COSC 353 Exam 3

Match the project control term on the left with it’s associated term on the right:

1. Managing Time = Schedule

2. Baseline = Target

3. Managing Costs = Budget

4. Managing Quality = Construction Documents

A high level of control is ideal for every construction project. In other words, the more control the better! T or F

False

Project control is a one-time event in which project managers identify a goal, measure results, analyze, make adjustments, and report results to management. T or F

False

Project control begins with the identification of the owner’s objectives and ends when those objectives have been met. T or F

True

Lean Builder Ch.7

Percent Plan Complete - measuring the commitments that were met and understanding the root cause for commitments that were not met.

• Root Causes for incompletion: weather, manpower, machinery, design, make-ready needs, materials, poor scheduling

• Short term planning system

• tracks the percentage of tasks completed each week

• keeps crews accountable and helps uncover workflow issues early

  • PCC % = (# of tasks completed)/total tasks * 100

• Pros: reduce waste and rework, boosts team accountability

• Cons: can be skewed, doesnt show difficulty

• EX. Axe cutting trees

What is a Schedule of Values (SOV)?

A detailed summary of every function on a construction project used to track budget, progress, and work completion.

What are three key benefits of using a Schedule of Values?

It brings structure and stability, provides role clarity, and fosters an environment of trust.

How does a Schedule of Values promote seamless financials?

It agreements on costs, due dates, and payments upfront, preventing payment delays and bottlenecks.

What basic information is required to set up a Schedule of Values?

Project name, project number, contractor name, point of contact, addresses, architect information.

What two AIA documents are commonly used with a Schedule of Values?

AIA Document A201-2017 and AIA Document G703-1992.

Why is role clarity important in construction projects?

It explains who does what and when, helping operations run smoothly and avoiding confusion.

What is the purpose of a daily log in construction?

To record important daily project details, support communication, improve workflow, and provide accountability.

Who should contribute to the daily log?

Everyone on the job—project managers, trade partners, site supervisors, and crew members.

List four key items included in a daily log.

Project basics, weather conditions, personnel on-site, deliveries, visitors, issues, and photographs.

How does a daily log improve accountability?

Trade partners record their own work, allowing better tracking of tasks and responsibilities.

Why are photos important in a daily log?

They provide visual documentation of project progress, site conditions, and potential issues.

Name two project management software that can include daily logs.

BuilderTrend, JobTread (others: Co-Construct, BuildXact).

What is a Construction Change Directive (CCD)?

A temporary directive issued by the owner to immediately implement a change when time is critical.

What is the main difference between a CCD and a Change Order?

CCDs are temporary and allow work to proceed immediately; Change Orders are formal, negotiated, and legally modify the contract.

When are CCDs typically used?

When urgent changes are needed and there is no time for formal negotiation.

What do Change Orders legally modify?

The original contract, including scope, cost, schedule, and other terms.

What do CCDs NOT determine immediately?

The final cost and schedule impact.

Which process involves full review, negotiation, and mutual agreement?

Change Orders.

What is the 80/20 rule as applied to construction businesses?

20% of effort (communication) produces 80% of results.

What is the “20%” effort that brings the most results in construction business?

Effective communication—especially prompt responses.

How did the author separate himself from 80% of competitors?

By returning client calls within 24 hours.

How does good communication impact client relationships?

It builds trust, prevents confusion, and increases referrals and future work.

Why is accessibility important in client-contractor partnerships?

It reassures clients you’re handling issues, gives updates, and builds confidence.

What should contractors establish about communication boundaries?

A policy for after-hours and weekend calls written into the contract.

What three tools help reduce chaos and improve organization on construction projects?

1) Schedule of Values
2) Daily Logs
3) Clear Communication

Which tool helps track budget and payments?

Schedule of Values.

Which tool captures daily jobsite activity and improves future workflows?

Daily Log.

Which process lets work proceed immediately during urgent changes?

Construction Change Directive (CCD).

