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Is Overtime Killing Your Construction Project?

9/10/2018

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As I walked past a construction project the other Sunday, I noticed that a number of people were working on the project site. It brought up memories of some of my projects where we sometimes worked long hours and pulled weekend shifts. In fact, we found that on some projects up to 30% of the hours worked were above the normal hours. I know that some of my colleagues routinely had their projects working every Sunday. But, were these additional hours really necessary and worth it?






The Cost of Working Overtime on construction projects.
Working long hours has numerous costs, some of which aren’t always obvious. These include:
  1. The premium of working overtime. Those on wages usually have to be paid a 50% to 100% premium on top of their normal wages. Are these workers 50% to 100% more efficient? Of course, they aren’t. In fact, that working overtime is frequently less productive.
  2. The loss of productivity. None of us can work long hours, day in and day out without a rest. We all get tired and need a break. Our employees also need a break – especially those doing heavy manual work.
  3. Shoddy management. Often, employees working after hours and on weekends aren’t supervised properly since the supervisors aren’t all required to work the same hours, or they spend time in the office drinking coffee. In fact, I knew one project manager who habitually expected most of the supervisory and management team to arrive on a Sunday, then they all went for breakfast at the nearest restaurant while the other employees were expected to continue working.
  4. Payroll inaccuracy. A lack of supervision often means that some employees don’t work the full hours that they say they did, and consequently are paid more than they are due.
  5. Exhaustion leads to errors. Fatigued workers cause accidents.
  6. Not all employees arrive for work on weekends and holidays. When a key employee (such as a crane operator) is absent it could mean that the rest of the team can’t work effectively.
  7. Working in the dark. Working at night can impact productivity and safety unless the work areas are properly illuminated (this includes proper lighting to access the work area and around the offices and lay-down areas).
  8. Staff shortages after hours. When equipment breaks down after hours, mechanics aren’t readily available, which could mean that the item isn’t fixed and the teams are left idle.
  9. Behavioural factors. Workers could be intoxicated on weekends which causes safety, quality, behavioural and productivity issues.
  10. Family strain. Working extended hours and on weekends is detrimental to families, often causing family feuds and even divorce. Some employees can become disgruntled with having to work long hours and they eventually leave the company.
  11. Employee health. Working long hours negatively impacts the health of employees.
Sometimes Overtime is Effective in construction. Even Necessary
Some projects have to work on weekends or at night because that’s the only time there is access to the work areas. Other times, limited overtime work may be beneficial to the project, such as:
  1. When there are too many people working in a small area, then it could pay to have some work done after-hours when the area is less congested.
  2. When the project is behind schedule, completing some specific tasks can help keep the project on schedule. Asking specific teams and key people to work additional time can help complete a critical task.
  3. When deliveries can only get to the project after-hours because of the traffic on the surrounding roads, then workers need to be available to offload the materials.
  4. Sometimes, it may help production if certain equipment is used longer hours, such as cranes to move materials around the project.
  5. Some dangerous tasks could be performed after hours when work areas are clear of people, specifically where cranes have to lift loads over areas where workers are busy during the day.
Unfortunately, some projects require teams to work around the clock and seven days a week. In these cases, it is always good practice to have teams working on different shifts (say 3 shifts of 8 hours each) ensuring that individuals don’t have to work extended hours without a day of rest.
In some cases, a particular task can’t be interrupted, such as when a large volume of concrete is poured. It’s good practice to arrange additional people to come in later in the day to take over from the first team and to always allow individuals in the team to take sufficient rest breaks during the shift.
The Golden Rules for Working Overtime on your construction project
If the project has to work overtime, then it is vital to ensure that:
  1. There is sufficient supervision on the project so that employees work safely and productively.
  2. The work won’t annoy the neighbours and that the work doesn’t break any local regulations.
  3. The client is happy that work happens after hours.
  4. Workers don’t work such long hours that they become fatigued. They should always be allowed sufficient rest and meal breaks.
  5. The additional hours worked are monitored, to verify that the employees have actually been working on the project for all the hours they say they have.
  6. ....Continue Reading....
​This article was first published on the ClockShark website. To visit this website and continue reading the article click on the link above.
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To read more about the author’s books and find out where you can purchase them visit the pages on this website by clicking the links below:
  • '​Successful Construction Project Management: The Practical Guide'
  • 'Building a Successful Construction Company: The Practical Guide'
  • 'Construction Claims: A Short Guide for Contractors'
  • 'Construction Project Management: Tips and Insights'
  • ​'Construction 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
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An introduction to construction variation claims for construction project managers video 9 - What information and by when?

7/10/2018

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​An introduction to construction variation claims for construction project managers.
Video 9 - What information do contractors require and and by when should the information be issued?
Sometimes clients issue construction drawings to contractors, but these drawings are literally worthless. Late and poor information is a leading cause of delays and variation claims on construction projects. Learn more...... 
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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.
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an introduction to construction variation claims video 8 - when you can not claim extension of time

2/10/2018

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An introduction to construction variation claims for construction project managers
video 8 - When you can’t claim for extension of time
Even when a contractor has been delayed they can’t always claim for the delay. ​Learn more...
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​Information in this video is from the author's books: 'Construction Claims: A Short Guide for Contractors' and 'Successful Construction Project Management: The Practical Guide' and 'Building a Successful Construction Company: The Practical Guide'. All available from Amazon in paper or ebook.
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The 10 Biggest Risks Clients and Owners Face On Construction Projects

30/9/2018

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PictureImage courtesy of Stuart Miles at FreeDigitalPhotos.net
Frequently we hear horror stories of projects that have gone wrong, finished late, gone far over budget (sometimes in excess of double the original estimates), poor quality, accidents, lengthy legal battles and projects that don’t do what they were supposed to do. 

​Construction projects face numerous risks. Understanding these risks could help clients avoid, or mitigate the level of risk on their projects. Clients have different risks to the contractor, and each stakeholder in the project faces a different set of risks. Sometimes these risks are the same for a number of stakeholders – so for instance, if the project is slipping against the construction schedule this could negatively impact both the client, subcontractors and the contractor. One would consider that if the contractor loses money on the project this shouldn’t be a risk for the client, yet, if the contractor loses so much money that they become bankrupt before the project is finished then this could have a major impact for the client, who would almost certainly have to engage another contractor, at additional costs, to complete the project, which would also certainly result in a delay to the project. In addition when contractors lose money their subcontractors, employees and suppliers are also at risk.

Unfortunately, many clients fail to recognise, understand, and mitigate construction project risks, which then frequently leads to an unsuccessful project.
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The 10 risks clients need to be aware of and take action to minimise.
  1. The final project cost exceeding the project budget. Not only could this make the project nonviable in the long term, but it could even lead to the client becoming bankrupt. Reasons for projects exceeding the budget include:
    1. The budget was incorrect.
    2. The project had numerous changes and variations.
    3. The project increased in scope.
    4. The contractor was delayed by the client’s team.
    5. The contract documents didn’t clearly allocate responsibilities, or the scope of works wasn’t adequately defined.
    6. Unexpected site conditions are encountered which adds to costs. Changed founding conditions can add greatly to costs.
  2. The project is completed late. The client not only gets their project late which means that they can’t earn revenue from the project, or they incur additional costs to use other facilities in the interim. Delayed projects also inevitably incur additional supervision and management costs. Late projects could also result in damage to reputation. Reasons for late completion include:
    1. The scope of the project changes during execution, creating delays and variation claims.
    2. The contractor receives access and information late.
    3. The contractor doesn’t perform.
    4. The project schedule was unreasonable and unachievable.
    5. Bad weather causes delays.
    6. Encountering unexpected ground conditions which requires additional work.
  3. Adverse weather which can delay the project and damage existing and completed work.
  4. Shortage of resources. This could include equipment, materials, people and contractors. A shortage of resources can cause:
    1. Prices to increase.
    2. Delays to the project.
    3. Poor quality work.
  5. Contractors that don’t perform. This can result in:
    1. Poor quality work.
    2. Projects that are finished late.
    3. Poor safety on the project.
  6. A project that doesn’t perform as required. This could be because of:
    1. An unclear scope of work.
    2. A poor design team.
    3. Quality problems with construction.
    4. The client having unreasonable expectations.
    5. The client cut costs unreasonably, removing essential items required for the project to operate successfully.
  7. Poor public perception of the project. This can lead to bad publicity and even protests, legal action and boycotts. Governments have even been brought down by poorly conceived and managed projects. Neighbours can feud for years because of one project. Projects can be delayed and even stopped by irate members of the public.
  8. Poor safety which can result in:
    1. The project being stopped.
    2. Damage to existing infrastructure.
    3. Bad publicity.
    4. Delays to the project.
  9. Incurring excessive or unnecessary costs for the project, even theft. Not achieving value for money.
  10. A major contractor or supplier becoming bankrupt on the project. This could lead to project delays and additional costs while another contractor is sourced. In addition warranties for workmanship and equipment could be worthless.

