Construction Documents

Bidding documents, contractor agreements, scopes of work, schedules, bill of

quantities: These are just some of the documents required for any construction
project—and that’s before any actual building begins. Keeping tabs on all of this
paperwork, noting changes, and communicating updates to the right people can quickly
spiral out of control without proper document management. But figuring out a good
construction document management process is a task unto itself.

Table of contents:
What is Construction Document Management?
Benefits of Construction Document Management
When Should Document Management Be Used?
6 Tips for Implementing a Document Management Process
Choose the Right Construction Document Management Software

What is Construction Document Management?

Construction document management is a discipline that’s concerned with regulating the
flow of documents; if it pertains to storing, finding, changing, and sharing a document, it
falls under the umbrella of document management.

Construction document management can apply to both physical and digital documents,
though many organizations are going digital to better handle the amount of
documentation modern construction projects require.

Back when blueprints were still blue, documentation might have simply included a set of
plans with marginal notations for exceptions and augmentations. Today, even the most
modest construction projects begin with drawings, specifications, estimates, consultant
reports, BIM files, and more. Managing them creates a single source of truth that your
entire team can rely on, even as plans change.

Document Control in Construction Projects

In construction projects, document management is supported by the scaffolding created
by document control. Where document management is mostly about the flow of
information, document control is the process of capturing information in a consistent,
structured way for each type of document. This includes managing different versions of
reviews, revisions, and approvals, and maintaining archives to ensure stakeholders are
referencing the most recent versions.

Thus, document control gives your team the confidence to validate facts with accurate
records as evidence. Together, document management and document control generate
defined digital workflows, notifications, and review processes that keep teams in sync,
and bring the right people together as a project progresses. In the high-stakes world of
construction — where profit margins are extremely tight — this kind of collaboration is
critical to builders, investors, and insurance companies who use accountability to
manage risk.

Benefits of Construction Document Management

Document management systems in construction offer stakeholders these core benefits:

1. Establish a Single Source of Truth

Collaborating as a team requires a continual flow of communication. When you make

decisions as simple as approving a purchase requisition or contractor engagement, you
need immediate access to reliable information like status and pricing. In short, you and
your team need a single source of truth that everyone can count on.

A modern document management system should provide a central, easy-to-access

repository for all of the documents critical to a project. This centralization is key to
efficient collaboration, reducing errors, preventing duplicate documents, and more.

2. Increase Communication Between and Among Departments and

Stakeholders

Aside from creating a centralized storage space for critical documents, good document
management can improve the quality of communication between and among
departments and internal and external stakeholders, including:

• Contractors and subcontractors: These stakeholders may not be physically

present during staff and team meetings, so they benefit greatly from reliable
access to information about any changes related to their defined areas. For
example, say an electrician is waiting to hear about an update to moving some
existing wiring. Rather than chasing down the general contractor for updates,
with a good document management system, that electrician knows exactly where
to find the information critical for moving forward, like approvals and updated
work orders.
• Project managers: PMs play a pivotal role in construction projects, managing
not just stressed timelines but stressed budgets, too. Documentation
management systems provide the framework PMs need to turn things around.
For instance, by ensuring that teams know exactly where forms live and that
what they’ll find is the most up-to-date version, teams can save time and prevent
the waste of needless resources spent working off of outdated information.
• Accounting: A solid document management system can automatically prompt
accounting team members to review things like cost centers before material
requests are sent off for procurement. The net effect is to reduce the
organization’s time spent on reconciliations.
 • Job site workers: The people carrying out the work on site are often left out of a
large portion of communications related to a project. However, an effective
document management process ensures critical communications affecting
safety, for example, reliably reach everyone in a timely manner.
3. Helps Control and Reduce Spend

Cost overrun is a perennial issue with enterprise projects, with nine out of 10
projects exceeding their original budgets. One key way to combat cost overrun is with a
well-oiled document management process. Your organization benefits when everyone
works from the same set of plans and knows when changes are made.

For example, a general contractor (GC) who has the most current set of blueprints,
timelines, and scopes of work knows what to prioritize and when. Plus, he or she will
know which changes to implement and which to disregard. Having this knowledge in-
hand means the GC can focus on the right tasks at the right time, all of which keeps
costs down.

4. Creates a Standard Procedure for Organizing and Handling

Documents

At its root, a document management system operationalizes an organization’s handling

of documents at every level. It replaces the old paper chase of finding approved invoice
copies or date stamps for received materials with a few consistent clicks and
keystrokes. The result minimizes administrative tasks and replaces a tornado of
documents with an efficient standard procedure.

When Should Document Management Be Used?

To truly realize the benefits of document management, it’s important to utilize it at the
right moments and in the right way. Contracts, change orders, RFIs, and design
drawings, are just a few of the forms that should be included in the process. However,
be sure to consider any idiosyncrasies of your organization’s workflow and include any
other necessary forms in the process as well.

The process itself should kick in at these critical steps:

• Initial project creation: When a project is initially created, defining documents

like bid proposals or requests for proposals capture the intent or specifications of
a project. Capturing project creation documents in a document management
system ensures that stakeholders can quickly and easily review a project’s
progress against what was initially promised in the proposals. Consider
sustainability specifications committed to in bid documents, for example: How the
commitment was made in the bid response directly impacts the choice of
construction materials.
 • Reviews prior to document delivery: Regardless of what document you’re
dealing with, it will need to be reviewed. With a well-designed document
management system, you can get the right client representatives, managers, and
experts involved in reviews at the right time. Further, you will capture their
analyses so that they’re available for reference as the project proceeds.
• Changes and edits: Change is continuous in a project team. High-quality teams
capture, document, and communicate it effectively. Your document management
system will give you tools to analyze the patterns of these changes so that you
can use them to improve the quality of your work, and the efficiency of your team.
• Verifications and approvals: Unlike reviews, which can be detailed and require
extensive changes to a document, approvals should be binary: yes or no. But
tracking and documenting them is no less critical.
• Delivery: Documenting delivery is the simplest way to notate a project’s
progress. Use cases vary from simple receipts like email and messaging to
sophisticated bank-level validations. Whatever the approach, documentation to
confirm delivery is critical to your document management system.

Important Documents for

Commercial Construction Projects
Contents:

• Bidding Documents
• Construction Contractor Agreement
• Architectural Drawings
• Specifications
• Bill of Quantities
• Schedules
• Work Orders
• Subcontractor Applications
• Blanket Subcontract Agreement
• Insurance Requirements/Certificate of Insurance
• Daily Reports
• Safety Reports
• Workers Compensation Waiver
• State Sales Tax Exempt Certificate

The daily life of any construction superintendent involves a lot of paperwork. While all that
paperwork gets tedious quickly, daily reports and project documentation can keep you organized.

These documents cover every element of business operations, from inventory tracking, to supply
chain, to team meetings. Documentation and the careful maintenance of all paperwork and
documents help keep projects on schedule and disputes short.
Here are some of the most important construction documents for commercial projects:

1. Bidding Documents
Bidding documents are not legally binding, but they do give contractors a chance to assert their
intentions and expectations early on in the process. Expectations, conditions, and terms pre-
established in the bidding documents can influence how the final construction agreement is
written, how weather and environmental factors are handled during the process of construction,
and how subcontractors are hired.

Keeping track of all bidding documents can help ensure all parties stay true to the initially agreed
upon conditions.

2. Construction Contractor Agreement

Once a bid has been accepted, general contractors must sign agreements before work begins.
Construction contractor agreements cover the following:

• The scope of the work to be done; this includes a description of the project
• The general schedule/timeline of the project
• Who will complete the work; contractor information
• Who will pay for the completion of the work; commercial customer information
• Provisions for weather and environmental delays and other contractor protections
• Supplier details
• Information on governing contract laws; insurance, claims processing, etc.
No work should be completed prior to the creation and signing of this document. The
construction contractor agreement is the principal agreement between a contractor and a property
owner.

Done correctly, construction agreements help companies avoid confusion, lawsuits, and worker
mistreatment later down the line. Most future documents attach or refer to this document.

Not sure how to create a contractor agreement?

Check online; there are plenty of commercial construction contract templates available. One
template can be found here.

Generally, all contractor agreements must include the following:

General Conditions

The General Conditions portion of the contract defines the obligations assigned to the contractor
to complete the project. General conditions include establishing the paying party, determining
when payments will be made, sourcing policies, where work will be performed, and deadlines.
The General Conditions are the legal framework for the contract, and should also include details
referring to how disputes should be resolved.

Special Conditions

Special Conditions may or may not be necessary, but are often an extension of the terms
stipulated in the general conditions section. Special conditions may be included if a certain
portion of the project requires specific instructions that the rest of the project does not.

Scope of Work

The Scope of Work clearly states every element involved in the completion of the project. By
laying out the entirety of the project, bidding is made easier, schedule estimates are more
accurate, and the general conditions can be best tailored to suit the particulars of the project.

The scope of work will also include descriptions of the techniques to be used, material
information, and details on who will be responsible for particular portions of the work. The
scope of work section also helps to handle potential changes to methods, materials, or specs.

Cost Estimate

Included in the contractor agreement should be a cost estimate of soft and hard costs. This
estimate can be broken down by area or presented in the form of a lump sum estimate.

Hard costs take up the majority of any project budget. Eating up nearly 70% of the average
project, hard costs should be calculated in advance so there are no mysterious overheads putting
you over budget. The hard cost budget estimate should include:

• Expected site work required

• Labor estimates
• Landscaping pricing
• Overhead costs
• Contingencies
Soft costs typically can be covered by the remaining 30% of the allotted budget. Soft cost
calculations include:

• Inspection fees
• Equipment
• Inflation
Licenses

All relevant licenses should be shared during the creation of a contract. Since projects can move
very quickly, ensuring licenses are always up to date is important.

Contractors must complete educational programs, online exams, and license renewals throughout
their career. Without the correct contractor license, customers should not sign an agreement.
A licensed contractor shows that they are qualified and able to complete a project. Hiring without
a license runs you the risk of legal troubles, wasted money, incomplete or poorly completed
projects, and other headaches down the road.

3. Architectural Drawings
You should also include in all documentation the drawings associated with the project. Drawings
are a visual representation of the agreed upon final design, something tangible for contractor and
customer to agree upon before the project begins.

Beyond keeping records of the general design of the project, you should maintain records that
also describe the scope, extent, and aesthetics of the project to be completed.

4. Specifications
The specifications of a commercial construction contract detail the technical requirements of a
particular project. This is the initial agreement of the specifics of the project, and any changes
later will be handled under the Scope of Work section.

The specs section should include:

• Common standards and best practice

• Material requirements and acceptable material deviations
• Testing and certifications required for project completion
• Techniques and equipment expected to be used

5. Bill of Quantities
The Bill of Quantities includes documentation of all materials and tools needed for completion of
the project. This can include an itemized list of tools, labor, material, and miscellaneous parts as
well as pricing for every item.

This document helps contractors properly estimate the cost of the project and offer an accurate
initial bid. This document also helps customers see a visual representation of where their money
is going.

6. Schedule
A construction schedule will help keep the completion of the project on track and help manage
timeline expectations right from the start. Construction schedules can include options to change
or alter the schedule at a later date, as some commercial construction projects are delayed due to
permit or licensing delays.
The schedule can also address what should be done in the event that the proper materials cannot
be obtained in time.

The schedule should include a list of necessary components for completing the project, their
relative start times, their relationship to other projects, and when each project should be
completed by. The schedule can also be where licensing and building permit certifications are
scheduled.

7. Work Orders
All work orders describing specific projects and work to be done should be saved. The
maintenance of these documents will help keep projects on task, help ensure work is completed
correctly, and act as extra evidence of the agreed upon terms.

Work orders include client and contractor information, order numbers, expected completion date,
authorizing signatures, etc.

8. Subcontractor Application
Some commercial construction projects require the addition of third-party laborers in the form of
subcontractors. Subcontractors may specialize in painting, masonry, electrical wiring, or any
other number of specialized project positions.

Subcontractor applications let the hiring party know that the subcontractor is qualified.
Subcontractor applications include:

• Subcontractor information including licenses, safety officer, suppliers, etc.

• Financial information
• Project bidding; this will include price estimates for the job, material costs, overhead, etc.
• Legal information
We wrote a detailed guide on managing subcontractors which you can read here.

9. Blanket Subcontract Agreement

A subcontractor agreement is similar to a construction contractor agreement. Subcontractors
must be subject to the same terms as the primary contractor, and agreements should be tailored to
the specific job required.

Subcontractors may be involved in the entirety of the project, or only a specific portion. The
subcontract agreement should clearly state what elements of the project that the subcontractor is
responsible for, the time in which it is to be completed, and all pertinent legal and financial
details.

10. Insurance Requirements/Certificate of Insurance

Insurance, and specifically liability insurance, is an absolute must for contractors. Maintaining
documentation and records of insurance policies and certificates can help you stay out of legal
trouble, understand all commercial construction requirements, help you protect your employees,
and avoid being charged for accidental damage to a work site.

Insurance certifications should be kept on hand at all times to help settle possible damage or
claims disputes.

Insurance will help pay for accidents and injuries associated with the job, accident and damage
protection for the property, and protects against unfounded or unreasonable claims. Proof of
insurance is also a method for proving to a customer that your construction company has the
capital and economic backing to handle issues that may arise under the contract.

A contractor without insurance will likely be passed up in favor of a better-qualified company.

11. Daily Reports

Submitting daily reports helps contractors to keep track of the real-time progress of the project.
These daily reports act as the only detailed account of the process of construction, and therefore
can be invaluable should you need to go back and look at the process in the future.

Daily reporting helps to track where mistakes might have happened and demystify the many
actions that had to be taken to achieve the desired end result. Daily reports should be completed
at the end of every day, starting from the very beginning.

Daily reports in the planning process can help both contractor and customer track the agreements
that have been made and the design elements that have been selected. Daily reports help to track
progress, productivity, and performance during the building process; this can help improve
management and organizational techniques to optimize productivity during construction.

Once the project is over, daily reports can help close the claim and wind down the final project.
Daily reports also help management learn from every project and develop better methods for
future contracts.

Holding onto records of daily reports up to 5 years after a project can help with future projects
and handle post-project claims.

12. Safety Reports

Included in this set of documentation should be a safety checklist with policies and expectations
for job site safety. Checklists should be shared with every member of your team, used every day,
and kept as a way to measure trends in workplace safety, ensure compliance with certain
standards, and help in the filing of accident claims should an accident or injury occur.
Sharing your safety checklist with your entire team will help remind workers of best practices,
and keep every member of your team safer.

13. Workers Compensation Waiver

While all businesses must pay compensation to employees who have been injured or suffered an
accident on the job. Contract workers typically sign a workers’ compensation waiver, which
exempts them from qualifying for workers compensation.

This ensures the worker will not be able to sue in the event of an accident.

Essentially, a workers’ compensation waiver asserts that the independent contractor is their own
employer, exempting the hiring company from all responsibilities associated with being an
employer, including workers compensation. Maintaining and saving all workers compensation
waivers will help you avoid legal trouble down the road.

14. Sales Tax Exempt Certificate

Construction companies may not always collect the necessary sales tax after the completion of a
project. In these cases, a Sales Tax Exempt Certificate is necessary.

Sales tax exemptions are issued by purchasers in order to make tax-free purchases on services or
items that ordinarily would be taxed. Tax-exempt certificates do not expire but must be
maintained throughout the duration of sales being made.

Tax-exempt certificates are only necessary for the sale of products or services that are taxable by
statute.

The proper maintenance and recording of appropriate documents is key to success for any
commercial construction company. Record keeping helps to prevent disputes, keep work on
schedule, and ensure all parties involved are protected.

