A study revealed that 53% of decision-makers consider enterprise resource planning an investment priority.

Like every other industry, engineering firms require a systematic resource planning process. Engineering projects demand niche skill sets and need heavy and expensive equipment during various stages of the project lifecycle. Resource managers and project managers strive from the beginning to identify the appropriate resources, understand their availability, and fulfill these demands.

If they fail to form a full-proof resource plan, they may encounter bottlenecks in the future, bringing the projects to a halt.

Thus, engineering resource planning is integral to successful project delivery within time and budget.

This article emphasizes the significance of resource planning in engineering projects and some strategic tips to get the process right.

Let’s get started,

What is resource planning in engineering projects, and why is it needed?

Supposedly, you are building an automobile with the help of automobile engineers, mechanical engineers, some heavy manufacturing equipment, and so on. When the project reaches a crucial stage, you realize you don’t have the equipment to proceed to the next step.

A challenge like this can catastrophically hamper the entire project’s progress, as acquiring new equipment at such short notice can easily blow up the budget. Moreover, since this falls in the project’s critical path, it will also adversely affect the billable utilization of other resources. However, had you foreseen the resource requirements and planned for them in advance, your project’s course would have continued seamlessly.

Engineering resource planning is a process of forecasting, allocating, and utilizing resources for engineering projects and operations.

When managers follow a definite system and equip modern, intuitive resource planning tools to fulfill the project demand even before the project initiates, it keeps these challenges at bay, leading to a successful outcome. In addition, resource planning helps control project financials and timelines and strengthens data-driven decision-making.

Since we have covered the significance of resource planning in project management, let’s learn about the types of resources required in engineering projects.

The required resources in engineering projects

Unlike other industries, projects that fall under the engineering domain require diverse skill sets and resources. Let us understand these requirements in detail:

Human resources

The employees are the most critical asset of any project. Their talent, skills, and capabilities allow the execution of assignments with the best quality and within the deadline. Engineering projects specifically require a wide array of personnel to work on different types of tasks. Here are some of the core competencies vital for an engineering firm:

• Mechanical engineers

Projects encapsulating machine expertise or manufactured technologies need mechanical engineers.

• Automobile engineers

As the name suggests, automobile engineers work in the automobile industry and work on vehicle design and production.

• Electrical engineers

Any project with specific tasks pertaining to power system engineering, instrumentation, signal processing, etc., demands electrical engineers.

• Software engineers

Software engineers are needed for tasks like web designing, software, app development, etc.

• Analysts

With the advent of AI and Machine learning, the demand for analysts has escalated. Any engineering industry that requires the interpretation of data to make strategic decisions needs an analyst.

• Construction workers

Engineering projects involve constructing, installing, and assembling several structures, systems, and components, so they need construction workers with the necessary skills to execute these tasks efficiently.

Equipment

Engineering projects require an array of equipment, machines, and tools to build a finished product. For example, heavy machinery is needed for the automobile manufacturing unit. These tools are expensive, and thus, some firms rent them from other companies and integrate these costs under project estimates. As a result, managers need to carefully plan the projects and determine the equipment required well in advance to prevent last-minute hiccups.

Materials

Materials are the building blocks of the final product and part of the finished goods. For example, construction materials like brick, cement, etc., are the necessary blocks to form the entire tower or database to develop a web application are the materials. Therefore, the onus is on managers to enlist every constituent required and accumulate them before the project’s onset.

Miscellaneous

Other than the above-mentioned primary resources, engineering projects require additional resources like:

• Organizational resources in terms of financials
• Contractors and vendors to procure the unavailable demand from external sources
• Extrinsic software for the overall management of projects
• Facilities like office space or warehouse, etc., to carry out the project tasks.

What are the key features of the engineering resource planning template?

Advanced resource planning software enables organizations to manage their workforce, minimize risks, and steer the engineering project to success. Listed below are some of the key features of resource planning systems in engineering projects:

Multi-dimensional resource planner

With the help of a resource planner, managers can effectively allocate resources like engineers, equipment, materials, etc., to different tasks and activities across the organization. Additionally, it will enable managers to identify and assign the best-fit resources to the projects.

It also helps track allocations across multiple dimensions such as team, department, location, etc. Furthermore, managers can capture the engineer’s time off and vacations, which helps better resource planning for current and future projects.

Forecasting and capacity planning

Forecasting and capacity planning enable managers to predict pipeline project demand and assess the gaps between resource capacity and demand. If any gaps are identified, the resource planner helps managers take corrective measures like training, hiring, adjusting project timelines, etc., ahead of time.

In addition, managers can foresee project vacancies and minimize the bench size by proactively assigning resources to suitable vacancies. Furthermore, forecasting helps managers track critical financial indicators like cost, revenue, and margins and take corrective measures to control project costs.

Resource utilization

The resource planning system enables firms to forecast the usage of engineering resources to optimize billable and strategic utilization. In addition, it allows managers to mobilize engineers and workers from non-billable tasks to billable and strategic ones.

Moreover, a resource planner helps identify and proactively mitigate under/over-utilization of resources. Moreover, real-time visibility into resource utilization will allow managers to optimize resource allocation, ensure even work distribution, and reduce risks associated with resource constraints.

Reporting and analytics

The resource planner offers real-time BI reports and analytics that provides insights into important engineering resource metrics like project performance, productivity, utilization, etc. The BI capabilities enable managers to generate customized reports, configurable dashboards, etc., which helps in data-driven decision-making.

Furthermore, it helps filter out information per the stakeholders’ requirements. In addition, it provides role-based access that helps to avoid information overload.

What-if-analysis & automation

The resource planning system helps managers to create and simulate various engineering project scenarios with what-if-analysis. It enables them to arrive at the best possible resource plan considering different resource-related parameters and then apply it to the actual schedule. Furthermore, the resource planning software streamlines the resource requesting process from requesting approval to allocating the resources.

These are some of the common features found in the template. Next, let’s learn about the various benefits of engineering resource planning.

What are the advantages of engineering resource planning?

For organizations to achieve their goals and ensure efficient usage of their engineering resources, it is vital to have an effective resource plan. Here are some of the critical benefits resource planning offers for engineering projects:

Minimizes engineering project resources expenses

Resource planning enables managers to allocate the right engineers and professionals to suitable projects that ensure the timely delivery of projects within the budget. In addition, it will control resource costs by eliminating the deployment of over/ under-skilled engineers.

In addition, resource planning helps identify potential conflicts between resource requirements in various engineering projects. Resolving these conflicts proactively can minimize the last-minute firefighting of resources, which can be expensive.

Improves planning and allocation of engineering resources

Resource planning facilitates the competent allocation of engineering professionals based on their skills, experience, qualification, cost, etc. Furthermore, firms can leverage cost-effective global resources and control project costs.

Assigning resources to tasks that align with their skills and expertise will enhance the quality of work, reduce the likelihood of errors, and expedite project completion. Resource planning involves a systematic approach to assessing the project requirements, resource availability, and skill sets that ensure the allocation of resources based on project priorities and objectives.

Better planning of pipeline project demand

With resource planning, managers can forecast and effectively plan pipeline project resource requirements. Furthermore, with capacity planning, they can identify shortages/ excess of the workforce and take proactive measures like training, hiring, adjusting project timelines, etc., to bridge the gap. This will eliminate the last-minute hiring activities that can cause cost escalation and compromise the quality.

Resource planning enables managers to evaluate resource skills, capacity, and availability. By assessing the availability of resources, organizations can plan and allocate resources effectively to meet the demands of pipeline projects without overloading or underutilizing them.

Enhances workforce utilization levels

With resource planning, managers can foresee the utilization of the engineers working within the project. This helps to effectively mobilize resources from non-billable to billable/strategic tasks, thereby increasing revenue. Furthermore, tracking and monitoring utilization levels helps eliminate over/ underutilization of engineering resources.

By considering the capacity and availability of each professional, resource planning ensures even distribution of workload, thus eliminating burnout and maximizing their utilization. Regularly tracking and monitoring the utilization levels helps address resource bottlenecks, reallocate resources as required, and make timely adjustments to enhance workforce utilization.

Enables successful project delivery

As the demand for resources in engineering projects is volatile, resource planning identifies and fulfills the requirements accordingly. Moreover, it helps maintain continuity by restricting resource movements within the projects. This ensures the timely delivery of projects within the stipulated budget.

Furthermore, by clearly forecasting resource needs, resource planning helps in the timely procuring and allocation of resources. This ensures that the project has the necessary workforce to move forward smoothly. In addition, efficient resource planning processes help identify potential resource risks and develop mitigation strategies. Addressing these risks ensures that the projects stay on track and meet their objectives.

Knowing the benefits of resource planning in engineering projects, let’s understand the techniques of engineering resource planning.

What are the steps of efficient engineering resource planning?

As mentioned above, resource planning in engineering projects goes beyond managing the workforce; it is a conglomerate of human and non-human resources. As a result, it escalates the complexities of the process, and managers must formulate a solid resource planning strategy.

Here are the steps you can follow to achieve the same:

Document the engineering project resource plan

Meticulous, detailed resource planning is the stepping stone to a successful project. The same applies to engineering projects. Even more so because it entails tasks from multiple dimensions and domains and has a diverse set of resource demands., therefore managers should first document a comprehensive project resource plan. This plan constitutes all the project phases (from initiation to execution), tasks under each phase, and the resource requirement (along with its cost and timeline) against each task.

