​Well I’m sure many of you answered 2 – of course you’re wrong.
A few won’t have read the article, but will be writing to object to the error in the title.

Of course those familiar with the Bible know that Moses built the Ark of the Covenant to house the 10 commandments and it wasn’t for animals. While most people have heard the story of the biblical flood and the ark (ship) that Noah built to save 2 of every kind of animal.
​
Those answering the question what has this got to do with construction probably came up with answers like shipbuilding, maybe even quality construction?
​
However, this simple question has been used as a test to demonstrate that many people jump to the answers, or reach conclusions, without fully listening to the question, or thinking through the problem.* 

Unfortunately, construction project managers are no different.
They start a new project without considering how they reach completion. Some project managers don’t think through the problem and just start construction, following what seems to be a logical sequence. But, is this the shortest and most economical solution. If we want to go from A to Z and aren’t familiar with the destination then we input the start and end addresses into our smart devices or GPS – yes, most of us don’t just start driving hoping we will reach our destination. These devices give us various routes to choose from. Some will be shorter by distance, some are shorter by time, some avoid traffic, and some avoid tolls. We select the best route for us at that time. So it is when we construct our projects, there are a number of paths to follow, and the obvious route might not be the most efficient. Indeed there are all kinds of factors to consider when deciding how to construct the project. This includes, client constraints in the contract document, such as when information and access is available. But, then some project managers are in such a hurry to start construction that they haven’t read the project documents. Then there’s the availability of people, equipment and materials to consider – it’s pointless racing out the starting blocks with your construction if you’re going to be standing in a few weeks waiting for materials, or perhaps the equipment for your chosen construction method isn’t available.

Sometimes a new project appears similar to the last project, but is it? There are always differences, different client, different contract document, different details, different project site conditions and different weather. Don’t assume that because the project looks the same, that the same methods of construction will work as well.
It’s important then to take time to plan your project before starting, understand the existing information, the available resources, the interrelationship between structures and carefully weigh up the various options. Sure, the client may be in a hurry for construction to start, but taking some extra time at the start of the project to think through what the best solution is, will definitely save time and money later.
​
The lack of fully understanding the question or problem is demonstrated elsewhere on our projects. There’s a problem, say a machine breaks. Instead of asking why or delving deeper, the malfunction is repaired. Then it breaks again – why? Maybe the machine is unreliable, maybe it wasn’t serviced or repaired correctly, maybe the operator caused the problem because they couldn’t operate the machine properly, indeed I’ve even had operators deliberately sabotage equipment. So, you could keep repairing the item and it will break again, because the underlying cause of the fault hasn’t been fixed. Nobody understood the problem!
​
Frequently, we rush to answer a client’s question, a question from an employee or a question from a manager, but in our hurry to answer we haven’t actually listened to the question, or perhaps we rushed our answer (as in the above example) without considering all of the facts – so our answer is wrong, or at best insufficient. Don’t think you know what the question is, rather listen to it properly, then consider an appropriate answer.

​In construction we’re often rushed, stressed and under pressure. There are regularly arguments, claims and counterclaims, many leading to disputes. Some of these are a result of misunderstandings and poor communication caused by one party misinterpreting what the other party said or wanted. Sometimes somebody assumed something or jumped to conclusions. Some of these issues can be avoided if we just take the time to listen, ensuring that we properly understand the other party and provide a logical well thought through reply. Of course it works the other way, and frequently we should check that the other party has understood us correctly.

​Contractors are notorious for not reading project documents when they price the project. They often make the wrong assumptions. They jump to conclusions about what work they will execute and what others are responsible for. They assume more difficult or risky conditions than will be encountered, or hope that everything will be easy. Sometimes contractors win projects with stupidly cheap prices which they’ve calculated based on the wrong information or because they didn’t allow for some work. Other times contractor’s prices are far too high because they’ve assumed items are part of their scope which weren’t.

Learn to listen. Don’t be too quick to jump to conclusions. Make sure you understand the issue before drawing a conclusion or deciding on a course of action. Don’t make the wrong assumptions. If you don’t understand something ask. Don’t insert words, names or interpretations into a comment, letter or document – only read or listen to what’s actually said.

Did you get the answer correct to the title question? If so well done – you’re obviously a good listener who doesn’t easily jump to conclusions. I’m sure your projects benefit from your clear thinking and calm, logical approach.

Do you regularly interrupt people and assume you know what they want to say? Have you incorrectly assumed something, then been embarrassed when you found your assumption was incorrect?
​
*The test was demonstrated in the BBC series Brain Games

​This article is adapted from information in the author’s popular books: 'Successful Construction Project Management: The Practical Guide' and 'Building a Successful Construction Company: The Practical Guide' and 'Construction Project Management: Tips and Insights'
'Construction Claims: A Short Guide for Contractors' is another of Paul's useful books.
Paul has recently published 'Construction Management: From Project Concept to completion'.
Paul's new book: 'Build and Renovate Your Home With Your Eyes Wide Open' is for those with little construction experience who want to build or renovate a house. It's filled with tips and suggestions to help you on your way, ensuring you avoid the pitfalls of home construction projects.
These books are available on Amazon and other online book stores.
Paul publishes articles regularly on LinkedIn and his website. 
Paul writes regular articles for other websites, gives lectures, mentors, and is available for podcasts and interviews.
Please like and share this article.
​© 2019 This article is not to be reproduced for commercial purposes without written permission from the author.

Contractors literally have one opportunity to convince the client of the legitimacy of their variation claim so it's important to get your claim right. Watch the video for more.

During the 2007-2009 recession the tech bubble blew up and the US housing market collapsed.  The construction industry was badly affected by the crisis as was the construction industry in many parts of the World. The effect was so adverse that the industry struggled to get back to its pre-recession feet even after the market recovered.

