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    Prof Awad S. Hanna 1

    Professor and Chair

    Construction Engineering & Management Program

    Department of Civil and Environmental Engineering

    2314 Engineering Dr. Madison, WI 53704

    608-263-8903

    By

    Dr. Awad S. Hanna

    Achieving Greater Project Success and

    Profitability through Pre-Construction

    Planning

    No part of this publication may be reproduced or transmitted in any form, or by any

    means, without written consent from professor Hanna

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    Dr. Awad S. Hanna 2

    Biography

    Awad S. Hanna, Ph.D., P.E Dr. Awad S. Hanna is a professor and chair of construction engineering and management

    program at the University of Wisconsin-Madison, department of Civil and Environmental

    Engineering. Dr. Hanna holds M. S. and Ph.D. degrees from Penn State University and he is a

    register professional engineer in the U S and Canada. Awad has been an active construction

    practitioner, educator and researcher for over 30 years including 10 years as a design engineerand project manager. He has been active in industry-funded productivity research for nearly 20

    years, and research sponsors have included the Electrical Contracting Foundation, theMechanical Contracting Foundation, the New Horizon Foundation, and the Construction Industry

    Institute, among others.

    He has authored over 100 refereed journal articles on construction-related topics with specialemphasis on labor productivity, construction methods, Cumulative Impact of Change,

    Construction Risk Management and Orders.

    He has authored 15 major productivity-related books for the Construction Industry Institute,Electrical Contracting Foundation, Inc., the National Electrical Contractor Association,

    Mechanical Contracting Foundation, and the New Horizon Foundation. These have addressedsuch topics as the effects of absenteeism and turnover on labor productivity, the impact of

    change orders on labor efficiency, manpower loading, optimal project peak workforce, optimal

    project duration, the effect of multi-story construction on productivity, the effect of temperature on

    productivity, and factors affecting labor productivity for electrical contractors.

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    Biography (Continued)

    He is the author of both the National Electrical Contractors Associations course onConstruction Labor Productivity Improvement and the Canadian Mechanical Contracting

    Education Foundations course on Improving Labor Productivity. As such, he has presented

    over 500 one-day seminars and instructed more than 10,000 people in the U.S. and Canadian

    construction industry on improving construction labor productivity, and on improving site

    performance through proper pre-construction planning. His audiences have included NECA

    (National Electrical Contractors Association), MCAA (Mechanical Contractors Association ofAmerica), Canadian Mechanical Contracting Education Foundation, Electrical Contractors

    Association of Canada, Sheet Metal and Air Conditioning Contractors National Association,

    and National Association of Boilermaker Construction Employees (NACBE).

    Dr. Hanna has served as consultant and/or expert witness on many major national claims casesthat involved craft productivity evaluation, including such projects such as the MassachusettsCentral Artery The Big Dig and the New England Patriots Stadium.

    Dr. Hanna was the recipient of CIIs 2006 Outstanding Researcher Award and was the winnerof an international competition for the

    Best Innovative Ideas In Construction.

    In 2009, Dr. Hanna was elected as a Fellow for American Society for Civil Engineers. Thishonor is given only to 2% of ASCE members.

    Dr. Hanna was selected by he American Society of Civil Engineers Construction Institute Boardof Directors to receive its 2010 Construction Management Award for his significant contributions

    as an educator and researcher in quantifying the effects of construction contract change orders

    and in addressing major construction productivity issues.

