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The Five Basics of Fundamentally Sound Construction Operations

The Five Basics of Fundamentally Sound Construction Operations

1. Accurate Estimating
a. Build the entire job, step by step in your head
b. Take a consistent, organized approach (computer OR manual)
c. Take off material in reasonable detail; don’t get bogged down in minutiae
d. Focus on managing your biggest risk- LABOR
i. Estimate labor & equipment hours required for each major task
e. Obtain signed Subcontract quotes for the ENTIRE scope of sub tasks

2. Conversion to Accounting (Successful Projects only)
a. (More numerous) Estimate items into (fewer) effective Cost Codes
b. Be realistic about what field personnel can track ACCURATELY
i. Provide the field the tools to succeed
1. Communicate your expectations CLEARLY
2. Provide good time sheets,  daily report forms, etc.
3. Provide laptop, fax, high-speed internet, etc.
(or whatever it takes to keep communication flowing)

3. Project Scheduling
a. Planning to succeed
b. Updating your Plan-weekly (or minimum 2x monthly)

4. Project Tracking – Daily Job Reports
a. Report progress- daily
b. Report cost-coded Employee Time- daily

5. Project Reporting
a. Enter employees’ time  into payroll system- daily or weekly
b. Compare the Plan to Reality- weekly
c. Print updated As Built Job Cost & Schedule reports- weekly
d. Review & Discuss Reports with Project Superintendent (maybe yourself)- weekly
i. Take appropriate action to fix overruns before it’s too late
ii. Time is Money- finish early if you can

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