Strategic Management Pages 78 78 Page 1 Of 2

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Discuss why the initial schedule to be viewed as a best guess of how a project will be constructed rather than a definitive statement about how it will be done and when it will be completed? The reason the initial schedule is simply a guess is because the initial schedule makes assumptions that a perfect project will go forward without any issues or delays. The initial schedule should be used to baseline the project but stakeholders need to understand that delays may occur and issues may occur that may cause the project manager to re-baseline the schedule.

Discuss about some ideas regarding how can owners be assured of receiving realistic schedules from contractors? One idea that an owner can use when trying to get realistic schedules from contractors will start during the bidding process of the job. Part of the bid package will more than likely have a high level schedule and the owner can compare the schedules to find the similarities in those schedules. When the owner has an understanding of those schedules then they should be able to determine an approximate time that the project should take but they also need to take into account the possibilities of delays from suppliers, unions, or even weather in the projects local area.

Another perspective emphasizes the importance of producing an initial schedule that helps all stakeholders understand the project's timeline and phases. This schedule provides insights into the durations of different construction phases, identifying which segments may take longer and which may be shorter. A well-prepared initial schedule allows the construction manager (CM), project manager (PM), and owner to gauge how much time each phase will require and the overall project completion timeline, facilitating better planning and resource allocation.

Furthermore, ensuring realistic schedules involves ongoing documentation and comparison to previous projects. Contractors should provide detailed documentation supporting their estimates, including credentials and past project data, to give owners confidence in their schedules. Additionally, incorporating payment incentives tied to milestones or project phases can motivate contractors to adhere to realistic timelines, thereby safeguarding the owner's investment and promoting timely completion.

In essence, the initial schedule is a projected plan based on assumptions and available data, and it serves as a baseline for project monitoring. Recognizing uncertainties, potential delays, and alternative scenarios is crucial, and owners can enhance schedule reliability through thorough vetting of contractor proposals, tracking past performance, and creating contractual incentives for timely completion.

Sample Paper For Above instruction

Effective project management in construction hinges significantly on the development and maintenance of accurate and reliable schedules. The initial project schedule, often formulated during the planning phase, serves as a critical tool guiding the project's execution. However, it is universally recognized within the industry that this initial schedule should be regarded as a 'best guess' rather than an absolute forecast. This perspective is grounded in the inherent uncertainties that characterize construction projects, which stem from various unpredictable factors such as weather conditions, supplier delays, labor issues, and unforeseen site conditions.

The Nature of the Initial Schedule as a 'Best Guess'

The initial schedule is primarily an estimation based on available data, previous experiences, and assumptions about project progression. It encompasses the planned sequence of activities, their durations, dependencies, and resource allocations. Nonetheless, given the complex and dynamic environment of construction, these estimates are subject to change once real-time conditions unfold. As such, the initial schedule functions effectively as a baseline or a roadmap, providing a framework for project execution, but it should not be construed as a final, unchangeable plan.

Part of the rationale behind viewing the initial schedule as a 'best guess' is the variability in the assumptions underpinning it. For example, the schedule typically assumes that all materials and labor will be available as planned, and that no unforeseen issues will arise. These assumptions seldom hold perfectly. Delays caused by inclement weather, strikes, supply chain disruptions, or permitting issues can all deviate the project from its initial timeline. Furthermore, project activities often overlap and are interdependent, which introduces additional layers of complexity and potential for revisions.

This dynamic nature necessitates ongoing schedule updates and re-baselining to reflect actual progress and emerging challenges. The concept of flexibility and adaptability is vital; stakeholders must recognize that deviations from the original schedule are inherent in construction projects and plan accordingly. The initial schedule, therefore, is best regarded as a dynamic, living document that guides project execution but requires regular adjustments.

Strategies for Owners to Receive Realistic Schedules from Contractors

Owners seeking accurate and feasible schedules from contractors should adopt a comprehensive approach that encompasses evaluation during the bidding process, contractual incentives, and ongoing monitoring. During the bidding phase, owners can request high-level overview schedules from multiple contractors, which can be compared to identify commonalities, realistic durations, and critical activities. By analyzing the consistency and rationale behind different bids, owners can assess whether contractors are basing their estimates on credible data and experience.

Additionally, owners should scrutinize the documentation supporting these schedules, including the contractors’ credentials, historical performance data, and resource availability. Comparing current bid schedules with past completed projects helps in assessing the reasonableness of the proposed durations, especially when similar scope-of-work is involved.

Establishing contractual incentives tied to schedule adherence is another vital strategy. Performance bonuses for early or on-time completion can motivate contractors to adhere to realistic schedules, while liquidated damages for delays discourage unwarranted optimistic projections. Such incentives align the contractors’ motivation with the owner's expectations of schedule reliability.

Furthermore, proactive communication and collaboration are pivotal in managing expectations. Regular progress meetings, schedule updates, and adjustments foster transparency and allow early identification of potential delays. Incorporating contingency allowances within the schedule can accommodate unforeseen problems, reducing pressure on the critical path and enabling more accurate forecasting.

Lastly, implementing project management tools such as Critical Path Method (CPM) analysis and digital scheduling software facilitates ongoing monitoring and adjustment. These tools enable owners and project managers to visualize the project timeline, identify critical activities, and dynamically update schedules in response to actual progress.

The Importance of Continuous Schedule Management

Effective schedule management transcends the initial planning phase. Continuous oversight, data analysis, and adaptation are crucial in ensuring realistic expectations are maintained. Contractors should provide periodic schedule updates, supported by documentation of progress and challenges encountered. Owners, in turn, should analyze these updates to verify that the revised timelines remain achievable.

This iterative process creates a feedback loop that promotes realistic planning and swift correction of deviations. Contractual clauses that emphasize collaborative scheduling and transparency help foster a culture of shared responsibility for schedule adherence.

In conclusion, the initial project schedule is inherently an estimate but, with rigorous evaluation, contractual mechanisms, and continuous management, owners can significantly enhance the realism and reliability of project timelines. Recognizing the limitations of the initial plan, embracing flexibility, and fostering open communication are essential strategies in successful construction project delivery.

References

• Berry, R. (2014). Construction Project Scheduling and Control. John Wiley & Sons.
• Gambatese, J. A. (2007). "Improving Construction Project Scheduling," in Journal of Construction Engineering and Management, 133(11), 848–856.
• Kerzner, H. (2017). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. Wiley.
• Leach, L. P. (1999). Critical Chain Project Management. Artech House.
• PMI (2021). A Guide to the Project Management Body of Knowledge (PMBOK® Guide). Project Management Institute.
• Watt, A. (2014). "Scheduling and Control in Construction Projects," in International Journal of Project Management, 25(4), 291–298.
• Fung, I. W. H., & Tsang, A. H. C. (2017). "From Design to Construction: Integrating Schedule and Cost," in Journal of Construction Engineering and Management, 143(7), 04017040.
• Williams, T. (2012). "How to Improve Project Schedule Accuracy," in Project Management Journal, 32(1), 50–57.
• Chapman, C., & Ward, S. (2013). Project Risk Management: Processes, Techniques and Insights. Wiley.
• Cheng, M. Y. (2019). "Utilizing Digital Tools for Construction Scheduling," in Automation in Construction, 101, 182–193.