Thomas, H. Randolph, Ellis, Ralph D PDF
Thomas, H. Randolph, Ellis, Ralph D PDF
Thomas, H. Randolph, Ellis, Ralph D PDF
Relative to planning, project risks can be organized into the following four catego-
ries: (1) things that can go wrong, (2) surprises (or the unknown), (3) contractual
risks, and (4) relations with project team members. These risks are shown concep-
tually in Fig. 3-1. There is no relationship between the categories listed above and the
proportions shown in Fig. 3-1. The focus of planning is to develop plans to avoid the
risks or to minimize the economic effects from events in these four categories. Two
situations commonly occur on a construction site: things go wrong, and there are
surprises. One can anticipate and plan for many of the things that can go wrong. One
can also plan for some surprises. Other elements of risks include contractual risks
and relations with project team members. Some planning can be done for these two
areas of risk. Where the risks are foreseeably high, the contractor may choose not to
submit a bid. Through a risk-based planning process, a contractor can plan for and
negate many project risks, or if the project is too risky, decline to submit a bid.
Negating risks leads to a more profitable construction project.
This chapter defines the short-range (as opposed to strategic) steps that make up
an effective contractor risk-based project planning process for small- and medium-
size projects. Because many larger projects can be viewed as a collection of smaller
33
Construction Site Management and Labor Productivity Improvement
34 CONSTRUCTION SITE MANAGEMENT AND LABOR PRODUCTIVITY IMPROVEMENT
Elements of Risk
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projects, there is application to larger projects as well. Following these steps will lead
to better labor productivity, lower cost, and shorter schedules. Thus, the objective of
risk-based planning is to anticipate surprises and things that may go wrong and to
negate or eliminate these risks through better planning. Thus, it is important for a
contractor to answer the question: What can go wrong?
The general approach to planning involves two broad steps: (1) deciding on prelimi-
nary considerations and (2) developing detailed plans. The preliminary considera-
tions include a risk assessment to decide whether to submit a bid. If a decision is made
to submit a bid, bid preparation involves deciding on a preliminary plan followed
by optimizing the preliminary plan through the preparation of various detailed
plans (step 2). Other preliminary considerations refer to preparing a preliminary
schedule; developing a contracting strategy and a general strategy; selecting major
means, methods, and equipment; and revising the preliminary schedule. Once the
preliminary considerations have been finalized, various detailed plans need to be
developed. Detailed plans include material delivery schemes, site layout plans, erosion
and sediment control (E&S) plans, environmental considerations, CPM analyses,
sequences that are essential to success (ETS sequences), and operational plans.
Because these are specific to the project and the techniques used may vary.
The techniques used to develop detailed plans are described in lieu of describing
the plans themselves. The techniques described are the short interval production
schedule (SIPS), velocity (production rate) charts, and linear scheduling. A critical
path method (CPM) schedule is another technique that is frequently used, but it is not
discussed herein because there are numerous texts that are devoted exclusively
to CPM schedules (Hinze 2008). Other techniques include sequence plans and
coordination drawings. Many of the detailed aspects of planning and executing and
for formulating low-cost plans are covered in subsequent chapters. The goal
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is to construct the project in as short a time as practical while minimizing the need
for field labor. After the notice of award is given, the planning function does not cease.
Contractors must plan for submittals and managing changes.
The steps in the planning process are best illustrated with a case study project where
the lack of planning was readily obvious. The steps are applied retrospectively to this
project. The case study project is the three-story State College Municipal Building
(SCMB). It was constructed in State College, Pennsylvania, in 2002 at a cost of about
$5 million.
The building superstructure is structural steel, and the floor slabs are precast
concrete. The project also contains a full-footprint basement. Construction of the
basement required excavation, rock removal, footers, and the construction of a
reinforced concrete wall. The building facade is masonry. An auditorium is included
on the top floor. Fig. 3-2 shows the status of the SCMB construction after the precast
slabs were installed.
The construction site was small and was constrained on all four sides by city
streets and existing buildings. Ingress and egress points to the site were limited.
Trailer
Pile
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Trailer
Tools
Site Utilities
The building footprint took about 60–70% of the site area, so space for on-site
storage was minimal. The constrained nature of the site is shown in Fig. 3-3, which
is the site layout used by the contractor throughout the project. The contractor
used only one ingress and egress point for material deliveries. Using this layout,
delivery trucks had difficulty accessing the site, and drive-through deliveries were
not possible. The contractor chose to allocate space for an earthen spoil pile,
trailers, and a parking area within the site boundary. Trailers and the parking
area were located first. Material storage and other needs were assigned to the
remaining unoccupied space.
The construction of this project was challenging, even though it was a relatively
small project. Careful planning was justified.
For all projects during the bid period and before beginning to prepare the estimate,
a paramount question to answer is this: Using conventional means and methods, can
the contractor complete the project within the time allotted by the contract? If not,
unconventional means and methods may need to be applied. Because time is money,
the goal of contractors should always be to complete the project in as short a time as
practical, even if adequate time is provided for in the contract. Shorter schedules
minimize the contractor’s risk exposure. It has been observed by the authors that
contractors tend to use all the time allowed by the contract, even if a shorter
schedule is practical. Some of the planning steps outlined in the following may be
deferred on some projects until after the intent to award is given, but all steps should
be done before project execution begins.
