way, from the moment a project begins to the time you are ready to start construction you
are in the pre-construction phase.

sECURE A PROJECT MANAGER

A critical element for a successful construction project is the selection of a great project team. This includes the selection
of the design team and construction partner. Early involvement with a construction partner allows the owner and design
team to benefit from the cost history, feasibility, construction methods and materials, subcontractor input, and
construction experience of the contractor.

STRATEGIC PLAN DEVELOPMENT

Just like the importance of a project’s physical foundation, the pre-construction process lays the foundation for the
construction project’s success. During pre-construction, important decisions are made and success measurements
established to maximize project efficiency and minimize potential obstacles during the project.

DESIGN

PERMITTING AND ENTITLEMENTS

Pre-construction is the time to thoroughly assess and plan to mitigate risks associated with constructing the project,
including evaluation of the construction site, permit and inspection requirements, and any other special situations that
need to be resolved before or during construction. Your construction partner should have a detailed checklist for the
pre-construction phase; it is essential to make sure all the boxes are checked before the project breaks ground.

GENERAL CONTRACTOR SELECTION

THE PROJECT MANAGER properly prepares THE bid packages for the various parts of the work, THEY will identify
potential subcontractors who have the capabilities and capacity needed to complete work on the project, and engage
with them to confirm their interest and availability.

SO WHEN THE CONSTRUCTION DOCUMENTS ARE COMPLETE, THE PROJECT IS READY TO “PUT OUT FOR BID”. THIS
process IS WHAT WE CALL THE BID PROCESS. THE BID PROCESS IS THE INDUSTRY STANDARDIZED METHOD OF
SELECTING AND HIRING CONTRACTORS AND OTHER PROFESSIONAL SERVICES. QUALIFIED CONTRUCTION COMPANIES
ARE PROVIDED WITH THE BID DOCUMENTS, WHICH THEY USE TO DETERMINE THE COSTS AND PRICES FOR THEIR BID
PACKAGE.
It is often said that the construction phase of a project carries the most risk. This is true for a number of reasons and
emphasizes the importance of working with an effective, experienced general contractor. Selecting the general
contractor, like selecting other members of your construction project team, should be done with care and an adequate
level of due diligence. While sometimes an owner chooses a specific general contractor, more often the general
contractor is selected through a bidding process.

The necessary bidding procedure consists of four steps, namely:

• Bid solicitation

• Bid submission

• Bid selection

• Contract Formation

All these steps take place before the construction phase, and we will expand on these points below.

Construction Phase

THE CONSTRUCTION PHASE IS RISKY

If you carry out a risk analysis on the construction phases, the highest risk is the construction phase. Here is where the
construction manager comes in to mitigate the risks. Through comprehensive planning, the construction manager can
identify the threat and counter it before it happens. There are some risks, such as weather, that are, however, beyond
anyone's control.

Apart from risk mitigation, the construction manager must be very vigilant to keep the project on track. Their services
may include monitoring the contractor's safety program, monitoring the scope, time and budget, and any other
insurance and risk management controls.

THE CONSTRUCTION PHASE IS A LINEAR PROCESS.

Except in a few exceptional cases, the construction phase is a linear process. This means that one portion of the work
needs to be completed before embarking on a new part. For someone who does not work in construction, the project
might unnecessarily take a long time. However, this is because one team waits for another so that they can start
working. The construction manager ensures that the construction runs smoothly to avoid delays.

Post Construction Phase

Once construction is completed, the commissioning stage begins. There are two parts to the
commissioning process. First, the project team must test the systems and equipment to make
sure everything is working correctly before turning over the building to the owner. Then the team
must train the owner’s personnel in the operation and maintenance of the systems in the new
building.

A bid bond is a legal agreement that ensures contractors fulfill their stated obligations on a project. This
form of assurance provides both financial and legal recourse to the owner of the project. Bid bonds are usually
submitted in conjunction with the project's contract.
TOR

Terms of Reference (TOR) provide a statement of the background, objectives, and

purpose of a proposed project. A TOR template includes a range of criteria that are
necessary for strategic project decision making. This document defines the activities to be
done and indicate the issues, budget and expertise related to the project. The following
Project Terms of Reference Template provides an overview of the key sections of a TOR
document. In this article I describe the definition and content of TOR. The template is
available for fee download as a .doc file.

Terms of Reference (TOR) are a strategy-level document that defines the tasks and
duties required of a project contractor, and highlights project background and objectives at
high level. The document also states the planned activities, expected inputs and outputs,
project budget, working schedules, and job descriptions. It is used to judge about the
performance of contractors, consultants, experts, and other project stakeholders.

The purpose of TOR is to specify the amount and type of work to be accomplished by the
project. It is a governance document that establishes and determines the relationships
between all project stakeholders. Terms of Reference are developed once a project has
been identified, defined and planned.
TOR of a project provides a clear description of the following critical information:
 The rationale behind undertaking the project
 The proposed methodology of project management along with work plans and activity
schedules
 The expected resource requirements, primarily regarding personnel
 Reporting rules and requirements

Content of TOR
The development of Project Terms of Reference is required for making the decision on
whether or not to allocate necessary funds to a proposed project. It is the result of the
project proposal process, and TOR serves as the primary report of this process. TOR is
usually required for:
 Pre-feasibility and feasibility analyses
 Appraisal activity
 Implementation contracts designing and monitoring
 Evaluation studies
 Reporting and audit
 Other advisory work required at any project stage
Considering the listed items, the content of Project Terms of Reference should include
business-critical information necessary for starting, implementing and monitoring project
activities. Meanwhile, the exact content of TOR varies from project to project and
significantly depends upon the scope of a proposed project.

A generic content format of Project Terms of Reference is suggested below:

 Project Background
 Project Objectives
 Issues to be explored and analyzed against certain criteria
 Implementation Methodology to be applied
 Expertise required
 Reporting requirements
 Work plan, including activity schedules
Please note these are the common sections of a TOR template. They can be changed or
omitted, depending on the scope of a particular project. The following below description of
the TOR sections is general and provided as an overview for guidance purposes. It means
a particular project will require a deeper analysis of the content to be included in a TOR
template. When you plan for your project, you must first analyze and define the work that
needs to be contracted out, and then proceed with the development of Project Terms of
Reference.
1. Background
The background of a project provides an overview of the history behind the project. It
should clearly state why perform the project and refer to a programming context. The
purpose is to provide the reader with a brief explanation of the need behind the project.

The Background section of a TOR template usually includes several paragraphs which
address the following issues: