Self-Build and Design Exhibition

Posted by Steve | General blog posts | Monday 16 August 2010 9:59 am

I will be presenting a seminar on Construction Project Management (CPM) at the Self-Build and Design Exhibition http://www.selfbuildanddesignshow.com/ at the Westpoint Centre, Exeter on 11th and 12th September 2010.  Anyone wanting free tickets please contact me through the my website www.sfsmancon.co.uk/contact.php and I will send them to you by e mail. I hope you will attend so that I can perhaps throw some light on this crucial subject of Construction Project Management.

Steve

Construction Project Management is it an extra expense or a necessity?

Posted by Steve | General blog posts | Monday 16 August 2010 9:41 am

It is essential for any untrained client to employ a professional representative to oversee any design and build project, someone who can act as their conduit into the world of construction. Eventually after several projects they would learn enough of the technicalities to be able to understand the process better and to know how and when they can have influence over the procedure. 

Commercial investment developers understand this completely and employ the services of Construction Project Managers in the same way that they employ a Solicitor or an Accountant to provide specialist services. It is only when you get clients who are either newer or smaller developers or some domestic self-build clients that you find people who seem unwilling to form a relationship where they can trust a professional Construction Project Manager to act on their behalf.

It can be frustrating knowing that when a Construction Project Manager is employed on a project it is an aid to all parties. Not only does the Client get someone who can interpret all that is occurring and can explain it in layman’s terms, but the contractor gets someone liaising between them and the client who understands the process and understands their role in it, so you don’t get these silly misunderstandings that you often hear about. In addition the Architect/Designer gets someone acting in liaison who again understands the clients needs and can interpret them in the necessary technical language. Winners all round!

Again, it is strange that on large projects the presence of the Construction Project Manager is both accepted by all and indeed welcomed because of the former comments. However when you get to the smaller projects the Construction Project Manager is seen as an unnecessary expense, when in fact their involvement would save the client money.

Anyone in the construction industry will know that the main source of financial loss in any building project is inefficiency and waste… so the application of technically proficient, logical and scientific management is as important in the smaller project as the larger one. In fact I would say it is more important, as the smaller developer can absorb much less in the way of financial loss than the larger institutions.

Don’t you just hate it when so…

Posted by Steve | SFS ManCon Tweets | Monday 9 August 2010 2:25 pm

Don’t you just hate it when someone says that they will get back to you in a few minutes or send an email and then don’t….Urgh…

Building costs lower? or actually higher?

Posted by Steve | General blog posts | Wednesday 4 August 2010 11:20 am

As the recession bites deeper into our pockets and dreams of building your own home are more carefully considered, news that contractors are prepared to work for less is an appealing thought. But beware…nobody works for nothing! If contractors find themselves running out of profits on a job they will begin to look for ways of cutting corners. The easiest way is by using cheaper labour to carry out what are fairly basic tasks for tradesmen but can be more difficult for a labourer to grasp. This can result in work being covered up that may not be to an accepted standard.

The most prevalent use of this system is in the groundwork and foundation phase, which is conversely the last place that any corners should be cut. Mistakes made at this point could be catastrophic later and involve at best months of litigation to try to get the faults corrected when they show themselves. This is normally long after the groundworks team have left site and been paid the majority of their money. It is no good protesting that the Building Control Officer should inspect all work and so that must mean it’s OK. The BI can only see so much and even if very experienced, a clever ground worker can hide things from their eyes that even they cannot spot. Also often, although the BI inspects the start of any work, he does not stay for the duration. The contractor’s motive is profit: and the fact that you may suffer problems with your building later is of very little consequence to them.  

The cost of a particular piece of work is fairly fixed. The cost of materials can be negotiated by about 10% either way, dependent on quantity, how good you are at bartering and the quality of the materials. Likewise, the cost of labour is commensurate with the quality of the work. So cheap inferior materials and cheap inferior labour will give you a cheap and inferior building…there is no escape from that equation.

There are many pricing manuals out there used by estimators that dictate the unit rates of any particular job of work, that is, how many hours it takes to carry out. The unit rates are fairly fixed so the only change to be made is the rate of pay. It is usual for the best tradesmen to charge the highest rates, so if you want the best you will have to pay for them. You will only be able to choose your workforce however if you are employing tradesmen directly. If you use a contractor, you will have to accept the workforce provided by them.

The best way to resolve all of these issues is to employ someone who works directly for you to oversee everything. From the feasibility of your original concept to formulating a budget and the tender process to create your build team and on through the build itself, watching over all of the work to maintain quality and cost effectiveness. You can now employ the services of a professional construction project manager (CPM) who will deliver a package to suit the needs of your project and advise you on all aspects of your build. This has got to be a better way to build.

Collaboration with costing or botched design?