Which process formally and legally modifies the contract after mutual agreement?

Change Order.

What is the most important soft skill for success in construction project management?

Communication.

Project Closeout and Turnover Overview

• Can be more complex than it appears

• Often occurs while owner begins using the facility

• Employees may start moving in during closeout

• Owner’s rep is under pressure to ensure facility functions as promised

• Punch list items often cause tension and frustration

• Contractors want to move to next project, trade partners can be slow, owner is eager to fully take over

Purpose of the Punch List Procedure

• Outlines the steps needed to secure conditional occupancy and/or final acceptance

• Distinguishes roles of code professionals vs. design professionals

• Software tools like ProCore are useful for managing punch lists

Conditional Occupancy Definition

• Issued when project is substantially complete

• Punch list has been created

• No fire or life safety issues remain

Certificate of Occupancy (CO) Definition

Issued when:

• Punch list items are 100% complete

• All Conditional Occupancy items are addressed

• All inspections are complete

• Project is officially accepted

Managing the Punch List Tools

• Old school: Paper, manual tracking

• Modern: Software/apps like ProCore

Certificate of Substantial Completion — What It Is

• Issued by design professional (architect)

• Confirms:

  • Completion of all life safety systems

  • Weather-tight building envelope

  • Adequate protection for occupants and equipment

• Architect certifies date to owner

• Starts contract provisions like warranty, guarantees, liabilities

What Is Project Commissioning?

• Ensures building systems are installed per construction documents

• Verifies systems function as intended

• Usually done by independent third-party agents

• Traditionally covers HVAC, electrical, and fire protection

• Now includes energy and sustainability (LEED certification)

• Ideally begins in design phase, continues through construction, and is verified at closeout phase

Closing Out the Project Successfully — Tips

• Prepare early in the project

• Use a Closeout Checklist

• Include closeout tasks in project schedule

• Organize deliverables ahead of time

Closeout Plan — Office Tasks

• Review contract for deliverables

• Issue Certificate of Completion to owner

• Prepare punch list with owner/owner’s rep

• Issue Certificate of Occupancy (CO)

• Request final payment

• Submit As-Built drawings to owner

• Prepare and transmit O&M (Operations & Maintenance) manuals

• Archive project records

• Request Release of Retainage

Punch List

A list of discrepancies or incomplete items that must be finalized before final acceptance or occupancy is granted.

Certificate of Occupancy (CO)

Legal document confirming all punch list items and inspections are completed, and the facility is safe and approved for full use.

Conditional Certificate of Occupancy

Allows partial use of the facility while minor, non-safety punch list items are being completed.

Certificate of Substantial Completion

Issued by architect; establishes the date when facility is safe, weather-tight, and suitable for limited use; starts contract provisions such as warranties and liabilities.

As-Built Drawings

Final drawings showing all modifications made during construction; reflect the actual completed structure vs. original plans.

Release of Retainage

Final payment held until project is fully complete, including punch list and documentation requirements.

Commissioning

Process to verify all systems (HVAC, electrical, fire, sustainability) are installed and operating as intended.

Closeout Plan

Organized plan to manage final project stages, including punch list, documents, payments, inspections, turnover, manuals, and records.

CONSTRUCTION LAW — Basics

• Government creates statutes and regulations (federal, state, local).

• Courts interpret and enforce laws, apply common law to disputes.

• Project participants create their own rules through contracts.

What is a Contract?

• Agreement that sets rules between two or more parties.

• Usually in writing, but can be verbal.

• All contracts follow legal principles.

Required Elements of a Legal Contract

• Offer: “I will do X for you” – does not need to be written or labeled as an offer.

• Acceptance: Can be verbal, written, or implied by actions.

• Consideration: Something of value exchanged (usually money).

• Capacity: Legal age, sound mind, and authorized corporate signers.

Breach of Contract

• Law aims to make the injured party whole.

• Remedies:

  • Monetary damages

  • Equitable remedies (specific performance, injunctions)

Types of Damages

• Direct: Cost to repair actual building damages.

