Value Management & Life Cycle Costing

Performance of construction projects and indicators

Construction business involves participation of client, contractors, subcontractors and regulators. It is important that the Construction Company should have a plan that defines and evaluates the performance of a company.

Everyone will agree that delays can be ignored if there is no compromise on quality, productivity, and cost and client satisfaction. But point of argument comes in play when health, safety and environmental factors among client and contractors are a cause for concern.

Many events need special attention like material and resource shortages or occurrence of accidents. Change in design or schedule due to unexpected discovery of something like price hike, problem finding highly qualified and skilled project manager can derail a project from the course of completion on time. A predefined contingency plan can help in mitigating these risks. Following are the different stages for which contingency plans can be prepared:

1- Investment: where client decides how much to invest and when.

2- Authorization: where client officially gives permission to contractor to start work

3- Occupancy: where project can be used.

4- End of Evaluation: date up to which contractor is legally obliged to make amendments to the project.

5- End of project: date after the contractor is not legally responsible for the project.


Problem of performance in construction industry

Normally any construction project fails or gets in troubles because of delays. Performance issues can be categorized as follows.

1- Shortage of resources: lack of availability of budget, material

2- Client or consultant incompetence: design issues, planning hindrances, permissions or approvals, and so on.

3- Inadequacies of contractor / subcontractor: delays, shortage of skilled labor, management change, incorrect tools and techniques.


Construction management and performance

One of the main factors that could affect performance is management, which includes progress not up to the mark, budget over runs, conflict in contractor and client relationship, disputes, unavailability of subcontractor, and so on.

Effective communication between team managers can help accelerate project management, aiding in planning, efficient coordination and smooth execution.

Assessing the Risk Factors of Project Planning

Assessing the Risk Factors of Project Planning

Risk planning and management is carried out to avoid losses to wastage of time and expenses. Project managers who are keen on perfect planning and error free completion of projects always complete on time, which saves financially and produces desired results.

On the other hand some times projects hit a road block created from either inefficiency or bound problems. If something goes wrong then everything falls apart. Losses are not only monetary but in the end a complete project failure results in a bad image for the company.

There is a bright side however, following successful example of formulation, implementation and management of a risk free project development is all that matters between success and failure.

Risk identification

Identifying risk before planning. If there are mishaps that occurred in previous projects, then these will be good measure to identify  future risk management considerations. Nothing can be left for tomorrow because tomorrow never comes.

The project management should give a chance to every experienced and diverse members of their team to eradicate possible risks. Feedback should be greeted on every level ranging from human resource, engineering, operations and even supply chain. Marketing perspective should also be considered, they are the ones who have to sell.

Importance should be given to communication during the calculation of risk factor and planning. This can help project manager to analyze risk and eradication. Once risks are identified, planning for Dos and Don’ts become easy.

On completion of planning, calculated risk shouldn’t be ignored but must be reviewed time to time as project goes to completion.

Concerns should be heard at every weekly meeting, there might be a significant development which need to be contained. Monthly meeting present a possibility to review progress and map road ahead. Where new risk factor can be treated as such. This sort of attention focuses issues which are otherwise missed.

Pre-Construction Risks

The identification of risks saves the chances of any possible problems which might create difficulties to complete project on time.

For example accepting contract which was defaulted by someone else, now there are pretty good chances of unknown stumbles which can be identified by thorough investigation of site. Which in turn saves precious time to find the problem at hand.

It’s impossible to determine in advance the cost of project, which in future could be a success or a complete failure. This can be achieved by only using professional understanding, which comes only with hitting deadline for the project, dependency and unexpected cost.

Even well-thought risk calculated plan may often come under great criticism. Avoiding these circumstances is possible with timely, disciplined and informed decision.

Realistic Project Schedules

Set the timeline for the project, which will work. Setting timeline to show competitiveness causes failure, in most cases which happens.

Schedule should be flexible, change is the only thing perfect in this world and always stands true. Make every decision considering possible backup plan. Talk to team members. Project managers should not be amazed by delays. Project requires constant vigilance.

Review of schedule is important from two to four weeks. More frequently in start and end of project. Changing plan doesn’t mean all is lost. It’s natural to happen.

