Inserting data to external DataBase
You don't have any submit callback. You should do any process with the submitted data in a submit callback like that:

function project_creator_insert_submit($form, &amp;$form_state) {
  db_set_active('civilproconstru'); /* OPEN DATA BASE*/
  db_insert('project_info')
    -&gt;fields(array(
      'p_name' =&gt; $form_state['values']['p_name'],
    ))-&gt;execute();
  drupal_set_message("succesfully saved");
  db_set_active(); /*CLOSE DATA BASE*/
}