Where there’s smoke there’s fire. Is your construction project in trouble?

Image courtesy of peleluangwang at FreeDigitalPhotos.net

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

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

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

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

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

Why do problems on construction projects get out of control?

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

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

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

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

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

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Construction problems require action and they require a plan to fix them

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

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

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

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

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

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​Paul Netscher has written several easy to read books for owners, contractors, construction managers, construction supervisors and foremen. They cover all aspects of construction management and are filled with tips and insights.
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