Introduction to Construction Project/Jobsite Management Hal Johnston April 23, 2014 Professor Emeritus Construction Management California Polytechnic State University San Luis Obispo, California, US Visiting Professor Economics and Management Civil Engineering Czech Technical University Prague, Czech Republic
Hal Johnston Short Bio Professional Experience 17 plus years in the construction industry on the risk side Academic Experience 20 p l u s y e a r s as p r o f e s s o r of C o n s t r u c t i o n M a n a g e m e n t at California Polytechnic State University, San Luis Obispo, California, USA Contact information Email: hal5390@aol.com Cell: 805-610-1495 SKYPE: hal5390 2
Construction Project/Jobsite Management What we are going to talk about today: Reasons for a different type of management for project-based firms Attributes of construction projects requiring special management techniques Goals and objectives of construction projects Management techniques that can be used to successfully meet the goals and objectives of construction projects
Introduction to Project Management Management is a discipline Large, broad-based field Project management Management of several projects Separate entities Finite time frame Associated with completion date Primary purpose: to achieve project goals
Attributes of Construction Projects Include: Specific parameters (e.g., budget) Finite durations Located away from company Each project requires separate management Single source of responsibility Separate cost accounting element
Attributes of Construction Projects (cont d.) Single project can have thousands of parts, systems, and equipment Substantial purchases may be required Substantial subcontracting is used Construction companies have numerous projects at the same time Single owner or customer Each site is controlled by the contractor
Goals of Construction Projects Project goals What defines success? Profitable Completed On Time In full compliance to the Quality Required Happy Client and Designer
Objectives of Construction Projects Objectives Definable tasks that support goals Time frame and level of quality Cost control and safety program effectiveness Customer satisfaction Effective management of subcontractors
Management Techniques to Achieve Project Goals and Objectives Management techniques Necessary to control project building In order to achieve objectives Wide variety Takes a team to design and build facilities Managers control all variables
Organization of the Project Delivery System Needs to be cost-effective Personnel varies according to project Project duration, size, and contract type Amount of self-performed work Personnel available and crew size Multiple areas of work and contracts Reporting requirements to the customer Extent of cost control and reporting required Public versus private work and market
Leadership needed for Successful Attributes: Projects Vision of entire project Plans for achieving completed project Insistence of meeting financial goals Understand crews and provide motivation Communication Maintain relationships with upper management Critical decision timing Company loyalty
Problem Solving Skills needs for Successful Projects Considerations: Full impact on subcontractors, suppliers, and contractor Cost impact Time impact Best solution for project conditions Best method of resolving conflicts
Reporting and Record Keeping Provides: Communication between field and home office Communication with client and consultants Systematic and regular analysis of current conditions by field personnel Historical record for project documentation
Planning and Scheduling Enables completion on a finite date Plan: organizes the project Schedule: tool for communicating the plan Flexible Can be modified to changing conditions Initial planning: project management basis Continual planning and scheduling: addresses conditions that arise
Cost Control Containing construction costs Within budget established by cost estimate Involves use of comparison May indicate a need to change methods, techniques, or crew composition Can help achieve additional profits Ensures accurate cost database
FIGURE 1 1 Flow of Cost Information Delmar/Cengage Learning
Quality Management Has become an important part of project management s tasks Quality has several meanings Meeting expected level of material Maintaining the level of workmanship Earning general customer satisfaction Today we often describe Quality as meeting Owner expectations.
Safety Management Proactive safety management program Economic benefits Workers compensation premiums Insurance premiums Tied to company-wide performance record Goal: prevent all jobsite accidents
Contract Compliance Submittals include: Material and permanent equipment submittals Shop drawings Project meetings Change control, documentation, and compensation Progress payments and project closeout
Computerized Record Keeping Helps compile, organize, and analyze project progress information Time, cost, and project data recorded on the jobsite Timely production of quality, usable information Facilitates problem solving and communication during the project
The Project Team The players, their roles, responsibilities, and authority. A quick overview of the major different delivery systems A look at the organizations that play a role in the project.
