construction project management guide - smartrisk.biz · table of contents chapter 1 -...

CONSTRUCTION

Project ManagementGuide

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 1 // PLANNING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . .. . . . . .. . . . . . BROUGHT TO YOU BYBROUGHT TO YOU BYBROUGHT TO YOU BY. . . . . .. . . . . .. . . . . .

TABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTS

CHAPTER 1 - UNDERSTANDING AN ESTIMATE’S INFLUENCEON PROJECT PLANNING SUCCESS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Digging into the Estimate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Where to Look for Potential Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

An Estimate’s Influence on the Project Structure . . . . . . . . . . . . . . . . . . . 6

Pitfalls of Reassigned Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

CHAPTER 2 - ASSESSING RISK. . . . . . . . . . . . . . . . . . . . . . . . . 8

Take the Bite Out of Construction Project Risks . . . . . . . . . . . . . . . . . . . . 9

Categorize and Dominate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Risk Landscape . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Assess and Manage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

CHAPTER 3 - PLAN FOR QUALITY . . . . . . . . . . . . . . . . . . . . . . . 15

Matching Quality Standards to the Task . . . . . . . . . . . . . . . . . . . . . . . . 20

Minimizing Material Quality Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

CHAPTER 4 - HOW TO SUCCESSFULLY MANAGE INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

More Data, More Types of Data . . . . . . . . . . . . . . . . . . . . . . . . 26

What to Manage? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Potential Problems with Management Systems . . . . . . . . . . . . . . . . 28

Exploring the Cloud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Ensure Accountability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

More Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

About Procore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

CONSTRUCTION PROJECT MANAGMENT GUIDE • Part 1 // Planning

1CHAPTER 1 • Understanding the Estimate’s Influence on Project Planning Success

CHAPTER CHAPTER CHAPTER

111. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Understanding an Estimate’s Influence Understanding an Estimate’s Influence Understanding an Estimate’s Influence on Project Planning Successon Project Planning Successon Project Planning Success

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 1 • Understanding the Estimate’s Influence on Project Planning Success2

Once a bid is won, or a project is approved, the management of a project begins. An estimate influences significant aspects of the project management process. It informs the structure of the schedule, influences the processes used during construction, and determines resource use.

An estimate, in some respects, also sets up self-fulfilling prophecies born from the need to stay within a project budget.

If the budget for a portion of a project is too low, project managers will search for processes and resources that meet the budget. The same applies if the budget for a portion of a project is too high.

While project managers are typically very familiar with construction processes, there are many ways for any particular part of a project to be completed, and choosing one of lower-cost may appear to be the best solution in light of the cost estimated. Likewise, over–engineering can occur when estimating costs are high enough to allow it.

3

There are other aspects related to the estimate that require close scrutiny. Many times the estimate is prepared before submittals are completed or owner selections are made. For project managers, this means they aren’t working with the complete picture and will have a difficult time matching resources, materials and processes to the tasks.

The reality of many projects is that an estimate becomes a living thing, complete with constant revisions as the actual construction nears. To be successful, project managers have to look way ahead as they plan and anticipate aspects within the estimate that are likely to derail the schedule. Identifying these in advance allows project managers to prepare for any potential delays.

CHAPTER 1 • Understanding the Estimate’s Influence on Project Planning Success

DIGGING INTO THE ESTIMATE

Thoughtful estimators are worth their weight in gold, but project managers can’t always expect to get the best.

And don’t forget the element of time. Estimators are often in a hurry because project scopes arrive late and bid days get moved up.

Ideally, estimators would have all the time they need to consider the tasks of a project and investigate the processes they would like to use. But unfortunately, this is wishful thinking. Therefore, project managers have to assume the estimate they’re going to work from is flawed, and do the necessary work to locate those flaws and prepare schedules that reflect the realities of a project, both from a cost and time perspective.


GENERAL CONDITIONS - So many things find their way into general conditions that it can become a sort of catchall for items where there isn’t a clear assembly. But it’s also the place where many items end up for further scrutiny. These items might be unique to a particular area such as environmental or regulatory aspects or the costs of special insurances and permits.

TIGHT DEADLINES - When project bid schedules are condensed you can expect a lot more planning has gone into preparing the estimate. These assumptions often center on common processes and expenses unique to the particular shop. They may include best “guestimates” based upon a long track record of costs. The problem is, those might not be accurate if the assumed supplier, for example, is not going to be involved in the job, or participants change before a project gets underway.

UNUSUAL EXPOSURES - This includes aspects the contractor has not had much experience with, and therefore, estimating might not be as up to speed as it needs to be. For example, many contractors routinely work with trenches of shallow depth, two to four feet deep. An unusual exposure might include a particular job that requires trenches six or more feet deep, requiring shoring and other protective measures.

UNUSUAL PROCESSES - In construction there is often more than one way to correctly do a particular installation. The phrase, “generally accepted workmanship,” is a catchall phrase that saves time from detailing every step of a process. But when that phrase is attached to a process the contractors aren’t familiar with, the sky’s the limit as to what constitutes “acceptable”.

WHERE TO LOOK FOR

POTENTIAL PROBLEMS:


PERMITS

DEMOLITION

LANDSCAPING

MATERIALS

LABOR

AN ESTIMATE’S INFLUENCE ON THE PROJECT STRUCTURE

An estimate creates a rough outline of a schedule because a schedule is often built linearly, evolving from start to finish. The pitfalls that can arise involve the level of detail included in the work breakdown structure. When the work breakdown structure is not adequately broken down into individual tasks, and the schedule follows suit, discrepancies arise that creep into the plan. For example, a work breakdown structure item derived from an assembly can be missing components when the assembly that was used on a previous job is applied to a new job with slightly different specifications.


PITFALLS OF REASSIGNED COSTS

Ideally, estimates would remain accurate on all levels from start to finish. Cost breakdowns per division wouldn’t undergo an ounce of change and the amount witnessed at the beginning of the project would resemble the amount at the end of the project. This experience, however, does not represent the norm. In most cases, expenses not only change throughout a project, but on a daily basis.

Inexperienced owners have difficulty viewing office overhead separately from profit and assume their designers’ plans will finish without modifications of any kind.

These examples illustrate the extreme importance of accurate estimation that includes risk assessment, potential delays and setbacks.


CHAPTER 2 • Assessing Risk8


222. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .

Assessing RiskAssessing RiskAssessing Risk. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .

9CHAPTER 2 • Assessing Risk

TAKE THE BITE OUT OF CONSTRUCTION PROJECT RISKS

In the best-case scenario, managing risk in construction begins during the project feasibility stage. Rather than hoping for the best and not preparing for the worst, your team should evaluate risk assessments as soon as possible.

Surveys from 2005 and 2007 by KPMG found significant contrasting results when examining risk assessments from an owner’s perspective and a contractor’s perspective. This is not a surprising result since the two parties have different relationships with the project.

While this may seem like a problem, it can actually be a benefit if both parties communicate the potential risks from their own perspective. It is best to know any and all potential risks as soon as possible so your team can prepare for all types of risks and not just ones from a particular division.


CATEGORIZE AND DOMINATEDon’t simply be aware of the risks, but evaluate their significance as related to project objectives such as cost, time, quality, environment and safety. In the article, “Identifying Key Risks in Construction Projects: Life Cycle and Stakeholder Perspectives,” Dr Patrick, X.W. Zou, Dr Guomin Zhang and Professor Jia-Yuan Wang, created a ranking order of project risks relative to each category.

Interestingly, “tight project schedule” was ranked as the top risk in all categories. “Unsuitable construction program planning” arising from inadequate scheduling, innovative design and/or the contractor’s lack of knowledge in planning was another high-ranking risk. In order to avoid these risks, involve the contractor during the design phase.


Other risks arise from the sheer volume of information and participants involved in projects. Contractors are challenged by the number of entities involved, which can lead to gaps in communication if incorrectly managed. The best results come when contractors focus on employing skilled planners and managers and implement flexible and comprehensive project management tools.


RISK LANDSCAPE

In a perfect world, there would always be ample employees qualified to perform necessary work. Unfortunately this is not a reality. The increasing shortage of construction workers and skilled managers is having a greater and greater impact on projects—mainly increasing the risk of delays. This, in turn, increases the importance of effectively monitoring the availability of personnel and maintaining communications across all participants in order to minimize potential delays.

The litigious nature of societies today is another area with increasing risks. Disputes tend to arise when there are discrepancies or variations in the design. Mitigating these requires close coordination between the design team and contractors. Contractors should also negotiate with the owner and design teams to not only minimize their impact, but inform the design change itself.