Posted by Steve | General blog posts | Wednesday 4 August 2010 9:43 am

I have been posting lately on a business-to-business forum regarding the relative roles of different professionals in the construction industry and how they work together to create a team. In the commercial construction field and in some well-organised domestic self build projects this is the design team. It includes the client, the architect, the project manager, the engineer and from time to time any other specialist designers such as swimming pools, M&E etc. I have been expounding the view that each of these individuals should concentrate on their role yet collaborate in costing the design. My contention is that architects for instance are artistic innovators and nothing should divert their attention from that role.

Clients often ask architects to cost their designs…. They are the last people who should carry out this task. How can they be expected to allow their artistically tuned minds to produce the fantastic designs that we demand of them, when they have the nagging doubt of budget costs added to the equation. If they were to collaborate with an estimating professional, who was carrying out a budget process  they could allow that individual to cost their design as it progresses. This would free them to think in aesthetic terms and enable them to step away from those standard living boxes that don’t really require their talents. The estimator would apply any costing issues and assist the architect in finding a way to reduce any financial impact that a particular design element may incur.

The added benefit of this system is that it can be applied to any of the disciplines. As with the architect, if the engineer was to work in collaboration with an estimating professional their designs would be tested for cost effectiveness as they develop and then any cost driven changes could be made that wouldn’t necessarily impact on the design itself. Including the estimating professional in any of the additional inputs to the design team then becomes a natural progression with the client’s budget as the basis for the estimator’s assessments.

Again a fairly normal process in commercial construction, it is sadly missing from the domestic self build sector and written off as an unnecessary expense. The result…a building with a compromised design, which then leads to botched up design elements as contractors attempt to deliver what the architect has drawn with a budget not fit for purpose.

How many times have the cost of the foundations for instance negated the inclusion of desired elements or fittings and all because it was not costed as it was developed? An engineer will develop a foundation to fit the purpose of the project, they will not necessarily include costing that design within their calculations; this is not their function. An estimating professional with some practical background, working in collaboration, may be able to envisage a different approach, which might just reduce the cost without compromising the structure.

It therefore becomes obvious that not including an estimator in the design team can end up costing the client, not only more money, but a compromised and botched design.

Working efficiency in the South West?

Posted by Steve | General blog posts | Wednesday 21 July 2010 5:07 pm

When I first started working in the South West, it was straight after managing a project in Essex. My first South West project was in Bristol. A lovely site, a beautifully designed home and with a fair amount of time to organise the work and carry out the tender process properly. I duly carried out the budget formulation and costed the works using universally accepted unit rates from a reputable estimating manual. Within a short period of beginning the build, I was running into difficulty with attaining the target dates I had set myself and I began to investigate the problem, just in case I had made an error somewhere. I had a gut feeling about what was happening, but still to be sure, I looked deeply into my figures.

Within my estimating software, which I developed myself, there is provision for a comparison between labour and material costs. These had been at about 40% labour and 60% materials prior to this project. In Bristol that figure had changed to 50/50 and I could not find any arithmetical reason for this, after all, I had used the same system before and by chance, most of the materials had come from the same supplier so I was able to compare those. The truth was that the labour force in the South West was working appreciatively slower than the people in Essex. Now I try not to succumb to stereotypes as I have been a victim of that myself in the past, but even so, we were talking about a possible significant increase to the cost factor of a new build house.

After several other projects in the South West, I became wise to the difference and was able to rework the schedules to overcome this anomaly. Basically, the South West workforce gets a lower rate of pay than their Eastern cousins to make up the difference.  However, people moving to this lovely area from the cities, whatever the local feelings about that are, deserve to be able to have their homes built without a sizeable time overrun from what can only be described as the laid-back attitude of the indigenous labour force. In addition, that same workforce could be receiving substantially larger paydays.

Back in Bristol, with the work rate during the day noticably slower than almost anywhere else in the country, I attempted to push things along by advocating working longer hours and possibly weekends to catch up what was a perfectly reasonable programme…. I might as well have been suggesting the removal of certain body parts.  My proposal did not go down well; and eventually I had to have a conversation with my client, who was a West Country man himself, regarding what was going to be a sizeable time overrun. “Oh don’t you worry about that?” he said, “It’s always like that down here.  We have a more measured outlook on life”!

 Steve

Why should I use a project manager and not a builder?

Posted by Steve | General blog posts | Sunday 11 July 2010 11:51 am

Simple answer to that question…Who pays the piper!  

Who is the builder working for? If it’s a small one-man band contracting firm…and most are… then they are most definitely working for their own benefit. If it’s a bigger organisation then they are working for either shareholders or for the big boss man, who has a mansion in some quiet country village and drives a top of the market Range Rover.

These building firms earn money by charging as much as they can get away with for as little work as possible. This is fact… and anyone who works in the building industry is privy to that. That it’s a hard life is an understatement! Many people who work in the construction industry are completely knackered by the time they are fifty and if they have not ‘made it’ by then, they are usually consigned to a lifetime of labouring for little money.

