CONSTRUCTION MANAGEMENT FOR ENTREPRENEURS , OWNERS AND BUILDERS AND PROFESSIONALS BHADANIS (PART 6)
To oversee the design process, the contractor should hire a trained and experienced individual.
To assess the design and make sure that the information is released in accordance with the project schedule, regular meetings with the design team should be performed. Additionally, it's important to make sure the client doesn't expand the project's scope, alter the design's specifications, or unduly delay design and drawing approvals at this time.
Design-build projects give the contractor the chance to create a design that not only satisfies the client's objectives but is also feasible and cost-effective to build utilising the contractor's resources and experience.
Site amenities and services
Site amenities including offices, restrooms, and lunchrooms must be positioned in a convenient location to the work areas yet out of the way of any future developments.
2. be secure, solidly constructed, and weatherproof 3. have adequate ventilation and lighting
4. be in good shape and constructed properly to project a positive picture of the business.
5. be cost-effective 6. adhere to all applicable regulations, including labour agreements and local ordinances
7. have space to accommodate the anticipated peak number of visitors, with room to grow if necessary.
8. Obtain the client's approval of their design
9. be simple to remove at the end of the project 10. Take into account the client's and subcontractor's requirements, if applicable 11. be swiftly set up so that work can begin on the project 12. have offices that are cosy enough for personnel to work in, with enough furniture and storage space
13. possess sufficient communication
14. Maintain secure storage for sensitive documents
15. have internet connectivity and computer servers as information technology access points
Existing structures and facilities can occasionally be used and modified, which can save costs and save time.
Site facilities need to be kept tidy and clean since doing so improves productivity, safety, and the company's reputation.
Site utilities like water and electricity must: 1. accommodate peak demand, taking into account all the subcontractors' and commissioning needs
2. adhere to statutory requirements
3. be designed to avoid obstructing construction efforts and to prevent harm
4. account for potential supply disruptions (where necessary additional storage or backup facilities may have to be installed)
5. if the contractor is paying for usage, be metered
Subcontractors
The success of the project may depend significantly on the performance of subcontractors. It's crucial that subcontractors aren't picked just based on cost. Equally crucial is the subcontractor's capacity to complete the project on schedule while maintaining the necessary levels of quality and safety. I've worked on projects when choosing the least costly subcontractor resulted in the project being overbudget rather than underbudget.
Clients perceive subcontractors as an extension of the contractor, and a subcontractor's failure can damage the firm's reputation.
When managing subcontractors, it's imperative to remember to: 1. The subcontractor's manager at the contractor is aware of:
1. The subcontractor's area of responsibility; 2. Who is in charge of providing what 3. the procedure for paying the subcontractor
The second party:
1. meets the requirements for safety 2. provides work of a sufficient calibre; 3. adheres to the project timeline
3. Access and information are provided to the subcontractor on time or earlier, and neither the contractor nor other subcontractors cause a delay.
4. Regular meetings with the subcontractor are held to discuss environmental, quality, and safety issues as well as project progress, delays, and claims, and minutes of these sessions are sent to the appropriate parties.
5. Subcontractors confirm receiving the designs and information provided to them by signing a receipt.
6. The subcontractor, where applicable, provides shop drawings in line with the project schedule, enabling for receiving the necessary approvals from the customer or the contractor.
7. Any contractual communication with the subcontractor must be in writing (any verbal instructions should be followed up in writing)
8. The contractor only communicates with the subcontractor through its designated responsible personnel
9. As soon as it seems that the subcontractor might be in trouble, action is done.
10. The contractor's intention to charge more is disclosed to the subcontractor.
11. The subcontractor is paid in accordance with the contract for the work or services that were performed for them by the contractor and that these costs are invoiced on a regular basis.
12. Prior to the delivery of the final payment, all guarantees and warranties are in place.
13. The subcontractor is in compliance with the project's criteria for quality, safety, the environment, and labour relations.
14. Subcontractors do not start working until a contract has been executed and they have provided the necessary sureties and insurances.
15. The contractor approves the subcontractor's personnel, tools, and independent subcontractors
16. Employees from the subcontractor attend the contractor's project induction 17. Subcontractor correspondence is immediately handled
Recognize the deal
Because their Project Managers didn't grasp the contract or didn't act in accordance with it, many contractors lose money. Among these failures are the following:
1. failing to deliver valuations on time or with the appropriate supporting materials
3. performing work outside the project's scope 2. failing to ensure the contractor is paid on time
4. failing to make sure the client complies with their contractual responsibilities 5. submitting claims and variations after the deadline
6. failing to adhere to the proper insurance claim procedures 7. Not completing the project's milestones
It is crucial that the Project Manager thoroughly reviews the contract, marking any significant clauses, and seeking counsel whenever they have any questions.
quality assurance
Rework because of subpar materials and craftsmanship results in significant additional costs. It is crucial that the right processes are put in place from the beginning of the project to monitor and regulate quality.
Think about Module 6
safety measures
The execution of projects must be done safely and in accordance with applicable safety laws, client specifications, and the contractor's own safety standards.
The project's management and workers must adhere to the project's safety criteria, and safety must be properly set up and applied from the beginning.
Every project ought to have: 1. secure tools
2. Personal protection equipment that must be worn in work places that is suitable and appropriate
3. the proper warning signage
4. Adequate medical and firefighting supplies
5. having enough workers who are trained in first aid and can use the firefighting equipment.
6. Having access to a communication method in case of an accident
Emergency contact information is easily available, there are emergency response processes in place, and workers are aware of them.
9. Employees who are certified and properly trained to operate the machinery and plant in a secure manner
10. frequent tool-box meetings to review operational changes and safety concerns
11. measures taken to prevent drug and alcohol abuse
12. Adequate tagging processes to guarantee that the equipment is periodically inspected and in good condition
Lock-out procedures to prevent unauthorised usage of unsafe or under construction equipment 13. Safety awareness training
15. Safety committees are present on larger projects
Reporting and investigating incidents and accidents; warning staff about potential risks; and
18. Hazardous materials kept in a secure area with access to the material data sheets.
19. flammable liquids kept out of reach of flames in a well-ventilated space
Environmental
Projects must adhere to environmental laws, the client's environmental plan, permit requirements, as well as the contractor's own environmental certifications and standards.
Suitable precautions must be taken to remove: 1. dust
2. noise
3. air toxicity
5. erosion and silt deposition 6. stormwater runoff
6. Spills involving hazardous materials such as chemicals, oil, and fuel 7. pollution of the surrounding area and the ground
8. The chance of a fire
9. the weeds spreading
10. waste (which should be recycled where possible)
It is important to take precautions to protect the fauna and flora, such as fencing off sensitive areas and enforcing worker adherence to designated work zones.