Disputes also arise from people who are not direct stakeholders. For example, noise, dust, traffic, and environmental complaints are constantly increasing. Don’t wait to receive these complaints, but rather address them during the design and planning phases.

The unfortunate reality is that contractors also have to alleviate risks posed by subcontractors. One of the top risks for subcontractors is “low management competency.” This arises from the nature of subcontract work, which requires managing people, materials and equipment across multiple sites. When subcontractors are especially skilled in their trades, they tend to attract more work than they can manage. Besides ensuring subcontractors have the required job skills, contractors should also consider their level of management competency.

ASSESS AND MANAGE

Every project is unique with its own exceptional set of risks, but the process of assessing and addressing them can be generally outlined in these eight stages.

Construction is a risky business and one where risks can arise at any time during the project lifecycle. But with adequate risk assessment and planning, risks that pose the greatest threat to projects can simply become items to manage.


Outline the process to determine and manage risks throughout the project’s lifetime.

Identify risks. Don’t only name them — describe their characteristics.

Determine the impacts of each risk and its likelihood of occurring. As risks come into focus, determine which ones to directly mitigate.

Stakeholders review the risks as a whole and consider what their overall effect will be on the budget and project completion.

Address the risks by describing the actions that will be taken to resolve each one.

Assign responsibility.

Monitor and control risks.

01020304050607

Identify new risks as they arise, and solve them immediately, or plan to manage them for as long as they are active risks.08

................100%................

15CHAPTER 3 • Plan for Quality


333. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .

Plan for QualityPlan for QualityPlan for Quality. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 3 • Plan for Quality16

The question of quality enters a project at every stage, but most experts agree that it’s the quality control strategies discussed during the planning stages that set the tone for ensuring a quality project actually gets built.

Discussing quality planning at the beginning of the project also helps make sure it doesn’t slip through the cracks in today’s world of speed building. The core tenet of organizing for quality is communication.

COMMUNICATION


Brian Wessels, LEED AP BD+C, CESSWI, and project manager at Greiner Construction says effective communication ensures the knowledge of specifications gets transferred to everyone involved in the project.

He cites cloud-based project management software such as Procore, as offering one of the best solutions to ensuring everyone has access to create, update and distribute project documentation including data such as contracts, RFIs, submittals, drawings, and photos.


Areas of responsibility are closely related to the system of communication because they establish where the “buck stops” when it comes to quality, regardless of where or when the question of quality arises during the project.

If the lead carpenter is responsible for ensuring walls are built to specification, that’s a nearly ideal situation because you want decision-making at the lowest possible level.

You have to assume the people overseeing the work are qualified and competent enough to perform that role.

If that is not the case, you should consider reshuffling personnel to make sure people exercising oversight have the correct skills and experience. Once trust is established, it stands to reason that those who are closest to where the work is performed are in the best place to also oversee quality.


You should make sure each person responsible for ensuring quality actually knows it is their responsibility.

During the planning stages it’s a good idea to have a quality control meeting where roles and responsibilities for quality are decided. This meeting should include everyone with supervisory oversight, including subcontractors. But there’s also a larger quality picture that relates to all people on the project.

Wessels advises that quality control really comes down to the individual and whether or not they’re invested in the project. If they are, they’ll be motivated to do the right thing, and if all share that investment, it’s part of the culture, and will go a long way toward ensuring quality. He says it’s also key to make sure people have the right tools such as the ability to easily see the latest specifications from a computer or smart device. Wessels claims there are few projects today that have budgets allowing large numbers of supervisors to be circulating around the site ensuring things are built properly.numbers of supervisors to be circulating around the site ensuring things are built properly.


MATCH QUALITY STANDARDS TO THE TASK

With performance specifications, the outcome is specified while the methods are left to the builder.

The performance specification for a wall might require it be structurally appropriate and sound, preventing moisture intrusion and insulated to a minimum standard.

With this type of specification, it is up to the contractor to decide how to build the wall to meet the specifications within the cost allowed. Performance specifications also provide an opportunity to incentivize quality. For example, contractors could be eligible for bonus payments when the work in place exceeds the minimum standards.

Most projects have a combination of specifications and performance standards that should be scrutinized in the planning stages with the goal of understanding what they are requiring, and ensuring they meet local conditions.

For example, there could be instances where a certain material specified for use is not available. Knowing this upfront allows you to source an alternative and have it approved long before it’s needed.


MINIMIZE MATERIAL QUALITY ISSUES

Ensuring components are installed and built correctly is just one aspect of quality control.

Another, and probably more onerous aspect is verifying that materials and fixtures used for construction are the right quality themselves.

In recent years, a spate of counterfeit electrical components bearing all the official marks of certification has flooded the marketplace. Not only are these components often made of substandard or dangerous materials, they haven’t really been certified by Underwriters Laboratories. Other examples include drywall made with a material that promotes mold growth and lumber with such high moisture that it not only warps and twists in place, but encourages mold growth.


A global marketplace feeds today’s building environment. It is impossible to guarantee everything going into a building is of high quality, but there are steps to help minimize potential disasters.

During the planning stages, and even back in the estimating stages, there should be a commitment to source from known vendors that have consistently delivered quality. And even then, random checks on quality are a good idea.

During the planning stages, when products and materials are unknown, or are available from previously unknown sources, it is prudent to get samples and test them appropriately.

There are also highly critical components that should always be considered for testing. Concrete is one of them. Once installed, concrete carries a major cost to remove and replace, so ensuring the mix meets the specifications and is appropriate for the weather is an inexpensive form of insurance. The process of ensuring the quality of materials and products used in a project ends only when the project ends and controls should be established throughout the timeline to make sure quality remains high.


With quality materials and workmanship accounted for in the planning stages and an aggressive effort built into the duration of the project to monitor quality, projects can be successfully completed at high quality, even in today’s fast-paced building environment.

From a project management perspective, the key lies in thorough planning.

i

CHAPTER 4 • How to Successfully Manage Information24


444. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .How to Successfully Manage InformationHow to Successfully Manage InformationHow to Successfully Manage Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25CHAPTER 4 • How to Successfully Manage Information

The amount of necessary information and documentation in a construction project is enormous.

Maged Abdelsayed of Tardif, Murray & Assoc., consultants based in Quebec, Canada, estimate a $10 million project generates 56,000 pages of documentation, or data.

Data includes things like contracts, RFIs and submittals, which are currently accessed on an array of diverse technologies in 2014. As the ease of creating and sharing data has increased, so too has the amount of data. While sharing and updating the most current information for all participants seems daunting, the instant access and availability to this documentation from anywhere also holds promise for new capabilities.


MORE DATA, MORE TYPES OF DATA

Construction professionals are discovering the real power buried in all the information accumulated by projects and its purposes beyond the project’s construction lifetime.

For example, new data mining and search technologies make it easier than ever to compile “as-builts” after a project’s completion.

Furthermore, harvesting BIM models, turning equipment specifications into building maintenance and repair tools, drastically reduces the cost of maintenance of a facility.

With an increase in the amount of data and growing value, establishing an information/data management system is a must. In Digital Archival of Construction Project Information, authors list 49 different types of documents created on a typical construction project in 23 different file formats.

Thankfully, construction software and cloud services can manage that amount of documentation and file type diversity. Cloud offerings are indispensible in a construction project as any of these files can be accessed from anywhere at any time.


WHAT TO MANAGE?

Once a project actively begins construction, the following types of information should be managed within one database:

Drawings

RFIs

Schedules

Budgeting

Punch Lists

Daily Log

Submittals and Transmittals

01020304050607

Directories

Photos

0809


POTENTIAL PROBLEMS WITH MANAGEMENT SYSTEMS

Once you choose a management system, it’s not a simple cakewalk from there.

You still need to train your team on the chosen software, accumulate and upload all necessary documentation, and continually update the project information with any changes.

Some of the most common problems experienced include:

• Inability to find the right information when needed

• Collecting all necessary data from numerous stakeholders

• Difficulties in distributing information to many stakeholders

Not surprisingly, one of the chief contributors to these issues is the tendency for management solutions to operate in their own silos with little interoperability with other software. Therefore, a primary consideration when establishing information systems for a project is the system’s integration capabilities and supported browsers and devices.


There is also the difficulty of granting system access to members outside the company, including vendors and subcontractors.

If a vendor can access the project schedule, they can see when specific materials are needed and better coordinate delivery to the jobsite. Likewise, a subcontractor having access to QC (Quality Control) documentation can easily locate quality specifications related to a particular operation.

