May 15, 2023
By Michael Rief, Sr Vice President of Construction, WSB

It is not every day that a construction project is delayed due to digging up unmarked graves, but it certainly happens more than the public might realize. Construction projects face the potential of delays in work for many reasons. Some of these are within the control of the managing company, while others are outside of their control. It is essential for industry leaders and local municipalities to understand the potential causes of delays and to have plans in place to address them promptly and mitigate cost, schedule, and quality.

Controllable Delays

Delays that are within the control of a company are often preventable and are caused by a variety of issues. Plan issues, utility conflicts, poor workmanship or low-quality materials can result in the need for rework, which can delay the project, impact schedule, and increase the cost of your project. This can happen if the work is not done to the required standard or if the materials used do not meet the specified quality criteria. The time and effort required to rework or remove and replace the work can be significant, and it can result in delays to other work later in the schedule that is dependent on it.

Permitting, environmental and safety concerns can also cause delays in construction projects and may require work to be stopped, which can also result in additional costs. Communication or misunderstanding in the planning and execution of the work between project stakeholders, can lead to confusion about project requirements, timelines, and other critical information

To mitigate these risks, WSB takes proactive measures, such as implementing quality control processes, investing in safety training, improving team communication, and ensuring compliance with all relevant regulations.

Uncontrollable Delays

In addition to these internal factors, there is a number of external factors which can cause delays in construction projects. Weather is the largest external factor in delaying construction. Whether it be snow, high winds, extreme temperatures, or severe flooding, all are outside the control of the construction project team and create significant setbacks.

Subsurface obstacles such as poor soils, unidentified utilities, contamination, or historical and religious artifacts uncovered during excavation significantly impact the project timeline. These may require design changes, new permitting and approvals, and additional costs.

We have also experienced government shutdown or stoppage in programming funding which has delayed construction because contractors are no longer able to be paid, and approval processes shut down. These delays can potentially shut down work by months, even years, depending on how long the stoppage lasts

These external factors are harder to influence and, in many cases, impossible to control, but there are ways WSB’s team and partners work to eliminate and minimize their impact on projects.

How WSB Can Help:

WSB thinks through all possible scenarios to ensure that it’s prepared to prevent, address, and resolve any delays that may arise.

Existing processes such as project scoping, soils exploration and project planning along with technological advancements like ground-penetrating radar and drone surveys help WSB identify potential issues like subsurface items or utilities that must be cleared before a project begins. These approaches help to further define the nature of the work and identify issues in the planning and design phases to prevent costly changes which can impact, cost schedule and quality during the construction phases of the work. Planning and sequencing of construction activities is also managed with technological advancements. WSB identifies conflicts for each stage of the construction stages by applying conflict analysis on temporary construction elements such as drainage and traffic needs by utilizing clash detection and contract time determination.

Construction project delays can be caused by a range of factors, both within and outside of the control of the owner and contractor. However, by implementing proactive measures, investing in technology, and prioritizing communication, WSB minimizes the risk of delays and ensures that projects are completed on time and within budget for municipalities.

October 14, 2022
By Christopher Kester, Sr Estimator, WSB

Economic instability, rising inflation, and labor and supply chain issues have created price fluctuations and instability in the construction industry. Simply put, costs and supply availability are harder to predict, adding undue complications to those planning and executing construction projects. 

Every project, every client, and every contractor is different, but many are facing similar challenges. While there are no quick and easy solutions to completely predict and overcome rising costs and swift market changes, there are some things to consider that can help mitigate risk and help you overcome obstacles. 

1. Consider alternate materials. Material acquisition is more difficult than ever as our industry feels the squeeze of supply chain shortages. It can be difficult for suppliers to provide certain building materials to contractors at certain times, and short summer construction seasons in colder climates can squeeze supplies even more. This then causes problems for owners who don’t have a backup material they would like to use for their project. When preferred materials aren’t available, have a contingency plan and substitute building materials where possible. Clear communication between contractors and owners about which substitute materials should be used is an important part of the design process.

