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To ensure success before your next construction project begins, you need to understand the phases in construction project management and how the construction project life cycle works to ensure a successful project.

What are the main stages of home construction projects?

There are a few main stages of a construction project, and these include concept, design, preconstruction, procurement, construction and post-construction. Each one of these stages of construction is an equally important part of the entire project.

The following are the basic building blocks of any construction project:

1. Concept stage

Typically, as a home builder you will have started by consulting with planners, architects and engineers who have taken a homeowner’s idea to drawings and plans that ensure the overall design development is proper for the proposed building site.

Depending on the size and scope of the project, this project planning phase may mean consultations with town or city planners to ensure utilities can serve the proposed location of the build.

You may also need to consult an estimator or do the project estimate yourself to determine if it’s financially viable for both you and the homeowner.

The concept stage is one of the most important phases in the lead up to actual construction. It gets rough ideas onto paper for the first time and forces builders and homeowners to agree on initial budget targets.

Expect Early development challenges

A few common challenges pop up during this concept phase. These can include the following:

• Design flaws—it’s important that you and your architect work together with your structural and civil engineers to create an architectural blueprint that’s realistic;
• Bureaucracy—everyone hates bureaucracy, but it can be particularly frustrating when you’re in the preconstruction phase and needed paperwork must clear. While this isn’t necessarily your fault, it’s a common, frustrating problem.
• Poor-Defined Objectives—another common challenge is communicating requirements and limitations to your client and contractors – whether you’ve failed in this respect or members of your team have – not having clearly-defined goals that are documented can slow things down.

2. Design Stage

The next planning stage is the design, where you build the actual project specifications. In this stage, you’ll hammer out your concepts and start talking in more detail with architects and engineers.

As one of the 6 stages of the construction project, your design phase will take on the challenge of getting monetary figures and drawings on how large the home will be, its shape and size, the number of rooms, how the rest of the space will be used, and so on.

This phase allows you to determine exactly how it will be done and even what materials you’ll use. The colours of various materials you’ll use (interior and exterior) and the pricing of those materials.

Common Challenges in design development

A few main challenges can crop up during the design stage. These include:

• Inconsistencies in measurements across different types of blueprints. Your architect will need to make these measurements again to solve for discrepancies;
• Over or Under-Estimation—you make money by providing accurate estimates using various tools. However, this estimate is just that – an estimate – and can be under or over based on factors outside of your control, like material price changes. More on this later;
• Misreading of blueprints by other tradesmen who will do work based on those designs. Electricians and builders sometimes misread each other’s design plans;
• Structural design errors crop up due to misreading or misinterpreting (sometimes) vague building code language. Consult your planning phase team and the town or city building code department if this becomes a problem.

3. Preconstruction Stage

The preconstruction stage is where you’ll build your project team. The project team begins as the core group that will carry your project forward through the next construction process stages.

By this point, the building site will have been chosen and approved and your homeowner has approved your bid based on a detailed estimate.

Site & Foundation Preparation

One of the integral construction stages of building a house is the site visit, where the soil is tested – this is done to test for any contaminants that prevent successful well drilling, ensure ample room for a septic drain field if needed, or check that soils cannot possibly endanger the structural integrity of the home’s foundation.

Preconstruction is the last opportunity to check the site. Often, final tests are done after you pour test footings of the foundations. Once you’ve planned and framed your project’s foundation, plumbing and drainage will also be planned and installed during this process.

Rough Framing

Rough framing will also occur during this process based on your measurements. This means timbers will go up to rough measurements, and the house’s exterior shape will begin to take place. This is also true if you’re building an addition.

Common preconstruction Challenges

There are a few common challenges when conducting the preconstruction phase of any project. These can include:

• Labour shortages—One of the hurdles facing almost every home construction company is labour shortages. This shortage means that site work, such as rough framing, may be delayed considerably if your contractor is experiencing issues due to this shortage. Be sure to consult with them before awarding them the contract;
• Material shortages—Another huge challenge to the preconstruction phase of projects is material shortages. It’s important to plan far ahead when purchasing materials from your dealer to ensure the best price and timely delivery.

4. Procurement Stage

The procurement stage is also where construction companies can run afoul of the current construction industry climate. A variety of challenges include.

• Lengthy procurement cycles—due to the uncertain market – at times high demand, low supply for certain materials – you may find that you’re quoted with weeks or months-long delays for specific materials.
• Cost fluctuations—again, blame the market! You may discover that materials you were quoted a few months ago have now skyrocketed in price. This may force you to make different material choices depending on budget allowances. Don’t forget to communicate those changes to the homeowner in a timely fashion.
• Quality assurance—while this is not necessarily your responsibility, one of the common challenges facing procurement departments is quality assurance.

5. Construction Stage

The construction stage is where the rubber meets the road. It’s where you’ll start to see your project come to life.

This phase is usually one of the longest construction phases of building a house. It takes months to come to fruition. It’s also the most rewarding part of the construction process stages.

