Designing Buildings - User contributions [en]

Standard form of contract

2018-12-12T12:08:56Z

Kathy:

See also: Construction contract.

= General and consumer contracts =

Standard Form Contracts are agreements that employ standardised, non-negotiated provisions, usually in pre-printed forms. These are sometimes referred to as 'boilerplate contracts', 'contracts of adhesion', or 'take it or leave it' contracts.

The terms may be drafted (or selected) by or on behalf of one party to the transaction – generally the party with superior bargaining power who routinely engages in such transactions. With few exceptions, the terms are not negotiable by the other party.

Standard form, business-to-consumer contracts fulfil an important efficiency role in the mass distribution of goods and services. These contracts have the potential to reduce transaction costs by eliminating the need to negotiate the many details of a contract for each instance a product is sold or a service is used. However, these contracts also have the ability to trick or abuse consumers because of the unequal bargaining power between the parties.

For example, where a standard form contract is entered into between an ordinary consumer and the salesperson of a multinational corporation, the consumer typically is in no position to negotiate the standard terms; indeed, the company’s representative often does not have the authority to alter the terms, even if either side to the transaction were capable of understanding all the terms in the fine print. These contracts are typically drafted by corporate lawyers far away from where the underlying consumer and vendor transaction takes place.

The danger of accepting unreasonable terms is greatest where drafters of such contracts present consumers with attractive terms on the visible or 'shopped terms of most interest to consumers, such as price and quality, but include one-sided terms benefiting the seller into the less visible, fine print clauses least likely to be read or understood by consumers.

In many cases, the consumer may not even see these contracts until the transaction has occurred. In some cases, the seller knows and takes advantage of the knowledge that consumers will not read or make decisions on these terms.

= Construction contracts =

In the construction industry, there are a number of standard contracts, subcontracts, warranties and appointment agreements published by organisations such as the Joint Contracts Tribunal (JCT), the Royal Institute of British Architects (RIBA), the Institution of Civil Engineers (ICE), and so on. Such agreements can be useful as they have a track record of being used between parties, and their precise meaning has been tested by case law.

English law does not require a particular form to contracts, and so the terms and ultimately the risk allocation is the choice of the parties involved. Standard Form Contracts (SFC) aim to minimise the time and cost of negotiating contracts.

Purpose-written, or bespoke contracts are often considered inadvisable because of the risk they may not adequately or fairly make provision for all circumstances, and that they are not supported by a history of case law. Their continued use however is a reflection of how inflexible some parts of the industry perceive standard forms of contract to be.

Amendment of standard contracts should be approached with reluctance and caution as they can disrupt the balance of risk and impact on the true purpose. See Modifying clauses in standard forms of construction contract for more information.

NB: The Housing Grants, Construction and Regeneration Act applies to all contracts for 'construction operations' (including construction contracts and consultants’ appointments). The Act sets out requirements relating to payment and adjudication. The Scheme for Construction Contracts (England and Wales) Regulations (also known as The Scheme for Construction Contracts) is a scheme which applies when construction contracts do not comply with the Housing Grants, Construction and Regeneration Act. The Scheme either supplements the provisions of the contract where it has deficiencies relative to the requirements of the Housing Grants, Construction and Regeneration Act, or replaces the contract where it is non-compliant.

= Related articles on Designing Buildings Wiki =

* Bespoke construction contract.
* Clause.
* Construction contract.
* Housing Grants Construction and Regeneration Act.
* Procurement route.
* Scheme for Construction Contracts.
* Main contract.
* Modifying clauses in standard forms of construction contract.
* Traditional contract - pros and cons.

=== External references ===

* [https://www.projectcubicle.com/contract-documents/ Basic Contract Documents Every Contract Must Include]

[[Category:Contracts_/_payment]]

Contract documents for construction

2018-12-12T11:56:06Z

Kathy:

See also Contractual documents for a list of documents that are commonly required by or referred to in a construction contract.

= Traditional contract =

The contract documents set out the obligations and responsibilities of the parties to the contract. On a traditionally-procured, fully-designed construction project, the contract documents for suppliers such as the main contractor are likely to include:

* Article of agreement and conditions of contract, for completing as a simple contract (or as a deed).
* Working drawings.
* Bills of quantities.
* Specifications.
* Schedules of work.
* Perhaps an information release schedule. Consultants can be reluctant to produce information release schedules because of concerns about being held to the dates on the schedule (even where the progress of construction does not require information when the information release schedule proposes it). Failure to keep to the dates set out in the information release schedule may then be a matter for which the contractor can claim an extension of time and loss and/or expense.
* A schedule of tender adjustments or clarifications negotiated and agreed after the receipt of tenders and prior to the signing of the contract.
* The requirement for the contractor to provide a performance bond and to obtain collateral warranties from any sub-contractors or suppliers.

Both client and contractor should [[Construction_contract_engrossment|engross]] the contract by witnessed signatures prior to commencement of work. In practice the administrative effort of collating all necessary paperwork can be overtaken by the desire to begin construction. In such circumstances it becomes harder to sort out any disputes as to the content. There have been cases where the courts have had to interpret an implied contract when the contract has remained unsigned.

= Design and build =

On design and build projects, the contract documents may comprise:

* The articles of agreement and conditions of contract.
* The employer's requirements.
* The contractor's proposals.
* The contract sum analysis.
* Possibly bills of quantities (for some or all of the design).