A risk assessment should always be done before the decision to submit a bid is
made. Contractors may choose to avoid bidding on projects where there are high
risks. Once the decision to bid is made, preliminary considerations must be decided
upon. These include the following:
Once strategies and considerations have been decided upon, various plans need
to be developed that describe in detail how the work will be done. Following these
plans will minimize risks. These plans include the following:
• Detailed plans:
○ Material delivery schemes,
• Operational plans,
• Floor or area completion,
• Material delivery plans,
• Material distribution plans,
• Sequence plans,
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• Coordination drawings,
• Final execution schedule,
• Submittal and shop drawing schedule, and
• Change management.
The process described here should be viewed as a starting point, and more steps can be
added as the need arises. However, the process described is generalized so as to be
applicable to numerous projects. The steps in the planning process include assess-
ments, strategies, and plans. The planning process is shown in Fig. 3-4. The steps are the
following: (1) assess risks, (2) develop a preliminary execution plan, (3) decide on key
macro strategies, (4) determine equipment needs and methods, (5) revise the prelimi-
nary execution plan, (6) decide on material delivery schemes, (7) develop E&S and
site drainage plans, (8) understand environmental and regulatory issues, (9) develop
site layout plans, (10) identify the sequences that are essential to success (ETS),
(11) calculate time windows, (12) develop detailed operational plans, (13) develop
proactive strategies to ensure construction input into design, (14) finalize the execu-
tion plan (schedule), (15) communicate and enforce plans, (16) develop a submittal
and shop drawing schedule, and (17) plan for change management. Because the
process should be flexible and each step should provide input to the next step, it is
permissible to revise prior step(s) if a better plan emerges.
1. Assess Risks
Decision to Bid
Preliminary Considerations
2. Develop a Preliminary Execution Plan
3. Decide on Key Macro Strategies
4. Determine the Major Means, Methods, and Equipment Needs
5. Revise Preliminary Execution Plan
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Detailed Plans
6. Decide on Material Delivery Schemes
7. Develop E&S and Site Drainage Plans
8. Understand Environmental and Regulatory Issues
Bid Development
9. Develop Site Layout Plans
10. Identify ETS Sequences
11. Calculate Time Windows
12. Develop Detailed Operational Plans
Assess Risks
Contractual Risks—The discussion on planning begins with an assessment of the
contract risks. Some contracts are known to contain harsh language that imposes
significant risks on contractors and subcontractors (Thomas et al. 2000). These risks
need to be known before a decision to bid is made. Additionally, contracts may
contain language related to means and methods, when certain operations can be
performed, liquidated damages, intermediate milestone dates, and much more.
A careful reading of the contract is paramount. Pay special attention to the
termination clause, payment provisions, and the acceleration clause.
Noncontractual Risks—Risks go beyond what is written in the contract. One
noncontractual risk that should be evaluated is the likelihood of a time extension,
irrespective of the contract language. This aspect is often a function of the type of
project. For instance, for schools and sports stadiums, extensions of time are unlikely.
If a wastewater plant is under a court order to upgrade its treatment processes, the
owner will be reluctant to grant an extension of time, regardless of what the contract
says. These situations increase the contractor’s risk and are especially problematic if
the start of construction is delayed.
The reputation of the key players and organizations is another important risk
consideration that needs to be evaluated. Some people are just hard to get along
with. Others are sticklers for details. Will the owner pay on time? Do the contract
documents appear complete and generally free from errors and omissions? Will the
parties make timely decisions? These are but a few considerations that can make a
project risky for the contractor.
Example
How an owner handles requests for an extension of time on a construction project is
filled with risks. The court case of Alexander & Shankle, Inc., v. Metropolitan Government
of Nashville and Davidson County (A&S) sheds some light on contractor risks and
owner obligations (Alexander & Shankle, Inc., v. Metropolitan Government of Nashville
and Davidson County 2007). Some of the more notable risks that materialized and
adversely affected A&S were the following:
If the contractor had done a diligent risk assessment, some or all of these risks
could have been foreseen, and the decision to submit a bid might have been
different. The factual aspects of the case are given below.
The Project
On March 25, 2003, the Metropolitan Government of Nashville and Davidson
County (Metro) entered into a contract with Alexander & Shankle, Inc. (A&S),
under which A&S became general contractor for the construction of Oliver Middle
School and Shayne Elementary School, which were both to be constructed on the
same site. The A&S bid was $11,841,000. A&S experienced numerous delays;
however, Metro refused to extend the substantial completion date of the project.
The Contract
The contract provided the following:
[a]ll limitations of time set forth herein are material and are of the essence
of this contract.
The contract provided that A&S would be liable for liquidated damages as a
result of any delay until the project was substantially complete. Metro reserved the
right to refuse payment if Metro was of the opinion that A&S’s rate of progress was
such that substantial completion of the project would be delayed.
The contract provided that if A&S was delayed in performing a critical task
because of some act or omission of Metro or someone acting on Metro’s behalf,
including an authorized change order, then A&S could submit a written request for
an extension of time with Metro or its architect or engineer, setting forth in detail all
known facts and circumstances supporting the claim.
Finally, the contract provided for two methods of termination by Metro. The first
allowed Metro to terminate the contract for convenience. If the contract were
terminated in this fashion, A&S was to be compensated for labor, material, equip-
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ment, and services accepted under the contract, and certain costs that had been
incurred in preparing to perform and in performing the terminated portion of the
work.
The second method of termination by Metro was “for cause.” If A&S failed to
perform any portion of its work in a timely manner; failed to supply adequate labor,
supervisory personnel, or proper equipment or materials; or violated any material
provision of the contract, then Metro had the right to terminate A&S’s performance,
assume possession of the site, and complete the work. If the costs and expenses of
completing the work exceeded the contract price, then A&S was liable for the excess
costs. If such costs and expenses were less than the unpaid amount of the contract
price, then A&S was to be paid the unused amount.