Consider an example of an automobile project to build a hybrid drone. Its project resource plan will encompass the project tasks like forming a prototype that will include automobile and software engineers with hands-on experience in relevant software. The next task in the execution phase can be assembling the right parts, which is the job of mechanical and automobile engineers, and so on. Along with the workforce demand, equipment, materials, and other resources are also mentioned, including their quantity and timeline. Formulating these details in advance will provide an overview of resource requirements and other attributes, giving enough leeway to resource managers to fulfill the demand.

Find the right engineer for each project task

Now that the project demands are in place and in order, the next step is to find the right resource for the right task. Managers must note resources’ roles, skills, level of expertise, experience, location, cost, and so on while identifying them. This process is tedious when the resource profiles are logged in siloed spreadsheets. Thus, firms must invest in a sophisticated resource planning solution to filter their search and get a centralized view of enterprise-wide resources.

In engineering projects, dedicated engineering resource management software comes handy and is tailored to suit the same industry’s needs.

In addition to finding the right employee, managers must also find the right equipment and materials in the correct quantity in advance. It will give a clear picture of the deviation between the existing supply and demand and allow them to take adequate resourcing treatment in time.

Bridge the engineering skills gap in advance

One of the essential benefits of proactive resource planning is that managers get enough lead time to bridge the skills gap. It eliminates potential project bottlenecks and promotes seamless execution. The next critical step after identifying the resource pool is implementing suitable measures to align the resource supply and demand.

With the resource plan, we know building a drone requires mechanical and automobile engineers with core competencies in operating specific software, heavy equipment, etc. Suppose you have a shortage of 4 engineers and one piece of expensive equipment which cannot be bought due to budget constraints. With enough time in hand, you can hire the resources with niche skills or upskill the existing resource to reduce the project costs. To ensure that the equipment is available during project execution, you can find firms that have it and take it on a lease, keeping in mind the project budget.

Foresee the utilization and availability of equipment and workforce

It’s not always necessary that the resources you found from the internal channel are available to take up the job. They might be scheduled for a high-priority project or applied for a planned leave. It is, therefore, essential to foresee resource (human and non-human) availability and utilization. If critical resources aren’t available during the project timeline, you can take corrective measures to ensure the project position is filled.

Let’s say the engineer responsible for designing the prototype isn’t available or utilized to their total capacity. What would you do? One of the solutions is shadowing, in which a lesser-experienced resource learns from the required engineer. And once the learning is enough to keep the ongoing project on track, you can out-rotate the prototype without hampering the other project’s progress and backfill the position with the resource who shadowed them. Another solution is training the benched resources who have a similar background.

Allocate competent engineers with the right domain expertise to the tasks

After overcoming the resource constraints, it’s time to define the resource schedules. Referring to the project resource plan, managers can see each task’s timeline, and by keeping a buffer of 10%, they can book the resources accordingly. Some tasks that are not interdependent and can happen in parallel can be scheduled on the same timeline. In this case, one resource with appropriate competencies can be booked for multiple tasks eliminating the need to procure more employees.

However, if the tasks are interdependent, ascertain that the resource schedule is aligned with the next task to prevent future discrepancies. Similar to human resources, you should schedule the equipment and materials (or assets) after procuring them from vendors. To ensure that no one else books them during the same course, you can use an equipment scheduling solution to provide real-time visibility to the other managers and avoid conflict.

Implement the right optimization technique to balance the workload of critical engineers

Engineering projects are agile. Not every code or circuit works as planned. Maybe the circuitry you designed for the drone is disrupting the electronic speed controller from doing its job. So, one needs to revisit the prototype and make it more efficient. These processes are time-consuming and may overload the employees, posing a risk of burnout. However, most of the projects are time-sensitive, and delays can have a ripple effect causing the project to fail.

To ensure that it does not happen, managers can procure an additional resource to reduce the workload on one and still get the job done on time. It is known as resource smoothing, one way to optimize the resource schedule. When projects are not time-sensitive, managers can reduce the workload by extending the deadline. It is known as resource-leveling. These resource optimization techniques keep a tab on the resource health index and allow you to ensure that no resource is overutilized.

Given engineering projects’ ad hoc changes and agility, resource planning is always a continuous process. Let’s discuss how one can improve their resource planning strategy,

How can you improve your engineering resource planning process?

Often your estimates and actual attributes are misaligned. It means there is a need to improve the resource planning process. Either the forecasted values are inaccurate, or you haven’t gauged the criticality of the project tasks. To rectify these errors, you can adopt a modern resource planner. It provides robust, data-driven, accurate insights that allow you to plan with precision. You will get precise forecasts vs. actual reports for resource utilization, costs, etc., in real-time, which will give you enough time to do the damage control.

Moreover, you can form a ‘plan before the plan,’ i.e., simulate multiple scenarios by varying resource metrics to get the best-fit resource plan. It is known as the ‘what-if’ analysis. In addition, since experience is the best teacher, managers should learn from similar projects executed previously and note the mistakes made. Learning from history is the best way to improvise the future.

These simple steps and the right resource management tools will enhance the efficiency of the organization’s project resource planning process.

Here is the wrap-up with a small listicle of proven tips to get your engineering projects to the finish line,

Takeaway- Proven tips

• Deploy the right engineering resource management and equipment scheduling tool to suit your business needs.
• Form a work breakdown structure (WBS) or a project resource plan to list the resource requirement accurately.
• Allocate cost-effective global resources to keep the project costs in check.
• Consult multiple vendors before leasing equipment to get the best deal and control the financials before taking equipment on lease to get the best deal and control the financials.
• Review resources’ progress using the resource planning l and forecast vs. actual report…
• Take corrective actions ahead of time to prevent the cascading effect on the project’s progress.
• Implement the right optimization technique considering the project timeline and resource availability to avoid employee burnout.
• Resource planning is a work in progress. Revisit the resource plan regularly to get the possible outcome and maintain the resource health index.

Glossary

The SAVIOM Solution

SAVIOM is the market leader in providing an Enterprise Resource Capacity Planning solution. With over 20 years of experience leading the market, Saviom is actively used by over 15 highly esteemed global companies worldwide. The tools within the suite include project portfolio management, professional service automation, and workforce planning software. It also entails supporting solutions to schedule equipment and assets seamlessly. Re-engineer operational efficiency with a system shaped around your business!

One must use the allocated project resources efficiently and effectively in such a situation. Therefore, the workforce’s talent and motivation will finally be the guiding factor for the successful delivery of any project. Thus, resource management plays a significant role in the construction industry. Simultaneously, rising insurance costs and the increasing difficulty of recruiting skilled labor have challenged construction project managers’ jobs.

This article aims to explain the challenges of construction resource management and provide a strategic approach to making it more efficient.

But before diving deep, let’s first understand the definition.

What is the importance of resource management in the construction industry?

Construction resource management is the process of planning, allocating, and managing resources, including personnel, equipment, materials, and finances, to complete construction projects successfully.

It helps to precisely accomplish every task and meet the project objectives within time. It allows managers to deliver projects successfully by fulfilling project resource demands on time. Effective resource management also maximizes productive utilization.

With this approach, construction firms can also avoid mistakes such as hiring too many workers, project delays due to late delivery of supplies, etc. Moreover, construction resource management helps in effective communication by ensuring that all the stakeholders are on the same page and can work together to achieve the project goals.

Let’s delve deep and find out the essential construction project management resources.

Necessary resources in the construction industry

The construction business has specific requirements and challenges similar to any other industry. Here is a rundown of all the essential types of resources in project management of the construction industry.

• Human resources: They are the most critical part of the construction management resource pool. It is the people behind the project that make it a reality. The following are the vital roles required in the construction industry.
• Estimator: The estimator is responsible for estimating the costs, materials, and labor needed to complete a project.
• Architect: The architect’s job is to envision the client’s needs and develop a creative solution in a blueprint.
• Supervisor: The supervisor is an intermediary between the field workers and the management office. They ensure effective communication between the two parties.
• Quantity Surveyor: The quantity surveyor provides the client with advice on building costs and contractual matters throughout the building process and acts as a consultant to the architect.
• Engineer: Engineers are vital on a job site and may specialize in building, electrical, mechanical, highway, etc. For example, civil engineers use computer software technology to create project plans. Electrical engineers monitor the power requirements in the project and ensure all hazards are negated.
• Construction Worker: Construction workers are the driving force of every project. Once the project is planned, the workers get their hands dirty to make it a reality.
• Equipment: Construction projects require heavy equipment. The equipment selection depends on the project’s time and cost. Some heavy equipment used in construction projects are bulldozers, excavators, cranes, trenchers, etc.
• Materials: Materials such as wood, cement, metals, bricks, concrete, clay, etc., are the most common building material used in construction. Selection criteria such as cost-effectiveness and quality play a significant role.
• Facilities: Facilities not only improve workers’ welfare but also enhance efficiency. As per the CDM regulations, all construction sites must include the following facilities:
• Living accommodations for the workers.
• Sanitary and toilet facilities.
• Drinking water facilities.
• Changing rooms and lockers.
• Canteen.

