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
Multifamily Housing | Jun 3, 2021
Student Housing Trends 2021-2022
In this exclusive video interview for HorizonTV, Fred Pierce, CEO of Pierce Education Properties, developer and manager of off-campus student residences, chats with Rob Cassidy, Editor, MULTIFAMILY Design + Construction about student housing during the pandemic and what to expect for on-campus and off-campus housing in Fall 2021 and into 2022.
Building Technology | Jun 1, 2021
Orro Announces Google Nest Integration for the Orro Switch
Orro, creators of the professional-grade top-of-the-line Orro Smart Living System, today announced the integration of Nest products to Orro. As a certified partner in Google’s Device Access program, this latest Orro integration allows homeowners to have seamless control and access to Nest thermostats and doorbells from any Orro Switch throughout the home – creating a single unified smart home system with advanced, intelligent ambient control.
Digital Twin | May 24, 2021
Digital twin’s value propositions for the built environment, explained
Ernst & Young’s white paper makes its cases for the technology’s myriad benefits.
Senior Living Design | May 19, 2021
Senior living design: Post-COVID trends and innovations
Two senior living design experts discuss the latest trends and innovations in the senior living building sector.
Multifamily Housing | May 18, 2021
Multifamily housing sector sees near record proposal activity in early 2021
The multifamily sector led all housing submarkets, and was third among all 58 submarkets tracked by PSMJ in the first quarter of 2021.
Wood | May 14, 2021
What's next for mass timber design?
An architect who has worked on some of the nation's largest and most significant mass timber construction projects shares his thoughts on the latest design trends and innovations in mass timber.
Healthcare Facilities | Apr 30, 2021
Registration and waiting: Weak points and an enduring strength
Changing how patients register and wait for appointments will enhance the healthcare industry’s ability to respond to crises.
University Buildings | Apr 29, 2021
The Weekly Show, April 29, 2021: COVID-19's impact on campus planning, and bird management strategies
This week on The Weekly show, BD+C Senior Editor John Caulfield interviews a duo of industry experts on 1) how campus planning has changed during the pandemic and 2) managing bird infestations on construction sites and completed buildings.
Multifamily Housing | Apr 22, 2021
The Weekly Show, Apr 22, 2021: COVID-19's impact on multifamily amenities
This week on The Weekly show, BD+C's Robert Cassidy speaks with three multifamily design experts about the impact of COVID-19 on apartment and condo amenities, based on the 2021 Multifamily Amenities Survey.