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The Role of Documentation & The Key to Labor Management
- 2. 2 The Role of the Project Team 1. Meet or Beat Budget 2. Comply with Contract 3. Protect contract from encroachment by others 4. Be contractor of choice in the future The Performance on this project governs future opportunities 5. Continue to get better Those who don’t will be called “ex‐contractors”. Those who do have another 40 years ahead of them. 6. Do things you don’t like to do!
- 4. 4 AssistantAssistant Each Person is Assistant forAssistant for Someone Else The project manager is assistant assistant for the field: to provide information, resources, and tools on a timely basis. The superintendent is assistant forassistant for the foreman: foreman: to provide them the planning, information, goals, and tools they need to execute the work; and assistant for the project managers: to provide status, contract variances, and early warning signals they need to perform their jobs. The president is assistant for everyone: to provide management tools, training, etc.
- 9. 9 Productivity in the Field Introduction There are many factors that affect project profits. However, it is generally accepted that the area with the most influence and the most risk is that of on‐site labor costs. This is the area we will be focusing on in the course. Typical Situation As shown in Figure 1‐1 in a series of 22 productivity studies, carried out by Kerry O’Brien in Ontario, using the work sampling technique it was found that mechanical and electrical tradesmen were only spending, on average, 32% of their day performing fully productive work. The balance of their day was spent as follows: 26% Ineffective activities 20% Material handling 15% Indirect operations 7% Miscellaneous activities These groupings are described in more detail in figure 1‐2.
- 11. 11 Lost Man Hours Per Craftsman Per Week Due to Rework vs. Project Completion Stage 0 1 2 3 4 5 6 7 8 25% 50% 75% 100% Lost man hours per craftsman per week Lost Man Hours Percent Complete
- 15. 15 Labor Risk – Within Your Control Planning Meetings:: InternalInternal – maintain minutes! You have a duty to plan and coordinate, to exercise control over your own production flow. How to Avoid Waste Focus Meetings:Focus Meetings: With key personnel to figure out how to improve, how to work around problems. Also becomes important in pre‐ qualification proposals. Project Planning Meetings:Project Planning Meetings: Input should include “subject to work area being available”; “subject to receipt of answer RFI# ___ by _________”, etc. Warning:Warning: If you provide dates, durations and miss your own dates, miss your own dates, you have set up your report card to get failing grades.failing grades.
- 17. 17 Labor Risk – Causes By Others You have control control over protecting yourself from impact to labor by others. First, as indicated, read read the general contract and subcontracts to determine notice notice requirements. Second, comply strictly comply strictly with those requirements Third, begin the process of demonstrating demonstrating to someone who doesn’t want to pay you and will try to get out of paying you the cost impact cost impact that occurred as a result of the change, disruption or variance from production flow. Remember, total cost is a dog that won’t hunt!
- 18. 18 Labor Risk – Causes By Others Impacts to production flow are algebraic not arithmetical!Impacts to production flow are algebraic not arithmetical! Productivity is, among other things, a product of tasks which arProductivity is, among other things, a product of tasks which are:e: ConsistentConsistent Repeatable, uninterruptedRepeatable, uninterrupted Variations which cause interference, disruption, lack of uniformVariations which cause interference, disruption, lack of uniformity ity and/or increase the cost of production.and/or increase the cost of production. Learning curveLearning curve Stop & goStop & go MovementMovement CrowdingCrowding Sequence changesSequence changes Material handlingMaterial handling ReworkRework
- 20. 20 BUT: The following charts are not adequate. It takes field BUT: The following charts are not adequate. It takes field records, performance measurement (measured mile, records, performance measurement (measured mile, earned value, and rate of production) to prove impact.earned value, and rate of production) to prove impact. 0 5 10 15 20 25 30 35 10 20 30 40 50 60 100 MEN 200 MEN 300 MEN Percentage Loss of Productivity Percent Overmanned
- 21. 21 Effect of Congestion of Trades on Productivity 0 2 4 6 8 10 12 14 16 5 10 15 20 25 30 35 Percent Congestion of Trades Percent Loss of Productivity Percent Congestion of Trades
- 22. 22 Construction Operations Orientation / Learning Chart 100 90 80 70 60 50 40 30 20 10 1 2 3 4 5 6 7 8 Time (Hours) *100 Represents the productivity rate required to maintain scheduled progress Theoretical productivity scale
- 23. 23 Effect of a Disruption on Learning Curve 0 10 20 30 40 50 60 70 80 90 2 4 6 8 10 12 14 16 18 20 Learning Curve Time Unit Number of Units DISRUPTION
- 24. 24 Effect of Remobilization on Productivity 45 40 35 30 25 20 0 5 10 15 20 Length of stoppage (8 hour work days) Percent loss of productivity