Now that we know the resources required in construction projects, let’s understand the benefits of effective construction resource management.

Benefits of an effective construction resource management

Construction resource management provides an array of benefits to construction project managers. Here is a list of some of them:

Gain visibility of all construction management resources

Often, you won’t have the required resources at the primary location. Hence, you may have to look at cost-effective resources from different areas within the business. But without enterprise-wide visibility finding the right resources with the desired skills and cost becomes challenging.

An efficient construction resource management software provides a centralized view of skills, qualifications, experience, cost rate, and other vital information. You do not need to reconcile multiple spreadsheets to identify and allocate appropriate construction resources for the project.

For example, if a project manager needs a construction worker for a project, they can quickly see an available person’s schedule and identify the resource using advanced filtering capability. Then, the specified person can be assigned using a simple drag-and-drop facility.

Reduce construction project costs

Construction projects are subject to numerous constraints, such as resourcing costs, price volatility, the uncertain nature of the projects, and more. Due to these limitations, construction projects are vulnerable to budget and timeline overruns.

Construction resource management software monitors critical project financial indicators such as costs, revenue, profit margins, and overheads. Tracking project financials helps to avoid budget overruns. In addition, project managers can control costs by periodically tracking and comparing forecast vs. actual spending. If there is a variance, necessary corrective measures can mitigate project risks ahead of time.

It also helps monitor shared construction resources working on multiple projects. Accordingly, project managers can adjust the resource mix to control project resourcing costs in advance.

Improve productivity of construction resources

Construction resource management ensures that appropriate construction resources are deployed to suitable projects at the right time and cost. This approach maximizes workforce efficiency and improves productivity.

An effective equipment scheduling tool can help managers forecast the effective utilization of equipment and other resources ahead of time. Accordingly, they can mobilize resources from non-billable to billable and strategic work periodically and increase efficiency.

Efficient and high-level resource planning enhances the workforce’s productivity by scheduling them to billable work. For instance, a resource management solution helps allocate competent resources to tasks within seconds. Additionally, it allows the operations teams to reduce errors and perform tasks more inclined toward achieving the business goals.

Helps plan construction pipeline project activities

Lack of visibility of pipeline projects leads to scrambling for competent resources at the eleventh hour, resulting in unnecessary hiring/firing costs and compromised quality.

For example, a mall construction is scheduled to start 2-3 months down the line and needs a substantial number of resources. You suddenly realize that your project is not suitably staffed at the last minute, and you need to hire some additional ones to kickstart the project. Without sufficient lead time, you cannot onboard them immediately, causing further delays and budget overruns.

What could you have done to avoid this in the first place?

A robust construction resource management software can help avoid this last-minute scuffle and allow managers to create a skilled construction resource pool ahead of time. In addition, it provides intuitive forecasting that predicts future project demand well in advance.

Resource capacity planning enables managers to plan the future/pipeline construction project requirements and meet the deliverables. Moreover, it helps managers compare the resource capacity against the demand to identify excesses and shortfalls. Accordingly, managers can apply appropriate resourcing treatments such as training, adjusting project timelines, hiring, or selling excess capacity to bridge the gap.

Facilitate construction team collaboration

Team collaboration is necessary for everyone to know the project’s responsibilities. Since tasks are interdependent in a construction project, team members must always remain on the same page. For instance, an engineer must rely on the architect for the project design. Likewise, supervisors must constantly contact their workers and review their progress.

The project resource management processes enhance collaboration, supporting healthy relations between the whole team. Real-time collaboration streamlines effective communication between various construction project team members and ensures everyone is on the same page.

Moreover, problem-solving becomes easy with effective team collaboration. One gets a different perspective on the same issue making it easy to deduce a solution. It also fosters trust and enhances morale in the organization, building a positive environment and strengthening the team.

Challenges associated with construction resource management and how to mitigate them

Numerous roadblocks in construction resource management can cause missed deadlines and cost overruns. Here are some challenges and ways how to manage construction projects effectively.

Shortage of skilled labor

Skilled labor plays a vital role in the success of every construction project. But, with the increasing demand for construction services, there is a shortage of skilled labor.

Numerous factors influence the shortage of skilled labor. Some of which are:

• Workers who lost their construction jobs moved to other industries.
• Professional construction resources are retiring.
• Construction businesses haven’t innovated their hiring process with technology.

A limited workforce creates additional strain for construction companies due to the vast project workload. As a result, the resources get overwhelmed with the projects, resulting in delays and poor outcomes.

Solution: To address the shortage of skilled labor, construction firms need to invest in all employees’ training, such as;

• Refresher training courses for all resources
• Mentorship programs, where seniors will guide new workers

Moreover, experimenting with new approaches while recruiting construction resources will mitigate the issue. Here are some of the additional ways that will help negate the shortage of skilled labor:

• Secure skilled workers beforehand
• Empower resources to select projects of their interest
• Hire part-time or contractual employees
• Offer loyalty points to your current workers

Lack of resource planning and scheduling tools

To gain a competitive edge in this technologically advanced era, managers must have the right resourcing tools. Silos of spreadsheets or home-grown tools are limited to essential admin work. They fail to address construction resource management challenges efficiently. They are also time-consuming and error-prone, resulting in scheduling conflicts such as double bookings.

Solution: A resource planning tool can map out your resources’ skill sets and schedule tasks accordingly. Using the software, you can assign resources to tasks best suited to their unique skills. Then, you can forecast, schedule, and allocate tasks as required.

Resource scheduling software captures employees’ schedules and their time off, such as vacation, annual leaves, or public holidays. It also provides visibility of other available resources when needed and keeps the project resource plan on track. Resource capacity planning helps to identify and bridge the capacity gap using appropriate measures.

Also, it would help if you had a backup plan in case someone gets unwell or has some personal emergency. A high-level resource planning strategy allows a buffer on resources during unforeseen events.

Changes in project scope due to various external and internal factors

Scope creep can adversely impact resource productivity and increase workload. In addition, it leads to burnout and turnovers as resources get overwhelmed with last-minute changes.

Also, managers face a massive resource crunch and struggle to find suitable staff at the last moment.

Solution: First and foremost, you must ensure the scope is clear to everyone working on the project. The client should understand what is in the scope and what isn’t. Excellent and transparent communication with the client can negate last-minute hiccups.

Here is how you can save the project from scope creep:

• Determine and agree upon a change management process upfront.
• Prioritize the tasks and accommodate new requests if necessary.
• Communicate with clients and stakeholders about any scope creep.
• Analyze the impacts of changes and present solutions to your client or stakeholder to tackle them.
• Finally, if scope change is the only way possible, find ways to incorporate the changes.

Poor resource utilization

Resource utilization is one of the KPIs in construction project management. But finding the resource utilization metrics right is tricky. Managers sometimes oversee utilization when resources are not working on any billable task. Overlooking utilization leads to disengagement and decreased morale of employees. In addition, resources get more prone to mistakes as they lack focus. Consequently, they fail to adhere to the company standards.

Solution: Knowing your team’s current resource utilization rate will tell you if your team is overwhelmed/underwhelmed with the workload. Reviewing the utilization rates will help you re-plan and reassign tasks if needed.

Both overutilization and underutilization can have adverse effects on the project. Here are some simple steps to improve resource utilization:

• Define appropriate variables to measure billable utilization.
• Improve your resource deployment upfront by comparing planned versus actual reports. It will also help you to prepare for future projects.

Proper resource planning and resource capacity planning ensures that no project vacancies go unfilled or excess capacity goes wasted. As a result, you can maximize your resource utilization and ensure timely delivery. You can maximize your resource utilization and also ensure timely delivery, resource utilization and ensure timely delivery. None of the project vacancies goes unfilled or excess capacity goes wasted. You can maximize your resource utilization and also ensure timely delivery.

Poor communication

Poor communication is one of the factors that can hamper project success. The project manager has to foster team collaboration. Otherwise, communication challenges will grasp the construction project management.

Solution: A communication plan will make team collaboration much more effortless. There must be constant contact between the team members, managers, and stakeholders. Modern resource management solutions facilitate real-time collaboration using discussion boards or personalized chat rooms. Project members can effectively communicate, update, and share documents and more through personalized chat rooms. Project members can effectively communicate, update, and share documents and more.

Thus, implementing a single collaboration platform for the team and stakeholders will help build communication. It will help the team members to:

• Understand the goals of the project
• Access and use approved project documents
• Update their tasks when needed
• Track the overall progress of the project
• Log risks and issues

For example, instant desktop notifications, chatbots, task reminders, etc., enable faster communication. It will help the team stay connected and well-informed.

Since we now understand the challenges related to construction resource management, let’s learn the steps to evaluate the resource requirements.

Four steps to identify resource requirements for construction industry

There are four basic steps to arrive at resource requirements for the construction industry:

Create a project plan and identify milestones

A project plan ensures that everything remains on track and gives a clear view of the scope. Moreover, properly understanding project milestones and deadlines helps allocate effective resources in construction projects. With the help of a WBS, you can better understand what is required for the project’s success. It also works as a roadmap of tasks and elaborates the skill set requirement.

Identify resources required for project success

First, one needs to identify the specific work that needs to be done. Based on that, estimate the type and number of resources required at different stages. Next, plan for resource acquisition so that there is no idle time and enough work for the workforce that is onboarded. Plan for ramp-up and ramp-down activities as appropriate.