= Building information modelling =

On projects that adopt building information modelling (BIM), the contract documents may also include:

* A model enabling amendment introducing a BIM protocol as part of the contract documents.
* A BIM protocol, which establishes specific obligations, liabilities and limitations on the use of building information models and can be used by clients to mandate particular working practices.
* Employer's information requirements, which define information that the employer wishes to procure to ensure that the design is developed in accordance with their needs and that they are able to operate the completed development effectively and efficiently. Suppliers respond to the employer's information requirements with a BIM execution plan.

Click here to see a diagram showing the relationship between contractual documents for BIM.

= NEC3 =

The contract documentation under NEC contracts comprises:

* The form of agreement.
* Conditions of contract.
* Contract data.
* Prices, activities schedules, bill of quantities.
* Works information.
* Site information.

= Pre-contract meeting =

A pre-contract meeting is likely to take place after the contractor has been appointed. This is an opportunity to for the project team to meet (perhaps for the first time) and to plan their activities. The minutes of the pre-contract meeting may form part of contract documents (for all procurement routes) subject to the agreement of both parties.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Articles of agreement.
* Bills of quantities.
* Construction contract.
* Contract conditions.
* Contract engrossment.
* Contract execution.
* Contract negotiation.
* Contractual documents.
* Contractors proposals.
* Contract sum analysis.
* Employers requirements.
* Engrossment.
* Form of tender.
* Information release schedule.
* Manual of Contract Documents for Highway Works.
* Named specialist work.
* Performance bond.
* Pre-contract meeting.
* Prescriptive specification.
* Procurement route.
* Schedules of work.
* Smart contracts.
* Specifications.
* Tender.
* Tender documents.
* [[What_should_be_included_in_a_scope_of_work%3F|What should be included in a scope of work?]]
* Working drawing.

=== External references ===

* [https://www.projectcubicle.com/contract-documents/ Basic Contract Documents Every Contract Must Include]

[[Category:Articles_needing_more_work]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Request for information RFI

2018-12-11T12:48:37Z

Kathy:

A Request for Information (RFI) (occasionally referred to as a Technical Query) is a formal question asked by one party to a contract on a construction project to the other party. Typically this will be a request from the contractor to the client’s consultant team, but it may be between any of the parties, for example from a sub-contractor to a contractor.

RFIs are generally required to clarify information in the contract documentation or to provide information that was not complete at the time the contract was agreed.

RFIs should set out:

* The details of project.
* The details of the party requesting the information.
* The date the query was raised.
* The nature of the information being requested.
* The date by which a response is required.
* Any supporting explanatory documents provided.

It may be necessary for the party receiving the RFI to seek further information from parties with whom they themselves have a contractual relationship in order provide a response. It is good practice to include this information from other parties with the response to the original RFI. This can create a chain of information, where for example a subcontractor requests information from the main contractor, who in turn requests information from the client’s consultant team, and so on. It may then be appropriate for responses and any explanatory documents attached to them to be disseminated amongst the wider project team.

This creates a matrix of RFIs that need to be carefully tracked, responded to and distributed appropriately. This process be managed using an information request schedule, or can be managed electronically.

It is important to record the dates that RFIs are dispatched, the dates by which responses are required and the dates that responses are received to provide evidence in the event that a dispute arises.

Contractually, the requirement to respond to an RFI is created by the obligation to provide further information as is necessary to enable the other party to complete the contract on time. Requests should, however, give sufficient notice for the respondent to be able to resource and prepare a reply by the date that the information is required. The parties are then entitled to rely on the information provided as correct.

Failure to provide necessary information may qualify as a relevant event for which the contractor may be entitled to an extension of time and to claim loss and expense incurred as a result of any delay. Similarly, a response which constitutes a variation in the nature of the works may qualify as a relevant event for which the contractor may be entitled to an extension of time and to claim loss and expense.

A contractor’s master programme (generally prepared immediately after the execution of the contract and issued to the contract administrator for comment) may constitute a request for information. Similarly, a client information release schedule may constitute a commitment to provide information by certain dates, whether or not these dates are necessary to achieve the completion date.

NB: Building Information Modelling (BIM) should give the entire project team access to better, more comprehensive and more co-ordinated information, reducing significantly the need for RFIs.

= Related articles on Designing Buildings Wiki =

* Architects instruction.
* Change control procedure.
* Contractors master programme.
* Extension of time.
* Loss and expense.
* Information release schedule
* Relevant event.
* Variation.

=== External references ===

* [https://www.projectcubicle.com/request-for-information-rfi-process/ How to Improve Your Request for Information Process]

[[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Design]]

Resource leveling

2018-05-25T12:05:17Z

Kathy:

Resource leveling (or resource levelling) is a project management technique in which the demand for limited resources is accommodated by adjusting the project programme. In construction, resource leveling can be used to analyse the large variations in resource usage that can occur over time, and which can be inefficient and costly.

Speed of delivery may suggest that certain activities should be performed simultaneously. However, resources such as labour or plant may not be available in the quantities required, or may be occupied by a different activity. Practically therefore, activities may need to be scheduled sequentially, even though this may be slower.

Resource leveling can be used to determine when the project will be completed given the availability of resources.

In some situations, project scheduling may involve a combination of resource leveling and resource smoothing. Resource smoothing is an assessment technique used where the priority is the constraint on time rather than resources. It can be used to determine how best to complete the work by the required deadline, whilst minimising inefficiencies in resource demand.

Project management software can be used for resource leveling, which automatically calculates resource availability and potential delays and updates tasks accordingly. More complex software can be used to level resources company-wide, with the allocation of resources across multiple concurrent projects.

