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Last week I published an article ‘how useful is the construction schedule/program on your project’ which discussed important considerations to take into account when preparing and using a construction schedule. Judging by some comments it would appear some see a construction schedule as an irritating document that just wastes time, or is an instrument for clients to torture their contractors.
However, I would never execute a construction project without a schedule. Sometimes for small construction projects it may just be a simple hand-drawn sketch bar-chart. For large projects it could be a detailed construction schedule using specialised software with a hundred or even thousands of tasks. Sometimes the detailed schedule is developed from my hand drawn sketch. In some instances the schedule could take a pictorial form. Here are 10 reasons why I consider a construction schedule to be an important aid on my projects?
Other similar useful articles by the author are: ‘The importance of planning your construction project’ ‘What you need to know to close out your project successfully’ ‘Understanding the real cost of delays on your construction project’ (Paul Netscher is the author of the acclaimed books ‘Successful Construction Project Management: The Practical Guide’ [a required text for Bachelor of Construction Management at some universities] and ‘Building a Successful Construction Company: The Practical Guide’. Both books are available in paperback and e-book from Amazon and other retail outlets. This article is adapted from information included in these books.)
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Unfortunately some construction projects aren’t profitable. What happens when a project starts losing money could drastically impact the outcome of the project – often making the problems worse and even damaging the contractor’s reputation.
So what does the Project Manager do when their project is losing money? Well we know what their managers will do! They’ll probably be angry and order the PM to cut costs. The simplest way to do this is to reduce the number of staff on the project. They may even replace the PM. These actions seldom turn the project around. In many cases they exacerbate the losses. A change in PM is disruptive, staff cutting often demotivates the remaining staff who may have to take on additional tasks. Knowledge is lost when staff are moved off (knowledge which could include useful information required for claims to recover money from the client for changes in scope). Inevitably wild random cost cutting makes the project’s financial woes worse. Paradoxically a project may even be losing money because there isn’t enough staff, which results in low productivity, errors and tasks being left undone. However, sometimes, there are in fact too many people. To avoid this unpleasantness PM’s often try and hide the problem, maybe hoping that things will improve. When the problem can no longer be hidden they may blame others – especially the estimator. All of the above usually just makes the problem worse. Unfortunately financial problems seldom solve themselves and it’s unlikely that the project will suddenly reverse the losses, so action needs to be taken. It’s important to find the reasons for the loss. I say reasons because there’s almost always a number of contributing reasons. Knowing the reasons action can be taken to solve the problems to stop further losses and perhaps even to recover money already lost. Ask for help if necessary. Managers should see that their PM is supported, even spending more time on the project if required. (it’s sometimes amazing when a project is going badly how some managers are noticeably absent – only visiting their projects that are doing well.) PMs need to stay calm. Be upfront with their manager, explaining the possible full extent of the loss and the reasons for the problem and possible solutions with the best and worst case scenarios. As much as their manager might not want to show their boss the full extent of the loss it’s important that they do, so the company can put contingency plans in place to safeguard their cash flow. I’ve seen a large construction company destroyed when a couple of projects lost money and senior management weren’t prepared for the losses. Once the reasons for the loss are known, implement measures to prevent or reduce further losses and try and recover money already lost. Having a reliable costing system will help the project detect losses at an early stage, allowing action to be taken sooner. If the costs systems are affective they may even provide an indication as to what the causes are. However, it is pertinent to remember that the project’s costing system is only as reliable as the data that’s entered, and is only useful if the information the report provides is interpreted and analysed correctly. Next week I will deal with some likely causes that result in construction projects losing money. Is your construction schedule (program/programme) correct? Do those executing the work understand it?