Evaluate resource availability and reusability for other projects

Ensure the availability and reusability of your project resources to meet project milestones. You must ascertain if a resource can be used for multiple tasks on the same project or if they would be better suited for another project based on the skills.

Have an authorization process for proper resource planning

A consistent authorization process will help the managers and the stakeholders ensure everyone is aligned with the objectives. This way, you can stick to the milestones and deliver within the deadline.

These steps help construction firms assess the resource requirements for projects. Now let’s know some of the key trends shaping the future of construction resource management.

Future trends in construction resource management

As the construction industry is constantly evolving, leveraging technology and other trends has helped them to make construction management and site operations efficient and sustainable. Here are some of the emerging trends in construction resource management.

Increased adoption of technology

Technology plays an integral part in the construction industry for planning, designing, automating manual tasks, increasing the productivity of resources, etc. Tools like Building Information Modelling (BIM), Construction Robotics, AI, IoT, BI, etc., help optimize resource allocation, improve communication, and reduce waste.

Use of advanced building materials

There is a paradigm shift in the construction industry from using traditional materials to modular and green approaches. There is a growing emphasis on using sustainable materials and processes like 3D printed concrete and basalt, mycelium composites, bioplastics, and bio-foam.

Growing prominence for modular construction

Off-site, prefabricated or modular construction is one of the popular trends in this industry. This involves developing the standardized components of a structure in the off-site factories and assembling the final ones on-site. Modular construction is a cost-effective method that minimizes construction time, improves quality, reduces material wastage, etc.

Emphasis on sustainable practices

Sustainable construction methods are gaining prominence in building projects as they positively impact the environment and society. Some of the sustainable practices include Building Information Modeling (BIM), the use of recycled materials, green insulation, solar power, cool roofs, etc.

Better workers’ safety measures

Construction workers are exposed to several hazardous equipment and activities, which puts their safety at risk. Hence, modern construction companies are investing in immersive technologies like Personal Protective Equipment (PPE) and AI algorithms to anticipate the risks and take corrective measures.

These are some of the emerging trends in construction resource management that will help firms improve the construction processes’ efficiency.

Conclusion

Construction resource management can be tricky. However, with proper resource planning and scheduling, managers can maximize productivity and ensure minimal resource conflicts. Resource management software is critical to delivering construction projects successfully within the stipulated time, and budget is key to delivering construction projects successfully within the stipulated time and budget.

So, how do you manage resources effectively and efficiently?

The Glossary

Saviom Solution

SAVIOM has over 20 years of experience helping multinational clients manage their resources effectively and efficiently. With over 20 years of experience, this Australian-based MNC has a global presence across 50 countries and has helped 100+ clients meet their specific business goals. Saviom also provides tools for project portfolio management, professional service automation, and workforce planning software. So, SAVIOM can help your business to establish an efficient system geared toward your specific business challenges.

This growth can be attributed to the increased demand for real estate, advanced technologies, and more. The AEC projects can range from constructing skyscrapers to government projects such as building bridges, etc. Like every other industry, resources are the focal point of AEC projects as their efforts and skills steer the project to succeed. However, building an optimized workforce while ensuring every project is delivered successfully is easier said than done.

Making the right resource available at the right time involves techniques such as forecasting and resource capacity planning.

The pertinent question is, what is resource capacity planning and how to implement it in the AEC industry?

This informative article will address the query and delve deep into this concept. Let’s get started.

What is the AEC industry?

AEC stands for Architectural, Engineering+, and Construction, which describes the collaboration of architects, engineers, and construction professionals on construction-related work such as designing, concreting, carpentry, plumbing, electrical work, etc.

Let’s understand each sector in-depth:

Architectural – Visual aesthetics are an essential component of any construction project. Architects design durable, functionally safe, and aesthetically pleasing buildings. They stay involved in the project from the conceptual stage till completion, create plans according to client needs, environmental factors, and budget. The Architecture department is responsible for:

• Creating designs and drawings based on the client’s requirements.
• Coalescing with the team to quantify and qualify the project w.r.t regulations, budget, and site characteristics.
• Coordinate with engineering/construction teams and validate the work.

Engineering – AEC industry requires civil, mechanical, and electrical engineers. It includes professionals who evaluate and execute the structural, mechanical, and electrical requirements of different AEC projects. The key responsibilities of the engineering department are:

• Evaluate the designs, and understand the material and equipment requirements before the construction work begins.
• Ensure the materials comply with the required quality.
• Identify and resolve technical issues in the construction process.

Construction – In the most widely used context, the construction sector is associated with structural additions, infrastructure, and industrial facilities. The construction managers coordinate with architects, engineers, and laborers to ensure the timely completion of the construction project. In addition, the construction department oversees the following activities:

• Coordinate with architects and engineers to build the construction plan
• Hire construction workers and delegate tasks.
• Manage relationships with clients and AEC professionals
• Supervise the entire construction and identify and mitigate potential risks

By integrating these seemingly independent sectors into one industry – architects, engineers, and construction, managers can work more efficiently to attain the common goal.

Now that we know what AEC comprises, let us understand the list of resources required for project execution.

Key resources in the AEC industry

Different human and non-human resources are required to bring the construction projects to fruition.

Human resources

• Contractor – The contractor is responsible for planning, leading, and supervising the construction work.
• Supervisor – The construction supervisor is the bridge between contractors and construction workers in the field.
• Estimator – The estimator estimates the cost of material and labor required to work on the project.
• Surveyor – The surveyor advises the clients on style=”margin-bottom: 15px;”contractual matters and building costs throughout the construction process.
• Others – Other than the roles mentioned above, multiple other professionals work to bring AEC projects to fruition. For instance, architects envision the client’s needs and develop blueprints. Engineers oversee electrical, mechanical, and civil activities, and so on.

Non-human resources

• Equipment – Construction equipment refers to heavy-duty vehicles and machinery specially designed for executing construction and engineering activities. For example, excavators are used for heavy lifting & demolition, bulldozers are used to remove rock strata or soil, etc.
• Materials – Materials such as – fittings, tools, software, systems, timber, thatch, stone, steel, concrete, etc., are required to complete the construction.
• Facilities – In the AEC industry, facilities include the necessary amenities such as storage sheds, field office, safety requirements, living accommodation, fire protection, etc.

Characteristics of the AEC industry

AEC projects are highly structured endeavors owing to long-term commitments and the demand for a coalition of three departments. These are extremely fluid, which means the changes in weather, equipment, technology, and permits can wreak havoc on a project’s schedule.

Here are some key characteristics –

• AEC projects are resource-driven. From highly skilled architects to engineers and on-site workers, they require diverse expertise. According to the US Bureau of Labour and Statistics, job opportunities in the construction industry are expected to reach 7.5 million by 2026.
• Each construction project is unique and is attributed to geographical conditions. For instance, if two identical dams are to be constructed at two different places, the soil properties, site characteristics, climatic conditions, environment, etc., will introduce multiple variations in the project requirements.
• A bulk labor force is engaged in construction whose employment pattern and working conditions are different from other industries. For example, the construction workers in the field are not selected based on their certifications or academic qualifications, they are solely recruited based on their manual skills. Additionally, they are often employed on an ad-hoc basis and paid hourly wages, encouraging them to work for a longer duration.
• Most AEC firms operate in silos where departments use independent software to function or still use spreadsheets. Many companies still employ outdated data processors and controllers to export/import data from the systems.

Subject to these traits, often AEC industries find it challenging to employ the right personnel. The following section explains these resourcing challenges and how effective capacity planning can help overcome them. Let’s delve deep,

Resourcing challenges faced by the AEC industry and how to overcome them

There are many pitfalls in the construction project lifecycle. According to a study, 77% of AEC projects suffer delays, and 98% go over budget.

So, what is the leading cause of these issues? Here is a look at what’s affecting the industry –

Ineffective scheduling of AEC resources due to siloed information

As mentioned above, multiple resources, including civil engineers, CAD designers, carpenters, plumbers, equipment operators, etc., are required to complete an AEC project.

Failing to plan and schedule the resources appropriately can impact the quality, delivery, and overall project success.

Many firms still use legacy systems and traditional spreadsheets, which often lead to siloed data and a lack of visibility into resources’ present and future schedules. This can lead to double-booking, unnecessary hiring, etc.

For example, construction laborers work on a shift basis, and due to a lack of visibility into their bookings– managers might book the same laborer in two shifts, causing an excessive workload.

Solution: A robust resource management tool helps break down the silos within an organization by providing enterprise-wide visibility of resource schedules. With a unified Gantt chart view, managers can book the resource using simple drag and drop capability and make amendments when required. Additionally, the tool provides a warning if any resource is booked more than the capacity and helps prevent overutilization.

Moreover, the real-time utilization and availability reports help managers make informed decisions and ensure uniform workload distribution.

Growing shortage of skilled engineers & construction workers

‘Aging workforce’ closer to retirement is one of the major resourcing bottlenecks for AEC industries. According to a recent survey, only 3% of young people were interested in pursuing their careers in the construction field. So, due to the current resources retiring and the lack of a new generation workforce, there is an acute labor shortage in the AEC industry.

