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High Employee turnover? The sooner you know the better.

27/6/2017

High employee turnover in construction and field service – are your workers deserting a sinking ship or are there other underlying problems?
Some projects have a large turnover of employees with people continually leaving and new employees taking their place. Unfortunately, some managers have an attitude that it’s ‘good riddance’ and if someone wants to leave they should – and the sooner the better. However, this churn of people can be disruptive and expensive for the project.
The costs of high employee turnover:
A high employee turnover rate:

Causes the project to lose a skill which has to be replaced, which could take some time. Without the skill, certain tasks may not be able to be done. Others might have to fill in for the missing person.
Can cause a problem when there’s a shortage of skills to replace the person leaving, and the person may not be able to be replaced.
The absence of a vital skill such as a crane operator may mean that others can’t do their tasks until there’s a replacement operator.
Means each time a new employee arrives on site they have to learn the project rules and processes, which may take time before they become effective, resulting in lost productivity.
Increases recruitment costs. Often there are advertising costs, recruitment fees and management time required to interview potential recruits.
Creates additional employment expenses, such as; medicals, inductions and personal protective clothing.
Sometimes requires the replacement comes at a higher salary.
Often sees the best employees leave first.
Results in other employees having to shoulder more responsibility and do more work in the absence of the person that’s gone.
Can impact morale since those left behind find the continuous churn disruptive and disconcerting and they start to consider if they should also be leaving.
When those in management leave there’s often a knowledge gap and the new person has to understand the project, the team, the client and what’s been done and what they have to pick up. Often vital information can be lost especially pertaining to variation claims. Sometimes tasks fall between a gap and are left undone until they eventually become a problem and a delay.
Often employees considering leaving the project are less productive than they should be. They are disinterested in the task at hand and consumed with making arrangements for their next job. They may be actively engaging other workers and spreading their discontent with the project. Employees working their notice time can be particularly disruptive with no interest in the project at all.
When we employ someone new there is always the risk they’ll be unsuitable – no matter how carefully we check their credentials. Sometimes it is the case of ‘better the devil you know, than the one you don’t’. It sometimes takes time to uncover the new person’s strengths, weaknesses, and foibles.

What causes high employee turnover?
If the project has an excessively high rate of employee turnover it’s important to ascertain the possible reasons for this. There are many reasons why people resign, and sometimes the problem is simple and easy to remedy for example:

It may be due to a particular staff member being abusive.
Sometimes employees resign because there are more attractive working opportunities elsewhere, and you may not be able to do much, but it could be worthwhile to investigate what changes can be made to make the project conditions more attractive.
....Continue Reading.......

This article was first published on the ClockShark website. To visit this website and continue reading the article click on the link above.
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To read more about the author’s books and find out where you can purchase them visit the pages on this website by clicking the links below:
'Successful Construction Project Management: The Practical Guide'
'Building a Successful Construction Company: The Practical Guide'
'Construction Claims: A Short Guide for Contractors'
'Construction Project Management: Tips and Insights'
'Construction Book reviews'
To read more about the author visit the page 'Paul Netscher'
Want to contact Paul Netscher please enter your details on 'Contacts'
Find out how Paul Netscher can help you

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© 2017 This article is not to be reproduced for commercial purposes without written permission from the author.

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Will your project be finished on Time? This checklist will help you.

20/6/2017

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Finishing a construction project can be hectic and, sometimes, even chaotic. The project team is often focused on finishing the obvious work, while sometimes also being distracted by moving onto their next project. Unfortunately, in the rush to complete the project many small, but sometimes important, items are overlooked which could ultimately delay completing the project. In some cases, they could prove costly when items aren’t executed properly.

To make matters worse contractors often start removing staff from a project before it’s finished so that project costs are reduced, or, so they can start a new project. Sometimes these are key team employees who often have project knowledge that could be essential to close out the project correctly.

To avoid problems, it’s worth preparing a completion list several weeks before the project is due to be completed, and then allocate ‘action items’, with their completion dates, to those responsible for completing the items. It’s important to ensure that subcontractors and suppliers are aware of items they must attend to – particularly when it comes to supplying documentation such as operations manuals and warranties. Many project handovers have been derailed by a subcontractor who didn’t fulfil all their obligations.