•
o
Construction Labor Productivity: How to
Measure and Improve It
Measurement of construction labor productivity can be an elusive task. Unlike manufacturing
and other industries, construction tasks vary widely by project type, contractor specialty, and
other factors. In short, when you’re not mass-producing a standardized product, measuring
productivity becomes more difficult.
Even with these challenges, industry researchers and practitioners have made strides
measuring productivity in recent years, and some interesting trends have emerged. While exact
productivity metrics have varied, most sources agree that construction labor productivity has
room for improvement.
In September 2020, the U.S. Bureau of Labor Statistics (BLS) published productivity statistics for
four construction sectors:
• Single-family residential construction

• Multiple-family residential construction

• Industrial building construction
• Highway, street, and bridge construction
The BLS statistics are based primarily on output and employment data from the Census of
Construction (COC), which regularly compiles data in these areas. According to the latest
numbers, productivity decreased between 2007 and 2019 in three of the studied sectors and
increased slightly in one – industrial building construction.
Source: Bureau of Labor Statitics, Office of Productivity and Technology
Other studies have reached slightly different conclusions. In 2018, the BLS found that
productivity had increased in three of the four sectors between 1987 and 2016. Only the
highway sector showed a negative trend in that timeframe.
A 2016 report prepared by Whole Life Consultants Limited (WLC) for Experian and the British
Construction Industry Training Board (CITB) determined that construction productivity in the
United Kingdom increased by approximately 1 percent between 1998 and 2014. The report
noted similar trends dating back to 1978.
Factors Affecting Productivity
Data aside, how can productivity be measured, and what are the factors that determine
productivity? Again, opinions vary, but construction productivity is often measured as output
per labor hour – how much work gets done in the time spent. Output can be expressed in terms
of physical quantities (e.g., square feet) or financial units (e.g., dollars).
Factors affecting productivity can vary across different sectors, but many factors are common
throughout. A study conducted by Carnegie Mellon University identified factors in three
categories:
• Labor characteristics – Age, skill, experience, leadership, and motivation of the
workforce.
• Work conditions – Job size and complexity, site accessibility, equipment use, and other
project-specific factors.
• Non-productive activities – indirect labor, rework, work stoppages, and other activities
not directly resulting in productivity.
The CMU study also identified sub-factors to assess in each of these areas. Labor performance,
for example, can be assessed in much the same manner as employee evaluations – considering
factors such as quality and quantity of work, job knowledge, judgment, communication, and
leadership skills.
To track labor productivity, the CMU study suggests defining a base productivity level for a set
of pre-defined work conditions and comparing that with productivity on subsequent projects. A
labor productivity index can be determined to compare job-site labor productivity under a
different set of work conditions to the base labor productivity. For example, if a contractor can
track how many cubic yards of concrete were placed in a certain number of hours on a
representative project, that rate can be used on future jobs to determine if productivity is
higher or lower than the base level. The labor productivity index – the ratio of labor
productivity under a different set of work conditions to the base labor productivity – provides a
measure of the relative labor efficiency of a project under a new set of work conditions.
A study conducted by the University of Warsaw in Poland built a mathematical model
representing the productivity of construction workers. The model included 17 factors
influencing the productivity of construction workers and categorized them into five groups.
• Time spent outside work – worker absences, time spent with family, etc.

• Weather conditions – temperature, wind, and precipitation

• Psychophysical conditions – stress, fatigue, health, age, and recovery
• Organization and management of the worker – ergonomics, noise, duration of work
shift, salary, organization of work and workstations
• Remaining factors – day of week, adaptation to new operating conditions, new
technology
The previously referenced WLC report concluded that productivity is best measured at the
macro level in terms of gross value added (GVA) per cost of labor and at the micro level in
terms of earned hours divided by actual hours. GVA is the total output minus the value of all
purchased services. The report categorized productivity factors as either internal – those within
the control of a contracting organization, or external – those beyond the control of a
contracting organization.
Internal factors affecting productivity include:
• Delays (e.g., issues related to equipment, sequencing, or work instructions)

• Working hours (e.g., regular hours vs. overtime)

• Size of labor force (e.g., planned or unplanned changes in workforce)
• Selection and training of labor force (e.g., experience and skill level of workers)
• Quality of management (e.g., planning and monitoring of projects and workers)
External factors that affect productivity include:
• Economic cycles

• Regulatory environment and encouragement of creativity

 • Competition
• Promotion of partnering and trusting relationships between client and contractor
• Training within the supply chain

Improving Productivity
Given all the different factors related to productivity, how might contractors make
improvements in these areas? Here are some possibilities, many of which are obvious but
worth reviewing:
• Labor characteristics – Most contractors are already highly aware of the need to have a
skilled workforce. But finding and keeping experienced workers can be a challenge given
the cyclical nature of construction. A focus on retaining employees and minimizing
turnover is one way to build and maintain an experienced workforce. By treating
employees well, you will likely find employees more motivated to do quality work and
remain loyal to the firm.
• Work conditions – Starting at the bidding phase, pursue projects that fit the size and
complexity of your workforce. For active projects, provide adequate site accessibility, a
safe work environment and proper equipment. Field equipment might include high-
quality tools and machinery, personal protective equipment (PPE) and vehicles. In the
office, employees value pleasant surroundings, current technology, manageable
working hours, and flexibility to manage life outside the office.
• Non-productive activities – A certain amount of indirect labor or overhead is necessary
to run any business, but right-sizing this is key to operating a successful business. Much
like the importance of having qualified field staff, maintaining skilled staff to handle
accounting, human resources, bidding, and other management tasks are invaluable. For
small firm owners, you may be challenged to find the right balance of delegating these
tasks and doing them yourself. Other non-productivities, such as rework, can often be
minimized by proper training and addressing previously mentioned issues with labor
force and work conditions.
• Weather – Obviously beyond contractors’ control, the impacts of this age-old nemesis
can be mitigated with proper planning. Know your contract and any weather-related
clauses. When possible, include language that can provide relief in extreme weather
conditions. Technology, such as weather apps on mobile devices, can help with daily and
hourly management of projects.
• Organization and management – Similar to work conditions, seek to run a company
that is sensitive to ergonomics, noise, work hours, compensation and other factors.
Simply put, provide a professional atmosphere for the company as a whole and for
workers on an individual level.
• Technology – In addition to maintaining high-quality equipment and hardware, make
sure you have current software that helps you manage your company and projects.
 Ideally, you want a system that allows project teams to collaborate and share
information in real-time between office and field teams. Strive for a unified system with
streamlined and consistent reporting, instead of fragmented methods that rely primarily
on spreadsheets, email, or hand-written notes.
• Expertise – Seek out expertise in areas you may be unfamiliar with, such as building
information management (BIM). This can help you reach new heights in building
projects more efficiently and intelligently, but like any tool, needs to be in the hands of
qualified, capable workers.
So while labor productivity can be difficult to measure, opportunities for improvement abound.
Identification and awareness of factors affecting productivity provide a good starting point.

Labor Management in Construction

When it comes to construction, it’s important to have a labor manager to help you
organize the project. Managing all the labor can be very challenging. This is mainly
because you want to make sure that you have the right people, with the right
expertise, and are able to have adequate productivity in order to get the job done on
time. Often times, this requires some experience and skill sets from the labor
manager themselves. Fortunately, there are techniques and strategy that the labor
management in construction can take to get the projects done efficiently and on
time.

Labor Management in Construction

Deadlines

The first thing to do is to know the deadline. Usually it would take about six months
to a year to construct a house and could be longer to construct other buildings.
However, you also want to know if the deadlines can change or not. Keep in mind
that in the world of construction, everything is unpredictable. Mother nature plays a
huge role. If it’s raining, your worker's productivity can be compromised. If there are
other issues like the wind, fire, or anything, it can affect the way your workers do
their job. That is why it’s best to talk to the owner about the flexibility of the
deadlines so you will have adequate time.

Size of the Job

You want to observe the size of the job to make sure that it fits well with the
deadline. If the construction involves a huge project, then you want to make sure that
you have ample amount of time. If you don’t have enough time, the quality of your work
can be severely compromised. Therefore, it’s essential to have the experience to
know how long a certain project will take.

How Many People You Need

Based on the size and the deadline for the construction project, it’s important to get
enough construction worker for the job. You want to assess the different roles that
these workers will be and how many of them you need. The good part is that if you
didn’t get enough people, you can always hire more. Sometimes, you would have to
do the project in order to realize that you either have too much work or not enough.

Expertise

It’s important to get construction workers with a good amount of experience and
referral. You want to see what type of projects that need to be done, and what type
of expertise that you’re looking for. This will help you select the right construction
workers for the job.
Once you figure everything out, you can start budgeting. You need to determine the
cost of the material and the amount you will be paying your construction worker per
hour. This will entail factory in the deadline and how many hours a day that they will
be working. Once you get the budget, you have to determine if you have enough
money. If you don’t, then the company will have to provide you with more revenues
to get that project done. Keep in mind that the cost of the budget is usually an
approximation so you might need to pay more or less depending on the situation.

Labour Management in
Construction – What You Need to
Know
Different Types of Construction Contracts
Labour management in construction is a very aspect that every contractor, construction
manager or supervisor needs to fully comprehend. It a very important technique applied by
managers in the management of the construction project. A good management project in
construction needs to pursue vigorously the efficient labour utilization. Proper labour
management promises an availability of labour that is efficient to undertake all construction
works and complete on time with no delays of work. Thus cost and time lose will be reduced.

Labour Management in Construction

The following are some of the main factors that affect labour management in construction:

1. Labour Productivity
Labour productivity here refers to the amounts of services and goods that a worker produces.
For instance, surface finishing, plastering, pouring concrete or bricklaying. Good performing
labour normally leads to high productivity. Good performing labour also is a result of
proper time and material management. The two elements to look at here is the productivity at
the job site and in the construction industry.

Job-Site Productivity: The factors that affect job-site productivity are non-productive activities,
project work conditions and labour characteristics.

Non-Productive Activities: The non-productive activities related to a project need to

established also in order to determine the productive labour yield. Productive labour yield is
the ratio of the direct labour hours dedicated to the completion of the construction project to
the potential labour hours. These activities include strikes, non-working days like holidays,
absentee time including early quits and late starts, time-off for union operations, temporary
stoppage of work as a result of material shortage or inclement weather, the time correcting
undesired work and indirect labour needed to have the progress of the project maintained.

Project Work Conditions: Project work conditions involve local climate local cultural
characteristics, contractual agreement, equipment utilization, labour availability, job site
accessibility and job complexity and size. Also, a set of specific conditions can be utilized to
make an estimation of the labour productivity for each construction and craft type.

Labour Characteristics: What is looked at here include the motivation, leadership, experience,
skills and the age of the workforce. In this analysis, several factors are evaluated including:

• Work Quality

o This is the caliber of work accomplished or produced.

• Work Quantity

o Refers to the volume of work acceptable.

• Job Knowledge

o Manifested knowledge of skills, techniques, methods and requirements

involved performing the job and in applying them to raise productivity.
 • Associated Work Knowledge

o This is the knowledge of the influence of work upon other fields and
knowledge of associated areas that influence the assigned work.
• Judgement

o Soundness of decisions,actions and conclusions.

• Initiative

o This refers to the ability to take an effective activity without being

instructed to.
• Utilization of Resources

o Ability to determine the needs of a project, locate, plan and use efficiently
all available resources.
• Dependability

o This is the reliability in taking up and carrying out obligations and

commitments.
2. Labour Relations in Construction

Out there, there are union construction organizations. In an attempt to navigate through the
unstable economic environment, construction workers have joined labour organizations. These
organizations or unions make workers secure because they help limit the effects of ever-varying
economic conditions.

The Key to Managing Labor on a Construction Site

Labour management in construction is very key in every construction project. Therefore, it is

very imperative that we make decisions to strive for success.

10 Tips for improving labour

management in construction
Effective labour management in construction is essential for avoiding delays and other
inefficiencies. The current situation with COVID-19 has made labour management even trickier
than it already was. Rest assured, however. In this post, we’ll give you some detailed tips for
improving your labour management strategy.

10 tips for improving labour management in

construction
#1. CHOOSE YOUR WORKFORCE MANAGEMENT SOFTWARE WISELY

Good remote workforce management software can help your company effectively
navigate the new construction landscape. While labour management software was
always crucial, it’s even more so now given the additional complexities of tracking
quarantines and the pandemic’s effect on operations. Setting up employment dates is
also essential to keep track of new hires and termination dates as well as gain an
accurate record of availability of your team members.
You should look for software that adequately addresses these concerns along with all
others related to labour management in the construction industry. That may mean
adding new integrations to your existing suite or even changing it altogether. Always
test the software before you implement it.

#2. MAKE COLLABORATION A KEY PART OF YOUR PLANNING

Everyone on your team has the potential to contribute insights that make your
workforce management more efficient. You can’t unlock this potential, however,
until you make a concerted effort to facilitate collaboration. Here are three fantastic
ways to achieve this:

• Increase transparency

• Delegate

• Create agendas that encourage input from your team

#3. PRIORITIZE ALL ASPECTS OF HEALTH AND SAFETY

While COVID-19 continues to be the prime focus of healthcare systems in North

America, it’s more important than ever that you maintain worker safety in all other
aspects. Implement measures to prevent labourers from working excessive hours,
which can lead to underperformance and dangerous mistakes.

#4. PLAN WITH HOLIDAYS AND OTHER WORK STOP/RESTARTS IN MIND

Maintaining momentum is a key part of labour management in the construction

industry. Holidays can throw a wrench in your momentum but are crucial for worker
morale.

The solution is to plan important blocks of work so that they are completed between
holidays. Ideally, workers returning from a holiday should be starting something new
rather than attempting to pick up a task they left unfinished prior to a week of
festivities.
This is among the benefits of using Gantt charts for scheduling. The layout makes it
easier to visualize overlapping activities.

#5. KNOW THE KEY METRICS

Data is crucial to effective labour management in the construction industry. Good

workforce management software will help you pull key metrics from this data.
Your workforce utilization rate is one such important metric, an understanding of
which can help you balance your team’s time efficiently.

#6. MIND THE (SKILL) GAPS

There will invariably be gaps in the skills most job candidates possess and the skills
your company needs. A key part of labour management in construction is creating an
environment that fosters development and moulds workers into what you need.

This is closely related to balancing your workforce utilization rate. Workers that
spend all of their time “putting out fires” (as Stephen Covey called it in his classic
book “The 7 Habits of Highly Effective People”) cannot focus on developing skills that
benefit your company beyond satisfying its most urgent project needs.

#7. NIP UNDERPERFORMANCE IN THE BUD

Labour management in construction isn’t always pleasant. Sometimes you have to

address underperforming employees. This doesn’t have to be confrontational,
though. While worker underperformance can be the result of laziness or
incompetence, it can also be a sign that you’re working employees too hard or not
providing the opportunities for growth that would energize them.

This is connected to item #2 on this list, which was “Make Collaboration a Key Part of
Your Planning.” By involving as many of your team members as possible, you should
be able to identify and address any potential issues that might lead to lacklustre
performance.
#8. MANAGE ALL OF YOUR RESOURCES WELL

Another key aspect of labour management in the construction industry is ensuring

that your team has the resources they need to succeed. You need an effective
strategy for keeping track of where your equipment and materials are being used.
Otherwise, you’ll find that your workers are often left standing around because you
scheduled them for a job that requires equipment already being used elsewhere.

Labour management in construction is not independent of other considerations.

#9. MAP OUT YOUR CONSTRUCTION MANPOWER PLANNING MEETINGS AHEAD OF TIME

Construction manpower meetings are most effective when you have a framework in
place that shapes the conversation around what matters. We’ve all been in meetings
where much was said yet little accomplished. You can avoid that by taking key
initiatives such as allocating a specific team member to lead manpower meetings
and using your software to create a single source of truth that everyone can base
their ideas on.

#10. TRACK KEY PERFORMANCE INDICATORS (KPIS)

Tracking KPIs is among the most important aspects of parsing construction workforce
data. It can tell you what aspects of your strategy are working and which need a
revamp. A lack of understanding regarding KPIs in the construction industry is
partially to blame for the lack of digitization up until this point. Companies are now
scrambling to implement better tracking as key parts of their empires move online.

Why effective labour management in

construction is so important
Improving your labour management process can require some substantial overhauls.
It’s more than worth it, however, for the following reasons.

LESS DOWNTIME
Poor labour management in the construction industry routinely leads to idle time in
which your workers are neither handling pressing tasks nor developing. Of course,
this also costs you money since unions have implemented very strong worker
protections that ensure pay as long as boots are on the job site.

REDUCE OVERALL COSTS

The intersection of labour management with workforce management and other key
areas of running a construction business means that you’ll be much more poised to
reduce unnecessary costs throughout your entire operation.

BETTER EFFICIENCY WITH DEADLINES

Construction is a very deadline-driven industry. Productivity across entire projects

can collapse very quickly when even a single aspect is delayed. Effective labour
management avoids this.

MAINTAIN/IMPROVE YOUR REPUTATION

A good labour management strategy can ensure that your company remains one
people want to work for and with. By hitting deadlines and encouraging worker
development, you’ll really establish yourself as a firm all stakeholders can trust. Said
stakeholders will often ask for data and metrics you’ll only have if you’ve taken
labour management seriously.
 Construction Site Inspection
Checklist for Safety Representatives
This checklist can be used as a guide to help inspect a construction site for common problems. It is not an exhaustive list
of items and will not cover all hazards on all sites. It can be completed in a single inspection or over a series of shorter
inspections. The template can be adapted to suit your construction site or you can use the blank boxes to add in additional
items that you want checked or items that you come across.