Drawings
The success of the project depends on the effective and systematic control of the drawings.
1. It is necessary to set up and maintain a drawing register. Any differences should be immediately reported. This should be compared to the client's register.
2. Drawings should be distributed to staff, suppliers, and subcontractors under the cover of a transmission note, which the recipient must acknowledge and return.
3. The project site office shall have a master copy of each drawing. 1. These drawings must be properly filed by drawing number and, if necessary, in each of their numerous portions.
2. Never be eliminated from the master file unless a revision that replaces it does so.
3. remain in the office on the site 4. be kept up-to-date and superseded drawings should be marked "superseded" and removed. 5. not be damaged or written on.
6. be accessible on drawing tables so they can be quickly consulted. 4. The date of receipt must be stamped on all drawings.
5. Drawings must be given to the appropriate party.
6. In order to track drawing modifications as needed, a master set of all the superseded drawings should be retained in the site office.
7. The Project Manager needs to: 1. be knowledgeable about recently released drawings
2. Recognize the great illustrations and information 3. Ensure that drawings are distributed to the proper parties.
4. Ascertain that Supervisors are utilising the appropriate drawing revision 8. Supervisors should be able to set out their designs on a clean, dry table. 2. keep their drawings in a file so they don't get lost. 3. get rid of and clearly indicate any drawings that have been replaced. 4. Make sure they are using the most recent drawings.
5. notify their section manager or project manager of any issues or irregularities with the designs.
9. The client must receive a written notice of any drawing flaws, ambiguities, or disagreements.
10. Shop drawings should be: 1. Verified as accurate by the contractor
2. monitored and tracked to guarantee prompt submission to the customer and prompt return of all comments and changes to the original source
Milestones
The contractor must complete the project on schedule. Failure to do so could lead to: 1. Penalties being assessed against the contractor
2. Extra expenses incurred by the contractor as a result of their prolonged involvement in the project
3. The contractor losing the client's trust
4. The contractor's access is impacted by and limited by the client's contractors and activities.
Therefore, it's crucial that Project Managers and project workers have a clear understanding of what has to be done to reach the milestones and, if necessary, monitor progress on the critical path every day.
The following steps may need to be taken if it looks that development is stalling on the crucial path or in an area that is necessary to meet a milestone:
1. using more resources
2. reallocating resources from less urgent regions 3. putting in extra time on important tasks
4. Prioritizing essential elements in the project's division of services, equipment, and materials; 5. Designating key personnel to the area
If it looks like the contractor won't make the deadline:
1. Talk with the customer about how they can receive a limited amount of access to satisfy their demands.
2. ask if the client can offer any assistance.
3. If it's absolutely impossible to achieve the milestone, as a last resort, give the client as much notice as you can (with sufficient notice the client may be able to adjust their dates, reducing the impact and costs caused by the delay)
The contractor must comprehend the conditions for the handover in order to reach a milestone, including: 1. what work needs to be finished 2. Commissioning specifications 3. connections to current services
Results of tests (for some projects, the facility may need to be finished and
Before the facility can be considered finished, its operations must be tested and then it is commissioned and run for a few days.
5. authorizations and permissions for use
6. Instructional and maintenance manuals, in addition to any other paperwork mentioned in the contract
7. establishing and finishing punch lists
8. educating the customer's operations and maintenance personnel 9. Providing spare parts
10. secure access for contractors and the client's equipment
11. the operation of any services that may be dependent on the completion of other components of the complex, such as power plants and water treatment facilities.
requirements for company management milestones and needed resources.
Ensure that you're focused
The project team is aware of how to accomplish them and has the
Everyday reports and records
All projects must have daily records, which must be the following: 1. Reliable
2. preferably bear the client's representative's signature 3. jot down the following details:
1. The environment
2. Personnel and equipment counts, including those supplied by subcontractors
3. pauses
4. significant material and equipment delivery 5. Important assignments finished
4. be finished every day
Should there be a disagreement or variation claim, these records may be crucial.
Meetings Regular meetings with the client for projects should be recorded in minutes. 1. If they haven't already, project managers should arrive at these sessions prepared with the data needed from the prior meeting.
2. check that the minutes accurately and fairly capture the meeting. 3. prepare a list of topics for discussion and bring them up in the appropriate meeting parts.
4. Make a list of the actions that need to be taken, and 5. As soon as you can, shut out the minutes.
6. As soon as you get back to work, take the meeting's action items.
7. check that the agenda for the meeting includes topics like access, information needed, unfinished drawings, variations, drawing approvals, delays, progress, other issues or worries, and payments.
Senior corporate management should, whenever possible, attend customer meetings because:
1. It provides a chance to interact with the client
2. It helps the Project Manager by offering support
3. It provides a chance to learn how the project is progressing and whether the client is satisfied with the contractor's work.
4. They can bring up concerns they have
5. When the contractor's senior management shows interest in the project, clients typically appreciate it.
6. It offers the customer the chance to discuss any issues they may have with the contractor's site management team.
Project photos Project photos are useful to: 1. track progress, especially if they include the date and time;
2. Display variety and extra effort 3. keep track of mishaps and events
4. notable insurance occurrences
5. document any materials or equipment that were harmed or in poor repair when they got on the scene.
6. assemble marketing materials 7. include in business newsletters so that other employees are aware of the project's scope 8. be included in presentations to potential clients, especially when seeking to win a bid for a project of a similar nature.
documents and licences
Before construction begins, confirm that all necessary licences are obtained and that they are kept current. Potentially if it is the client's responsibility to get the permits, the contractor should nonetheless confirm that they are available because if the permits are invalid, the project may be stopped, causing delays and even necessitating the contractor's demobilisation from the project. The project could be cancelled if the client is unable to secure the necessary permissions, which could put the client in financial difficulty and prevent the contractor from being paid for their expenses.
It is crucial that the contractor is informed of the most recent requirements and, if necessary, seeks suitable guidance. Permits and documents differ between locations.
keeping in touch with the estimates department
The estimating department should receive feedback from project managers on a regular basis. This commentary might consist of:
1. how well suppliers and subcontractors perform
2. Inaccuracies in the project's costing, both favourable and negative
3. Challenges or benefits of working with the client's design team 4. innovative building techniques or materials
Productivity of labour and equipment is 5.