Several provisions of the contract should have been cause for concern to A&S.
The owner’s right to not pay A&S if the owner was of the opinion that A&S’s rate
of progress was such that substantial completion of the project would be delayed
should have been a cause for concern because nonpayment would probably result
in delayed completion. The termination clauses also pose high risks.
Contractor Execution
A&S was given notice to proceed under the contract on April 1, 2003. From the
beginning, there were significant delays on the project. Excavation at the site was
initially delayed because a house located on the site had not been moved. A&S was
not allowed to demolish the house because it had been given to a private individual
and Metro was waiting for that individual to make arrangements to have it moved.
The house was finally moved on April 23, 2003. A&S requested a 15-day extension of
time because of the delay. The project architect responded to this request stating,
“The additional time of 15 days is approved. It has been stated by the Owner that the
original date of substantial completion should remain intact until the end of the job,
at which time, a change order will be issued if the additional time is needed to
complete the work.”
Once the site preparation began, it was immediately discovered that poor soil
conditions not anticipated by the contract documents would require corrective
measures. It was not determined what would be done to remedy this condition until
August 26, 2003 (approximately four months later), when the parties agreed to lower
the elevation of Oliver Middle School and the surrounding area to provide fill
material for the Shayne Elementary School building. A&S requested an additional
110-day extension of time, including “71 days for soil, 15 days for house removal
delays, 3 days for providing additional drainage at Shayne Elementary, and 21 days
for additional undercut of soil on the site : : : ” A&S signed Change Order
No. 1 (CO1) on September 10, 2003. CO1 provided for an extension of 50 days, and
the date of substantial completion was set as July 15, 2004.
Because of the delay in the commencement of the project, the masonry work,
which represented a significant portion of the work to be performed, was pushed
into the winter months rather than the summer and fall months as originally
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contemplated. By mid-January 2004, it was apparent that the project would not be
completed on time. About that time, Metro’s architect was said to have admitted that
the July 15, 2004, completion date was not based on what was practical, but only on
the desire of Metro to have the schools ready for the beginning of the 2004–2005
school year. After that time, however, Metro continued to revise the scope of the
work but steadfastly refused to alter the substantial completion date.
On February 23, 2004, the parties executed Change Order No. 2 (CO2). This
change order required A&S to remove and replace an additional 15,436 cubic
yards of unsuitable soil at the Shayne Elementary site. A&S requested an
additional 21 days to perform this work, but Metro refused to grant any time
extension. Before executing CO2, A&S notified Metro in writing that A&S was
unable to sign the change order because of the denial of the requested extension
of time. A&S explained that in an effort to keep the project moving forward, A&S
would sign the change order with the understanding that A&S reserved the
right to recapture the days lost during performance of the work. A&S ultimately
signed CO2.
From mid-February 2004 through the end of July 2004, Metro continued to
make changes in the scope of the work. There were 13 letters from A&S to Metro
requesting a total of 235 days additional time. No additional contract time was given
by Metro. Three of the letters are worthy of note.
A letter dated February 17, 2004, quoted the cost to “make kitchen hood and
mechanical equipment room piping and cooling tower piping changes” and
requested 14 days additional contract time to perform the changes. The project
manager (PM) for Metro wrote “Proceed” on the letter and signed it with the date
June 9, 2004.
By letter dated June 15, 2004, A&S quoted the cost of providing ceiling diffusers
at Shayne Elementary School and requested an additional 40 days of contract time
after authorization for their installation. The PM returned this letter with the
notation, “Proceed with installation. Time extension to be determined.” This
notation was dated June 28, 2004.
In the third letter, dated June 3, 2004, A&S quoted the cost of providing an
outside air supply for three heat pumps in Shayne Elementary School and noted that
the “mechanical subcontractor has requested 18 calendar days of contract time to
perform the necessary work required to supply outside air to the heat pumps.”
On the same day, the architect instructed A&S to advise the mechanical sub to
“[p]roceed with the work relative to adding a fresh air duct to HP-A1.2, and 3.”
Despite Metro’s PM and architect having seemingly approved time extensions,
Metro continued to assert that the substantial completion date was July 15, 2004.
After that date, Metro allowed A&S to continue working on the project and
continued paying for work performed. There is evidence that Metro revised the
scope of the project five times during the month of July 2004, with three of the
revisions coming after July 15, 2004. A&S and Metro agreed to alter the construction
schedule to allow certain portions of each school to be constructed to accommodate
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students on the opening day of school. On July 27, 2004, A&S’s mechanical
subcontractor, by letter, quoted a price to Metro for acceleration at the Oliver
School to complete its work there by August 8. The Metro PM accepted this proposal
on July 27, 2004, and noted on the letter that the mechanical subcontractor’s work at
Shayne Elementary should be completed by August 2, 2004. On July 29, 2004, Metro
agreed to a proposal by another subcontractor to accelerate fire alarm and moni-
toring installation and to complete their work by August 3, 2004. Also on July 29,
2004, Metro accepted a proposal from the plumbing and HVAC subcontractor to
accelerate its work and complete it by August 8, 2004, at Oliver, and by August 2,
2004, at Shayne.
On July 29, 2004, Metro delivered to A&S a termination letter stating that, as of
Friday, July 30, 2004, A&S would be relieved of their services because they had failed
to meet the July 15, 2004, substantial completion date. A&S removed itself from the
site and did no further work on the project. Metro completed construction of the
schools by hiring a construction superintendent and primarily using A&S’s sub-
contractors. A&S’s PM stated that he was told by the director of plant planning and
construction for Metro that A&S was terminated to recoup the additional costs of
having A&S’s subcontractors accelerate their work.
