CM 1011 Chapter 10, 11, 12 (Module 5)

To achieve quality results and maintain high safety performance, management must:

(1) install good quality plans (2) provide the proper field supervision (3) provide thorough inspections (4) make sure all workers are qualified (5) never accept inferior work (6) instill an attitude of high quality and safety throughout the company Quality and safety are ultimately achieved at the labor force level.

Functions of Feedback

(1) to detect variances between the actual cost, time, and productivity performance and the planned estimate and schedule, (2) to help the estimating team to adjust the databases for costs and productivity factors on future projects.

A Project control systems should use which documents?

* plans * specs * estimate * schedule

Quality in Construction

*3 Primary Element of Construction: 1. Cost 2. Time 3. Quality Foundation of this elements is SAFETY. *Quality impacts: 1. performance 2. will cost time and money 3. can cost lives or cause injuries *Quality affects safety. Quality & Safety plans can integrate to on management function.

The Quality Management Plan

*Goal is to produce products with a few defects/ failures and complaints as possible. This is accomplished how: 1. doing things write the first time. to accomplish this you will need: workers to have proper skills and experience, adequate supervision and proper tools 2. preventing things from going wrong. To accomplish this preparatory inspection are recommended. 3. continually improving the process To accomplish this a total quality management (TQM) is recommended.

Safety Management Plan: Hazard Prevention and Control - Hazard Mitigation Plan

*each project must be analyzed *accidents are possible and should not come as a surprise but rather be planned for (just in case)

Defining Quality

*meeting or exceeding the established requirements *Quality standard determined by the owners expectations (owners budget will effect quality of project)

Evaluating Performance:

*what worked and what didn't work on the project A few example questions: (1) Were the goals met? How did the field management team do? (2) What about the office team and its performance? (3) Were there issues with the owner that might prevent working with that owner again? (4) Were there issues with the designer that might prevent working with that designer again? And so on

Feedback Loop - 7 sources

1. Daily field reports 2. Time cards 3. Subcontractor billing statements 4. Delivery tickets 5. Material invoices 6. Equipment time tickets 7. Job logs

Project Control Cycle - 7 steps

1. Develop the project plan 2. Establish benchmarks (estimates and schedules) 3. Monitor performance (field data) 4. Identify deviations 5. Evaluate options 6. Make adjustments 7. Document report and evaluate

Risk Mitigation Strategies

1. Fully Accept Risk = Risk retention *Self-performance of certain aspects of the project 2. Avoid the risk = Risk Avoidance * Don't take on the project. Or, have the owner remove certain risky work from the project to be bid separately 3. Reduce the impact of the risk= Risk abatement *Offer the owner a different way of doing the risky work 4. Transfer the risk to others= Risk transfer. This can be accomplished via subcontracting and/or insurance. 5. Share the risk to minimize your exposure = Risk allocation. A joint venture will allocate risk. The risk mitigation plan is a dynamic tool that needs to be adjusted as construction progresses.

Identifying risks: 6 risk categories

1. Prebid Risks 2. Design Risks 3. Construction Risks 4. Political / Legal / Regulatory Risks 5. Financing Risks 6. Environmental Risks

9 Factors impacting project performance: Controlling project time and costs are basic characteristics of a successful construction manager. There may be a number of factors that can influence job performance.

1. Weather conditions 2. Quality of the workforce 3. Quality of supervision 4. Incorrect sequencing of work 5. Change order 6. Overcrowded job site 7. Defective materials 8. Inadequate tools and equipment 9. Late deliveries

Safety Management Plan: Hazard Prevention and Control

4 main issues always discussed: (1) personal protection (2) accident prevention (3) substance abuse (4) hazardous materials PLUS safety training for employees

Safety Management Plan: Hazard Prevention and Control - 2. Accident Prevention

4 primary caused of accidents: (1) Falls: 33 % (2) Struck by: 22% (3) Caught between: 18 % (4) electrical shocks: 17 %

Rework, callbacks, inefficiencies, waste, and poor workmanship reportedly represent between_____of the construction cost for any given project?

5 - 20 %

TQM

= Total quality management 1. Identify problem 2. Break it down into small steps 3. Identify the weak link 4. Determine the remedy 5. apply the remedy 6. Measure the results

OSHA

=Occupational Safety and Health Administration The federal agency responsible for establishing safety standards for construction and all other industries in the United States. The agency also has the authority to enforce those standards through rigorous inspections at the job site and to issue citations to and assess fines against any contractor or subcontractor for violating these standards.

earned value analysis (EVA)

=determining the overall status of the project relative to both cost and schedule. A technique used in construction to determine the estimated value (earned value) of work completed to date on a project and compare that to the actual work completed on the project.

cost control

A continuous monitoring process used to track the variances between actual performance and planned performance on a project, specifically concerning cost and time.

