Project Management Guide

Transcription

CONSTRUCTION
Project Management
Guide
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PART 1 // PLANNING
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. . . . . . BROUGHT TO YOU BY . . . . . .
CONSTRUCTION PROJECT MANAGMENT GUIDE • Part 1 // Planning
TABLE OF CONTENTS
CHAPTER 1 - UNDERSTANDING AN ESTIMATE’S INFLUENCE
ON PROJECT PLANNING SUCCESS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Digging into the Estimate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Where to Look for Potential Problems . . . . . . . . . . . . . . . . . . . . . . . . . .
An Estimate’s Influence on the Project Structure . . . . . . . . . . . . . . . . . .
Pitfalls of Reassigned Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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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 . . . . . . . . . . . . . . .
What to Manage? . . . . . . . . . . . . . . . . . . . . . . . . . . .
Potential Problems with Management Systems . . . . . . .
Exploring the Cloud . . . . . . . . . . . . . . . . . . . . . . . .
Ensure Accountability . . . . . . . . . . . . . . . . . . . . . .
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More Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
About Procore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
CHAPTER 1 • Understanding the Estimate’s Influence on Project Planning Success
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CHAPTER
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Understanding an Estimate’s Influence
on Project Planning Success
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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.
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.
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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.
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WHERE TO LOOK FOR
POTENTIAL PROBLEMS:
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”.
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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.
PERMITS
DEMOLITION
LANDSCAPING
MATERIALS
LABOR
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.
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CHAPTER 2 • Assessing Risk
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CHAPTER
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Assessing Risk
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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.
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CATEGORIZE AND DOMINATE
Don’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.
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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.
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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.
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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.
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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.
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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.
Identify new risks as they arise, and solve them immediately, or plan
to manage them for as long as they are active risks.
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.
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CHAPTER 3 • Plan for Quality
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Plan for Quality
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COMMUNICATION
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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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CHAPTER 4 • How to Successfully Manage Information
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How to Successfully Manage Information
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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.
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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.
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WHAT TO MANAGE?
Once a project actively begins construction, the following types of information should
be managed within one database:
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Drawings
RFIs
Schedules
Budgeting
Punch Lists
Daily Log
Submittals and Transmittals
Directories
Photos
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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.
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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.
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EXPLORING THE CLOUD
A popular alternative to using in-house systems for project management is a cloudbased 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
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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.
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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.
DRAWING
MANAGEMENT
ACCOUNTING
SCHEDULING
RFIs
CONSTRUCTION
Project Management
Guide
...........................................
PART 2 // SCHEDULING
...........................................
. . . . . . BROUGHT TO YOU BY . . . . . . .
CONSTRUCTION PROJECT MANAGMENT GUIDE • Part 2 // Scheduling
TABLE OF CONTENTS
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Paying Particular Attention to Labor . . . . . . . . . . . . . . . . . . . . . . . . .
Finding More Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gaining Deeper Insights Into Requirements . . . . . . . . . . . . . . . . . .
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CHAPTER 9 - MANAGING UNREALISTIC EXPECTATIONS . . . . . . 68
Unrealistic Dates with Valid Reasons . .
Becoming the Solution . . . . . . . . . . . .
Unrealistic Dates With Invalid Reasons
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CONSTRUCTION PROJECT MANAGMENT GUIDE • Part 2 // Scheduling
TABLE OF CONTENTS
CHAPTER 10 - ANALYZING THE SCHEDULE . . . . . . . . . . . . . . . . . 75
DCMA Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Other Analysis Helpers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
About Procore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
CHAPTER 5 • Communicating the Schedule
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Communicating the Schedule
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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.
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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
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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.
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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
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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.
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39
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.
40
41
CHAPTER 6 • A Resource View of Scheduling
6
CHAPTER
....................................................
A Resource View of Scheduling
....................................................
42
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.
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43
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.
44
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.
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45
CPM OPTIONS
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.
46
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.
47
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.
48
In the paper, “Integrated Production
Scheduler for Construction LookAhead 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.
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49
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.
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CHAPTER 7 • The Evolving Construction Environment
7
CHAPTER
...................................................................
The Evolving Construction Environment
...................................................................
50
51
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.
52
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.
53
CPM is also being challenged on
the vertical construction front by
scheduling techniques that enhance
building information modeling and lean
construction, with RSM and locationbased 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.
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54