Common Challenges

When it comes to the final stages of your construction project, you’re bound to encounter some unforeseen issues. Here are some common challenges during the construction stages of building a house.

• Health And Safety—this is one of the biggest of any construction company owner out there. The health and safety of your employees are always your top priority. In the construction phase, an accident can occur, which can severely injure one of your valuable team members and cause huge delays in the project;
• Linear Process Delays—the construction phase of any project is the longest one. It is also a linear process, meaning that schedules must be planned and executed in the proper order;
• The Weather—everyone who works in construction hates that they’re at the mercy of Mother Nature. Certain construction phases won’t proceed in heavy rain or blinding heat.

6. Post-construction Stage

The post-construction stage is the final stage of the construction phase plan. The post-construction phase is where the build is completed and the new owner eventually takes possession. However, there are several steps to go through:

Performance And Monitoring

One of the key parts of this stage is monitoring the building once it’s finished for any signs of faults – this may require days or weeks. Meanwhile, other things can happen behind the scenes, such as contract closures, worker payments and equipment returns.

Team meetings can occur to discuss what went well with the project and what didn’t, and what changes can be made on the next project to help things run smoother – time is money, after all.

Closure

Closing the project means delivering the keys for the new construction to the new owner, closing and sealing all contracts, and getting paid for the work completed.

Common Challenges

Despite being the end of the line, closure brings challenges. These can include:

• Projects wind up over-budget;
• Customers are unhappy with the finished product;
• Projects vastly underperform projected profit margins;
• The project reveals gaping holes in business operations/job management.

Using Construction Software to Manage Projects

If you’re struggling with any parts of your construction stages, it’s time to turn to construction software to manage projects.

Whether your problems are efficiency, cash flow, material supply issues, or simply a labour delegation problem, using a construction project management software like Buildxact can help to remove the human element from your business operations.

Construction management software will give you a complete picture of how your project succeeded and where it failed, as well as allowing you to see insights that could prove invaluable for the next project.

The post A guide to the 6 essential stages in construction project management appeared first on Buildxact AU.

Successful construction bidding takes a combination of science, art and attention to detail. The more detail added to your bid, and the more care taken, the more likely you are to win the construction projects that grow your business.

Alongside good preparation and an understanding of the requirements, project management software helps deliver the accuracy and professional touch needed to impress your clients.

So what is the trick to submitting a winning bid in the construction bidding process?
Let’s have a look at the different types of construction bid proposals that clients will offer. Different bid types offer varying opportunities for companies like yours to participate in competitive project opportunities.

How the bidding process varies

Open

Open bids can be found on platforms like construction bidding websites or word of mouth and are offered as both government or private projects.  Open bids allow anyone to present a proposal, providing an equal chance for all suitable companies to submit the winning bid.

Selective

As the name suggests, these types of bid proposals are by invitation only.  Specific businesses known to the client that can provide the services sought will receive a bid invitation, and only they can then submit a proposal.

Negotiated bids

Negotiated bids entail a single contractor receiving a bid solicitation for a new project or extending a current contract.  This type of bid allows the general contractor to be involved with project owners at the planning stage of a new project.

Single-stage and two-stage bids

A single-stage bid requires all information required to estimate and quote on a price to be available at the time of construction bidding.  The two-stage bidding process involves appointing a builder before all the required information becomes available, with a fixed price negotiated later; thus, allowing work to begin immediately.

Serial bids

Most construction companies will perform similar work for construction jobs in terms of quantities or scope of work.  In these cases standardized construction bidding templates can be prepared, allowing what is called serial bidding.

Framework bids

Framework bids allow a client to invite responses from suppliers in anticipation of future requirements.

Public bids

Bids on government projects offer a competitive bidding process – winning government contracts is an aspiration for most construction managers.

The project delivery method of home construction

Completion of a project requires the integration or delivery of multiple phases, and these must be clearly stated in a written contract. The preferred project delivery methods are chosen by the client. There are several options, some of which are described below:

Design Bid Build (DBB)

This is the traditional model for project delivery  also called design-tender. In this method, the builder contracts separate organizations to complete the design of the project and its construction. The design-bid-build method consists of three stages: the design stage, the bidding stage and the construction phase.

Design Build (DB)

The DB method allows an owner to enter into one agreement with a company that offers both design and build.  Costs can be progressive or fixed using the Construction Management at Risk (CMAR Method), which entails a commitment from the construction manager to complete and deliver a project at a guaranteed maximum price (GMP).

Integrated Project Delivery (IPD)

A newer form of project delivery is the Integrated Project Delivery (IPD) method which entails a single, multi-party contract between the owner, the construction company and the designer whereby each party shares financial risks and profits, based on agreed measurable outcomes.

The Construction Bidding Process

Preparation is Key to Improving your Bid Hit Ratio

Preparation and accuracy are major contributors to submitting a successful bid during the construction bidding process. Read through the project requirement thoroughly and carefully.  Ensure that you are aware of the scope of the job and all the necessary requirements such as equipment, ticketed personnel, materials or other services.