In some cases, it may even be prudent to prepare a completion schedule so that progress of the items can be monitored.

Here’s a construction project checklist of items to consider:Some of the items which should be considered at the end of the project include:

Tying in services and utilities (such as power, water, gas and in some cases roads and other infrastructure) to the permanent supplies and existing facilities. These connections often require additional planning since they may require shutting down of existing services which might impact the client’s operations and even neighbors.
Completing all outstanding items. I’ve been called backed to a completed project when our client discovered we had omitted a concrete base for a piece of equipment they were installing. Not only was this embarrassing but it cost us a great deal of money since the project was a couple of hundred miles from our nearest other projects. So much simpler and cheaper if we had completed it while we were working on the project!
Completing all commissioning and testing. Again, this can take several weeks and often can’t take place until the facility is complete and there is sufficient water, power, and other products.
Completing all snag lists or punch lists, including those prepared by the client or their representative.
Obtaining the certificate of practical completion from the client.
Obtaining the required operations or occupation permits where required.
Handing over quality documentation, commissioning data, operations manuals and warranties to the client.
Handing over ‘as-built’ drawings.
Where necessary, instructing the client on the operation of installed equipment.
For buildings, handing over all the keys (which are clearly marked) to the client.
Handing over all spare parts (as specified in the contract document) and client-purchased materials to the client.
Getting the release of sureties or bonds from the client and returning them to the institution which issued them.
Requesting the release of the retention money or retention bonds.
Putting construction equipment off-hire and transferring them off the project.
Checking with suppliers of hired equipment if there are outstanding items. If items can’t be found it may be necessary to do a ‘sale by loss’ transaction – pay for the missing item. Sometimes we have thought we’ve returned everything only to receive rental invoices for items several months after the project had been finished. By then it’s difficult to find the missing item or even to prove it was returned.
.......To continue reading another 15 useful points click on this link.......

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London fire - 6 questions to be asked

15/6/2017

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Read from the BBC - London Fire 6 questions to be asked
See this frightening vision
Are your buildings safe?
Are the materials on your project safe?
What steps will you take today to ensure a similar tragedy doesn't occur on one of your projects?

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The Alarming Truth about Using Old Construction Equipment

7/6/2017

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Using old construction equipment isn’t as cheap as you might think

The other day I was watching a mobile crane lifting items from a truck onto the roof of a 3-storey building. Now nothing unusual with this, except the operator sat in a cab which could be raised up to a height where he was level with the roof. He could see exactly where the load was being placed in the middle of the roof. He wasn’t dependent on someone talking to him on a radio or standing on the edge of the roof guiding him with hand signals. When he collected the load from the truck he was looking down into the truck and could clearly see the load. The whole operation went quicker and more safely than it would normally go with a conventional mobile crane with the operator’s cab placed a couple of metres off the ground. Furthermore, the operator wasn’t craning his head upwards at an awkward angle to see the roof 12 meters above him. He also didn’t have to look straight up into the sun.

I marvelled at how the design of construction equipment has improved over the years. I was reminded that many years ago the company I worked for operated cranes that were 20 and more years old. In fact, the head of the equipment department was proud of the fact that his team kept these old cranes running, sometimes long past their life expectancy. The cranes had been paid for several years before so the rental rates the projects were charged were nominal. Our estimating department used these low rental rates when they priced new projects which gave many projects a winning price advantage. However, this sometimes caused problems when the cranes weren’t available when the project began, and the project team found they had to hire cranes from external sources at rental rates nearly double what the estimator had budgeted in the project price.

Now it was one thing having an item of equipment that was cheap to rent, but it was another thing when the equipment broke down repeatedly. In fact, the cheap item of equipment suddenly became very expensive when teams were left standing because the crane was broken! The project was delayed. Teams had to work late to compensate for the time when the crane was out of action. Supervisors and workers became frustrated. Quality was compromised when the crane broke down in the middle of pouring concrete. Furthermore, the equipment division had to rush mechanics to the project to undertake emergency repairs. Sometimes the item couldn’t be repaired on the project and had to be transported back to the yard and a replacement item had to be ordered and shipped to the project. Costs mounted!

I realised the folly of using old equipment and eventually persuaded the company to purchase a new fleet of cranes which were more expensive to rent but far more reliable.

