This chapter of "Principles of School Business Management" reviews the extensive range of activities associated with planning for and constructing school facilities. These activities include (1) organizing the staff and organizing the task; (2) conducting long-range planning (involving the gathering of data, the development of a planning document, and the establishment of an approval process); (3) conducting fiscal planning (involving the selection of an appropriate financing method and the planning of a capital improvement program and budget); (4) planning, selecting, and acquiring the site; (5) developing educational specifications for use of the facility; (6) selecting architects to develop schematic and final designs, prepare construction contracts, monitor bidding and negotiations, and supervise the construction; (7) planning for occupancy of the new facility by the staff and by the public; (8) evaluating the planning and construction process and the final product; and (9) developing maintenance and operating procedures. Particular attention is focused on the elements and processes of planning; the working relationships that must be formed among the educators, architects, and builders; the criteria to be considered when selecting sites, designs, and key personnel; and cost-effectiveness and energy conservation in facility operations. Forty-six notes cite relevant sources. (PGD)