Extract
By integrating best practices in construction project management, from sound design to detailed planning and controlled execution, construction excellence can be achieved. This translates into profitable projects, without delays, and with maximum quality and safety.
Contents
The Challenge of the Real Estate Developer: Achieving High Performance Projects
Effective project management in the fields of Architecture, Engineering, Construction and Operation (AECO) is a considerable challenge because each project is different in terms:
Technical-legal, to ensure its viability before regulatory bodies.
Commercially, to validate that there is a demand for the product.
Financially, to study the profitability and define whether it will be done or not.
Constructive, to properly design and plan the project.
These variables can make it difficult to obtain the expected value, generating waste, variations and stoppages that affect the workflow. This can lead to cost overruns, late deliveries, hidden defects and accidents in the workspace, forcing developers to have bonds and guarantees from the beginning to cover potential risks and errors.
Keys to Achieve Profitable Constructions, without Delays, and with Optimal Quality and Safety
To address this situation, one must encourage new ways of thinking and acting throughout the real estate development process. This implies studying, applying and implementing best practices adopted from the most notable success stories in the industry. Among the most important are:
Have a Complete Design, Analyzed and Freed from Interferences and Incidents to foresee and prevent problems that may affect on-site execution.
Develop a Clear, Well-Defined Planning, Achievable and Understood by All to have a clear definition of what, who, how, when and where will be work happening at a certain time.
Have a Leadership that Integrates the Parties Towards Achieving Results to align the short term (the week), the medium term (the month) and the long term (the entirety) of the project.
Properly Manage Financial, Human and Material Resources to cover the development and control of execution.
Focus Teams Towards Release of Constraints so that things happen when they should happen.
1. Complete Design and Problem Prevention
Design lays the foundation for a successful project. The first step towards excellence in execution is a complete, analyzed and interference-free design. When the quality of the design process, or the delivery of project documentation (the so-called Transmittals) is deficient, the following arise:
Information Requests (RFIs) to clarify or confirm information.
Change Orders (O.C.) that modify the project.
Proposals (Submittals) with alternative solutions that require approval.
Which must be addressed to avoid hindering project progress and limiting project variability.
BIM Modeling: The Design Generation
Thanks to the technological advances in the construction industry, the use of BIM models has made the design process more efficient thanks to the automatic detection of interferences between construction elements.
Virtual Design and Construction (VDC): Design Management
In turn, the early involvement of architects, engineers and specialized consultants has become crucial to ensure that the design is robust and conflict-free in order to avoid delays and unexpected costs.
With a clear vision, meticulous planning, and a commitment to excellence, real estate developers can create projects that are not only financially successful, but also impactful and long-lasting.
2. Clear and Well-Defined Planning
Planning is the backbone of any successful execution. A clear and well-defined work planning establishes a route to follow, answering critical questions such as "What comes next?". Each project requires an analysis based on its specific needs and the capabilities of the companies and people involved in its execution, considering variables such as:
The Necessary Progress to meet the profitability of the project.
The Expected Cost so as not to incur overleveraged.
The Available Economic Flow to execute the project.
Takt Planning: The Rhythm of the Project
Considering the previous variables helps us determine the “rhythm” of the project, which must be as accurate and balanced as possible, seeking not to fall into extremes and to be able to adequately satisfy the needs of the project:
Excessive saving can lead to waiting times and mental overload, resulting in fatigue, equipment wear and tear, and safety risks that can end in incidents and accidents that leave tasks unfinished.
Disproportionate increase produces productivity spikes that must be managed properly to avoid incurring cost overruns and loss of administrative control at the workplace.
Takt Controlling: The Synchronization of the Parts
If the parts of the project move at different speeds, blockages, delays, stoppages and bottlenecks are generated that must be resolved to achieve the start-up, continuity and/or closure of activities, and prevent work from waiting for workers and workers from waiting for work.
Open and transparent communication between all stakeholders is key to ensuring that everyone is aligned and committed to the project objectives.
3. Effective Leadership for Team Integration
Effective leadership is essential to integrate all parties involved in the project and ensure they are working towards a common goal. It is crucial to establish an effective command order and apply different leadership styles (situational leadership) to direct efforts towards achieving short, medium and long-term results of the project.