In a recent post ‘Will your construction project be completed on schedule?’ I discussed possible reasons for construction projects being completed late for reasons due to the contractor and briefly touched on the construction schedule. A properly constructed schedule is a valuable aid to ensuring your project is completed in the shortest possible time, making the best use of your available resources. Yet, many schedules are poorly prepared, don’t show the pertinent information, or aren’t communicated to the relevant parties. It’s important a construction schedule is prepared which should: 1. enable the project to be constructed in the shortest possible time, making efficient use of the available resources, without jeopardising the quality, safety or integrity of the project 2. take into account any client imposed restraints, such as; interfacing with other contractors, access dates to work areas, working in and around existing facilities and the availability of information 3. allow for adverse weather events, which could normally be experienced, and during which construction work cannot happen or when productivity is reduced 4. include for interfacing between the different construction work areas 5. meet the completion dates that were committed to in the contract (unless the project has changed from the one that was in the tender submission) 6. allow sufficient time for planning the project and for mobilisation (on some projects it can take four weeks or more to get personnel through the mobilisation process and on to site) 7. include time for design and drawing approvals as required 8. adequately show the type of resources required and when they’ll be needed 9. be approved by the client in writing as soon as possible (without an approved schedule it’s difficult for the contractor to claim for variations, late information, late access and extension of time) 10. clearly show when access is required to the various work areas 11. indicate when information is required (a separate ‘information required list’ should be prepared which can be updated weekly and discussed with the client at the progress meetings, so the client can be aware of what information is necessary in the next two weeks and notified when information is issued late or when it’s inadequate or incomplete for construction purposes) 12. be updated regularly (the update must be done correctly, focusing on the critical path activities rather than the overall percentage complete) 13. be communicated to the relevant staff so they are aware of the key dates and milestones (Supervisors are often only interested in their section of work and what they need to do in the next couple of weeks, so it’s pointless giving them the entire schedule to the end of the project since in many cases it won’t be read and will only confuse them – rather give Supervisors a snapshot of the schedule pertinent to their work, even perhaps giving it to them in a pictorial form which can be easily read and displayed on their office wall) 14. if needed, be discussed with Supervisors to make sure they understand what needs to be done and why the sequence and resourcing shown is necessary Unfortunately some construction project managers don’t treat the construction schedule with the importance it deserves. In fact, some construction companies and project managers just view it as another pesky document that the client requires. Yet, it can be a vital part of the success of your project and invaluable when arguing and settling delay claims with your client. Other similar relevant articles from the same author include: 'The importance of planning your project' 'Understanding the real cost of delays to your project' 'What you need to know to close out your project successfully' (Paul Netscher is the author of the acclaimed books ‘Successful Construction Project Management: The Practical Guide’ [a required text for Bachelor of Construction Management at some universities] and ‘Building a Successful Construction Company: The Practical Guide’. Both books are available in paperback and e-book from Amazon and other retail outlets. This article is adapted from information included in these books.) Subcontractors can play an important part in the success of the project. It’s important that subcontractors aren’t chosen purely on price. The subcontractor’s ability to deliver the project on time and to the required quality and safety standards is equally important. I’ve worked on projects where the selection of the cheapest subcontractor ended up costing the project more money than if a more expensive subcontractor had been selected.
Subcontractors are viewed by the client as an extension of the main contractor (general contractor) and a failure by the subcontractor can adversely affect the contractor’s reputation. Some important points to note when managing subcontractors are to ensure: 1. the contractor’s person managing the subcontractor understands: a. the subcontractor’s scope of work b. who is responsible for supplying what c. how the subcontractor will be reimbursed 2. the subcontractor: a. complies with the project’s safety requirements b. produces work of acceptable quality c. works according to the project schedule 3. the subcontractor receives access and information on or ahead of schedule and isn’t delayed by the contractor or other subcontractors 4. regular meetings are held with the subcontractor to discuss safety, quality and environmental matters, as well as progress on the project and any delays and claims, and that minutes of these meetings are distributed to the relevant parties 5. subcontractors acknowledge the receipt of drawings and information issued to them 6. where relevant, the subcontractor supplies shop drawings in accordance with the project schedule, including allowing for obtaining the required approvals from the contractor or the client 7. communication with the subcontractor of a contractual nature is in writing (any verbal instructions should be followed up in writing) 8. only the contractor’s delegated responsible staff communicate with the subcontractor 9. action is taken as soon as it appears that the subcontractor could be in trouble 10. the subcontractor is forewarned of the contractor’s intention to back-charge them for work or services supplied by the contractor and that these charges are invoiced regularly 11. the subcontractor is paid in accordance with the contract 12. the subcontractor has suitable quality, safety, environmental and industrial relations procedures in place that comply with the project requirements 13. subcontractors don’t begin work until there’s a signed contract in place and they’ve supplied the required sureties and insurances 14. the subcontractor’s staff, equipment and their own subcontractors are approved by the contractor 15. the subcontractor’s personnel attend the contractor’s project induction 16. correspondence from the subcontractor is promptly dealt with Implementing these simple steps will help reduce the risk of subcontractors failing on your project. Failure of subcontractors often leads to costly claims, disputes, delays, rework and possibly even accidents and could negatively impact the contractor's reputation. (Paul Netscher is the author of the acclaimed books ‘Successful Construction Project Management: The Practical Guide’ and ‘Building a Successful Construction Company: The Practical Guide’ and this article has been adapted from these books. Both books are available from Amazon and other retail outlets) Unfortunately many construction projects are completed late. In my post ‘Are you working for free on your construction project’ I discussed some reasons why a construction project may be delayed by the client, or for factors outside the control of the contractor. However, there are many reasons that construction projects are delayed which are solely due to the contractor. The costs of these delays were discussed in my post ‘Understanding the real cost of delays to your project’ and are often enormous and damage the construction company’s reputation.