So why use a project manager? Well they work for you, just you and no-one else! They have the knowledge and the substance to be able to make your building project go swimmingly well. They will be looking out for your interest and only yours, in everything from helping you to choose the right design, pricing the works and choosing the right team to carry out the build, and then checking that it is all done correctly and to budget.

Yes… but how much will all that cost me?  Well certainly, no more than a contractor would charge you…. Oh yes they do charge for project management. They may call it something different, such as ‘running the job’ or ‘preliminary costs’ or ‘overheads and profits’ but basically it is the sum of money you will pay them to organise your project and to carry out the work.

So what would be best for you then? Some so called builder who needs as much money as he can get to last him a lifetime. Some contracting firm who has to earn enough to satisfy a board of directors and shareholders…or even the latest Range Rover.

Or would it be a project manager, someone who is independent of all that and who works just for you, someone who has the credentials to carry you through all the decisions you need to make and all the tribulations that are bound to come up when you take on a building project. Commercial building clients don’t think twice about using a project manager. They already know that’s the best way to do this. Why don’t you copy their good sense and do the same?

 Steve

Multi Tasking Friend or Foe?

Posted by Steve | General blog posts, Self-build advice | Sunday 27 June 2010 11:11 am

There are those who insist that they can ‘Multi-task’ when running a building project. They insist that their brains can cope with this and that they are productive in doing so….

What utter rubbish!

Our brains are wired to work productively if we concentrate on one thing at a time. This doesn’t mean that we can only manage one process at a time. It means that we have to organise things so that each task is allotted the right amount of time to be carried out efficiently and that enough buffer time is allocated to allow for intrusions and setbacks.

If we attempt to run any project by multi-tasking, it normally ends up in chaos and ultimately dispute as productivity is negatively affected and those people who need answers to their questions get frustrated by a project manager running around like a headless chicken.

The only way a building project can meet it’s target, which is completion on time and budget, is if it has been planned and programmed logically and realistically. This is a process, which can be achieved by anyone with a modicum of self-discipline and a notebook, so long as they have a good knowledge of the given subject.  

In the case of building, this level of knowledge is becoming increasingly hard to achieve for the average DIY enthusiast. If basic design concepts are stuck to rigidly with no allowance for flair or imagination, then yes anyone can do it. If however any of the more conceptual designs are undertaken then the project manager needs to possess enough depth of knowledge to be able to foresee the likelihood of any problems and nip them in the bud before they become a major catastrophe.  

In this situation to try to manage, your own project is likely to leave you a penniless nervous wreck…especially if you have neither the training or the inherent self-discipline to carry the day.

It is this mix of logical management skills and construction knowledge that makes a professional construction project manager such a valuable tool for anyone considering building work.

Steve

Accuracy in pricing works or guesswork?

Posted by Steve | General blog posts | Thursday 24 June 2010 8:04 am

I have just finished costing up some work for an architect who will pass the cost on to the client. The purpose was to ascertain what the likely costs of the design would be and whether they would fit within the overall budget. This feasibility study is ongoing and is of real benefit to any client. Once again, I am reminded that this was a commercial venture and that this is situation normal in the commercial field.

Domestic self-build clients however seem to think this a waste of money and would rather put their faith in their local builder who would never try to lead them astray…they would never hide the true cost of the works in order to get it going – and they would never leave a job unfinished even if it meant they would not get paid….

Get real people…! This happens all the time and myself and other independent project managers get hammered with the task of trying to put it all straight. Usually by this time the ‘honest builder’ would have taken all the money and the hapless self-build client would have borrowed more money to get the job completed, or worse they will be in a position of no money and no chance of completion and will then have to sell their dream home to escape a life of penury.

It costs very little to get a feasibility study carried out normally about £1 for every £1000 of build cost. That’s about £150 – £200 to find out if you can actually afford the design you want, or to identify what you can change in order to afford the work…now that seems to me to be a bargain and good sense. Follow that up with a full budget formulation and a quantified schedule of work and you then have the basic tools with which to go ahead with your self-build project.

 Steve

VAT The Dreaded Tax On Home Improvement

Posted by Steve | General blog posts | Thursday 24 June 2010 7:27 am

What a missed opportunity. The chancellor could have spread the burden of VAT on building work by introducing a reduced rate on all building works. Currently set at 5% this would have had little effect on the cost of a new house but would have had a dramatic effect on the refurbishment market. Self build in this area is a huge market and would have created jobs as self builders would have turned to refurbishment of their homes rather than moving to a larger home. When will the government see sense on this? The French did this a few years back and actually increased their overall revenue as well as revitalising their construction industry.

Why don’t more people join NaSBA so that we can really put pressure on the powers that be to change this stupid tax situation?

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