• Consequential: Indirect damages – lost profits, opportunities, or reputation.

• Liquidated: Pre-agreed daily damages for contractor delays.

• Punitive: Penalties for willful, malicious, or reckless actions.

Dispute Resolution Methods

• Mediation: Neutral mediator; non-binding; helps negotiate.

• Arbitration: Arbitrator’s decision is binding, like court judgment.

• Partnering: Collaborative culture to prevent disputes early.

• Litigation: Last resort; expensive, time-consuming, rarely clear winners.

Consequences of Accidents

• Death or injury

• Lower morale, productivity

• Higher EMR & insurance premiums

• Negative publicity

• Loss of competitive edge

• OSHA fines/penalties

Costs of Accidents

• Direct costs: Medical transport, hospital, medication, equipment.

• Indirect costs: Lost productivity, morale, training, insurance rates, legal fees, negative publicity, OSHA fines.

Laceration Example (OSHA Estimator, 3% profit margin)

• Direct costs: $21,872

• Indirect costs: $24,059

• Total combined costs: $45,931

Experience Modification Rating (EMR)

• Used to price workers’ compensation insurance.

• Like a credit score for safety history.

• Average EMR = 1.0

• Below 1.0 = safer than average; Above 1.0 = higher risk and cost

OSHA Reporting Requirements

• Must report: fatality, hospitalization, amputation, or eye loss.

• Fatality: Report within 8 hours

• Hospitalization/amputation/eye loss: Report within 24 hours

Root Cause Investigation

• Root cause = underlying reason accident occurred.

• Goes beyond surface-level issues.

• Requires asking “why?” repeatedly.

• Goal: discover root cause, not assign blame.

OSHA Inspection Process

• Opening conference → Walkthrough → Closing conference

• Workers can speak privately with inspector.

• Results may take up to six months and could result in citations.

• Employer should respond in writing and accompany inspector.

Safety Summary

• Safety is an attitude demonstrated through training, procedures, housekeeping, toolbox talks, PPE, and management support.

• Construction is dangerous, but many risks can be eliminated if safety is part of production planning.

What is Project Administration?

• Communicating, documenting, and permanently recording actions during construction.

• When done correctly, it tells the story of the project.

Why It Matters

• Protects relationships via communication.

• Creates legal records, protects all parties.

• Serves owner after construction ends.

• Entry-level jobs often involve project administration.

Common Tools (Forms & Documentation)

• Notice to Proceed
• Meeting Minutes
• RFIs
• Daily Reports
• Progress Photos
• Monthly Reports
• Submittals
• Application for Payment
• Change Orders
• Inspection & Test Results

Notice to Proceed

• First formal contract communication.

• Includes:

  • Acceptance of bid

  • Start and completion dates

Meeting Minutes

Should include:
✔ Project name & number
✔ Date
✔ People present
✔ Action items & issues discussed

Submittals Include:

• Shop drawings
• Product data
• Samples
• Testing reports
• O&M manuals
• Warranty info

Contractor must review first before sending to designer.

Shop Drawings Process

Vendor → Contractor → Designer → Fabrication
(Materials usually not ordered until approval)

Tracking Shop Drawings

The responsible person tracks:
✔ When received from trade partner
✔ Review time in contractor’s office
✔ Review time in designer’s office
✔ Edits and comments until approval

RFIs (Request for Information)

• Used to clarify drawings/specs

• Sequentially numbered

• Logged by both contractor and designer

• Can lead to change orders or disputes

• Best RFIs begin with: "As we discussed…" or “Per our conversation…”

Daily Reports Include

• Weather
• Work activities
• Trade partners on site
• Deliveries
• Equipment used
• Visitors
• Photos/video

Progress Photos

• Show construction methods, progress, and compliance

• Used for RFIs, disputes, punch lists

Monthly Reports Include

• Progress summary
• Trade partners list
• Cash flow (actual/projected)
• Updated schedule & critical path
• Safety report
• Change order log
• Shop drawing status

Change Orders

• Change to cost, scope, or time after contract signing

• Approved change orders become part of contract

• Common causes:

  • Owner change requests

  • Material changes

  • Unforeseen site issues

  • Hazardous materials

  • Errors/omissions in drawings

Not valid if contractor independently chooses to change something.