Many of the risks described in the above example were foreseeable. The
written contract posed certain risks that could have been foreseen. The owner’s
resistance to a time extension was foreseeable. A careful examination of the
geotechnical report might have suggested the presence of unsuitable soil.
Furthermore, an inquiry of other contractors about their past experiences with
Metro might have revealed that this owner or designer was not desirable to work
with or was untimely in making decisions. Despite the foreseeable risks, A&S
nevertheless chose to submit a bid. Is it likely that A&S made a profit on this
project? The reputation of the company may have been permanently damaged.
There may be a risk of insolvency.
This preliminary schedule usually has several sequential operations and should
reflect how a contractor would approach the job if given a generous amount of time
to perform the work. This schedule establishes whether the plan needs to be cost
oriented or time oriented. A cost-oriented schedule relies on conventional methods
and often applies sequential scheduling practices. A time-oriented schedule is driven
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Exterior
Insulation
Masonry
Cost Oriented
Exterior
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Insulation
Masonry
(Area 1)
Masonry
(Area 2)
Time Oriented
Rain is a fact of life for many construction projects. Contractors can ill afford for
the site to become muddy or for water to pond on the site. Installing and using
permanent site drainage can help alleviate these problems (Principle 1.4). These
facilities should be installed early and integrated into an erosion and sediment
control (E&S) plan. Principle 1.4 should be part of the contractor’s conventional
scheduling practices.
Shortening the Schedule—At least four ways of achieving shorter schedules
may be investigated. The first is the use of alternate methods. Different methods
may require different resources, space needs, or access, and alternate methods
may be more expensive. The second way involves the preassembly of components.
These first two alternatives may offer limited schedule advantages. The third way
involves applying multiple workstations and concurrent scheduling practices.
This approach can yield significant schedule shortening advantages (see Fig. 3-6).
A fourth way to potentially shorten a schedule is to select equipment that is larger
than ordinarily required. The increased power, greater leverage, and increased
Table 3-1. Fundamental Principles of Developing and Revising a Preliminary Execution Plan
No. Principle
Developing and Revising Preliminary Schedules
1.1 Plans and schedules should be done at a macro level.
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1.2 Preliminary plans and schedules should be based on the use of conventional means,
methods, and equipment.
1.3 Make effective use of constructed and footprint areas.
1.4 To allow more room and to mitigate rain runoff, install utilities and permanent site
drainage first.
Shortening Preliminary Schedules
2.1 Minimize storage area needs by off-loading directly from the delivery truck.
2.2 Minimize storage area needs, enhance the schedule, and improve labor
performance by preloading materials onto each floor or area.
2.3 Make use of service elevators to transport lightweight or bulky items like duct and
drywall to each floor or area.
2.4 Develop multiple site layout plans.
2.5 Sequence activities so as to avoid making noncritical activities critical.
2.6 Execute activities concurrently, rather than sequentially.
2.7 Seek opportunities to offer input into design.
2.8 Minimize the number of times a crane has to be moved.
2.9 Involve subcontractors in developing operational plans.
2.10 Unless necessary, do not plan the same activity to occur on the same day of
subsequent weeks, for example, we plan to place concrete every Thursday.
Developing Operational Plans
3.1 Partition the site into work area or zones.
3.2 Use multiple workstations to accelerate the work.
3.3 Vary crew sizes and teams to speed up or slow down the pace of the work and reduce
crew idle time.
3.4 Integrate the work of multiple contractors.
3.5 Apply time lags or buffers.
3.6 Schedule the work to accommodate continuity of work of key resources.
3.7 Begin work in a location where the work is the hardest because this work takes the
longest time.
3.8 Begin the work with the critical path work.
installation of the curtain wall. If successful, this strategy might have allowed the
building enclosure to occur sooner, meaning that electronic equipment installation
could have been expedited. This simple example illustrates how general strategies
can be applicable to all sizes and types of projects, even small, simple ones. If
everything goes as planned, the schedule may be shortened because the work began
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Temporary N (project)
Access
A D
Area IV
Area I
Area III
Area II
B C
These two examples show that where the work is started is not a trivial matter.
The key principles used are beginning where the work is hardest, partitioning,
concurrent scheduling, and using multiple workstations. The benefits are that the
time the work is exposed to inclement weather is reduced, and the potential for
schedule shortening is significant.
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Principle 2.4 states that contractors should develop multiple site layout plans as
required (see Chapter 4). Plans should be simple and should require minimal
change from one phase to the next. Site plans ensure the optimum use of the site.
Principles 2.5 and 2.6 relate to the sequencing of activities. The application of
these principles can lead to the significant shortening of schedules. A fundamental
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Basement
Wall
Ground Slab
Steel Erection
Conventional Schedule
Basement
Wall
Steel Erection
Ground Slab
Revised Schedule
3.8 Recapitulation
materials to the site before beginning work. This scheme would require large
amounts of storage space. Alternatively, the contractor may choose to erect certain
materials directly from the delivery truck. While storage space will be lessened,
delivery routes must be carefully planned. Preloading is a practice that can be highly
efficient, but it must be carefully planned (see Chapter 6). Carrying materials up the
stairs, one component at a time, is inefficient. Off-site staging areas or surge piles can
sometimes be effectively used.
contracts that requires the contractor to comply with all laws, ordinances, and
regulations. Failure to comply constitutes a breach of contract. The project engineer
and project manager need to be aware of a voluminous collection of federal, state,
and local requirements. Ignorance is not an option.