The Traditional Contract Delivery System
Responsibility Of the Contractual The Owner The Architect The subconsultants The Contractor The subcontractors Parties
The Owner Responsible for paying for the work contracted to the architect and contractor Responsible for providing coordination of the project Provides the site, the architect with the scope (so it can be designed) Provides the contractor with documents that describe the project (so it can be built)
The Architect (the designer) Provides the owner with the design Provides the owner with the construction documents Can be engaged to provide construction administration Provides the interpretation of the contract documents
The Contractor Responsible for providing the labor, material, equipment, and expertise to complete the project Responsible for developing the means and methods of accomplishing the work (sequencing, labor plans, equip. usage) Responsible for coordinating the work - hiring the subcontractor, paying for all labor, mat., and subcontracts
Major parties from the Owner Capital Project Officer Financial Officer Owner s Representative Owner s Inspector Testing Agency
The Owner s Organization
Major parties from the Architect Principal-in-Charge Project Manager Project Architect Contract Administrator Subconsultant Specialty Coordinators Project Coordinator Mechanical Coordinator Electrical Coordinator
The Architect s Organization
Major parties from the Contractor Office-in-Charge Project Manager Superintendent Project Engineer Field Engineer Foremen Craftspeople Subcontractors Foremen Craftspeople
The Contractor s Project Organization
A 2nd Contractor s Project Organization
Other major parties Building Inspector Plumbing Inspector Electrical Inspector Fire Marshall Elevator Inspector Safety Inspector OSHA etc. Testing company Concrete, Welds, etc.
List of Trades Employed by Subcontractors Laborer Carpenter Operating Engineer Teamster Ironworker Cement Mason Bricklayer Roofer Sheet Metal Worker Glazier Plasterer Ceramic Tile Installer Terrazzo Mechanic Elevator Mechanic Plumber Steamfitter Mechanical Insulator Refrigeration Mechanic Lather Taper Floor Covering Installer Painter Millwright Pipe Fitter Sprinkler Fitter Temperature Control Mechanic Electrician
List of Typical Inspections Building Inspector City, County Concrete Footings Concrete Reinforcing Wood Framing Steel Framing Final Compliance Plumbing Inspector City, County Plumbing Rough-In Sewer Installation Water Line Installation Electrical Inspector City, County, State Electrical Rough-In Electrical Finish Fire Marshall City, State Fire Alarm Systems Fire Protection Systems Elevator Inspector City, State Elevators, Conveyance Systems Safety Inspector State, Federal (OSHA) Safety Compliance
Organization of CM Delivery System (Agency CM) Owner Architects Construction Manager Execution Contractors
Design-Build Organization I Owner Design-Build Firm: Designers Constructor Design Consultants Subcontractors
Design-Build Organization II Owner Design-Build Firm: Architect Contractor Subconsultants Subcontractors
Design-Build Organization III Owner Constructor (Design-Build) Architects & Engineers Subcontractors
Design-Build Organization IV Owner Architect Joint Venture Design-Build Contractor Subcontractors
The two key control area: Cost and Time
The contractor must control both the duration of the project and the cost of the project, the major parameters of the project The contractor commits to completing the project in a specific time frame and at a finite cost
Many contractors feel that both time and cost are naturally controlled by the construction process and field personnel Small as well as large construction projects can benefit from time and cost control
A construction schedule and cost control information can help any contractor achieve optimum results during the construction process
Project Duration Control The owner will always need a project completed within a specific time period If there is not enough time to complete the project using normal construction shifts and techniques, the contractor is expected to use multiple shifts or other methods to complete the project by the specified date
Liquidated damages: a daily monetary amount charged to the contractor for compensation of costs incurred by the owner, when the facility cannot be used
The owner s completion date rarely has a direct relationship to the actual amount of time needed to construct the project, it is often based on the owner s need for the facility
Completion of construction in the minimum time will reduce the contractor s jobsite overhead and enable the contractor to pursue other work
The contractor needs to plan the project carefully, for without planning and diligence in maintaining the plan, the construction project can extend for along duration, costing the contractor considerable resources
No two projects are alike: The project plan is the plan of construction conceived by the project superintendent, along with the purchasing restraints already in place (subcontracts and purchase orders) to most efficiently achieve the objectives of the project It is important to remember that the project plan is generated by the personnel who will manage it
