AVOID THE “HURRY UPAND DO IT!” SYNDROME

SECTION 1 / General Information

Avoid the “Hurry Up and Do It!” Syndrome 1

According to the Department of Labor, United States employees sit atop the most overworked, stressedout,burnedout, workers list for the entire world.1 The average U.S. worker toils more hours per week2 at theoffice, job site, store, or factory than any other worker in the world. This does not count work that manybring home or the numerous hours needed for “professional development,” which so many employersdemand. Anyone who has ever worked for a construction firm probably feels the hours are doubled for them.

The construction business accounts for 8 percent of the U.S. economy.3 It also employs 6 percent of the U.S.workforce.4 The average white-collar construction firm employee, however, would probably complain thatthere are not enough estimators, schedulers, superintendents, or project managers on staff in their companyto allow everyone an eight-hour workday. The past decade saw profit margins for construction projects thindramatically. Firms now expect one person to do the work of what, in the late 1980s, two or more employeeswould handle, and the U.S. workforce has been told it must, “Do more with less—or else.” Therefore, estima-tors are frequently tempted to gloss over plans and specifications and then prepare estimates for projects oreven start building them without careful consideration of costs. Approaching projects in this manner ensuresfuture mistakes and expensive rework.

AN ESTIMATOR’S VIEW OF PRINT ANDSPECIFICATION READINGHowever, what’s an estimator to do? He is already responsible for multiple projects with bids due in a matterof hours or days. For each project he is expected to familiarize himself with the scope of work, compare thedrawings to the specifications, contact the architect with questions, note ambiguities, request bids from sub-contractors, create takeoffs, establish unit prices, and coordinate all these. Will he be able to cover everythingrequired in the plans and specifications? He’d better hope so, because the only thing worse than bidding toohigh is bidding too low. A low bid could mean that the company wins the job, but then must perform withoutprofit or even at a loss. Quite often, the boss drops another project on the estimator’s desk proclaiming that thecompany just found out about this one. Once again, the bid is due in three working days.

This frantic pace of most construction firms makes it almost impossible for estimators to “take their time”and do a thorough job. However, what could be more important than accurately bidding a project? The moresuccessful firms have adopted a philosophy akin to Ludwig Mies van der Rohe’s “less is more” belief.

For example, your firm should celebrate upon receiving news that it has won a bid and been awarded a con-tract. However, what if your firm bid too low? The main problem with a low bid is that you probably won’trealize you have underbid until you are well into the project. By then, it’s too late.

It has been said that it is better to overestimate your bids and get one out of 15 projects than to under-estimate and win almost all of them. It makes more sense to have one profitable project than 10 on which you either lose money or barely break even. Unfortunately, many construction firm managers do not under-stand the science or the art of estimating. They fail to grasp that, at the fundamental level, an estimate is justthat: an estimate. It is an educated, intelligent guess about what something will cost to construct. It will neverbe 100 percent accurate, but the trick is to arrive at a figure that is within a few percentage points of the actual

construction cost. To be accurate and create a successful estimate you must understand the language of printand specifications.

Consider the Negatives of Overpricing Your Bid• Don’t get as many projects, increased disappointment

• Lose revenue and cash flow (however, in the long run this would be negative)

• Acquire negative reputation as a “pricey” firm

Consider the Negatives of Underpricing Your Bid• Operating at a loss; profitless projects

• Lost opportunities as funds are spent supporting “loser” projects rather than productive activities (e.g.,more bidding, advertising, or even managing profitable projects)

• Increased number of contract awards (as you consistently bid low) only increases your indirect costsrelated to management and support staff—all for “loser” projects

• Ultimately leads to bankruptcy

Clearly, authoring an estimate by rushing through a set of plans and specifications could have dire conse-quences for a construction firm and its employees. Having a thorough grasp of what it will take to build a struc-ture will be the difference between a bid that is too low or too high, and an accurate proposal.

A PROJECT MANAGER’S VIEW OF PRINTAND SPECIFICATION READINGThe project manager often finds himself in a similar situation. The project manager may already be over-loaded with multiple multimillion dollar projects—negotiating subcontracts, awarding them, runningprogress meetings, staying on top of subcontractors, firing subcontractors, hiring new subcontractors,responding to owner/architect correspondence, writing project reports, running progress meetings, balancingprogress cost versus progress time, negotiating change orders, and handling submittals. The list seems end-less. Then, the company wins another bid, but decides not to hire another project manager because it is tooexpensive and the profit margins will not allow it. The company hands the new project to the already over-worked project manager.

Considering all of this, it is easy to see why many whose job demands an intimate knowledge of plans andspecifications often skim the requirements and then hope for the best. The project manager must be readyto answer basic scope-of-work questions at a moment’s notice. When awarding subcontracts he must ensurethat all required work according to the project documents must be reflected in the subcontract agreement.

• Does the concrete subcontractor acknowledge that he is not only responsible for the foundation, but alsothe sidewalks and pan stairs?

• Has the carpentry subcontractor included the rough-framing for the metal lockers in its bid, even thoughthe drawings do not show this portion of work and the specifications call for it?

