The successful contractor

Demolishing or Modifying Existing Structures

31/5/2018

From time to time contractors have to demolish existing structures, either completely or partially, to enable new structures to be built. This work is inherently dangerous, and if it’s not done correctly could result in the remaining structures or surrounding property being damaged, and even people getting injured or killed.

Usually, large demolition work must be done by licensed contractors, but often projects involve smaller demolition works which are tackled by less experienced people. In fact, sometimes contractors have to demolish newly completed work because the work was substandard of poor quality and didn’t meet the project specifications because the client changed their mind, or the designer made a mistake. Some of these demolitions are done with little forethought and planning, sometimes with inappropriate equipment, often done hurriedly so that impacts to the construction schedule are minimised.

To prevent accidents it’s important that certain precautions and steps are implemented before any demolition work begins. These include:

Ensure all service lines and pipes have been terminated. Live electric cables are dangerous. Damaged water pipes can flood the project, or possibly leak underground undetected. Ruptured gas pipes can lead to explosions.
Make sure that the right structures are demolished. For example; in 2016 the wrong house in Sydney Australia was demolished. The contractor arrived at what they thought was the correct address and proceeded to demolish the house, instead of the house next door which they were supposed to demolish. A very expensive and embarrassing mistake. It pays to always double check and also to ensure that there is adequate supervision in place.
Hazardous materials, such as asbestos, should be identified and where possible removed. Not only are these materials hazardous to work with but they can contaminate all of the demolished materials and parts of the construction site which can cause bigger problems and costs to clean up.
All permits and permissions must be in place. Many jurisdictions require demolition contractors to be licensed.
Check that there aren’t any restrictions – heritage structures can’t be demolished.
Ensure that items that are to be salvaged have been removed.
Protect the surrounding properties and structures from dust and debris.
Prepare a risk assessment and safe work procedures.
Have the right equipment and trained operators.
Barricade the areas where demolitions are happening and keep unauthorised people out of the area.
Clear demolished material as quickly as possible to make the area safe.
Plan the work so that demolitions are done in the correct sequence therefore equipment can safely reach parts that have to be demolished, and so that structures aren’t left standing which are unsupported or weakened; they could collapse in an uncontrolled manner on top of people, equipment or other structures.
Provide adequate warnings to those around the demolition work who could be impacted by the demolitions.
Ensure there is adequate dust suppression systems in place to minimise dust.
For large demolitions it is advisable to complete dilapidation surveys of the surrounding structures to record all existing cracks and defects. This will ensure that the demolition work can’t be blamed for damaging structures and buildings when the cracks were already pre-existing and weren’t a result of the demolitions.

Often existing structures have to be partly demolished and openings cut in them. In addition to the checks above it’s also necessary to:

Have an engineer check the structure to determine that the modifications won’t impact its structural integrity.
As directed by the engineer, install permanent structural supports and beams, and where necessary temporary props and bracing.
Not remove temporary props and supports until the replacement structures have attained sufficient strength and have been inspected by the engineer.
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Corruption, Fraud and Theft in Construction

23/5/2018

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A study by PwC of public contracts in 8 countries in the European Union in 2010 identified that the direct public loss encountered due to corruption in public contracts accounted for 18% of the overall project budgets concerned, of which 13% can be attributed to corruption and 5% due to mismanagement. Imagine, for every dollar spent 18 cents disappeared. A $1 million project will cost an on average $200,000 extra. In the US the FBI places public corruption as one of their number one priorities, even though the US is considered to be the 18th least corrupt country in the world.

Unfortunately, corrupt practices occur throughout the various construction project phases and can be perpetrated by any of the project stakeholders. This corruption is due to direct and deliberate corrupt practices as well as mismanagement. Mismanagement of construction projects occurs far too frequently. I’m sure we can all relate stories of theft, corruption, fraud, and mismanagement that occurred on a project. I’ve previously related a story of how half a million dollars of cement was stolen from one of my projects.

Whether you are a project owner, an investor, project manager or a contractor it pays to be vigilant to avoid corruption on your project. Not only does corruption result in someone realising less value, but it can also impact reputation, and even result in fines and prison time. Being vigilant together we can prevent corruption and fraud.