Financing Risks (Risk Categories)

A contractor must be prepared to carry a project until it cash-flows itself. Contractor must have access to financing to pay for materials, equipment, and subcontracts along the way. Only subcontractors and suppliers with the financial capacity to complete the work and pay the costs involved should be used on a project. The financial strength of the owner must be considered.

cost code

A reference number used to track cost and schedule information on materials, labor, subcontracts, equipment, overhead, and fees throughout the project control process.

Field observation report (FOR)

A report used to track questionable quality and safety performance on the job site.

callback

A request from an owner that a contractor return to the job site to correct or redo some item of work.

rework

A term used to describe defective construction work that must be redone or corrected

Prebid Risks (Risk Categories)

After assessing parameters of project, (size, locations, contractors schedule, requirements, etc) contractors has three options: 1* bid the project but increase the profit margin to account for the added risk 2* bid the project but joint venture with another contractor to share the risks 3* reject the project and not even start an estimate because the risks are unacceptable

TRACKING COST

After the contract is awarded the estimate is used for building the project budget from which project costs are monitored and tracked. In budget: Each activity is assigned a cost code. Cost codes are used to track all items of work contributing to project e.g. material, labor, equipment, subcontracts, and overhead. compare actual job costs vs. estimated job costs. Most cost codes start with the CSI reference number associated with the activity and end with a number that conforms to the type of activity (e.g., 1 for materials, 2 for labor, etc.). IMPT: user friendly + details for cost analysis.

ASTM

American Standard for Testing Materials

contingencies

An amount of money added to an estimate to cover unknown conditions or risk factors.

Material Safety Data Sheet (MSDS)

An information sheet documenting pertinent chemical information on various products used in construction. e.g. (1) gasoline and fuel oil (2) paints, shellacs, varnishes, turpentine, and mineral spirits, (3) detergents, cleaning agents, degreasing agents, and janitorial supplies (4) wood preservatives (5) adhesives (6) acids

What is everything when it comes to quality and safety?

Attitude of the company

CSI

Construction Specifications Institute

Safety Management Plan: Hazard Prevention and Control - 3. Substance Abuse

Construction work is hazardous by nature. Drug and alcohol abuse cannot be tolerated at any level in the construction industry. Period!

latent design defect

Defects or flaws in design details that are not known until after the construction is complete and time has passed, allowing for the flaw or defect to show itself.

Environmental Risks (Risk Categories)

Environmental issues can impact the budget and/or schedule. Similar to Legal issues, contractor has little, if any, control. Risks should be borne by the owner. It is the owner's land with the problems.

Safety Management Plan =

Every construction company should have a safety manual applicable to all projects that all employees must read and be familiar with. GOAL: mitigate hazards and prevent accidents.

Which aspect of the project needs to be tracked?

Every performance aspect - from beginning to end.

Safety Management Plan: Hazard Prevention and Control - 4. Hazardous Materials

Every safety management plan must include a system for compiling and documenting pertinent information on the various products used on the project.

Tips and Trick for Tracking Quality, Cost & Time

Getting the subcontractors involved and creating specific work package short-interval schedules can help alleviate this process. After analysis and identification of the problem, the super must take corrective action usually involving "crashing" the schedule. This is a compressing of the schedule to get it back on track. An activity takes so many man-hours to do. As long as productivity is on track, the number of man-hours to do the activity remains unchanged. If the activity is delayed and productivity is the problem, it can be solved by working overtime or adding crews or workers to a crew. Working overtime will cost more to accomplish the man-hours needed. Increasing crew size or the number of crews will ostensibly be at the same hourly rate and therefore not cost more, except for a shift-differential if shifts are used, or an overcrowding factor if adding crews cause this tangential problem.

What is at the heart of a successful construction company?

High quality and safety standards

Quantifying Risks

Identification of risk has to do with the likelihood of occurrence of risk. An evaluation team should be used for this analysis comprised of experienced construction managers, such as the superintendent, and also involving the subcontractors and major suppliers.

Construction Risks (Risk Categories)

Most construction risks originate in the day-to-day operations on the construction site, usually associated with the management of materials, manpower, and equipment e.g. labor availability, differing site conditions, site access, property damage, utilities coordination, adverse weather, availability of materials, safety

forecasts

Periodic predictions stated in reports as to the final cost and schedule outcomes on a project while the work is still ongoing.

Documenting Project Performance:

Progress reports should regard 4 fundamental questions: 1. How is the project doing overall, and is it on target or off target? 2. What sections of work appear to be most vulnerable? 3. Is overall productivity improving or declining? 5. What is the projected completion date and budget outcome?

