Construction Project Management: Policies, Procedures, and Best Practices

Posted on Apr 29, 2024 in Economy

Construction Project Management: Policies and Procedures

This document outlines essential policies, procedures, and best practices for effective construction project management, covering equipment, subcontractor coordination, problem-solving, industrial relations, and multi-site operations.

Equipment Hire and Maintenance

Policy: Our company utilizes Kennards for equipment hire.

Procedure:

  1. Ensure equipment suitability for intended use.
  2. Complete order form and obtain authorization approval.
  3. Contact Kennards for equipment availability and order placement.

Process:

  1. Submit order form to Kennards.
  2. Verify equipment maintenance and condition.
  3. Confirm inspection and maintenance according to manufacturer specifications.

On-Site Operations for a Safe and Cost-Effective Work Environment

  • Regular supervision and consultation based on schedules and contracts.
  • Effective project communication management (internal and external).
  • Proactive project risk management (identification, analysis, mitigation).
  • Construction plan and scope adherence for efficient project scheduling.
  • Project cost management for resource allocation and budget control.

Subcontractor Management and Coordination

Policy: Subcontracts ensure adherence to plans, specifications, and head contract compliance.

  • Maintain clear communication to ensure accurate quotes and work execution.
  • Ensure compliance with the “80/20 Rule” in subcontracting.

Managing Delays and Performance Issues

  • Implement effective scheduling techniques like the Critical Path Method (CPM) to minimize delays and optimize project completion time.
  • Address “harassment” issues promptly and effectively.
  • Utilize contract conditions to apply for extensions of time and variations in case of delays.

Industrial Relations Management

Policy: Adherence to company policy and regulatory guidelines.

  • Maintain compliance with relevant legislation, including the Fair Work Act 2009, National Employment Standards, and award/wage requirements.
  • Seek guidance from industry associations like Master Builders or HIA.

Flowchart: (Please refer to the attached image for a visual representation of communication with statutory authorities.)

Capture

Variations and Statutory Authorities

Variations may arise due to errors, site conditions, client requests, or changes to plans/specifications. Depending on the variation, statutory authorities may require involvement. These authorities, such as planning authorities, local councils, and utilities, have the power to approve building applications and changes. It’s crucial to consult relevant authorities and comply with planning frameworks and regulations.

Multi-Site Management Challenges and Solutions

Challenges:

  • Time Management: Effective scheduling and resource allocation are crucial.
  • Supervision: Maintaining consistent oversight across multiple sites is essential.
  • Resource Allocation: Identifying and assigning the right resources to each site is key.
  • Financial Control: Budgeting and cost management across multiple projects require careful attention.

Solutions:

  • Implement proven management techniques to achieve project objectives.
  • Prioritize clear and regular communication.
  • Ensure efficient coordination of human and material resources.

Progress Claims Schedules: Considerations

  • Cash Flow: Accurate cost estimates and claims ensure financial control.
  • Reasonableness: Claims should reflect completed work and comply with contract terms.
  • Compliance: Adherence to head contracts, subcontracts, schedules, and specifications is essential.
  • Time Management: Timely submission of claims and coordination with payment terms are crucial.

By implementing these policies, procedures, and best practices, construction projects can be managed effectively, ensuring safety, cost-effectiveness, and successful completion.