Corruption, fraud, and theft on construction projects can be perpetrated by:
Owners

Pay bribes to local authorities for relaxation of zoning, or to authorities to waive permit conditions or relax conditions.
Receive bribes from contractors to award the project to them.
Construct projects to favour particular stakeholders (for instance their electorate), or to satisfy their egos, often disadvantaging others in the process.
‘Bid shop’, sharing the price of other bidders with their favoured contractor so that their favoured contractor has the opportunity to lower their price to beat the other contractors’ prices.
Knowingly allow the project to damage the environment.
Knowingly construct a substandard project to sell on to unsuspecting customers.
Construct projects which blight the neighborhood and the landscape.
Construct projects to launder the proceeds of crime.
Don’t pay contractors and others for completed work, or deliberately withhold money for spurious reasons, or pay contractors late.

Project managers and principle agents

Accept bribes from contractors in return for:
1. Awarding the project to a particular contractor.
2. Accepting non-compliant work.
3. Approving spurious and inflated variation and progress claims.
Pay bribes to permitting and other authorities and individuals to ‘smooth’ processes.
Refuse to accept variation claims from the contractor which are due to the project manager’s or principle agent’s fault.
Are lazy, or inept, resulting in:
1. Them not checking and verifying that the construction work satisfies the quality requirements and standards.
2. Not checking the contractor’s invoices are correct and the work has been completed.
3. Poor management of the project, resulting in the project suffering delays and additional costs.
4. Them agreeing the contractor’s variation claims without verifying that the contractor is entitled to the claim.
5. Them not adjudicating contractors’ prices properly, which could result in a substandard contractor being appointed, or a contractor whose price has hidden additional costs.
‘Rig’ bids (arrange or organize) to ensure a particular contractor is awarded the project. This is done by:
1. Bid shopping, where their favored contractor is given the lowest bidder’s price and told to beat it.
2. Manipulating the requirements to price a project, so that the requirements favor a particular contractor and even disqualify other bidders.
3. Providing the pricing documentation to their preferred contractor before it’s supplied to the other contractors, and then not allowing the other contractors sufficient time to price the project.
4. Providing their favored contractor with additional information (not given to other contractors) which could allow them to submit a cheaper price.
Invoice the owner more than they are entitled to, which could include billing for people not on the project, charging hours in excess of what was worked, and charging at higher hourly rates than was agreed in the contract document.

Designers

Are lazy or inept, resulting in:
1. Them not checking the quality of the contractor’s work.
2. Them producing a poor design, which has errors, isn’t the most economical design, hasn’t considered the operating and maintenance costs, or a design that is ugly and blights the landscape.
3. Designs and drawings being issued late, causing delays to the project.
Take bribes to:
1. Accept substandard work.
2. To specify particular suppliers’ products.
Where they are paid in accordance to the value of the finished project, they deliberately specify more expensive products or design structures that are more complex or require more material to construct, which increases the cost of the project and thus their fee.
When they are paid by the hours spent on the project, bill for hours that they weren’t working on the project, or for people who didn’t work on the project, or they charge higher hourly rates than they should have or add in additional charges which aren’t legitimate.

Contractors
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Construction Hoardings, Barricades and Fences

13/5/2018

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The quality, level and type of fencing and security on a project are dictated by numerous factors, including the client’s requirements, the location of the project, existing security and fencing around the project and the level of security risk, as well as the likelihood of a member of the public having unrestricted access to the project. In addition, local councils often have bylaws which stipulate the type of fencing or hoardings. These barriers may be simple fences, through to solid barriers of timber, tin, steel or even concrete.

Many construction projects are constructed in operational facilities, close to neighboring properties or in busy public places. It’s necessary to erect barriers which may be needed to:

Keep the public from entering the work area.
Provide security to the existing properties (especially when dividing walls or fences are removed).
Provide security to the contractor’s equipment and the partly finished structure so that people can’t vandalise or steal equipment.
Reduce the amount of dust coming from the construction site.
Reduce the noise emanating from the construction work.
Create a more visually pleasing aspect than looking at a half-finished building.
Separate the construction workers from the public, who may feel intimidated walking past the workers.
Create a physical barrier to prevent the public from being injured by falling or flying objects, or by equipment running into them.
Prevent workers and their equipment spilling into the public space, causing obstructions.