For example, if the specification of an item changes, and the change doesn’t make it to the vendor on time and the document record is updated accordingly, the wrong item will most likely be delivered. A more efficient process involves having only one file version accessible to everyone. That way, if any changes are made, everyone is updated immediately.

to the vendor on time and the document record is updated accordingly, the wrong item will most likely be delivered. A more efficient process involves having only one file version accessible to everyone. That way, if any changes are made, everyone is updated immediately.


EXPLORING THE CLOUD

A popular alternative to using in-house systems for project management is a cloud-based service.

Assuming the cloud vendor exercises sound security practices and an established backup program, the benefits can extend beyond mere management. For example, cloud systems don’t require IT support and are usually pay-as-you-go, allowing you to scale the service up or down based on your needs.

Look for these key aspects when choosing your project management solution:

• Status tracking

• Capacity to assign responsibility for tasks with due dates

• Permission levels

• RFIs and Submittal management

• Simplified reporting that is customizable

• Automated reminders and update notifications

• Search filters


ENSURE ACCOUNTABILITY

Once a system is chosen and implemented, the most difficult challenge is ensuring your team remains accountable for their responsibilities. The software won’t simply run itself — files must be uploaded, contact directories built, and documents consistently updated.

The best defense for ensuring accountability is a good offense. Be sure to assign responsibility, monitor progress, send reminders for upcoming due dates, and appoint second points of contact to receive notifications if primary contacts are unavailable or nonresponsive.


Today’s construction projects are more information intensive than ever and the trend toward greater and greater amounts of data is only growing.

In the grand scheme of things, information gathering, application, and archiving are creating new ways of information storage, use, and distribution. Construction companies that wake to the realization of information as a commodity will find new and better ways to use it and discover previously unavailable revenue streams.

The process starts with thorough project management planning with an eye toward project data uses that live long beyond the individual project.

ACCOUNTING

DRAWINGMANAGEMENT

SCHEDULING

RFIs

MORE RESOURCESProcore Company Website >

Procore Construction Blog >

WE’RE STANDING BYOur team helps construction companies and professionals improve communication using Procore cloud-based construction software.

Schedule a Demonstration >

Learn More about Procore >

If you have any questions, please give us a call at 1.866.477.6267 or email us: [email protected] | [email protected]

CONSTRUCTION PROJECT MANAGMENT GUIDE • Part 1 // Planning 33

PRODUCED BY Procore Technologies, Inc.

6309 Carpinteria Ave.Carpinteria, CA 93013

866.477.6267 www.procore.com

CONSTRUCTION

Project ManagementGuide

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 2 // SCHEDULING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . .. . . . . .. . . . . . BROUGHT TO YOU BYBROUGHT TO YOU BYBROUGHT TO YOU BY. . . . . . .. . . . . . .. . . . . . .


CHAPTER 5 - COMMUNICATING THE SCHEDULE . . . . . . . . . . . . . . 34

Meeting Up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Document Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

The Spoken Word . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

CHAPTER 6 - A RESOURCE VIEW OF SCHEDULING . . . . . . 41

CPM Limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

CPM Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Resource Scheduling and Lean Construction . . . . . . . . . . . . . . . . . . . . . . 47

CHAPTER 7 - THE EVOLVING CONSTRUCTION ENVIRONMENT . . 50

Practices for CPM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

CHAPTER 8 - ADDRESSING SCHEDULE CHALLENGES . . . . . . . . . . 59

The Magic of Overlapping Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

Paying Particular Attention to Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Finding More Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

Gaining Deeper Insights Into Requirements . . . . . . . . . . . . . . . . . . . . 67

CHAPTER 9 - MANAGING UNREALISTIC EXPECTATIONS . . . . . . 68

Unrealistic Dates with Valid Reasons . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

Becoming the Solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1

Unrealistic Dates With Invalid Reasons . . . . . . . . . . . . . . . . . . . . . . . . 72

Scope Changes and Planning Time . . . . . . . . . . . . . . . . . . . . . . . . 73

CONSTRUCTION PROJECT MANAGMENT GUIDE • Part 2 // Scheduling


CHAPTER 10 - ANALYZING THE SCHEDULE . . . . . . . . . . . . . . . . . 75

DCMA Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

Other Analysis Helpers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

About Procore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

CONSTRUCTION PROJECT MANAGMENT GUIDE • Part 2 // Scheduling

34CHAPTER 5 • Communicating the Schedule


555. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Communicating the ScheduleCommunicating the ScheduleCommunicating the Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 5 • Communicating the Schedule35

Construction project planners know the details of the schedule inside and out. They can look at a Gantt chart and easily see the relationship between tasks, the durations assigned and the resources committed. They can also readily recognize the critical paths and see exactly how things are running and if they are running behind schedule. Unfortunately, few others in the construction process are interested in the symbols and graphs planners rely on. This is why, as soon as the schedule is designed, astute planners practice the art of talking and writing in terms tailored to their audiences. In “Choosing Project Success,” J.F. McCarthy emphasizes the communication challenges planners face when he writes, “Many people do not like to plan; they prefer to operate and react, and many people cannot understand interrelations between activities. Furthermore, most people are incapable of using the graphs, mathematical symbols and tables that are part of scheduling.” This means the planners become some of the only people in their trade who understand these resources, making them futile to everyone else involved in the build. McCarthy’s advice for those who develop the schedule is to translate their contributions in layman’s terms and numbers.

SHARE THIS eBOOK!


Circulating a Gantt chart to work crews to illustrate their tasks, along with their respective resources and time constraints communicates very little to them. However, the same chart, shared with the subcontractor planners, will not only be understood, but expected, as they speak the same “language” of planning and scheduling. Work crews

need straightforward communications without ambiguity. For example: Install the electrical outlet boxes with the necessary wiring between June 10th and 20th. If you include an illustration for further clarification, McCarthy advises providing a simple bar chart without distracting critical path annotations.

MEETING UP

Project meetings focusing on communicating aspects of the schedule are crucial. In part because you want to make sure the schedule is realistic for all those doing the work, but also to get buy-in from all stakeholders. Gather detailed estimates from subcontractors and others involved when creating the schedule and find out if there are limitations that have arisen that were possibly overlooked.

Schedule meetings with your teams to keep everyone on the same page. However, try to avoid scheduling them when other forms of communication will suffice. Meetings are successful when:

Group decisions are necessary

They offer the best way to share information that requires collaboration

It’s necessary for people to meet in person

People need to receive the information at the same time



DOCUMENT MANAGEMENT

It’s become more important to

have a firm handle on managing

communications, especially with all

the document storage options now

available. Project management solutions

such as Procore include document

management functions that greatly

simplify the organization of all project

documentation. From submittals and

change orders to RFIs and punch

lists, the right document management

solution makes sure actionable items

are acted upon, that notifications occur

on time and that people have the right

information when they need it.

SHARE THIS eBOOK!

THE SPOKEN WORD

Managing verbal communications related to the schedule is a bit more challenging since discussions often happen spontaneously, and even when planned, there are technical and legal limitations related to recording them. Even if recording is an option, there are challenges of storing, sorting, searching and archiving audio files to ensure they are quick and easy to locate. It often falls on the participants to create their own verbal or written record of the conversations, within a

reasonable amount of time. But many don’t document their interactions and tend to rely solely on their memory to direct their responsibilities. If the communication between the two was effective, meaning both parties clearly understood what the other said and meant, it’s likely both parties will make the appropriate and agreed-upon decisions. But if the communication was muddled, or both parties left with a different understanding, the decisions most likely won’t be aligned.


The person talking tends to assume

their message is clear and precise,

but that’s not always the case.

When those communicating share

a common ground, they have a

good chance of understanding

one another. However, when

people of different backgrounds

and professions communicate, the

possibility for error increases. To

make sure you understand one

another, you have to ask the simple,

and often over-looked, question,

“Do you understand?” If you don’t

ask this when there’s a possibility

of misunderstanding, you are

contributing to the confusion.

Effective listening, removing

distractions and occasionally

summing up what the other person

has said also helps make verbal

communications more effective.

The schedule is ultimately the tool

that will determine project success.

Ensuring it is communicated

accurately, consistently and

completely, with all stakeholders

involved, is the only way to utilize

its potential.


