Construction Contract Planning and Scheduling

WORKER PRODUCTIVITY – Watch How the People Work

June 7, 2011 By Richard S Troell

This is the eight posting regarding labor productivity and disruption. This contribution provides some practical suggestions for the manager in the field. The Subject Series can be viewed here.

Isn’t it always the obvious that gets us in trouble? It doesn’t seem to make much difference what area of life you talk about, the aspects that are obvious are most often those that we assume will take care of themselves and we skip over as we develop our plans. Considering the area of worker productivity, everyone knows how the work gets done. Right? Well, it is quite obvious. You just pick up the material and put it in place. After all, how can there be anything different about doing the work? Get the material to the job site, hire craft workers, provide drawings and the project will miraculously get built.

When thinking about various construction sites, even in the US, several differences in the manner in which the exact same work is accomplished in various locations are revealed. In order to properly plan and organize construction activities, the way people work in the specific location under consideration must be understood and incorporated. For example, is it better for productivity for each pipefitter welder to have an assigned stand-alone welding machine? Or possibly, the welder should use a welding machine located in an eight-pack of welders. That question could be strictly a planning matter, or it could be related to the site location and area practice. If one approach is better than the other for the project, area practice may need to be addressed and modified in some way for improved productivity to be realized. [Read more…]

Filed Under: Claims, Featured, General, Productivity, Projects Tagged With: Construction Contract Claims, Construction Contract Planning and Scheduling, Construction Field Labor Productivity, Disruption, Field Labor Productivity, Productivity Loss, Project Execution Plan, Project Execution Planning

MANAGING RISK OF DELAY – Earned Value and Schedule Performance Indicators (Part 7)

May 22, 2011 By George T McLaughlin PMP CCM

This post is the seventh in a series of discussions regarding various aspects of time management as it relates to the risk of delay. More specifically, we have titled the series MANAGING RISK OF DELAY [Subject Series], since we focus heavily on the managerial aspects of program / project management. This post addresses some managerial tools relative to the integrated nature of time management using critical path and earned value management.

The challenge associated with managing all (critical and non-critical path) work is common to virtually all projects. This challenge is true for most project management situations. It is intensified in the case of larger and more complex projects. Examples include Lump Sum Turn Key (LSTK), Engineer Procure Construct (EPC) and other similarly executed projects. In addition to the normal issues associated with bulk progress, actions or inactions by the owner can add considerable complexity to this challenge. Over the past seven years, M&M has program/project managed five projects exceeding $100 million (USD) in investment value (total installed cost). Thus, practical/practioner experience is engendered in this discussion/post. [Read more…]

Filed Under: Claims, Featured, General, Projects Tagged With: Construction Claims, Construction Contract Claims, Construction Contract Delay, Construction Contract Planning and Scheduling, Delay, Earned Value Management, Managing risk of delay, Productivity, Productivity Management, Project Execution Plan, Project Execution Planning, Risk of Delay, Time Management, Time Management Strategy

SCHEDULE VALIDATIONS AND AUDITS – Validation and Audit (Part 2)

May 19, 2011 By Earl Glenwright

WHAT IS SCHEDULE VALIDATION?

Schedule Validation is a process by means of which Owner and Contractor resort to the expertise of a third party to validate the schedule of a certain project in all its features and components.

The Validation is thus an external evaluation to ensure that a foremost contract instrument — the schedule — is correct in scope and assumptions, as well as free from all sorts of pitfalls and booby traps. The validated schedule should represent the model of how the Contractor intends to carry out the work plan’s activities, and how the Owner is supposed to get the project delivered.

It is routine to find investors resorting to second and third evaluations, e.g. due-diligence appraisals by mortgage investors, to gain a level of confidence in the outcome and the return on their investment. This typical validation process, however, is not a common practice in the construction area, but Owners and Contractors can have solid benefits by adopting scheduling validation procedures and periodic audits. [Read more…]

Filed Under: Featured, General, Projects Tagged With: Audit, Construction Contract Planning and Scheduling, construction schedule, Time Management Strategy, Validation

SCHEDULE VALIDATIONS AND AUDITS – Need and Benefit (Part 1)

May 13, 2011 By Earl Glenwright

ABSTRACT

Construction projects represent investments at risk for Owners and Contractors, who invest massive amounts of money and resources.