Avoiding and minimising risks
  1. Projects that exceed budget can be minimised by:
    1. Ensuring that the budget is accurate. Budgets should continually be assessed and updated through the life of the project to take account of all the known information and changes. Check that the budget includes all of the costs and that these costs are an accurate assessment. Where necessary include suitable contingencies and allowances for unknown costs.
    2. Having the correct scope of work for contractors to price.
    3. Minimising changes and variations during both the design phase and during construction.
    4. Carrying out proper research of the project site conditions, including doing ground investigations before construction begins.
  2. Projects are often finished late because:
    1. The construction schedule isn’t realistic. Ensure that the schedule is realistic by employing experienced project managers.
    2. The project schedule doesn’t take account of the client’s operations, project restrictions and the normal expected weather events.
    3. There are changes and variations during the project. Reduce and eliminate changes by ensuring that the project scope is properly prepared and complete and that the contractor has all the information when they price the project.
    4. Progress isn’t monitored during the course of the project. Slippage isn’t addressed and rectified.
    5. Contractors are selected on the basis of their price alone and not on their experience and their available resources for the project.
    6. The project is managed poorly resulting in delays with granting access and issuing information to the contractor.
    7. Poor planning.
  3. Adverse weather can’t be avoided, but steps can be put in place to limit or mitigate the impacts. This could include:
    1. Designing the project so that work that could be impacted by poor weather is assembled and built under cover, or off site. Even redesigning the project to eliminate activities which could be impacted by the weather, for example using different foundation methods could eliminate the requirement to excavate in the rainy season.
    2. Planning the start of the project so it doesn’t begin in the worst weather.
    3. Allowing adequate time in the construction schedule for the normal expected weather.
  4. When there is lots of construction happening in the country, state or region, then there can be a shortage of resources.
    1. Projects can be rescheduled to start when the level of construction falls, which could even make the resources, and consequently the project cheaper.
    2. The project could be designed to make use of modules which could even be constructed in areas where resources are more available. Alternative materials could be used which are more readily available, or which aren’t so labour intensive to install.
    3. The duration of the construction work could be extended to account for the shortage of resources.
  5. Clients often focus on choosing a contractor based purely on their price. However, the cheapest contractor might not end up providing the cheapest project. It is important to select a contractor that has the required experience and skills to deliver the project safely, to the required quality and on time. Clients should check the contractor’s previous projects and clients. They need to review the contractor’s planning for the project and check that their project resources will be adequate.
  6. ....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
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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'
Find out how Paul Netscher can help you
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Why many government construction projects aren't successful

25/9/2018

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Why are government organisations (national, state, city, town and state run enterprises) often so bad at project delivery?
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A project isn’t just construction, it’s the complete life-cycle, from project conception, through design, planning, construction, completion, including maintenance and operation of the finished facility. At all stages of the process we see examples of spectacular failure, costing money, time and even lives.

How do we define project success?
For most projects success is defined by delivering a project within time and budget. Regrettably many projects fail this test. But, even a project that’s delivered on time and within budget could be a failure. Unfortunately, some projects which are seen as successful by one stakeholder are regarded a failure by another. For instance, a contractor has a successful project, they finished on time and made money, while for the owner the project was over budget and didn’t deliver value for money. A person whose house is overshadowed by a neighbouring ugly apartment building wouldn’t regard the project a success, even if the developer made a fortune building and selling the apartments.
So what defines a successful project?
  1. The project is finished on time.
  2. It’s completed within budget.
  3. The project delivers value for money.
  4. The project is easily maintained and operated, which won’t be excessively expensive.
  5. The construction works is completed safely.
  6. The facility is safe to operate and use.
  7. The environment isn’t unduly harmed – during construction and when the facility is operating.
  8. None of the stakeholders were unjustifiably disadvantaged.
  9. Those involved with the project earned a fair wage, or profit.
  10. The project is the best use of available funds. There are usually limited funds available and it’s impossible to develop and construct every project on the Wishlist. Money needs to be allocated wisely to projects that are the most necessary and which provide the biggest benefits.
  11. The project should provide long term benefits.
  12. The project must be of good quality. This includes aesthetically pleasing.
  13. The facility is functional. It effectively delivers what it’s supposed to deliver.
  14. The project hasn’t resulted in other problems.
When judging projects by these criteria we find many failures. So, that Olympic or Soccer World Cup stadium may have been delivered on time and within budget, and provided good service for a few weeks of the event, but, if it isn’t going to be used afterwards, or there aren’t funds to maintain it, then the stadium isn’t a success. Also, if people lost there lives during the construction process then the project definitely failed those people.
Reasons why many projects conceived and delivered by government organisations are a failure.
There are many reasons for project failure (they don’t meet the above criteria) and these include:
  1. Many politicians (elected officers) are driven by personal gain. This gain could be:
    1. Delivering the greatest number of votes. Unfortunately this often means that areas with a small voting population are ignored. It also means that areas that have a stable voting population – regularly voting for a particular party or individual are ignored, while areas which could swing between parties and individuals have more money thrown in their direction – and I mean literally thrown, without too much thought on how the money will be spent.
    2. Being involved with a prestigious project. Spending money on repairing and maintaining infrastructure is essential – but if you’re a politician it certainly doesn’t get you the same publicity as cutting ribbons when opening a new bridge or legislature office, or unveiling a new statue. Who wants to be filmed opening a new wastewater treatment facility – it’s a necessity, but a stinking business!
    3. Monetary. Regrettably, often politicians accept bribes (donations!) from corrupt contractors, suppliers, land owners and developers. This often results in the wrong project being built in the wrong place, incompetent contractors being selected, or inappropriate equipment and materials being used.
    4. Helping friends and family. With little regard to the people or country.
  2. Often politicians are there for the short term, but projects and facilities will typically outlast their careers and even their lives. In many cases the next generation has to live with their actions, or lack of action. Upgrading roads and infrastructure to farming and mining communities has few immediate visible benefits, but is often essential to the development of the country in the long term.
  3. Some politicians don’t see the bigger picture. Indeed they’re often only focussed on their own needs, position, or the next election. A project typically consists of multiple parts. Building a new hospital could be great, but it’s a failure if there isn’t money left to equip the hospital, or indeed money for the doctors and nurses to operate the hospital. Building new apartments in a particular area may be a great idea, but if the infrastructure (roads, utilities such as water, sewer and electricity) isn’t sufficient to handle the additional people then it’s possibly a bad idea. It’s definitely a poor idea if people don’t want to live in apartments, or there’s an oversupply of apartments. Politicians have a knack for drawing lines on a map, acting on whims, or tossing new ideas into the arena, without adequately thinking through all the consequences of their actions.
  4. Politicians often have a short tenure. Some might see this as a good thing – being able to regularly change politicians. It does mean that we (the voting public) can dump politicians we don’t like, but it often means there’s seldom consistent policy. So, one politician who likes building roads is replaced by others that want railways, while some want conventional energy sources and others focus on renewables. This leaves projects in limbo, possibly after millions of dollars have already been spent.
  5. Sometimes politicians are unduly influenced by those on the fringe, or the noisiest objectors. No politician wants to be visibly and publicly ridiculed or embarrassed, so they’ll often take the action that results in the noisiest celebrations and the quietest protests – even if the noisy celebrations are of their own making and the quiet protests are because people have been cowered into submission.
  6. Many politicians are bad at explaining the benefits and necessity of some projects. Indeed, often necessary and beneficial projects end on the waste tip of abandoned good ideas because the voting public wasn’t properly informed. Is this because politicians are arrogant and they assume the average person doesn’t need to know, or is it because they expect people to automatically follow their lead and then they’re surprised when there are objections?
  7. Usually politicians don’t like people that don’t agree with them. They’re often advised by departments. Sometimes there are good people in the departments. Regrettably politicians like to make changes – getting rid of those who worked for the previous leadership, who often have years of experience. Anyway, who wants to have people working for them who don’t agree with your new ideas and policies – even if that disagreement is founded on a better understanding of the current workings, people, systems and requirements? Unfortunately, some heads of department have learned to play the game, to adapt to new leaders, to blow with the wind and to give politicians what they want – never providing advice that they know won’t be welcome, even if it’s right.
  8. Sometimes politicians make their pet projects fit the available budget and a need. Often projects will clearly exceed their budget, but they are made to fit – costs are ignored or deliberately understated.  When the project costs exceed the budget there’s every chance the politician has moved on to another posting. There’s no accountability and they can always blame their successor, or even a predecessor! Then there are projects that are sold as one thing, yet clearly won’t satisfy that need.
  9. Politicians use other people’s money and their projects impact the lives of others. Need I say more!
  10. Many politicians are driven by ideology, political agendas and personal beliefs, and their projects are often an extension of this thinking, rather than being based on sound research and delivering the best long term benefits to the people, region and country.
  11. Most politicians aren’t project managers or engineers so have little experience in delivering projects on time and within budget, from concept to completion. Consequently they have limited understanding of the processes, risks, costs and requirements of a successful project. They don’t understand the project life-cycle.
  12. Many politicians like easy wins and hate hard decisions and tough choices.
Fortunately there are many successful government projects, and some elected officials who work for the good of the community, take on board the advice of experts and understand the concerns of stakeholders. There are a few that are prepared to serve the people, who put the public ahead of personal ambition.
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Conclusion
The World has many projects that are white elephants, projects that have been ill conceived, poorly planned and badly managed. Millions of dollars are wasted on inappropriate ideas, poor projects and ineptly executed projects. Unfortunately the next generation has to live with the consequences of these projects. Indeed we have to live with them! Whole communities, states and countries are hamstrung by these bad projects and the resulting debts. Politicians must be accountable. It’s time that elected officials looked beyond short term gain, greed and petty politics, rather focusing on the long term requirements of the community and country. Politicians need to take advice from honest project managers and not people and organisations that have vested interests in a particular project or outcome. They need to carefully evaluate all projects to ensure that they are the best use of public money, delivering the greatest long term benefits. They need to consider all implications of their decisions and choices, ensuring they aren’t swayed by their egos, personal agenda, or a vocal minority. They need to understand the fears and objections of all stakeholders, then not just override or ignore them, but adequately explain why these objections aren’t relevant, or adapt the project to lessen its impacts on the stakeholder.

