Almost every construction project has changes, delays and extra work and invariably contractors incur additional costs. Many of these costs can be claimed back from clients when the contractor submits a variation claim. It should be straight forward, there was a change and the contractor should be paid their additional costs. But, as we’ve previously discussed the contractor must substantiate the reason for the variation claim as well as the costs.

​Regrettably, many construction variation claims are poorly put together and clients reject the contractor’s claims.

But, even when the client approves the claim there’s no guarantee that all of the contractor’s costs will be reimbursed. In fact, compounding the problem is that contractors often don’t claim all of the costs they incurred because of a variation event – costs which they’re entitled to claim. This may seem hard to believe, after all who would work for free, or not claim legitimate costs?

But, it regularly happens because contractors forget some costs, they don’t keep accurate records, or they don’t fully appreciate the full impacts of the variation on their work, including the wider impacts of the variation on work not seen as being directly impacted by the event.

Of course, there are also some contractors who become gung-ho when they see a variation claim. They think they can add everything and anything to increase the value of their variation claim. In their excitement of adding inflated and fictitious costs they often overlook legitimate costs.
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Naturally, most clients are generally wise to contractor’s ways, and any costs and delays which can’t be substantiated will be rejected and the contractor will face disappointment when they only receive a fraction of what they tried to claim from the client. In the process, they’ve also damaged their reputation as clients generally don’t like to be taken advantage of. Unfortunately, in this process, the contractor may have lost the opportunity to claim the legitimate costs that they overlooked in their rush to fabricate costs.

It’s vital to understand the full impacts of the variation, which could include disruption to the construction work and reduced productivity of both people and construction equipment. Then there’re impacts on other project work, which could include blocking access, taking construction resources from these activities, discontinuity of work, underutilisation of resources, and interference with the work.

​Costs to consider include:
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1. Labour costs
Including base wages, overtime costs, allowances, personal protective gear, and transport and accommodation of workers where this is supplied by the contractor.
2. Equipment costs
Including the hire costs, the wages of the operator, fuel, lubricants, insurance, spares, and services where necessary.
4. Mobilisation costs for equipment and people
Of course, don’t forget that items brought to the project for the additional work must be demobilised after they are no longer required.
5. Material costs
Including transport, offloading, wastage, testing, a design where necessary, and all adhesives and fixings.
6. Supervision costs
Including salary, transport, accommodation, computers, etc.
7. Access equipment and cranes
Either additional equipment or the equipment is required longer on the construction project than planned
8. Off-site costs
Such as project personnel working from the head office.
9. Project overheads
Such as office hire, insurances, bonds, security, site facilities, etc.
10. Subcontractor’s costs
Check that they've provided all their actual costs. You don't want them to submit a further claim after you've lodged your claim with your client. Of course don't forget your costs where you've had to provide things to the subcontractor - say transport, cranes, access scaffold, transport, etc.
11. Demolished materials cost
Where demolitions are involved, then the cost to load and cart the demolished materials from the site, costs to deal with hazardous products, dump fees, temporary supports, and bracing, etc.
12. Design cost
Where required, design fees.
13. Profits and overheads on the above
14. Protection of existing and completed work to enable the additional work to be carried out.

​Of course, the client can request a breakdown of these costs, so they should be provable. Often projects involve multiple variation claims and it’s important that contractors are consistent and use the same base cost for items on the variation claims. For instance, it will appear suspicious if the contractor uses $15 an hour for a labourer on one claim and $16.50 in another claim.

​The environment is facing pressure everywhere from human impacts. There are few places in the World untouched by human impacts, which range from plastic debris, to air pollution and smog, through to wholesale destruction of forests and rivers. Environmental damage is leading to the extinction of plants, birds and animals, and it’s impacting our health. More people are becoming environmentally aware of their actions and choices on our planet.
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More and more companies are being forced by shareholders, clients and the general public to take a more considered approach to the environment. Banks aren’t funding some projects because of the environmental risks, and the danger of customer and public backlash. But often a lender’s refusal to fund companies and projects is based on pure financial considerations, and companies that are wasteful, or which carry out unsustainable and unproductive practices, are frequently companies which are less profitable and less successful.
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Indeed, being environmentally aware and doing our bit for the environment usually has other benefits, and the biggest benefit is to our wallets.

• Prevent rework. Frequently there are errors on construction projects. From items that are poor quality to structures that are the wrong dimensions or built in the wrong place. Demolishing items and rebuilding them results in extra materials and resources being used. In addition the demolished material has to be sent to the rubbish tip. Of course breaking the faulty item and disposing of the waste is costly, plus there’s the cost for the replacement materials and the work to redo the items. Some estimates have put the cost of rework on construction projects at 10% of the project cost. This may seem high, but even if the cost is 2%, it’s often a substantial number. Contractors can reduce the damage to the environment by ensuring that work is done right first time.

​

• Don’t waste material. In the course of construction projects many waste bins and trucks are filled with off cuts and bits of unused building materials. These materials have been paid for and they’ve impacted the environment in some way. In addition they are now carted to a rubbish tip at additional cost and environmental damage. Ordering the right quantity of material, planning cutting to reduce waste, eliminating breakages, mixing the right amount of material, and installing construction materials correctly, will help eliminate waste, thus adding to your profits and reducing damage to the environment.

• Use the correct size construction equipment with the right tools. Hiring a large machine may seem efficient, but a large machine uses more fuel. Machines which are too small and under-powered are also inefficient and can use more fuel to do the same amount of work. Construction equipment that isn’t maintained or that has blunt cutting edges has to work harder using more fuel and costing more money.

• Protect finished work. I hate seeing completed work damaged by follow on trades. It costs time and effort to repair the damaged items. The damaged item often has to be removed and sent to the dump and replacement material fixed in place. Your construction team must be encouraged not to damage completed work and to take steps to protect their work from damage.

• Separate waste for recycling. Vast amounts of waste are produced on construction projects, and this includes packaging, containers and leftover building products. Disposing of rubbish is expensive, taking into account the dump fees and the cost to cart the materials to the dump. This is all a cost to the environment and a waste when materials that could be recycled are simply dumped in the general trash. Separating recyclables can reduce dump fees and it’s good for the environment.

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• Use fuel efficient construction equipment. Hiring older machines is often cheaper than buying or hiring new equipment. But this can be false economy as older machines are often not fuel efficient, they may not be as easy to operate as newer machines so they’re less productive, and they could break down more frequently, even bursting hydraulic hoses and pipes and leaking oil onto the ground. Lost production while machines are being repaired costs the project time and money. Older construction equipment may also belch more harmful pollutants in the air, they can be noisier and more prone to leaking oil on the ground.

• Ensure construction equipment is used productively. Productivity on most construction projects is poor and regularly we see machines idle, waiting for access, waiting for direction, or waiting for other equipment. Trucks wait to be loaded by excavators, excavators wait for trucks, graders wait for trucks, etc. Often the waiting equipment is left idling burning fuel. Poor planning is often to blame and it’s costing contractors money and it’s harmful to the environment.

​

• Reuse material. Many items are used once on construction projects, whether it’s formwork or protective coverings. Reusing items not only reduces the costs to purchase new items but you’re also reducing the amount of rubbish going to the tip.

• Eliminate water wastage. I’m sure we’ve all observed water running unabated from construction projects. Often this water is from leaking pipes or taps that haven’t been closed properly. Projects with flushing toilets may have leaking toilets that aren’t repaired. Yet water is a scarce commodity in many regions and usually somebody has to pay the project’s water bill.

• Save vegetation where possible. Some contractors move in and flatten the whole construction site destroying all the vegetation. Usually the stripped vegetation has to be carted to the tip which costs money. After the vegetation has been removed the bare soil is exposed to the wind creating dust when it’s dry, or the soil is washed away during heavy rain, often blocking drains and covering the local roads from where it must be cleared. Remove only the vegetation that must be removed for the work. Protect vegetated areas with fencing and tape to reduce damage. Mark trees that should remain.

• Use local products. Regrettably some designers specify products which aren’t available locally. It may be possible with the designer’s permission to substitute these products with local products which don’t have to be transported long distances and which are often cheaper.

​

• Be aware of where products and materials are coming from. Some factories cause excessive damage to the environment, belching fumes into the atmosphere, dumping waste illegally, and polluting waterways. Most quarries damage the environment, but some cause excessive damage. Contractors shouldn’t purchase products from companies damaging the environment. These companies often generate poor media attention and contractors and clients could also get this bad attention. Non compliant suppliers could even be shut down, which could impact construction.

​Contractors often can’t control the design of buildings, structures and facilities. Designers have a huge say on the environmental impact of buildings. From the materials they select, to the footprint of the structures on the environment, through to the energy consumption of the completed structure, there are many ways in which the design can be optimised to reduce energy and water demands of the facility, both during construction and when the facility is in operation. The right choices will benefit the owners and the environment in the long term. When contractors are involved in the design it’s important that they make the right choices for the environment. In a future article I’ll discuss how designers can help the environment while enhancing the finished facility so it’s cheaper to operate and more healthy to those using it.

The public is becoming more environmentally aware. Clients are becoming environmentally aware. Shareholders are becoming environmentally aware. Construction companies and construction projects that are seen to be wasteful, that disregard the environment, will face public shaming and they will be in the media for the wrong reasons which will harm their reputation and business.
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More clients are seeking contractors with good environmental credentials.
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It’s imperative that contractors involve all their employees with reducing waste, improving productivity and instilling good environmental practices.

We all need to do our bit for the environment. Construction projects are a large consumer of materials and they’re a large producer of greenhouse gasses. Construction projects are often very wasteful places with poor productivity. By eliminating waste and with careful planning construction projects can become less harmful to the planet, and in doing so the project will save money and the contractor’s reputation will be enhanced.

Do your bit for the environment. Do your bit for your children’s future. Walk your project today and see how you can reduce waste. See where you will save money. Go out and get your team involved.
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What are you doing to help the environment?

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​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.
The books are available in paper and ebook from most online stores including Amazon.

In the course of every construction project, there will be delays, changes, and extra work. In order that the contractor is compensated for the time and additional costs incurred by these events, the contractor must submit a variation claim to the client.
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Clients don’t usually volunteer to pay contractors extra – even when they know they have delayed the contractor or added extra work to the contractor’s scope. So contractors have to ask for compensation and this involves submitting a variation claim.

Regrettably, many of these variation claims are prepared badly. Sometimes the contractor even forgets to claim everything (all their costs and all their time) they’re entitled to claim.

Often clients reject portions of the variation claim, or perhaps even the entire claim. This might be because the client is trying to avoid paying a claim or granting the additional time, but frequently it’s because the claim is not justified in terms of the contract, or there was insufficient evidence to persuade the client that the variation claim was justified and that the costs were legitimate.
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The onus is on the contractor to prove that their construction variation claim is legitimate and that they deserve to be compensated fully for both the extra time and the additional costs they’re claiming.

To improve the success when preparing your claim ask these questions:
1. Are we entitled to submit a variation claim?
Depending on the construction contract terms and conditions, contractors can usually only claim for variations and delays resulting from the actions of the client and the client’s team, or from events they couldn’t have foreseen when they priced the construction project. Sometimes contractors either don’t understand their construction contract document, or in an attempt to claw back time and money they’ve lost, they submit spurious claims for items they’re not entitled to be paid.

Invariably the variation claim is rejected. This is a waste of the contractor’s time, time which could be better spent elsewhere on the construction project. It irritates the client, and the client is more likely to reject or query future variation claims from the contractor because they’ll now be suspicious of the contractor.

2. Have I included all the costs in the claim?
Frequently contractors forget some costs that they’re entitled to claim. This is like leaving money lying on the ground. Always check all your legitimate costs are included. In the haste to prepare the claim often costs are overlooked or forgotten. Ask those directly involved with the work for their input into the claim – what do they know, or what can they add to the claim?

3. Will the claim make sense to the person reading it?
Construction variation claims should clearly set out the facts in simple language. What are you claiming? Why are you claiming the items? What caused the event? What were the implications of the event? Don’t assume that the person reading the claim has an understanding of the situation. In fact, sometimes, especially when the variation claim is disputed, the claim is read and adjudicated by a person who isn’t familiar with the construction project and the events leading to the claimable event.

Frequently claims are rejected because the person adjudicating the variation claim didn’t understand what the contractor was trying to say. Ask someone else to read your claim presentation and see if they can follow the claim presentation and your logic.

4. Are your calculations correct?
Sometimes contractors make mistakes when adding days and costs. Presenting an answer bigger than the figures should give will give an impression that you’re deliberately trying to cheat the client, while claiming a smaller figure than the calculations actually adds to, means that you’re doing your company out of money.