CHAPTER 6 • A Resource View of Scheduling41


666. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A Resource View of SchedulingA Resource View of SchedulingA Resource View of Scheduling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

42CHAPTER 6 • A Resource View of Scheduling

CPM LIMITATIONS

Bottlenecking, due to limited resources

in high demand, can potentially be

resolved if schedules are created based

on available resources. For example, a

construction project with environmental

problems requiring a special team of

remediation experts may result in delays

if finding enough experts proves to be

impossible. A series of linked projects

dependent upon a common resource,

such as a construction crane, may cause

delays if, due to space and safety issues,

adding additional cranes is out of the

question. Taking the time to review

your schedule based on the resources

available, can save you time and money

and keep your project on track.

SHARE THIS eBOOK!


A resource-based approach is often used in conjunction with the Critical Path Method (CPM), but there may be some projects where using this as the exclusive scheduling technique is appropriate. Consider a project where short-supply resources are needed for more than one task, making it impossible for the CPM to work. As Chris Hendrickson, Department of Civil and Environmental Engineering, Carnegie Mellon University states, this happens because CPM scheduling “assumes that no resource availability problems or bottlenecks will arise.” There are also additional methods for dealing with resource limitations. For example, the scheduler could set up resource constraints first and then add precedence constraints. Another option would be to set up resource-challenged activities into groups that receive special attention.


Regardless of the chosen process, the schedule must ultimately reflect the resource limitations and effectively deal with them, or the issues have to be dealt with manually. One such manual approach is a reservation system for handling resource bottlenecks in which the resource in short supply is identified early in the planning stages. Therefore, participants that need the resource can reserve it at a predetermined time. In computer-managed projects, this process has been further refined by independent software agents and referred to as a Multi-Agent System. The agents are autonomous, each representing either a process or a resource, and negotiate the right matches between processes and resources. According to T. Horenburg, J. Wimmer & W. A. Günthner’s paper, “Resource Allocation in Construction Scheduling based on Multi-Agent Negotiation,” these systems have been tested and proven highly reliable and capable of returning high-quality solutions for resource-constrained project scheduling problems.

SHARE THIS eBOOK!


CPM scheduling alone can accommodate all resource constraints, or can be done in concert with resource-based scheduling. For example, when there is only an occasional resource limitation, you could start with the CPM and address the resource constraints as needed. If there are multiple resource constraints, then it might be more

beneficial to deal with the resource issues first. Furthermore, it may be advantageous in some instances to proceed by following both approaches at the same time. There are many different ways to deal with scheduling problems– including those arising from resource constraints– and many times it simply means modifying the CPM.

CPM OPTIONS


Hendrickson outlines a process beginning with the CPM, in which you lay out tasks, durations and resources in their proper order. Predictably, you’ll experience deviations in the start times of activities and if you schedule each activity to start at its earliest possible time, resource constraints may appear. The next step is to pick the activity that is resource-challenged and has the CPM “late-start time” earlier than any other resource-challenged activities that have all their predecessor requirements filled. Then, shift the start times of all those activities to later times. As new conflicts arise, continue applying the rule all the way through to the end of the project. When choosing what order to consider the resources, select important ones first, meaning those with higher costs or most likely to cause bottlenecks. Taking care of these early makes other decisions much easier.


RESOURCE SCHEDULING AND LEAN CONSTRUCTION

As more construction projects adopt lean construction principles, the corresponding need for very clear views of what the project requires increases. For example, in most schedules, the activities and resources necessary for transitioning from one task to the next remain largely invisible. The preparation work needed for just beginning a task is seldom shown, yet it is a time and resource-using activity. The delivery of materials and equipment, the movement of tools and supplies, the preparation of surfaces, setting up workspaces, acquiring missing components and many other activities are essentially being added to the timeline without specifically being accounted for. While resources such as materials, manpower, tools and equipment are necessary to accomplish an activity, there are also ‘sleeper’ resources that can bottleneck just as much as not having the right size fastener. These informational resources include contracts, drawings, specifications, RFIs, approvals and all other prerequisites that inform the means of a task.

CHAPTER 6 • A Resource View of Scheduling 48

In the paper, “Integrated Production Scheduler for Construction Look-Ahead Planning,” the authors explore how an Integrated Production Scheduler (IPS) System can effectively manage issues arising from missing resources at any stage of the schedule, even those that are invisible. The system relies on a person designated as the Integrated Production Scheduler to act on behalf of all the stakeholders from project managers to suppliers. It develops the look-ahead schedule with a short-term, detailed focus that is critical to keeping a project on track once underway. IPS identifies the information and resource constraints that are most likely to derail the timeline, and focuses on them to minimize their impact. This process is ongoing and involves establishing a series of four buffers, as described by David, K. H. Chua and Li Jun Shen, in their paper, “Constraint Modeling and Buffer Management with Integrated Production Scheduler.” The buffers discussed are not constraint buffers, but schedule buffers put in place to focus on critical resources and information requirements to control delivery and availability. Once suppliers confirm the availability of their constraint items, the activity they relate to is placed on the look-ahead schedule.

SHARE THIS eBOOK!


Construction planners and schedulers handle the variables of resources from the

inception of the project until completion, and sometimes beyond that. When resource

and information constraints are light, the CPM works well on its own. However, as the

number and complexity of resource and information constraints increase, it can be

beneficial to incorporate alternative scheduling processes.

SHARE THIS eBOOK!

50CHAPTER 7 • The Evolving Construction Environment


777. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Evolving Construction EnvironmentThe Evolving Construction EnvironmentThe Evolving Construction Environment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 7 • The Evolving Construction Environment51

For more than 60 years, construction has largely relied on a single type of scheduling process, the Critical Path Method (CPM). The seeds of CPM were started by DuPont in the early 1940s and then developed into a project modeling technique in the late 1950s by Morgan Walker and James E. Kelley, a mathematician who had been working on linear progression. Until the advent of CPM, project schedules were governed by Gantt

charts with dates and durations based only on the experience or best estimates of the planners, according to Patrick Weaver FAICD, FCIOB, PMP and Director of Mosaic Project Services Pty Ltd. Needless to say, the planners weren’t always right, especially on complex construction projects. Planners had only their personal opinions on the potential length of delays when things went wrong, causing contractors and owners to flood projects with resources, often at a very high cost.


CPM has been used for horizontal construction projects like roads, bridges and dams, but faulted as not being effective at modeling the spatial activities involved in these types of projects. An alternative method of scheduling called the Repetitive Scheduling Method (RSM), as outlined by Robert B. Harris and Photios G. Loannou in their paper, “Repetitive Scheduling Method,” helps ensure the continued use of resources once deployed and overcomes CPM’s limitations arising from its focus on precedents and resource availabilities.


CPM is also being challenged on the vertical construction front by scheduling techniques that enhance building information modeling and lean construction, with RSM and location-based scheduling (LBS) being the main challengers. Where CPM focuses on time, LBS focuses on resources. LBS, however, is not a new idea, having been successfully used in the construction of the Empire State Building, which set records for its construction rate, according to Natalia Rodriguez Martinez in her doctoral thesis.

LBS assigns and tracks crews as they proceed through a series of repetitive tasks in different locations. Instead of task duration timelines for the chart, LBS has flowlines that quickly show the speed of crews relative to one another. Building Information Modeling (BIM) fits naturally with LBS because it provides more information that is actionable from a scheduling perspective, according to Capital Project Management, Inc. For example, schedulers could use material quantities shown on each floor to decide crew sizes and assign timeframes and productivity.

SHARE THIS eBOOK!


PRACTICES FOR CPM

No one expects CPM to go away anytime soon, especially with more than 90% of construction firms using it today, but as new technologies such as BIM continue making inroads into the sector, changes in the processes that take advantage of the benefits arising from those new technologies will continue to gain speed. In the meantime, CPM will hold its dominance not only because of its familiarity, but because other project scheduling processes are not as well vetted when it comes to legal aspects such as proving delay claims. CPM is also intertwined with the earlier project management processes like planning.


Ultimately, the values derived from the planning stage are plugged into a CPM scheduling application such as MS Project or Primavera, which can then be integrated into software programs like Procore. These schedules are available online for easy viewing and sharing, along with all the other aspects of the project. The following items form the basis of the schedule:

Tasks

The relationships, or dependencies between tasks

The time for completing each task

Stopping points that feed successive tasks or that feed the project’s end

01020304Once these are entered into the application, you can see the duration of tasks, and of the overall project, along with the earliest and latest a task can start without affecting the project’s schedule. You can use analysis tools to get various views of tasks, durations and the project’s critical path to completion. The real advantage is that whenever you change resources, tasks, time, or dependencies, the changes automatically trigger a recalculation of time-to-completion and adjust other affected parameters. This makes it convenient for carrying out “what-if” scenarios, and makes it highly efficient when changes become necessary.