During its struggle, the construction industry underwent many transitions. It introduced new tools and machines, developed efficient planning, new construction methods and executional techniques in order to decrease cost and increase quality and efficiency.
 
Starting from $788 Billion in 2011, it has covered a lot of ground in terms of growth and value and has been growing at a steady pace ever since. It has now grown up to $1.37 trillion in 2019 and is estimated to hit the $1.5 trillion mark earliest by 2022.
 
There is, however, one aspect of the construction industry that still needs improvements: workforce management. The construction industry could increase its workforce efficiency and reduce overhead costs by simply transitioning from paper-based workflows to modern-day workforce management solutions.
 
Workforce management solutions are typically applications that run on mobile devices. They streamline workflows and solve basic management issues. Avoiding proxies, automating clock-in and clock-out, collecting field data, dispatching jobs in real time, and calculating of HOS are some of the features that come with workforce management solutions.
 
With so many moving pieces in any business, a strong workforce system will allow you to track and manage a wide variety of schedule and payroll related tasks. Not only does this simplify record keeping, but it also allows you to locate workers in the field and will save time by allowing the system to process this information for you.
 
These systems help you map out processes, monitor progress and resource allocation, streamline work and cut down on in-person meetings and email chains taking a considerable amount of load off managers and employees.
 
Today’s modern age has an increasing demand for workforce management system software. This need reflects the increase in size and complexity of management systems and the increasingly competitive marketplace that demands faster service and more efficient internal processes. In response to this growing reliance on software solutions these are several features you need to look for in an app-based workforce management solution before deciding the best solution for your business:

• Ending the hassle of paperwork: Mobile forms should provide you the freedom to upload pre-created forms and transfer the stacks of papers like; contracts, evaluations, contact information, etc. onto a digital screen.
• Saves time: Software application must enable the mobile device to capture data like signatures, custom forms, perform QR or barcode scans, save pictures, and notes. Also, help you assign jobs and tasks to your workforce in real-time, thus, cutting down time needed for task completion.
• Help you handle unforeseen circumstances: Features like GPS location tagged messaging, photo capture, forms with QR etc. can supplement any situation that requires immediate attention or assistance on the job.
• Provides real-time notifications: The app should trigger alerts based on triggers/logics like late arrival and early departure, not-punched-in or app turned off etc. in real-time helping you to make decisions faster and easier.

 
Conclusion
There are many innovative and new software solutions in the market to help contractors. It’s important to understand the various systems, investigate their many features, know how the systems can integrate with your existing systems, business practices, software and the future needs of your company, and recognize the benefits as well as the potential downsides.

​This Post is supplied by John Cunningham, Director of Marketing & Sales at Abaqus Inc. A seasoned full stack marketer and team leader.
myGeoTracking helps businesses better manage mobile workforce and field operations with tools such as real-time location, GPS time and attendance, geofence visit logs, Lone worker safety, Mobile forms and more! The platform features powerful rules engine and integrates with popular back-end CRM, HRMS, and Payroll systems to automate day-to-day operations.

​Usually clients have to be notified by the contractor of a variation claim within a specified time. Failure to submit claims timeously could mean that they're rejected. Watch the video for more.

​Contractors face financial risks on every corner, and unquestioning contractors can quickly find that their pockets have been picked, and their hard work and efforts have been turned to nothing by unscrupulous people. Contractors need to be wise to these tricks and have systems in place to protect themselves.

Who could be stealing from your company?

1. Employees. Employees can steal from us in many different ways:
   1. They steal time – arrive late, have extended lunch breaks, leave early, and even call in sick when they aren’t. If everyone on your project starts work 5 minutes late, take an extra 5 minutes on each side of their rest breaks and leave 5 minutes early you could be paying 30 minutes or more per person every day. It can add up quickly!
   2. They use company resources for private use. This could include the company vehicle and cell phone. But sometimes it’s more blatant and they use company tools and equipment after hours, sometimes even renting it out to friends and pocketing the money.
   3. They steal materials. From office supplies to timber, paint, and adhesives, it may seem minor but quickly adds up. Some employees are even more blatant about arriving in vehicles after hours to take stuff. In the retail industry, the biggest cause of shrinkage (what retailers call theft of merchandise) is from employees and not from the public shoplifting.
   4. They falsify travel and petty cash claims.
2. Management
   1. Use company resources to do private work. I’m sure there are many homes that have been built with company resources that the individual never paid a cent for! I certainly know some.
   2. Pay subcontractors and suppliers through the company, for work that was done in their private house.
   3. Use subcontractors or suppliers who happen to be their friends, but who weren’t the cheapest or the best for the project. In extreme cases, they may even have a share in the subcontractor or supplier business.
   4. Accept bribes from subcontractors and suppliers to award them contracts, to accept substandard work, or to pay bogus invoices.
3. Suppliers
   1. Double invoice for materials.
   2. Don’t provide the correct quantities as per the delivery notes. This is often the case with suppliers of building sand and gravel. Who checks that the quantity on the truck is what’s on the delivery docket? I know when we checked, we often caught suppliers short delivering.
   3. Deliver damaged or defective materials or equipment.
4. Subcontractors
   1. Invoice for work that hasn’t been completed.
   2. Deliver substandard work.
   3. Lodge spurious variation claims.
5. Customers/clients.
   1. Don’t pay contractors.
   2. Pay contractors late. Why should you be your client’s bank? They are earning interest from your money – money that you need to pay employees, suppliers, and subcontractors.
   3. Back-charge for items they shouldn’t.
   4. Refuse to pay variation claims which the contractor is entitled to.
   5. Request changes, but don’t issue written instructions, then argue they don’t need to pay for the item.
6. Authorities
   1. May retain deposits because they claim the contractor damaged infrastructures, such as roads and curbs.
   2. In the worst case may even expect bribes to process documentation.
7. The public
   1. Steal equipment and materials from construction projects.
   2. Engage in cybercrime which could include ransom malware.
   3. Submit bogus claims for damages, even injuries, which they claim were as a result of construction activities.

