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 low productivity

11. Unskilled or novice operators (they may operate the machine slowly or not at its full production)

12. A high operator turnover rate

having the wrong machine or one that is too weak for the job, as well as using machines for improper tasks

15. Time is lost as a result of machine movement between jobs and operator reorientation. 16. Management is indecisive and doesn't make prompt judgments.

17. Roadways and access points are inadequately designed, resulting in obstructions or restrictions 18. Workspace lighting is insufficient

19. Operators frequently take lengthy lunch and tea breaks, show up to the job site a little bit late, and leave a little bit early.

20. Unfavorable weather conditions like rain make roads slick and equipment get stranded

21. The item is not properly rigged or set up, or the proper tools or attachments are not being used.

22. Incompatibility of equipment components that are interdependent (for instance, the correct size and number of trucks must be matched to the size of the loading excavator as well as to the task and site conditions)

23. Inadequate planning for periodic maintenance and refuelling

Theft

In some places, theft may be a serious issue, therefore it's critical to have adequate protection in place. The immediate expenses of replacing the products as a result of theft

2. the price of handling and transporting the substitute items

3. The item not being available (for instance, employees who have their tools taken are often unable to work, and an excavator whose battery has been stolen may have to wait for hours or even days for a replacement).

4. deviations from the plan

5. To install the replacement component, specialised tradespeople may need to return to the project at an additional cost.

Prevent issues before they arise.

If the contractor's management team foresaw issues and took action to prevent them from occurring, a significant chunk of additional project expenses may be avoided. Some of these issues could be brought on by:

1. Inaccuracies in the designs or the client information 2. late sketches or information

3. The client's approval of shop drawings or designs takes longer than it should

4. Materials not being delivered on schedule 5. Not ordering materials

6. Subcontractors who execute poorly 7. Incorrect or low-quality materials supplied 8. Restrictions on access

9. Unsatisfactory work 10. Not enough resources

11. Issues with labour relations 12. Security worries

13. Difficulties manipulating materials

If the contractor organises the project well, selecting an appropriate construction approach, arranging access, creating an efficient timeline, and having enough workers who are appropriately qualified, many of the concerns may be avoided. It will also be easier to avoid issues if the project and each individual task are adequately prepared.

Different designs

Consider other ideas that could: 1. reduce construction time and schedule 2. make construction safer 3. require less resources to complete

4. be built using equipment that the company owns or is easily accessible

5. be built with fewer skilled workers or with workers whose talents are easily accessible.

6. improve the quality

7. Choose materials that are inexpensive or easily accessible.

With instance, by switching out concrete constructions' structural components for precast modules, it could be able to construct the majority of them off-site and install them with fewer qualified workers. A relatively little alteration, such as altering column sizes to fit standard formwork, can occasionally result in savings with little to no effect on the design.

More significant changes might necessitate the contractor paying design fees and taking on some design risk. The advantages must be carefully weighed against these added risks and expenses.

service coordination

Coordinating the installation of services can be crucial on many projects so that:

1. Services don't conflict, which frequently leads to:

1. Delays while other routes and solutions are being thought of

2. extra expenses incurred when the already-installed service must be rerouted to make room for the other services.

2. The necessary utilities are placed first, such as the deepest subterranean services, before the others.

Structures take the services into consideration and allow for all penetrations and other requirements. 3. When subterranean services share a same path, they are placed jointly before the trench is closed.

5. In some circumstances, the same access scaffolding may be used.

Set up services properly

Quality issues are frequently caused by improperly installed services during construction or, in certain situations, even after the project is complete.

Services should: 1. be installed in accordance with the project specifications in order to avoid issues

2. be installed by professionals with the necessary training, who should be overseen by experienced managers.

3. be examined to make sure there are no leaks or problems before being covered over. 4. possess appropriate corrosion protection

5. be level and fitted in the proper location 6. be securely fastened so they cannot go unfastened

7. be precisely noted on as-built drawings and, wherever feasible, on the ground so that they may be found by subsequent trades and avoided being destroyed.

