Zagreb Construction - Business Consulting Project
|Project Client:||Zagreb Construction
|Project Description:||Construction Management Process
|Students:||Rob Thom, Mathieu Haack
|BCIT Program:||Business Operations Management
The purpose of this project was to analyze symptoms affecting the Construction Management Process at Zagreb Construction Inc. and provide recommendations that would improve cross-functional communication, limited use of project schedules and reduce cost overruns and project delays.
The BCIT Project Team used various tools to conduct research on the symptoms affecting Zagreb Construction Inc. The team developed surveys to interview Superintendents on-site and Project Managers in the office to develop a baseline for process activities and to validate the symptoms. The Project team was able to develop a comprehensive process map and cause and effect diagrams to determine root causes. A full-scale financial audit on six previous projects was conducted to provide support for their findings and solutions were developed and weighed against two separate matrices (criteria of evaluation and symptom reduction) to determine the most suitable plan for implementation.
Based on the research conducted by the BCIT Project Team, the following findings were noted:
- Project cost overruns were divided into six categories for analysis. Of those six categories, errors performing estimates and not sourcing committed prices from sub-contractors, prior to signing a contract with their client, accounted for 87% of the negative variance.
- Over 80% of estimated project activities had a total variance (positive or negative) in excess of 10%.
- Project schedules are primarily used as a planning tool for clients and are rarely updated and provided to superintendents on-site.
- Project Managers and Superintendents are not recording project issues to track re-occurrence or remediation costs.
- Developed a Project Issues Log, centrally located on the Zagreb website, to allow both Superintendents and Project Managers the ability to log on and update project issues as they occur. This will bridge communication between on-site and head office activities and store relevant information to improve accuracy when estimating future projects.
- Developed a Sub-Contractor Database to improve efficiency when sourcing potential sub trades. This will allow Project Managers to locate contractors in a standardized format and apply a ranking system as to who are the preferred contractors, for each type of trade.
- Developed a standardized Project Estimate Sheet to improve efficiency and accuracy when completing estimates. This sheet includes all line activities to be completed on a project with pre-determined formulas and guidelines for completion. It is locked and secured to reduce errors and simplify the process.
- Developed a standardized Project Schedule to improve efficiency and accuracy when scheduling project activities. It includes all possible project activities, with standard completion dates and activity codes, to match accounting records. The schedule allows for filtering activities and the ability to remove line items that aren’t required on a specific project.