​Theft results in:

1. The immediate loss of the item.
2. Work could be interrupted because equipment or material was stolen. This results in costs of people and equipment standing.
3. Money stolen could have been used to invest in the company. To purchase new equipment and to grow the company.
4. Money stolen may have been used to pay off loans, so you now have the cost of additional bank interest.
5. Thieves often damage other items which have to be repaired.
6. The cost to investigate the theft.

Don’t let your hard earned cash disappear out the door. There are steps that you can put in place.

1. Set the right example. Our employees are always aware of what management does.
   1. If they see you having extended lunch breaks or arriving late in the morning they’ll think it’s okay for them to do the same.
   2. Don’t take materials from your projects, or if you do, then make sure that employees know that you’ve paid for them.
   3. Don’t encourage employees to steal from other contractors, or to cheat suppliers, subcontractors or clients.
   4. You’re setting up a culture of theft and employees will notice that you condone theft in some cases, therefore theft is okay, even if it’s theft from your company.
2. Enforce rules fairly and evenly.
   1. Those caught stealing must go through the full disciplinary procedures. The worst thing that can happen is you dismiss someone for stealing and then have to re-employ them because it’s found their dismissal was unfair. Don’t get carried away in the heat of the moment, rather do things properly following procedures.
   2. Never overlook an indiscretion because an employee is a good worker, or you need them. If you turn a blind eye others will follow the example. But importantly, if you’re aware somebody is stealing, there are probably other thefts they’ve been involved with that you haven’t noticed. In fact, often we tend not to suspect our best workers of stealing so don’t see the obvious signs.
   3. Enforce the rules. Sometimes it seems hard work, but when you let employees slide for some items they’ll start sliding elsewhere. Whether it’s safety, quality or timekeeping, make sure that employees keep to the rules.
3. Ensure that employees understand that theft of any sort, even ‘borrowing’ equipment, is unacceptable. Make this part of every employees’ induction, even discuss it at ‘tailgate’ meetings. You don’t want anyone to say they didn’t understand the rules!
4. Put systems in place to detect and prevent theft. These include checking and reconciling materials and invoices. If employees and others know there are robust systems to detect theft they’re less likely to try and steal. Detecting theft early will enable you to take steps to prevent further theft.
5. Ensure that proper security is in place on all project sites.
6. Check that computer systems are safe from infiltration, viruses, and malware.
7. Encourage employees to look out for theft and suspicious behavior. All employees must understand that theft hurts the company, and it ultimately impacts them in that the company makes less profit, which impacts their wages and bonuses, it could prevent the company from purchasing new equipment, and in the worst case, the company could even become bankrupt.
8. Carefully research your clients. Don’t work for clients that have a reputation for paying their contractors late, or even not at all. Nobody wants to work for free.
9. ....Continue Reading......

​This article was first published on the ClockShark website. To visit this website and continue reading the article click on the link above.
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In the last video I discussed why construction variation claims may be bad for both the contractor and the client. Therefore, wherever possible steps should be taken to mitigate claims. Watch the video for steps to prevent claimable events occurring.

I’m sure you’ve heard the saying ‘pay peanuts and you get monkeys’? Believe me. It’s true.
So true, that’s why it’s important that you pay market-related salaries which are fair and sustainable and which will attract the right people.
Our employees look around and compare their salary packages with what they can get elsewhere.
But, in this competitive world, it’s impossible to retain people solely by paying higher salaries than competitors. There’s always another contractor, desperate for good people, who will willingly pay a premium to entice skilled people for a particular project.
Therefore it’s imperative that quality candidates are attracted to the company and retained, for reasons other than salary.

Here are some ways you can attract good people to your construction company and construction project - and most important keep them:

1. Make individuals feel part of the business by regularly communicating with them, discussing the company’s future plans and where they’ll fit into these plans, thanking them when they’ve done a job well, and making them feel wanted.
2. People want to work for successful companies, so the company must have a good reputation and success. Success is empowering, infectious and stimulating. Everyone wants to be part of a winning team. Success is winning a new project, successfully completing a project or winning an award.
3. Mentor, train and develop people. Training our employees not only makes them more productive and knowledgeable, but employees also enjoy learning new skills and it makes them realize that the company is interested in them.
4. Promote people. Train and develop people within the company to take up senior positions. People want to see a path ahead.
5. Learn to delegate work to others. Effective delegation means you can spend more time on important duties, even enjoy some free time. Effective delegation means that employees learn new things and take on more responsibility. They feel more trusted. Even more important.
6. Make sure that employees have time-off work and don’t work extended hours and weekends. People need to spend time with their family.
7. Ensure the company can meet the person’s expectations and aspirations. Companies can’t satisfy everyone’s needs or desires, but try to understand a person’s aspirations and know that you can satisfy them before employing them.
8. Always be fair and consistent in your treatment of employees. Of course, being fair and consistent doesn’t mean acting leniently. It simply means applying the rules.

It’s often the little things that attract people. Good people attract good people. People want to work for people who are knowledgeable and experienced, where they can learn.

​Contractors assume that claims will be lucrative and that they’ll more than recover the cost and time of the delay. But this isn't always the case and there are downsides to claims as well. Watch the video for more.

