COST CONTROL AND PRODUCTIVITY IMPROVEMENT
Acknowledgements
Forward
About the Author
Special Thanks To Contributors
SESSION ONE: SURVIVAL SKILLS IN THE CONTRUCTION INDUSTRY
Course Introduction and Methods 1.2
Instructor Introduction 1.2
Time and Class Meetings 1.2
Class Participation and Assignments 1.2
Group Work 1.3
Outside Assignments 1.3
Attendance 1.3
Successful Course Completion Leading to Project SuperVISION® Professional Credentialing 1.3
What You Are Accountable For 1.4
How to Use the Materials 1.5
Overall Course Pre-Test 1.5
Overall Course Objectives 1.6
Introduction To Project SuperVISION 1.8
Project SuperVISION® Core Courses 1.9
Project SuperVISION® Professional Certification Process 1.10
Professional Certification 1.10
Four Different Levels 1.11
Step 1 - Application 1.12
Step 2 - Continuing Education/Other Relevant Experience 1.12
Step 3 - Verified Competency and Verifier's Ratings 1.12
The Professional Construction Supervisor
Follow-Up Program and Forms 1.13
The Project SuperVISION® Academy 1.17
The Project SuperVISION® Program Vision and Mission 1.17
Key Content in this Session 1.18
Learning Objectives 1.19
Introductions - Course Participants and Instructor(s) 1.20
My Personal Objectives For This Course 1.21
Exercise - My Personal Course Objectives 1.21
Industry Cycles and Profit Margins 1.22
Where the Money is Spent in a Construction Company 1.27
The Impact of Field Production Cost Savings – the Bottom Line 1.31
Constructing in a Global Market 1.34
Profit is Not a Four-Lettered Word 1.36
Three Ideas for Implementation 1.40
SESSION TWO: THE ELEMENTS OF PRODUCTION
Introduction and Key Content 2.1
Learning Objectives 2.2
The Estimating Process 2.3
Diagram: Overall Flow of Project Information 2.5
Different Levels of Cost Detail
Different Positions in the Company 2.8
Organization of Project Costs and Technical Requirements 2.11
Production Cost History Applications in Estimating 2.15
The Estimating Process – many versions
Use of computers to assist 2.18
Cyclical Tends in Material Cost Escalation and Availability 2.26
Large Projects – vs – Small Projects 2.28
Project Overhead Costs 2.29
Field Employee Participating in the Estimating Process 2.29
Implicit in the Contractor’s Bid 2.30
“Ownership” of the Project Budget by the Field Supervisors 2.31
Project Cash Flow – Company Cash Flow 2.32
Three Ideas for Implementation 2.34
SESSION THREE: MEASURING PRODUCTION
Introduction and Key Content 3.1
Learning Objectives 3.2
How Unit Costs Work – A Deeper Understanding; Components of Unit Costs – Productive, Supportive, Non-Productive 3.3
Measuring Productivity:
Productive, Supportive, Non-Productive Work 3.7
Production – vs. – Productivity 3.11
Productivity: Efficiency – vs. – Effectiveness 3.15
Levels of Cost Detail: Estimating – vs. – Production 3.17
The Pareto Principle 3.18
The Contractor’s Quantity Takeoff and Estimate 3.20
Preparing an Estimate for a Change Order 3.21
Exercise: Self-Perform Work – or – Contract-Out 3.23
Accurate Cost Coding in the Field 3.24
Three Ideas for Implementation 3.26
SESSION FOUR: PRODUCTION AND PRODUCTIVITY ANALYSIS TECHNIQUES
Introduction and Key Content 4.1
Learning Objectives 4.2
Creation of the Project Budget 4.3
Comparing Field Performance to the Project Budget 4.11
Analyzing Components of the Construction Process 4.12
In-Class Work Sampling Exercise 4.15
The Cumulative Impact of a “Small” Improvement 4.18
Spending Money to Make Money 4.22