Common techniques that are used by project managers to assist with resource leveling, include:

* Critical path analysis.
* Fast-track construction.
* Project crashing.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Acceleration of construction works.
* Critical path method CPM.
* Fast-track construction.
* Gantt chart.
* Line of balance (LOB).
* Milestones.
* Pareto analysis.
* Programme float.
* Project crashing.
* Resource management in construction.
* Scheduling construction activities.
* Time-location chart.
* Time management of construction projects.

=== External resources ===

* [https://www.projectcubicle.com/resource-levelling/ Resource Levelling Feature of P6]

[[Category:Construction_management]] [[Category:Cost_/_business_planning]]

Schedule

2018-05-25T11:16:47Z

Kathy:

In its broadest sense, the term ‘schedule’ simply refers to a list. That can be a list of items, activities, events, information and so on. Sometimes schedules will also include dates, such as the dates on which activities listed in the schedule will be carried out (in the construction industry this is more commonly referred to as a programme). Schedules may be appended to other documents, such as contracts.

A project schedule is a graphic presentation of all activities in a project required to produce the output. Gantt Charts, Network Diagrams, CPM and PERT techniques can be used to create the project schedules.

As construction projects and completed buildings are complicated, they take considerable organisation and can involve a number of different types of schedule. Articles on Designing Buildings Wiki about some of the more commonly used schedules include:

* Activity schedule.
* Contractor's working schedule.
* Information release schedule.
* Payment schedule.
* Schedule of condition.
* Schedule of accommodation.
* Schedule of defects.
* Schedule of dilapidations.
* Schedule of drawings.
* Schedule of rates.
* Schedule of services.
* Schedule of tender adjustments.
* Schedule of work.
* Scott schedule.
* Window and door schedules

See also: Programme.

=== External references ===

* [https://www.projectcubicle.com/project-schedule-project-plan/ Difference Between Project Schedule & Project Plan]

[[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]

Schedule

2018-05-25T11:15:29Z

Kathy:

In its broadest sense, the term ‘schedule’ simply refers to a list. That can be a list of items, activities, events, information and so on. Sometimes schedules will also include dates, such as the dates on which activities listed in the schedule will be carried out (in the construction industry this is more commonly referred to as a programme). Schedules may be appended to other documents, such as contracts.

As construction projects and completed buildings are complicated, they take considerable organisation and can involve a number of different types of schedule. Articles on Designing Buildings Wiki about some of the more commonly used schedules include:

* Activity schedule.
* Contractor's working schedule.
* Information release schedule.
* Payment schedule.
* Schedule of condition.
* Schedule of accommodation.
* Schedule of defects.
* Schedule of dilapidations.
* Schedule of drawings.
* Schedule of rates.
* Schedule of services.
* Schedule of tender adjustments.
* Schedule of work.
* Scott schedule.
* Window and door schedules

See also: Programme.

=== External references ===

* [https://www.projectcubicle.com/project-schedule-project-plan/ Difference Between Project Schedule & Project Plan]

[[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]

Fishbone diagram

2018-05-25T11:11:44Z

Kathy: Created page with "The fishbone diagram which is also known as the Ishikawa diagram, cause and effect diagram, can be used to identify the root cause of a problem.<br /> The fishbone diagram which ..."

The fishbone diagram which is also known as the Ishikawa diagram, cause and effect diagram, can be used to identify the root cause of a problem.<br />
The fishbone diagram which looks like fish skeleton, was developed by Dr. Kaoru in 1943 at the University of Tokyo. Hence the Fishbone Diagram is frequently referred to as an “Ishikawa Diagram”.

It is used to understand the root cause of a problem.

Schedule of work for construction

2018-05-03T06:14:57Z

Kathy:

= Introduction =

Schedules of work are 'without quantities' instructional lists often produced on smaller projects or for alteration work. They are an alternative to bills of quantities, allowing pricing of items, such as builders' work and fixing schedules (such as sanitary fittings, doors, windows, ironmongery, light fittings, louvres, roller shutters, diffusers, grilles and manholes).

Schedules of work are prepared by designers rather than by the cost consultant. They may be prepared as part of the production information alongside drawings, specifications, bills of quantities and preliminaries and are likely to form part of the tender documentation and then contract documents.

Schedules simply list the work required. Any information about quality should be provided by reference to specifications, and information about location and size should be provided on drawings. Where a schedule includes a description of the work required, this is a 'specified' schedule of work.

Schedules should allow the contractor to identify significant work and materials that will be needed to complete the works and to calculate the quantities that will be required. As a consequence, it is important that schedules of work properly describe every significant item of work to which they relate. Failure to do so may result in a claim by the contractor.

Schedules of work can be arranged on an elemental basis (for example, [[Groundworks_on_construction_projects|groundwork]], concrete, masonry, etc.), or on a room-by-room basis.

= Mortgage requirements =

Landlords and property investors that purchase properties in need of renovation require a Schedule of Works to demonstrate works that have been completed. This is often crucial in convincing a property surveyor that the value is not what the developer paid, but has increased - because of the works.

The lender will also ask the valuer to assess if the works have been completed and if they are of the value suggested. It is important therefore to have a copy of any receipts and invoices of contractors available to be provided to the valuer.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Contract documents.
* Contractor's working schedule.
* Form of tender.
* Measurement.
* Preliminaries.
* Schedule.
* Scope creep.
* Scope of work.
* Specifications.
* Tender documents.
* Window and door schedules.

