Projects are being impacted by industry challenges as well as other macro-level forces at a pace not seen before. While the market conditions may be extraordinary, one thing remains true: A late project impacts revenue and production as well as commitments made to your key customers.
The good news is, setting realistic expectations for both your internal team and the team you hire to manage and build your project will help you avoid common pitfalls so you can experience a better, more predictable outcome.
Here are three characteristics of effective owner project planning:
1. Plan Project Success with Your Internal Team First
Before you engage a designer and contractor, know what you need and where you can (and can't) compromise. Think of it as a pre-plan. Start by defining your specific short-term business needs and your long-term goals. Delaying or skipping this pre-plan process can lead to less flexibility in your decision-making down the road.
Keep in mind that your needs and the order you prioritize them can look very different from project to project. For many clients, avoiding unplanned shutdowns is critical, while for others, cost of schedule (COS) is a driving factor: It defines the daily cost, typically in dollars, for every day the job is not complete.
There are a number of other factors that drive decision making, and a great place to turn for insight is your internal stakeholders who are directly or indirectly impacted by the project; some key areas to plan for might include:
- Environmental, health and safety measures include identifying prequalified contractors and subs who meet your safety requirements.
- Quality control when installing specialized equipment and MEP systems to industry specifications. This could also include the reduction of airborne contamination when working in adjacent areas such as CGMP spaces.
- Coordination of owner-purchased, contractor-installed equipment.
- Planning and communication for shutdowns and tie-ins so interruptions are planned, including an appropriate sign-off process from all impacted parties.
- Ability of the team to test, commission and validate installed systems.
Another critical part of the process is contingency planning. Inevitably, challenges or delays will occur. Establish cost and schedule contingencies to avoid disappointment, especially with external forces like COVID-19, labor shortages, supply chain delays, fluctuating prices, delayed quotes and cost increases on delayed projects that come back online. Keep your design and construction experts on speed dial; reach out to them early and often about market conditions, potential project risks and expectations.
Be careful not to get completely wrapped up in things you can’t control. Take time also to define successes and the key priorities by which these will be measured. Internal and external factors developed from the examples above can help, along with other points like contractor turnover date, design aesthetics, budget and diverse spending. With your definition for success and priorities in hand, work backward to list them from most to least important.
2. Select the Appropriate Contract Delivery Method
Decide which contract delivery method best aligns with your needs and top priorities; this could be design-build, CM-R, design-bid-build, IPD or EPC. Schedule and project design complexity, desire for cost transparency and the ebb and flow of market conditions should all be considered in selecting the appropriate contract delivery method.
Evaluating the inherent strengths and weaknesses of the delivery methods against the project goals is an essential step. Still, it is important to know there is no “go-to” delivery method that fits every owner or every project. Keep an open mind on which delivery method works best and be willing to embrace change.
3. Define Project Goals, Measures and Accountability
Once you select a project team (designer, contractor or design-builder), communicate your goals and needs in writing and create metrics to measure progress. One way to do this is to clearly define your conditions for success. Work with the project team to develop mutually agreeable metrics that align with your project priorities. Monitoring weekly progress will keep tasks on schedule and your priorities at the forefront during construction.
Encourage the project team to quickly voice any concerns before they become significant issues. Establishing an open line of communication between the internal team, designer and contractor provide a “working together” mindset to set the stage for success: When a team has discussions upfront, the project runs smoother, there are fewer changes and unknown costs and there is a better outcome for all in the end.
Describing the objectives of the finished project and the business value the project will achieve makes it crystal clear to all on the team what each member is striving toward. Measuring progress regularly enforces accountability. Specific project metrics will differ for each job, but you can determine an agreeable process for everyone to follow by effectively communicating with the project team.
A successful building project begins well before groundbreaking or moving equipment. It starts from within: within your internal team building consensus on why you are making this investment, within the process to select the best contract method that aligns with your definition of success and within the project team knowing that everyone is walking the same path to that success.
Related Stories
| May 22, 2014
Big Data meets data centers – What the coming DCIM boom means to owners and Building Teams
The demand for sophisticated facility monitoring solutions has spurred a new market segment—data center infrastructure management (DCIM)—that is likely to impact the way data center projects are planned, designed, built, and operated.
| May 22, 2014
No time for a trip to Dubai? Team BlackSheep's drone flyover gives a bird's eye view [video]
Team BlackSheep—devotees of filmmaking with drones—has posted a fun video that takes viewers high over the city for spectacular vistas of a modern architectural showcase.
| May 22, 2014
NYC's High Line connects string of high-profile condo projects
The High Line, New York City's elevated park created from a conversion of rail lines, is the organizing principle for a series of luxury condo buildings designed by big names in architecture.
| May 22, 2014
Just two years after opening, $60 million high school stadium will close for repairs
The 18,000-seat Eagle Stadium in Allen, Texas, opened in 2012 to much fanfare. But cracks recently began to appear throughout the structure, causing to the school district to close the facility.
| May 22, 2014
Senate kills bipartisan energy efficiency bill over Keystone pipeline amendment
The legislation focused on energy efficiency standards such as water heaters with smart meters and cheaper heating and cooling systems for office buildings.
| May 22, 2014
IKEA to convert original store into company museum
Due to open next year, the museum is expected to attract 200,000 people annually to rural Älmhult, Sweden, home of the first ever IKEA store.
| May 21, 2014
Evidence-based design practices for the palliative care environment
Palliative care strives to make patients comfortable as they are receiving treatment for a severe illness. As hospitals seek to avoid Affordable Care Act penalties for poor patient satisfaction, many expect this field to grow quickly.
| May 21, 2014
Gehry unveils plan for renovation, expansion of Philadelphia Museum of Art [slideshow]
Gehry's final design reorganizes and expands the building, adding more than 169,000 sf of space, much of it below the iconic structure.
| May 21, 2014
Architecture Billings Index in the negative for second consecutive month
The March ABI score was 49.6, up slightly from a mark of 48.8 in March, but still below the growth threshold of 50.
| May 20, 2014
Kinetic Architecture: New book explores innovations in active façades
The book, co-authored by Arup's Russell Fortmeyer, illustrates the various ways architects, consultants, and engineers approach energy and comfort by manipulating air, water, and light through the layers of passive and active building envelope systems.