It's time for our politicians, elected officials and those in government (city, county, state or national) to stand up and take pride in their accomplishments, to be accountable for their decisions (or lack of decisions), to build a place, a community and a country that future generations will be proud of. Projects aren’t just random ideas or lines on paper, they aren’t political slogans or one-liners, they impact people and cost money. Projects require rational thought, proper planning, careful design, sound construction and expert delivery – but even more important, the project process doesn’t stop there, the completed facility has to be managed, operated and maintained, ensuring that it continues to deliver benefits safely for many years to come.
​
Why are there so many bad government projects? Why do elected officials frequently embark on ill-conceived projects or make poor decisions?
Do we have to accept bad projects? Will you hold your politicians and elected officials accountable?
A question to politicians and those in administrative power – will your projects be remembered by the next generation for the right reasons? Will your projects be successful?
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​This article is adapted from information in the author’s popular books: 'Successful Construction Project Management: The Practical Guide' and 'Building a Successful Construction Company: The Practical Guide' and 'Construction Project Management: Tips and Insights'
'Construction Claims: A Short Guide for Contractors' is another of Paul's useful books.
Paul has recently published 'Construction Management: From Project Concept to completion'.
Paul's new book: 'Build and Renovate Your Home With Your Eyes Wide Open' is for those with little construction experience who want to build or renovate a house. It's filled with tips and suggestions to help you on your way, ensuring you avoid the pitfalls of home construction projects.
These books are available on Amazon and other online book stores.
Paul publishes articles regularly on LinkedIn and his website. 

Paul writes regular articles for other websites, gives lectures, mentors, and is available for podcasts and interviews.
​
© 2018 This article is not to be reproduced for commercial purposes without written permission from the author.
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An introduction to construction variation claims for project managers video 7. What is access?

23/9/2018

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An introduction to construction variation claims for construction project managers
video 7. What is access?
What access has the client provided to the contractor? Will this access help or hinder the contractor's work?
What should contractor's check when granted access?
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​Information in this video is from the author's books: 'Construction Claims: A Short Guide for Contractors' and 'Successful Construction Project Management: The Practical Guide' and 'Building a Successful Construction Company: The Practical Guide'. All available from Amazon in paper or ebook.
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An introduction to construction variation claims. Video 6 Reasons for extension of time claims

18/9/2018

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An introduction to construction variation claims for construction project managers
Video 6 - Reasons for extension of time claims.
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​Information in this video is from the author's books: 'Construction Claims: A Short Guide for Contractors' and 'Successful Construction Project Management: The Practical Guide' and 'Building a Successful Construction Company: The Practical Guide'. All available from Amazon in paper or ebook.
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How To Avoid The 10 Biggest Risks Facing Contractors

16/9/2018

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PictureImage courtesy of Stuart Miles at FreeDigitalPhotos.net
In a previous post, we considered the 10 biggest construction risks facing contractors. However many of these risks can be avoided. In this post, I suggest ways that contractors can mitigate and avoid these risks.





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  1. Non-payment can be avoided by:
    1. Contractors doing research on their prospective clients before pricing the project. This research could inform the contractor if the client has a history of not paying their contractors, or of disputing invoices and variation claims.
    2. During the execution of the project continually updating the client of the expected final project cost. This includes timeously notifying clients of variation claims.
    3. Always being aware of rumours or stories that could indicate the client may be in financial trouble.
    4. Submitting invoices in a timely manner, ensuring that they are in the correct format and have all the required supporting documentation. Don’t give clients any reason to avoid paying invoices.
    5. Immediately following up late payment with the client. In fact, better still remind the client ahead of when the payment is due that you are expecting payment.
    6. Working with the client to minimise variations to the project. Variations invariably add to the project costs and they could result in the client exceeding their project budget and running out of money.
  2. Avoid losing money on projects by:
    1. Accurately pricing the project.
    2. Minimising waste.
    3. Maximising productivity.
    4. Ensuring that all work is invoiced and that items which are different to what is in the project document are claimed as variations.
    5. Making sure the project is completed on time, or even ahead of time. Any delays not of your making may be claimable as a variation.
    6. Ensuring that the quality of all work and materials is acceptable and meets the specifications.
  3. Improve cash flow on your projects by:
    1. Submitting invoices on time and following up with the client to make sure that the payment will be received on time.
    2. Immediately submitting variation claims when changes are noticed. The variation claims must have all the supporting documentation and back-up. Make every effort to get the client to agree on the claim as soon as possible. Extended legal battles and disputes delays payment which will negatively impact cash flow.
    3. When pricing the project understand the payment terms and conditions. If possible try and get some of these terms and conditions altered to make them less onerous.
    4. Check the project cash flow before submitting your price. If the cash flow will be negative you could consider not pricing the project, or looking at alternatives to improve the cash flow.
  4. Finishing projects on time. To ensure the project is finished on time:
    1. Check that the construction schedule is achievable and is correct, taking into account all restrictions on the project as well as the expected weather conditions.
    2. Don’t price projects where the construction schedule is impossible.
    3. Ensure that the project has the required resources and skills.
    4. The project team must understand the schedule and work to it.
    5. Regularly update progress against the construction schedule. When slippage occurs understand the reasons and immediately implement steps to prevent further slippage and to catch up the lost time.
  5. Steps can be taken to negate some of the impacts of adverse weather on construction. This includes:
    1. Designing the construction schedule so that tasks most impacted by poor weather happen when the weather should be at its best. This includes trying to close up buildings ahead of the onset of poor weather and avoiding executing earthmoving tasks in the rainy season.
    2. Constructing earth berms and drains to prevent the ingress of stormwater into the work areas.
    3. Being storm ready so that incomplete work and material deliveries can be quickly protected and tied down.
    4. Possibly designing and scheduling work so that sections can be built in modules in protected areas or off-site.
    5. Avoid projects that have to be constructed at the worst time of the year.
  6. Safety. It is important that all project employees are committed to working safely and eliminating safety risks. Safety can be improved by:
    1. Ensuring all employees have the required skills.
    2. Keeping the work areas neat and tidy.
    3. All project workers undergoing a proper project induction before starting work on the project so that they understand the project rules and hazards.
  7. Good quality is achieved by:
    1. Having workers with the right skills and training.
    2. Buying materials from reputable suppliers and not basing decisions on price alone.
    3. Putting in place continuous checking to eliminate errors.
    4. Using subcontractors and suppliers who have the resources and skills to deliver the required quality.
    5. Providing the right equipment.
    6. Instilling pride amongst the project team to deliver a quality job.
    7. Never sacrificing quality for speed or price.
  8. Having the right resources for a project includes:
    1. Continuously training so your team has the right skills.
    2. Planning projects so there are sufficient resources with the right skills.
    3. Not pricing projects when you don’t have the right resources and experience and when you’ll have difficulty finding them.
  9. Good project management. ...Continue Reading...
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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.
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
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An introduction to construction variation claims for construction project managers Video 5 - Types of claims

