Construction Project Management

A Practical Guide for Building and Electrical Contractors

Eddy Rojas

• Publisher: J. Ross Publishing
• Year: 2009
• ISBN:
  9781604276701
• Edition: 1
• Topic: Technology & Engineering
• Subtopic: Project Management in Engineering
• Index: Technology & Engineering

Construction Project Managemen t offers some of the best project management studies commissioned by ELECTRI International: The Foundation for Electrical Construction that were selected, coordinated, and monitored by some of the most progressive contractors and performed by outstanding scholars from top U.S. universities. Topics include pre-construction planning, early warning signs of project distress, impact of change orders, project sequencing, ideal jobsite inventory levels, tool and material control systems, recommended safety practices, partnering, total quality management, quality assurance, performance evaluations, and contract risk management. All specialty and general contractors will find value in this practical book. The concepts presented will improve your understanding of the main issues affecting construction project management and will provide you with tools and strategies to enhance your company's productivity and profitability.WAV offers downloadable files consisting of:

• Checklists for each one of the 10 categories that make up the model pre-construction planning process, including standard procedures for change orders, RFIs, submittals, transmittals, billing, progress updates, a sample requirements and expectations letter and a sample letter of intent.
• A Spanish translation of Chapter 7: Recommended Safety Practices.
• A methodology for assessing contractors' TQM program progress based on the Malcolm Baldrige National Quality Award Criteria.
• Materials to assist contractors in preparing a quality assurance manual and implementing an effective quality assurance program.
• A template for a partnering workshop that includes a sample partnering agenda, an introduction to the basic partnering concepts, sample mission statements, and a sample partnering charter.
• Sample evaluation forms that contractors can customize to evaluate supervisors, journeymen, and apprentices.

PRE-CONSTRUCTION PLANNING

Dr. Awad S. Hanna, University of Wisconsin–Madison
Dr. Cindy L. Menches, University of Texas at Austin

INTRODUCTION

The importance of planning is unmistakable given the challenges faced by contractors in a competitive construction market. These challenges include reducing costs, improving labor productivity, minimizing changes, and maximizing resources to increase profitability. These challenges are intensified by increasingly tight timelines and ever more complex projects that test the management capabilities of even the best companies. A consensus exists in the construction industry that more formalized pre-construction planning is necessary to remain successful in an increasingly competitive industry. Accordingly, contractors are turning to pre-construction planning as one approach to improving their competitive edge.

The study presented in this chapter critically evaluates the relationship between pre-construction planning and project performance. As part of our research process, in-depth project-specific information was collected on the planning effort and project outcome for several successful and less-than-successful projects. This data collection effort culminated in a detailed analysis of the planning practices of these two groups to identify clear differences between successful and less-than-successful projects. Twenty-seven randomly selected companies from 11 statesparticipated in our research effort. Data were collected on 29 successful and 27 less-than-successful projects.

The planning activities that were performed on the successful projects were used to develop a model pre-construction planning process. This model process was fashioned after those projects that performed effective planning and achieved a successful outcome. As such, this model process incorporates the best planning practices of the companies that participated in our research effort. The planning process of successful and less-than-successful projects was compared to the model process, and we discovered that those planning processes that more closely matched the model resulted in more successful performance.

METHODOLOGY

The primary goal of our research effort was to investigate and quantify the effect of pre-construction planning on project performance. To support this goal, our research attempted to provide evidence to support two main hypotheses:

1. Projects that experience an appropriate planning effort also experience more successful outcomes.
2. There are significant pre-construction planning activities that distinguish a successful project from a less-than-successful project.

The research was conducted in three distinct phases. In Phase 1, the current state of pre-construction planning was investigated by developing and administering a questionnaire to nearly 2000 randomly selected members of the National Electrical Contractors Association (NECA). Contractors were asked to identify all of the planning activities they typically performed as part of their pre-construction planning process. These data were used in Phase 2 to construct an initial model pre-construction planning process. Finally, in Phase 3 a detailed sampling plan was developed to select a random sample of willing participants to respond to a questionnaire and participate in an interview. Data were collected from those contractors who responded to the initial survey in Phase 1 and who indicated they would be willing to provide additional information about their planning practices. Data were collected on two projects per contractor—one project that was well planned and performed successfully and one that was poorly planned and performed poorly. The project characteristics, planning activities, and performance of the successful and less-than-successful projects were compared to identify distinct differences. The relationship between characteristics, planning, and performance was modeled, and evidence was provided, to support the theory that projects that experience more effective planning also tend to achieve more successful outcomes.