5. Is the claim consistent, and does it agree with previous claims?
Ensure that your logic is consistent and that you use the same data and figures throughout the variation claim. For example, don’t claim a worker’s cost at $15 an hour in one part of the claim and then use $16 somewhere else. Check that the figures and rates used are the same as previous variation claims. Inconsistencies will raise doubts in the client’s mind about the legitimacy of your facts and figures.

6. Can you prove and substantiate the figures used in your claim?
Clients are entitled to request a breakdown or backup to support the figures and numbers in your variation claim. It will be embarrassing if you’ve claimed say $20 an hour for a worker’s wage but you can only produce supporting figures of $16 an hour. The client will start analysing and questioning everything in your claim. Generally, clients aren’t stupid and they will question facts and figures that don’t look right.

7. Have you taken account of all the impacts of the event?
Frequently delay events and additional work have knock-on impacts which aren’t always included by contractors when formulating their variation claim. So for instance, a delay may result in work being moved into a season of unfavourable weather which could hamper and delay the project further. So you might have planned to close up excavations or buildings before the onset of the rainy season, but now the delay means that your plans are thwarted.

Other times a delay on one section might mean that resources you scheduled to move between that section and another can’t be shared, meaning they’ll be less productive, or in some cases, additional resources must be mobilised at additional costs to complete the work.

8. Have I included all the supporting evidence?
You literally have one chance to convince the client that your variation claim is legitimate. Once a variation claim is rejected it becomes difficult to convince the client that they were wrong to reject the claim. Minds are made up and difficult to change. Include all supporting documentation and evidence with your claim.

9. Have you notified the client of the claim?
Usually, construction contracts specify that the client must be notified within a specified time period that the contractor intends to lodge a variation claim. This is seen by many contractors as being unfair, but it’s there so that the client can take action to rectify the issue where possible. This could include providing the missing information or access causing the delay, or rescinding the changes or the instruction causing the variation.

Failure to timeously notify the client of the variation claim could result in it being rejected. So notify the client that a claimable event has arisen, while you formulate the impacts of the event. Indeed, sometimes the full impacts of the event can’t be assessed until the delayed event has ended.

10. Have you submitted the claim to the correct person?
Usually, there’s a nominated person that variation claims must be submitted to. Claims sent to the wrong person, or the wrong address, might be ignored. Claims which aren’t settled and paid could negatively impact the contractor’s cash flow.
​
Indeed I’ve had some projects which have nearly doubled in value because of changes and variations, so it was important to settle and agree on these claims as soon as possible. Of course, also make sure that you’ve spelled the person’s name correctly. Getting someone’s name wrong is not a good way to convince them that your claim has merit!

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​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.
The books are available in paper and ebook from most online stores including Amazon.
​© 2019 This article is not to be reproduced for commercial purposes without written permission from the author.

​Every construction company and each construction project has slightly different rules. What was acceptable on one project might not be accepted on the next. Discipline means not only complying with the rules of the project as well as the company rules, but it also means behaving within the acceptable norms of society. You and your crew are ambassadors of your company during working hours, while you’re wearing the company uniform, while on company business, and when using company vehicles. Poor behaviour will reflect badly on your company. Flouting the client’s project rules will impact your company’s reputation.

Discipline starts by understanding the company and the project rules. You can’t enforce rules if you don’t know or understand them. But of course, your crew must also know what rules apply to them, because they can’t be expected to comply with rules that they don’t know exist.

Construction project rules are often there to comply with local guidelines and permissions. Breaking these rules could result in problems for the client. Project rules are there to ensure the safety of everyone on the construction project. Project rules are there so that everyone on the project complies to the same standards.
​
​Rules which aren’t enforced will soon be ignored. Most people will always stretch the boundaries. If you know the speed limits on the roads aren’t enforced you will invariably drive faster. Even when the speed is enforced we often try and sneak a few extra kilometres over the limit, hoping that traffic officers won’t bother to stop us for a few kilometres over the limit – or if they do it will only be to give us a warning. So it is, that if a person arrives 5 minutes late today and nothing is said to them, then they are probably going to come 6 minutes late tomorrow. If you don’t say anything others will also arrive late for work and very soon your entire crew will start work 5 minutes late, then 10 minutes, and then who knows how late before you take a stand and insist people start work at the correct time. But, when one rule isn’t enforced and workers are allowed to arrive 5 minutes late, they’ll soon test the boundaries somewhere else and other rules will be bent and broken. It might sound foolish to reprimand someone for being 5 minutes late, but at what stage will you say something, and which rules will you enforce.

Often there are multiple crews and a number of managers working on a construction project. Failing to enforce discipline with your crew could cause problems with other crews. Workers see what others can get away with, then try the same thing. When their manager reprimands them for the transgression they’re often resentful of their manager and can’t understand why another supervisor, foreman or project manager allows their team to bend or break project or company rules, but their manager is a hard arse, unfair, so and so, etc. Sometimes, people in your team go and work on another construction project with another manager. They can’t understand why that manager seems to have different rules to those that you applied when they worked for you. But, of course it’s usually not different rules, it’s simply that you didn’t apply some of the existing rules, that you accepted that some rules could be bent and broken. Consequently it’s unfair on the other managers in the company who have to instil and enforce the rules you don’t enforce. It’s also unfair on the workers who now don’t know what’s right and wrong, what’s acceptable and what’s not – it could even hamper their careers, or cause them to lose their jobs. Of course the same happens the other way, where you inherit workers who came from a manager who was slack and didn’t enforce discipline. It will make your job harder.

Discipline has to be enforced fairly, consistently and uniformly. You can’t ignore one worker’s transgression, maybe because they’re hard working, even indispensable to you, then reprimand and discipline another person for the same offence. Everyone in the crew must be treated equally. No matter your personal feelings, everyone must obey the project and company rules equally. Of course, that also includes you.
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Discipline isn’t about yelling and cussing workers who break the rules. It’s about telling the person what they’ve done and that it’s unacceptable. In most cases, depending on the transgression, there’re stipulated company disciplinary procedures to be followed, and set forms of punishment.

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​This article is an extract from my book 'The Successful Construction Supervisor and Foreman' which is packed with construction project management tips and advice.
​I've written several easy to read construction management books for owners, contractors, construction managers, construction supervisors and foremen. They cover all aspects of construction management and are filled with tips and insights.
The books are available in paper and ebook from most online stores including Amazon.

​Contact me for help and advice.
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'
• 'The Successful Construction Supervisor and Foreman'
• and 'An Introduction to Building and Renovating Houses - Volumes 1 and 2'

'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'
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© 2020 This article is not to be reproduced for commercial purposes without written permission from the author.
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​Poor quality ruins a reputation and it costs money to repair. Frequently contractors remain long after the project has been completed to repair defects. Sometimes contractors have to return long after they left the project site to repair problems caused by their poor workmanship.

Think about it… would you want to return to a completed project to rectify defects? Would you employ a contractor again after they delivered a substandard project?

Many of our construction projects were the second, third, or even the tenth project that we executed for the client. Often we won new projects because of referrals from pleased clients we had worked for, or because our new client visited projects that we had completed for other clients and they were impressed with our workmanship. We had a reputation for delivering quality projects on time. In fact, clients were prepared to pay a premium to employ us at a higher price than our competitors.

Regrettably though, sometimes we did have quality problems on our construction projects which we had to rectify. We made embarrassing mistakes which we shouldn’t have made. These mistakes cost us money to fix and tarnished our reputation.

When there are quality problems on construction projects, project managers are sometimes quick to make excuses or blame their team. Usually these are the same excuses: “the construction schedule was too tight so the work was rushed,” or “we weren’t paid enough to ensure good quality,” or the favorite excuse, “you can’t get good people nowadays,” or “there’s nobody with the right skills available.”
​
Now, as mentioned above, poor quality costs money, so saying that delivering good quality will cost money is rubbish. Doing the work right first time is definitely cheaper than fixing problems later. Likewise blaming a tight construction schedule doesn’t stand up, because it takes time to rectify faults.

Invariably those contractors using this excuse do little to no training – they simply expect to find people with the right skills on the street. But, it’s not just about training, it’s also about attracting and retaining skilled and competent workers. Regrettably, many contractors have poor employment practices and are content to employ almost anybody they can afford. It takes time and effort to train and mentor people, then retains them. But this effort is more than rewarded because trained and skilled people are more productive and they will produce good quality work.

I’ve also had engineers, supervisors and superintendents tell me that they weren’t responsible for the poor quality on their section of works and that it was the quality manager who was responsible.
​
Also, I see people blaming their tools, materials, equipment, the supervisor, or fellow workers for a poor quality product.

Workers
A top-to-bottom commitment is required for quality. A construction project will not achieve the required quality standards if individual workers are not committed to producing a quality product. At the same time, even if the workers are committed and well-trained, the project will not achieve the desired quality if the supervisors, superintendents, quality engineers, and the project or construction manager aren’t committed to producing a quality product.
​
All workers and staff must take responsibility for producing the best quality product possible.

Managers
​In saying this, management must also be mindful of how they influence the quality of the workmanship on the project, and what they can do to improve the quality culture, like sending craftsmen or supervisors on appropriate training courses. They should also continually look at the construction process with a critical eye, to see if changes would improve the quality of the end product. Maybe the construction materials or equipment are genuinely substandard, making it difficult for the workers to achieve the desired quality.

Management needs to take care when selecting subcontractors and suppliers. The selection process mustn’t be purely based on price alone but must consider the quality, resources and the product that the suppliers and subcontractors can deliver. Even one bad supplier or subcontractor can jeopardise the construction project.

The saying goes that bad workmen blame their equipment. But, even good workmen struggle to produce good quality work if they don’t have the right equipment. Equipment that isn’t right, that’s old, or that has blunt cutting edges, will slow work and could impact quality. Management must ensure that the right equipment is procured. But importantly, operators and those using the equipment must look after it, ensuring that it isn’t damaged or stolen and that it’s correctly maintained.

Poor quality construction work should not be accepted, and construction project managers must not pass by substandard work without taking action. This action may be to simply chide the responsible party for minor defects, but with serious breaches of quality, consideration should be given to implementing disciplinary procedures against the parties responsible.
​
Supervisors
Each construction supervisor or superintendent is responsible for everything within their section of works, including the quality of work and the materials used. Every section manager should be responsible for the quality of their section of the works. The quality engineer, or quality manager, is appointed to assist the supervisors and section managers to monitor and record the quality, and to ensure the required quality systems are implemented and followed.

​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.
The books are available in paper and ebook from most online stores including Amazon.

​Contact Paul Netscher for help and advice.
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'
• 'The Successful Construction Supervisor and Foreman'
• and 'An Introduction to Building and Renovating Houses - Volumes 1 and 2'

'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
© 2019 This article is not to be reproduced for commercial purposes without written permission from the author.

Currently Australia is being devastated by bush-fires which have burned through five million hectares, killed many people, destroyed thousands of homes, slaughtered livestock and wildlife, damaged infrastructure and ruined farms. The fires could continue a swathe of destruction for several more months with no end in sight. Indeed, some of the worst hit areas this last week has been caused by fires which have been burning out of control for more than a month. The tragedy will take years to repair.

For more read: The scale of Australia’s bushfires and You need to leave and
We can’t stop these fires

Although the fires have been driven by unprecedented weather, it’s hard to believe that fire experts warned of a catastrophic fire season back in August, with even some warnings months before this. Devastating fires were already ravaging large parts of the country in September, yet authorities appear to have done little to help, with the bulk of the firefighting left to thousands of unpaid volunteer firefighters who have been left to fend for themselves, and have been expected to forgo wages from their normal jobs to tackle fires in dangerous conditions which have cost some their lives. The government committed an extra $11 million dollars to fighting the fires – an almost trivial amount that barely covers the cost of an extra firefighting aircraft.

For months politicians from both sides of the divide, at both state and national level, have continued business as usual. Business as usual meant bickering and minor point scoring over often pointless and inconsequential legislation, while the big problem of the fires got larger and more out of hand. Nobody stood up to say let’s deal with this problem now. Now the fires are unstoppable. Finally some politicians are doing something – but it’s far too little and too late.

After months of ravaging fires there appears to be no plan of how to deal with the unfolding disaster, there’s no plan to deal with the aftermath of the disaster, and there’s no plan to deal with fires in the future. Indeed the only plan seems to be to dole out platitudes and expressions of sympathy, and say that Australia has always faced the threat of bush-fires and we’ll get through these fires. Surely this is little help when the impact of the fires will run into the billions of dollars, little help to those who’ve lost everything including sometimes their loved ones, and of course little help to those who will suffer the consequences of the fires for years to come, indeed some who will be scarred for life and suffer permanent damage to their health.
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We can blame politicians for a lack of will power to solve the big issues. Yet in construction and many big businesses we see the same things occur and the same inaction that we blame our politicians for. Now it might seem trite to compare the devastation from bush-fires with project managers and construction projects. Yet many construction projects fail with some devastating consequences, which sometimes leads to company bankruptcies, people going unpaid, many losing their jobs, and in the worst case project failure has led to suicides.

