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6 Steps to ‘Pre-Con’ Your Way to Greater Profits

Pre-construction, better known as “Pre-Con,” is a familiar part of most general construction company’s approach to building a project. While not all GCs excel at this effort, there is much to learn from this critical construction process that specialty subcontractors would benefit. Done correctly, thoroughly and consistently, the Pre-Con process can strengthen your profitability on every project you win.

The pre-construction process can involve many different components. To name only a few, consider the list of activities that are often completed during this “pre-start” phase:

  • Review of available prints and drawings for project (And that’s getting tougher for many projects.)
  • Identification of critical specifications and requirements
  • For the GC, the “buying-out” of subcontractors for bids
  • Securing needed insurance, permits, certificates, etc.

This list barely scratches the surface for many projects; however, it does provide you TCBFwith an idea of the types of activities that must be completed — and you haven’t even started the project yet!

While Pre-Con is a term most associated with construction companies, the principles behind this important building phase are important for any organization engaged with the construction industry. Let’s look at a few very important pre-construction efforts that you should incorporate or refine in your own company so that you lay a strong foundation for greater profits.

1. Clarify the pre-con scope of work

This first effort gives your company the chance to completely review what you and your workers will be executing. Unfortunately, too many contractors simply develop a job file (which is a good thing!) that most often includes the directions to the jobsite, contact information, various lists of material quantities, specialty tools and equipment needs, and hopefully a print of the jobsite. For the smaller contractor there might be a sketch of the work to be completed with estimated measurements and location.

The project’s scope of work should certainly include all important information and drawings. It should also include, however, an overview of what manner of work will be completed; what other contractors might be involved with the project; an overview of what the customer’s expectations and needs are; and working restrictions that your crews might need to respect or adhere to. The project’s scope of work is essentially the view of the work to be completed from “5,000 feet.” It’s a macro overview of the entire project.

2. Create your line-of-sight (critical path)

This effort parachutes you in from “5,000 feet” and allows you to line out the order of how your company will address completing the contracted work: sequence the actual work efforts; mark with special emphasis critical milestones that should be reached, in order; and identify projected dates for completion.

The effort to complete this should strongly consider needs of the customer, what the actual time constraints are for the project, and where the other contractors before and after your firm’s actions are expected to be.

While the line-of-sight will be adjusted during the actual project, it serves as the first effort schedule to how you and your company will be approaching, preparing for and executing the needed work tasks.

3. Develop a checklist of required resources

Creating a checklist of required resources is not always completed by the general construction firm, much less created by a GC for its subcontractors. So it’s a good idea whether you’re a subtrade specialist or GC to consider all of the resources that will be needed to complete the project.

Why is this critical? In some cases, placing an order for a particular material or securing a special piece of equipment to rent might require ordering well in advance. Needing a special and hard-to-find fiber cable to run for the M&E contractor could require 12 to 16 weeks advanced ordering. Such a long lead time — if it’s not planned for — can totally destroy a construction schedule for a great many contractors.

Whether your list of resources only consists of concrete or sheet rock, or whether you are used to easy pick up at the local contractor’s supply store, making a bona-fide list of needed resources, ahead of time, for every project keeps the “2,000-pound elephant” in clear view of your team and makes it easier to remember ordering such needed resources.

4. Clarify project roles and responsibilities

This is one effort that even some of the best contractors often overlook. It is not uncommon on projects to have confusion about who is doing what, which often leads to a lot of “he said…she said.” One strong step to prevent this from taking place is to first view the project in sections of time and then identify those individuals who will be involved with each section.

Once you have identified the “players” it is time to identify what each player’s project roles and responsibilities will be. If any players will be involved with more than one section of time then a scrutiny of any changes in their roles or responsibilities should be assessed.

I created a project team exercise to assist contractors in this effort. The 4 Quarter Leadership Review breaks any project into four “quarters,” though each quarter is not necessarily the same amount of time. The quarters are more importantly identified by significant milestones or completion and important starting dates for phases of work. Then, the project team involved in each quarter identifies and documents what its specific roles and responsibilities are to be.

Additionally, the project team identifies key performance indicators, critical success factors or goals, and important transition efforts for each quarter.

Obviously if you are completing work that can be less than a day in total completion time then using a “4 Quarter- like” effort is overkill. But, don’t “throw out the baby with the bath water.” You still increase your workers’ efficiencies and profit-making work tasks by lining out and discussing specific actions that need to be taken. Overlook this critical element of Pre-Con and you risk having dollars flushed down the toilet.