Additionally, it's frequently helpful to invite the estimators to the project site so they can see firsthand how it is being built and contrast that with how it was tendered. When the Estimator visits the project, they might even see things the contractor is doing that aren't in line with the terms of the original quote and should be considered a variation.
completing the task
Many projects are profitable up to the point where costs abruptly become out of hand. The project's late completion is the primary cause of the additional expenditures. I mean completely finished when I say that something is finished, not merely given off. Many project managers solely concentrate on transferring the project. But a project typically involves more than this. Punch list completion, completion and submission of all paperwork (including as-built drawings, quality data packets, guarantees and warranties), and completion of all contractual responsibilities are all included in this (such as commissioning and testing).
A completion timeline ought to be created close to the project's end to help with timely completion. These would comprise:
1. completing the unfinished business connecting to current services and structures 2. commissioning 3. 4. completing the punch-list items for the contractor 5. The client's last punch list
6. creation of handover documents, including quality reports, commissioning findings, operating guides, and warranties
7. removal of temporary site amenities and services
At the project's conclusion, there are a few things that should be taken into account, such as: 1. receiving the certificate of practical completion; 2. securing the release of sureties or bonds and returning them to the organisation that provided them.
3. asking for the removal of retention
4. removing equipment from site and taking it off-hire 5. demobilising all offices and facilities
6. restoring access roads and laydown sites, including obtaining the client's signed approval.
7. Concurring with the client on the final accounts
8. clearing accounts with suppliers and subcontractors 9. returning all accommodations
10. cutting off services
11. changing or terminating employee status 12. transferring personnel records to the corporate headquarters
13. delivering to the client all spare parts and materials they have purchased
14. getting rid of leftover items
15. classifying, arranging, and keeping project records 16. selling off assets acquired for a project
17. delivering to the client quality documentation, commissioning information, spare parts lists, and warranties
18. finalising the cost report.
19. sending the client the project's final invoice
Summary
A project must be successfully completed in order to:
1. Using the available resources, plan the project, including developing a construction methodology that is appropriate, cost-effective, safe, and complies with the client's requirements and specifications.
3. Ensure a contract with sufficient protection for the contractor is in place before work begins. 2. Create a schedule, then use this schedule to monitor progress to ensure the work is completed in the correct sequence and on time.
4. Verify that all payment sureties, insurances, and bonds are in place.
5. Have the contractor's project team receive the tender in a formal handover. 6. have a kickoff or handover meeting with the client.
7. Ensure that the project has an adequate number of appropriately qualified and experienced employees who are aware of their responsibilities, the project's requirements, and performance standards.
8. Hold an induction for all project personnel to explain the site rules, safety risks, and project requirements.
9. Manage and coordinate the design process if the project has a design component.
10. create adequate and suitable site services and facilities
11. Properly oversee subcontractors to ensure they uphold their contractual obligations
12. understand the terms and conditions of the contract \s13. institute the appropriate quality systems to ensure the quality meets the client’s specifications and the contractor’s own systems and standards
14. ensure all work is safely executed in accordance with safety regulations and legislation, in terms of the client’s requirements and meeting the contractor’s own safety standards
15. ensure compliance with all environmental legislation and permits 16. put in place proper drawing and document control systems
17. achieve the contractual milestones
18. maintain accurate and detailed daily records which should preferably be signed by the client \s19. have regular meetings with the client which are minuted
20. take photographs to record progress, incidents and variation work 21. ensure all permits are in place
22. provide feedback to the estimating department 23. finish the project completely, on time
Module 6 – Reducing costs
Let’s consider the following example. If a project is valued at eleven million dollars and was tendered at a 10% profit then the project should make a million dollar profit. (Remember the profit is normally added to the cost, so an eleven million dollar project with a 10% profit would have ten million dollars of costs and a million dollars of profit). Say the project actually has costs of twelve million dollars so the contractor loses one million dollars. To recover the one million dollars the contractor must complete another eleven million dollar project with a 10% profit margin. After completing the second eleven million dollar project, assuming the contractor has made the tendered profit of one million dollars, the contractor has covered their loss from the first project. They’ve completed twenty two million dollars of work and made no money, yet they still have to pay their overhead costs.
Indeed, it is difficult to recover from losses.
Now imagine the same company has office overheads of a million dollars. (These are the costs to run their office such as the office rental, telephones and salaries). The contractor has to carry out another eleven million dollar project at a 10% profit to cover these costs. At the end of these projects the contractor has completed thirty three million dollars of work and has not made one cent of profit.
Now, imagine another contractor who doesn’t lose money on any of their three projects of eleven million dollars each. Further, the contractor operates a small, more modest office, and the office overheads are only six hundred thousand dollars. After completing the three contracts they have made a profit of two million four hundred thousand dollars. (Three projects each made one million dollars profit less the company’s overhead costs). This would make many contractors happy! It’s been achieved by projects not losing money and by keeping office costs modest.
Of course, if the second contractor was to make an additional 2% profit on each of the projects they would make an additional six hundred thousand dollars (two hundred thousand per project) which would make their total profit now three million dollars.
Consider though, that every project is normally tendered to make a profit, so a project that makes less than the tendered profit has actually lost money.
That’s right, even though the project has made a profit, as long as it’s less than the tendered profit the project has lost money.
Much of what is said in this Module may seem basic, but it’s amazing how many basics are ignored or overlooked. Many items could sound petty, but to put it in perspective, let’s consider a company that is undertaking work at a 10% profit margin, so to earn a profit of one thousand dollars the company has to complete ten thousand dollars of work. Therefore by wasting a thousand dollars it’s equivalent to having to do an extra ten thousand dollars of work. Which is easier – to do ten thousand dollars of work to cover a loss of one thousand dollars, or to actually not waste the one thousand dollars in the first place?
If you can save a thousand dollars here, and a thousand dollars there, then fairly quickly you’ve saved ten thousand dollars, which is additional profit that in the normal course of events would have required the successful completion of a one hundred thousand dollar project.
Instance study
I recently had a small renovation done at my house. The contractor doing the ceilings and partition boards employed a subcontractor for the installation. The subcontractor installing the boards arrived at 7am, but the boards only arrived at 9am. When the boards arrived they were too long to be lifted by hand onto the second floor. A fifteen minute rain squall came through and the boards couldn’t be lifted off in the rain. The delivery vehicle left without offloading the boards and the subcontractor went home unhappy because they weren’t able to do any work. Two people wasted their whole day. The delivery vehicle had to return the following day. Because the boards were too long they had to be cut on the truck before they could be moved upstairs. To compound the problem there were too many boards ordered resulting in 20% of them not being used. In addition the wastage in cutting the boards probably resulted in a further 15% waste.
