Construction Project Management

Construction Project Management

Lessons Lesson One: Introduction to Construction Project Management and Controls. Lesson Two: Becoming a Project Superintendent. Lesson Three: Understanding the Project Manager s !ole in Client !elations. Lesson "our: The Project Team and #eli$er% S%stems. Lesson "i$e: Commercial Project Preparation and !e$iewing Construction #ocuments. Lesson Si&: !esidential Project Preparation. Lesson Se$en: !esidential Cost Controls. Lesson 'ight: Commercial Cost Controls. Lesson ( Su)wa% Pro*it Projections and +o) Cost Model.&ls Lesson ,ine: Commercial Su)mittals- Samples and Shop #rawings. Lesson Ten: !ecord .eeping at the +o)site. Lesson 'le$en: +o)site La%out and Producti$it%. Lesson Twel$e: Computeri/ed Project Management. Lesson Thirteen: Partnering- Meetings- ,egotiating and 0r)itration. Lesson "ourteen: La)or !elations and Producti$it%. Lesson "i*teen: Su)contracting and Purchasing. Lesson Si&teen: !esidential 1ualit% Control- Inspections and Chec2lists. Lesson Se$enteen: Commercial 1ualit% Control and Testing. Lesson 'ighteen: Contract Changes and Claims. Lesson ,ineteen: Contract Progress Pa%ments. Lesson Twent%: Project Closeout. Assignments 0ssignment One Pla%house '&ample. 0ssignment Two: The Super Bridge 0nal%sis. 0ssignment Three: Carlisle- P0 Construction Project Budget and +o) Cost Model. 0ssignment "our: Prolog: Setting Up 0 Project. 0ssignment "i$e: Prolog: 'ntering Contracts- Su)mittals- !"I3s and #ail% !eports. 0ssignment Si&: Prolog: Practicing in Prolog.

Lesson 1: Introduction to Construction Project Management and Controls Introduction:

Why Construction Project Management? There is pro)a)l% no other discipline that is more di**icult than construction project management. The general goal seems simple enough. Build a project on4time- within )udget- with the stated 5ualit% standards and in a sa*e en$ironment. 'as% right6 7rong8 !esearch shows that less than 9:; o* most construction projects meet these *our re5uirements. Is there an% dou)t wh% contractors are o*ten held in the same esteem as used car salesman6 Construction project management is 2nown *or continual pro)lems. Contractors ha$e a continual record o* poor per*ormance. O$er the last 9: %ears construction project management has de$eloped in 2nowledgemanagement s2ills and increased per*ormance and 5ualit%. Toda% there are man% e&cellent contractors that per*orm well in time- )udget- 5ualit% and sa*et%. So how do the% do it6 This course *ocuses on the )est practices o* success*ul project managers. So what3s in it *or %ou6 <ours is the opportunit% to learn and appl% these )est practices in a learning setting so that when %ou enter the wor2place %ou can )e one o* those in the minorit% that can per*orm admira)l%8 The purpose o* this lesson is to get %ou e&cited a)out project management and the power*ul 2nowledge and s2ills that %ou will learn to help %ou )e success*ul. The other purpose is to introduce %ou to the course and how the course will )e managed using Blac2)oard- an on4line course management program.

Lesson Objectives:
At the end of this lesson you should: =. Learn how the course will )e managed and what the course e&pectations are. 9. .now what the de*inition o* a project is. >. Be a)le to descri)e how resources are generall% spent on a project. ?. Be a)le to descri)e the Construction .e%stone Model and Project Management @igh Le$erage 0cti$ities. A. Be a)le to descri)e the attitude o* a project manager. At the end of this lesson you should be able to: =. Outline the scope o* an% project. 9. Create an BSC cur$e and )aseline $ariance report. >. Create a construction )aseline plan.

How to Proceed:
D=E D9E D>E D?E DAE !ead and re$iew Part =: Course Syllabus. !ead and re$iew Part 9: Introduction to the Basic Concepts of Project 0nswer the sel*4chec2 5uestions to e$aluate %our readiness to ta2e 5ui/ =. 7hen %ou *eel that %ou are read%- Ta2e 5ui/ =. !ead and complete assignment =. ana!e"ent.

#iscussion aterials: Part $: Course Syllabus (FAQ: Frequently Asked Questions)

FAQ 1:What will I learn? There is )ig di**erence )etween wor2ing on a project and pro$iding management and leadership *or a project. <ou will learn speci*ic management s2ills that will ena)le %ou to )e success*ul in managing an% construction project. The principles taught will pro$ide )oth a residential and commercial construction perspecti$e. The course is di$ided into 9: lessons. The lessons are: Lesson =: Introduction to Construction Project Management and Controls Lesson 9: Becoming a Project Superintendent Lesson >: Understanding the Project Managers !ole in Client !elations Lesson ?: The Project Team and #eli$er% S%stems DCommercialE Lesson A: Commercial Project Preparation and !e$iewing Construction #ocuments Lesson F: !esidential Project Preparation D!esidentialE Lesson G: !esidential Cost Controls Lesson (: Commercial Cost Controls Lesson H: Commercial Su)mittals- Samples and Shop #rawings Lesson =:: !ecord .eeping at the +o)site DCommercialE Lesson ==: +o)site La%out and Producti$it% DCommercialE Lesson =9: Computeri/ed Project Management DCommercialE Lesson =>: Partnering- Meetings- ,egotiations and 0r)itration DCommercialE Lesson =?: La)or !elations and Producti$it% DCommercialE Lesson =A: Su)contracting and Purchasing DCommercialE Lesson =F: !esidential 1ualit% Control- Inspections and Chec2lists Lesson =G: Commercial 1ualit% Control and Testing Lesson =(: Contract Changes and Claims DCommercialE Lesson =H: Contract Progress Pa%ments DCommercialE Lesson 9:: Project Closeout DCommercialE FAQ : What is the !ormat !or each lesson? Introduction: 'ach lesson will pro$ide an introduction to the general concepts and principles to )e learned. Lesson O)jecti$es: ,e&t- each lesson o)jecti$e will e&plain what %ou will learn and how to appl% the 2nowledge. The )est wa% to re$iew each concept is to as2 the 5uestion- B0t the end o* this lesson concept I should 2now IIIIIIIIIIIIIIIIII and I should )e a)le to do IIIIIIIIIIIIII. How to Proceed: <ou will then )e gi$en instructions on how to proceed through the lesson. The instructions ma% include reading te&t materials- re$iewing a case stud% or sol$ing a practice pro)lem *rom the discussion materials. Discussion Materials: This area will pro$ide additional direction and guidance a)out understanding certain concepts. This area will also pro$ide e&amples that will )etter e&plain concepts *rom the te&t materials. elf!"heck Questions: Sample 5ui/ 5uestions with answers will help %ou assess %our readiness to ta2e the lesson 5ui/. #esson Qui$:

This will )e a ten45uestion 5ui/. The 5uestions will )e multiple choice or trueJ*alse. The 5uestions will test lesson $oca)ular%- de*initions and applications o* concepts and principles. Assi%n&ents: Si& assignments will )e gi$en. The assignments will )e application oriented so that %ou ma% practice and de$elop greater s2ill in certain areas. The assignments will )e mostl% case stud% pro)lem sol$ing. FAQ ": #ow will I $e tested? 0*ter each lesson %ou will ha$e some sample- sel*4chec2 5ui/ 5uestions that will help %ou determine i* %ou are prepared to ta2e the lesson 5ui/. There will )e a ten45uestion 5ui/ at the end o* each lesson. The 5uestions will )e multiple choice or trueJ*alse. The 5uestions will test lesson $oca)ular% de*initions and applications o* concepts and principles. All %ui&&es and e'ams are closed $oo() *o %ui&&es or e'ams made $e co+ied or +rinted out !rom the com+uter) FAQ ,: #ow will %ui&&es- assignments and e'ams $e graded? Krading will ta2e place as *ollows: Qui&&es . ' 1. +oints / Assignments 2 ' 3 +oints / 4'ams ' .. +oints / 5otal A / 01 and u+ A7 / 203 to 0 . 89 / 23 to 20, 8 / 2". to 231 87 / 2.. to 2 6 C9 / 301 to 366 C / 333 to 30. C7 / 3 3 to 33, ;9 / 3. to 3 , ; / ,:. to 3.1 ;7 / ,3. to ,06 4 / ,,6 or $elow 631 6.1 :01 :,1 :.1 001 0,1 0.1 201 2,1 2.1 .. +oints 01 13. +oints .1 ,.. +oints 3"1 03. Points

FAQ 3: What is the schedule and when do we meet? This course o**ers great *le&i)ilit% )ecause there are no scheduled classes. The most important schedule is to watch and complete assignments- 5ui//es and e&ams on or )e*ore the due dates. There ma% )e special occasions when help sessions are held. 7atch *or these announcements on Blac2)oard or through email. FAQ 2: When are lessons- %ui&&es and assignments due? !e*er to the 0nnouncements and Course In*ormation in Blac2)oard. FAQ 0: What ha++ens i! I turn %ui&&es and assignments in late? <ou can not turn 5ui//es in late )ecause the% automaticall% turn o* on the ending date and time. 1ui//es can not )e made4 up. Construction is a time sensiti$e )usiness. 0ll assignments must )e turned in on time. Late assignments will recei$e points no greater than a A:; score o* total points. Special arrangements ma% )e made i* it is cleared )% the instructor )e*ore the due date. This must )e done )% email.

FAQ :: What materials will I study? Two te&ts )oo2s will )e used *or the course. The% are Construction +o)site Management- =HH(- 7illiam !. Minc2s- @al +ohnston- #elmar Pu)lishersL Basic Construction Management- The Superintendent3s +o)- ?th edition- =HHH- Leon !ogers@ome Builder Press. Both )oo2s are a$aila)le at the B<U Boo2store. 0ll other materials will )e a$aila)le on4line through Blac2)oard. FAQ 6: #ow do I access 8lac($oard? Blac2)oard and CM ?=A can )e accessed through route <. Once in route < go to Blac2)oard courses at the )ottom o* the page. Clic2 on Blac2)oard courses. <our login name will )e %our route < log in name. <our password will )e %our last *our digits o* %our student num)er Dsocial securit% num)erE. FAQ 1.: What is 8lac($oard and how do I use it? Blac2)oard allows %ou- the instructor and other students to communicate with one another- share in*ormation and learn together. '&plore the == )uttons on the le*t side o* the screen. I* %ou select the help )utton at the top o* the screen %ou can go to the student manual and other "013s. FAQ 11: #ow do I get hel+? It is pre*erred that %ou use email to recei$e help. <ou can locate the instructor- teaching assistants and students in the class through the communications )utton o* Blac2)oard. O**ice hours will also )e posted. FAQ 1 : #ow much time should this course ta(e each wee(? 'ach lesson and 5ui/ ma% ta2e )etween 9 to > hours depending on the student. 'ach assignment will ta2e )etween > to A hours to complete- once again depending on the student. <ou will )e gi$en a 9hour limit *or each e&am.

Part %: Introduction to the Basic Concepts of Project

)1 8asic Conce+ts o! Project Management

ana!e"ent

!ead and stud% the *ollowing slides.

What is a Project?

A project is an endeavor to accomplish a specific objective through a unique set of interrelated tasks and the effective utilization of resources.

Attributes of a Project
(Gido !lements"

A project has a #ell defined objective A project is carried out through a series of interdependent tasks A project utilizes various resources A project has a specific time frame A project ma$ be a unique or one%time endeavor A project has a customer A project involves a degree of uncertaint$

&dentif$ing the 'cope of a Project

What is the project objective? What are the series of interdependent tasks? What are the resources needed for the project? What is the project specific time frame? &s the project a unique or one%time endeavor? Who is the project customer? What degree of uncertaint$ does the project involve?

Let3s suppose that m% children wanted *or me to )uild them a pla%house. 7e would tal2 a)out the si/e and st%le and come up with a )asic design. So I )egin to do some planning. I answer the *irst 5uestion: 'hat is &y ob(ecti)e* It is to ha$e a pla%house that m% children and grandchildren can enjo% *or man% %ears to come. 'hat are the series of interde+endent tasks* I determine that there are =G tas2s. The% are: =. 9. >. ?. A. F. G. #esignJSpeci*icationsJ'stimate Super$ision Permit '&ca$ateJConcrete "loor s%stem 7all s%stem !oo* s%stem

(. H. =:. ==. =9. =>. =?. =A. =F. =G.

Shingles #oorJ7indows 'lectrical SidingJSo**itJ"ascia Insulation #r%wall "inish Carpentr% Paint "loor Co$erings Special "urnishings

'hat are the resources needed for the +ro(ect* This is going to ta2e time and mone%. The mone% will )e spent on materials- su) contractors and the )uilding permit. I will pretend that I will pa% m%sel* M9: per hour and also charge a =A; o$erhead and pro*it *or the project. There is also a 2nowledge and s2ill resource that is needed in order to )uild the pla%house. 0*ter some planning it is determined that the project will cost M9-AA>- the project will ta2e 9= to >: da%s and I will ha$e to spent ?( hours o* direct la)or on the project. @ow did I come up with these num)ers6 See the estimate and the cost loaded schedule in Lesson =- Pla%house Baseline Project Plan *ound in Blac2)oard. 'hat is the +ro(ect s+ecific ti&e fra&e* Luc2il% there is no a)solute time *rame )ut gi$en the schedule and each acti$it% planned durations totaling 9= da%s- It ma% )e sa*e to sa% that it could )e completed in >: da%s. Once again see the cost loaded schedule in Lesson =- Pla%house Baseline Project Plan *ound in Blac2)oard. Is this +ro(ect a unique or one!ti&e endea)or* It de*initel% is a one4time endea$or. The learning cur$e will )e high. Producti$it% will )e low )ecause there are no major repeata)le acti$ities. 'ho is the +ro(ect custo&er* '$en though I would li2e to thin2 that it is I it reall% is m% children and grandchildren. This means that I should listen and )e more responsi$e to their needs. 'hat de%ree of uncertainty does the +ro(ect in)ol)e* 7ell- I ha$e ne$er done a project li2e this )e*ore. D0ctuall% I ha$e )ut *or learning purposes let3s pretend.E I ha$e general pricing )ut material prices and su) contractor pricing could change when I actuall% go to purchase the materials and ser$ice. Something ma% come up and I ma% not ha$e the time I e&pected to do the la)or. I ha$e not %et chec2ed with the cit% a)out the )uilding permit nor ha$e I chec2 an% real estate easements on the propert%. I am assuming that there will )e no pro)lems. M% customer DchildrenE also ma% change their minds as I start )uilding. DIt ma% )e a change order8E So there de*initel% is some ris2 and uncertaint% e$en with this simple project.

Project (ife !$cle

,otice that in the Project Li*e C%cle slide that almost all projects spend the greatest resources at the end o* the project. I* a project manager can *latten the line out more projects t%picall% are more success*ul.

!umulative )udgeted !ost !urve

The a)o$e is a )aseline BSC cur$e. Baseline means the initial plan *or the project. 0n BSC cur$e is )asicall% is a cost loaded schedule. This slide represents the wee2s plan cost D< a&isE against the planned time D& a&isE. That intersection point creates the BSC cur$e. Most projects loo2 li2e an BSC or some call it a )anana cur$e. This is all nice and good )ut how do %ou use it6 Once %our )aseline BSC cur$e is esta)lished- then %ou )egin to measure the $ariance *rom %our plan to the actual. 0n e&ample is that the actual is )elow the line then %ou are spending less than planned. I* it is a)o$e the plan line %ou are spending more than planned in relationship to the schedule. 0n BSC cur$e onl% wor2s well i* %ou ha$e real time accurate in*ormation to *eed into the $ariance.

Consider the *ollowing slide a)out de$eloping a )aseline construction plan. 0 )aseline plan pro$ides a starting place )% which to measure $ariances. This process o*ten re*erred to as Beating the elephantC )rea2s down the project into wor2a)le pieces that can )e identi*ied and measured *or compliance to the plan.

Practical Application of !reating a )aseline Project Plan

'tep *+ Review drawings, specifications and contract for clarit$ and completeness. 'tep ,+ Divide project into work groups and packages for estimating and scheduling do quantit$ takeoffs create detail sheets that are eas$ to read and track number of units unit costs and estimated duration of activit$. 'tep -+ Complete estimate rollup sheet that summarizes #ork package activities activit$ duration cost estimate and ./0P. 'tep 1+ Create a schedule (net#ork diagram" from step - rollup sheet. 'tep 2+ Create a project baselineS Curve to track actual performance to the plan and create a variance report.

5he Construction <eystone Model

Project management is all a)out whole s%stems thin2ing. +ust as it ta2es a whole tree to grow one apple it ta2es a whole s%stem to )uild one )uilding. Consider the =? elements in the Construction .e%stone Model. The model shows that leadership is 2e%stone that pulls all the elements o* the project deli$er% s%stem together. 7ithout proper leadership the deli$er% o* projects )rea2s down and pro)lems occur. Is one element more important than another6 ,o8 0n% single element can ha$e a dramatic impact on an% other elements and the o$erall deli$er% o* the project.
Leadership Project Management Accounting Human Resources Skilled La$or Client E+perience Contract Administration Design and Estimating Marketing & Sales Market 'no(ledge

Technolog ! T"M #ork Processes and Procedures

Suppliers! Su$ Contractors! %usiness Partners! &ther Stakeholders

)nno*ation Construction 'e stone Model

Ethics

A few questions to think about: @ow does the right side o* the arch di**er *rom the le*t side6 @ow could inno$ation a**ect project deli$er%6 7h% would a construction compan% need to ha$e mar2et 2nowledge6 7h% would the client3s e&perience )e in the center o* the arch6 Project Management #igh Le=erage Acti=ities I ha$e *ound that success*ul project managers share =: common high le$erage acti$ities. Care*ull% stud% the *ollowing three slides.

Project 3anagement /igh (everage Activities

4se 563 (5otal 6ualit$ 3anagement" 5ools to do their #ork right the first time &nnovative question architects and engineers provide value engineering ideas !ompan$ has a shared vision all emplo$ees and subs are on the same page

Project 3anagement /igh (everage Activities

!ommunicate clearl$ and negotiate #ell Process paper#ork #ith e7actness and are proactive 3anage the schedule #ell don8t miss milestone dates 'trong advocates of safet$

Project 3anagement /igh (everage Activities

Good balance of being technologists (good construction skills" and sound business people 97cellent problem solvers :eep up #ith technolog$ and use it to their advantage

"rom %our e&perience- what do %ou thin2 are other high le$erage acti$ities that help project managers )e success*ul6 )" Attitude o! a >uccess!ul Project Manager

The *ollowing stor% )est descri)es the attitude o* pro)lem sol$ing that e$er% project manager should ha$e. 5he ?o7?etter In =H9= Peter B. .%ne wrote ,he -o!-etter. a tory ,hat ,ells /ou How to 0e 1ne2 This )oo2 tells how Mr. !ic2s- the owner o* a lum)er and logging compan%- was ha$ing a pro)lem with his Shanghai o**ice. @is super$isor s e&planation was that he was surrounded )% men who were too %oung *or responsi)ilit%. In addition- three managers had Ngone rotten.C The compan% would )e in trou)le i* things persisted as the% were. 0)out this time a crippled $eteran )% the name o* 7illiam '. Pec2 re5uested an inter$iew *or emplo%ment. NPlease gi$e me a jo). I don t care a hoot what it is- pro$ided I can do it. I* I can do it- I will do it )etter than it has e$er )een done )e*ore. I* I can t do it- I will 5uit and sa$e %ou the em)arrassment o* *iring me.N The old man was impressed and- going o$er the heads o* all the e&ecuti$es and super$isors- hired 7illiam '. Pec2. Bill was warned to produce and not get out o* line. NThe *irst time %ou tip a *oul- %ou ll )e warned. The second time- %ou ll get a month la%4o** to thin2 a)out it. The third time %ou will )e out *or 2eeps.N Pec2 was gi$en the tas2 o* selling a lot o* undesira)le lum)er that the compan% was stuc2 with. @e was happ%. @e said- NI can sell an%thing at a *air price.N @e hit the )all hard. "or two months the% saw nothing o* him. @e sold se$eral )o&car loads o* s2un2 spruce- siding- shingles#ouglas *ir- and redwood. @e sent orders )ac2 to the o**ice almost dail%. @e sold *i$e new accounts and increased sales dramaticall%. So impressed was the owner that he thought Bill might )e a good man to head up the Shanghai o**ice. But- )e*ore a *inal decision- Bill would ha$e to go through the Ntest.N The NtestN was to send Bill on an errand to o)tain a $er% e&pensi$e )lue $ase which had )een descri)ed to him in detail. Bill was told to o)tain it and deli$er it to a stateroom in car se$en on the train *or Santa Bar)ara so that Mr. !ic2s could ta2e it to his wi*e *or their anni$ersar%. Bill was told the appro&imate location o* the neigh)orhood4which street- which

store- and the window where it could )e seen. It was Sunda% and a*ter >::: p.m. when Bill went to *ind the $ase. @e went to the area where the $ase had )een seen )ut he searched in $ain- street a*ter street 4two )loc2s o* additional searching in all *our directions- *our more )loc2s )e*ore he *inall% disco$ered the o)ject o* his search. @e 2ic2ed the door- ma2ing an in*ernal rac2et- )ut no one responded. @e )ac2ed awa% and read the sign o$er the door- B. Cohen s 0rt Shop. @e limped to a hotel- pic2ed up the phone )oo2- and *ound nineteen B. Cohens. @e searched *or the art dealer in $ain and then dialed all nineteen num)ers. @e emerged *rom the phone )ooth wringing wet *rom perspiration. It was F::: P.M.- and his )ad leg was starting to gi$e out on him. Then he had a *lash o* thought- "ould the na&e ha)e been s+elled differently* 7as it Cohen- Cohan- Cohn- .ohn- or Coen6 @e went )ac2 to the art shop: It was spelled Cohn s 0rt Shop. @e went )ac2 to the phone )ooth and )egan calling all the Cohns. On the si&th call he was luc2% and got the right B. Cohn. The coo2 who answered the phone said that Mr. Cohn was dining at the house o* a Mr. Simons in Mill Oalle%. There were three Mr. Simons- and Bill called all o* them )e*ore connecting with the right one. <es- Mr. Cohn was there- )ut who wished to spea2 to him6 Mr. @ec26 Mr. La2e6 0 silence *ollowed- then the maid returned- NMr. Cohn doesn t 2now an% Mr. La2es and wants to 2now the nature o* the )usiness. NTell him Mr. Pec2 wants to spea2 to him regarding a matter o* gra$e importance.N 0*ter a *rustrating dialogue- Mr. Cohn came to the phone. Bill told him that he had to ha$e the $ase )% G:?A p.m. that night and he needed Mr. Cohn to come )ac2 across the Ba%- open his store- and sell him the $ase. Bill was told to contact Mr. +oost. 0gain- Bill encountered the same 2ind o* run4around as he tried to *ind +oost at one o* se$eral countr% clu)s. @e could not *ind +oost. @e )orrowed a hammer then hailed a ta&i. @e was going )ac2 to the art store to )rea2 the window. But when he reached the shop- there was a policeman standing in *ront o* the store. @e le*t and came )ac2 and noticed the sign o$er the store read B. Cohen s 0rt Store. @e sat down on a *ire h%drant and cursed with rage. @is wea2 leg hurt- the stump on his le*t arm de$eloped a *eeling that his missing hand itched. @e too2 the ta&i )ac2 to the hotel. @ope springing eternall% in his )reast- he called Mr. +oost- who then a*ter their con$ersation had to $eri*% with Mr. Cohn the entire stor%. I* Mr. .e2 would just wait at the art store- he would come o$er i* the stor% was accurate. 0t H:=A p.m. @erman +oost arri$ed and )rought the policeman along with him *or protection- just in case. @e opened and retrie$ed lo$ingl% the )lue $aseL the cost was two thousand dollars. Bill had ten dollars- and Mr. +oost re*used a chec2. Bill called Mr. S2inner *rom the compan% and as2ed to ha$e two thousand dollars sent down. There was a time loc2 on the sa*e and no wa% to get the mone%. @e tried Mr. !ic2s s residence to see i* he had the mone%. @e had le*t *or Santa Bar)ara. @e tried e$er%thing. "inall% he went )ac2 to his hotel- got his diamond ring with sapphires set in platinum. It was worth a)out twent%4*i$e hundred dollars. @e le*t it until he could )ring the mone%. It was too late to catch the train that le*t at (:?A p.m. @e went to the *l%ing *ield at Mariner. @e got the address o* the pilot and awa2ened him at midnight. The% headed south in the moonlight with the $ase. 0n hour and a hal* later the% landed in a *ield o* stu))le in the Salinas Oalle%. @e limped to the railroad trac2L and when the train came he made a torch stood )etween the trac2s- and *lagged down the train. The train slid to a halt- and the )ra2eman railed on Bill Pec2 $iolentl%. Bill clim)ed on )oard and said he would purchase a tic2et. The )ra2eman said- NThat s right- ta2e ad$antage o* %our hal*4portion arm and a)use me. 0re %ou loo2ing *or that little old man with the @enr% Cla% collar and the white muttonchop whis2ers6N NI certainl% am.N N7ell- he was loo2ing *or %ou just )e*ore we le*t San "rancisco. @e as2ed me i* I had seen a one4armed man with a )o& under his good arm. I ll lead %ou to him.N 0 prolonged ringing at Mr. !ic2s s stateroom door )rought the old gentleman to the entrance in his nightshirt.

NOer% sorr% to ha$e to distur) %ou- Mr. !ic2s-N said Bill- N)ut the *act is there were so man% Cohens and Cohns and Cohans and it was such a jo) to dig up two thousand dollars that I *ailed to connect with %ou at G:?A last night as ordered. It was a)solutel% impossi)le *or me to accomplish this tas2 in the time limit setL )ut I was resol$ed that %ou would not )e disappointed. @ere is the $ase. The shop wasn t within *our )loc2s o* where %ou thought it was- sirL )ut I m sure I *ound the right $ase. It ought to )e. It cost enough and was hard enough to get. So it should )e a precious gi*t *or %our wi*e or an%one else.N Mr. !ic2s stared at Bill Pec2 as i* he were loo2ing at a spoo2. NB% all that s wonder*ul8N he murmured. N7e changed the sign on %ou- we stac2ed the Cohens on %ou- and we set a policeman to guard the shop to 2eep %ou *rom )rea2ing the window. 7e made %ou dig up two thousand dollars on a Sunda% night in a town where %ou are practicall% un2nownL and- while %ou missed the (::: p.m. train- %ou o$ertoo2 it at 9::: a.m. in the morning and deli$ered the $ase. Come in and rest %our poor old game leg- Bill. Bra2eman- I am much o)liged to %ou.N Bill Pec2 entered and slumped wearil% down on the settee. NSo it was a plan6N he croa2ed- and his $oice trem)led with rage. N7ell- sir- %ou re an old man- and %ou $e )een good to meL so I do not )egrudge %ou %our little jo2e. But- Mr. !ic2s- I can t stand things li2e I could )e*ore I was crippled in the war. M% leg hurts and m% stump hurts and m% heart hurts.N @e paused- cho2ing- and the tears o* impotent rage *illed his e%es. N<ou shouldn t treat me that wa%- sir-N he complained presentl%. NI $e )een trained not to 5uestion orders- e$en when the% seem utterl% *oolish to me. I $e )een trained to o)e% them 4on time- i* possi)leL )ut- i* impossi)le- to o)e% them an%how. I $e )een taught lo%alt% to m% chie*and I m sorr% m% chie* *ound it necessar% to ma2e a )u**oon o* me. I ha$en t had a $er% good time the past three %ears- and %ou can pa4pa4pass %our s2un2 wood and larch rustic and shortodd4length stoc2 to some slac2er.N 0t this point Mr. !ic2s apologi/ed pro*usel% and let Bill 2now that he had passed a test that onl% one other out o* *i*teen had passed and that the reward was a $er% highl% paid position as the manager o* the Shanghai o**ice. B% the time Mr. !ic2s was through with his apolog%- Bill Pec2 had *orgotten his rageL )ut the tears o* his recent *ur% still glistened in his )old )lue e%es. NThan2 %ou- sir. I *orgi$e %ou- and I ll ma2e good in Shanghai.N NI 2now %ou will- Bill. ,ow tell me- son- weren t %ou tempted to 5uit when %ou disco$ered the almost insupera)le o)stacles I had placed in %our wa%6N N<es- sir- I was. I wanted to commit suicide )e*ore I had *inished telephoning all the Cohens in the world. 0nd when I started on the Cohns- well- it was this wa%- sir. I just couldn t 5uit )ecause that would ha$e )een dislo%al to a man I once 2new.N 7ho was he6N Capp% !ic2s demanded- and there was awe in his $oice. N@e was m% )rigadier- and he had a )rigade motto: It shall )e done. 7hen the di$isional commander called him and told him to mo$e *orward with his )rigade and occup% certain territor%- our )rigadier would sa%: Oer% well- sir. It shall )e done. I* an% o**icer in his )rigade showed signs o* shir2ing his jo) )e4cause it appeared impossi)le- the )rigadier would just loo2 at him once. 0nd then that o**icer would remem)er the motto and go and do his jo) or die tr%ing. NThe )rigadier once sent *or me and ordered me to go out and get a certain Kerman sniper. I d )een prett% luc2%4some da%s. @e opened a map and said to me: @ere s a)out where he holes up. Ko get him- Pri$ate Pec2. N7ell- Mr. !ic2s- I snapped to it and ga$e him a ri*le salute and said- Sir- it shall )e done. PI3ll ne$er *orget the loo2 that man ga$e me. N@e came down to the hospital to see me a*ter I d wal2ed into one o* the dustricair ((s. I 2new m% le*t wing was a total loss- and I suspected m% le*t leg was a)out to lea$e me- and I was downhearted and wanted to die. N@e came and )uc2ed me up. @e said- 7h%- Pri$ate Pec2- %ou aren t hal* dead. In ci$ilian li*e %ou re going to )e worth a hal* a do/en li$e ones- aren t %ou6 But I was prett% *ar

gone- and I told him I didn t )elie$e itL so he ga$e me a hard loo2 and said- Pri$ate Pec2 will do his utmost to reco$er- and as a starter he will smile. NO* course- putting it in the *orm o* an order- I had to gi$e him the usual repl% as I grinned and said- Sir- it shall )e done. N@e was 5uite a man- sir- and his )rigade had a soul4his soul.N 0s 7illiam Pec2 told Mr. !ic2s the name o* the )rigadier- !ic2s was $isi)l% startled and saidNThe )rigadier was a candidate *or an important jo) in m% emplo%- and I ga$e him the test o* the )lue $ase.N Then he e&plained how the )rigadier succeeded in getting the $ase. 3yne. Peter.: ,he -o!-etter. tory ,hat ,ells /ou How to 0e 1ne2 (4564). out of +rint2 7etold by Featherstone. 8au%hn 92: "o&&it&ent. 45:6. 0ookcraft. alt #ake "ity. ;tah. +2<!:2

Self&Chec' (uestions Lesson $:

=. 7hat percentage o* construction projects are *inished on time- in )udget- within 5ualit% standards and in a sa*e en$ironment6 a. H:; ). GA; c. A:; d. 9:; 9. a. ). >. a. ). c. d. ?. a. ). c. d. This course is directed to just commercial construction. True "alse Managing ris2 on a project deals primaril% with: )usiness partners stealing which is the main point o* the Ko4Ketter stor% dealing with uncertaint% managing an BSC cur$e The Construction .e%stone Model demonstrates: whole s%stems thin2ing that clients are the center o* our )usiness that leadership dri$es the whole s%stem all the a)o$e

A. 0ccording to high le$erage acti$ities- good )usiness s2ills are more important than construction s2ills. a. True ). "alse
=4d- 94)- >4c- ?4d- A4)

Lesson $ (ui):
See Blac2)oard- 0ssignments- 1ui//es.

*ssi!n"ent $: Preparing a Project Baseline Plan

See Blac2)oard- 0ssignments- 0ssignment Q= "older and *ollow instructions.

Lesson : 8ecoming a Project >u+erintendent Introduction:

7hat does a project superintendent reall% do6 The project superintendent is the construction compan%3s agent and *ield representati$e. Kenerall% all negotiations- agreements and contracts that the superintendent enters into )ecome legal and )inding. Being a project superintendent is li2e ha$ing control o* %our own compan% committed to the tas2 o* )uilding a )uilding. <ou are it. <ou are the general on the *ront line. <ou either ma2e or )rea2 the project. Being a project superintendent is tough )usiness. This lesson pro$ides a residential and commercial construction perspecti$e. Most importantl% it o**ers what project superintendents do to )e success*ul.

Lesson Objectives:
0t the end o* this lesson %ou should: =. Be a)le to descri)e a superintendent3s )asic duties. 9. .now the di**erence )etween the superintendent as a leader and a manager. >. Be a)le to descri)e how a superintendent plans- organi/es- directs and controls a project. ?. Understand what a t%pical da% is li2e *or a superintendent. A. Understand *our leadership st%les o* )eing a project superintendent.

How to Proceed:
=. !ead Basic Construction Management- Chapter =- pg. ==49(L and Construction +o)site Management- pg. =GH4=(=. 9. !ead the 'd +ohnson Inter$iew >. 0nswer the sel*4chec2 5uestions to e$aluate %our readiness to ta2e 5ui/ 9. ?. 7hen %ou *eel that %ou are read%- ta2e 5ui/ 9.

#iscussion

aterials:

5he 4d @ohnson Inter=iew

'd +ohnson is a superintendent *or a M>: million dollar commercial construction compan%. 'd started out as a carpenter la)orer in his late teens. @e is now >A. @e is well respected in the compan% *or )eing a no4nonsense gu% who gets the jo) done. @e has grown through the ran2s *rom )eing a *oreman and now as a superintendent. @e t%picall% is entrusted with project3s that are a)out M9 to MA million. @e is currentl% the superintendent *or a new car dealership- which is

a)out M? million. Some students had a chance to inter$iew 'd a)out what ma2es him success*ul. @ere is how the inter$iew went: Students: =d. what do you think has &ade you successful* 'd: 7ell it all depends. I guess that I am $er% organi/ed and I alwa%s li$e a)out three wee2s into the *uture. Students: 'hat do you &ean >three weeks in the future?* 'd: I3m sure that all o* %ou ha$e heard o* a three4wee2 rolling schedule. 0*ter I ha$e prepared to start a new project- and made sure that we are all read% to go- I alwa%s loo2 at what e&actl% has to happen and how I am going to do it three wee2s in ad$ance. 0t three wee2s I still ha$e time to ma2e adjustments and changes or sol$e pro)lems. I* I start doing that one or two wee2s in ad$ance it is too late. Students: How do you or%ani$e and &oti)ate your e&+loyees and your sub contractors* 'd: I am $er% direct with m% su)s right up *ront. I do not lea$e an%thing to chance or assume that I thin2 I 2now what the% are doing on a certain da%. I re$iew the contract with the su)s $er% care*ull% including: =. 9. >. ?. A. F. G. (. H. =:. ==. insurance re5uirementstheir sa*et% plan and our sa*et% planthe scope o* the wor2 as detailed in the drawings and speci*icationstheir licensing re5uirementswhat meetings the% are re5uired to attendthe project schedule and how the% *it into the schedulehelp them identi*% how the% can )est wor2 with other su)seach su) has a 5ualit% control chec2listhow we communicate on the jo)sitehow we sol$e pro)lemshow we treat each other and the other su)s.

Their wor2 is m% wor2. I am li2e the conductor o* an orchestra. 0 particular su)contractor might )e the trom)one section. The% ha$e got to 2now their part and when to come in at certain parts o* the music. The% ma% ha$e a solo Dli2e the 2e% critical path item on the scheduleE. So the )ottom line is that I ma2e sure that three wee2s out the% are read% to per*orm. I tr% real hard to )e a support and help them sol$e their won pro)lems )ut I still carr% a )ig stic2. I ne$er let them gi$e me their pro)lems. The% are still responsi)le. The )est thing that we ha$e done as a compan% is to de$elop long4term relationships with our su)s. That means that we are wor2ing with people who we 2now *rom pre$ious jo)s. That reall% helps when %ou can wor2 with those that %ou are *amiliar with and %ou 2now how to wor2 together. I thin2 that when su)s per*orm as planned then the% are happ% and ma2ing mone%. The% also 2now that as a KC we can gi$e them *uture wor2. I tr% to )e a straight shooter. 7hen the% mess up I tell them- )ut when the% per*orm well I praise them also. '$er% su) has their own personalit%. I will tr% to do those things that gi$e them some 2ind o* reward that is not monetar%. Such as recogni/ing them in a meeting in *ront o* 2e% people on a project *or wor2 well done.

