Tuesday, August 26, 2014
Part Three: Human Error and the Unknown
On any local government construction project, human beings
design and build every aspect and every human is fallible. Anyone who says they can build a perfect job
on a school or jail or courthouse is lying.
After decades in the business, Shireman Construction has
built up a list of “lessons learned” that we use as a checklist to eliminate
errors. We catch numerous design errors and poor choices and save
the owner money on every job we work as a construction manager.
In fact, most of the cost savings are wrung out of the job
in the design stages –see the graph above. That’s why it’s critical to get a CM
on board as early as possible to team closely with the Architect and bring a
fresh set of eyes to a project.
But try as we might, there is no way to eliminate all
unforeseen costs on a construction projects. The “unknown” is a big risk, and on new construction you might uncover rock, sinkholes, or
old buried fuel tanks that the geotechnical report couldn’t catch.
On renovations you might uncover previously unknown
asbestos, pests, structural problems, lead paint, poor foundations, etc. that
were undiscovered despite thorough investigations by the design team.
Then there’s human error. The architects and engineers make tens of thousands of
decisions and product choices, and all of them won’t be perfect. A team of low-bid contractors will go out and dig a hole in
the ground and build a multi-million dollar facility from scratch.
So knowing that we’re all human and some mistakes and
unforeseen challenges will emerge, Shireman uses a unique “built-in contingency”
system to plan ahead.
Within each low bid contract will be contingency funds to be
used when unforeseen difficulties emerge, with the approval of Shireman, the
architect and owner.
What make this so great? Because we have planned ahead
together, and the funds can be expended and issues promptly fixed in the field.
For government officials, this also means that instead of
going over numerous “change orders” and annoying the general public in open
meetings, these issues can be planned for and adjusted immediately in the
field. Imagine monthly public meetings where instead of approving
every tweak and minor change order request while the project is held up, you
can truthfully report to the satisfied taxpaying public that the project
remains under budget.
By planning ahead for the unknown and human errors on local
government construction the project budget will be saved and the public will be
happy.
Thanks for reading our
three-part series on preconstruction budget risks.
Let us help you avoid
budget pitfalls.
For more tips and tricks on local government construction and
real life examples – s
