CAPITAL PROJECTS COST CONTROL

 

In light of the 2017-2018 Construction Forecasts, Capital Projects Cost Control is paramount and one to take a more acute focus.

In Project Execution, Field Labor Shortages Represent The Highest Risk To Achievement Of Time & Cost Objectives Large And Complex Projects.

Major Shortages in Construction Field Labor Will Influence (Negatively) US Construction Costs.

In Execution (After Stage Gate Three), A Major Risk to Project Cost Management Resides in Labor Cost (overruns),

The Highest Risk to Achieving Project Cost Management Occurs In Execution – After Stage Gate Three/Full Funding.

Driven By A Long History of Cost and Schedule Overruns, Managerial Thinking Now Prioritizes Cost Certainty.

On Complex Capital Projects, Cost Certainty Has Become a Compelling Objective.

 

McLaughlin & McLaughlin has assisted numerous  Major Capital Projects successfully over the years by providing cost effective business solutions and recovery plans.

What makes McLaughlin & McLaughlin unique from the others is that we  not only perform project management services but dispute resolution as practitioners.

 

It is important to note that McLaughlin and McLaughlin Project and Dispute Consulting LLC [M&M] is not a law firm and is not intending to provide legal advice.  M&M is a consulting firm providing (among other services) non-legal expertise in construction claims, dispute resolution and litigation support.   For further information on M&M services, please see www.McLaughlinandMcLaughlin.com.

 

PRODUCTIVITY SERIES REVIEW

Productivity has become a hot topic and has given rise to much discussion and debate in the project management world.  Labor productivity can be a competitive advantage or a managerial disaster.  Therefore, we believe that there is high potential benefit in a review of McLaughlin & McLaughlin’s Productivity Series.  Below, we have the titles and links to each post followed by a brief summary of the content.  We intend to augment these posts with additional writings on the subject.

[Read more…]

WORKER PRODUCTIVITY – Watch How the People Work

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…]

PROGRESS REPORT – TAKING STOCK

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…]

Construction Field Labor Productivity Improvement – Plan the Work Well

This is the sixth post regarding productivity in engineering and construction projects.  To review an index and links to the entire series, please visit Subject Series  page in this blog.  This post discusses planning the work and the related impact on construction field labor productivity.

Any discussion of construction field labor (worker) productivity must, of necessity, eventually involve the idea of planning the work.  Virtually every major project employs the expertise of several planners and schedulers to work the Primavera® scheduling program or some other comparable software.  Great effort is placed on getting just the right schedule assembled and in place – with the right number of activities and leveled manpower, etc.  However, all too often the schedule has been constructed in a near vacuum with little or no input or review from those who have to make it work in the field. [Read more…]