Poorly installed services result in: 1. Higher repair costs

2. Water pipes that rupture can flood buildings and cause further harm 3. causing more finished work to be harmed during repairs; 4. embarrassing the customer

5. Disruption of the client's operations

6. risky circumstances, especially those involving damaged electrical lines, ruptured high-pressure pipes, or gas mains

When badly installed services had to be restored, or in certain circumstances, when the service had been accidentally omitted, I frequently had to spend a lot of money restoring completed portions that had been harmed.

Deterioration of current services

When excavations are being done, existing services are frequently destroyed. Clients really frequently make the joke that if they are unsure of the location of the subsurface utilities, they should hire a contractor, who will immediately dig them up. Of course, the contractor won't find this amusing, especially if they break a fibre optic cable that will cost thousands of dollars to fix. In reality, it's clear that contractors don't want to compromise current services because:

1. Repair expenses can run high

3. Work is frequently delayed until the repair is made, which could take several days, because there is a risk of electrocution when a high voltage electrical cable is damaged.

4. Frequently, a cable is damaged unintentionally but continues to function, and only after the contractor has finished installing concrete floors does the cable fail, necessitating the need to disassemble the finished work in order to fix the problem.

5. The facility can lose power for several hours or days if an electrical cable supplying it is destroyed, which would affect the timetable and production.

6. If the contractor interferes with the client's services, the client and nearby businesses will be unhappy.

Before excavating, drilling, cutting into, or demolishing any buildings, the contractor must: 1. Obtain all required permissions;

2. verifies that all available services have been located.

3. These services should be clearly marked (I can't tell you how many times we've damaged known services because they weren't marked).

4. if possible, safeguards the services

5. makes sure all newly installed services are prominently indicated on drawings and the ground.

6. guarantees that employees are informed about the services and take precautions not to harm them.

7. Makes the danger of harming the services crystal obvious in risk assessments and prestart meetings.

8. employs individuals who are skilled and well trained, preventing them from accidentally using an equipment in a way that harms a service.

Damage to services includes overhead services as well, and the contractor is responsible for taking precautions to prevent construction equipment from getting too close to overhead power lines or other structures, which could cause a fatal accident.

protection of new construction and old structures

Projects frequently suffer additional expenditures due to fresh work being harmed by subsequent trades. The effects of this damage include: 1. increased repair costs

2. Employees are diverted from other activities to complete the repair, which might affect the schedule

3. Potential delays in section handover (particularly if a replacement item has to be ordered, and it has a long-lead time)

Case study: While working on the finished roof on one of my projects, someone damaged a roof sheet. The three centimeter-long hole required the replacement of the entire sheet. The issue was that the forty-meter-long roof sheet had been rolled on the job site by a specialised equipment that had since disappeared and had not been used for several months. Additionally, a number of the sheets had to be taken out to replace the damaged one due to the way they were arranged. We had to spend many thousand dollars to restore the damage due to one worker's carelessness.

To lessen the possibility of finished product being harmed:

1. Arrange the work so that tasks requiring heavy equipment are completed first and items that are easily damaged are installed as late as possible.

2. Encourage all employees to be proud of their work and that of their coworkers while taking care not to tamper with the final result.

3. Whenever feasible, shield completed products

4. Prestart meetings should reiterate the importance of caution and highlight the strategies to be used to safeguard the completed work.

Quality

Poor craftsmanship and the improper application of quality management systems may incur additional expenditures because

1. Rework is required

2. It causes a scheduling delay while subpar work is replaced, which 1. might carry penalties

2. raises overhead expenses

3. effects on related jobs and trades

3. tearing down subpar work generates expensive trash; 4. redoing work diverts resources from other duties.

5. Rerunning failed tests is expensive and time-consuming.

6. When faulty work is discovered after the project has been finished, the contractor must return to the site to make repairs (which frequently cause the client's operations to be disrupted and force them to be done after hours, increasing the cost).