The end result was that the final labour cost was nearly double, and the material cost was about 35% more than it should have been.
If the correct quantity of material had arrived, when it should have, in an appropriate size, these additional costs could have been avoided.
Yet what I have described is fairly typical for many projects, and it’s sometimes surprising contractors make a profit at all.
Work smarter
I always maintain there are many different ways of constructing something, or carrying out a task. Some of these are obviously wrong. However, there are usually a number of different options which are correct. But some are more correct than others. By this I mean that all the correct options will end up with the required end product, it’s just that some choices will result in a better organised and safer project, with a shorter schedule, requiring fewer people and less equipment, and will overall be more efficient and cost effective than the other options.
It’s therefore important not to pick the first method of construction that comes to mind, but rather to consider various options, weigh up their risks and benefits, and then select the best.
Plan
An important aspect of reducing unnecessary expenditure is to ensure the work is planned ahead of time so that: \s1. it’s not delayed by lack of access
2. all materials are available on site when they’re required 3. the appropriate equipment is available
4. the preceding necessary work has been completed 5. sufficient and competent personnel are available
6. the appropriate paperwork has been completed and submitted (such as method statements, test results and job hazard assessments) (such as method statements, test results and job hazard assessments)
7. the appropriate tests and inspections are completed
There are often additional costs due to poor planning because: \s1. personnel and equipment are standing idle waiting for access, materials or equipment
2. management use their valuable time to make emergency arrangements to procure materials, organise access and rearrange work sequences, instead of managing the project
3. materials which aren’t on site have to be expedited at additional expense 4. there are delays to the project schedule
5. there’s a knock on delay to follow-on trades and subcontractors
Schedule
A properly constructed schedule can save money. This can be achieved by: 1. moving the critical path through different activities to find the optimum \sconstruction sequence with the shortest overall duration, thus saving on project overheads
2. ensuring the different activities are scheduled in such a way they minimally impact the access required for other tasks
3. arranging activities so the utilisation of resources is smoothed out and is relatively even, so that resources aren’t idle or have to be demobilised and then remobilised again
4. sequencing activities so that specialist equipment has continuous use, doesn’t stand idle or have to be brought back onto site at a later date (for example try and arrange that all heavy lifts on site are done by a large crane in one visit, or that road surfacing equipment only has to be brought to site once to complete the roads) (for example try and arrange that all heavy lifts on site are done by a large crane in one visit, or that road surfacing equipment only has to be brought to site once to complete the roads)
5. ensuring that the client’s milestones are met so that the contractor doesn’t incur penalties
6. scheduling tasks in the correct sequence so they don’t have to be redone later
7. taking into account the available resources within the company, as well as those required from subcontractors, so that the tasks can be carried out in the time allowed on the schedule
8. allowing for design, design approval and manufacturing times to avoid delays
9. allowing for any impacts due to adverse weather, and where possible schedule tasks that may be affected by poor weather to happen in a more favourable season
10. allowing sufficient time for the client to approve the contractor’s management plans and method statements
11. taking into account the time required for the issuing of permits
Access
Lack of access, or poorly planned access, adds to the cost because: 1. it delays work and impacts the schedule
2. it may result in subcontractors being unable to work resulting in them charging standing time and possibly even moving off site
3. personnel may have to stop work to allow other work to proceed, resulting in them being idle, or having to relocate to another work area
4. poor access may slow processes down, for example delivery trucks have to use longer or slower routes, or workers have to walk lengthier routes to reach the work area which impacts their productivity
5. access may be dangerous, reducing productivity and endangering personnel 6. materials may have to be double handled \s7. larger lifting equipment may be required to access the areas
It’s important to plan access at the start of the project by: \s1. scheduling activities so they don’t interfere with each other, taking into account:
1. access to work areas, in particular the requirement for scaffolding \s2. the impact of lifting equipment and lifting operations on other activities
3. access for delivery vehicles
4. the installation of large and heavy items 2. planning access routes so they: \s1. are safe \s2. require minimal maintenance \s3. take into account future activities and structures 4. are the shortest, most efficient ones possible
3. planning storage and stacking areas so that: 1. they don’t block or restrict access \s2. they are close to the work areas
3. materials can be easily delivered and removed as required
Safety \sSafety must be appropriate and relevant to the project.
Poor safety could result in injury, disablement and death as well as additional costs due to:
1. it resulting in an accident which may result in: 1. management requiring time to investigate
2. the worker being absent for a period of time while being paid
3. a key worker, such as a crane or excavator operator, or a supervisor, being injured, resulting in other workers being unable to work affectively, or even a section of work standing
4. a key piece of equipment being damaged
5. completed work being damaged, resulting in repair costs and delays to the project
6. an increase in insurance premiums
7. poor morale which impacts productivity
2. the project being closed down by the client, or a government body, for safety violations
3. fines being imposed for safety violations
4. unsafe work conditions which affect productivity
Inappropriate implementation of safety measures could result in: 1. potential safety issues not being addressed
2. additional expenses being incurred due to unnecessary safety procedures being implemented
Poor safety performance will reflect poorly on the contractor and clients may not award projects to a contractor whose safety is poor.
In many small companies the owner performs tasks on site and there’s always the risk of injury. When this happens it could be catastrophic – not only will the owner lose income while they are injured but the project may not be able to continue in the owner’s absence. In fact the whole company may come to a standstill since the owner literally holds the keys to everything. Staff, suppliers and subcontractors might not be paid as there’s no one to authorise the payments. Projects may stop, and the company will quickly lose its hard fought reputation. Indeed, there is more than one business that has failed due to the owner becoming seriously ill or injured.
Quotes & tenders
Often Project Managers place orders with suppliers that are convenient, or who they know. Sometimes these suppliers or subcontractors aren’t briefed properly on the task, requirements and restrictions, resulting later in variations to their quoted price.
To obtain the best prices ensure:
1. that at least three quotes are obtained 2. that the supplier:
1. has all the tender drawings 2. has the correct specifications
3. is aware of the contractor’s terms and conditions
4. understands the project’s quality systems and requirements
5. is aware of the project conditions which may impact them, such as specific labour agreements and access requirements
6. understands the safety and environmental requirements if they are doing work on site
7. is aware of what the contractor will provide and what they must provide, so costs aren’t duplicated \s8. understands the delivery or completion dates 9. has the delivery address
10. knows what guarantees and warranties are required 11. is advised of particular concerns or requirements
12. (if shop drawings are required), understands the requirements for submitting them and the time required for their approval
3. quotes are in writing
It’s important the contractor doesn’t just pass on the client’s drawings, contract conditions and specifications without reviewing them to ensure that there are no inconsistencies, and that they are all appropriate to the subcontractor.