2. Plan ahead. It is important to plan out projects ahead of time as much as possible and stick to your timeline. Right now, suppliers are having difficulty putting materials on hold for clients. Planning ahead and coordinating with suppliers on timing of materials can make a huge difference.

3. Be flexible and work in stages. As the road construction season comes to an end in northern states, many suppliers are out of high-demand materials, meaning a good number of projects will have to be put on the waiting list as supplies come in. If you can delay certain parts of a project and work on others to keep a project on schedule, this can help overcome temporary roadblocks. Completing the project in increments also gives the construction team enough time to complete the tasks and gives the contractor and owner time to coordinate material acquisition.

4. Understand risk and how developers predict cost. Trying to predict project costs has become more difficult, from the price of materials to the cost of labor, and everyone is working to keep their financial risk at a minimum. Often, there is a sizable imbalance between the price it takes a contractor to complete a project and the price the contractor bids for the work. Dramatic price fluctuations have caused a great deal of frustration for owners who are confused as to why a project might be so expensive compared to the price of the same project a few months earlier. Different types of projects like design-build and construction management/general contractor, for example, come with different amounts of risk, so it’s important to think through what works best for your project. 

While there’s no crystal ball in the construction industry, common sense planning and following these tips can help mitigate risk, provide confidence to all parties involved, and set your project up for success. 

By Christopher Kester, Sr Estimator, WSB

A constructability review is a useful project management tool that allows a client to “think like a contractor” throughout the design phase of a project. Looking at the buildability of a project, problem-solving cost, and risk in design has numerous benefits, providing clarity for both owners and contractors.

It is especially valuable to projects that have a higher degree of variability, whether in scope, size, location, subsurface conditions, schedule, or material shortages. Reviews consider the unique variables of every project and help better inform an owner of cost and risk, giving them the tools to make the best decisions possible for their individual needs.

Why include constructability review in your project planning? Here are five reasons why it adds value.

Greater Accuracy in Estimating Cost

It’s no mystery to anyone in the construction industry that right now costs are volatile. Whether it’s the price of oil, materials, or supply chain woes, estimating cost as accurately as possible and finding cost savings is critical.

Average prices are often used in our industry to estimate the cost of a project, but these baseline costs are relied upon too often – creating greater risk and opportunities for sizable miscalculation. Just think about the cost of materials and labor in 2021 for a project, and how much those costs have jumped in just one calendar year. Using data that could be as much as 15 months old, in a volatile market, and the significant variability of costs depending on the uniqueness of a project, shows the value of a constructability review and how it goes hand-in-hand with cost estimation.

Mitigating Risk

A constructability review provides value throughout the project’s design iterations from initial concept to final design. Every project involves risk, but the proper feedback during a constructability review can provide information to help the owner/designer better define scope and adjust their design plans and specifications as needed before the bidding process even begins. This allows contractors to better understand what to bid and how they will get paid, reducing their risk.

For example, think about how a contractor might approach a bid for a street reconstruction with no geotechnical report, and therefore not know the subbase conditions or how much pavement and base will need to be removed. That is a risk to the contractor, so they may bid higher to cover that risk. There is also a risk that unsuitable material is found once construction begins, which will increase the price of the work and potentially the schedule of the project. Understand, the contract documents how a contractor gets paid, and any uncertainty will increase pricing.

Mitigating risks should not be seen only as a means to reduce threats, but also as a way to identify opportunities to create positive outcomes. It is essential to analyze and monitor identified risks that could both positively or negatively impact the overall outcome of project. This aspect of a constructability review helps with building a mature risk register and determining evaluation practices to identify threats and opportunities appropriately.