SHARE THIS eBOOK!


There is a tendency for planners to expect the schedule to handle too many processes. Andy Roeser, P.E., PSP, when speaking at a Construction Critical Path Method conference, called such overloads of a CPM, “schedule divergence.” In effect, these additional constraints and conditions that don’t fit the CPM schedule render it ineffective. A CPM schedule is generally designed to:

Manage time and risk

Show project stakeholders the scope of involvement

Move the plan to an actionable state

Show items that will affect the plan


According to Roeser, the kinds of additions thrown into a CPM schedule that can cause it to divert from its intended purpose include:

In particular, it can be dangerous to have too many people interacting with the schedule. As new requirements are added, such as tracking change orders and cost data of resources, the schedule becomes increasingly overloaded with information, inhibiting its effectiveness and rendering it useless. While prudent to limit the kinds and amounts of data resources used in CPM, there’s evidence that incorporating information flows can be beneficial.

Too much data01

02

03

04

05

Incorporating change management and using the CPM as a claims and payment tool

Not incorporating changes in a timely and accurate manner

General contractors and construction managers not communicating the plan

Updating the CPM incorrectly

SHARE THIS eBOOK!


The authors of “Information Flow Integrated Process Modeling” used a case study to examine how incorporating information dependencies into a CPM schedule can detect information loops and find conflicting process relationships. The authors first identified the information dependencies and incorporated them into the schedule. They found they could reduce information conflicts such as those that arise when stakeholders don’t receive critical scheduling information, a technique especially relevant for lean construction practices. Construction projects are infused with greater and greater levels of complexity as delivery options, design methods, materials, and construction methods evolve. When CPM is not specified by owners, construction planners should take advantage of alternative scheduling processes that best fit their building needs.

CHAPTER 8 • Addressing Schedule Challenges59


888. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Addressing Schedule ChallengesAddressing Schedule ChallengesAddressing Schedule Challenges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Construction project schedules go through predictable cycles of changes as more and more specifics of the project are revealed, and the plan, in its entirety, is fine-tuned. But even as the last item is placed on the timeline, there are some schedules that require extra finesse to make them truly workable. These schedules often suffer from resource constraints and excessive tasks creating lag time. Most commonly, as the projected costs move from vague to clear, there is often a last-ditch effort to move costs back in line with the original budget.

Building a schedule that minimizes costs usually relies on optimizing the lower tasks to such extremes that they push out project completion. The knee-jerk reaction to those results often leads planners to go too far in the other direction and schedule all tasks equally. Using overtime because of a compressed schedule leads to higher labor costs, but as Chris Hendrickson, author of “Project Management for Construction” points out, it can also lead to increased accidents and lower quality work. Both which lead to higher costs.

60CHAPTER 8 • Addressing Schedule Challenges

When you apply this approach systematically, you will reduce the project’s duration to a point where another path becomes the critical path. Continue this process until you’re satisfied with the cost/duration ratio. From there, you can optimize the schedule by alternating between both approaches. This process will also show you when the project deadline is unattainable. These processes are most effective when there are resource constraints and when the time-cost balance for tasks isn’t known ahead of time.

Tweaking the schedule by adjusting durations and the cost of items directly confronts issues with the project’s total budget and completion time. Other schedule problems such as resource constraints, excessive lag times and missing requirements are often the result of incorrect assumptions made either in the estimating or planning stage that ultimately informed the initial decisions. Solving these challenges comes down to reviewing and correcting earlier assumptions.


Gantt Charts look most alluring when all the lines connecting tasks drop straight down from the end of one to the beginning of another. But most of the time, these charts aren’t so symmetrical or predictable. It’s actually a good thing many tasks on most project portions comfortably overlap each other. This presents the opportunity to refine the schedule and make up for resource constraints and excessive lag times.

For example, painting can begin long before the entire house has been rocked. Plumbing can proceed on one portion of the fifth floor while wire is being pulled on another. Moving successor task start times to the earliest time possible can easily result in significant reductions in durations and costs. The trick is to do so cautiously so as not to upset the rhythm of each task. If the drywall installers are working in the back of the house and the only way to get the materials into the work area is to come through the entrance hallway, it’s probably best not to have painters working in that hallway. And if HVAC ductwork isn’t installed above the furnace, then having plumbers install the hot water heater in the same utility closet might be taxing for not only the space, but the crew as well.

THE MAGIC OF OVERLAPPING TASKS


SHARE THIS eBOOK!

However, tightly scheduling tasks

where there are space limitations is

not entirely out of the question. If

you are working with skilled crews

you know well, and the return on

time or cost savings seems worth it,

employing exceptional and timely

coordination could make it work

without any negative side effects.


Another opportunity to tackle challenging schedules is to re-examine how the mix of resources is being deployed. In this case, you start by looking closely at activities on the critical path. By increasing the manpower on a task, work will be completed faster assuming:Sometimes, replacing labor with mechanization can Sometimes, replacing labor with mechanization can radicall

the critical path. By increasing the manpower on a task, work will be completed faster Sometimes, replacing labor with mechanization can Sometimes, replacing

labor with mechanization can radicall


PAYING PARTICULAR ATTENTION TO LABOR

• There is room for everyone to work efficiently

• Everyone has the necessary skills and tools

• The predecessor task is far enough ahead so the increased momentum of the successor task won’t cause the two to crash

• The necessary equipment and materials are available

SHARE THIS eBOOK!

Sometimes, replacing labor with mechanization can radically reduce time and cost constraints. Machines are tireless and unaffected by mood, attitude and comfort level, and provided you have the necessary resources for operating and maintaining equipment, can become your greatest asset in addressing schedule limitations. It is critical, however, to know the limitations of machines and the resources that surround them. Machines that are utilized inefficiently, or that compromise their strengths, will inevitably become problems. If machines aren’t reliable and well maintained, higher costs and longer durations will result.



FINDING MORE TIME

You have to factor productivity into any schedule when you want to extend the

workday calendar. Having a six day week without bringing in fresh crews for the sixth

day increases the risk of higher costs due to overtime pay, heightened accident risks,

and lower productivity. It’s better to simply extend the work week to seven days and

arrange the crews to average 30 to 40 hours a week. Crews stay fresh longer, accident

potential decreases, productivity is higher and overall task durations are shortened, all

without increasing costs. Be aware of the importance of buy-in from all parties when

interrupting the traditional work week and remember to factor in all local labor laws.


GAINING DEEPER INSIGHTSINTO REQUIREMENTS

In the imperfect world of construction schedules, there is great value in having

a second pair of experienced eyes to overlook the schedule. In particular, the

project manager should review and inform the rest of the team on the progress of

the schedule. There are likely things that only the PM knows, as they are privy to

negotiations surrounding the duration of various participants’ tasks. There may also

be global constraints only known at the highest levels and special considerations

related to labor and equipment that are part of contractual obligations or other

encumbrances and requirements.


999. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Managing Unrealistic ExpectationsManaging Unrealistic ExpectationsManaging Unrealistic Expectations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

68CHAPTER 9 • Managing Unrealistic Expectations

While each project has an estimated completion date, construction projects are

notorious for requiring many adjustments to scope throughout the process. Owners,

bankers and others involved at the highest levels always consider the project in

terms of completion because, as everyone knows, the longer a project is under

construction, the more it costs. The goal is to get it built as quickly as possible, so the

product can move into its most useful stage where the highest returns on investment

are possible.

CHAPTER 9 • Managing Unrealistic Expectations69

There are times when the completion date is driven by a strict and quickly approaching deadline. If a tax credit expires at the end of the year, investors will attempt to harness the tax advantages before December 31st. Solid deadlines like these can’t be adjusted and if the principles haven’t provided enough time for thorough planning and execution, the project will inevitably face problems. Hopefully, those in charge of deciding the scope trust the planners to make appropriate adjustments and take into account the lack of time. Otherwise, those creating the schedule are left

with the often difficult task of making expectations more realistic. According to Claude Emond, project management consultant, coach and trainer, if you continue with an unrealistic schedule, you could face the following negative results:

• The team won’t be able to buy-in

• The schedule will fail to deliver

• You’ll be the scapegoat for the missed deadline

• You’ll be asked why you didn’t inform people of the schedule problem

UNREALISTIC DATES WITH VALID REASONS


BECOMING THE SOLUTION

To handle this situation, you must make sure you are working with up-to-date information and that you’ve created a plan with input from team members that reflects the shortest time to completion. If, after you’ve tried crashing, fast-tracking, and applying alternative estimates of critical path activities, you end up with a plan that fails to meet the deadline, the next step is to ask management if the project length you’ve arrived at is acceptable. If not, you’ll need to come up with alternatives, according to Rita Mulcahy, PMP. There may be options you can present that will address the problem and bring the project in on time. These include:

Scope changes that eliminate or shorten portions of the project01Different methods such as using prefabricated components02Increasing resources03Specifying receipt of certain information by a certain date04Changing particular quality specifications05

The benefits of following this process, according to Mulcahy, include:

• Pushing back in a positive way

• Involving management in a way that gets buy-in

• Arriving at a realistic project schedule


SHARE THIS eBOOK!