=== External references ===

* CPIC Schedule of work, 5.3 Preparing the schedule of work.
* [http://www.thenbs.com/topics/PracticeManagement/articles/functionsScheduleWork.asp nbs Functions of a schedule of work.]
* [http://www.thenbs.com/training/educator/schedulesWork/schedulesIntro/schedulesIntro02.asp nbs Schedules of work].
* [https://bespokefinance.info/faq/view/16-What-is-a-Schedule-of-Works Schedule of Works] for Property Investment
* [https://www.projectcubicle.com/baseline-schedule-and-project-schedule/ Baseline Schedule & Project Schedule]

[[Category:Articles_needing_more_work]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Pareto analysis in construction

2018-05-02T05:50:47Z

Kathy:

Pareto analysis is a statistical decision-making technique that identifies a limited number of input factors as having a greater impact on outcomes, whether they are positive or negative. It is based on the Pareto Principle, popularly known as the ‘80/20 rule’, that stipulates that 80% of the outputs result from 20% of the inputs.

The principle was developed by Vilfredo Pareto, a 19th century Italian economist and sociologist who was researching wealth distribution. He subsequently discovered the 80/20 rule applied to areas outside of economics, for example, 80% of the peas in his garden were produced by only 20% of the peapods planted.

Pareto analysis can also be used as a project management tool. For example, the majority of problems (80%) are produced by relatively few causes (20%); and 80% of the project’s benefits are delivered through 20% of the work.

Put simply, Pareto analysis shows that a disproportionate improvement can be made by ranking the various causes of a problem and allocating resources to tackling those that have the largest impact.

In construction, there may be a problem with the project programme that is the result of a large number of causes. Through observation and the collection of data, it might be determined that there are 8 causes. Pareto analysis may show that 80% of the problems result from the top 2 or 3 causes. The project management team can then plan an appropriate response, targeting resources at those 2 or 3 causes, rather than all 8.

[[File:Pareto-chart.jpg|link=File:Pareto-chart.jpg]]

A Pareto diagram (or chart) can be used to present the analysis, helping the project team to focus on the inputs with the greatest impact.

Inputs are listed along the horizontal ‘y’ axis in descending order of output frequency (using the cumulative percentage of the outputs), and uses a line graph to chart them. The vertical ‘x’ axis measures the frequency of the output for each input, and uses a bar graph to chart them.

In the example diagram, it can be seen that 42% of the issues are related to installation, and that three of the categories; installation, software faults, and shipping, account for 79% of the issues.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Acceleration.
* Benchmarking.
* Contingency theory.
* Critical path method.
* Gantt chart.
* Key performance indicators.
* Line of balance (LOB).
* Milestones.
* Project crashing.
* Project manager.
* Project quality plan PQP.
* Quality in construction projects.
* Quality Management System.
* Resource leveling.
* Time-location chart.
* Value management.

=== External resources ===

* Project Management Skills - [http://www.project-management-skills.com/pareto-chart.html Pareto chart]
* [https://www.projectcubicle.com/pareto-chart-quality-management/ What is a Pareto Chart in Quality Management ?]

[[Category:Theory]] [[Category:Standards_/_measurements]] [[Category:Construction_management]]

Project crashing

2018-05-02T05:48:48Z

Kathy:

Project crashing is a process that can be used in the management of construction works when the programme is running behind schedule.

Project crashing can be necessary when:

* The programme planning has been inaccurate.
* When there have been unforeseen events which have caused delays, such as defects being discovered.
* Or if the client has requested that the project, or a section of the project, is completed earlier than previously specified, for example if there has been an extension of time, but the client still wishes to achieve the original completion date (this is generally referred to as acceleration).

The aim of crashing is to achieve the maximum decrease in schedule for minimum additional cost. This can be done by:

* Addressing productivity issues being experienced by the current resources and trying to find ways of increasing their efficiency.
* Increasing the assignment of resources on critical path activities. These could be internal resources or subcontracted recources.
* Adopting different techniques. This might include off-site prefabrication, extra scaffolding, temporary weatherproofing and so on.
* Overlapping activities (fast tracking).
* Working longer hours.
* Additional supervision.
* Changes to design or specification (for example standardisation replacing bespoke solutions)
* Reduction in scope (for example transferring work to a separate post-contract agreement for occupational works).
* Early procurement of items.

Many of these strategies will necessarily lead to some additional costs being incurred, or cost uncertainty. Whilst the same number of tasks need to be performed, they are condensed into a shorter period, and so are likely to require more resources. In addition, purchasing costs may be higher due to time pressures, incomplete information and the complexity of managing the interfaces between elements. A greater number of variations are also likely than on a traditional contract.

It is important to be clear whether it is the client or the contractor that will bear these additional costs.

There are several risks attached to project crashing. While resources are typically focused on critical path activities, there is the possibility that non-critical paths will also be affected. Quality, safety and compliance should not be affected as a result of the critical path being crashed. Another risk is that new resources may not be as productive as existing resources, because they may be unfamiliar with the project, the programme and the tasks at hand.

This may require that the size of the contingency is increased.

Project crashing should be resisted if:

* It threatens the integrity of the works, or compromises health and safety.

* It is no longer cost effective to continue.
* It causes another path to become critical.
* Time reduction is no longer realistically achievable.

An alternative to project crashing is fast-track construction, which is a scheduling technique that can be used to compress the overall project schedule. Typically this is decided at the beginning of a project, organising it so that the design and construction phases overlap. This means that that activities normally performed sequential are rescheduled to be performed in parallel or partially in parallel. This will reduce the overall programme, but is likely to increase costs and risks.

For more information, see Fast-track construction.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Acceleration of construction works.
* Constructive acceleration.
* Contractor’s master programme.
* Critical path method.
* Fast-track construction.
* Key performance indicators.
* Milestones.
* Pareto analysis.
* Programme float.
* Project programme.
* Resource leveling.
* Scheduling construction activities.

