The construction industry is still reeling from expense overruns and project delays despite the proliferation of digital tools and advanced programs in construction management last year. More than 98% of construction projects face these challenges.
Numerous research bodies and companies highlight the fact that construction companies have made innovative strides on their sites. However, they still work the old-fashioned legacy way. What could be the reason?
- Could it be a slow development process?
- A slow evolution rooted in implementation or lack of technology?
- What if it was caused by a dilemma due to innovation and a problematic implementation of performance-driven construction management?
Let us now have a look at the whole matter via performance-driven construction management.
Performance-Driven Construction Management (PDCM) – what is it?
Advanced technology dominates today’s age. Yet, using pens, papers, spreadsheets, and word processors still hasn’t been ruled out. But they are not as efficient as modern technologies. Manual and analog methods of tracking create complications, and issues in accuracy.
Proper monitoring still requires modern tools and technologies. Analog reports lack the level of clarity modern tech provides. Hence decision-making faces roadblocks.
The methods of legacy practices pose a reactive approach to numerous reporting mechanisms. It causes to play out like an endless game of whack the mole. Addressing issues after they have risen up and metastasized into something large instead of nipping them in the bud and reducing their effects is not feasible.
Managing projects this way creates a hellish cycle of delays and budget overruns. This results in only 55% of planned work in construction being achieved. The remaining percent of work is hence marred by delays.
Performance-Driven Construction Management (PDCM) comes in handy. It is not a theoretical concept but rather a practical shift towards regular performance evaluations. It does not use any traditional methods of measuring outcomes and also does not use traditional measurement processes. Traditional processes do not go beyond budget and scheduling.
The objective of PDCM is fostering a culture of continual performance assessment and amendments based on modern methods. It also calls for emphasis on efficiency in planning, detecting risks early, and improving consistency in workflows. All of this should be integrated into the daily construction schedule.
Traditional management techniques fall short most of the time
Traditional models of management have their own merits. However, they usually fall down when it comes to the construction phase. These methods use a firefighting and reactive approach that leaves almost little to no room for any adjustments to be made. This results in a relentless pursuit of escalated issues.
PDCM challenges the subjective nature of traditional management processes. It encourages a shift from reactive decision-making to a more proactive approach. It helps teams timely identify areas for improvement and execute the needed amendments through the following actions:
- Measuring the workflow’s efficiency.
- Identifying the effectiveness of collaboration.
- Measuring the overall performance of teams.
Project advisory professionals explain that such kind of a strategy ensures the workforce undergoes constant improvements that further amplify their abilities to manage challenges when they rise up.
A practical shift into a new age
PDCM urges construction companies and their teams to use a measure-optimize-analyze approach and methodology. Analysis of measurements and trends helps enable the performance assessment of various areas and trades to be done on a proper footing.
Then comparing real-time performance to planned progress allows a team to identify what is working for them and what is not worth their time. If the analysis shows any areas needing a lot of improvement,, especially in tasks of subcontractors, construction companies can find out the root cause and other underlying causes of problems at hand.
For instance, let us take the challenge of inconsistency in trade output. Quantum Analysis professionals reveal that the output of a trade can fluctuate by an average of 56% one week after the other.
The inconsistency present can predict project completion as a problem. However, fixing the inconsistency can help predict a reduction of delays in a project.
For instance: an output inconsistency at 50% means a delay of 20%. Whereas output inconsistency of 25% results in a delay of 4%. Measuring the production pace of subcontractors and optimizing their output can help project managers reduce delays and amplify overall efficiency.
But there is another problem. That problem is none other than return visits.
The issue of return visits came with a company that had its 50-story office building constructed in Fort Lauderdale. The development is of 500000 square feet and wanted the company to have all of its employees in one building. The construction company working on it tried its best to be efficient by reducing completion gaps.
Measuring the tasks that were completed was done. If they were done correctly, and the data was analyzed; then errors would been found. There were issues in installation of pipe insulation in 30 areas of the building requiring a lot of return visits to fix the issue.
Via implementation of the PDCM framework, the company was able to cut down return visits by 55%. Identifying and optimizing the mistakes on-site saved 3 weeks of delays.
Getting ready for change
Transitioning from traditional practices to PDCM requires a move from chasing timelines and finishing delayed work towards being in full control. This is what quantum analysis experts have been advising construction companies for decades!
What it basically means is that construction companies must enter project dynamics and monitor all activities closely. This will help them make the right decisions at each step. Proactive management is the key here because a reactive approach basically ruins things. Making this work requires data that is accurate, objective, and delivered on time to construction teams.