​A few years back an apparently successful medium size construction company suddenly collapsed owing nearly $600 million. The losses were attributed to 2 construction projects. How was it possible for the company to not know about the loss making projects until 6 months before the company went bankrupt? After all, the projects had been under construction for almost 3 years and they were nearing completion. The collapse of the company wiped out shareholders, left hundreds of employees unpaid and out of a job, and left dozens of suppliers and subcontractors unpaid, causing a domino effect of more bankruptcies. Yet, this same scenario is repeated across companies almost daily.
Read: Forge Group in liquidation

​Now there are multiple reasons why construction projects fail, and usually it comes down to a lack of leadership and poor project management skills. Most project failures can be avoided. Sure there will be weather events, there will be equipment breakdowns, there will be difficult clients, there will be suppliers and subcontractors that let you down. Indeed there will always be an excuse for a project failure. But these events probably occur on every construction projects. Things will go wrong on every construction project. But good construction managers and leaders will deal with these problems. They will avoid many of the problems. They’ll mitigate the worst of the impacts caused by the issue, they’ll put in measures to get the project on track again, and they’ll put in procedures to avoid the problem from occurring again.
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So why do construction problems develop?

1. Complacency. Construction project managers are often an optimistic bunch. They assume that conditions will be perfect for construction and no one will let the project down. You can never be complacent. The next problem is lurking around the corner on every construction project and you need to be on guard all the time.
2. No early warning systems in place. No project reporting system. Project health needs to be checked continuously. Proper construction schedules, quality, safety and costing systems need to be in place. How do you know there’s a problem if you’re not monitoring your project? How do you know when it’s not business as usual and a crises is developing?
3. Ignoring the warnings. Where there’s smoke there’s fire. Yet many construction projects show they’re losing money, they fall behind schedule, there’re safety and quality incidents, but project managers fail to take action. Sound familiar?
4. Assuming the problem will resolve itself. Regrettably this is wishful thinking and I’ve never had a problem on a construction project fix itself. Projects don’t just miraculously get back on schedule or turn a loss into a profit. Active intervention is required. Fires don’t go out on their own – they need human intervention, or a weather event, or they run out of fuel (there’s no problem on the project once it’s completely wrecked).
5. Arrogance. Many senior construction project managers and company owners and managers don’t want to get their hands dirty. The problem is beneath them. Those below them must sort the problems out and tell them when it’s fixed. Indeed if they incapable of solving the issue then the short answer is that the person should get another job. Leaving others to sort problems out unaided is not a solution. Sometimes big problems require big solutions and everyone's help.
6. Taking action too late. Often problems are allowed to develop and become a full blown major issue before any action is taken. Often by then the problem has done irreparable damage and it’s become difficult to fix. Putting fires out when they’re small is far easier than trying to put out a raging uncontrolled inferno.
7. Taking inappropriate action, or too little action. You can’t put out a raging fire with a bucket of water – it’s usually just a waste of water and effort. Of course you also shouldn’t try and put an oil fire out with water. Many problems should be tackled head-on with the right resources, in the right quantity. Regrettably sometimes problems are made worse by knee-jerk actions which result in inappropriate solutions. Rather know what the issue is and plan the best way to solve it as quickly as possible, even if those actions are going to cost money.
8. Avoiding the hard problems. Some problems are simply too hard for some managers so they’re avoided. As a construction project manager you will know when your project is in trouble because many company managers will avoid visiting troubled projects. Who wants to visit a construction project in trouble where you could be berated by an angry client, or face a dispirited construction team desperate for help? It’s much more fun to visit a project where everything is going well and the client showers you with praise. Again I’m sure this sounds familiar?
9. Not being accountable for mistakes. How many of us admit to mistakes? It’s far easier to shrug our shoulders and say there’s nothing we could do! It’s easier to blame freak events or the weather. Better still if we can blame someone else for the fault. But of course none of this actually helps solve the issue, but at least we can wash our hands and feel good about our self and our actions (or lack of action).
10. Failing to consult those on the ground. Those at the coalface often have a huge amount of experience and knowledge. They’re the ones who are expected to deal with the problem. It’s easy for managers to walk around and handout platitudes, yet actually achieve nothing. It’s often hands-on action required. Always remember to thank and help those fighting the problem at the coalface.
11. Relying on past solutions. Every problem is slightly different. Some problems require innovative new solutions. Some problems are too big for previously used solutions. At times, previous solutions aren’t the best solution.
12. Not listening to experts. None of us knows everything. Experts can often provide valuable advice and solutions. We need to share knowledge and experience to solve problems, to manage future issues better, and to prevent the same mistakes from being made.
13. Not asking for help. Sometimes we need help. Never be too proud to ask for help. But always be prepared to offer help and advice when it’s needed.
14. Not admitting there’s a problem. Admitting that there’s a problem means that people can take action to fix the issue, and take action to mitigate the consequences of the problem. If clients know that their construction project won’t be finished on time they’ll obviously be angry, but at least they can take action to limit the damages caused by the delay. If the contractor’s management know that the construction project is going to lose money they can put in measures to manage the damage to their balance sheet and cash-flow, thus possibly preventing bankruptcy.
15. Having no plan in place to solve the problem, and no plan to deal with the aftermath and damage caused by the issue. 

Hollow words and actions don’t solve problems. Need I say more?
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Of course there are other reasons that construction projects fail, such as; a lack of planning, no teamwork, poor pricing and budgeting, etc. But, failing to recognise problems, and then dealing with the issue and it's consequences quickly and decisively, is often the death of construction projects, even leading to the demise of the contractor or client.

Construction project managers are given the responsibility to guide projects to success. Sometimes this responsibility is tough and it demands sacrifices. But construction project managers are expected to show leadership and resolution in the face of adversity. Every construction project will have problems and project managers will be judged on how they plan to avoid problems, how they solve problems, how they mitigate the impacts of problems, and how they avoid future problems.

Successful construction project managers will fight fires as they occur. They’ll lead the fight throwing the right support where it’s needed. They’ll listen to the advice of experts. They’ll have adequate warning systems in place and take early action when smoke is detected and before problems get out of control. They won’t be frightened by the magnitude of the problem and they won’t be afraid to ask the hard questions of themselves and of others.

Remember, doing nothing and avoiding problems on your construction project will not make a problem go away.

Times of crises and disaster have defined leadership. Think of Winston Churchill in the 2nd World War where his previous mistakes were forgotten by his leadership when it was needed. Then there’s George W Bush’s poor handling of Hurricane Katrina and its devastation of 3 states in the USA. How will your leadership define your legacy?

To those facing adversity, may your leaders have the strength, humility, humanity and courage to help you through these dark times. To the firefighters who are risking their lives every day to help others, you have our eternal gratitude. May you have the strength, courage, resources and support to continue your gallant fight.

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​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.
The books are available in paper and ebook from most online stores including Amazon.
​© 2019 This article is not to be reproduced for commercial purposes without written permission from the author.

​Holidays are a time to relax and recuperate from work. Holidays are a time to enjoy with family. Yet many of us find it difficult to relax while away from work and often people return from holidays as stressed and tired as before the holidays.

Families are left disappointed when fathers, partners and loved ones can’t relax and join in the family activities. Families are upset when a parent or partner is continually on their phone or checking emails. Families hate it when family engagements are interrupted by work, or their partner or father is always preoccupied with work.

Are you guilty of always being preoccupied with work, or can you close the door at the office and take a holiday with minimal thought of work? Will you return from your holiday well rested? Will you spend quality time with your family this holiday without work interruptions?

​In this digital age we can be permanently connected to the office 24 hours, 7 days a week, and 52 weeks in the year. But we all deserve a rest. So how can you disconnect from the office?

• Disconnecting starts before your holiday. As much as you plan your holiday, also plan your disconnection from the office. Planning involves:
  • Completing the things that need to be done. You don’t want to spend the holidays worrying about loose ends which weren’t tidied up before you left. So ensure that bills are paid, money has been collected, security is in place, problems have been fixed, etc.
  • Leaving a message on your phone and email to say that you are out the office. Specify when you’ll be back. Leave contact details of the person who may be covering while you’re away. Check that the message is working.
  • Informing staff who will be left in the office what needs to be done in your absence and who will be covering for you. Leave a list of contact details for suppliers, contractors, clients, etc.
  • Letting clients know that you’re away. Provide your return date and if necessary contact details of the person who’ll be covering in your absence.
  • Considering if the company needs to work over holiday periods. Many businesses close over the festive season. Employees need a break. Sometimes leaving the business open over holiday periods is more trouble than it’s worth. Closing the company for the holidays will mean that you can relax more easily with less chance of interruptions or something going wrong. It means that all your employees can have a holiday to. Workers are often distracted over holiday periods. Many suppliers are closed. Productivity is reduced. Negotiate with clients where possible so you can close over holiday periods.
• If it’s essential to check phone messages and emails while you’re on holiday set aside a set time. Limit the time to say 15 minutes a day. Learn not to overrun the allotted time.
• Don’t reply to emails unless they’re absolutely urgent. Remember, if you set a message on your email that said you’re on holiday, then the sender would have got the message that you’re on holiday and won’t be expecting a reply until your return date.
• Only deal with very urgent problems when you’re away.
• You don’t have to answer every work call on holiday. If it’s urgent the person will leave a message, or they’ll call again.
• Don’t worry about work when you’re on holiday. Worry doesn’t solve problems it only creates stress.
• If a client or work colleague phones you while you’re on holiday, let them know right at the start of the conversation that you’re on holiday. Often if the call isn’t an urgent matter the person will apologise and say they’ll call back at a more convenient time. If they don’t get the message and want to continue the conversation even though the issue isn’t urgent, then make an excuse, say you’ve got an urgent appointment. Refer them to someone working in the office, or tell them you’ll call back at a more convenient time.
• Learn to slow down on holiday. Spend time with your family. Join family activities with your full heart and mind, without thinking about work. But also spend ‘me’ time – quiet time, maybe reading a good book. Even go for a massage – even if it’s not ‘your thing’.

Of course the ultimate getaway is to plan a holiday where there isn’t phone contact – somewhere in the wilderness.
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But a holiday isn’t always a holiday if it’s going to be stressful. It’s important to plan holidays where you can relax. That doesn’t have to mean a beach holiday (which can be stressful for some), rather a holiday where you can escape the big crowds, a holiday doing what you like doing, a holiday where you’re don’t have to think, plan and organise every day.

​Learn to delegate. You don’t have to do everything yourself. Most of us think we’re indispensable to the company, but usually we aren’t. Surround yourself with trusted, responsible people. People who can take on some of your duties – especially the smaller stuff. Most employees want to be challenged, they want to learn new things, they want to take on more responsibility. Having trusted employees in place who can take on some of your responsibilities while you’re away will mean that you can safely go on holiday and know that everything is in safe hands.

​It’s vital to have time off work, time to relax and time to spend with the family. None of us can work all the time. We all need a break from work. A good holiday will often clear your mind and you’ll return to work reinvigorated and ready to take on new challenges.
You’re on holiday, so ensure you really are on holiday. Don’t waste your holiday with work.
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​
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.
The books are available in paper and ebook from most online stores including Amazon.
​© 2019 This article is not to be reproduced for commercial purposes without written permission from the author.

Wishing all my readers happy holidays and time with their family. May the holidays be festive, and restful. Enjoy quality family time before the new year begins.

Thank you to the readers of my books and blogs for your support. A special thanks to readers who have posted book reviews, those who have commented on my articles and readers who have contacted me directly. I have enjoyed helping the construction fraternity in 2019, and I look forward to sharing my knowledge with you in 2020.

May 2020 be a successful year with quality construction projects which are profitable and safe. Of course success is not about relying on luck, but it requires planning and investment. Ensure that you pay suppliers and subcontractors on time. Thank your employees for good work. Invest in training your team. 

Plan to make your construction projects successful. 

​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.
The books are available in paper and ebook from most online stores including Amazon.

​Every company has rules for when a person can take time off work and often these are based on the country and state regulations. Some companies have more generous policies, and in some instances, union agreements may influence the time that employees can have off work.

The time off could be annual vacations, statutory holidays, long service leave, sick leave, maternity leave, compassionate leave, etc. The time off could be paid, or unpaid. If an employee is entitled to be paid then the company policy should set-out how much pay, or the maximum hours that will be paid for that day.
Sometimes the person has to take their vacation at a specified time (some companies close for a Christmas break and employees may be obliged to take their paid vacation then). The amount of time off in the year is stipulated in employee contracts.
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When last did you read your contract of employment, let alone the rules applicable to your employees? If the person only started work part way through the year they might not be entitled to the full quota of leave for that year, but rather only an amount that’s reduced proportionally by the time they weren’t working for the company. (Sounds confusing already, and it’s partly the reason ClockShark PTO has been such a success.)

