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Deal Cycle for Construction Industry
Deal Cycle for Construction Industry
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What are the stages of a construction project?
Here's how the typical five stages of the construction process break down. Phase 1: Pre-Design (Project Initiation) ... Phase 2: Design (Pre-Construction) ... Phase 3: Procurement. ... Phase 4: Construction and Monitoring. ... Phase 5: Post-Construction (Closeout) ... Create a Detailed Plan. ... Efficiently Track Project Progress.
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What are the 4 phases of construction?
The construction process is typically divided into 4 essential phases: Planning, Preconstruction, Construction and Close-out.
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What are the 7 phases of a project life cycle?
The Project Lifecycle consists of seven phases intake, initiation, planning, product selection, execution, monitoring & control, and closure. These phases make up the path that takes your project from start to finish.
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How cyclical is the construction industry?
Typically, residential construction is considered an early cycle industry that leads the economy. In a classic economic cycle, residential construction moves upward for two to three years before cycling downward as interest rates rise.
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What are the 7 phases of a construction project?
In this post, we review the seven phases of architectural design: Pre-Design, Schematic Design, Design Development, Construction Documents, Permit, Bidding, and Construction Administration.
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What are the 7 phases of construction project?
What Are The Stages Of A Construction Project? Step 1: Design. The design phase is a critical stage in any construction project, laying the foundation for the entire build. ... Step 2: Pre-Construction. ... Step 3: Procurement. ... Step 4: Construction. ... Step 5: Commissioning. ... Step 6: Owner Occupancy. ... Step 7: Project Closeout.
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What are the 5 stages of the project life cycle?
The project life cycle includes five main stages: initiation, planning, execution, monitoring and controlling, and closure. Keeping an eye on the completion of each phase helps ensure the project stays on time and within budget.
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What is the lifecycle of a construction project?
This process can be broken down into five phases – planning/design, pre-construction, procurement, construction, and post-construction. Depending on the size and scope of the project, each phase has its own set of challenges.
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In this video, we're gonna talk about how to manage delays on a construction project. The key here is to know how to do it without compounding the problem. So that's one key thing you're going to learn in this video, but you can't manage the delay unless you can see it. So we're going to show you how you can see delays in the first place, and why most people typically can't see them and the one tool that we must have to enable you to actually manage them when they happen. We're also going to provide you a detailed list of the steps that you will take to manage the delays so that you can do it on your project and the way that you can manage the delay to things specifically, so that you can really take care of your customer. Okay, so let's get right into it right now. So first and foremost, I want to say we've always had delays in construction, even back before 2020, before the COVID19 pandemic, we have always had problems with exterior, curtain, wall with tile with casework with elevators, it's just always been that way. In fact, there's a really cool book that was written 100 years ago, it's called Calumet K and it talks about the exact same things we're dealing with today and construction. And so it's not new, it's not a new phenomenon and there are tried and true principles for how to recover and respond to those delays and I do want to say that the common feedback from the industry is to say it's a lack of labor and it's a lack of materials, meaning that we can't get the right train people and we can't get the right materials on time. And my point in saying that is that's always been the case, that's just construction, that's actually not the root cause. The root cause is that those problems which have been consistent probably even back to Roman times, right, is that we don't see those problems soon enough. So one of the key things that we do to manage delays is to see them before they even happen. All right, so I'm gonna go over here to the flip chart, you knew it was coming. And I'm going to talk to you about a key concept. First and foremost, so this is principle number one for managing delays is that we must have buffers in the construction schedule. So I'm going to briefly talk about that now, you can reference other videos in the future, if you want to get more detailed with it. So when you have a construction schedule, and let me just draw these activities, kind of in a Gantt chart format, this could be a CPM schedule, it could be a Gantt chart, this could be a tact plan, whatever kind of schedule you have, I want to talk about where buffers should be. So first and foremost, let's take this activity, we do not want to pad the activity in and of the activity itself, meaning we don't want the buffers to be in the activities. A lot of times, people or construction managers or trades will pad these activities to be longer than they need to be. And that is a mistake. And let me tell you why we want the buffers to be or the contingency in the schedule, we want that to be at the end of this schedule for two specific reasons. Number one, if you put the buffers here, then the second activity will not start on time, which means that you're automatically delaying your project unnecessarily. Meaning it's not inevitable, meaning that you're doing it simply from bad practices, you want the buffers out of the activities, and at the end, so they're starting on time, so that we can prevent any delays within the project team or the internal team itself. The other thing that I want to talk about is that