=== External resources ===

* Bright Hub PM - [http://www.brighthubpm.com/resource-management/5055-project-crashing-what-options-do-you-have/ Project crashing]
* [https://www.projectcubicle.com/schedule-compression-fast-tracking/ Fast Tracking and Crashing – Schedule Compression]

[[Category:Construction_management]] [[Category:Cost_/_business_planning]]

Milestones

2018-04-27T08:27:19Z

Kathy:

Milestones are important project management tools that can be used as a component of project scheduling.

A milestone is a significant event that occurs during the course of a project, the timing of which can influence the scheduling of other activities. With the achievement of successive milestones, management is able to maintain a more accurate understanding of how the project is advancing according to the schedules.

Milestones might include, for example:

* Securing funding.
* Acquiring a site.
* Appointing consultants.
* Completing design stages.
* Client approvals.
* Securing permissions.
* Tendering the construction contract.
* Appointing a contractor.
* Handing over the site to the contractor.
* Starting and completing construction.
* Occupying the completed development.
* Rectifying defects.

Milestones are a feature of many project management software tools and often appear on Gantt charts, represented by diamond symbols. Developing schedule with milestones marked along a project programme can help give clarity to a timeline which can otherwise be very complex and difficult to interpret. This can be particularly useful for some stakeholders who may only need a very general understanding of a project programme.

They may coincide with key decisions or gateways at which the client assesses the state of development of the project and considers whether to progress to the next stage. However, it is important that milestones are allocated to the achievement of a task, not to the task itself.

For example, consultants often describe client decisions as milestones on project programmes, when in fact, the client may need to be provided with information to make a decision, they need time to consider that information, and they may then need to convene a meeting, which if they are senior personnel may only be possible on specific dates (such as at pre-planned board meetings).

Milestones are known as a ‘task of zero duration’ because they represent a particular point of time in a project when an achievement has been reached, they do not represent the activities necessary to complete a task.

They are often used to show progress on critical rather than non-critical activities, that is, items that represent a potential ‘bottleneck’ in the progress of a project. The overall critical path for a project represents the shortest time in which the project can be completed. Achieving milestones on the critical path more quickly than was planned will reduce the overall project programme.

However, this can serve to present a misleading impression of the overall health of the project, as project managers may prioritise resources into achieving critical milestones, whilst neglecting those works that are not identified as a milestone. This can change the critical path so that activities which were not previously critical become so.

To be useful tools in monitoring and controlling a project, project managers must be careful not to overuse milestones as a means of driving progress, whilst ensuring there is no loss in momentum as a result of spacing milestones too far apart. Instead, a compromise must be reached with milestones pinpointing suitably critical deliverables on a consistent basis, commonly at intervals of no longer than every fortnight for projects of several months duration.

Suitable remedies must be planned in the event that a milestone is missed. Resources may need to be reallocated to ensure they continue to be matched to priorities. However, it is important that milestones represent a challenge and should be treated as opportunities to make adjustments as the work is proceeding.

See also: Milestone payment.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Acceleration of construction works.
* Activity schedule.
* Change control procedures.
* Contractor’s master programme.
* Critical path method.
* Data drops.
* Design programme.
* Design web.
* Gantt chart.
* Gateways.
* How progress is agreed in construction.
* Key dates.
* Key performance indicators.
* Line of balance (LOB).
* Milestone payment.
* Pareto analysis.
* Programme consultant.
* Programme float.
* Programme for building design and construction.
* Progress of construction works.
* Project crashing.
* Project manager.
* Scheduling construction activities.
* Short period programme.
* Time-location chart.
* Time management of construction projects.
* Topping out.

=== External references ===

* Smartsheet - [https://www.smartsheet.com/blog/support-tip-milestones-in-project-management Milestones in project management]
* [https://www.projectcubicle.com/master-schedule-vs-milestone-schedule/ Milestone Schedule]

[[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]

Earned value for construction contracts

2018-04-27T08:25:24Z

Kathy:

Earned value analysis is a technique used to assess project progress by comparing the amount and cost of work that was planned to have been done by a particular stage with the amount that has actually been done and what it has actually cost.

This gives a good indication of how the project is progressing compared to what was planned and enables forecasts to be made about the eventual cost and time that will be required to complete the project.

Typically earned value analysis is carried out for each of the packages that make up the project. Actual outputs are measured against planned outputs (often on a weekly basis) using the units that individual companies use to price and measure work.

This provides an opportunity to investigate discrepancies and take remedial action where necessary. It also provides a fairly accurate insight into the financial wellbeing of package contractors and provides early warning of a shortage of resources or of an inefficient use of resources.

The key is to measure actual resource against planned resource using the production units by which estimates have been produced in order to price a tender. This can be:

* Hours worked per week.
* Number of workers per week.
* Volume of say concrete per week per person.
* Units fixed per week per person.

These items can be plotted weekly to alert the user to trends and allow them to investigate causes. Furthermore it provides an overall general picture of labour productivity for each monitored operation.

Carrying out this sort of analysis requires that project planning is broken down into packages and that tender documentation is drafted to require contractors to supply the information required.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Benchmarking.
* Contractor.
* Cost monitoring.
* Cost performance index (CPI).
* Identifying the causes of trends in construction labour productivity.
* Key performance indicators.
* Programme consultant.
* Progress of construction works.
* Schedule performance index (SPI).
* Sub-contractor.
* Tender.
* Tender documentation.