5. Risk assessments and management plan

The entire risk management element to all areas of construction has grown exponentially over the past years. For now, let me provide you with some simple-to-follow but none-the-less critical steps for your profitable construction efforts.

Start by identifying any part of your construction efforts that could have a potential risk involved. While simply driving your truck to the jobsite has risks, I’m more referring to those risk that could put you and your organization at risk of losing a life, suffering an injury, delaying your work schedule and thus causing others to be delayed, even from performing the wrong work. All of these items, and a multitude of others, can end up costing you safety, money and reputation.

What might be some areas to assess? Consider just a few examples:

  • Jobsite is in high traffic area
  • Your workers will be working in tight conditions
  • Your workers will be working along with several other contractors (i.e. The Bunch Affect)
  • Time schedule is extremely tight
  • Penalties incurred when completion dates are not achieved (due to extremely tight time schedule)
  • You’re performing work that is NOT in your sweet spot
  • Inside work conditions provide little lighting or air ventilation
  • There is no “on-site” staging area for your equipment and tools
  • There is little verbiage in the contract about the change order process; what is there seems to strongly favor the customer

Consider each of the items in the above list. What impact would each have on your company’s ability to be profitable? It will pay huge dividends to get such items clearly defined and, in some cases, legally confirmed before commencing work.

6. Conduct a project leader “summit”

The “summit” involves every project leader connected to the job coming together for a few hours to talk to and about…one another! In more than 25 years of working with every type of contractor, manufacturer and supplier known to construction I continue to see unclear leadership, misunderstandings, poor communications and personality conflicts as the biggest project challenges.

At the summit project players need to have their communication tendencies and expectations clearly defined. Leaders should be presented scenarios that WILL happen sometime during the project and then role-play how they will prevent communication mishaps from taking over their project. A very clear discussion on personal needs of each leader has should also take place.

The purpose of the summit is not to turn the project members into “raving fans” of each other (although that wouldn’t be bad) but to establish a benchmark to how they will conduct business. If you want to build greater teamwork, better communication and a bunch more profit into every project then you better insure that your project leaders “summit” prior to every new project.

Depending on the size of your projects and the complexity of each project, you will need to tailor the six efforts just described to maximize what profitability you can realize. BUT YOU MUST MAKE THE EFFORT. Not taking on a pre-construction strategy will certainly make your projects more difficult, potentially frustrate your workers more often and keep your crews from having a fighting chance to be successful.

Set your workers up for success…make a pre-construction effort a company requirement!

 

NOTE: This article originally appeared on ForConstructionPros.com

 

Loyalty Among Construction Field Personnel

Since 2008 construction employment has dropped considerably and has remained below 2007 levels, with construction management positions still about 14% down (U.S. Department of Labor, 2015). Despite the boom currently occurring in the construction industry, general contractors (GCs) are finding it difficult to fill project management positions (AGC 2014), and construction firms expect these challenges to continue (Mutikani, 2014).

loyalty

Photo courtesy of FreeDigitalPhotos.net

With greater demand for managers, retaining quality people is a paramount concern. Everyone knows the adage that “money talks”, but what can a GC do to engender loyalty besides just paying more? To explore that question and attempt to better understand the factors that engender loyalty among a GCs employees, the team at Pinnacle Development Group worked with Texas A&M University and surveyed the field employees of GCs and obtained 440 responses that provide insight into the factors that are most effective in engendering loyalty for GC’s field management employees.  

Loyalty Drivers

Of the respondents, 38% have been with their current company for over 20 years, and 70% have been in the industry for over 20 years. They constituted a variety of job titles and levels of education, and came from across the Unites States. The questions related to three general categories of: Company programs, Relationships, and Attitude and Engagement. Respondents were asked to rank various factors in each area with the lowest average rankings indicating the most effective factors. 

Not surprisingly, pay scale and bonus structures was a top factor. However, participants felt that relationships with management were the single most effective factor in their loyalty as employees.  Each of the three areas (relationships, company programs, and attitude and engagement) are represented in the top three factors, however relationships occupy four of the top six spaces. So the key to retaining employees may lie simply in a people focused organization.   

