The successful contractor

An introduction to construction variation claims for construction project managers - part 2 - Why contractors don’t always claim their additional costs

30/8/2018

An introduction to construction variation claims for construction project managers
Video 2 - Why contractors don’t always claim their additional costs or extension of time they're entitled to claim

Information in this video is from the author's books: 'Construction Claims: A Short Guide for Contractors' and 'Successful Construction Project Management: The Practical Guide' and 'Building a Successful Construction Company: The Practical Guide'. All available from Amazon in paper or ebook.

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An introduction to construction variation claims for construction project managers - part 1 - why you should submit claims

28/8/2018

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Video 1 - Why it's important that contractors lodge variation claims when they have incurred additional costs or been delayed for reasons beyond their control.

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Have You Ever Started A Construction Project That Looked So Good, Only To Find It Was A Rotten Project?

26/8/2018

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Image courtesy of phasinphoto at FreeDigitalPhotos.net

I’m sure most of you at some stage have taken a bite from a nice big juicy apple or peach, only to find that the inside was rotten. Maybe it had a worm … or worse still, half a worm. You were taken in by the external appearance of the fruit and took a giant size bite in your eagerness to taste it. Maybe, sometimes you were just so hungry that you grabbed the fruit and bit into it without first checking the outside.

Of course, you are now left with a mouthful of rotten fruit and a half eaten piece of unpleasant fruit. What do you do with it? Where’s the nearest trash can? How can you get rid of that foul stuff in your mouth before you chuck it up, and where can you rinse your mouth to get rid of the bad taste? Sometimes it’s easy and you are in the kitchen, but often you are out with friends and it’s not so easy to deal with.

Unfortunately, the same happens with contractors and construction projects. Contractors are often beguiled by projects that seem so good, then they’re disappointed once they start the project to find that it’s not so great after all. Sometimes, contractors are just so desperate for the work that they grab the project without much thought, only to find that they’ve got a rotten project. They forget to first check the project, read the contract document, understand what’s required, and know the client. Frequently contractors are too busy to price projects properly, they assume things, guess prices and hope for the best.
Then, when things go wrong, the project turns rotten, contractors are left holding the rotten project with no easy way to get rid of it. Like the rotten fruit, a rotten project can leave an unpleasant taste lingering for a very long time.

How can we avoid rotten projects?
It’s important when pricing any project to understand:

The client. Does the client have money to pay for the project? Do they have a reputation for paying contractors on time and fairly, or do they pay late and hold money unfairly? Does the client have reasonable expectations that can be satisfied? (Some clients expect a luxury sedan with the budget for a small car.)
The client’s team. Does the client have a team that can deliver information on time? Can the team manage the project? Are they organized?
The contract documents. Some contract documents apportion risk unfairly, they are one-sided in the favor of the client. Are the documents clear and free of ambiguities? Are the terms and conditions of the contract reasonable?
The scope of the project. Sometimes contractors misunderstand the scope and don’t price all the work in the contract.
The project site conditions. What is the topography on the site (steeply sloping or flat), is the site accessible, what are the ground conditions like (rock or sandy), are there other contractors already on the project or going to be working there at the same time, how will the client’s activities and operations impact the construction works?
The project construction schedule. When will the client grant access and provide information? Is it possible to complete the work in the time allocated?
The weather conditions likely to be encountered during the project. How will the expected weather impact construction?
The available resources. Does your company have sufficient resources (people, financial and equipment) of the right quality to commit to the project? Will there be sufficient suitable resources such as materials and subcontractors available to complete the project?
The risks. Every construction project has some risk and contractors are expected to manage and control these risks. However, some projects have large risks which could be devastating for the project and the contractor should the risk eventuate. It is important to understand the type of risk, their quantum and the likelihood of them occurring. In some cases for particularly risky projects, it may be best to walk away from the project.
The project’s cash flow. How much you’ll be paid and when? Who has to be paid, how much and when? Poor cash flow has destroyed many contractors, even on profitable projects. If you don’t receive money on time to pay project debts the company could become bankrupt.
Your costs. Calculate the costs of managing the work, costs of all equipment materials and subcontractors and overheads. Don’t guess.
Other possible projects. Don’t just blindly pick the first project to price. Be selective and see which project best suits the company and which one you are most likely to win. When you are presented with a whole selection of fruit you are better able to be more selective, thus choosing one that’s the ripest, juiciest and least likely to be rotten.

