Craft a winning project execution strategy for construction projects.docx

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Craft a winning project execution strategy for construction projects Wednesday, June 3, 2015 Projects are the complex process and collaborative work of turning an idea into an actual profit making facility. From Concept to Feasibility to Project Strategy then Design Basis to Basic Design to Detailed Design then Construction and Finally Close-Out. Every phase is critical to achieve a successful project and as they say ”A chain is only as strong as its weakest link”. Yet taking the Logical sequence of projects one could realize that construction is the most critical part of a Project, it is what could make or break a project. Despite its being one of the later phases of a project, Construction will only be successful if you think about it from the beginning (FEL and Design Basis). There are few things to keep in mind to have successful Construction phase: 1. Put more weight on construction activities as opposed to back office engineering activities in the Cost Breakdown Structure. Most construction companies tend to put the most weight of the contract value on engineering work since they link it with material procurement, which happens during engineering period. When negotiating the value of the contract, it is essential to put more weight on actual construction work. Even if the construction company refuse, which is something expected, then Project Management can still manipulate the percentages in material procurement progress to serve the construction work portion. For instance, procurement progress consist of: issuing P/O to supplier, Supplier confirming quantities and committing to delivery dates, Receiving Material, Inspection at supplier premises then arrival at site. So by putting more weight “Arrival at site” (which is still part of construction work the team are helping Construction activity in an indirect way). 2. Obtain the necessary approvals from Authorities. Authorities require several forms that need to be submitted in timely manner to ensure construction take

Transcript of Craft a winning project execution strategy for construction projects.docx

Craft a winning project execution strategy for construction projectsWednesday, June 3, 2015Projects are the complex process and collaborative work of turning an idea into an actual profit making facility. From Concept to Feasibility to Project Strategy then Design Basis to Basic Design to Detailed Design then Construction and Finally Close-Out. Every phase is critical to achieve a successful project and as they say A chain is only as strong as its weakest link. Yet taking the Logical sequence of projects one could realize that construction is the most critical part of a Project, it is what could make or break a project. Despite its being one of the later phases of a project, Construction will only be successful if you think about it from the beginning (FEL and Design Basis). There are few things to keep in mind to have successful Construction phase:1. Put more weight on construction activitiesas opposed to back office engineering activities in the Cost Breakdown Structure. Most construction companies tend to put the most weight of the contract value on engineering work since they link it with material procurement, which happens during engineering period. When negotiating the value of the contract, it is essential to put more weight on actual construction work. Even if the construction company refuse, which is something expected, then Project Management can still manipulate the percentages in material procurement progress to serve the construction work portion. For instance, procurement progress consist of: issuing P/O to supplier, Supplier confirming quantities and committing to delivery dates, Receiving Material, Inspection at supplier premises then arrival at site. So by putting more weight Arrival at site (which is still part of construction work the team are helping Construction activity in an indirect way).2. Obtain the necessary approvals from Authorities. Authorities require several forms that need to be submitted in timely manner to ensure construction take place on time. Like an Environmental Impact Report. Once that document is approved, authorities will issue Environmental Consent to Construct (ECC) allowing starting the construction work. Another document that have to be submitted to the authorities is the site wide Construction safety plan, which has to be submitted prior to start effective construction. Other permits that have to submitted to the authorities like: Permit for Waste Disposal, Allocation of Pipe routing, Request for Water tie-in, Permit for sanitary Tie-In, Permit for Fence Installation and many others more. Authorities are serving many users and often they are under-staffed. Thats why submitting those documents way ahead of time ensures they are approved at the right time.3. Good Selection of Subcontractorsespecially Civil. Civil will live the whole cycle of the project site activity from the first activities of land leveling to the final activity of road asphalt paving. Civil subcontractor is a key element and could set the rhythm for whole project. The cheapest subcontractor is not always the best. Some subcontractors are short on Manpower (Carpenter, Steel Fixer, Welder etc). other subcontractors are short on equipment (Pilling, Dewatering, Concrete Mixers Mobile Crane etc). careful selection of civil subcontractor could be one of the project successes factors. it pays-off to consider other projects the subcontractor handling simultaneously and which phases are they.4. Specialized Subcontractors for specialized Jobs. There are several Subcontractors that have a proven record in doing specific Jobs. Some are specialized by discipline like being a well reputed Electrical or mechanical subcontractor. It pays to ask people of experience in similar projects.5. Early site preparationis Key in two ways: first, it gives the project team a sense of urgency which will help push the contractor during the engineering stage. Second, it will give a lot of work front when the actual construction begin. There are some tasks that dont require waiting for detailed design. Things like: Digging obstacles in the construction area, Backfilling site with soft sand, Leveling and Compacting process area based on preliminary drawings, Pilling work which is one of the earliest drawings to be produced by civil, Installing Security Fence, Installing Temporary Gates, Site and Plant Roads. All those tasks can be done in an early stage given their nature of requiring no or minimum drawings and doing them in an early stage could open lots of work fronts for other tasks to follow.6. Preparation of Lay-down Area. Depending on the area of the project, Logistics could be a nightmare. The Lay-Down Area should be close enough to be able to move material easily to construction site yet not too close to interfere with construction site. In some previous projects and due to limited area parts of the construction area was used as a lay-down area which restricted accessibility to site causing delay in work progress.7. Sequential arrival of material. Lay-down Area is a temporary area to keep material that are ready to be installed. It is not to be used as a permanent storage area for late needed material. Optimum use of Lay-down area could help speed up the structure and piping erection and reduce congestion on limited plot plans.8. Use of New Construction Methods. For instance Modular construction methods could save significant time. Shop built structures could save time more than conventional site built.9. Early Assembly of Site team. in the early days of site work few people are needed. Mainly Civil Supervises, Construction supervisors and Safety Supervisors. Mobilizing them early to work site will push the construction contractor to establish their site presence. The project management team could help the construction team in logistics such as Custom Clearance, Duty Exemption and others more.