13/9/2018

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An introduction to construction variation claims for construction project managers
Video 5 - Types of claims
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Information in this video is from the author's books: 'Construction Claims: A Short Guide for Contractors' and 'Successful Construction Project Management: The Practical Guide' and 'Building a Successful Construction Company: The Practical Guide'. All available from Amazon in paper or ebook.
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10 Free Construction Company Marketing Ideas To Try

10/9/2018

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When you’re on a tight budget, it’s hard to invest in marketing. That’s exactly why you want ways to get the word out about your construction business that don’t cost a ton. Can you effectively market your construction company without spending a bundle? Are there free strategies that truly work?
The good news is yes. So, wherever your construction business is financially, here are 10 no-cost ideas to help you promote your services to new clients!

  1. Create a plan. Good marketing is all about strategy. And what’s great about strategizing is that it doesn’t cost a dime. So, start with your goal. Do you want to generate new leads? Get more requests for quotes? Book more business for the quarter? Whatever it is, identify a specific, tangible goal, and then brainstorm. Where does your target audience hang out? How do they make decisions? Where can you reach them? The more time you invest in researching this information, the better prepared you’ll be to make your (free) marketing effective. Construction companies have different clients, so what works for one company may not work for your clients. Understand your clients and market place.
  2. Blog regularly. If you’re like most construction businesses, your prospects are online. As such, your website is a major marketing tool. How can you get more people to see it? One great, free way is blogging. You’ll have to invest time to churn out quality content on a regular basis for a blog, but if you do the writing, you won’t have to invest any cash. In exchange for your efforts, blogging can help you improve search engine rankings, traffic, online authority and more. Blogs can be construction tips, or they could be short updates of your projects and important milestones reached. Include photos - but do check to ensure that the photos don't show unsafe acts, an untidy site or poor quality work.
  3. Do something newsworthy. Think about ways you can generate free publicity for your business without a financial investment. Can you provide free construction help to a local event in exchange for promotion? Would it be doable to host a workshop or seminar at your facility on an area of your expertise? Try to make a splash, then reach out to local journalists and media professionals about it. The key to getting coverage is being legitimately newsworthy. Consider when projects reach a special milestone or safety achievement. Of course you shouldn't have them too frequently because this will take away the impact.
  4. Join a local professional organization. Do a little research into business organizations in your area that allow free membership. Join and get networking. Whether it’s the chamber of commerce or a new alliance, you can gain new visibility by participating.
  5. Team with other businesses. Any time you can find other local businesses to partner with, it can be a powerful, effective marketing strategy. Perhaps you specialize in small-scale handyman jobs, but there’s another business that does roofing. By referring your customers to each other, you cross-promote and both reap the benefits — and it doesn’t cost anything.
  6. Get active on social media. Invest the time to be active on social media and it can pay dividends over the long haul. The keys are being consistent, offering real value and finding a way to stand out. What kind of information and resources does your target audience want? What will help them or answer their questions? Make your content less about you and why you’re awesome, and more about your prospects and how you want to help them. Keep providing real value day after day, and people will notice.
  7. Use a referral program. Current customers can be one of your most powerful marketing tools when they tell their friends about your work. Incentivize referrals by offering a reward for bringing in new business. Maybe you provide a free sample product or a bonus service. Perhaps you give the referred customer a discount, as well as a discount to the one who referred him or her. Find a way to make it worth people’s time to promote you, and you get free promotion.
  8. Build an email list. If you aren’t already building an email list, you’re missing a golden opportunity for future marketing. Add an opt-in form on your site that tells prospects why they should sign up. Stay in touch with past clients. No matter how good your relationship was and the last project you executed for them there's no guarantee that they're going to remember your company in a year's time for their next project. So send out a short email, holiday greeting, or company update once a year.
  9. Send a survey. Email your list of past/current customers and prospects a survey, asking for feedback. Doing so not only gives you free market research, but it also reminds your audience of your services.
  10. Hold a contest. Prizes for a contest don’t have to be expensive. You could give away a couple free products or some complimentary services, for example. So, run a contest online that asks people to sign up for your newsletter, visit your site or complete another action that aligns with your goals.
 
While marketing your construction company with no money is a challenge, there’s actually more potential than you may realize. Try the ideas above to start spreading the word about your business! If you stay faithful to the process, you should start reaping results in no time.
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Author bio: Shanna Mallon is a senior copywriter for Straight North, a top HVAC SEO firm in Chicago that also specializes in web development and other online marketing services. Shanna has been writing professionally online since 2007.

Title image courtesy of Shutterstock.
​
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An introduction to construction variation claims for construction project managers Video 4 - Reasons claims are rejected

9/9/2018

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An introduction to construction variation claims for construction project managers
Video 4 - Reasons variation claims are rejected.
Ensure your variation claims aren't rejected.
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​Information in this video is from the author's books: 'Construction Claims: A Short Guide for Contractors' and 'Successful Construction Project Management: The Practical Guide' and 'Building a Successful Construction Company: The Practical Guide'. All available from Amazon in paper or ebook.
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An introduction to construction variation claims for project managers - Video 3 – why construction project managers should be involved with variation claims

4/9/2018

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An introduction to construction variation claims for project managers
Video 3 – why it’s important for construction project managers to be involved with formulating variation claims
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​Information in this video is from the author's books: 'Construction Claims: A Short Guide for Contractors' and 'Successful Construction Project Management: The Practical Guide' and 'Building a Successful Construction Company: The Practical Guide'. All available from Amazon in paper or ebook.
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The 10 Biggest Risks Facing Construction Contractors

3/9/2018

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PictureImage courtesy of David Castillo Dominici at FreeDigitalPhotos.net
Projects have many different types of risks. In fact, all projects have some risk for contractors. But, understanding the risks could help you avoid, or reduce the amount of risk. Clients may have different risks to the contractor, and each stakeholder in the project faces different risks. Sometimes these risks are the same for a number of stakeholders – so for instance, if the project is slipping against the construction schedule this could negatively impact both the client and the contractor.

Unfortunately, many contractors fail to understand the project risks, or they choose to leap into a project despite the risks. Who would want to start building a bridge across a flood-prone river at the start of the rainy season, or work for a client that’s known to fight lengthy legal battles with their contractors? Indeed, contractors are often a very optimistic lot, always expecting the project to turn out well, even when it’s fraught with risks and probably destined to failure from the start. Then when the proverbial hits the fan, they console themselves by blaming everyone except themselves.

In this article, we will look at the biggest risks that contractors face and how to minimise or avoid them.