​Information in this video is from the author's easy to read books: 'Construction Claims: A Short Guide for Contractors' and 'Successful Construction Project Management: The Practical Guide' and 'Building a Successful Construction Company: The Practical Guide'. All available from Amazon in paper or ebook.
Next week watch video 18 - How to avoid variation claims or mitigate their impact.
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There are numerous factors that can build or destroy a contractor's reputation. These include:

1. Being proactive – clients want to work with contractors who are proactive, anticipating potential problems and solving them before they occur.
2. Be responsive – don’t ignore the client’s complaints. Clients can be demanding, making changes to the project and construction schedule, but try and be accommodating. Being responsive also means returning the client’s phone messages, making yourself available for meetings, responding to queries promptly and submitting prices and revised schedules on time.
3. Be fair – this doesn’t mean that you shouldn’t charge for additional work or variations, but rather don’t take advantage of the client and charge excessively for these additions.
4. Work safely – it’s essential that you take safety seriously. I’ve known contractors being barred from working for clients because of a poor safety record.
5. Deliver a quality construction project – poor quality costs money to fix and it also destroys reputation.
6. Act professionally – always be professional and courteous in your dealings with your client. It’s easy to say things in the heat of the moment which could upset clients. Some clients can be unforgiving and bear a grudge for years, jeopardising the chances of winning further construction work from them.
7. Deliver your construction projects on time –  clients will often pay a premium to employ contractors they know will deliver their construction project on time. For many clients time is money.
8. Don’t over promise and under deliver – it’s usually better to under-promise and over-deliver. The client is then pleasantly surprised when the task is delivered ahead of time. Of course the client’s not going to accept dates which are clearly extended further than they should be.
9. Sort mistakes quickly and with minimal fuss – mistakes will happen, sort them out. Admit when you or your employees have made a mistake, tell the client how you will rectify the problem, then fix it.
10. Use reliable construction equipment – equipment that breaks down slows the project and it gives clients a poor impression of the contractor. Construction vehicles and equipment in good repair and newly painted can be a good advert for the contractor, especially when the company’s logo is clearly displayed.
11. Be honest – the company and its personnel must be honest. This is more than just not over-charging the client. It’s about conducting yourself and the business beyond reproach and not cheating others.
12. Meet the client’s expectations – this means you should understand what these are, then ensure that they are reasonable and that you can deliver on them. If the client has expectations you can’t meet, then turn the project down – a disappointed client can do immense harm to a contractor - even when it's not the contractor's fault.
13. Provide after completion service – unfortunately a construction project doesn’t always end when you hand the keys to the client. Most construction contracts have a warranty period during which the contractor is responsible for repairing defects due to their defective workmanship.
14. Behaviour of employees – poor behaviour in public creates a bad impression for potential customers. Clients have telephoned me to complain that the driver of a company vehicle wasn’t obeying the road rules, or was behaving badly or littering.
15. Avoid bad publicity – unfortunately news reporters are quick to focus on negative incidents and rumours. Accidents, industrial relations incidents, environmental problems and rumours of impropriety quickly turn into news headlines. Always be mindful of how events can create bad publicity.  ​

​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'
• and 'Build and Renovate Your Home With Your Eyes Wide Open'

'Construction Book reviews'
To read more about the author visit the page 'Paul Netscher'
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Extension of time and variation claims require supporting documentation. Failure to submit documents that support your claims could mean that the client rejects the claim. Watch the video for more.

Some people love using certain phrases, or have stock answers to questions and comments. These phrases are often used with little thought – just an excuse to do nothing, a meaningless answer, or a go-to phrase.
Here are a few phrases I hate hearing on construction projects. I’m sure you have phrases that you dislike?
1.“He is useless” (or maybe she).
/ Frequently used to complain about someone, or even used as an excuse for a failure on the construction project (blaming someone else for the failure).
= Well why is that person still working here if they are useless? What have you done about it? Have you told them where they need to improve? Have you provided adequate training?
2. “Don’t bring me problems, bring me solutions”. (or, “there’s no such thing as a problem, there’s only a solution”.)
/ This comes after asking the boss for help!
= If I had a solution I wouldn’t have asked for help! If there wasn’t a problem I wouldn’t need a solution. Let’s not play semantics, either you can help or you can’t. Personally, I’d rather someone brought a problem (or potential problem) to my attention and asked for help before it got out of hand. Sure we expect people to solve simple problems, we may expect managers to have thought of possible solutions, but surely we’ve employed people that we know we can trust to solve most everyday problems on their own, only bringing us problems when they need our help?
3. “We have always done it like this” (or; “we always do it like that”).
​/ In reply to a suggestion on doing something differently, maybe a different construction method or using alternative construction material. Frequently used as an excuse not to embrace new construction technology.
= Change is often good. There are often new and innovative ways of doing things, new construction techniques. Maybe the way you have always done things is the best, but you don’t know until you have considered the alternative construction solutions and methods.
4. "I’ll do it/that” – and it doesn’t get done.
/ In reply when you ask somebody to do something, to carry out a task.
= Don’t you hate it when people say they’ll do something and then don’t do it? If you don’t want to quote for the construction project then tell me, don’t keep me hanging expecting a price. If you’re not going to do something I asked you to do, tell me, then I can make alternative arrangements.
5. “No one will notice” (or; “It doesn’t matter, no one will notice”).
/ Often said as an excuse for poor quality construction work.
= Well I noticed! Hey, take pride in your work. Anyway, I can recall countless times someone has said that, then at the end of the day someone has noticed. If there’s a problem fix it, it usually costs a whole lot more to fix the problem at the end of the project when the client puts in on the snag or punch list, than it does to correct it now.
6. “Those are the rules” (or, “that’s what the boss wants”).
/ Usually said in defence of a request, or a refusal to do something. Often a justification for being obstinate or unhelpful (maybe even lazy).
= Some people love to hide behind rules, or other people. Sure rules are important, but it’s equally important to ensure that the rules are fair and applied in a fair manner. Also, are those really the rules, or are you just clutching at an excuse?
7. “Fix it or you are out/fired/dismissed.”
/ Frequently used when a construction project is losing money.
= Sure, threats are going to work? When there’s a problem, employees need to stay motivated, they require help and support. Threats are demoralising and seldom yield the desired result. Sure, sometimes the person has goofed up, they’ve caused the problem, they may need to be reprimanded, but, it’s usually far more important to get the problem fixed properly first.
8. “So and so, or company X, is worse than us.” Or, “we are better than company X”.
/ This in response to a criticism, or a suggestion on how thing should be done better.
= Why can’t we do things right, as they should be? Why should it be correct just because someone else is worse than us? Why do we measure ourselves against the worst construction company or an ordinary construction project, when in fact we should be striving to be the best?
9. “We don’t have time (or, money) for training.” (Or,” if we train them, improving their qualifications, they’re going to want a higher salary,” or, “they will leave the company if we train them”.)
​/ Usually in reply to a request to attend a training course, or an excuse for having poorly skilled construction workers.
= Companies always have an excuse why they don’t train people. But improving our team’s skills benefits the company and motivates workers. A skilled team will yield results – I’ve always got huge benefits from improving the skills of my team. There will never be time for training unless we make the time. There will never be money for training unless we budget for it.
10. “Safety is a waste of time and/or money”. (Or, “we don’t have time for safety”.)
/ Used as an excuse for poor safety practices on construction projects.
= Safety does not have to cost additional time and money, in fact good safety practices saves time and money. But anyway, is a person’s limb, eye, or life more important than time or money? We owe it to our employees to ensure they return home safely at the end of every day.