• Does the electrical subcontractor realize that, in addition to the power and lighting requirements for thefinished structure, he must also provide temporary power to the site for a trailer and trade use?

• Does the carpet supply and installation subcontractor know that Amendment No. 12 changed the requiredfloor covering manufacturer noted in the drawings?

SECTION 1 / General Information

Avoid the “Hurry Up and Do It!” Syndrome 2

All of these questions reflect real-life situations that a project manager must face. However, without a thor-ough knowledge of the plans and specifications, there are many risks and numerous mistakes can be made.These are often referred to as project “land mines.” Just like the estimator, a project manager cannot afford tobumble a project by being unfamiliar with its scope. Failure to catch any of these issues would only lead toincreased subcontractor fees and costly rework.

SPOTTING AND AVOIDING “LAND MINES”You must remember that good print and specification reading applies equally to those working for general con-tractors or subcontractors. A subcontractor’s personnel should never assume that their field of concern may belimited to one part of a building, a few drawings, or one particular specification section. In fact, the modernAmerican Institute of Architects (AIA) subcontract agreements often require a subcontractor to be responsible foreverything in a set of plans. It would not be uncommon for an electrical subcontractor to sign an agreement witha scope of work covering “All plans and specifications relating to the subject project as amended.” Does this meanthat the electrical subcontractor would be responsible for roofing? By the letter of the contract, yes, it would. Ina practical sense, however, this would protect the general public from any oversights on its subcontractor’s part.

Consider the previously noted question regarding the electrical subcontractor providing temporary power.A general contractor’s requirement to establish and maintain electrical power, apart from the owner’s to run thejob site, would not be found in Division 16000 of the specification (the primary location of the electrician’swork) or on the electrical drawings. This requirement would exist only in the general or supplemental condi-tions to the contract. If the electrical subcontractor’s personnel do not notice this requirement, the subcontrac-tor may have to provide labor and material not calculated in its bid.

Apart from this specific example, any responsible party must be sure to review all drawings and specifica-tions. Too often workers, both blue- and white-collar, review drawings but fail to check the specifications tosee if it provides additional or even contrary direction.

The construction prints may call for a specific brand of urinals. However, the specifications may list anothermanufacturer or even require the reuse of existing urinals. According to AIA agreements, the specifications willtrump the drawings. The question should be, “What does the client really want?” If the client wants to reuseexisting fixtures, but these were tossed out during demolition, then the builder must pay for new productsunnecessarily—a costly mistake.

Any seasoned construction professional could give you dozens of such examples where mistakes cost thecompany time and/or money. All such incidents would have one thing in common: they all could have beenavoided with proper review of the construction documents.

GENERAL TIPS• When first considering a project, set aside 30 minutes or so to “absorb” the requirements. Carefully view

the prints, one at a time, and get a general idea of what the architect is communicating. Immediately writedown any questions that pop into your head.

• Create a list of tasks for each room. Write down every room number and list in any order every item ofwork needed to entirely complete it.

• Be on the alert that all of a subcontractor’s work may not appear on the expected drawings. For example:

1. Concrete for the foundation will appear on the foundation prints, but not the concrete necessary forthe pan stairs. This item would be found in the architectural drawings.

2. The plumbing prints may show blocking necessary for various fixtures. However, the carpenter wouldbe responsible for this work, even though it’s not shown on the architectural drawings.

• Highlight any work you question and determine the responsible subcontractor. For example:

1. Will the glaziers or the finish carpenters complete a mirror installation? Will the drywall installers orpainters do the drywall sanding?

2. Will the primary electrical subcontractor or a telecommunications subcontractor install low-voltagewiring—phone line, digital subscriber line (DSL), and speakers?

SECTION 1 / General Information

Avoid the “Hurry Up and Do It!” Syndrome 3

• Mark all associated tasks necessary for one part of the work that may not be obviously related. Then, ensurethat you cover these issues with all appropriate subcontractors. For example:

1. Will the excavator provide trenching for storm and waste sewer piping, or will the plumbing subcontractor?

2. Will your primary carpentry subcontractor frame the roof, or does the roofer plan to do that with itsown work forces?

3. Does the carpet installer plan on providing the vinyl base, or does it assume your finish carpenter will han-dle this?

Most important of all, be sure to review the specifications along with the prints. Once you have finishedreviewing specific drawings (i.e., electrical, mechanical, civil, structural, and architectural), take some time toread the related specification sections.

Following these rules for proper print and specification reading will help you avoid costly mistakes.

End Notes

1. Lawrence Jeff Johnson, “Key Indicators of the Labor Market 2001–2002,” United Nations InternationalLabor Organization (August 2001).

2. Ibid.3. American Institute of Architects at www.aiacccc.org/april2004-AIACCCC_NEWSLETTER.pdf4. The Associated General Contractors of America at

www.agc.org/content/public/PDF/Press_Releases/2003/12-05-03.doc

SECTION 1 / General Information

Avoid the “Hurry Up and Do It!” Syndrome 4