Area or Location Inspected:

Date:
Inspected By:

No. Item Yes No Comments

1 Do workers have a safe route to their place of work?
2 Is the site fenced and secure so that the public
cannot gain access?
3 Are members of the public, such as people passing
by the site, protected e.g. from falling materials,
moving machines?
4 Are traffic routes kept clear and are they well lit?
5 Do vehicles have visual and reversing aids fitted
where needed e.g. reversing camera, convex
mirror?
6 Is the site tidy and well laid out?
7 Are appropriate safety signs in place e.g. traffic
routes, authorised personnel, PPE?
8 Are welfare facilities e.g. toilets and canteen,
adequate and are they kept clean?
9 Are First-Aid facilities in place and do workers know
where they are?
10 Have workers been instructed and trained on safe
manual handling?
11 Is appropriate lifting equipment provided for
handling heavy loads; is it suitable for the job,
certified and inspected regularly?
12 Have existing services been identified and protect-
ed e.g. overhead or buried electricity or gas lines?
13 Are electrical systems and equipment maintained
and frequently inspected by a competent person?
14 Is the only power supply being used 110V and are
there adequate transformer points on site?
15 Are collective measures in place to stop workers
and objects from falling e.g. netting, scaffolding?
16 Are scaffolds erected, altered and dismantled by
competent CSCS scaffolders?
 Construction Site Inspection
Checklist for Safety Representatives

No. Item Yes No Comments

17 Are scaffolds inspected at least weekly by a
competent person and the results recorded?
18 Are any remedial works identified during scaffold
inspections complete?
19 Where collective fall protection measures are not
possible, are persons working at height using
appropriate fall arrest/restraint equipment?
20 Are ladders and stepladders used only for light
work of short duration and when there is no other
choice?
21 Have lifts and hoists been properly installed,
certified and checked by competent people?
22 Are all people on site wearing the correct personal
protective equipment e.g. footwear, hard hat?
23 Are suitable protective measures being used to
prevent or reduce exposure to dusts e.g. wood,
cement, silica?
24 Are suitable protective measures being used
to prevent or reduce exposure to noise and
vibration?
25 Is work equipment, plant and machinery
maintained in a safe condition and is it inspected
rk regularly by competent persons?
26 Are plant and machinery safety devices kept in
good working order e.g. sound signals, guards?
27 Are excavations adequately supported to reduce
the risk of collapse and are they inspected before
work starts and given a thorough examination by
a competent person weekly and after alterations?
28 Are people working on site in possession of a valid
Safe Pass card and have they been inducted?
29 Are workers suitably trained and in possession of
a valid CSCS card where applicable?
30 Do all employees get information about potential
risks and control measures in a language and at a
level that they understand?
31 Are there systems in place for consultation with
workers on safety, health and welfare matters and
to support the safety representative?
Additional items / hazards in your Yes No Comments
workplace:
32
33
34
35
 Job Site Layout
Site layout plans are prepared by contractors as part of their mobilization activities
before work on site commences.

These are a crucial part of construction management, as sites can be very complex
places involving the co-ordination and movement of large quantities of materials as well
as high-value products, plant and people. Effectively and accurately laying out a site
can help ensure that the works are undertaken efficiently and safely.

Careful sizing and positioning of temporary facilities can help reduce travel times,
congestion, waiting times, and so on, and help to make the site a more effective
workplace with better worker morale.

Site layout planning involves four basic processes:

Identifying the site facilities that will be required.

Determining the sizes, and other constraints of those facilities.
Establishing the inter-relationships between the facilities.
Optimizing the layout of the facilities on the site.
Site layout plans might include locations for and sizes of:

Zones for particular activities.

Cranes (including radii and capacities).
Site offices.
Welfare facilities.
Off-loading, temporary storage and storage areas (laydown area)
Sub-contractor facilities.
Car parking.
Emergency routes and muster points.
Access, entrances, security and access controls, temporary roads and separate
pedestrian routes.
Vehicle wheel washing facilities.
Waste management and recycling areas.
Site hoardings and existing boundaries.
Protection for trees, existing buildings, neighboring buildings, and so on.
Signage.
Temporary services (including electrical power, lighting, water distribution, drainage,
information and communications technology, site security systems, and so on)
Temporary works (such as propping solutions to retained structures, sheet piling details,
and so on).
Areas for the construction of mock-ups for testing.
Fabrication facilities.
Problems caused by poor site layout planning can include:
Inappropriate storage which can result in damage to products and materials.
Poor siting of plant.
Poor siting of welfare facilities.
Inadequate space provision.
Unsatisfactory access.
Security and safety issues.
Poor way finding (due to complex layouts or inadequate signage).
Demoralized workers, delays and increased costs.
As sites will change in nature during the course of the works, there may be a number of
different site layout plans for different phases, and there may be more detailed plans
showing particularly complex areas or sequences or describing specific functions.

The use of building information modelling (BIM) can help describe the construction site
in three dimensions and through different phases, effectively creating a virtual
construction model.
 PRE-CONSTRUCTION?
Pre-construction services are preliminary planning and engineering services offered
by construction companies before a construction job even begins. This pre-construction
planning stage involves defining the project, identifying potential issues, planning and
scheduling, the scope, cost estimation, and analysis of the job's needs.

What is the importance of pre-construction? Quality pre-construction will help a client

decide if they can follow through with the construction project. During this pre-
construction phase, they may find that the work is either too expensive or not feasible
for the space they have.

If the contractor and client agree that work is viable, the contractor will then provide the
client with a cost and schedule for the construction project.

The pre-construction phase should give the construction team a clear outline to follow
during the job and educate the owner/client on what they will need to do to make their
project functional and expect it to cost. This process helps the client better understand
the project before they even commit to any work being done.

Pre-construction services come at a cost, which will depend on several factors,

including:

• Type of job
• Location
• Scope of project
If the client is unsatisfied with the contractor or isn’t feasible for the client because of
cost or constructability, the client can terminate the relationship before construction
begins.

This is a much better option (and much less costly) than figuring out you aren’t happy
with the work being done, aren’t confident with the contractor’s abilities, or realize the
project’s scope is too large for the allotted space after construction has begun.

OUTLINE OF THE PRE-CONSTRUCTION PROCESS

The pre-construction process is vital to the success of the entire construction project.

Also referred to as the design phase, pre-construction gives owners a full understanding
of the project's cost, scope, and schedule. The project’s success will often be
dependent on this phase before a single nail is driven or brick is laid.

Once you enter the pre-construction process, it’s time to become familiar with the pre-
construction manager.
 WHAT DOES A PRE-CONSTRUCTION MANAGER DO?

Pre-construction managers look after the pre-construction phase.

It’s their job to:

• Form an understanding of the project

• Assemble a team to do the work
• Create a strategy and schedule
• Develop an understanding of the owner’s business goals, and align the project to
match.
While it sounds like a lot, and it is, it’s not that daunting for clients since they don’t have
to do any of the work. To help put your mind at ease, here is a step-by-step look at the
pre-construction process.

WHAT IS THE PURPOSE OF A PRE-CONSTRUCTION MEETING?

The pre-construction process should always start with a meeting between the client and
general contractor.

During this meeting, the two will get a better sense of each other, and the general
contractor will understand the client’s wants and needs. Goals and objectives will be
defined, and any questions or issues the client has will be laid out for the general
contractor to resolve.

The client will give the general contractor their vision for the project, and the general
contractor will then get to work to see if that vision is feasible.

A general contractor will determine the project’s feasibility and assess how much work
is required to get the job done from this initial meeting. Deliverables will be appropriately
defined, and the general contractor will outline a schedule.

WHAT HAPPENS AFTER A PRE-CONSTRUCTION MEETING?

Once the meeting has occurred, the general contractor gets to work on the project’s
pre-construction design phase.

They will go into the field and visit the construction site to produce a digital schematic of
the design and layout. This will then be presented to the client to visualize how the
project will look after construction.

Helping clients visualize their project is essential for the general contractor to land the
construction job. It will allow them to see that there will be sufficient space for all of the
components, equipment, furnishings, and other elements that they want or need.

ASSESSMENT OF ENGINEERING
During this portion of the pre-construction phase, the contractor must look into the
existing conditions of the space or construction site and figure out what needs to be
done for the project.

This will include checking on existing components such as:

• The electric
• Plumbing
• HVAC systems
These checks are necessary to ensure that they will perform in the new construction. If
not, they will need to recommend that these items be updated or replaced.

COST ESTIMATING

The contractor will then put together a preliminary construction budget based on their
design and engineering assessment. But how does the contractor come up with a
number?

Beyond materials needed and whether or not the components listed in the step above
are required, they will also factor in the budgets used for comparable projects. While
this estimate will be another vital part of the process, it’s important to note that the cost
estimation is not necessarily a bid.

The bid document will be prepared later after other parts of the pre-construction phase
are complete, as other elements, such as the final design, will help create a more
accurate bid. Here, the contractor is mainly looking to get a close ballpark to the actual
price so the client can see if the project will be feasible.

FORMING A RESPONSIBILITY MATRIX

The responsibility matrix is used in pre-construction to identify deliverables by all parties

involved and will specifically outline:

• Who is responsible for what

• Who is providing what item
• Who will be handling the installation
Since when the project is underway, the client, contractor, and building owner may all
have a part to play, this responsibility matrix will keep all parties involved on the same
plan and give a clear outline on who has signed up for what.

Clear communication will ensure that the construction project flows smoothly and is
done correctly, on time, and on budget.

DEFINE AN INITIAL SCHEDULE

Now that most of the project scope has been laid out, it’s time to formulate a schedule.
The preliminary schedule serves more as a guide to show the client when certain
aspects of the job will begin and end. As final decisions for the project are made, this
will be fine-tuned, but it gives the client a better idea of the construction timeline.

The contractor will estimate the number of days it will take to complete each task and
provide a rough idea of how long it will take to complete the project.

GUIDANCE & LEADERSHIP

Pre-construction services involve more than just documents that the general contractor
provides to the client. The contractor also will need to guide their client through every
step of the process and educate them on what is going on.

The contractor should talk to the client about their options and give them
recommendations and what the contractor thinks will be best for their budget or meet
their goals.

The ongoing consultations should help the client feel more comfortable about
the construction process and ultimately help the contractor win the bid based on their
familiarity. Not only will it give the client peace of mind, but it will also save time during
the construction phase.

Despite the initial investment, pre-construction also saves money on construction

projects because of the value it provides. Good pre-construction allows for value
engineering and helps prevent arising issues, each of which can be too costly on a
construction project.

Good contractors can provide this guidance because they are the leaders of the project.
They lean heavily on their expertise to anticipate potential issues and provide solutions
to any of these problems. They will effectively coordinate efforts between the owner,
client, architect, and contractor and manage any subcontractors needed for the project.

The contractor should have vast knowledge of all legal issues, permits, and building
codes involved so the project stays straight and narrow. They will also be mindful of
controlling cost and assessing risk throughout the pre-construction and construction
process.

PRE-CONSTRUCTION CHECKLIST
Here are some of the items you can expect to cover during the pre-construction phase:

• Initial meeting to discuss the project

• Planning the design
• Estimating costs and offering cost-saving options
• Managing project scope
• Identifying potential issues & outlining solutions
 • Determine any options for value engineering
• Site selection and study feasibility
• Evaluating soil condition on site
• Checking existing utilities
• Determining equipment required
• Check for green building options and viability
• Life-cycle analysis
• Outlining contingencies for both client and contractor

EXPECTED OUTCOMES OF PRE-CONSTRUCTION

The primary outcomes of pre-construction provide include:

• The scope
• Schedule
• Estimated cost of the project
Having all of these elements accurately outlined gives the client the necessary
expectations going into construction.

The process also helps to make sure the project is feasible, reducing the chances of
encountering issues along the way.

A post-construction phase commonly occurs as a precaution, ensuring issues are

taken care of after the pre-construction and construction phases.

BENEFITS OF PRE-CONSTRUCTION
Pre-construction offers many benefits to both the clients and contractors. The top
benefits of pre-construction include:

• Removal of many unknown variables for the client

• They provide a clear picture of what the project will look like and how it will get
done
• The completion date for the work can be assessed
• It provides the contractor the opportunity to present potential options for cost
savings, which benefit the client.
Evaluating all possible scenarios, upfront gives the client confidence that the contractor
they are working with knows what they are doing. Having realistic expectations helps
avoid issues while the project is underway. It’s a real win-win for everyone involved.

Project Kickoffs + How To Start Projects

Right
New projects can sometimes start off a bit wonky because we dive straight into the
project without getting to know the client or truly understanding some of the tacit, latent,
and informal requirements which might not have been recorded, but without which we
don’t fully understand what needs to be done to succeed.

The project kickoff is an opportunity to establish common goals and the purpose in
completing the work, whether the project is an external project or an internal one. A
kickoff is critical when starting any project, whether complex and multi-faceted or simple
and straightforward. Fundamentally, it’s about alignment.

What Is A Project Kickoff?

The project kickoff is part of the project initiation phase of the project lifecycle. It’s a
critical project management activity that involves preparing the team members and the
client team on expectations, communication, and collaboration for the project.

It informs the project planning phase of the project, and also allows your team and the
client to iron out and finalize details such as project timeline, project management
methodology, success measurement, and more.

Most kickoffs require a series of meetings, both internal and client-side. If your project
doesn’t have a client, kickoffs are still necessary and should involve all project
stakeholders and project sponsors.

Internal Project Kickoffs (A.K.A Team Member

Kickoffs)
You might think of an internal project kickoff meeting as being a quick 10-minute chat
with the internal team in the meeting room just before the client walks in. If you’ve been
managing projects for a while, you’ll know that this is not an ideal scenario.

The purpose of an internal project kickoff is to bring the project team up to speed and
properly prepare them for the official kickoff meeting with the client. As the project
manager, your job is to educate them, bring the team together, set expectations for the
project, and ensure a clear understanding of the project among all team members (and
yourself!).

There’s a lot that goes into an internal project kickoff meeting. You’ll need to prepare an
agenda, gather information and details about both the client and the project, and put
together some initial thoughts on collaboration, communication, teamwork, and more for
the team to discuss.

Once you’ve got the internal kickoff out of the way, the client project kickoff meeting is
next.
 The Project Kickoff Meeting
You can think of the project kickoff meeting as having two parts — a pre-client kickoff
meeting, and a client kickoff meeting.

Here’s a little secret: you don’t want your first meeting with the client or key stakeholder
to be the official kickoff meeting with the full client team and full project team. Instead,
hold a pre-client kickoff meeting first — this is worthwhile for a few reasons:

• You’ll be able to nail down the project approval process without other attendees
chiming in and claiming they need to be involved. If you speak with the client
one-on-one, you’ll be able keep the project approval process streamlined.
• You’ll be able to confirm the statement of work and scope of the project. If you
leave this discussion to the official kickoff meeting with the full client team, they’ll
inevitably try to include or exclude parts of the scope or deliverables that were
already previously agreed upon, forcing you to change your project plan.
• You’ll be able to establish a positive relationship with the client right off the bat,
setting the tone for a good rapport and working relationship as the project
progresses.
• You’ll be able to iron out a few other important details in advance, such
as collaboration tools, what assets will be needed, and the kickoff meeting
agenda.
Once you’ve had the opportunity to have a pre-client kickoff meeting, you’re ready to
move on to the official project kickoff meeting. Of course, there’s a lot that goes into this
too.

Project Kickoff Email

Once you’ve met with the client for a pre-kickoff and prepped your agenda for the client
kickoff meeting, you’ll need to send out that all-important project kickoff email
announcing when and where the meeting will be.

During the pre-client kickoff, it’s a good idea to get an idea of the client’s schedule for
the kickoff meeting. Every project manager has their own strategy for scheduling
meetings, but getting an idea beforehand doesn’t hurt, as you can use this to your
advantage in your email.

Here’s a quick overview of what you should be including in your project kickoff
announcement email:

• Quick recap of the pre-client kickoff meeting

• Date and time (don’t forget to send a calendar invite as well!)
• Location (or video meeting link)
• A list of items the client will need to prepare
 • Any remaining questions on the project team’s end that will need to be answered
before the meeting
Try to send out the project kickoff email in advance, to ensure you leave the client with
enough time to prepare the content and items that you asked for. Also, keep it fairly
high-level — you don’t want to overwhelm the client with a lengthy email (they might not
even read it!).