Conclusion
….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:

'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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Build and Renovate Your Home With Your Eyes Wide Open

21/8/2018

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Ensure your home build project is a success. An easy to read book packed with expert tips and advice to guide you through all stages of your home build, helping you avoid pitfalls and common problems.

Get the what, where, how, who, when and why questions answered.

My new book – ‘Build and Renovate Your Home with Your Eyes Wide Open’ is now available on Amazon and other online stores in paper and ebook. It’s for those planning to build and renovate a house who have limited construction knowledge.

All stages of your home building project are discussed, from deciding what you want, where you’re going to build it, what help you need, designing your home, selecting and appointing contractors, what you need to know to do everything yourself, building processes, managing construction, and finally, completing the project. In addition, there are chapters on contractual and financial matters, as well as how to avoid common construction mistakes. To conclude, there are suggestions for simple changes you can make to improve your home. It’s an easy read book packed with expert tips and advice to ensure home building projects are a success.

The information in this book will save you thousands and it will help you make your new home an even nicer place to live.

Get your book today. Click on any of the links below to preview your copy.

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The 10 P’s of successful construction project management

14/8/2018

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Proper Planning, Preparation and Proactive Problem Preclusion (Prevention) Prevents Poor Project Performance.

How often do we find that when construction projects go wrong that the real cause was due to poor planning and preparation? Unfortunately far too often! This is often due to the client’s (owner’s) team as much as it’s due to the contractor. Then, when there are problems on the construction project they aren’t detected early, or they’re ignored, or the wrong actions are implemented to correct the problem.

So how can we improve construction project delivery?

Planning – client
Frequently the client and their team are to blame when construction projects go wrong because of their poor planning. Proper client side planning includes ensuring that:

The scope of works is complete.
The design is good – it delivers on the design brief and scope of works, it is constructible and practical, providing a practical and cost effective solution to satisfy all stakeholders.
Contractors are provided all the necessary information and documentation to price the project.
Contract documentation is complete, sufficient and not ambiguous or contradictory. The rights and obligations of all parties are clearly set out.
The right contractors are selected and the selection isn’t based on price alone.
All permits and permissions are in place.
Site investigations and preparations are thoroughly done.
The budget has been calculated correctly, it’s been checked and it’s sufficient.
They understand the project risks.
They have realistic expectations for the project.

Planning – contractor
Good planning by the contractor includes:

Understanding the project requirements.
Selecting appropriate construction methods.
Ensuring there are sufficient resources for the project, and that these resources have the required skills.
Preparing a proper project schedule. This schedule shouldn’t be squeezed to fit the client’s time frame if it’s not possible and is unrealistic. The schedule must be resourced properly, the task links must be correct, the schedule must allow for all of the project restraints including the expected weather conditions, and there must be sufficient time allowed for finishing, snagging and commissioning the project.
Understanding the contract document, including their rights and obligations. It’s too late to start reading the contract document halfway through the project when a problem arises!
Ordering the correct materials timeously.
Implementing proper safety management systems at the start of the project.
Implementing adequate quality systems and controls before starting work.
Ensuring that all permits and permissions are in place.
Checking that all insurances are in place.

Preparation – client
The client’s proper preparations for the construction work includes:

Ensuring everything is ready for the contractor, including, access to work areas, construction information and project facilities.
Checking that all project permits are in place.
Checking that all finance is in place and that their cash flow will be sufficient for the duration of the project.
Ensuring they’ve fulfilled all their contractual obligations, including supplying utilities, services and facilities as required for construction.
Ensuring that the contractor’s team understands the rules and regulations governing the project site and that all hazards have been made known and are understood.
Setting up proper communication channels between all parties.
Ensuring that the client’s team understands their responsibilities and limits of authority for the project.
Checking that materials and equipment supplied by the client will be available when it’s required.
Checking the contractor’s construction schedule to ensure that it complies with the project requirements and that they can deliver access and information in accordance with the schedule.
Ensuring that there are no gaps in the project, or outstanding tasks.

Preparation – contractor
The contractor’s proper preparations for construction work include:

Having the right resources in sufficient quantities available when they’re required on the project.
Ensuring that construction materials have been ordered correctly. Following up to ensure materials will be delivered on time in accordance with the construction schedule.
Appointing the right subcontractors (not necessarily the cheapest) using the appropriate contract documentation.
Communicating the construction schedule to those doing the work.
Communicating the project rules, requirements and expectations to their workers. This includes safety and quality.
Communicating the chosen construction methods to their team.
Checking that the client has provided access and information for the construction work in accordance with the contract, and that the client has fulfilled their contractual obligations.
Ensuring all safety measures are in place for the construction work and that there are proper controls to manage hazards.
Ensuring their team understands their roles, responsibilities and limits of authority on the project.
Putting in place proper document control systems – where documents can be easily distributed and stored, where they can be readily accessed and are protected.