Although some investors resort to evaluations (e.g., appraisals by mortgage investors), to gain a level of confidence in the outcome, validation processes are not a common practice in construction.

There are many advantages in engaging Owners and Contractors in performing a realistic, rational, and feasible independent Validation of the work plan and planned schedule, as well as periodic Audits of the performance achieved.

Planning and scheduling practices have become more complex as they have matured and can now produce a greater degree of management and control. However they are also vulnerable to incorrect procedures, illogical logic, abuse, misuse, and outright manipulation.

Schedule Validation and Audit can be used to minimize the impact of conflicts by detecting issues and anticipating problems. Reasons for implementing Schedule Validation and Audits, benefits, methodology, deliverables, and steps towards a standard practice and procedure are presented herein. [Read more…]

Filed Under: Featured, General, Projects Tagged With: Audit, Construction, Construction Claims, Construction Contract Planning and Scheduling, Schedule, Validation

MANAGING RISK OF DELAY – Critical Path and Earned Value Management (Part 6)

May 6, 2011 By George T McLaughlin PMP CCM

This post is the sixth in a series of discussions regarding various aspects of time management as it relates to the risk of delay. More specifically, we have titled the series MANAGING RISK OF DELAY, since we focus heavily on the managerial aspects of program / project management. This post addresses some ideas regarding the integrated nature of time management using critical path and earned value management.

Filed Under: Featured, General, Projects Tagged With: Construction Contract Claims, Construction Contract Delay, Construction Contract Planning and Scheduling, Delay, Earned Value Management, Productivity, Productivity Management, Project Execution Plan, Project Execution Planning, Time Management, Time Management Strategy

PROGRESS REPORT – TAKING STOCK

April 27, 2011 By George T McLaughlin PMP CCM

This post is a progress or status report as McLaughlin and McLaughlin (M&M) assesses the status and progress of this Project Professionals blog.

Project Professionals commenced operations in late January 2011. The initial posts were on January 24, 2011. The blog and blogging were new to M&M and there was an expected learning curve. The rate of learning was substantially improved by advice and assistance from several key advisors. We wish to express our sincere thanks to all for the help.

The first full month of blogging was February 2011. As April comes to a close, we find the visitor rate (sometimes referred to as the analytics) to be very encouraging. The analytics for April reveal that visitors and page views have more than doubled since February. Visits have come from over 40 countries. As April draws to a close, we see the visitor activity continuing to increase. [Read more…]

Filed Under: Featured, General, Projects Tagged With: Claim Recognition, Construction Claims, Construction Contract Claims, Construction Contract Delay, Construction Contract Planning and Scheduling, Construction Field Labor Productivity, Delay, Earned Value Management, Project Execution Plan, Project Execution Planning, Project Professionals, Time Management, Time Management Strategy

Managing Risk Of Delay – Earned Value Management (Part 5)

April 16, 2011 By George T McLaughlin PMP CCM

This post is the fifth in a series of discussions regarding various aspects of time management. More specifically, we have titled the series MANAGING RISK OF DELAY, since we focus heavily on the managerial aspects of program / project management. This post addresses some ideas regarding preparation and maintenance of time management related to overall bulk progress. Some might refer to this as Earned Value Management.