Moreover, there is an increasing demand for skilled talent because of ever-evolving customer expectations, global competition, and rapid technological improvements. As a result, many construction firms are looking for professionals with advanced skills like – AutoCAD, Rhino 3D, SketchUp, Revit Architecture, etc. Since the existing talent pool is not well versed with these tools and tech, the skills gap is widening tremendously.

So, what is the best possible resolution?

Solution: With a forecasting and resource capacity planning solution, managers can foresee project demand and identify the skills gap in advance. They can leverage the capacity vs. demand reports to assess the excess and shortage of resources and implement corrective measures ahead of time.

If there is any skill gap, they can train/upskill the existing workforce in the latest technologies mentioned above. In case of resource shortage, they can even initiate planned hiring to recruit competent resources and ensure the seamless execution of future construction projects.

Lack of foresight into pipeline AEC projects

Many organizations still use legacy systems such as excel spreadsheets or desktop applications to manage AEC projects. As a result, they fail to foresee pipeline projects’ demand.

Due to a lack of foresight in projects, the construction managers end up requesting workers at the last minute, leaving no room to form an action plan. It may lead to last-minute firefighting for resources, wrongful hiring leading to compromised project quality, budget and schedule overruns, etc.

Solution: Construction managers can foresee an opportunity that is at an approval stage or has reached a certain probability of closure and estimate resource requirements well ahead of the curve.

Then using the resource management software, the project managers can request resources and provide enough lead time to deploy the right ones at the right cost. In case a critical resource such as an architect or engineer is allocated to an ongoing project, managers can implement out rotation and backfill strategy to ensure the construction activities are not disrupted.

Increase in bench size in the construction firms

The majority of AEC projects are prone to frequent ramp-ups/downs. Typically, they include phases: initiation, pre-construction, procurement, construction, and closeout. For example, the manager may require thousands of workers in the procurement and construction phase.

However, once the project reaches the closeout phase, there can be a massive ramp down of resources. Due to this, most of the workforce (typically construction workers and engineers) land on the bench, impacting overall business profitability.

Solution: Managing the capacity of resources and minimizing bench time is one of the main aspects of a construction/industrial project. To achieve this, managers can implement resource management solutions and leverage project vacancy and people on the bench reports. This will help them get foresight into resources likely to end up on the bench and allocate them appropriate project tasks (from the project vacancies) beforehand. Moreover, the managers can also provide upskilling/training to benched employees and utilize them on future projects.

Inability to meet the volatile resource demand

The AEC industry is one of the volatile markets with increasing uncertainties and risk factors. According to a report by KPMG, 78% of engineering and construction companies believe that the risks of construction projects are increasing.

Since AEC projects are susceptible to change due to external and uncontrollable factors, the resource demand is volatile and can change dynamically. For example, if you are working on building a shopping mall, the initial idea was to keep it 4 storeyed. However, the client requests you to add one more.

Due to a lack of visibility into the resource pool, managers are not in a position to fulfil this demand cost-effectively. How can one combat this?

Solution: To meet the volatile resource demand, managers can form a balance of permanent and contingent workforce.

Before forming the mix, resource managers can go through the current and future resource demand, evaluate if it’s one-time or recurring and make an informed decision.

Considering the previous example, managers can hire a contractual resource (engineer and supervisor) to oversee the 5th floor’s construction along with a mix of permanent and freelance manual labor to keep the costs in check.

Let’s go through some more tips to improve resource capacity planning.

Additional tips for AEC managers

Construction projects are more likely to be delivered on time when the resource capacity planning is done right. However, managers can implement additional tips to ensure successful delivery,

• Facilitate collaboration between departments to manage interdependencies, foster trust, empower the workforce and boost productivity.
• Bring transparency in communication and set expectations right to ensure everyone is on the same page. Lack of transparency in defining goals and objectives can lead to discrepancies and conflicts.
• Keep track of workforce competency across the enterprise. It helps to proactively plan for niche skills needed in a new construction project
• Monitor billable, strategic and overall utilization of resources and take corrective measures to ensure profitable utilization.

Final thoughts

The AEC projects are complex, resource-intensive, and of long-duration. To ensure timely delivery, AEC firms have to ascertain they have an optimized workforce in all three areas. It’s about time they implemented a robust resource forecasting and capacity planning solution to build an optimized workforce and futureproof them against market volatilities.

How do you tackle your resourcing bottlenecks?

The Glossary

The SAVIOM Solution

SAVIOM is the market leader in offering the most powerful and configurable solutions for managing enterprise resources efficiently and effectively. Having more than 20 years of experience, this Australian-based MNC has a global presence in over 50 countries. It is also popular with more than 100 customers and helps them achieve their business goals. SAVIOM also has products for project portfolio management, professional service automation, and workforce planning software which can be easily customized as per business requirements.

A construction project requires a diverse set of expertise, from on-site laborers and engineers to highly skilled architects and project managers. It is unique due to its vulnerability to climatic and environmental dependencies. It further adds to its complexity in addition to traditional resource-related challenges. When project managers fail to tackle them or slight deviation in any aspect is overlooked, it can lead to project failure.

In fact, according to the research by KPMG, Over 50% of engineering and construction professionals report one or more underperforming projects in a year.

The question is, what are the primary reasons behind the failure of a construction project?

This article addresses the same question and takes a deep dive into different ways to overcome obstacles and improve the probability of success.

But let’s first begin with the understanding of why construction projects are unique in their way. Hold tight!

How Are Construction Projects Unique?

Construction projects are one of a kind where each site is unique. The projects are always time-driven and cost-driven and involve a multitude of both human and non-human resources.

Resources involved in construction projects include;

• Human Resources: contractors or subcontractors, architects, engineers, suppliers, manufactures, workers, etc.
• Non-human Resources: solid materials, machinery, equipment, etc.

Before the project initiation, all the project’s necessary elements, like the scope, resources, potential risks, safety, and the environmental impact of the operations, are considered. The timelines of construction projects are also typically estimated in advance. Therefore, clients are required to prepare a design and budget at a very early stage.

In modern construction, introducing new materials, methods, and technologies for sustainable development can lead to a growing degree of risk and complexity. Therefore, the managers need to be innovative and have an appropriate project plan in place. Analyzing resource constraints and their interdependencies will also enable them to mitigate all task-related risks and improve chances for success.

The uniqueness of construction projects also addresses the external influences and changing requirements that can alter throughout the project timeline. These can include technological upgrades, financial restrictions, market volatility, climatic changes, and changing client requirements.

Now that we know the characteristics of a construction project, let’s understand the construction industry’s underlying issues that lead to project failure.

Causes of Construction Project Failure

A construction project can be led to failure for a vast number of reasons. Let’s take a glimpse at some of the most significant ones:

Lack of Project Leadership

The team is driven by a project leader who has the best expertise and sound decision-making skills. They ought to make the right decisions at the right time as poor choices will have extreme repercussions on the project’s progress. The lack of supervision by managers will also deteriorate the efficiency of the project, resulting in budget and schedule overruns. This will give rise to conflicts among team members and affecting various interdependent tasks and overall productivity.

Poor communication of managers with stakeholders and between cross-disciplinary teams may lead to a communication gap which further causes organizational chaos and low productivity.

Poor Project Planning

As rightly said by ‘Pablo Picasso’- “Our goals can only be reached through a vehicle of a plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success.”

Insufficient preparation or an ill-defined WBS is one of the most prominent reasons construction projects spin out of control. Project planning includes defining management strategy, but the lack or insufficiency of efforts towards the below-mentioned factors leads to project failure.

• Project’s scope
• Project work breakdown structure (WBS)
• Task dependencies
• Project resource schedules
• Project risks (Financial/resource)
• Project procurement/delivery schedules
• Site surveys and logistics.

The use of conventional tools and silos of spreadsheets for project management often causes inconsistencies as updates are not available in real-time. Another issue is the alteration in scope or scope creep, which means that the scope has undergone changes in the scheduled plans. Miscalculations in work breakdown structure (WBS), and changing market conditions (e.g., cost of supplies and labor) contribute to a massive loss in business continuity for the organization.

Inaccurate Resource Capacity Planning

A construction project requires a diverse set of human resources such as engineers, architects, site laborers, and other non-human resources like assets, machinery, and equipment. However, during task scheduling project managers often encounter many challenges due to the lack of foresight into the capacity vs. demand gap. It mainly contributes to shortage or excesses of resources that result in improper resourcing treatments such as last-minute hiring or high-cost recruiting.

Here are the ways that poor capacity planning can impact project deliverables;

• Resource shortages restricting the project’s progress
• Resource overallocation leading to lower productivity and burnout.
• Poor quality deliverables
• Increase project costs

In a nutshell, inaccurate capacity planning escalates project costs and timeline, impacts project profitability, and eventually leads to a catastrophic failure.

Incompetent Resource Allocation

Team scheduling and resource management are critical factors in any construction project. Inefficient resource management leads to improper resource allocation and discrepancies in task management (WBS).

For example, Improper resource allocation or allocation of under/over skilled resources (mismatched skillset) on projects.

Allocating all available critical resources to a single high-priority task can also create a resource crunch, as other tasks are adversely affected. This results in budget spikes, compromised project quality, and delayed delivery.