Some reasons construction companies finish projects late include: 1. Having a construction schedule/program which is incorrect because: a. it doesn’t allow for normal adverse weather events during which construction work cannot happen or when productivity is reduced b. it doesn’t allow for procurement, design and manufacturing times c. it hasn’t allowed for interfacing between the different work areas d. it hasn’t allowed for any client constraints which were included in the contract document such restrictions on working hours, when information will be available and when access is available to work areas e. it has faulty logic or is simply not feasible 2. Subcontractors that don’t perform and consequently complete their work behind schedule – a proper adjudication and selection of subcontractors can help avoid this Having insufficient resources on the project – a properly resourced schedule which is referred to can help avoid this problem 3. Construction equipment that is unreliable and breaks down 4. Using equipment which is unsuitable for the tasks that they are required to perform 5. Construction materials arriving late – this may because they were ordered late, transport wasn’t organised, poor communication, or no allowance was made for design and fabrication time 6. Having the incorrect type of resources on the project or the wrong mix of resources – again a properly resourced schedule can help 7. Not having the required permits, documents and paperwork in place which delays the start of construction, or possibly means the facility cannot be handed to the client when it’s completed 8. Not communicating the schedule to the relevant parties doing the work, including subcontractors and supervisors 9. Completing work which isn’t on the critical path instead of concentrating on critical path items 10. Poor quality work which has to be redone 11. Not implementing the quality checks and procedures correctly 12. Poor safety resulting in accidents, property damage, or the construction site being shut down 13. Poor planning which results in work areas not being ready 14. Poor productivity 15. Not planning the final completion of the project properly which could result in commissioning or connecting to existing services being incomplete or documentation being outstanding By striving to eliminate these factors Construction Project Managers should avoid their project joining the list of projects that are completed late, and thus avoid incurring their company extra costs and a poor reputation. Other relevant and useful articles by the same author include: ‘What you need to know to close out your project successfully’ ‘How poor productivity impacts projects’ ‘The importance of planning your project’ ‘Is the cheapest really the cheapest’ (Paul Netscher is the author of the acclaimed books ‘Successful Construction Project Management: The Practical Guide’ and ‘Building a Successful Construction Company: The Practical Guide’. Both books are available in paperback and e-book from Amazon and other retail outlets. This article is adapted from information included in these books.) Construction is a complex and changing process that requires people to change and evolve to suit different projects, clients, locations, challenges and complexities. But to make it more difficult it experiences an inconsistent workforce which varies between regions and cultures. In fact, there are probably few industries that employ people from such a diverse range of cultures, ages, economic means and educational backgrounds, expecting them to work together to successfully deliver a project. To complicate matters further, the workforce is changing, and many cultures and young people have a different work ethic and loyalty from what the norm was a few years ago. Although the processes in construction have remained relatively unchanged for literally hundreds of years, they are now changing, with new technology, different client requirements, complex regulations and innumerable legislation matters, which often place more emphasis on paperwork and rules than ever before.