    Prof. Awad Hanna 3

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    Prof Awad S. Hanna 4

    Outlines

    Introduction Productivity Gap Causes of poor productivity

    Industry Level Company level

    Workers level Pre-construction Planning

    Reality Background and definition Strategies for Successful Implementation Types of re-construction planning Pre-construction planning activities Reasons for Less-Than Successful Performance

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    Productivity Gap Continued to be a

    Problem

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    Most Recent Time Study(Hanna 2009)

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    Prof Awad S. Hanna 7

    Cases of Poor Construction LaborProductivity

    vIndustry LevelvCompany LevelvWorkers Level

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    Prof Awad S. Hanna 8

    Research

    vAll decisions and activities required to build the job will becompleted by the end of the project, the question is when doyou want to make these decisions?

    vAbility to effect the outcome of a project decreasesdrastically as the percentage complete increases

    vProjects that use pre-construction planning Achieve an average profit margin of 23 % Those that do not experience a net loss of -3 %

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    Prof Awad S. Hanna 9

    Pre-Construction Planning

    Pre-Construction Planning Definition

    A comprehensive set of proceduresinitiated after award but before

    construction

    Bid

    ConstructionstartAward

    Pre-construction

    Planning

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    Prof Awad S. Hanna 10

    Background

    Less than 10% had a formal PCP process Most (88%) had either semiformal or informal

    process

    TYPE OF PRE-

    CONSTRUCTION

    PLANNING PROCESS

    NUMBER OF

    RESPONSESPERCENT

    FORMAL 22 9%

    SEMI-FORMAL 113 44%

    INFORMAL 114 44%

    OTHER 6 2%

    MISSING DATA 2 1%

    TOTAL 257 100%

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    Prof Awad S. Hanna 11

    Research

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    Prof Awad S. Hanna 12 2006 National Electrical Contractors Association. All rights reserved.

    Relationship between Planning and Performance

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    Prof Awad S. Hanna 13

    Strategies for Successful

    Implementation

    Foreman take off JobFormal ProcessTop Managers commitment to standardized planning process Tailoring the model planning process to each project System for tracking success on well-planned projects Implementation of a double-check system

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    Prof Awad S. Hanna 14

    Strategies for Successful

    Implementation

    Strategies for Successful Implementation

    Early involvement of the field supervisor in the planning process Ensure excellent planning effort to critical activities Turnover Meeting and Planning Kickoff Meeting Lessons learned and feedback loop

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    Prof Awad S. Hanna 15

    MODEL PRE-CONSTRUCTION PLANNING PROCESS

    Scope Review

    Review of Available

    Personnel

    Cost Estimating

    Schedule Review

    BID PREPARATION PLANNING

    PRE-CONSTRUCTION PLANNING

    Construction Execution

    Kickoff

    Team Selection andTurnover

    Scope and Contract

    Review

    Administrative Setup Buyout Process

    Layout and Sequencing

    Schedule Development Budget Preparation

    Tracking and Control

    Material Handling Plan

    Bid Submission

    Safety & QualityProcedures

    Installation Procedures

    MobilizationAdministrative Setup Scheduling & Reporting

    JOBSITE MANAGEMENT PLANNING

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    Prof Awad S. Hanna 16

    Scope Review

    Management Review

    Cost Estimating

    Schedule Review

    BID PREPARATION PLANNING

    Bid Submission

    1.Review plans and specificationsfor project requirements

    2.Conduct site visit (performancerecommended)

    3.Create a list of questions that needto be answered or issues that

    need to be resolved beforesubmitting bid

    4.Review customer's schedule andtimeline

    5.Think about and tentatively selectproject manager and field

    supervisor

    6.Prepare quantity takeoff7.Develop Bill of Materials8.Solicit pricing from subcontractors/

    suppliers/vendors

    9.Determine estimated work hours10. Establish crew size, labor ratios,

    and/or average labor rates (perf.

    recommended)

    11. Develop cost code scheme

    12. Prepare scope letter or proposaland submit to customer

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    Prof Awad S. Hanna 17

    PRE-CONSTRUCTION PLANNING

    25. Set up project files and createcontact list

    26. Set up computer tracking andcontrol system

    27. Initiate a change managementsystem

    Team Selection and Turnover

    Scope and Contract Review

    Administrative Setup

    13. Finalize selection of projectmanager, field supervisor, and

    other key team members

    14.Hold turnover meeting betweenestimator and project manager

    15.Hold separate turnover meetingbetween project manager andfield supervisor

    28. Initiate an RFI tracking andprocessing system

    29. Initiate a submittal tracking andprocessing system

    16.Hold pre-job (planning) kickoffmeeting with internal team

    members to assignresponsibilities30.Develop a "Labor Requirements/

    Expectations" letter (performance

    recommended)

