ADDIS COLLEGE

ARCHITECTURAL & URBAN PLANNING DEPARTMENT

PROFESSIONAL PRACTICE

COMPILE BY ID
BISRAT MANDEFRO 124/ 16

INSTRUCTOR SUBMISSION DATE

JUNE 21, 2025
 I. Construction Project Life Cycle

A. Phases of the Construction Project Life Cycle

1. Initiation This is where ideas are explored and the project's value is assessed.

 Goals: Define project needs, assess feasibility, and secure initial approvals.
 Focus: Business case development and stakeholder alignment.

2. Planning Detailed roadmaps are developed to guide execution.

 Goals: Refine scope, budget, and timelines; identify risks and mitigation.
 Focus: Design development, cost estimation, procurement strategy, and work scheduling.

3. Execution The construction work takes center stage.

 Goals: Translate plans into physical outcomes through resource coordination and
construction activity.
 Focus: Contractor mobilization, site work, inspections, and project updates.

4. Monitoring & Controlling This overlaps with execution to track and adjust performance.

 Goals: Ensure work meets scope, quality, cost, and time goals.
 Focus: Progress tracking, risk control, compliance checks, and change management.

5. Closure The project is wrapped up and handed over.

 Goals: Complete construction, secure approvals, and document lessons learned.

 Focus: Final inspections, contract closeout, occupancy certificates, and warranty
handover.

B. Key Deliverables and Milestones in Each Phase

Phase Key Deliverables Milestones

Initiation Feasibility study, project charter Project approval, funding secured

Scope definition, budget, schedule,

Planning Design approvals, permits obtained
BoQ

Major structure completion (e.g., topping out),

Execution Construction work, progress reports
inspections passed

Monitoring Variance reports, quality audits Risk resolution, milestone checks

 Phase Key Deliverables Milestones

Final account, as-built drawings, O&M

Closure Handover, occupancy certificate, project review
manuals

C. Role of Stakeholders throughout the Life Cycle

Execution &
Stakeholder Initiation & Planning Closure
Monitoring

Define vision, approve Make key decisions, Accept delivery, resolve

Client/Owner
budget/scope manage payments final payments

Develop concept and Assist with clarifications Provide as-built drawings,

Architect/Designer
detailed design and site queries design validation

Track cost and

Cost planning, Finalize accounts, close
Quantity Surveyor variations, approve
procurement strategy contracts
valuations

Construct works,
Participate in tendering, Hand over site, address
Contractor coordinate
provide buildability input defects
subcontractors

Document project
Coordinate stakeholders, Monitor performance,
Project Manager performance, lead
finalize plan update schedules
handover

Engineer Verify design integrity, Conduct site inspections, Sign off systems, support
(Structural/M&E) specify systems approve installations testing & commissioning

II. Construction Management

A. Principles of Construction Management

Construction management (CM) is grounded in several guiding principles that ensure successful
execution of projects, whether small-scale residential builds or large infrastructure
developments:

 Project Integration: Aligns scope, resources, timelines, and stakeholder expectations

into a cohesive plan.
 Time, Cost, and Quality Balance: The “iron triangle” that CM constantly balances—
adjusting one affects the others.
  Transparency and Communication: Timely reporting, document control, and
stakeholder engagement reduce misunderstandings and facilitate smoother execution.
 Health, Safety, and Environment (HSE): Strict adherence to safety protocols,
environmental regulations, and sustainable practices is fundamental.
 Risk Management: Identifying, assessing, and mitigating risks before they become
roadblocks.
 Continuous Monitoring and Improvement: CM embraces feedback loops, lessons
learned, and adaptive strategies.

The goal? Deliver value throughout the project lifecycle by combining strategic oversight with
on-the-ground coordination.

B. Key Functions: Planning, Organizing, Leading, and Controlling

Think of these as the core “management muscles” in a construction project:

1. Planning This lays the foundation—literally and figuratively.

 Define objectives, deliverables, schedule, and resource needs

 Forecast costs, cash flows, and procurement timelines
 Develop contingency and communication plans

2. Organizing Turning the blueprint into operational structure.

 Assign roles to project teams and subcontractors

 Sequence tasks and determine dependencies
 Ensure permits, insurance, and contracts are in place

3. Leading Here, leadership meets site boots.

 Motivate teams, resolve conflicts, and promote collaboration

 Facilitate clear direction and active supervision
 Lead meetings, delegate responsibilities, and handle crisis situations

4. Controlling this ensures the train stays on track.

 Monitor progress vs. schedule and budget

 Track quality control benchmarks and safety metrics
 Adapt plans based on real-time performance feedback