UNREALISTIC DATES WITH INVALID REASONS

There are times when a project deadline could be used in a manipulative way. An owner or project manager will sometimes set unrealistic deadlines hoping to pressure the team to pull it off. In one way, unrealistic deadlines that are founded on a real need can spur teamwork and ultimately provide a sense of accomplishment, says Vincent McGevna, PMP. But when deadlines are superficial, they can become problems for the following reasons:

• They encourage shortcuts that result in defects

• They muddle the availability of resources

• They put pressure on those responsible for the late-in-project successor tasks

• They force project participants to fix defects from one task, while working on the next task

This is another situation where communication is critical. Project managers and planners are retained for their expertise and when they don’t demonstrate their know-how and set potentially damaging expectations, they do a disservice to the client, and themselves. There is often the fear of being regarded as less than competent if you tell project owners that their dates are unachievable. The opposite is actually true, however, assuming the homework has been done and the deadline is proven unrealistic.


SCOPE CHANGES AND PLANNING TIME

Scope changes can be another source of unrealistic expectations and often continue to be so long after the schedule is complete and the project is in the construction phase. Those changes have to be dealt with as they occur, but changes that take place while the schedule is being assembled require accommodation before construction begins.

Changes in scope requirements during the project planning stage can sometimes result from new information being revealed. For example, as estimators and planners receive information about site conditions, they may detect situations that require remediation or extra work. Poor drainage, unsuitable soil conditions, access problems and complications with utilities are often exposed in these early planning stages.

These and many other factors will ultimately push the desired completion date if they can’t be mitigated. When these changes continue in frequency and volume to the point where they affect the time available for planning and scheduling, something must be done. Just as a plumber requires a minimal amount of time to complete a task, so too does a planner. In the absence of adding planners to the job, the issue of not providing enough time to properly plan must be confronted.


This situation is often more difficult than

tasks on the timeline because it’s easier

to view scheduling as a non-contributing

factor to project completion. But in the

final analysis, inadequate timing always

leads to a poorly planned project that

does not meet expectations.

Regardless of the project, it is the level of

trust management in estimators, planners

and project managers that influences

how their take on unrealistic expectations

and unrealistic schedules is regarded.

When the trust isn’t there, the project will

undoubtedly fail on many levels.



101010. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Analyzing the ScheduleAnalyzing the ScheduleAnalyzing the Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 10 • Analyzing the Schedule75

Drafting the project schedule is an important step in the construction process as

it guides the direction of the project. For simple projects with short durations and

less than one hundred tasks or components, the first draft may provide enough

information to implement the project. For more complex projects, however, there are

usually subsequent drafts required to better address issues such as lengthy critical

path and project completion date extensions. Other areas where additional analysis

may be needed include:

Tasks, resources and assignments that don’t flow logically, or that need special considerations01Costs that exceed activity or project budgets02Over allocation of resources03Achieving a better fit of allocated resources to tasks04Adjusting task relationships05

76CHAPTER 10 • Analyzing the Schedule

SHARE THIS eBOOK!

The best way to make these adjustments

manually is to utilize project

management software. For example,

Microsoft Project includes a number

of ways to adjust what is displayed

and how it is displayed so you can see

problem areas, share information and

improve the schedule. By selecting

the appropriate views, you can locate

problems within the schedule that you

wouldn’t necessarily see otherwise.

However you plan to do your schedule

review, put it in writing and describe

your process clearly. Be consistent from

one project to the next as it will help

define your review process and work

style and allow others to follow along.

There are many different approaches to

analyzing the schedule and you should

pick one that matches not only your

work style, but the types of projects

you work on. For example, the Defense

Contract Management Agency 14 Point

Assessment is required for government

projects and provides a step-by-step

process for analyzing a schedule.


DCMA ANALYSIS

When analyzing a schedule, make sure

it is logical. For a logical framework, you

must ask yourself why the project is

being done, what the expected outcome

will be, how the project will be achieved,

the means required for success, and the

overall project cost. While these items

will most likely not appear on a timeline,

as a resource or on a task list, they are

still crucial components of a successful

project plan.

Timelines, however, do

possess logical characteristics

as well. Any task on the

timeline that does not fit the

criteria of the project is a

mistake. Likewise, if tasks are

not appropriately linked as

predecessors and successors,

it’s a red flag that must be

examined closely.


SHARE THIS eBOOK!

Two other key factors to review on a schedule include the number of leads in predecessor relationships on incomplete tasks and the number of lags on incomplete tasks. There should not be any leads in predecessor relationships, due to the critical path and their negative affect on analytics. When it comes to lags, those numbers should be kept to 5% or less. Because the DCMA 14 Point Assessment is designed to be completed throughout a project’s reporting cycle, total tasks, completed tasks and incomplete tasks are all included in the metric. If you’re using

this standard to evaluate the schedule before the project begins, most, if not all, of the tasks will be incomplete. By counting the number of start-to-start, finish-to-finish and start-to-finish relationships for incomplete tasks, you’ll be able to make sure that at least 90% of your schedule uses the finish-to-start relationship. Also, look at the number of start-to-finish relationships and see how often they are used. These should be rare and if used at all, should be accompanied with sound justification.


Make sure that incomplete tasks do not include more than 5% of hard constraints because the schedule will then become illogical. Likewise, they should not contain more than 5% of floats exceeding 44 days, and should not be missing predecessors or successors. Check for tasks with floats that are negative and adjust the schedule as necessary to eliminate them.

Next, look for incomplete tasks with high duration, like those exceeding 44 days. You should try to keep those instances to less than 5%. These tasks will most likely not be broken down enough to be manageable and provide transparency into exact timing and cost. Also, look for invalid dates. There shouldn’t be any start or finish dates occurring after the end of the project or after the end of a particular reporting period. Then, make sure that all tasks have either hours or dollar amounts assigned to them and check to see if the project completion date has a negative total float number. Two other analyses to perform are the Critical Path Length Index and the Baseline Execution Index, both of which come into play once the project is underway.


SHARE THIS eBOOK!

15

OTHER ANALYSIS HELPERS

You might decide to look for help with the schedule analyzing process. Short, simple projects as well as those that are long and complex can benefit from outside analyses. This could be done by consulting planners or by individuals with similar project experience. There are also software programs available that can perform schedule analyses and flag troubled areas. Here are a few of these software programs:

Schedule Cracker analyzes the schedule and addresses problems that occur in seven main areas. It finds these issues and gives insight to the schedule by including cost metrics analyses, highlighted activities with alarming conditions, and showing the places where closer inspection is needed, such as abnormal activities. This tool also tells you how closely the schedule fits the Defense Contract Management Agency 14 Point Assessment requirements and compares a base schedule against a revised schedule, analyzes the trends, and performs an earned-value analysis.

Acumen Fuse is a diagnostics tool that “pinpoints and resolves shortcomings in a matter of minutes.” It uses industry-wide standards and allows users to define their own standards as well. This software checks for logic, float, sequence of activities, level of detail, costs and risks, and earned value. It too compares changes over time and analyzes single or multiple project files. Once the analysis is completed, the tool then summarizes the results to include a quality indicator score that can be used to assess the schedule’s quality against industry benchmarks.


Steelray Project Analyzer says it can “evaluate your project schedule for quality and performance in minutes.” It also has a “coach” that helps you fix problems using actionable guidelines. This software calculates the longest paths, detects circular chains of activities, assesses the schedule against the 14 DCMA points, compares schedules, provides a scorecard and justification, analyzes by phase/period and allows you to interact with UN/CEFACT files.

Because project schedules are usually built in a fluid and dynamic environment, they require constant adjustment. Once the project is ready to implement, a thorough review of the project schedule will pave the way for success.


WOULD YOU LIKE MORE RESOURCES?

