How to complete construction projects on time without going over budget

From building roads to airports to shopping malls, construction projects are ubiquitous. Construction projects are essential for economic growth. Be it public works for city planning, small dwelling units, or one-of-its-kind architectural marvels, the knowledge and expertise of construction project management or infrastructure project management are much sought after.

Depending on their size and scope, the duration of construction projects can be anywhere between a few months and several years. Irrespective of the duration, these projects are one-off events – the construction team, with help from a project management consulting team, works together to see the project through, and then disbands once the project is complete.

Construction project management is the art of managing the several resources required to complete the venture successfully. Managers have to utilise time, money, and human resources to execute projects within scope and budget. Construction project management entails synchronising the movement of the numerous parts so as to create one harmonious whole.

Iron Triangle of Project Management

Those in the business of project management consulting need to be well-versed with the iron triangle which is at the heart of infrastructure project management. Consultants and managers have to be skilled at managing three elements – cost, scope, and time. Construction project management is often considered a balancing act – project managers have to take into account all the elements, weigh the cost in terms of time and money, and make decisions that serve the project best. They generally have to consider the trade-offs, and ensure that the elements are well-balanced throughout the journey of the project to completion.

Challenges in Project Environments

Project managers in this business face multiple challenges on all fronts in managing this iron triangle. Construction project managers are up against multiple complexities and uncertainties that routinely crop up. For example, vendors may fail to meet deadlines, material and manpower suppliers may be unable to stick to committed schedules, permissions from authorities may not come in as expected. These unpredictable issues may throw the best of plans haywire. There may also be ad hoc revisions in scope by the client. Changes in any one of the elements can wreak havoc on one or all the other elements in the iron triangle.

So, what is the solution? It is increasingly recognised that the key to safeguarding the iron triangle lies in managing time. If projects can be completed in time, there are not likely to be unplanned expenses and there will be no pressure to compromise on scope or quality. To successfully complete a project in time, most industry experts would point out that planning well and starting early is a must. However, experience has shown that, more often than not, starting early does not necessarily lead to an early finish. No amount of planning can pre-empt every snag that can derail the project’s schedule.

What is required is a new methodology that accepts that project environments are fundamentally uncertain, and that all the events cannot be predicted and planned for. At the same time, by following this method, all other wastages of time in terms of rework, interruptions, stalling of project progress for want of materials, etc. should be eliminated. In many cases, delays due to wastages are far more damaging than those caused by uncertainties (though these random occurrences get all the blame!). If such a method is followed, projects will get to the finish line as soon as possible, in spite of uncertainties.

CCPM, a Holistic Approach

Critical Chain Project Management (CCPM) offers such a holistic approach, and helps deliver construction projects on time, within scope, and within budget because of its ability to accommodate and manage the ubiquitous uncertainties in project environments. CCPM is an especially powerful tool that can also be deployed in multi-project environments. By putting a few rules in place, it enables flow of tasks in such a way that the time wasted during project execution through interruptions, iterations, work expansion, etc. can be eliminated or reduced to the minimum. The rules are:

1. Full Kit: Rapid project execution is possible if proper "gating" rules are imposed at various stages. That is, unless the "full kit" from the previous department (inputs, materials, etc.) is complete, the subsequent stage should not start. This will ensure that the project progresses un-interrupted, and without iterations.
2. No Bad Multi-tasking: The above concept of gating is well understood in the world of construction project management. However, the pressure of time forces managers to break the gating rules. So, this rule can be implemented only when the time to complete each stage is reduced significantly. This lead time can be cut down by reducing the level of multi-tasking.
3. Controlled WIP: Bad multi-taking can be eliminated only when the total number of open work fronts is controlled. Strict WIP rules, at half of current levels, will help focus on closures of tasks at hand. Further, a global priority mechanism can create a common understanding of what is truly urgent. Projects can be given a sequential queue number and tasks can be picked up in the order of their queue numbers.
4. Active Task Management: The traditional process of intervention close to committed dates has to be done away with since this process detects issues only when it’s too late to do anything much about it. Instead, for efficient construction project management, the team needs a process of daily management and frequent issue resolution. The frequency of such interventions has to be predefined to ensure that all needed for the short meeting are available. This will ensure quick decisions and fast issue resolution at all levels within the company. This will again help reduce lead time.
5. Buffer Management: Once this holistic approach – consisting of full kitting, enforcing WIP control rules, and conducting daily flow meetings – is adopted, a planning system can be put in place to synchronize signals from various tasks. By differentiating the touch time from the total lead time of a task, the buffers can be made visible. These time buffers are then moved from independent tasks and placed at the end of the project. The buffer consumption rate exposes delays, and provides early warning and visibility to top members of the construction project management team. As a result, intervention can happen early rather than later.

Read more details of how to implement CCPM here:

https://www.vectorconsulting.in/insights-publications/engineering-industry-insights/critical-chain-project-management-doing-more-projects-faster/

For CCPM implementation case studies read here: https://www.vectorconsulting.in/our-work-by-solution-rapid-project-execution/

CCPM is gaining popularity as it helps managers have control over the elements in the iron triangle. With this method, construction project managers are able to identify factors that could hinder project progress, and address them early.

Versatile, creative, experienced, and voraciously curious writer with a dedication to excellence. Read my current words to expand your knowledge.