The data collection effort culminated in a detailed analysis of the planning practices of well-planned and poorly-planned projects to identify clear differences between successful and less-than-successful performers. The data analysis resulted in: (1) the development of a technique to classify and quantify the inherent characteristics of a project, which might influence how a project is planned; (2) the refinement and validation of a model pre-construction planning process based on the best practices of the participating contractors; (3) the creation of a scorecard to compare the actual planning effort on projects to the model planning process; (4) the development of a technique for quantifying the effectiveness of an actual planning process; and (5) the investigation and quantification of the relationship between planning practices and project outcomes.

PRE-CONSTRUCTION PLANNING PROCESS

Pre-construction planning is the planning that is performed to prepare a construction project for execution. Pre-construction planning is also referred to as execution planning, pre-job planning, and more generically as pre-planning, which is a term applied in many fields to refer to that stage of planning that occurs before an event happens. In this chapter we use the term pre-construction planning.

In general, pre-construction planning begins during the preparation of the bid and ends shortly after the project has been executed. However, the vast majority of planning activities are performed after a contractor has been notified of a pending award. Hence, this chapter covers the planning activities that are performed after notification of pending award and are generally completed before the project has been executed.

The pre-construction planning process, which resulted from a detailed analysis of the planning processes used on successful projects, consists of 46 activities classified in 10 categories. Figure 1.1 presents the main categories of the model pre-construction planning process. Team member involvement in planning will typically be driven by the type of planning that needs to be completed. Figure 1.2 presents a matrix of the 10 planning categories and potential team members who may be involved. There are several strategies for successfully implementing the model pre-construction planning process as a standard procedure on all projects:

• Top managers must reinforce their commitment to a standardized planning process and must ensure planning is performed on every project.
• The model planning process must be tailored to each project based on its particular characteristics. For example, a small project might require only a few minutes on some of the activities, whereas a large project might require several hours or days on those same activities.
• A system for tracking the success on projects that are well planned and that followed the model planning process will serve to document its benefits.
• In addition to implementing a model planning process, consider implementing a “double-check” system in which the supervisor double-checks the planning performed by the project manager. This should ensure planning is performed consistently across the company.
• The early involvement of the field supervisor in the planning process has been shown to improve the chances for a successful project. Therefore, consider selecting and involving your field supervisor during the bidding stage or in the early part of the post-award stage.
• Ensure that excellent planning effort is applied to those activities that are identified as critical. These are the activities that have the greatest potential for impacting the outcome of the project.
• The planning kickoff meeting alerts all involved team members that the planning process is officially underway, and it allows the project manager to establish deadlines for completion of activities. Likewise, the construction execution kickoff meeting brings the team members back together to review the progress of the planning and ensures that all tasks have been, or will be, completed by the deadline. These two meetings should be held on all projects regardless of size. Lessons learned and a feedback loop should be an essential part of your standardized planning process. Project managers and field supervisors should share planning practices.

Figure 1.1 Overview of the model pre-construction planning process

Figure 1.2 Team member involvement in pre-construction planning

The results of our study revealed that the projects that received more effective pre-construction planning were also more likely to achieve successful outcomes. Success was defined by construction contractors as follows:

1. The project was profitable
2. The customer was satisfied
3. The project resulted in repeat business
4. The project resulted in good working relationships between the trade contractor, the general contractor, and the owner
5. The worksite was safe and there were no accidents
6. The project was completed on time
7. The workers took pride in the completed project
8. There was effective communication and cooperation between the trade contractor, the general contractor, and the owner
9. The quality of the work was excellent
10. The project achieved its budg...