Risk management Construction – Management of the construction process
The construction industry is characterized by projects with delayed schedules, exceeded budgets and the quality is not always as expected. The challenge is particularly pronounced on mega projects. If you have to build something big, you have all the odds against you. 9 out of 10 megaprojects go over budget, and exceedances of 50% or more are quite common.
Many of the reasons for challenges lie in the decision-making processes, competencies and management methods. If you are interested in knowing more, we have links to some good articles on why megaprojects go wrong. If it’s not a megaproject you are facing, the articles still give a really good understanding of the issues.
What is BIM Process Management?
BIM Process Management includes defining goals, scope and workflow for the implementation of BIM methods in a project. This is described in documents such as ICT agreements, Process Manuals and Delivery Specifications or Employer’s Information Requirements (EIR), BIM Execution Plan (BEP) and Task Information Delivery Plans (TIDP) etc. according to ISO 19650. The documentaries must match information requirements to data and geometry, digital deliveries, the development of them through the phases of the project, and who is responsible for each individual delivery and trade.
Why is buildability important?
Research shows that the key to keeping costs down is to make the implementation phase as short and delays as small as possible [Flyvbjerg, 2017]. This can be ensured i.a. through prefabrication, standardization and modularization. But it is also extremely important that the project material is well-coordinated and therefore buildable within the planned implementation phase.
Why is a realistic plan for the whole project important – it still doesn’t hold!
The result of the planning effort is both to establish the formal performance baseline as well as the legal contract determination scope and insurances [Gil & Pinot, 2018]. Furthermore, the planning of megaprojects often tends to be overly optimistic, limited learning from other megaprojects and therefore does not allow sufficiently unforeseen events for complexity and unplanned events [Flyvbjerg, 2017]. In order to be able to deal with the unforeseen, it is important to have a plan where consequences in detail can be quickly seen through. It is, therefore, crucial to use a structured data-driven approach to break down the work and estimate the duration of the activities. This is done by basing the execution planning on quantities distributed by locations and involving the contractors who have deep domain experience.
How is financial management implemented with Earned Value Management?
The financial management is carried out using the location-based schedule, which provides an easy-to-understand structure for cost allocation. Preferably based on quantities from a 3D model but otherwise calculated manually.
By “cost-loading” the location-based schedule, the basis is created for calculating the planned cash flow completely automatically. When the propulsion is entered for each activity at the individual locations, the current value created on the construction site is known. It will then be easy to compare with the monthly stage reporting from the contractors and the individual teams on the construction site as well as subcontractors. This utilizes the Earned Value method to monitor and risk assess progress. In Exicute, this can be done in minutes minutes daily or weekly for even very large projects.
Real-time progress reporting also ensures that project payouts reflect the actual work on site, so that the total project payout at all times corresponds to the total earned value of the work performed.
What skills do I need?
With the right methods such as location-based planning in Vico Office as well as stage registration and management reporting in Exicute, even very large projects can be handled by 1-2 people. However, this requires the right skills. The individual steps in Exigo’s project and risk management method are simple to understand and learn. The hard part is getting it to work with fully integrated data in real-time on real projects. Here we recommend that you get our help on your first project – then you can with the right effort become autonomous on the next project.