+Project Information Management

In 2009 Groninger Custom Homes was nationally recognized at the Custom Builder Symposium with a Business Excellence Award from Residential Design & Build Magazine for its JobNotes project management system. The system was used long before smart phones and the cloud, to manage the information and processes of a successful custom home building company.

Our first project superintendent was a great builder in his own right. He managed the entire process on his projects with little hand-holding from the office staff. It wasn't until we hired our second super that we realized what a gem we had in our first; and how lacking our processes were for managing information flow between the office and field. We discovered that we were keeping information that our new supervisor needed in nine different places. Hence the evolution of the JobNotes system.

We weren't in the dinosaur age. We did have dial-up internet email and Palm Pilot PDA's. We consolidated our project information into four categories that we still recommend using today.

• JobCost
• JobFiles
• JobNotes
• JobSchedule

Our processes have continued to evolve along with the technology available. We still use these four separate components but they are now linked and accessible via “The Cloud”. We use the ResConServ format to track task codes across all four categories. Now all of the information is kept on a personalized website that we create for each of our customers. You can request permission to view everything on the Groninger Homes website at GroningerHomes.com.

Construction Management

Consider Construction Management as an alternative to the traditional contractual relationship between owner and builder. The CM relationship promotes trust and productive communication.

• Fee-Based: A fee for services is negotiated at the beginning of the project and disbursed as construction progresses.
• Flexible Services: Services are provided to manage construction of a project as directed by the owner. The owner can choose the range of services provided to suit their needs.
• Open-Book Transparency: All proposals, invoices, payments, account statements and project reports are accessible and shared openly.
• Information and Resources: The construction manager (or builder) is responsible for educating the owner and making recommendations in the best interest of the project.

The key to success of a construction management relationship is the negotiated fee for services provided. When the mystery surrounding the builder's fee is removed from the picture, the builder can shift focus towards providing services in the best interest of the owner. Information flow is enhanced when everything is shared freely without hidden business agendas.

Choose a Builder for Product or Service?

My friend, Tracy DeCarlo just posted an article describing one of the reasons many home construction projects go wrong. She hit one of the nails right on the head. Lack of specifications and an incomplete set of construction documents, expose the owner to potential change orders and expensive oversights. Omissions and inadequate allowances are typically the culprits when one builder's price is substantially less than another's. But there's another issue that often sets the stage to cautiously approach the selection of a home builder.

Most buyers choose a builder based on their product, not the service they provide. Few builders win awards for their service although many are recognized for award-winning designs. Some builders have a keen eye for details and aesthetics, but the reality is that most designs are the work of someone other than the builder. The point here is to focus first on the service provided by the builder, then consider the product. Do the skills and processes demonstrated by the builder indicate that they can manage the project efficiently without surprise and extra cost? Ask your builder about the procedural systems they use for managing their projects.

Work Breakdown Structure

“Back in the day”, we used 3-ring binders to keep all of our project information organized. We kept 3 copies of the binders: one in the office; one for the customer and; one for the project superintendent. We asked our customers to bring their binders to meetings so we could keep them updated, and we also “synced” the super’s binder at our weekly staff meetings.

Each binder was organized into categories using numerical tabs. We rationalized a somewhat sequential format that followed the progress of a construction project. Information was organized by code and task description. The binders established the foundation for a coding system that would be referred to in technical terms as, a work breakdown structure (WBS).

With the advent of computers, the office binder was supplemented with folders organized by project, but the information came in many varieties and we were far from paperless. Email, electronic fax, Palm Pilot PDAs, and VPN (virtual private networks) all changed the way we accessed and shared project information.

The “cloud” is the current change affecting the way that projects are managed. I read an article recently about a large homebuilder that has provided computer tablets to their field supervisors. I’m sure I’d find the use of the device to be interesting but, in reality a tablet is just a fancy tool for accessing information. No device can improve efficiency unless the structure and processes for managing the projects are in place first.

Project management is not exclusive to the construction industry. Most construction projects are designed and built by a team of professionals, each with their own specialization. The complexity of managing all of the separate individuals and businesses calls for an organized structure to outline the responsibilities of each team member contributing to the project. The first step in developing a work breakdown structure (WBS) starts with making a list of every task that must be performed to complete the project. All of the tasks are broken down into individual work packages that can be defined and assigned to a team member. In construction these tasks are commonly assigned to trade contractors as a scope of work.

To keep all of the work packages organized within the WBS, a coding system is frequently used. Coding formats that come to mind include cost accounting and within the commercial construction industry, specifications. Commercial construction projects commonly follow a recognized format provided by the design professionals, but residential construction does not share a standard. Following are some recognized standards:

• CSI - Founded in 1948, The Construction Specifiers Institute authors MasterFormat, the dominant resource of the commercial construction industry. CSI is a product-specific format used by architects and engineers to specify the materials and products used in their projects.
• NAHB - The National Association of Home Builders has a chart of accounts developed by accountants to enable financial comparisons of the members.
• ICC - The International Code Council developed the International Building Code (IBC) and additional performance standards as resources to be used by each state for the development of their own building code. The premise behind the code is safety and the best interest of the public.
• USGBC - The United States Green Building Council is the parent of LEED, the green certifying organization. The LEED organizational format supports conservation, sustainability and environmental awareness.