Optional Additional Exercise: Working Sampling on a Construction Site – Two Person Teams 4.23
Three Ideas for Implementation 4.24
SESSION FIVE: COST REPORTS AND REPORTING CYCLE
Introduction and Key Content 5.1
Learning Objectives 5.2
Team Exercises: On-Site Labor Reporting 5.3
Class Exercise: A Job Cost Report 5.9
Web-based Project Information Management 5.12
The Construction Learning Curve 5.16
Challenges in Forecasting Cost-to-Complete 5.17
The Many Uses of Cost Reporting Information 5.19
Three Ideas for Implementation 5.21
SESSION SIX: TOOLS AND TECHNIQUES FOR PRODUCTIVITY IMPROVEMENT
Introduction and Key Content 6.1
Learning Objectives 6.2
History of Productivity Analysis in the Construction Industry 6.3
Managing Unit Costs is Only a Beginning 6.5
Administratively Controlled Work – vs. – Method controlled Work 6.12
Example: Method Controlled Work 6.15
What is Construction Cost Breakthrough? 6.19
Industry Examples of Construction Costs Breakthrough 6.20
Team Exercise: Video Productivity Analysis Techniques 6.24
Class Exercise: Selecting the Best Tools/ Equipment/ Supplier 6.25
Other Performance Improvement Opportunities 6.27
Three Ideas for Implementation 6.30
SESSION SEVEN: ADVANCED PROBLEM ANALYSIS / DECISION-MAKING TOOLS Page
Introduction and Key Content 7.1
Learning Objectives 7.2
Creative Problem Solving 7.3
Sunk Cost and Diminishing Returns 7.8
Exercise: Use of Diagramming Techniques to Understand a Problem 7.11
Benefit / Cost Analysis 7.13
Team Exercise: Benefit / Cost Analysis 7.16
Decision Tree Analysis 7.17
Team Exercise: Decision Tree Analysis 7.18
Cause and Effect Diagrams 7.19
Team Exercise: Cause and Effect Diagram 7.20
Selecting the Right Equipment Combination 7.22
Team Exercise: Equipment Selection 7.22
Outside the Box Alternative – vs. – Traditional 7.23
Three Ideas for Implementation 7.25
SESSION EIGHT: CONSTRUCTION: CHANGE IS THE ONLY CONSTANT
Introduction and Key Content 8.1
Learning Objectives 8.2
The Monthly Meeting With Management 8.3
The Flow of Information and Work On-Site 8.4
The Monthly Progress Payment Process 8.11
Integrated Project Information Management Systems 8.27
The Change Order Process 8.31
Getting Paid for Work Changes in the Field 8.35
Three Ideas for Implementation 8.41
SESSION NINE: CONTRACT LAW, TORT LAW AND ENVIRONMENTAL LAW
Introduction and Key Content 9.1
Learning Objectives 9.2
Our Litigious Society – Examples and Discussion 9.3
Standard Form Agreements – Advantages and Disadvantages 9.6
Review and Discussion: Examples of Typical Contract Terms
And General Conditions 9.8
Contractual Notice Requirements 9.17
Force Account Work 9.18
Types of Bonds on a Construction Project 9.19
Strategies for Contractors Without Bonding 9.21
Differences in State Law 9.22
Environmental Law Considerations 9.23
Contractor Tort Liability 9.24
Three Ideas for Implementation 9.28
SESSION TEN: PROJECT CLOSEOUT, GETTING PAIDON AND COURSE REVIEW
Introduction and Key Content 10.1
Learning Objectives 10.2
Substantial Completion – vs. – Final Completion 10.3
How Much Retainage to Release 10.5
The Process of Final Inspections, Approvals and Payments
Profits Fade 10.8
Customer Satisfaction 10.9
The Contractor Licensing Boards 10.11
When to Contact the Bonding Company 10.12
When Lien Rights Apply 10.13
Overview of Alternate Dispute Resolution 10.15
When is it Worth Going to Court? Getting Ready for Court 10.22
Three Ideas for Implementation 10.24
Glossary
Index
Recommended Reading Short List