LABOR OVERRUNS

As the increase of projected Major Capital Projects for 2017-18 emerge with all its implications troubled projects are a likely result.  LABOR OVERRUNS are a typical component in troubled projects.

LABOR OVERRUNS – impact several project baselines. Cost, Schedule and Progress are at risk.

LABOR OVERRUNS – Labor Overruns are a major risk in any project with a significant labor component.

LABOR OVERRUNS – Early detection, correction and management require use of proper KPI’s.

LABOR OVERRUNS – Use of thoughtful KPI’s facilitate early/proactive corrective action.

LABOR OVERRUNS – Labor Shortages in 2017 and beyond will lead to upward pressure in labor rates.

LABOR OVERRUNS – Labor shortages in 2017 and beyond will lead a man-hour overruns (poor productivity).

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

 

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.

PROJECT PROFESSIONALS POSTING RESUMPTION

McLaughlin and McLaughlin [M&M] is pleased to announce that they will resume postings at their blog, Project Professionals.  Since mid-2013, M&M has been heavily involved with several large assignments [Construction claims regarding several power plant projects].  Now that workload permits, new blog postings will be offered.

M&M wishes to remind followers (new and ongoing) that there are many offerings at the Project Professional site.  They are organized by what we call Subject Series.

These Subject Series  are:

M&M will resume with additional posts in the Subject Series Construction Claims and Disputes.  This Subject Series focuses on methodologies, process, reference resources, techniques and other practical advice regarding the preparation, evaluating and managing construction claims and disputes.

We hope that you will find these existing and new posts informative and relevant.

We wish you the best of luck in this New Year.

 

Please note that McLaughlin and McLaughlin [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 dispute resolution and litigation support.  The Resource Center is for the convenience of blog visitors and M&M does not offer this for commercial purposes.  For further information on M&M services, please see www.McLaughlinandMcLaughlin.com.

MANAGING RISK OF DELAY – Managing Contractor Schedules (Part 13)

This McLaughlin & McLaughlin post is the thirteenth (13th) in a series  of discussions regarding various aspects of time management as it relates to the risk of delay.  This post addresses managerial considerations for dealing with schedules prepared by contractors and submitted to owners or their agents (construction managers, managing contractors, advisors, etc.).

Recently, Mr. Chris Carson authored an excellent article titledDealing with Contractors Schedules That Cannot be Approved.  This fine article was published in COST Engineering(September/October 2013).

This article contains excellent advice for project teams regarding schedule management.

Mr. Carson’s article is, in reality two articles in one.  While Mr. Carson’s article presents a methodology for problematic situations (which he calls DSAB), the preamble and initial discussion for this article is highly useful and applicable to project management teams as they address the frontend of project planning and execution.  This post summarizes the sage advice provided by Mr. Carson regarding frontend project management challenges as they relate to scheduling and time management. [Read more…]

CONSTRUCTION CLAIMS and DISPUTES – (Part 3)

Current Project Professionals Posts

McLaughlin & McLaughlins Project Professionals post is the third in a Subject Series.  Construction Claims and Disputes which are (will be) discussions regarding managerial challenges in potential and actual construction claims situations.  In this series, we focus on the managerial aspects of construction claims and disputes management.  This summary discussion addresses the many posts that have been presented in the past and are at the Subject Series tab of Project Professionals.

In the engineering and construction industry, claims and disputes take many forms and focus on many topics.  For simplicity of discussion, we will use the follow the following categories:

  • Scope of Work, Changed Work or Variations
  • Delay and Acceleration, Time-Related
  • Disruption / Productivity (usually labor/labour)
  • Terms and Conditions (and other subjects).

McLaughlin & McLaughlins Project Professionals has posted (or published) greater than 60 posts regarding one or more aspects of Construction Claims and Disputes.

The balance of this post identifies the Subject Series and posts that are at Project Professionals and are relevant to construction claims and disputes. [Read more…]

PROJECT PLANNING – (Part 5)

A Key Planning Resource

Industrial Megaprojects by Edward W. Merrow (Merrow, 2011)

This post is the fifth in a series of discussions regarding challenges in project planning and management situations.  In this series, we focus heavily on program / project planning and management.  This post addresses a major resource that can be highly useful in the planning and initial management of large and complex projects.

This resource is Industrial Megaprojects by Edward W. Merrow.   The subtitle is Concepts, Strategies, and Practices for Success.  This subtitle is particularly appropriate and compelling.

While the title is focused on “megaprojects,” the advice and guidance has value and merit in considering the planning and management of large and complex projects.  Smaller projects may be better guided by previous Project Professionals discussions.  Some of the key discussions are summarized in the previous post, PROJECT PLANNING (Part 4) Summary of Posts.