Project Plan considerations Activities on the project Duration of the activities Sequencing of the activities The interrelationship of subcontract activities Equipment requirements for the project Utilization of subcontractors Field management personnel Crew size and project staffing of craftspeople Anticipated material delivery dates Weather planning Anticipation of delays Alternative solutions to sequencing
Careful analysis of the entire project is needed to tie activities together to form a plan and subsequent schedule
Scope of Activities Each activity in the construction schedule must be identifiable with the following: 1. Able to be described as a separate function 2. Must have a labor crew, with attributable crew hours for the activity 3. Must have a specific duration attached definable for the work 4. Must be able to be monitored by comparing planned duration with actual duration during the construction process
The appropriate scope of the activity is important when formulating the plan and schedule The size of the project helps determine the scope of the activities
In most construction schedules, activity duration should be no shorter than one day A descriptive list of the items included in each activity is a good organizing tool for checklists to determine that all activities are included in the plan
Sequence of Activities: The plan of the project will determine the sequence of the activity. In any project, several different sequences could be used to accomplish the project, depending upon the strategy of the superintendent, considering the project conditions
Numerous concurrent activities occur on the jobsite If all construction sequences were the finish to start type, the project would be estimated at a much longer duration
Logical sequencing, however, is most important in planning and scheduling The logic or proper sequencing is the key to a successful project
Duration of Activities The duration of a project must be accurately predicted The duration of an activity needs to be relative to the amount of labor hours included in the estimate The duration of the activity should relate to the quantity of work accomplished
Duration of Activities Weather concerns should also be considered in the duration of the activity Consideration of delivery of all items may affect the duration of the activities Subcontractor involvement in the activity may affect the duration Duration in most schedules, is expressed in working days, not calendar days
The Project Schedule: The project schedule is a manifestation of the project plan, a written or graphical depiction The schedule is a communication tool to share the project plan among project participants The majority of scheduling is currently done with scheduling or project management software, which organizes, calculates, levels, and provides numerous views of the schedule
Critical Path is the calculated path for the project that considers the dependencies of predecessors Any change to an activity on the critical path will directly affect the completion date of the project
Updating of the project is necessary on a periodic basis, either weekly, biweekly, or monthly The primary purpose of this update is to determine which activities are behind schedule and what their effect will be on the completion date of the project
The initial schedule should always be maintained as a reference for the project, comparing updated progress to the original plan
The schedule is a communication tool, the schedule updates should be done in a manner that effectively communicates the variance in schedule, if any, and the steps that are necessary to remediate any problems
Methods used to get the project back on schedule Altering the sequence of the activities, bringing some activities up in time, changing the critical path Altering the duration of the activity or activities showing a problem, which can be done by increasing crew size, adding multiple shifts, or increasing productivity for the activity Reevaluating the duration of the successor activities, to see if time can be gained later in the project
The schedule and progress updating of the schedule during the project provides the contractor with a tool to help control the project s duration The schedule itself merely gives an indication of the project s status
Some occasions for using short-term schedules Detailed clarification of a larger item in the construction schedule, which may be used to schedule crews, or coordinate several different crews Schedule of a power shutdown or other utility interruption, which might be done in hours Installation of a piece of equipment, coordinating the crafts involved
Some occasions for using short-term schedules Schedule of the completion of a specific area of the project for early owner occupancy Schedule of the move-in activities of the owner Schedule for remediation of work behind schedule Specific schedule for a trade or section of the work
These short-term schedules often are prepared in the field by project personnel for detailed schedule control Often they are called Three Week Schedules (One week look back, Two weeks forward)
Other short-term schedules often are used to schedule and plan for long lead equipment and other long lead items. These are normally done on a 90 day basis and called 90 day schedules.