Conclusion
Think before you use some of these phrases. Are you being helpful? How do these phrases make you feel?
What phrases do you hate in construction?

​Any instruction of a contractual nature, which changes details and specifications, or which could cause a delay or additional costs must be in writing. 

Information in this video is from the author's easy to read books: 'Construction Claims: A Short Guide for Contractors' and 'Successful Construction Project Management: The Practical Guide' and 'Building a Successful Construction Company: The Practical Guide'. All available from Amazon in paper or ebook.
Next week watch video 16 - Supporting documents required to ensure your variation claim is successful.
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​2018, where did it go so fast? The last few years have been tough for many. Some of you will look back on 2018 and curse the gods of construction that were against you, subcontractors that let you down, the weather, politicians, uncooperative clients, competitors that undercut your prices, employees, the economy, in fact usually everybody and anyone. But this serves little purpose.

The end of the year is a time to contemplate the past year and consider the coming year. It’s that time of year when many make New Year’s resolutions. These include; getting fit, losing weight, stopping smoking, drinking less, taking up a new hobby, managing stress, changing jobs and spending more time with the family. Unfortunately, few successfully keep these resolutions because they’re often poorly thought through, spur of the moment decisions (sometimes made after a few drinks), or because they just seemed like the right thing to say and do. There’s no plan on how to go about keeping the resolution. So other than providing some optimism and a brief feeling of good, they often achieve little.

What will you be wishing for in 2019? No doubt you are wishing for company growth, increased profits, successful projects, a developing career, more family time, good health, less stress and a year with few problems. But have you really thought how you’ll achieve these aims? Do you have a plan? How will you make 2019 better than 2018?
​
Before you get totally immersed in the hassles, problems and work in the New Year, take some time to consider things you could improve in your company, your projects and your everyday life. Why not put some New Year’s resolutions in place, and keep them.

Don’t let another year go past without making a few necessary changes. Before we know it 2019 will be half gone! Take action now on just a few of these points and you’ll certainly be able to look back at the end of 2019 with a sense of achievement.
Write down the resolutions you want to implement. Include a short plan on how you’ll tackle them. Then, don’t forget to monitor progress through the year.

Make this year a new beginning. Don’t let this become another forgotten New Year’s resolution! You can make the difference with some planning and a little effort.

How do you plan to transform your company, your construction projects and your career this year? Please share your thoughts.
If you put some of these ideas into practice please don’t forget to give us feedback on how they helped you.
Wishing you an inspired, happy, healthy and successful 2019. Thank you for your continued support.
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The Construction Contract Document - all the rules of the project.
​Regrettably many contractors only read the contract document when there’s a claimable event or when they’re in trouble. Often by then it’s too late!
What does your contract document say?

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

Contractors are usually quick to submit variation claims to the client asking for additional time and/or money. These construction claims are a result of changes and additions that the client has made to the construction works, or because the project conditions which could have been expected on the project are different (more adverse) than those actually encountered.
But, sometimes the client makes changes, or there are other events, which could shorten the time the contractor takes to complete the project, or which reduces the contractor’s costs. Very few contractors voluntarily offer to provide a negative variation to the client - one which reduces the project cost or the time to complete the project. Should the client request a price or time reduction this is often met with indignation by the contractor.

​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'
• and 'Build and Renovate Your Home With Your Eyes Wide Open'

'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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An introduction to construction claims for construction project managers
Video 13 - Claims by subcontractors against the contractor
Just as contractors can lodge variation claims against their clients, so to can subcontractors submit variation claims to contractors. Watch this video to learn more, and how you can avoid these claims.

An introduction to construction claims for project managers
video 12 - Negative variation claims
Contractors hate giving money back, but not all construction variation claims are positive and sometimes contractors may be required to give money back to the client. Learn when and why, as well as when the contractor doesn't have to give money back.