7. Tests are carried out incorrectly or more frequently than necessary 8. Tests must be repeated because they were improperly seen or documented

9. Because the repairs weren't done correctly, they had to be redone.

10. The quality processes and documentation are too complex and time-consuming to deploy, which pushes back the timeline and requires more staff.

1. A project quality strategy must be in place and adhere to the project criteria and laws to minimise additional expenses brought on by poor quality or improper quality system implementation.

2. The project's quality systems and documentation should be put in place right away.

3. The management shouldn't put up with subpar work

4. Every employee must be aware of the required quality standards and take pleasure in their job.

5. Only qualified personnel should be hired

6. Suppliers and subcontractors must be aware of the necessary paperwork and quality standards and be able to meet them.

7. Verify that the work and supplies adhere to the requirements and

requisites for quality

8. Testing must be carried out in line with the requirements and quality plan, and it must be overseen by qualified individuals who are properly educated and equipped. The equipment must be calibrated in accordance with the supplier's recommendations.

9. Repairs of faulty work must be done appropriately; 10. Setting out must be completed in accordance with the designs, verified against existing structures, and questioned if there are any concerns about its accuracy.

11. Personnel must correctly interpret drawings, use the most recent revisions, and voice any concerns or ambiguities they may have about the information.

12. In order to satisfy the quality standards, workers must have access to the necessary tools and equipment.

13. Implementing work techniques and processes will make the building as straightforward as feasible and, to the extent practical, will reduce the potential of shoddy work

14. Proper handling and storage of materials are required to prevent damage.

15. Installation of materials and equipment must follow the manufacturer's recommendations.

16. Work locations must have sufficient illumination.

The consequences of their errors must be understood by the staff. The necessity of producing high-caliber work must be emphasised from the very beginning of the project.

Of course, there are situations when the issue isn't necessarily with the quality but rather with the client's irrational expectations of the level of quality they would receive. This can be foreseen and prevented by:

1. sending samples before work begins and getting the client's permission to use them

2. creating prototypes or mockups for the customer to review

3. Persuading the client to accept work as it is done so that corrective action can be taken quickly if it isn't up to par.

4. If the client has requested less expensive finishes or materials, inform them that doing so may lower the final product's quality.

For each piece of flawed work, non-conformance reports must be created to assure

that the flaw is fixed properly and the issue doesn't come up again. The cost of subpar work should also be tracked because many employees are unaware of how expensive their errors are.

good documentation

It can cost money to either not perform the necessary tests and inspections or to not keep records of them.

research case

Our business built a big brand-new airport. The installation of several kilometres of fuel lines from the fuel storage area to the aircraft parking areas was part of the contract. Steel pipes about 12 metres in length were welded together to form the line. The client requested the quality documentation for the fuel line a few months before the airport was scheduled to be finished. Each pipe weld underwent an x-ray as part of the quality control procedures. The x-ray records, however, were nowhere to be discovered.

The gasoline line was an essential part, and leaks would be dangerous for everyone, harm the environment, and waste valuable fuel. The customer insisted that every pipe joint be exposed and re-radiographed. By this time, the line had been shut down, and a large portion of it had been under the finished concrete taxiways and aprons for aeroplanes.

Several hundred thousand dollars were spent on the regions' excavation, re-x-raying, and reinstalling. To make sure the task was timely completed and didn't delay the airport's opening, more resources were pulled from other projects.

In all of this, there were several rumours in the media, and the negative publicity persisted even after the project was finished.

The quality documentation must: 1. be straightforward and simple to complete; 2. be completed while the job is being done.

3. Adhere to the demands of the client and the specifications

4. not be done only for the sake of filling out paperwork; the person filling it out should physically verify the products to ensure they adhere to the specification.

5. Request that the contractor keep a copy when the contract is over (I have had cases of the client misplacing their copy resulting in us having to replace it)

6. Provide for the recording, examining, and monitoring of non-conformances and deviations

7. Add duplicates of each test

Make sure repairs are completed properly.

I frequently witness hurried repairs and rectification work being completed after hours, sometimes even in secrecy. This obviously leads in increased expenses and is undesirable.