Review of these formats reveals that none are ideally suited for the residential market. If a coding system were to be created, how might it help facilitate the management of a residential construction project? Consider some of these aspects:

• Support Integration - A format can be very powerful if it allows the various chores of project management to share the codes. Project management as a profession exists in many other industries besides just construction. Professional project managers use a Work Breakdown Schedule (WBS) and then break down all the tasks into the smallest unit of work or materials. The same codes are used in the estimate, specifications and time schedule and can also facilitate cost control and even the production of working drawings.
• Chronological Order - Time phased coding makes perfect sense as it relates to a construction time schedule. Most estimators compile their numbers in the same order as a project is built? This is a natural process associated with first building the structure in your head before actually starting construction. A chronological format also enhances a proposal when it's presented to an Owner, enabling them to follow the process and find information easily. In the near future CAD drawings will become 4-D with the 4th dimension being time. Keep an eye out for these future technology advances. It's going to be really cool!
• Logical Breakdown Structure - Upper level categories break down into subgroups and further down into individual tasks. The upper level categories combine logical task groups that facilitate conceptual estimate comparisons with other projects; for instance, structural or mechanical units costs. Individual tasks should be broken down until each represents a line-item from the detailed estimate, the specifications and the construction schedule.

The full ResConServ format is available for free to anyone within the residential design and construction industry. Our format has evolved over nearly 25 years building custom homes. It has served us well, but may not work for everyone. We welcome comments and encourage collaboration in support of a format that facilitates the organization and management of residential projects.

ResConServ Format

Death by Email

Today, email and electronic communication has become part of our lives. The messages pile up in our Inbox and many of us have difficulty keeping track of it all. Without good systems to manage the information we might all become buried under the sheer volume.

I recently worked with a talented architect-builder that was very busy as a result of his award-winning designs. His construction manager had become overwhelmed by the information associated with the increased workload. I discovered that he had 2000 emails in his Inbox with over 600 of them were unread.

Contrarily, another builder I know refuses to accept emails from his customers. Knowing him, I just thought this was his arrogance. That certainly would reduce the number of emails but personally I wouldn’t be comfortable with such a drastic approach. However, I do recognize that protocols (rules) can be applied to messages without eliminating the use of email altogether.

The risk to our business relationships is the implied responsibility we assume through the exchange of emails and the almost certain failure that will occur as the messages become too numerous. Perhaps the use of email within project management needs a look. One of the goals is to reduce the volume but still maintain some of the convenience.

Back in the day (before email) we had just completed drywall on a project when the customer contacted us because she thought windows in her closet were missing. At some point during the design process, windows had showed in the Master closet but the final drawings did not include them. She brought up conversations and discussions that we had months prior.

We immediately adopted a protocol and added it to our pre-contract customer orientation. Upon authorization of the contract set of plans and specifications, all previous conversations and information are archived and removed from the project scope. We encourage the customer to review their plans and specs thoroughly. Once the contract is signed, we are obligated to build only what is represented within the documents. Essentially this creates a fresh start on the project and allows the construction documents to be passed from sales to the construction department. This works just as well with a paper-based process.

Electronic communication like email, texting and “the cloud”, provides easy access to our information, but can actually make our lives more difficult if the managing processes aren’t in place. I admit to my love for technology but I try to keep my processes as simple as possible. I want technology to enhance my life and certainly not increase the burden.

I remind myself that even the highest quality cooking appliances won’t make anyone a better cook if they don’t know how to read the recipe. In the next post about this subject I’ll start to list some ideas for streamlining electronic communication and managing the information.

Construction Management is Changing

Construction Management has evolved. It’s easy to see that the housing industry has changed and there are many new ideas and considerations. The driving forces of these changes include:

• Green Certification
• Building Science
• Cloud-based Management
• Increased Energy Costs
• Declining Home Values

The slowdown in the economy has created an opportunity to shake out the deadwood and as the market returns, seek progressive new processes for managing our businesses. All industries will likely delay hiring additional staff until maximum productivity is achieved with current employees. Everyone will be looking for ways to access and share information in a flexible and convenient manner. The ability to adapt to new methods will separate successful businesses from those that are left behind.

I read an article recently about a large homebuilder that has provided computer tablets to their field supervisors. I’m sure I’d find the use of the device to be interesting but in reality a tablet is just a fancy tool for accessing information. No device can improve efficiency unless the structure and processes for managing the information are in place first. While the technology has advanced, some of the same procedures we developed back in the day of the 3-ring binder, still apply.

As designers and builders, it’s our job to, extract information from our customers; document the information on the plans; organize the information in specifications; distribute the information as scopes of work; and finally, coordinate everything correctly during the construction process. It’s all information management.

In another article I’ll describe how a Work Breakdown Structure (WBS) can be used to coordinate information between the major components of a project:

• Estimate
• Proposal
• Specifications
• Scopes of Work
• Cost Control
• Schedule
• 4-D Design (3-D plus a time component - the future...)