Target all the design to be done before construction begins.

If that is not possible, try to have complete deliverables packages complete before construction begins.

If design is still proceeding when construction starts, the constructors will require a lot more input from the designers, leading to higher design costs (in construction stage services).

Related Posts

1. Design Discrepancies
2. Document Design Changes and Delays
3. Consider Overall Costs

A designated group of people should be responsible for this and should know the system. That group should be able to process purchase orders for work even if that work will be paid for by the head companies and not the alliance.

For example, I needed to get some external design work done. I had an external person who could do a set of designs for a set price. Yet it took ten weeks to actually make the purchase order so that work could start, including 10 hours of my time in going backwards and forwards trying to sort the system out.

The process included these steps:

1. Try to find out which head company was paying
2. Get the correct forms for the purchase
3. Find the sub consultant agreement forms
4. Wait until the head company could send me the right forms
5. Fill these out and sending them to the head office accounts department
6. Get them returned to me saying they were wrong and a different form should be used (different people thought different forms should be used)
7. Send the agreement forms to the sub contractor to agree to.
8. Get them back with alterations.
9. Send them to the head office corporate solicitor to check and advise.
10. Get a new form recommended and send them again to the sub consultant for agreement.
11. Get agreement and then get signatures from alliance managers.
12. Send the signed form to the head company for signatures.
13. After agreements are all signed, give these and sub consultant details to accounts department for a purchase order to be made.
14. Get this purchase order signed by alliance managers
15. Get the purchase order signed by head company.
16. Alter purchase order and agreement because different designs are now required (because of the time delay some internal staff had done some designs themselves as they were needed urgently)
17. Get signatures again (alliance, head company, sub consultant.
18. Send purchase order and agreement to sub consultant for work to be commenced.

Many of these steps took one or two weeks for review and responses. It would have been cheaper, quicker, and easier to get these designs done internally and pay overtime to get them done.

Management cost to get these processed $2000

Cost of designs $8000

These costs do not include all the purchasing and accounts department time and costs, only the direct design management costs (my time and my manager’s time).

If there was a division in the alliance office who could do all this, I could have taken the sub consultant details and price to them and they could have done this whole process in less than one hour, at a cost of perhaps $50.

• They would need all the correct forms and agreements from the head companies.
• They would need to know who authorises these forms and have easy access to these people.
• They should know what forms and agreements are used for each purpose.

Related Posts

1. Get a Signed Contract Before Starting Work
2. Authorization System
3. Sub Consultant Agreement with Tender

If you send an invite/schedule booking to team members for a meeting, staff function, training etc, you should send the time code that they should book their time for that time under.

This will save them each individually searching or asking what they should book their time to.

This should also apply if you instruct someone to work on a different project than they normally work.

Related Posts

1. Make Good Use of Calender Time Scheduling
2. Time Sheets
3. Authorization System

Consider the ease and speed of installation even if the materials may cost more.

For example, laying asphalt may be more expensive in materials than using pavers, but it may work out to take less labour time than laying pavers and so the overall cost may be lower

Related Posts

1. Good Document System
2. Construction Stage Services Costs
3. Early Change is Best

E.g. “A pair of reading glasses have been misplaced. If you have seen these could you please return them to reception.”

This kind of message often gets sent to the whole organisation mail system, which could include thousands of people, when it should be sent just to that local office.

The lost time associated with thousands of people readings a broadly sent email like that and the bandwidth costs could amount to thousands or tens of thousands of dollars.

In the above example, approximately 5000 people received the message. 5000 x 30 seconds is about 42 hours wasted time ($5000+ in billable time). Plus the time wasted in people laughing about it and replying with comments. Plus the storage costs and transmittal costs.

Not only does it make the sender look foolish, it wastes your project time, resources, and if from your project, its reputation.

Related Posts

1. Reliable Network
2. Authorization System
3. Training and Self Improvement Library

If your client wants costs cut, look for the most costly features (in design cost and construction cost) that could be eliminated without significantly reducing the final required result of the project.

For example, a client wanted a set of equipment protected from potential flood levels by constructing it on the flat roof of an existing building. However, the rest of the existing plant was below that level so in the case of a flood would be out of operation anyway. To construct on the roof of the building would have taken significant extra structural support costing more than the equipment being installed. It was decided to install the equipment at ground level instead of raising it above the potential (rare) flood level, and installing a simple bypass system for use in case it failed. This saved more than double the price of replacing the equipment in the unlikely event of it being flooded.

Of course this may not be possible with features that are critical to operation, but if they are not critical, eliminating these features at the design stage (early in the project) can save a lot of money.

Related Posts

1. Good Document System
2. Learn to Say No
3. Is It Contaminated?

If change requests from the client will make the design unsafe or unusable, you should refuse to change it. Otherwise you could still be sued as the designer for giving misleading information when your company is the expert (accepting a change could be deemed as approving it, even if you gave a warning that it would be unsafe or unusable).

Another instance to say no is if the client asks for changes that will increase the schedule but won’t approve the increased schedule. Get approval from the client for the extended schedule or cost before saying yes to the proposed change.

Related Posts

1. Get Instructions in Writing
2. Addition Clause in Contract
3. Unreasonable Project And Construction Schedules

Giving a significant reward for ideas that make significant savings or profits would encourage ideas even more.

Apparently the Japanese used to have a reward system where if an employee put forth a suggestion that saved money, they would get half of the first years profit or savings from that idea.

Related Posts

1. Getting Ideas from Team Members
2. Eliminate Unnecessary Features
3. Speed Up Induction and Issuing of Access Cards

They may have tendered or quoted a long time ago and things may have changed (such as their workload, delivery schedules, material costs etc).

Even if you are still within the validity of the quote, they may have now booked a lot more work and may struggle to meet your expected delivery schedule. Suppliers or contractors may have said they can meet the price, but often the delivery time will slip. So check if they are still capable.

Related Posts

1. Clear Specifications
2. Watch External Dependencies
3. Allow For Inflation

Some reasons could be different to just business as usual, and these may affect the priority on time, cost, or quality

• Was it internal business reasons (business process improvement)?
• Is your organisation using the project as a demonstration of its capability? To show off and make itself known.
• Is the project a way to break into a new market (low or no profit may be expected because it will be used as a learning and development exercise).

Related Posts

1. Hold Project Manager Accountable
2. Submit claims as soon as possible
3. Check for influences on your project.