Showing posts with label construction firms. Show all posts
Showing posts with label construction firms. Show all posts

Tuesday, August 26, 2014

How to Manage Construction Projects During a Rainy Summer

Experts are predicting an increasing number of extreme weather events as a result of global climate change, an important reason for construction firms to look very closely at how they manage the risks associated with bad weather. Build the expectation of bad weather into your planning this summer to keep projects moving and profitable, Construction Global writes.

The weatherman never lies
Recent events have shown the severe impact that extreme weather can have. Heavy snowfall during the 2010/11 winter period in Germany saw construction output in the country decline by a staggering 24 percent. In France, heavy rainfall in February 2012 forced many construction sites to suspend work, delaying the country’s economic recovery from recession.
Across Europe the weather has become more extreme, with wind speeds in Sweden predicted to increase by 0.8m/s per month and winter rainfall to rise by 50mm per month over the next century. In the UK, a recent study by BRE (Building Research Establishment) predicted a six percent increase in wind speeds and every site manager knows the effect that crane downtime as a result of wind can have on productivity.
Plan for bad weather
A proactive and well-planned construction project should allow for unforeseen weather conditions and have in place measures on site designed to mitigate the effects, protect worker safety and cut down on wasted materials and manpower. Construction project planning software can help you to build this contingency into your project management.
A specially-tailored construction weather forecasting service such as the one offered by the Met Office, could provide invaluable advanced warning of bad weather to help plan for delays or re-programme work accordingly.
Take protective measures
Rain on sites can create difficult working conditions for operatives, potentially loosening their grip on tools and machinery and creating slippery surfaces, leading to accidents. Site managers might therefore consider installing protective sheeting around scaffolding, which can also mitigate against wind, or temporary roofing structures.
In addition, polythene sheets can be used to cover construction materials to prevent water damage and straw-filled matting and polyurethane foam used to protect materials from the effects of frost and snow in the winter.
Understand your contractual obligations
If you are forced to stop work as a result of bad weather and the project is delayed, you should understand your contractual obligations in such a situation.
According to the solicitor Gullands, bad weather is treated as a 'neutral' event under most building contracts. This means the builder is normally entitled to an extension of time if the delay is likely to prolong the completion of works, but not to payment for any loss or expense suffered as a result of the stoppage.
In general, if a contract overruns, a financial penalty is imposed on the builder. So, when a delay occurs as a result of bad weather it is important to make an application to the contract administrator for an extension of time on the basis that the delay was not caused by you.
To ensure an extension of time is granted, you must give full details of the delay and identify any event considered a 'Relevant Event' as well as estimate any delay to the completion of works beyond the original completion date.
Takeaways
To limit the impact of bad weather on your construction project, make sure you do the following: Build a contingency into your project plan to allow for unexpected delays; protect your site from adverse weather conditions to prevent accidents from occurring; understand your legal obligations in the event of bad weather delaying your construction project; use construction project planning software to manage any delays that are caused by bad weather.
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OCTAGON CONTRACTING & ENGINEERING
Phone: (+4)021.232.39.20

Friday, August 8, 2014

Where Do We Go From Here? Construction Trends for 2014




     Amid reports of expected growth in the construction industry, business owners and executive teams continue to focus on controlling costs and estabilishing internal operations to successfully navigate the economic recovery, Global Construction writes.

     The recession of 2008 resulted in construction firms slashing costs and rightsizing their companies, while struggling to maintain cash flow and retain key project personnel. Expectations are that backlogs will increase during 2014 and a renewed focus on job selection, appropriate allocation of resources and utilisation of new technology will help companies successfully manage growth.

Focus on Profitability

During the recession, construction firms were forced to operate under an environment of survival. The overriding focus was cost reduction and lean production. Companies were happy to accept projects that resulted in minimal margins in order to keep the doors open and retain key project personnel.
As the economy strengthens, construction firms need to re-think their approach to the market and focus resources to projects that will provide an acceptable return. As the quantity of opportunities continues to increase, so will the quality of projects available for firms. It is critical for executive teams to define an acceptable return in their market and require that new opportunities meet a stated gross profit percentage.
     Estimation and project management teams should spend time on projects that fit within the strategic vision of the company without the distraction of low margin jobs that expose the company to performance risks.
     Construction firms can further reduce uncertainty by bidding on and securing work that fits the company’s unique talents or specialty and by confining opportunities to known geographical regions and markets.

The impact of technology

     An unavoidable consideration for any construction firm is the use of technology for effective estimation,
accounting, project management and general communication.
The proper use of BIM collaboration, cloud computing and mobile data, can be a major asset that allows companies to maintain ideal cost structure by delaying or replacing personnel costs and maintaining the company’s ability to achieve proper gross profit margins. Construction firms should focus on solutions that will allow for timely, accurate information to ensure that bids are correctly calculated and to efficiently manage production.
     Timely information can help advert excess remediation costs should a major problem surface. Construction executives should not only consider the internal benefits of technology, but also the impact on their ability to secure work based on their client’s technology requirements. Effective use of technology depends on the buy-in of the executive team and customising the solution to meet the needs of decision makers.
     Although there are positive signs of economic recovery and increased activity in the marketplace, there are no guarantees of growth. A construction industry benefit is that production cannot be performed overseas or ignored for extended periods of time. The recession and subsequent delay in construction starts indicates that a recovery is necessary. Companies who have a system in place to secure profitable work, appropriately invest resources in the company and utilise new technology will be in the best position to capitalize on the economic recovery.