A construction project requires various permits. Not all permits are acquired by
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E&S Permit
E&S permits may not be required in all locales, yet it is frowned upon to discharge
sediment into a stream, especially an environmentally sensitive one. State pollution
laws and regulations may apply.
Wetlands Permit
A wetlands permit is required from the U.S. Army Corps of Engineers before
infringing on a wetland. Wetlands are not entirely defined by the amount of water
that is present, but the definition also takes into consideration the type of vegetation
and type of soil. Other criteria may be applied. Fig. 3-12 shows the economic
consequences of noncompliance.
Blasting Permit
In most places, blasting operations need to be supervised by a licensed blaster.
There are many other restrictions on blasting operations. The authors have
observed numerous projects that were plagued by ineffective blasting operations,
so a skilled blaster is a valuable resource who can save the contractor time and
money.
Must follow
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permit
Other
Environmental
concerns
Consequences
$45,000 fine
Building Permit
Building permits are usually supplied by the contractor, but practices may vary.
Other permits may be required. The contract needs to be consulted.
identified, and the contractor’s limited resources are marshaled to plan these
sequences in detail.
ETS sequences differ from critical path activities in that in a CPM schedule,
critical path activities cover the entire project, whereas ETS sequences may be only
one activity or a limited number of loosely connected activities covering a limited
portion of the project. Thus, an ETS sequence need not include a critical activity in
the CPM vernacular. ETS sequences are unique to each project. The common
denominator is that the sequence of activities must be done in an orderly or timely
manner if the project is to be successfully completed.
Several ETS sequences are of utmost importance on most projects.
For example, on building projects, it is always desirable to complete the founda-
tion work quickly to minimize the risk of exposure to rain and mud. In colder
climates, it is often desirable to enclose the building before winter weather
arrives. In rainy climates, it is desirable to seal the building to prevent mold.
There can be several ETS sequences on a single project, but probably no more
than two to four.
On the SCMB project (see Fig. 3-2), two ETS sequences are identified. These are
the following:
The concrete foundation wall activities are selected because the foundation wall
must be completed before the steel erection can begin, which is a critical activity, and
because of the desire to limit weather-related risks. The rapid removal of rock is
essential, and the selection of an appropriate method of rock removal is of
paramount importance.
The steel erection–plank installation–preloading activities are also selected as an
ETS sequence because the work of multiple contractors must be integrated. If steel is
completely erected first (sequentially), then inefficient work methods will be needed
to install the floor planks and to deliver the service and finish materials to each floor.
These three activities may not be linked in a CPM schedule, yet how this work is
integrated will have much to do with how productive and efficient the service and
finish work will be done. If a few more activities are added, this ETS sequence can
culminate in the building being enclosed and sealed to allow for temporary heat and
to prevent water infiltration.
CPM texts often refer to early-start and late-start schedules. The authors have
never observed either schedule being used on a construction project. Both have
significant disadvantages relative to time and cost. An early-start or late-start CPM
schedule is likely not an optimum schedule. For an early-start schedule, there is no
continuity of key resources, resource leveling may be needed, and the work of
multiple contractors may not be satisfactorily integrated. There may be other
deficiencies. A late-start schedule has little slack time, and most delays cannot be
tolerated. For these reasons, the CPM schedule is the starting point, not the end
point in the scheduling process.
At the end of this step, one should have a reasonable schedule that will allow
timely completion and time windows in which noncritical and critical activities can
be scheduled. Equipment and methods should be mostly finalized.
Tools Function
Bar chart Communicate the work plan.
CPM schedule Determine project duration and calculate time windows.
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SIPS Accelerate the cycle time or schedule, integrate the work of multiple
contractors, draw attention to efficient work methods, define
needed resources and feasibility, and ensure continuity of work for
key resources.
Linear scheduling Ensure continuity of work for key resources, draw attention to
appropriate crew sizes and avoid idle time, and avoid congestion.
Velocity charts Determine time lags and ensure continuity of work for key resources.
Sequence plans Combine all planning knowledge into an efficient work plan.
Temporary N (project)
Access
START HERE
(Crew 1)
A
D
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B C
Fig. 3-13. Partitioning of SCMB (Rock Removal, Footings, and Concrete Basement
Wall)
Example 1
An example of a SIPS for an apartment building is given in Fig. 3-14. On this
project, it was determined that one ETS sequence was the completion of the roof
by the end of November. To achieve this goal, it was necessary to complete one
floor of the superstructure per week. The superstructure consisted of reinforced
masonry walls (both interior and exterior) and precast concrete floor planks.
Thus, the ETS was the superstructure: interior and exterior reinforced masonry
walls–wall grouting–installation of precast floor planks–plank grouting–curing–
preloading of masonry units for the next floor. The SIPS showed that this plan was
barely feasible. The resources needed were (1) about 35 masons and helpers
working at seven workstations; (2) a mortar and grout mix that cures to the
required strength in about 18 hours during colder weather; and (3) regimented
deliveries of block, mortar, grout, and floor planks.
On the basis of the SIPS, it was decided that the goal was feasible, although tight.
Notice that the SIPS makes it possible to assess feasibility and the requirements for
the plan to be doable. A word of caution is warranted. If the time for this work is
made too liberal, it can cost the contractor money; flexibility to modify the schedule
is needed. For instance, suppose one task is scheduled for three days in the SIPS
schedule, but it can actually be completed in two and a half days. Unless the schedule
is adjusted, the workers may stretch the work on that task to the full three days or
spend the last half day in preparation for the next day or in cleanup (see Chapter 7).