The 10 risks contractors should avoid or minimise:
  1. Clients that don’t pay. Frequently contractors aren’t paid for work that they’ve completed –  who wants to work for free? This often causes contractors to become bankrupt. Unfortunately, this also usually leaves shareholders, employees, suppliers, and subcontractors out of pocket. Of course, if the contractor hasn’t finished the project then the client could have an incomplete project. Reasons for non-payment by clients could include:
    • The client is dishonest and doesn’t pay for work.
    • The client has run out of money or even become bankrupt, so can’t pay.
    • The project value has exceeded the client’s budget.
    • The client disputes the contractor’s invoices.
  2. Projects that lose money. This could cause the contractor to become financially stressed, impacting cash flow and resulting in late payments to subcontractors and suppliers. This negatively impacts the project, and in the worst case results in the contractor becoming bankrupt. Projects lose money because:
    1. They priced the project badly, there were errors and omissions in the contractor’s price, or they failed to understand the full project scope.
    2. Poor project management which leads to projects wasting money.
    3. Projects being completed late which results in additional costs.
    4. The contractor failing to claim for work that they’ve done. This includes not submitting variation claims that they are entitled to.
    5. Poor quality work which has to be redone at additional cost.
  3. Negative cash flow. Negative cash flow is the leading cause of contractors becoming bankrupt. Essentially the contractor doesn’t have money to pay their bills. Even profitable projects can be cash negative for large parts of the project. Causes of negative cash flow include:
    1. Clients paying the contractor late.
    2. Contractors failing to invoice for completed work.
    3. The contract payment terms being such that the contractor receives payment several months after they’ve incurred the costs.
    4. The project is completed late resulting in delays in releasing retainage money.
    5. Numerous variation claims which take time to settle and agree, or which face lengthy disputes with the client.
  4. Finishing projects late. Projects that are finished late tie up the contractor’s resources, inevitably negatively impacting other tasks and projects. They cost more in management and supervision time as well as incurring additional costs for project insurance, project offices, security, equipment, etc. Finishing a project late is bad for reputation. It could even lead to the imposition of penalties by the client. Reasons that projects are finished late include:
    1. The construction schedule was incorrect, or it was badly prepared.
    2. The project team doesn’t understand or follow the construction schedule.
    3. The project is under-resourced.
    4. The client delays the project.
    5. Adverse weather events.
    6. Poor project management.
    7. Poor quality work which has to be redone.
  5. Adverse weather. Adverse weather can delay the project. Invariably when adverse weather strikes the contractor incurs additional costs which could include; people and equipment standing and they still have to be paid, pumping of flooded areas, etc. Adverse weather can also damage completed work which has to be redone at additional cost and time. Adverse weather could include:
    1. Extreme heat or cold which slows productivity.
    2. Strong winds which prevent some work, like lifting with cranes. Wind could also damage completed work.
    3. The rain which stops work, floods work areas and damages partly completed work.
    4. Adverse weather could also disrupt the supply of materials to the project site, or impact offsite manufacturing facilities.
  6. Safety. Poor safety harms reputation, it could lead to the project being shut down by the authorities and even monetary fines. Poor safety can result in poor worker morale. Accidents take management time to sort out and investigate. Accidents could result in key workers being injured, impacting the project progress and productivity of the rest of the team. Accidents lead to increased insurance premiums. Some clients will avoid working with contractors that have a poor safety record.
  7. Poor quality. Poor quality costs money and time to rectify. It harms reputation. It keeps people back to fix, thus preventing them from moving onto other tasks and projects.
  8. ....Continue Reading....
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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.
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
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An introduction to construction variation claims for construction project managers - part 2 - Why contractors don’t always claim their additional costs

30/8/2018

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​An introduction to construction variation claims for construction project managers 
Video 2 - Why contractors don’t always claim their additional costs or extension of time they're entitled to claim
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Information in this video is from the author's books: 'Construction Claims: A Short Guide for Contractors' and 'Successful Construction Project Management: The Practical Guide' and 'Building a Successful Construction Company: The Practical Guide'. All available from Amazon in paper or ebook.
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An introduction to construction variation claims for construction project managers - part 1 - why you should submit claims

28/8/2018

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Video 1 - Why it's important that contractors lodge variation claims when they have incurred additional costs or been delayed for reasons beyond their control.
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Information in this video is from the author's books: 'Construction Claims: A Short Guide for Contractors' and 'Successful Construction Project Management: The Practical Guide' and 'Building a Successful Construction Company: The Practical Guide'. All available from Amazon in paper or ebook. 
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Have You Ever Started A Construction Project That Looked So Good, Only To Find It Was A Rotten Project?

26/8/2018

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

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

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

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

21/8/2018

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

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

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

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

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

​Get your book today. Click on any of the links below to preview your copy.
​Amazon Canada, Amazon Australia, Amazon Germany, Amazon France, Amazon Spain, Amazon Italy, Amazon India
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The 10 P’s of successful construction project management

14/8/2018

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

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

So how can we improve construction project delivery?

​
Planning – client
Frequently the client and their team are to blame when construction projects go wrong because of their poor planning. Proper client side planning includes ensuring that:
  1. The scope of works is complete.
  2. The design is good – it delivers on the design brief and scope of works, it is constructible and practical, providing a practical and cost effective solution to satisfy all stakeholders.
  3. Contractors are provided all the necessary information and documentation to price the project.
  4. Contract documentation is complete, sufficient and not ambiguous or contradictory. The rights and obligations of all parties are clearly set out.
  5. The right contractors are selected and the selection isn’t based on price alone.
  6. All permits and permissions are in place.
  7. Site investigations and preparations are thoroughly done.
  8. The budget has been calculated correctly, it’s been checked and it’s sufficient.
  9. They understand the project risks.
  10. They have realistic expectations for the project.
Planning – contractor
Good planning by the contractor includes:
  1. Understanding the project requirements.
  2. Selecting appropriate construction methods.
  3. Ensuring there are sufficient resources for the project, and that these resources have the required skills.
  4. Preparing a proper project schedule. This schedule shouldn’t be squeezed to fit the client’s time frame if it’s not possible and is unrealistic. The schedule must be resourced properly, the task links must be correct, the schedule must allow for all of the project restraints including the expected weather conditions, and there must be sufficient time allowed for finishing, snagging and commissioning the project.
  5. Understanding the contract document, including their rights and obligations. It’s too late to start reading the contract document halfway through the project when a problem arises!
  6. Ordering the correct materials timeously.
  7. Implementing proper safety management systems at the start of the project.
  8. Implementing adequate quality systems and controls before starting work.
  9. Ensuring that all permits and permissions are in place.
  10. Checking that all insurances are in place.​
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​Preparation – client 
The client’s proper preparations for the construction work includes:
  1. Ensuring everything is ready for the contractor, including, access to work areas, construction information and project facilities.
  2. Checking that all project permits are in place.
  3. Checking that all finance is in place and that their cash flow will be sufficient for the duration of the project.
  4. Ensuring they’ve fulfilled all their contractual obligations, including supplying utilities, services and facilities as required for construction.
  5. Ensuring that the contractor’s team understands the rules and regulations governing the project site and that all hazards have been made known and are understood.
  6. Setting up proper communication channels between all parties.
  7. Ensuring that the client’s team understands their responsibilities and limits of authority for the project.
  8. Checking that materials and equipment supplied by the client will be available when it’s required.
  9. Checking the contractor’s construction schedule to ensure that it complies with the project requirements and that they can deliver access and information in accordance with the schedule.
  10. Ensuring that there are no gaps in the project, or outstanding tasks.
Preparation – contractor 
The contractor’s proper preparations for construction work include:
  1. Having the right resources in sufficient quantities available when they’re required on the project.
  2. Ensuring that construction materials have been ordered correctly. Following up to ensure materials will be delivered on time in accordance with the construction schedule.
  3. Appointing the right subcontractors (not necessarily the cheapest) using the appropriate contract documentation.
  4. Communicating the construction schedule to those doing the work.
  5. Communicating the project rules, requirements and expectations to their workers. This includes safety and quality.
  6. Communicating the chosen construction methods to their team.
  7. Checking that the client has provided access and information for the construction work in accordance with the contract, and that the client has fulfilled their contractual obligations.
  8. Ensuring all safety measures are in place for the construction work and that there are proper controls to manage hazards.
  9. Ensuring their team understands their roles, responsibilities and limits of authority on the project.
  10. Putting in place proper document control systems – where documents can be easily distributed and stored, where they can be readily accessed and are protected.
Proactive Problem Prevention
Proactive problem prevention includes:
  1. Ensuring that reporting systems are in place on the project to detect problems early.
  2. Regularly review reporting systems (schedule, quality, safety, financial, budget, claims, etc), ensuring that the information in the system is correct and that concerns and problems highlighted in the reports are acted on.
  3. Assessing and understanding the project risks. Implement mitigation measures to prevent risk events occurring and to lessen the impacts if the risk event occurs. Risks should be continually re-evaluated during the life of the project.
  4. When problems are detected the true causes of the problem should be uncovered. Often the symptoms are addressed and not the underlying cause, which leaves the problem to fester and grow.
  5. Focus on problem solutions, rather than excuses or looking for blame.
  6. Not ignoring problems until it’s too late. Remember where there’s smoke there’s usually a fire. Problems on construction projects seldom resolve themselves and frequently they only get worse. Early intervention is essential.
  7. Communicate regularly with the project team. Encourage the project team to highlight potential problems. Communicate concerns and solutions to the team, ensuring that the solutions are implemented promptly and effectively.
  8. Regularly checking design and construction work.
  9. Continually planning ahead to ensure that everything will be in place for the upcoming activities.
  10. Actively managing the construction project.
Conclusion
Your construction project can be a success. Plan, prepare and be vigilant to foresee, prevent and solve problems. As I always say – it’s better to be a fire prevention officer than a firefighter, because it’s easier to prevent a fire than it is to extinguish a raging inferno which has already caused damage.
Remember the 10 P’s to ensure your construction project is successful – Proper Planning, Preparation and Proactive Problem Preclusion (Prevention) Prevents Poor Project Performance. 