Construction Change Directive (CCD)

• Used when urgent change is needed

• Authorizes work before formal change order is finalized

• Temporary instructions

Application for Payment

• Often uses AIA Form G702

• Must include:
  ✔ Schedule of values
  ✔ Lien waivers
  ✔ Retainage info
  ✔ Authenticated signatures (notarized)
  ✔ Approved changes

Schedule of Values

• Tabular list of work elements and their monetary value

• Used to approve progress payments

• Helps organize work and expedite payments

Liens & Lien Waivers

• Mechanic’s Lien: Legal claim against property for unpaid labor/materials

• Can be filed by trade partners, suppliers, equipment lessors, designers

• Lien Waiver: Signed proof of payment; prevents future lien claims

Final Payment Requirements

• Lien waivers
• As-built drawings
• Punch list completion
• O&M manuals
• Commissioning and testing documents

What is Project Control?

Project control is the process of tracking a project's cost, time, and quality and comparing them to the baseline (original budget, schedule, and construction documents).

Why Project Control Matters

• Helps measure whether past decisions were successful.

• Allows early course corrections.

• Builds a historical database for future projects.

• Leads to success: finishing on time and on or under budget.

Direct Costs

Costs directly tied to construction (labor, materials, equipment).

Indirect Costs

Office and jobsite overhead (trailers, utilities, insurance, security, admin).

Pareto’s Law (80/20 Rule)

80% of impact comes from 20% of elements — focus on the most important items.

Crashing

Speeding up activities to shorten the project schedule (usually increases direct costs).

Preparing a Project for Control

• Break the job into trackable parts.

• Establish a baseline (cost baseline = estimate; time baseline = schedule).

• Identify major cost drivers (Pareto’s Law) for close monitoring.

Standard/Target vs. Actuals

• Control compares actual results to the baseline for cost, time, and quality.

• Actual data comes from timesheets, invoices, receipts, equipment logs.

• Good reports show variances, or differences between actual and baseline.

Basic Control Loop

1. Set the initial plan (budget, schedule, documents).

2. Start field work.

3. Collect actual data from the field.

4. Analyze the data (cost engineering).

5. Make recommendations and adjust if needed.

When Actuals Don’t Match the Target — Ask Why?

• Poor performance?

• Reporting error?

• Site conditions?

• Equipment problems?

• Unrealistic standards?

How Much Control Is Enough?

• More control = more cost.

• High control is useful on technical or fast-paced projects.

• Too much control can hurt productivity and morale.

• Goal: Find the balance that gives useful feedback without overburdening the team.

Minimum Cost Scheduling

• Goal: Find the most efficient project duration (time vs. cost balance).

• Crashing speeds up activities (raises direct costs), but can save money overall by:

  • Reducing indirect costs (overhead).

  • Earning bonuses for early completion.

Managing Project Finances

Contractor needs to plan cash flow so they can pay labor, materials, and subcontractors. If there's a cash shortage, they might:

• Negotiate lower or earlier retainage.

• Front-load payment schedule (with owner approval).

• Get extended terms from suppliers.

• Use bank credit or lines of credit.

Measuring Progress

• Units Completed

  • Ex. 1,500 SF installed out of 2,000 SF = 75% complete

• Incremental Milestones

  • Ex. Crane install: delivery (20%), setup (35%), alignment (50%), testing (90%), acceptance (100%)

Trending, Forecasting, Reporting

• Trending - Looking at past performance to see patterns.

• Forecasting - Predicting final cost and completion date using current data

• Reporting - Collecting and presenting cost, time, and quality performance, including trends and forecasts.