Students: 'hat about your own e&+loyees* 'd: Sometimes I thin2 that we set our emplo%ees up to *ail. 7e don3t properl% prepare them to succeed. I learned long ago that there are si& critical items that I must gi$e to Dor in other words supportE emplo%ees to )e success*ul. The% are: =. 9. >. ?. A. F. Clear de*inition o* what it is we want them to do. Including the necessar% drawings and speci*ications to per*orm the tas2. "rom the )aseline plan and estimate- how man% people it should ta2e to do the tas2 and how long it should ta2e. Their input into the wor2 is $er% important- so I will alwa%s re$iew the tas2 with the crew *oreman *irst. Ma2e sure that all necessar% materials are on site to per*orm the wor2. Ma2e sure that all necessar% e5uipment is on site to per*orm the wor2. Ma2e sure that all sa*et% training and e5uipment is in place )e*ore the wor2 )egins. 'nsure that proper 5ualit% controls are in place li2e 5ualit% control chec2lists.

Students: 'hat is your daily schedule like* 'd: 7ell- I am usuall% the *irst one on the site in the morning and the last to lea$e at night. I wal2 the site at least twice a da%. Once in the a*ternoon to see i* the da% has gone as planned. This pro$ides me with good in*ormation *or mo$ing ahead with tomorrows wor2. I alwa%s wal2 the site in the morning to see who is there and who isn3t. This also allows me to communicate and gi$e positi$e *eed)ac2 to those on the site. I don3t 2now- )ut I thin2 that it helps *or e$er%one on the site to see the main man. It tells than that I3m watching and 2now what is going on. I am also there to coordinate and sol$e pro)lems. Students: Any last thou%hts about bein% a su+erintendent* 'd: There is more to do than %ou ha$e time to do it in. This is m% personal pre*erence- )ut there are three 2e% acti$ities that I do e$er% da%. I ha$e learned that i* I don3t do these three things then I will not )e success*ul. Ma%)e that is wh% I am alwa%s the last to lea$e )ecause I 2now that I must get these three things done e$er% da% no matter what. The% are: D=E I set aside at least one hour a da% in the morning a*ter I ha$e held morning meetings and communicated with whom e$er- *or paper wor2 and 2eeping the paper wor2 going with m% project engineer and secretar%. D9E In the a*ternoon I alwa%s set aside a)out an hour to re$iew the three4wee2 rolling schedule and ma2e sure that I ha$e identi*ied an% pro)lems and am ahead o* the wa$e instead o* )eing )uried )% it all the time. D>E 0s part o* the re$iew o* the three4wee2 rolling schedule- that is when I do m% own personal planner scheduling- do m% dail% report and trac2 m% to4do list. I read in a good )oo2 somewhere that )eing a good superintendent was all a)out planningorgani/ing- directing and controlling. This is a continual c%cle that I do e$er%da%. (Here is a +icture of =d &eetin% with the owner of the car dealershi+ to re)iew the work2 Does he look ha++y*)

Self&Chec' (uestions Lesson %:

=. The main goal o* a project superintendent is to: a. Ma&imi/e pro*its in the long run while maintaining a standard o* e&cellence. ). Ma&imi/e B5uic2 )uc2C pro*its. c. d. 9. a. ). c. d. Managing time- cost and 5ualit% Show who is the )oss Co$e% de*ines leadership as: managing people e**ecti$el% a)ilit% to wor2 through other people )% winning their respect- con*idence and lo%alt% 0 B)ull4in4the4woodsC 0 )orn trait

>. In residential construction who is the primar% representati$e o* the compan% to the home owner6 a. ). c. d. sales agent production manager superintendent customer ser$ice representati$e

?. #uring the planning process- weather is usuall% onl% considered during which planning phase6 a. 5uarterl% ). monthl% c. wee2l% d. dail% e. c and d onl% A. 7hat3s in a name6 7hich one o* the *ollowing titles con$e%s the *ullness o* the responsi)ilit% carried )% the superintendent6 a. project manager ). construction super$isor c. )uilder d. construction manager answers: =4a- 94)- >4c- ?4e- A4d

Lesson % (ui):
See Blac2)oard- 0ssignments- 1ui//es.

Lesson ": Anderstanding the Project Managers Bole in Client Belations Introduction:
Success*ul construction project management is all a)out relationships. There is not a more important relationship than that o* the project managerJsuperintendent and the client. The project managerJsuperintendent will spent more time with the client than an% one else. <et- o*ten times that person ma% )e technicall% competent )ut ma% ha$e poor people s2ills or what we call Bso*t s2illsC. In a re$iew o* success*ul construction companies it )ecomes $er% clear that much o* their success has come *rom repeat )usiness. This is wor2 that the% did not ha$e to compete *or )ut were Phanded3 )ecause o* a *riendl%- trusting relationship we call client loyalty. In *act most success*ul construction companies had their start )% wor2ing *or one or two clients that 2ept them $er% )us%. M. M. Lele in the )oo2- The Customer is .e%: Kaining an Un)eata)le 0d$antage Through Customer Ser$ice D=H(GE- states: .eeping customers happ% is the )est de*ense against competition. The *irm that 2eeps its customers happ% is $irtuall% un)eata)le. Its customers are more lo%al- and the% )u% moremore o*ten. The% re willing to pa% more *or the *irm s products- and the% stic2 with the *irm through di**icult periods- allowing it time to adapt to change. The commitment to customer ser$ice has su**ered tremendousl% o$er the last thirt% %ears. L. Liswood has stated in the )oo2- Ser$ing Them !ight: Inno$ati$e and Power*ul Customer !etention Strategies D=HH:E: Through procedure manuals- polic% guidelines- and computer s%stems- companies ha$e lost touch with customers and ha$e allowed this unhol% trinit% to in*iltrate the organi/ation and manipulate people s minds until the wea2ened and su)missi$e organi/ation is at their merc%. ,o action can )e ta2en and no decisions can )e made without *irst consulting this might% trium$irate. Customers )ecome *odder *or the machine to chew them up and spit out i* the% do not )eha$e as the s%stem demands. T. Peters and !. 7aterman in their historic wor2 entitled: In Search o* '&cellence: Lessons *rom 0merica s Best4!un Companies D=H(9E 5uote a comment made )% Lew <oung- who was at the time- 'ditor and Chie* o* Business 7ee2. @e e&pressed: Pro)a)l% the most important management *undamental that is )eing ignored toda% is sta%ing close to the customerRin too man% companies- the customer has )ecome a )lood% nuisance whose unpredicta)le )eha$ior damages care*ull% made strategic planswhose acti$ities mess up computer operations- and who insists that purchased products should wor22

Companies that are committed to customer ser$ice are success*ul now and will command the *uture. Construction contractors that desire to )e success*ul are no di**erent. Contractors must )ecome )etter s2illed in mar2eting their ser$ices and ser$ing their customers i* the% are to continue to )e success*ul in a $er% competiti$e and changing mar2etplace. Client retention presents an opportunit% *or contractors to distance themsel$es *rom their competition.

#esson 1b(ecti)es:
At the end of this lesson you should: F. Learn the )asic concepts o* client retention. G. .now the *our areas o* emplo%ee training in customer ser$ice. (. Be a)le to descri)e the eight 2e% strategies in de$eloping a client retention s%stem. H. .now how to deal with angr% clients. =:. Be a)le to e&plain the BBlueprinting Client Contacts ModelC. ==. Understand owners needs.

How to Proceed:
C D D9E !ead and re$iew concepts =4F on Client !elations Answer the sel!7chec( %uestions to e=aluate your readiness to ta(e %ui& ") DFE 7hen %ou *eel that %ou are read%- Ta2e 5ui/ >.

Discussion Material:
Concept =: Understanding Client !etention and Lo%alt% =. Con5uest $s. !etention Mar2eting: GA; o* toda% s mar2eting dollar goes toward *inding new clients DM=?: )illionE. 0merican )usinesses lose =(: million a**iliations e$er% %ear. The a$erage U.S. corporation loses A:; o* their customers e$er% *i$e %ears. 9. 7h% Clients #e*ect: F(; o* clients de*ect )ecause o* emplo%ee indi**erence to their needs. =?; o* clients de*ect )ecause o* product or ser$ice dissatis*action. Too o*ten client patronage is ta2en *or granted. Clients o*ten de*ect )ecause o* misunderstandings or incorrect e&pectations. =?; o* clients de*ect )ecause o* complaints not )eing cared *or. H; o* clients de*ect )ecause o* competition. H; o* clients de*ect )ecause the% mo$ed. F(; o* clients de*ect )ecause o* no special reason. >. The '**ects o* Client #e*ection: H=; will ne$er )u% again *rom that compan%. #issatis*ied clients will communicate their dissatis*action to nine other people. One stud% showed that *or large purchases- onl% ?: to F:; o* clients will e&press their unhappiness. 0nother stud% showed that H:; o* dissatis*ied clients won t e&ert e**ort to complainthe% just ta2e there )usiness elsewhere. In %et another stud%- it was shown that *or e$er% written complaint there is an a$erage o* 9G dissatis*ied clients. Bene*its and Potential Losses o* Client !etention: FA; o* and a$erage compan% s )usiness comes *rom satis*ied clients. It costs A to G times as much to ac5uire a new client as to ser$ice an e&isting one. One research project showed that =:: companies in =9 industries showed that the longer clients sta%ed the more pro*ita)le the% )ecame. 0nother stud% showed that some companies )oosted pro*its =::; )% just retaining A; more clients. 0nother stud% showed that )ecause o* compan% lo%alt% clients are willing to pa%

?.

more *or products and ser$ices. <et another stud% showed that a client who is lo%al *or *our %ears will generate triple the pro*its *rom the *irst %ear. 0nother stud% showed that i* a customer purchases M=:: at the supermar2et e$er% wee2- this constant *low o* re$enue totals MA-9:: %ear- M9F-::: o$er *i$e %ears- MA9-::: o$er ten %ears. This clearl% shows that satis*%ing clients retains emplo%ees *or longer periods o* time Conce+t : Construction Mar(ets are Changing =. Changes in the mar2et place: Mar2eting is new *or most commercial construction contractors. Construction mar2ets ha$e )ecome more comple& with more alternati$e contracting methods. =J> o* re$enues *or the top ?:: contractors now comes *rom design4 )uild. Pro*essional Builder s annual client satis*action sur$e% shows that more clients are rel%ing on word4o*4mouth recommendations. 0 leading U.S. home )uilder accounts *or F:; o* sales *rom re*errals DM> )illion plus compan%E. There is a major mo$e toward relationship and consultati$e mar2eting. There is a mo$e awa% *rom the singular *ocus o* the project completion to more o* listening and understanding to the needs o* the client. Contractors must ha$e competent pla%ers on their team that can pro)lem sol$e- enhance communication and )uild long4term relationships.

There are *our areas o* emplo%ee Dincluding su)contractors and suppliersE training that are paramount in customer ser$ice. 1) Com+anyEs commitment to client satis!action: 5he com+anyFs client satis!action +lan should $e well understood $y each em+loyee and what their +art and res+onsi$ility is) ) Communication >(ills: 4ach em+loyee should ha=e +ro+er training in the Gso!t s(illsH including: listening s(ills- negotiating s(ills- tele+hone s(ills- =er$al and written s(ills+resentation s(ills and how to +ro+erly manage a meeting) ") Pro$lem >ol=ing >(ills: 5hese include: unco=ering and understanding customer needshow to identi!y and resol=e +ro$lems $e!ore they $ecome com+laints- and measuring customer satis!action) ,) Presentation training: #ow to s+ea( $e!ore a grou+ o! +eo+le and deli=er a +ersuasi=e s+eech)

Conce+t ": 5he 4ight <ey >trategies o! >uccess!ul Client Betention and Loyalty =. Blueprinting customer contacts: Identi*% Nmoments o* truthN where clients come in contact with emplo%ees and disco$ering *ail points where ser$ice is most li2el% to go wrong. 9. Management ser$ice commitment to the client: 1ualit% starts at the top. Companies that ha$e achie$ed e&cellence in ser$ice ha$e a strong $ision and strateg% *or client ser$ice. >. 'mplo%ee Client Ser$ice Training: 'mplo%ees should )e gi$en the 2nowledge- s2ill and authorit% to sol$e *ront line pro)lems. Training should include communication- pro)lem sol$ing- presentation and per*orming in Nmoments o* truthN.

?. Managing a Client In*ormation "ile: Trac2ing in*ormation a)out current and past clients purchasing ha)its- *uture needs and other critical issues can )e $er% help*ul in identi*%ingac2nowledging and maintaining long4term relationships. A. Client "eed)ac2: 7ell4designed client satis*action sur$e%s can gi$e *eed)ac2 that ensures that ser$ices are correctl% *ocused on issues that are most important to the client. F. Managing Client Complaints: @a$ing a management s%stem to recei$e and care *or customer complaints can reduce customer de*ections. G. Communicating 7ith a Client a*ter a Project is Completed: '**ecti$e methods o* sta%ing in *ront o* %our client ma% )e special e$ents- newsletters and other pu)lications and a**init% merchandise Di.e. an% item that has %our compan% s name- logo or trade mar2E. (. !eclaiming Lost Clients: B% searching *or the root cause o* client departures- companies with the desire to learn can identi*% )usiness practices that need *i&ing and some4times- win the client )ac2 and reesta)lish the relationship on *irmer ground. '&ample o* Blueprinting Customer Contacts: The *ollowing is a *low chart showing how a commercial construction compan% ma% implement the )lueprinting o* customer contacts and the other se$en 2e% strategies *or client lo%alt%. ,ote three o* the *ollowing elements o* the *low chart. D=E Pre4 sale mar2eting and a*termar2eting segments are di$ided )% the contract appro$al and signing. D9E The moments o* truth show which participants are in$ol$ed in the di**erent stages o* the o* client interaction. ,otice that the project managers and superintendents are ran2ed Q9 during the pre4sale proposal stage and ran2ed Q= during the a*termar2eting phase. D>E The line o* $isi)ilit% shows that se$en strategies interaction with the model )ut it is not $isi)le to the client. ee Blueprinting Client Contacts De&cel *ileE Conce+t ,: >eeing the Project 5hrough the IwnersF 4yes

0 contractor must see the project through the owners3 e%es )e*ore the% can )egin to understand their needs and how the% can )e o* real $alue to them. There are ten 2e% acti$ities that an owner is tr%ing to juggle when planning a new project. Onl% one o* those acti$ities in$ol$es the contractor.

1) Ac%uiring the needed real estate at a +rice and timeta$le that ma(es the +roject +ossi$le) ) Ac%uiring the needed +lanning and &oning a++ro=als to o$tain a $uilding +ermit) 5hese may also include +ermitting !rom the de+artment o! trans+ortation- !ire marshal or a myriad o! other organi&ations that are needed to get a $uilding +ermit)

") A growing challenge !or many ownersJde=elo+ers is the increased demands $y citycounty and state munici+alities to $uild o!!7site im+ro=ements) 5his can signi!icantly increase the cost o! a +roject) ,) 5he architectural design o! the +roject must meet the !unctional needs o! the +roject along with ha=ing a design a++eal that that will sell itsel!) 5his could $e a restaurant that must $e +lanned !or la$orsa=ing o+erational !lows !or em+loyees and also ha=e customer a++eal) Mc;onaldFs and the golden arches +er!ected this idea in a =ery +ro!ita$le way) 3) Iwners and de=elo+ers want to $ring +rojects on7line %uic(er and at a lower cost) 5he selection o! the a++ro+riate contract method is $ecoming more +o+ular to meet !ast7 trac( demands) 5hese might include design7$uild- construction management- or design7$uild with a guaranteed ma'imum +rice) 2) 5he +roject must meet a !inancial $ottom7line) 4=ery +roject has a $udget) 5here is always a +oint where the +roject is no longer !inancially !easi$le) 0) 5he ownerJde=elo+er generally must ac%uire !inancing !or the +roject and must adhere to certain !inancing re%uirements im+osed $y the lending institution) :) 5he +roject must !it into a designated schedule) 5his schedule includes the +rogramming o! all acti=ities !rom initial conce+t to the +roject o+ening) 5he schedule is e'tremely im+ortant $ecause e=ery ownerJde=elo+er wants to ta(e ad=antage o! +ea( sales seasons) An e'am+le is a retail store that wants to $e o+en !or the winter holiday season) 6) Finding the right contractor that can +ro=ide an acce+ta$le cost and deli=er the +roject on time and with the %uality that is desired ta(es time) 1.) A!ter a +roject is com+leted and the !acility is in o+eration- an ownerJde=elo+er wants a !acility that is trou$le7!ree and will continue to grow in =alue) Most im+ortantly- the !acility should meet the o$jecti=e that it was +lanned- designed and $uilt !or) Conce+t 3: 5en Areas Where Project Belationshi+s are Won and Lost 1) Meetings: #ow shall we conduct meetings? What is an e!!ecti=e meeting? #ow shall we record and distri$ute meeting minutes and action items? What can the contractor do to hel+ ma(e the ownerFs jo$ easier in this area? ) Communication and +a+erwor(: What communication does the owner want? What should $e written and what should $e oral? What is %uality written and oral communication? What are high +riority communications and what are the time lines? What can the contractor do to hel+ ma(e the ownerFs jo$ easier in this area? ") Payment !or wor(: #ow should a++lications !or +ayment $e +rocessed? #ow should change orders $e +rocessed? What can the contractor do to hel+ ma(e the ownerFs jo$ easier in this area?

,) Pro$lems: What is the +rocess that the owner and contractor will use to sol=e +ro$lems? What can the contractor do to hel+ ma(e the ownerFs jo$ easier in this area? 3) >chedule: #ow does the owner +re!er to ha=e the schedule communicated to them? What can the contractor do to hel+ ma(e the ownerFs jo$ easier in this area? 2) Quality: #ow should the %uality as+ects o! the +roject $e coordinated and managed? What can the contractor do to hel+ ma(e the ownerFs jo$ easier in this area? 0) >a!ety: #ow can the contractor and owner $est coordinate all as+ects o! maintaining a sa!e wor( site? What can the contractor do to hel+ ma(e the ownerFs jo$ easier in this area? :) Pu$lic Belations: What +u$lic relations acti=ities does the owner ha=e +lanned !or the +roject during construction? #ow shall the owner and contractor coordinate +u$lic relations? What can the contractor do to hel+ ma(e the ownerFs jo$ easier in this area? 6) Iwner 4%ui+ment Coordination: #ow would the owner li(e to manage the coordination o! owner e%ui+ment? What can the contractor do to hel+ ma(e the ownerFs jo$ easier in this area? 1.) Project Closeout Process: #ow shall we manage the closeout +rocess to ensure a smooth transition? What can the contractor do to hel+ ma(e the ownerFs jo$ easier in this area?

Concept F: #ealing with 0ngr% Clients 7hen %ou consider all the things that can go wrong on a construction project it can )e o$erwhelming. That is wh% it is so important to de$elop good pro)lem sol$ing s2ills. 0 superintendentJproject manager spends a majorit% o* their time sol$ing pro)lems. 0nd most o* those pro)lems deal with interpersonal interaction and communications. Consider the *ollowing =( suggestions to assist %ou in de$eloping %our pro)lem sol$ing s2ills. =. #on t e$er get de*ensi$e o* whate$er or whoe$er is )eing discussed. 9. See2 to understand )e*ore %ou see2 to )e understood. DStephen !. Co$e%E a. Be a $er% good listener. ). #on t interrupt them. Listen- listen- listen8 <ou can t listen with %our mouth open tal2ing. c. 0s2 a lot o* 5uestions to clari*% what the real pro)lem is. d. 0nger- *rustration- or *inancial constraints can easil% mas2 the real pro)lem. e. There are usuall% two sides to e$er% stor%. *. #on t )u% into their stor% or an%one else s without researching )oth sides o* the issue. g. #on3t assume an%thing. h. !epeat the concern as %ou understand it )ac2 to the client. Ma2e sure %ou understand it clearl%. >. Put %our personal ego awa%. #on t ta2e things personall%. N@e who slings mud . . loses ground.N DChinese Pro$er)E ?. .eep a smile Dnot a grinE on %our *ace8 Ki$e attention to the seriousness o* the pro)lem- )ut maintain a pleasant- cooperati$e attitude. A. Maintain personal control. '$er%)od% loses when %ou lose control- )ut mostl% %ou lose. This

will )e a challenge )ut will help %our attitude toward achie$ing %our o)jecti$e 4 satis*%ing the client. The mental anguish is the real challenge. F. Sometimes it is )est to let the angr% client $ent their *rustrations. Sometimes it is )est to allow the o$er4angr% client to cool down a little. Tell them %ou will get )ac2 to them in an hour. This will allow them and %ou to calm down and )e more reasona)le 4 then the% will generall% )e more inclined to discuss the real pro)lem and o)tain an accurate list o* concerns. G. The )ottom line is that an angr%- *rustrated client wants someone D%ouE to listen to himJ her without de*ending an%one or )eing interrupting. (. 0llow plent% o* time when writing down a list o* complaints. !epeat )ac2 the list to ma2e sure it is accurate. H. #o not apologi/e *or things %ou don t e$en 2now a)out. !esearch the pro)lem *irst. a. #on t e$er sell out: i. The Compan% ii. The SuperintendentJProject Manager iii. The Sales Consultant or Mar2eting Person i$. 0nother indi$idual =:. 7hene$er possi)le ma2e sure the person )eing discussed is there to de*end himJhersel*. ==. ,e$er surrender authorit%. a. Simpl% apologi/e *or their *rustration and tell them %ou will chec2 into the pro)lem and speci*% a time when %ou will call them )ac2. ). 0s2 *or all a$aila)le phone num)ers Dhome- o**ice- )eeper- cell phone- *a&E so that %ou can reach them. c. Then do it and get )ac2 with them in the speci*ied time. =9. #o not pass judgment until %ou understand the pro)lem. a. Ket help when %ou need it. ). 7hen researching a pro)lem- go to the source. #o not *orm opinions or assumptions. =>. ,e$er put client concerns on a )ac2 )urner. 0ttac2 the pro)lem aggressi$el%. =?. Ma2e promises and commitments onl% a*ter %ou thoroughl% understand the real pro)lem. Under4promise and o$er4deli$er. =A. 7hen resol$ing an issue- ma2e it a top priorit%. The 5uic2er %ou *i& the pro)lem- the 5uic2er %ou restore client con*idence. The goal is alwa%s to satis*% the client and maintain their con*idence. It is the right thing to do. Besides it ma2es per*ect )usiness sense. !e*errals come *rom satis*ied clients and )uilds lo%alt%. =F. 0lwa%s *ollow4up. a. .eep the client updated on progress. ). "ollow4up to ma2e sure the pro)lem is resol$ed. c. Maintain ownership o* the pro)lem until it is gi$en to the right person and all parties understand that ownership has )een trans*erred. =G. I* a project manager or regional manager is in$ol$ed- please )e sure to *ollow up with himJher so heJshe can *ollow up also. =(. Be lo%al to the client. 7hen as2ed )% others a)out %our angr% client- simpl% answerN@eJShe s *ine- just a *ew pro)lems that we need to sol$e.N Be positi$e and don t ma2e *un o* the clients or their concerns.

elf!"heck Questions #esson <:

>el!7Chec( Questions Lesson ":

=. a. ). c. d. 9. a. ). c. d.

7hat is the )est de*ense against competition6 lowest prices )est loo2ing model home 5ualit% polic% and procedure manuals 2eeping customers happ% It costs IIIII to IIIII times more to ac5uire a new client as to ser$ice an e&isting one. =- 9 >- A A- G (- =:

>. There are *our areas o* emplo%ee training that are paramount in customer ser$ice. Unco$ering and understanding customer needs comes *rom what categor%6 a. Companies commitment to client satis*action ). Communication s2ills c. Pro)lem sol$ing s2ills d. Presentation s2ills ?. 7hich o* the *ollowing are not one o* the eight 2e% strategies o* success*ul client retention and lo%alt%6 a. Managing pa%ment o* wor2 ). !eclaiming lost customers c. Blueprinting customer contacts d. 'mplo%ee client ser$ice training A. Considering dealing with angr% clients- which o* the *ollowing statements are *alse6 ,e$er surrender authorit%. 0pologi/e and tell them %ou will chec2 into the pro)lem and speci*% a time when %ou will call them )ac2. ). ,e$er put the client on the )ac2 )urner. 0ttac2 the pro)lem aggressi$el%. c. The )ottom line o* an angr% client is that the% want the superintendent or project manager to tell them what is going on. d. 7hene$er possi)le- ma2e sure that the person )eing discussed is there to de*end himJsel*. a.

DSel*4Chec2 answers: =: d- 9: c- >: c- ?: a- A: cE

#esson < Qui$:

See Blac2)oard- 0ssignments- 1ui//es.

Lesson ,: 5he Project 5eam and ;eli=ery >ystems Introduction:

This lesson *ocuses on the construction project team and the di**erent t%pes o* contract deli$er% methods. S%nerg% has )een descri)ed as = S = T >. "unctioning teams should ha$e the same t%pe o* e**ect. The $alue o* the team as a whole is much more $alua)le than each indi$idual mem)er. It is important to understand who the pla%ers are on the construction team- their roles and responsi)ilities and the rules that go$ern the how the game is pla%ed. 'ach di**erent deli$er% s%stem Dcontract t%pe to per*orm the wor2E carries with it a di**erent set o* rules and pla%ers. 'ach s%stem has its ad$antages and disad$antages. It is important to understand these di**erences so that %ou can )e success*ul.

Lesson Objectives:
At the end of this lesson you should: =. Understand the di**erent t%pes o* contract deli$er% s%stems. 9. Be a)le to descri)e the stages o* team de$elopment. >. Better understand the roles o* the owner- architect and the contractor as team pla%ers. ?. Be a)le to descri)e and e$aluate a project using a sta2eholder anal%sis. A. Understand how ris2 is managed with certain contract deli$er% s%stems.

How to Proceed:
D>E !ead and re$iew the discussion materials. D9E !ead and re$iew Construction +o)site Management- chapter =- pg. =49F. DGE 0nswer the sel*4chec2 5uestions to e$aluate %our readiness to ta2e 5ui/ ?. D(E 7hen %ou *eel that %ou are read%- Ta2e 5ui/ ?.

#iscussion

aterials:

Conce+t 1: 5eam ;e=elo+ment Team de$elopment is an interesting thing. Some %ears ago I came across a model that has helped me in project management. Though all groups are uni5ue and e$er changing the% ha$e some common and identi*ia)le $aria)les. Kroups and teams usuall% de$elop in *our progressi$e steps: ta%e 4: For&in% @ relationshi+s are hi%h and task effecti)eness is at its lowest2 ta%e 6: tor&in% @ relationshi+s botto& out while effecti)eness be%ins to botto& out2 ta%e <: Aor&in% @ relationshi+s are i&+ro)in%. effecti)eness increases sli%htly2 ta%e B: Perfor&in% @ relationshi+s are hi%h and task effecti)eness is hi%h2 Consider the *ollowing ta)le:

'tages of 5eam ;evelopment

Stage 1: Stage 2: Stage 3: Stage 4:

@igh
-orming

Per.orming

@igh

7elationshi+s
,orming

Storming

=ffecti)eness

Low

Low

0s %our project team comes together there is a prett% good chance that the team will go through this process. <ou can e&pect that the initial e&citement Dhone%moon stageE o* the project will 5uic2l% ru) o** and relationships will hit a low. But- o$er time- the team will )egin to come together and the o$erall e**ecti$eness o* the group will increase su)stantiall%. #uring the storming step team mem)ers are learning to communicate and wor2 together. I3$e o*ten re*erred to this as the Blearning to dance togetherC stage. In a later lesson we will address this more deepl%. 0*ter the *irst two stages- relationships deepen and usuall% e**ecti$eness increases. @ow long does this process ta2e6 It depends on how closel% the team mem)ers wor2 together- the nature o* the wor2 and personalities. It is e&citing to see a team who li2e one another and are at a high per*ormance le$el. There are occasions when teams ne$er get past storming. <ou ma% 2now o* some. Conce+t : >ta(eholder Analysis

0 sta2eholder is an%one who has a $ested interest in the project. Un*ortunatel% under a lump sum agreement owner and contractors are at natural odds with each other. The owner wants high 5ualit% at the least cost- and the contractor wants to ma&imi/e e$er% opportunit% *or increased pro*its. These two sta2eholders ha$e di**erent interests. Consider the *ollowing ta)le that ta2es at loo2 at the $aried sta2eholder interests on a project. >ta(eholder Analysis 5a$le:

>ta(eholder Iwner Contactor *rchitect +e!ulatory *!ency Property ,ei!hbor

Ma'imi&e
O$erall $alue Pro*ita)ilit% #esign and )eaut% Li*e sa*et% and code compliance "inancial $alues and least interruption

5ime
Less time More time Sides with owner #oesn3t care Less time

Cost
Least cost !aise priceJcut costs #oesn3t want to cut design #oesn3t care #oesn3t care

Quality
@ighest 5ualit% Onl% pro$ide what was )id @ighest 5ualit% +ust has to meet code compliance @ighest 5ualit%ma&imi/e $alues

#oes it surprise an%one wh% there are project disagreements8 '$er%one seems to )e pulling in di**erent directions. One o* the main reasons *or the increase in alternati$e deli$er% methods is to stop this con*rontational approach and get the contractor- owner and architect all wor2ing together with the same moti$es. There also ha$e )een ad$ances made in wor2ing together with regulator% agencies. The principle o* Partnerin! will )e discussed in a *uture lesson. Conce+t ": ;eli=ery >ystems and Bis( Construction contract deli$er% methods are all a)out managing ris2. In a lump sum agreement the contractor assumes the greatest ris2 )ut ma% also )e more pro*ita)le. On the other end o* the spectrum the CM contract has almost no ris2 )ut also has no opportunit% *or increased pro*its. It is interesting to note that architects carr% little ris2 on projects. It is )ecause o* this that in man% areas o* the countr% architects ha$e )een regulated to a reduced role and contractors ha$e now assumed to role o* the Master Builder. This is all )ecause o* project in*luence and ris2. See the *ollowing graph to illustrate this principle.

3anaging <isk
(!ontractors Perspective .#ner #ould be <everse" @igh Pro!its K CMJKMP Contract Lump Sum Contract

CM Contract Low ;egree o! Bis( @igh

Self&Chec' (uestions Lesson -:

=. In a traditional lump sum contract deli$er% s%stem- there is a contract )etween the contractor and the architect. a. true ). *alse 9. Cost plus- a KMP is: a. the same as Btime and materialC ). cost plus a *ee- o*ten splitting sa$ings with the owner c. lists o* 5uantities o* components- priced per unit d. the most common deli$er% s%stem

>. a. ). c. d.

<ou can e&pect the most pro)lems in team de$elopment during: stage = stage 9 stage > stage ?

?. Most B<U CM majors- who go into commercial construction- start out as a IIIIIIIIIIIII when the% graduate. a. project manager ). contract administrator c. superintendent d. project engineer A. a. ). c. d. 0n architect as a sta2eholder wants to ma&imi/e: o$erall $alue pro*ita)ilit% design and )eaut% li*e sa*et% and code compliance

Danswers: =4)- 94)- >4)- ?4d- A4cE

Lesson - (ui):
See Blac2)oard- 0ssignments- 1ui//es.

Lesson 3: Commercial Project Pre+aration and Be=iewing Construction ;ocuments Introduction:

Preparation *or a project is a critical acti$it%. In a pre$ious lesson we ha$e discussed the preparation o* a project )aseline plan and how to measure progress o* time and mone%. This lesson goes into more detail as to the re$iewing o* the construction drawings and speci*ications Dproject manualE. It also pro$ides an e&ample o* how a project manager or superintendent would re$iew drawings and speci*ications in preparation *or starting a new project. In *uture lessons we will discuss reading- writing and understanding contracts- )udgeting and cost controlsproducti$it% and jo)site la%out and 5ualit% control preparation.

Lesson Objectives:
At the end of this lesson you should: F. Understand the se$en areas that project managers manage. G. .now how to complete a Project !is2 0ssessment 7or2sheet (. Be a)le to re$iew a project manual and understand how to use it to administer the project. H. .now how to re$iew drawings in preparation *or construction. =:. Understand how during wor2 right the *irst time can sol$e *uture pro)lems. ==. 0*ter completion o* assignment 9- )e a)le to criticall% anal%/e a project *rom =G di**erent $iewpoints and )e a)le to write a Project !is2 0ssessment *rom the planning stage to the recording o* the outcome o* the actual project. ,his >real world? si&ulation will hel+ +re+are you for better +ro(ect +lannin% and &odelin% +roble& sol)in% skills2

How to Proceed:
D?E !ead and re$iew the discussion materials. D9E !ead and re$iew Construction +o)site Management- Chapter 9- pg. 9G4A?. DHE Become *amiliar with the 0I0 #ocument 0 9:=- Keneral Conditions o* the Contract *or Construction *ound in the 0ppendi& in Construction +o)site Management- pg. ?:=4?9F. D=:E0nswer the sel*4chec2 5uestions to e$aluate %our readiness to ta2e 5ui/ A. D==E7hen %ou *eel that %ou are read%- Ta2e 5ui/ A. D=9E!ead- re$iew and complete assignment 9.

#iscussion

aterials:

Conce+t 1: Project Bis( Assessment

!emem)er our project superintendent 'd +ohnson6

Let3s see how he prepares to start a new commercial project. 'd has reali/ed *rom e&perience that he has se$en areas o* major responsi)ilit%. These areas are:

Time DscheduleE Cost D)udget and project pro*ita)ilit%E 1ualit% Das speci*ied in the construction documentsE Sa*et% Das re5uired )% lawE !elationships Dcommunication with all the sta2eholders *or the projectE Customer Satis*action Dgetting repeat )usiness and re*errals *or good
wor2E

!is2 Management D#ealing with unseen pro)lems earl%E

0s 'd )egins the project re$iew process he creates an o$erall ris2 anal%sis wor2sheet *or the project that helps him determine possi)le pro)lems that he might incur and what opportunities that he might ta2e ad$antage o*. Consider the *ollowing e&ample. 7hen 'd )egan the re$iew o* the car dealership he

disco$ered the *ollowing in*ormation:

5ime: The schedule was planned to start in the *all and conclude in the spring. There where weather da%s included in the schedule. The project was dela%ed and is not going to start until the spring. tren%th: )etter weather- 1++ortunity: pic2 up da%s due to )etter weather
=.
9. Cost: The estimator guessed on a *ew line items in the )udget. There loo2s to )e a MA-::: short *all in the )udget. 'eakness: )udget short- ,hreat: o$er )udget. >. Quality: 'd is ha$ing a di**icult time *inding a particular )ric2 that is speci*ied. 'eakness: )ric2 not a$aila)le- ,hreat: ma% a**ect time and )udget. ?. >a!ety: 'd is well trained in sa*et% and all o* his past projects ha$e had an e&cellent sa*et% record. tren%th: 2now regulations- 1++ortunity: could sa$e time and )udget.

A. Belationshi+s: The project architect is 2nown *or )eing tough to get along with. 'eakness: di**icult architect- ,hreat: could a**ect time and )udget.