When erecting hoardings and barricades it’s important to ensure that:

They are stable and can’t easily be knocked over by people, construction equipment, or when construction materials are leaned against them.
Where they are for security, that they cannot easily be broken through or dismantled.
Where it’s to prevent objects falling onto people, that it can withstand the impact force of such objects.
They don’t intrude into public spaces causing trip hazards or providing splinters or sharp protrusions which may injure people.
They won’t fall over in severe weather conditions.
They can be easily taken down when no longer required.
They don’t damage the existing finishes so these require extensive repairs.
Their aesthetics are suitable on the side exposed to the public, thus displaying a professional image of the project.
Where necessary, they keep dust and noise out.
That they are sufficiently robust so that they aren’t easily damaged by the weather or construction work, and that they will require minimal maintenance for the duration they’re required to be in place. Sometimes hoardings and barriers are used that quickly deteriorate and start looking worn, even no longer fulfilling the role they are supposed to fulfill.
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Why Photographs Are Essential On Your Construction Project

9/5/2018

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Taking photographs on a construction project is very useful for a number of reasons.

Photographs of the project taken regularly, which includes the date and time, are beneficial in tracking progress.

Photographs can also be used to document variation work, such as; the depth of rock excavations, or the extent of demolition work. Photographs showing depths, levels or size may require an object, or tape measure, to show the scale, while in others it can be useful to include the particular machine, or piece of equipment, working on the variation.

Photographs are important to record safety incidents. These should be taken immediately after the incident occurred, before the site has been disturbed too much, and should include the date and time.

Photographs can be used to discuss potential design or quality problems on the project with designers who aren’t stationed on the project construction site.

In addition, photographs can be used to record problems on the project, such as; lack of access, or the client’s operations or other contractors impeding the work, or damage done by others to completed work.

Photographs of subcontractors’ poor quality work or lack of safety compliance provide a record which can be sent to their management.

It is becoming more common to include photographs with punch lists and quality inspections. Most specialized checklist software makes provision for the inclusion of photographs. Photographs record that the item was checked and meets the quality requirements (especially items that will become covered up) and they also record defects which allow those rectifying them to more easily find the fault.

Photographs are an important aid to record the condition of structures when a pre-construction survey is prepared, or when an area or structure is handed to the following contractor.

When hired equipment arrives on the project it’s good practice to photograph it to record the condition. These photographs should have a date. Photograph damaged items and the condition of tires and wearing parts.

Many suppliers photograph deliveries to record that they have been delivered to the designated address. Damaged materials should be photographed so there’s a record of the damages and these photographs should be immediately sent to the supplier.

Depending on the project, photographs may be used for news stories, annual reports, and advertisements, and to show managers and stakeholders project progress. Care should be taken to check that these photographs don’t show unsafe work practices, an untidy workplace, poor quality or sensitive information since this could provide negative publicity.

Sometimes photographs in company portfolios need to be changed or trashed. Frequently I see companies with pictures that are clearly out of date with old equipment. Ensure your company portfolio has pictures of your latest projects. Often it even pays to engage a professional photographer to take project photographs for company publicity, advertisements, and portfolios. Of course always ensuring that these show the best side of your project.

Many professional bodies and even construction magazines hold annual construction photographic competitions. Having one of your projects feature amongst the finalists can be prestigious and good advertising for your company. In our company, we even arranged an annual photographic competition with the 12 best photographs featuring in a company calendar which was distributed to projects and clients. The added benefit of this was that the company received excellent photographs of the latest projects which could feature in advertisements and the company portfolio.

Consider adding some photos of similar projects to your next quotation or price submission (not too many, only a couple). Of course, make sure the photos are relevant.

Photographs of finished projects can even be useful to include in your personal résumé.

Caution
Some projects may be sensitive or be using specialized equipment, which the owner might not want competitors to see.
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What To Do, And Not To Do When Implementing New Technology

4/5/2018

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I do some work for a non-profit organization. Recently the national office decided to adopt a new accounting software package. This was done with little consultation with the branches, and in particular with the people who were actively involved with their finances. Each branch of the organization has its own requirements and way of doing things. Now it is important to standardize systems wherever possible so that every branch or division in the organization operates the same way, but for this to happen it is necessary to understand how each branch operates and their particular requirements. Then make sure that the new system can accommodate these requirements where possible. This may require the system to be adjusted slightly. It also might mean that the way some things are done at each branch or division has to change. It is however important that the new system won’t negatively impact the business unit. Things haven’t gone very smoothly with the transition to the new accounting system and the national office has succeeded in upsetting our branch treasurer and others. Thousands of words have been written in emails and much has been said about who is at fault and who is right.