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

Paul writes regular articles for other websites, gives lectures, mentors, and is available for podcasts and interviews.
​
© 2018 This article is not to be reproduced for commercial purposes without written permission from the author.
4 Comments

World Architecture Festival 2018 shortlist

13/8/2018

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​https://www.bbc.com/news/in-pictures-45113083
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How Do You Deal With Customer Complaints? It will impact your construction company if it's done poorly!

8/8/2018

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

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

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

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

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

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

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

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

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

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

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

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

Sometimes the problem may be due to a design fault. If the designers are appointed by the client then point out why the problem isn’t yours, but offer advice on what steps the client could take to rectify the problem where possible.
​
Always try and be understanding. Clients have usually paid lots of money and they expect to receive a quality product and value for their money.
Conclusion

....Continue Reading.....

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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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'Successful Construction Project Management: The Practical Guide'
'Building a Successful Construction Company: The Practical Guide'
'Construction Claims: A Short Guide for Contractors'
'Construction Project Management: Tips and Insights'
​'Construction Management: From Project Concept to Completion'
'Construction Book reviews'
To read more about the author visit the page 'Paul Netscher'
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How To Avoid Claims On Your Construction Projects

31/7/2018

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Claims are an inevitable process on most construction projects – there will be changes and delays. Yet some projects seem to have multiple claims and delays. A recent study by KPMG found more than 70% of the respondents reported that their projects increased by more than 10%, and 75% experienced delays of more than 10% on their timeline.

But it isn’t just clients who receive delay and cost claims from their contractors, but also contractors who receive claims from their subcontractors.

Unfortunately many projects end in lengthy, acrimonious, legal disputes between owners and managing contractors, and between contractors and their subcontractors. Frequently there are no winners in these situations – except of course the lawyers.

The outcome of these variation claims is the inevitable increase in costs and delays in the project completion. But there are other impacts which include:
  • The management time taken to put together and argue the variation claims. Time which could be better spent elsewhere on the project.
  • Sometimes legal costs to fight the claims.
  • Frequently the breakdown of the relationship between the contractor and their client, or between the contractor and subcontractor.
  • The adverse impact on reputation.
  • The negative impact on cash flows.
  • The possibility that there won’t be money to pay the claims.
The obvious solution is to avoid the reasons for variation claims in the first place. When variation claims do arise these should be dealt with speedily and in a spirit of goodwill between the parties.
​
How to avoid variation claims on construction projects
  1. Have a sound contract document which doesn’t contain ambiguities, contradictions or loopholes. This document must clearly detail the duties, responsibilities, and obligations of the contracting parties.
  2. Adjudicate the prices/quotations received to ensure that the contractor has priced all the work and hasn’t included any clauses which aren’t acceptable. Check that the contractor is capable of completing the work, that they understand the project and have the necessary resources. The wrong contractor or one that has submitted a price that’s too low will submit variation claims in an attempt to recoup their losses.
  3. Ensure that the contractor or subcontractor pricing the work is provided pricing documentation that has a clear scope of work and that includes all the contract terms and conditions which will be included in the final contract documents.
  4. Provide as much information as possible to the contractor before they submit their price. Remember any new information or changes after the contract is agreed may provide a reason for a variation claim.
  5. Ensure that there is an agreed construction schedule with clear milestone dates.
  6. Know when the contractor, or subcontractor, requires access and information, and ensure these are provided before the required date.
  7. Monitor progress against the construction schedule and ensure that follow-on contractors won’t be delayed by the previous contractor.
  8. Make sure that changes are limited.
  9. Ensure all instructions of a contractual nature are in writing. Verbal instructions inevitably lead to misunderstandings and claims.
  10. Understand the contract document, knowing what your obligations are in terms of the contract. Make sure that you and your team fulfil these obligations.
  11. Foster a culture of open and honest communication. The parties should highlight problems, or potential problems, as soon as they are noticed. Solutions should be sought to mitigate the problem. Early intervention can often mitigate the variation claim.
  12. Clients need to be aware of the consequences of their actions, or lack of action, on the project. Even small decisions can have ripple effects across the project causing a bigger problem elsewhere.
Dealing with claims
  1. Variation claims need to be dealt with promptly. Variation claims that aren’t promptly dealt with can cause resentment to the contractor, even impacting their cash flow and their ability to deliver the project. Dealing with claims immediately when they arise could provide the opportunity to mitigate some of the costs and delays, and avoid other similar variation claims in the future.
  2. Ensure that you understand the reasons for the claim and the logic behind the time and cost calculations. Unfortunately many variation claims are wrongfully rejected because the client failed to understand the claim. If necessary ask for further reasons and backup.
  3. Claim meetings can be useful to provide understanding to the claim, and they can be more productive than sending letters and emails backwards and forwards. They can short-cut the whole claims process.
  4. ....Continue Reading.......
​This article was first published on the ClockShark website. To visit this website and continue reading the article click on the link above.
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To read more about the author’s books and find out where you can purchase them visit the pages on this website by clicking the links below:
'Successful Construction Project Management: The Practical Guide'
'Building a Successful Construction Company: The Practical Guide'
'Construction Claims: A Short Guide for Contractors'
'Construction Project Management: Tips and Insights'
​'Construction Management: From Project Concept to Completion'
'Construction Book reviews'
To read more about the author visit the page 'Paul Netscher'
Want to contact Paul Netscher please enter your details on 'Contacts'
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Become Great at Hiring Equipment for Your Construction Project

12/7/2018

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Most construction projects hire some, or all, of their construction equipment. These items could be portable electric tools, through to monster bulldozers and excavators. Sometimes the item is only required for a couple of days (even a few hours), while other equipment is required for the duration of the project. On large earthmoving projects hired equipment could make up some 40% of the project costs, so even small savings can make a difference to the project’s profits.

What to check for when hired equipment arrives on your project
The task of receiving equipment deliveries is often left to a person who has not been told what to look for. Things to check when hired equipment arrives on the project include:
  • That the item is actually for the project (sounds very basic, but it wouldn’t be the first time something is delivered to the incorrect project).
  • That the item is what was ordered – sometimes suppliers deliver smaller, or bigger, machines, and on occasion even the wrong item. (Bigger items usually use more fuel and they might not be suited for the task. Obviously, small items may be ineffective, and you’ll probably be paying the price of the original item that was ordered.)
  • Damage to the item, such as; bumps, scratches, cracked windows and damaged lights. These damages should be noted on the delivery note, put in writing to the supplier, and if possible photographs should be submitted to the supplier, as well as a set kept on the project. Suppliers will charge for damages they find on the machine when it’s returned, so it’s important to record existing damages so the project isn’t charged for pre-existing damage when the item is returned.
  • The condition of wearing parts and cutting edges, since the project is normally charged for their replacement or additional wear.
  • The condition of the tires, because those that are damaged or in a poor condition often result in deflated tires, which not only cost time to repair but the project could be liable for new tires when the item is returned to the supplier.
  • Ensuring the item is in a roadworthy and in an operational condition, that there aren’t oil leaks. It has to be able to do what it’s supposed to do.
  • That all the parts and fittings are included with the delivery, and that wheeled machines come with at least one spare tire.
  • The fuel level of the machine which should be recorded, since suppliers normally expect their machines to be returned full of fuel, and will charge for additional fuel they have to put in (but of course the converse doesn’t happen, and often machines arrive with minimal fuel. When large items take several hundred litres of fuel, this could result in a significant additional cost).
  • When the item is being charged at a mileage rate, the odometer reading should be recorded and compared to what’s on the delivery document.
  • When the item is being charged for the hours or days it’s on the project, then it could be important to record the time the machine arrived on the project. For example, if the item arrived in the late afternoon, the project shouldn’t be charged for that day.
Most importantly the project member who requested the item should be notified the item has arrived on the project. Often machines arrive and then aren’t used for several hours, or days because the person who requested the machine doesn’t know it’s available.
​
Where the item is supplied with an operator, it’s important to check that the operator has all the correct licenses to operate the equipment. The operator should attend a project-specific introduction or induction so that they are aware of the rules and the hazards of the project before they start working.