Table 1 – Ranking of Factor Influential to Loyalty

Factor Area Average Ranking
Relationships with management Relationships 4.7
Pay scale and bonus structures Company Programs 5.1
Belief and trust in the company and its direction Attitude and Engagement 5.27
Relationships with supervisor(s) Relationships 5.42
Relationships with co-workers/peers Relationships 5.67
Relationships with customers Relationships 7.09
Agreement with the company mission statement Attitude and Engagement 7.63
Employee training and development opportunities Company Programs 7.71
Willingness to promote and encourage involvement with the company Attitude and Engagement 7.9
Flextime policies Company Programs 8.11
Employee feedback mechanisms Company Programs 8.65
Structured career programs Company Programs 8.74
Willingness to sacrifice on behalf of the company Attitude and Engagement 8.76

Additional analysis was also performed to consider company programs, relationships, and Attitude and Engagement with and the participants: Length of time with their current company, Length of time in construction industry, and the highest level of education completed.

Company Programs

Company programs did not predict the amount of time spent with the respondent’s current company. While they could predict time in the construction industry most GCs are not concerned with keeping managers in the industry, but rather in their companies. However, the longer an individual had been in the industry the more important company programs became, so company programs should be geared to more experienced employees.  Flextime policies were more important for employees with greater education, but those same flextime policies became less important over time in the industry while employee feedback mechanisms became more important over time in the industry. So in recruiting and retaining industry veterans, company programs are probably the best bet.

Relationships

Relationships did not predict time in the industry, or education level, however not surprisingly relationships did predict an employee’s time with their current company. Which makes this factor very important in GC efforts to retain their employees. While respondents indicated that relationships with management were most important, the numbers indicate that relationships with customers had a stronger relationship to time with their current company.    

Employee attitude and engagement

Employee attitude and engagement did not have any statistically significant impact on time in the industry, time with current company, or education. So while employees perceive that belief and trust in the company and where it is going affects their loyalty, no statistical relationship could be found between them in the numbers. 

Good relationships among employees with internal and external customers are the most important factor to loyalty. Relationships were perceived to be important to loyalty and the numbers showed a statistically significant link between employee’s relationships with managers, supervisor(s), and co-workers/peers and the amount of time they reported having spent with their current company. So the old rule that it’s all about the people, hasn’t changed and we can see that it is not just about the people, but also their relationships.

 

Authors: 

Colby Humphrey PRC – Pinnacle CCID

Ben F. Bigelow PhD – Texas A&M University

The Making of a Leader: Construction Project Manager

 

Project managers have certainly increased in their importance to their companies, the projects they work on and the construction industry at large. It is the project manager, commonly known simply as the PM, who must possess both knowledge of constructability issues, processes, and many of the same technical aspects of a project as their superintendent AND possess a firm hand on the documentation that supports the project.

It is the PM that often provides information from the field to the office; who oversees the financial side of the project; often acts as the go-between among the contractor, customer and suppliers; and is the back-up for the superintendent. In short, PMs must be multi-skilled, know how to read and interact with people, and have the “patience of Job” as they endure the many imperfect performances of those contributing to their project.

View of a Worker and architect watching some details on a constructionWhen a project is running behind schedule or over budget, it is often the PM who first feels the heat from upper management. When customers want a “live” body to voice their concerns to or lodge complaints with, it is often the PM who is at the receiving end of the communication. When many of their company project members are finished with their contribution to the project, it is the PM who is there until the “bloody end.”

For the larger specialty construction company or the general contractor the PM is a more-defined role that is part of the overall project team. In many cases PMs are college degreed and have purposely chosen the managing of construction projects as their career choice.

But for many smaller construction companies, of any specialty, the PM role might well be filled by the owner, a converted superintendent or by someone that performs both the superintendent and project manager function. I’ve commonly seen the same individual who estimated the job and sold the job to also act as the project PM (when you’re a smaller company everyone wears many “hats.”)

So then, how is a PM…made? Consider the required building blocks of an effective project manager.

Block #1: An eye for detail

One common thread I’ve witnessed over the past 30 years is that most PMs have a bit more detail orientation. It’s a good thing, too, as they are often required to read between the lines of facts, measurements, amounts and quantities. PMs must also have a close eye on contracts, understanding the potential snags and have enough knowledge to “know what they don’t know.”

Block #2: Ability to initiate

The PM must be quick to raise attention to developing issues or early returns from a poor decision. PMs do not need to be hyper-reactive, but they must be quick to correct, modify and not possess an attitude of “It ain’t my job!” PMs leadership is needed and welcomed by most effective field leaders because they recognize the PMs knowledge of the project components.