In developing and developed countries construction is often viewed as a less attractive vocation than other careers, resulting in a limited pool of skills being available to undertake complex projects. To make matters worse many of the projects are in remote locations and many have unattractive working hours. The key for any contractor’s success is its ability to employ suitable people and retain them, managing them to maximise their worth to the company. Therefore every manager has to understand people, their cultures and backgrounds, and be able to work with them using their strengths, and assisting them with their weaknesses. Start by employing the right people The most important step in having good people is to employ the right people. 1. They require knowledge and experience to perform the tasks expected of them. (An experienced building Supervisor is possibly not best suited to supervise the construction of a road.) 2. They need to fit in with the culture of the company and must ascribe to the company’s values. (It’s pointless for the company to set high standards for safety and quality, and then employ a Supervisor who is unconcerned with these values. They may have all the experience and knowledge for the position, but they will destroy the company’s reputation in no time.) 3. They should be willing to work in the regions and areas in which the company operates in. (I’ve seen many personnel unhappy because they’ve had to relocate their family, or had to work in areas far from where they live. Yet, there are individuals who enjoy working in these regions and others who are willing to relocate their families to remote areas.) 4. They must have aspirations which the company can satisfy. (Everyone has different aspirations and not all companies can meet these. Failure to fulfil a person’s aspirations eventually results in them becoming unsatisfied and unhappy.) 5. Construction is a people business and everyone should be able to communicate and work with others. (Paul Netscher is the author of the acclaimed books 'Successful Construction Project Management: The Practical Guide' and Building a Successful Construction Company: The Practical Guide. Both books are available from Amazon and other retail outlets in paperback and in ebook format. This article is an extract from the book 'Building a Successful Construction Company') Some of the items which should be considered at the end of the project include:
1. obtaining the certificate of practical completion 2. handing over quality documentation, commissioning data, spare parts lists and warranties to the client 3. handing over all spare parts and client-purchased materials to the client 4. getting the release of sureties or bonds and returning them to the institution which issued them 5. requesting the release of retention 6. putting items of equipment off-hire and transferring them from site 7. clearing unused materials 8. moving personnel records to the head office 9. sorting, filing and archiving project documentation 10. agreeing the final accounts with the client 11. settling accounts with subcontractors and suppliers 12. moving personnel records to the head office 13. submitting the final project invoice to the client 14. demobilising all offices and facilities 15. reinstating laydown areas and access roads, including obtaining signed acceptance from the client 16. handing back all accommodation 17. disconnecting services 18. transferring or terminating personnel 19. disposing of project-purchased assets 20. completing the final cost report The completion schedule/programme To facilitate the timely completion of the project a completion schedule should be prepared near the end of the project. This would include: 1. finishing the outstanding items 2. commissioning 3. connecting to existing services and structures 4. completion of the contractor’s punch-list items 5. final punch-listing by the client 6. preparation of hand-over documentation such as quality records, commissioning results, operating manuals and guarantees 7. clearing of the temporary site facilities and services Conclusion Closing out a project can often be a complicated and time-consuming process that is underestimated and overlooked by Project Managers and staff who may already be anticipating moving to their next projects. If proper planning and preparation is done at an early stage the close out process will be much simpler. It will save costs and frustration to both the client and the contractor’s staff. How you finish a construction project is often how the client remembers the construction company! (Paul Netscher is the author of the acclaimed books ‘Successful Construction Project Management: The Practical Guide’ and ‘Building a Successful Construction Company: The Practical Guide’. Both books are available in paperback and E-book from Amazon and other retail outlets. This article is adapted from information included in both books.  Many construction projects are financially successful until the end, when costs suddenly spiral out of control. The main reason for the additional costs is because the project isn’t completed on time. When I say completed, I don’t just mean handed over, I mean one hundred percent finished. Many Construction Project Managers focus only on giving the client access to the completed project facility. However, there’s normally more to a construction project than this. It includes finalising punch lists, finishing and submitting all paperwork (including as-built drawings, quality data packs, guarantees and warranties) and concluding all the contractual obligations (such as commissioning and testing). Will your construction project be completed on schedule? Read this  When your construction project is not finished on timeFailure to complete construction projects correctly, including completing all paperwork and documentation, results in increased costs to construction companies due to:
Needless to say the failure of the construction company to complete all outstanding items can be very frustrating to clients and they usually incur additional costs for their supervision as well as inconvenience and disruption to their operations. Mistakes that impact construction schedules/programmes #constructionprojectmanagement #constructionschedule #constructionmanagement Do you want to learn how to manage construction projects successfully
Paul Netscher has written several easy to read books for owners, contractors, construction managers, construction supervisors and foremen. They cover all aspects of construction management and are filled with tips and insights.
