Creating Potential and Delivered Value for Contractors

We are contractors and the contract is a tangible representation of potential value. That value is delivered when the right information, materials, and equipment come together at the right time in the hands of the right craftsperson for installation.

D. Brown Management Profile Picture
Share

 

 

Once your strategic decisions are made about your markets, operations, and talent, the business of building is largely about winning work and building work. This will be the focus of most of your people and management systems

"Eighty-Five Percent of the reasons for failure are deficiencies in the systems and processes rather than the employee. The role of management is to change the process rather than badgering the individuals to do better." - W. Edwards Deming


 

Identify priorities, bottlenecks, and constraints in your business by focusing on two critical milestones—the contract and field installation. Use this simple checklist for each to start your continuous improvement process

The Contract (Potential Value)

  1. Identifying and choosing the right opportunities to pursue (BizDev & Executives)
  2. Defining the right scope, design, and schedule to deliver maximum value to the project owner (Precon / Engineering)
  3. Accurate quantity take-off (Estimating)
  4. Accurate costs including materials, equipment, subcontractors, and crews (Estimating)
  5. Accurate unit production rates given the conditions (Estimating)
  6. Right terms and pricing for the risk (Executives)

 

Field Installation (Delivered Value)

  1. Right field workforce—trained for the task(s) including field leadership
  2. Right tools and equipment
  3. Right information
  4. Right materials
  5. Clear work area
  6. Stretch goals

Achieving this in the field comes down to Effective Tasking, The 6 Pillars of Productivity, Short-Interval Planning (SIP), and ABC Daily Planning

 

 




Percent Planned Complete (PPC) - Calculation Example
Yoda would be the perfect coach for managing schedules on projects: “Do or do not. There is no try.” This is the heart of Percent Planned Complete (PPC) and the weekly cycle of continuous production improvement.
The Toolbox of a Leader
Contractors know how important it is for their crafts people to have a toolbox (and bags) full of well maintained tools. As a leader in a construction business you must build your own toolbox.
Change Tracking Log & Management
Great change management starts with a good tracking system. The far more important part of change management is the rigorous review process at least 2X monthly with your PMs that will limit your risk, increase your opportunities, and train your team.