Projects

Construction Field Labor Productivity Improvement Take Away the Excuses

March 22, 2011 By Richard S Troell

Over the years, much has been written about craft worker productivity. The Construction Industry Institute (CII) has done several extensive research projects on productivity. The issue was raised in a formal manner by the old Business Roundtable (BRT) back in the late sixties. They developed a series of publications that addressed the problem of rapidly rising construction costs facing owner companies. These articles were broadly covered by the now familiar banner of “More Construction for the Money”®.

Working in the construction industry for many years has given some great insights into craft worker productivity. I always ask myself the question, “What would I need to have in order to be more productive and have a better perspective about my work, if I were in this same situation?” Every situation is different, though there are many similarities. The truth is, there is not one single solution to every productivity issue that one might encounter in the field. But let’s start with one very straight-forward approach that has proven to yield consistently good results. [Read more…]

Filed Under: Projects Tagged With: BRT, Business Roundtable, CII, Construction Claims, Construction Contract Claims, Construction Industry Institute, Field Labor Disruption, Field Labor Productivity

Owner Furnished (Supplied) / Free Issue Equipment and Materials

March 15, 2011 By George T McLaughlin PMP CCM

Introduction

Owner furnished (supplied) equipment (OFE), also known by other terms such as “free issue” presents unique planning and scheduling challenges. The idea is that another party to the contract procures / orders and supplies equipment, material (even services, such as utilities or scaffolding) to the contractor. The notion is that the contractor receives the equipment, goods or services and then erects, installs or otherwise uses these items.

The motivation for this type of arrangement can be one or more of several seemingly logical concepts. Equipment with long lead times for fabrication and delivery may be ordered in advance of placing a contract for the equipment erection or installation. Another motivation relates to cost savings. Some believe ordering equipment and commodities (bulk materials) can be done by a general contractor or owner (owner, developer, employer) and thereby save a markup by a subcontractor. In these cases, an interface is created between the ordering/procurement entity and the execution (engineering, erection, installation, fabrication, etc.) entity. The creation of this interface becomes the issue. [Read more…]

Filed Under: Projects Tagged With: Construction Disruption, Construction Productivity, Free Issue Equipment, Free Issue Materials, Large and Complex Projects, Owner Furnished Equipment, Owner Supplied Equipment, Project Execution Planning, Project Execution Strategy, Project Management, Project Planning

Managing Risk Of Delay (Part 1)

March 8, 2011 By George T McLaughlin PMP CCM

This post addresses the general topic of time management and the relationship to managing the risk of delay.

Keith Pickavance is a prominent leader, speaker, expert and author in the construction industry. His authoritative reference book, Delay and Disruption in Construction Contracts, is noted in our Reference Center.

Mr. Pickavance is President of CIOB. Speaking in this capacity, he delivered an excellent talk entitled: Managing the risk of delayed completion in the 21^st Century.”

The link to this streaming video is here and is excellent.

The outline of this presentation is as follows: [Read more…]

Filed Under: Projects Tagged With: Construction Contract Claims, Construction Contract Delay, Contract Change, Delayed Completion, Disruption, Impact, Productivity, Variance

Project Management – Single Asset Owners

March 4, 2011 By George T McLaughlin PMP CCM

This post discusses unique project planning and management challenges associated with projects that are owned by single asset owners. Examples include power plants, large commercial facilities and process plants. These assets tend to be project financed using the single asset as collateral. The financing typically relies on revenue generated from operation of the asset. Hence, delays in achieving revenue generating status can be extremely problematic. Our conclusions and recommendations are based on decades of experience with many such projects.

Introduction

Revenue generating facilities (e.g. power plants, chemical process facilities) are sometimes owned by a standalone entity. The design, engineering, procurement, construction, commissioning, startup and turnover of these plants and facilities can be particularly challenging for both owners and contractors. The planning, scheduling and execution of these requires attention to some unique and compelling factors. [Read more…]

Filed Under: Projects Tagged With: Construction Contract Delay, Disruption, Large and Complex Projects, Project Financing, Project Management of Large and Complex Projects, Project Planning, Single Asset Owners

Contract Notice and Recognition (Part 4)

March 3, 2011 By George T McLaughlin PMP CCM

This is the fourth post in a series regarding Construction Contract Notice and Recognition.

This post addresses backcharges. The subject does not have a broad applicability; but is very troublesome to subcontractors and vendors. This discussion is focused on notice.

Simply, backcharges (or backcharge) is a term of art or a term of the trade to describe an assessment of money from one contract party to another. Typically, this is done by a prime or general contractor to a subcontractor, supplier, vendor or other subordinate party. Unfortunately, this is often done unilaterally and without explicit contractual coverage. Further, the timing of these backcharges is not favorable to the recipient and can lead to pressure to engage in deal making or compromises in order to receive final payment. [Read more…]

Filed Under: Projects Tagged With: Claim Recognition, Construction Contract Backcharges, Construction Contract Claims, Construction Contract Crosscharges, Construction Contract Notice, Construction Subcontractors, Contract Change, Disruption, Impact, Productivity, Variance

Contract Notice and Recognition (Part 3)

February 28, 2011 By George T McLaughlin PMP CCM

This is the third post in a series regarding Construction Contract Notice and Recognition.

