Project Management: Systems over Software
Procore and Buildertrend won't save a disorganized company. Software only digitizes your existing processes. If your processes are broken, software just helps you fail faster.
The Triangle of Control
Effective project management balances three constraints: Scope, Schedule, and Budget. A change in one forces a change in the others.
1. Scope Management (Change Orders)
A change order is an amendment to your construction contract. It alters the scope, the price, and/or the schedule. Never perform out-of-scope work on a promise that "we'll settle up at the end."
- Document the request: Who asked for it? When?
- Price it accurately: Include direct costs, overhead, profit margin, and time extensions.
- Get a signature: Work does not begin until the change order is signed.
2. Schedule Management
A schedule isn't just a calendar; it's a critical path analysis. If the framer is late, the plumber is late, and the drywaller is late. Understand lead times for materials. Order long-lead items (like custom windows) immediately upon contract signing.
3. Budget Management (WIP)
Managing the budget requires understanding your Work In Progress (WIP). Are you over-billed or under-billed?
- Under-billed: You have completed 50% of the work but only billed for 40%. You are financing the project for the owner. This kills cash flow.
- Over-billed: You have completed 30% of the work but billed for 50%. You have cash now, but you owe work later. If you spend that cash on overhead, you will run out of money before the job is finished.
Essential Documentation
The Daily Log
The single most important document on a job site. It should record weather, manpower on site, work performed, delays, and deliveries. In a dispute, the party with the most detailed daily logs almost always wins.
RFIs (Requests for Information)
When the plans are unclear, submit a formal RFI to the architect or owner. Do not guess. Do not proceed based on an assumption. An RFI shifts the liability for the design detail back to the design professional.
Frequently Asked Questions
How do I handle a difficult subcontractor?
Enforce the subcontract. Document safety violations, delays, and quality issues in writing. Issue formal notices to cure. If they fail to perform, terminate them according to the contract terms to protect your own schedule.
What is a Punch List?
It's the final list of minor deficiencies (paint touch-ups, missing trim) generated at the end of the project. Complete the punch list immediately. Do not let it drag on, as the owner will withhold retainage until it's finished.