Lead Beginners
To those enthusiasts, eager to learn and committed who are just joining the project and/or their work, we must provide clear instructions and close supervision to ensure that tasks are completed correctly.
Example: “Supervises that the specifications of this blueprint are met for the casting”.
Coach the Disoriented
For those who are unmotivated or who distrust their abilities, we must provide constructive feedback and encourage the development of their skills.
Example “I see that you do a lot of manual work, it is better if you do it in this automated way”.
Advice the Competent
For those who are motivated to contribute to decision-making and who are willing to be heard, we should offer advice, ask critical questions and help in the informed decision making during complex situations or strategic decisions.
Example “I see that this supplier has other similar products, how about we visit them?”.
Delegate to Experts
For those who can direct themselves to achieve guidelines, goals and results, we must define objectives, trust the team, and allow them to make decisions and solve problems independently.
Example: “Take charge of today's laundry”.
From directing and supervising closely, to delegating responsibilities when mature enough, leaders must inspire trust, foster collaboration and proactively resolve conflicts to maintain team momentum and motivation throughout the project.
4. Efficient Resource Management
Obtaining and managing resources is crucial for project success. From sufficient financing to the recruitment and retention of trained personnel, through the efficient management of materials and machinery, each aspect contributes to the development and control of the construction process.
Use of Financial Resources
The use of financial resources from financing and capitalization sources and mechanisms as Development Capital Certificates (CKDs), FIBRAs, Own Capital, among others, are key to maintaining liquidity and guaranteeing the cash flow required to support the construction process from land acquisition to final delivery.
Recruitment, Selection and Retention of Human Resources
Recruitment, selection and retention of labor is essential in an industry that remains largely artisanal. The continuous training and security are essential for maintaining an efficient and motivated work team.
Care and Use of Materials and Machinery
The proper classification and management of materials, as well as the efficient use of machinery, directly impact the profitability of the works. Classify inputs based on their complexity and criticality, and define specific strategies for its acquisition, mitigate the risks of shortages.
It is important to develop a detailed sourcing plan and closely monitor resource usage to avoid budget deviations or material shortages that could affect project progress.
5. Team Coordination and Risk Management
Coordination between teams seeks to ensure the unhindered flow of project execution. It involves constant communication, quick resolution of problems, and removal of restrictions that may hinder progress.
Tools and Processes for Effective Construction Project Management
To achieve this, three key elements are used to facilitate the visualization of the status of the projects, as well as the identification and analysis of deviations that may occur during execution:
Visual Management with the use of Kanban Boards and Digital Reports in Real Time of the Work that will allow us to transmit information in an obvious, orderly and updated manner.
Establishing Effective Events with meetings of standard duration with clear and disseminated objectives that are carried out periodically.
A Management by Results where indicators are measured that help us identify areas of opportunity to anticipate and/or correct course.
Security Management
Due to the numerous processes involved in this transformation process, risk management and safety are essential for the continuity of the works. From…
Traffic/Pedestrians on surrounding roads,
Hazardous energies in ATEX Areas,
Moving plant equipment,
Start-up activities,
Waste and hazardous materials,
Chemical/biological substances,
lifting operations,
Fire from welding,
environmental risks,
work at height,
Living Services,
Noise,
Dust,
Court,
Light,
Among other risks,
Accident prevention and safety training are key elements to ensuring a clean and safe work environment.
Conclusion: Design, Planning, Execution and Control of Excellence
These practices address key components of on-site operation to improve project outcomes, from:
The Design, to implement new tools like BIM and leverage new processes to ensure design integrity.
Planning, by improving planning methods and releasing restrictions that impact the flow of execution.
Execution, by optimizing work methods on site and managing the variables that affect the work.
Control, by ensuring the pace of execution and solving problems to avoid deviations.
By maintaining high standards of quality and safety, and efficiently managing all aspects of the project, it is possible to achieve excellence in the execution of construction projects, overcoming challenges and taking advantage of opportunities in a market as competitive as real estate.
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About Pablo Tellaeche (Author):
Owner and main consultant of TACs Consultores, Lecturer and University Professor; seeks to bring a true and positive Culture Lean and Digital Transformation to any company with which you have the pleasure of collaborating.
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