Roofing & Construction Industry Information Resource

The term “Project Manager” seems to cover a variety of job descriptions in the field of construction today. Depending on the size of your firm, the project manager’s responsibilities may include preparing and bidding the job, negotiating the subcontract agreements, buying out all the materials, and construction administration. But whether you are a Multi-million dollar company that has specialized departments separating estimating, purchasing and project management or a small to mid-sized company who combines many types of responsibilities in the same individual, the project manger is the person responsible for the satisfactory completion of the project.

Frank Schipper Construction Co. (FSCC) is located on the Central Coast of California in Santa Barbara, noted for its “no growth” politics. We survived the economic turmoil of the early 1990s and are now reaping the benefits of that survival-Tremendous growth.

Our motto is also our reputation, “Quality without Compromise,” and it is the deciding factor in everything we do. FSCC is noted for our ability to “fast-track” commercial projects. That means taking a reasonable progress schedule and cutting it in half!

Well, not quite in half, but you get the idea. And how do we manage to accelerate the project and still maintain profitability? Effective project management is the key.

In an industry that is fraught with incredible risk, quick response and expedient documentation by the project manager can mitigate many potential problems that drain profits.

We live in a world that is constantly changing. Our industry is not immune to these changes. Think back to how we all conducted business just 10 years ago. Computers, copiers, faxes, beepers, cellular/digital phones, e-mail &endash; few of these terms were in our vocabulary, much less and integral part of our daily lives. Technology as not only changed the way we do business but also the speed at which we conduct our business.

To stay ahead of “the pack” we must become extremely efficient in all aspects of the construction process. At FSCC, we do this with a network of delivery systems that documents the progress of the project through effective communication.

What are delivery systems? They are uniform techniques for planning, constructing and completing a project. Delivery systems are absolutely necessary for effective risk management, profitability and growth.

So, what am I saying here? Every company needs to take the time and energy to prepare an Operations Manual, a “How- To” book for project management. This will formalize the methods that you have found to be the most effective for your company.

Start with standardizing and computerizing your forms &endash; all your forms, contracts, sub-contracts, RFI’s, transmittals, submittal logs. Any repetitive form must be reviewed.

This is the time to take a good hard look at forms you’ve been using for years and update them. If your company is on-line, perhaps adding your e-mail address is appropriate.

The next step is to outline what administrative procedures are used from the time a project is brought “in-house” to the completion of that project. Write everything down!

You will be surprised at the amount of information that will come forth. Don’t assume that everyone does it your way. When our company went through the development of our Operations Manual, I was surprised that procedures I thought were standard with other project managers were not. That’s okay; maybe someone else has an easier and quicker way of accomplishing the same goal. Remember that this is a team effort!

When our Project Management Department receives a project from Estimating, much preparation is done to compile as much information as possible to give to the superintendent to be able to build as efficiently as possible. Our Estimating Department uses a Pre-job Conference Form to list the project information, construction time frame, owner information, status of required reports/permits, safety consideration, and most importantly, the estimator’s construction concerns. A complete list of subcontractors/suppliers with pertinent numbers and addresses is given, as well as copies of all subcontract agreements. Each subcontractor’ scope of work is outlined by the estimator.

Within 10 days of a project’s completion we hold a closeout meeting where we discuss how well the project proceeded to completion. We debate on what we could have done t better facilitate the job. We discuss good/bad/difficult subcontractors/architects/clients. We then discuss how FSCC can handle companies in the future for a more positive outcome.

In between the pre-job conference and the closeout meeting what are the target areas that can negatively impact profitability? I have found submittals, progress schedules, change orders and punch lists are the areas where major dollars can be lost.

Submittals are handled by reading the specifications and creating a submittal log based on the requirements. Sometimes substitutions are only allowed for submission within two weeks of the start of construction. Include as part of the subcontractor project package a letter stating when the submittals are due and the number of copies (usually six). Update the submittal log regularly. If your subcontractor does not submit by the date requested, call immediately. Often subs need a little prodding. Keep a telephone log of all pertinent conversations. Check that the architect is reviewing and returning submittals in an expedient manner. The job will come to a halt if submittals are not processed quickly and equipment is not ordered in time to meet the progress schedule. Be tenacious, don’t give up!

A preliminary progress schedule is created during the estimating phase. After bid the schedule is refined to show critical path and relationships between trades. It serves not only as a road map of the project from start to finish, but as a tool of recognizing, anticipating and compensating for the many obstacles that may affect profitability along the way. Although it is said that the only time a progress schedule is accurate is the day it is produced, update it once a month or as needed to accurately portray job status. Alert the appropriate parties immediately that their action- or lack of it- is endangering the process of the job. Time is money, especially where liquidated damages are concerned!

Everyone knows that “you don’t make a profit on change orders”. I believe that is true. Unfortunately, until architects draw perfect plans or we develop x-ray scopes to uncover as-built conditions, change orders will be a part of our process. Although no one gets rich on change orders, the improper handling of change orders has caused the demise of more that one contractor in this business. The key here is expedient documentation and resolution. Anything different from the plans and specifications is a change in the scope of work and should immediately addressed through your Request-For &endash;Information system.

RFI’s are the quickest way of alerting the architect/client that there is a question/problem regarding the plans. On your numbered RFI form have a space called “Contractor’s Opinion”. Always offer your solution to the problem that has arisen. Being proactive shows that you are a team member willing to share your experience to bring swift resolution.

Who has authorization to sign change orders? Most of the time the architect has the power to approve for the client. However, sometimes the client has retained that privilege alone. This can become a very important legal point later. So know up-front whose signature must appear. Process change orders throughout the job. Don’t wait until the end of the job to present “99″ change orders. I guarantee you that your client will not be a happy camper and you may be out the money. Get it in writing as you go.

Why do contractors spend so much energy to complete a project on time and within budget, then dribble away profits with lagging punch lists and closeout documents? Project closeout must begin with the startup phase. The submittal log must indicate what is required for proper closeout from each trade. Do not wait until the end of the job to begin gathering this information. Make sure you and your subcontractors on a monthly basis update the “As-Builts” drawings kept on the job. There is nothing more tedious than trying to recreate As-Builts after the fact. No update, no money!

Lagging punch list items can become profit “sieves”. Organize the architect/client, all consultants and the project manager or superintendent to walk the job and agree upon items to be included on the punch list. Send a letter to the architect requesting one combined punch list. Depending on the size of the project, you should receive the list in seven to ten days of the walk-though. Read the list carefully to be sure that what is on the list is what you agreed to. Identify each subcontractor’s work and mail copies of the punch list to each one. Attach a letter stating the time frame in which they are to complete their items. Check to make sure this has been accomplished. Call the architect to walk the job after you have made sure everything on the list has been done. How do you get the architect/client to release retention ahead of the completion of the punch list? The project manager and the architect should agree upon a fair and proper amount of monies to be held so the rest of the retention can be released.

Is project management easy? No, but it is the most challenging and gratifying work I know. Walking through a completed project gives me a sense of fulfillment and satisfaction that is hard to compare, for I leave a little bit of myself in its wood, steel and concrete.