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    Prof Awad S. Hanna 18

    PRE-CONSTRUCTION PLANNING

    42.Develop installation sequenceand layout drawings

    43.Develop field instructions,including panel, pull, or conduit

    schedules

    44.Develop prefabrication drawingsfor field use

    22.Compare estimated (bid) workactivities & materials to planned

    performance

    17.Review contract for unfavorableor high risk clauses (perf.

    recommended)

    18.Project manager reviews plans,specifications, and schedule

    19.Field supervisor reviews plans,specifications, and schedule

    20.Create a list of issues that needto be resolved and begin the

    request for information (RFI)process

    21.Conduct site visit (perfrecommended)

    Scope and Contract Review Buyout ProcessLayout and Sequencing

    23.Identify value engineering andprefabrication opportunities and

    how to simplify the work

    24.Prepare construction takeoff

    36.Develop and process log andbook of submittals, cut sheets,

    and shop drawings

    31.Review subcontract/ supplier/vendor pricing and qualifications

    32.Negotiate pricing & contractconditions and select

    subcontractors/ suppliers/vendors

    33.Develop and issue purchaseorders and contracts for materials

    and equipment

    34.Order long-lead-time materialsand equipment

    35.Request submittals, cut sheets,and shop drawings

    Schedule Development

    Material Handling Plan

    45.Review customer's schedule andtimeline

    46. Identify work that impactselectrical activities

    47.Review the work sequence andlong-lead-time material/

    equipment delivery dates

    48.Coordinate electrical schedulewith the customer's schedule

    49.Create a bar chart schedule (perf.recommended) 37.Develop material delivery and

    handling plan

    38.Develop material storage andstaging planBudget Preparation

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    Prof Awad S. Hanna 20

    JOBSITE MANAGEMENT PLANNING

    60.Set up field files, documentcontrol system, and as-built

    record keeping

    61.Customize the computerizedtracking & control system for the

    current project

    62.Review customer coordinationmeetings schedule

    59. Mobilize and set up the jobsite

    67.Evaluate and plan crew size orcrew mix

    63.Review or establish look-aheadscheduling process

    64.Review daily reportingrequirements (perf.

    recommended)

    65.Establish/review subcontractorstart and finish dates (when

    applicable) (performancerecommended)

    66.Identify tools/special tools andequipment requirements (perf.

    recommended)

    72.Review company safety plan,procedures, lessons learned and

    OSHA requirements

    73.Schedule weekly safety meetingswith the crews

    70.Prepare or provide crews withlayout/ installation drawings andfield instructions

    71.Prepare or provide crews withprefabrication instructions

    Safety Procedures Installation Procedures

    Labor Management

    MobilizationAdministrative Setup Scheduling &

    68.Forecast weekly crewrequirements

    69.Develop labor hours reportingprocess

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    Prof Awad S. Hanna 21

    Reasons for Less-Than-

    Successful Project Performance Missed part of project scope Did not set up project tracking system Insufficient turnover between estimator and project manager Prime contractor did not include others contractors in pre-con planning Taking on a larger project that company was capable of

    completing

    Taking on a project in a location (town) where they were notexperienced or that was far from the home office

    Owner was not familiar with the construction process

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    Prof Awad S. Hanna 22

    Reasons for Less-Than-

    Successful Project Performance Poor sequencing of the work Late equipment deliveries Shifting manpower between projects Shifting leadership between projects Stacking of trades due to poor scheduling Poor material-handling procedures

    Lack of communication between the foreman and projectmanager

    Project appeared to be easy; therefore, no effort was put intopre-con planning