This same company had an extensive fleet of earthmoving equipment and had kept meticulous records of the maintenance and finance costs of the items. They carried out various studies relating the purchase price of new equipment, plus the cost of repairs and maintenance of the item over time, and taking into account the resale value of the item when the company sold and replaced it. Now the cost of the repairs and maintenance increased the older the item was, and the resale value decreased the more hours the machine worked. By plotting these values it was possible to work out the optimum point when the item should be replaced – after this point the item became more costly to maintain and keep. This optimum point varied between different items of equipment (excavators, loaders, graders, etc). Of course, this does generalise slightly as not every item of equipment is exactly the same, or has operated in the same conditions, or with the same operator. Indeed, I’m sure many of us have owned the dud vehicle that has given trouble from day one while others with the same vehicle haven’t had one iota of problems. Then there are other items that just seem to go on and on, as good as the first day they left the showroom.

The disadvantages of using old construction equipment

Construction companies that own their own equipment often face challenges of deciding whether to purchase new or used items. Then when should the item be replaced? Projects that rent or hire equipment often rent the cheapest item without considering the age or reliability of the machine. Making the wrong decision can be very costly – but often these costs aren’t obvious.

So what are the disadvantages of using older equipment?

When equipment breaks down the team is left standing which impacts productivity – this can be costly as the team relying on the machine is left standing. A crane breaks and the project can’t lift materials. An excavator breaks down and the trucks it was loading are left standing.
When an item is broken the project is often delayed which means the project incurs additional costs as well as risking the client imposing delay damages.
Often management becomes involved with the repairs, which takes their time away from other tasks. I have known supervisors that have spent hours wrestling with a machine to get it repaired while their team has been left unsupervised. Certainly, management have to arrange repairs and replacement machines which takes time from their other duties.
The project team becomes frustrated and sometimes demoralised when equipment frequently is broken. Employees may eventually leave the company in frustration causing further problems for the project.
If the item is owned by the construction company then they have the cost of the repairs which could include; the cost of the repairman, the spare parts and the cost of shipping the parts to the project. Often these repairs are urgent and parts may have to be airfreighted at additional expense. The more remote the project site the more costly this exercise can be.
In all of this our clients become frustrated. They want to see progress. They don’t want to see their project delayed when the contractor’s equipment frequently breaks down. Clients want to employ contractors they can rely on, and this means employing contractors that use reliable equipment.
If the item cannot be immediately repaired, or it cannot be repaired on the project, it has to be transported back to the company’s equipment yard or the nearest place where it can be repaired, and a replacement item has to be taken to the project. This can be an expensive operation, particularly for large items. But sometimes it’s not as simple as this and a replacement item isn’t immediately available, or the replacement comes at a higher cost.
As mentioned at the start of the article new equipment comes with new improved features which enhance the ergonomics of the machine. It could mean that the machine is more comfortable and easier to operate which results in the operator being less fatigued – which helps productivity and is better for our employees’ health. Often efficiencies and speed are enhanced which means the item can produce more and the productivity is better. Fuel efficiencies are better which reduces costs. Sometimes maintenance costs are less.
A company’s equipment is an advertisement for it. Equipment with logos are often what the public sees. An older piece of equipment, leaking oil and belching smoke isn’t a good look for any company. Some of our clients complimented us on the new equipment we were using, even when these items weren’t ours, but were rented. Equipment that looks new, appears modern and is well looked after creates an impression that the company is professional and can be relied on.
New equipment is safer. It normally comes with better safety features. Being new usually means it is less likely to break down or fail. But also, consider the example of the crane above – if the operator can clearly see the load at all times, it’s got to be safer than working ‘blind’, guided by someone else.
New equipment is usually more environmentally friendly. Older equipment can leak oil and when hydraulic hoses break there is often a major spill which must be cleaned up. Older equipment is often noisier and belch smoke which is detrimental to workers as well as neighbours and the public. As mentioned earlier older equipment often uses more fuel.
The resale value of the equipment decreases with the age of the machine, while the maintenance costs increase.

Choosing the right construction equipment

Construction companies need to carefully consider whether to purchase new equipment or previously used equipment. Then they should consider when to replace the item. These decisions can have major financial consequences as well as impacting the success of their projects. In some cases, when the company doesn’t have the financial ability to purchase a new machine, or a replacement item, it may be better not to own the item, but to rather rent the item from an external provider.

