This Simple Habit Can Keep Your Projects On Schedule
The New Stone Age (9000 BC) is what many regard as the earliest beginnings of the construction industry. At this stage, shelters were being built from materials such as mammoth ribs, wood and rock. Back then, schedule delays were caused by a lack of tools and available resources. We’ve come a long way in that aspect, but still can’t solve the issue of projects over running schedule.
I met with Josh McMahon, a construction production manager & construction schedule consultant, to understand what he is seeing the industry. My intent was to dive deeper into construction project management, and how it’s evolved, to get a better understanding of why this is still such a large issue in the industry and what we can do to fix it.
Question: From your perspective, what is the primary cause of delay in projects that fail to meet their schedule?
Josh: “People fail to meet their schedule because they don't invest in their schedule. They fail to communicate and ensure their trade partners can meet the expectations necessary and they fail to ensure the job is ready on their scheduled day. “
This was interesting to me, especially considering the advancements in technology. Let’s look at what the top contractor related factors causing cost overruns and schedule delays are:
1. Poor site management
2. Information and Communication
3. Inadequate planning
4. Poor procurement and work scheduling
5. Inappropriate schedules control
6. Problems with subcontractors
7. Delays in materials deliveries
8. Lack of early stage interaction with vendors
Historically, poor site management and poor communication as it pertains to the schedule has been a leading problem, and continues to wreck havoc on schedules. Lack of assignment monitoring and control factors directly correlates to not only schedule delays but also cost overruns. Contractor poor site management and communication problems have the most significant negative consequences on cost overruns, regardless of the project capacity. This disconnect between the managers and supervisors during the planning phase, and during the appearance of the actual causes of time variation is the main reason for delays.
What does this mean?
Project managers often fail to control time and cost of construction activities despite the advanced available PM processes, tools, and systems in place today. Researchers found that over 59% of development projects experienced client related rework, which increased the project cost by over 7%. The most critical risks to the construction projects are related to the clients. This is a particularly critical stat as every month of delay to complete any construction project results in income loss to the contractor.
Question: What would your advice be to someone green in the industry, who might not have as much experience but still wants to perform well?
Josh: “It depends..
If the organization does not have a process, I would tell them to make sure each project is walked at 7:30 am daily and to update their schedule at that time. Take no calls during this 1-1.5hour site walk. Once complete, sit down and work through each schedule one at a time until the next two weeks are confirmed and set with each vendor.
If the company has a set process, trust the process, and lean on the superintendent that is managing the job site.”
Josh is referring to a Work Breakdown Structure. Breakdown the activities and divide the project deliverables into more manageable elements and levels, a hugely important part of the project time management and communication management portion of the project management process. Let's take a look at the chart below.
Project Management Body of Knowledge (PMBOK?; 5th ed.; p. 61) by Project Management Institute, 2013, Newtown, PA: Author. Copyright [2013]
Project time management includes seven tasks required to manage the completion of projects within the planned date for completion. The first six tasks that appear in the planning process group are plan schedule management, define activities, sequence activities, estimate activity resources, estimate activity durations, and develop schedule. The project manager executes the task of control schedule in the monitoring and controlling process group. In the planning phase, the project manager sets the project policies and procedures for the project schedule, identifies actions to achieve deliverables, establishes the relationship among activities and the required resources, and develops the project program. In the monitoring and controlling phase, the project manager monitors and updates the project schedule and takes action to reschedule the activities to achieve the project plan.
Another factor in ensuring the project schedule is completed on time is Project communication management. Similar to project quality management, the three tasks of project communication management exist in the planning process group, the execution phase, and the monitoring and controlling stage. The three tasks of this management area include plan communication management, manage communications, and control communications. In the planning group, a manager develops a project communication plan and protocols among the stakeholders, manages the information and communication plan in the execution phase, and monitors and controls the communication in the planning and controlling process to ensure communicating the information required.
Question: What advice would you give to contractors who struggle with getting their projects completed on time?
Josh: “The use of scheduling software on a daily basis will increase the efficiency of any project. It will reduce dry runs and improve profitability for the builder and trade partners. Superintendents that follow a process of walking their projects daily and updating their schedule to reflect actual progress, will always be successful in construction management.”
Combination Approach
Think of your project as an inuksuk.
The project schedule represents one of the legs, and the WBS as the other. Each of them equally important as a foundation to your project. Both of them essential in all critical phases of a construction project.
With Fonn, these important foundational pieces work in tandem, setting up your projects for success, starting from the ground up.
Studies regarding cost overruns and schedule delays found that 87% included identification to poor planning, 69% for procurement problems, and 56% were for poor site management. The identified problems were the main factors that affected construction projects management.The construction industry is a unique, fragmented, and complex industry with risk and uncertainty in every project. Cost overruns and schedule delays are common problems in the construction business. One party isn’t fully at fault, however. There are several reasons for cost overruns and schedule delays caused by the client as well.
- Late payment to contractors contribute to schedule delays because the subsequent effect is the contractor’s inability to pay subcontractors and suppliers on time.
- The selection criteria decided by the client and sent to the project bidders affects the quality and reliability of the overall cost estimate, and selecting the lowest bid affects the decision and action of the cost estimator who may underestimate the cost at tender stage, and effect the schedule during the execution phase.
This is why it’s important to bring consultants/ owner's representative, like Josh, on board. Consultants provide experience and wisdom from both sides to ensure a project runs smoothly.
Takeaway
Project planning and control is an effective project success factor for any project. In the planning phase, you set project cost and time, estimate resources, and make plans for the budget, to set the stage for a successful project. From there, you must have a clear plan, from project inception until project completion. Setting formal processes, is essential. Following these systematic processes reduces the project risks, improves team performance, and enhances the satisfaction of the stakeholders. Fonn is the tool that enables your team to do just that.
If you want other tips and tricks, email me at [email protected] for a free PDF of my article “The 9 most frequent causes creating the need to time buffer in the United States”
One Site, One Platform = Lower Risk, Lower Costs
3 年A great, thoughtful article. Thanks for shaking us out of our collective comfort zones. You state that our projects have problems : ". . . despite the advanced available PM processes, tools, and systems in place today." I would say that they are a root cause of the problems, as people lean on them and remain siloed and confrontational with those in other silos. The cost people guard their silo (and credibility) against the schedule people. They even look askance at each other's WBS. And the procurement folks? As they are in their silo, their committed delivery dates seldom migrate into the schedule. But hey - they all have state of the art tools!
Dad, Process Improvement Integrator
3 年Very solid article! This resonates well with me. The construction industry as a whole is in the midst of a rude wake up call. Engaged trade partners are a requirement these days. Asking for sincere input from them for better scheduling is imperative. They are the SMEs. The days of superintendents being hands on and self performing may be gone as the requirement for professional communicators and managers takes shape. There’s a lot to unpack in this industry. Great interview!
Vice President Bramante Homes - Transformational Leader | Greatness Coach | 1% Improvement Warrior
3 年Nate Clark, it was my pleasure to help you with this article and the final result is better than I could have imagined. This is a great read for anyone getting into the business to a seasoned vet.