1. Correct repairs must be made in a way that preserves the structure's structural integrity and is also visually pleasing. Repairs that were poorly done must be redone, sometimes during the construction phase and sometimes after the project is finished.

2. Usually, the client's representative must accept the repair procedure and observe it; if they don't, they'll frequently demand that the job be repeated.

There are frequently several solutions to a problem, and the contractor must choose one while taking into account:

1. the aesthetics of the repair (a patch job is frequently less expensive, but it may look terrible and serve as a constant reminder to the client of the contractor's error).

2. The price of the repair, even though the lowest option isn't always the best

3. the robustness of the patch (you don't want to have to go back and fix the issue again).

4. the project is delayed by the repairs 5. Activities of the customer are interrupted

6. The client's consent to the repair strategy 7. The solidity of the building

The greatest course of action is occasionally to entirely destroy the building and rebuild it right.

Adapting current structures

Existing structures shouldn't be altered or cut into because: 1. Present services might be harmed

2. The building can get weaker and collapse.

3. partly demolished structures can be unstable while they are made good, or until new structures are completed (severe weather, additional loads or vibrations may lead to their collapse)

4. The machinery used for cutting or demolishing could impose excessive loads on the structure or cause excessive vibrations, which could cause damage or catastrophic failure.

5. the impact of falling debris onto existing structures can cause excessive loading and damage

6. falling debris can cause injury

To prevent accidents care must be taken to ensure:

1. all services are located and protected, isolated or rerouted \s2. an engineer checks the strength of the structure to ensure it will be structurally sound while sections are being demolished and rebuilt \s3. only areas approved by the designer are cut or demolished \s4. the remaining structure is adequately braced to allow for construction activities as well as for adverse weather conditions

5. the remaining structures and exposed areas are protected to avoid weather damage to the existing facilities

6. once all work is complete an engineer checks the structure before the temporary bracing or props are removed \s7. work is done by suitably qualified personnel who are adequately supervised and aware of what is required and the precautions that should be put in place

8. areas are clearly demarcated and barricaded both during demolition and while there are potentially unsafe areas, so that people and equipment aren’t endangered

Inspect existing property

Often work involves building new structures within an existing facility. At times access to the site is along current public or private roads. Some projects are adjacent to properties which may be affected by construction activities. In these cases there’s always the risk of the existing facilities being damaged by the construction activities. The owners will always expect their property to be in the same condition, or better, after the construction is complete.

To ensure the contractor isn’t liable for damage they didn’t cause, it’s important that a pre-construction survey and inspection is done to record existing defects and damages. This report should be handed to the owners before work begins, so that they have the opportunity to corroborate the defects.

In addition, the contractor should notify the owner if they see someone damaging the facilities, especially if there’s a possibility the owner may think the contractor has caused the damage.

At the end of the project the contractor should repair any damage that they caused, and then request the owner to inspect their property. If the owner is happy they should sign an acknowledgement that they’re satisfied with the condition of their property and the contractor isn’t liable for damages.

Photographs with date imprints are an invaluable form of recording both the pre-construction inspection and the post-construction inspection.

Survey of existing structures

Often contractors work on structures built by others. It’s important to verify that these have been constructed in the correct position and to the correct height. Some of these checks may include:

1. verifying bolts and other imbedded items are the correct size and are in the correct position

2. checking excavations are the correct size, depth and in the right location

3. ensuring earthworks terraces and embankments are at the correct level and location

4. making sure the area is safe – this particularly applies to deep excavations 5. checking that the structures comply with specifications

6. noting pre-existing damages to the structures

Failure to detect and report these errors in writing may result in the contractor redoing the work at their own cost. In addition, if earthworks levels are incorrect the contractor could use more materials than they had allowed.

Before work starts the client must be notified in writing of the discrepancies and given the opportunity to undertake the appropriate rectification, or instruct the contractor to make the necessary modifications.

Avoid survey and layout mistakes.