Employees who are absent without a valid acceptable reason are usually in breach of the company disciplinary policies. Employees who are absent are disruptive to project progress and often it upsets productivity, especially if a key worker is absent. Consider when a crane or excavator operator is absent, it could hamper the entire team who may not be able to work effectively without the crane or excavator. But, even when an ordinary worker is absent it could leave a hole in the team, possibly meaning that the skilled workers are hampered.

It’s therefore essential that project managers, supervisors or foremen take disciplinary action against those who are absent with no acceptable and valid reason. Failure to do so can lead to absenteeism increasing on the project.
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But who is tracking how many days each employee has taken off in the year?

​Although someone taking leave is disruptive to your work and team, you shouldn’t stop an employee from taking time off when they have a valid reason. Of course, it’s essential that the person completes a company leave/vacation form which should be submitted to the pay officer. This’s particularly important so that the amount of days that the person has taken leave is tracked.

Sick leave
For instance, an employee may be entitled to 10 days paid time off for illness in a calendar year. Any sick leave days in excess of this won’t be paid. However, if nobody has tracked how many paid sick days the employee has already taken in the year, then even though they’ve already had their quota of paid time off for the year they’re going to continue receiving pay while they’re sick.

Sure, the worker is fortunate and scores extra money, but imagine the cost to the company if this is repeated by 10, 20 or more employees. This eats into the company’s profits and ultimately impacts everyone’s wages and bonuses. It’s maybe money that could even have been spent on purchasing new equipment.

Remember to that the person may be transferred to another supervisor or project, so if there’s no record of the amount of time off that you granted them, then their next project manager, supervisor or foreman will assume that they’ve had no days off for the year. Lucky employee, they’ll be able to have a second lot of paid time off.

Having a sick person at work means that they could infect others, it often means that they aren’t fully productive because of their illness, and sometimes it could even be dangerous to the person’s health and to the safety of others on the project. If you or someone in your crew is sick then go see a doctor. If the doctor books you off work stay at home. Of course, always ensure that people who have taken time off work because they were ill, were actually sick, and normally they should bring a medical certificate/note as proof.

Annual vacation days and holidays
Often we’re under pressure to complete projects. This causes projects to work long hours and it may even be necessary to work through vacations or on statutory holidays. It’s important, however, that everyone has an opportunity to take their annual vacation days and statutory holidays. It’s essential that you take your vacation. Everyone needs an opportunity to rest and spend time with their family. Families want time together. Don’t be the Grinch that stole the holidays! Plan your work so that you and your crew can have time off. Workers that have time off to rest and spend with their family are often more productive.

Depending on company policy, annual vacation days that haven’t been taken may be accumulated, while other companies might stipulate that the leave not taken is forfeited. In the past, I’ve had employees accumulate large amounts of vacation days, sometimes in excess of 3 months. This is a liability (future cost) to the company, because at some time in the future the employee will take their allotted vacation days and be paid while they use this time off – has the company set aside money for this time, or will it be a cost that a future project must cover?

In some companies, employees are allowed to choose to be paid the vacation days owing to them in lieu of them taking the days off.

Although employees may prefer the money, this practice should be discouraged, because it defeats the object of annual vacations – which is to have time to rest, time with families, time to get away from work and recharge, and not a means to gain an extra paycheck.

It should be noted that normally only annual vacation days are allowed to be accumulated. Usually sick, bereavement and compassionate leave are given and used on an annual basis. Just because a person has an entitlement to, say, 10 days paid time for illness in a year, doesn’t mean that the person can use the full 10 days even when they aren’t actually sick, nor does it mean that the unused sick days can be rolled over to the next year, or paid out to the employee.

Family leave
Some employees come to project managers, foremen, and supervisors with hard luck stories, maybe problems at home. Reasons why they need to go home, or why they were absent from work. Sometimes these are fabricated, so always ask for proof. It’s amazing how some workers always have problems with their transport, or there’s a different family member dying every month! From time to time people do suffer dramas at home and they do need time off work.

Occasionally you should show a little compassion and understanding, but in all cases, the time off must be correctly recorded. But, often it’s the same people who seem to have dramas – will you have a record to check when last you granted the person time off and how frequently they’ve taken time off? Personal lives and problems shouldn’t interfere with work. They shouldn’t have to impact the project. Of course, where a person can’t sort out their lives and there are continued dramas you will have to take a tougher stance.

Continued absenteeism shouldn’t be tolerated unless there’s really exceptional extenuating circumstance – but these should probably be discussed with your managers.
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Always ensure that you take time off to rest, time to spend with your family.

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​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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​I've 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.
The books are available in paper and ebook from most online stores including Amazon.

When clients and project owners prepare project budgets for construction projects they often confuse real costs, estimates, and contingencies. This can result in construction budgets that are too low, meaning they run out of money before the project is completed. Alternatively, when construction budgets are too high the project appears to be too expensive and nonviable and it’s cancelled.

Contractors also confuse real construction costs, estimates, and contingencies when they price construction projects. If their price is too low then they lose money when the construction costs exceed the price they agreed with the client. Alternatively, if their price for the construction project is higher than other contractors’ prices then they won’t win the project.

Let’s look at a simple analogy. You decide that you are taking the family for dinner at a restaurant. How much will it cost and what restaurant can you afford?

When you assume the costs based on known information

If you’ve been to the restaurant before you might have an idea of what the average meal costs. So you calculate that there are four people and assume that each person chooses an item that costs $20, and they order drinks that cost $10. Now, this is a guess based on previous experience. You could add a contingency of 10% to these prices, so the $20 has a $2 contingency and the $10 has a $1 contingency. So your estimate is $132 – which is 4 people at $30 plus 10% contingency.

When you have little information (you're guessing a price)

Now if you hadn’t previously visited the restaurant, then you’re going to be less sure of your estimate of the cost of the meals. Maybe again you estimate $30 per person and you then add a contingency of 15%, so your estimate is $138. But some might add more contingency.

Say, it’s your partner’s birthday, maybe they’re going to splash out and spend more, possibly even have a desert. So you add a 50% contingency for their meal. Your cost estimate will then be 3 x $30 plus 1 x $30 + 50%. This is $135. Then you add 15% contingency to this total estimate and your budget is $155.25. This might now be more than you’re willing to pay so you cancel your dinner plans – tough on the family. But see what we just did. You added 50% to one meal, then added 15% on top of the 50%. You’ve actually added 72% to one meal and the $30 is now $51.75 – is this realistic?

You’ve added contingency on top of contingency! Yet, frequently that’s what contractors and clients do.

When your estimate is too high you can reduce the contingency

But, in the above example, we’ve only assumed the worst-case scenario that everyone’s bill is more expensive than the estimate. Is there a chance that one of your kids only orders a kids meal and a soda? Maybe there’s a possibility that your estimate for the children of $30 is too high. So why add a contingency to their meal? In this case, you could add 5% to 2 people’s meals and 10% to the other 2, or an average of 7.5%. Your budget is now $129. This might seem a small difference, but often contractor’s win projects with a price only a few percentage points lower than other contractors’ prices.

When you know the exact cost

Often you even know what some costs are, so it’s unnecessary to add a contingency to your known costs? Sticking with the restaurant analogy, maybe you know that the restaurant has a kid’s special including drinks and the price is $20. That’s what you will order for your 2 children. So, we have 2 meals at $20 known cost and 2 meals estimated to cost $30 each. So the total is $100. But there’s still some uncertainty so we add a contingency. It’s not necessary to add contingency to the 2 children’s meals only to the adults. Adding 15% contingency only to the adult’s meals is 15% on $60 which is $9 and your budget is $109. This is much less than your first price of $132 – in fact 17% less.

Known construction prices

Well, when we price a construction project there are certain known costs. So, we have a subcontractor price to install the complete roof. This is a known price, a fact, so there’s no reason to add a contingency on top of this price. Then we can calculate what some things will cost and this is based on the costs of materials, labour, and equipment, and our calculation is built on our previous knowledge and experience as well as known prices for construction materials and equipment which we’ve obtained from suppliers. If we’ve done similar work before and kept track of productions and construction costs then we’ll have high confidence in our cost estimate. If it’s something new then we will have low confidence in our price.

Depending on our confidence we might add a contingency on top of our price. So low confidence means a higher contingency. But. it’s pointless adding a contingency to each of our estimates, then reaching a total price, then adding another contingency on top of that figure. Not only have we added contingency to known prices such as the roof, but we’ve also added contingency on top of contingency. So for instance, if we had a 10% contingency for concrete and then added another 10% contingency to our total price, then the contingency for concrete isn’t 10% + 10% = 20% but it’s actually 21%. 10% onto 10%.

If we know we have 100 cubic yards of concrete on the project we calculate the estimated cost for the concrete. This includes the cost to purchase the concrete plus the cost to place the concrete. The cost of the concrete is usually a known price because we’ve asked the supplier for a price.

The unknown price (separating the known from the unknown)

The unknown is the wastage. If the concrete is going into a structure contained within forms the wastage may be minimal – a couple of percents (the shape and box have precise dimensions). If the concrete is in a slab on the ground the wastage could be as high as 10% – the ground may not be perfectly level and the dips could add an extra half inch to the thickness of the concrete slab, meaning we use more concrete.

Often contractors add contingency to cover them for the worst case scenario. But, is it likely that every item will reach the worst case scenario? Some items might turn out exactly as estimated, some might be as bad as the worst-case estimate and some might only be half as bad. So, in the example of the concrete slab on the ground we assumed half an inch or 10% maximum wastage, but assuming the slab will never be thinner than required, we may in some cases have zero wastage and sometimes there’ll be a half inch of wastage - the wastage varying between 0 and a half. So on average, the wastage might only be a quarter inch or 5% and not 10%.

A 10% overall wastage would mean that in some areas the slab will be an inch thicker than allowed while in other places it will be the exact correct thickness. Of course if you assumed that in some places the slab was equally as thin (obviously it’s not good practice to have a concrete slab thinner than it should be) as it was thick in other places, then overall the thinner areas may balance out the thicker concrete and it wouldn’t be necessary to add any additional wastage.

Sometimes contractors are asked for a quick estimate or budget price. They could take a price for a similar building or structure and then add a contingency to this price – this is a very rough estimate. If they have more time they could calculate the size of the building, then knowing the square feet apply a rate per square foot. They’ve done a bit more research so their price is a little more accurate than the first estimate, so they don’t need to add as big contingency to their cost estimate.

If the contractor has more details and spends time breaking the structure into more detailed components which the contractor prices, then the contractor’s price becomes more accurate, and the contingency the contractor adds to their price becomes less. If the contractor has prices from subcontractors for all the work, then there probably isn’t any reason to add any contingency, because all the price risk lies with the subcontractors.

What we see from the above is that the more research and investigation we do, the more confidence we have in the price, until eventually we have 100% confidence and we don’t have to add any contingency to our price.

If a contractor’s price for a project is too low they’ll lose money on the project. If the contractor’s price is too high they’ll never win the project. The contractor’s price is usually made up of known costs (facts) and these are exact prices provided by subcontractors and suppliers. There is no need to add a contingency to these items. Then there are some items which are estimates. This could be an estimated quantity, an estimate of wastage or an estimate of the rate of production.
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Depending on the confidence on how the figures were derived the contractor may add a contingency to the item. But each item usually has a different degree of certainty, so the contingency added would be different for different items. Contractors must always take care that they aren’t adding contingency on top of contingency.

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​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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​I've 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.
The books are available in paper and ebook from most online stores including Amazon.

​Good communication is crucial to the success of every construction project. It’s essential for the success of construction project managers and supervisors. It’s something that project managers, supervisors and foremen have to do every day. They must communicate with their team, their managers, company support personnel, suppliers, subcontractors, engineers and architects, the client, testing agents, sometimes the authorities and the public.
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Regrettably poor communication often leads to project mistakes, misunderstandings, discontent, poor productivity, and even lengthy legal wranglings.  

​It’s essential that communication is civil, clear, concise, effective, takes into account relationships, isn’t condescending, not contradictory, is persuasive and forceful when required, and that it takes into account the level of understanding of the other person.

Communication isn’t just about giving and receiving instructions, it’s about keeping the various stakeholders on the construction project informed about changes, progress and problems on the construction project.

