Article provided by Resolution Management Consultants, Inc.
NEW JERSEY - It’s the height of summer and construction projects are on the rise. However, supply chain restrictions and material and labor shortages have added an element of delay that requires contractors to navigate these issues to minimize impact on the current project duration and budget. While there is no blanket road map for negotiating resolution of these or similar unforeseen impacts, by implementing best practices of construction management, contractors and project managers can put themselves and their work in better position to mitigate the effects and achieve more successful results.
Whether work is frozen or moving forward, the first step is making a thorough record of the then-current project progress prior to the occurrence of the schedule impact or event.
“The ongoing impacts of the past year have caused a number of delays in the building supply chain, leaving all parties vulnerable to scheduling delays,” explains construction management thought leader Jim Gallagher, Principal of Resolution Construction Management, Inc. “Project managers may need to reallocate resources to move forward, but that doesn’t mean they should do so from a short-term perspective. Each project and contract involves different parameters to negotiate resolution, but record keeping, planning, and communication are critical to staying on top of the daily changes resulting from these impacts.”
Gallagher offers 4 tips for contractors to make sure their teams and resources are being best utilized now and into the future as scheduling obstacles resolve:
Be Proactive, Preserve a Snapshot
Whether work is frozen or moving forward, the first step is making a thorough record of the then-current project progress prior to the occurrence of the schedule impact or event. This way, project managers can delineate between progress achieved prior to versus after the impact(s) were experienced. These snapshots in comparison will prove beneficial in establishing the effect of the impact(s) and place the contractor in a better position to seek recovery for the resulting cost and time increases.
Think Outside the Box - Consider Efficiency and Feasibility
Every construction project faces a varied set of impacts and challenges. For some, it will be better to freeze work internally to best preserve resources, while others will need to find a way forward in spite of complications and disputes. Being flexible may also help to reduce future claims.
Update and Revaluate Work Plan and Project Schedule
Construction plans and progress should evolve throughout the performance of the work and be regularly revaluated to ensure work can continue to stay on track as closely as possible. Assuming that impacts will stay consistent through an ongoing event is setting a project up for greater difficulties in later phases.
Trust but Verify - Establish a plan forward
Factoring in cost increases, materials shortages, and difficulty finding skilled labor may require new plans for projects that leave room for greater flexibility. Though scheduling impacts may have changed the original planning, the most important goal – completing the work – will depend on being able to continue working while minimizing the effect that such impacts have on the overall project budget and duration. Careful thought should be provided to ensure that revised work plans, regardless of how well intentioned, do not merely shift the problem down the road when the options to minimize the effects of such impacts may be further limited.
Factoring in cost increases, materials shortages, and difficulty finding skilled labor may require new plans for projects that leave room for greater flexibility.
Notes Gallagher, “delays are a familiar part of the construction industry, but they don’t have to derail work entirely. The path to resolution will depend on the specific operations laid out in each contract, but documentation and adaptability are essential to better outcomes for parties at all levels of a project.”
About Resolution Management Consultants, Inc.
Resolution Management Consultants, Inc. (RMC) is a nationally recognized consulting firm headquartered in Marlton, NJ. There are two sides to the business: the construction planning and management aspect − helping clients build more successful projects − and the litigation aspect − should matters go to court, providing analysis and testimony as expert witnesses. Founded in 1993 by veterans in the construction, contracting and engineering professions, RMC has assisted numerous private owners, public agencies and contractors in either achieving project goals or resolving cost and time disputes between the contracting parties.