Are you the right fit?

If your business has the expertise, experience and capabilities the client is asking for, you are likely to be a strong contender.

Make sure that your bid proposal is aligned with the business goals of the customer. Ensure you are fully aware of the buyers’ technical requirements and tailor your bid to meet them.  Don’t send the same response for each job you pursue, alter each one to be a perfect match for the project at hand.

Ensure accuracy

Use estimating software such as Buildxact to prepare a thorough estimate of your costs. You want to see what you are up against before you factor in your profit margin. You need to know if the project is financially beneficial to your company before you formulate a response to the bid.

Once you decide to move forward, get your tender in well before the end of the submission date.  Chase up documents and have your template ready to go as soon as clients solicit bids.

Know your client

Remember to research your client well and pitch to their values and strengths.  Your company’s aims and values should align with the clients. Ask for feedback after the construction bidding process has closed, even if you are unsuccessful in winning the job.

Have construction project documents ready

To be ready to partake in construction bidding at any time, have documentation prepared and ready to be submitted with your winning bid.

Have a solid team

Having a strong administration team is a positive for tenders – companies want to know there will always be someone to answer the phone or answer emails if they have queries or questions.

Capability statement

Your capability statement and company profile should include:

1. Three years minimum of experience or what is commonly known as trading history–longer for complex projects or a large contract;
2. Case studies showing relevant past performance and completed construction projects that are relevant to the construction bidding proposal;
3. A list of memberships and relevant certifications, including ISO accreditation;
4. A clear graphic displaying your business organization: team members bios and resumes;
5. An accurate cost estimate using estimating software such as Buildxact;
6. Project management methodology;
7. Images that illustrate your performance capabilities.

Completing your bid submission

If the construction bidding process includes specific documentation to complete or templates are provided, be careful to fill them out as requested. Once you have completed all documents, tick off the list supplied by the project owner.

Comply with all requests including signatures where required.  Missing signatures is a common mistake. You may need to get witnesses or a notary’s signature for some forms.

Selection Criteria

Construction bidding often includes a selection criteria that must be completed precisely. Analyze the questions and decide how best to word your answer.
Ensure you respond precisely as requested to all questions including answering specific questions in a request for proposal (RFP).

Grammar and spelling are also important, including the name of the company.  Your bid proposal should be concise and flow well. If the construction bidding is highly competitive, you can’t afford to present a sloppy submission.

Professional Presentation

Documentation must be professionally presented for any construction bidding.  Have your bid proposal looked over by a professional or use estimating software such as Buildxact, which will assist in producing a professional construction bid.
Diagrams and graphs are useful to make your bid visually interesting and provide clear illustrations to back up your content. Make sure you stick to any word limits in the template, if one is provided, or in the submission instructions.

Realistic Construction Bidding

With many private projects, a low bid is not the deciding factor.  Your bid proposal needs to be honest and reflect what the firm can offer.  Timelines also need to be realistic – winning the contract and then not performing as promised is a good way to destroy your reputation and fail to win further contracts.
Governments often use the Best Value Source Method (BVS) to determine the winning contractor during construction bidding selection.  This methodology ascertains the greatest value, including quality, reliability, timeframes as well as cost.

Construction estimate software can ensure your calculations are correct and that your bid will be accurate. It can also reduce the time to produce accurate estimates and budgets for your construction bidding submission and can help you reach an achievable price to offer.

Your business brand

Your company website should be updated, have a professional look and feel, be easy to navigate and match the information in your bid documents. It should clearly outline your business expertise and experience including previous projects.  List any professional conferences, industry events you have attended or exhibited at, awards won and ISO accreditation.

Building professional relationships and attending industry networking events can help promote your company and provide name recognition during a bid selection.  It all helps in a competitive construction bidding environment.

Know your competition

Your point of difference to your competitors needs to be highlighted – point out what makes you a better option than your rivals. Take some time to emphasize your unique selling point and your points of differentiation from your rivals. Do you have a unique value proposition you can sell?

Health and Safety Report

Health and safety is an often overlooked part during construction bidding.  Your occupational health and safety report will be scrutinized, particularly if you are dealing with a large company.  No matter how well written your policy is, your client will want proof that you are actually following the policy and taking health and safety in the workplace seriously.

Keeping track of all safety incidents, applications of first aid, and lost hours due to safety events is important and must be included in your tender – without these figures, the tender is not credible and will be relegated to the trash.

Submitting successful bids every time

Using Buildxact software has helped many construction companies win thanks to its accurate and easy methods for takeoff, quoting, scheduling, cost tracking, estimating and accounting integration.  Adopting software that allows automatic and professional quotes to be created using stored information, templates and the ability to access these features at any location, has transformed construction management and streamlined workflow.

Find out how Buildxact can help your construction project delivery and competitive bidding by asking for a free demo and free trial.

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