=== External references ===

* [http://www.projectsmart.co.uk/what-is-earned-value.html Project Smart: What is earned value? By Duncan Haughey.]
* Brunswick: Project Management in Construction using Earned Value Analysis.
* [https://www.projectcubicle.com/earned-value-management/ Earned Value Management]

[[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]

Contractor's master programme

2018-04-27T08:22:53Z

Kathy:

Contracts may require that the contractor provides a master programme for the construction of the works as soon as possible after the execution of the contract, if it has not been previously provided. However, as it is produced after the execution of the contract, the programme does not impose any obligation on the contractor beyond those obligations imposed by the contract documents.

For clarity, the contract documents should specify the level of detail required by the contractor's master programme, which may include critical paths and other information allowing the contract administrator to interrogate the programme and properly assess its implications.

The contract administrator may comment on the contractor's master programme but should not approve it, as approval might be considered to relieve the contractor of liability for programming the works in such a way as to achieve the completion date.

In making any comments, the contract administrator may wish to consider whether the master programme properly reflects the requirements of the contract (such as the inclusion of the appropriate milestones), whether it contains errors and whether it will make unrealistic demands on the consultant team to produce or comment on information.

The programme may be used as the baseline for a claim for an extension of time by the contractor, and the contractor is generally required to update the master programme as the works proceed to reflect any extensions of time that have been granted.

Under the NEC (The New Engineering Contract): Engineering and Construction Contract, requirements regarding the preparation of the contractor's programme are more specific, and upon acceptance it becomes the ‘accepted programme’ for the works.

There is "...nothing in the (JCT) contract that obliges the contractor to have a master programme." [ref Chappell, D. (2014). The JCT Standard Building Contract 2011. 1st ed. John Wiley and Sons Ltd., p.100]. The contractor merely has to provide it if they have created one, although it could be argued that on any sizeable contract it would be virtually impossible to complete the project without a master programme.

NB: The completion date indicated on the contractor's master programme may be earlier than the completion date entered into the contract.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Accepted programme.
* Activity schedule.
* Construction contract.
* Contractor.
* Contract administrator.
* Contract documents.
* Contractor's working schedule.
* Design programme.
* Extension of time.
* How progress is agreed in construction.
* How to manage construction plant.
* Information release schedule.
* Milestones.
* NEC3.
* Programme.
* Programme for building design and construction.
* Programme consultant.
* Progress of construction works.
* Project crashing.
* Request for information.
* Scheduling construction activities.
* Short period programme.
* Tender works programme.
* Time-location chart.
* Time management of construction projects.

=== External references ===

* [http://www.jctltd.co.uk/ Joint Contracts Tribunal].
* [https://www.projectcubicle.com/master-schedule-vs-milestone-schedule/ Master Schedule vs Milestone Schedule.]

[[Category:Articles_needing_more_work]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Lead times for construction

2018-04-27T08:19:22Z

Kathy:

Lead times are a measure of the amount of time that elapses between initiating a process and completing that process. Typically on construction projects, lead times refer to the amount of time that elapses between placing and order for an item and its delivery to site, but it can also refer to the time required for the preparation of drawings, plant hire, approvals processes and so on. In relation to the activities of the main contractor, the term lead time may be used in relation to mobilisation activities.

Lead times reflect the time taken to carry out an order, however, they are also affected by other variables, such as market conditions. For example, if a factory has a very full order book, or if there is a shortage of materials, there may be a delay between ordering an item and the commencement of manufacturing. In September 2013, as the construction industry emerged from recession, Construction Manager reported that “...in the last six months lead times for bricks, roof tiles and lightweight blocks more than doubled” (ref Construction Manager, [http://www.construction-manager.co.uk/news/bricklayers-pay-20-price-hikes-threaten-recovery/ Bricklayer’s pay up 20% as price hikes threaten recovery] 27 September 2013).

Lead times may also be affected by variables such as strikes, holiday periods, inclement weather and so on. Items coming from abroad, that require transportation may take longer to arrive, and holiday periods and market conditions in other countries may also be different.

As lead times include the duration of the manufacturing process, and delivery to site, it is important to recognise that there is a difference between lead times and the length of order books.

It is crucial that long lead time items are identified as early in a project as possible as they may affect the critical path for the project. Long lead time items might include; bespoke cladding and glazing systems, lifts and escalators, concrete and steel frames, mechanical and electrcial equipment such as transformers, low and high voltage switchgear, boilers, chillers, lifts and escalators, specialist personnel and specialist plant such as cranes and piling rigs. These are sometimes placed on order prior to the appointment of contractors so they do not delay the project programme.

Where a long lead time item appears on the critical path, delays in the delivery of that item may extend the entire project programme. This requires careful management, as several items may need to be delivered in sequence to perform a single task, with delays in any one causing a delay to the entire project.

Whilst lead times for individual items may be difficult to influence, lead times for sequences of activities can be reduced by overlapping those activities (see fast track construction), and the impact of lead times on the completion date for a project can be reduced by ordering long lead time items early. This process is referred to as lead time management and may include the preparation of a long lead schedule.

If the latest lead times for particular items are known, then working backwards from the desired delivery dates, the latest procurement times or ‘order by’ dates can be identified. This may need to include a period for the preparation of samples or mock-ups and approvals processes. The programme for the preparation of production information and the tender process can then be defined.

Tables giving indications of lead times are available (for example Building's [http://www.building.co.uk/data/market-data/lead-times/ Lead times] and Mace's [https://foresite.macegroup.com/suppliers/lt_article.aspx Foresite]) however, appointment of a programme consultant, an experienced project manager or early appointment of contractor with knowledge of current market conditions can help in assessing project sequencing and identifying long lead time items. Clearly, the sooner that critical items are identified, the sooner it is possible to begin the process for ordering them.

