HOW A NEW CONSTRUCTION PROJECT START

Have you ever wondered how a new construction project start ? if yes, have you find any answers?

if you have you answer then comment if no then go through this article and you will have proper idea about how new construction project take place.

       it start with one vision for future.when government realize a certain construction project needs for certain place for development,easy commute for public they fund for a new construction project   

this project may be a road project or tunnel or metro or rail.For different kind of construction project there are different govt agency who conduct the project.sometimes this agency approach govt to fund for new project.In India NHAI (national highway authority of India) is the agency for central government road and there other state department who conduct state road and highway project.

       

SURVEY  ;    when the need appears to start new project govt department conduct land survey to see how much obstruction they have and how they can minimize obstruction obstruction like house, ponds,temple,corporate building,tress.GOVT tries not to harm personal property of people that's why they calculate every inch of land with care.
    the land survey called Topography survey . topo means land where graphy mean write in a a word its a map.topography survey done to locate points on earth surface.every point is stored in survey instrument(TOTAL STATION,LIDAR, RTK etc).then the stored data pest on autocad to create map of the location where they want to bring the project.

COST ESTIMATION; After the survey data submitted drawing prepared in order to evaluate the expanses for the project. it is through many step

Itemized Costs

The most common way to estimate costs is to make a list of items you need and add up their costs. Make sure you include all applicable costs, such as equipment and parts, materials and supplies, labor, financing, fees and licensing, transportation, and acquisition costs for land or facilities. You may have to go out for bids for some of the items. If carried out consistently and if the list is reasonably complete, the resulting cost is highly accurate, but the process is time-consuming, lengthy and costly.

Per-Unit Costing

A quicker and less expensive method of estimating cost, especially for standardized work that is frequently carried out, is a per-unit costing method. For parking lot paving, for example, a cost per square foot applies. For warehouses, a cost per cubic foot is appropriate. Computer system cost calculations often use per user or per desktop costs. Automation systems use estimates based on the number of sensor loops. These estimates are accurate -- but only if the work is similar to the work already carried out that's being used for comparison. If your work turns out to have special characteristics, the estimates are inaccurate.

Previous Work

Companies often carry out the same work repeatedly. This is especially true if a company specializes in a particular type of work and accepts contracts to carry it out. You can base such cost estimates on what it cost to carry out the work for the last several contracts and make adjustments for any differences. Key adjustment factors are corrections for inflation and if some of the components are imported and subject to foreign exchange fluctuations. These estimates are highly accurate as long as the current contract work is the same as that done in previous contracts.

Similar Work

Sometimes work or projects are completely new and a list of materials and work to be done is not readily available and difficult to prepare. In that case, you can look for costs on similar projects that were completed by other parties. Industry association publications, government statistics, news sources and public documentation from other companies can often provide information for cost estimates. These cost estimates are less reliable than those obtained by other methods, but, for new work, they may constitute the best information available.

DPR (Detail project report); The detailed project report covers all aspect of business, from analyzing the market, confirming availability of various necessities such as Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Economics, Production Schedule, Working Capital Requirement, uses and applications,  Plant Layout, Project Financials, Process Flow Sheet, Cost of Project, Projected Balance Sheets, Profitability Ratios, Break Even Analysis. The DPR (Detailed Project Report) is formulated by highly accomplished and experienced consultants and the market research and analysis are supported by a panel of experts and digitized data bank.otation 

click the link to get a sample dpr ; http://www.celindia.co.in/drupal7/sites/default/files/Corrigendum-I-Part-2-of-2.pdf

TENDER:  After dpr govt release tender notice inviting interested construction companies to drop their quotation in a time period for the project.every company go through the detailed project report  and physically visit the site for possible hindrance to estimate the expanses to make the project in reality . after estimation companies drop their quotation in that manner that their quotation be the cheapest from the rest profitable for their own good.

tender notice
pc. slideshare.net

between the time gap many companies drop their quotation and after the time gap the tender drop get closed . after which tender are open to see which company bid the lowest .the lowest bidder with good reputation win the tender as well as the project.

 LOI (LETTER OF INTEND)  : GOVT Seek best work in low price that's why the choose the lowest bidder with good track record companies who have done great work in past.to that preferable company govt issue a letter of intend which state that the company can start work as soon as possible. 

sample LOI PC. SMARTLETTERS.ORG

SURVEY BY THE CONTRACTOR; After receiving the loi from govt the contractor send their survey department to the site for topography.they just recheck the govt data provided in dpr .this step is almost similar to govt topography done earlier.data recorded and pasted and send to company's headquarter for evaluate .

COST  ESTIMATION; Company's headquarter go through the survey data and estimate the total project expanses.if their previous data match with the present then their project is on profit if obstruction is more then previous assumption then they may be on loss.in this they can quite the project or can request govt to increase project agreement or they can pass it on small contractor who can done the project in less expanses.

LETTER OF INTEND ; Whatever the situation the company feels they are in, they issue a LOI to know they will start the work where ask for an initial  funds for office and machinery set up.

LETTER OF AGREEMENT OR LOA; Receiving the the loi from the contractor govt release a letter of agreement where they deal to provide the funds to start the project.

WORK ORDER; after few days govt release another letter which is called work order where they provide the fund in a given time.after then work start on full swing.

  if you find it useful please let me know,if you have any suggestion or you another topic you are curios about to know comment i shall cover that. i welcome every constructive feedback