Resources Page >




CONSTRUCTION PROJECT MANAGMENT GUIDE • Part 2 // Scheduling83

SHARE THIS eBOOK!

Procore is a cloud-based construction management software application. We strive to make your project management effortless, one task at a time. With Procore’s

easy-to-use and collaborative software, you can manage projects at anytime, from anywhere, with any Internet-connected device.


Construction Blog >

YouTube Channel >

Construction Project Management Guide, Part 1 >

SCHEDULE A DEMO

CONSTRUCTION

ProjectManagementGuide. . . . . . . . . . . . . . . . .

PART 3. . . . . . . . . . . . . . . . .

PROJECT CONTROLS

. . . . . .. . . . . .. . . . . . BROUGHT TO YOU BYBROUGHT TO YOU BYBROUGHT TO YOU BY. . . . . . .. . . . . . .. . . . . . .


CHAPTER 11 - CONTROLLING PROJECT COSTS . . . . . . . . . . . . . . . . . 84

Using the Right Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

Procuring Effectively . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

Activities Out of Sequence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

Scope Creep . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

Increases in Material Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

CHAPTER 12 - QUALITY CONTROL IN ACTION . . . . . . . . . . . . . . . . . . . 91

Quality Begins and Ends with People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

Total Quality As a Goal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

Phases of Quality Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

CHAPTER 13 - CONTROLLING THE SCHEDULE . . . . . . . . . . . . . . . . 97

Communicate and Observe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

The Harbinger of Complexity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

ABOUT PROCORE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

CONSTRUCTION PROJECT MANAGMENT GUIDE • Part 3 // Project Controls

84CHAPTER 11 • Controlling Project Costs


111111. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Controlling Project CostsControlling Project CostsControlling Project Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 11 • Controlling Project Costs85

Using cost controls during a project provides the necessary assurance that spending won’t exceed the budget. When cost controls are used at the activity or task level, they also help locate problem areas within the schedule and encourage new efficiencies. If costs for a particular activity rise too fast relative to the percent complete, then adjustments may be in order. These adjustments might include:

• Changes in scope

• Adjusting crew size

• Attending to factors interfering with timely completion

• Increasing management control over material and equipment aspects

86

Once construction is underway, it’s very difficult to address cost problems arising from mistakes or oversights that should have been dealt with during the planning stages. If there’s an inadequate work breakdown structure, budgets that have been highly reduced in order to increase competitiveness, or an overall budget is

unrealistic, then it’s time for a meeting with management, and quickly. If attention was put into planning a realistic project, with achievable deadlines and budget, utilizing the cost controls set in place will help mitigate budget problems once the project is underway.

CHAPTER 11 • Controlling Project Costs

USING THE RIGHT TOOLS

According to the Construction Users Roundtable, or CURT, project costs should be reviewed every month with an effort to track all fixed-price contracts. Some projects, however, benefit from weekly or even daily tracking. When a project starts to get into trouble, increasing the frequency of budget reviews adds a margin of safety to both cost and timing.

One of the more difficult aspects of cost control is managing reimbursable costs. These require tracking work progress and purchases already spent against the budget. If these aren’t reviewed or managed well, predicting the final cost of assembly, task or activity will be challenging. Review the tools you’re using and make sure you’re not overlooking features that will provide transparency. If needed, find new, more effective tools.

Changes in project scope due to the emergence of new information are inevitable in construction. It’s not a question of whether, but rather when the next change will take place. If you have project management software like Procore, change orders are quickly and easily tracked from cradle to payout and beyond. Construction software helps ensure cost changes continue to fit into the project budget and approved changes are transparent and tracked in real time with all parties involved.


SHARE THIS eBOOK!

Just as costs must be tracked, they should also be reported. It does no good to have growing cost reports sit buried in an inbox or budget report. Items on the verge of and those already running over cost should be called out for attention, whether in a clearly marked section of the budget report or in red type on a ledger. How close an activity is to going over budget depends on more than just the amount spent to date in relation to the total budget for the activity– the amount of remaining work is also a major consideration. There is no shortage of construction accounting software and cloud offerings that handle the accounting aspects of the project. The best options are able to record costs based on cost accounts that track, as closely as possible, the activity or task level. Getting to this level is essential if you want to track in extreme detail where money is being spent. You might have a project budget of $2,000,000 for carpentry, but if you don’t break costs down into wall versus roof carpentry, then it’s much harder to know exactly where the carpentry budget is causing you to dip into the red. Additionally, at project closeout, you will miss valuable data that could inform decisions on future projects.


SHARE THIS eBOOK!

PROCURING EFFECTIVELY

According to Edward Opall, CPA, CCIFP, and director at EisnerAmper, Real Estate Construction Services Group, the best opportunity for reducing costs and increasing profitability on a construction project is to have effective procurement. This extends beyond consumables to subcontractors as well. Developing and using a strategic purchasing plan and packaging all the components of work products gives contractors the best opportunities for competitive pricing according to Opall. He also stresses the importance of incorporating unit prices, labor rates and alternates into purchasing decisions.



There are multiple reasons why project costs begin to escalate. A few of the common ones to watch out for include:

ACTIVITIES OUT OF SEQUENCE

Construction is a social business that requires interaction between many participants, in which unofficial negotiations are always taking place. Sometimes these negotiations take place because the planners were incorrect, but more likely, on a well-planned job, they take place because it’s in the best interest of those negotiating the change. These negotiations often end up rearranging the order of activities. For example, drywall installers might try to get ahead of schedule by requesting to work alongside electricians, installing the drywall while the electrical wire is being pulled. Besides potentially getting into each other’s way, there is an increased likelihood of making a mistake and installing drywall over a spot where the wire hasn’t been pulled yet. Perhaps material costs will come out of the subcontractors’ allowance, but time will be lost and the cost of electricians may increase for delays.

SCOPE CREEP

Scope creep is a phenomenon that occurs during project execution and is often so gradual it goes unnoticed. The likely culprits are new products or features being added and upgraded, or design changes that escalate time and costs without increasing the budget. Sometimes called “value for free,” this cost escalator can only be adequately handled in the very early stages. If a project has had many changes in scope before construction began, and there has been a lot of back and forth amongst participants on the design and critical project aspects, then it could be advantageous to institute daily or weekly budget monitoring in the early stages of the project so you can detect creep very early on.

INCREASES IN MATERIAL COSTS

Even when contracts include language to protect contractors from rapidly rising material costs, this can still become a cost problem. A 9% rise in rebar cost is not recoverable if the contract specifies the cost must rise 10% or more before it’s eligible for reimbursement. That 9% increase is a significant cost for the contractor to bear. The solution might include a thorough review of the quantities of the material used and determining if there are options for reducing that amount. Other options include changing suppliers or submitting alternative materials as a substitute. Beyond making sure the project stays within budget, cost controls are really the measure of how well the project is planned, and in the end, how well it is managed.

CHAPTER 12 • Quality Control in Action91


121212. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Quality Control in ActionQuality Control in ActionQuality Control in Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

92CHAPTER 12 • Quality Control in Action

QUALITY BEGINS AND ENDS WITH PEOPLE

The quality control plan is created early in the project lifecycle and becomes the guide for assuring quality as the project is built. While quality begins and ends with those doing the work, conversely, few things are more detrimental to quality than a lack of time. When rushed, there is a natural tendency to focus on completion. This focus on the endpoint rather than the process compromises quality because details are often overlooked and shortcuts are taken. The cost of rushing becomes painfully clear when activities have to be duplicated to get the quality up to the level of specification. If you don’t have enough bandwidth to do the job correctly the first time, how will you have enough to do it correctly a second time?

Lack of proper training and subpar skillsets also contribute to poor quality. Whenever new and unfamiliar materials or processes are introduced, there will inevitably be a shortage of necessary skills and understanding to perform the task. Often times when a new process is introduced, training is abbreviated or skipped altogether to accelerate progress. This drastically decreases quality control as teams are never properly trained to execute the job to company standards and often work under their own personal assumptions of “quality.” When dealing with these factors affecting quality at the task level, the best answer is to have experienced leaders. Foremen, project managers, and superintendents who know how to lead, inspire, coach, counsel, and effectively discipline will be able to address problems most effectively.


TOTAL QUALITY AS A GOAL

There is something to be said about a total quality approach to construction projects. When using total quality, no defects can occur anywhere in the process. From a permanent perspective, this is an unrealistic goal, but according to project management experts, it helps prevent organizations from ever reaching the point of taking quality for granted. Assuming total quality control is adopted at the beginning of the project, all design considerations should be scrutinized from this perspective. Materials, processes, and equipment must also be analyzed for the desired level of quality and subcontractors and vendors thoroughly vetted.