Together, these functions guide the transformation from raw materials and manpower to a
finished structure with enduring utility and value.
 C. Techniques for Effective Project Management

Construction managers rely on various tools to translate vision into deliverable outcomes:

1. Gantt Charts

 Visual scheduling tools that display activities against a timeline

 Show start/end dates, task duration, overlaps, and progress
 Help teams track whether work is on time or falling behind

2. Critical Path Method (CPM)

 Identifies the longest path of dependent tasks that determines the project duration
 Any delay in the critical path affects the entire project
 Enables prioritization of time-sensitive activities

3. Work Breakdown Structure (WBS)

 Hierarchical decomposition of the project into manageable components

 Helps in assigning responsibilities, estimating costs, and tracking tasks

4. Earned Value Management (EVM)

 Integrates scope, cost, and time to assess project performance

 Compares actual vs. planned progress and budget to spot overruns early

5. Building Information Modeling (BIM)

 Digital 3D modeling tool that enhances collaboration among designers, engineers, and
builders
 Allows for clash detection, quantity take-offs, and life-cycle planning

6. Project Management Software

 Platforms like Microsoft Project, Primavera P6, Procore, and Buildertrend streamline
scheduling, reporting, and document sharing

Construction management is more than hard hats and site visits—it’s a structured discipline that
combines people, process, and technology. When executed effectively, it not only ensures
delivery but transforms construction into a strategic advantage.
 III. Insurance in Construction

A. Types of Insurance Relevant to Construction

Construction projects carry a wide spectrum of risks—accidents, delays, design flaws, natural
disasters. Various insurance types are designed to cover specific exposures:

1. General Liability Insurance

 Covers third-party injuries or property damage caused by construction activities.

 Example: If debris from a site damages a nearby parked car, this policy covers the claim.

2. Workers’ Compensation Insurance

 Mandatory in most jurisdictions.

 Covers medical costs and lost wages if a worker is injured or falls ill on the job.

3. Builder’s Risk Insurance (Course of Construction Insurance)

 Covers damage to the construction site and materials (e.g., from fire, theft, vandalism, or
storms).
 Usually purchased by the contractor or project owner.

4. Professional Indemnity Insurance (Errors & Omissions)

 Protects against claims arising from design errors, omissions, or negligence by architects,
engineers, and consultants.

5. Contractors’ All Risks (CAR) Insurance

 Comprehensive package covering physical loss or damage to works, materials, plant, and
equipment.
 Often includes third-party liability extensions.

6. Equipment and Plant Insurance

 Covers loss, damage, or breakdown of heavy machinery and tools used on-site.

7. Performance Bonds and Surety Insurance

 Guarantees the contractor will meet contract obligations.

 If the contractor defaults, the client is financially compensated.

8. Environmental Liability Insurance

 Covers costs related to pollution or contamination events linked to construction activities.

 B. Importance of Risk Management in Construction Projects

Construction is inherently risky—from workplace accidents to budget overruns and extreme

weather. Insurance is just one part of a broader risk management strategy that includes:

 Financial Protection: Insurance cushions against unanticipated losses that could derail a
project financially.
 Stakeholder Assurance: Lenders, clients, and regulators often require proof of adequate
coverage before releasing funds or permits.
 Continuity and Stability: If something goes wrong, insurance helps keep the project
running with minimal disruption.
 Legal Safeguard: Insurance can cover liability settlements, court costs, and
compensation that could otherwise bankrupt smaller firms.

Risk management also includes proactive steps like regular safety inspections, detailed contracts,
quality controls, and having contingency reserves.

C. Legal Requirements and Best Practices for Insuring Construction

Projects

Legal Requirements:

 Regulatory Compliance: Most countries mandate basic coverage like Workers’

Compensation and Third-Party Liability.
 Contractual Obligations: Contracts often specify required insurance limits and types
(e.g., FIDIC contracts may dictate minimum levels).
 Permit Conditions: Authorities may require proof of insurance before granting
construction licenses.

Best Practices:

1. Tailor Coverage to Project Needs: Assess the specific risks of the project type, size, and
location.
2. Review Coverage Regularly: As work progresses, project scope and risks can change—
adjust policies accordingly.
3. Involve Legal and Insurance Advisors Early: Ensure clauses are clear and enforceable.
4. Require Subcontractor Coverage: Make sure subcontractors provide proof of insurance
to avoid gaps in liability.
5. Keep Detailed Records: Maintain insurance certificates, policies, claims histories, and
incident reports on file.
6. Integrate with Risk Register: Align insurance policies with the risk register developed
during project planning.