Adjudicate quotes and tenders
Often orders are awarded to the cheapest subcontractor, or supplier, who ends up in fact not being the cheapest when the contractor incurs additional expenses to manage them, or because the subcontractor later submits variations for what they perceive are additional works but were items allowed for by other subcontractors in their tenders.
When adjudicating quotes and tenders ensure that the supplier or subcontractor has:
1. allowed for the correct product \s2. evaluated all the applicable drawings 3. priced all the items \s4. met the specifications
5. conformed with the schedule \s6. complied with the warranty periods
7. met the required quality standards and documentation 8. complied with the site specific conditions
9. included all taxes and duties 10. allowed for transport \s11. included their temporary facilities, equipment and services 12. adequate insurance in place
13. agreed to the payment terms and conditions 14. included for preparing of designs and drawings
15. allowed for site measurements or providing templates
16. included for receiving and handling of materials supplied by the contractor or the client
17. not incorporated any unsuitable or unacceptable conditions 18. sufficient resources available to do the work
In addition: \s1. check what additional costs will be incurred for items excluded from the subcontractor’s price, or for services, facilities and equipment which the contractor must supply \s2. take into account additional travel or supervision costs which may be incurred to inspect the manufacturing process
3. compare the quotes with the allowances in your tender
The quotes must be adjudicated fairly, allowing for all additional costs.
Talk to suppliers and subcontractors about a deal.
Using the same suppliers frequently and visiting them to introduce yourself, your company, your current initiatives, and how they can help you and gain from the connection are effective ways to build relationships with suppliers.
The majority of suppliers provide varying trade discounts to businesses who make repeated purchases from them. The amount of business the company generates is frequently a factor in these reductions. Always request a reduction.
It's usually a good idea, when feasible, to place the entire order at the start of the project and then arrange the delivery at intervals over the course of the project. A large order may result in a lower price compared to multiple smaller ones.
Most suppliers are happy to give discounts for paying in advance, but it's crucial to do it before the deadline because paying even a day late might result in the discount being lost.
Having good connections with your suppliers and paying them on time will typically lead to better service, more accommodating payment terms (which improve cash flow), and sometimes even discounts.
However, it's crucial for contractors to regularly verify that their trusted suppliers are offering the greatest service and the most affordable costs, thus it's imperative to also acquire estimates from other providers.
Orders
Orders that are poorly drafted or incomplete may result in the delivery of the incorrect material or the project paying more than was originally negotiated.
Orders must be: 1. explicit and clear 2. provide a project name
3. include the order's date
4. be examined to make sure the quote is accurate. Add an order number in 5.
6. have the name and contact information for the provider 7. Give the product a thorough description; 8. List any requirements for standards, specifications, or drawings; and 9. Provide any unique production instructions or details. 10. Include a delivery date.
11. Specify how the item will be transported (if the supplier is providing the transport include the full delivery address, instructions and a map)
12. Specify who will be in charge of unloading and stacking in the case of bulky objects.
13. Include the product price, together with information on the unit of measurement and any additional costs.
14. Specify the trade discounts and payment terms Include the needed warranties and spare parts in 15. Include the address where bills must be issued in 16.
17. Specify the order's author's name and contact information.
18. be authorised person-signed (this may depend on the value of the order, since personnel are often allowed to sign orders only up to a particular value, and more senior management are required to sign orders with a greater value)
19. be recognised by the supplier as proof that they have received and accepted the order.
solely labour subcontractors
Orders for labor-only subcontracts must be precise and explicit to prevent unforeseen expenses. These agreements should state:
1. what is covered by the salary costs, including: 1. Compensation
2. Paid time off; 3. Paid holidays 4. rewards
2. the terms of overtime pay and when they apply 3. who from the contractor will approve the number of hours worked each day and who is in charge of providing personal protective equipment
5. Who pays for mobilisation, inductions, and medical expenses?
6. who provides and covers the costs of travel and lodging 7. Who pays to replace employees who are not suitable?
8. who is in charge of enforcing discipline? The subcontractor must employ the following wage agreements: 9. The necessary insurances 10. 11. unique project guidelines and working times
orders from subcontractors
Poorly written subcontract orders that fail to clearly define the obligations of the contractor and the subcontractor can result in additional expenses, claims, conflicts, and unhappy parties. Subcontractor orders must be precise, explicit, free of conflicting terms and conditions, and they must contain the following:
the scope of the project; and, where applicable, the use of drawings. 3. a mention of the precise requirements
4. the testing, documentation, and quality assurance methods 5. the prerequisites for safety
6. Particular and unique project-related circumstances, such as customised labour agreements and conditions
7. the schedule, emphasising important dates and any gaps in the work of the subcontractor.
8. Commissioning specifications
9. Required spare parts, warranties, and guarantees
10. terms for making payments and submission of values 11. mobilisation prerequisites and processes
12. paperwork needed before work begins
13. Requirements for warranties, sureties, bonds, and guarantees 14. samples are necessary
15. the necessary shop drawings, their submission specifications, and the approval time and procedure
The contractor's right to request that inappropriate subcontractor personnel or equipment be removed from the project; the documents needed to close out the contract; and the fines or liquidated damages that apply in the event of non-performance.
19. the ability to alter the work performed under a subcontract, including scope reduction terms of termination 20
21. Each party's obligations
22. the agreed-upon fee (include a breakdown if necessary or reference pertinent rates)
23. guidelines for lodging changes
The contractor and the subcontractor's authorised representatives must both sign the contract.
control of subcontractors
A subcontractor must be controlled after they are hired. Both the contractor and the subcontractor may incur costs if this is not done.
Subcontractors that are not properly managed can lead to the following:
1. Poor craftsmanship that must be redone, causes schedule delays, and costs money to fix.
2. Costly and time-consuming contractual conflicts
3. The contractor might not be able to get the money back if the subcontractor was overpaid. 4. Another subcontractor would need to be hired to finish the job at an additional expense if the subcontractor abandons the project before finishing all of their work.
5. The project timeline and other activities will be impacted if the subcontractor is late.
6. Someone might be hurt by the subcontractor.
7. If the subcontractor employs subpar materials or products that don't match standards, they will need to be changed, adding time and money to the project.