F. Customer >atis!action: The customer is prett% demanding )ut 'd is up to the challenge. 'd needs to get to 2now the customer )etter to ensure that he hits his hot )uttons. tren%th: a)ilit% to understand customer- 1++ortunity: 'd needs to get to 2now the customer )etter. Ki$en this e&ample- re$iew the *ollowing Project !is2 0ssessment 7or2sheet. "ar Dealershi+
Strength )etter weather

Wea(ness

I++ortunity 5hreat
pic2 up da%s due to )etter weather

5ime
Cost Quality >a!ety Belationshi+s Customer >atis!action

)udget short )ric2 not a$aila)le 2now regulations di**icult architect could sa$e time on )udget

o$er )udget ma% a**ect time)udget- 5ualit% could a**ect time and )udget

a)ilit% to understand customer

get to 2now the customer )etter

Conce+t : Anderstanding the Administration o! the Contract

It is important to understand the organi/ation o* the contract documents and how to use them. This is how 'd does it. =. 'd has a good understanding o* the 0I0 09:= Keneral Conditions o* the Contract. @e 2nows that the =? articles in the document set the *oundation *or construction contract law. 9. 'd re$iews the Supplemental Instructions to re$iew those times that are speci*ic to his project that modi*% the 0I0 09:= Keneral Conditions o* the Contract. @e ma2es notes o* all o* the changes. >. ,e&t- 'd is $er% interested in stud%ing #i$ision =- Keneral !e5uirements )ecause it is the section that descri)es how the project is to )e administered. This section outlines all general re5uirements that he must carr% out. Dpage >H o* Construction +o)site Management pro$ides a good outline o* di$ision = re5uirementsE ?. 'd then )egins to re$iew #i$isions 94=F. @e loo2s at each di$ision and section care*ull%. @e 2nows that Part =- Keneral- o* each section is a more speci*ic e&tension o* the administrati$e direction gi$en in #i$ision =. "or e&ample in #i$ision = outlines the general procedure *or su)mitting shop drawings. In Part = o* an% section it speci*icall% descri)es what shop drawings

should )e su)mitted and an% other speci*ics pertaining to that speci*ic section. DI don3t 2now how to )e more speci*ic a)out speci*ics8E 'd also re$iews Part 9- Products o* each section which descri)es what materials are re5uired *or each section. Then he re$iews Part >- '&ecution which descri)es how the materials are to )e installed or Bput into placeC. Conce+t ": Be=iewing the ;rawings and Project Manual C>+eci!icationsD =. 'd will usuall% *ollow the se$en steps descri)ed on page ?(- "amiliari/ation 7ith the Project. 9. 'd will usuall% ta2e the drawings apart and put them on a Bstic2C and hang them in a plan rac2. DSee page ?9 as to how to di$ide up the drawings.E @e will prepare B@isC set o* drawings *or the jo) trailer- which are mar2ed and cross4re*erenced to the project manual. @e ma% e$en cut out sections o* the project manual and paste them to the appropriate drawing pages tot help clari*% and descri)e how the project is to )e )uilt. F. 7hat is 'd loo2ing *or6 @e is loo2ing *or an% incomplete drawing or speci*ication that will stop him *rom )uilding an% certain part o* the project. @e usuall% ta2es a pad o* paper and )egins to ma2e a list o* items to )e clari*ied )% the architect or engineer. Contractors are trained to )uild *rom )lue lines DdrawingsE and speci*ication Dproject manualE descriptions. 7hen those )lue lines and descriptions don3t ade5uatel% descri)e what materials are used and how something is to )e installed then he needs clari*ication. .d 'nows fro" e/perience that there is no

such thin! as a co"plete set of drawin!s and specifications and that there will always need to be "any clarifications.

Conce+t ,: Potential Pro$lem >ol=ing

'd wants $isit the site o* the project earl% on and identi*% an% potential pro)lems. @e will re$iew the geotechnical and soil reports to disco$er an% su)sur*ace pro)lems. @e will wal2 the site and loo2 *or an% sign o* an% thing that could )ecome a pro)lem. It ma% )e o$erhead power linesutilit% easements- spring runo** ditches- and )ea$er and alligators li$ing on the site. DThese are all true- I3$e had them all.E Beware and don0t assu"e that reports in the project "anual are co"plete. !eports don3t alwa%s gi$e %ou the whole stor%.

In *uture lessons we will )egin to outline important principles o* Total 1ualit% Management DT1ME. T1M starts right here. It is doing wor2 right the *irst time so that %ou can a$oid pro)lems later.
There is a $er% important principle that %ou should learn *rom this lesson. The principle is called the #istance Principle o* Pro)lem Sol$ing. It sa%s this:

If you can see a potential proble" fro" a distance you can !enerally "a'e chan!es now at little cost1 or loss of ti"e1 but1 the closer you !et to the proble" the "ore it will cost to solve and you will lose "ore ti"e in solvin! it. This is what project preparation is all a)out8

Self&Chec' (uestions Lesson 2:

=. The contractor is o)ligated to compl% with codes and regulations e$en i* the% are not speci*ied or re*erenced in the construction documents. a. true ). *alse 9. The di**erence )etween engineering drawings *rom architectural drawings is that: a. engineering scale is graduated in =J=: o* a *oot ). the% are the same c. recommended )% the 0I0 d. engineering scale is UC T =3:C 0n e&ample o* supplementar% conditions is: a. 09:= re5uires )uilders ris2 insurance )e carried )% the owner- this is changed to the contractor ). Change 09:= *rom ar)itration to court litigation c. Change 09:= *rom no monetar% le$el o* insurance to M=-:::-::: d. 0ll the a)o$e

>.

?. 0 *inish carpenter wants to re$iew the project manual and drawings. 7hat CSI di$ision would %ou direct him to6 a. A ). H c. == d. => A. Preparing crew assignments include what elements: a. site plan re$iew- *loor plans- ele$ations- sections- mechanical ). materials- tools- drawings c. drawings- technical specs- materials list- tolls- estimate in*ormation d. materials onl%

Danswers: =4a- 94a- >4d- ?4)- A4cE

Lesson 2 (ui):
See Blac2)oard- 0ssignments- 1ui//es.

*ssi!n"ent %: The Super Bridge 0nal%sis

See Blac2)oard- 0ssignments- @omewor2 0ssignments and *ollow instructions.

Lesson 2: Besidential Project Pre+aration Introduction:

I o*ten thin2 that construction can )e somewhat compared to manu*acturing. In manu*acturing %ou wor2 in a nice production *acilit% where %ou can control an assem)l% line in almost per*ect order. The weather is alwa%s ideal- parts and pieces are readil% at hand- and wor2 crews ha$e all their tools right there. In construction- we ha$e to dig a hole in the dirt- )ring in all o* our own tools and la)or- )attle weather conditions- wait *or )uilding materials. 7hat is the di**erence )etween these two scenarios6 It3s control8 In manu*acturing we can control so man% $aria)les. In construction- we ha$e much less control o* the $aria)les. Someone once said that there are o$er A:-::: elements that go in to a new home. That ma% )e more elements than *or man% commercial )uildings. There must )e a lot o* coordination and communication with that man% elements. This chapter should help %ou in planning and organi/ing those elements so that %ou are prepared to manage the man% $aria)les that a**ect construction. I* %ou are luc2% %ou just ma% )e a)le to control the $aria)les that will ta2e a t%pical construction site and create more o* a manu*acturing en$ironment.

Lesson Objectives:
At the end of this lesson you should: =. Understand the components o* a residential preconstruction chec2list. 9. .now how to conduct a site meeting and what to loo2 *or. >. Understand and conduct a residential preconstruction meeting. ?. Be a)le to organi/e residential construction reports.

How to Proceed:
DAE !ead and re$iew the discussion materials. D9E !ead and re$iew Basic Construction Management- Chapter 9- pg. 9H4??. D=>E0nswer the sel*4chec2 5uestions to e$aluate %our readiness to ta2e 5ui/ F. D=?E7hen %ou *eel that %ou are read%- Ta2e 5ui/ F.

#iscussion

aterials:

It is good that airline pilots are *orced to re$iew a chec2list e$er% time the% *l%. '$en when the% ha$e *lown thousands o* times it is eas% to *orget something. One minor chec2list item ma% )e $er% costl% or e$en deadl%. Thus the old adage that the dullest pencil is )etter than the sharpest mind. The *ollowing are == areas that I ha$e used as a residential pre4construction chec2list. It has ser$ed me well *or man% %ears. The chec2list is not necessaril% in order. Besidential Pre7Construction Project Management Chec(list 1) Financing: O)$iousl%- %ou can3t start construction until the *inancing is in place. #on3t e$er distur) an%thing on the lot until the construction loan is closed and recorded or %ou could ha$e lien pro)lems. cop% o* signedJrecorded loan appro$als long term loan amount short term loan amount )an2 draw re5uest re5uirementsJtimeline

construction draw *orms cost per da% *or interest )an2 inspection re5uirements appraisal ) 8oo((ee+ingJProject Be+orting: D7e will re$iew this in more detail in a *uture lesson.E contract documents list o* su) contractors and suppliers- credit limit- phone- mo)ile- contact- *a&- pageraddress- license- insurance list o* su) contracts and supplier 5uotes 4 coded )lan2 )an2 draw applications )an2 construction estimate 4 coded alpha *ile o* su)s and suppliers numeric *ile )% codes o* su)s and suppliers s%stem *or trac2ing cost estimate- amount committed or spent to date- amount under or o$er )udget in each coded categor% D$ariance reportE purchase order s%stem- match PO3s to in$oices and negotiated prices ") Lot: D0 more detailed chec2list is in the reading.E date purchased legal address propert% address locate propert% lines- corner sta2es Dsur$e% ma% )e re5uiredE set)ac2 re5uirements- pull string )luesta2es: locate water- sewer- electrical- gas- ca)le- telephone- irrigation other locate an% utilities to pro&imit% to propert% /oning locate an% easements ,) >iteJProject Layout: Spending just a little time on jo)site la%out can impro$e the o$erall producti$it% o* the project. access to site- road and sa*et% issues site constrains- si/e- shape material la%down area *ill area concrete truc2 lanes $s. pumping securit% sa*et%- instructions on site temporar% electrical temporar% water cur)Jwal2Jwater meter protection sanitar% *acilities concrete truc2 cleanup area

temporar% lighting gar)ageJdumpster telephone water meter si/e winterJweather conditions 3) Possi$le Ins+ections CcityD: Identi*%ing all re5uired inspections )% the municipalit% that %ou are )uilding in is important to 2now )e*ore the project )egins so that %ou can put them into the schedule. plan re$iew stamped appro$ed plan set *ootingJset)ac2sJu*er *oundation uJg plum)ingJheatingJelectrical shear panel power to panel rough elec. rough plum)ing rough mechanical *raming dr%wallJ*irewall stucco soils structural 4 concrete- masonr%- grading *inal temperament Dhow cooperati$e are the% to wor2 withE 2) Atility 4arly Irder: Identi*%ing and ordering utilities earl% is $er% important. Some utilities ma% ha$e $er% long lead times. <ou need this *or %our schedule. temporar% elec. temporar% water gas line 4 gas compan% gas meter set re5uirements *or permanent elec. permanent elec. permanent telephone ca)le TO permanent water meter set 0) Project CPM schedule: The *ollowing are critical elements to the schedule. ,ote the *i$e milestones. The completion o* each milestone is care*ull% scheduled- monitored and ne$er missed. Milestones: D=E concrete complete- )ac2*illed- read% to *rame

D9E project dried4in with windows- doors D>E @O0C- plum)ing- electrical- gas- ca)le- telephone- computer$acuum- ?4wa% inspection D?E dr%wall- *inish carpentr%- painting DAE ca)inets- hardware- other *inishes- *looring- *inal inspection municipalit%- )an2 inspections )u%er product selection- order lead times time o* %earJweather conditions :) 8uyer selectionJo+tion items: !ight up *ront the contractor and )u%er must ha$e a clear idea what products are going into the house. This is $er% important to the home )u%ers. Man% larger )uilders ha$e a design center that helps )u%ers with color selection and coordination. Be $er% care*ul a)out suggesting colors that %ou li2e8 It could get %ou in trou)le i* once it is up and the% don3t li2e it. .now the )udget and allowance and whether or no there is e$en a choice option. .eep a record o* the selections and ha$e the home )u%er sign their appro$al. The *ollowing is a common list. )ric2 st%le and color stucco st%le and color roc2 color and st%le siding Jso**itJ*aciaJgutter st%le and color shingles st%le and color paint colors railing st%le and color interiorJe&terior lighting selection plum)ing *i&ture st%le and color appliances st%le and color *loor co$ering st%le and color door- window st%le and color hardware st%le and color insulation ratings @O0C selection *inish carpentr% trim st%le tile st%le and color counter tops st%le and color specialt% items color and st%le *ireplace st%le and color 6) Quality Control Chec(list: <ou will )e seeing 5ualit% control chec2lists in %our sleep )e*ore this course is o$er. concrete *raming spea2ers-

windowsJdoors e&terior dr%4in dr%wall *inish carpentr% other *inishes 1.) ;rawings and >+eci!ications: The general and su) contractors need ade5uate drawings and speci*ications in order to per*orm their wor2 correctl%. complete set o* corrected plans plot plan detail drawings M'C Chec2 report code compliance other re5uired drawings 11) Meetings and Corres+ondence: 0s mentioned earlier- coordination and communication is what project managers must $er% well. negotiate lot purchase *rom seller mortgage 4 long term loan )an2 4 short term construction *inancing home )u%er cit% )uilding permit appro$al- inspections cit% utilit% connections other utilities su) contractors material suppliers

Self&Chec' (uestions Lesson 3:

=. a. ). c) d. @ow man% CPM milestones does the residential chec2list suggest6 > ? 3 F

9. 7hich o* the *ollowing would not )e a progress report6 a. communication with homeowner ). sol$ing pro)lems with homeowners and su) contractors c. )u%er pro*ile 5uestionnaire d. in*ormation *or su)s and suppliers >. a. ). c. d. e. 7ho attends the site meeting6 contractor su) contractors )u%er cit% inspector a and )

*. ?. a. ). A. a. ).

a and c Ta2ing and distri)uting minutes o* the preconstruction meeting is a good idea. true *alse <ou don3t want to gi$e a cop% o* the schedule to the home )u%er. true *alse

Danswers: =4c- 94c- >4*- ?4a- A4aE

Lesson 3 (ui):
See Blac2)oard- 0ssignments- 1ui//es.

Lesson 0: Besidential Cost Controls Introduction:

Controlling mone% has ne$er )een eas%. This is especiall% true with project management. +o) cost management is as much an art as a science. In this lesson %ou will learn some )asic s2ills in creating a )udget- trac2ing costs and re$iewing $ariance reports. <ou will also learn how to project potential )udget pro)lems deal with those pro)lems earl%. <ou will learn a jo) cost model that %ou will )e a)le to create and use on an% construction project.

Lesson Objectives:
At the end of this lesson you should: =. Be a)le to understand the principles and acron%ms o* the jo) cost model. 9. Be a)le to calculate totals using the jo) cost model. >. Be a)le to recogni/e jo) cost coding. ?. Understand jo) cost *orecasting tools. A. Understand )asic residential )udgeting and $ariance reports. F. Understand material control and $alue engineering. G. Be a)le to e&plain a purchase order s%stem and its )ene*its. (. Understand actions to a$oid )udget $ariances.

How to Proceed:
DFE !ead and re$iew the discussion materials. D9E !ead and re$iew Basic Construction Management- Chapter ?- pg. F=4GF. D=AE0nswer the sel*4chec2 5uestions to e$aluate %our readiness to ta2e 5ui/ G. D=FE7hen %ou *eel that %ou are read%- Ta2e 5ui/ G.

#iscussion

aterials:

Conce+t 1: 5he @o$ Cost Accounting Model- Anderstanding Committed Costs There are man% di**erent jo) cost accounting models. Chapter ? o* the reading presents a standard approach to residential )udgeting- cost control and $ariance reporting. I am going to share with %ou an approach that wor2s well *or )oth residential and commercial cost control. I ha$e used this s%stem in the construction o* o$er M=A: million in new construction. Prolog is a computeri/ed project control so*tware. Prolog is similar to this model. <ou will )e learning Prolog in a later lesson. I )elie$e that it is important to )e a)le to understand and create a jo) cost s%stem *rom scratch using a simple spreadsheet. I* %ou can create the s%stem %ou will understand it much )etter. <ou will also )e a)le to understand more comple& jo) costing s%stems. "onsider the followin%: 7hen %ou start a project %ou should ha$e a )udget. In *act %ou should ha$e a )udget )ro2en down into man% smaller )udgets. Ban2s sometimes will ha$e their own )udget codes in residential construction. Ban2s sometimes call the )udget sheet the cost )rea2down or )uilding estimate. I reall% pre*er using the Constructions Speci*ications Institute DCSIE Master"ormat coding s%stem *or )oth residential and commercialJindustrial construction. Once %ou understand the =F #i$isions and coding s%stem it reall% wor2s 5uite well and is understood )% man% in the

industr%. D@ere3s a hint- i* %ou still ha$e that )ig )oo2 %ou )ought- go to the 2e% word inde& and loo2 *or 2e% words that )est descri)e %our )udget line items.E Let3s suppose that one o* %our line items is *or masonr% and %ou select the CSI code num)er o* ?9::- D#i$ision ? Masonr%E. 0s %ou esta)lish %our )udget Din commercial these are called Schedule o* Oalues or SOOE %ou re$iew %our estimate rollup sheet and determine that %our )udget Dor SOOE *or masonr% is M>?-:::. 0s %ou are preparing to start this new project- %ou want to sign up Dmeaning sign a contractE all o* %our su) contractors and suppliers that )id or other4wise ga$e %ou pricing *or the project. This is o*ten called B)u%ing out the projectC. <ou re$iew the masonr% )id *rom B V B Masonr%. Their )id was M>:-:::. 0s %ou read their proposal there are a *ew items that %ou as the general contractor must pro$ide that the% are not pro$iding. "or our e&ample lets sa% that it is the steel lintels that go o$er the windows and doors to carr% the )ric2. The estimator Dma%)e that3s %ouE determined that the cost o* lintels would )e M=-(::. So %ou call Bo) *rom B V B and the two o* %ou get together and negotiate and sign a contract *or M>:-:::. So how do %ou account *or the )udget- the contract that %ou just committed to the )udget and the e&tra M=-(:: %ou will ha$e to spent *or the lintels6 4he 5ob Cost odel 65C 7:

<ou want a jo) costing s%stem that not onl% will accuratel% account *or %our )udget- and what %ou ha$e spent against that )udget Da $arianceE )ut also what %ou are still committed to spend in the *uture and other potential costs that %ou are )eginning to see creep into the costs o* the project. There are *our components to the +o) Cost Model. The )udget that simple shows the dollars a$aila)le *or speci*ic line items- the amount committed that reports all amounts committed to a certain line item whether or not dollars ha$e actuall% )een spent in the line itemthe $ariance that is the di**erence )etween the )udget and committed costs and the spent categor% that reports actual dollars spent- actual dollars le*t and the percentage o* dollars spent *or the period to date.

The +o) Cost Model loo2s li2e this:

8udget
CSI Code SOO ?9:: M>?-:::
Dmasonr% CSI codeE DSchedule o* Oalues- line item )udgetE

AC7Amount Committed
SC S 'T" S PCO T 'T M>:-::: M9-::: M=-::: M>>-:::
Dsu)contract to B V B Masonr%E D'stimate to "inish- windowJdoor lintelsE DPotential Change Order- B V B claimE D'&pected TotalE D0mount Committed OarianceE DSchedule o* OaluesE D'&pected TotalE DOarianceE D#ollars Spent Oariance !eportE D#ollars Spent- Project to #ate- negotiatedE D#ollars Le*t- Project to #ate- SOO4#SE DPercent Spent- Project to #ate- #SJSOOE

AC7Lariance
SOO 4 'T T O0! M>?-::: M>>-::: M=-:::

;7>+ent Lariance
#S #L PS MG-A:: M9F-A:: 99.:F;

@ere is how the model wor2s: The )udget *or masonr% D?9::E is M>?-:::. The goal is to 2eep committed costs less than the )udgeted costs. I* committed costs are greater than the )udgeted costs- %ou are o$er )udget- meaning- that %ou are going to lose mone% *or this line item. Budgeted costs should )e e5ual or less than 0C: 0mount Committed plus 'T" D'stimate to "inishE and PCO DPotential Change OrderE. This is totaled in 'T D'&pected TotalsE then deducted in 0C4Oariance. This $ariance is much more important than the #4Spent Oariance )ecause it includes projected dollars to )e spent. #ets define the 9"M acrony&s: 9"M: 9ob "ost Model "ode: " I line ite& nu&ber followin% the MasterFor&at2 18: chedule of 8alues or in other words the line ite& bud%et2 A": A&ounted "o&&itted by si%nin% a contract or issuin% a +urchase order or so&e other &ethod that co&&its the line ite& to a certain dollar a&ount2 =,F: =sti&ate to Finish &ay co&e fro& &isc2 ite&s not co)ered in a sub contract or it &ay be uneC+ected costs that are truly the cost to the %eneral contractor2

P"1: Potential "han%e 1rder &ay be costs that you feel are in question and are not the res+onsibility of the %eneral contractor2 ,his is a cost that is under ne%otiation and &ay be the cost of the owner or a sub contractor2 P"1 lets you +ut it in a +lace where it will not be for%otten until ne%otiations can take +lace2 =,: =C+ected ,otal. ,otal of addin% "P1#1 ( ":subcontract. P1:Purchase 1rder. #:#abor. or 1:1ther debit a%ainst the 18)D=F,DP"1 A"!8ariance: A&ount co&&itted subtracted fro& the line ite& bud%et2 ,his is a better )ariance re+ort because it includes =,F and P"1 +ro(ected costs2 D! +ent 8ariance: ,his is the ty+ical )ariance re+ort that show actual dollars s+ent2 D : Dollars +ent is actual &oney +aid to date for the line ite&2 D#: Dollars #eft is the actual &oney left in the line ite& account2 P : Percent +ent is the +ercenta%e of the bud%et that has actually been s+ent to date2 ,his is hel+ful to deter&ine as a check that if the +ercenta%e s+ent see&s to be equal to the +ercenta%e that is co&+lete for the line ite&2 If the +ercenta%e is too hi%h then you &ay ha)e a +roble&2 There are a *ew num)ers in the model that %ou do not recogni/e. 0ssume that construction has )egun and %ou are now two months into the project. 'T" o* M9-::: is the planned cost o* the M=-(:: *or the lintels plus an additional M9:: *or potential minor o$erruns that %ou are anticipating. The PCO o* M=-::: is *or e&tra wor2 that B V B Masonr% wants to charge )ecause the% did e&tra wor2 that was not clear on the drawing. <ou are preparing to present this to the owner *or a change order. B V B masonr% did not start o* the project until the )eginning o* month two o* the project. <ou recei$ed and appro$e the *irst pa%ment Dor drawE o* their contract o* MGA::. This is a negotiated amount. So what does the model tell us6 "irst and most importantl% is that the line item ?9:: onl% has a)out M=-::: o* cushion le*t in it. It is hope*ul that %ou can get the additional M=-::: o* the PCO either appro$ed )% the owner or get B V B Masonr% to )ac2 o** their re5uest. 0ll seems to )e going prett% well with the masonr% )udget line )ut there is not an% e&tra room in case o* an% pro)lems. ,ow- i* %ou onl% loo2ed at the dollars spent and the amount le*t in the line item to spent- would %ou ha$e gotten the same in*ormation6 ,ot e$en close8 That is wh% it is so important to ha$e a jo) costing s%stem that allows *or committed costs in addition to $ariance reports that just show what has )een spent. 'T" and PCO are two e&cellent jo) cost *orecasting tools that are included into the +CM that pro$ide a much )etter picture *or )etter jo) cost management. Sel*4chec2 5uestion A lets %ou wor2 through a pro)lem. There is one similar pro)lem in the 1ui/. Conce+t : @o$ Cost Account Coding ,ow that %ou ha$e an understanding o* )udget line item setup and how costs are shown as either committed or actual pa%ments are made- lets loo2 at how entries can *low into the model. There are )asicall% three wa%s that %ou can spend against the )udget line item. The% are:

" ! ub "ontract- <ou can write a su) contract. P1 ! Purchase 1rder- <ou can write a purchase order *or generall% materials or purchasing or renting e5uipment. # ! #abor- <ou can hire %our own emplo%ees or temporar% help to per*orm la)or on the project. 1 ! 1ther- is *or other un*oreseen *inancial purchases or commitments that don3t come through the a)o$e three methods. This is reall% a catch4all *or mista2es made in the su) contracting and purchasing s%stem. DPut this all together it spells SCPOLO. I call this the sic2 polo method8E So whene$er %ou want to charge an%thing against a line item there is a transaction coding process that ta2es place. '$er% SC- PO- L and O is coded with a num)er that means something. The code loo2s li2e this: De&ample: :=F49::94SC4?9::E 9ob Au&ber. eCa&+le E4F DThis would )e jo) Q=F *or that %ear or accounting period.E /ear. eCa&+le 6EE6 DThis would )e the %ear that the jo) started. This is important )ecause it can get $er% con*using *rom %ear to %ear. Some companies just continue to num)er their jo)s %ear a*ter %ear. One compan% I wor2ed with was on jo) num)er 99( a*ter eight %ears.E ,y+e of Debit. eCa&+le ". P1. #. 1 DThis descri)es what t%pe o* instrument was used to charge against the line item.E " I "ode. B6EE DThis then identi*ies the e&act line item that needs to )e charged.E So- does this code D:=F49::94SC4?9::E ma2e a lot more sense6 @ow this wor2s is that di**erent le$els o* emplo%ees ha$e authorit% to commit the compan% Dpurchase SC- PO- L- OE. Superintendents ma% ha$e a MA-::: le$el authorit%- and project manager a M=:-::: le$el authorit% etc. The truth is that generall% e$er% contract must )e appro$ed )% a contract administrator at the main o**ice and onl% certain people are appro$ed to issue purchase orders. O*ten it comes through a central purchasing agent at the main o**ice. The general rule is that an% paper wor2 such as a SC- PO- L- O will not )e processed in an% accounting s%stem without the proper signature appro$al and the correct coding. 0lso- generall% no one is appro$ed to re5uest *unds a)o$e the appro$ed line item unless it is appro$ed and signed )% a $ice president or president. The% want to 2now a)out what we call B)udget )ustsC )e*ore and not a*ter the% happen. So what a)out 'T"3s D'stimate to "inishE and PCO3s DPotential Change OrderE6 The% do not *it into a jo) cost accounting s%stem )ecause the% are onl% estimates. I would suggest that these planning estimates )e used in the +o) Cost reporting s%stem. I do not include them in the accounting num)ers that are gi$en to the accountants )ut the% are included in all management reports. In the corporate )usiness world- a )usiness unit is o*ten as2ed to project *uture costs *or a certain period. It is called a *lash report. That is what we are doing here is projecting *uture costs *or a certain period. This model is a little complicated. I suggest that %ou spent a little time in getting to understand it. 7e will )e )uilding upon it in lesson ( and using it in assignment >.

Self&Chec' (uestions Lesson 8:

=. The Chart o* 0ccounts and the Schedule o* Oalues are essentiall% the same thing6 a. true ). *alse

9. Pro$iding proper storage and care- scheduling deli$eries and ensuring accurate contracts are part o* which superintendent responsi)ilit%6 a. $ariance anal%sis ). la)or cost control c. OPO d. Material control >. a. ). c. d. ?. it: a. ). c. d. The purpose o* OO' is to: e$aluate the least costl% method without sacri*icing 5ualit% or *unction gather in*ormation ensure accurate contracts method o* handling deli$eries The signi*icance o* the committed costs section o* the jo) cost accounting model is that pro$ides e&cellent )udget $ariance data is not signi*icant identi*ies projected costs to *inish and potential )udget pro)lems it is a #C

A. I* a )udget line item code ?9:: had an SOO o* MA:-:::- a SC o* M?:-:::- a 'T" o* MA-:::- a PCO o* M=-::: and the SC had )een paid 9A; project4to4date- what is the 'T and the #S6 a. ). c. d. M?:-::: and M>:-::: MA:-::: and M=:-::: M?F-::: and M=:-::: M?A-::: and M9A-:::

Danswers: =4a- 94d- >4a- ?4c- A4cE

Lesson 8 (ui):
See Blac2)oard- 0ssignments- 1ui//es.

Lesson :: Commercial Cost Controls Introduction:

,e$er- ne$er *orget the main purpose o* )eing in )usiness is to ma2e a pro*it. D,otice that I did not sa% the onl% reason )ut pro*it is the main reason.E Commercial jo) cost accounting is $er% similar to residential jo) cost accounting. In *act I use the e&act same s%stem *or )oth. In this lesson %ou will learn how to plan and project pro*its and how the% are part o* the )usiness plan o* the compan%. <ou will learn how to calculate how much pro*it %ou must )ill *or e$er% month in order to meet the compan%3s e&pectations. <ou will stud% se$eral spreadsheets that will help %ou understand how progress pa%ments are planned and how pro*its are reali/ed. <ou will also stud% how to create and read a jo) cost general ledger and how to use the ledger in the jo) cost model to pro$ide %ou with critical *inancial in*ormation *or )etter management.

Lesson Objectives:
At the end of this lesson you should: =. Learn how pro*it and o$erhead can )e loaded into an SOO )udget. 9. Learn how detailed SOO )udgets need to )e *or the )est jo) cost management. >. Learn what is t%picall% part o* o$erhead and pro*it. ?. Be a)le to descri)e when unit price contracts are used. A. Be a)le to create and e&plain a project cash *low projection wor2sheet. F. Understand the $alue o* collecting historical la)or data. G. Be a)le to calculate monthl% pro*it and o$erhead )illings to meet compan% demands. (. Be a)le to read and interpret a jo) cost general ledger and trans*er the in*ormation to the jo) cost model to re$iew project *inancial per*ormance and identi*% an% pro)lem areas.

How to Proceed:
DGE !ead and re$iew the discussion materials. D9E !ead and re$iew Construction +o)site Management- Chapter =?- pg. >?H4>F(- Chapter ==- 9H>49HG. D=GE0nswer the sel*4chec2 5uestions to e$aluate %our readiness to ta2e 5ui/ (. D=(E7hen %ou *eel that %ou are read%- Ta2e 5ui/ (.

#iscussion

aterials:

Conce+t 1: Managing the 8ottom Line 7 Pro!it It is important to remem)er that through the entire jo) costing process that there is a great underlining e&pectation to )e pro*ita)le and ma2e mone% e$er% month. The home o**ice needs to ma2e mone% to pa% its o$erhead and the project needs to pa% *or its o$erhead including mo)ili/ation and general conditions. The compan% alwa%s has plans *or how much it needs to )ring in *or these o$erhead costs. Consider the *ollowing small compan%- the 0BC Construction Compan%. Two )rothers are partners in the compan%. The% are commercial general contractors. The% ha$e *our other emplo%ees. 0ll other wor2ers are su) contractors. Their home o**ice monthl% costs loo2 li2e this: What +ohn4 ownerJestimator Monthly Amount MFGA: ;escri+tion MF:-::: annual salar% plus

+ames W ownerJproject management +ane4Secretar%Jo**ice manager @enr%4Project Manager Mou7Project Manager #a$id4Superintendent O**iceJwarehouse O**ice supplies TelephoneJ*a&Jmo)ile Truc2sJe5uipment MiscJInsurance etc. 5otal

MFGA: M?A:: MAF9A MAF9A M?HA: M?=FF M9::: M>::: M9::: M9::: K,0-"22

>A; )ene*its MF:-::: annual salar% plus >A; )ene*its M?:-::: annual salar% plus >A; )ene*its MA:-::: annual salar% plus >A; )ene*its MA:-::: annual salar% plus >A; )ene*its M??-::: annual salar% plus >A; )ene*its Lease pa%ment- =A-::: S" Paper- copier etc. Communication costs Compan% owned

The% are committed to M?G- >FF per month regardless or not i* the% )ring an% mone% in. Their pro *orma Dpro*it planE *or the %ear loo2s li2e this: >trategic Plan: K1. million in $usiness this year =:; pro*it margin a$erage on all wor2 completed. This would )e M=-:::-::: annuall% to co$er monthl% o$erhead e&penses DM(>->>> per monthE

I* the% can accomplish this goal the% would ma2e an additional M>A-HFG per month that would go to owner pro*it and ma%)e emplo%ee )onuses. I* these num)er held true then total home o**ice costs would )e MAF(->H9 less total pro*it income o* M=-:::-::: so the additional pro*it o* M?>=-F:H could )e earned. DIt should )e mentioned that the M?G->FF or MAF(->H9 annuali/ed would )e the )rea2e$en point.E 4actical Plan: So1 how do we !et there9 The goal on a monthl% )asis is to earn M(>->>> per month. It is determined that this amount must come *rom each project manager. There are three project managers so it is di$ided e$enl% with each responsi)le *or =J>. So =J> or .>>; o* M(>->>> is M9G-?HH per month. Since %ou are a project manager %ou must )ring home to the compan% M9G-?HH. This also means that i* %our a$erage project has a =:; pro*it margin in it then e$er% month %ou must complete and )ill *or M9G?-HH(. This ma% come *rom one project or *rom se$eral

projects. Pro*it does not *low so e$enl%. 0t the minimum- how much must %ou )ill *or e$er% month to just )rea2 e$en6

CI! K,0-"22 is the home o!!ice $rea( e=en amount- times $y )"" !or your share / K13-2". would $e your amount) I! you can maintain a 1.1 margin then you must $ill K132-".0 +er month)D So what does all this mean when it comes to scheduling and stud%ing %our schedule o* $alues6 <ou ha$e go to *ind a wa% to get the wor2 done and )ill *or the wor2 done so that %our compan% strategic goals can )e met. I* those goals are not met %ou had )etter )elie$e that one o* the )rothers would want to *ind out wh%. Conce+t : Planning Mour Project Pro!ita$ility Let3s suppose that %ou are assigned a project that has alread% )een going *or a month. <ou show up to the jo) trailer and *ind that the SOO has )een set )ut no one else has an% idea as to where the project is *inanciall%. 0ll that there is is a )ig pile o* contracts- purchase orders- and la)or time records in an in4)as2et. So let3s )egin. <ou *ind the *ollowing: 5ob ,a"e: Su)wa% Sandwiches W Le&ington- Keneral 0I0 =:= Lump Sum Contract *or M?9=-F:=. D7e o*ten call this the prime contract or PC.E 5ob ,u"ber: ::A49XXX Start date: 9J:9J9XXX Dnotice to proceed dateE Project Schedule: =9: calendar da%s D? monthsE SO:: Project Totals M?9=-F:= = =9::: 9 =(::: > 9>::: ? =AG:: A F::: F A(::: G =F::: ( 9?::: H ?>9:: =: =>>:: == >?H:: =9 >?::: => (::: =? >A:: =A FG::: =F ?A::: #esired Profit ar!in: =:;- or M?9-F:=- cost loaded e$enl% in e$er% #i$ision.