The challenge associated with managing all (critical and non-critical path) work is common to virtually all Lump Sum Turn Key (LSTK), Engineer Procure Construct (EPC) and other similarly executed projects. In addition to the normal issues associated with bulk progress, actions or inactions by the owner can add considerable complexity to this challenge. Owner/Employer delays can be masked among the myriad of activities that are the responsibility of other (than the Owner/Employer) stakeholders. Even when detected or disclosed, these variances to plan are often dismissed as simply consuming available float. Hence, the Owner/Employer (or other stakeholder) may rationalize these variations as having no impact. Of course, the reality is that these sorts of departures may (or may not) add risk or disruption to the project execution. Further, they may delay forecasted completion. The managerial challenge becomes detection, assessment and quantification (should it be appropriate to compensate the contractor for the impacts). [Read more…]

Filed Under: Projects Tagged With: AACE International, Accepted Programme, As-Planned Schedule, Change Order Impact, Change Orders, Changed Work, Construction Contract Delay, Construction Contract Notice, Construction Contract Planning and Scheduling, Construction Disputes, Contract Change, Delay, Disruption, Field Labor Productivity, Impact, Impact Factors, Large and Complex Projects, Productivity, Project Execution Plan, Project Execution Planning, Time Management, Time Management Strategy

Managing Risk Of Delay – Schedule Preparation and Maintenance (Part 4)

April 11, 2011 By George T McLaughlin PMP CCM

This post is the fourth in a series of discussions regarding various aspects of time management. More specifically, we have titled the series MANAGING RISK OF DELAY, since we focus heavily on the managerial aspects of program / project management. This post addresses some ideas regarding preparation and maintenance of the time management baseline. Some might refer to this baseline and As-Planned Schedule or Approved Programme.

When the subject of time management in larger and more complex projects is discussed, a common observation is that the industry lacks adequate structure and standards. The notion can be expressed as frustration with the lack of some grand rules or laws that somehow reduce managerial challenges to simple procedures for widespread adherence.

Perhaps I will queue up the subject with a LinkedIn discussion skillfully initiated by L.H. Chin. Mr. Chin is the source of frequent thoughtful discussions regarding contract-related risks and challenges in planning and managing large and complex projects. Mr. Chin poses this challenge [Contract Risks Management Group – Construction Industry] [Read more…]

Filed Under: Projects Tagged With: Accepted Programme, As-Planned Schedule, Construction Contract Claims, Construction Contract Planning and Scheduling, Delay, Project Execution Plan, Project Execution Planning, Schedule Specification, Time Management, Time Management Strategy

Managing Risk Of Delay – As-Planned Schedule / Accepted Programme (Part 3)

April 5, 2011 By George T McLaughlin PMP CCM

This post is the third in a series of discussions regarding various aspects of time management. More specifically, we have titled the series MANAGING RISK OF DELAY, since we focus heavily on the managerial aspects of program / project management. This post addresses some ideas regarding the time management baseline.

Introduction

A Critical Path Management (CPM) plan and schedule (programme) is one of the most fundamental managerial tools used in professional project management. It reflects (hopefully) the intention of the lead or prime contractor regarding project execution. Further, it reflects (again, hopefully) the intentions of all key stakeholders, including the owner (owner, developer, employer).

Ideally, this meeting of the managerial minds can be achieved and documented through a schedule approval process. Again ideally, the detailed schedule would be developed in a timely fashion and submitted to the owner. Once revisions and improvements have been achieved, the owner would approve this tool. Once approved, this baseline schedule would form the as-planned schedule (or accepted programme, as termed in United Kingdom). [Read more…]

Managing Risk Of Delay – Time-Management Strategy (Part 2)

March 28, 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. More specifically, this post addresses time management strategy issues.

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 Resource Center.

Mr. Pickavance is President of The Chartered Institute of Building (CIOB). As a member of Time-Management Working Group, Mr. Pickavance and the group authored and have published Guide to Good Practice in the Management of Time in Complex Projects. This publication is noted in our Resource Center.

This work (hereinafter called “The Guide”) addresses, among other aspects, time-management strategy as viewed by CIOB. The Guide is an important contribution to many time-related topics including managing risk of delay.

The topics addressed under the heading of Strategy are: [Read more…]

Filed Under: Projects Tagged With: Construction Contract Claims, Construction Contract Planning and Scheduling, Delay, Project Execution Plan, Project Execution Planning, Risk Register, Time Management, Time Management Strategy

Introduction

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