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

With the short days and long nights, it’s not hard to tell that winter is upon us. Weather conditions have rapidly gotten harsher and even the simplest tasks have seemed more difficult. Many projects will see snow and some will get rain. Winter is in full swing. Is your project ready for the season? 

During poor weather, production may be slowed, or even have to stop for safety reasons. Materials can’t be lifted in high winds. Workers have to take more frequent rest breaks when working at extreme temperatures and their movement could be hampered by cold weather or rain clothes. Concrete could take longer to set and reach sufficient strength to strip forms.

Rain slows and even stops production. Storm-water can flood excavations, damaging equipment, causing excavations to collapse and generally delay construction work. Rain can penetrate partly completed buildings damaging finishes and equipment. Storm-water flowing from the project can erode away neighbouring properties, or deposit silt or contaminated material from your project site onto neighbouring properties.

Preparing your project for winter.
There is much to be done on projects while the weather is still good.

1. Make your project weather-tight. For those on building projects, your aim should be to get your building weather-tight, which will allow work to continue inside even while temperatures outside plummet. Working additional hours now to ensure your building is weather-tight could be well worth the additional costs.
2. Complete all groundwork before the onset of poor weather.
3. Check storm-water drains and gutters before the onset of wet weather. Often construction debris blocks storm-water drains. Sometimes drains are damaged by construction work or connections aren’t done properly. While the weather is still good clean and test drains and gutters to ensure there aren’t blockages and that they are all functioning. Blocked drains can lead to flooding and property damage. Nobody wants to go outside in a fierce winter storm to fix a problem that should have been sorted when the weather was still good.
4. Ensure that there’s sufficient stock of wet weather and cold weather gear. Unfortunately, your team often has to work in wet and cold conditions. Without the right gear, your project will lose productivity and time.
5. It could be prudent to have a stock of weatherproof coverings and tarpaulins available to protect unfinished work. It may even be advisable to have water pumps (with sufficient pipes) available in case excavations and basements become flooded.
6. The sun is rising later and setting earlier, with less daylight to work in. Consider reducing working hours to fit the new daylight hours. Otherwise, check that there’s sufficient lighting to enable work to safely proceed.
7. Check the site access roads to ensure they will be accessible even in the worst weather.
8. Review hazard assessments to ensure that they take account of the changed weather conditions. Hold tool-box meetings (tailgate, pre-start or safety meetings) to discuss the new risks with your crews.
9. Check that all materials are stored in such a way that they won’t be damaged by unfavourable weather.
10. In areas prone to severe winter storms, allocate someone to regularly monitor weather warnings. Sometimes, even a few hours warning could provide sufficient time to lock the project down, ensuring materials and equipment are safely stowed away, new work is protected and workers are safely out of harm’s way.
11. Remember, bad weather can sometimes close transport routes for days, so ensure there is always sufficient stock of critical materials such as fuel. You don’t want your crew standing around because of a shortage of materials.
12. Ensure that the project records all weather events which could be the reason for a delay claim. It’s difficult to ask for an extension of time because of poor weather if you don’t have all the facts and figures that contributed to the delay. It’s important to maintain accurate weather records.
13. Check that your construction schedule has allowed slack for the anticipated poor weather of the next few months. It may pay to try and get ahead of the schedule while the weather allows, especially items that’ll be impacted by poor winter weather.
14. Check that water pipes are protected from freezing
15. Ensure that all equipment is ready for the cold weather, and check that there’s stock of snow chains for tires if they’re required.

Note, that even weather events far from the project could cause delays by blocking transport routes and preventing materials reaching the project. Work in offsite facilities could be impacted by poor weather at these locations.

Milder climates
Of course, some states are fortunate to have milder climates without rain and freezing temperatures. These cooler dry days offer opportunities to maximise productivity and progress. Ensure your crews make the most of the good weather.

Conclusion

....Continue Reading.....

An introduction to construction variation claims. Video 11 - reasons to submit a variation claim.
​Apart from delay claims or extension of time claims discussed in video 6, often contractors suffer additional costs which they couldn’t have foreseen or allowed for when they priced the project.

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

All too often, construction projects are finished late. Usually, the contractor is blamed. Contractors inevitably lose money because they are on the project longer than they planned to be. In addition, they are often penalised by the client for finishing late. But, is it always the contractor’s fault?

Many of the delays experienced on a construction project are due to circumstances beyond the contractor’s control, which means that the contractor could have claimed an extension of time, usually including the additional costs that they incurred as a result of the delay. So why don’t contractors claim for these delays?

Unfortunately, contractors often fail to submit delay claims because:

1. They are so focused on doing the work that they don’t recognise when they have been delayed by circumstances which they could not have reasonably allowed for.
2. They don’t understand their contractual rights in terms of the contract.
3. They don’t understand the construction schedule and the impact that the delay will have on the project completion.
4. They believe that the delay won’t be a problem and that they’ll catch up the lost time.
5. They don’t want to upset the client by submitting a delay claim. Many of these delays occur early in the project, sometimes even before work on the project has begun and contractors are often embarrassed to be submitting a delay claim so early in the project.

It is vital to notify the client immediately when a delay occurs. Not only can the client sometimes take steps to minimise the delay by rectifying the situation, but they also have the option of requesting the contractor to accelerate the work to catch up the lost time, or they can implement steps to avoid delay on their following activities.

Contractors must learn to be more focused on the contractual issues as well as the construction work. Those who don’t understand their contractual rights will run into trouble, costing them money which could ultimately sink their company. The contract document is there to protect the client’s rights as well as the contractor’s rights, and no client can object to a contractor’s legitimate delay claim. Indeed, in the course of my career, I’ve been involved in over 120 projects for a multitude of different clients and many of these projects have involved variation and delay claims. Almost every one of these claims was settled amicably, even though some involved substantial increases to both the value and the time of the project. In nearly every case we went on to do further projects with the client.