when you have supplies or resources coming to that activity, to kick off that activity, you'll want a buffer here inside of that actual supply chain activity. So let's say maybe this is material or crew, something that you need to actually accomplish that activity, you will want a buffer to be here in case this delays, it can still end up showing up here at the right time. Then if this activity delays, it will push the other activities. And you'll eat into this buffer over here. So there's no way and I want to repeat this so that everybody's really clear, there is no way in construction to manage or absorb delays, unless we have buffers in the supply chain. And unless we have buffers at the end of the schedule to eat into so that we can still provide that item that building or that cycle of work on time for our end customer like we promised. So you have to have buffers. Principle 2 is that we have to be looking for possible delays, meaning non inevitable delays so that we can then react to inevitable delays, meaning these are delays that don't have to happen we can see him and prevented before they happen so that we can deal with delays that we couldn't see that are just going to happen you know things that are like acts of God are like boats sinking on the way to the place of work and all of the materials are gone and you have to reorder in some kind No force majeure activity like that. So what we want to do is see ahead. Now, if you are at this current date on the project schedule, you want to be seeing out at least six weeks ahead, you're going to do that in this six week, make ready look ahead schedules, which I talked about in other videos, and really make sure that you have the labor, the materials, the permissions, and the information for those activities, that will prevent most of the delays on a project site because you're preparing for those activities. And if you go through these activities and say, yep, that one's ready, not ready, nope, that one's not ready, then you can see that and make it ready before it ever happens. So if you have buffers, and you're ready to absorb and manage the delay, the next step is you have to prevent as many as you can, so that you even have the capacity to absorb and manage delays that will happen that you can't control. All right, so now I'm going to talk about principles. No, I'm not, I'm gonna invite you to like and subscribe this channel. If you're jamming with us and loving these videos, we want you to like and subscribe and get this free content consistently to help out your career, you know, you want to, okay, now we're going to talk about principle three. Okay, so principle three is we must have a visible schedule. So if you have the buffers, and you are looking ahead to prevent any delays that don't actually need to happen, if we can see him and prevent him. The other thing that you need to do is be able to see delays when they happen real time. And so that means instead of having 76, 303 page schedule, that you can't see, you're going to want to see your schedule on one single page. And there are videos that are coming up, which will talk about tact, tact planning, and last planner, and scrum and how you use those visual scheduling systems in order to see and manage delays real time. In order to get the team working on the same page, you have to see the plan on one page. So if you're managing a visible schedule, so I'll just write visible and you're doing it in a tacted system. And you're using last planner system. So that's LPs, right. And you have a highly visible schedule on one page that the trades can see, when you have a delay, immediately everyone will know it, they will know what it is they will know the root cause and we will be able to deal with it as a team. So that's principle three, you have to have a schedule that you can see in order to respond to and manage delays. All right, so I'm going to show you a high level of how you would manage the delay when it happens and there will be a guide, a reference at the end of this video in the notes down in the description below that you can reference in order to do this yourself on a more detailed level. But let me go over here to the schedule and let me assume that you have and I'll just do this on a tact schedule basis, with a tact schedule example. Let's say that you have your tact times up here. So this is tack time and you have zone one, zone two and zone three, you'll have specific trades. So like we talked about last time, you will have a trade here, that will cascade down to the right and in this schedule, you have what's called trade flow. That means that trade is flowing at a diagonal, and it is moving from area to area and what's called one process flow, which is the real way we flow in construction. Now the first consideration for a delay is to delay the line of balance. And so this is what I mean by that. If you have a delay, which is sin symbolized right here with this D, meaning that in tack time number four, there was a delay, you can delay the line of balance. Meaning that the production of these trades are at a certain line of balance, meaning at a certain production rate when you consider the amount of area they're producing in a certain amount of time, right. And so we want them to have that diagonal line of balance and to maintain it. We don't want to stack the trade on top of themselves. So if you have a delay, and this trade was working and they started out, you can stop them and ask them to go work on what's called workable backlog which we've talked about before in the last planner video. And then you can experience that delay and then start them again at the same line of balance. With the same production with the same trade flow. And the key to this is the only way that's possible is if you eat into this buffer, meaning that if you shift this over to the right, that buffer is now gone, because this activity has taken its place. So now you can see why having buffers in the schedule is so crucial, and so critical. So the other thing that you can do is you can simply stop this trade during this delay, and they can stop, wait and prepare, not even go do workable backlog and they will make more money than if you shift them to another project and move around. Because they're waiting. They're preparing. They're cleaning up their tools. They're training their workforce, and they're absorbing