It is probably a mistake to schedule certain work to occur at the same time each week
without the benefit of experience to ensure that the time allotted is suitable
(Principle 2.10).
Day 6
Day 5
Day 4
Day 3
FUNDAMENTAL PRINCIPLES OF PLANNING
Day 2
Day 1
Ext. Masonry (load bear.) Int. Masonry (load bear.) Grout and Cure Set Fl. Planks Grout Planks Proload CMUs, etc.
Corridors and overnight
Superstructure Production Schedule
Fig. 3-14. SIPS for the Superstructure ETS, Bryce Jordan Tower
61
62 CONSTRUCTION SITE MANAGEMENT AND LABOR PRODUCTIVITY IMPROVEMENT
Example 2
This example is for the SCMB, and the ETS sequence is the structural steel erection–
precast plank installation–preloading service and finish materials. Efficient methods
and timely completion of this work are essential to success of the project because if
the steel is completely erected (as would be the case if sequential scheduling
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practices are applied), then the precast planks and preloading activities likely cannot
be done using a crane.
Fig. 3-15 shows a SIPS for the steel erection–plank installation–preloading to be
done using three cranes. The partitioning plan and crane locations are shown in
Fig. 3-16. The planning process begins by partitioning the work area into three zones.
The plan is to proceed in a counterclockwise direction. In each zone, one level of
steel is erected, followed by one floor of precast floor planks, and finally by
preloading of service materials for that zone. Steel can be easily delivered to each
crane location, and if the cranes are sized and located properly, only one crane setup
for each crane is needed. Service and finish subcontractors need to arrange for the
early and timely delivery of their materials. If they are late, their materials will not be
preloaded. Steel and plank deliveries must also be on a strict delivery schedule. Duct
will be stored in the basement (Principle 1.3). Notice that there is continuity of work
for each activity.
Velocity (Production Rate) Charts—A velocity chart shows the daily production
rate of one or more concurrent activities versus time. Fig. 3-17 shows a hypothetical
example for the excavation–rock removal and trench excavation–footings–concrete
wall ETS sequence on the SCMB. Fig. 3-17 shows that the duration of the foundation
ETS for the SCMB has been shortened by using two rock removal crews. The velocity
chart is particularly useful when the production rate of one activity is much slower
than the others; in the case of SCMB, the rock removal and trench excavation is
slowest. The velocity chart can also be used to estimate the time lag or buffer for the
Material storage
Selected
material
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deliveries
II I
Office
I
on 1st Craft
III floor ingress &
egress
Site Utilities I
100%
)
(II
al
ov
m
Re
ck
Ro
Percent Complete
s
n
ting
tio
ll
va
Wa
Foo
ca
(I)
Ex
al
ov
m
Re
ck
Ro
Time
Time Lag
Fig. 3-17. Hypothetical Velocity Chart for Foundation and Basement ETS, SCMB
footing construction activity (Principle 3.5). Without time lags or buffers, all the
ensuing work (footings and wall formwork) will be highly inefficient because of
congestion. In this instance, the velocity chart can be used to evaluate various
alternatives for accelerating the schedule, such as multiple workstations, multiple
crews for rock removal and trench excavation, or faster methods. With partitioning
and multiple work teams, time lags can be optimized or reduced to a minimum.
Linear Schedules—Linear schedules show the relationship between time and
location. These graphical schedules are usually associated with linear projects,
e.g., highways or pipelines, but they also have limited application on nonlinear
idle time by ensuring that work is always available for the key resource. Harmelink
and Rowings show how to identify controlling activities with linear schedules
(1998).
To illustrate the linear schedule, the foundation ETS on the SCMB is used.
Fig. 3-8 shows that the excavation work area was partitioned into four work areas
(Principle 3.1). Note that if the work area is not partitioned, the development of a
linear schedule for this ETS will be challenging. Two rock removal and trench
excavation crews are to be used. Fig. 3-18 shows the linear schedule and a bar chart.
Following some minor adjustments, it is possible to have continuity of work for the
excavation and for the footing and wall formwork crews. Only one crew for each of
these activities is required. The same cannot be said for the rock removal and trench
excavation crew. A single rock removal and trench excavation crew will extend the
schedule, and so two crews are planned (Principle 3.2). The crew sizes can be
adjusted to ensure that the daily production goals are met (Principle 3.3). Time lags
are also visible in Fig. 3-18. For example, the time lag in Area 1 between the
completion of rock removal and the start of the footings is about 10 days (Principle
3.5). Without time lags, the work will become congested as fast activities catch up
with slower ones.
Sequence Plans—Sequence plans as used herein show when subcontractors plan
to work at any point in time. Sequence plans are usually thought of as pertaining to
the service trades (e.g., mechanical, electrical, or drywall), but they may relate to any
situation where the work of multiple trades or subcontractors needs to be coordi-
nated. Sequence plans can be conveyed as a bar chart, SIPS, linear schedule,
coordination drawing, or any other convenient format.
A hypothetical sequence plan was developed for the second floor of the SCMB. It
is shown in Fig. 3-19. The first step in developing a sequence plan is to partition the
work area. Fig. 3-20 shows how the second floor of the SCMB was partitioned. The
corridor and other areas were partitioned into five unique areas. It may be
advantageous for the scope of work in each area to be roughly equal, but this is
not necessarily a requirement. The partitioning scheme shown in Fig. 3-20 is but one
of many possibilities. For the sake of simplicity, only the following activities are
shown:
Area I (corridor)
• Feeder duct,
• Feeder sprinkler pipe, and
• Feeder conduit.