Of course, it is important that every delay claim is backed up by sound logic and information.

Regrettably, some contractors only focus on submitting claims, often claims which are only desperate attempts to claw back time and money that has been lost due to their own mistakes. Many of these claims have no sound basis and are a waste of the contractor’s and the client’s time. In my next article, I’ll discuss some reasons the contractor can’t claim a delay for.

When Can Contractors Claim for Additional Time?
Contractors can claim for additional time when:

1. The client increases the scope of work on the project.
2. The client issues instructions to the contractor to stop work for reasons unrelated to the contractor. Or, when the contractor can prove that the client wrongfully stopped them working because the client claimed the contractor had not fulfilled certain responsibilities.
3. The client’s team provided construction information late to the contractor.
4. The contractor received access to a work area late.
5. The work area given to the contractor was not in accordance with the contract or the drawings. For instance, the area may not have met the correct specifications, dimensions or levels.
6. The client changes specifications to an item so that the item has to be reordered which causes a delay, or that the item with the newer specification takes longer to manufacture.
7. The client’s activities delay the contractor. This could be that the client’s contractors have not completed tasks required by the contractor to proceed, or the client’s operations impede the contractor’s work.
8. The client unnecessarily withholds approvals of the contractor’s designs, drawings or completed items.
9. The client demanded additional tests and inspections which weren’t in the contract document and which aren’t the norm in the construction industry.
10. The client demanded additional safety measures which weren’t stipulated in the contract document and which are above the normal requirements for the industry.
11. The client’s team issues drawings which have errors or omissions which results in the contractor being unable to carry out their work, or which caused the contractor to construct an item incorrectly which then has to be redone.
12. There were unforeseen site conditions which delay the contractor. These conditions could include:
    1. Existing unknown services and utilities, such as; gas lines, electrical cables, water pipes, data cables, etc. which have to be moved or protected.
    2. Different soil conditions such as rock and clay.
    3. Encountering hazardous materials.
    4. Discovering of archaeological artefacts.
    5. Uncovering buried building rubble.
13. There are extreme weather events in excess of what could be expected for that location at that time of the year.
14. Items that were specifically excluded in the contract, possibly such as, normal expected weather or hurricanes and tornadoes, occur.
15. Changes in legislation.
16. National strikes, work stoppages or disruptions which stops the contractor’s work, or impacts their suppliers or subcontractors.
17. Disruptions caused to the contractor’s work by the client’s workers embarking on industrial actions such as work stoppages.
18. Client supplied materials or equipment arriving late, or where these aren’t fit for purpose.
19. ....Continue Reading....

​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'
• and 'Build and Renovate Your Home With Your Eyes Wide Open'

'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

An introduction to construction variation claims for construction project managers.
Video 10 - Disruption Claims
​What is a disruption claim? Learn more....

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

After 30 years in construction I’ve developed some dislikes.
Do you agree with my list, or am I becoming old and grumpy and should learn to be more forgiving?

1. Clients that don’t pay for completed work, or regularly pay their contractors late. When contractors have delivered construction work of the right quality and on time they deserve to be paid. Not paying a contractor on time can have serious repercussions for the contractor, possibly even resulting in them becoming bankrupt. Inevitably there is a knock-on effect and the contractor’s employees, suppliers and subcontractors may not be paid. One invoice not paid, or paid late, can seriously impact the lives of many. Why should owners and clients make money at the expense of others. Of course, it is equally important for contractors to pay their subcontractors and suppliers what’s due to them and on time.
2. Clients that ignore variation claims from their contractors. Contractors can’t be expected to work for free! I had one client simply ignore our variation claims which eventually totalled the value of the original contract – that’s right the contract value had doubled but the client was only paying us for the original contract scope and value. This put severe strain on our cash flow and it would have sunk many other contractors. We tried everything in the book to be paid and only when we instituted legal action were most of our claims paid, although the contractor managed to avoid paying some of our claims on a technical issue. Why did we have to wait 6 months to get money that we were entitled to? If there’s a change in the project scope, or if the contractor has been delayed for reasons beyond their control then they deserve to be compensated – indeed they are entitled to be compensated in terms of the contract. 
3. Clients that request you price a project and then use your price to bargain with their favoured contractor who ultimately is awarded the project. Pricing a construction project takes time and costs contractors money. But even worse for the losing contractor is that they might think they have a chance at winning the project, so don’t price other prospective projects, so could be left with no work for their teams.
4. Clients that ask contractors to price construction projects which are pie-in-the-sky or won’t be built any time soon. Pricing projects costs money. Why should contractors be used and abused to provide price estimates for grandiose plans.
5. Contractors that lodge excessive or even ludicrous variation claims to try and make up the losses they’ve incurred on the project due to their mismanagement, or because they under-priced the project. Excessive and spurious claims wastes everyone’s time and money. It costs integrity to submit false and inflated claims and it will negatively impact your reputation.
6. Clients that award a construction project to the contractor with the lowest construction price even though the contractor doesn’t have the resources or know how to complete the project. Unfortunately many clients are only interested in the lowest price. Inevitably the contractor who submitted an unreasonably low price runs into difficulties on the project, possibly submitting numerous spurious variation claims to recoup their losses. The client is sometimes left with an unfinished project, or a project that’s completed late, or one that is of poor quality. Of course all contractors are blamed by the client for being useless and crooked, when it was actually the client’s poor choice that caused the problem.
7. Contractors who price projects knowing they don’t have the resources or knowledge to complete the project. That’s irresponsible and possibly even dishonest. I’ve witnessed many contractors run into problems after winning a construction project which they didn’t have resources for. Inevitably they had to hire new personnel who weren’t suitably qualified and who didn’t fit in with the culture of the company. Resources were stretched and management didn’t have time to manage the project. Sure, we all hire personnel and equipment for our construction projects, but it’s critical that we have some key people available within the company for the project, or that we are sure we can employ the right resources for the project. Contractors who don’t have the required knowledge will certainly run into problems which will cost them and their client money.
8. Poor safety. Poor safety leads to injury, additional costs and even death. There is no excuse for poor safety. It is possible to work safely. Yet frequently I see construction projects which aren’t following good safety practices.
9. Contractors who let you down and contractors that don’t respond. Unfortunately there are contractors that let you down. They deliver work late and of a poor quality and then they don’t respond to complaints and requests to sort out their problems. They don’t reply to telephone calls or emails.
10. Poor quality work. There is no excuse for poor quality construction work, no matter how rushed the project or how low the price. Poor quality work tarnishes reputation and it can even cause injury and death. Often it costs no extra money to do the work properly, but poor-quality construction work usually has to be redone costing extra money and time. We should all be proud of our work.