Billin! Schedule: <ou e&pect to complete each di$ision 9A; each month *or ? months. DTo 2eep this e&ample simple we are doing e5ual percentage )illing each month *or each di$ision. This will not usuall% )e the case.E 0n e&ample is that #i$ision =L Keneral !e5uirements has a SOO o* M=9-:::. <ou will )ill 9A; DM>-:::E o* M=9-::: e$er% month *or ? months. Profit Loadin!: The pro*it is e$enl% distri)uted among the =F #i$isions. This means that #i$ision =- M=9-:::- that =:; o* that amount is a pro*it o* M=-9::. The pro*it will )e reali/ed )% )illing the jo) ? times at the end o* each o* the ? months- thus the 9A;. So- month =- M=-9:: & .9A T M>::- month 9- M=-9:: &.9ATM>::- month >- M=-9:: &.9ATM>::- month ?- M=-9:: &.9ATM>::. Thus the total pro*it *or the *our months *rom #i$ision = is M=-9::. 0re %ou lost %et6 To )etter help %ou understand I ha$e gone ahead and put this all together in a spreadsheet. >ee !ile Lesson ; Subway Project Projections and 5ob Cost odel./ls

/ou would +re+are such an analysis to hel+ you +re+are to control the +ro(ect2 0*ter %ou ha$e loo2ed at the Su)wa% *ile %ou will notice the *ollowing in*ormation: =. <our monthl% )illing should )e M=:A-?::- thus %our monthl% pro*it )illing D=:;E will )e M=:-A?:. This will go against %our monthl% 5uota as we discussed in concept one. 9. The Pro*it Projection Schedule clearl% identi*ies e$er% line item D#i$isionE so that %ou can determine i* %ou are on schedule to meet %our pro*it goals. !emem)er the sa%ing- B7hen we deal in generalities we generall% *ail )ut when we deal in speci*ics we usuall% succeed.C This allows us to understand- manage and communicate pro*it projections *or e$er% project. Conce+t ": 5he @o$ Cost ?eneral Ledger and @o$ Cost Model !emem)er our +o) Cost Model *rom Lesson G6 7e are going to ta2e things just a step *urther. The Keneral Ledger is simpl% a chronological record o* costs that are )eing charged to the SOO Dschedule o* $alues account num)ersE. !emem)er that monies can )e spent on a project *our di**erent wa%sL SC4su) contract- PO4purchase order- L4la)or and O4other. Let3s go )ac2 to that )ig pile o* contracts- purchase orders- and la)or time records in an in4)as2et. <ou must now per*orm a transaction anal%sis to determine where %ou are with the )udget *or this *irst month that %ou ha$e missed. 0lmost thin2 o* this as a game. <ou start going through the pile and entering them into the Keneral Ledger. @ere is how it loo2s: #ate 94949XXX 94>49XXX 94>49XXX 94F49XXX #e)it T%pe PC PO PO SC CSI Code Prime = = 9 Compan% Code :A49XXX4PC= :A49XXX4PO=4= :A49XXX4PO94= :A49XXX4SC=49 0mount M?9=-F:= MF:: MA?A M=F-:::

94(49XXX 94H49XXX 94=:49XXX 94==49XXX 94=949XXX

SC SC SC PO PCO

> ? F F F

:A49XXX4SC94> :A49XXX4SC>4? :A49XXX4SC?4F :A49XXX4PO>4F :A49XXX4PCO=4F

M99-::: M=?-G:: MAA-::: M?-A:: M=->::

7e won3t show the entire month- )ut what is this telling us2 (0y the way the 6GGG &eans any year in 6EEE!6555 so this will not be ti&e!dated &aterial)2 ,otice we ha$e a signed prime contract DPCE. It is also mar2ed = *or num)er one. 7e ha$e three purchase orders la)eled =4> so the% don3t get mi&ed up. The PO3s go against di$ision = and F. "our su) contracts ha$e )een signed in site wor2- concrete- masonr% and woods D*ramingE. So it loo2s li2e the initial su) contractors are o** and going. <ou will )e starting to 2eep a log o* all PC- PO- SC and PCO and others so that %ou can *ind them 5uic2l% and trac2 them judiciousl%. D7hen we get into the so*tware- %ou will learn how Prolog which means- %ou guessed it- pro*essional logging o* documents- does this automaticall%E. @ere is what the +o) Cost Model would loo2 li2e: >ee !ile Lesson ; Subway Project Projections and 5ob Cost odel./ls

Fro& the 5 entries in the (ob %eneral led%er that are +laced in the 9ob "ost Model we be%in to learn so&e interestin% thin%s2 Di)isions 4!B are in %ood sha+e but we ha)e a bust in F. fra&in%2 'ith one P1 for HB.IEEand a P"1 esti&ated at H4.<EE we are already co&&itted to a ne%ati)e H6.:EE2 'e can %o disco)er why and see what we can do about it2 ,his eCa&+le be%ins to show you how to use the -eneral #ed%er and the 9ob "ost Model with a si&+le s+readsheet2 Ho+efully these conce+ts will hel+ you better understand how to effecti)ely track and control any +ro(ect bud%et2

Self&Chec' (uestions Lesson ;:

=. a. ). c. d. 9. a. ). >. a. ). c. d. 'stimating o* actual progress will )e more accurate )% using a: )road4scope SOO a detailed SOO a regular )udget a SUO wide )od% model Owners ma% assign =4A; o* the contract *or punch list items. true *alse !eporting la)or costs should )e narrow enough to: account *or la)or hours that come *rom a general la)or pool )e charged to a SOO account *or speci*ic la)or hours to speci*ic di$ision SOO3s not )e a)le to account them to an% speci*ic di$ision SOO3s

?. I* %our compan% strategic plan was to )ill MA million ne&t %ear- and %our a$erage pro*it margin goal was G.:; and there were > project managers o* which %ou were one o* those- i* the

responsi)ilit% were e$enl% shared among the project managers- how much must %ou )ill each month indi$iduall% to meet %our goal6 a. (.G; ). >A:-::: c. ==F-FFG d. =GA-::: A. a. ). c. d. The *ormula *or the committed $ariance is: SCSPOSLSOS'T"SPCOT'T SOO4'TTO0! #S- #L- PS SOO4'TSPCOT'T"

Danswers: =4)- 94a- >4c- ?4c- A4)E

Lesson ; (ui):
See Blac2)oard- 0ssignments- 1ui//es.

Lesson 6: Commercial >u$mittals- >am+les and >ho+ ;rawings Introduction:

@ow is it that %ou can go to Los 0ngeles and $isit a Mc#onalds and get a Big Mac then get on a plane and *l% to 7ashington #. C. and go to another Mc#onalds *or another Big Mac and ha$e almost the e&act same e&perience6 The *ood loo2s and tastes the same- and the *acilit% loo2s and B*eelsC e&actl% the same. This B)randingC e&perience at least *rom the *acilit% side is used )% national chains is made possi)le through the use o* su)mittals- samples and shop drawings. Su)mittals- samples and shop drawings are used primaril% in commercial and industrial construction )ut ma% )e used in residential i* an architectural *irm is used to manage the design and control the what t%pes o* materials are )eing used *or the project.

Lesson Objectives:
At the end of this lesson you should: =. Understand where to *ind su)mittal re5uirements. 9. .now what a su)mittal log is and how to use it. >. Understand how su)mittals can assist the contractor in construction. ?. Understand the su)mittal process and how su)mittals are appro$ed and stamped. A. Understand how su)mittals a**ect the construction schedule. F. .now the di**erent t%pes o* su)mittals and their purpose.

How to Proceed:
D(E !ead and re$iew the discussion materials. D9E !ead and re$iew Construction +o)site Management- Chapter >- pg. AA4G?. D=HE0nswer the sel*4chec2 5uestions to e$aluate %our readiness to ta2e 5ui/ H. D9:E7hen %ou *eel that %ou are read%- Ta2e 5ui/ H.

#iscussion

aterials:

Identi*%ing- processessing and o)taining appro$als o* su)mittals is a $er% important and time4 consuming process. It is $er% important to understand that su)mittals are re5uired )% the architect or engineer )ut are actuall% prepared )% the contractor- su) contractor- supplier or *a)ricator. 0n e&ample would )e the steel erection pac2age *or a new retail center. The general steel design is completed )% an engineer and can )e $iewed in the structural section o* the drawings and speci*ications. 0 steel *a)ricator and installer will )id on the steel as a su)contractor to the general contractor. The success*ul steel su)contractor will then negotiate and sign a su)contract. The general contractor and su) contractor will then re$iew what speci*ic re5uirements are stated in primaril% *our areas as pertaining to su)mittals. "irst and second is the general and supplementar% conditions sections that e&plain the general administration o* su)mittals. Third- is the =>:: section o* the general re5uirements. "ourth- is part = DgeneralE o* the speci*ic section dealing with the scope o* wor2 *or the su) contractor. In our case it would )e a di$ision A section. 7ithin Part = it will speci*icall% identi*% what su)mittals are re5uired. >o now what? It is the res+onsi$ility o! the su$ contractor to ta(e the general engineers design and create actual !a$rication drawings Cor sho+ drawingsD) >o what is the di!!erence? 5he engineerFs drawings +ro=ide si&ing- connections and weight $earing directions and the sho+ drawings +ro=ide s+eci!ic details o! how the steel +ac(age will $e manu!actured) *ow here is the challenge) CBe!er to the su$mittal +rocess !low chart on +age 23 o! your te't)D 5he sho+ drawings then mo=e through the a++ro=al +rocess to the

general contractor- architect- and then the engineer) I! the drawings are a++ro=ed they are generally stam+ed 7 no e'ce+tions ta(en) C>ee stam+ on +age 22)D 5hen the sho+ drawings are sent $ac( through the +rocess) 5hen and only then can the su$ contractor $egin the !a$rication o! the steel +ac(age) 5here are two im+ortant cautions) First- i! !a$rication $egins $e!ore the sho+s are a++ro=ed and changes are made- then the su$ contractor and may$e the general contractor may $e lia$le !or any e'+ended costs) >econd- this +rocess can ta(e time) LetEs su++ose that in wee( three o! your schedule that you +lan to start setting steel columns on +ier concrete !ootings) Mou ha=e three wee(s to get the sho+ drawing com+leted- then get them a++ro=ed- then get the steel !a$ricated- and then deli=ered to the jo$ site and ready to +ut into +lace) Is that a +ro$lem? MesN It is almost im+ossi$le) Mou must start early and $e =ery e!!icient) To complicate matters- on a large project %ou ma% ha$e hundreds o* su)mittals to get appro$ed. The onl% wa% to accomplish this is to log the su)mittals and ha$e someone Dwhich is usuall% a newl% graduated CM student called a project engineerE to trac2 the progress o* each su)mittal. O)$iousl% it is $er% important to )egin earl% and to wor2 earnestl% to identi*%- process and trac2 su)mittals. One last note a)out su)mittals. The 0J' Darchitect and engineerE o*ten speci*% e5uipment that is either outdated- changed model num)ers or is no longer )eing manu*actured. The contractor must identi*% those items earl% so that the 0J' can *ind an alternati$e. O*ten times the contractor will )e as2ed to su)mit a possi)le alternati$e. There is not a lot o* reading *or this chapter )ut the principles are $er% important and sometimes can get a little o$erwhelming.

Self&Chec' (uestions Lesson <:

=. Su)mittal in*ormation is *ound in section IIIIIIIIIIIL a. =::: o* general re5uirements ). =>:: o* general re5uirements c. =::: o* general conditions d. =G:: o* general conditions 0 su)mittal log is used to: a. correct inaccurate drawings ). trac2 actual progress o* the su)mittal c. record su)mittal signatures d. record samples recei$ed Product data su)mittal is use*ul to: a. identi*% si/e and ph%sical characteristics o* a piece o* e5uipment ). located where e5uipment goes in the )uilding c. understand wh% the e5uipment is )eing used )% the owner d. e&plain how the su)mittal process wor2s with the 0J'

9.

>.

?. It is common to di$ide su)mittals into pac2ages i.e. rein*orcing steel- in order to e&pedite the schedule. a) true ). *alse

3) >u$mittals can hel+ the contractor to: a. ma2e *riends with the architect )) )ecome aware o* means and methods o* installing certain materials- assem)lies and s%stems c. Create new ideas that can )e incorporated )% the architect d. +usti*% change orders Danswers: =4)- 94)- >4a- ?4a- A4)E

Lesson < (ui):

See Blac2)oard- 0ssignments- 1ui//es.

Lesson 1.: Becord <ee+ing at the @o$site Introduction:

5his lesson is di=ided into two +arts) First is ca+turing im+ortant in!ormation at the jo$site) 5he second is $eing a$le to communicate clearly and concisely- $oth in written !orm and =er$ally) 5his lesson descri$es re+ort ty+es and content- cost documentationcorres+ondence- contractual re%uirement documentation- and meeting minutes) !ecording and actuall% writing a histor% o* the project as it un*olds is usuall% something that most project managers and superintendents don3t li2e to do- thus it doesn3t get done. 7hen pro)lems or the need *or clari*ications occur there is no documentation that supports %our position. Thus %ou spend more time sol$ing pro)lems when it could ha$e )een so eas% to record an acti$it% or e$ent. @ope*ull% %ou will come to disco$er that record 2eeping at the jo)site is a 2e% total 5ualit% management DT1ME acti$it% that is well worth the e**ort to implement.

Lesson Objectives:
At the end of this lesson you should: =. .now how to capture project in*ormation. 9. Learn what dail% reports should include. >. Understand the 2e% elements to written communication. ?. Understand the 2e% elements to success*ul meetings. A. Be a)le to descri)e the di**erent logs used at the jo) site to record important in*ormation. F. Understand how to record and trac2 costs. G. Understand the important elements o* contractual re5uirement documents.

How to Proceed:
DHE !ead and re$iew the discussion materials. D9E !ead and re$iew Construction +o)site Management- Chapter ?- pg. GA4===. D9=E0nswer the sel*4chec2 5uestions to e$aluate %our readiness to ta2e 5ui/ =:. D99E7hen %ou *eel that %ou are read%- Ta2e 5ui/ =:.

#iscussion

aterials:

5he reading identi!ies !i=e general areas !or jo$site record (ee+ing) I will +ro=ide some general comment a$out the !i=e areas) Concept =: !eport T%pes and Content '$er% project is di**erent when it comes to capturing and reporting in*ormation. Prolog and other programs are help*ul in writing dail% reports. The challenge is to ta2e time e$er% da% to record dail% acti$ities. Since I am *rom the Bold schoolC I pre*er a )ound )oo2. I* it is )oundthen it is a more relia)le record and seems to ha$e more $alidit% in court than a computer word processing program or a )oo2 that has remo$a)le pages. I can ta2e the jo) record with me and write in it an% time that I wish. It is m% jo) journal. I can also 2eep it hidden awa% *rom those who I don3t wish to see it. I reall% li2e ta2ing monthl% aerial photos o* projects *or two reasons. "irst photos don3t lie. I ha$e learned a lot a)out a project )% seeing its monthl% progress. The photos ha$e )een helped in scheduling. Second- the photos are help*ul in pu)lic relations with the client Di* the% are positi$eE- and show e$idence o* progress. O)$iousl% digital photos can now )e emailed to an%

customer an% where in the world. One step *urther is to set up a digital camera on site that ta2es a picture e$er% minute. #eseret)oo2.com has such a camera showing the construction o* the ,au$oo Temple. One last noteL I would alwa%s $ideo inspections- e$idence o* wor2 completed *or progress pa%ments- an% t%pe o* pro)lems etc. Oideo shows show much more than still pictures. The )est method with current technolog% is to $ideotape and )e a)le to capture still pictures *rom the $ideo. It was not uncommon to ha$e ten to *i*teen hours o* $ideo a month on a project. This is a lesson that I learned *rom OS@0 inspectors. The% alwa%s carr% a $ideo camera. 0 picture is worth a =-::: words. 0 $ideotape can )e worth a =-:::-::: words and dollars. Care*ull% stud% this section o* the reading. It has good e&amples. I ha$e used all o* the e&amples listed. Concept 9: Cost #ocumentation Our jo) cost model D+CME ade5uatel% captures the *ollowing in*ormation. a) $) c) d) e) Ca+turing costs including committed costs to transmit in!ormation to the com+anyFs accounting system !or dis$ursement o! !unds cost accumulated in!ormation to control the +rojectFs costs costs !or La$or 7 sel! +er!ormed Coats !or material 7 $ill o! material- +urchase orders Costs !or e%ui+ment 7 contractorFs owned e%ui+ment- rental e%ui+ment

I* %ou do not capture this in*ormation who will6 7e ha$e pro)a)l% said enough a)out the jo) cost model. Concept >: Correspondence It is not uncommon to send >: transmittals per da% on a large project. This would almost )e impossi)le using con$entional letter writing methods. Prolog and similar programs pro$ide a $er% 5uic2 and eas% wa% to per*orm this tas2. The tric2 is to pro$ide simple- to4the4point words that get the message across 5uic2l%. Consider the *ollowing si& interrogator% 7ords: YWho?

YWhat? YWhen? YWhere? YWhy? Y#ow?

<our written communication should alwa%s answer these si& 5uestions. Suppose that %ou are sending a transmittalJ!"I to a su) contractor to pro$ide pricing *or a PCO. It ma% loo2 li2e this: #ate: +anuar% A- 9XXX D7@',E To: Kreene Concrete- +osh Kreene D7@OE D0ddressE D7@'!'E

Project: 'mer% @igh School D7@'!'E

!':

!e5uest to )id potential change order Q? D7@0TE

#ear +osh D7@OE- The owner has re5uested D!"I Q=9E D7@0TE an estimate *or an appro&imate =9: L" o* cur)Jgutter to e&pand the southwest par2ing lot D7@<E. #rawings are a$aila)le at the jo) trailer on site. Please pro$ide an estimate within A da%s D7@',E o* the date o* this transmittal in writing. D@O7E "rom: ,ame- Project Manager D7@OE D0ddressE D7@'!'E @ere are se$eral ideas to help %ou in %our construction communication. Y>chedule a set time to do written communication

Y<ee+ the writing sim+le using the 2 interrogatory words Y>end co+ies to necessary +eo+le and to the jo$ !ile YAs(: ;o you really want to send this corres+ondence?
Written Communication should: #el+ eliminate misunderstandings

Y#el+ clari!y your thoughts Y#el+ +reser=e CdocumentD acti=ities and actions

Concept ?: Contractual !e5uirement #ocumentation ?eneral conditions- su++lemental conditions and general re%uirements will identi!y s+eci!ic documents and corres+ondence that will $e re%uired to com+lete the contract) 5he reading ade%uately identi!ies these) 5y+ically section 10.. o! the general re%uirements identi!ies s+eci!ically the re%uired documents) We will tal( more a$out this in !uture lessons) #ere is the im+ortant thing to learn) Mou must identi!y these re%uirements early in the +roject and $egin to com+lete them early) I once held a K3..-... retention chec( on a com+any !or almost !our months $ecause the com+any could not com+lete their I+erations and Maintenance Manuals and Warranties as re%uired in the +roject manual) It was their total +ro!it +lus +ayment to numerous su$s) Concept A: Meeting Minutes 5he !ollowing is a good chec(list !or holding an e!!ecti=e construction meeting) It is always a good idea to determine who should attend the meeting and how much the meeting will really cost- gi=en the a++ro'imate salaries o! each attendee and any lost o++ortunities that they will ha=e due to $eing at the meeting) Y5itle

YParties in attendance YMinutes !rom +re=ious meeting YProject +rogress Y>u$mittals YChange orders YIld $usiness Y*ew $usiness YMeeting adjourned- ne't meeting YBecord o! action items YImmediate distri$ution o! minutes
,otice that the last two items are pro)a)l% the most important. These items allow *or the action o* the meeting to mo$e *orward. The% also remind participants o* actions ta2en and decisions made. These are $er% timel% and important concepts that will )e o* great $alue to %ou as a project manager or superintendent )ecause %ou will spend so much o* %ou da% per*orming these tas2s. I hope %ou don3t ta2e these Bhow toC concepts lightl%.

Self&Chec' (uestions Lesson $=:

=. I* %ou had a choice- would %ou use still pictures or $ideotape to record e$ents on the jo) site6 a. still pictures ). $ideotape 9. The si& interrogator% words are: a. who- wh%- when- the%- them- date ). name- whom- project- re*erence- date- description c. hi- )%e- re*erence- )od%- date- purpose

d. >. a. ). c. d.

none o* the a)o$e 7here would %ou t%picall% *ind records o* con$ersations6 la)or reports time4lapse photograph% telephone logs progress pa%ment re5uests

?. #ail% trac2ing o* la)or- material- and e5uipment is a good practice *or )oth su)contractors and general contractors.. a. true ). *alse A. 0 good practice would )e to monthl% not pa% su)s and suppliers unless their contractual re5uirement documentation is up to date *or the period that the% are as2ing to )e paid *or. D'&ample: 0s4)uilt drawings are up4to4date.E a. true ). *alse Danswers: =4)- 94d- >4c- ?4a- A4aE

Lesson $= (ui):
See Blac2)oard- 0ssignments- 1ui//es.

Lesson 11: @o$site Layout and Producti=ity Introduction:

It seems so o)$ious and eas% to do )ut in realit% jo)site la%out and planning *or project producti$it% is poorl% practiced e&cept on large projects. This is an area where project managers and superintendents can ha$e a tremendous impact upon the o$erall success o* a project. This is what construction managers are )eing paid *or. Their jo) is to prepare the jo)site so that the logistics o* the project wor2 well together.

Lesson Objectives:
At the end of this lesson you should: =. Understand the components o* a jo)site la%out plan. 9. Be a)le to create a jo)site la%out. >. Understand important *actors in selecting mo$ing e5uipment. ?. Identi*% la)or sa$ing la%out principles. A. Learn *rom e&amples o* deli$ering materials close to installation points. F. Learn )asic principles o* la)or producti$it%. G. Learn how to create a jo)site sector map and schedule. (. Understand how to coordinate the deli$er% and installation o* the project e5uipment.

How to Proceed:
D=:E!ead and re$iew the discussion materials. D9E !ead and re$iew Construction +o)site Management- Chapter A- pg. ==>4=?(. D9>E0nswer the sel*4chec2 5uestions to e$aluate %our readiness to ta2e 5ui/ ==. D9?E7hen %ou *eel that %ou are read%- Ta2e 5ui/ ==.

#iscussion

aterials:

In addition to the reading there are three areas that %ou should consider when creating a jo)site la%out and planning to ma&imi/e producti$it%. The% are three )asic concepts that need to )e addressed. The% are: la)or producti$it%- contractor and owner coordination o* e5uipment and creating a jo)site sector map and schedule. Conce+t 1: 8asic Conce+ts o! La$or Producti=ity 0s %ou )egin planning *or jo)site la%out and producti$it% there are *i$e *undamental principles that %ou should understand. "irst is that t%picall% construction la)or producti$it% is di$ided into three areas. The *irst area is la)or actuall% wor2ing at what is called the wor2 *ace. @ere la)or is actuall% putting materials into place to )uild the actual structure Dwor2*aceE. Studies ha$e shown that this onl% constitutes a)out >>; o* la)or time. Second- la)or spends a)out >>; o* their time per*orming contri)utor% wor2. This means wal2ing or tra$eling to retrie$e materials or e5uipment. The third area is that la)or spends the other third o* their time doing what is classi*ied as non4producti$e wor2. This is considered time that is either not at the wor2 *ace or contri)utor%.

The second area is height. 0s a rule o* thum)- once la)or is wor2ing o** the ground- their normal producti$it% is cut )% A:;. This is due to re5uired sca**olding- sa*et% re5uirements and getting materials to the needed spot to )e put into place. The third area is weather. The human )od% is $er% com*orta)le at G: to GA degrees ". and a)out A:; humidit%- and out o* direct sun light. 7ell how o*ten does that happen6 !arel%. Cold and heat can slow down wor2er producti$it% along with humidit%- rain snow and *ree/ing temperatures. The *ourth area is e5uipment. La)or needs the right e5uipment to per*orm certain tas2s. The% need to 2now how to use the e5uipment and )e trained in the sa*e use o* the e5uipment. The *i*th area is correct instructions and training. La)or needs to understand the )est methods to do the wor2 and )e trained in those methods. Picture this: Three wor2ers are wor2ing o** o* ladders installing so**it and *ascia appro&imatel% =9 *eet o** the ground. The ground is une$en and the ladders are not settling properl% in the dirt. It is >9 degrees- o$ercast and snowing lightl%. The wind is )lowing out o* the north at a)out =: 2nots thus the wind chill *actor is a)out =A degrees colder. The material was dumped more than =:: %ards awa% *rom where the men are wor2ing and the onl% wa% to get the material to the wor2 *ace is to load it )% hand- piece )% piece in the )ac2 o* a truc2 and dri$e it o$er to the jo) *ace. The materials are then unloaded on the ground )ecause the truc2 has to go )ac2 *or more. Other la)or pic2 up the material o** the ground to )e cut to si/e and then carried up the ladder to )e put into place. One wor2er is dri$ing- loading and unloading the truc2. One wor2er is cutting the material. The other wor2er is measuring and waiting *or the other wor2er to cut the material. The two wor2ers then mo$e their ladders into place and clim) the ladder and attach the so**it and *ascia )% hand nailing it. 7hat3s wrong with this picture6 Materials are too *ar *rom the wor2 *ace Kround is une$en to wor2 on Keneral lac2 o* the proper e5uipment- ladders $s. sca**olding- nailing tools- mo$ing e5uipment etc. Some lac2 o* la)or training Keneral lac2 o* pre4planning to per*orm the tas2 I* the weather is too poor- is there other tas2s that la)or could mo$e to in order to )e more producti$e now until the weather impro$es

@ere is the decision process that the project manager or superintendent has to ma2e. Is it worth the e&pense or return on in$estment D!OIE to purchase or rent the e5uipment $erses the current methods6 Is it worth it to ta2e the time to create a jo) acti$it% sheet that de*ines instructions and directions- material lists- tool lists- allotted la)or hours- )est practices techni5ues to )e used and sa*et% items needed etc.6 On larger projects and repetiti$e tas2s it will )e worth it. "or smallone time tas2s it pro)a)l% won3t.

Conce+t : Contractor and Iwner Coordination o! 4%ui+ment In a pre$ious lesson we tal2ed a)out how the su)mittals- samples- product data sheets and shop drawings can help the contractor identi*% what e5uipment will )e deli$ered to the site and how and when the e5uipment can )e installed. Planning *or e5uipment is co$ered well in the reading. To ta2e the reading one more step- we need to discuss the concept that the contractor nearl% alwa%s has responsi)ilit% *or the deli$er% o* the e5uipment- unloading the e5uipment- storing the e5uipment- putting the e5uipment in place and properl% installing and connecting the e5uipment *or operation. The contract documents should clari*% those responsi)ilities. '5uipment can come under *our di**erent scenarios. The% are: Contractor pro$ide- Contractor install Contractor pro$ide- Owner install Owner pro$ide- Contractor install Owner pro$ide- Owner install

0 schedule o* e5uipment will help to identi*% which scenario each piece o* e5uipment *alls into. Conce+t ": Creating a @o$site >ector Ma+ and >chedule The old adage o* Beating an elephant a )it at a timeC is what sector mapping is all a)out. The process is *airl% simple. It deal with ta2ing the site plan o* the project and di$iding it into sectors. This is the mapping portion o* the e&ercise. 'ach sector is la)eled. 0*ter re$iewing the project schedule- a sector schedule is prepared that e&plains what is happening in each sector t%picall% e$er% month. Consider the *ollowing sector map:

sector ,7 ,' =.= 1 =.9 =.? =.> S' S7 'est ,

Aorth

" Building 3
+o) Trailer @aul roads

=ast

: 'gress outh >treet

1ueuing 0rea

Ingress

This jo)site has )een di$ided into H sectors. Sector = in the top le*t corner shows how the sector can )een su)di$ided. "or e&ample the north east corner o* sector = could simple )e called sector = ,'. I* directions are a little di**icult that ,' 5uadrant could )e simpl% re*erred to as =.9. The jo) trailer is located in ( ,' or (.9. <ou ma% notice that sectors ? and G ma% )e used *or *ill areas and material la%down areas. This is a great tool to help in jo)site la%out and planning *or increased jo)site producti$it%.

Self&Chec' (uestions Lesson $$:

=. a. ). c. d. @aul roads *all into which aspect o* a la%out plan6 jo)site access material handling wor2er transportation jo)site securit%

9. 7hich o* the *ollowing are not one o* the *actors in selecting optimum e5uipment *or mo$ing material: a. a$aila)ilit% ). protecting storage material c. access to the point o* use d. sa*et% >. a. ). c. d. 0 concrete truc2 has the *ollowing load capacit%- truc2 length and $ertical clearance: H C<- ?: *t.- =93 99 pallets- (A *t.- =>3 ( C<- 9G *t.- =>3 =A C<- F>*t.- H3HC

?. 7hen it comes to la)or producti$it%- the reading states that the per minute cost can get $er% e&pensi$e during: a. tra$el on the site ). wor2*ace wor2 c. a the point o* deli$er% d. with certain $ehicle tra**ic patterns A. a. ). c. d. 7hich one o* the *ollowing are not one o* the eight steps in organi/ing a jo)site la%out6 data on the si/e o* larger li*ting loads DmaterialsE capacit% charts *or cranes- li*ting and con$e%ance e5uipment su) contractor storage needs underground and o$erhead utilit% locations

Danswers: =4a- 94)- >4a- ?4a- A4eE

Lesson $$ (ui):
See Blac2)oard- 0ssignments- 1ui//es.

Lesson 1 : Com+uteri&ed Project Management Introduction:

There is a large $ariet% o* new computer tools *or the construction project management industr%. Most o* these tools are standard practices that ha$e )een de$eloped in the past )ut are now mo$ed to we) )ased applications. This we) )ased application approach has signi*icantl% impro$ed project team communication and colla)oration. Because o* the acceleration o* communication and colla)oration- projects are getting done 5uic2er and with a higher degree o* satis*action.

Lesson Objectives:
At the end of this lesson you should: =. Be a)le to descri)e three di**erent project management so*tware de$elopers and their solution pac2ages and their *unction. 9. Learn how di**erent so*tware pac2ages are used in construction project management. >. Learn what to loo2 *or when selecting construction project management so*tware. ?. Learn how to )egin learning Prolog $ersion F.:. A. Learn how digital cameras can )e used at the jo) site.

How to Proceed:
D==E!ead and re$iew the discussion materials. D9E !ead and re$iew- Construction +o)site Management- Chapter =9- pg. 9HH4>9>. D>E 0nswer the sel*4chec2 5uestions to e$aluate %our readiness to ta2e 5ui/ =9. D?E 7hen %ou *eel that %ou are read%- Ta2e 5ui/ =9.

#iscussion

aterials:

There are new technologies emerging e$er% da% in construction project management. Chapter =9 in the te&t )oo2 is dated on what new application so*tware and hardware is now a$aila)le on the mar2et )ut the )asic concepts are still the same. Se$eral new applications are now a$aila)le on the mar2et that are we) )ased with enhanced document and in*ormation e&change capa)ilities. I would li2e %ou to )e e&posed to three di**erent applications that are now a$aila)le. The% are Bu//saw- Merdian Project S%stems DMPSE- and Buildtopia. Bu//saw comes *rom the standpoint o* a we) )ased tool that )rings all o* the project team pla%ers together electronicall%. MPS has a similar product li2e Bu//saw Dcalled ProjectTal2E )ut their main product is Prolog Manager F.: which we will )e learning in this course. The third is Buildtopia which is a com)ination o* )oth t%pes o* programs that is used in residential construction. '&pedition is another program that *unctions similar to Prolog Manager and is designed to inter*ace with P>. Un*ortunatel% the program has not recei$ed $er% *a$ora)le re$iews and has )een *ound di**icult to learn. "or that reason B<U has chosen to teach their students Prolog Manager. The selection o* so*tware solutions is di**icult )ecause there are so man% s%stems and so*tware pac2ages to chose *rom. There are $er% *ew solutions that will per*orm all o* the *unctions needed *or project management. Be war% o* those Btotal enterpriseC s%stems that claim that the% can do it all. Most o* them ha$e )uilt their )usiness in one area such as MPS and Prolog Manager which is the mar2et leader. The% then tr% to )undle other total enterprise products such

as scheduling. Their Prolog Manager is good )ut their scheduling is so4so. Same with Prima$era. P> is the )est program *or scheduling )ut their other solutions li2e '&pedition do not wor2 that well. This is wh% companies still use a $ariet% o* so*tware solutions. The )est practice in selecting so*tware is to identi*% the needs o* the compan% and then *ind the solutions that )est *it those needs. 1) 8u&&saw

Bu//saw D www.)u//saw.comE was created )% a past B<U CM graduate Larr% 7ares. Bu//saw was recentl% purchased )% 0utodes2. Their we) )ased tool called ProjectPoint allows *or real time sharing o* documents to enhance communication and team wor2. The Autodes(O ProjectPointP application pro$ides design- construction- and propert% management teams a )etter wa% to colla)orate on projects- centrali/e all project documents and communications in one secure online location and easil% control the access *or each mem)er o* %our project team- and share document updates and mar2ups in real time.

Autodes( ProjectPoint is a colla)oration ser$ice that allows %ou to store and share %our project documents online and then access them *rom an%where %ou ha$e an internet connection 44 thusenhancing team producti$it% and reducing costs. ProjectPoint deli$ers an online wor2 en$ironment that seamlessl% integrates a secure project hosting ser$ice with C0#4related so*tware- tools- and ser$ices. This power*ul ser$ice allows %ou to connect with %our project team regardless o* organi/ational or geographical )oundaries. @ere is a general outline o* their product and ser$ice: Centrali&ed Inline Project Management o Manage multiple projects online o Maintain a uni*ied project director% Krant tiered access permissions Bo$ust 5eam Colla$oration
o

o o o o

Oiew V mar2up C0# drawings Oiew V mar2up MicroStation drawings and other *ile *ormats 0utomaticall% trac2 *ile $ersions 'mail change noti*ications

o Maintain *ile4le$el threaded discussions 4asy to Install Q Ase o 0utomatic we)4)ased installation V updates o MS '&plorerTM4li2e inter*ace

#irect U!L addressing >tandards7$ased J I+en >ystem o Browser4)ased o Support *or all *ile t%pes o Integrated with 0utoC0#
o

Xre* support Ad=anced Administration Q Be+orting o Statistics

o o #etailed 0cti$it% Logs #igh A=aila$ility J >ecurity Architecture o SSL 4 Secure Soc2ets La%er transactions o "ault tolerant 'MC Tier A s%stem wJ automatic nightl% )ac2ups o

@ighl% secure cage en$ironment

!ead the *ollowing case stud%: 8u&&saw <ee+s Ba+idly 4=ol=ing Project on 5rac( 4he Situation The recentl% merged Chicago o**ice o* @70JKensler is an internationall% acclaimed architecture- planning- and restoration *irm. The% )egan the planning and design phase o* the N,orth 0$enue CollectionN project last +anuar% 9:::. 0 mi&ed4use project located on the near4 north side o* Chicago- the eight4stor% )uilding *eatures two le$els o* high45ualit% retail space- a multile$el health clu)- *our *loors o* o**ice space- and a >A:4car par2ing structure. Because o* the comple&ities o* the project- !and% #olph- CIO o* @70JKensler- saw an opportunit% to utili/e Bu//sawZ ser$ices. 4he Challen!e In the design phase o* the project- e&plains Mr. #olph- Nthe client s needs were changing le*t and right.N The logistics o* sharing plans- drawings- and in*ormation with more than two do/en team mem)ers limited the a)ilit% to react 5uic2l%. "or e&ample- the plans *or the upper portion o* the )uilding- initiall% en$isioned as an e&tended4sta% hotel and then as a short4sta% esta)lishment- were particularl% pro)lematic Dthe client e$entuall% decided to ma2e the upper *loors o**ice spaceE. The $arious uses re5uired $er% di**erent *loor plans- all o* which needed to )e accessi)le to team mem)ers as 5uic2l% as possi)le. Clearl%- the e$ol$ing wishes o* the client presented a uni5ue challenge to @70JKensler. 4he Solution

One month into the project- @70JKensler )egan using Bu//saw to e&change 0utoC0# [ drawings among the owner- contractor- and consultants. N7e turned to Bu//saw to help us get in*ormation to the client and our consultants as rapidl% as possi)le-N said Mr. #olph. 0s the project e$ol$ed- @70JKensler e&panded the in*ormation shared on Bu//saw to include correspondence- an in*ormational homepage- minutes *rom wee2l% project meetingsspeci*ications- )uilding code and /oning issues- and e$entuall% in*ormation *or *uture tenants. 4he +esult 'nhanced communication- cost sa$ings- and accounta)ilit%. In Mr. #olph s estimation- Bu//saw has de*initel% *acilitated communication among the man% team mem)ers wor2ing on the ,orth 0$enue Collection. NB% using ProjectPointZ *or posting drawings rele$ant to *uture tenantswe $e reall% sa$ed time and reduced our "ed'& and messenger costs.N ,aturall%- o$er the course o* a long- comple& project- communication can )ecome a great challenge: N#ecisions an owner ma2es can )e posted into ProjectPoint- and si& months down the road we can easil% access the histor% o* that decision.N Mr. #olph )elie$es this has helped the team retain the integrit% o* in*ormation o$er time. @70JKensler s success*ul use o* Bu//saw ser$ices *or the ,orth 0$enue Collection con*irms his prediction and hope: NIt s going to ta2e %ears )e*ore the construction industr% )ecomes com*orta)le with the realities o* the paperless o**ice- )ut Bu//saw is clearl% enhancing communication with our clients and consultants- sa$ing us time and e$en mone%.N A Central ;ash$oard !or Construction Management ,eed to 2now the status o* an urgent !"I6 The Autodes(O Construction Manager application o**ers a )etter wa% to ta2e control o* the construction management process online. !oute !"Ischange re5uests- meeting minutes- and correspondence around %our )uilding team- gi$ing each part% a pri$ate and secure $iew o* onl% the documents assigned to them.

Meridian Project >ystems

Meridian Project S%stems Dwww.MPS.comE has speciali/ed in pro$iding )oth so*tware4)ased and 0SP4)ased products with e&tensi$e *eatures *or complete project control. Once a project is concei$ed- the MPS Colla$oration *eatures are used to manage and record all the planning and design communications. Once the design is complete- the Purchasing Management *eatures di$ide the design into logical groups Di.e. electrical- structural steel- concrete- etc.E- distri)ute )id pac2ages- and retrie$e and anal%/e )id responses. The >cheduling *eatures ena)le distri)uted project teams to e**icientl% de$elop and colla)orate on their project tas2s- resources and costs *rom an% location in the world. The Cost Control *eatures manage all *inancial aspects o* the project- including )udgets- contracts- and purchase orders. 0dditionall%- all project4related documents are managed- trac2ed- and archi$ed *or eas% distri)ution and retrie$al using the ;ocument Management *eatures. In*ormation *rom remote locations Di.e. dail% reports- sa*et% chec2lists- punch lists- etc.E is collected and easil% managed using the Field Administration *eatures.