Project Cost Control: Comparison of the actual cost with the estimated cost during the project provides an accurate measure of the current success of the project
Cost comparison data during the construction activity provides the contractor with opportunities to adjust the factors involved with the activity
A number of computer software programs are available for cost accounting and cost control
Conscious effort by the project manager, superintendent, field engineers, and foremen can make a cost control system work
Realistic Cost Control Activities: The primary objective in setting up a project cost control system involves the correlation of the cost control activities from the estimate with reportable construction activities The cost control activity should be related to a crew assignment, so reporting labor hours can easily be tracked
An effective cost control system includes: 1. Ensuring that the cost control accounts are of the proper scope 2. Relating the crew assignment directly to the cost control activity 3. Cost account results should be able to be used as historical cost data 4. Field personnel should realize the purpose of cost control and report the costs accurately 5. Comparison of actual and estimated cost should be done immediately, providing data to field management personnel
An effective cost control system includes: 6. A feedback system should be in place to receive information from the crew relating to the cause of variances between estimated and actual costs 7. The crews need to be thanked when they accomplish the task under the estimated cost 8.Crews need to be encouraged when costs are over the estimate. There usually are factors that cause labor to overrun the estimate
Inefficient productivity usually has a reason or reasons for not achieving the target Management should examine the possibilities such as improving its role in activities, obtaining additional funding for activities, such as change orders, and managing subcontractors, with possible backcharges for impacted delay costs Field management is not always aware of the problems or source of problems, because sufficient dialogue does not occur between the crew and management. Communication is the key to detecting problems
Labor Productivity is our biggest risk and is the reason for cost control Labor Productivity: The rate at which tasks are produced, especially the output per unit of labor.
Factors affecting labor productivity: Lack of supervision or poor supervision Lack of coordination of subcontractors with work activities Improper or insufficient material available for tasks Poor jobsite layout Lack of proper tools for work activities Congested work areas
Factors affecting labor productivity Poor housekeeping cont. Accidents and unsafe work conditions on the jobsite Excessive moving of craftspeople from project to project Adverse weather conditions Poor lighting in the work area Inadequate heat or ventilation in the work area
Factors affecting labor productivity cont. Tardiness or excessive absenteeism Uncontrolled starting time, quitting time, coffee breaks and lunch breaks Shortage and location of close parking, changing rooms, rest rooms and drinking water High employee turnover Use of improperly or poorly trained craftspeople Supervisors not making timely decisions
Factors affecting labor productivity cont. Poor attitude among employees Poor use of multiple shifts or overtime Construction mistakes caused by complexity, poor drawings or lack of communication Impact of changes on production work Impact of Changes Poor Weather
Factors affecting labor productivity Material Problems High Labor Turnover cont. Accidents and Unsafe Conditions Working Overtime Projects in Existing Facilities or Congested Areas
Jobsite Labor Organization Salary Employees Superintendent Assistant Superintendent Field Engineers Project Engineers Office Engineers
Hourly Employees Foreman Lead Craftsperson Journeyman Craftspeople Apprentices Helpers
Apprentice: Apprentice is under the supervision of mentor skilled in his or her trade Helper is an unskilled person who has no training and is not enrolled in a training program
Labor Agreements Labor Agreement: Contract between the contractor and the union, requiring certain responsibilities of both parties. A typical labor agreement covers work, conditions and wage rates.
Articles in a labor agreement: Statement of purposes Parties and Managements rights under the labor agreement Rules governing strikes, lockouts and slowdowns Agreements area of jurisdiction Issue of using only subcontractors that are also signatory Definition of pay day, holidays, work week, work day, shifts and when overtime is defined
Articles in a labor agreement cont. Agreement on how grievances and jurisdictional disputes will be settled Employee substance abuse, safety and accident prevention issues Wage rates for different classifications of carpenters Hiring hall procedure, work rules Apprenticeship training and classification Subcontractor Clause
Subcontractor Clause: Prohibits the contractor from subcontracting work to non-union firms for a particular labor classification.
Supervision and Control of Labor Superintendent Visualization and planning skills The ability to organize and motivate people Understanding of technical and mechanical subjects Ability to make decisions Innovative and resourceful
Supervision and Control of Labor Superintendent Ability to adapt to changes Along with leadership, the ability to instruct, teach and train Strong work ethic The capability to work with other team members as an equal partner
Foreman Pushing the Work: Evaluating the workman, making sure that his skills fit the work, and that he aggressively completes the work at hand. Working: Refers to the superintendent who is actually performing work with his tools, typically on smaller jobs.
Labor Records used to Control Costs Time Card Weekly Quantity Weekly Labor Cost Reports
Summary Construction organizations: Rely on project management to manage profit centers Goals of a construction project: To be successful and profitable Variety of techniques used