- 25. 25 The NECA Manual of Labor Units Manhours 1 Man Days Men Months % Manhours 500 62 2 6 2 8.00 40 1,000 125 3 8 3 6.50 65 1,250 158 4 8 3 6.50 81 2,500 313 6 10 4 5.00 125 5,000 625 8 16 5 4.00 200 10,000 1,250 11 23 7 3.50 350 15,000 1,875 14 27 8 2.75 415 20,000 2,500 15 34 10 2.25 450 30,000 3,750 17 44 12 1.75 525 40,000 5,625 25 45 12 1.75 785 50,000 7,500 30 50 14 1.45 870 75,000 9,400 35 54 15 1.35 1,010 100,000 12,500 38 65 18 1.25 1,250 125,000 15,650 40 78 21 1.15 1,445 150,000 18,750 45 83 22 1.00 1,500 200,000 25,000 58 86 23 0.95 1,900 250,000 33,000 70 90 24 0.85 2,120 300,000 3,750 80 94 26 0.84 2,520 1 Based on 6 Hour Day 2 Based on 40 Hour Week THE NECA MANUAL OF LABOR UNITS EXTENDED DURATION OF ELECTRICAL CONSTRUCTION JOBS BEYOND A NORMAL JOB PERIOD EXTRA LABOR HOURS CONSUMED Base Estimated Electrical Contract Time Optimum Average Crew 2 Crew Weeks Normal Related Construction Project Duration Effect of Extended Duration Increase of Base Estimated Labor Per Month of Extended Duration
- 29. 29 Requests for Time Extensions – Federal Construction Projects A contract duration is just that: contract duration. That duration remains the obligation of the contractor until such time as the contracting officer changes it, or it is changed by a legal venue on appeal. What this means is that the contractor, when confronted with an excusable delay (compensable or non‐compensable), should always: Request a time extension: In writing Within the time limits prescribed by the contract Providing documented justification for the request Demonstrating that the critical path has been moved out by the act or omission of the government. (I like to submit daily reports and other field records such as minutes of meetings, et al to completely substantiate my position; I also will demonstrate the degree to which my own acts did or did not contribute to the delay and the extent to which I have attempted to mitigate any damages) Requesting that the Contracting Office issue a mod extending the duration of the contract
- 30. 30 If the Contracting Officer does not respond to my request, I can do one of several things: Notify him that as he has not responded, that I will accelerate in attempting to meet the original contract schedule or Because of impossibility of meeting the original contract schedule due to the acts/omissions of the government as set forth in my request for a time extension, this is notification that I am entitled to the additional time and I consider the contract schedule has been constructively extended and that I will submit cost for the delay at a later time. Also, I will ask for a status of the condition of the government funding to assure that I can get paid if I incur additional cost as result of the delay. If the government does nothing and does not send me letters telling me I am behind and does not threaten liquidated damages, I can hopefully rely on my lawyer to use the doctrine of waiver which would at least let me off the hook for default termination and liquidated damages. But I don’t want to rely on waiver. I want to emphasize the importance of notice, effectively updating the schedule and showing the impact to the critical path, and having daily reports which are consistent with the causes of the delay and the delay itself.
- 31. 31 Daily Diaries Remember If you don’t write it down, it didn’t happen. If what you write down isn’t accurate, it can be used against you. If daily reports are not read and used by management, they are garbage and shouldn’t take up field supervisors time. If you want to do your company in, then don’t give written notice or maintain good field records. What you write down is discoverable. “Unimpeachable witness” if: Written company policy UsedUsed for managing Accurate Complete Good & Bad Objective; No name calling
- 32. 32 Labor Cost Reports Written policy Adequate description Adequate for selling targets and monitoring key activities – Performance as well as man hours By building By floor Rework Material handling Trends
- 33. 33 How to Handle – What If’s The General Contractor does not update the project schedule effectively (It is just a billing schedule and not really used to manage the project). The General Contractor states to you that, “There are plenty of places for you to work so you are not being damaged because the perimeter walls have not been installed.” The General Contractor states: “The critical path has not been extended so you are not entitled to a claim for delay.” The General Contractor states: “You didn’t meet your own dates.” or “You haven’t manned up to the job as you should have.” The General Contractor says: “Well you have been on the job a year now and never complained about the schedule before.”
- 34. 34 The General Contractors says: “Under the contract, we have the right to direct where your crew work, when, and how many hours.” The General Contractor says: “I don’t buy that working overtime causes a loss of productivity and I don’t buy into those studies. Show me from field records that your productivity was impacted.” The General Contractor tells you: “You have to add 25 men by next week or we will supplement your crew and back charge you!”