Proactive Problem Prevention
Proactive problem prevention includes:

Ensuring that reporting systems are in place on the project to detect problems early.
Regularly review reporting systems (schedule, quality, safety, financial, budget, claims, etc), ensuring that the information in the system is correct and that concerns and problems highlighted in the reports are acted on.
Assessing and understanding the project risks. Implement mitigation measures to prevent risk events occurring and to lessen the impacts if the risk event occurs. Risks should be continually re-evaluated during the life of the project.
When problems are detected the true causes of the problem should be uncovered. Often the symptoms are addressed and not the underlying cause, which leaves the problem to fester and grow.
Focus on problem solutions, rather than excuses or looking for blame.
Not ignoring problems until it’s too late. Remember where there’s smoke there’s usually a fire. Problems on construction projects seldom resolve themselves and frequently they only get worse. Early intervention is essential.
Communicate regularly with the project team. Encourage the project team to highlight potential problems. Communicate concerns and solutions to the team, ensuring that the solutions are implemented promptly and effectively.
Regularly checking design and construction work.
Continually planning ahead to ensure that everything will be in place for the upcoming activities.
Actively managing the construction project.

Conclusion
Your construction project can be a success. Plan, prepare and be vigilant to foresee, prevent and solve problems. As I always say – it’s better to be a fire prevention officer than a firefighter, because it’s easier to prevent a fire than it is to extinguish a raging inferno which has already caused damage.
Remember the 10 P’s to ensure your construction project is successful – Proper Planning, Preparation and Proactive Problem Preclusion (Prevention) Prevents Poor Project Performance.

What problems have you encountered on construction projects that could have been prevented by proper planning and preparation?
Do you have a proactive problem prevention strategy on your project?

This article is adapted from information in the author’s popular books: 'Successful Construction Project Management: The Practical Guide' and 'Building a Successful Construction Company: The Practical Guide' and 'Construction Project Management: Tips and Insights'
'Construction Claims: A Short Guide for Contractors' is another of Paul's useful books.
Paul has recently published 'Construction Management: From Project Concept to completion'.
Paul's new book: 'Build and Renovate Your Home With Your Eyes Wide Open' is for those with little construction experience who want to build or renovate a house. It's filled with tips and suggestions to help you on your way, ensuring you avoid the pitfalls of home construction projects.
These books are available on Amazon and other online book stores.
Paul publishes articles regularly on LinkedIn and his website.

Paul writes regular articles for other websites, gives lectures, mentors, and is available for podcasts and interviews.

© 2018 This article is not to be reproduced for commercial purposes without written permission from the author.

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World Architecture Festival 2018 shortlist

13/8/2018

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https://www.bbc.com/news/in-pictures-45113083

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How Do You Deal With Customer Complaints? It will impact your construction company if it's done poorly!

8/8/2018

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Image courtesy of bplanet at FreeDigitalPhotos.net

While traveling through Alaska a couple of years back we received shoddy service at the hotel restaurant (cold food, lengthy waiting times and some items on the menu out of stock). The following morning I dropped an item on the bedroom floor. When bending down to pick it up, I glanced under the bed and was appalled to see a thick layer of dirt, a used tissue, and a discarded plastic cup – obviously, no one had bothered to clean under the bed for months. Closer inspection of the rest of the room revealed more dust and dirt. This wasn’t a cheap hotel, and they were serving dozens of guests every day.

Now I believe in reporting a problem to management, so before checking out I asked to see the manager. I told him what I had seen in the room and offered to show him my room. He declined the offer. I was given a sad story about how difficult it was to get good help and that this was the start of the summer season. My wife and I were each given fifty dollar vouchers. I really didn’t get the impression that anything was going to change at the establishment which was owned by a large company, so I sent a complaint to their office. Several months later I received a call from a junior representative to ask me some questions, they undertook to forward my complaint and gave me another fifty-dollar voucher. That was the last I heard about the matter.

Now I often submit reviews on TripAdvisor, both good and bad. This hotel got a poor review from me. I was fascinated to see that several months after my review was posted other reviews featured similar complaints, so obviously, no one bothered to take my comments seriously.