Understanding the conditions in the hire agreement
Often items of equipment are hired, but the project team has not read the terms of the hire agreement, which can be fairly stringent. The terms should include:
  • The hire rate for the machine, and whether it’s charged hourly, daily or monthly.
  • The minimum hours, or minimum days, the item will be invoiced for.
  • Whether a surcharge applies if the machine is worked excessive hours or travels more kilometres.
  • What the hire charges will be if the machine can’t work due to rain, force-majeure, or non-work days on the project.
  • Which party is responsible for insurance – more importantly is the machine insured?
  • Who is responsible for repairs and maintenance (these costs can sometimes be large, adding significantly to the hire costs).
  • Who supplies fuel, oil and cutting edges, and for cranes the slings.
It may be possible to negotiate some of these terms when the order is placed, which could result in considerable savings later.

​....Continue Reading......
This article was first published on the ClockShark website. To visit this website and continue reading the article click on the link above.
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To read more about the author’s books and find out where you can purchase them visit the pages on this website by clicking the links below:
'Successful Construction Project Management: The Practical Guide'
'Building a Successful Construction Company: The Practical Guide'
'Construction Claims: A Short Guide for Contractors'
'Construction Project Management: Tips and Insights'
​'Construction Management: From Project Concept to Completion'
'Construction Book reviews'
To read more about the author visit the page 'Paul Netscher'
Want to contact Paul Netscher please enter your details on 'Contacts'
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Don’t Let Disorder In Your Construction Project

6/7/2018

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I’m sure every one of you are putting off tidying some part of your house. Whether it’s the garage, your clothes closet, your work room, or the garden shed. I’m sure there’s some part of the house where you take one look, then walk away, leaving it for another day. In the meantime the thought of all that mess hangs over you, and you’ve always got it nagging at the back of your mind. Then, when you finally get the courage and jump in to sort the junk, it’s often easier than you thought it would be. Sure, there are always some tough decisions, like throwing out those items you remember fondly wearing, but you haven’t worn in ages because they probably don’t fit anymore. You’ll probably find some junk that you’ve been hoarding for years, convinced that it will be some use one day. Some of you who are savvy may even turn some of that unwanted junk into cash by offering it on eBay or Craigslist. Hauling some of the better clothes to the local charity store can be immensely satisfying – cleaning out a room in your house and donating to a good cause is really good for your soul.

The important thing is that as long as the problem remains unsolved,  it’s like this dark cloud hanging over us every day. Some of you probably have rooms, cupboards or drawers in your house that you are too scared to even open. But, once the mess is tidied and rid of junk, it’s a tremendous relief and suddenly you are free to open that room, cupboard or drawer. The amazing thing is that once you set your mind to the task of clearing, and you are committed to that task, it usually gets done much quicker than you imagined. Of course, there are some who will make half-hearted attempts to clear the clutter, then give up before long – often leaving more of a mess than before. Those half-hearted attempts waste time and energy, but more importantly they make the problem seem even bigger than it actually is.

So it is with some construction projects – they’re in a mess, and often sinking deeper. Yet, some of us avoid getting stuck in and sorting the project out. We kind of skirt the issues, hoping that miraculously the project is going to sort itself out. Well guess what, just like that junk pile at home isn’t going to sort itself out on its own, your project’s not going to sort itself out without intervention and commitment from you.
Indeed, like some of you who avoid opening some rooms, cupboards or drawers in your home, I’ve known some managers that have avoided visiting their projects that were in trouble because they couldn’t face the problems. Of course this solves nothing.

Certainly, sometimes some projects have multiple problems, when things start going wrong it often snowballs. Where to start? Well, like sorting that room piled with junk you have to start somewhere. More importantly you have to be committed to sorting things out, that means spending time on the project to understand the underlying causes of the problems. You can’t think that a half hour here and there will make much of an impression. Nor should you be tempted to chuck everything into the trash and start from scratch again. You might be throwing useful stuff into the trash. Some bosses fly in yelling at everyone and firing anyone they think is the problem, and often they leave the project in more of a mess than before.

Like that room that’s a mess, start sorting from one end. Trash what is junk. Rearrange what should be kept. Put things in an orderly place. Don’t get distracted. Don’t run away when things get too hard.

Of course, hard decisions sometimes have to be made. Don’t shy away from making them. If someone isn’t performing they need to shape-up or ship-out. But, some people may be better deployed elsewhere, they may be more suited on a different project. Of course, don’t just pass on poor people to another project. It’s kind of like sending your broken shoes to the charity shop, simply passing your problem to someone else who ultimately has to trash the item. Rather look to passing the person on to somewhere they could be better suited, kind of like passing on that jacket that’s perfectly good but doesn’t fit you anymore, to the local charity shop.
Sometimes you have to spend money to fix that problem. Like when you are tidying that room at home you may have to purchase new shelving and racks, maybe even re-configuring your cupboard completely so that everything is easily accessible. So too, when sorting out our projects we sometimes have to bring in additional resources to help out.

Of course, it is always easy to play the blame game. “It’s not my mess”, “It’s a difficult client” and the favorite, “it’s the estimator’s fault”. Well blaming someone doesn’t solve the problem. Deal with the problem, sort it out. Rather apply your mind and energy to solving the problem than wasting time and energy blaming others.
It’s just as easy to find excuses for not sorting out the mess. “I don’t have the time”, is an all too familiar excuse. Or, there’s always the delay tactic, “I’ll have more time next week”. Well, next week will come and go and you still won’t have the time, and the mess will have gotten worse. Make the time now to sort out the problems and mess.

The important thing is don’t wait until your project is in a total mess before you start sorting it out. When a problem arises, find the reason, fix the problem as well as the underlying cause so a similar problem doesn’t occur. Again, kind of like that room at home, maybe the reason things are on the floor is that there’s insufficient storage. So create more storage, then pick the stuff up and pack it neatly.

Better yet, don’t let you project get into a mess in the first place. ....Continue Reading....
This article was first published on the ClockShark website. To visit this website and continue reading the article click on the link above.
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To read more about the author’s books and find out where you can purchase them visit the pages on this website by clicking the links below:
'Successful Construction Project Management: The Practical Guide'
'Building a Successful Construction Company: The Practical Guide'
'Construction Claims: A Short Guide for Contractors'
'Construction Project Management: Tips and Insights'
​'Construction Management: From Project Concept to Completion'
'Construction Book reviews'
To read more about the author visit the page 'Paul Netscher'
Want to contact Paul Netscher please enter your details on 'Contacts'
Find out how Paul Netscher can help you

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What qualities does a good construction project manager require?

28/6/2018

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I often see arguments on LinkedIn and other blog forums as to whether the best construction project managers should have a tertiary qualification or whether they should have worked themselves through the ranks in the industry. Now personally I believe that a relevant tertiary education adds immense value, but I also know that experience is essential. Having said this though, it’s vital that it is the right experience, gained with suitable mentors that teach people the correct way of doing things, get the basics right and inculcate good habits. Unfortunately sometimes young construction project managers are taught the wrong way of doing things which they then carry into their career as managers. Sometimes these bad habits are then even passed onto the next generation again. Now this is probably a topic on its own which can consume much debate.

However, because a construction project manager has learned, both through tertiary education as well as by experience, the basics of construction management, as well as the principles of construction, does this make them a good construction project manager? I would argue that there are certain qualities that successful construction project managers require. The question is can these qualities be learned or acquired? Maybe they are learned in our early education?  Perhaps these are qualities we inherit?