8. Instructions should be delivered in writing explicitly to avoid miscommunication, which might lead to the subcontractor performing work wrongly.
9. The subcontractor may charge standing time if access is not granted promptly.
10. If the contractor had chosen a different subcontractor to complete the job or had the chance to bargain with the subcontractor, the work may have cost less than it would have if the subcontractor had been given the go-ahead to undertake it.
11. Failure to make sure the subcontractor cleans up after themselves costs the contractor money, and unresolved trash might be dangerous.
12. If final payments are made before the subcontractor has finished all punch lists and produced all documents and guarantees, they may be received later or not at all.
Additionally, since the customer considers all work on the project to have been completed by the contractor, even if it was by a subcontractor, subpar performance by subcontractors will harm the contractor's image.
Materials
Because they don't fulfil the standards or quality criteria, improperly managed materials might lead to waste and unnecessary expenditures (in particular, care should be taken that imported goods meet the local building codes)
2. The product was refused since the client's authorization to utilise a certain product wasn't requested or given.
3. they employ products that don't meet standards; 4. they don't have enough insurance to cover damage or theft 6. They are too heavy to be handled and installed with the lifting equipment already in use, causing delays and additional expenses to mobilise other equipment. They are too huge and cannot be installed.
7. The item requires a lot of effort to handle, has poor lifting points, or is packed improperly
8. It is challenging to fix the item in place because insufficient measures have been taken to guarantee that it can be secured and kept in place throughout construction, which causes delays and increased expenses.
9. Materials are not sufficiently shielded from impacts or weather damage during shipment or installation, resulting in damaged items arriving on site and potentially causing delays.
10. A surplus or a deficiency of material results from ordering the wrong amount of stuff.
Plan and coordinate delivery.
Due to poorly planned or coordinated delivery, projects can incur additional expenditures.
These expenses derive from:
Due to the lack of sufficient offloading equipment, there are vehicles waiting to be unloaded. 2. The unloading area is not yet prepared.
3. The unloading place doesn't have a good access route.
4. There is no documentation, such as risk assessments or lifting studies.
5. No personnel available who would be needed to offload
2. Materials being unloaded in the wrong spot, necessitating two people to transport them to the right spot.
3. Because they are the improper size or type of truck, trucks are sent back empty. 2. The product is not ready.
4. The delivery vehicles are too large or difficult to manoeuvre to reach the place. 5. vehicles arriving at the wrong delivery or pickup location 6. materials coming out of sequence, with the necessary items arriving last 7. materials arriving late 8. materials arriving too early and having to be handled twice
decrease waste
In every project I've worked on, there have been extra supplies left over at the end. These frequently originate from:
1. placing an order for too little material 2. placing several orders 3. ordering material that has the wrong specification or size
4. The stuff provided was of poor quality and was useless
Of course, there are times when the client changes the drawings after the material has been ordered, in which case the client should be charged for these changes and given ownership of the surplus materials.
Other factors that lead to waste include:
1. Material breaks as a result of damage sustained during handling, unloading, shipping, or improper installation techniques. By altering the way the material is packaged, handled, or transported, some damage may occasionally be prevented. For example, if the supplier palletizes the material, which might come at an additional cost, there will be less breakage and it will be easier to dump and handle the stuff, which will save expenses.
2. Material contamination, which is a specific issue with concrete aggregates or materials used in the construction of roads. These materials get polluted when combined with other materials or when they are thrown on the ground. When trucks aren't thoroughly cleaned between products, the following product may be contaminated. On sometimes, products are handled improperly at the supplier and turn out to be tainted.
3. Misapplication of products due to improper preparation or mixing of the ingredients, which necessitates redoing the task.
2. The product might have been applied too thickly; for example, concrete slabs might have been formed and poured too thickly, paint and epoxy coatings might have been applied too thickly, or joints might have been made too wide, necessitating the use of additional sealant material.
4. More product is combined than can be used, necessitating the discarding of the extra product.
5. Improper storage might expose goods to moisture, dust, or heat damage.
6. Keeping products past their sell-by date, which necessitates discarding the product.
7. Materials on a project may be misplaced or destroyed if they are trodden on or run over due to poor housekeeping.
8. Materials are provided in conventional lengths or sizes, and they often need to be cut to suit where they are needed. The offcuts frequently have no other use. The amount of these offcuts might be significant if consideration is not given to the optimum acceptable size.
The project will incur additional expenditures for: 1. the purchase of the extra materials and their transportation to the site; and 2. the handling, processing, and storage of them.
3. The expense of removing extra, damaged, or contaminated materials, which comprises:
loading and handling first Transport 2.
3. disposal fees
Alternative components
Utilizing other materials might occasionally result in cost reductions because: 1. They are less expensive. 2. They are simpler to install. They need fewer fasteners because they are lighter and smaller. 3. They're simpler to manage
4. The dimension is more practical
3. A different size decreases waste as a result of: 1. There will be fewer job cutbacks
2. Lessening and shortening of offcuts 3. There are less laps.
4. They won't sustain as much harm from handling and transportation. 4. They lower the cost of transportation.
5. Less breaking may occur during handling, installation, and transportation. 6. They could last longer, which would save future maintenance expenses.
7. They might expedite the installation process, reducing the schedule.
Utilizing other materials could also provide additional advantages, such as the following:
1. be less dangerous to use and install 2. offer a superior finish
To utilise a new material, it is often essential to have the customer's consent; however, if doing so results in higher design expenses, the client may be reluctant to do so. However, using these materials is frequently advantageous for the project, in which case the contractor must show this or, failing that, provide the customer with a discount.
Compatibility of the materials
There may be a discrepancy between the quantity of material provided and the quantity invoiced to the client. This discrepancy might be caused by:
1. The client is receiving an invoice that is too low 2. Materials being taken from the site or while travelling there 3. Wastage of resources
4. Excessive material application
5. Suppliers issuing invoices for more than what they provided
6. Materials are combined in the wrong ratios
Reconciling documents on a regular basis will help inconsistencies be found early, allowing for action to be done to stop more losses and potentially even recoup the losses already suffered.
Pricing rises
For the vast majority of lengthy projects, price rises are unavoidable. The effects of these increases might be lessened by:
1. Knowing when the price increases will occur
1. Request information from vendors on the timing of price increases.
2. Prices are changed simultaneously across numerous sectors each year.
3. Being aware of any outside factors that could raise the price of a product, such as fluctuating exchange rates and price increases for labor, raw materials, or fuel
2. It would be feasible to acquire the outstanding material before an increase takes effect and:
1. Keep it on the spot
3. Store the item somewhere else after asking the supplier to do so.
These options are more expensive and impractical since they might result in material becoming weather-damaged, having to be handled twice on the job site, or requiring extra storage space.