Who is responsible for the overall safety of the workers on the jobsite and all of the equipment and materials they must handle?

Project Manager and Super

contract indemnification

Provisions in a contract that provide protection against possible financial loss, damage, or liability.

TRACKING QUALITY: 6 Ways to track quality

Purpose: Verify that all materials and workmanship comply with requirements in the plans and specs. Plans and specs are the primary tools for tracking quality. plans = quantities of the materials specs = quality of the materials Administrative tests: 1. Field observations 2. Submittals 3. Shop drawings 4. Mock-ups 5. Inspections 6. Field tests

Quality Assurance (QA) vs Quality Control(QC)

Quality Assurance (QA): *accomplished at Process Level *Long Range view towards developing systems that produce high quality work: 1. Hiring Practice 2. Training Programs 3. Safety 4. Subcontractors prequalified 5. Procurement Methods 6. Employee Incentives Quality Control (QC) *addresses quality at Project Level * deals primarily with conformance to plans & specs: 1. Submittals 2. Mock-ups 3. Shop Drawings 4. Testing Standards 5. Independent Testing & Inspections e.g. soil testing, concrete testing, structural steel testing, asphalt testing 6. Building code inspections 7. Supervisory Inspections Extra Precautions: *supervisory inspections should be made continuously *Goal: zero punch list *Inspect & correct throughout the project

Anticipated vs unpredictable risks

Risks that can be anticipated: time, cost, quality, and safety However there are unpredictable risks. (1) risk identification (2) risk quantification (3) risk mitigation

Who is responsible for day to day management of safety?

Safety manager

Safety Management Plan: Hazard Prevention and Control - 1. Personal Protection

Super must provide the personal protective equipment (PPE) required for that project. eg. (1) special suits or vests for body protection (2) hard hats for head protection (3) respirators for breathing protection (4) face shields or masks for face protection (5) safety glasses or goggles for eye protection (6) ear plugs or protectors for hearing protection (7) gloves for hand protection (8) steel-toed shoes or boots for foot protection (9) safety harnesses for fall protection PLUS training on PPE

variance

The cost or time difference between the actual project performance and the planned project performance.

Design Risks (Risk Categories)

There are design risks that affect the contractor's ability to deliver the project on time, within budget, and within the quality specifications e.g. poor quality, non-compliance, owner directed changes, inaccuracies, defects affecting warranty

What is the propose of cost codes?

To analyze a problem and narrow the possible causes to a manageable number. The key is to have the information needed to identify and assess the problem. Whose responsibility is this? The Super

Why must the project be monitored?

To ensure that the targets for time, cost, and quality are met

crashing the schedule

To takes steps that accelerate activities in the schedule, resulting in an earlier completion date. aka. A compressing of the schedule to get it back on track.

Tracking Time

Tracking time is just as important as tracking cost. late finish = in liquidated damages (potentially) Finishing a project late means that an activity, or activities, on the critical path were delayed. Reasons for delay: -weather, a manpower shortage, late deliveries, and many others. -But overall, delay is due to productivity; and, it is likely the productivity of a subcontractor, or subcontractors, who do most of the work.

Different tracking tools for different activities?

Tracking tools for quality = plans and specs. Tracking tool for cost = estimate. Tracking tool for time = schedule.

Technology:

Try to stay current as to what is available and whether it can help your company. New programs developed all the time!

Escalation clauses

Usually negotiated into the construction contract when there is suspicion that some pricing component of the estimate is in a high state of flux. The clause allows for some fluctuation in the contract price based upon the current pricing of the suspected component.

Corrective Action

Various causes of cost overruns. *materials price increase: the contractor can either absorb the loss or negotiate with the owner for some amicable compromise or shared exposure to the price increase. *Price increases can be a large problem. *Subcontractor experiences price increases, you can have the same problem as if the contractor were purchasing the materials. *Contractor could share the increase with the subcontractor or negotiate with the owner. Or, if the subcontractor refuses to continue work, the contractor could go with another subcontractor and deal with the original subcontractor as to the difference in subcontract amounts. IMPT: *Quantities issues with materials needed (i.e., a quantity takeoff mistake), the contractor will likely be stuck with the error and try to make up for the loss in other areas of the contract.

Tailgate safety meetings aka. toolbox safety meetings

Weekly safety meetings held at the job site and usually conducted by the superintendent. They're also called toolbox safety meetings.

joint venture

When two or more construction companies enter into an agreement for a one-time, single-project commitment and share resources and risks to manage and build the project.

Political / Legal / Regulatory Risks (Risk Categories)

aka. third-party risks Government laws and regulations must be obeyed.

Poor quality and accidents ...

cost the construction industry a lot of money

Quality affects ...

safety