Communication is often verbal, which includes meetings (both formal and informal), crew briefings, instructions, one on one discussions, and telephone conversations. However, it’s often essential that some communication is in writing so that there’s a record of the instruction, question or decision. In fact it’s vital that items of a contractual nature, items which could have a time or cost implication, items where there could be a misunderstanding, or for events that could later lead to disputes or arguments, are recorded in writing. Regrettably many people have poor memories, especially when an item that’s verbally agreed may cause them problems. It becomes your word against their word. ‘He said, she said’ and who can be believed? So, it’s important that all changes and instructions from the client’s team are in writing, and that all questions which could have a time or cost implication are raised with the client in writing. Sometimes verbal discussions and decisions which may have a time, cost or legal implication, should be later followed up in writing so that there’s a written record.
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Written communication could be in the form of instructions, meeting minutes, meeting notes, memos, letters and emails.

​It’s always essential that communication is addressed through the correct channels, so that the message reaches the right person who is able to take the required action. Communication sent to all, or to whom it may concern, will undoubtedly be ignored by everyone. Understand who should be dealing with the problem and ensure that they’ll receive the email or letter. For instance, when dealing with subcontractors, instructions should be given to managers and not the workers physically doing the work – unless the instruction relates to an immediate safety concern or quality problem. But even quality and safety concerns should be reported to their management – preferably in writing so that there’s a record of the issue in case there’s a repeat of the matter or it’s not fixed.
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In the same way, it’s important that the client’s team follows the correct channels when dealing with your company. Instructions should never be given directly to your workers unless they relate to an immediate safety or quality concern. It’s essential that your team understands this process. It becomes very confusing, even costly, when your team starts following instructions directly from the client or your management, when you aren’t aware of the instructions.

​Unfortunately many letters, emails and memos are written poorly. They are hard to understand. Most project communication is in English, so even if your first language isn’t English it’s essential that you have a basic understanding of the language and are able to communicate with others properly. Regrettably, even some whose home language is English, who have been schooled in English, fail to understand the rudimentary rules of grammar and spelling. I’ve received many garbled emails and letters, that I couldn’t understand, from people that should have known better. Fortunately, today our computers all have Spellcheck and Grammar-checker, so there should be little excuse for poor spelling and grammar. But, much of it is laziness. It’s essential to read through memos and emails before sending them to ensure that they make sense. Even consider asking someone to check the email before you send it. It could result in problems if your email or letter isn’t understood correctly and the receiver thought you meant something different.

Keep letters, emails and instructions simple. Use simple language. Keep sentences short. Avoid using abbreviations, other than those commonly used on the project, then consider explaining the abbreviation at least once. Arrange different thoughts or topics into separate paragraphs. Avoid overuse of exclamation marks (!) and question marks (?). Don’t use capital letters except at the start of sentences and for the names of people and places, and of course when you refer to I. So, don’t use CAPITAL LETTERS like this – it’s rude and unnecessary. Avoid using different colours, or different types of text. Use bold type only for headings. Don’t use emotive language. Write simply, one thought at a time. Then reread and check that it all makes sense and is in a logical order. Will the reader understand what you are saying? If an action is required will the reader know what you’re expecting from them?

All letters, emails, instructions and memos should have a date and a heading describing what the letter is about. Check that all your facts are correct.

Poorly written letters, memos and emails are often not treated with the seriousness they deserve.
​
Keep a copy of all correspondence you sent in case there’s an argument or issue later.

​There are courses which will help you improve both your verbal and written communication skills and these are often well worth the time and cost and will benefit your construction management career, helping you progress up the management ladder.

Ensure that your team, your client, the project suppliers and subcontractors all understand what's required from them on the project. Clearly articulate problems and issues that need to be resolved and who should take action. Keep everyone who needs to know informed of what's happening on the project. Direct communication to the right people. Put all important records in writing.

Good communication is essential to the success of every construction project.​
​
Please like and share this article.

​This article is an extract from my book 'The Successful Construction Supervisor and Foreman' which is packed with construction project management tips and advice.
​I've written several easy to read construction management books for owners, contractors, construction managers, construction supervisors and foremen. They cover all aspects of construction management and are filled with tips and insights.
The books are available in paper and ebook from most online stores including Amazon.

​​Contact me for help and advice.
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'
• 'The Successful Construction Supervisor and Foreman'
• and 'An Introduction to Building and Renovating Houses - Volumes 1 and 2'

'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
© 2019 This article is not to be reproduced for commercial purposes without written permission from the author.
​As an Amazon Associate I earn from qualifying purchases

​The construction industry is desperate for skilled and experienced people, so it’s important to train people. A skilled workforce can work faster, more safely and produce better quality. Having skilled workers makes the job of construction managers, supervisors and foremen much easier. A skilled construction worker requires less supervision. They often know what to do and how to do it, and they don’t need all the intricate details of the task explained to them.
​
Everyone wants to develop, grow, learn new skills, be promoted and take on new responsibilities. 

​Regrettably many managers don’t train their people. I hear all kinds of excuses, the most common is that there isn’t time and we can’t spare the person for a few days or weeks to attend a training course. Other excuses include, training is expensive, once the person is trained they’ll want a pay increase, or they’ll leave the company when they’re better qualified. Sure, training does take time and cost money, and sometimes employees will ask for a pay increase when they’re qualified, and some may even leave the company for a better job.

​But, the benefits of training far outweigh these excuses. Indeed, a trained and skilled construction worker is a valuable asset to construction companies. A skilled construction worker is safer, more productive and produces better quality than a less skilled worker – so yes, maybe the person will deserve a pay increase when they’re successfully qualified and proved their skills have improved. But, the benefits go further than this. Employees that are sent on training courses often become more motivated because they sense that the company sees a future in them and is prepared to invest in them. Certainly, some newly trained individuals will leave the company, but many will become more loyal, since they’ll appreciate the company investing in them and their future. Other workers will see that the contractor is sending employees on training courses and they’ll become more motivated, working harder so that they can be selected to attend training. Indeed, I’ve had huge success by training my people and I’ve been handsomely rewarded with their improved skills, loyalty and diligence.

Sometimes contractors only look at the short term. They don’t plan for the next construction project, for next year and the years after that. They’ll say it’s pointless training someone because there might not be a next project. But guess what, there usually is a next job, then there’ll be the same excuse again, and guess what, there’ll be another construction project! So why battle from one construction project to the next with poorly skilled workers. But, having good skilled workers will probably help the contractor get further projects. Skilled workers enhance a contractor’s reputation, and improved productivity from skilled workers will ultimately reduce the company’s costs, resulting in the contractor submitting more competitive prices and winning more construction work.

Of course training must be done for the right reasons. It must be training in a skill which the person doesn’t have and also a skill that the contractor can use on the construction project, and hopefully on following projects. Effective training is dependent on a number of factors. Firstly, the person must want to be trained in that skill. Training a reluctant trainee is usually a waste of money. Management must be committed to send the person on the training course. Importantly, the construction supervisor (foreman or superintendent) must be prepared to utilise the person’s newly acquired skill, which includes mentoring and coaching the person further. Regrettably, many training programs only provide the theory and basic training, but this is of little use without further practical on the job training and an opportunity to practice the newly learned skills.

Unfortunately, not all training courses and providers are what they should be. There are many poor training providers and these are costly, since there’s the cost of the course, plus the cost of the person’s time attending the training course, and often the qualification obtained is worthless, or worse the person has learned bad habits. Always check that the course curriculum will provide the desired end result. Some providers are prepared to modify their training courses to include things that you think would be more suitable to your employees. When the trainee returns to work quiz them to find out what they thought of the course and the provider. Poor feedback means you should avoid sending others on the course.

Construction training doesn’t always have to be courses held away from the project. Some providers are willing to provide training on the construction project, providing the project can supply sufficient people for the course. This is useful since part of the practical training outcomes is usually contributing to the project’s progress.

Training is not only about technical skills. Teaching the soft skills is often just as important, whether it's sound management practices, communication, delegation, conflict resolution, etc. Then there's financial principles, contractual issues and productivity. But even a good understanding of the company's procedures is essential.

​Another valuable form of training is onsite mentoring. Now I know that construction managers, supervisors and foremen are always hectically busy and don’t have time for another task. But, every time you find a fault, show the person the right way to do the task. Sure, it takes a little more time, but hopefully the person won’t repeat the mistake. Most people in construction are poor delegators. The common excuse is that no one is capable of doing the task. But they never bother to show anyone how to do the task. Showing someone in the team once will allow you to be able to delegate the task next time to that person. After all, most of us were taught by someone else.

Of course leading by example is an essential part of mentoring. So if you’re diligent, hardworking, safety conscious and take pride in good quality work, your team should follow your example. However, if you criticise company management, don’t follow the company or project rules, accept poor safety and bad quality, and skip out of the project during working hours, then you can expect your team to follow your poor example. 

Good and effective training will pay dividends. It will result in better motivated workers who will accomplish tasks quicker, more safely and with better quality. It will result in the need for fewer workers and less supervision and management. It will result in better productivity, fewer mistakes and less rework. It will mean happier clients and the possibility of future projects.

Don't look for an excuse why you're can't train people, rather see the long-term benefits which will more than outweigh the short-term inconvenience and costs of training.

The construction industry is desperate for skilled construction workers, supervisors, foremen and construction managers. Your construction projects and construction company is desperate for skilled people. You can make a difference by training your crew.

Please like and share this article.
Have you had success training your team?

This article is an extract from my book 'The Successful Construction Supervisor and Foreman' which is packed with construction project management tips and advice.

​I've written several easy to read construction management books for owners, contractors, construction managers, construction supervisors and foremen. They cover all aspects of construction management and are filled with tips and insights.
The books are available in paper and ebook from most online stores including Amazon.

​Contact me for help and advice.
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'
• 'The Successful Construction Supervisor and Foreman'
• and 'An Introduction to Building and Renovating Houses - Volumes 1 and 2'

'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
© 2019 This article is not to be reproduced for commercial purposes without written permission from the author.
​As an Amazon Associate I earn from qualifying purchases

Partially completed multi-floor building collapses with at least 1 death. Read More

and More on the story

​Late payments are every contractor’s nightmare. Late payments disrupt cash-flow and result in the contractor being unable to pay their suppliers, subcontractors and even employees. This could result in the loss of payment discounts (so items cost more) and stricter payment terms with suppliers in the future, which could mean that suppliers require earlier payment or even payment in advance, which negatively impacts the contractor’s cash-flow further. Of course non-payment of suppliers, subcontractors and employees often disrupts work on construction projects resulting in delays, and it creates mistrust between the parties impacted. Nobody wants to have to wait for their money.

​It’s therefore essential that contractors ensure they are paid on time. This can be achieved by implementing the following:

1. The terms and conditions in the contract document must be clear to all parties. What can be claimed and when can it be claimed? When is payment due? The client must know when payment is due.
2. Contractors must submit claims and invoices on time.
3. Invoices must be clear and include all required supporting documentation. Clients will often make excuse for non-payment, blaming missing documentation, mistakes on the invoice, faulty workmanship, and more. Mistakes on invoices will delay payments.
4. Invoices should clearly show the payment instructions. When is payment due and how should payments be made?
5. Know when payments are due and a few days in advance remind clients that payment is due. Check that there aren’t problems with the invoice and that the full amount will be paid.
6. Provide good service. Happy customers are more likely to pay on time. Unhappy customers will deduct monies from invoices, look for excuses not to pay, or deliberately drag out payment.
7. Follow up immediately when payment is late. A simple phone call a day after payment is due may be all that’s required to get a customer to pay. Often non-payment is simply an oversight, forgetfulness, a clerical error, or a person being sick or on leave.
8. Don’t rely on verbal responses, so send out a written notice of late payment within 7 days of the invoice not being paid.
9. Stay professional with all your communication. Be firm and persistent, but always remain polite and friendly. Make it clear that no matter the excuse late payment is not acceptable and it’s causing problems.
10. Understand why payment hasn’t been made. If the client is running into financial problems research to find out the extent of the problems. Is it just a small hiccup caused by non-payment to them, or is it more serious, possibly the company going into bankruptcy. Talk to your client to see if you can formulate a resolution. It’s important that verbal agreements are followed up in writing so there are no misunderstandings. If the client is in serious financial trouble understand what can be done in terms of the contract to protect your company from further losses. Terminating a contract has to follow strict procedures. Terminating the contract for the wrong reasons puts the contractor in breach of the contract and will jeopardise further payments, even opening the contractor to being sued for damages from the client.
11. Follow the legal route for non-payment as stipulated in the contract document. Get expert advice when required. Understand the costs of litigating against the client since success isn’t always guaranteed. Reaching a solution often takes time and it can be very expensive.
12. Pick your clients with care. Some clients have a reputation for paying contractors late, or making spurious deductions from their contractor’s invoices. Contractors should research their clients and ensure that they have the funds to pay for the work.
13. Offering a small discount for early payments costs money but it often results in clients paying invoices on time.
14. The contractor’s senior management must ensure that employees are aware of how critical it is to ensure that invoices are sent out on time and that payments are received when they are due. Management should be advised when payments are late. Late payments may have a big impact on the company's operations.
15. Contractor’s shouldn’t be fooled into being nice and regularly accepting late payments in the belief that the client will award them further work. The contract document is there to protect both the contractor and the client and no company should take offence to their contractors demanding to be paid on time in accordance with the contract. Clients that regularly pay their contractors late will often take advantage of their contractors in other ways.