Inefficient Resource Utilization and Tracking

Productivity expectations from resources are based on the project plans and schedules developed for each construction project. The suboptimal use of resources and poor tracking of their productivity in real-time can easily cause delays in the project timeline and the profit margins immediately decrease.

For example, a Highly skilled resource is allocated for some low-priority mundane/BAU work. This leads to the under-utilization of resources which causes low productivity of competent resources. Another reason can be the double booking or over-utilization of resources resulting in deterioration of the quality of delivery.

Resource utilization rate tracking enables managers with real-time visibility of resource billable time and helps them to take corrective action if necessary. The accurate monitoring of resource productivity also depicts the project’s financial health.

Failure in Forming a Contingency Plan

Recall the time your team worked on a high-priority construction project, but due to unprecedented pandemic conditions and state lockdowns, project operations came to a halt. This resulted in substantial business losses due to the cost and schedule overruns. To put that in perspective, Now, what will be your approach in the future?

Construction is a risky business, and when there are complex projects with tight schedules, they get even more difficult. There are many risks that managers can mitigate the best by forming a contingency plan. For example; Buying insurance plans, and hiring a contingent workforce, etc.

Thus, managers need to aggressively look for potential risks while planning the project schedule to ensure the projects are delivered on time and within budget.

Cost Overruns and Schedule Delays

Cost overruns are uncertain expenses that exceed initial budget estimates. It is usually caused due to changes in scope/estimates and delays in completing tasks due to incompetent resource allocation. On the other end, schedule delays can happen for various reasons such as weather conditions, resource shortages, risks/conflicts, machinery failure, etc.

Budget inaccuracies, resource constraints, lack of effective communication between teams result in project schedule delays which eventually spike project costs.

Over to You

Construction project failures cannot always be avoided. Scope creep in projects that cause budget overruns end in the absence of income for the contractors. After all, there are some things you can’t foresee and plan. But for all others, using an intuitive tool and paying close attention to planning and management will help avoid a total breakdown.

With an effective project management solution, managers can access risks, leverage the workforce, and plan accordingly. The constituents mentioned above will help managers keep a check on the project challenges and lead the project to succeed.

What construction project challenges did you encounter recently?

The Glossary

The SAVIOM Solution

SAVIOM is the market leader in offering the most powerful and configurable solutions for managing enterprise resources efficiently and effectively. Having more than 20 years of experience, this Australian-based MNC has a global presence in over 50 countries. It is also popular with more than 100 customers and helping them to achieve their business goals. SAVIOM also has products for project portfolio management, professional service automation, and workforce planning software which can be easily customized as per business requirements.

Subject to this, it is imperative for project managers to document a detailed, well-structured construction management plan. When every aspect and attribute of the construction project is recorded, it facilitates managers to supervise and complete the projects within time and budget.

This blog is a complete guide on how to document and define an effective construction management plan.

Beginning with the definition,

What is a construction management plan?

A construction management plan is a document that entails detailed information on mechanisms, tools, resources, and the knowledge transfer necessary to deliver complex construction projects. The plan enables project managers to determine project feasibility and develop resource schedules that align with the goals and objectives. It further facilitates efficient project resource planning and management.

Construction management plans bridge the communication gap between cross-disciplinary teams which is critical before beginning the projects.

With an organized plan and schedule, managers can be held accountable and ensure that the workforce is committed towards timely and quality accomplishment of the construction work.

Overall, it is a handbook for the project managers that can help them in managing construction projects to succeed.

Here is what goes into a construction management plan,

What goes into a Construction Management Plan?

Define the project scope

The project’s scope is inclusive of the project’s goals and objectives, deliverables, features, financials, tasks, and deadlines. Defining these variables builds the foundation of your construction management plan.

When managers have detailed documentation of every project attribute, it becomes feasible to plan construction projects and allocate tasks with accuracy.

Resource capacity planning

Once the project scope is in place, the construction management plan should have a resource schedule ready. Building the right team to accomplish varied tasks is crucial to get a headstart on the construction project.

Managers must therefore assemble the right workforce and allocate the right tasks to them to avoid any potential bottlenecks in the future. Capacity planning before project execution also provides enough window to the manager to recruit the resources well in advance and eliminate delays.

Phase design and budgeting

The overall project plan must be divided into small phases or small projects. This will enable decision-makers to track the progress at every stage conveniently. In addition, designing each phase facilitates accurate budgeting as the management practices and methods to be employed are explained explicitly.

Phase designing and budgeting is vital to get an estimate of the total revenue that will be generated. It will also facilitate managers to assess the feasibility of the project.

Stating the interdependencies

Enunciating tasks and their interdependencies on other departments is a must in construction projects. That’s because construction projects operate with cross-functional teams and coordination is required between every team for the project’s success.

Thus the plan created by the project manager helps them supervise the construction planning and ensure that projects are completed on time.

These are the essentials of a construction project management plan. Of course, managers can configure the plan as per their projects and requirements.

Let us now understand the steps that will help you create an effective and systematic construction management plan.

Construction Project Planning Steps

Document the scope

A comprehensible scope outlines the construction project’s goal and purpose in terms of its value and benefits. It is a compilation of both the stakeholder’s and client’s expectations and inputs. After diligent analysis of every input, a scheduling plan for the construction is developed.

In addition to this, a project’s scope explains each and every team member’s roles and responsibilities in detail. It also includes the project’s timeframe, financials, methods and techniques to be employed. Moreover, it consists of factors that may adversely affect the project’s progress.

In a nutshell, the project’s scope is an overview of all the project attributes. Documenting the scope is therefore the most important step while drawing out the plan.

Draw out a Work Breakdown Structure (WBS)

A work breakdown structure (WBS), as the name suggests, is a deliverable-oriented breakdown or bifurcation of projects into smaller tasks. Drawing out a WBS allows project managers to categorize the projects into manageable chunks.

They can schedule and allocate the right task to the right resource with ease. One of the major benefits of designing a WBS is that it enhances task management efficiency and helps managers ensure uniform allocation of workload. A WBS is, therefore, necessary to help project managers track the project’s progress at every stage. This will help them implement corrective measures in case of discrepancies.

Feasibility study

A construction project depends on environmental, social, and financial factors. A shift in even one of these can impact the project’s progress. Before beginning the execution, project managers must meticulously assess every factor. They should also analyze if the project is prone to environmental hazards or if the project will be profitable enough.

This careful evaluation constitutes the feasibility study. Before investing the resources, their time, and the project costs, conducting the feasibility study is necessary to ensure the project’s success.

Cost and time analysis

Major construction projects cost thousands of dollars to your firm every hour. A slight delay in the timeline can eat into your organization’s profitability. Managers can prevent these setbacks from happening by running an extensive cost and time analysis. This is only possible when they have centralized visibility of their project tasks and resources booked to complete them.

With a unified view, project managers can calculate the resource and equipment costs which will help them calculate approximate total revenue. Thus cost and time analysis is crucial to ensure that projects are delivered within time and budget. Note that employee leaves, holidays, and buffer time must be taken into consideration while analyzing the timeline.

Quality control and risk management

Stakeholders and clients have to be specific with the project quality they want. This quality is clarified in terms of material and the final output. The onus is on project managers to ensure that this quality is maintained throughout the project lifecycle.

More importantly, a risk management plan has to be in place when you are dealing with construction projects. This is because these projects are not only prone to time and cost overruns but also pose safety risks. A construction management plan therefore must have a contingency plan and quality control audits.

Documentation of communication plan

When a project pivots on cross-functional departments, transparent communication and coordination are imperative to ensure smooth functioning.

The project manager’s role is to document the collaboration channels beforehand to make sure no department or team is left out of the loop.

If one team faces a challenge, it can communicate and notify other departments who are dependent on them. This way, curative steps can be taken in time to avoid delays and further roadblocks.

These are the steps to be followed to document a systematic and well-organized construction management plan.

In conclusion, mentioned are some tips and tactics for project managers to effectively plan construction projects,

Conclusion- Tips to plan construction projects

The construction industry projects demand a detailed plan to ascertain that no factor or attribute is overlooked. A shift in one factor can cause a ripple effect restricting the project’s progress. Thus, managers must make a diligent effort to develop this plan. The above-mentioned constituents and steps will help you formulate a systematic plan and lead your project to succeed.

Below are some additional tips to add glory to your plan:

• Open all channels of communication and collaboration. Ensure that all the documents are uploaded on the drive to make them accessible from anywhere.
• Use effective resource management or project management software to gain 360-degree visibility of the enterprise. This will help you track progress at all times.
• Time and task management are two important components to ensure project profitability. Plan and workforce smartly and efficiently to avoid over-utilization of resources and delays in meeting deadlines.
• Safeguard your project data by investing in secure software and creating a backup at regular intervals. Losing this data can cause a catastrophic effect on the project’s progress.
• Review and improve your plan every time. A construction management plan is always a Work in Progress. Based on the changing factors, keep updating the plan to enhance efficiency.
• Project managers must keep in mind the lessons learned from past experiences and improve their project planning process.

The Glossary

What steps do you follow to design a detailed construction management plan for your firm?

The SAVIOM Solution:

SAVIOM is the market leader in offering the most powerful and configurable solution for managing your enterprise resources effectively and efficiently. With over 20 years of experience, this Australian-based MNC has created its global presence across 50 countries and helped more than 100 customers achieve their business goals. SAVIOM also has products for project portfolio management, professional service automation, and workforce planning software that is customizable as per business requirements.