Measure the Risk

Some risks cannot be mitigated or avoided, and a constructability review helps to identify them. The risk is thereby accepted and can be measured and calculated, along with the probability of it occurring

Furthermore, using the Monte Carlo simulation techniques and (PERT) Program Evaluation and Review Technique method to analyze the risks provides precise statistical results that accounts for thousands of potential outcomes. Utilizing these techniques to evaluate budget and schedule risk assists with improving predictability, provides guidance for effective monitor and control practices, and improves the ability to eliminate probable failures or reworks during execution.

Refining Design & Realizing Value Before Construction

Because a constructability review can be used throughout design stages, projects can identify constructability and payment issues before the bidding process which is more time and cost efficient than addressing them in the field with a contractor. Are you using a certain kind of pipe when a less expensive alternative could be substituted? Do your specifications leave a quantity up to each contractor to estimate and bid incidental or lump sum? These types of issues are easy to address throughout the design stages to save headaches down the road.

Especially for government and public entities – if bids come in higher than what was budgeted for, going back to the design process and rebidding will delay construction and add money and time to the project.

Tailoring Constructability Review to the Project

Perhaps most important is that a constructability review is scalable and can be adapted into any project. Whether it’s a high-level, one hour review into a focused risk or a deep dive in every stage of design, owners can integrate a constructability review plan that is tailored to meet their needs. Thinking like a contractor allows the owner to better understand the likely range of project costs before the bidding process begins and to improve the biddability of their plans by reducing the uncertainty for the contractor.

By Michael Rief, Sr Vice President of Construction, WSB

The supply chain is tightly integrated, and when one part of the supply chain faces issues, it can have a domino effect. For those working in construction, supply chain problems have caused project delays, a long wait for and lack of key materials, and frustration over the past year. Unfortunately, it shows no signs of improving in 2022.

With a shortage of labor, shipping delays, and trouble getting materials, we should prepare for our recovery to take longer than many people anticipated. As our industry continues to tackle supply chain problems, there are things construction teams can do to anticipate, innovate, and adapt to the current situation.

Be Flexible Where You Can

Flexibility is key to adapting to supply chain uncertainties. While many contracts require specific materials, if clients and contractors can build some flexibility into the contract to use alternative materials, it’s more likely that a project will be completed on time or without significant delays.

For example, some of WSB’s transportation contracts require a certain kind of seed mix, but those seed mixes may not be available for many months or at all into the foreseeable future. Allowing a substitution that is available and still meets the needs of the project allows us to finish the job sooner and more efficiently.

Consider Buying Hard to Procure Items Sooner

This applies to both construction teams and clients.

If municipalities are planning a project where they know they will need to procure certain items that may be hard to come by, doing so early and paying to store it may be more efficient in the long run and ensure your project won’t face unnecessary delays. Similarly, some contractors are procuring high-risk items and pre-purchasing material for clients, working in storage cost to help prevent delays.

Additionally, as more contractors buy materials in advance, they sometimes find they need to move materials around to different projects that face more critical needs or that have tighter timelines. Being flexible when possible can benefit both contractors and clients.

Manage Risk

With every project, it’s important to manage risk. If cities or contractors purchase hard to procure materials in advance or in bulk, and then find the value goes down in a year, they could be stuck paying to store a material that is worth less than what they paid for it. Each will have to make decisions that work best for their needs and anticipated projects.

Furthermore, building risk management into contracts can be helpful. Whether it’s procurement of materials or more flexibility on timing of projects, thoughtful contract terms can help both cities and contractors, mitigating some risk.

A great example of mitigated risk in many current construction contracts is a provision for fuel cost escalation. If the cost of fuel goes up significantly after a contract is signed, a client may pay more to cover fuel costs. Similarly, if it goes down significantly after a contract is signed, a client may recoup some of those savings. Thinking about how contracts can offer more flexibility in ways that adjust to supply chain and labor issues is something that could offer substantial benefit to all parties.

Since supply chain issues, labor shortages, shipping slowdowns, and numerous other factors are expected to continue creating challenges for the construction industry over the next year, innovation, flexibility, and adaptability can help keep projects moving forward for clients and contractors.