MANAGING CONSTRUCTION APWA Public Works Institute Kansas City

MANAGING CONSTRUCTION APWA Public Works Institute Kansas City

MANAGING CONSTRUCTION APWA Public Works Institute Kansas City Metro Chapter April 8, 2015 Ron Freyermuth P.E., PWLF Learning Objectives - Review the key steps in managing a construction project. - Recognize that risk management (and risk sharing)

is a significant part of construction management. - Review practices for successful construction management. - Recognize that good working relationships and quick, fair resolution to problems is a key to success. Primary Stakeholders on a Construction Project Owner Designer (Engineer/Architect)

Contractor Basic Construction Project Expectation A successful project for all stakeholders. Stakeholder Expectations for a Construction Project Owner: Project will be on time, on budget and quality will meet the highest standard. Contractor: In/out quickly, good profit margin (10% or better),

bonding capacity restored asap, minimum draw on resources. reputation is maintained for future work. Designer: Create a project design that meets the owners needs, complies with all regulations and industry best practices, builds on reputation for future work and makes a profit. Construction Management Construction Management

Construction Management is the overall planning, scheduling/coordinating and control of a project from beginning to completion. Managing construction mitigates Risk and maximizes the potential for a successful project for all stakeholders. Managing construction is aimed at meeting an owners expectations to produce the desired project on time and under budget.

Key Items in Managing a Construction Project 1) Project Planning/Risk Management 2) Contract Document/Specification Preparation 3) Procuring Construction Services 4) Pre Construction Meeting 5) Public Information/Outreach 6) Safety Program 7) Project Progress Reporting Status Reports 8) Time Control Scheduling/Coordinating Activities 9) Budget Control Cost Tracking

10) Quality Assurance/Quality Control Inspection 11) Celebrations 12) Project Closeout 5. Public Information/ Outreach 6. Safety Program

Key Items in Managing a Construction Project 1) Project Planning/Risk Management 2) Contract Document/Specification Preparation 3) Procuring Construction Services 4) Pre Construction Meeting 5) Public Information/Outreach 6) Safety Program 7) Project Progress Reporting Status Reports 8) Time Control Scheduling/Coordinating Activities 9) Budget Control Cost Tracking

10) Quality Assurance/Quality Control Inspection 11) Celebrations 12) Project Closeout 10. Quality Assurance/ Quality Control Construction Inspection

Key Items in Managing a Construction Project 1) Project Planning/Risk Management 2) Contract Document/Specification Preparation 3) Procuring Construction Services 4) Pre Construction Meeting 5) Public Information/Outreach 6) Safety Program 7) Project Progress Reporting Status Reports 8) Time Control Scheduling/Coordinating Activities 9) Budget Control Cost Tracking

10) Quality Assurance/Quality Control Inspection 11) Celebrations 12) Project Closeout Construction Management/Risk Management Misconceptions Construction management is unfortunately seen as paper and claim management by many practitioners. Risk management is often only seen as

insurance and indemnification. Risk Management is actually a significant part of construction management. Definition of Risk The potential of something occurring on a project which will cause the project to not meet expectations. Managing Risk requires project assessment and a strategy for risk mitigation.

Risky Business Types of Risk on a Construction Project:

Increased Project Costs for any of the stakeholders Delays in meeting milestones and final completion Poor quality of work Contractor default Work stoppages (affecting time and cost) Claims and disputes Changed conditions/unforeseen conditions Practices for Successful

Construction Management Partnering Good Communications Dispute Avoidance & Resolution Interest Based Negotiations Partnering Definition Partnering is a process where a voluntary effort is made by all parties to develop joint goals & establish a cooperative, rather than

adversarial, atmosphere while executing the contract. What Partnering Does

Builds the TEAM & Teamwork concept Establishes joint goals & objectives Promotes open & honest communication Develops Trust among the Stakeholders Helps to Resolve issues & conflicts What Partnering Does NOT Do

Does Not change the Contract Provisions Does Not give anything away Does Not ask something for nothing Is Not a means to shift risk Does Not lead to a winner and a loser The Bottom Line

Partnering is an alternative to traditional stakeholder roles. Partnering is not a guarantee of success. Partnering improves potential for success. Partnering is about people. Partnering works because people make it work. Good Communications Communication is: Sending a message that is received.

Effectively conveying information to others. Managing a construction project requires timely and successful interactive communication. Good Communications Elements of successful Communication: Clarity Conciseness Active Listening

Dispute Avoidance & Resolution WHAT ARE OUR OBJECTIVES? Follow the proper path of communication on parallel levels, not across levels Proper tracking of paperwork Proper and timely responses Act Promptly Keeping all stakeholders informed Be Equitable and Fair Empower Decision Makers to Make Decisions

Escalate All Unresolved Issues ASAP Interest Based Negotiations Interest Based Negotiations Principles: Focus on issues not personalities Focus on interests not positions Create options to satisfy mutual and separate interests. Evaluate options using standards, not power options that

result in win/win receive top rating. Desired Results: Resolve dispute amicably. Agree to disagree and move on (T&M work, reservation of rights to file claim, etc.). SUMMARY, Q&A Pay equal attention to documentation and to maintaining good personal relationships. Focus on what each party has as its primary goals

and objectives and work to achieve those in a winwin scenario. Have fun, enjoy the process, celebrate your successes and learn from your mistakes.

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