Before moving in with the heavy-duty machinery and manpower, construction sites are studied for structural feasibility. But one wrong move on-site can harm your workforce and add to your liabilities. Occupational health and safety should be part of the design criterion in order to commence work with the appropriate preventive measures in place beforehand. Cue the entry of Workplace safety rules that cut down on incidents of construction project failure arising from poor resource planning. Let’s go deeper into the subject to understand the need for it, and the challenges and benefits.

1. The need for occupational health and safety

Work-related accidents cost businesses millions of dollars each year, in the form of lawsuits filed by unions and by paying worker compensation premiums. Workers lose confidence in working in an unsafe environment. After all, they’re the ones climbing up scaffolding, or on the ground operating heavy equipment at odd shift hours and in harsh weather conditions, so it’s only fair that construction site safety is followed to the T.

Occupational safety engineers are responsible for mandating and promoting safety at work. They collaborate with site designers to formulate a strategy to reach a zero-injury goal. And while 2018 saw a decline in the number of self-reporting incidents, 1008 workers (47%) still accounted for fatalities.

2. So why do a health audit on your construction project?

Firstly, it ensures no critical resource is put out of action. Secondly, it identifies and marks hazardous points on the field beyond your Line of Sight. It alerts your workforce to avoid venturing into such areas without personal protective equipment. Some of the challenges associated with championing safety in the construction industry include

A. Failure to recognize safety importance

Stakeholders offsite are unaware of the ground reality and are more concerned about the upfront safety and maintenance costs. Consequently, the extent of danger is greatly underestimated. Changing the mindset is key to recognizing the importance of safety. Falls from a height, being struck by objects or electrocutions are accidents that are known to happen but are entirely preventable with a thorough workplace risk assessment. Making it a priority fuels productivity and quality and keeps workers informed of the procedures to be followed in the event of a hazard.

B. Visualization tools to track worker movements

Conditional visibility into the number and type of both tasks and workers manning them can impede progress. For one, you remain uncertain of the labor involved, where they are and what is next in line to be started. Naturally, you can’t determine how safe the physical environment is for the worker. Be it one, ten or 100 workers, going on indefinite leave to make a full recovery does reduce the number of available and competent resources. Dependencies would then force the project to halt till another similarly-skilled staff can take over. Status updates on resource availability can mitigate this challenge to a great extent by adjusting the project timeline according to the new availability of standby workers and spare equipment and tools.

C. Time constraints

Time is money in engineering and construction. In the endeavor to make every second of the clock count, managers would argue that there is a lot of work to go around that is both time and labor-intensive. The trouble with overlooking or disregarding occupational safety, though, is that rushing things along and cutting corners compromises the structural durability of the project. The tradeoff between One National Safety Council figure was that work-related injuries caused companies to lose 103,000,000 production days in 2018, implying that time lost in the event of injury adversely impacts the schedule, team morale and eventually, the bottom line.

3. The benefits of employee health and safety

A. Safe working environment

Normalizing safety makes your site less-accident prone. A safe working environment is one that contains strategically positioned harnesses, tools, and equipment at access points located nearest to where the contractors and workers are. A construction scheduling software makes it easier to view the entire project schedule and link all the resources and equipment to the right workstreams. This absolute visibility enables you to assign an optimal quantity of manpower. You can even streamline the borrowing process and keep track of everything, from equipment servicing dates to the departments requesting for critical machinery. A check-in/check-out facility distributes human and technical resources evenly based on need, reducing the risk of last-minute inadequacies.

B. Fewer delays

Accidents, be them fatal or non-fatal can forcefully stall projects and displace existing work. Besides, no one would feel safe when they see colleagues suffering from prolonged strains and injuries. The last thing you need are workers staging protests and refusing to resume work out of concerns on safety violations. Some measures you can take as an employer is to get the job site inspected and have an evacuation plan detailing emergency exits. Supervise safety drills in construction engineering to ensure thoroughness in compliance. Delays thus don’t seep into interdependent tasks that require a previous activity to end before a new one starts.

C. Improved productivity

Workers that are trained on tools can not only use it right and acquire knowledge to protect themselves but can also remain calm in distressing situations. In fact, health and safety in construction sites help companies save an average of $32,000 for each medically consulted injury they avoid! In short, you get more productive working hours out of a healthy workforce, which in turn increases profitability by ensuring that work finishes on schedule. You indirectly boost your reputation as a builder too, attracting a wider selection of experienced contractual staff.

D. Personal protection

Occupational safety and Return on Investment are inseparable. Outfitting your staff with protective gear according to their involvement and rigors of role goes a long way in preventing on-the-job accidents. Besides medical kits and helmets, site engineers can track footfall with wearable pedometers. Should any worker approach an identified hazardous area, warnings are automatically beeped, helping the laborer steer clear well in advance. On-site maps can help them navigate and find their way around such that it takes them a shorter time to get to a particular location containing the equipment and machinery they need.

The Road Ahead

You probably heard the old joke that the road to success is always under construction. However, better and regular training, inspections and safety and health meetings with all concerned make up for lost time. Better still, it can lower costs and untoward injuries.

Given the scale and duration of construction work, it is prudent to plan out resource allocations according to skills urgency and utilization rates against staffing hours. With Saviom, you can not only take charge of safety improvement measures but can also achieve resource sufficiency from a human capabilities perspective. After all, projects remain incomplete without all the right hands on deck!

If you are a manager, chances are there that you will find construction projects to be way more complex than others. From planning to delivering the final product, these projects would include multiple things to keep track of, and can also be a potential nightmare.

Construction project planning and scheduling can also be a long-drawn process, with the involvement of different vendors, requiring coordination between both internal and external resources.

In such a situation, a planned programme would fare much better and help manage these different components better in the long run. While a notebook and pencil is all you need to maintain a personal check on progress, an online tool can help you create an itemized list of tasks and deliverables.

This is where a construction scheduling software tool comes into play. Read on to know more about what these tools entail and how you can benefit from them.

1. What is a construction schedule?

A construction schedule helps you keep your work on track, especially if you have multiple projects with a wide range of internal and external vendors.

There are a number of stages in a construction plan which makes it unique, compared to other projects. A typical project would have six stages, starting from design to occupancy.

Till the construction stage, the major stages involved would be designing, pre-construction assessments, procurement of materials, and eventually, construction.

If the construction project is a part of a larger activity of the company, it would be over at this stage. If it is the main project, commissioning and occupancy of the construction at the end would be additional stages.

An online tool for construction planning and scheduling would remarkably improve the efficiency in projects. With a scheduling software, information sharing becomes much simpler in the long run.

With stakeholders getting access to the online platform, it helps them stay updated on the progress of the project. Site-related emergencies would be handled much better by you or other team members with easy access to regular project updates.

A software tool which helps in scheduling in construction management is an ideal fit for projects like this. Listing out the different resources and their utilisation helps managers take better project-related decisions.

Let’s look at some of the major benefits of using a construction schedule software tool for your projects.

2. Benefits of construction project schedule software

A. Make your targets achievable

With the use of a construction project schedule, you can realistically plan each of the stages in the project. This helps in shaping a better timeline. With the input of data at each and every stage of the project, you would also be able to make decisions better and make informed predictions in the future.

Incorporating efficiency in your work like this would make for better client relationships as well. You can also offer them access to the tool, where they can be better informed of the current situation before taking other major decisions.

B. Keep overheads to a minimum

With the knowledge of the complete project duration, management of finances become much simpler. A detailed task list would help outline costs at different stages of the project. This keeps excesses in check as well and avoids unnecessary expenses.

Detailed costs also help supervision and management teams make better decisions in the long run as well. Emergencies, such as adverse weather issues or external constraints, can impact project costs. But with detailed scheduling and optimal utilisation of resources, you can ensure that costs do not go overboard.

C. Forecast contractor’s cash flow

A primary advantage you get from using an online tool is access to real-time updates from the site, and incorporating them in the project plans. Starting from the working hours of the staff to costing, the tool helps in better communication and serves as a good interface between stakeholders.

With the heavy dependence on contractors, cash flows can become a larger constraint

Cash flows can be interrupted when payments are delayed and there are multiple projects to handle. A construction management tool can help take care of that. With a complete tender schedule, you will be able to forecast the cash flow of the contractors involved.

Therefore, you can also plan out how the contractors would be involved in the project, without affecting the overall returns from the project.

D. Incorporate flexibility in your plan

Your building schedule of works can improve drastically if it is made to be flexible. With the help of a scheduling software, you can project the critical path correctly as the project commences.

Activities can be sequenced accordingly, and resources can be allocated. A contingency plan can also be developed, if desired.

Most construction sites also hire part-time workers or contractors who are available seasonally. Depending on when you employ such workers, you can prepare or change the contractor scheduling software accordingly.

Using a tool would also give insights into their billable utilisation, helping keep costs in check too.

E. Improved visibility of tasks

Having visibility of the end picture always helps build goodwill and accountability as a manager. A construction timeline schedule would give direction to team members. Managers and supervisors can easily figure out the tasks which should be completed on priority.