Where it is important to order items early, this must be made clear to the client as soon as possible, as it may have an impact on their cash flow. It can sometimes be appropriate for the client to pay for items even though they remain ‘off-site’, for example, where a contractor has themselves made a large payment for plant or materials that have yet to be delivered, or if the client wishes to ‘reserve’ key items in order to protect the programme. See off-site materials for more information.

NB The front-end construction such as; service diversions, demolition, setting out, underground drainage, piling and groundworks may also merit early placing of contracts to protect the project programme.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Acceleration.
* Advance payment bond.
* Contractors master programme.
* Critical path.
* Delay on construction projects.
* Fast track construction.
* Programme consultant.
* Programme float.
* Project crashing.
* Project programme.
* Lean construction.
* Off-site materials.
* Scheduling construction activities.
* Short period programme.
* Site storage.
* Vesting certificate.

=== External references ===

* Building, [http://www.building.co.uk/data/market-data/lead-times/ Lead times].
* Mace, [https://foresite.macegroup.com/suppliers/lt_article.aspx Foresite].
* Construction Manager, [http://www.construction-manager.co.uk/news/bricklayers-pay-20-price-hikes-threaten-recovery/ Bricklayer’s pay up 20% as price hikes threaten recovery] 27 September 2013.
* [https://www.projectcubicle.com/lead-lag-project-scheduling/ Lead] and Lag in Project Scheduling

[[Category:Construction_management]] [[Category:Construction_techniques]] [[Category:Procurement]]

Stakeholder management for building design and construction

2018-04-20T10:55:18Z

Kathy:

= Stakeholders =

A stakeholder is anyone who has an interest in the process or outcome of a project. In a typical construction project, any or all of the following may be a stakeholder:

* the client
* the main contractor
* designers
* subcontractors
* people employed in any capacity in the project
* local authorities
* the end users
* professional bodies
* local residents
* local business owners
* politicians
* lobby groups
* and many more...

= Stakeholder classification =

== Direct stakeholders ==

Direct stakeholders are those directly associated or involved in the project. These include the client, project sponsor, project manager, members of the project team, technical and financial services providers, internal or external consultants, material and equipment suppliers, site personnel, contractors and subcontractors as well as end users. They are also known as internal stakeholders.

== Indirect stakeholders ==

Indirect stakeholders are those indirectly associated with the project, such as; support staff not directly involved in the project, national and local government, public utilities, licensing and inspecting organisations, technical institutions, professional bodies, and personal interest groups such as stockholders, labour unions and pressure groups. They are also known as external stakeholders.

== Positive stakeholders ==

Positive stakeholders are those who are likely to have a favourable impact on a project. These people or organisations tend to also be direct stakeholders, and stand to gain from the project’s success. Examples would be the organisations involved in the work itself that stand to benefit financially.

== Negative stakeholders ==

Negative stakeholders are those who are likely to have a detrimental impact on a project. They tend to be people or organisations not directly involved in a project, but who are still affected by it in some way. An example would be local residents with concerns about loss of public areas to a new project.

== Legitimacy and power ==

Stakeholders are further differentiated between those with legitimacy and power, and those without it, as this will influence the degree to which they can affect the project, whether positively or negatively:

* Legitimacy is the perceived validity of a stakeholder’s claim to importance on the project.
* Power is the stakeholders ability to influence the project and the parties involved in some way, whether financially, legally or by some other form of pressure.

= Stakeholder management =

In order to run a successful project it is important to address the needs of the projects stakeholders, effectively predicting how the project will affect them and how they can affect the project. Ineffective stakeholder management can result in dissatisfaction with the final product and negative impacts on the projects budget and schedule.

== Stakeholder management strategies ==

During the development stages of a project, a stakeholder management strategy should be developed. An organisation should consider the following factors when developing a stakeholder management plan:

* Who are the stakeholders?
* What are their stakes?
* What opportunities do they present?
* What challenges or threats do they present?
* What responsibilities are there towards stakeholders?
* What strategies or actions should be used to engage stakeholders?

This process will allow the projects stakeholders to be effectively mapped out. The next step is to assess their key characteristics and present this information in a way that helps the project team implement effective stakeholder management initiatives. While it may not be possible to please all stakeholders on every project, effective stakeholder management should aim to satisfy as many as possible, which will often involve strategic prioritisation of different stakeholders needs.

A common technique is the stakeholder matrix or stakeholder map which allows the priority level of the stakeholder to be assessed using the power and legitimacy criteria previously described. The result of these processes is a 4-tier hierarchy of stakeholder importance levels, which will dictate how stakeholders are managed:

=== 1. Inform ===

This category contains those stakeholders who require minimal effort. Stakeholders with lower power but higher legitimacy need to be kept informed of decisions taken that may affect them directly.

=== 2. Consult ===

These are stakeholders who require more than just being informed about the project. Since the secondary stakeholders with higher power but lower legitimacy need to be kept onboard they should be consulted in order to seek their opinions and input for key decisions that directly or indirectly affect them. It is unlikely that the strategy will be altered as a result of such consultation, but tactics may be adjusted to maintain higher levels of commitment.

=== 3. Involve ===

Stakeholders with high power levels, even those with low legitimacy, need to be involved in all activities in the project according to their interest since they have the power to make decisions that impact on the project. The management should work directly with these stakeholders to ensure that their concerns are consistently understood, considered, and reflected in the projects development.

=== 4. Partner/collaborate ===

Primary stakeholders have high enough levels of legitimacy and power to affect project success and as such, they should be treated as partners to increase their engagement and commitment. This can be achieved by revising and tailoring project strategies, objectives, and outcomes if necessary to win their support.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Champions.
* Collaborative practices
* Consultation process.
* Design quality.
* Design review.
* Egan report.
* Latham Report.
* Stakeholders.
* Stakeholder map.
* Third party dependencies.
* User panels.