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.
55
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:
01
02
03
04
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
Once 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.
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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
56
57
According to Roeser, the kinds of additions thrown into a CPM schedule that can
cause it to divert from its intended purpose include:
01
Too much data
02
Incorporating change management and using the
CPM as a claims and payment tool
03
Not incorporating changes in a timely and
accurate manner
04
General contractors and construction managers
not communicating the plan
05
Updating the CPM incorrectly
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.
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58
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.
59
CHAPTER 8 • Addressing Schedule Challenges
8
CHAPTER
.....................................................
Addressing Schedule Challenges
.....................................................
60
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 finetuned. 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.
61
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.
62
THE MAGIC OF OVERLAPPING TASKS
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.
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63
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.
64
PAYING PARTICULAR ATTENTION TO LABOR
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
• 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
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65
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.
66
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.
67
GAINING DEEPER INSIGHTS
INTO 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.
CHAPTER 9 • Managing Unrealistic Expectations
9
CHAPTER
..........................................................
Managing Unrealistic Expectations
..........................................................
68
69
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.
70
UNREALISTIC DATES WITH VALID REASONS
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
71
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:
01
02
03
04
05
Scope changes that eliminate or shorten portions
of the project
Different methods such as using prefabricated
components
Increasing resources
Specifying receipt of certain information by a
certain date
Changing particular quality specifications
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
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72
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.
73
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.
74
This situation is often more difficult than
Regardless of the project, it is the level of
tasks on the timeline because it’s easier
trust management in estimators, planners
to view scheduling as a non-contributing
and project managers that influences
factor to project completion. But in the
how their take on unrealistic expectations
final analysis, inadequate timing always
and unrealistic schedules is regarded.
leads to a poorly planned project that
When the trust isn’t there, the project will
does not meet expectations.
undoubtedly fail on many levels.
75
CHAPTER 10 • Analyzing the Schedule
10
CHAPTER
.......................................
Analyzing the Schedule
.......................................
76
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:
01
02
03
04
05
Tasks, resources and assignments that don’t flow
logically, or that need special considerations
Costs that exceed activity or project budgets
Over allocation of resources
Achieving a better fit of allocated resources to
tasks
Adjusting task relationships
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77
The best way to make these adjustments
your process clearly. Be consistent from
manually is to utilize project
one project to the next as it will help
management software. For example,
define your review process and work
Microsoft Project includes a number
style and allow others to follow along.
of ways to adjust what is displayed
There are many different approaches to
and how it is displayed so you can see
analyzing the schedule and you should
problem areas, share information and
pick one that matches not only your
improve the schedule. By selecting
work style, but the types of projects
the appropriate views, you can locate
you work on. For example, the Defense
problems within the schedule that you
Contract Management Agency 14 Point
wouldn’t necessarily see otherwise.
Assessment is required for government
However you plan to do your schedule
projects and provides a step-by-step
review, put it in writing and describe
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.
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78
79
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-tostart, finish-to-finish and start-tofinish 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.
80
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.
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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.
81
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.
15
82
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.
CONSTRUCTION
Project
Management
Guide
.................
PART 3
.................
PROJECT
CONTROLS
. . . . . . BROUGHT TO YOU BY . . . . . . .
CONSTRUCTION PROJECT MANAGMENT GUIDE • Part 3 // Project Controls
TABLE OF CONTENTS
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
CHAPTER 11 • Controlling Project Costs
11
CHAPTER
..........................................
Controlling Project Costs
..........................................
84
85
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
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
86
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.
87
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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.
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.
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88
89
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.
90
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.
91
CHAPTER 12 • Quality Control in Action
12
CHAPTER
.........................................
Quality Control in Action
.........................................
92
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.
93
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.
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.
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95
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.
1
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
2
In the INITIAL PHASE, those tasked with quality roles:
3
And in the FOLLOW-UP PHASE, those tasked with quality roles:
•Establish the quality required
•Resolve conflicts
•Ensure testing is done
•Review safety
•Ensure contract compliance
•Maintain quality
•Ensure testing reports are submitted
•Ensure necessary rework is completed
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96
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.
Project management
97
CHAPTER 13 • Controlling the Schedule
13
13
CHAPTER
.........................................
Controlling the Schedule
.........................................
98
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.
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99
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.
100
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.
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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.
101
102
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
103
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
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104
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.
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105
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.
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CONSTRUCTION PROJECT MANAGMENT GUIDE • Part 3 // Project Controls
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PRODUCED BY Procore Technologies, Inc.
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.
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If you have any questions, please give us a call at 1.866.477.6267
or email us: [email protected] | [email protected]
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866.477.6267 www.procore.com

Project Management Guide

Transcription

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