SHARE THIS eBOOK!


During construction, the effort then focuses on ensuring the quality standard is met. This adds a layer of tests to ensure inputs to the process have zero defects and that the processes themselves are performed accordingly. In the wake of material defects like moldy drywall and counterfeit electrical parts, it’s now more common for those purchasing construction materials to choose their sources carefully and to ask for certifications and samples to confirm the items meet specifications.

Total quality approach from a personnel perspective involves the workers and requires them to monitor their own quality of work, participate in meetings, and suggest improvements. By some accounts, total quality control is very difficult to carry out in construction and may set too high a standard. Others suggest that rather than making the measurement of zero defects the focal point, it is more realistic to see total quality as a commitment to continual improvement.

3

2

1


PHASES OF QUALITY CONTROL

According to the U.S. Army Corps of Engineers, one way to look at the quality process is to view it in three phases.

SHARE THIS eBOOK!

In the PREPARATORY PHASE, those tasked with quality roles:

• Review plans and specifications

• Verify submittals are approved

• Review the testing plan

• Check preliminary work

• Physically examine materials

• Discuss construction methods

• Review safety

In the INITIAL PHASE, those tasked with quality roles: • Establish the quality required

• Resolve conflicts

• Ensure testing is done

• Review safety

And in the FOLLOW-UP PHASE, those tasked with quality roles: • Ensure contract compliance

• Maintain quality

• Ensure testing reports are submitted

• Ensure necessary rework is completed

Project management


In any case, all parties involved are responsible for ensuring quality. Some of these titles include: Quality Control (QC) Manager, QC Specialists, Superintendent, Subcontractor, Foreman and [the owner’s] QC Representative. For continuity, it’s important that substitutions of people are kept to a minimum and adequate records of meetings are kept.

As with most aspects of managing construction projects, it’s the planning phase that’s most important and helps ensure a quality environment is created. Without the necessary plans and processes in place before construction begins, quality is simply an afterthought. Once construction is underway, it’s a matter of following the plan and ensuring the right people are in key positions.

13

97CHAPTER 13 • Controlling the Schedule


131313. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Controlling the ScheduleControlling the ScheduleControlling the Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SHARE THIS eBOOK!

Controlling the schedule requires a combination of planning, skill and luck. This is a multi-dimensional activity that puts you up against a laundry list of things that can go wrong. Essentially, during the construction phase of a project, it is the project manager’s job to find and solve problems, which can sometimes feel like detective work.

It isn’t practical or effective to look for major cost savings once construction is underway unless you’re going to remove a portion of the project. The focus during this stage of managing a construction project should instead be making sure the project is built according to specification. Part of this process includes tracking costs to those budgeted as it provides another indicator of project performance. Additionally, you want to measure how closely the plan is being followed and uncover any deviations. With a clear, in-depth view of the schedule, and a way to track and monitor actual progress, you can see if things are on track or about to derail.

CHAPTER 13 • Controlling the Schedule98


COMMUNICATE AND OBSERVE

The key indicator to watch closely is the critical path and the activities it includes. Ideally, there will be communication and observation systems in place to supply real time feedback on the activities as they are underway. For example, Procore’s project management solution includes a system of notifications that not only remind you of important milestones, but also generate automatic follow-ups inquiring about the completion of activities.

Walking around the project provides tactile and visual information about how work is progressing. It’s one thing to get an email from a subcontractor telling you a portion of the work is 75% complete, but quite another when you visit the location and are able to see, in person, that the project is actually only 50% complete. There are also various inspections by third parties that can help validate the complete picture. It’s very important to rely on more than a single type of input when gauging the progress of the project.

SHARE THIS eBOOK!


Along with clear communications and personal observations, you can utilize the project budget to compare with the work in place and get another view of progress as well as the quality of completion. Ramping up an operation will often consume more of an activity’s budget than originally planned, but once that activity is in motion, the costs often level out. So when using the budget as an indicator, you have to simultaneously keep the big picture of the activity in mind while scrutinizing the work that leads up to it. Keeping a very high level of detail in the cost accounts will also provide a better view into what’s happening.

Over time, you’ll see patterns emerge in the velocity of outgoing expenses. This is particularly true in projects that have many repetitive installations. For example, on a mixed-use high rise, where some floors are residential, there will be repetitive installations of bathrooms and kitchens. As those items are completed on the initial floors, you can see a pattern of expense that can become indicative of future problems.


When you have predictable costs on a portion of the project that begin to stray from the norm, it’s time to look more closely at the activities involved to see if changes have crept into the process. Productivity is affected by many things like the weather or the material availability of unique equipment. It’s largely up to the project manager to discover the reasons for deviations from the schedule and then design solutions. Within large project milestones, there are usually incremental milestones that represent smaller accomplishments. When you combine your own observations with those of other stakeholders, and track the budget of the activity, you will have a well-rounded view of the actual status of the project.


THE HARBINGER OF COMPLEXITY

Even though construction projects run on schedules, linear activities are largely self-organizing and as Robert C. McCue, P.E., consulting engineer with MDC Systems points out, they will “proceed at some pace regardless of the scheduled time allotted.” McCue maintains that construction schedules, with their assumptions of consistent input and output relationships yielding constant completion percentages, are “overly simplistic,” leading to incorrect decisions as complexity increases. His prescription is to be constantly vigilant and watch for the following signs:

• The system used to track completion becomes unreliable

• The critical path has increasing numbers of critical activities

• Updates to the CPM schedule are outdated before being posted

• Critical activities exceed 50% on unfinished work

• Additional labor doesn’t increase completion rates

• Traditional management tools become unreliable

• Schedule influencers feel frustrated with their inability to mitigate events

SHARE THIS eBOOK!


McCue makes a call for creativity when complexity begins taking hold of a project. This can include going through trial and error tests to see what solutions present themselves. Encouraging team members to explore different approaches and test the most likely resolutions expands the available solutions exponentially.

Construction projects are unique in their dynamic nature with disparate organizations that have competitive incentives. Even the most meticulously planned projects create surprises, so watch out for the following culprits that may interrupt your schedule:

• Extraordinary weather events

• Emergency adjustments to the scope

• Catastrophe near or on site

• Manpower, equipment or material shortages caused by unusual events


It’s not possible to plan for these risks so if the owners are still going to continue with the build, the next step is to carefully and quickly plan a recovery strategy. For example, a large concrete-intensive project starting up in the vicinity may negatively affect the local supplies of rebar. Keeping an eye on the long-term view includes watching for changes occurring outside of the project that can subsequently affect your own project. For events that foretell a problem, like missed deadlines not on the critical path and contingencies inadequately planned for, take a step back and reformulate your short-term schedule and test for its effects on the critical activities. Otherwise, look for opportunities to make up for lost time and resources, in order to get the critical path back on schedule.

A large part of controlling the schedule comes down to continually assessing risks and staying alert to changes. Change is the only constant, so adopting an accepting attitude will help keep you and the schedule flexible. With flexibility comes adaptability, a natural and effective response to change.

SHARE THIS eBOOK!

SHARE THIS eBOOK!


CONCLUSION

Managing construction projects can be an incredibly challenging undertaking. Every time a new project starts, it is a wholly new process. Maybe some participants will stay the same, but the territory, scope, materials, processes and equipment will constantly change. Each owner has different goals from the next, and in all, most aspects of one project won’t resemble any others.

There is no substitute for planning. How well things are planned will determine the overall success of the project. While excellent planning won’t guarantee a successful project, it can eliminate one of the major reasons why some construction projects fail, and why others don’t measure up to expectations.

If you’re new to project management, we hope this three-part Project Management Guide taught you new techniques that will serve you well. If you’re experienced, perhaps it served as a refresher, introduced new concepts and perspectives, and increased your understanding of the profession. With your next project on the horizon, we hope you regularly revisit these pages for reminders, guidance, and inspiration.

CONSTRUCTION PROJECT MANAGMENT GUIDE • Part 3 // Project Controls106

WOULD YOU LIKE MORE RESOURCES?




Procore is a cloud-based construction management software application. We strive to make your project management effortless, one task at a time. With Procore’s

easy-to-use and collaborative software, you can manage projects at anytime, from anywhere, with any Internet-connected device.


Construction Blog >

YouTube Channel >


SCHEDULE A DEMO


SHARE THIS eBOOK!

construction project management guide - smartrisk.biz · table of contents chapter 1 -...

Documents