=== External references ===

* Carroll, A & Bucholtz, A. (2012) Buisness & Society: Ethics, Sustainability and Stakeholder Management. 8th ed. Mason, OH. South-Western Cengage Learning
* CSCS Website (2013). [online]. [Accessed April 20th 2013]. Available at: [http://www.cscs.uk.com/ http://www.cscs.uk.com/]CCSheme Website (2013). [online]. [Accessed April 20th 2013]. Available at: [http://www.ccscheme.org.uk/index.php/ccs-ltd http://www.ccscheme.org.uk/index.php/ccs-ltd]
* Fewings, P. (2005) Construction project management: an integrated approach. Abingdon: Taylor Francis
* Lester, A. (2007) Project management, planning and control. 5th ed. Oxford: Butterworth-Heinemann
* Olomolaiye, P & Chiniyo, E. (2010) Construction stakeholder management. Chichester: Wiley-Blackwell
* ProjectCubicle (2018). [online]. [Accessed April 20th 2018]. Available at: [https://www.projectcubicle.com https://www.projectcubicle.com] (2018). [online]. [Accessed April 20th 2018]. Available at: [https://www.projectcubicle.com/stakeholder-analysis-management/ https://www.projectcubicle.com/stakeholder-analysis-management/]

[[Category:Theory]] [[Category:Client_procedures]] [[Category:Design]]

Baseline schedule

2018-03-29T12:24:18Z

Kathy:

Time management is one of the most important processes in project management. It is the discipline of planning and controlling the duration of a project. A baseline schedule is a main project management document that should be created before the project starts. It demonstrates the project execution strategy, key project deliverables, activity planned dates and milestones. Activities are grouped under different work breakdown structure levels. Engineering, procurement, production, testing etc. processes are highlighted in baseline schedules.

== Baseline Schedule ==

[https://www.projectcubicle.com/baseline-schedule/ Baseline schedule] is also known as schedule baseline or target schedule. It is an approved copy of project schedule that can be used to analyze the project performance and report the schedule variances. Baseline schedule creates a road map to prepare baseline budget, mobilization plans and resource allocation plans.

According to PMBOK Guide, a Project Schedule represents “The planned dates for performing activities and the planned dates for meeting milestones.”

Baselines are the frozen version of the project schedules. Before updating the project schedule for the first time, baseline schedule is retained as a target. This means the baseline schedule is the same as the project schedule at the beginning.

As the project progressed and tasks are performed, the baseline schedule may deviate from the actual schedule. It may not reflect the current project status. Risks and unforeseen events may effect and some changes outside the control of project management team may cause delays.

Under these circumstances remedial actions should be taken and recovery plans should be created. It is important to emphasize that baselines should only be changed when there is a change in scope.

== Baseline Schedule Tracking ==

After the approval of the baseline schedule by the stakeholders, it will be retained as target. Schedule tracking is to analyze the differences between the planned and the actual dates. Changes in the critical path, schedule variances and delays are determined and reported in all updates.

== Summary ==

In project time management, baseline schedules are used as references to analyze the schedule performance of the project. It is a reference document which compares the planned and the actual dates. Schedule Performance Index (SPI) can be used to understand how far ahead or behind the project is at the point of analysis.

Reference: [https://www.projectcubicle.com/baseline-schedule/ Projectcubicle.com]

[[Category:Conservation]]

Baseline schedule

2018-03-29T12:20:10Z

Kathy: Created page with "Time management is one of the most important processes in project management. It is the discipline of planning and controlling the duration of a project. A baseline schedule is a..."

Time management is one of the most important processes in project management. It is the discipline of planning and controlling the duration of a project. A baseline schedule is a main project management document that should be created before the project starts. It demonstrates the project execution strategy, key project deliverables, activity planned dates and milestones. Activities are grouped under different work breakdown structure levels. Engineering, procurement, production, testing etc. processes are highlighted in baseline schedules.

== Baseline Schedule ==

Baseline schedule is also known as schedule baseline or target schedule. It is an approved copy of project schedule that can be used to analyze the project performance and report the schedule variances. Baseline schedule creates a road map to prepare baseline budget, mobilization plans and resource allocation plans.

According to PMBOK Guide, a Project Schedule represents “The planned dates for performing activities and the planned dates for meeting milestones.”

Baselines are the frozen version of the project schedules. Before updating the project schedule for the first time, baseline schedule is retained as a target. This means the baseline schedule is the same as the project schedule at the beginning.

As the project progressed and tasks are performed, the baseline schedule may deviate from the actual schedule. It may not reflect the current project status. Risks and unforeseen events may effect and some changes outside the control of project management team may cause delays.

Under these circumstances remedial actions should be taken and recovery plans should be created. It is important to emphasize that baselines should only be changed when there is a change in scope.

== Baseline Schedule Tracking ==

After the approval of the baseline schedule by the stakeholders, it will be retained as target. Schedule tracking is to analyze the differences between the planned and the actual dates. Changes in the critical path, schedule variances and delays are determined and reported in all updates.

== Summary ==

In project time management, baseline schedules are used as references to analyze the schedule performance of the project. It is a reference document which compares the planned and the actual dates. Schedule Performance Index (SPI) can be used to understand how far ahead or behind the project is at the point of analysis.

Reference: [https://www.projectcubicle.com/baseline-schedule/ Projectcubicle.com]

[[Category:Conservation]]