3. Although there may be a premium to pay, it is occasionally feasible to ask the supplier to fix the price when the order is submitted.
substitute transportation
It is generally worthwhile to consider alternatives because transportation costs can account for a sizable portion of the price of goods. It is occasionally possible to use transport to pick up materials from a nearby or adjacent firm that has vehicles that are returning empty.
However, when planning transportation, be sure to: 1. consider the type of vehicle, as some trucks might not be appropriate (for instance, the item might be too wide or long for the truck, or if the truck doesn't have sides it could be inappropriate for the load).
2. the vehicle's capacity (you may think you are paying less for a load when in fact its capacity is less)
3. The products are insured
4. How straightforward it will be to offload the car
5. the time of delivery (some trucks could only be scheduled to arrive late, even after hours, or have a longer travel time)
6. the cars' roadworthiness (un-roadworthy vehicles might not be allowed onto site and in addition they are at risk of breaking down or being involved in an accident)
7. Any additional fees or restrictions, such as those relating to standing time or the amount of time allotted for loading and unloading the vehicle
8. that the cargoes arrive at and depart from the site without stopping in a staging area, where there is a risk of theft or damage as they may be unloaded onto other trucks.
Employment productivity
Labor is frequently a significant contributor to project costs. It sometimes represents more than 50% of the expenses, thus even a 10% increase in productivity can provide an extra 5% profit. Of course, the opposite is also true; if labour productivity is 10% lower than anticipated, profit will be 5% lower.
However, it usually goes beyond just the workers' direct expenses.
Low productivity leads to a need for more workers, which raises the cost of housing, transportation, mobilisation, and monitoring. Poor productivity also has an influence on the timetable, which may lead to fines from the customer for late completion as well as higher overhead expenses for the contractor.
When workers are idle on a job site, poor labour productivity can be seen. However, the low productivity is frequently overlooked until schedule delays or labour losses are evident in the cost reports. Usually, it's too late to fix the issue at that point.
Analysis of the causes of the low productivity is essential. The adage "a busy worker is a happy worker" has some merit. The tendency of idle workers is to talk to their coworkers, even interfering with and distracting from those who are working, and beginning to notice and cause issues where none previously were.
Ineffective productivity could be caused by: 1. having too many people working on the project; 2. having an overcrowded or untidy workspace; and 3. inadequate supervision
4. awaiting entry to the workspace
5. awaiting supplies or equipment
6. using the inappropriate tools or supplies 7. Equipment malfunctions
8. insufficient machinery for lifting and moving materials 9. Materials that are challenging to handle and work with 10. An imbalance of resources between two trades that forces one to wait for the other to do its task
11. Insufficient skill levels among employees
12. Employees may be unhappy due to poor working conditions or conflicts with their manager or other team members, which frequently causes them to complete tasks slowly.
13. Bad behaviour
15. The project is not planned and coordinated, and the actions of the customer and the subcontractors have an influence on the job 16. Protracted meetings with employees or with supervisory staff
16. sloppy housekeeping and safety leading to: 1. Lost time as a result of events
2. The project's cancellation owing to inadequate safety 3. mishaps that undermine morale
4. Important individuals becoming hurt and unable to operate 5. work is completed more slowly
17. exhaustion (it's crucial to prevent employees from working excessively long shifts or on rest days and project breaks)
18. a high staff turnover that is disruptive and results in low production since new staff must learn the project's rules, systems, processes, and duties and collaborate with new team members
19. Workers are regularly switched between duties during the day, which leads to:
1. lost time from packing up their tools, moving, and going through safety instructions and task clarifications
2. decreased productivity since they can't get to know the job or the other team members (there is a learning curve to most activities, and as workers become used to executing a task, they often become more proficient and more productive).
20. Management lacks decisiveness and fails to act quickly
21. Poor planning results in blocked or restricted access routes and roads 22. Poor planning results in unsafe or inaccessible storage and stacking areas
23. There are significant distances between offices, retailers, restrooms, and work places. Poor work from subcontractors is number 24, while number 25 is inadequate illumination, which makes it hazardous and impossible to monitor quality and leaves dark regions where employees cannot be seen.
26. Employees don't always work their full shifts; they may take longer lunch and tea breaks and show up and leave early a few times a day. Project managers must set a good example by keeping good track of their own time and enforce this on the project from the beginning because this can add up to thirty minutes per employee every day.
27. Unfavorable weather conditions, such as rain, wind, hot and low temperatures (measures can be made to minimise the interruption, such as relocating personnel to different
areas, providing sufficient protective clothing, allowing enough rest breaks, reducing work hours, planning projects to ensure that much of the work is completed before the onset of bad weather, making buildings weather-tight as soon as possible, and lifting objects during the day when it's less windy)
Poor productivity can occasionally be the client's fault. To put actions in place to correct the issue or to submit modifications for the additional expenses the customer incurred, the causes must be determined. Possible causes include:
3. Lack of access or late access 4. Late information 5. Drawing changes resulting in rework
4. Activities of the customer or their subcontractors that have an influence on the task
Making supervisors and project managers responsible for the output of their employees is crucial. On every project across all sections, labour productivity should be tracked. Feedback must be given to managers and employees, and ideas for raising productivity must be presented.
Pay the proper salary.
The industrial relations agreements that control the project must be read and understood by project managers. These may contain project, union, and corporate agreements as well as the current labour laws. Wages and working conditions for employees must be in conformity with the applicable agreements, which vary often across projects.
Many projects incur additional costs because they don't properly manage the hours and pay of the staff. This could be due to: 1. The hours the staff works aren't recorded; 2. People aren't paid the correct overtime rate or the rate is applied incorrectly; or 3. When individuals are not at work, they are not recorded as being absent (including annual and sick leave) 5. Wrong rates are paid to persons
6. The incorrect deductions are made from their pay 7. Tax deductions aren't applied correctly and in accordance with the most recent legislation 8. People get allowances to which they are not entitled, and 9. When employees are transferred to another project, rates of pay or allowances are not modified.