Don’t forget to follow-up again after the kickoff meeting with an email. This one should
include:

• Recap of the kickoff meeting

• List of next steps and due dates
• List of any remaining questions or concerns on your end or on the client’s end

THE RESPONSIBILITIES OF THE

PROJECT MANAGER
This statement best describes the role of the project manager,
"Having
the right materials, the right labor, the right information, the
right
tools at the right place at the right time." Of course, there are
other
administrative tasks performed also.
This of course is easier said than done. However, this should
be the
goal of every contractor to provide their project managers the
resources needed for a profitable project. Never forget, the
faster you
install a project, the more money you can make.
Here is a basic list of the major tasks of the project manager.
Take
this list and build a template for your company structure and
establish
the best process for the best outcome in your market.
PROJECT START-UP
1. Review and understand the project
2. Obtain permits
3. Pre-construction meeting to ensure successful handoff from
estimating to field.
4. Develop project schedule
5. Project mobilization
6. Materials mobilized
7. Tool up the project
8. Submittals and shop drawings
9. Coordination drawings
2
PROJECT DURATION
1. Plan the work
2. Manage the labor productivity
3. Maintain daily logbook
4. Maintain submittal log
5. Monthly progress payments
6. Attend project meetings – weekly, bi-weekly, monthly
7. Control the scope of work:
• Prevent contract creep
• Prevent contract seep
8. Control the contract
9. Control the costs – material, equipment, consumables
10. Release approved equipment
11. Coordination rough-in inspections
12. Handle change orders:
• Corrective changes
• Impact changes
• Beneficial changes
• Cardinal changes
13. Lead and motivate foreman and workers
• Set goals and expectations
• Visit
jobsite regularly
• Lead them, don’t drive them
• Be available
14. Project Safety
3
PROJECT CLOSEOUT
1. Punch list
2. As-builts drawings
3. Owner and Equipment Manuals
4. Warranty Letters
5. Sub-contractor closeouts
6. Commissioning
7. Final electrical inspection
8. Turn over spare parts
9. Maintain warranty period
The project manager will work closely with the project
foreman in
coordination of many of these responsibilities throughout the
project's
duration.
 PROJECT CLOSEOUT
Project closeout is an important step on every project, but when it comes to construction
life cycles, the final stage is sometimes overlooked. It is especially easy to set these
steps aside when the urgency to complete the project rises and the focus is on the few
remaining construction activities and punch list items.

In this article, we discuss:

• what the project closeout process entails,

• how the successful execution of the project closeout can affect the
team’s overall performance at the project’s completion,
• how the closeout process can hold up the project’s completion, and
• the details of a typical documentation process.

WHAT EXACTLY IS CONSTRUCTION PROJECT

CLOSEOUT?
Construction project closeout is the final phase of the project’s lifecycle. It includes
collecting and packaging all the end-of-project deliverables for presentation to the
owner. It is an important milestone in the project and the relationship as it officially
marks the start of the project’s turnover process.

Common project closeout deliverables include

• Operations and maintenance manuals

• Warranties/Guarantees
• Project record drawings
• Attic stock and spare parts
• Testing, adjusting and balancing report
• Commissioning and testing reports
• Transmittals of purchased equipment/items with a clean title of
ownership to the owner
• Certifications, customer sign-off, formal acceptance/turnover
• Closeout submittals, request for information, change orders, etc.
• Completed punch list items

HOW TO PREPARE PROJECT CLOSEOUT

It is extremely important to check the project’s specifications regarding the
closeout! This helps create a checklist of items to guide the completion and delivery of
all documentation required by the owner and subject to the Architect of Record’s
approval. A closeout meeting is typically conducted with all stakeholders to discuss the
closeout procedures and activities. It is also good practice to establish the roles and
responsibilities of the project team as part of this meeting.

Data collection is probably the most time-consuming task as it entails packaging the
project closeout documents. Generating a timeline with the subcontractors and
suppliers as well as noting the scheduled final activities of the project such
as commissioning, training, substantial completion date, etc., are crucial to acquiring the
necessary information needed to track and remove items from the checklist. A great
deal of time can be saved by activating data collection early in the project.

Finally, it is vital to have a good sense of organization when it comes to handling

and packaging documents. One way of approaching this is to view the organization of
the materials from a layman’s perspective, i.e. organizing the documents in a way that
allows someone not familiar with the project to understand what they are used for. A
good example is a facility manager checking manuals for the troubleshooting
procedures for specific equipment.

Documents should be properly categorized and labeled. The specifications should

define the criteria for categorization and labeling, sometimes including color-coding
schema. In some cases, clients may use systems where they request that contractors
upload their closeouts as PDF files that can be submitted for approval by the Architect
of Record. Nowadays, the industry is relying more on PDF files which can be saved and
handed over on CDs or hard drives, rather than stored as printouts in traditional binders.

WHY IS ON-TIME DELIVERY IMPORTANT?

On-time delivery of project closeout can be considered rare in the construction industry,
but it is doable if the assigned individual has generated a good strategy from the start of
the project. Success is then determined by the individual’s ability to execute the close-
out plan diligently throughout the project.

An early or on-time submission of all project closeouts and approval coming from the
Architect of Record may be the last item required to end the project which in turn
releases the final retainage to the contractor. It is always better to get paid sooner rather
than later. As the saying goes, a dollar today is worth more than a dollar tomorrow.

HOW CLOSEOUT DOCUMENTATION CAN HOLD UP A

PROJECT
Most projects have some unique project requirements, which is why it is so important to
review the closeout specifications! So how can these project requirements hold up a
project nearing completion?

If the assigned individual is experienced in project close-out, the individual will know if
the information in the specifications is updated or outdated. In some cases, projects
nearing completion may experience hiccups if the project requirements are not
realistic or lack clarity which can cause rework with the contractor if not addressed
soon enough.

Another cause of delay in closeout documentation is the lack of proactiveness and

communication from the assigned individual. For example, waiting too long for
project documentation from subcontractors can be detrimental as they may have
already moved onto future project(s) and may not be as responsive.

Lastly, failing to meet the required quality stipulated in the project’s specifications can
cause delay. An approval from the Inspector of Record, Owner’s representative or
Architect/Engineer is required to deem a specific aspect of the project or the whole
scope acceptable. This process is what we call punch list items. Uncoordinated
inspection and lack of teamwork among the participants may also generate multiple lists
of punch items. This may generate more cost, time and labor to the contractor if not
handled properly at the start of the process.

HOW TO PREVENT CLOSEOUT DOCUMENTATION

FROM DELAYING PROJECT COMPLETION
The trick to winning the project closeout game is to stay one step ahead of
subcontractors. An assigned individual knows the construction schedule by heart which
can help recognize which trades are close to completing their scopes of work. Knowing
what is coming makes it easier to start following up for the needed project closeouts
(e.g., warranties, guarantees, approved inspection from the manufacturer if needed,
operations and maintenance manual). This helps set a realistic deadline for submitting
project closeouts based on their respective schedule of completion. It is important that
all this work be done before the subcontractors are paid 100% for their scope.

When sending document requests to subcontractors, suppliers or manufacturers,

respective specifications should be attached in the email indicating what is needed
regarding the scope of work. Oftentimes, subcontractors only send the usual general
inclusions and forget their specific requirements (e.g., extended warranties per their
contract agreement). A good way to approach this is to create and send a checklist of
items to help guide them in providing the correct documents.

THE LAST IMPRESSION IS THE ONE THAT MATTERS

MOST
Even if a firm has an impeccable start and execution in building the project, having an
inaccurate, incomplete, or disorganized project closeout portrays a poor overall
performance to the Owner. A good delivery of the project closeout creates a positive,
lasting impression of how the project team and the firm will be remembered. This in turn
creates more opportunities for repeat business with the client and creates new ones
elsewhere, through word of mouth.

What is a Construction Project

Closeout? An Overview of the Process
Every construction project must come to an end. So, what happens next?

You need to take final steps to ensure everything is complete and that you can safely
hand over the project to the owner. This is where construction project closeout comes
in.

The construction project closeout is often an overlooked phase in the construction

process since you’re working hard on finishing the physical building. So, the last thing
you want to think about is the administration, site cleanup, or change orders.

But if you don’t have an organized system for successful project closeout, you might be
working against your best interests. ,

A critical aspect of the project closeout is getting paid, so if you delay this process, you
can put yourself in severe financial trouble.

Recent reports show that almost 68% of contractors have issues with project closeouts,
which causes a highly negative impact on their profitability. This means that they often
have to extend the end date of their project and get paid late.

If you want to avoid the same fate, read on to learn more about the project closeout
process, why it’s important, and some key components to consider. In the end, you’ll be
able to finish your projects faster and grow your business.

What is a Project Closeout?

Project closeout is a final phase in the construction project management process. It
happens after the physical building has been completed but before you hand over the
project to the owner.

This is often a complex process that covers physical work, administration, and
finances.

A typical project closeout will often include collecting documents, checking

specifications, cleaning up the job site, and closing all existing contracts.
All of these activities need to be done, so you’re meeting the necessary project and
contract requirements.

Additionally, any changes and problems you encounter need to be resolved before the
owner takes over.

So, how long does a project closeout take?

According to a survey from Michigan State University, you can expect an equal amount
of time spent on project closeout as you did on the physical completion of an entire
project.

For example, if it took you six months to complete a residential building, you will
probably spend up to six months on the project closeout process.

As you can see, project closeout is not an easy task, and you must start thinking about
it before the shovel hits the ground.

Why is Successful Project Closeout Important?

Did you know that almost 60% of contractors are experiencing delays on their projects?
What’s worse is that only 31% of projects were completed within budget.

How does this affect project closeout?

It’s simple. Successful closeout equals successful project completion.

So, any inefficiencies require additional paperwork, which can prolong and complicate
project closeout. Thus contractors are experiencing project delays and overspending.

But there are other reasons why successful project closeout is important.
First, you’re contractually obligated to conduct a thorough project closeout process.
Both private and public contracts will have details about this process, and you should
stick to them.

Then, project closeout is a time-sensitive process. It requires so much time and

dedication to do it right, so you should start it as soon as possible.

That way, you avoid delaying the completion of the current project, and you can
delegate resources to other projects.

Finally, we can’t overstate the importance of the financial benefits of a successful

project closeout.
In other words, if you can’t complete project closeout on time, you’ll be faced with
penalties, permit extension fees, and paying your subcontractors late. This can impact
your company’s cash flow but also your reputation.

The bottom line is, if you want to have a successful construction business, you have to
ensure successful project completion on every project you undertake.

Types of Closeouts in Construction

As mentioned before, construction project closeout is a very complex process. It covers
a wide range of areas you need to tackle for successful project completion.

Approach each of them in the right way to ensure you’ve solved all problems, so your
clients are satisfied with the final results.

Project Closeout

During this step, you’re handling the documents that will confirm you’ve met all project
requirements.

It is essential that you check any change requests and review your initial
documentation. That way, you can be reassured all work has been completed, and
you’ve fulfilled your obligations.

When you’re starting this process, one thing to consider is to invest in good software
that will optimize your workflow and help you track down important paperwork.

Client Closeout

This is an excellent opportunity to present yourself as an organized, reliable, and

customer-focused contractor.

During this step, you should give the client all necessary paperwork, including
warranties, records of project changes, and equipment information.
You’ll undoubtedly impact their satisfaction levels if you can provide an in-depth
overview of the project and assure them you’ve done everything according to the
contract.

Additionally, you can also ask for feedback and address any final concerns clients may
have. This will serve you as a guide for your future projects but also boost the
impression you’ve made on your clients.

Organizational Closeout
This part of the closeout will require removing your equipment and employees from the
worksite.

Notify your employees and subcontractors when they’ll have to leave the site and
delegate them to your other projects.

You will also have to do inventory for your tools and equipment to make sure every
asset is accounted for.

You don’t want to risk client complaints and project delays at the last minute because
you didn’t remove an excavator from the site. Take great care that all your equipment
and workforce are removed before your client sees the final project.

Subcontractor Closeout

Before you pay your subcontractors, you must verify that their work was completed and
has consistently met the required quality standards.

Additionally, if there are any change orders, make sure they’re also completed before
releasing your subcontractors.

Once you review their work and are satisfied with it, cover any payment amounts and
invoices you owe them.
You can also provide them with feedback for the job and make a list of subcontractors
you’d like to work with in the future.

Team Closeout

The final step is to consult your team and evaluate the success of the project.

What have you learned during the construction? Were there any problems you can
avoid on future projects? How can you optimize your future project operations?

Having good communication with your team can ensure you’re not making the same
mistakes in the future.
Also, it helps to show appreciation for their contribution to the project. Your team will
certainly be more eager to work with you on the next project if you say a simple thank
you.

Components of Project Closeout

There are different components you’ll need to consider that will make the project
closeout process easier. These components include paperwork and on-site tasks.

Punch list
A punch list is a document that outlines tasks that need to be completed or minor fixes
that occurred during construction.

Essentially, a punch list is here to help you stay on track with final fixes and changes, so
you keep the project within the estimated timeline and budget.
This also requires a good collaboration between the project manager, general
contractor, and subcontractors.

Use a punch list to take care of any loose ends before showing your work to the client.

Inspections

After you finish the construction and minor fixes, you need to conduct final inspections.

The project manager needs to coordinate meetings with authorities to look at the
completed structure and identify any issues.

There are several inspections you’ll need to perform to ensure you’ve completed the
work in a quality manner:

• Foundation
• Final plumbing
• Final electrical
• Final mechanical
• Framing and exterior sheathing
• Above ceiling
Once you pass inspections, you’ll receive closure for permits that you must include in
your project closeout paperwork. Keep in mind that any missed inspections will delay
project closeout.

Document Collection

During project closeout, you’ll need to handle a lot of paperwork. This is unavoidable
because you need a written record of everything that happened during construction.

Everyone who worked on the project, from the design team to subcontractors, will need
to provide their paperwork so you can collect them in a final documentation file.

Here are some of the documents you’ll need to have in this stage:

• Concept Documents
• Submission Documents
• Construction Plans
• Developmental Phase Documents
• Operation and Maintenance Manuals
• Requests for information
 • Certificates for any inspections
• Certificate of Occupancy
• Safety Documentation
• Warranty Documentation
• Distribution Phase Documents
• Government or Environmental Agency Documentation
• Lien Waivers
All of this documentation should be proof of the project’s final results and archived for
future reference.

Finances

To consider a project closeout officially complete, final payments should be made. This
usually means that retainage is released, and all parties receive what they’re due.

Retainage or retention is a percentage of the contract price that is paid after the project
is completed.

This was originally invented to protect owners from shoddy construction work, and it is
still in practice today.

So, to speed up the closeout process and get paid, many contractors use preliminary
notices and mechanics liens.
In fact, almost 51% sent a preliminary notice in 2021, and the industry is widely
accepting of this practice.

Potential Risks During Construction Project Closeouts

In an ideal world, you’d complete the project closeout quickly and without issues. Sadly,
problems are likely to pop up unexpectedly with so many moving parts and things to
consider before project handover.

The most common issue is poor communication. As the project slowly winds down,
different team members are beginning to move to other jobs and projects, which causes
important information to be withheld.

This frustrates people and inevitably delays project closeout because documentation is
not sent on time.

It is essential to maintain good collaboration and communication between each

team member, from supervisors to subcontractors, to ensure the current job is
fully completed before they move on to the next one.

Following that, losing important documentation is another common problem. No matter

the scope, initial data and files are lost by the time you complete a project.
But what is worse, contractors are not regularly collecting information during the
construction process. This further prolongs the project closeout because important
information is missing, and they have to record it afterward.

These problems might seem like a large obstacle in successful project closeout, but you
can overcome them if you plan for them on time.

Project Closeout Checklist

If you reached this part in the article, you’re well on your way to conducting a successful
project closeout!

But to make this process a breeze, here’s a handy checklist you can use to make sure
you’ve completed all the steps.

• Collect and organize documents

• Review change orders
• Complete a punch list
• Ensure project meets required specs
• Demobilize workforce and equipment
• Handover to client
• Address feedback
• Complete open contracts
• Archive project plan
Keep this checklist close to you, so you’ll streamline your project closeout process and
move on to the next project faster.

Conclusion
The key to successful construction project closeout is organization. It starts before
you’ve stepped foot on the construction site, and you should include it in your initial
planning process.

Project closeouts can get complicated and cause unnecessary delays. So, collect
documents on time, keep track of your project’s progress and note any change orders.

The more you’re prepared ahead of time, you can ease the transition and experience
fewer issues when it’s time to deliver the project to your clients.