Meridian Project >ystemsE Project Pac( Integrated Project Management >olutions !or the A4C Industry <ou can use the Project Pac2 to manage %our projects *rom a corporate and colla)orati$e perspecti$e. The Project Pac2 is an integrated suite o* project management solutions. 7ith the Project Pac2- %ou can manage project colla)oration wor2*low using Prolog 7e)SiteL per*orm ro)ust project management with Prolog ManagerL anal%/e glo)al compan% in*ormation through Prolog '&ecuti$eL manage resources and schedules with Prolog SchedulerL and enter *ield in*ormation in handheld personal computers using Prolog Poc2et. The Project Pac2 allows %ou to manage )oth documents and data- creating one central data)ase *or all project in*ormation. 7ith the Project Pac2- %ou can procure materials and ser$icesmanage project )udgets- and contracts- trac2 project control data and documents- trac2 schedules and resources- colla)orate with %our project team through the Internet and anal%/e corporate in*ormation *rom multiple projects and locations.

?igaPlan 4nter+rise Colla$orati=e- We$78ased Project and Besource Management !or all Industries Meridian Project S%stems KigaPlan 'nterprise rede*ines traditional project management )% ena)ling complete tas2 and resource management in a colla)orati$e- we)4)ased s%stem that %ou run o** %our own corporate ser$ers. 7ith KigaPlan 'nterprise- all %our project teams can createupdate and share their schedules online- using a )rowser and an Internet connection. 0s an enterprise solution- KigaPlan ena)les distri)uted project teams to e**icientl% de$elop- manage and colla)orate on their project tas2s- resources and costs *rom an% location in the world. KigaPlan integrates with Microso*t[ Project- Prima$era Project Planner[ DP>[E and SureTra2 Project Manager[ to e&tend e&isting des2top scheduling to the Internet. ProjectTalk/com
Online Project Management and Collaboration Tools for Construction Industries

ProjectTal2 is a full-featured online collaboration and project management solution to which users
subscribe and access via the Internet. ProjectTalk is used by companies involved in development, planning, engineering, design, procurement, construction and management of facilities. This online service brings together all the necessary products and services for program and project management. Professionals who use ProjectTalk manage projects more efficiently and realize tremendous savings.

MPS So.t(are
eridian Project !ystems prides itself on producing the highest "uality project management software for construction professionals, owners, developers, architects, engineers, contractors and subcontractors. P! features a comprehensive lineup of applications to manage projects, oversee portfolios and collaborate interactively on project and scheduling data securely across the Internet. Prolog Manager Prolog anager has become the standard for project knowledge management in the #$% industry. Prolog Scheduler &ith Prolog !cheduler, all your project teams can create, update and share their schedules using only a browser. GigaPlan Enterprise 'igaPlan $nterprise is a self-hosted solution that allows distributed teams to efficiently manage projects, resources, e(penses and documents in a secure environment. 'igaPlan solutions are entirely web-native, allowing real-time project management without the need for e(pensive desktop applications and their associated costs. Prolog WebSite Prolog &eb!ite is a most powerful Internet-based collaboration solution for project control. This multi-project tool brings every member on the project team together in real time using the Internet. Prolog Executi e Prolog $(ecutive lets e(ecutives see, "uery, and compare data from projects located anywhere in the world by aggregating information from multiple project databases into a global database. Prolog Poc!et Prolog Pocket is a field data entry tool for the icrosoft) &indows) %$-based *andheld P% and Palm +!). That integrate critical field management information with your Prolog anager project database.

MPS Hosted )nternet Solution

ProjectTal!"com ProjectTalk.com provides #rchitectural, $ngineering and %onstruction ,#$%professionals with project and data management applications, e-commerce capability and industry content -- all online. GigaPlan"com &ith 'igaPlan.com, your project teams can create, update and share their schedules online, using a browser and an Internet connection. 'igaPlan.com enables distributed project teams to efficiently develop, manage and collaborate on their project tasks, resources and costs from any location in the world.

&ther Products A*aila$le ,rom MPS

Cr#stal $eports %rystal .eports is a versatile, stand-alone application which is used to create custom reports, lists, and labels from databases.

Read the following Case Study: Bovis Construction Corp. Teams with Meridian Project Systems "ounded in =((A- Bo$is Construction Corp. stands as one o* the oldest and largest companies in the construction world. 0s a glo)al construction organi/ation o**ering program managementproject management- construction management- and general contracting- Bo$is3 )est practice philosoph% re5uires detailed documentation on all o* its projects.r has #ue to the $ast amount o* detail and documentation necessar% to maintain records associated with projects- and the need to standardi/e throughout the compan%- Bo$is chose to ta2e a corporate approach to its project management needs. The challenge was to pro$ide the operations sta** with a progressi$e and e**ecti$e tool that met their re5uirements *rom a *eatures and *unctionalit% standpoint. 0*ter detailed e$aluations o* numerous project management so*tware products- Bo$is decided that Meridian Project S%stem3s Prolog Manager replicated the majorit% o* their internal processes- and sup4ported their project management processes $er% e**ecti$el%. 7ith Prolog Manager3s capa)ilities such as- managing contract drawings- su)mittals- and meeting minutes- Bo$is was a)le to success*ull% ta2e on challenging projects- including the Carolina @ealthcare project- projects *or Merc2 and Co.- the Tennessee Oilers Stadium- and certain projects at the San "rancisco International 0irport. It soon )ecame apparent that Bo$is utili/ed Prolog Manager more and more as new projects were )eing introduced to Bo$is3 port*olio. Bo$is currentl% uses Prolog Manager to manage G-::: drawings on The Oenetian in Las Oegas- ,e$ada- which once constructedwill )e the largest hotel and casino in the world. The project )oasts F-?:: rooms and ==-:::-::: s5uare *eet totaling M=.A )illion. Bo$is decided that i* Prolog Manager was so power*ul and e**ecti$e in the *ield- the% could use it corporate4wide to insure consistenc% among the construction di$isions. Bo$is manages appro&imatel% ?:: acti$e projects consecuti$el%- with re$enues approaching the M9.9 )illion range. #ue to these corporate commitments- Bo$is has )ecome a current user o* H:: Prolog Manager licenses- onl% to solidi*% the partnership Bo$is and Meridian ha$e made with one another. Ste$e Thomas- Senior Oice President o* In*ormation Technolog% at Bo$is states- BProlog Manager is an e**ecti$e project management tool that *ollows generall% accepted construction processes with a simple and straight*orward user inter*ace. It is also designed with power*ul and *le&i)le tools that allow Bo$is to customi/e a uni5ue solution *or their projects.C 7ith a *ull time sta** o* 9-9:: in the US and A-::: world4wide- it is necessar% *or Bo$is to standardi/e their project

control solution in order to integrate with the organi/ation3s corporate culture. Standardi/ation o* a project control solution will ensure that all emplo%ees ma&imi/e their capa)ilities in the *ield and con$erse with one another in a uni*orm manner )% utili/ing the same *eatures o**ered with Prolog Manager. B% implementing Prolog Manager corporate4wide- Bo$is is a)le to minimi/e $ariation o* standards to ensure proper controls are in place on projectsthere)% ensuring pro*it4a)ilit%. Bo$is3 annual construction $olume has grown >A; *rom =HHG to =HH(. #uring this time *rame- the operations sta** has grown at a lower rate- indicating that more wor2 is )eing managed with *ewer people. This can )e attri)uted to Bo$is3 e**icienc% as an organi/ation- which include standardi/ing with Prolog Manager. Thomas states- that BProlog Manager pro$ides us a )asic *le&i)le *ramewor2 in which we ha$e esta)lished the Bo$is wa% o* sol$ing our project management re5uire4ments. The open standards and *le&i)le tools gi$e us the a)ilit% to le$erage the Prolog engine into a customi/ed solution to meet our compan%3s and our client3s needs.C This *urther con*irms the need *or corporate4wide so*tware- as well as new and inno$ati$e technolog%. Prolog Manager has a *ramewor2 o* *eatures including purchasing- cost controlling- engineering- and superintending. Prolog Manager also has man% glo)al *eatures such as )uilt4in *a&ing and e4mailing- *le&i)le reporting- power*ul securit% and 5uer% *unctions- )uilt in word processing- and importing and e&porting. 7ith all these $alua)le *eatures- Ste$e Thomas states- BProlog Manager has )een a great addition to our enterprise application port*olio. ,ot onl% is the tool e**ecti$e and eas% *or our projects to ta2e ad$antage o*- the people at Meridian are trul% committed to pro$iding a world class tool *or organi/ations li2e Bo$is to capitali/e on.C >. Buildtopia

The BuildTopia Dwww.)uildtopia.comE solution is comprised o* nine modules that wor2 together in real4time. 'ach participant Dhome)uilder- architect- engineer- $endor- su)contractor- and home)u%erE will see in*ormation through their own customi/ed 7e) page. <ou will ha$e access to %our data through downloads whene$er %ou choose. *ine Modules 5hat Put Mou in Control =. 8uilder ;ata Li$rary: 'nter and $iew in*ormation used throughout the BuildTopia s%stem R such as cost codes- options- house t%pes- the lot matri&- and su)contractor records. State4o*4the4art migration tools allow %ou to trans*er %our e&isting data easil%. 9. ;esign and Colla$oration: Oiew and comment on C0# drawings using instant online messaging. Colla)orate with the architect or engineer in real4time. Use the *inal designs and speci*ications to solicit su)contractor and $endor )ids \ all online. >. 8idding and Purchasing: Prepare in*ormation *or $endors and su)contractors to )id on a project- distri)ute plans and speci*ications through an electronic !"P- and answer 5uestions using online messaging. <our standardi/ed response *orm will prompt rapid replies and allow %ou to compare the )ids 5uic2l%. Then- generate the contract R all on %our computer. ?. Project Management: Monitor the production schedule throughout construction- post changes to $endors and su)contractors- discuss changes online in real4time- appro$e purchase and wor2 orders- and trac2 in*ormation such as )uilding permit data. <our sta**

can update the schedule in the *ield using a wireless de$ice. Su)contractors and $endors can use this module to $iew house t%pe- options- and other unit4speci*ic in*ormation. A. >ales: The Sales #irector can input and maintain all retail pricing in*ormation *or the project- including )ase prices and options. Prospects can )e pre45uali*ied- and the contract purchase price and option pricing can )e determined R all on the Internet. <ou ha$e the a)ilit% to $iew and update in*ormation on prospects and outside )ro2ers. The module also maintains a historical change record so %ou can ha$e document re$isions. Custom options and change orders can )e e**ected online. F. #ome$uyer #ome+age: Manage all communications with the purchaser and 2eep %our in*ormation record here. In*ormation the home)u%er needs to suppl% will )e automaticall% listed on their page. Customi/e a master chec2list to re*lect optionscustomi/ations- contract particulars- and the schedule *or that project. Coordinate pre4 settlement wal2throughs with customers- as well as settlements )etween lenders and title companies. Ki$e home)u%ers their own password4protected U!L so the% can $iew their contract in*ormation together with an% change orders- the production schedule and projected completion date- a list o* in*ormation the% need to pro$ide- and digital photos o* their home at $arious stages o* construction. This section pro$ides an e**icient wa% *or %ou and the )u%er to communicate a)out an% issue. G. Customer >er=ice: 0llows %our sta** and the home)u%er to colla)orate on administration o* the warrant% ser$ice. Customers can read warrant% in*ormation- log re5uests- and $iew the status o* their order \ eliminating *rustration and repeated phone calls. 0n online calendar coordinates the su)contractorJ$endor and purchaser3s schedules. (. Custom Be+ort Writer: 0ll the data within BuildTopia can )e con*igured into a custom management report. The C!7 will allow %ou to produce sales reports- settlement updates- scheduling and deli$er% composites- options and ,SO pre*erence reportsprospect demographics- wor2 orderJpurchase order statements- jo) costing and just a)out an% other report %ou can imagine. I* the data is there- %ou can organi/e and report on it at an% time. H. Lin(5o+ia: BuildTopia s latest $ersion o**ers Lin2Topia. Lin2Topia will allow a home)uilder to inter*ace with their )ac2 end accounting s%stem. #epending on %our e&isting s%stem- Lin2Topia will import data *rom BuildTopia into *iles *ormatted *or %our speci*ic accounting pac2age- ena)ling %ou to incorporate BuildTopia data in %our +o) Cost and 0P. ,) Introduction to Prolog Manager Ler) 2).

<ou will start learning Prolog Manager Oer. F.: starting with Lesson ?. Prolo% Mana%er F 1nline Manual2+df is attached to this lesson in pd* 0cro)at *ormat. This manual is (:9 pages long. I suggest that %ou $iew it online and not print it. The manual ser$es as a )ac24up and support to the instructions gi$en in the lessons. I also suggest that as %ou )egin lesson ? that %ou ta2e a)out >: minutes to just )ecome *amiliar with the o$erall loo2 and *eel o* the general Prolog screen and menus.. Loo2 at each pull down menu- icon and switch)oard )utton to )ecome *amiliar with them. It will )egin to )ecome intuiti$e as to which )uttons and menus to loo2 at to per*orm which *unctions.

Prolog F is currentl% onl% a$aila)le in the computer la) in S,LB 9=H. I* %ou are interested in purchasing a student $ersion D*ull scale $ersion that times out in F months with another F month renewalE contact the instructor. The cost has t%picall% )een a)out M>A.::. To access Prolog F %ou must )e in the CM ?=A course and o)tain a password *rom the instructor.

Self&Chec' (uestions Lesson $%:

=. ,ew we) )ased applications are signi*icantl% impro$ing project team communication and colla)oration. a. true ). "alse 9. a. ). c. d. >. a. ). c. d. ?. a. ). c. d. e. *. A. a. ). c. d. @70JKensler used Bu//saw to success*ull% manage: ,orth 0$enue Collection- Las Oegas- ,O Largest hotel and casino in the world Oenetian- Chicago- IL ,one o* the a)o$e Project organi/ational charts help to: Open communication lines .now how to get paid #e*ine contractual responsi)ilities a and c #ocument and contract control so*tware should )e: *le&i)le a)le to integrate and )e compati)le with other so*tware programs a)le to access and retrie$e documents and reports 5uic2l% ha$e securit% and networ2ingJsharing capa)ilities all the a)o$e c and d onl% One o* the *irst things that %ou should do in learning Prolog is to: read the Prolog Manager F Online Manual di$e right in to the *irst Prolog assignment spend a)out >: minutes )ecoming *amiliar with pull down menus- icons- and switch)oard )uttons all the a)o$e

Danswers: =4a- 94d- >4d- ?4e- A4cE

Lesson $% (ui):
See Blac2)oard- 0ssignments- 1ui//es.

Lesson 1": Partnering- Meetings- *egotiating and Ar$itration Introduction:

Meeting others e&pectations can o*ten )e $er% di**icult. 7e ma% ha$e a mental model as to how we are going to per*orm our wor2. Once the wor2 is done- what we ha$e completed ma% )e di**erent *rom what the customer e&pected. To sol$e these pro)lems we ha$e meetings- negotiate with one another and e$en loo2 to sol$e the pro)lem through the courts. Partnering- )etter communication and meetings- )etter negotiating s2ills and ar)itration are all practices that ha$e pro$en to )e a )ene*it to the natural con*lict that arises *rom construction contracting. This lesson will pro$ide %ou with new 2nowledge a)out how to use these practices in the industr%.

Lesson Objectives:
At the end of this lesson you should: =. Be a)le to de*ine partnering and how it can )e used to )etter the construction o* a project. 9. Be a)le to descri)e the )asic components o* an% negotiation- and its stages and tactics. >. Understand *our )asic personalit% t%pes and how the% interact with each other. <ou should also )e a)le to understand personalit% t%pes when negotiating. ?. @a$e a general 2nowledge o* the di**erent t%pe o* meetings that are held at the jo)site. A. Understand how ar)itration is used in construction contract management.

How to Proceed:
D=9E!ead and re$iew the discussion materials. D9E !ead and re$iew Construction +o)site Management- Chapter F- pg. =?H4=F( and Chapter =: pg. 9F=49F9. D9AE0nswer the sel*4chec2 5uestions to e$aluate %our readiness to ta2e 5ui/ =>. D9FE7hen %ou *eel that %ou are read%- Ta2e 5ui/ =>.

#iscussion

aterials:

Conce+t 1: An e'am+le o! Partnering !ead the *ollowing case stud% a)out the e**ects o* partnering.

Case >tudy: Associated ?eneral Contractors 1660 8uild America Awards: Cole I=erland Interchange B% the earl% =HH:s- Boise Idaho3s Cole O$erland Interchange had )ecome the )usiest interchange in the State o* Idaho. To *urther complicate the situation- the interchange crossed )us% I4(?- which caused a dangerous congestion pro)lem. O$er HH-::: $ehicles /ig/agged through this ma/e that lin2s this rapidl% growing neigh)orhood and )usiness center with downtown Boise and I4(?. In +une o* =HH?- ,elsonJMc0l$ain Construction +.O. was awarded the single largest contract e$er let )% the Idaho Transportation #epartment DIT#E. The M>:.> million dollar contract included the reconstruction and realignment o* I4(? and the Cole and O$erland interchange. To correct the pro)lem- I4(? was dropped 9? *t. )elow the e&isting grade and widened *rom ? to F lanes. 0 H9-::: S" )ridge dec2 was constructed a)o$e the li$e interstate to carr% F lanes o* tra**ic in each direction. This was accomplished with no tra**ic closures. Inno$ati$e precast temporar% )ridges were used as a rotar% o$erpass s%stem that allowed wor2 to continue without closing ColeJO$erland or I4(?. Two4wa% tra**ic was maintained on Cole and O$erland and *our lanes were 2ept open on I4(? throughout construction. 0n ingenious con$e%er s%stem also helped mo$e more than = million cu)ic %ards o* e&ca$ated earth o$er li$e tra**ic to a$oid dangerous inter*ace )etween *reewa% tra**ic and construction $ehicles. This comple& project was completed 99 da%s ahead o* schedule on a GHA4da% contract. This two4%ear project was completed within )udget with no claims *iled. Through a uni5ue partnering agreement- ==G pu)lic in*ormation meetings were held. These wee2l% meetings included the principle contractors- su) contractors- engineers- IT#- "ederal @ighwa% 0dministration D"@70E- local residents and )usinesses. O$er =:: )usinesses were a)le to remain open during construction including a major shopping center and a large truc2 stop. Sa*et% was a major concern )ecause o* the large amount o* acti$e tra**ic. 9F-=:: L" o* concrete guardrail and F-9H? L" o* concrete median )arriers were used. Care*ul management resulted in no lost da%s due to injuries or accidents.

0ppro&imatel% ==:-::: cu)ic %ards o* concrete were used in the construction o* the )ridge- pa$ement and sound wall. ?G-::: tons o* asphalt- =.AG( million pounds o* metal rein*orcement was also used. '&pert management- team cooperation and the spirit o* partnering lead to the completion o* the single largest and most comple& highwa% construction project e$er underta2en in the State o* Idaho. The project was completed ahead o* schedule- within )udget and with minimal disruption to the local communit% and motoring pu)lic. ,elsonJMc0l$ain Construction +.O. proudl% su)mits this project *or the =HHG Build 0merica 0wards. M==,IA- ,H= "HA##=A-= 1F A DIFFI";#, 910 ,elsonJMc0l$ain Construction +.O. reali/ed )e*ore the )id process the importance o* assem)ling a team that could meet the demands o* such a di**icult and *ast trac2 jo). 0 master schedule was de$eloped that ma&imi/ed wor2 e**icienc% while minimi/ing e**ect to the motoring pu)lic- local residents and )usiness owners. The schedule itsel* included G(: acti$ities co$ering GHA da%s which when printed was ?> L" long. The greatest challenge came in the mammoth coordination o* the schedule. Two4wa% tra**ic was alwa%s open on ColeJO$erland and *our lanes were alwa%s open on I4(? while maintaining sa*e and producti$e wor2ing conditions at di**erent locations on the project. Scheduling was *urther complicated )% two winters- se$ere temperature drops which onl% allowed short windows o* time *or pa$ing and a major utilit% relocation that was outside the scope and control o* )oth the owner and the contractor. The project called *or the complete reconstruction o* the )usiest intersection in the State o* Idaho. This ((:: L" section o* highwa% included I4(?- the main *reewa% in southern and western Idaho that is intersected )% Cole and O$erland interchange. Cole and O$erland were straightened at right angles and the interchange was lowered to ground le$el. I4(? was reconstructed and widened *rom ? to F lanes and lowered 9? *eet while a new F lane- H9-::: S" ColeJO$erland intersection )ridge dec2 was constructed o$erhead. The +.O. met the challenge )% e&pert scheduling- wor2ing dou)le shi*ts and o** hours to ensure that e$er% milestone was met in this long and complicated project. =G"=##=A"= IA P719=", MAAA-=M=A, Through a partnering agreement- the major sta2eholders in the project held team4)uilding sessions and de$eloped a mission statement- team goals and an issue resolution s%stem. This up *ront wor2 paid o**. Through this uni5ue agreement- ==G pu)lic in*ormation meetings were held including the principle contractors- su) contractors- engineers- IT#- "@70- local residents and )usiness owners. Pro)lems were sol$ed 5uic2l% and e**icientl% resulting in satis*ied sta2eholders with no claims *iled. #uring a particular period there was a se$er drop in the temperature during a critical pa$ing phase. The partnering relationship allowed *or the sta2eholders to come together and )rainstorm *or possi)le solutions. 0 solution was identi*ied and IT# allowed *or the pa$ing to proceed without a**ecting the schedule. There were ( major Dand ? minorE phases to the project that re5uired rerouting and the resignali/ation o* tra**ic patterns 99 di**erent times. This coordinated schedule was nothing less than e&traordinar% considering the HH-::: $ehicles that tra$el the interchange e$er% da%. Sa*et% was a major concern )ecause o* the large amount o* acti$e tra**ic. 7ee2l% sa*et% meetings were held *or all prime and su) contractors. There was an a$erage o* (: wor2ers per da% on the project and up to >:: during pea2 periods. 9F-=:: L" o* concrete guardrail and F-9H? L" o* concrete median )arriers were used. This thought*ul and care*ul management resulted in no lost time due to injuries or accidents.

The project was designed to a$oid ele$ated structures thus diminishing $isual and noise pro)lems. The +.O. too2 e&tra precaution *or dust a)atement and were prepared to use erosion control )lan2ets as needed. The project included a ?A:: L" sound wall that was constructed earl% to )loc2 noise and dust *rom local )usinesses and residences. ==G pu)lic in*ormation meetings were held to sol$e an% concerns with local )usinesses and residents. Secondar% water *or residences that come through irrigation ditches is $er% important *or watering %ards and gardens. Special precaution was ta2en to ensure that residences had their irrigation. On se$eral occasions a water truc2 was sent to water a local residents *lower)ed. 0lso- at the contractor3s e&pense- some structures were pro$ided to accommodate the local natural ha)itat. 0djacent to the interchange had )een an unsightl% G4acre gra$el pit. Using spoils *rom the e&ca$ation to lower I4(?- the pit could )e reclaimed and )rought )ac2 to its natural le$el. Other spoils were rec%cled *or *uture use )% the IT#. Some adjoining propert% owners $olunteered to seed and landscape their propert% that has created a $er% attracti$e and pleasing area to tra$el through. .>C.LL.,C. I, CLI.,4 S.+:IC. ,elsonJMc0l$ain Construction +.O. deli$ered the project 99 da%s ahead o* schedule on this long and di**icult project. The commitment was met to 2eep all roads open and operating. The project was within the )udget with no claims *iled. Through the inno$ati$e precast temporar% )ridges that were used as a rotar% o$erpass the +.O. was a)le to sa$e the client o$er M9A:-:::. '$en though the actual contract was with the IT# the indirect customers such as the )usiness owners- commuters and local residents were a)le to carr% on their dail% )usiness with little interruption. The +.O.- e$en though not re5uired to do so )% contract- wor2ed dou)le shi*ts and man% o** hours to lessen the impact o* wor2 on the dail% tra**ic *low and %et sta% with the aggressi$e schedule. "1A,7A",17 "1A,7I0;,I1A ,1 ,H= "1MM;AI,/ The a)ilit% to maintain the delicate )alance o* 2eeping the project on schedule and %et 2eeping tra**ic lanes and local )usinesses open was a major contri)ution to the communit%. ,e$er )e*ore in the histor% o* IT# has a contractor held so man% wee2l% meetings to e**ecti$el% communicate with local )usinesses and residents. This e&panded partnering with the communit% too2 a possi)le e&plosi$e situation and turned it into a win4win situation *or e$er% one. ,ow that the project is completed it is an attracti$e and *unctioning interchange that *eatures one less tra**ic signal that allows tra**ic to *low more smoothl% in all directions. It also is a monument o* cooperation and goodwill showing what go$ernment- industr%- )usiness and local citi/ens can do when the% wor2 together. Conce+t : 8asic Conce+ts A$out *egotiating =. 9. ,e$er assume that mone% is the )ottom line. ,e$er narrow negotiations down to one issue. I* %ou do there is onl% a winner and a loser. 0lwa%s 2eep at least ? or A items on the ta)le so that there can )e a win4win resolution.

>. ?.

A.

,e$er assume %ou 2now what the other part% wants. Ket to 2now the person along with the prospecti$e deal. <ou can ne$er ha$e enough in*ormation a)out the negotiation. #o %our homewor2. Power is the single most important element in negotiating. In an% negotiation- one person is in control and one is )eing controlled. Power comes *rom titles- a)ilit% to rewardJpunish- $alues- and strength o* personalit% DcharismaticE- e&pertise or in*ormation strength. Time is alwa%s critical in negotiations. The person under the most time pressure usuall% does worse in an% negotiation. (:; o* the concessions come in the last 9:; o* the time a$aila)le to negotiate.

Conce+t ": 5hree >tages o! *egotiating =. 9. >. 'sta)lish criteria 4 )oth %ours and theirs. Ket in*ormation a)out the other side. 0s2 open4ended 5uestions 4 who- what- where- and wh%. Loo2 *or moti$es- hot )uttons and hidden agendas. !each *or a compromiseL tr% to meet on some common ground *or a win4win outcome.

Conce+t ,: 5actics and Counter7tactics o! *egotiating =. 9. >.

?. A.

,i))ling 4 Since a*ter the initial agreement the opposition is most $ulnera)le- some things are more easil% achie$ed later in a negotiationL introducing a demand earl% ma% mean it will )e )argained out or traded o**. @ot Potato 4 Someone wants to pass his or her pro)lem to %ou. @igher 0uthorit% 4 0lwa%s ha$e an unidenti*ied entit% )ehind %ou that has the authorit% to ma2e a decision.
Set40side 4 Put an issue on hold- *ind agreement on little issues to create momentum- and then return to an% major impasse issues. Mediator 4 Bring in a third part% to mediate- someone who must )e percei$ed as neutral.

F. G. (. H. =:. ==. =9. =>. =?. =A. =F.

=G.

Kood Ku%JBad Ku% 4 NI* it were m% decision..)ut m% )ossN ,e$er Ta2e the "irst O**er 4 0lwa%s go through the process- ma2e the other side *eel the% $e won somethingL %ou won t *eel satis*ied i* %ou don t tr% *or a )etter deal. "eel- "elt- "ound 4 NI understand how %ou *eel- others ha$e *elt the same wa%- howe$er we ha$e alwa%s *ound..N SmartJ#um) 4 #um) is smart. Pla% dum) and don t gi$e %oursel* awa%L the other side will )e 2ept o** guard and will tr% to help %ou. Trade4O** Principle 4 The $alue o* ser$ices alwa%s diminishes rapidl% a*ter the ser$ices ha$e )een per*ormedL an%time %ou ma2e a concession- as2 *or a trade4o** immediatel%. 7al2 awa% 4 Communicate %our willingness to wal24awa%- when %ou pass the point o* wal2ing- %ou ha$e lost the negotiation. "linching 4 Oisi)l% react an% time a proposal is made to %ou. Oise Techni5ue 4 S5uee/e people into concessions- N<ou ll ha$e to do )etter than thatN. Power o* the Printed 7ord 4 People )elie$e what the% see in writing. 7ithdraw O**er Principle 4 7ithdraw an o**er %ou $e alread% made )% retreating to an earlier position. Se$eral reason can )e gi$enL higher authorit%- mista2e- so much time conditions ha$e changed- trade4o**. 'as% 0cceptance 4 Put other side in position where the% don t *eel )ad a)out gi$ing in to %ou.
"unn% Mone% 4 Unusual wa% o* )rea2ing down price i.e.- dollars per da%- cents per mile etc.

=(. =H. 9:.

#eco% 4 Ta2e attention awa% *rom real issue. !ed @erring 4 Create issue that will later )e used to trade o** *or a real issue. Pupp% #og Close 4 Bu%er use- *eel- get emotionall% in$ol$ed with product.

9=. 99. 9>.

!eluctant Bu%er 4 Show disinterest no matter how high %our enthusiasm. 7ant4It40ll 4 0lwa%s as2 *or more than %ou e&pect to get. Splitting the #i**erence 4 'ncourage the other person to split )etween what %ou want and what the% are willing to gi$e. 9?. Shut4Up 4 7hen %ou ma2e an o**er do not sa% another word until the other part% has responded. <ou can tal2 %oursel* out o* a deal. 9A. ,egotiation Location 4 7here- when and how %ou meet is e&tremel% important. 7or2 these to %our power ad$antage.

Conce+t 3: Anderstanding Personality 5y+es Analytical 7 @oo2ed on data and detail. 7ants the *acts )e*ore tr%ing to sol$e the pro)lem. 0nal%tical gets along least well with e&tro$erts- whom the% *ind shallow and unconcerned with the *acts. In dealing with them- gi$e anal%tical the *acts the% cra$e. @elp them see that the% ha$e to deal with people- not just principles- *acts- or the s%stem. The anal%tical is- )% nature- an e&ecuti$e. @e or she is $er% rigid in approaching a negotiation. 0nal%ticals are reluctant to )e *le&i)le. 7hile e&tro$erts are loose on detail- anal%ticals are precise. The% are concerned with the principle underl%ing an% issue. Their *ault is in*le&i)ilit%. Pragmatic 7 Bottom4line- time4management t%pe- doer. @igh pressure. Ma% not ta2e personal *eelings into account. The pragmatic gets along least well with the amia)le- whom the pragmatic thin2s is too emotional and slow in ma2ing decisions. The pragmatic is turned o** )% too much enthusiasm- thin2ing it is phon%. To get along with the pragmatic- demonstrate a concern *or practical issues- time and the )ottom line. Change the pragmatics *i&ed position through logic. In negotiations- pragmatics )ecome street *ighters. The% are in the negotiations to get what the% want. The% are sure there must )e winners and losers- and the% want to )e winners. The% *ight hard and see little justi*ication *or concessions. Their main *ault in negotiations is the tendenc% to stu))ornl% hold a *i&ed position. Amia$le 7 Interested in the *eelings o* other people. #on t li2e high pressure. 7ants e$er%one to get along. 0mia)les are suspicious o* the hard sell- and get along least with pragmatics- whom the% thin2 are un*eeling. Since amia)les most want agreement- show them that much progress has )een made and encourage them to promote their original good ideas. #on t pressure them. Let them see %ou ha$e concern *or the interests o* the people in$ol$ed in the situation. The amia)le is the opposite o* the pragmatic in negotiations 4 amia)les )ecome paci*iers. Their goal is not to win the negotiation- )ut to 2eep e$er%one happ%. The% dread high pressure encounters and long *or a solution- e$en one that does not meet their re5uirements. The amia)le is too easil% swa%ed. 4'tro=ert 7 Oer% emotional and easil% inspired- see2ing a good time. '&citement ma% ta2e precedence o$er care*ul thought. '&tro$erts ha$e the most pro)lems with anal%ticals 4 the% )elie$e anal%ticals are too mired in detail- unemotional- and $er% slow to act. Ta2e time with the e&tro$ert to tal2 a)out his or her *amil% or other interests. Persuade the e&tro$ert to tone down the moti$ational rhetoric so the other parties can reach their own conclusions. The e&tro$ert )ecomes a den mother in a negotiation. #en mothers are so enthusiastic a)out their project the% lose sight o* the *act that others are not as enthusiastic. The e&tro$ert s *ault is a tendenc% to ignore the *eelings o* the others in the negotiation.

Consider the *ollowing matri& a)out personalit% t%pes: 0nal%tical 4 O7L Pragmatic 7 8ALL LO740SS'!TIO' @IK@40SS'!TIO' LO74'MOTIO, LO74'MOTIO, Li2es detail and *ull presentation *rom 0 to ] Ta2es time to decide and slow paced Oer% time conscious and earl% *or 0ppointments ,o Mista2es D%ours or theirsE #oesn t li2e o$er e&citementJemotionalism Securit% more important than prestige and status Li2e order and is $er% NneatJneatC Li2es )eing alone- solitude Business *irst- then social Amia$le 7 LAM8 LO740SS'!TIO' @IK@4'MOTIO, Li2es the Bottom Line 4 NKet to the pointN ] Dnot 0 through ]- just ]E "ast to decide "ast pace and is a N,eat t%pe o* mess%N !esults oriented ,eeds to control a situation Prestige V status more important than securit% Li2es challenges Li2e *reedom *rom control Business *irst- then social '&tro$ert 4 TIK'! @IK@40SS'!TIO' @IK@4'MOTIO,

@ighl%

0sserti$e

Be their *riend- gi$e direction- show ,ot into detail 4 pre*ers others to do support detail Slow to decide and o*ten change their mind "ast to decide and is a Slow- slow pace and is Na mess% t%pe o* Nmess%Jmess%N neatN "ast pace and o*ten late *or Understands %our mista2es 4 *eels )adl% a)out their mista2es appointments Oer% emotional Securit% more important than prestige and status 0$oids con*lict 7ants protection and peace Social *irst- then )usiness

Lo$es recognition 'motional li2es to get e&cited Prestige and status more important than securit% Li2es a challenge Social relationships important Social *irst- then )usiness

@ighl%

'motional

Self&Chec' (uestions Lesson $?:

=. a. ). c. d. 9. a. ). c. d. >. a. ). c. d. ?. a. ). c. d. The reading descri)ers how man% di**erent t%pes o* jo)site related meetings6 A ( =9 =A Some o* the great $alues o* a partnering wor2shop is: the participants draw )attle lines how pro)lems can )e sol$ed set goals to maintain cooperati$e relationships ) and c I* %ou are using an 0I0 contract- the ar)itration process can )e *ound: 0t the 0merican 0r)itration Societ% D00SE In the 09:=- section ?.A There is no ar)itration language in 0I0 documents In the 0=:=- section F.F Pragmatic personalit% t%pes: li2e )eing alone wants e$er%one to get along needs to control a situation wants social *irst- then )usiness

A. I* a su) contractor came to %ou with a list o* pro)lems that the% are ha$ing as to wh% the% can3t per*orm- what negotiating tactic are the% using on %ou6 a. splitting the di**erence ). good gu%- )ad gu% c. hot potato d. *linching 0nswers: =4c- 94d- >4)- ?4c- A4c

Lesson $? (ui):
See Blac2)oard- 0ssignments- 1ui//es.

Lesson 1,: La$or Belations and Producti=ity Introduction:

La)or is the most important production pla%er in the construction o* an% project )ecause the% run the e5uipment and put materials into place on a project. La)or e&pectations and agreements must )e understood and managed care*ull%. Unli2e a chapter on human resources this lesson *ocuses on understanding la)or unions- la)or agreements and la)or producti$it%.

Lesson Objectives:
At the end of this lesson you should: =. Understand the historical )ac2ground o* la)or unions and their current *ormation. 9. Understand la)or agreements. >. Understand how the #a$is4Bacon 0ct a**ects construction la)or costs. ?. Be a)le to descri)e the )asic *undamentals o* la)or producti$it%. A. Understand the $alue o* la)or records. F. Understand what a**ects la)or producti$it%. G. Understand how repetition can enhance producti$it%.

How to Proceed:
D=>E!ead and re$iew the discussion materials. D9E !ead and re$iew Construction +o)site Management- Chapter G- pg. =FH4=(H. D9GE0nswer the sel*4chec2 5uestions to e$aluate %our readiness to ta2e 5ui/ =?. D9(E7hen %ou *eel that %ou are read%- Ta2e 5ui/ =?.