10. People willfully lie about their attendance 11. Timesheets are completed incorrectly
12. Employees leave the office before their shift is finished
Occupational relations
In accordance with the project labour agreements and labour laws, management must implement its industrial relations policies in a fair and consistent manner. Failure to do so might increase corporate expenses because:
1. Employees are overpaid, which: 1. drives up expenses; 2. makes underpaid employees dissatisfied, which lowers productivity
People are underpaid, which causes: 1. their unhappiness, which lowers productivity; and 2. their underpayment. 2. Time spent by management to address the issue
3. In certain cases, legal challenges that require time and money to resolve 3. Inconsistent or incorrect application of regulations leading to poor discipline that: 1. affects project safety 2. requires management time to address when there are problems 3. affects the brand reputation of the business; 4. affects productivity
4. When disciplinary procedures aren't followed properly, persons are unfairly fired, which results in: 1. the person being rehired and receiving pay for the period they weren't working 2. legal expenses
3. Inefficient management time 4. Lack of discipline among coworkers once the fired employee is reinstated
Businesses should: 1. implement appropriate industrial policies and procedures that are compliant with the law; 2. train management and supervisory staff on how to use these procedures.
3. Ensure that projects are informed of any changes to legislation and that corporate rules and procedures are updated accordingly.
4. Ensure that all employees follow these guidelines consistently and fairly.
control extended
Projects frequently work overtime or on weekends and federal holidays. These extended hours are often compensated at overtime rates, which can range from 50% to double the regular rate. It is obvious that the workers are not twice as productive during this time, or even 50% more. In reality, the contrary is typically true, as productivity decreases as weariness sets in. Additionally, part of the management and oversight may be missing during this period, which might lead to inadequate management and supervision of the workforce.
If overtime isn't strictly monitored, employees may occasionally work on the weekend for overtime or penalty pay while taking a day off during the week that would have been compensated at regular rates.
Weekend employees may lack self-control, show up to the job inebriated, or work fewer hours than they claim to have.
Another issue with working after hours is the possibility of critical individuals being missing; for example, if the crane operator decides not to work, other workers might not be able to complete their tasks.
Therefore, it's crucial that, when overtime is required, only the work that needs to be done after hours is carried out.
2. Only individuals who are necessary for these duties are permitted to work 3. The hours are meticulously tracked and supervised 4. Adequate supervision is present
5. The workspaces and tools are easily available 6. Important personnel are present 7. Individuals' hours are watched to make sure they don't go over the legal limit or the hours necessary for the project 8. Workers are watched to make sure they don't get tired
9. Pay is accurate and in line with established overtime rates for employees
The customer is aware that work will be done after hours, and everything is set up for transportation and access to the site. The project does not violate any noise limitations or other comparable laws or regulations.
Equipment and property damage
When equipment or property is destroyed, many projects incur extra expenses that are unnecessary.
When equipment is utilised by unauthorised, unapproved, or improperly educated personnel, damage may result. 2. is run by individuals who are impaired by alcohol or drugs
3. is employed in the wrong context 4. is not properly maintained 5. is overloaded 6. is installed with the improper components or has the wrong lubricants or fuels in it
7. is not examined for worn or damaged parts
8. is used in hazardous or inappropriate work environments where it might be struck by an object, topple over, or become stuck. 10. Is parked with its keys in the ignition, allowing for unauthorised use or theft. 11. Is parked in unsafe areas at the end of the shift, where it might be flooded or damaged.
12. works without a spotter in situations where it is forbidden
When returning from a break, operators either fail to check the machine to make sure it is safe to use or fail to consider whether any circumstances have changed that could affect the equipment's ability to operate safely.
15. is operating when in close proximity to humans and other machines, unaware of them
16. Operators show negligence
Equipment should be parked and stored in a secure area because theft and vandalism also incur extra costs.
Additionally, I've seen instances where operators purposefully harm their machinery out of dissatisfaction with the business, the supervisor, or management, or in an effort to delay the project.
To minimise potential interactions between various pieces of equipment that could come into touch with one another, tasks must be planned and managed.
Delay hiring of items
Projects frequently fail to defer the hiring of things when they are no longer needed. The item may also still be on rental if providers are only orally informed that it is no longer needed and there is no written record of this.
Small tools are frequently hired, completed the task, and then placed in the project store or supervisor's office where they remain for weeks or months. In some cases, they even stay in the office when they are transferred to the next project. The cost of hiring grows over time and becomes substantial.
externally contracted machinery
Because of: 1. Failure to notify the supplier in writing of breakdowns, projects frequently incur additional unnecessary hire fees
2. The time sheets fail to include the breakdown hours. 3. The time sheets are not approved and agreed upon each day.
4. Unused hours, such as lunch and tea breaks, were scheduled. 5. The item didn't put in the required number of hours.
When the item is returned to the supplier, the contractor is later charged for repairs made to worn or damaged parts like cutting edges and tyres. 6. The item wasn't inspected for damage or wear when it arrived on the project. 7. The contractor performs maintenance and repairs that the supplier was supposed to perform. 8. Additional insurance is added to the hire cost even though the item is already covered by the contractor's own insurance.
9. The contractor failed to read and comprehend the hire agreement's terms 10. The supplier wants the identical item to be returned to them with the fuel tanks full, despite the fact that the level in the fuel tanks was not verified and documented when the item arrived on the project (on large equipment these tanks could hold several hundred litres of fuel)
Reduced charges can be negotiated for bad weather, low usage, and site closures.
It's advisable to make a deal with the supplier that hire isn't charged during downtime, such as long weekends or builders' breaks, when there are a lot of items on hire or when there are expensive hire items. The things might also be put on hold during these breaks and then rehired when the project picks back up.
When placing the order, ask the provider for discounted prices or even no fee for times when the item cannot be utilised due to bad weather.
In a similar vein, determine the minimum daily, weekly, or monthly hire hours the equipment supplier requires and confirm the project is able to provide these hours.
Equipment effectiveness
It may be expensive to hire plant and equipment for some projects, including earthmoving ones, and increasing its productivity can boost project profitability.
Unproductive equipment: 1. can have a negative schedule impact
2. might necessitate the addition of more equipment to the project; 3. makes the existing equipment operate for longer periods of time.
4. repercussions on labour productivity of:
1. causing operators to put in more hours 2. calling for more operators
3. delaying and hindering other workers' efforts and activities
Plant and equipment's low productivity is caused by: 1. there is inadequate or incompetent monitoring 2. the location is overcrowded or cluttered 3. awaiting entry; 4. awaiting supplies or equipment
5. Equipment malfunctions
6. Negligent operator behaviour
7. the project is poorly planned and managed 8. there are frequent meetings with operators or supervisory staff 9. inadequate safety
10. Operator exhaustion that causes accidents or l