Projects should carefully consider when they hire equipment for the project whether the cheapest item available is really going to be the best, and ultimately the cheapest item for their work. A broken piece of equipment can be very costly and disruptive to the project.
#constructionequipment #constructionmachines #constructionmanagement #contractors

This article was first published on the ClockShark website.
Please share this post
To read more about the author’s books and find out where you can purchase them visit the pages on this website by clicking the links below:
'Successful Construction Project Management: The Practical Guide'
'Building a Successful Construction Company: The Practical Guide'
'Construction Claims: A Short Guide for Contractors'
'Construction Project Management: Tips and Insights'
'Construction Book reviews'
To read more about the author visit the page 'Paul Netscher'
Want to contact Paul Netscher please enter your details on 'Contacts'
Find out how Paul Netscher can help you

Order your books from Amazon
Order your books from Amazon UK
© 2017 This article is not to be reproduced for commercial purposes without written permission from the author.

The other day I was watching a mobile crane lifting items from a truck onto the roof of a 3-story building. Now nothing unusual with this, except the operator sat in a cab which could be raised up to a height where he was actually level with the roof. He could see exactly where the load was being placed in the middle of the roof. He wasn’t dependent on someone talking to him on a radio or standing on the edge of the roof guiding him with hand signals. When he collected the load from the truck he was looking down into the truck and could clearly see the load. The whole operation went quicker and more safely than it would normally go with a conventional mobile crane with the operator’s cab placed a couple of meters off the ground. Furthermore, the operator wasn’t craning his head upwards at an awkward angle to see the roof 12 meters above him. He also didn’t have to look straight up into the sun.

I marveled at how the design of construction equipment has improved over the years. I was reminded that many years ago the company I worked for operated cranes that were 20 and more years old. In fact, the head of the equipment department took particular pride at how his team kept these old cranes running, sometimes long past their life expectancy. The cranes had been paid for many years ago so the rental rates the projects were charged were nominal. Our estimating department used these low rental rates when they priced new projects which gave many projects a winning price advantage. However, this sometimes caused problems when the cranes weren’t available when the project began, and the project team found they had to hire cranes from external sources at rental rates nearly double what the estimator had budgeted in the project price.

Now it was one thing having an item of equipment that was cheap to rent, but it was another thing when the equipment broke down repeatedly. In fact, the cheap item of equipment suddenly became very expensive when teams were left standing because the crane was broken! The project was delayed. Teams had to work late to compensate for the time when the crane was out of action. Supervisors and workers became frustrated. Quality was compromised when the crane broke down in the middle of pouring concrete. Furthermore, the equipment division had to rush mechanics to the project to undertake emergency repairs. Sometimes the item couldn’t be repaired on the project and had to be transported back to the yard and a replacement item had to be ordered and shipped to the project. Costs mounted!

I realized the folly of using old equipment and eventually persuaded the company to purchase a new fleet of cranes which were more expensive to rent but far more reliable.
This same company had an extensive fleet of earth-moving equipment and had kept meticulous records of the maintenance and finance costs of the items. They carried out various studies relating the purchase price of new equipment, plus the cost of repairs and maintenance of the item over time and taking into account the resale value of the item when the company sold and replaced it. Now the cost of the repairs and maintenance increased the older the item was, and the resale value decreased the more hours the machine worked. By plotting these values it was possible to work out the optimum point when the item should be replaced – after this point the item became more costly to maintain and keep. This optimum point varied between different items of equipment (excavators, loaders, graders, etc). Of course, this does generalize slightly as not every item of equipment is exactly the same, or has operated in the same conditions, or with the same operator. Indeed I’m sure many of us have owned the dud vehicle that has given trouble from day one while others with the same vehicle haven’t had one iota of problems. Then there are other items that just seem to go on and on, as good as the first day they left the showroom.

14 Comments

High Employee turnover? The sooner you know the better.

Will your project be finished on Time? This checklist will help you.

London fire - 6 questions to be asked

The Alarming Truth about Using Old Construction Equipment

Using old construction equipment isn’t as cheap as you might think

The disadvantages of using old construction equipment

Choosing the right construction equipment

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