CONSTRUCTION

Project Management
Guide
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PART 1 // PLANNING
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. . . . . . BROUGHT TO YOU BY . . . . . .
CONSTRUCTION PROJECT MANAGMENT GUIDE • Part 1 // Planning

TABLE OF CONTENTS

CHAPTER 1 - UNDERSTANDING AN ESTIMATE’S INFLUENCE

ON PROJECT PLANNING SUCCESS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Digging into the Estimate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Where to Look for Potential Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
An Estimate’s Influence on the Project Structure . . . . . . . . . . . . . . . . . . . 6
Pitfalls of Reassigned Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

CHAPTER 2 - ASSESSING RISK. . . . . . . . . . . . . . . . . . . . . . . . . 8

Take the Bite Out of Construction Project Risks . . . . . . . . . . . . . . . . . . . . 9
Categorize and Dominate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Risk Landscape . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Assess and Manage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

CHAPTER 3 - PLAN FOR QUALITY . . . . . . . . . . . . . . . . . . . . . . . 15

Matching Quality Standards to the Task . . . . . . . . . . . . . . . . . . . . . . . . 20
Minimizing Material Quality Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

CHAPTER 4 - HOW TO SUCCESSFULLY

MANAGE INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
More Data, More Types of Data . . . . . . . . . . . . . . . . . . . . . . . . 26
What to Manage? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Potential Problems with Management Systems . . . . . . . . . . . . . . . . 28
Exploring the Cloud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Ensure Accountability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

More Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
About Procore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
CHAPTER 1 • Understanding the Estimate’s Influence on Project Planning Success 1

1
CHAPTER

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Understanding an Estimate’s Influence
on Project Planning Success
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2 CHAPTER 1 • Understanding the Estimate’s Influence on Project Planning Success

Once a bid is won, or a project is

approved, the management of a project
begins. An estimate influences significant
aspects of the project management
process. It informs the structure of the
schedule, influences the processes used
during construction, and determines
resource use.

An estimate, in some respects, also sets

up self-fulfilling prophecies born from the
need to stay within a project budget.

If the budget for a portion of a project is

too low, project managers will search for
processes and resources that meet the
budget. The same applies if the budget
for a portion of a project is too high.

While project managers are typically

very familiar with construction processes,
there are many ways for any particular
part of a project to be completed, and
choosing one of lower-cost may appear
to be the best solution in light of the cost
estimated. Likewise, over–engineering
can occur when estimating costs are high
enough to allow it.
CHAPTER 1 • Understanding the Estimate’s Influence on Project Planning Success 3

There are other aspects related to the The reality of many projects is that
estimate that require close scrutiny. an estimate becomes a living thing,
Many times the estimate is prepared complete with constant revisions as
before submittals are completed or the actual construction nears. To be
owner selections are made. For project successful, project managers have
managers, this means they aren’t to look way ahead as they plan and
working with the complete picture anticipate aspects within the estimate
and will have a difficult time matching that are likely to derail the schedule.
resources, materials and processes to Identifying these in advance allows
the tasks. project managers to prepare for any
potential delays.
4 CHAPTER 1 • Understanding the Estimate’s Influence on Project Planning Success

DIGGING INTO THE

ESTIMATE

Thoughtful estimators are worth their

weight in gold, but project managers
can’t always expect to get the best.

And don’t forget the element of

time. Estimators are often in a hurry
because project scopes arrive late
and bid days get moved up.

Ideally, estimators would have all

the time they need to consider the
tasks of a project and investigate the
processes they would like to use.
But unfortunately, this is wishful
thinking. Therefore, project
managers have to assume the
estimate they’re going to work
from is flawed, and do the
necessary work to locate those
flaws and prepare schedules that
reflect the realities of a project,
both from a cost and time
perspective.
CHAPTER 1 • Understanding the Estimate’s Influence on Project Planning Success 5

WHERE TO LOOK FOR

POTENTIAL PROBLEMS:

GENERAL CONDITIONS - So many UNUSUAL EXPOSURES - This includes

things find their way into general aspects the contractor has not had
conditions that it can become a sort of much experience with, and therefore,
catchall for items where there isn’t a estimating might not be as up to speed
clear assembly. But it’s also the place as it needs to be. For example, many
where many items end up for further contractors routinely work with trenches
scrutiny. These items might be unique to of shallow depth, two to four feet deep.
a particular area such as environmental An unusual exposure might include a
or regulatory aspects or the costs of particular job that requires trenches six
special insurances and permits. or more feet deep, requiring shoring and
other protective measures.
TIGHT DEADLINES - When project
bid schedules are condensed you can UNUSUAL PROCESSES - In construction
expect a lot more planning has gone there is often more than one way to
into preparing the estimate. These correctly do a particular installation.
assumptions often center on common The phrase, “generally accepted
processes and expenses unique to the workmanship,” is a catchall phrase that
particular shop. They may include best saves time from detailing every step
“guestimates” based upon a long track of a process. But when that phrase is
record of costs. The problem is, those attached to a process the contractors
might not be accurate if the assumed aren’t familiar with, the sky’s the limit as
supplier, for example, is not going to to what constitutes “acceptable”.
be involved in the job, or participants
change before a project gets underway.
6 CHAPTER 1 • Understanding the Estimate’s Influence on Project Planning Success

AN ESTIMATE’S INFLUENCE ON
THE PROJECT STRUCTURE

An estimate creates a rough outline of a

schedule because a schedule is often built
linearly, evolving from start to finish. The
pitfalls that can arise involve the level of
detail included in the work breakdown
structure. When the work breakdown
structure is not adequately broken down
into individual tasks, and the schedule
follows suit, discrepancies arise that
creep into the plan. For example, a work
breakdown structure item derived from
an assembly can be missing components
when the assembly that was used on a
previous job is applied to a new job with
slightly different specifications.

PERMITS

DEMOLITION

LANDSCAPING

MATERIALS

LABOR
CHAPTER 1 • Understanding the Estimate’s Influence on Project Planning Success 7

PITFALLS OF REASSIGNED COSTS

Ideally, estimates would remain accurate on all levels from start to finish. Cost
breakdowns per division wouldn’t undergo an ounce of change and the amount
witnessed at the beginning of the project would resemble the amount at the end of
the project. This experience, however, does not represent the norm. In most cases,
expenses not only change throughout a project, but on a daily basis.

Inexperienced owners have difficulty viewing office overhead separately from profit
and assume their designers’ plans will finish without modifications of any kind.

These examples illustrate the extreme importance of accurate estimation that

includes risk assessment, potential delays and setbacks.
8 CHAPTER 2 • Assessing Risk

2
CHAPTER

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Assessing Risk
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CHAPTER 2 • Assessing Risk 9

TAKE THE BITE OUT OF

CONSTRUCTION PROJECT
RISKS

In the best-case scenario, managing

risk in construction begins during the
project feasibility stage. Rather than
hoping for the best and not preparing
for the worst, your team should
evaluate risk assessments as soon as
possible.

Surveys from 2005 and 2007 by

KPMG found significant contrasting
results when examining risk
assessments from an owner’s
perspective and a contractor’s
perspective. This is not a surprising
result since the two parties have
different relationships with the
project.

While this may seem like a problem,

it can actually be a benefit if both
parties communicate the potential
risks from their own perspective. It
is best to know any and all potential
risks as soon as possible so your
team can prepare for all types of risks
and not just ones from a particular
division.
10 CHAPTER 2 • Assessing Risk

CATEGORIZE AND DOMINATE

Don’t simply be aware of the risks, but evaluate their significance as related to
project objectives such as cost, time, quality, environment and safety. In the
article, “Identifying Key Risks in Construction Projects: Life Cycle and Stakeholder
Perspectives,” Dr Patrick, X.W. Zou, Dr Guomin Zhang and Professor Jia-Yuan Wang,
created a ranking order of project risks relative to each category.