Remember that construction projects involve many people, a pile of documents, and
regular inspection to make sure you’re adhering to codes. If everyone is on the same
page from the start, this final phase will be easier to manage.
Subcontract Management Plan
for

<Project>

Version 1.0 draft 1

Prepared by <author>

<organization>

<date created>

<Change the footer and header text to reflect the correct © {Year} {Company name}..>

© {Year} {Company name}.. All Rights Reserved.

Subcontract Management Plan for <Project> Page ii

Table of Contents
Table of Contents ............................................................................. Error! Bookmark not defined.
Revision History............................................................................... Error! Bookmark not defined.
1. Overview ..................................................................................... Error! Bookmark not defined.
2. Abbreviations, Acronyms, and Definitions ............................. Error! Bookmark not defined.
3. Project Organization ................................................................. Error! Bookmark not defined.
3.1 Staffing .............................................................................. Error! Bookmark not defined.
3.2 Interfaces to Supplier ......................................................... Error! Bookmark not defined.
3.3 Decision-Making ............................................................... Error! Bookmark not defined.
4. Communication Plan ................................................................. Error! Bookmark not defined.
5. Project Tracking and Oversight............................................... Error! Bookmark not defined.
5.1 Status Reporting ................................................................ Error! Bookmark not defined.
5.2 Metrics ............................................................................... Error! Bookmark not defined.
5.3 Risk Management .............................................................. Error! Bookmark not defined.
5.4 Commitment and Issue Tracking....................................... Error! Bookmark not defined.
5.5 Senior Management Review.............................................. Error! Bookmark not defined.
6. Change Management................................................................. Error! Bookmark not defined.
7. Product Acceptance and Transition ........................................ Error! Bookmark not defined.
7.1 Product Acceptance ........................................................... Error! Bookmark not defined.
7.2 Transition to Support ......................................................... Error! Bookmark not defined.
7.3 Requirements Tracing ....................................................... Error! Bookmark not defined.

Revision History
Name Date Reason for Changes Version
initial draft 1.0 draft 1

© {Year} {Company name}.. All Rights Reserved.

Subcontract Management Plan for <Project> Page 1

<Note: This template contains guidance text, shown in italics. When creating a subcontract
management plan from this template, remove the guidance text and insert your own specific
information for the project. Use normal font, not italics.>

1. Overview
<Briefly describe the project being outsourced. Identify the supplier company. Describe any
specific outsourcing issues or concerns that will require particular attention as part of
managing the outsourced project.>

2. Abbreviations, Acronyms, and Definitions

<List any specialized terms or abbreviations and their definitions.>

3. Project Organization

3.1 Staffing

<Identify the individuals at the acquirer company who are participating in the
outsourced project. The key roles will include the project manager, subcontract manager,
technical lead, test lead, configuration management manager, quality assurance
manager, and requirements analyst or product manager. If the project is a collaborative
development effort between the supplier and acquirer, also identify the roles and
individuals involved in doing the development and testing at the acquirer site.>

3.2 Interfaces to Supplier

<Identify the principal points of contact between the supplier and acquirer at the project
management level (the acquirer’s subcontract manager and the supplier’s project
manager), the senior management level, and the technical level.>

3.3 Decision-Making

<Describe who will make major project decisions, including scope change, issue and
conflict resolution, final product acceptance, and the change control board. Describe the
decision-making process that each will use, such as voting, consensus, unanimity, or
delegation to an individual.>

4. Communication Plan
<Describe how periodic and event-driven communications will be handled with the
supplier. Define the communication methods to be used, such as phone, e-mail,
videoconference, face-to-face, and Web-based tools. Address the frequency, content, and
format of face-to-face meetings, regular teleconference meetings, technical peer reviews,
and management status reviews. Estimate and budget for the costs of these long-distance
communication activities.>

© {Year} {Company name}.. All Rights Reserved.

Subcontract Management Plan for <Project> Page 2

5. Project Tracking and Oversight

5.1 Status Reporting

<State the expected frequency of written status reports from the supplier (weekly is best),
to whom they are to be delivered, and the delivery mechanism (e-mail, fax, etc.).
Describe the contents and organization of the status reports, perhaps by referring to a
specific template to be used. Also describe internal status reporting that the subcontract
manager will do within the acquirer company to project management and senior
management. Indicate how the acquirer will monitor, evaluate, and use the status reports
to identify issues, monitor risks, and trigger necessary interactions with the supplier.
State how the supplier is to provide updated plans if necessary.>

5.2 Metrics

<Define the project status tracking metrics and charts that the supplier is to supply and
the frequency of metrics reporting, if they are not included in the regularly scheduled
status reports. Common metrics categories are:
• Size (lines of code, function points, classes, number of requirements, size of
executables)
• Time (planned and actual duration between milestones)
• Cost (planned and actual expenditures to date)
• Defects (number of defects found, open, and closed; defect origin and classification)
• Status (percent of requirements implemented and verified; satisfaction of performance
or other quality goals)>

5.3 Risk Management

<Identify the individual at the acquirer site who is responsible for managing risks on the
project. This might be the subcontract manager. It is often a good idea to have someone
other than the project manager coordinate risk management. Describe the risk
management activities that the acquirer will perform to identify, document, analyze,
prioritize, mitigate, and monitor risks throughout the project. Describe how the supplier
is to report risks they identify and to provide updates on risk status as part of project
status tracking.>

5.4 Commitment and Issue Tracking

<Describe how the project will document commitments and issues. Commitments need to
be made explicit and tracked to closure. Issues need to be made visible, resolved, and
tracked to closure. Unresolved issues might need to be escalated to senior management.
If the escalation process is not described in other project documents (e.g., the statement
of work or contract) , describe it here.>

5.5 Senior Management Review

<Indicate the frequency, purpose, participants, and contents of periodic senior

management reviews. Define the conditions that will trigger special senior management
reviews or meetings between the acquirer and supplier senior managers.>

© {Year} {Company name}.. All Rights Reserved.

Subcontract Management Plan for <Project> Page 3

6. Change Management
<Describe how requested changes in requirements, designs, technologies, or other aspects of
the project are to be submitted and evaluated. It is preferable for the supplier to have access
to the acquirer’s current change control tool so that all changes are handled similarly,
regardless of their origin. Refer to the applicable change control process that will be
followed. Identify the change control board that will evaluate and make decisions about
proposed changes.>

7. Product Acceptance and Transition

7.1 Product Acceptance

<Unless they are documented elsewhere, summarize the activities and procedures for
evaluating and accepting deliverables from the supplier. Indicate how issues and defects
from the acceptance activities are to be reported to the subcontract manager and to the
supplier. State how final acceptance of the deliverables is to be reported so the contract
can be brought to a close and final payment made to the supplier. Identify the individuals
who are responsible for performing all product acceptance activities.>

7.2 Transition to Support

<Identify the organization that will be responsible for supporting the delivered product.
Describe the steps involved in transitioning the accepted deliverables into the acquirer’s
environment, into production operation, to manufacturing, or to the ultimate customer.
Show the anticipated schedule and effort for these transition activities. Identify the
individuals who are responsible for executing the transition activities.>

7.3 Requirements Tracing

<Describe the way you wish to view requirements traceability information that will
indicate where each functional requirement was addressed in design, code, and test
elements of the system. Indicate the requirements traceability tool to be used, what
traceability reports are to be generated, by whom, and at what frequency. State who is
responsible for providing each kind of traceability information; both the supplier and the
acquirer will likely contribute some of the data.>

© {Year} {Company name}.. All Rights Reserved.

 Quality Control in Construction
(this link opens in a new window/tab)
When it comes to construction, maintaining quality standards is high on the priority list.
Since construction companies rely on the quality of their work in terms of working
capital, quality control is one of the most critical aspects of any project.

A great final product can mean repeat business and ideal cost control. However, a low-
quality job can cause a construction company to damage their good reputation, incur
extra construction costs, and have other negative impacts on the organization as a
whole.

Poor quality work has repercussions that extend to safety and communication in
addition to wasted time, resources, and materials. Adequate quality control procedures
improve construction project efficiency and can even cause a ripple effect of high
expectations throughout an organization.

Defining Quality Control in Construction

Construction quality control is a system of management that ensures that deliverables
meet the standards and guidelines set by the client at the beginning of the construction
process. This can include a number of criteria such as completing the project within the
scope of work. In the end, quality is decided by the client, regulatory bodies, and EPA
guidelines.

Quality control and quality assurance are two equally important arms of construction
quality. While assurance refers to setting quality management expectations, quality
control refers to the plans and procedures that achieve high-quality outcomes.

Issues arise in construction quality control when the factors affecting the quality are not
properly identified and addressed. Quality control in construction seeks to solve
problems, provide high-quality results, and prevent issues from coming up again in the
future.

Construction Quality Control Approaches

There are a number of ways to approach quality control management in construction,
with each having its own pros and cons depending on the needs and scope of a
company’s projects. The International Organization for Standardization established a
set of quality standards called ISO 9001.

These seven standards are based on the engagement of people, customer focus,
leadership, process approach, improvement, evidence-based decision making, and
relationship management. Additionally, there are four other main approaches to quality
control management in construction:

• Continuous improvement. Focuses on continuous incremental

improvements to processes over time. Improvements are
discovered through customer feedback and internal analytics
processes.
• Kaizen. A Japanese word that means “change for the better,”
Kaizen refers to a philosophy of continuously looking for ways to
improve that is applied to quality control management. When all
members of an organization implement Kaizen to their daily
practices, gradual improvements can be seen over time.
• Six sigma. This problem solving framework focuses on proactively
identifying and solving issues that arise. The main steps to this
quality control management approach are Define, Measure,
Analyze, Improve, and Control.
• Lean management. Waste elimination and reduction are key
factors to this approach. Waste is determined by extraneous
processes and materials that don’t provide value to customers or
construction companies.

How to Ensure Construction Quality Control

Constructional quality control definitions vary slightly between organizations, but there
are some things that all construction industry professionals must take into consideration
when implementing quality control management protocols:

Define the expectations and acceptance criteria

Before implementing quality control procedures, it's important that the quality standards
are clearly defined so that all parties involved in the project can have a clear
understanding of what the client expects to see in the finished work. These expectations
should include key acceptance criteria such as completing a project with zero defects
that satisfy regulatory codes and client specifications.

Have an inspection plan in place

Inspections should take place regularly as a part of a thorough quality assurance plan at
different points in the construction process. However, before conducting any inspections
it's crucial that organizations create a plan that details what needs to be inspected and
what an acceptable result looks like. All completed work should meet client criteria,
company expectations, and any other indications brought forth by invested parties.

Create a quality control checklist

Quality control criteria and expectations can be difficult to communicate and manage
across teams without a standardized quality control checklist. A checklist simplifies the
inspection process, making sure that critical aspects of quality control are not looked
over as well as clearly communicating areas of concern and what tasks each
construction team member is responsible for.

Correct inaccuracies and deficiencies

The whole point of implementing quality control management procedures is to ensure

that construction work meets company and client standards. So perhaps the most
important aspect of any quality control management plan is to make time and tools
available to make corrections and address deficiencies as they arise. Continuous
monitoring of teams and construction sites as well as regular inspections allow for
opportunities to discover work that does not meet expectations before it is completed
and presented to the client.

Review and analyze problems and their solutions

During the process of monitoring progress and inspecting deliverables, issues and
problems will be identified along the way. In addition to mitigating these issues as they
arise, it’s a good idea to include a step for construction project managers to review how
each job went and analyze how these problems can be avoided in their next
construction project. When conclusions are made regarding these issues, quality control
managers need to communicate to the entire crew what the new expectations and
quality requirements may be for projects to come.

Tips for Creating a Construction Quality Control Plan

Here are some final tips before you begin collaborating to either create a quality control
plan or make adjustments to your existing construction industry quality program.

Communicate clearly and effectively

Communication and quality control go hand in hand, and this can’t be stressed enough.
Without a plan to effectively communicate policy, compliance, safety standards, and
building expectations, quality control will be an endless process. Quality control should
be a part of all communications and discussions about project specifications, and all
contractors and involved parties should clearly understand what is expected of them.

Project managers need to identify what kind of communications, how frequent these
communications occur, and the manner in which messages are transmitted across the
organization. Any monitoring and surveillance activities must be clearly indicated within
your quality control plan, as well as expectations placed on subcontractors and
suppliers.
Communications with builders and clients must also be exceptional because clients are
the deciding factor of whether or not a project was executed according to their
standards. When construction project managers collect client specifications there
should be a plan in place to communicate these expectations with crews and individuals
that are affected.

Have a backup plan

Having a backup plan (or multiple backup plans) is often overlooked, especially when
processes, suppliers, and workflows have become well established over a long period
of time. But as we well know, no construction project ever goes according to plan.
Having a back up plan or a series of backup plans in place and communicated to
applicable teams can help avoid costly mistakes and tough client conversations.

Record any backup plans within a management system and keep a record of when and
how any of these back up plans were implemented. Making sure all parties are on the
same page with defined backup plans ensures quality construction.

Use technology to streamline processes

In light of the current supply chain environment that is plagued by disruption and slow
communications, construction industry professionals would be wise to invest in tech
solutions that can help make construction quality control management more streamlined
and efficient.

Many of the practices involved with quality control management involve careful planning
and execution as well as unmatched communication protocols. Technology can help
construction companies enhance quality control management with features like
automation, accessibility and visibility.

Analyzing data is an important part of reviewing quality control processes and making
improvements along the way. Platforms that provide a holistic view of data in a single
interface provides insights into new areas so that information gathered from multiple
projects, vendors, and suppliers can be turned into actionable information.

According to McKinsey, inefficiencies and wasted resources are common among

organizations that rely on manual processes instead of automatic data processing.
Bringing technology into the construction quality control management process can
reduce efforts, lower costs, and build trust between construction companies and their
clients.

FAQS
What is the role of quality control in construction?
In construction, quality control refers to the processes and procedures that are involved
to ensure that all materials and completed projects meet high standards and criteria that
are put in place during the planning stages of the process. Quality control processes
ensure that customer, builder, stakeholder, and other involved parties’ expectations are
met and company standards are upheld.

What is the quality control process in construction?

The quality control process in construction includes 5 key steps:

1. Define and communicate acceptable criteria.

2. Create an inspection plan.
3. Use checklists and notes to conduct inspections.
4. Correct deficiencies and verify acceptance criteria.
5. Analyze to prevent future deficiencies.

How do you manage quality control in construction?

Managing construction quality control requires that several teams of people are
organized towards successfully achieving quality construction projects. A quality control
manager will be heavily involved in every step of managing quality and inspections and
will need to be communicative with teams, clients, and contractors. When acceptable
criteria are established, so should the role of the quality control manager and other
contacts on the project so that proper communication can be established.

Quality control procedures in

construction
What are construction quality control procedures?
Construction quality control is at the heart of the construction industry. Construction
projects create and deliver the assets and infrastructure which people rely on to move
around and conduct life safely. Because of this - every supply, every piece of equipment
and every activity conducted on construction projects must be conducted in such a
manner that quality can be almost guaranteed. And where it can't, there must be
adequate testing in place to catch these mishaps and rectify them before the end of the
project or end of that phase of works.

Quality control procedures are a code of guidelines (usually written down and
kept in quality documentation) which set and establish the quality standards and
norms which ensure consistent quality across the company and across projects.

Many of these quality control procedures don't originate in thin air and aren't down to
interpretation. They are often minimum standards derived from standards set by
authorities, governing bodies and governments. In fact, your quality control procedures
are often simply aligning your project and company activities with these ISO and other
standards - and then bolstering the edges and inputs where required.

What is the objective of quality control procedures?

It can be easy for companies to get caught up in documenting and creating quality
control procedures for the sake of it and making it up as they go along. It's important to
ground these documents, both when creating and maintaining them in the overarching
objective of delivering better work, every day.

And the way in which companies do this is by creating systematic and uniform
approaches to getting work done. Without these processes, there is too much room for
interpretation amongst teams and the standards of the organisation aren't clear. While
there is always an established minimum standard for work, construction companies -
and particularly successful ones - raise the bar for quality on a consistent basis.

So the objective of quality control procedures is to establish the quality requirements of

your company and workers whilst seeking to continuously improve the quality of work
over time.

The goal of writing these procedures down and putting them onto paper is to ensure
internal and external consistency. Often times, these procedures - especially on the
construction industry - are incredibly complex and multi-faceted. They need to be written
down to be properly understood and applied.

Implementing quality control procedures on your

construction projects
So the mechanisms for creating and 'keeping' these quality control procedures
are quality policy and procedure documents. These documents can long and short,
and contained in word docs, PDFs, excel spreadsheets and more.