I’m sure all of us at some time have been part of an organization where new software, technology, and systems have been adopted, only to find that they didn’t deliver as expected, or that they weren’t used and eventually were discarded. Inevitably this has resulted in wasted costs and wasted time, even in some cases resulting in personnel who are annoyed, demoralised, or in some cases have left the organization. So why have these systems failed, and why is implementation often done so poorly?
What should we consider when implementing new systems and technology?
The implementation of new technology can often benefit the company, enabling it to be more efficient and productive. However:

The technology must be appropriate to the company and their projects. Care should be taken when implementing systems and technology that hasn’t specifically been developed or modified for the construction industry.
The technology must have suitable local back-up and support for both maintenance and training.
It should be simple to use.
Personnel must be trained in the efficient use of the systems.
Staff must be convinced of the suitability and safety of the systems.
It must be reliable.
The new technology must improve the company’s operations, making it worthwhile to implement.
Where necessary, it must be able to integrate with existing systems and be compatible with the current popular software packages. It is important to understand what other systems will have to change to accommodate the new technology and what the cost of this will be.
The technology should be adaptable and flexible.
The suppliers should be continuously evolving the system to keep up with technological improvements.
If necessary it should be able to be expanded to accommodate future growth of the company.
The technology must be robust and able to work in remote and hostile environments – or certainly in the environments where your current and future projects are located.
It is important to consider what you are trying to achieve. Often companies adopt new technology because they believe it will solve their problems. Often new technology is just a platform which can help solve a problem, but it still needs management to implement solutions. Sometimes the problem can even be solved without going down the route of purchasing the new technology.
It’s important to understand the workings and the requirements of all those who will be required to implement the system. Often each branch or division has their own requirements and the new system should be able to meet these requirements.
Consider the timing of the implementation. For instance; we shouldn’t be implementing a new accounting package at the end of the financial year. Try and implement changes when there is some slack in the company when people have the time to implement the new system.

There are many different systems available and their prices vary enormously. Therefore, before deciding on a system it’s important to adequately research the various options, decide what you require from the system, look at where the company will be in a few years’ time (size, location, and type of projects), and consider the pros and cons of each system and how they’ll best suit the needs of the company in the future. Decisions must not be made solely on price, rather they must be made considering the benefits of the system and the ease of use. ‘Clunky’ systems often take time to use, don’t always give the desired results and end up annoying users.

Implementing new systems is time-consuming and often those implementing the system will have to work additional hours while learning new ways and to input existing data into the system. The implementation can also be disruptive to the overall running of the business. Invariably there will be ‘bugs’ and issues that have to be resolved. Often management underestimates the time and effort involved in converting to new systems and invariably unrealistic deadlines are set. Often these deadlines result in shortcuts being taken, existing data not being converted properly and ‘bugs’ not being properly solved. This can lead to long-term problems that can have negative impacts on the efficiencies of the system later. It is important to have deadlines otherwise some parts of the organization are slow to convert, but meeting a deadline should never impinge the long-term effectiveness of the system. Deadlines might have to be reassessed. Monitoring implementation is critical to ensure it’s done properly and is progressing according to schedule. Those in the organization needlessly delaying the implementation may have to be given a push in the right direction.

It is important to have a ‘champion’ to drive the process who is continually talking to those involved to understand problems and progress. Issues need to be swiftly resolved before they become a reason for some not to implement the system, or reason for employees to become disgruntled.

Management should show appreciation to that personnel who have been involved in converting to the new system and those that have had to put-up with the disruptions.
Why new systems fail

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Demolishing or Modifying Existing Structures

Corruption, Fraud and Theft in Construction

Construction Hoardings, Barricades and Fences

Why Photographs Are Essential On Your Construction Project

What To Do, And Not To Do When Implementing New Technology

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