Interestingly, “tight project schedule” was ranked as the top risk in all categories.
“Unsuitable construction program planning” arising from inadequate scheduling,
innovative design and/or the contractor’s lack of knowledge in planning was another
high-ranking risk. In order to avoid these risks, involve the contractor during the
design phase.
CHAPTER 2 • Assessing Risk 11

Other risks arise from the sheer volume of information and participants involved
in projects. Contractors are challenged by the number of entities involved, which
can lead to gaps in communication if incorrectly managed. The best results come
when contractors focus on employing skilled planners and managers and implement
flexible and comprehensive project management tools.
12 CHAPTER 2 • Assessing Risk

RISK LANDSCAPE

In a perfect world, there would always be ample employees qualified to perform

necessary work. Unfortunately this is not a reality. The increasing shortage of
construction workers and skilled managers is having a greater and greater impact
on projects—mainly increasing the risk of delays. This, in turn, increases the
importance of effectively monitoring the availability of personnel and maintaining
communications across all participants in order to minimize potential delays.

The litigious nature of societies today is another area with increasing risks. Disputes
tend to arise when there are discrepancies or variations in the design. Mitigating
these requires close coordination between the design team and contractors.
Contractors should also negotiate with the owner and design teams to not only
minimize their impact, but inform the design change itself.
CHAPTER 2 • Assessing Risk 13

Disputes also arise from people who are not direct stakeholders. For example, noise,
dust, traffic, and environmental complaints are constantly increasing. Don’t wait to
receive these complaints, but rather address them during the design and planning
phases.

The unfortunate reality is that contractors also have to alleviate risks posed by
subcontractors. One of the top risks for subcontractors is “low management
competency.” This arises from the nature of subcontract work, which requires
managing people, materials and equipment across multiple sites. When
subcontractors are especially skilled in their trades, they tend to attract more work
than they can manage. Besides ensuring subcontractors have the required job skills,
contractors should also consider their level of management competency.
14 CHAPTER 2 • Assessing Risk

ASSESS AND MANAGE

Every project is unique with its own exceptional set of risks, but the process of
assessing and addressing them can be generally outlined in these eight stages.

01 Outline the process to determine and manage risks throughout the

project’s lifetime.

02 Identify risks. Don’t only name them — describe their characteristics.

03 Determine the impacts of each risk and its likelihood of occurring. As

risks come into focus, determine which ones to directly mitigate.

04 Stakeholders review the risks as a whole and consider what their

overall effect will be on the budget and project completion.

05 Address the risks by describing the actions that will be taken to

resolve each one.

06 Assign responsibility.

07 Monitor and control risks.

08 Identify new risks as they arise, and solve them immediately, or plan
to manage them for as long as they are active risks.

Construction is a risky business and one where risks can arise at any time during the
project lifecycle. But with adequate risk assessment and planning, risks that pose the
greatest threat to projects can simply become items to manage.
CHAPTER 3 • Plan for Quality 15

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100%
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3
CHAPTER

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Plan for Quality
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16 CHAPTER 3 • Plan for Quality

COMMUNICATION

The question of quality enters a project at

every stage, but most experts agree that
it’s the quality control strategies discussed
during the planning stages that set the tone
for ensuring a quality project actually gets
built.

Discussing quality planning at the beginning

of the project also helps make sure it
doesn’t slip through the cracks in today’s
world of speed building. The core tenet of
organizing for quality is communication.
CHAPTER 3 • Plan for Quality 17

Brian Wessels, LEED AP BD+C, CESSWI, and project manager at Greiner Construction
says effective communication ensures the knowledge of specifications gets
transferred to everyone involved in the project.

He cites cloud-based project management software such as Procore, as offering one

of the best solutions to ensuring everyone has access to create, update and distribute
project documentation including data such as contracts, RFIs, submittals, drawings,
and photos.
18 CHAPTER 3 • Plan for Quality

Areas of responsibility are closely

related to the system of communication
because they establish where the
“buck stops” when it comes to quality,
regardless of where or when the
question of quality arises during the
project.

If the lead carpenter is responsible for

ensuring walls are built to specification,
that’s a nearly ideal situation because
you want decision-making at the lowest
possible level.

You have to assume the people

overseeing the work are qualified and
competent enough to perform that role.

If that is not the case, you should

consider reshuffling personnel to make
sure people exercising oversight have
the correct skills and experience. Once
trust is established, it stands to reason
that those who are closest to where the
work is performed are in the best place
to also oversee quality.
CHAPTER 3 • Plan for Quality 19

You should make sure each person responsible for ensuring quality actually knows it
is their responsibility.