But these documents in and of themselves do not create quality work. Workers may
read them and see them on a daily basis, but it's at the project execution level where
the rubber meets the road and where quality either hits or misses.

Your quality control procedure documents should contain information and guidelines as
to how total quality management will be maintained including:

• Physical quality guidelines

• Inspections, approvals and certifications
• Inspection and test plans and certificates
• Methods and sequence of tests
• Acceptance and rejection criteria
 • Key control points
• Performance specifications
• Visual quality
And then you will implement these procedures through the daily processes of your
workers: engineers, foremen and project managers.

These workers are capturing, organising and tracking what's happening on your
construction projects, and they are the real extension and implementation arm of your
procedures.

They are documenting the inspection test plans; they will create and communicate snag
lists; they will initiate hold points and witness points and monitor all aspects of quality
management.

You may also have some intermediary quality documents which sit between these
execution layer and the procedures - such as the project quality management plan
below. These documents establish specific plans and processes for each unique
project.

Policies and procedural documents will often be linked to and reference the high level
quality control procedures to ensure consistency.

But your quality control procedures will be generally two pronged:

1. Quality control procedures sets the quality plan, strategy and

guidelines for work
2. Quality control processes enable companies to adhere to these
procedures and achieve their quality goals by implementing these
procedures on a daily basis
 The road to total quality management
Your quality control procedures and processes form an integral and central part of your
overall quality management plan and quality management system. In some part, this
quality management system or your quality control procedures will also incorporate the
people involved in maintaining quality at your organization (everyone is involved at
some level) and a description of the key activities which you conduct.

How many quality procedures and processes you document will largely be based on the
clients and contractors you work with - as well as the nature of work you conduct.

But beyond what is necessary to simply win and conduct work, the practice of creating,
maintaining and discussing your quality control procedures is a good one. It forces
management and teams to think about ways in which quality could be improved, from
day-to-day materials and inspections all the way through to internal and external
auditing.

The more integrated your quality control procedures are with the daily execution of work
and quality record keeping, the easier you will be able to track performance, understand
what's working and make improvements.

Safety management is a constant work in progress - and your quality control procedures
should be too.

Quality control plans vary in length and purpose depending on what a client or
contractor is looking for from their subcontractors, but there are a number of standard
elements which most if not all quality management plans will at least cover at a high
level:

• How project personnel will be managed to ensure quality

• Quality communications
• Quality assurance
• Ensuring quality from other subcontractors and suppliers
• Project quality specs/KPI's/objectives
• Inspections and tests
• Control of non-conformances
• Project completion inspection and rectifications
Quality control plans are extremely important for the success of a project, and also for
your success as a company. A good and thorough quality control plan will win you more
work, enable the client or contractor to feel happy in how project quality will be managed
- and confident that project delivery will be what they expect.

This construction quality control plan serves as a strong baseline framework for all of
your quality control plans, and can be easily customized to suit each client, contractor
and project. Simply edit the main fields and align the questions and sections with what
your client or contractor is looking for.
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Weekly Safety Meetings

Documenting Weekly Safety Meetings

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 Scheduling
What Is Construction Scheduling?
A construction project schedule is either a written or graphical representation on how
the project is to be completed or constructed. When I say written, it could be a written
narrative. It could be a description. It could be depicted as a bar chart schedule or a
CPM schedule.

A construction schedule is analogous to a contractor’s bid. Just as a contractor’s bid is

an estimate of its cost that it expects to spend to build the project, the schedule
represents an estimate of the time required to construct the project.

What Is A Construction Scheduler?

The construction scheduler is the person on the project who is responsible for
developing and updating the project schedule.

There are really two types of schedulers. One is a button pusher, someone who takes
the information from one party and inserts it in scheduling software like Primavera,
Microsoft Project, or Asta Powerproject.

The second type is what I would call a professional scheduler. That’s someone who
knows and understands construction means and methods, as well as the capabilities of
the software. Most importantly, they also understand what construction scheduling best
practices are and how to incorporate them into the project schedule.

Too often projects don’t have a professional scheduler who can pull all those elements
together. Bringing on such a person does not guarantee project success. But the right
professional scheduler can work with the project manager and the project
superintendent to ensure that the plan residing in their heads is accurately depicted in
the project schedule and will protect the contractor’s risk.

Construction Scheduling Basics

In nearly every case, a construction contract will require the contractor to complete the
project within a specific duration or by a specified completion date.

For every construction project, there is a lot of work that must be done before contract
completion.

The construction project schedule provides a detailed description and representation of

how the contractor plans to construct the project’s work scope. That work scope is
represented by the schedule’s work activities, how long they’re going to take, and their
sequence. One thing to remember is that a construction project schedule is the only
project management tool that can forecast when the project will finish.

The construction schedule should predict, based on the contract, the plan, and how the
work should progress to forecast, when the project is expected to finish.

Why Do We Need Project Schedules?

Increasingly, over the last 15 or 20 years, construction owners have required that
contractors prepare schedules during the construction project. There are two primary
reasons for this trend.

First, as projects become more complex and have tighter budgets, we need schedules
to help us manage our construction projects. As a construction project management
tool, a schedule enables the project participants (not just the owner, the contractor, the
engineer, or the architect) to understand the plan for completion. It allows the parties to
coordinate all the elements of the work.

To some degree, this trend has also been driven by litigation. Time is money. Every day
a construction project is delayed, either the owner, and/or both the owner and
contractor, will incur additional costs to support that project. Therefore, we need a way
to measure to what extent the project is delayed.

The schedule allows us to identify not just what the work is, but the responsibilities of
each party, and the party responsible for each of the activities.

It allows us to track performance. Ultimately, having a reasonably accurate schedule, be

that a bar chart or a CPM schedule, will also enable the project participants to identify
and resolve project delay as it occurs.

The last thing you want to do is ignore time-related issues during the project and have
the parties kick the can down the road. This will often result in a claim being submitted
because time wasn’t resolved, the project finished late, and the parties can’t agree as to
the cause of the delay. This can and often does result in unnecessary money spent in
litigation.

That is not a recipe for success on construction projects. We want to finish projects on
time and on budget. A way to do that is to address delay as it occurs during the project.

What Is Critical Path Method Scheduling?

The most commonly used construction scheduling technique is the CPM approach. This
approach models or depicts the construction plan in what is called a network. This
network consists of activities and logic relationships that determine the overall sequence
of construction.
In a CPM schedule, “activities” depict every element of work in the project, be it
preparation, submission and review of submittals, procurement, or construction. We
connect those activities with “logic relationships.” For example, the schedule may depict
that one activity can start only after another is finished. The combination of the work
activities, their duration, the logic in the schedule, and a mathematical formula allow us
to predict when the project will finish.

A nice thing about the CPM schedule is it allows us to model both the physical and the
contractual limitations or constraints on a project. As an example, especially on larger
and more complex construction projects, we can develop a CPM schedule that
integrates contractual limitations on work during certain time periods, like environmental
restrictions or winter weather.

A CPM schedule also enables the project team to prioritize the uncompleted work,
based on the activities’ total values, and to assign the available resources to complete
the work in the most efficient manner. It also allows us to:

• Assign responsibility, costs, and resources to each of the project activities.

• Forecast the expenditure of costs on an earned value basis.
• Forecast the expenditure of hours, direct labor hours, over the course of the
project.
• Track whether we’re achieving those expected rates of production or earning of
the contract amount.
Compared to a bar chart, a CPM schedule is a much more comprehensive tool that
project teams can use to plan and manage projects. The number of activities in your
CPM schedule often comes down to the level of detail you choose to represent, the
project’s size, or its complexity.

MS Project

Primevera

Spreadsheets available

https://www.examples.com/business/construction-schedule.html
 Subcontractor Coordination – Contractors
A Construction Schedule is more than a master plan, it is means of coordinating
and communicating between the Project Team and Subcontractors. When done
correctly, the schedule is a very powerful, and dynamic Management tool.
Considering that a schedule while a document to inform stakeholder it is also a
legal document that if something should go wrong on a project has the potential
to provide supporting documentation.

By coordinating a schedule with subcontractors, the subcontractor can develop a

better understanding of the plan to complete the project. During the
development of a schedule it is important to have subcontractors included on the
scheduling process to make sure that there are not conflicting activates occurring
at the same time. Again, the best way to determine if there are conflicting
activities on a job-site is to consult with the subcontractor performing the task.

Just as important it is to consult with your subcontractors as to completing the

task they are performing. Completing a project schedule should be done with the
consultation of a trained and professional constructions scheduler. By having a
professional scheduler on site, the critical path can be maintained and logic can
be adjusted accordingly to completing the project.
Subcontractor management is among the most important aspects of any general
contractor’s work. Keep reading as we share a few tips for managing
subcontractor performance and scheduling efficiently.

What is subcontractor management?

Subcontractor management is the process of procuring subcontractors and
overseeing their work on behalf of a client. In construction, general contractors
are responsible for this.

The subcontractor management process takes place in four phases:

1. Pre-award
2. Award
3. Post-award
4. Close-out
Let’s take a closer look at what happens in each one.

PRE-AWARD
During this stage, general contractors assess the project’s needs. They
subsequently send out requests for quotations (RFQs) and requests for proposals
(RFPs) to subcontractors.

AWARD
In this stage, general contractors review bids and proposals from subcontractors
in search of the best candidates. Once suitable subcontractors have been
selected, general contractors will work with them to hammer out specific contract
details.
POST-AWARD
At this point, the project is in full swing. General contractors monitor
subcontractors to ensure they’re operating on schedule and in accordance with
quality and safety standards.

Subcontractor management in this phase may also involve addressing requests

for information (RFIs) and keeping subcontractors informed of client requests.

CLOSE-OUT
During this final phase, general contractors thoroughly inspect each
subcontractor’s work. They may request – and follow up on – change orders if the
work isn’t sufficient.

Subcontractor management best practices and tips

Now that you know what subcontractor management entails, let’s discuss a few
tips and best practices.

1. PRE-QUALIFY SUBCONTRACTORS CAREFULLY

Good subcontractor management starts in the pre-award phase. In other words,
before you think about coordinating subcontractors on your job site, make sure
you’re working with the right subcontractors, to begin with!

Best practices when selecting subcontractors include:

• following up with their prior clients and references to ensure they have a
track record of delivering solid work
• comparing several subcontractors before making a decision
 • looking beyond price to ensure the subcontractor is available, qualified, and
insured
• being compared to make a competitive offer for the ideal candidates
With the right subcontractors in place, your job will become much easier. Don’t
bulldoze through this part of the process!

Note that it’s important to pre-qualify subcontractors even if you’ve worked with
them before. Things change. Their certifications may have lapsed or they may
have lost key team members, resulting in poorer quality work. You won’t know
until you check.

It’s in everyone’s best interest that you as a general contractor be as clear as

possible in your instructions. This should start in the pre-award phase, which is
when subcontractors start planning their resource allocation strategy.

Of course, there will often be situations in which the scope of work changes
unexpectedly. Communicating these alterations as quickly as possible can mean
the difference between meeting your client’s expectations and falling short.

3. USE PURPOSE-BUILD RESOURCE MANAGEMENT SOFTWARE

The era of tracking subcontractors and other resources in spreadsheets is behind
us. Today, savvy general contractors use dedicated programs to manage
subcontractor schedules, assignments, labor requests, and data.

With software, you can very clearly visualize allocations in an industry-

standard Gantt chart format and properly plan your labor strategy. As your
project progresses, effortlessly see how changes are affecting existing allocations
and create forecasts that keep everything on track.

4. SET UP RELIABLE COMMUNICATION CHANNELS

No construction project can succeed without proper communication between
general contractors and subcontractors. Communication keeps everyone
informed and working together to achieve success.

Subcontractor management programs can facilitate communication by making it

easier to generate reports and keep data in a centralized location.

Subcontractors should know their point of contact for various types of requests,
whether they relate to safety, quality, the project’s schedule, or anything else.

5. PUT CONTRACT DETAILS IN WRITING

Professionals who know how to manage subcontractors effectively recognize the
importance of getting important commitments in writing. Verbal agreements can
be easily forgotten and may not hold up in court quite like commitments made in
your subcontractor agreement would.

Consequently, if a particular deliverable is important to you or the client, get it in

writing to avoid potential conflicts.

6. PAY SPECIAL ATTENTION TO PAYMENT TERMS

The subcontractor payment terms you agree to will have a massive impact on
project financials. There are a few common options, including:

• pay-when-paid, which stipulates subcontractors won’t be paid until you

receive payment from the client
• net 30, which means you’ll owe the subcontractor payment within 30 days
of a defined action (i.e. receipt of the invoice, approval of the work, etc)
General contractors are increasingly using the first payment option, which
protects them in the event that the client takes a long time to pay. However,
when it comes to managing subcontractor performance and motivation, this
strategy can cause issues.

As with most subcontractor management best practices, the correct approach is

situational.

7. UPHOLD YOUR END OF THE BARGAIN

General contractors hold much of the leverage in relationships with
subcontractors. If the latter wants more work in the future, they’ll often bend
over backward to meet even the most unreasonable demands and ensure the
general contractor is happy.

As a general contractor, however, you don’t want to abuse this dynamic. While
subcontractors may continue working with you, they might not be motivated to
deliver the best results. In extreme cases, some subcontractors may decide to
decline future work.

Abusing subcontractors can also backfire at your own company. Research

shows that when companies promote unethical behavior, their own employees
often turn around and behave unethically towards them as well. You might see
spikes in time theft, cheating, and other dishonest behavior.

The bottom line? Treat subcontractors fairly. Pay them on time and be reasonable
in your expectations. Beyond being a sign of decency, it will ensure better project
outcomes and a happier work environment.
Six things to remember when managing your
subcontractors
In a perfect world, subcontractors arrive when they’re needed, complete their
work to a great standard and save general contractors time, risk and money.

However, construction projects rarely run in a perfect world.

Seek out the cheapest labour, shirk your management responsibilities and ignore
pre-qualifying your hires and you run the risk of shoddy work that needs to be
redone. Thankfully, there are a few ways general contractors and project
managers can ensure their subcontractors complete their work to schedule and to
standard.

Here are six things to remember when managing your subcontractors:

1. Contracts and project safety compliance

All contracts should contain the roles and responsibilities of your subcontractor.
Your expectations and project specifications need to be outlined in the contract.
Any terms and conditions should be clearly defined and explained to the subs.
Within this document, all aspects of remuneration and payment methods are also
to be included.

Your subs must be inducted into the project and taken through all safety
procedures and requirements upon commencing the job. Safety measures extend
to producing quality work and meeting project deadlines. Plus, the subcontractor
must have in place suitable health and safety, environmental and industrial
relations procedures, which comply with the project.
2. Provide information ahead of schedule

Your subcontractor should have all the information they need to do their job
safely, on schedule and to standard. Ensure your subcontractor has access to this
information ahead of schedule and is promptly updated of any changes.

Keeping this timely will support your subs from causing further delays. As you
know, a construction project has a lot of moving parts and one delay can have a
knock-on effect. Taking the extra time to over-communicate with your
subcontractors will save you time down the line.

3. Hold regular meetings

Regular meetings will once again keep everyone informed and on schedule. These
sessions also give subcontractors a platform to express any concerns or matters
regarding safety, quality of work, general project issues and potential disputes.

4. Sign and acknowledge receipt of documentation

Situations can arise where subcontractors claim they have not received individual
drawings or documentation to proceed with the job - even if they have been sent.
To ensure you’re covered and to prevent this from causing disruption to the
construction project, have your subs sign for drawings, revisions and any
documents they receive. If a signature isn't required, ask for confirmation via
email or text message. Keep their correspondence on file should any disputes
arise in the future.

5. Communication Channels
First off, communication needs to be clear and succinct. Always keep subs up to
speed with any project changes as soon as possible. Be approachable and listen to
any feedback they have. Ask them if they understand, or if they require any
further clarification. Remember, you’re working as a team.

Always make notes and keep a diary or log tracking conversations, disputes and
how these issues have been settled. Keep all written correspondence on file; you
never know when you may need these to clear up miscommunications.

6. Use Construction management software

Construction management software is a lifesaving tool when managing your

subcontractors. It helps you with scheduling, keeping a paper trail of all
communications and allows you to see where the sub is up to on the project. Even
more importantly, it helps you stay within budget. Many of the programs on the
market also integrate with accounting software to streamline invoicing and
payments.
 Material Management
Effective construction materials management process is one of the success factors of a
construction project. Successful management of construction materials has to be based
on and updated information and processed utilizing a well designed construction
materials management system. All contracting companies are interested in using
some techniques for managing construction materials such as building archive for
previous projects about the cost of materials to save effort and minimizing errors.