10 Qualities of successful construction managers
What turns an ordinary construction project manager into a great construction manager? I believe the following qualities are important:
  1. Conscientious – over the years as a project manager I worked countless hours of overtime, even though I was only paid a fixed monthly salary. We often joked that if we were paid all the hours of overtime we would have been very rich. Many nights I got home late with the family already in bed. These extra hours were often not planned, but were a result of things going wrong on the project – cranes that broke down, concrete that didn’t arrive as ordered, or simply a job that had to get finished. Now I’m certainly not advocating that you should regularly work late - in fact regularly working late may be a sign that you’re disorganised. Rather it’s about getting the job done when you have to. It’s about caring about the project and your team. It’s also about being proud of the quality of your work.
  2. Hard working – construction is hard work. There never seems to be enough time. Projects are fast track. Clients are demanding. Paperwork seems endless. We always seem short staffed. Everyday there’s a new problem. If you’re going to do your job properly you have to be prepared to work hard.
  3. Observant – it never ceases to amaze me how some construction managers can walk past something on their project that’s obviously wrong and not notice it. Quality problems go unnoticed, unsafe acts are allowed to continue and poor productivity (including people and equipment standing idle) isn’t commented on. A good project manager will immediately notice when things aren’t right, when things start going wrong.
  4. Decisive – construction managers have to make decisions on a daily basis. These decisions can sometimes have a dramatic impact on the outcomes of the project. Sometimes not making a decision, or delaying the decision, could have more of an impact than making the wrong decision. Construction managers have to carefully and quickly weigh up the question and the supporting information, then make the best decision understanding the consequences of their decision. Sometimes you have to make hard choices which you can’t shy away from. Undoubtably, sometimes you will make the wrong choice – learn from the experience.
  5. Logical – projects have to be built in a logical manner, in the correct sequence of activities. It’s essential to plan the project properly at the start, choosing the most appropriate construction methods and understanding how each activity impacts the other activities. Problems frequently occur in construction and they’re often only solved by logically working through the problem to understand the cause and the best solution to solve it.
  6. Resilient – things will go wrong on a project. I’ve worked with difficult and objectionable clients and had projects that no matter how hard we worked we were destined to lose money and finish late. Yet, no matter how bad things are the project has to be completed. There’s nowhere to hide. Get on with the project and don’t let your team see, or have to face, your frustrations. Despondency spreads easily and saps morale, which eats productivity on the project, often exacerbating the situation. Some clients may become abusive, even blaming you for problems or claims they’re responsible for. You can’t make it personal – get on and finish the project.
  7. Able to work with people – construction is a team effort and involves working with people from diverse cultural, educational and economic backgrounds. Construction managers will work with difficult people, they will be giving direction to some who are older and have been in construction longer, and they will have to manage these situations to give the best result for the project. Being able to work with people also means understanding them.
  8. Willing to learn – you’re never too old to learn something new in construction. Learn from your mistakes, learn from those you’re working with, even learn from other contractors.
  9. Able to communicate – managing projects is a people business. You have to be able to communicate verbally and in writing. Your communication must be clear and understandable.
  10. Adaptable – each project is different. You work with different clients, a different team, new suppliers and new subcontractors. Every day is different, with varying weather and problems. Your plans will be disrupted. You have to be prepared to adapt to the changed circumstances.
Conclusion
Even construction project managers that have the right training and experience can be poor project managers if they don’t have the above qualities.

What do you think makes a great construction project manager?
What other qualities do you think a good construction project manager should have?
Can these qualities be learned?
​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'.
These books are available on Amazon and other online book stores.
Paul publishes articles regularly on LinkedIn and his website. 

Paul writes regular articles for other websites, gives lectures, mentors, and is available for podcasts and interviews.
​
© 2018 This article is not to be reproduced for commercial purposes without written permission from the author.
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Why Safety Is Important On Your Construction Project

22/6/2018

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How safe is your construction project?

Have you had a worker die on your project? Have you visited a seriously injured worker in the hospital? Maybe you’ve been injured yourself working in construction? What does it feel like? How has it impacted your life? How has it impacted your project?

How safe is your project? Is all of the safety documentation in place? Have all personnel the correct skills and knowledge? Is everyone safety conscious, or is everyone simply following the rules blindly?

The impacts of poor safety

Some of us have had the misfortune of having serious accidents on our construction projects. It’s not pretty – and I’m not talking about the blood and mess. It’s the after effects, the disruption, the scars, and loss left behind.

I was a project director of a construction project in central Africa. While visiting the project, a scaffold that concreters were working on collapsed, resulting in a worker falling onto the broken timbers. A piece of wood penetrated the upper part of his inner thigh, which bled profusely. Fortunately, the client had a full-time paramedic on the project that provided first aid to the injured worker, before transferring him to the hospital an hour away.

There was lots of blood and I was concerned the worker would die. Because we were working in a foreign country, I was also worried about what could happen to us. I had visions of the local police arriving and throwing us into prison. It was a scary thought.

Luckily, there was a happy ending. The injury wasn’t as severe as it appeared, and the worker returned to work the next day. We were fortunate since I’m sure if the piece of wood had pierced a major artery, which was only centimetres away, the outcome would have been very different.

This accident could have happened in any country, and if the worker had died there was the possibility of the project manager and I both being jailed if found responsible for the death. In America, prisons may be slightly better than elsewhere, and the justice system may allow for a fair trial, however, the consequences of being found responsible for the death of a worker, or member of the public, is still possibly prison time and certainly a heavy monetary fine. Unfortunately, very few project managers and construction company owners understand this, and it’s probably the reason many don’t take safety as seriously as they should.

But let’s put aside the direct consequences to you for a minute, and consider some of the other consequences of an accident on a project. What about the workers themselves? What about their families? Workers have an expectation, and a right, to return home from your project in the same health as they started. Families expect to see their loved ones, and bread-winners, return from work at the end of the day, and you have the duty of care to ensure this happens.

I always hear the excuse that safety costs money, that it’s a waste of time and that it slows construction work. Well if you really want to know about additional costs, time wasting and delays to your project, then let there be a serious accident.

So, let’s look at the costs of poor safety.
  1. Poor safety results in accidents which:
    1. Can damage equipment, which costs money to repair, and often impacts progress when the item isn’t available because it’s damaged.
    2. Can damage finished work, which costs money to repair and often takes resources away from other work. It often results in delays.
    3. Take management time. The injured must be taken to the hospital and accident reports and investigations must be completed.
    4. Can result in the injured person being off the project for days, even weeks, which negatively impacts production, especially if the person is a key operator, supervisor, or has specialist skills required for the project.
    5. Result in increases in insurance premiums.
    6. Could even lead to legal actions by the injured parties if the project was negligent. These legal actions are time-consuming and costly to defend, and payouts to the injured can be huge.
    7. Damage contractor’s reputations. Invariably serious accidents attract media attention. Client’s don’t want to employ contractors with a poor safety record. After all, an accident on their project could delay the project, attract unwanted media attention, and it invariably takes up the client’s and their team’s time to investigate the cause. Many clients want to see the contractor’s safety statistics for the last few years before employing them. Contractors with poor safety records won’t get the job.
  2. Poor safety could result in the project being shut down by the authorities until the safety breaches are rectified, which costs money and causes delays. It often also results in negative publicity which impacts reputation.
  3. The authorities can impose monetary penalties for an unsafe workplace.
  4. Unsafe work conditions negatively impact production.
  5. People don’t want to work for a company with a poor safety record. Many values their health and will choose to work elsewhere, where they’re more likely to stay safe and healthy.
Of course, poor safety may even have a direct impact on your health. More than one project manager and company owner have been injured on their projects. I’ve had a few close calls in my construction career and have narrowly avoided serious injury– I shudder when I think back to these near misses, my life could be very different today.

What’s the problem?
Over the years I’ve seen huge improvements in safety on projects. I look back now and wonder at the risks we took with our own lives, and the lives of workers. Safety has changed for the better, which means we can all sleep easier at night.
...Continue Reading....
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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.
Please share this post
To read more about the author’s books and find out where you can purchase them visit the pages on this website by clicking the links below:
'Successful Construction Project Management: The Practical Guide'
'Building a Successful Construction Company: The Practical Guide'
'Construction Claims: A Short Guide for Contractors'
'Construction Project Management: Tips and Insights'
​'Construction Management: From Project Concept to Completion'
'Construction Book reviews'
To read more about the author visit the page 'Paul Netscher'
Want to contact Paul Netscher please enter your details on 'Contacts'
Find out how Paul Netscher can help you
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    Copyright 2016 - The attached articles cannot be reproduced for commercial purposes without the consent of the author.
    The opinions expressed in the attached articles are those of the writer. It should be noted that projects are varied and different laws and restrictions apply which depend on the location of the contractor and the project. It's important that the reader uses the supplied information taking cognisance of their particular circumstances. The writer assumes no responsibility or liability for any loss of any kind arising from the reader using the information or advice contained herein.
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Successful Construction Project management
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Construction Claims: A Short Guide for Contractors
Construction Management: From Project Concept to Completion
Construction Project Management: Tips and Insights
​Build and Renovate Your Home With Your Eyes Wide Open
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Developing Successful Construction Project Managers.

Building Successful Construction Companies.
30 years of construction project management experience
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