Conclusion
Regrettably, like all industries, construction has its share of fraudsters and liars. But unfortunately, as often as there are unscrupulous contractors there are also dishonest clients. Contractors need to be wary of the clients they work with and clients needs to be more selective in their choice of contractors.
What are your dislikes in construction?

Who is responsible for obtaining new construction projects in your company? Inevitably, most will answer that the estimator, owner, or some senior manager must find and win work. Yet, the responsibility of procuring new construction projects lies with everyone in the company.
​

Management’s Role in Winning New Projects.
Management must:

1. Ensure that the estimating team has the right resources (including software) to accurately price construction projects.
2. Select suitable construction projects for the company to price, discarding unsuitable projects. It is pointless pricing projects which the company doesn’t have the resources to construct.
3. Talk to prospective clients to ensure that the company has the opportunity to price their next project.
4. Understand the construction marketplace to better select the profit that can be added to the estimator’s price, which will still ensure a winning price.
5. Develop new markets and clients.
6. Check all the bid prices to ensure that they are an accurate assessment of the work, that there aren’t excessive risks for the company, and that the construction schedule is achievable. This review process could include developing alternate construction proposals and methods which could result in a more competitive price.

The Project Manager’s Role.
The project manager plays an important role in securing new construction projects which includes:

1. Ensuring that they deliver their project safely, on time, with minimal fuss and with the right quality. The best source of new work is from:
   1. Returning clients. Indeed many of my projects have been with returning clients. On some projects, we completed up to 5 construction phases (5 different projects), while we became the preferred contractor for other clients. This was a huge advantage as we were often awarded projects even though we didn’t have the lowest price, or better still, the client negotiated the project price only with us, which meant we didn’t have to go through a competitive pricing process. In fact, some of our clients enjoyed working with particular project teams so much that they insisted that we would be given their next construction project only on condition that the same team worked on that project.
   2. Word of mouth. There are simply hundreds of contractors out there. How are clients to determine who should be asked to price their construction project, and who should be awarded the project? Being recommended by a satisfied client helps get a contractor to the bidding table giving an opportunity to submit a price. Then, when clients are trying to differentiate between 2 or more prices and between 2 or more contractors, a glowing recommendation from their friend or colleague, who has worked with your construction company, or even a good recommendation or review from your previous clients, may just tip the project in your favor.
2. Providing constructive feedback to their estimating department. All construction project managers are quick to tell their estimating departments when they’ve made a mistake with the price that has cost the project money. Yet few (indeed possibly none) will tell their estimating department when their price was too fat, usually rather claiming all the kudos for a profitable construction project because of their own project management skills. But, if the estimator is aware that some of the rates or costs they used in their estimates are higher than they should be, they could be in a position to cut these which may mean that more of their future project prices are successful.
3. Informing the estimating department of suppliers and subcontractors who’ve performed well and should be called upon to supply prices for the next project estimates.
4. Interacting and talking to clients, designers, engineers, subcontractors, and suppliers. This interaction would include uncovering leads to potential new construction projects, while also developing good working relationships for possible future projects.
5. Understanding their clients. Knowing a particular client’s needs may help the company win another construction project with the same client if they are able to incorporate ways to satisfy these needs in their price submission.
6. Delivering a project with the efficient use of resources, so that the company has a lower cost base to use when calculating the price of future projects.
7. When assisting with the pricing of construction projects, seeking ways to enhance the bid to ensure its success, while maximizing the profitability of the project.

The Employees’ Role
Every employee has an important role to play in finding and winning projects.

1. Delivering a project safely, on time, with minimal fuss and with good quality is essential to every construction company’s reputation. A good reputation can ensure recurring construction work from clients and it is a good advertisement for potential future clients. A poor reputation could be the death knell for a construction company, with them not winning new construction work even when their price is the lowest.
2. Any employee could hear about possible new construction projects from their friends, relatives, and acquaintances. It’s important that our employees are encouraged to inform management of likely new construction projects and potential new clients so that these leads can be pursued. Indeed some may be dead ends, but, even having a few turn into a new construction project can make a huge difference to the fortunes of your construction company.
3. ...Continue Reading.....

​This article was first published on the ClockShark website. To visit this website and continue reading the article click on the link above.
Please share this post

To read more about the author’s books and find out where you can purchase them visit the pages on this website by clicking the links below:

• '​Successful Construction Project Management: The Practical Guide'
• 'Building a Successful Construction Company: The Practical Guide'
• 'Construction Claims: A Short Guide for Contractors'
• 'Construction Project Management: Tips and Insights'
• ​'Construction Management: From Project Concept to Completion'
• and 'Build and Renovate Your Home With Your Eyes Wide Open'

'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

​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