% Activity Days
Area IV Ex 8
Area III 100 Wall 8
75 Ftg 4
50 RR 13
25 Exc 3
Area II 100 Wall 5
Legend
75 Ftg 3
50 RR 10 Excavation
Excavation
25 Exc 5 Removal
Rock
RockRemoval
Area I 100 Wall 5
75 Ftg 2
Footings
Footings
50 RR 8 Wall
Wall
25 Ex 4
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
FUNDAMENTAL PRINCIPLES OF PLANNING
% Activity Days
Area IV Ex 8
Area III 100 Wall 8
75 Ftg 4
50 RR 13
25 Exc 3
Area II 100 Wall 5
75 Ftg 3
50 RR 10
25 Exc 5
Area I 100 Wall 5
75 Ftg 2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
Fig. 3-18. Linear Schedule and Bar Chart for Foundation ETS, SCMB
65
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66
Week
Area 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
IV
III
II
I 0
Feeder Duct
Sprinkler Piping
Feeder Conduit
Branch Duct
Branch Piping
Framing
Rough-in Elec.
Fig. 3-19. Sequence Plan for the Second Floor Service Work, SCMB
CONSTRUCTION SITE MANAGEMENT AND LABOR PRODUCTIVITY IMPROVEMENT
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Areas II–V
• Branch duct,
• Branch sprinkler piping,
• Framing,
• Rough-in electric, and
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• Drywall.
There are several advantages of the sequence plan shown in Fig. 3-19. There is a
one-week time lag between each trade subcontractor at all times, and no more than
two subcontractors are working in any one area at any time.
Operational Planning Using Multiple Tools—The previous section described
four scheduling tools. First, a CPM can be used to establish the schedule windows in
which an activity can be performed without delaying completion. Then, the tools
described can be applied to complete the planning process as follows:
• SIPS production control establishes resources and workstations and (cycle) time
needed.
• Linear schedules ensure continuity of key resources.
• Velocity schedules (production rate charts) determine time lags.
• Sequence schedules finalize the work plan.
Lastly, a bar chart can be developed to communicate the results to field personnel.
Fig. 3-21 shows the general process of developing operational plans.
Substitutions
The contract sometimes allows substitutions if they are approved by the designer. These
are usually thought of as equipment and material substitutions, but opportunities to
substitute other aspects that can improve the schedule should not be overlooked.
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Value Engineering
Where the contract allows the contractor to submit a value engineering (VE)
proposal, the contractor may prepare an alternative design or proposal for the
owner’s consideration after the contract is signed. If accepted, the owner and
contractor share in the cost savings.
The problem for the contractor with VE is twofold. First, there may be insuffi-
cient time for the contractor to investigate and/or design an alternative that leads to
significant cost savings. Also, the owner may take an inordinate amount of time to
review the proposal. Complex proposals that provide significant project benefits can
be time-consuming to develop and review.
The second problem for the contractor with VE is the contractor’s reluctance to
pursue a complex VE proposal. If the VE proposal is rejected, the investigative and
design expenses come off the contractor’s bottom line (profit), and the contractor
must absorb the cost.
Alternative Bidding
Another option is to include alternatives to the base bid. Bid proposals must always
contain a base bid cost for exactly what the contract documents require; otherwise,
the contractor’s bid is not responsive to the solicitation and the bid may be rejected.
However, the contractor should be able to say to the owner, “If you add, delete, or
change x, then I will increase or decrease my bid by y amount.” If an alternative is
accepted, any design changes are now the obligation of the owner. The contractor
has invested little of his or her own financial resources to propose the change, and
any time delays are the responsibility of the owner.
Design-Build
Placing design and construction responsibility with a design-build contractor pro-
vides an ideal opportunity for construction input into the design. Teaming arrange-
ments may vary from a single design-build firm, to a partnership between a designer
and a contractor, to a joint venture. However, in all cases the construction team is
engaged with the design team early in the design development process.
Week
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Mobilization
Utilities
FOUNDATION ETS
SUPERSTRUCTURE ETS
Slab Topping
Ground Slabs
FUNDAMENTAL PRINCIPLES OF PLANNING
Masonry
Mechanical Ductwork
Framing
Piping
Plumbing
Electrical
Fire Protection
Finishes
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
A submittal log should be developed to track the status of various submittals and
shop drawings.
and designer which RFIs or change orders are negatively affecting the project
schedule.
Contractors should be proactive relative to changes. The worst-case scenario is
the need for a change to be identified by the crew in the field doing the work because
this leads to much idle time and inefficiency. Therefore, contractors should strive to
identify the need for changes well before the work is to begin. There should be a
good process in place for incorporating changes into the work assignment before it is
given to the supervisor. When a change proposal is submitted, the contractor should
always reserve the right to claim impact costs because of labor inefficiencies and thus
recover associated time delays.
This case study illustrates that more attention to planning can lower labor costs and
increase profits. The project is the Millennium Science Complex built on the Penn
State campus in State College, Pennsylvania. The facility is a 275,000-ft2 classroom
and laboratory facility built in the 2008–2011 time frame at a cost of $215 million.
A cm-agency delivery system was used.
Project Description
The building has a structural steel superstructure and is clad with a precast curtain
wall and metal panels. The precast facade panels have a thin brick veneer, which
gives the appearance of a brick building. The foundation is built on micropiles. The
building is a four-story, L-shaped structure. An artist’s rendering of the completed
project is shown in Fig. 3-24.