Late payments and non-payment is probably the biggest cause of construction contractors going bankrupt. Being paid on time is critical to every business. It’s critical to claim all completed work in accordance with the construction contract and submit invoices on time. Ensure that payments are received and follow up late payments immediately. Regrettably many construction contractors don’t get the basics of invoicing and getting paid right. No company can afford to work for free.
How do you ensure that you are paid on time?
Do late payments impact your business?
Please comment, like and share this post if you found it useful.

​I've 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.
The books are available in paper and ebook from most online stores including Amazon.

​Contact me for help and advice.
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'
• 'The Successful Construction Supervisor and Foreman'
• and 'An Introduction to Building and Renovating Houses - Volumes 1 and 2'

'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

​A few months back my wife was away for a couple of weeks visiting her mother. I had a few maintenance items to sort out around the house and needed tools and various items from the tool cupboard in the garage. Unfortunately, my wife had left her car parked too close to the cupboard so I couldn’t open the cupboard doors properly. It wasn’t easy getting to the tools and other items I needed in the cupboard, so I had to be careful that the cupboard doors didn’t bash her car and scratch it. Since I had a few things to fix I was in and out the cupboard several times over a couple of days. Now, of course, the easy thing would have been to re park the car further from the cupboard. This would have made access to the cupboard easier and there was less chance of damaging the car. Indeed, the couple of minutes it would have taken to re park the car would have been less time than I lost working around the awkward access to get the tools I needed.
​
You might laugh at my stupidity, but I’m sure that everyone has had a similar situation. We’ve all put off fixing the light that’s not working or repairing the door handle that’s falling off, or fixing a sticking door or jamming window – even when these repair jobs would probably only take a few minutes, maybe ten minutes at max. Instead, we live with the problem for days, weeks and even months. Where the problem is irritating us daily, possibly costing us a minute every time we have to fumble in the darkness or wrestle with the sticky door, where we have to slam the door to get it closed, which eventually starts cracking the door frame and damaging the paintwork. Often the cost of the repair and the time to fix the damage caused by not fixing the item straight away becomes far larger – making it even less likely that we’re going to fix it soon! What are we waiting for, all the lights to blow and the house to fall down?

​Of course, it’s the same on many of our construction projects. Construction material is stacked in walkways and rubbish is allowed to accumulate where people work. Everyone has to step around and over the mess. There could be several workers walking the route every day and they all lose a few seconds, even a minute, working around the problem. Then there’s the safety risk, somebody could trip and fall. There’s also a chance that the stacked construction material could topple or fall over and be damaged. Yet, it’s too much trouble to tidy the area. But the ten to twenty minutes that it would take one worker to tidy the walkway and work area is far less time than is lost over a week by all the people having to negotiate the obstacles.

If you look around on your construction projects this analogy is repeated several times over. Indeed many could start with their desk, office, and filing systems. A good sort out and tidy up might take a Saturday morning, but it will save you countless lost minutes every day searching for misplaced documents and missing papers. But, there’s more than just the time lost, there’s also the risk that an important item will be missed or overlooked in the chaos.

Then if you look at our project stores and construction material storage areas I wonder what you will encounter? Are they tidy and well planned, where construction tools and materials aren’t being damaged and can easily be found? Or, are things just dumped in an untidy heap? Is anybody interested in tidying things?

But, it doesn’t stop there! How are the crews working? Do they have the right construction equipment, or are they making do with equipment that’s not quite right for the job? Maybe battling with tools which are blunt or under-powered? How much time and money is that costing? There’s also the risk that the equipment is damaged, or worse, that there’s an accident. Isn’t it better to rather have the right piece of equipment, and sharpen blunt items or replace them with new sharper blades? It might take a few minutes to organise and cost extra money, but, this will almost certainly be less than the time and money saved by using the right item.
​
Unfortunately, it seems to be human nature to work around a problem, rather than fixing it correctly. Often when we do try and fix it we do half a job, a patch job, just to get things moving again. We always make the excuse that we’re too busy and don’t have the time. Is it just because we are lazy? Maybe it’s because we like to tell ourselves that we’re busy? Yet, common-sense (which doesn’t always seem to be that common) should tell us that living with the problem and inconvenience costs far more time and money than fixing the problem would. That, anyway, fixing the problem often doesn’t take that long. But, furthermore fixing the issue now, will remove an inconvenience, it will improve safety and it will often prevent an item being further damaged. Undoubtedly it will improve productivity!

​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

​Do you want to learn how to manage construction projects successfully? I've 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.
The books are available in paper and ebook from most online stores including Amazon.
Need help with your construction project or construction company? Contact me for help and advice.
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'
• 'The Successful Construction Supervisor and Foreman'
• and 'An Introduction to Building and Renovating Houses - Volumes 1 and 2'

'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

On construction projects days are often rushed and many construction project managers, supervisors and foremen barely have time to think, being pulled in different directions and facing demands from their managers, their crew and the client. Yet, it’s vital to find some quiet time to think through and plan the day’s activities – what must be done today, what must happen tomorrow and what must happen today so that tomorrow’s tasks can be accomplished. What must happen next week and what must be done today so that next week’s tasks can happen.

This day to day planning includes ensuring that materials are ordered, that there are sufficient workers with the right skills, and that construction equipment will be available. It comprises looking at the construction schedule (programme) so that you understand what must be done and in what sequence. It covers studying the drawings to check that all the information is complete and clear so the structure can be built. It means checking that there’ll be access to the work areas and ensuring that preceding tasks are completed. Of course, it also means communicating with your crew so that everyone knows what has to be done and how it will be accomplished.

Regrettably many in construction neglect to plan projects properly, leading to emergencies and problems when things haven’t been ordered, when items aren’t available, or access isn’t ready. It’s far easier and takes less time to plan things properly, than to resolve problems created by inadequate planning. I always say, “it’s much easier to be a fire prevention officer than a firefighter”. Project managers and supervisors often spend an inordinate amount of time ordering items which have been forgotten – this often takes several phone calls, begging and cajoling suppliers for a favour to get the item immediately, additional calls to arrange special transport, then more time following up why the item hasn’t arrived yet. Often crews have to be switched around to work elsewhere when materials, equipment, information or access isn’t available. Not only does the project manager or supervisor waste time making the changes, but invariably the crew is disrupted and everyone has wasted a couple of hours and got frustrated in the process.

Learn to plan projects properly. Time spent planning your construction project is time that you will more than make up by avoiding project delays and dealing with issues resulting from poor or inadequate planning.

​Do you want to learn how to manage construction projects successfully? I've 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.
The books are available in paper and ebook from most online stores including Amazon.
Need help with your construction project or construction company? Contact me for help and advice.
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'
• 'The Successful Construction Supervisor and Foreman'
• and 'An Introduction to Building and Renovating Houses - Volumes 1 and 2'

'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

Many construction projects get in trouble and project managers are good at finding someone, or something to blame. It’s usually the poor estimator who cops the brunt of the blame. Listening to many construction project managers you would think that all estimators make mistakes and every construction project is only completed successfully because of the project manager’s heroic efforts. Of course, the next best thing is to blame the weather – well there’s always rain, wind, cold and heat. Poor weather is a reliable excuse. Then we have others to blame, poor subcontractors, unreliable suppliers, unskilled workers, difficult clients, and weak designers. But wait a minute, isn’t that the experience on most construction projects? What’s different?

There will be problems and disruptions on construction projects. There will be mistakes with the estimate – both mistakes that cost money as well as mistakes that add to the profits. There will be bad weather, difficult clients and poor workers. But that’s why we employ project managers to solve these difficulties and deal with problems! I can’t think of one of my construction projects that went perfectly and according to plan. But we finished them all, and in almost every case made money and had a happy client.

It’s easy to blame the estimator for under-pricing material or underestimating the amount of work. But, there are also often estimating mistakes on the positive side, where the project wasn’t as difficult as the estimator envisaged and the materials cost less than the estimator allowed.  In fact, often an estimating mistake costing project money is cancelled out by an error which is beneficial to the project – it’s a shame that you only hear about the first mistake and not the second!

Why can’t project managers accept responsibility for problems on their project? Why can’t they admit when they’ve made the wrong decisions? Why can’t they just get on and solve the problem, instead of wasting time and effort looking for excuses and scapegoats?

It seems that the easy response these days is to blame others – our politicians set good examples of this. Let’s find a scapegoat, in fact, maybe we can even turn it into a political slogan. Finding the real cause of the problem and fixing it is hard work. In doing this we might not like the real reason for the problem – like we slipped-up. We might upset or offend somebody we don’t want to offend, somebody that’s the real problem. We might not like the solution to fix it – because it could result in more work, or require some sacrifices. Company bosses and politicians are good at cutting employees and freezing wages to lower costs, but very few will take a salary cut themselves. Not sure what happened to lead by example!
​
Blaming others takes time and energy and doesn’t solve anything. A construction project that’s in trouble, one that’s losing money or behind schedule, isn’t miraculously going to come right. Because a culprit, a scapegoat, has been found doesn’t solve anything. Making noise and jumping up and down doesn’t solve problems. Over dramatising the problem also doesn’t solve the problem – it could result in panicked quick fixes that don’t work or over extravagant solutions which aren’t necessary. Throwing up your arms or having a temper tantrum solves nothing – the project that’s in trouble will remain in trouble.

​There’s a problem. What are the causes? Indeed, there is almost always more than one cause. Don’t just look at the symptoms and treat these. Sure, it rained and the construction works were flooded. What steps can we take to prevent more damage? How can we salvage the project? Solve the immediate problems and get the project back on track. Then look at preventing the problem from recurring. Why was the work flooded? Could we have kept most of the storm-water out? What should we do to prevent a similar problem occurring? You can’t stop the rain – but maybe you can implement preventative measures to limit the damage.

Let’s look at the problem logically. Find the real cause. Take action to fix the symptoms and implement steps so the problem is fixed and doesn’t reoccur. Ask for help if necessary.

Don’t try and hide the problem, because inevitably the problem doesn’t fix itself. So, the project is losing money. Why? Maybe the estimator did make a mistake, but usually, there are other reasons. What can we do to prevent further losses? What can we do to recover money already lost? If we’ve done everything possible, ensured that we have uncovered the true causes for the losses and stopped them where possible, and the project will still end in a loss, then it’s important management is informed of the losses so they aren’t caught unawares at the project finish when the project makes a loss.
​
Fixing a problem requires a motivated team. Shouting and blaming demotivates people. The team needs to pull together, in the same direction, in a coordinated effort to rectify the problem and its cause. Threats don’t help. Good communication is vital. Maintaining morale is essential. People hate working for a project or company that’s in trouble.

​Project managers need to be proactive. They should plan for poor weather – okay sure you can’t allow for a hurricane or abnormally heavy snow or rain, but you should at least have anticipated and allowed for the normal expected weather conditions. Projects should allow for the time disruptions of normal weather, but more importantly, take active steps to minimise the disruption, like planning work around the normal seasonal rain and cold, and protecting partly completed work from the worst of the weather. When bad conditions are on the way take steps to limit the damage. When there’s good weather make the most of it.
​
Anticipate problems and take steps to prevent them from arising, or at least implement measures to limit the impact of the problem.

Do you want to learn how to manage construction projects successfully? I've 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.
The books are available in paper and ebook from most online stores including Amazon.
Need help with your construction project or construction company? Contact me for help and advice.
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'
• 'The Successful Construction Supervisor and Foreman'
• and 'An Introduction to Building and Renovating Houses - Volumes 1 and 2'

'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

Most construction projects will have changes, additional work and experience delays. Where the change or delay couldn’t be anticipated, or allowed by the contractor, they can usually claim a variation and request additional time and money from the client to recompense them for the event.

But, the success of a variation claim isn’t guaranteed, and it’s up to the contractor to explain the cause of the variation, why they couldn’t have expected the event, and then quantify the impacts of the event.

Now, this might seem simple and straightforward, but, regrettably, construction variation claims which are legitimate are frequently rejected by the client, or the contractor only receives part of what they are entitled to get.
​
So where does it go wrong for contractors? Is it just because the client is being difficult or unfair? Occasionally, yes the client is being unfair and then there are usually legal steps that contractors can take when a legitimate and well thought through and presented variation claim is rejected. But, unfortunately, many construction variation claims lack substance and supporting documentation to justify the claim and the client has every right to reject the variation claim.