#iscussion

aterials:

Conce+t 1: #istory o! La$or Irgani&ations in the Anited >tates The histor% o* la)or organi/ations )egins in the earl% nineteenth centur%- and their growth parallels the increasing industriali/ation o* modern societ%. Initiall% tradesmen possessing some s2ill or cra*t )egan organi/ing into groups $ariousl% called guilds- )rotherhoods- or mechanics societies. Their o)jecti$es were to pro$ide mem)ers- widows- and children with sic2ness and death )ene*its. In addition- these organi/ations were interested in the de$elopment o* trade pro*icienc% standards and the de*inition o* s2ill le$els such as apprentice and journe%man. The% were o*ten NsecretN )rotherhoods since such organi/ations were considered unlaw*ul and illegal conspiracies posing a danger to the societ%. "rom the =(?:s until the era o* the ,ew #eal in the =H>:s- the histor% o* la)or organi/ations is the saga o* con*rontation )etween management and wor2ers- with the pendulum o* power on the management side. 7ith the coming o* the ,ew #eal and the need to reju$enate the econom% during the #epression- la)or organi/ations won stri2ing gains that $irtuall% re$ersed the power relationship )etween managers and wor2ers. The 0merican "ederation o* La)or D0"LE was organi/ed )% Samuel Kompers in =((F. This was the *irst success*ul e**ort to organi/e s2illed and cra*t wor2ers such as ca)inetma2ers- leather tanners- and )lac2smiths. Since its inceptionthe 0"L has )een identi*ied with s2illed cra*t wor2ers as opposed to industrial Nassem)l% lineN t%pe o* wor2ers. The Building and Construction Trades #epartment o* the 0"L- which is the um)rella organi/ation representing all construction cra*t unions- was organi/ed in =H:(. The semis2illed and uns2illed *actor% wor2ers in Nsweat )o&N plants and mills were largel% unorgani/ed at the time Kompers started the 0"L. Man% organi/ations were *ounded and

ultimatel% *ailed in an attempt to organi/e the industrial wor2er. These organi/ations- with euphonious sounding names such as Industrial 7or2ers o* the 7orld and the .nights o* La)orhad strong political o$ertones and sought sweeping social re*orms *or all wor2ers. This was particularl% attracti$e to immigrant wor2ers arri$ing *rom the sociall% repressi$e and politicall% stagnant atmosphere in 'urope. Such organi/ations attracted political *ire)rands and anarchists preaching social change and uphea$al at an% cost. Con*rontation with the police was common and $iolent riots o*ten led to maiming and 2illing. The most *amous such riot occurred in the @a%mar2et in Chicago in =((F. Kompers was seriousl% interested in protecting the rights o* s2illed wor2ers and had little interest in the political and social orator% o* the uns2illed la)or organi/ations. There*ore- separate la)or mo$ements representing s2illed cra*t and semis2illed *actor% wor2ers de$eloped and did not com)ine until the =H>:s. This led to di**erent national and local organi/ational structures and )argaining procedures that are still utili/ed and strongl% in*luence the la)or picture e$en toda%. In the 16".s- industrial Ci)e)- !actory semis(illedD wor(ers $egan to organi&e e!!ecti=ely with the su++ort o! legislation e=ol=ing during the +ost7;e+ression +eriod) 5he AFL- reali&ing such organi&ations might threaten its own dominance- recogni&ed these organi&ations $y $ringing them into the AFL cam+ with the s+ecial designation o! Federal Locals) Although nominally mem$ers- the industrial wor(ers were generally treated as second7class citi&ens $y the older and more esta$lished cra!t unions) 5his led to !riction and ri=alry that culminated in the !ormation o! the committee !or Industrial Irgani&ations CCIID) 5his committee was esta$lished in 16"3 unilaterally $y the industrial locals without +ermission !rom the go=erning $ody o! the AFL) 5he act was la$eled treasonous and the AFL $oard ordered the Committee to dis$and or $e e'+elled) 5he AFL sus+ended the industrial unions in 16"2) In res+onse- these unions organi&ed as the Congress o! Industrial Irgani&ations CCIID- with @ohn L) Lewis o! the Anited Mine Wor(ers as the !irst CII +resident) Following this ri!t $etween the industrial and cra!t union mo=ements- the need to coo+erate and wor( together was a++arent) #owe=er- +hiloso+hical and +ersonal di!!erences +re=ented this until 1633- at which time the two organi&ations com$ined to !orm the AFL7CII) 5his organi&ation remains the major la$or entity in the Anited >tates today) 0ssociated Keneral Contractors D0KCE is made up o* primaril% pro4la)or t%pe companies. 0ssociated Builders and Contractors D0BCE is just the opposite. 0BC is what is called merit shop o* non4union companies. These two organi/ations o*ten con*lict. Conce+t : ;a=is78acon Act In =H>=- a $er% *ar4reaching piece o* legislation was passed that e$en toda% has a signi*icant impact on the cost o* *ederall% *unded projects throughout the United States. The #a$is4Bacon act pro$ides that wages and *ringe )ene*its on all *ederal and *ederall% *unded projects shall )e paid at the Npre$ailingN rate in the area. The le$el o* pre$ailing rates is esta)lished )% the secretar% o* la)or- and a listing o* these rates is pu)lished with the contract documents so that all contractors will )e aware o* the standards. To ensure that these rates are paid- the go$ernment re5uires su)mittal )% all contractors o* a certi*ied pa%roll each month to the *ederal agenc% pro$iding the *unding. These rates are re$iewed to determine whether an% $iolations o* the #a$is4Bacon pa% scale ha$e occurred. This act is so *ar4reaching in its e**ect )ecause much o* pu)lic construction at the state and local le$el ma% )e *unded in part )% *ederal grants. 0 large municipal mass4transit s%stem or wastewater treatment plant- *or instance- ma% )e *unded in part )% a *ederal agenc%. In such cases- the pre$ailing rates must )e paid. Since the #epartment o*

La)or generall% accepts the most recentl% negotiated union contract rates as the pre$ailing onesthis allows union contractors to )id without *ear o* )eing under)id )% nonunion contractors pa%ing lower wage rates. Conce+t ": Anderstanding La$or Producti=ity The *ollowing graph shows t%pical la)or producti$it% )% our o* the da%.

T%pical #ail% Production La)or Cur$es

"or Industrial 7or2ers In$ol$ed in @ea$% 7or2

=::;

A:;

=: Morning

==

=9 Lunch

>

0*ternoon

The ne&t graph shows t%pical producti$it% )% da% o* the wee2.

Production Cur$es B% #a% o* 7ee2

"or Industrial 7or2ers In$ol$ed in @ea$% 7or2

=::; (: F: ?: X

X X X X X

Mon.

Tues.

7ed.

Thurs. "ri.

Sat.

Construction la)or is di$ided into three categories. The *irst categor% called B'**ecti$eC is the percentage o* time that wor2ers spend at the wor2*ace actuall% putting materials into place or other4wise per*orming their wor2. The second categor% BContri)utor%C- are wor2ers tra$eling *or materials or tools and e5uipment. The third categor% B,ot Use*ulC- *ound that wor2ers were not doing an% acti$it% that speci*icall% was in$ol$ed in putting wor2 inWplace. (abor Productivit$ <atings b$ 5rade
Trade or Cra.t Bric2la%er Carpenter Cement *inisher 'lectrician Instrument Installer Insulator Ironwor2er La)orer Millwright '5uipment operator Painter !igger Sheetmetal Pipe*itter Teamster 0$erage E..ecti*e Contri$utor -ot 0se.ul ?9 >> 9A 9H >( >> >G ?= 99 9( >A >G >: >: ?: ?A 9( 9G >= >F >> ?? 9F >: >? >F >: >( 99 ?: ?F 9F 9( 9G AG =F >( >> 9H 9G >F >G ?A =F >H >F >> >=

This ne&t graph demonstrates the e**ect o* o$ertime on producti$it%. The graph shows that i* %ou wor2ed la)or at F: hours that their producti$it% )egins to drop dramaticall% o$er the coming wee2s. In the Hth wee2 %ou ma% )e wor2ing la)or F: hours )ut onl% getting ?: hours worth o* producti$it%. 7hat can we learn *rom this6 Use o$ertime sparing- and *or short lengths o* time. O$ertime:7ee2l% Producti$it% !eturn
Based on ?:4@our 7ee2
@ours Per wee2

F: AF A9 ?( ?? ?:

>F

? F ( =: =9 7ee2s o* Continuous Operation

=?

0 *ew other *actors that dramaticall% e**ect producti$it% are weather and height. The *i$e *actors o* weather that a**ect la)or are temperature- relati$e humidit%- direct sunlight and glare- wind and wind chill *actor- and moisture. T%picall%- producti$it% drops )elow G:; when the *ollowing conditions are present: ^ HA degrees ". ^ H: percent relati$e humidit% _ >9 degrees ". "our considerations to impro$e producti$it% when dealing with weather are: .eep temperature )etween A: and G: degree ". .eep area dr% .eep area *ree o* wind .eep la)or out o* direct sunlight

0 t%pical rule o* thum) is that producti$it% drops A:; as soon as la)or gets A *eet o** the ground. '$er% thing slows down when la)or is wor2ing o** ladders and sca**olding. Materials are slowing getting to the wor2 *ace and the tra$el o* la)or is slower. '5uipment is also slower getting into place and using. The sa*et% re5uirements *or *all protection does not necessaril% slow down production. In man% cases it actuall% enhances producti$it%. 0 *ew approaches that ma% help wor2ing at heights are: Pre*a)ricate units and li*t into place Pre4assem)le units and li*t into place Modulari/e as much as possi)le

Use the M4T4M approach. Methods4Time4Measure. Methods determination must precede time determination. #etermining the )est method to install something should )e calculated )e*ore %ou can calculate how long it will ta2e to put materials in place. 0*ter %ou ha$e determined a method then tr% it and measure the results. <ou ma% tr% se$eral methods )e*ore settling in on one method that pro$es to )e the 5uic2est. Conce+t ,: Be+etition- <ey to Producti=ity Success*ul project mangers will loo2 *or opportunities o* repetiti$e wor2 )ecause the% 2now that the% can increase producti$it%. Consider a stud% o* *raming homes.

Impro$ed Producti$it% Through !epetition

,um)er o* Man4hours

"raming Crew *or Single "amil% @omes Brea2 Between "raming houses Q9H and >:

=(: =F: =9: (: ?: :

( =9 =F 9:

9?

9H

>:

>?

>(

?9

,um)er o* @ouses "ramed

In this stud%- the *raming crew cut their man4hours in hal* a*ter the *irst ( houses. '$en a*ter a )rea2 it onl% too2 them ? houses get )ac2 to their pre$ious production num)er.

Self&Chec' (uestions Lesson $-:

=. a. ). c. d. 9. a. ). c. d. >. a. ). c. d. 7hich construction association *a$ors the 0"L4CIO6 0BC 0KC ,0@B ,BC The reading identi*ies IIII o* the most common *actors that can a**ect la)or producti$it%. ? ( =A 99 @igh la)or turno$er is an indication o*: poor weather materials pro)lems and late deli$eries general unrest and lac2 o* leadership impact o* changes

?. a. ). c. d. A. a. ). c. d.

0ccording to studies- which da% is the most producti$e da% o* the wee26 Monda% Tuesda% 7ednesda% Thursda% M4T4M suggests that: time goals proceed pre4determined methods methods must precede time determination measures must precede methods none o* the a)o$e

answers: =4)- 94d- >4c- ?4)- A4)

Lesson $- (ui):
See Blac2)oard- 0ssignments- 1ui//es.

Lesson 13: >u$contracting and Purchasing Introduction:

Most projects rel% *rom GA; to =::; o* a project to )e completed )% contracted su)s and suppliers. Thus- general contractors DKC3sE are no )etter than their su) contractors and suppliers. There are three important elements that must )e considered when tr%ing to manage a project through su) contractors and suppliers: D=E care*ull% pre45uali*% all su)Jsuppliers- D9E clearl% de*ine the scope o* wor2 and ensure that there is complete understanding )etween the KC and the su)Jsupplier as *ound in the =A point agreement- D>E see2 to esta)lish long term relationships that will )e mutuall% )ene*icial to the KC and the su)Jsupplier.

Lesson Objectives:
At the end of this lesson you should: =. .now how to pre45uali*% su) contractors and suppliers 9. Understand how su) contractors help to manage ris2 on a project >. Understand what re5uirements a su) contractor must complete )e*ore the% )egin wor2 ?. .now the 2e% components o* an% su) contract A. .now the =: step process *or purchasing materials- supplies and e5uipment F. .now the di**erence )etween charge4)ac2s and withholding pa%ments to su)s G. Understand to appro$eJdisappro$e o* su) contractors wor2

How to Proceed:
D=?E!ead and re$iew the discussion materials. D9E !ead and re$iew Construction +o)site Management- Chapter H- pg. 99A49A9. DSupplemental reading: Basic Construction Management- Construction Team Building and Trade Contractor Management- Chapter F- pg. (G4=:?.E D9HE0nswer the sel*4chec2 5uestions to e$aluate %our readiness to ta2e 5ui/ =A. D>:E7hen %ou *eel that %ou are read%- Ta2e 5ui/ =A.

#iscussion

aterials:

Conce+t 1: Pre7%uali!ying >u$contractors and >u++liers There are *our )asic considerations when pre45uali*%ing su)contractors and suppliers that %ou must ta2e into consideration. =. Does the sub contactor ha)e the back%round and eC+erience to +erfor& the work that you need the& to +erfor&* This is where %ou want to chec2 the su) out- as2 *or re*erences- go and loo2 at their wor2 and e$en $isit a current wor2 site o* theirs to see how the% conduct their wor2. Man%- man% pro)lems could ha$e )een pre$ented i* general contractors would ha$e per*ormed )etter )ac2ground chec2s on their su) contractors and suppliers. How financially stable is the sub contractor or su++lier* 0s2 *or a #VB report. #unn and Bradstreet D#VBE is a )usiness reporting agenc% that gi$es a credit score a)out the *inancial sta)ilit% o* companies. I* a su) contractor is hea$il% in de)t or is *acings a major lawsuit %ou would want to 2now a)out it )e*ore %ou contract with

9.

them. It is alwa%s a good practice to get a list o* their major suppliers and determine whether or not the% are current with their accounts pa%a)le. >. 'hat is the ca+acity of the co&+any* 7hat is the organi/ation li2e and how man% journe%men and apprentice wor2ers do the% ha$e6 7hat current wor2 ha$e the% alread% su) contracted *or6 7hat 2ind o* e5uipment do the% own and lease6 0re the% union or non4union6 0ll o* these 5uestions will help %ou determine whether or not the su) contractor has the capacit% Dmanpower and e5uipmentE to meet the demands o* %our project. 0 large su) contractor ma% ha$e man% emplo%ees )ut the% ma% alread% )e committed to another project. "an you work with this sub contractor or su++lier* There ma% )e personalit% clashes or wor2 ha)its that %ou 2now will just cause pro)lems down the road. I* %ou ha$e a potential con*lict or %ou are concerned a)out something it is )est to deal with it now)ecause it will alwa%s raise its ugl% head later in the project.

?.

Conce+t : 8e!ore a >u$ Contractor Can >tart Wor( Be*ore a su) contactor starts on a project there is a chec2list o* items that must )e re$iewed and made sure that all o* the paper wor2 is complete and turned into the main o**ice. @ere is an e&ample: X<] #r%wall was the low )idder *or the Trac% To%ota #ealership that %our compan% is the general contactor on. The 0I0 0?:= 0greement Between Contractor and Su)contractor has )een re$iewed and signed )% )oth parties. Is the su) contractor read% to start6 ,o8 There are conditions o* the su) contract that generall% must )e *ul*illed )e*ore the% start. @ere is a list o* common conditions: '$idence o* a signed and appro$ed contract '$idence o* proper insurance and lia)ilit% co$erage DM= to 9 million at '$idence o* state 7or2mans Comp co$erage '$idence o* proper local or state su) contractor licenses '$idence o* proper )onding re5uirements i* re5uired '$idence o* proper )usiness licenses

minimumE

Others ma% include: '$idence o* proper sa*et% training '$idence o* speci*ic re5uirements o* the general contract that ma% include #a$is4Bacon age rates- percentage o* minorit% la)orers etc. T%picall% a contract administrator will ma2e sure that all re5uired documents are in a *ile or Bon recordC )e*ore a su) contractor is cleared to )egin wor2. 0 similar chec2list ma% )e true *or appro$ed $endors who suppl% certain materials and products through the purchase order s%stem o* the compan%. Conce+t ": <ey Com+onents o! a >u$ Contract Agreement Page 9>? o* the te&t lists =A 2e% components that should )e *ound in e$er% su) contract agreement. These =A items- articles or areas not onl% outline the )asic pro$isions o* a contract

such as scope o* wor2- price and pa%ment )ut also identi*% the Bwhat i*C something happens during the course o* the contract. These =A articles are rooted in tried and tested contract law that is *ound in the 0I0 0 9:= Keneral Conditions o* the Contract in the 0ppendi& o* %our te&t. There are man% di**erent su) contract agreements that are used in the industr%. +ust ma2e sure that as %ou re$iew su) contractors that these =A articles are clearl% addressed. Conce+t ,: 4'+editing Purchase Irders Larger companies will ha$e purchasing departments that will e&pedite the ordering and deli$er% o* supplies- materials and e5uipment. D'5uipment generall% means rented or leased e5uipment.E There must )e a close coordination and wor2ing relationship with purchasing. "or smaller companies- the project manager or e$en the superintendent ma% )e re5uired to purchase and trac2 materials and e5uipment. 7e ha$e alread% discussed trac2ing purchase orders in pre$ious lessons. !emem)er that an% purchasing order s%stem must ha$e the *ollowing elements: =. 9. >. ?. A. F. G. (. H. =:. Identi*% correct items DmaterialJsuppliesJe5uipmentE and 5uantit% to )e ordered. Oeri*% items with *ield personnel. Clearl% identi*% 5uote price with $endor and all shipping and deli$er% costs. D"OBE *reight4on4)oard means that who e$er recei$es the shipment must pa% at time o* deli$er%. Order the materialJsuppliesJe5uipment using a standardi/ed *orm that lea$es a paper trail. Code the PO to tie to the correct jo) and )udget SOO code. Log order into a PO loggingJtrac2ing s%stem. Clearl% identi*% the cost at the time o* ordering. #o not wait *or month end in$oicing. DPeople *orget 5uotes and promises.E ,egotiate when the materialJsuppliesJe5uipment will )e deli$ered. ,egotiate how the materialJsuppliesJe5uipment will )e deli$ered and unloaded and where. D+o)site la%outE Coordinate deli$er% and unloading and placement with *ield personnel. Oeri*% deli$er% item count with purchase order. Clearl% identi*% who recei$ed the order and when. ,oti*% purchasing o* an% irregularities when comparing PO to actual deli$er%. 0ppro$e PO and deli$er% tic2et to )e paid during regular )illing c%cle.

Conce+t 3: >ee(ing Long7term Belationshi+s Success*ul contactors seem to wor2 with success*ul su) contactors and suppliers. B% de$eloping long term relationships with su)sJsuppliers- contractors get along )etter- are a)le to sol$e pro)lems easier- 2now how one another does )usiness- thus ma2es it easier *or one another. In a hard )id situation it is not alwa%s possi)le to pic2 %our su)sJsuppliers. There are man% residential contactors who do not tr% to hard )id e$er% jo) )ut will negotiate with a su)Jsupplier and sa%: C@e%8- i* %ou will pro$ide all o* the plum)ing *or me- at a certain price Dusuall% a unit priceE- )e on the jo) when I as2 %ou- )e customer oriented and ta2e care o* an% pro)lems immediatel% including warrant% wor2- I will: use %ou as m% e&clusi$e plum)er *or the ne&t %ear- and pa% %ou e$er% two wee2s.C #oes this sound li2e a win4win agreement6 0)solutel%8 Man% residential contractors will see2 such annual agreements )ecause it ma2es their li*e so much easier.

Self&Chec' (uestions Lesson $2:

=. a. ). c. d. 9. a. ). c. d. >. a. ). ?. a. ). '$aluating the capacit% o* a su) contractor means: their *inancial sta)ilit% their resources a$aila)le to per*orm *or %our project their e&perience in per*orming that t%pe o* wor2 whether or not %ou can wor2 with them The di**erence )etween su) contracts and purchase orders is: the amount o* mone% spent warranties la)or time o* deli$er% 0 )ac24charge and a withheld pa%ment is the same thing. true *alse

Indemni*ication clauses in su)contract agreements: identi*% the principle owners o* the su) contracting *irm hold the KC and owner harmless *rom lawsuits connected with the su)s wor2*orce or wor2 on the project c. ensure that the su) meets all 5ualit% standards d. ensure that all su)mittals are presented on time

A. 7hen creating a PO it is not necessar% to get the e&act price until the end o* the monthl% )illing period. a. true ). *alse answers: =4)- 94c- >4)- ?4)- A4)

Lesson $2 (ui):
See Blac2)oard- 0ssignments- 1ui//es.

Lesson 12: Besidential Quality Control- Ins+ections and Chec(lists Introduction:

0 cit% council had a di**icult decision to ma2e in their *air town. It seems that a pro)lem had de$eloped. The pro)lem was that a)o$e the cit% was a )eauti*ul $ista that o$erloo2ed the cit% and the surrounding area. People *rom around the region came to $iew the )eauti*ul sight. The pro)lem was that it was $er% steep and people got too close to the edge and )egan to *all o$er the ledge. The decision on the minds o* the cit% council was whether or not the% should put an am)ulance in the $alle% or a *ence at the top o* the $ista. This *a)le tells a great stor% o* 5ualit% management. Un*ortunatel% most o* us are accustomed to the idea o* Bputting an am)ulance in the $alle%C or what we call ins+ection. The line o* thin2ing sa%s that we should do our wor2 and when we thin2 it is done ha$e someone inspect it to see i* it is correct. This t%pe o* thin2ing Dinspection mentalit%E has shown that toda%3s )usinesses spend up to ?:; o* total production in inspection and re4wor2. Studies ha$e shown that i* )usinesses can *ocus on +re)ention. and putting a *ence at the top o* the $ista. it ma% cost =:; more in production than their current costs )ut the% are now doin% thin%s ri%ht the first ti&e2 I* current costs o* production are ?:; *or re!work- and the cost to do it ri%ht the first ti&e is =:;- then there is a potential sa$ings o* >:; in how we currentl% do wor2. This >:; sa$ings represents a signi*icant opportunit% in )usiness production- operations and pro*its.

Lesson Objectives:
At the end of this lesson you should: =. Understand the di**erence )etween inspection and pre$ention 9. Learn the ( step process *or implementing a T1M process in construction project management >. Learn how to recogni/e elements o* a poor 5ualit% s%stem ?. Learn #emings =? points o* a T1M s%stem A. Understand how to use 5ualit% control chec2lists F. Be a)le to identi*% 2e% research *acts *rom the ,ational 0ssociation o* @ome Builders concerning 5ualit% per*ormance statistics G. Understand how to measure 5ualit% per*romance

How to Proceed:
D=AE!ead and re$iew the discussion materials. D9E !ead and re$iew- Basic Construction Management- Chapter >- pg. ?A4AH- )ecome *amiliar with the 0ppendi&. pg. =?H4=H?. D>E 0nswer the sel*4chec2 5uestions to e$aluate %our readiness to ta2e 5ui/ =F. DAE 7hen %ou *eel that %ou are read%- Ta2e 5ui/ =F.

#iscussion

aterials:

Conce+t 1: A Practical A++roach to 5otal Quality Management C5QMD in Construction Project Management 7e want to re4thin2 how we do )usiness and change our *ocus *rom inspection to pre$ention. 7e do this )% esta)lishing re5uirements )e*ore we e$er start a wor2 process. This is what a 5ualit% control chec2list is- a list o* pre$enti$e re5uirements.

Total 1ualit% Management can help sol$e pro)lems or help de*ine a new wa% o* per*orming a wor2 process. Consider the *ollowing case stud% and the eight steps as this residential construction compan% loo2s at the cost o* not ha$ing houses read% to pass ?4wa% inspection D*raming- electrical- plum)ing- heatingE each month. >te+ 1: =Ca&+le: ;e!ine the +ro$lem to $e sol=ed or the starting +oint o! a new +rocess) >tate the re%uirements o! what you want to ha=e ha++en) 'e see& to be ha)in% too &any B!way re!ins+ections for our new ho&es2 !e5uirements: =::; o* our ?4wa% inspections pass the *irst time. This is called Jero defects. ?ather data on just how se=ere the +ro$lem is A re)iew of the F four!way ins+ections that we had last &onth showed that I had to ha)e re!ins+ections2 Calculate the +rice o! non7con!ormance CPI*CD) 5his is the cost to do it o=er and re7wor() A)era%e days lost for re!ins+ection: I days Finance costs: H<F +er day C I K H4:E 1ther schedulin% +roble&s K H4EE 1wners dissatisfaction K H4EE Increased PM ti&e:I hours C HIE K H6IE "ost of &aterials and labor to fiC K H4EE ,otal P1A" K HL<E (cost last &onth I C HL<EKH<.FIE ! if continues for one year at this rate could be HB<.:EE) >te+ ,: =Ca&+le: Be=iew current wor( +rocess !low) 42 62 <2 B2 I2 F2 L2 :2 52 4E2 442 462 4<2 4B2 4I2 ha)e %eneral +lans and s+ecs re)iewed and bid by sub -" and sub a%ree on +rice -" calls sub to +erfor& work sub starts work sub finishes sta%e of work and says it is ready for ins+ection -" calls city for ins+ection Ins+ector co&es +asses or fails if fails ! -" calls sub sub returns to fiC +roble& -" )isits to look at fiC -" calls city to re!ins+ect city co&es and re!ins+ect ins+ector +asses or fails if fails re+eat ste+s 5 ! 4B 8rainstorm ways to +re=ent mista(es in the !uture

>te+ : =Ca&+le: >te+ ": =Ca&+le:

>te+ 3:

=Ca&+le: (see chan%es in bold) $. Insure that !eneral plans and specs include critical points of inspection ) at plan review1 review with city@inspector critical points that they loo' for in the inspection1 include chan!es in plan. ") Create Auality chec'list for -&way inspection ?. Plans re)iewed and bid by sub 3) BC and sub a!ree on price1 si!n contract with Auality chec'list and schedule F. -" calls sub to +erfor& work G. sub starts work :) sub finishes sta!e of wor' and says it is ready for inspection1 reviews and chec's Auality chec'list 6) BC reviews Auality chec'list with sub =:. -" calls city for ins+ection 11) Inspector co"es passes or fails1 "eets with BC and sub1 "a'es any correction on the spot =9. if fails ! -" calls sub =>. sub returns to fiC +roble& =?. -" )isits to look at fiC =A. -" calls city to re!ins+ect =F. city co&es and re!ins+ect =G. ins+ector +asses or fails =(. if fails re+eat ste+s 5 ! 4: >te+ 2: Calculate the Price o! Con!ormance CPICD to im+lement new changes) 5his is the cost to do it right the !irst time) =Ca&+le: "loser +lan re)iew for critical +oints: 4 hour C HIE K HIE Quality control checklist: 4 hour C HIE K HIE 7e)iew quality control checklist with sub before ins+ection: 4 hour C HIE K HIE Meet with ins+ector: 4 hour C HIE K HIE ,otal P1" K H6EE >te+ 0: =Ca&+le: >te+ :: =Ca&+le: Im+lement Changes I&+le&ent the chan%es described in ste+ I2 In)ol)e &e&bers of the tea& that are +layers in the +rocess2 Measure and 5rac( Mour Besults on a Monthly 8asis ,rack and &easure your results on a chart that e)ery one can see2 how the +ro%ress and the sa)in% to the co&+any2 -i)e credit to those &e&bers of the tea& who are &akin% a difference in the +rocess such as your sub contractor. contractor ad&inistrator and the ho&e desi%ner and s+ecifier2

Four7Way Ins+ections #e*ects F Month + PO,C Total PO,C MG>: M?->(:

A A ? ? > > 9 = : : :

" M 0 M + + 0 S O , #

MG>: MG>: MG>: MG>: MG>: MG>: MG>: MG>: MG>: MG>: MG>:

M>-FA: M>-FA: M9-H9: M9-H9: M9-=H: M9-=H: M=-?F: MG>: M: M: M:

B% Septem)er the compan% has reached its goal o* /ero de*ects.

Self&Chec' (uestions Lesson $3:

=. a. ). c. d. T1M is )ased on the principle o*: inspection pre$ention 5ualit% chec2lists re4wor2

9. The national statistic according to ,0@B *or the num)er o* call)ac2s to do re4wor2 on completed homes in the U.S. has risen: a. A; ). =:; c. 9A; d. A:; >. The superintendent that does not 2now how to recogni/e high 5ualit% in plum)ingelectrical- heating and air conditioning- concrete or *inish carpentr% is reall% not 5uali*ied) a. true ). *alse ?. a. ). c. d. e. A. a. ). One compan% implemented a P!I#' program that: lets emplo%ees 2now how important the% are controls emplo%ee pride and sel* interest helps emplo%ees ta2e personal responsi)ilit% all the a)o$e a and c It is )etter to rel% on pu)lic inspectors than on in4house *ormal 5ualit% control s%stems. true *alse

answers: =4)- 94c- >4a- ?4e- A4)

Lesson $3 (ui):
See Blac2)oard- 0ssignments- 1ui//es.

Lesson 10: Commercial Quality Control and 5esting Introduction:

1ualit% control D1CE includes ensuring that the 5ualit% re5uirements in the documents are met. This ma% )e per*ormed )% the contractor- the owner or representati$e or )% an outside testing agenc%. 1ualit% is also measured another wa%L the )uilding inspection department. Building inspectors are loo2ing to determine i* the project meets code re5uirements and the appro$ed set o* drawings and speci*ications.

Lesson Objectives:
At the end of this lesson you should: =. Understand the di**erence )etween 1C and T1M 9. Learn how to )etter manage )uilding inspectors >. Understand the role o* outside testing agencies ?. Understand what )uilding inspectors responsi)ilit% reall% is A. .now where to *ind 5ualit% re5uirements in the project manual F. Learn the primar% )uilding code agencies in the United States

How to Proceed:
D=FE!ead and re$iew the discussion materials. D9E !ead and re$iew- Construction +o)site Management- Chapter =:- pg. 9A>49F:- 9F949GA. D>E 0nswer the sel*4chec2 5uestions to e$aluate %our readiness to ta2e 5ui/ =G. DFE 7hen %ou *eel that %ou are read%- Ta2e 5ui/ =G.

#iscussion

aterials:

Conce+t 1: ;ealing with Ins+ectors ,ow that %ou 2now something a)out negotiating s2ills and understanding personalit% t%pes- %ou are )etter prepared to wor2 with permitting municipalities and )uilding inspectors. <ou should get to 2now the )asic attitude and culture o* the permit agenc% that %ou are wor2ing in. Some are $er% help*ul and considerate and others are just the opposite. There are contractors who will add mone% to their estimate i* the% are going to do wor2 in certain municipalities just )ecause the% are slow and di**icult to deal with. Once %ou 2now their culture- tal2 to other contractors a)out the inspectors that inspectors seem to )e )etter to wor2 with than others. Sometimes %ou can re5uest a certain inspector. Be prepared )% 2nowing what certain inspectors are li2e to wor2 with and what it is that the% usuall% loo2 *or. It is generall% not *a$ora)le to ha$e an inspector do an inspection without a representati$e o* the contractor to accompan% them. The contractor wants to )uild a relationship e$er% time that an inspector comes on the site. Be*ore %ou e$er call *or an inspection %ou should ha$e %our own inspection. There are two *ocuses that %ou should ha$e. The *irst is a 5ualit% control chec2list. Second- is to re$iew the con*ormance o* the appro$ed set o* drawings and speci*ications *rom the municipalit%. The inspector is not there to direct %our wor2. The% will come to determine i* this phase o* the project meets the go$erning code and complies with certain re5uests and mar2ings on the appro$ed drawings. <ou should alwa%s arri$e at the site )e*ore the inspector and )e prepared8 It ma% also )e help*ul to ha$e wor2ers standing )% just in case the inspector is

not going to pass some certain detail. The wor2ers can immediatel% correct the pro)lem and )e*ore the inspector lea$es the% ma% appro$e the correction. Inspectors see a lot o* projects e$er% da%. I* the contractor does 5ualit% wor2 and gains a reputation *or 5ualit%- inspectors ma% not alwa%s loo2 at e$er% detail )ecause the% 2now %our compan% and the 5ualit% o* wor2 that %ou do. Conce+t : Anderstanding 5esting Agencies @ow does an owner or their representati$e DarchitectE 2now i* all o* the 5ualit% re5uirements that are in the project manual are what is called in the industr% B)uilt to specC. This is where 5ualit% control D1CE comes in. Unli2e some aspects o* residential construction- meeting 5ualit% control standards is ta2en $er% seriousl% in commercial and industrial construction and compliance is care*ull% measured. In *act- man% projects re5uire that independent testing agencies )e on site to watch and appro$e certain segments o* the wor2 )e*ore the contractor can proceed. The owner should pa% these testing agencies. There ha$e )een some circumstances where the contractor controlled the testing. This is li2e the *o& watching the hen house. 0n e&ample o* this was the #en$er airport. Because o* the *ast trac2 nature o* the airport- the contractor conducted some testing and pro)lems were later disco$ered. Large- $er% e&pensi$e sections o* a runwa% had to )e demolished and replaced. On large projects it is $er% common to ha$e man% di**erent testing agencies at the jo)site. On smaller projects the contractor ma% )e re5uired to show proo* o* e$idence that 1C re5uirements were met. 7hen a project manager is preparing to start a new project- the% also must )egin to clearl% identi*% and trac2 the 5ualit% re5uirements that are *ound in the project manual.

Self&Chec' (uestions Lesson $8:

=. Philip Cros)%- author o* 1ualit% is *ree promotes that 5ualit% is something that is measura)le in term o* costs. a. true ). *alse 9. a. ). c. d. e. >. a. ). c. d. e. *. g. The primar% o)jecti$e o* 1C is to: a$oid duplication o* e**ort assure that e$er% 5ualit% aspect is co$ered pro$ide documentation o* materials- installations and test all the a)o$e a and c onl% 0 )uilding inspector can issue a contractor which o* the *ollowing documents: )uilding permit jo)site inspection card correction notice stop wor2 notice certi*icate o* occupanc% all the a)o$e a and ) onl%

?. It is not wise to alwa%s ha$e a representati$e *rom the contractor to accompan% the inspectors )ut to let them inspect on their own.

a. ).

true *alse

A. 0ccording to the reading- a list o* standards and a))re$iations *or manu*acturersassociations- institutions and standards are *ound in which di$ision and section o* the project manual6 a. #i$ =- ::(:: ). #i$ =- :=G:: c. #i$ (- :=F:: d. none o* the a)o$e answers: =4a- 94d- >4*- ?4)- A4a

Lesson $8 (ui):
See Blac2)oard- 0ssignments- 1ui//es.

Lesson 1:: Contract Changes and Claims Introduction:

There is no 5uestion that things ne$er 5uite turn out the wa% that %ou anticipate in an% construction project. 7hen the =HGF Summer Ol%mpics were awarded to Montreal- Canadaplans were alread% mo$ing ahead *or the Ol%mpic $enues and especiall% the main stadium pictured )elow.

I* something could go wrong it did. The original )udget *or all o* the $enues was a)out M9?: million. The design and speci*ications were late in getting out to )id. Because the% were so late man% contractors would onl% wor2 on at time plus material )asis. The design was new and included materials and techni5ues that had not )een done )e*ore. This caused a major producti$it% pro)lem. There was a la)or stri2e. There was alread% a shortage o* la)or and s2illed trades in the region. The drawings were all in metric and man% o* the su) contractors came *rom the United States and could not read the drawings. The drawings had to )e redone in *eet and inches. It was cold and )itter the winter just )e*ore the Ol%mpics. The temporar% tenting and heating costs per da% during that winter e&ceeded M?:-::: per da%. Because o* the late start- contractors were wor2ing on top o* one another. 0t one point there were (: tower cranes in operation on the stadium at one time. Montreal was not going to )e em)arrassed in *ront o* the world. The% *inished the $enues on time and the games went *orward. Un*ortunatel% the *inal price tag was a staggering M=.> )illion dollars8 There di**erentl% were some changes and claims on this project.

Lesson Objectives:
At the end of this lesson you should: =. Understand how change order mar2ups are calculated and distri)uted 9. Learn the acti$ities that ma% cause change orders >. Learn what change orders can e**ect ?. Learn )asic terminolog% used in changes and claims A. Learn the change order process

F.

