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CE 514 – CONSTRUCTION METHODS & PROJECT MANAGEMENT

Self-Paced Learning Material

Lesson 3: CONSTRUCTION PRE-PLANNING

The Importance of Pre-Construction Planning


Complete pre-planning and scheduling are vital to the success and profitability of a construction project.
While the size of the contract affects the time required to complete the planning, it does not impact the
need for a plan. For maximum success, the company management must commit the necessary resources
to accomplish all planning before the start of construction whenever possible.
This planning serves three primary purpose:
1. Achieve agreement on targeted profit by the project manager, senior management and field labor.
2. Create a well-thought-out, finalized, workable plan and schedule.
3. Identify additional profit opportunities to be investigated and risks to be avoided.

In pre-planning a project, the construction team will focus on timely meeting all project requirements. It
is important to start closing out the project immediately upon its beginning, regardless of the projects
duration.

During project closeout, each contract requirement is completed, one by one, until all have been satisfied.
If this commitment to completion is not made from the start of the project, a project manager may fine
that work has to be performed more than once, too many activities must be completed at the end of the
project, and retainage collection is significantly delayed. All these problems are certain to increase cost.
Moreover, an incomplete or inconsistent closeout process runs the very real risk of damaging the
relationship with both the owner and the designers. The best contractors are able to develop strong, long-
term relationships with clients that provide the foundation for long-term profitability.

Pre-construction planning is designed to maximize the input of company experience and to compress
project planning into a definite time frame at the beginning of the project. It is mandatory that each phase
produce a written plan including a list of construction and administrative activities, persons responsible
for each activity, a time period during which the activity will be performed, and deadline dates. This plan
may be a simple list, a bar chart listing activities, or a complex network of actions. Management needs to
know that the company’s accumulated knowledge and company philosophy have been communicated to
and understood by the project manager and field labor. The only wat to ensure that communication is
complete is to secure feedback in the form of a written plan that can be monitored, managed, and
controlled.

The company makes a profit my making this happen, and that requires a good written plan. Without the
plan, the company is in the position of reacting to project conditions, often resulting in poor handling of
the project. With a written plan, the company in a manner most favorable to the progress of the work and
ultimate maximization of profit.

Objectives of Pre-Construction Planning


1. Enhance visibility at the project outset. The project manager and his key support people will be
aware of the project goals and understand how to build the project logically and profitably. This will
provide the team with the confidence that only knowledge and planning can bring. In addition, it frees up
time during actual construction to manage, increase productivity, identify profit opportunities, lend
assistance to other project pre-construction planning, and maintain the kind of jobsite management that
drives project pride and profitability.

2. Encourage maximum knowledge of the project. A thorough analysis of the schedule, including the
contract and the scope of work, fosters understanding of the responsibilities of the various players,
including the general contractor, construction manager, owner, architect, engineer, and other
subcontractors.
CE 514 – CONSTRUCTION METHODS & PROJECT MANAGEMENT
Self-Paced Learning Material

3. Improve cash flow. Having a billing plan, change order plan, risk avoidance plan, and claims avoidance
plan put the contractor in a position for regular payments and early retainage collection. Performing
flawlessly encourages the owner to reward the contractor with predictable cash flow.

4. Create an environment on intense activity. Management must make a commitment to ensure that
each phase of pre-construction planning is on time and complete, each team member performs as agreed,
and the project begins with a complete written plan. This will set the example for similar intense activity
during the construction phase and will encourage the controlled sense of urgency desired for planning
and construction of the project.

5. Increase jobsite productivity with improved material and tool logistics, improved verbal and written
communication, improved relationships with project contractors and subcontractors, and the use of
short interval/lean planning on the appropriate projects. Productivity will increase dramatically on the
current project and will become consistent between projects.

6. Use the company’s combined knowledge, insight, and experience to improve the project by
including the project management team, other project managers, field foremen, and people with
specialized skills on the front end of the project.

7. Achieve complete buy-in from the project team.

THE PRE-CONSTRUCTION PLANNING PROCESS

1. Present the project.


CE 514 – CONSTRUCTION METHODS & PROJECT MANAGEMENT
Self-Paced Learning Material

2. Select the project team.

3. Risk Management with Insurance and Bonding Review

4. Negotiate the contract


CE 514 – CONSTRUCTION METHODS & PROJECT MANAGEMENT
Self-Paced Learning Material

5. Review project documents


CE 514 – CONSTRUCTION METHODS & PROJECT MANAGEMENT
Self-Paced Learning Material

6. Evaluate Estimates

7. Identify and evaluate the construction team


CE 514 – CONSTRUCTION METHODS & PROJECT MANAGEMENT
Self-Paced Learning Material

8. Develop a Project Schedule

9. Review Proposed Subcontracts


CE 514 – CONSTRUCTION METHODS & PROJECT MANAGEMENT
Self-Paced Learning Material

10. Review Material and Equipment Requirements

11. Develop a Labor Plan and Productivity Measurement System


CE 514 – CONSTRUCTION METHODS & PROJECT MANAGEMENT
Self-Paced Learning Material

12. Review Unique Project Conditions

13. Enhance Profitability


CE 514 – CONSTRUCTION METHODS & PROJECT MANAGEMENT
Self-Paced Learning Material

14. Develop a change order plan

15. Develop a claims avoidance plan


CE 514 – CONSTRUCTION METHODS & PROJECT MANAGEMENT
Self-Paced Learning Material

16. Develop a special risks and safety plan.

17. Develop a Human Resources Support Plan


CE 514 – CONSTRUCTION METHODS & PROJECT MANAGEMENT
Self-Paced Learning Material

18. Develop an Accounting and Financial Plan

19. Review the Final Project Plan

reference/source: https://www.mcaa.org/pca/wp-content/uploads/sites/3/2016/07/M4PDF.pdf

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