SCHEDULE VALIDATIONS AND AUDITS – Timing, Methodology and Conclusions – (Part 3 )

WHEN SHOULD VALIDATION AND AUDITS BE DONE?

Validation occurs when the initial or revised baseline schedule is submitted prior to the start of any construction field-site work, with the possible exception of mobilization, site preparation, ordering of long-lead time equipment or materials, permits, excavation, and installation of in-ground site utilities.

Validation is an extensive process and can be time consuming both initially and after each re-submittal of the proposed baseline ‘planned’ construction schedule until a valid baseline schedule is accepted by all significant stakeholders: Owner, Contractor, Subcontractors, Suppliers, Financing entities, and Permitting agencies.

Before a complete Validation process is performed an Appraisal is done to determine if the requirements for Validation are in place. [Read more…]

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

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…]

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

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.

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.  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…]

Labor Productivity and Disruption – Managerial Considerations

This is the seventh posting regarding labor productivity and disruption. The Subject Series can be viewed here.  In large and complex projects, a prime contractor may or may not direct hire the field labor.  Often, the field labor is hired by major subcontractors (contractors hired by prime contractor).  Examples are civil, structural steel, mechanical, piping, electrical and controls.

For the prime contractor [or similarly for Owner/Employer], subcontractor productivity is seemingly not important or relevant.  This is particularly true if the subcontractor in question is on a fixed price or fixed unit price contract.  However, events that are created by Owner/Employer or Contractor that impact the subcontractor’s productivity create potential liabilities.  Further, once the subcontractor discovers the loss, a claim is likely to emerge.

Consequently, positive action is needed.  There is a legitimate need for the Owner/Employer and Contractor to be informed.  Managerial overlay, visibility and attention are components in the overall project management challenge. [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…]

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

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…]

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

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…]

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

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)

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…]