The construction sector contributed US$ 641 billion to the US economy in the second
quarter of 2018. This ever-increasing growth has led to excessive competition in the
sector making it extremely critical for construction companies to continually reinvent
their business strategies in order to stay ahead of competitors.

But a persistent problem for most construction companies is handling their vast
inventories. It is important to note here that the construction industry is one of the most
capital intensive industries in the United States.

Examples of construction materials

• Adhesives
• Cement
• Bulk filling material (soil, rocks, etc.)
• Ceramics
• Glass for buildings
• Gravel
• Lead in construction
• Oil, paints, and coatings
• Plastic, plywood, and polythene
It’s an impressive list and also points at the necessity of streamlining the management
of construction materials. This practice helps companies stay on top of their materials
so all projects are carried out while ensuring quality and quantity control.

A robust materials management strategy involves making the right selection of raw
materials and handling purchase and delivery at a reasonable cost.

Movement and Handling of Construction Materials

Construction tools and equipment often need to be transported from one location to
another. Ensuring safety during transit of bulk materials is key! For this to play out well,
you need to set in place some precautionary practices.

There are two ways to carry construction materials:

 1. Horizontal movement refers to the movement of materials from one
project site to another. The safest and shortest possible route is
chosen to minimize travel and damage costs.
2. Vertical movement occurs when materials are carried to a different
floor on the same project site. The load should be fastened in the
correct manner and lifted carefully to reduce the risk of any
accidents.
Another important task is material handling before and after the equipment is shifted to
the project site.

Consider the following while choosing a handling system for your

business:

• Compatibility with the current storage equipment

• Cost-benefit analysis of all system available on the market
• Characteristics of company-owned materials and future demands
• Availability of capital and resources
The main challenge with materials management is ‘double handling’. It basically means
redoing the placement of material because somebody initially put it in the wrong place.
Such malpractices depict inefficiency and slow down the business workflow.

To streamline the handling process, you can opt between manual or mechanical
handling. Mechanical handling involves the use of machinery and automated
mechanical tools on the construction site, whereas manual handling means extensive
use of labor. The latter is relatively cheaper and better suited to confined spaces where
large equipment cannot be accommodated. However, mechanical handling greatly
accelerates construction projects.

Key Components of Material Management

Since a large part of a company’s budget is spent on equipment, you need to lay down
some basic guidelines to reduce costs. Buying construction materials before they are
needed can tie up capital in excess inventory. Similarly, running short of materials can
slow down projects. Thus, it is essential to iron out your materials management
strategy.

Materials management can be divided into the following components:

• Quantity planning, budgeting, and estimation

• Procurement scheduling and purchasing
• Receiving goods and inspecting for damage
• Stock control, storage, and warehouse placement
• On-site handling and transport
• Waste management
If correctly designed and implemented, these policies can substantially boost your
company’s operational efficiency.
Tips for Construction Material Management for
Maximum Returns
The main goal for the majority of construction companies is higher uptime. Project
delays can result in disgruntled clients. This can ultimately make you lose both current
and potential customers, and take a toll on your company’s growth.

To ensure your operations go as planned, here are some guidelines you can follow:

Regularly monitor inventory

Your inventory comprises of many different types of materials and tools. Yet, they all
signal a shared red alert for unexpected faults and repairs. To avoid any large scale
replacement and repair costs, you should regularly conduct preventive maintenance
checks on your equipment.

Minimize untimely breakdowns

• Borderline line cracks on the weld and near the frame

• Dirty air filters
• Corroding coolant levels
• Evidence of wear and tear on tires, track and tread
• Patchy grease fittings
• Cracks on windshield
If you spot any of these indicators, it’s best to schedule it for a service session. Doing so
will save you from a dangerous accident on the project site. You can ensure worker
safety by establishing such red flag signals for all your construction materials, tools, and
machinery.

Set up service vendors

Despite having a well-trained team for maintenance, it is best to contact dealers for
repair and replacement from time to time. Often times, you may receive a piece of faulty
equipment or the wrong type of gravel. In such cases, it is important to report such
issues to relevant dealers or service vendors.

A professional service team will get the job done faster and in the correct manner. This
means your construction crew can save time, and work on other tasks to meet project
deadlines.

Establish a collaboration system

If anyone in the project team notices an alarming situation about a piece of equipment,
they should alert the relevant department. For a streamlined communication system,
crew leaders should put a system in place that allows members to disseminate critical
information. Such practices enable you to tackle problems in a jiffy, whether it is low fuel
levels in a tractor or broken glass panels in a construction site.

Construction Material Management Software

The construction industry has many complex and versatile projects. So, firms need to
implement a smart, yet simple materials management software to keep them at the
forefront of their projects. Adopting a suitable construction materials management
software can multiply your company’s rate of return. It can also help you improve the
visibility of your daily transactions.

A robust construction material management not only tracks your need for equipment
procurement but also allows you to keep tabs on the progress of your construction
projects. You can allocate specific projects to a certain team and monitor their
performance on a daily basis. Remember: Prompt supervision will allow you to control
any lags in crew performance, so you can make amendments right away!

What is Construction Material

Management?
Construction material management is the function of quantity planning, budgeting,
sourcing, storing and on-site handling of construction inventory. It encapsulates the
critical processes that help streamline the flow of materials for all construction projects
executed by an enterprise.
Additionally, material management also encompasses key technologies, talent, and
processes, involved in optimizing the purchasing, storage, and utilization of all
materials. While the scope of material management is vast, its goal is to ensure that
construction materials are available on-site and are managed in a highly efficient
manner.

Construction firms become highly agile when they strengthen material management,
benefiting from greater cost control, and enhanced on-site productivity. They can better
predict demand for specific construction materials, such as TMT steel, ready-mix
concrete, AAC blocks, OPC cement, tiles, etc. based on the project lifecycle and
building requirements.

Let us understand why effective material management is critical to the success of a

construction project.

Scope of material management in construction

Construction material management has a wide scope in the construction industry, as it
plays a significant role in the optimization of acquisition & storage costs, as well as the
efficient utilization of all materials. From buying the right materials from the right supplier
to ensuring timely delivery and better material utilisation, material management is a
critical domain performing multiple functions.

Forecasting & Planning

Construction firms focusing on a new project development across multiple sites, within
various geographical conditions, require the appropriate materials at the right time.
From analysing current inventory to forecasting new requirements, construction material
management plays a vital role in ensuring construction firms remain agile throughout
the project lifecycle.

Material procurement
Procurement plays a key role in material management in construction, which is why
managers need to have complete control over the buying process from creating material
estimates to issuing purchase orders. Critical areas, such as supplier selection,
materials assessment, raising indents/purchase requisitions, awarding purchase orders,
and refiling stock, need to be monitored regularly to drive operational efficiencies. Firms
need to stay updated on the flow of the materials from suppliers to project sites, while
also referencing a standardized materials store for effective materials management.

Inventory tracking and stock reconciliation

Construction inventory management also involves the effective handling, storage, and
refiling of all inventory assets. Firms need to codify and classify their inventory, conduct
regular inspections, and streamline dispatching protocols in a highly effective
manner. It is also important for firms to transport materials to project sites accurately,
based on the on-ground requirements, quantities of materials, and specifications
outlined.

Stock reconciliation is also a key part of construction material management, capturing

the effective utilization of all materials across projects. It is critical to controlling costs,
increasing the workability on site, and limiting wastage of key materials. The tracking,
verification, and maintenance of stock is essential to ensuring construction projects are
successfully developed in a timely manner.

Why is construction material management critical?

As construction materials account for 65- 70% of the overall construction project budget,
it is critical to optimize the sourcing, storage, and utilization of the enterprise inventory.
Additionally, it is important to chart all processes, from approvals management to
delivery tracking, to ensure the availability of all materials when necessary.

Construction firms also need real-time insights on their inventory, periodic purchases
etc. to optimize the utilization of building materials. From procurement to site-delivery,
all materials must be accounted for to ensure optimal utilization and minimal wastage.
With multi-site projects, processes become much more complex, requiring the use of a
sophisticated technological solution.
Firms also have dynamic relationships with multiple sellers and engage the right
suppliers for the right project. This is essential in projects that require highly customized
materials with unique features and benefits. Buyers on board the right suppliers,
analyse the product description/benefits offered, conduct price evaluation, issue
purchase orders, receive approvals, and track the flow of the materials from supplier to
project-site. The entire process needs to be highly streamlined to ensure that there are
no delays, bottlenecks, or lapses in order deliveries, quality, or quantities.

Key benefits of material management solutions

Construction and Infrastructure firms can optimize their material management
processes by opting for a comprehensive material management software specifically
designed for their needs. Cloud-based material management solutions help construction
firms remain one-step ahead of all project requirements while having complete control
over their materials inventory on the go.

Procurement teams can also streamline purchasing complexities, introduce greater

transparency and save costs by leveraging an all-encompassing material procurement
and management solution. Key functions, such as raising indents, receiving bids,
issuing purchase orders, creating bills of materials, tracking materials, automated stock
updating, and processing inter-project materials transfer, can be performed seamlessly
through a comprehensive construction material management solution.

Conclusion
Material management is a key business function, focusing on optimizing the planning,
procurement, utilization, and management of project inventory. Construction firms can
leverage technology to help better manage their inventory while having end-to-end
control, from estimate to consumption. The top construction inventory management
solutions focus on empowering decision-makers, by optimizing core processes and
providing real-time insights across materials categories.

Tools & Equipment

7 Effective Ways to Manage Equipment
on Your Construction SitesBy
To manage the mobilization and deployment of your own equipment and tools
effectively to your job sites, you will want to treat each job site as though they were a
customer.

Since your “customer” can be associated with a specific project, you’re able to manage
the process of allocation and movement as an internal rental business. You don’t have
to generate AR invoices (unless you want to), but it does allow you to accurately track
costs, mobilization, assets, utilization and charging at a job site, customer and project
level.

Seven areas of focus that can make management, deployment, and allocation of
equipment more effective when you use a “job site as a customer” strategy.

Control: Charging and Orders

When you start to view your job sites as customers, you will immediately see that each
has its own unique challenges and needs. This should be taken into consideration when
you’re managing charges and equipment orders as well—no one way will work for every
job site, so flexibility is the key here.

For example, you may want to set up every job site and or project with its own charging
information. You may have a standard internal rate for an excavator, but due to the
remoteness of a location or the density of projects in a particular region, rates may be
higher. And, rates should be controlled based on a range of variables, including hours,
days, weeks, months, excess hours, or duration. Again, flexibility here gives you total
control in the end.

Traceability: Allocation & Delivery

Whether you use requisitions to trigger demand or have a central equipment desk to
handle requests for the deployment and allocation of equipment, you should have a
distinct process in place to manage them. Requisition items aren’t just for equipment,
they can become orders for tools, additional services or consumables as well. Once the
requisition is received, fulfillment can take place with the specific asset being placed on
order.

Now, if you want to manage a full logistics process, then create trucks and associated
journeys internally. Or, if necessary, arrange external trucking services that can be input
into your system for tracking and payment.

If not already in place, having a mobile app for your drivers that allows for sign off at
the time of loading can make a huge impact on understanding where equipment is and
for how long. Once your equipment is delivered to the job site, it can be digitally signed
for and the charge period will then begin. Having the job site sign-off on the equipment’s
condition at the time of delivery is also important to note, as you’ll see in the Equipment:
Damage section of this post.

Traceability: Pickup & Return

The two previous sections are what makes pickups and returns much easier to manage.
Because the requisitioning and fulfillment process you’ve implemented tells you (and
your job sites) what equipment is where and since when, the job sites can quickly
identify which equipment is no longer in use and can request a pickup to end any further
charges. This improves your utilization as equipment no longer sits unused at a job site
because someone simply forgot it was there (or assumed someone is coming to get it).

Equipment: Damage

It’s inevitable—your equipment will return damaged at some point. Your pickup and
return process should include an inspection to assess the physical repair of the assets
before loading onto the truck. If you’ve been requiring job sites to sign-off on the
equipment’s condition at the time of delivery, there should be no disputes as to who had
ownership when the damage took place.

Charges for parts and labor should be billed back to the job site. Whether you include
charges for loss of revenue during the equipment’s down time is dependent on your
company’s policies and procedures.

Equipment: Maintenance

Throughout your equipment’s life, it will require regular maintenance and inspection.
Creating scheduled maintenance is imperative for the longevity of your assets.
Depending on the type of equipment, you may want to have maintenance scheduled for
intervals of time, such as every six calendar months, every 100 days on a contract or at
every 200 hours on the meter. Whatever method you choose, increasing efficiency of
your service techs by giving them a mobile app to record the maintenance steps
performed.

Equipment Management: Utilization

Because each and every delivery and pickup is now being tracked, you can now begin
to monitor and manage equipment utilization by both time and dollar. Which are your
most under or over-utilized pieces of equipment? Is it wiser to purchase than to rent?
These decisions can be made by reviewing your fleet and seeing who your star
performers are.

Equipment Management: Asset Finance

In this area, it’s not so much as to how (as we’ve found all of our clients have different
ways of depreciating their assets) but as to where. If you’re using an equipment tracking
software and a separate ERP that push data back and forth to one another, then the
depreciation calculations should take place in one system and push the results to the
other. This keeps all of your values in sync and removes the need for double data entry.
 5 Key Benefits of Managing
Construction Equipment with Asset
Management Software
Managing construction equipment across multiple building sites and plants can be
challenging for most site managers and businesses. Typical assets include heavy
machinery, tools, trucks and vehicles, IT equipment, and employees. Keeping track of
all your assets, whilst also being able to understand their value, isn’t easy. But the
process can be made simpler through the use of Asset Management Software.

From increased compliance and safety to real-time tracking and monitoring, asset
management tools are essential for construction operations with multiple assets.

In this guide:

1. Understand the asset life cycle

2. Reduce site thefts
3. Improve asset visibility
4. Manage equipment maintenance
5. Improve worker safety

1. Gain a Better Understanding of Asset Life Cycle

Management
Part of managing your construction equipment involves knowing precisely what
equipment and tools you have and how much each one costs. It’s also key to know
when these assets require routine maintenance and when they need replacing.
Essentially, an asset has a life cycle that can be split into four key areas:

1. Planning
2. Procurement/Acquisition
3. Operation and Maintenance
4. Disposal
Asset Management Software allows site managers to understand and improve
their asset life cycle management. As well as knowing what assets they own or rent,
how much each asset is worth, and their current condition. It also enables them to figure
out the remaining service life of all assets. Enabling businesses to plan ahead and
invest in new equipment when needed.

2. Reduce the Risk of Theft on Sites

The construction industry is the subject of frequent petty and organized crime. The
Chartered Institute of Building conducted a survey that found 21% of respondents
experience theft every week.

Allianz Insurance also found that construction sites are increasingly targeted by
criminals, many of which are organized gangs. The results indicate that plant theft is
rising year on year. In fact, there were 428 instances reported in 2013, 665 in 2017, and
730 by the end of 2018.

Small assets are often targeted for theft because they can be easily moved. But larger,
more valuable assets are also at risk. Asset Management Software provides the tools to
help improve the security of construction assets and reduce the risk of theft and loss.
Including asset tracking tools such as GPS trackers.

By using tags that help locate construction equipment in real-time, site managers can
know where assets are located and who used them last. Resulting in a reduction of lost
assets.

3. Improve Visibility of Your Construction Assets

A large construction operation will have hundreds, or even thousands, of assets that
need to be transported to and from multiple sites. This is where an asset register can
come in handy.

An asset register is built using the tools provided by an asset management system. It
enables businesses to collect all types of data regarding their assets at stores in one
central place. With this in mind, an asset management system can help provide a real-
time view of where equipment is located at all times. As well as help businesses
to eliminate ghost assets, which may be costing them in insurance and tax fees.

Asset management tools can even support purchase order requisitions and logistics.
Meaning you can deploy and allocate equipment to the right site when needed. A robust
system will allow multiple users to access it. This means that the on-site project
manager can create requests for equipment to be collected when it’s no longer needed,
or log issues if tools or machinery require repair.

4. Easily Manage Equipment Maintenance Schedules

For a construction operation to be profitable, it needs to ensure that all essential assets
such as plants, machinery, and tools are working effectively. A backhoe loader, for
example, is an expensive piece of machinery. If it’s out of action, it could significantly
delay construction, increasing lead times and costs to the project.
Using Asset Management Software, equipped with a maintenance module, allows
managers to plan for preventative maintenance. This reduces the risk of having to make
unexpected and urgent repairs.