Block #3: Greater project knowledge

The PM must be the one of the team members most knowledgeable about the intricate details of the project. I have found that most PMs have a more natural bent to look through the “fine print” to spot any possible issues that would throw the project off course or something that a superintendent may have accidentally overlooked. This is not an ego issue; it’s one of necessity and even survival.

Many construction leaders quietly admit that the level of complete drawings and specifications might not be as complete a package “as it used to be” at the start of a project. Yet, the contractor is still accountable to build something that may not quite be 100% completed for drawings. It is the PM that will most often stay on top of engineering and architecture firms for needed revisions and completions.

Block #4: Adaptive communication skills

Though every construction leader needs effective communication skills it is the PM that might square off against the most diverse type of communicators. From interacting with their own project team members to design engineers, architects, city or county officials; to clients, client reps; and finally to the subtrade leaders to suppliers, the PM must possess a tool box of skills and be one flexible “son-of-a-gun.”

Block #5: Professional approach & presence

As if Blocks #1 through #4 weren’t enough, the PM must conduct himself or herself with the greatest of professionalism. From sending letters, submittals, responding to RFI’s, emails, and texts, the PM must project a professional image both in his approach to interacting with others as well as his presence while engaged.

Block #6: Hungry to learn

The best always want to know more. As the old saying goes, “You snooze, you lose!” The best PMs didn’t start off brilliant, but they continue to be hungry to learn new methods, tricks of the trade, better and faster processes to keep a project focused, on-time and at or under budget!

Developing project manager traits

Now, after laying out a few of the building blocks of an effective PM, let’s briefly address how you might begin to develop these traits and skills with your PMs.

1. Assess the PM’s strengths and OFIs. Before applying any training, before sending your PM to any workshop, and before you have them read any books on project management assess where they currently are compared with the six “blocks” presented earlier. Identify the project manager’s obvious strengths as well as those areas that provide the best of opportunities for improvement (OFI). Some of the “blocks” are not taught in college so you’ll need to address those growth needs for your organization.

2. “Rifle shot” your PM’s development. Based on the assessment results, consider targeted solutions for each “opportunity for improvement.” Some OFIs can be improved by attending a class on scheduling or a job costing software program your company uses. Another OFI might produce better results with the hiring of a “coach” or supporting the PM with a mentor. Scatter your development process and you risk scattered results — and not much of it will stick.

3. Match PM to “Project +1.” Assigning a PM to any project should always be reviewed for the complexity of the project, the chemistry of the project team, and the expectations and demands of the customer. However, after this assessment is made on the project the leaders should consider placing the PM on a project that is just slightly above their current level of knowledge and skill, thus the Project +1.

Always move to just stretch the PM, without placing him or her in a very obvious difficult project that he or she just does not have the skills or knowledge to lead. (Obviously, availability of what PMs are in the “bullpen” is also a consideration; unfortunately it all too often is the primary determining factor.)

4. Create a 90-day plan. This plan can be shorted or lengthened per the needs, experience and knowledge level of the PM. Hired a new PM? Create a 90-day plan that specifically identifies weekly learning points. Hired an experienced PM from another company? Create a 90-day plan to ensure that he is embracing and mastering your firm’s processes and requirements.

Both scenarios should include assigning a “coach” who meets with the PM weekly, even providing some testing at the end of the week to make sure retention is taking place. The sooner you spot those PMs who are not “connecting the dots” the sooner you can address needed improvements.

5. Be quick to correct; quick to redirect. This sounds almost too simple, but it’s often not part of a good training process. Your newly hired PM, younger or experienced, is going to make mistakes learning your systems. The best PMs want to know what they are doing, how they are doing and how they can be better. Don’t be nice…address needed corrections and redirect them to better techniques or knowledge.

6. Finally, maintain technical learning. There is much that has changed in just the past five years. Change is the new norm. Whether it is the science of construction, new software or just learning smarter ways of managing projects keep your PM’s mind turned into the wind for continued learning!

As contractors continue to find it difficult to hire the “perfect” employee, the search for talented project managers will be no different. Most contractors are finding that without a consistent commitment to education and training they will eventually build a PM focus that has less discipline, allows poor performance, lacks cutting-edge thinking and results in less profits.

The building of a project manager, like construction, is a combination of science and art. Begin today the science of this building project and identify those technical, process and procedural points that need to be mastered. Likewise, keep an open mind about those project managers who might display a more creative approach, one that respects the “non-negotiables” while looking for improvements that can make the project more profitable! 

 

This article originally appeared on ForConstructionPros.com

Source: The Making of a Leader: Construction Project Manager