Without strict schedule project can be delayed. Project manager should identify risk at the beginning of project. Constant review of schedule avoids problems. Everyone’s focus on team-work results in a sucessfull project.

Avoiding delays on construction projects 2

Avoiding delays on construction projects

There is no place for errors or miscalculation in construction projects. Slight delays can result in increased production cost. In large projects the probability of occurrence of these circumstances is great. Unique skills and co-ordination are required for smooth running of operation along the way. But delays can appear from anywhere like design, planning, uncertain site conditions, deliveries and so on, as consequence delays are irrefutable, which results in late project completions.

Delays can due to following reasons:

  • Distinctive project
  • Decision without calculating risk
  • Unrealistic schedules
  • Miscommunication
  • Productivity issues
  • Lack of resources
  • Dependencies
  • Financial issues
  • Site problems
  • Act of nature

Delays can be reduced by

  • Risk management
  • Thorough site investigation
  • Co-ordination
  • Calculated scheduling
  • Commitment to the project


Types of delays

  • Delays caused by neutral reasons
  • Delays caused by client
  • Delays caused by contractor

Some of delays the completion deadline, other have not much effects.

Delays casued by neutral reasons

These types of events are not irrelevant but they are not fault of either contractor or client. Usually they are

  • Act of nature like earthquake, intense rain, storms and so on
  • Terrorism
  • Undertaker’s work
  • war or an epidemic
  • Strikes
  • Change in project
  • Delays by waiting for permit

delays caused by contractor

When impacts on completion date because of contractor then contractor is to pay liquidated and ascertained damages (LAD’s) to the client for delays.

Concurrent delay

Concurrent delay refers to a situation where multiple events influence the completion date at the same time. But in most of them contractor is not responsible for additional cost and delayed completion date. Calculating impact of these multiple events would be difficult and varies in every case. This is important that contractor and client closely monitor all the events so that completion date is not affected.

mitigation acceleration 

In case of compensation event, acceleration agreement is a possibility to purge claims, loss of time and additional expenses. Following measures are helpful

  • Additional worker be deployed
  • Revision of strategy
  • Phased completion
  • Increase in working hours (holidays and night shift)
  • Close observation
  • Alternation to the project (if possible)



The top 4 causes of construction safety accidents

Any construction site can’t be too careful when it comes to accidents. Accidents could be of any sorts, some time many small accidents also have big impact on the project timeline. The best you can do is to make sure all safety precautions have been taken.

To minimize accident on your site, understanding the main reasons is important so that severe injuries can avoided. It would be impossible to eradicate accidents without knowing them first. Simply nothing can be left to chance.

Construction safety accidents can be divided in to 4 main categories, which are list below.

Electrical Incidents

We normally in our daily lives, almost forget that electricity how dangerous it can be. Daily safe interaction give us feel of comfort but it’s not the case on construction site. Some times to speed up the process and cover lost time, getting close completion date creates anxiety and pressure. Which are the basic reasons why accidents happen on construction site. Here are few possibilities that could affect your workers on the next bright sunny day.

  • Overhead power lines
  • Equipment not used
  • Electrical maintenance
  • Extension cords not properly used
  • Diggings
  • Ignition of flammable atmospheres


Walking on the road is nothing like walking outside high-rise building on two to three feet of path. Such walk is out of question for many people. Without any safety measures working like that no one can be too lucky to get away daily. That’s how people fall from construction sites and falling is one of the cause of death on construction site. Here are few hazards to avoid.

  • Unprotected sides
  • Portable ladder not used correctly
  • Scaffold not in proper condition


Accidents on construction site is not limited to be electrocuted or falling. Working with heavy equipment has made its name to become part of the category. These heavy equipment usually include cranes and trucks cause’s people to lose their body parts or death. Constant awareness of surroundings help nothing like anything like object could fall from anywhere or unstable wall can cause much damage that a person will have to rest at least a month.  

Trenching and Evacuation

People usually see cave-ins as the main cause of fatal accident. But there are other factors to consider before trenching. Following are few examples.

  • Toxic gases
  • Low oxygen
  • Underground pipes and lines
  • Drowning

Taking safety measures can only reduce accidents on construction site. If you can think of something please make a comment.