With a maintenance schedule, you’re able to assign jobs to multiple technicians. Each
technician will have the ability to create notes about the work undertaken and log them
into a shared dashboard.

5. Improve Safety for Your Construction Workers

The Health and Safety Executive (HSE) claims that every year, construction site
workers are killed or injured as a result of their work. The HSE reports that mobile plant
and electrical accidents are among the most frequent causes of accidental death and
injury.

Equipment that isn’t working correctly presents significant safety hazards to construction
workers. By effectively managing and maintaining plant and machinery assets,
businesses can prevent workplace accidents. They can also remove assets from
service as soon as they reach their end-of-life.
Factors Affecting Productivity
Data aside, how can productivity be measured, and what are the factors that determine
productivity? Again, opinions vary, but construction productivity is often measured as output
per labor hour – how much work gets done in the time spent. Output can be expressed in terms
of physical quantities (e.g., square feet) or financial units (e.g., dollars).
Factors affecting productivity can vary across different sectors, but many factors are common
throughout. A study conducted by Carnegie Mellon University identified factors in three
categories:
• Labor characteristics – Age, skill, experience, leadership, and motivation of the
workforce.
• Work conditions – Job size and complexity, site accessibility, equipment use, and other
project-specific factors.
• Non-productive activities – indirect labor, rework, work stoppages, and other activities
not directly resulting in productivity.
The CMU study also identified sub-factors to assess in each of these areas. Labor performance,
for example, can be assessed in much the same manner as employee evaluations – considering
factors such as quality and quantity of work, job knowledge, judgment, communication, and
leadership skills.
To track labor productivity, the CMU study suggests defining a base productivity level for a set
of pre-defined work conditions and comparing that with productivity on subsequent projects. A
labor productivity index can be determined to compare job-site labor productivity under a
different set of work conditions to the base labor productivity. For example, if a contractor can
track how many cubic yards of concrete were placed in a certain number of hours on a
representative project, that rate can be used on future jobs to determine if productivity is
higher or lower than the base level. The labor productivity index – the ratio of labor
productivity under a different set of work conditions to the base labor productivity – provides a
measure of the relative labor efficiency of a project under a new set of work conditions.
A study conducted by the University of Warsaw in Poland built a mathematical model
representing the productivity of construction workers. The model included 17 factors
influencing the productivity of construction workers and categorized them into five groups.
• Time spent outside work – worker absences, time spent with family, etc.

• Weather conditions – temperature, wind, and precipitation

• Psychophysical conditions – stress, fatigue, health, age, and recovery
• Organization and management of the worker – ergonomics, noise, duration of work
shift, salary, organization of work and workstations
• Remaining factors – day of week, adaptation to new operating conditions, new
technology
The previously referenced WLC report concluded that productivity is best measured at the
macro level in terms of gross value added (GVA) per cost of labor and at the micro level in
terms of earned hours divided by actual hours. GVA is the total output minus the value of all
purchased services. The report categorized productivity factors as either internal – those within
the control of a contracting organization, or external – those beyond the control of a
contracting organization.
Internal factors affecting productivity include:
• Delays (e.g., issues related to equipment, sequencing, or work instructions)

• Working hours (e.g., regular hours vs. overtime)

• Size of labor force (e.g., planned or unplanned changes in workforce)
• Selection and training of labor force (e.g., experience and skill level of workers)
• Quality of management (e.g., planning and monitoring of projects and workers)
External factors that affect productivity include:
• Economic cycles

• Regulatory environment and encouragement of creativity

• Competition
• Promotion of partnering and trusting relationships between client and contractor
• Training within the supply chain

Improving Productivity
Given all the different factors related to productivity, how might contractors make
improvements in these areas? Here are some possibilities, many of which are obvious but
worth reviewing:
• Labor characteristics – Most contractors are already highly aware of the need to have a
skilled workforce. But finding and keeping experienced workers can be a challenge given
the cyclical nature of construction. A focus on retaining employees and minimizing
turnover is one way to build and maintain an experienced workforce. By treating
employees well, you will likely find employees more motivated to do quality work and
remain loyal to the firm.
• Work conditions – Starting at the bidding phase, pursue projects that fit the size and
complexity of your workforce. For active projects, provide adequate site accessibility, a
safe work environment and proper equipment. Field equipment might include high-
quality tools and machinery, personal protective equipment (PPE) and vehicles. In the
office, employees value pleasant surroundings, current technology, manageable
working hours, and flexibility to manage life outside the office.
• Non-productive activities – A certain amount of indirect labor or overhead is necessary
to run any business, but right-sizing this is key to operating a successful business. Much
 like the importance of having qualified field staff, maintaining skilled staff to handle
accounting, human resources, bidding, and other management tasks are invaluable. For
small firm owners, you may be challenged to find the right balance of delegating these
tasks and doing them yourself. Other non-productivities, such as rework, can often be
minimized by proper training and addressing previously mentioned issues with labor
force and work conditions.
• Weather – Obviously beyond contractors’ control, the impacts of this age-old nemesis
can be mitigated with proper planning. Know your contract and any weather-related
clauses. When possible, include language that can provide relief in extreme weather
conditions. Technology, such as weather apps on mobile devices, can help with daily and
hourly management of projects.
• Organization and management – Similar to work conditions, seek to run a company
that is sensitive to ergonomics, noise, work hours, compensation and other factors.
Simply put, provide a professional atmosphere for the company as a whole and for
workers on an individual level.
• Technology – In addition to maintaining high-quality equipment and hardware, make
sure you have current software that helps you manage your company and projects.
Ideally, you want a system that allows project teams to collaborate and share
information in real-time between office and field teams. Strive for a unified system with
streamlined and consistent reporting, instead of fragmented methods that rely primarily
on spreadsheets, email, or hand-written notes.
• Expertise – Seek out expertise in areas you may be unfamiliar with, such as building
information management (BIM). This can help you reach new heights in building
projects more efficiently and intelligently, but like any tool, needs to be in the hands of
qualified, capable workers.
So while labor productivity can be difficult to measure, opportunities for improvement abound.
Identification and awareness of factors affecting productivity provide a good starting point.

Labor Management in Construction

When it comes to construction, it’s important to have a labor manager to help you
organize the project. Managing all the labor can be very challenging. This is mainly
because you want to make sure that you have the right people, with the right
expertise, and are able to have adequate productivity in order to get the job done on
time. Often times, this requires some experience and skill sets from the labor
manager themselves. Fortunately, there are techniques and strategy that the labor
management in construction can take to get the projects done efficiently and on
time.

Labor Management in Construction

Deadlines

The first thing to do is to know the deadline. Usually it would take about six months
to a year to construct a house and could be longer to construct other buildings.
However, you also want to know if the deadlines can change or not. Keep in mind
that in the world of construction, everything is unpredictable. Mother nature plays a
huge role. If it’s raining, your worker's productivity can be compromised. If there are
other issues like the wind, fire, or anything, it can affect the way your workers do
their job. That is why it’s best to talk to the owner about the flexibility of the
deadlines so you will have adequate time.

Size of the Job

You want to observe the size of the job to make sure that it fits well with the
deadline. If the construction involves a huge project, then you want to make sure that
you have ample amount of time. If you don’t have enough time, the quality of your work
can be severely compromised. Therefore, it’s essential to have the experience to
know how long a certain project will take.

How Many People You Need

Based on the size and the deadline for the construction project, it’s important to get
enough construction worker for the job. You want to assess the different roles that
these workers will be and how many of them you need. The good part is that if you
didn’t get enough people, you can always hire more. Sometimes, you would have to
do the project in order to realize that you either have too much work or not enough.

Expertise

It’s important to get construction workers with a good amount of experience and
referral. You want to see what type of projects that need to be done, and what type
of expertise that you’re looking for. This will help you select the right construction
workers for the job.

Once you figure everything out, you can start budgeting. You need to determine the
cost of the material and the amount you will be paying your construction worker per
hour. This will entail factory in the deadline and how many hours a day that they will
be working. Once you get the budget, you have to determine if you have enough
money. If you don’t, then the company will have to provide you with more revenues
to get that project done. Keep in mind that the cost of the budget is usually an
approximation so you might need to pay more or less depending on the situation.
Labour Management in
Construction – What You Need to
Know
Different Types of Construction Contracts
Labour management in construction is a very aspect that every contractor, construction
manager or supervisor needs to fully comprehend. It a very important technique applied by
managers in the management of the construction project. A good management project in
construction needs to pursue vigorously the efficient labour utilization. Proper labour
management promises an availability of labour that is efficient to undertake all construction
works and complete on time with no delays of work. Thus cost and time lose will be reduced.

Labour Management in Construction

The following are some of the main factors that affect labour management in construction:

1. Labour Productivity
Labour productivity here refers to the amounts of services and goods that a worker produces.
For instance, surface finishing, plastering, pouring concrete or bricklaying. Good performing
labour normally leads to high productivity. Good performing labour also is a result of
proper time and material management. The two elements to look at here is the productivity at
the job site and in the construction industry.

Job-Site Productivity: The factors that affect job-site productivity are non-productive activities,
project work conditions and labour characteristics.

Non-Productive Activities: The non-productive activities related to a project need to

established also in order to determine the productive labour yield. Productive labour yield is
the ratio of the direct labour hours dedicated to the completion of the construction project to
the potential labour hours. These activities include strikes, non-working days like holidays,
absentee time including early quits and late starts, time-off for union operations, temporary
stoppage of work as a result of material shortage or inclement weather, the time correcting
undesired work and indirect labour needed to have the progress of the project maintained.

Project Work Conditions: Project work conditions involve local climate local cultural
characteristics, contractual agreement, equipment utilization, labour availability, job site
accessibility and job complexity and size. Also, a set of specific conditions can be utilized to
make an estimation of the labour productivity for each construction and craft type.
Labour Characteristics: What is looked at here include the motivation, leadership, experience,
skills and the age of the workforce. In this analysis, several factors are evaluated including:

• Work Quality

o This is the caliber of work accomplished or produced.

• Work Quantity

o Refers to the volume of work acceptable.

• Job Knowledge

o Manifested knowledge of skills, techniques, methods and requirements

involved performing the job and in applying them to raise productivity.
• Associated Work Knowledge

o This is the knowledge of the influence of work upon other fields and
knowledge of associated areas that influence the assigned work.
• Judgement

o Soundness of decisions,actions and conclusions.

• Initiative

o This refers to the ability to take an effective activity without being

instructed to.
• Utilization of Resources

o Ability to determine the needs of a project, locate, plan and use efficiently
all available resources.
• Dependability

o This is the reliability in taking up and carrying out obligations and

commitments.
2. Labour Relations in Construction

Out there, there are union construction organizations. In an attempt to navigate through the
unstable economic environment, construction workers have joined labour organizations. These
organizations or unions make workers secure because they help limit the effects of ever-varying
economic conditions.

The Key to Managing Labor on a Construction Site

Labour management in construction is very key in every construction project. Therefore, it is

very imperative that we make decisions to strive for success.
10 Tips for improving labour
management in construction

Effective labour management in construction is essential for avoiding delays and other
inefficiencies. The current situation with COVID-19 has made labour management even trickier
than it already was. Rest assured, however. In this post, we’ll give you some detailed tips for
improving your labour management strategy.

10 tips for improving labour management in

construction
#1. CHOOSE YOUR WORKFORCE MANAGEMENT SOFTWARE WISELY

Good remote workforce management software can help your company effectively
navigate the new construction landscape. While labour management software was
always crucial, it’s even more so now given the additional complexities of tracking
quarantines and the pandemic’s effect on operations. Setting up employment dates is
also essential to keep track of new hires and termination dates as well as gain an
accurate record of availability of your team members.

You should look for software that adequately addresses these concerns along with all
others related to labour management in the construction industry. That may mean
adding new integrations to your existing suite or even changing it altogether. Always
test the software before you implement it.

#2. MAKE COLLABORATION A KEY PART OF YOUR PLANNING

Everyone on your team has the potential to contribute insights that make your
workforce management more efficient. You can’t unlock this potential, however,
until you make a concerted effort to facilitate collaboration. Here are three fantastic
ways to achieve this:

• Increase transparency

• Delegate

• Create agendas that encourage input from your team

#3. PRIORITIZE ALL ASPECTS OF HEALTH AND SAFETY

While COVID-19 continues to be the prime focus of healthcare systems in North

America, it’s more important than ever that you maintain worker safety in all other
aspects. Implement measures to prevent labourers from working excessive hours,
which can lead to underperformance and dangerous mistakes.

#4. PLAN WITH HOLIDAYS AND OTHER WORK STOP/RESTARTS IN MIND

Maintaining momentum is a key part of labour management in the construction

industry. Holidays can throw a wrench in your momentum but are crucial for worker
morale.
The solution is to plan important blocks of work so that they are completed between
holidays. Ideally, workers returning from a holiday should be starting something new
rather than attempting to pick up a task they left unfinished prior to a week of
festivities.

This is among the benefits of using Gantt charts for scheduling. The layout makes it
easier to visualize overlapping activities.

#5. KNOW THE KEY METRICS

Data is crucial to effective labour management in the construction industry. Good

workforce management software will help you pull key metrics from this data.
Your workforce utilization rate is one such important metric, an understanding of
which can help you balance your team’s time efficiently.

#6. MIND THE (SKILL) GAPS

There will invariably be gaps in the skills most job candidates possess and the skills
your company needs. A key part of labour management in construction is creating an
environment that fosters development and moulds workers into what you need.

This is closely related to balancing your workforce utilization rate. Workers that
spend all of their time “putting out fires” (as Stephen Covey called it in his classic
book “The 7 Habits of Highly Effective People”) cannot focus on developing skills that
benefit your company beyond satisfying its most urgent project needs.

#7. NIP UNDERPERFORMANCE IN THE BUD

Labour management in construction isn’t always pleasant. Sometimes you have to

address underperforming employees. This doesn’t have to be confrontational,
though. While worker underperformance can be the result of laziness or
incompetence, it can also be a sign that you’re working employees too hard or not
providing the opportunities for growth that would energize them.
This is connected to item #2 on this list, which was “Make Collaboration a Key Part of
Your Planning.” By involving as many of your team members as possible, you should
be able to identify and address any potential issues that might lead to lacklustre
performance.

#8. MANAGE ALL OF YOUR RESOURCES WELL

Another key aspect of labour management in the construction industry is ensuring

that your team has the resources they need to succeed. You need an effective
strategy for keeping track of where your equipment and materials are being used.
Otherwise, you’ll find that your workers are often left standing around because you
scheduled them for a job that requires equipment already being used elsewhere.

Labour management in construction is not independent of other considerations.

#9. MAP OUT YOUR CONSTRUCTION MANPOWER PLANNING MEETINGS AHEAD OF TIME

Construction manpower meetings are most effective when you have a framework in
place that shapes the conversation around what matters. We’ve all been in meetings
where much was said yet little accomplished. You can avoid that by taking key
initiatives such as allocating a specific team member to lead manpower meetings
and using your software to create a single source of truth that everyone can base
their ideas on.

#10. TRACK KEY PERFORMANCE INDICATORS (KPIS)

Tracking KPIs is among the most important aspects of parsing construction workforce
data. It can tell you what aspects of your strategy are working and which need a
revamp. A lack of understanding regarding KPIs in the construction industry is
partially to blame for the lack of digitization up until this point. Companies are now
scrambling to implement better tracking as key parts of their empires move online.
Why effective labour management in
construction is so important
Improving your labour management process can require some substantial overhauls.
It’s more than worth it, however, for the following reasons.

LESS DOWNTIME

Poor labour management in the construction industry routinely leads to idle time in
which your workers are neither handling pressing tasks nor developing. Of course,
this also costs you money since unions have implemented very strong worker
protections that ensure pay as long as boots are on the job site.

REDUCE OVERALL COSTS

The intersection of labour management with workforce management and other key
areas of running a construction business means that you’ll be much more poised to
reduce unnecessary costs throughout your entire operation.

BETTER EFFICIENCY WITH DEADLINES

Construction is a very deadline-driven industry. Productivity across entire projects

can collapse very quickly when even a single aspect is delayed. Effective labour
management avoids this.

MAINTAIN/IMPROVE YOUR REPUTATION

A good labour management strategy can ensure that your company remains one
people want to work for and with. By hitting deadlines and encouraging worker
development, you’ll really establish yourself as a firm all stakeholders can trust. Said
stakeholders will often ask for data and metrics you’ll only have if you’ve taken
labour management seriously.