ABSTRACT
This chapter shows how construction and operation fit into the various stages of a capital project. It gives an overview of how the authors decide to initiate a project and how they prepare to reach that decision. The chapter provides a total cost picture of a project from initiation to termination. It discusses the elements of a decision-making process including the concept of risk management. The chapter includes the risk aspect of the decision making process with a short introduction to decision analysis. Most of us do not have the chance to work in all areas of project management. The authors usually specialize in cost estimating, scheduling, purchasing, constructing, designing, or other areas of project management. The total project control concept is conceded with cash flows during all phases of project development. There are three major areas of control which are Marketing, Construction and Operations.