During the planning stages it’s a good idea to have a quality control meeting where
roles and responsibilities for quality are decided. This meeting should include
everyone with supervisory oversight, including subcontractors. But there’s also a
larger quality picture that relates to all people on the project.

Wessels advises that quality control really comes down to the individual and whether
or not they’re invested in the project. If they are, they’ll be motivated to do the right
thing, and if all share that investment, it’s part of the culture, and will go a long way
toward ensuring quality. He says it’s also key to make sure people have the right tools
such as the ability to easily see the latest specifications from a computer or smart
device. Wessels claims there are few projects today that have budgets allowing large
numbers of supervisors to be circulating around the site ensuring things are built
properly.
20 CHAPTER 3 • Plan for Quality

MATCH QUALITY STANDARDS TO THE TASK

With performance specifications, the outcome is specified while the methods are left
to the builder.

The performance specification for a wall might require it be structurally appropriate

and sound, preventing moisture intrusion and insulated to a minimum standard.

With this type of specification, it is up to the contractor to decide how to build the
wall to meet the specifications within the cost allowed. Performance specifications
also provide an opportunity to incentivize quality. For example, contractors could be
eligible for bonus payments when the work in place exceeds the minimum standards.

Most projects have a combination of specifications and performance standards that

should be scrutinized in the planning stages with the goal of understanding what
they are requiring, and ensuring they meet local conditions.

For example, there could be instances where a certain material specified for use is
not available. Knowing this upfront allows you to source an alternative and have it
approved long before it’s needed.
CHAPTER 3 • Plan for Quality 21

MINIMIZE MATERIAL QUALITY ISSUES

Ensuring components are installed and built correctly is just one aspect of
quality control.

Another, and probably more onerous aspect is verifying that materials and fixtures
used for construction are the right quality themselves.

In recent years, a spate of counterfeit electrical components bearing all the official
marks of certification has flooded the marketplace. Not only are these components
often made of substandard or dangerous materials, they haven’t really been certified
by Underwriters Laboratories. Other examples include drywall made with a material
that promotes mold growth and lumber with such high moisture that it not only
warps and twists in place, but encourages mold growth.
22 CHAPTER 3 • Plan for Quality

A global marketplace feeds today’s building environment. It is impossible to

guarantee everything going into a building is of high quality, but there are steps to
help minimize potential disasters.

During the planning stages, and even back in the estimating stages, there should be a
commitment to source from known vendors that have consistently delivered quality.
And even then, random checks on quality are a good idea.

During the planning stages, when products and materials are unknown, or are
available from previously unknown sources, it is prudent to get samples and test
them appropriately.

There are also highly critical components that should always be considered for
testing. Concrete is one of them. Once installed, concrete carries a major cost to
remove and replace, so ensuring the mix meets the specifications and is appropriate
for the weather is an inexpensive form of insurance. The process of ensuring the
quality of materials and products used in a project ends only when the project ends
and controls should be established throughout the timeline to make sure quality
remains high.
CHAPTER 3 • Plan for Quality 23

With quality materials and workmanship accounted for in the planning stages and
an aggressive effort built into the duration of the project to monitor quality, projects
can be successfully completed at high quality, even in today’s fast-paced building
environment.

From a project management perspective, the key lies in thorough planning.

24 CHAPTER 4 • How to Successfully Manage Information

4
CHAPTER

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How to Successfully Manage Information
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CHAPTER 4 • How to Successfully Manage Information 25

The amount of necessary information and documentation in a construction project

is enormous.

Maged Abdelsayed of Tardif, Murray & Assoc., consultants based in Quebec, Canada,
estimate a $10 million project generates 56,000 pages of documentation, or data.

Data includes things like contracts, RFIs and submittals, which are currently accessed
on an array of diverse technologies in 2014. As the ease of creating and sharing
data has increased, so too has the amount of data. While sharing and updating the
most current information for all participants seems daunting, the instant access
and availability to this documentation from anywhere also holds promise for new
capabilities.
26 CHAPTER 4 • How to Successfully Manage Information

MORE DATA, MORE TYPES OF DATA

Construction professionals are discovering the real power buried in all the information
accumulated by projects and its purposes beyond the project’s construction lifetime.

