TABLE OF CONTENTS Introduction.2 Costs and benefits in the project cycle.. .2 Stages in the project cycle..

2 The management structure.5 Conclusion.5 References.6

David sakala

Building Science 3

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1.0 INTRODUCTION A project cycle is a series of activities aimed at bringing about clearly specified objectives within a defined time period and with a defined budget. At each stage of the project, there are costs incurred as well as benefits which can be defined as direct and indirect or tangible and intangible. The management structure also plays a greater role in the project cycle. However, in this context, the costs and benefits in the project cycle that is at each stage of the cycle shall be identified and the contribution of the management structure to the project cycle shall also be pointed out. 2.0 COSTS AND BENEFITS IN THE PROJECT CYCLE Costs and benefits in the project cycle can be identified using what is known as the cost benefit analysis. The cost benefit analysis is basically an appraisal technique that tries to place monetary values on all benefits arising from a project and then compares the total value with the projects total costs. 2.1 STAGES IN THE PROJECT CYCLE. The project cycle basically consist of six stages. These are: I. PROJECT IDENTIFICATION Project identification is the stage at which a client/stakeholder carrys out a research/ an appraisal of which project of the many alternatives is worth investmenting in. This takes into account all stages of investment appraisal i.e. payback period, profitability index, internal rate of return, accounting rate of return, net present value and cash flow projections.

COSTS: Professional costs- consultation is carried out to identify a worthwhile project. Clients costs incurred during the process i.e. fuel, opportunity cost etc. BENEFITS: Successful identification of a worthwhile project i.e. Project meeting the client need in the shortest possible timeframe. Or project that will generate higher cash flows within a short period of time. PROJECT PLANNING Planning is a key element to a successful project. It saves time, money and many other problems. The following are the steps taken during project planning: 1. Project goals- needs of the stakeholder to be targeted 2. Project schedule- tasks to be carried out at each stage to be listed. 3. Project deliverables- listing things to be delivered in order to meet the stipulated goals. Specification of time and means of delivery.
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II.

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i. ii. iii. COSTS:

. 4. Supporting plans-Plans to be created as part of planning process. The following are included: Human resource plan Communication plan Risk management plan

Professional costs Administration costs BENEFITS: Risks awareness Time allocation Efficient use of resources PROJECT APPROVAL Once all project details are negotiated and accepted, the project team prepare an appraisal document or the program document, along with other financial and legal documents, for the submission to the banks board of executive directors for consideration and approval When funding approval is obtained, conditions for effectiveness are met, and the legal documents are accepted and signed, the implementation begins.

III.

COSTS: Admistration costs Clients private costs i.e. opportunity cost, fuel Professional costs BENEFITS: Assurance of security Legal procedure followed PROJECT EXECUTION The purpose of this stage is to develop the product or service that the project was commissioned to deliver. This phase consists of the following processes; -conduction of project execution and kick off -project management -monitor and control risks

IV.

COSTS: Cost of materials Cost of labour i.e. skilled and unskilled Operational costs
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 Maintenance costs Professional costs BENEFITS: Achievement of the clients goal or, Measure of development at national level PROJECT MONITORING AND CONTROL Provides an understanding of the projects progress so that appropriate corrective actions can be taken when the projects performance deviates significantly from the plan. COSTS Professional costs Maintenance costs

V.

BENEFITS: Correction of defects that might occur during the stipulated period (up to the end of the defect liability period). Observation of time frame stipulated in terms of the contract. Quality of the product PROJECT EVALUATION This is a step by step process of collecting, recording and organizing information about project results. This phase is helpful in: Progress assessment Assessment of desired outcomes achievement Accessing ways in which to achieve better results in future Accessing if the results justify project inputs.

VI.

COSTS: Professional costs BENEFITS: Accessed risk of over trading (over spending). Calculation of the total building costs. 3.0 THE MANAGEMENT STRUCTURE IN THE PROJECT CYCLE 3.1 private clients: this can be an individual or an organization (nongovernmental) to which the service is offered. By virtue of being the projects owner he is therefore involved in all stages of the project cycle. At each stage the client makes sure that progress is made to attain his goal. Interim payments are paid to the contractor after each successful stage completion. The private client contribution to costs and benefits in the project cycle is through financing of works and personal expenses in the course of making sure his dream is attained e.g. personal vehicle costs.

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3.2 public clients: this can be an organization to which the service is offered (governmental). The public client at every stage of the project cycle is involved through the design team in that the design team updates the client of the progress of the project and the client in return performs his role of financing the project by releasing funds. 3.3 consultants: these are professional advisers specialized in particular careers. These include; the architect, quantity surveyor and the engineer. These individuals contribute at every stage of the project by ensuring; quality, cost control, stability and efficient use of resources (project management). Costs of maintenance are reduced when consultants are used during project execution. 3.4 main contractors: a company or person with a formal contract to do a specific job, supplying labor and materials and providing and overseeing staff if needed. The main contractor through his trades men is responsible for the assembling of materials to come up with the structure. The major costs to the contractor are in return for the resource of lobour applied to have the project executed. He is therefore the main contributor at execution stage in that he makes sure the clients dream is met. 3.5 subcontractors: a company or personnel working for the main contractor. The subcontractor only carries out work under the main contractor during execution stage. The subcontractor contribution in the project cycle is the execution of certain works/installation of certain services that the main contractor may not be able to carry out. Hence, he in return gets the value for his labour in terms of money.

4.0 CONLUSION The project cycle consists of six main stages i.e.; project planning, project approval, project execution, project monitoring and control, and project evaluation. There are costs and benefits at each particular stage of the project cycle which are either tangible or intangible. Furthermore, the management structure i.e. private client, public client, consultants, main contractor and subcontractor contribute respectively in the project cycle.

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REFERENCES a. Cost control in building design, Roger Flanagan and Brian Tate, Blackwee science ltd,oxford, 1997. b. Cost planning of buildings 7th Ed, Doglas J.Ferry, Peter, S. Brandon and Jonathan D.Ferry, Crosby Lockwood and sons ltd, oxford, 1964.

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