As presented on the dust cover of this fine book, “Mr. Merrow is the founder and CEO of Independent Project Analysis, Inc. (IPA), the world’s leading consulting firm evaluating billion-dollar megaprojects of national and international oil, chemical, pharmaceutical, and major mineral companies, and benchmarking their cost, schedules, safety, startup, and operational performance.”

While this lofty description can be both impressive and intimidating, the book has a wealth of information regarding project planning and initial execution. [Read more…]

PROJECT PLANNING (Part 4)

Summary of Posts

This summary update provides readers with an overview of prior posts regarding Project Planning and provides a baseline for future posts that will follow on a timely basis.

There are two applicable Subject Series.  One Subject Series, PROJECT MANAGEMENT CHALLENGES  was posted during June through September 2011.  Since that time, blog readership has increased very significantly.

The other Subject Series, PROJECT PLANNING  was started in late 2012.  This Subject Series is ongoing and new posts will occur in the upcoming weeks and months.  Readers are encouraged to subscribe to automatic update notification.

This summary is very brief and simply serves as an index for readers to follow.  Of course, detailed descriptions are contained in the individual posts.

Ideally these Subject Series  provide a starting point to investigate best practice on many planning and execution features of project management. [Read more…]

CONSTRUCTION CLAIMS and DISPUTES – (Part 2)

Construction Claims Management Planning

This post is the second in a Subject Series  Construction Claims and Disputes which are (will be) discussions regarding managerial challenges in potential and actual construction claims situations.  In this series, we focus on the managerial aspects of construction claims and disputes management.  This post addresses the planning, a key managerial requirement in all project work.  First plan it, and then do (execute) the work.  The notion is consistent with the old adage “An ounce of prevention [in this case management] is worth a pound of cure.”  In that regard, litigation on a large and complex project can cost millions USD in expenses to pursue and may have tens of millions USD at issue.

Yes, construction claims and disputes can and should be managed.  This is particularly true of large and complex projects.

Prospective Construction Claims Management refers to the managerial approach and planning for managing the risks (and options, opportunities, etc.) during project execution through project close-out related to claims.

Retrospective Construction Claims Management (development, presentation and defending) will be addressed in another post.

Claims Avoidance There is a myth that construction claims can be avoided.  Experience shows that this is just a myth, since it relies on controlling the activities of others.  These others may be in an adversarial posture or position.  Hence, control cannot be readily achieved. [Read more…]

PROJECT PLANNING – Managerial Challenges (Part 3)

PROJECT PLANNING Managerial Challenges(Part 3)

Project Initiation – Contractor

This post is the third in a series of discussions regarding managerial challenges in project management situations.  In this series, we focus heavily on the managerial aspects of program / project planning and management.  This post addresses the starting point or initiation of the project.  Part 2 discussed Project Initiation in general.  This post [Part 3] addresses considerations that are unique to contractors.

Owners often view contractors as a homogenous group or homogenous within the contractor’s own organization.  This perception is not correct, at least for contractors of any size or diversity.

Why does the same contractor behave differently on one job relative to another?  Why does a contractor bid differently relative to past practices or experiences?  Why is the contractor’s price so high on this bid when it was so low on another bid?  We expected the contractor to be competitive and they are not.  Another scenario, we expected the contractor to not be competitive; but, they have the best proposal and bid.  There are many potential reasons.  The answer may reside in the project initiation process.

[Read more…]

PROJECT PLANNING – Managerial Challenges (Part 2)

Project Initiation

This post is the second in a series of discussions regarding managerial challenges in current project management situations.  In this series, we focus heavily on the managerial aspects of program / project management.  This post addresses the starting point or initiation of the project.  This is a crucial challenge.

In a recent consulting assignment, M&M encountered a highly respected client using a phrase that is something like “Building the right project in the right manner.”  While this is paraphrased, the notion is clear.  But, what could they mean “Building the right project…?”  Why would an organization devote time and investment money to building the wrong project?  The answer typically resides in the Project Initiation process.  Inadequate attention and alignment regarding such items as the project objectives and scope of work [also known as the Project Scope Statement] can lead to a misguided start (and sadly sometimes, finish) of the wrong project.  Project Initiation is the essential foundation.

[Read more…]

PROJECT PLANNING – Managerial Considerations (Part 1)

Introduction

After a long period [since March 2012] of inactivity, McLaughlin and McLaughlin is pleased to resume posting activity in this blog.  Project Professionals is intended to offer advice and tips regarding various aspects of Program and Project Management.  For a statement of blog Objectives and Goals, please follow this link.

During this inactive period, M&M has been performing two time-consuming assignments.  One is program management support work on large Canadian oil sands investment/expansion program.  The second is a construction claim on an international power plant project.

In considering the general topic of project planning, consider the following question.  Why do so many projects experience serious negative issues, if not failure, when project planning has been pursued?  Often the answer is that the plans are defective or ignored.  Alignment, implementation and updating are essential features.  Good quality plans must be developed and implemented.  Often, this is not the case.

[Continued] [Read more…]