!e$iew )asic contract law as *ound in the 0I0 09:=- Keneral Conditions o* the Contract

How to Proceed:
D=GE!ead and re$iew the discussion materials. D9E !ead and re$iew- Construction +o)site Management- Chapter =>- pg. >9A4>?A. D>E 0nswer the sel*4chec2 5uestions to e$aluate %our readiness to ta2e 5ui/ =(. DGE 7hen %ou *eel that %ou are read%- Ta2e 5ui/ =(.

#iscussion
Conce+t 1:

aterials:

Change Irder Mar(u+s

There are a *ew things that should )e considered a)out change orders. "irst- change orders are usuall% addressed in the )id documents. The )id documents will identi*% e&actl% how much a contractor or su) contractor can charge *or a change order. This is alwa%s well understood well )e*ore the project is )id. "or e&ample: in the )idding instruction section o* the project manual it will state that in the case o* the change order the contractor will )e allowed a =A; mar2up. This is generall% understood as a mar2up and not a pro*it margin. It ma% *urther sa% that i* the general contractor DKCE uses their own *orces then all =A; will then go to the KC. I* the KC is using a su) contractor then the total mar2up pro*it is =A; with =:; going to the su) contractor and A; going to the KC. I* there was a M>A-::: )ase amount appro$ed change order and there was a su) contractor in$ol$ed then: M>A-::: )ase amount & =.=AT M?:-9A:- thus the =A; mar2up is MA-9A: DM?:-9A:4M>A-:::E I* =:; goes to the su) and A; to the KC then: the su) would get M>-A:: and the CK would get M=-GA:. DPer*ormed )% di$iding )% thirds: MA-9A:J>TM=-GA:E #on3t *orget that change orders can also )e a negati$e num)er. I* portions o* the wor2 are ta2en awa% a negati$e change order can )e written.

Self&Chec' (uestions Lesson $;:

=. a. ). 9. a. ). c. d. >. a. ). c. d. There is no such thing as a negati$e change order: true *alse 0 claim is: a signed change order a PCO an unresol$ed change re5uest means and methods The disco$er% o* as)estos would: )e an e&ample o* code re$isions stop that phase o* the wor2 until the contractor ta2es care o* it )e an e&ample o* $endor coordination stop that phase o* the wor2 until the owner ta2es care o* it

?.

0 change order is an adjustment to the contract amount onl%. a. true ). *alse

A. 0 change order will ha$e no impact on li5uidated damages that ma% )e assessed to the contractor. a. true ). *alse answers: =4)- 94c- >4d- ?4)- A4)

Lesson $; (ui):
See Blac2)oard- 0ssignments- 1ui//es.

Lesson 16: Contract Progress Payments Introduction:

It has )een said that construction is the onl% )usiness where %ou ha$e to Pwor2 harder than an% other pro*ession and then )eg to get paid3. I don3t 2now i* that is entirel% true )ut there is indeed a grueling process that we o*ten go through to get paid. In this lesson %ou will learn a)out the esta)lished traditions o* re5uesting and recei$ing progress pa%ments.

Lesson Objectives:
At the end of this lesson you should: =. .now how to calculate and complete a pa%ment application 9. Learn what retention is *or and how it is calculated >. Learn how a sample pa%ment application calendar wor2s

How to Proceed:
D=(E!ead and re$iew the discussion materials. D9E !ead and re$iew- Construction +o)site Management- Chapter =?- pg. >?G4>?H- >F(4>G(. D>E 0nswer the sel*4chec2 5uestions to e$aluate %our readiness to ta2e 5ui/ =H. D(E 7hen %ou *eel that %ou are read%- Ta2e 5ui/ =H.

#iscussion

aterials:

Conce+t 1: Payment A++lications Calculations The pa% application process that is generall% practiced in commercial construction is an e&cellent wa% to trac2 e&actl% where the project is at an% gi$en time. This method ta2es in to account appro$ed change orders- retainage and past pa%ments made. Brie*l% re$iew the 0I0 documents KG:9 and KG:> as the% are *ound in the reading. Let3s wal2 through the calculations *or a pa%ment application. Care*ull% re$iew the sample Pa% 0pplication *ound on page >G> o* the reading. ,otice the nine line items that need to )e completed and the instructions *or calculating some o* the line items. 0lso that at the )ottom there is a change order summar%. Consider the *ollowing e&ample: Contract amount K1-...-...- retainage is 31 total) Pa%ment Q=. Pa%ment Q9. 9:; completed- Q= change order DCOE appro$ed *or MA-::: >F; completed- CO Q9 *or MG-A::- CO Q> *or >-F::

Pa%ment Q>. A9; completed- CO Q?-A-F totaling M>?-F:: Ki$en this in*ormation %ou can now calculate all nine line items *ound in the sample on page >G>. <ou need *our items to calculate a monthl% pa% application. D=E original contact amount- D9E project4to4date appro$ed change orders- D>E project4to4date percentage o* completion- D?E and the amount o* re5uired retainage.

>te+ Acti=ity ,otal "o&+leted =. 9. >. ?. A. F. G. (. H. Contract Sum Change Order Contract sum to date D=S9E Total completed !etainage DA; totalE

A++lication !or Payment R1 R 6EM <FM M=-:::-::: MA-::: M=-::A-::: M9:=-::: M=:-:A: M=-:::-::: M=F-=:: M=-:=F-=:: M>FA-GHF M=(-9(H M>?G-A:F M=H:-HA: M=AF-AAF MFF(-AH>

R" I6M M=-:::-::: MA:-G:: M=-:A:-G:: MA?F->F? M9G->=( MA=H-:?A M>?G-A:F M=G=-A>H MA>=-FA?

Total earned less retainage D? less AE M=H:-HA: Less pre$ious certi*icate Current pa%ment Balance to *inish D> less FE M: M=H:-HA: M(=?-:A:

Ta2e a *ew minutes and do the math to ma2e sure that %ou understand how each num)er was calculated. Most construction documents allow *or material that is deli$ered to the jo)site and stored properl% or stored in an o**4site- insured and )onded warehouse ma% )e su)mitted as part o* a pa%ment application. Sometimes there is a di**erent retention *or materials than wor2 per*ormed Dsee note on KG:9- num)er A retainage.E 0lso notice that the KG:> is a roll4up sheet that has the details o* each SOO )udget line item. Luc2il% %ou will )e happ% to 2now that Prolog does an e&cellent jo) in preparing these e&act *orms. <ou will )e gi$en similar in*ormation and as2ed to calculate three pa% applications *or )oth 5ui//es. Conce+t : A >am+le Pay A++lication Calendar On larger projects the pa% application calendar can )e a little con*using. Let3s suppose that a project start on the =(th da% o* a certain month. The pa% calendar process would loo2 li2e this: #ate o* Month #a% =( #a% = #a% =A Dmonth =E started project Dmonth 9E no applications were *iled )ecause it was out side the pa%ment c%cle pa% application Q= on 0I0 KG:94> is due *rom su) contractorsJsuppliers to the KC *or re$iew and appro$al

#a% 9: #a% 9A #a% = #a% =4A

pa% application Q= on 0I0 KG:94> is due *rom the KC to the architect *or re$iew and appro$al pa% application Q= is appro$ed and gi$en to the owner *or pa%ment processing and chec2 preparation Dmonth >E Owner ma2es pa%ment Q = to the KC KC ma2es pa%ment Q= to the su) contractorsJsuppliers

Process be%ins a%ainN #a% =A pa% application Q 9 on 0I0 KG:94> is due *rom su) contractorsJsuppliers to the KC *or re$iew and appro$al

7hat happens when a su) contractor *orgets to turn their application *or pa%ment in on time6 The% must wait until ne&t month8 The% will onl% *orget once8

Self&Chec' (uestions Lesson $<:

The *ollowing case stud% will )e used *or )oth 5ui//es. <ou are gi$en a new project that started on the =Hth da% o* the month. The contract amount is MA::-:::. The retention amount is A; total- month =- MG-::: in change orders are appro$ed- month 9- M?-::: in change orders are appro$ed- in month >- M(-::: in change orders are appro$ed. The *irst pa% application project4 to4date percentage o* completion is 9A;- application Q9- ?:;- and application Q> is GA;. Complete the )lan2s to help answer some o* the 5uestions. This same case stud% will )e used *or the 5ui/. >te+ Acti=ity ,otal "o&+leted =. Contract Sum 9. Change Order >. Contract sum to date D=S9E ?. Total completed A. !etainage DA; totalE R1 6IM MA::-::: M M M M R BEM MA::-::: M M M M M M M M R" LIM MA::-::: M M M M M M M M

F. Total earned less retainage D? less AE M G. Less pre$ious certi*icate (. Current pa%ment H. Balance to *inish D> less FE M M M

=. a. ). c. d) 9. a. ). c) d. >. a. $) c. d.

The retention amount *or pa% application Q= is: MA MA-::: M9-A:: K2-""0 The )alance not paid on the project a*ter pa% application Q9 is MA::-::: M>(F-A(G K"12-: . M=?H-9=9 The total o* change orders project4to4date a*ter pa%ment Q9 is: MG-::: K11-... M=H-::: M9A-:::

?. 0ssuming that there is >: da%s per calendar month- *rom the *irst da% o* the project until the KC gets their *irst pa%chec2 will )e how man% da%s6 a. =A da%s ). >: da%s c) , days d. can not )e determined A. 7hen a pa%ment *or a project is not made until the project is turned o$er to the ownerthis is called: a. retainage $) turn(ey c. 0I0 KG:9 d. 0 good deal 0nswers: =4d- 94c- >4)- ?4c- A4)

Lesson .: Project Closeout Introduction:

It is $er% important to determine what the construction documents re5uire *or project closeout. Begin the closeout o* the project the da% that %ou start the project8 Usuall% section =G:: o* #i$ision = will identi*% those re5uirements. I once sat on HIEE.EEE of a %eneral contractor for three &onths because the -" could not %et their closeout docu&ents in so that I could release their retention a&ount2 ,heir +rofit a&ount was less than H6EE.EEE2 It was unbelie)ableO 0 $er% good practice is to tie closeout documents to the monthl% pa%ment application process. 0 good e&ample is that i* the closeout documents re5uire as4)uilt or record drawings then as the KC- re5uire updated as4)uilt drawings *or each pa%ment application. I* the documents re5uire warrant% and guarantee in*ormation on e5uipment and )uilding s%stems there is no reason wh% %ou ha$e to wait until the end o* the project to collect those items *rom su) contractors. 0 good T1M approach would )e to re5uire those items with the pa%ment application process. In this lesson there is also a discussion a)out ris2 management and construction pro)lem sol$ing. This should ser$e as help in identi*%ing and a$oiding pro)lems so that the closeout process )ecomes a smooth transition and not a 9?4G nightmare.

Lesson Objectives:
At the end of this lesson you should: =. Understand the two primar% areas o* ris2 management in project construction management 9. Be a)le to identi*% common project pro)lems and F steps to sol$e them >. Understand the general re5uirements *or commercial project closeout ?. Understand the closeout process A. Understand terminolog% related to project closeout F. Be a)le to conduct a *inancial resolution o* a project G.

How to Proceed:
D=HE!ead and re$iew the discussion materials. D9E !ead and re$iew- Construction +o)site Management- Chapter =A- pg. >GH4>HH. D>E 0nswer the sel*4chec2 5uestions to e$aluate %our readiness to ta2e 5ui/ 9:. DHE 7hen %ou *eel that %ou are read%- Ta2e 5ui/ 9:.

#iscussion

aterials:

Conce+t 1: Bis( Management Project management is mostl% a)out managing ris2 and sol$ing pro)lems. There are two primar% ris2 areas in construction. The% are contractual agreements and *inancial challenges D=F in allE. Contractual 0greements include meeting re5uirements o* contract documents Ddrawings and speci*icationsE. The% also include the *ollowing: =. OwnerJContractor ris2 )alance 9. Time and scheduling >. Cost and )udget

?. 1ualit% A. O$erall Client '&pectations F. Sa*et% The second area is *inancial. This includes completing wor2 to ensure pro*ita)ilit% *or the compan% and su)contract administration. This also includes the *ollowings: =. Material purchases 9. '5uipment purchase and rental >. La)or relations and producti$it% ?. Keneral re5uirements A. Change ordersJPotential change orders F. Miscalculations o* estimated costs G. Un2nown conditions not included in estimate (. Pa%ment applications and retention H. Project closeout =:. Insurance Managing ris2 on an% project should include the regular re$iew o* these items and an assessment o* the project. Conce+t : Project Pro$lems and >ol=ing 5hem The *ollowing are 99 o* the more common reasons wh% projects ha$e pro)lems. =. Poor communication and misunderstandings 9. Oer)al DundocumentedE contracts and agreements >. Unclear or misunderstood contracts or other e&pectations ?. Personalit% t%pes and poor negotiating A. La)or Pool Dtight or uns2illedE F. Su) contract completion Dcapacit%- commitment- too )us%- s2ill- 2nowledge- attitudeE G. Material a$aila)ilit% (. '5uipment a$aila)ilit% H. 'conomics and changing mar2et costs Dsuppl% and demandE =:. Poor accountingJmanagement s%stem that does not capture true jo) cost accounting ==. Poor management Dlac2 o* attention- commitment- 2nowledge- s2ill- attitudeE =9. Project managers pushed )e%ond their span o* control Dtoo man% jo)s- not enough timeE =>. 7eather =?. Contractors tr%ing to ma2e up mone% lost on past projects =A. Litigation o* other projects =F. Past unresol$ed su) contractors and clients causing pro)lems on current projects =G. Propert% neigh)ors =(. Building permits- /oning- inspections- inspectors- code interpretations =H. La)or unions- la)or agreements 9:. Oandalism and arson 9=. Miscalculations o* estimated costs 99. Conditions not included in estimate I* pro)lems can )e identi*ied earl% the% can )e more easil% sol$ed. The *ollowing e&pands on Lesson =G a)out practicing Total 1ualit% Management to sol$e pro)lems. @ere is a simple %et

power*ul suggestion *or sol$ing pro)lems on a construction project. Consider the *ollowing si& steps: =. #e*ine the situation- di$ide it in to eas% to understand parts a. clearl% descri)e the pro)lem ). "ocus on data- not cause c. Speci*% noncon*ormance- not )lame d. determine si/e in num)ers or PO,C Dprice o* noncon*ormanceE- not in $ague terms Plan the Solution a. 7ho needs to )e in$ol$ed6 ). 7hat measurement will show us that correcti$e action has )een e**ecti$e6 "i& a. ). c. Temporar% step to 2eep going and to patch the process Tr% to spend as little as possi)le until %ou 2now the root cause This is not a permanent solution

9.

>.

?.

Identi*% the !oot Causes a. !e$iew re5uirements ). Loo2 *or threads o* similarit%- when- where- what e5uipment- *acilities- personnel in$ol$ed c. Loo2 *or opportunities *or error- duplication- non4standardi/ed procedures- chance *or o$ersight or mista2e- unclear re5uirements d. Use Cause and '**ect #iagram or Pareto anal%sis Ta2e Correcti$e 0ction Dput pre$ention in placeE a. Kenerate possi)le correcti$e actions- one or more causes- man% possi)le actions *or each ). Select the correcti$e action- cost- comple&it%- time- mista2e proo*ing c. Plan and communicate the correcti$e action- customers- suppliers- )udgetschedule- training- measurement- documentation- timing DKantt and Pert chartsE d. Implement the correcti$e action- $eri*% actions that ha$e )een ta2en placedocument and measure per*ormance '$aluate and "ollow4up a. '$aluate- according to the measure o* completion ). "ollow4up- audits- sur$e%s- in*ormal re$iews c. Pre$enting pro)lems- wor2 with customers and suppliers- gain process 2nowledge- proo* processes- operate and manage with /ero de*ects per*ormance standard

A.

F.

Self&Chec' (uestions Lesson %=:

=. Su)stantial completion is a. when the )uilding is completel% *inished ). when the )uilding is almost *inished e&cept *or minor items so that the owner can occup% the )uilding c. when the punch list ends and the warrant% period )egins

d. ) and c 9. Project close4out documents does not include: a. spare parts and e&tra materials ). warranties and guarantees c. permanent c%linders and re42e%ing d. issuing close4out change orders >. The two top pro)lems *aced in project management are: a. Poor communication and misunderstandings- Oer)al DundocumentedE contracts and agreements ). Unclear or misunderstood contracts or other e&pectations- Personalit% t%pes and poor negotiating c. La)or Pool Dtight or uns2illedE- Su) contract completion Dcapacit%- commitment- too )us%- s2ill- 2nowledge- attitudeE d. ,one o* the a)o$e ?. 0 listing o* close4out documents and other re5uirements are *ound in: a. 0I0 09:= Keneral Conditions o* the Contract ). #i$ision =- =G:: c. 0I0 0=:=- the 0greement d. Supplementar% Conditions 3) Spare parts and e&tra materials )elong to the: a. contractor ). su) contractor c. owner d. architect e. a and ) onl%

0nswers: =4d- 94d- >4a- ?4)- A4c

Lesson %= (ui):
See Blac2)oard- 0ssignments- 1ui//es.

CM ,13 Assignment R

The Super Bridge 0nal%sis

Care*ull% $iew the $ideo o* the Clar2 Bridge constructed in 0lton- Illinois. Ta2e care*ul notes. D=E 7rite a minimum o* A pages Ddou)le4spacedE detailing %our o)ser$ations o* the *ollowing items: =. 9. >. ?. A. F. G. (. H. =:. ==. =9. =>. =?. =A. =F. =G. time and schedule cost control 5ualit% and inspections ris2 management relationship with sta2eholders sa*et% customer satis*action pro)lem sol$ing jo)site la%out and control producti$it% total 5ualit% management project team communications and relations computeri/ed project management project planning and meetings negotiations la)or relations changes and claims

D9E Complete a Project !is2 0ssessment DS7OTE o* the project at the )eginning. Then descri)e the actual outcomes o* the project as compared to the plan. Brie*l% descri)e what %ou learned *rom the e&perience. -radin%: 46 +oints for describin% the 4L )iew+oints of the +ro(ect2 I +oints for the Pro(ect 7isk Analysis and outco&es2 6 +oints for describin% what you learned2 4 +oint for style. +resentation and %ra&&ar2

CM ,13 Assignment "

Carlisle- P0 Construction Project Budget and +o) Cost Model

Krading: G Points *or Part =- =9 Points *or Part 9- = Point *or o$erall presentation T 9: points "l%ing +- Inc. is a M>.A )illion retail *uel distri)utor. To *ind out more a)out the compan% go to www.*l%ingj.com. In this *irst part %ou are the construction owner representati$e *or a "l%ing +. This new *acilit% is going to sit on =A acres in Carlisle- Penns%l$ania. The *acilit% is a =H-::: S"- single le$el- wood *rame- and )ric2 $eneer structure. There are *i$e )idders on this project. Open the *ile called "arlise2Cls to re$iew the )id )rea2down. 0ll )idders were re5uired to su)mit their )ids showing how their num)ers were distri)uted throughout the CSI codes. Part =: SOO '$aluation

Answer the !ollowing 0 %uestions)

=. 9. 7ho is the apparent lowest )idder6 D,ote Cum)erland3s actual )idE 7hat is their )id price6

1uestions >4G appl% to onl% the apparent low )idder. >. Prepare an e&cel spreadsheet showing D=E the )udgeted dollars *or each di$ision- D9E showing the di$ision percentage as compared to the total )id price. D'&ample: I* di$ision =F- electrical- was MA:-::: and the total )id price *or all di$isions was M9.A million then di$ision =F would )e 9.::; o* the total.E 7hich di$isions ha$e o$er =:; o* the total )id price6 DThese are higher ris2 areas.E 0re there an% di$isions or line items that loo2 suspicious6 7hich di$isions ha$e )etween A to =:; o* the total )id price6 DThese are smaller ris2 areas )ut still need to )e monitored.E 7hat is the projected percentage o* pro*it6 G. I* %ou com)ine the projected percentage o* pro*it and the percentage o* general re5uirements- what is the total percentage o* the two6 7hat is the percentage i* %ou deduct allowances6

?. A. F.

Part 9: +o) Cost Model In this second part %ou are assuming the role o* project manager *or the apparent low )idder Dgeneral contractorE. One o* the *irst things that %ou do is to B)u% outC the project. That means that %ou re$iew all o* the )ids and )egin to write contracts- issue PO3s- and la)or tic2ets. The *ollowing is a list o* %our general jo) cost ledger o* %our acti$ities *or the *irst >: da%s. The notice to proceed is dated +une =- 9XXX. The 0I0 0=:= is signed on that date. <our acti$it% )egins on that date. The prime contract DPCE is the same amount as the low )idder price. This is jo) =F *or %ear 9XXX. So do %ou remem)er our coding method6 Let3s add a *ew more pieces. "irst the coding can )e di$ided into Income and OutKo. A) 5here are three Income codes:

P" @ Pri&e "ontract- Between the owner and the general contractor "1 @ "han%e 1rder- change )etween owner and general contractor 1I @ 1ther Inco&e- other income that can come *rom a $ariet% or sources that do not *it into PC or CO. 8) 5here are !our Iut?I codes:

" ! ub "ontract- <ou can write a su) contract. P1 ! Purchase 1rder- <ou can write a purchase order *or generall% materials or purchasing or renting e5uipment. # ! #abor- <ou can hire %our own emplo%ees or temporar% help to per*orm la)or on the project. 1 ! 1ther- is *or other un*oreseen *inancial purchases or commitments that don3t come through the a)o$e three methods. This is reall% a catch4all *or mista2es made in the su) contracting and purchasing s%stem. The onl% addition is to add a log num)er so that it is eas% to trac2. "or e&ample- instead o* just putting SC we would put SC=- meaning su)contract log num)er =. <ou could then go to that log and loo2 at num)er = to see an% details. I* %ou need to re$iew some o* the pre$ious lessons go ahead and do so. C) 5here are two Management codes:

P"1 ! Potential "han%e 1rder =,F ! =sti&ate to Finish DThese are used as a management tools to )etter estimate actual committed costs.E To )etter help %ou understand the general ledger we ha$e di$ided them it into general ledger su) logs. The su) logs loo2 li2e this: ;) 5here are three I*CIM4 LI?>:

P" @ Pri&e "ontract #1"1 @ "han%e 1rder #11I @ 1ther Inco&e #14) 5here are !our IA5?I LI?>:

" ! ub "ontract #1P1 ! Purchase 1rder #1# @ #abor #11 @ 1ther =C+ense #1F) 5here are two Management LI?>:

P"1 ! Potential "han%e 1rder =,F ! =sti&ate to Finish Asing what you learned in +ast lessons- +lace the log in!ormation into the jo$ cost model and calculate the totals using an e'cel s+readsheet)
Project Logs !or Carlisle- PA @une- 1 SSS T @uly 1- SSS

I*CIM4 LI?>: PC T Prime Contract LI? 9ob P date :=F FJ= /ear "ode Ao2 9XXX PC = " I no code H a&ount Aa&e Denter amountE "l%ing +

"1 @ "han%e 1rder #19ob P date :=F FJ9A /ear "ode Ao2 9XXX CO = " I 9==: H a&ount M(-A:: Aa&e "l%ing +

1I @ 1ther Inco&e #19ob P date none /ear "ode Ao2 " I H a&ount Aa&e

IA5?I LI?>: " ! ub "ontract #19ob P date :=F FJ9 /ear "ode Ao2 9XXX SC = " I H a&ount 9==: M(=-::: Aa&e Standard '&ca$ation

:=F :=F :=F :=F :=F :=F :=F :=F :=F :=F :=F

FJ9 FJ> FJ> FJA FJA FJ( FJ=: FJ9 FJ=A FJ=F FJ=(

9XXX SC 9XXX SC 9XXX SC 9XXX SC 9XXX SC 9XXX SC 9XXX SC 9XXX SC 9XXX SC 9XXX SC 9XXX SC

9 > ? A F G ( H =: == =9

99=: 99(= 9A=> 9G== 9G9= >>:> ?9:: A=9: F=:: (?=: G9::

M=G?-A:: M>-::: M=-=::-::: M?:->(G MA9:-::: M>F>->HH M>(-GA: M9F-::: M99?-::: M9>-A:: M9=-(::

Standard '&ca$ation Termiters @ill 0sphalt Cum)erland Kas Standard '&ca$ation Kranite Concrete Ben3s Masonr% Steel !eplicators The Carpentr% Shop Oalle% Klass #il)ert3s !oo*ing

P1 ! Purchase 1rder #19ob P :=F :=F :=F :=F :=F :=F date FJ:= FJ:9 FJ:9 FJ:9 FJ:? FJ=A /ear "ode 9XXX PO 9XXX PO 9XXX PO 9XXX PO 9XXX PO 9XXX PO Ao2 = 9 > ? A F " I =::= =::9 =A:: =A=: AA:: (=:: H a&ount M?9-::: M=?-::: M=-9:: M(:: MH-G:: M=:-A:: Aa&e Li)ert% Bonding Cum)erland Count% Temp Shed Ma Bell Steel "a) Steel "a)

L C Labor LOB 9ob P :=F :=F :=F date FJ=: FJ== FJ=9 /ear "ode 9XXX L 9XXX L 9XXX L Ao2 = 9 > " I =:A: =A=: =:9: H a&ount MF(: M9>: M9G( Aa&e *ield la%out jo) trailer wor2 misc.

1= @ 1ther =C+ense #19ob P date none /ear "ode Ao2 " I H a&ount Aa&e

PCI T Potential Change Irder LI?

9ob P date :=F FJ=A /ear "ode Ao2 9XXX PCO = " I 9==: H a&ount Descri+tion =:-::: disco$ered underground concrete

45F T 4stimate to Finish LI?

9ob P date /ear "ode Ao2 " I H a&ount Aa&e

none

CM ,13 Assignment R,- Prolog: >etting A+ A Project

Assi%n&ents B. I. F will all be done in Prolo% and will be based on the 0/; Health "enter Pro(ect2 ,he sco+e of the +ro(ect. the bud%et and the subs ha)e been reduced to hel+ si&+lify the learnin% +rocess2 /ou can check out a s+ecification book for this +ro(ect fro& A#0 6<E. secretary?s office2 ,he book &ust stay in the buildin%2
Prolog F is currentl% onl% a$aila)le in the computer la) in S,LB 9=H. I* %ou are interested in purchasing a student $ersion D*ull scale $ersion that times out in F months with another F month renewalE contact the instructor. The cost has t%picall% )een a)out M>A.::. To access Prolog F %ou must )e in the CM ?=A course and o)tain a password *rom the instructor.

I$jecti=es: Tas2 =: Setting up a new project Tas2 9: Setting up companies in the data)ase Tas2 >: Setting up the SOO *or the project Tas2 ?: Create a transmittal co$er sheet *or %our assignment 5as( R1: >etting u+ a new +roject Use Prolog to setup a new project called: Dour,a"e)+md Dthis mean %our personal nameE UMou do not need to +rint a re+ort !or this !irst tas(- howe=er- without !ollowing these ste+s to com+lete this tas(- the rest o! your re+orts will $e incom+lete when they come outN The Compan% address and in*ormation are: 9>: S,LB Pro$o- UT (?F:9 Phone: (:=4>G(4(GA( "a&: (:=4>G(4GA=H 'mail: Mour email address. Project Manager: Brigham <oung Superintendent: Mou Dt%pe in %our nameE +o) Starting #ate: =J9>J:9 +o) "inish #ate: =J9>J:> Instruction *or this tas2: =. Ko to >tart- CA4;M Programs- >ot Programs- Prolog Manager 2. 9. Clic2 on File- I+en ;ata$ase) >. Select the appropriate Ser$er under the Connection *ame DThe pro*essor or the T0 should ha$e signed %ou %our ser$er num)erE. Then clic2 on the B C re*resh )utton to get all the user name into the pull down list on the le*t- then use the pull down menu to *ind %our name under Aser *ame- then t%pe in %our Pass Word Dit is the last ? digits o* %our social securit% num)erE- then hit I<. ?. 7hen a Project List 7indow comes up- clic2 on the BCreate ProjectC )utton- and this will ta2e %ou to a Port*olio Manager window- clic2 I< to use the de*ault project

template- then the Port*olio Manager window will )e acti$e *or %ou to create a new project. A. Clic2 on ?eneral ta$ on the top- t%pe in B7.O.Q!4QQQQC Dthe BQQQQC should )e the last ? digits o* %our SS,E as the Project *um$er- the Project *ame should )e B<our,ame.pmdC D*or e&ample- m% name is Tom Swi*t- so I would t%pe in BTomSwi*t.pmdC as the project name- there should )e ,O space )etween the last name and the *irst name- t%pe *irst name *irst.E F. Then use the in*ormation pro$ided a)o$e to *ill in the @o$ 5ele+hone R- @o$ Fa' R- >tart ;ate- Finish ;ate- Project Address Dremem)er to hit B'nterC 2e% to separate street address and cit%- state- /ip. It3s just li2e how %ou would write on an en$elopeE. Choose BConstructionC as Project >tatus- the A++ro'imate Contract Lalue is M=-H>F-G>A Dwhen t%pe in this amount- do not t%pe in a dollar sign or the thousand separation comaE*or ;escri+tion- t%pe in BThis is the project *or the new B<U @ealth CenterC. G. Clic2 on Miscellaneous ta$ on top- Choose Lump Sum as the 5y+e o! Contract- Steel and Concrete "rame as 5y+e o! Construction- Medical as 5y+e o! 8uilding- then *ill in the Pro=inceJ>tate- 5erritory- Begion- Country- using Pro$o- UT as the location re*erence. D%ou should alwa%s use the pull down menu *or each item to see i* there is something that %ou can use alread%- i* not- then create %our ownE. (. "or Com+any I;- t%pe in the initial o* %our *irst name- then %our last name D*or e&amplem% name is Tom Swi*t- so I would t%pe in BTS7I"TC. !emem)er there is ,O space )etweenE. It should automaticall% pull up %our Compan% ,ame that has )een alread% set up in the data)ase DThe T0 should ha$e created %ou as a general contracting compan% in Com+any >etu+E. Then t%pe in the name o* Project Manager- >u+erintendent using the in*ormation gi$en a)o$e. H. Clic2 on Project ;etails ta$ on top- under Com+any *ame column- t%pe in B<U as the Iwner- %our name as the Contractor- OCBO0 as the Architect shown on the co$er sheet o* the speci*ication )oo2 *or B<U @ealth Center Project. Contract ;ate is =J9:J:9. =:. Clic2 on Contacts ta$ on top- clic2 on Add Lin(V )utton to add a lin2. 0 Contact Pic2 List window should pop up. Pic2 %our compan%- M.C. Kreen V Sons- !. Concrete- Ma& Masonr%- #oors to Ko- Captain Ca)inet *rom the list- then clic2 I<. D<ou ha$e just )een lin2ed as the KC and *i$e su)s to %our project. Usuall%- %ou ha$e to go into the project to set up %our su)s under Com+any >etu+ *irst )e*ore %ou can do this- and then come )ac2 to *inish up the Project Pro*ile under Create Project. But this time- I ha$e done this *or %ou.E ==. ,ow %ou ha$e *inished the )asic in*ormation *or setting up a new project- clic2 on >a=e at the )ottom o* the window to e&it out o* there. DThis ma% ta2e awhileE

5as( R : >etting u+ com+anies in the data $ase Ko into the project %ou just set up- to set up compan%.