Visit to read more. The books are available in paper and ebook from most online stores including Amazon. © 2022 This article is not to be reproduced for commercial purposes without written permission from the author.  Having the correct type and numbers of staff (Section Managers, Supervisors, Engineers, Contract Administrators, etc) on your construction project can be the key to your project’s success. Risks of incorrectly staffing your construction project I’ve sometimes been guilty of under-staffing my construction projects. The risk with that is: 1. if a member of your team falls ill or resigns there’s nobody who can take on an additional roll 2. tasks are rushed because your team have insufficient time, resulting in mistakes and items being overlooked 3. people work under pressure, and long hours, which may lead to them resigning How do we retain skilled employees in construction? Obviously having too many staff leads to: 1. higher costs which were not allowed for 2. people becoming unhappy due to boredom and feeling underutilised Of course, having construction staff with the incorrect skills or without the correct experience can also be a major problem. Factors affecting the numbers and type of staff required for a construction projectThe numbers of staff required on a construction project, and their positions, depend on a number of factors, such as the: 1. number of construction work areas –each work area may require its own Supervisor 2. numbers of construction workers –there is often an optimum number of workers that a supervisor can look after 3. available skills of the workers –if the workers are poorly skilled or inexperienced they usually require more supervision to ensure they perform their tasks correctly and safely Training and mentoring in construction 4. complexity of the construction project –more complex projects may require more Engineers and Supervisors while a project which is simple or has lots of repartition may be easier to manage 5. relative locations of the construction work areas and their distance apart –travelling between different work areas can make Supervisors time unproductive or mean workers are left standing waiting for instructions when the Supervisor is on another distant part of the project 6. client requirements –some clients specify the ratio of Supervisors to workers, while others may dictate that they require dedicated individuals to specific tasks, even though the contractor wouldn’t normally have a dedicated person 7. contract reporting requirements –some clients and project managers may require elaborate and detailed regular reports which can be time consuming for the contractor to prepare 8. skills and experience of the available staff –more experienced staff may be able to supervise a larger work area with more workers 9. schedule (programme/program) –fast-track construction projects of high intensity may need more supervision 10. quality of the client and their design team –construction projects where the client has to be assisted, or where information is late or of a poor quality often require more input from the contractor, and projects with multiple claims and variations may require additional contracts administration staff Staff numbers also depend on the different skills and disciplines required. For instance in the civil industry Supervisors may only be skilled in earthworks, while others are skilled in concrete works, electrically orientated, or more suited to building trades. If you can employ a Supervisor skilled in a multitude of disciplines, there’s often a reduction in the number of staff required.  To assist with calculating staff requirements prepare a project organisational chart. This shows the different levels and types of management, the reporting structures, as well as the different roles and responsibilities. In addition the chart could indicate whether the staff are required full-time or shared between projects, and if they are Head Office or site-based positions. Remember also that if the project has to work nights, or weekends, additional staff will be required to supervise and manage these shifts. Have the right team for your construction project It’s necessary that careful thought goes into correct staffing of your construction project to achieve the best balance of efficiencies and costs. In Australia for instance, the cost of a Supervisor is not much greater than some trades people, so it may pay in some cases to have more supervision just to improve the efficiencies of the workers. Employing the right people in construction Once you have determined the number and types of skills required you can begin sourcing the correct people to fill the positions. This is another topic which I will deal with later. Are you employing the right people on your construction project? #constructionmanagement #constructionpeople #constructionprojects Do you want to learn how to manage construction projects successfullyPaul Netscher has written several easy to read books for owners, contractors, construction managers, construction supervisors and foremen. They cover all aspects of construction management and are filled with tips and insights. Visit to read more. The books are available in paper and ebook from most online stores including Amazon.
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