Major Phases of a Construction Project

When starting a construction project, planning and the work involved can overwhelm you. Basically, any project can involve hundreds or dozens of tasks to be completed in a timely manner and in the right sequence. Experienced construction project managers understand that handling a project’s details and taking the right steps is crucial for its successful completion. Here are the major phases of a construction project should be followed to make it easy to manage and complete.

Phase 1: Project Initiation

Project initiation marks the beginning of a construction project. At this phase, the feasibility and value of a project is measured. A project manager uses different valuation tools to determine whether a project is worth pursuing. If a project is considered unfeasible or unprofitable, it is abandoned at this stage. But, if a project is considered feasible or profitable, the contractor moves to the next phase.

Phase 2: Project Planning

On receiving the green light, the construction team comes up with a solid plan. This plan guides the team while keeping it on budget and on time. A project plan is basically a guide for acquiring financing, obtaining resources, and procuring materials. It also provides direction to the team in terms of handling risk, producing quality results, creating acceptance, and communicating the benefits to relevant stakeholders as well as managing supplies. A project plan is also aimed at preparing teams for possible obstacles.

Phase 3: Project Execution

Here, deliverables are built as per the expectations of the client. The team leader ensures that this happens by allocating the necessary resources and ensuring that team members remain focused on tasks. Project plan is followed keenly and efforts of the entire team are focused on accomplishing what is specified in the plan.

Phase 4: Project Control and Monitoring

These are generally combined with project execution. That’s because they happen simultaneously. While the plan is executed, project is monitored continuously. Tasks are monitored and processes controlled to ensure that what the client was promised is what is delivered.

Phase 5: Project Closure

Once the project has been completed and delivered to the client, the project is closed. The completion date is communicated to stakeholders and resources are released to the next project. This phase entails evaluation and documentation of the project. The successes and mistakes of the project form the basis of strengthening the team’s processes.

Generally, a construction project can seem overwhelming at first. However, the project becomes easy when broken down into these phases and handled by the right experts.

How Does a Construction Loan Work?

Building a new home is a dream that many people think it’s unachievable. However, it’s possible to build a home or a commercial property with a construction loan. Nevertheless, getting this loan is a complex process for some people. Here is what you need to know about a construction loan.

Definition of a Construction Loan

A construction loan can be defined as an interim, short-term loan that pays for the construction or building of a home or a house. The money loaned for the construction project is paid by the lender in stages as the work progresses.

The maximum term for this loan is typically one year. Rates vary and they can move up or down depending on the prime rate. Nevertheless, this loan has higher rates than permanent loan mortgages.

Qualifications for a Construction Loan

To qualify for this loan, the lender needs the following: 

  • A construction timetable
  • A realistic budget
  • Detailed plans

Upon approval, the borrower enters a bank draw or draft. This is a schedule that follows the construction stages of the project. The borrower is expected to pay for the interest during construction. What’s more, the lender sends someone to validate the progress of the project whenever the loaned money is requested.

Types of Construction Loans

There are two main types of construction loans.

These are: 

  1. Construction-to-Permanent Loan

With this loan, you borrow money for construction costs. Upon completion and moving in, the loan becomes a permanent mortgage. Since this is a two-in-one loan, the borrower pays a single closing costs set. This reduces the fees owed the lender by the borrower.

     2. Construction-Only Loan

A construction-only loan entails taking out two different loans. One loan is for property construction only with a term of one year or even less. On moving in, you take a mortgage for paying off the construction. A construction-only loan doesn’t need a large down payment. It’s ideal for a person that already has a home but wants to build another house. Nevertheless, this loan can be costly because it involves two transactions with separate fees.

Generally, a construction loan covers the cost of materials and work for a new construction project. This loan can be used to finance contractor labor, permits, roof, and home framing, and interior finishing. It can also cover other expenses for building a house.

For more details and possible funding check out this website which breaks it down even further.

How Construction Technology is Improving Jobsite Productivity

The construction industry is generally among the slowest glowing sectors globally. Nevertheless, the modern construction technology is giving this sector a boost by improving jobsite productivity. And increased jobsite productivity is beneficial to every player in the industry. Essentially, improved productivity leads to decreased projects’ completion costs and time. This increases profitability which in turn enhances the competitiveness of contractors when it comes to bidding. Here are some of the ways modern construction technology is enhancing jobsite productivity.

Improving Communication

Prompt communication is generally important for successful completion of a construction project. The entire contractor’s team and stakeholders need effective communication to remain on the same page. With effective communication, long wait hours are eliminated when it comes to solving problems at the jobsite. As such, team members get back to their work places faster and this enhances the speed with which construction projects are completed.

Digital Documents Organization

Administration tasks are the major burden for most construction projects. However, modern contractors are using innovative technologies like project management software to ease these tasks. Using such software, contractors can easily control the administrative workload. The efficiency brought by this construction technology leaves contractors more time to focus on other tasks. What’s more, digital documents enable contractors and team members to access data in real-time. This enables them to make decisions faster thereby improving processes at the jobsite.

Players can also send reports or documents faster using project management applications. Thus, this construction technology is enhancing real-time data collection and dissemination thereby eliminating the need to move away from the jobsite to convey information.

Enhanced Mobility and Flexibility

Modern technology has introduced flexible and mobile tools that cater for the workers’ needs at the construction sites. For instance, contractors are using mobile time cards to enhance timekeeping while handling projects. Using such technology, contractors can provide time-tracking at the level of foremen. This enables them to monitor and ensure real-time labor productivity.

To remain competitive, contractors should embrace technology to enhance their jobsite productivity. And because technology is always evolving, contractors should always be on the lookout for what’s new in the industry.