=. Clic2 on File- I+en File- Di* %ou ha$e logged o** a*ter Tas2 Q=- then log in again as what %ou ha$e done *or tas2Q=E. ,ow %ou should )e in %our project and read% to go. <ou will notice that there is a $ertical na$igation )ar on the le*t hand side o* the screen. Ta2e a loo2 at it so that when %ou read the instruction- %ou will *ind the right )arJ)utton easil%. 9. On the ,a$igation Bar- Clic2 on Admin- Com+any >etu+- the Compan% Setup window should )e opened up )% now. Clic2 on the B C Loo2 Up )utton at the )ottom o* this windowL it will ta2e %ou to another window where %ou can select the compan% to edit. ;o not edit any com+any in!ormation other than your ownN ,otice when %ou clic2 on an% o* the column heading once- the computer will sort %our compan% in*ormation according to that column heading %ou just clic2ed on in a ascending order- i* %ou clic2 on the same column heading again- then it will sort in a descending order. .nowing this now- let3s clic2 on Com+any I; once to sort itL this will ma2e it so much easier to *ind %our name in an alpha)etical order. "ind %our Compan% I# DI ha$e created a general contracting compan% *or e$er% student which is named *rom %our *irst name3s initial plus %our last name. "or e&ample- m% name is Tom Swi*t- so m% Compan% I# will )e BTS7I"TCE. @ighlight %our compan%3s row and clic2 on 4dit )utton at the top o* this window to return to the main Compan% Setup window. >. ,ow %ou are read% to edit %our compan%3s pro*ile. 0s %ou can see- I ha$e *illed in the top o* the window *or %ou- such as %our Compan% Code- ,ame- Short ,ame- and T%pe o* Compan% D*or su)contractor3s compan%- select Su)contractor as the Compan% T%pe- and that is how %ou can set up a su)E. ,ow it is %our responsi)ilit% to *ollow through the rest o* the steps and *ill out all the other in*ormation that3s missing *or %our compan%. ?. Under ?eneral ta$- t%pe in Main O**ice as the Current Main Location- select Keneral *rom the pull down menu *or %our compan%3s Main Construction ;i=ision- t%pe in Keneral Contracting *or %our compan%3s 5rade. <ou ma% lea$e >+eci!ication >ection )lan2 considering %ou are a general contracting compan%. @owe$er- i* %ou are setting up this *or a su)contractor- then %ou do ha$e to t%pe in the su)3s A digit CSI code in there. T%pe in <our ,ame as the one who su++lied this in*ormation- %our title is Superintendent- and t%pe in toda%3s date Dthe short cut *or this is CT!LS#E. A. Then clic2 on Address ta$L "ollow along the Main O**ice row- under ;is+lay Address column- t%pe in the project address that has )een gi$en at the )eginning o* this assignment. Ma2e sure the wa% %ou input the address is how %ou would li2e to displa% on a mailing en$elope. Then under Address 1- t%pe in the street address onl%- then 0partmentQJSuiteQJPO.Bo&Q *or Address and Address " Di* there are an%- i* not- just lea$e them )lan2E. "ill in City- >tate- Wi+- Country- 5elR- Fa'R- 47mail Duse the same in*ormation as Tas2Q=E. Choose Keneral *rom the pull down menu *or the Address 5y+e DKeneral means that it is the address *or all purposes- such as mailing- )illingcontactingE. Ma2e sure the Main )o& is chec2ed Dit means that this address ser$es as the main address *or %our compan% i* %ou ha$e more than one address set up in there. The computer should automaticall% chec2 one o* the address locations as the main addressE. F. Clic2 on Contacts ta$- *ill in %our name as the 4mergency Contact- and t%pe in (:=4 AAA4AAAA as the 5ele+honeR on the right o* %our name. Then Add Bow to start setting up %ou as a contact *or %our compan%. Under Contact I;- I ha$e alread% t%ped it in *or %ou *or class purpose. ,otice that I ha$e used %our *irst name3s initial plus %our last

name as the Contact I#. D"or e&ample- m% name is Tom Swi*t- then I would t%pe in BTS7I"TC as m% Contact I#E The 2e% is to de$elop a standardi/ed input s%stem that e$er%one in %our compan% will *ollow. It will ma2e %our li*e ten times easier as %ou go along with other tas2s in Prolog. "or our class- this is the standardi/ed s%stem I ha$e set up *or e$er%one to use: %our *irst name3s initial plus %our last name as the Contact I#. G. ,ow %ou need to *inish *illing out the rest o* %our in*ormation as a Contact person *or %our compan%: Initials- Pre!i' Duse pull down menuE- First *ame- Middle *ame- Last *ame- 5itle DsuperintendentE- Location Duse pull down menu to select Main O**iceE5elR- Fa'R- 47mail- chec2 the *oti!y )o&. Clic2 on the little )utton under Lin(ed Column to ta2e %ou to a Select Project window. Clic2 on the project %ou ha$e createdthen clic2 on the right arrow )utton to mo$e the project to the right side o* the windowthen clic2 I< to return to the main window. Ma2e sure the Main )o& and the Acti=e )o& are )oth chec2ed. (. ,ow clic2 on the ?eneral ta$ again- notice that the compan%3s telR and !a'R ha$e )een automaticall% *ill out alread%. This is )ecause at the )eginning- %ou ha$e t%ped in Main O**ice as %our Current Location- then a*ter %ou ha$e *illed out all the in*ormation *or that location under Address ta$- the computer just too2 the in*ormation %ou *illed in there to *ill in the telR and !a'R on this page. Clic2 >a=e and sa% Mes to commit changes and sa$e the changes %ou ha$e made. #o not close it %et8 H. 7hile this compan% pro*ile is still open- clic2 on the B C 5uic2 print )utton at the top o* the Prolog window- the Be+ort Manager should pop up and the de*ault Companies and Contacts3 report *ormat should alread% )een highlighted. It is called BCompan% Contact List `#etailed- Listing o* Compan% Contacts Krouped )% Compan%aC. Lea$e it there and clic2 Bun to see a print pre$iew o* the report. 7hen e$er%thing loo2s good and all the necessar% in*ormation are all on the report- clic2 on the little B C )utton at the top o* the pre$iew window to print this report out. To e&it out o* the print pre$iew window- clic2 on the red BXC s%m)ol on the top le*t corner o* this pre$iew window- then clic2 Close to get out o* the !eport Manager window. ,ow %ou can go ahead and close out o* the Compan% Setup window. 5as( R": >etting u+ the >IL !or the +roject In this tas2 %ou will set up >9 0ccount codes with the SOO3s DSchedule o* OaluesE into the )udget. Use the in*ormation )elow: Q CSI #i$ision CSI Section Budget 0mount M = = :=:=: (:::: 9 9 :99:: 9?:::: > 9 :9A=: FA::: ? 9 :9FFF (A::: A 9 :9FF( ==A::: F 9 :9G9: A?F(H G > :>>=: =(GHFA ( ? :?9:: AFH:: H A :A=9: =9F?::

=: == =9 => =? =A =F =G =( =H 9: 9= 99 9> 9? 9A 9F 9G 9( 9H >: >= >9

F G G G G ( ( ( ( ( H H H H H =: == =9 => =? =? =A =F

:F=:: :G=99 :G9=: :G9A= :G?=: :(==: :(?=: :(G:: :(G=: :((:: :H9AA :H>=: :HA=: :HFA: :HH:: =:::: ===>9 =9>:: =>::: =?=:: =?9?: =A=:: =F::=

AF?AA 9>=?? 9A::: =F::: =(H:: >?::: AF::: =>::: =9AFF >?::: (:::: (GA:: =AF:: ?A:: 9?AFF >AF:: 9>A:: AF>A: : =:A:: =A::: =9F(:: =AF(::

D!emem)er- e$en i* the amount is /ero- such as item Q9(- %ou still need to set it up as a )udget account *or /ero dollar amount )udget. This wa%- others will 2now that %ou ha$e ta2en this account into considerationE. =. Ko to Cost Control $ar- 8udget to open up Budget window. Opening up %our s+ecification book to the Inde& portion- *ollow the description *or each CSI speci*ication to enter the )udget #escription in Prolog. D*or e&ample- *or section :=:=:- %ou would t%pe in BSummar% o* 7or2C as the #escription.E 9. Under ?eneral ta$- use pull down menu to *ill out Phase o! the Project Dchoose ConstructionE- ;i=ision Ddepends on the account3s CSI di$ision *rom the Ta)le a)o$eEC>I Code Ddepends on the CSI Section *rom the SOO Ta)le a)o$eE- >co+e Dchoose Original ScopeE- 4'tension Dt%pe in ::E- Category Dchoose Su) ContractE. Then enter the Iriginal Amount according to the Ta)le a)o$e. Ma2e sure %ou don3t put in BMC sign or separation coma. ,otice when %ou hit enter there- the same amount will )e *illed in as Uncommitted Cost. The computer automaticall% assumes that %ou ha$e not su))ed out or allocated an% o* the mone% %et until %ou sign $alue to %our su)contracts when %ou do that later on into the assignments. >. Ta2e a loo2 at what is under the rest o* the ta)s )ut lea$e them as the% are. Then clic2 B>a=eC. #o the same *or all >9 accounts. So at the end- when %ou clic2 on the B C )utton- there should )e >9 )udget codes under the list *or )udget. b7hen %ou ma2e a mista2e in this window- %ou cannot erase an% )udget until %ou go to Cost Control8udget Control to delete the )udget control *ile which is related to this )udget- then %ou

can come )ac2 to this window to delete %our mista2e. The reason wh% is )ecause the computer automaticall% creates a )udget control when %ou sa$e a new )udget. ?. To print a SOO summar% report- clic2 on Be+orts $ar- Cost Control- 8udget to opening up the !eport Manager window. Under !eports Tree ta)- computer should alread% highlighted the BBudgetC report section. Under there- there should )e man% di**erent t%pes o* report *ormat %ou can choose *rom. "or this homewor2 assignment- highlight the 9nd )udget report down called BBudget `0ctual Costs Summar%- Krouped )% Kroup = and Kroup 9aC- then clic2 Bun at the )ottom to see the print pre$iew o* the report. 7hen e$er%thing loo2s good- clic2 on the little B C )utton to print the report. There are man% other things %ou can do to a report under the !eport Manager window3s di**erent ta)s. @owe$er- *or this assignment- %ou are not re5uired to do an% o* that. '&it the print pre$iew mode the same wa% %ou did it in tas2Q9. 5as( R,: Create a transmittal co=er sheet !or your assignment ,ow as %ou ha$e completed tas2 Q=4>- %ou are read% to create this co$er sheet *or %our wor2 in Prolog. =. Ko to ;oc Control $ar- 5ransmittals and Corres+ondence Log. 7hen the window is open- enter toda%3s date under ;ate. This Log is logged $y %ou Dso t%pe in %our nameE. Chec2 the Closed )o&. 9. Under ?eneral ta$- Select the appropriate answer *or 5ransmitted 8y- Com+any- 5o Attention- Com+any- ,otice that i* %ou ha$e *illed out %our compan% setup correctl%%our compan%3s address in*ormation should appear on this page. Under ;eli=ered Liaselect #and which stands *or it3s hand deli$ered. On the right hand side o* the windowunder Pac(age 5ransmitted For- chec2 the )o&es in *ront o* In!ormation- Be=iew. >. Ko to ;etailed Items ta$- Add Bow. 'nter the *ollowing in*ormation into there. bOne item per row: 1t% = = Item !eport !eport #escription Compan% !eport SOO Budget !eport Status Completed Completed Transmitted D*orE !e$iew !e$iew

<ou onl% ha$e to *ill out the a)o$e in*ormationL the rest o* the columns can )e le*t )lan2. ?. ,ow >a=e it and while it is still open- clic2 on 5uic2 print to open the !eport Manager. Lea$e the report *ormat at the de*ault- and then Bun it to pre$iew. Print it8 D,his is your co)er sheet for assi%n&ent B.E

CM ,13 Assignment R3- Prolog: 4ntering Contracts- >u$mittals- BFIFs and ;aily Be+orts
I$jecti=es: Tas2 =: 'ntering the prime contract Tas2 9: 'ntering su)contracts Tas2 >: 'ntering su)mittal pac2ages Tas2 ?: 7riting !"I3s Tas2 A: 7riting a dail% reports 5as(R1: 4ntering the Prime Contract 'nter Prime Contract *or the $alue o* M=-H>F-G>A =. Ko to Cost Control )ar- Contracts. The Contract window should )e open. 9. Clic2 on loo2up )uttons- select 8MA #ealth Center as the compan% %ou are writing this contract to. T%pe in Prime Contract under Short #escription. >. Ko to Keneral In*ormation ta)- select Prime Contract *rom the pull down menu *or T%pe o* Contract- lea$e the !ules on BControlled TotalC. Under Scope o* 7or2- t%pe in BTo complete the B<U @ealth Center Project Construction which include all material- la)orand e5uipment- e&cept owner pro$ide and owner install items.C ?. Ko to #etailed In*ormation ta)- t%pe in 1J "J. under Contract #ate and Issued On- t%pe in 1J "J. under ,otice to Proc and 0ctual Start. Lea$e the rest as how the% are. A. Ko to Contract 0mounts ta)- 0dd !ow to enter the contract in*ormation. Under #escription Column- t%pe in Lum+ >um Contract Amount- under Scheduled Cost- t%pe in 16"20"3. F. Ko to Contact In*o ta)- *or Main Contact and Signed B% should select in*ormation that %ou ha$e alread% entered- *or "rom Compan%- select Mour *ame ?eneral Contracting D*or e&ample- m% name is Tom Swi*t - so I would select BTom Swi*t Keneral ContractingCE. Select Moursel! as the main contact *or that compan%- and %ou are also the one signed the contract. T%pe in @ohn ;oe as the "irst 7itness. Dselect things use the )uttonE G. ,ow Sa$e it. Lea$e this window open to continue the ne&t tas2. 5as( R : 4ntering su$contracts 'nter Su)contracts with the *i$e su)contractors )elow: Section :99:: earth wor2- with M.C. Kreen- M99=->?A Section :>>=: concrete- with !. Concrete- M=GH-(FG Section :?9:: unit masonr%- with Ma& Masonr%- MA9?=> Section :(==: steel doors and *rames- with #oor to Ko- M>>-H:: Section =9>:: ca)inets and casewor2- with Captain Ca)inet- M?H-F(:

=. Clic2 0dd )utton to add a new contract. 9. Select the Su)contractor that %ou are ha$ing this su)contract with as the BTo Compan%C. 'nter B'arth 7or2C as the description. Denter the description according to the in*ormation gi$en a)o$e.E >. Ko to Keneral In*ormation ta)- under T%pe o* Contract- select >u$contract- lea$e the !ules on Controlled 5otal- Select the ade5uate CSI Code according to the in*ormation gi$en a)o$e. 'nter R1 as the Big Pac2age D*or the 9nd su)contract- enter R - *or >rd one enter R"- and so on and so *orth.E Under Scope o* 7or2- t%pe in B0ll material- la)ore5uipment *or completing the earth wor2 on the B<U @ealth Center Project.C ?. Ko to #etailed In*ormation ta)- and enter in the same in*ormation as what %ou ha$e done in Tas2Q=. A. Ko to Contract 0mounts ta)- do the same thing as %ou ha$e done in Tas2 Q=- e&cept change the #escription *or the contract accordingl%. D*or e&ample- I would t%pe in BSu)contract *or 'arthwor2C *or MC Kreen3s contractE. Be%ond Tas2Q=3s instruction%ou need to enter Spec Section num)er- choose ade5uate Budget Code accordingl%. F. "ill out the Main Contact- Signed B%- "rom Compan%- Main Contract- Signed B%- and Titles- "irst 7itness accordingl%. !emem)er- i* %ou see a compan% or contact. )utton- use that to select

G. Sa$e this and continue with the rest o* the su)contracts. 0*ter %ou are *inished- %ou should ha$e A indi$idual su)contracts- each one o* them is *or a su)contractor- and each one o* them should )e lin2ed with a Budget Code %ou ha$e set up earlier in 0ssignment =. (. Close out o* this window. H. Print out another Budget !eport just li2e how %ou did it *or 0ssignment =- same *ormat report. Compare this report with the pre$ious Budget !eport %ou ha$e to see what3s di**erent now. =:. Print a !eport to show all contracts *or this project. Ko to !eports- Cost ControlContracts. It3ll ta2e %ou to the Contracts !eport *older. @ighlight the 9nd contract report *ormat called BContracts`#etailed- Krouped )% Contract ,um)eraC- clic2 !un to pre$iew it. Ta2e a loo2 at it and ma2e sure %ou ha$e not missed an%thing that %ou suppose to enter. I* e$er%thing loo2s good- clic2 on the 5uic2 print )utton to print the report. Close out o* the !eport Manager. 5as( R": 4ntering >u$mittal Pac(ages 'nter Su)mittal Pac2ages *or the A Su)contractors. So *or each su)contract- %ou need to *ind the su)mittal in*ormation under the appropriate section in the Spec. Boo2. D"or e&ample- *or su)contract section :99::- earthwor2- %ou need to turn the spec )oo2 to that section and *ind the su)mittal section- which is under =.>.0 o* that portion o* speci*icationE. #o this *or each

su)contract- so when %ou *inish this tas2- %ou should ha$e *i$e indi$idual su)mittal pac2ages created. =. Ko to #oc Control- Su)mittal Pac2ages. The wa% to enter a standardi/ed Su)mittal Pac2age ,um)er *or this class is: alwa%s enter ...1 *or the *irst su)mittal pac2age *or each su)- in our case- we are onl% creating one pac2age per su)- then we are onl% using B:::=C- then a*ter the dash line- enter the su)3s A digit CSI num)er. I* it3s the *irst time the su) su)mits this pac2age to %ou- then enter . as the !e$ision num)er. #escription can )e an%thing a)out this su)mittal pac2age which ma2es sense. 9. Under Pac2age Items ta)- choose the appropriate su) as the 0uthor Compan%- and choose whate$er Importance that %ou thin2 it is. >. 0dd !ow at the )ottom hal* o* this page to enter each su)mittal items. 0ll the su)mittal items in*ormation can )e *ound in the Speci*ication )oo2. 'nter Spec Section- Su) Dwhich stand *or Su) section num)er- *or e&ample- *or MC Kreen3s pac2age- under :99:: o* the spec )oo2- the su)sections are: B=.>.0.=C- B=.>.0.9C- B=.>.0.>C- =.>.0.?C.E 0lso *ill out the short #escription as how it is noted in the spec )oo2. Under T%pe- select according to the t%pe o* su)mittal it is. D*or e&ample- *or a test report su)mittal- the t%pe is going to )e B!eportCE. "ill out !esponsi)le Compan% as the su) who is responsi)le *or su)mitting this item. T%pe in !ecei$ed #ate- Status- 0ction- and it is logged )% <OU8 !emem)er- howe$er man% little su)mittals %ou ha$e under each spec section in the spec )oo2- how man% rows %ou will need to *ill out. D"or e&ample- *or section :99::- there are ? su)mittals- so %ou should *ill out ? rows o* in*ormationE. ?. Ko to !e$iewers and ,otes ta)- 0dd a !ow. Choose "rom Compan%- To Compan%- Sent #ate- !ecei$ed #ate- 0ction- Sent "or- Sent Oia. DUse %our headL thin2 a)out %our answer to these )o&es to see i* the% ma2e senseE. A. #o one su)mittal pac2age *or each su)contractor as the *ashion shown a)o$e. F. Close out o* the Su)mittal Pac2ages window. Ko to !eport- #oc Control- Su)mittal Pac2ages. Choose the 9nd su)mittal pac2age report *ormat called BSu)mittal Pac2ages `#etailed- Krouped )% 'ach ,um)eraC. !un it to pre$iew. I* e$er%thing loo2s goodPrint it. 5as( R,: Writing BFIFs 7rite an !"I according to the scenario gi$en )elow: <our 0rchitect is re5uesting a price 5uote *rom %ou a)out some e&tra concrete wor2- so %ou need to write an !"I to %our concrete su) to re5uest this in*ormation )% gi$ing the su) the *ollowing data: Please su)mit a price 5uote to e&pand the concrete par2ing lot. Total L" o* cur) and gutter =F:total s5uare *eet o* concrete par2ing area >F:- stripping par2ing slots- road )ase and *ill using current design. =. Ko to #oc Control )ar- !e5uest "or In*ormation.

9. T%pe in BPrice 1uote *or '&tra Concrete 7or2C as the Su)ject. Dthe 2e% to write a !"I su)ject is that it is eas% to *ind it *rom hundreds o* !"Is- so a *airl% detailed Su)ject heading is importantE. Choose #igh under Importance- chec2 the )o& *or I!!icial) >. Ko to Keneral ta)- *ill in toda%3s date as the #ate Created- notice that a date will automaticall% appear in #ate !e5uired. I* that is not the date %ou re5uire this !"I to )e answered- then change it )% hand. Mou are the 0uthor Compan% and 0uthor o* this !"Iand the concrete su$ is responsi)le compan% *or 0nswer this !"I. T%pe in BPlease su)mit a price 5uote to e&pand the concrete par2ing lot. Total L" o* cur) and gutter =F:total s5uare *eet o* concrete par2ing area >F:- stripping par2ing slots- road )ase and *ill using current designC as the 1uestion. Choose >tructural under #iscipline- Price Quote under Categor%. ?. Ko to ,otes ta)- T%pe in .""1. under Speci*ication Section !e*erence. A. Ko to Colla)oration- 0dd !ow. Under "rom Compan% and "rom Contact- select %our compan% as the BOrigination o* the !"IC- and it3s going to %our concrete su)8 0*ter *illing out all the "rom and To companies and contacts- enter toda%3s date under #ate Sent. Chec2 the Action )o& which indicate that action is re5uired *rom %our su) to do something a)out it- in this case- the% need to gi$e %ou a price 5uote. Select In!ormation under Sent "orL select #and under Sent Oia. F. Ko to Impact ta)- chec2 the Mes )o& *or Cost impact- and lea$e the rest )lan2 considering %ou don3t 2now the answer %et. DIn real li*e situation- %ou will go )ac2 to this !"I and *inish *illing out the rest o* the stu** a*ter %ou recei$e the answer )ac2 *rom %our su) or architectE. G. Sa$e it and while it is open- clic2 on the 5uic2 print )utton open up the report manager. Because %ou did this while the indi$idual !"I is still open- so the computer has alread% highlighted the de*ault *ormat *or that indi$idual !"I. It ma2es printing much easier in this case. Lea$e the *ormat there on the one alread% highlighted- then clic2 !un to pre$iew it. I* it loo2s good- all the in*ormation that are supposed to )e there is therethen Print it out. 5as( R2: Writing a daily re+ort 0cti$it%: Su)s: '5uipment: @ad sa*et% meeting at ? PM. It was held on the jo) site. #id punch list with *lat concrete contractor *or rear section o* wor2. 7or2ers on site: =9 dr%wallers- > steel *ramers- F @O0C- ? sprin2ler pipe Installer- > electricians- ? roo*ers. Man li*t )eing used )% roo*ers Dcharge ? hoursE- su) )ac2hoe )eing used "or utilit% lines- struc2 phone line- phones out- not properl% mar2ed )% Blue sta2es- call *or claim. !oo*ing materials )eing deli$ered- &4ra% e5uipment deli$ered slip Q=9>?AFG. (::: am ?A degrees- =9 noon AH degrees- A pm A? degreesL wind light *rom

Materials: 7eather:

South east- clear- *ew clouds. Ko to "ield 0dmin )ar- #ail% 7or2 +ournal. 'nter toda%3s date as the #ate it3s created. Choose %our compan% as the Compan% who authori/ed it. Choose *JA under Crew. Ko to #ail% 7or2 #escriptionJSchedule ta)- Under 7or2 #escription- t%pe in the in*ormation under 0cti$it% gi$en a)o$e- and t%pe in Materials gi$en a)o$e. Ko to ManpowerJLa)or ta)- 0dd row. Under each row %ou add- select the appropriate Trade according to in*ormation gi$en a)o$e *or Su)s. Select Wor(er *or all Classi*ication *or these wor2ers on site- *ill in the 5uantit% according to the in*ormation gi$en a)o$e. Under UOM Dunit o* Man powerE- t%pe in man *or all o* them. Ko to '5uipment ta)- 0dd row. 'ach row will )e one piece o* e5uipment3s in*ormation. Use the in*ormation gi$en a)o$e to *ill these out- and choose e5uipment pieces accordingl%. 'nter in the correct 5uantit% gi$en a)o$e and under UOM- *or Man li*t- t%pe in B@ourC- *or Bac2hoe- t%pe in BLSC. 0nd *or Bac2hoe- %ou also need to enter BPhone line was struc2 down due to *alse mar2 )% Blue Sta2eC under ,otes. Sa$e it now. Ko )ac2 to #ail% 7or2 #escriptionJSchedule ta). ,otice there are se$eral )uttons on the right hand side o* this window- clic2 on the B'$entC )utton. ,ow %ou should )e in a window called B'$entsC. Under '$ent T%pe- choose Sa*et% Meeting. Ko to Keneral ta)- chec2 the closed )o&- enter Time and Location o* the meeting according to the in*ormation gi$en a)o$e. Under #escriptionJ,otes- t%pe in Bstandard wee2l% sa*et% meeting. Toda%3s su)ject is IIIIIIIIIIC Dcreate the meeting3s su)ject howe$er %ou want toE. Sa$e it and lea$e it open- then hit 5uic2 print )utton to open up the !eport Manager again. Lea$e the report *ormat on the one alread% highlighted- then !un it to pre$iew- then print it i* it is how %ou li2e it. ,ow close it. Ko )ac2 to #ail% 7or2 +ournal window again. Clic2 on #ail% #etail )utton to open that window. "ill out the time and Temp Oalue according to the in*ormation gi$en a)o$e. T%pe in the weather in*ormation gi$en a)o$e in the B7eather ConditionsC section. Under 7ind- t%pe in light. ,ow Sa$e it and close out o* there. 0cti$ate the #ail% 7or2 +ournal window again. 7hile it3s open- clic2 on 5uic2 print )utton to open the !eport Manager. Lea$e the report *ormat on the one it3s alread% highlighted then clic2 !un to pre$iew it. Print it8

CM ,13 Assignment R2- Prolog: Practicing in Prolog I$jecti=es: Tas2 =: 7riting a change order re5uest Tas2 9: 7riting an application *or pa%ment Tas2 >: !ecording meeting minutes Tas2 ?: Issue a Sa*et% ,otice Tas2 A: Complete a punch list 5as( R1: Writing a change order re%uest 1n February 4I. 6EEG. you (re+resentin% "a&+us "onstruction "o2) ha)e sent the Architect (8alentinerN) a request about eCtra concrete work totalin% H6E.I4E (which will be +ro)ided by 73 "oncrete co2) due to the redesi%n of +arkin% lot and landsca+in% area which has chan%es certain sections of as+halt to concrete instead2 /ou need the &oney before March 4I. 6EEG2 'rite a "han%e 1rder 7equest to your architect for it2 Creating a Change Irder Be%uest: =. 9. >. ?. A. F. G. (. H =:. On the Switch)oard- clic2 Cost Control and on the menu- clic2 on Change Order !e5uests. In the #escription *ield- t%pe: additional concrete *or par2ing lot V landscape area. In the Status *ield- choose pending as the status. In the To Compan% *ield- choose %our architect as the recipient o* this change order- and 0ttention to their de*ault contact. In the "rom Compan% *ield- choose %ou )ecause %ou are the one sending out the change order re5uest and %ou are the Contact *rom %our compan%. There is :.: re5uested da%s- and %ou need to *ill in the re5uested amount. The Initiated date is the date when %ou sent %our Change Order !e5uest- and the !e5uired #ate should automaticall% pop up. In Categor% *ield- choose #irect Cost considering that the change order is a)out concrete material In ,otes *ield- input the reason the project needs additional concrete wor2 )eing done Dredesign o*R- change some asphalt to concreteE. Sa$e this *orm and while it is still open- go clic2 on and lea$e the report t%pe on the one the computer alread% selected- run the report- a*ter %ou chec2 the print pre$iew and e$er%thing loo2s good- then print it out.

In March 1- ..S- the owner C8MAD has only a++ro=ed the change order amount !or K13-63.)5he owner said they will not gi=e the rest o! the money until !urther infor"ation can be obtained. Erite a Pri"e Contract Chan!e Order to your owner.

Creating a Prime Contract Change Irder: =. 9. >. ?. A. F. G. (. H. =:. On the Switch)oard- clic2 Cost Control- and on the menu- clic2 Prime Contract Change Orders. In the Contract ,um)er list- select ::=4Campus Construction. In the #escription *ield- t%pe: !edesign o* par2ing lot V landscape area Mar2 the Closed )o& considering this change order has )een responded and appro$ed )% the owner. In the #ate *ield- put the date %ou recei$ed the response *rom the owner. Input the 0ppro$ed 0mount in. The ,otice to Proceed date is March =A- 9::X. In Categor% *ield- choose #esign Changes. In Status *ield- choose 0ppro$ed. Clic2 on Ta) Other In*ormation- "ill in all the Compan%- Contact- Signed B%- Title *ields with appropriate in*ormation. !emem)er that this change order is to %our project manager and is *rom %ou. DbThis step and the *ollowing step cannot )e completed until %ou do %our Potential Change Order- so come )ac2 to *inish the rest up a*ter %ou do %our Potential Change Order.E Under Ta) Keneral In*ormation- add a lin2 to the Potential Change Order DPCOE %ou created. Sa$e this *orm and while it is still open- go clic2 on and lea$e the report t%pe on the one the computer alread% selected- run the report- a*ter %ou chec2 the print pre$iew and e$er%thing loo2s good- then print it out.

==.

=9.

1n the sa&e day (March 4. 6EEG). after you recei)e the notice of the a++ro)ed chan%e order a&ount of H4I.5IE. you reali$e there is a deficiency of HB.IFE which is not settled yet2 ,here are three +ossibilities to settle this cost: 4) +ro)ide the further infor&ation to the owner and %et it a++ro)ed. 6) you (the -") eat the cost. <) you +ass it on to the sub and the subcontractor eat it2 'rite a Potential "han%e 1rder to your owner to show that there is a cost deficiency of HB.IFE which has not been a++ro)ed yet2 Creating a Potential Change Irder: =. On the Switch)oard- clic2 Cost Control and on the menu- clic2 on Potential Change Order. 9. In #escription *ield- t%pe in: Unsettled cost *or redesign par2ing lot V landscape. >. Ma2e sure that )oth 0ppro$ed *or Budget and Closed )o&es are not chec2ed. ?. Input the #ate as the date when %ou recei$e the response *rom the owner.

A. Under Categor%- choose #esign ChangeJ"ield Condition. F. Under !eason- choose Owner #irecti$e as wh% this change order e&ists. G. Ma2e sure ,oti*ication !e5uired )o& is mar2ed. (. Put March =A- 9::X as the !e5uired #ate *or this amount o* change order. H. Under ,otes- write out the > possi)le solutions the homewor2 instruction has pro$ide which might sol$e this cost de*icienc% pro)lem. =:. Ko to the ne&t ta) #etailed In*ormation- clic2 on 0dd !ow )utton to add a row. ==. Under #escription- t%pe in Unsettled cost *or redesign par2ing lot V landscape area. =9. Under Orig 'stimate and Proposed 0mt- t%pe in the cost amount which was originall% planned *or %our change re5uest. DM9:-A=:E =>. Under 0ppro$ed 0mt and 0pplied 0mt- t%pe in the amount that the owner has agreed to pa% so *ar DM=A-HA:E. =?. Under Budget Code- lin2 to the ade5uate )udget code which relates to concrete wor2. =A. Under Bdgt 0llocation- choose Pending !e$isions. =F. Under Cost 0llocation- choose Use Uncommited CostsDPendingE. =G. Sa$e this *orm and while it is still open- go clic2 on and choose NPotential Change Order `#etailed- Krouped )% 'ach ,um)eraN as the report t%pe- run the =(. report- a*ter %ou chec2 the print pre$iew and e$er%thing loo2s good- then print it out. =H. Db,ow %ou can go )ac2 and *inish up the last *ew steps *or Prime Contract Change OrderE. 5as( R : Writing an a++lication !or +ayment <ou ha$e met with the architect and ha$e agreed that the *irst months pa% application is *or =(; o* the contract amount. 7rite an 0pplication *or Pa%ment *or it. Creating a A++lication !or Payment: =. 9. On the Switch)oard- clic2 Cost Control and on the menu clic2 on 0pplication *or Pa%ment. In the Contract ,um)er list- select ::=4Campus Construction. 0 message will pop up sa%s BThere are no pre$ious applications *or pa%ment against the current contract. #o %ou want to load the schedule o* $alues6C Clic2 on <es. In 0pp #ate *ield- press CT!LS#.

>.

?.

Under Period *ield- t%pe in current- and a message will pop up to prompt %ou to set up this new cost period- clic2 <es- and when the Cost Periods window comes up- *ill in the date *or pa%ment *rom 9J=J:= to ?J=J:=- then clic2 O. to return to the 0pplication *or Pa%ment window Dthe computer will prompt %ou to sa$e the document at this point- clic2 <es to sa$e itE. Under Itemi/ed Brea2down ta)- under Percent Complete- t%pe in the percentage gi$en in the homewor2 instruction under Tas2 Q9. Under Keneral !etain Percent and Stored Material !etain Percent- t%pe in A; *or retainage percentage. Clic2 on 0dd CO to import the Change Order %ou ha$e created- under Categor%- choose the di$ision o* wor2 that the change order is related to. Ddou)le chec2 to ma2e sure there is no percentage o* wor2 has complete *or this change order and there is no retainage placed on the change orderE. Ko to Ta) Other In*ormation- put in %our owner as who %ou are sending this to Di* %ou ha$e not set up B<U as the owner o* this project- %ou need to go to Compan% Setup to set up that *irstE and put %ou as the one who this application is *rom. "ill in all the Compan%- Contact- Signed B%- Title as instruction has directed. Under 0ppro$ed #ate- use CT!LS#. Under Categor%- choose Prime. Sa$e this *orm and while it is still open- go clic2 on and lea$e the report t%pe on the one the computer alread% selected- run the report- a*ter %ou chec2 the print pre$iew and e$er%thing loo2s good- then print it out.

A. F. G.

(.

H. =:. ==.

5as( R": Becording meeting minutes <ou meet wee2l% with the architect- and project manager on 7ednesda% at H a.m. at the jo) site. <our last meeting was last 7ednesda% and it went *or appro&imatel% 9 hours- and the ne&t meeting will )e held ne&t 7ednesda% at the same time- which is a wee2 *rom now. !ecord a Meeting Minutes to con*irm that =E the month3s pa% application was agreed to at =(;- 9E that Change Order Q= was appro$ed *or M=A-HA: and there is M?-AF: in unappro$ed change orders that is waiting *or additional in*ormation. Creating Meeting Minutes: =. 9. >. ?. A. On the Switch)oard- clic2 #oc Control- and on the menu clic2 Meeting Minutes. In the Meeting Set *ield- choose Owner- 0rchitect- Contractor as the appropriate meeting t%pe. In the Meeting #ate *ield- press CT!L S #. In Time Started and Time 'nded *ields- *ill in the correct time gi$en in the instruction. On the Meeting Items Ta)- clic2 0dd !ow.

F.

In the #escription column- t%pe in the *irst thing that has )een discussed during the meeting Dgi$en in the instructionE. The computer will pop up a message to as2 %ou i* %ou want to set the Blast modi*ied dateC to the meeting date %ou ha$e put in- clic2 <es. In the !esponsi)le column- choose the compan% who is responsi)le *or the pa%ment D%our ownerE. In the Status column- choose 0ppro$ed which stands *or that the application has )een agreed )% )oth parties. In the Topic column- choose "inancial which shows that this meeting issue is a)out *inancial responsi)ilitiesJpa%ments. .eep in mind that the issues discussed in a meeting t%picall% ha$e di**erent topics. In #ue #ate column- t%pe in ?J:=J9::X as the deadline *or pa%ment. Dindustr% norm is to pa% )% the last da% o* the monthE Mar2 Closed )o& to show that this meeting issue has come to an agreement and is not going to )e discussed during the ne&t meeting. Clic2 on 0dd !ow again to add another row *or the 9nd meeting item that %ou ha$e discussed with the ownerJarchitect Dgi$en in the instructionE. "ollow step QF4=: to complete this row. Ko to Other #etails Ta) and under Purpose o* Meeting- t%pe in To discuss issues to maintain owner and contractor satis*action. In Location o* Meeting- t%pe in +o) Site O**ice. In ,e&t Meeting #ate and ,e&t Meeting Time- t%pe in the date and time %ou are going to ha$e %our ne&t Owner- 0rchitect- Contractor meeting. In Prepared B% and Prepared )% Compan% *ields- choose %our name and %our compan% name to *ill in the *ields. Ko the 0ttendeesJCourtes% Copies Ta)- clic2 on 0dd !ow under 0ttendees section. Under Compan% column- choose %our compan% as one o* the companies attended the meeting- and under Contact column- choose %our name. Chec2 Send )o& which indicate %ou are going to send a cop% o* the Meeting Minutes to that person as a record. Clic2 0dd !ow again and *ollow step Q=G again to *ill in another person who has attended the meeting- and 2eep repeating this process until %ou ha$e input all the people that ha$e showed up *or the meeting. Sa$e this *orm and while it is still open- go clic2 on and lea$e the report t%pe on the one the computer alread% selected- run the report- a*ter %ou chec2 the print pre$iew and e$er%thing loo2s good- then print it out.

G. (. H.

=:. ==. =9.

=>. =?. =A. =F. =G. =(.

=H.

9:.

5as( R,: Issue a >a!ety *otice 0t %our latest sa*et% meeting %ou )ecame aware that the site wor2 contractor did not ha$e the proper slope on their trenches and could )e a possi)le OS@0 $iolation i* disco$ered. Issue a Sa*et% ,otice to the Site 7or2 su) contractor *or the a)o$e sa*et% issue. Creating a >a!ety *otice: =. 9. >. ?. On the Switch)oard- clic2 "ield 0dmin- and on the menu clic2 Sa*et% ,otices. In the #ate *ield- press CT!LS#. In Su)ject *ield- t%pe in Trench Slope Pro)lem. In T%pe *ield- t%pe in Improper Slope as the t%pe o* $iolation %ou are addressing. 7hen the computer prompts %ou to set up this new loo2 up group item- clic2 <es to set it up. Under T%pe I# o* the Loo2up Kroups Maintenance WSa*et% ,otices windowt%pe in IS Dinitial *or Improper SlopeE as the T%pe I# *or this t%pe o* $iolation- clic2 O. to return to the Sa*et% ,otices window. On the Keneral In*ormation Ta)- in the To Compan% and 0ttention *ields- choose the su)contractor DM.C. KreenEand the su)3s main contact as who %ou are sending this notice to. In the "rom Compan% and 0uthored B% *ields- choose %our compan% and %ou as the one who is sending out this notice. In Status *ield- choose 0S0P. In Categor%- t%pe in Potential OS@0 Oiolation. 7hen the computer prompts %ou to set this new loo2 up group item up- clic2 <es to set it up. T%pe in POO which stands *or Potential OS@0 Oiolation as the Categor% I#- then clic2 on O. to return to the Sa*et% ,otices window. In #etails and 0ction !e5uired *ield- t%pe in the action the su) has to ta2e in order to *i& this pro)lem and to compl% with %our sa*et% polic% to a$oid OS@0 *ines. In #ue )% *ield- t%pe in the date which is a wee2 *rom toda% as the deadline to *i& this sa*et% pro)lem. Ko the #etailed In*ormation Ta)- in Case ,um)er *ield- t%pe in 94::= which represents that the sa*et% notice is related to CSI #i$ision :9::: wor2 and this is the *irst sa*et% notice %ou are gi$ing out *or this di$ision o* wor2. In Sa*et% Code !egulation *ield- t%pe in C"! =H9F.P which stands *or 9HC"!- =H9F regulation- su) part P on OS@0 site. In Sa*et% +urisdiction *ield- t%pe in OS@04Inspection

A.

F. G. (.

H.

=:. ==.

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In !esponsi)ilit% *ield- t%pe in %our su) compan%3s name. In 'mplo%ee In$ol$ed *ield- t%pe in Bill% Bo) as the gu% who was digging the trench slope. In 7itness *ield- t%pe in %our name. In Location *ield- t%pe in On Site Trenches. Sa$e this *orm and while it is still open- go clic2 on and lea$e the report t%pe on the one the computer alread% selected- run the report- a*ter %ou chec2 the print pre$iew and e$er%thing loo2s good- then print it out.

5as( R3: Com+lete a +unch list Complete a Punch List to concrete contractor D!. ConcreteE on rear o* )uilding *or the owner to ta2e occupanc%- > items:
0. Crac2 in south west section o* dri$e wa%

B. C.

0ll *orms must )e hauled awa% One high spot in water test in south west section- must )e ground down

Creating a Punch List: =. 9. >. On the Switch)oard- clic2 "ield 0dmin- and on the menu clic2 Punch List. In the 0rea = list- t%pe in rear o* )uilding. In !esponsi)le Compan%- Contact- 0uthor Compan%- 0uthored B% *ields- *ill in the appropriate companies or contacts Dremem)er that this is a punch list to %our concrete su) contractor and this ma2es this speci*ic su) responsi)le *or this speci*ic punch list- and %ou are the one issuing the punch listE. Under #escription *ield- t%pe in the > items gi$en in the homewor2 instruction. In Inspected- !ec3d On- Issued On *ields- press CT!LS# to *ill in toda%3s date. Sa$e this *orm and while it is still open- go clic2 on and choose Punch List `#etailedKrouped )% 0reaa as the report t%pe on the !eport Manager- run the report- a*ter %ou chec2 the print pre$iew and e$er%thing loo2s good- then print it out.

?. A. F.

,ow %ou ha$e *inished this Prolog assignment create the Transmittal Co$er Sheet *or this assignment.