Most contractors only think about supporting documentation when there’s a variation claim. By then, often the construction project has been going for several months. Much of the supporting documentation must come from events and days past, in fact some even from before the start of the construction project. Missing documents, or documents that are incorrect or faulty, will be of no use to support the variation claim.
​
There are a number of supporting documents:

The construction contract document forms the basis of the variation claim. It sets out the rights and obligations of the contracting parties and it informs the contractor of the steps to be taken when a variation claim arises. Unfortunately, some contractors only read their contract document when there’s a problem. Usually, by then it’s too late. Some construction contract documents are poorly written with conflicting and ambiguous clauses, while some documents unfairly put undue risks on the contractor and remove the contractor’s rights. Contractors must remember that the contract document outlines the project rules. These must be checked to ensure that they are fair before the contract document is accepted and signed – it’s too late to find part way through construction that the rules are unworkable, or unfair, or weren’t what the contractor thought they should be. Contractors must understand what their rights and obligations are, as well as the client’s rights and obligations. The contractor must make sure that everyone plays by the rules.

The construction schedule is the yardstick against which any delay will be measured. The construction schedule should be a reasonable and logical assessment of how the project will be constructed and it should be in sufficient detail so that construction progress can be monitored and the impact of delays assessed. It should clearly indicate when the client must supply access, information, and materials. The contractor must follow the construction schedule. A poor construction schedule will make it difficult for the contractor to quantify the delay, while the contractor not following the schedule and using other construction methods could invalidate the variation claim.

Weather records are essential when the contractor claims for delays to construction caused by adverse weather. Generally, normal weather events are a risk which the contractor must accept and they can’t claim for weather events which are the norm, or the average for the project location. So, how much rain did the construction project receive and was this more than average? If the contractor hasn’t maintained accurate weather records from the start of the project they might not be able to prove the exact amount of rain that fell on the project site unless there’s a weather station near the project.

Daily logs or diaries. Often clients request the contractor maintains a daily log. But, even if they don’t, it’s good practice to maintain the diary. This log must be accurate and include the weather records, the resources on the project, construction delays and major events. Regrettably, many of these logs are not accurate and may not support the contractor’s variation claim. When did the delay start, when did it end, what did it impact?

Project meeting minutes (records) often provide a record of progress and problems on the construction project. These minutes are often written by the client or their representative, and they frequently leave out information which is detrimental to them. It’s important to check that the meeting minutes are an accurate representation of what was discussed at the meeting and reflect the actual status of the project. If there’s an error or omission in the meeting minutes then the minutes should be rectified at the time, or the issue should be addressed in writing to the client. Contractors can’t wait until they are preparing their variation claim to find that the meeting records don’t support the facts in their claim.

Personal diaries. Construction project staff often keep personal diaries recording the events on the project. These diaries can be subpoenaed by either party should a dispute arise. They may provide valuable information to support or refute a variation claim. These diaries should be an accurate reflection of events on the construction project.

Request for information or engineering queries. From time to time the contractor will have questions for the client’s team. This could include missing, conflicting, unclear, or inaccurate information on construction drawings. All questions should be in writing so that there’s a record of the issue and when the matter was raised. The answer should be in writing with a date when it was received. Missing information and errors on construction drawings are a leading cause of delays on construction projects.

Photographs provide a valuable record of the status of the project. They can be used to record construction equipment used for a particular task and also lack of access and problems on the construction project. It’s very difficult to refute a photograph with a date. Of course, the client can also use photographs to record the contractor’s errors, bad quality and poor production, which could be used to refute claims.

Drawings and documents provided when the construction project was priced. All information provided to the contractor when they priced the construction project forms the basis for the contractor’s price. If the actual construction conditions and construction drawings are different, there may be the reason for a variation claim. It’s essential the contractor safely keeps all correspondence and documentation received when the project was priced and refers back to these documents in the course of construction to ensure that they claim for any changes which add time or costs to the project.

Drawing registers. Construction drawing registers should record when drawings were received by the contractor. Regrettably, some registers record when the drawing left the client’s office, which could be a day or two before the contractor received the drawing. Drawing registers are essential to prove the quantum of a delay caused by late information from the client’s team.

Drawing revisions. Clients and designers frequently revise drawings. This could even entail the contractor having to redo completed work or order additional or changed materials. It’s essential that revised drawings are kept (clearly marked as revised so they aren’t accidentally used for construction) so they can be referred to if the new drawing has resulted in a delay or additional work.

Correspondence, which includes emails, instructions, memos, and letters. All instructions of a contractual nature (which ask for additional work, changes, or impact progress) must be in writing. Unfortunately, clients often have poor memories when it comes to money and additional time. These instructions and letters must have a date when they were received. The correspondence must be clear and unambiguous. Where necessary it may be necessary to, in writing, ask for clarity.
​
Other documents could include, test results, handover and acceptance documentation, project reports, etc. All documents must be an accurate representation of the facts and the status of the project and have a date.

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​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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For more valuable information on construction claims get your copy of the author's book 'Construction Claims: A Short Guide for Contractors' which is an easy to read concise guide to helping you win your variation claims ensuring that you are paid for all your extra work and compensated for delays beyond your control

​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'
• 'The Successful Construction Supervisor and Foreman'
• and 'An Introduction to Building and Renovating Houses - Volumes 1 and 2'

'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

To help you navigate the construction process and avoid the traps and pitfalls when building or renovating your home read 'An Introduction to Building and Renovating Houses - Volume 1 Hiring Contractors, Managing Construction and Finishing Your Home' ​

Many are looking to grow their construction companies. To do this you need additional people, equipment, and of course projects. Sometimes the simple solution seems to purchase another construction company and merge it into your company. But is this a good solution? Well, it depends.

I worked for a construction company which was privately owned and almost a family business when I joined them. Within twenty years the company had grown into a multinational public company with revenue of several billion dollars and profits of a hundred plus million dollars. This growth was achieved by a combination of growing the company from within, as well as purchasing other construction companies. However, not all these purchases were successful, and a few even proved very costly. But, some of these purchases provided the company with the right resources and clients to grow, as well as giving us a springboard into other markets and regions. In this growth, our company became a takeover target for another construction company, which fortunately we resisted and we eventually outstripped the size of that company and became far more successful.
​
So what did we learn from these takeovers, mergers, and acquisitions?

It’s important to carefully analyze the reasons for purchasing another construction company. Only purchase a company if it’s going to offer additional opportunities and add to the balance sheet of your company. These opportunities may be because the new company:

• Is performing poorly and you believe that you’ll be able to turn the company around and make it profitable again, turning a ‘cheap buy’ into a ‘money maker’. Regrettably, this isn’t always as easy as it seems because:
  • The new poorly performing company often demands lots of management time to turn it around. Management time which is diverted away from doing what they were successfully doing – which was running a good construction company. I’ve often seen the diversion of management to fix and embed the new company then adversely impact the performance and reputation of the original company. Know who will devote time to fixing the company and understand that they will be unavailable for other projects within the existing company for several months, and even a couple of years.
  • You always need to understand why the company was failing and what you’ll do differently to turn the company around. Unfortunately, often failing companies are failing for multiple reasons and often the true reasons for the failure, as well as the full extent of the problems, are hidden and only become apparent after the company has been purchased.

• Is working in a different region, maybe another state, and it will help your company expand into this region. Nevertheless, it’s important to first:
  • Analyse the risks and opportunities of the region. Understand whether the new company is operating successfully in the region – are there problems that aren’t obvious, or costs which aren’t accounted for?
  • Check that they are making money.
  • Understand the reasons for their success – sometimes it may just be a lucky contract or an opportunistic period.
  • Ensure that there will be further work in the region.
  • Understand whether the company will provide the appropriate spring-board to expand into the region. Are there other ways to get into the region without spending money on purchasing that company?

• Has established relationships with different clients to the ones you normally work with. However, you must understand:
  • The reasons for these relationships, since they are often built around personal relationships which can be worthless should individuals leave the client’s or contractor’s employ.
  • Whether the clients will continue to provide work opportunities.

• Has expertise in a different field to what your company has. Nevertheless, first check the following:
  • Is this expertise because of particular individuals employed by the company, and will they remain with the company after the take-over?
  • Could these individuals, or others with similar expertise, be engaged by your company at a fraction of the cost of purchasing the whole company just to get their knowledge?
  • Is the whole company expert in this field, or are you purchasing other sections and people which are less useful and may even have to be terminated later at additional costs?
  • Is the company really an expert and is their reputation with clients as good as you perceive it to be?
  • Will having expertise in this field really enhance your company’s capabilities and profits and will the purchase of this expertise earn a return on the investment?

• Has a large pool of skilled personnel. But first, ascertain:
  • Whether the personnel will remain with the company. (I’ve generally found that up to half the employees resign and leave the company that’s been bought within a couple of years of the buy-out – unfortunately, it’s often the better ones that leave first).
  • Are the people as skilled as you think they are?
  • If it would have been cheaper to attract the skilled people from elsewhere, rather than purchasing the company to get the people?
  • How many personnel aren’t good and are dead-wood who will need to be made redundant?
  • The overlap of people and functions between the companies, since it’s invariably necessary to terminate employees when there’s already a person fulfilling that function (this termination process is expensive and causes fear and resentment amongst the new company’s employees – leading to resignations and poor performance).

• Has lots of construction equipment. However, it’s necessary to check:
  • If the equipment can be utilised (remember there’s no choice and you’re paying for all of the equipment whether you can use it or not).
  • Are the items compatible with the equipment already owned?
  • Is the equipment of a similar model and make as equipment already owned? Having assorted models and makes of equipment means additional spares have to be kept and maintenance is more difficult.
  • The condition of the machines and have they been regularly maintained with service histories and records.
  • Are the warranties in place and still valid (because some may have been invalidated if the equipment hasn’t been serviced correctly or the original manufacturer’s parts haven’t been used).
  • The condition of wearing parts and tyres as there could be a large cost to replace them.
  • Are spare parts readily available for all the items?
  • Who owns the equipment – some equipment may be leased or have large outstanding loans?
  • Would it be cheaper to buy the equipment elsewhere rather than purchasing the company? This will enable you to purchase only the equipment that you need and equipment that matches your existing equipment.

• By purchasing the company you may be removing a competitor. But is this:
  • Going to be a benefit worth the cost?
  • Not going to result in another contractor taking their place?

​It’s imperative that a proper due diligence is carried out on the new company before purchasing it. This should include reviewing:

• Many of the items above.
• The financial statements and verifying their accuracy.
• All projects and understanding their safety, quality, outstanding payments, what costs and revenues have been declared and whether these are correct, potential project problems, progress measured against the project schedule, forecast cost to completion, resources, suppliers and subcontractors, the status of claims and variations, if the client is happy (review project progress meetings) and the quality of staff.
• Outstanding debtors and creditors.
• Business systems.
• Employment contracts.
• Accident and insurance claims.
• Unresolved problems on completed projects. You don’t want to find unfulfilled liabilities.
• Prices which have been submitted for projects that may be awarded to the company. Are these prices reasonable and can the projects be completed profitably? You don’t want to be buying loss-making projects!
• Operating Procedures.
• Their tax affairs.
• Outstanding guarantees and warranties.
• Labor relations and agreements.
• The numbers of personnel, their skills and years of tenure.
• Lease and rental agreements.
• Money owing on loans, equipment, and other assets.

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I’m sure we have all heard of construction companies that have expanded, become successful, revenue has increased and their profits have increased, then, the wheels have come off. Profits have fallen and share prices collapse! Some companies even go bankrupt. Where did it all go wrong?

Of course, we all know of the small local builder who kind of ‘bobs along’. They employ only a handful of people, making an average profit most years and every now and then striking it lucky with a really good year. The owner seems content. But then they have a bad year, literally living from hand to mouth struggling to pay their bills, surviving until another good project comes along. Is that what you want to be?

Yet, occasionally we have construction companies that have grown within a generation, from a one-man business to a multi-million-dollar construction empire, that often spans many states and may even have grown into a multinational organisation constructing mega projects in other countries. The company is now worth tens or hundreds of millions of dollars, occasionally even worth a billion dollars. Maybe that’s what you would like your construction company to be?

So it is possible to stay small and successful and is it also possible to grow and become successful. So how do you decide what direction your company should follow, and how do you make those decisions successful?
​
Of course, there are also many companies somewhere in between, which are growing at a steady pace, maybe even with a few contractions when work dries up, then growing again when there’re more opportunities. The one-man company possibly now has a hundred employees and there’s a steady stream of projects.
lick here to edit.

​Growing a company successfully is very satisfying. It enables the original owner to move away from being hands-on where they were possibly working in the field on the project all day, while trying to complete paperwork at night and on weekends. It allows the original owner to take management control while relinquishing some of the smaller day-to-day project management duties. It’s often less physically demanding. It allows the owner to take on other bigger responsibilities and learn new skills.