Recently I stayed at a guest lodge in Johannesburg, and was appalled at how dirty the room was; black mold all over the shower, dust, and dirt everywhere torn bath mat, cigarette burn in the sheet (and no this wasn’t some cheap boarding house but a supposedly upmarket hotel). Needless to say, my review was not favorable. The management did reply to my review and said the guest lodge was undergoing an upgrade and I was welcome to return when it was complete, and I would receive a complimentary night’s accommodation. Really, the hotel is undergoing upgrades and this was the excuse for a dirty room, ragged bath mat, etc.

I’ve noticed recently that many companies offer a bottle of wine, voucher, or gift to customers that complain. This seems like a bribe to me. Here is something for free, now go away and stop complaining.

But I’m not complaining to get a free gift, rather I’m complaining so that action can be taken to improve the situation so that the following customers get better service than me.

In construction, things will go wrong. We will have unhappy customers. Customers will complain. In fact, I welcome customers’ complaints. At least it means they are still talking to us rather than customers talking with their feet. The first we know they are unhappy is when they don’t return – then it’s too late. We’ll never see them again, we’ll never get the chance to convince them that we can do better, and we’ve probably upset other customers in the meantime with the same fault.
So how should we respond to customer complaints?
Well, I think the first thing is to listen to them. Often managers try and interrupt customers, argue with them, or make excuses – even blaming others. Invariably this makes the customer more irate. No matter how annoyed the customer is, let them get the problem out. In fact, offer to take them to some chairs so you can discuss the problem and you’ll often find they eventually run out of steam. Just the act of sitting down and listening quickly deflates them.

It’s important to acknowledge the problem, even if it seems trifling to you. Understand what the problem is.
Outline what steps you will take to correct the problem. Even follow up with the customer later (a telephone call or email) to tell them what has been implemented to correct the problem and prevent the problem from recurring.

Equally important is to ensure that the problem has in fact been corrected. Complaints and problems that are ignored can quickly upset an unhappy customer even further. But more importantly, as long as the problem isn’t sorted there will invariably be more unhappy clients.

As a manager, it’s easy to make excuses, or blame others. But, is an angry client really interested in excuses? As management, we need to realise that we are responsible for those that are working for us. If they aren’t doing what they should be, then it reflects on us. Sure, we can’t be everywhere all the time, but it is our responsibility to ensure that those working for us understand what’s expected from them and that they have the skills and resources to deliver. It does mean that we should be continually checking on people and processes to ensure they are all performing correctly, and making appropriate changes when there’s a problem.

Sure there are some customers who will complain about nothing. But make sure that you do investigate the problem to ensure there isn’t an underlying problem that you missed. In fact, often a problem, such as poor quality or rude service, is indicative of poor management. If management is slipping up on the basics of quality management they could be slipping up elsewhere, and before you know it the project is losing money.

Sometimes the problem isn’t attributable to your company at all. Maybe the client has unreasonable expectations, they were expecting marble floor tiles and not ceramic ones. Well, explain to them that they are only paying for ceramic tiles and that’s what was in the specifications. Equally important is to ensure that your client has reasonable expectations. Don’t advertise yourself as a five-star hotel if you are a boarding house. Don’t advertise that your client will receive a luxury home when they won’t be. Of course, the fact that the house isn’t a luxury house should never be an excuse for poor quality. No matter what the price of the project, the client has a right to expect a quality build. Sure, cheaper projects may be smaller and have lesser specifications, but a cheap price should never be an excuse for poor quality workmanship or substandard materials.

Sometimes the problem may be due to a design fault. If the designers are appointed by the client then point out why the problem isn’t yours, but offer advice on what steps the client could take to rectify the problem where possible.

Always try and be understanding. Clients have usually paid lots of money and they expect to receive a quality product and value for their money.
Conclusion

....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.
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 Management: From Project Concept to Completion'
'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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An introduction to construction variation claims for construction project managers - part 2 - Why contractors don’t always claim their additional costs

An introduction to construction variation claims for construction project managers - part 1 - why you should submit claims

Have You Ever Started A Construction Project That Looked So Good, Only To Find It Was A Rotten Project?

Build and Renovate Your Home With Your Eyes Wide Open

The 10 P’s of successful construction project management

Proper Planning, Preparation and Proactive Problem Preclusion (Prevention) Prevents Poor Project Performance.

World Architecture Festival 2018 shortlist

How Do You Deal With Customer Complaints? It will impact your construction company if it's done poorly!

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