Initial questions regarding compliance with contract notice provisions can be answered in a straightforward manner. Yes, of course it is best practice to comply with these important provisions. This point is clearly stated in the following comments within LinkedIn Construction Law Group Discussion regarding notice.

Emily Monastiriotis • Cases like Education 4 Ayrshire Limited -v- South Ayrshire Council (which is subject to Scots law) illustrate the importance of issuing contractual notices particularly when such requirements are conditions precedent. As a lawyer my tendency is to think that clients ought to err on the side of caution and issue notices when any issue arises that may trigger any of the provisions of the contract. I accept and recognise that such notices may not be well received by the Employer but I think it is better to protect your rights rather than lose them because of a simple administrative failure to issue a requisite notice.

A Google search of notice of contract claims yielded some comments at HALBERSTADT CURLEY website. The blogger states that there are three key components associated with contract claim notice: [Read more…]

Filed Under: Projects Tagged With: Claim Recognition, Construction Contract Claims, Construction Contract Notice, Contract Change, Delay, Disruption, Impact, Productivity, Scope Change, Variance

Contract Notice and Recognition (Part 2)
LinkedIn Group: Contract Risk Management — Construction Industry Discussion: Methods of Ensuring Compliance

February 23, 2011 By George T McLaughlin PMP CCM

This recent Discussion was initiated by me, George McLaughlin. I posed the following question:

What methods or procedures are most effective to ensure compliance with contract Notice requirements (if any)?

Most contracts contain Notice requirements of various sorts. Notice regarding variations / changed work can be reasonably straightforward. Notice regarding delay (by others) and disruption (by others) can be considerably more challenging. Of course, the challenges include form or method of notice as well as the onset of recognition of the delay or disruption. Another complication is the acceptability of constructive notice under applicable law. Please present some views on this topic. [Read more…]

Filed Under: Projects Tagged With: Construction Contract Claim, Contract Change, Contract Notice, Delay, Disruption, Scope Change, Variance

Contract Notice and Recognition (Part 1)

February 16, 2011 By George T McLaughlin PMP CCM

Most major Engineer Procure Construct [EPC], Lump Sum Turnkey [LSTK] and Construction contracts contain requirements or provisions for Notice. Simplistically, notice is the act of informing another party to the contract that an important event has (has not) occurred. These events tend to be related to negative consequences.

In this discussion, I will use two key references:

Delay and Disruption in Construction Contracts, Keith Pickavance (link)
Construction Delay Claims, Bramble and Callahan (link)

Bramble introduces the subject as follows (focus is on delay): [Read more…]

Filed Under: Claims, Projects Tagged With: Bramble and Callahan, Change, Commencement of Notice Period, Contract Notice, Delay, Disruption, Keith Pickavance, Notice Implementation Approaches, Notice Requirements, Period of Notice, Provisions for Notice, Variance

Project Management and Technology
LinkedIn Group: Contract Risk Management — Construction
Industry Discussion: Technology Advances and Project Management Quality

February 15, 2011 By George T McLaughlin PMP CCM

This recent Discussion was initiated by me, George McLaughlin. I posed the following question:

Have technological advancements in the last 20-50 years materially upgraded the quality of project management?

Over the past four or five decades, there have been many impressive technological advances related to the management of projects. Some advances started (I suppose) with PERT and followed by CPM, mini and micro computers, Primavera, MS Project, Icarus, AutoCAD and so many others. While these tools are highly sophisticated, have they served to upgrade the level of performance in professional project management? Some argue that the tools are more advanced than the abilities of the users. Others see great strides in performance… So, what is your perspective? [Read more…]

Filed Under: Claims, Projects

Project Documentation – Visual including Webcams
LinkedIn Group: Contract Risk Management — Construction Industry
Discussion: Webcams on Projects

February 9, 2011 By George T McLaughlin PMP CCM

Embracing the dynamics of today’s technology, McLaughlin and McLaughlin (M&M) actively participates in select LinkedIn Groups. When one of these groups discusses or addresses a timely, relevant, or vital topic that we feel would be valuable, M&M will offer a blog-discussion with LinkedIn excerpts on that topic. This is not to diminish the LinkedIn group discussion but to further share and stimulate insightful thinking presented in a condensed format.

Although the LinkedIn Contract Risk Management Group is restricted to members, access seems to be easily achieved, and the value of the flow of information by knowledgeable contributors makes membership worthwhile. Commentary is always robust; thus, I recommend reading the complete string of comments within the Discussion at LinkedIn when possible. However, for brevity, I have selected excerpts that are “spot-on” when addressing this topic.

This recent Discussion was initiated by Chris Hawkins. Chris posed the following question: [Read more…]

Filed Under: Claims, Projects Tagged With: linkedin, webcams

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Introduction

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