Of course, it also creates new opportunities for employees, who can grow into new roles and take on new responsibilities while learning new skills. Not many people are happy fulfilling the same functions and jobs forever – most of us want to grow and develop. As the company grows, the employees grow, and in doing so employees earn more and can better their lives and the lives of their families.

Of course, a larger company can take on more projects and work with different clients which allows them to diversify so the company isn’t solely dependent on the success of their current projects. Sure there will be some projects that aren’t profitable and the amount of work in some areas will decline for a period, but having a diversified portfolio of projects and clients, preferably covering a number of different regions, will enable the company to better survive the occasional poorly performing project and the unpredictability of the construction industry. In fact, being bigger will mean that the company executes larger projects that could extend over a period of a couple of years, which might enable the company to get through the lean times easier.

Being the owner of a small company is often a lonely job where you alone must make all the decisions, where you alone must solve the problems. Larger companies usually have experienced and skilled people that can shoulder some of the responsibilities, handle the day-to-day problems on projects, and who can provide advice for solving the more difficult problems.

A successful and well-managed construction company provides employment opportunities for many workers – sometimes hundreds or even thousands.
Of course, a successful growing construction company can make the original owner very wealthy. As the company grows it will take on projects in other regions which may bring opportunities to set-up house in another area which may be more suitable for the family.
​
A larger company means that you can take on larger projects and more challenging projects. At the end of the day building a successful large construction company creates a legacy that others will appreciate, a legacy that’s changed employees’ lives for the better.

​Many construction companies start off successfully. They develop a good reputation and are profitable. The company grows. Then the cracks appear. Quality deteriorates. Projects are no longer profitable. The company starts losing money.
Why does this happen? Well, there are a number of reasons.

• Normally construction companies start off small and the owner is hands-on full-time supervising projects. As the company grows the owner can no longer be hands-on and passes control to managers and staff who aren’t necessarily as focused on ensuring that the projects are successful, and don’t take the same pride in looking after clients and achieving quality work as the owner did.
• Sometimes the new managers are inexperienced. Small businesses often employ mediocre staff because they’re unable (or unwilling) to pay large salaries or attract good people.
• Often owners don’t delegate work correctly. They try and remain in control, but have too much other work and are unable to attend to everything, leaving projects waiting for materials, resources, decisions, and guidance.
• Clients become frustrated when the company isn’t responsive because the owner is busy attending to other business and hasn’t delegated someone else to take the responsibility of managing the project. Clients have become accustomed to dealing directly with the owner and can’t understand why the owner isn’t available anymore.
• In addition, the company undertakes more and bigger projects, sometimes resulting in them having insufficient cash flow. Lack of cash disrupts the procurement of materials and payment of subcontractors, causing delays and, in the worst case, the company goes insolvent.
• Sometimes the company experiences a rapid expansion in a boom period and employs more people, moving into bigger offices and purchasing additional equipment. Unfortunately, these boom periods are short-lived and end just as suddenly as they started. The contractor is left with excess people and equipment in offices that are too large with a high rental.

It’s imperative that the company grows in a controlled manner. The owner must gradually hand over control of various areas of the business to trusted, experienced individuals. The company must progressively increase the number and size of the projects they undertake, ensuring that they always have sufficient cash to finance their operations (including maintaining a buffer for when the unexpected happens) and sufficient resources to carry out the work.

Growing a construction company requires good people and robust systems that can handle the growth and simplify the workload. Managing a large construction company is very different to running a small company.
​
But, it must never be growth at any cost. Some business owners and managers are driven to grow the business no matter what the conditions are. Large companies have shareholders who expect the company revenue to increase every year, particularly after the company has experienced a few years of stellar growth. Unfortunately, construction has periods of growth and times when work is in short supply. It’s inadvisable to try and expand the company in times when work is limited. Use times of low construction activity as an opportunity to clear out dead wood, get rid of people who no longer fit with the company’s vision, consolidate, and importantly train and re-skill people where necessary so that the company is set for better times.

​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'
• 'The Successful Construction Supervisor and Foreman'
• and 'An Introduction to Building and Renovating Houses - Volumes 1 and 2'

'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

According to the Bureau of Labor Statistics, there are over 15,000 construction site injuries in the US and more than a thousand of those injuries are fatal. Unfortunately, a large number of these injuries could’ve been prevented if the people in charge put some time and effort into quick but effective training sessions and regular reminders. Moreover, during our research, we found that a large portion of these accidents are caused by the presence of heavy machinery on-site, a critical part of almost every construction site, which is why we’ve compiled a list of construction safety tips when working around heavy machinery using data from the BLS, OSHA, and CDC.

1. High Temperatures
Heat injury is a serious health problem that affects thousands of workers every year. But combine the extreme heat of the summer with heavy machinery and your construction site becomes a lot more dangerous. Metal surfaces of your machinery can easily burn workers. Your operators are at even greater risk as they might get caught out with hot instruments and lose control of the machine. It’s also not uncommon for operators to fall off a machine due to extremely hot metal surfaces when trying to dismount (more on that later).
 
The best way to avoid such injuries? Protective clothing. Workers might not be too excited about wearing bulky clothes in the heat but it’s for their safety. At the very least, they should be wearing gloves at all times. White-colored clothing, regular breaks, and water would further help in keeping body temperatures down.
 
It’s also in your best interest to know when it’s time to stop. Take a look at OSHA’s Heat Illness Prevention Campaign to learn what temperatures are safe for work.

2. Mounting/Dismounting
According to the CDC, falling is the leading cause of work-related injuries and deaths in construction sites, and falls in the construction industry are frequently fatal. In other words, you don't want your workers to lose balance and fall down in an active construction site. The stakes are even higher when there are heavy machinery, like skid loaders, working around them.
 
And what’s the most dangerous and often the most dangerous time to fall? When mounting or dismounting heavy machinery.
 
The best way to avoid such injuries? Use the three-point contact rule, according to which, the worker must maintain at least three points of contact with their hands and feet while mounting or dismounting a machine to limit the possibilities of slipping or falling.

3. Hand Signals
As useful and versatile heavy machinery is, they can be noisy and make it difficult when workers try to communicate with one another. In addition, machine operators (especially crane operators) are often positioned far from those directing the work. Not being able to understand each other can have dangerous consequences on a construction site. One way around this is to use radios for communication. It’s also what most construction sites use to overcome loud machines. But radios don’t always work and you must have a backup in case the radios stop working and your operators and workers can’t communicate with each other.
 
The backup? Hand signals. Train employees to learn and use and understand simple but clear hand signals when the need arises.

4. Regular Inspection
Machines require maintenance - no two ways about it. But the maintenance also needs to be regular or else critical signs of damage or improper fits can go unnoticed. For instance, if a skid loader’s tracks aren’t properly tensioned, it can simply walk out of its tracks and potentially hurt others nearby.
 
There are millions of other ways a lack of heavy machinery maintenance can lead to disaster in a construction site. So put in the time and effort into keeping your machines in perfect condition. Otherwise, you could be paying $991,027 - the average hospital costs for a fatal construction accident.
​
5. Training Session
A proper training session can be as short as 30-minutes. It would be enough to cover the basics of best safety practices when working around heavy machinery. A few of these training sessions will allow employees to understand the common hazards when working with heavy machinery, the correct way to inspect and maintain heavy machinery, and also teach awareness procedures to both operators and ground crew.
 
And that wraps our top 5 construction safety tips when working around heavy machinery. You can learn about these safety tips through official websites of BLS, OSHA, and CDC. ​

Have you selected the wrong contractor or subcontractor for your construction project? The contractor performed badly, with delays and poor quality? Perhaps there were hidden extra costs and their final price when the work was complete was much higher than you expected?
​
Regrettably many construction projects go badly because the wrong contractor or subcontractor is selected. Often owners or contractors are only focused on the lowest price and select the cheapest contractor who is sometimes the wrong contractor and proves to be very costly. It’s therefore important to consider the following when selecting your contractor:

• Does the contractor have the required experience to deliver the work? Don’t just take their word for it, check their references and visit their completed projects.
• Do they have the applicable registrations to do the work? Ask to see the registrations.
• Can they produce acceptable quality? Some construction projects and clients require contractors to have particular quality registrations. But more importantly, have they produced good quality work on their previous projects? Do they have a quality management system? Do they have the required people and skills to produce good quality work?
• Have they worked on similar construction projects? This not only relates to the type of construction work that’s involved but also to the type of project and client. For instance, many contractors may be able to deliver a similar project on a commercial building project in the city, but have no experience on working on remote mining or oil and gas projects which have specific requirements and require more onerous safety standards. There is also a large difference between contractors that build low-cost houses, to those that build houses for the luxury market.
• Do they have the resources to carry out the work? This includes equipment, management, and the craftspeople. If they don’t have the resources can they access the resources and will they be able to manage them?
• Do they have the financial means to carry out a project of this size? Because of the way project finances are structured, with contractors usually only being able to invoice for work once it’s been completed and then they’re only paid one month to three months later, often after the client has deducted retainage monies, contractors often experience negative cash flows on their construction projects until they are substantially complete. The larger the project the larger the negative cash flow will be. Contractors have to be financially secure, with sufficient cash reserves to withstand the negative cash flow on this project combined with the negative cash flows they may be experiencing on other projects they’re working on. But furthermore, if contractors are suffering losses on other construction projects this could cause them financial stress on the new project which could mean they can’t pay for people and materials on your project. In extreme cases the contractor could become bankrupt partway through the project, which would leave you in trouble, facing delays and additional costs, while you find another contractor to finish the project.
• How does the size of the construction project compare to the size of projects the contractor has undertaken in the past? Contractors may have successfully completed smaller projects, but managing a large project can involve different management techniques. In addition, larger construction projects require more resources and more support from their head office. Larger projects also impact contractor’s cash flow more than smaller projects do.
• What other work are they currently doing? If they are involved with other large projects they may not have the resources or the finances to undertake additional work.
• What is their safety record? A poor safety record is often indicative of poor management. But, contractors with a poor safety record shouldn’t be used on your construction project. Accidents delay projects, they result in negative publicity for the project, it usually involves lengthy investigations and masses of paperwork which takes everyone’s attention away from getting the construction completed, and poor safety could get the project stopped until the contractor rectifies the safety breaches.
• Do they have a good reputation?
• Have they got a record of being claims orientated and engaging in legal disputes with their clients? You don’t want to have to waste time arguing spurious variation claims or engaging legal experts to argue frivolous disputes. Sure there will probably be changes and additions on your project, but you should be comfortable that the contractor will deal with these in a prompt and fair manner, as you should also deal with their claims.
• Are they reliable and complete their projects on time?

It always pays to check references, who did they work for previously and were they happy with the contractor’s performance. Even visit their completed projects to see if you’ll be happy with the standard of work. Past performance, however, is not always indicative of how a contractor will perform on a project and I have, on occasion, had good contractors perform poorly on my project due to them being over-committed on other construction projects, which meant they had insufficient and poor quality resources for my project.
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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 Management: From Project Concept to Completion'
• 'The Successful Construction Supervisor and Foreman'
• and 'An Introduction to Building and Renovating Houses - Volumes 1 and 2'

'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

​Most of us know the risks created by asbestos and how asbestos related disease has impacted the health of people around the world. Unfortunately not everyone is aware of the products that contain asbestos, so even now there are scores of people who are inadvertently exposed to asbestos every year. Asbestos was formerly used in many products including insulation, floor coverings, electrical boards, and more. People renovating or demolishing buildings more than 30 years old must take precautions and check to ensure they know what products contain asbestos, and then ensure these are handled and disposed safely.

But asbestos isn’t the only silent lung killer. Indeed there are more and more workers in the construction industry being struck down by silicosis. This is caused by breathing in silica dust. Silica dust is created when masons cut materials like concrete, masonry, sandstone and granite. The disease isn’t curable and results in permanent scarring of the lungs. Silicosis is a debilitating disease making even minor physical activity near impossible, and severe cases lead to death. For more read this report.

A relatively new source of silica dust is the use of engineered stone kitchen bench tops and bathroom vanity slabs. According to this report engineered stone consists of 90% silica. These tops have to be cut to size and holes are cut and drilled to accommodate the installation of sinks, cook-tops and plumbing fittings.

In Australia, where cases of silicosis have increased by 50%, new laws are being introduced to reduce the amount of dust exposure, but these probably don’t go far enough since many workers are exposed to silica dust over prolonged periods of time.
In the US, according to a 2015 report from the Centres for Disease Control and Prevention, some 2 million workers are exposed to silica dust, with the highest risks being in mining, quarrying, stonemasons, tunnelling and construction, with many of these workers facing high exposure.

​Want to read more construction management tips and insights? Read 'Successful Construction Project Management: The Practical Guide' by Paul Netscher