Setting-out mistakes were probably some of the most expensive mistakes I've made on projects. These mistakes may result from:

1. reading or interpreting drawings incorrectly

2. using machinery that has been broken, hasn't been accuracy-checked, or hasn't been calibrated

3. utilising an incorrect layout marks 4. utilising false information

5. not verifying the location and correctness of the existing constructions 6. incompetent personnel

7. sketching mistakes 8 arithmetic mistakes

When structures erected in the incorrect location must be removed and rebuilt, or when subsequent constructions must be altered to fit the incorrectly built structures, these mistakes can have a significant financial impact. This frequently causes a project delay.

To prevent mistakes, make sure that:

1. Every setting-out is verified twice.

2. Survey equipment is routinely inspected and calibrated 3. Competent professionals are in charge of the plan.

4. Setting-out information is clearly provided to the individual performing the task, preferably on a drawing.

establishing management and control

Supervisors and subcontractors frequently make mistakes because they employ outdated requirements, faulty drawings, or erroneous revisions.

As a result of this

1. delays caused by needing to repeat work or ordering the wrong materials

2. extra fees for doing the task again

3. Staff morale is low since they must redo work 4. customers being irate

Refer to Module 5 for mitigating strategies.

Prevent penalties

Project managers are responsible for making sure the project has the necessary licences, permits, and environmental clearances. Without these, penalties and suspensions of work could be made.

All permit requirements, neighbourhood ordinances, and safety and environmental rules must be strictly followed. Failure to comply could result in fines as well as work being stopped, which is costly and results in delays.

The Project Manager must be knowledgeable on the regulations that apply to each project because permit requirements and legislation can differ between areas, states, and nations.

Fines can be charged on public roads owing to speeding, overloading, inappropriate loading, expiration of vehicle registrations and parking in restricted or limited time zones. When using business cars, all employees should be aware of their responsibilities and follow local traffic laws, which might change from place to place.

In addition to being fined for overloading, trucks are sometimes held until the weight is reduced enough to comply with the regulations. This necessitates moving a portion of the load to another truck, which causes:

1. the delivery's tardiness

2. charge standing time while the truck is being seized by the transportation firm 3. possible harm to or disappearance of goods during the reloading

process

4. the need for a second truck

5. To help shift the load, lifting equipment and employees must travel to the location where the truck is detained.

Finish projects properly

Incorrect project completion, including failure to complete all required paperwork and documentation, leads in higher costs because:

1. Due to the project's extension over the agreed-upon end date, fines or liquidated damages are sometimes applied.

2. Resources being used on the project for longer than planned

3. The failure to deliver resources to other projects when they are needed has a detrimental impact on those initiatives.

4. Longer client retention of retention funds and sureties 5. maintaining insurance coverage for a longer period of time

6. a prolonged stay by the contractor results in increased overhead expenses for facilities, lodging, transportation, and security.

Therefore, it's critical that the project's completion be effectively planned and organised to ensure that all tasks are done as quickly as feasible.

Close the last accounts.

The final account and contract cost must be agreed upon with the client as soon as the project is finished. This involves approving any changes as well as any fees, fines, or penalties the customer may want to add.

The client and contractor frequently remove workers from the project as soon as work is finished, making it challenging to get in touch with those who have the expertise and power to approve the final account. As a result, the procedure can take several months or more to complete. Additionally, it might be challenging to assemble the final accounting since contract documentation can become jumbled, lost, or stored when the site offices are demobilised.

Some products could be missed during the turmoil of demobilisation and not charged to the client.

Because the customer cannot make the final payment until the value has been agreed upon, the delay in accounting finalisation has an impact on the contractor's cash flow.

Punch lists and upkeep

As soon as the task is finished, punch lists should be created and completed. If you don't do this:

1. frequently causes project completion to be delayed

2. results in staff staying on after the project is over to handle the items, adding to the cost, which includes overhead expenses like lodging, transportation, and supervision.

3. postpones the payment of sureties and retention funds

4. increases the contractor's warranty time frame, increasing their liability for problems for a longer time.

5. frustrates the staff who are left behind to handle the stuff.

Items that are outside the scope of the contractor's obligation should be disclosed to the customer.

Vehicle and expense claims