and fixing that delay so that they can start out right again on schedule with good production. The other thing that you can do is adjust this sequence. If there's a delay, ask yourself, will this activity or for instance, this activity, could it be resequenced than the overall sequence of work? And so if that happens, you still maintain your line of balance, you still maintain trade flow and that's why that is our number one option for managing a delay. The second approach to dealing with the delay is to pull the delayed work out of the train, or what most people would understand is out of the sequence, or even out of the map from a zone standpoint. So let me show you what I'm talking about. So if you experienced the delay here with this activity, in the previous video, we said, hey, you can move this, maintain your line of balance, right? And go work on backlog, or stop, wait and prepare or try and resequenced these and shift them around so that you can absorb that delay. But if you can't, and the next option is to isolate that delay, which is option number two, then what you can ask is hey, can this car be taken out of the train or this tact wagon be taken out of the train and put on its own tack time. So instead of going in this line of balance at that tack time, maybe we delay it to where this activity happens later, and it's on a different tack time and it's isolated. The other thing you can do with this work is to say okay, the work that was supposed to happen in this zone, this tack time, maybe since this is in zone number one is there a specific area where that delay happened that can be detached from the overall production rhythm of the floor, within the zone so that it doesn't affect the schedule in its entirety. And so if you ever have to do this and manage it on its own tack time, show that visibly in the schedule, or on a pull plan or on a scrum board and if you ever have to pull out work from the actual zoning itself, then make sure that you pull that out, show the trades that it has been delayed work your normal flow of work around it. And again, pull that out, you can show it visibly on the tech plan or in a pull plan or on a scrum board. And so you can isolate the problem by pulling them out and managing them separately so you can keep the workforce going on their normal contracted work. And then the third option, which is at the end on purpose because it's the least preferable, the least ideal option is to talk to the trade partner and recover with resources. Meaning swarm the delay, fix it right there, maybe add another crew really look at it from a resource standpoint. But again, that's the last option, because we must have our resources flowing, and have really good trade flow in order for that project to finish. So we can't do that as our number one default. Remember, our number one option is to delay the line of balance. The option number two that I prefer is to isolate and detach or decouple the work. Option number three would be recovering it with resources. And so I'm almost done. Let me give you a couple more tips. First and foremost, you're probably thinking to yourself, Jason, I would love buffers, and I would love to absorb my delays with buffers. How do we determine how many buffers we need? Well, just like we've shown you in other videos, you will do a risk analysis for that phase of work. Identify the risks, identify how many days represent each risk, and make sure that your largest number is represented in that phase with buffers. So that's how you know. And so that's the number one thing that you'll need to have is a good risk analysis with buffers in order to manage delays for your client. The second thing is a baseline schedule, especially with tact like I showed you before, that shows what we were planning on from a production standpoint, and what we're planning on from a material procurement standpoint so that if there is a delay and there will be and you're having a conversation with your owner, it's not just a trust me conversation. It's a here's my schedule and my material procurement log that we had day one. Here's my schedule and my material procurement log that we have now. This is what how happened. This is the delay, let's have an intelligent conversation about it. So that's number two is to make sure that you always have a baseline schedule and always have a baseline for your material procurement log, so that when delays happen, you have the right information to talk to your customer and in that situation, you can always then form a really good analysis or time impact analysis, if there just is no way to absorb that delay. Meaning that it actually extends the construction schedule and we need to show that and partner with the owner to come up with a plan and to basically accept a new end date or a new milestone date for that work because you have the information, you have the buffers, and you have a schedule that you can see. And so one last bit of advice that I want to give you is make sure when you absorb a delay, if you haven't heard anything else, I want you to hear this, here's your construction schedule. Again, you have to have buffers, you have to see it, and you have to delay it properly. But you will not target a proper end date or overall total project duration unless throughout the schedule, you have that trade flow, meaning every trade is flowing from area to area to area, and it's never stacked. And so whatever conversation you have with your owner, make sure that your overall duration and your critical path is correct by having that trade flow. And I have a free gift for you in the description below. You'll want to check that out. Here's what we did. We went through and analyzed all types of delays and every single option that you can take for that delay. We've outlined it, we've made it easy, we've made it visual. We've given you guidelines so that you can really go have those conversations with your owners, you have to have this that's why we're here so that you have these tools. So if you go download that content, and you get it, you'll be able to respond and manage these delays in an effective way that doesn't compound the problem and allows you to go home at night happy with your family. You've got to check it out. It's free. You're going to love it. Call me if you have problems. On we go.
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