For example, new data mining and search technologies make it easier than ever to
compile “as-builts” after a project’s completion.

Furthermore, harvesting BIM models, turning equipment specifications into building

maintenance and repair tools, drastically reduces the cost of maintenance of a facility.

With an increase in the amount of data and growing value, establishing an

information/data management system is a must. In Digital Archival of Construction
Project Information, authors list 49 different types of documents created on a typical
construction project in 23 different file formats.

Thankfully, construction software and cloud services can manage that amount
of documentation and file type diversity. Cloud offerings are indispensible in a
construction project as any of these files can be accessed from anywhere at any time.
CHAPTER 4 • How to Successfully Manage Information 27

WHAT TO MANAGE?

Once a project actively begins construction, the following types of information should
be managed within one database:

01 Drawings

02 RFIs

03 Schedules

04 Budgeting

05 Punch Lists

06 Daily Log

07 Submittals and Transmittals

08 Directories

09 Photos
28 CHAPTER 4 • How to Successfully Manage Information

POTENTIAL PROBLEMS WITH MANAGEMENT SYSTEMS

Once you choose a management system, it’s not a simple cakewalk from there.

You still need to train your team on the chosen software, accumulate and upload all
necessary documentation, and continually update the project information with any
changes.

Some of the most common problems experienced include:

• Inability to find the right information when needed

• Collecting all necessary data from numerous stakeholders

• Difficulties in distributing information to many stakeholders

Not surprisingly, one of the chief contributors to these issues is the tendency for
management solutions to operate in their own silos with little interoperability with
other software. Therefore, a primary consideration when establishing information
systems for a project is the system’s integration capabilities and supported browsers
and devices.
CHAPTER 4 • How to Successfully Manage Information 29

There is also the difficulty of granting system access to members outside the
company, including vendors and subcontractors.

If a vendor can access the project schedule, they can see when specific materials
are needed and better coordinate delivery to the jobsite. Likewise, a subcontractor
having access to QC (Quality Control) documentation can easily locate quality
specifications related to a particular operation.

For example, if the specification of an item changes, and the change doesn’t make it
to the vendor on time and the document record is updated accordingly, the wrong
item will most likely be delivered. A more efficient process involves having only one
file version accessible to everyone. That way, if any changes are made, everyone is
updated immediately.
30 CHAPTER 4 • How to Successfully Manage Information

EXPLORING THE CLOUD

A popular alternative to using in-house systems for project management is a cloud-

based service.

Assuming the cloud vendor exercises sound security practices and an established
backup program, the benefits can extend beyond mere management. For example,
cloud systems don’t require IT support and are usually pay-as-you-go, allowing you to
scale the service up or down based on your needs.

Look for these key aspects when choosing your project management solution:

• Status tracking
• Capacity to assign responsibility for tasks with due dates
• Permission levels
• RFIs and Submittal management
• Simplified reporting that is customizable
• Automated reminders and update notifications
• Search filters
CHAPTER 4 • How to Successfully Manage Information 31

ENSURE ACCOUNTABILITY

Once a system is chosen and implemented, the most difficult challenge is ensuring
your team remains accountable for their responsibilities. The software won’t simply
run itself — files must be uploaded, contact directories built, and documents
consistently updated.

The best defense for ensuring accountability is a good offense. Be sure to assign
responsibility, monitor progress, send reminders for upcoming due dates, and appoint
second points of contact to receive notifications if primary contacts are unavailable
or nonresponsive.
 32 CHAPTER 4 • How to Successfully Manage Information

Today’s construction projects are more information intensive than ever and the trend
toward greater and greater amounts of data is only growing.

In the grand scheme of things, information gathering, application, and archiving

are creating new ways of information storage, use, and distribution. Construction
companies that wake to the realization of information as a commodity will find new
and better ways to use it and discover previously unavailable revenue streams.

The process starts with thorough project management planning with an eye toward
project data uses that live long beyond the individual project.

DRAWING
MANAGEMENT

ACCOUNTING

SCHEDULING

RFIs
CONSTRUCTION PROJECT MANAGMENT GUIDE • Part 1 // Planning 33

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