Activity Description
The activity being reported on in this case study is the installation of the exterior
precast panels. The work was done by a specialty contractor that was owned by the
precast vendor. The panels were approximately 22 ft × 10 ft, although actual sizes
varied. This meant that the panels were not interchangeable.
The panel installation crew was divided into two teams. The first team erected
and aligned the panels and then secured the panels to the structure. This team
consisted of 6–12 workers, although most of the time, there were 11–12 workers. The
second team, which was much smaller, patched the lifting lug areas, installed
insulation to the back of the panels, and caulked the joints. The scope of work of the
second team was much smaller than that of the first team.
The fabrication yard for the vendor was about 150 miles from the project
site. The superintendent ordered panels by 1:00 p.m. to be delivered the next
morning at 6:00 a.m. Thus, the superintendent was gambling that certain panels
would be erected the previous afternoon and that conditions would allow for
the designated panels to be erected the next day. There was only one panel delivered
per truck, and there were no panels stored on site. If the delivery of the panels was
delayed the next morning, the erection team would be idle. If the team erected all
the panels that were ordered that day in less than the time expected, and the
superintendent was slow in sending the workers home, there was more idle time. In a
few instances, the first team would help the second, even though the work needs of
the second team’s work were small. It did not seem that coordination between the
contractor and vendor was as good as it could have been, and there were multiple
opportunities for crew idle time and inefficient work. The first team may have been
engaged in “busy work” some of the time.
During the latter part of the observation period, the work was not sequenced
well. This problem was caused in part by steel bearing plates not being available
or subpar vendor coordination. The welding of the bearing plates was done
by another contractor. A subassembly should have been used, and the bearing
plates should have been welded by the fabricator at the fabrication shop instead of in
the field. To continue work, the crane had to be moved. Thus, there were more
crane movements than planned, and this led to more crew idle time. Additionally,
the crane movements did not seem to be planned for after work hours.
There was a lack of site planning to promote labor efficiency. Panel delivery
trucks had to back into position. This problem can be observed in Fig. 3-25. Drive-
through deliveries were not practiced consistently, leading to idle time. Fig. 3-26
shows further evidence of poor site planning. Because of the requirements of
numerous materials and trash, the delivery and service trucks and crane did not
have unrestricted access to the work face as the work progressed.
Fig. 3-26. Panel Erection Showing Congested Work Area, Millennium Science Complex
Fundamental Principles
Principles 2.1, 2.6, and 3.8 were applied on this project. The following principles
were not applied: Principles 2.4, 2.8, 3.1, 3.2, and 3.5. The following principles from
Table 3-1 were not observed or do not apply: 1.1, 1.2, 1.3, 1.4, 2.2, 2.3, 2.5, 2.7, 2.9,
2.10, 3.3, 3.4, 3.6, and 3.7.
Much of Chapter 7 is applicable to this case study. Case Study 3 in Chapter 7
should also be reviewed.
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Contractor Performance
Fig. 3-27 shows the crew productivity for the precast panel erection. As can be seen,
the performance for the first 13 workdays was rather consistent, and thereafter it was
not so consistent. Lower numbers in Fig. 3-27 are better.
From the outset, the erection of panels was not done in a systematic fashion.
There could have been two reasons. There could have been poor coordination with
the vendor or the steel bearing plates may have been installed sporadically.
Nevertheless, minimal crane movements were required the first 13 days. Beginning
on workday 4, erection began on a cantilevered portion of the building. The weight
of the panels led to deflections that required realignment of most of the previously
installed panels. Productivity degraded through no fault of the contractor. Thereaf-
ter, panel erection became erratic, and numerous crane movements were required.
The crew only worked six of the next 13 days. It appears that vendor coordination
was somewhat of a problem.
One foreseeable risk is that subpar vendor coordination can lead to excessive
crew idle time and inefficient use of labor. Site layout planning and effective
operational plans that anticipated the vendor coordination risk would have mini-
mized some economic losses resulting from this risk. It seems that the contractor
would have benefited from a better plan.
It seems that the crew would have performed better if there had been better
coordination (a planning issue) with the vendor. It also seems that there might have
0.2
0.18
0.16
Daily Productivity (Wh/ft 2 )
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
0 5 10 15 20 25 30
Workday
been better performance had the panel erection crew waited longer (increasing the
time lag) to start panel erection, allowing the bearing plate installation to proceed
earlier and the vendor to produce a greater backlog of panels. The labor inefficiency is
estimated to be 32%, and at $35/h (burdened), the contractor suffered a loss of
$14,450. This equates to a loss of $722 per workday on a relatively simple activity.
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References
Alexander & Shankle, Inc., v. Metropolitan Government of Nashville and Davidson County.
(2007). Court of appeals of Tennessee, Nashville, TN.
Harmelink, D. J., and Rowings, J. E. (1998). “Linear scheduling model: Development of
controlling activity path.” J. Constr. Eng. Manage., 124(4), 263–268.
Hinze, J. W. (2008). Construction planning and scheduling, 3rd Ed., Pearson Prentice Hall,
Upper Saddle River, NJ.
Thomas, H. R., and Ellis, R. D., Jr. (2007). “Contractor prebid planning principles.” J. Constr.
Eng. Manage., 133(4), 542–552.
Thomas, H. R., and Ellis, R. D., Jr. (2009). “Fundamental principles of weather mitigation.”
Pract. Period. Struct. Des. Constr., 14(1), 29–35.
Thomas, H. R., Lescher, A., and Bowman, G. (2000). Fundamentals of contract risk management
for electrical contractors, National Electrical Contractors Association, Bethesda, MD, 67.