With a lack in direction, staff members could be uncoordinated and work in different directions. This effect will also be multiplied when subcontractors are involved in the project as well. With better visibility, you can also ensure minimal disputes on tasks and their remuneration.

‌Improved efficiency in projects would help reduce approval time- whether from the management or the client in general. With efficient scheduling and construction management, you can use your resources better and take up more projects and improve profits.

What is integrated project delivery?

Integrated project delivery is a combination of lean management and project integration management. In other words, the unification of talent, processes, systems and practices. It is a method of project execution that differs from earlier traditional models contractually.

And the timing couldn’t be more perfect, given the number of construction firms adopting agility as the norm.

While traditional approaches avoid and transfer the risks involved, lean IPD enables multiple parties to reach a consensus on the risks and rewards they would be sharing.

With optimizing project results, maximizing efficiency, waste reduction and increased business value as its primary outcomes, integrated project delivery has considerable success in delivering projects on time, and within the budget.

Read on to know how else lean project delivery differs from traditional models, and the benefits of using it in construction projects.

Traditional Versus IPD Construction

Traditional models perpetuate the theory of every man for himself, meaning that the owner wouldn’t benefit from collective ideation and team collaboration. As mentioned earlier, the primary difference between traditional project delivery methods and Lean IPD lies in contractual terms.

Other differences vary by the model and are as follows:

• Design-Bid-Build – This method is initiated by the owner, who is solely responsible for the project scope. The owner works closely with an architectural designer to create a construction project management plan, including its feasibility reviews. Bids are then advertised and awarded to a construction contractor, based on the best (often, the lowest) offer received.
• Construction Management Agency (CMA) – The contractor and architect are hired together by an external agency who has no liability for the actual project. The duo agrees to provide only consultation services for the entire duration of the project, thus minimizing risk to the agency.
• Construction Manager-at-Risk (CMR) – In this delivery model, the construction manager takes over the project lifecycle and has to bear expenses that exceed the budget provided by the owner. The incentive on dividends, however, ensures the construction manager profits from cost savings below the guaranteed maximum price. There’s a separate design contract that is provided to the construction manager with a full set of plans and specifications.
• Design-Build (DB) – This method lets the owner contract both the designer and contractor. Design schematics and proposed delivery schedules are provided at a fixed price, finalizing the scope of what will be done.

The risk of costs rising in line with gaps or changes to the original project scope implies why most projects wind up going over the budget.

IPD construction, on the other hand, incentivizes ideas while lowering costs. It unites the owner, designer and contractor by creating a single, multi-party contract that outlines cost estimates, project scope, shared risks and rewards. For one, everyone is informed and involved, preventing an adversarial relationship between parties that creates conflicting interests.

An extension of iterative agility, integrated project delivery construction is used to establish a collaborative working relationship amongst project members, which is crucial for large scale, complex projects.

That being said, IPD contracts apply to projects in which the owner’s involvement is sustained throughout the process. In reality, the endless red tape discourages or limits shared risk-taking and decision making ability.

And while it is subject to depreciable returns arising from schedule and build delays, alternative delivery has proven to achieve a financial alignment between design and construction. The next section will explore the benefits more closely!

Benefits of integrated project delivery systems

Project delivery systems for construction doesn’t run without its risks. You’d naturally want to know if the benefits are worth taking up, given that construction project transformation hinges on the method driving it. The first step to adopting any system is to understand what falls under benefits realization.

Conventionally, a cost-benefit analysis is carried out to determine the type of benefits against the costs to be borne, as well as the time these estimated returns will take to come in.

Some of the benefits of integrated project delivery include:

Collaborative decision making

Every stakeholder is on the same page which allows them access to project data in order to reach a consensus sooner. What’s more, priorities are linked to the entire chain, ensuring team members take collective ownership of project responsibilities.

Turnkey delivery planning

Planning is intensified when resource constraints are taken into account. In other words, the ability to predict workforce capacity and staff the project in terms of available hours, skills, experience and location.

This way, the scope factors in the feasibility of getting work done within the timeline proposed, ensuring workloads aren’t stretched or under utilized on the clock.

Leveraging scalable technology

Integrated project delivery is disruptive by nature, which justifies the need to diversify the increased of AI applications in project management. Technology not only lets you work smartly but also lets concerned stakeholders realize value in an IPD project quickly.

Lowered project costs

Traditional construction models hinged on changing the cost in accordance with the scope, but IPD stakeholders create a shared risk contract, which dictates goals of the project. Consequently, it’s easier to recalculate costs against time and effort investments, while making it easier to stick to the budget.

Now that you’ve seen how integrated project delivery introduces transparency across the project lifecycle, it’s time to explore how the same concept applies to your resourcing strategy.

With a resource management software, rest assured that your experiential intuitivity will be captured, helping you tap into potential from within. Further your curiosity with a free trial!

A more appropriate question is, why shouldn’t they?

Engineering consultants are field-experts in diverse knowledge areas, some of which include geological, petrochemical, structural, civil, and electrical engineering. Considering that engineering consulting firms are teeming with specialists in these niche disciplines, it makes sense to take stock of valuable and relevant skill sets. It is a profession that makes use of both managerial and technical expertise to solve real-world problems.

The growth spurt of such firms is no accident. Demands are changing, bringing with it tougher problems to solve. Clients across the globe are struggling to keep up with a volatile economy and additionally find that they lack the manpower and the competencies in house to come up with a long-term strategic fix. Consulting engineers employ a fact-based approach to determine how and where which skills fit best. That is, they can recommend a long-term course of action even if it requires a different set of skills from the one they have.

A resource management software is an asset to engineering consulting services who aim to supply firms with the right engineering personnel. After all, the firm needs to know the type of engineering consultants at present and how many more such roles need to be filled in the future. Only then can they know what a competent consultant’s availability looks like in order to provide the service they specialize in. Here’s a closer look at what engineering consulting firms do and the benefits they get from using a resource planning tool.

1. How do engineering consulting firms operate?

Engineering consulting firms comprise of reputable, knowledgeable, and able consultants who work on either specific tasks, or the entire project. Professional engineering consultants would be actively involved in the ideation, planning, and design stages of a project and would even be called upon to provide project management expertise to the existing team.

In this regard, a product tool that can bring these resources and their schedules to the forefront lets you identify and profile such resources by their availability and capacity. Consequently, the time and efforts going into the engineering resource planning process is done with the intent to deploy the best resources to client locations. The benefits of practicing scientific resource management include:

A. Greater workflow visibility

Engineering consultants can work independently or as part of a bigger team, which drives the need to visualize both project and resource workflows.

Unconditional visibility into enterprise-wide team-based activities gives you clarity on what teams are on, how different skills are put to use, how long a project runs and if every competency is being optimally spread across multiple projects.

What’s more, it lets you minimize ‘noise’ from schedules, such as non-core, administrative or operational work, thus freeing the consultant to focus primarily on the work that they’re contracted for.

B. Skill-specific allocations

Projects staffed with the right quantity and quality of skills ensures that its key challenges are captured and resolved through appropriate channels. Just because a consultant engineer happens to be available for the location and time isn’t reason enough to deploy them. They should also be skilled in that particular area in order to be of true service.

This is where a resource allocation tool comes in handy. It draws data from competency availability reports and lets you allocate projects with professional engineering consultants based on their skills profile, existing effort investments, available hours and the project’s criticality. Efforts can then be matched to activity durations, enabling a more precise gauge of the project’s progress.

C. Future resource insights

Engineering consulting services aren’t immune to attrition and employee turnover, whether it happens due to retirement, resignation or termination of services. Both measures affect the business and inflow of workers, requiring predictions into resource capacity and demand fluctuations.

A capacity management plan is one of the best strategies to reduce employee turnover. Not only does it generate insights into the existing resource pool’s suitability and skills sufficiency for future projects but can also prevent a resource crunch arising from over or under utilization. In other words, it sizes up work and workforce at one go to identify projects that benched skills can be assigned to, ensuring all undertakings are optimally staffed.

Further, knowing the shifts in demand readies you for a project slump, or dry spell which sees fewer projects in the pipeline convert to true work. The time can then go into reskilling or upskilling measures so that your workforce can upgrade their capabilities and step into newly created roles that fit future assignments.

D. Maximized billability

To quote Ireland’s Association of Consulting Engineers, selecting an engineering consultant is one of the most important decisions an owner or client can make. In doing so, you ensure that the consultant’s recommendations follow a thorough understanding of the project as well as meets the quality of service expected.

A consultant bills his/her efforts based on the scope of work, timeline within which the service or product is to be delivered as well as which skills to be used. Naturally, consulting engineering services would want to maximize consulting billable hours to boost their revenue. Settling for a lower rate can force your staff to cut corners, thus compromising work quality.

The booked versus actuals report within a resource management tool drills down to a project’s billability based on the tasks engineering consultants are booked onto. This way, if a project ends early, on time or late, the hours specific efforts go into reflect the actual charges for the service provided. That is, cost rates can be re-estimated and adjusted for cost-efficiency.

2. What now?

Engineering services in the US alone grew by 2% and brought $250 billion in revenue. Given how advanced engineering consultants are in demand, it’s not surprising why firms like AECOM, Laing ‘O Rourke and Aurecon are reliant on a resource management tool like Saviom. After all, wouldn’t you look towards a process that skill-matches high-profile projects with ease, and precision?