March 20, 2006

E-Mail This Article Thomas Frisby Thomas Frisby has extensive experience as a claims consultant and has been an expert on projects such as the Aloha Stadium, Bad Creek Pump Storage, Central Arizona Project, Imperial Valley Small Energy and representation of Minoru Yamasaki (designer of WTC). He has authored two books for R.S. Means and is a frequent lecturer at universities and construction associations. Mr. Frisby is a certified mediator and may be reached at thomasfrisby@msn.com. The Frisby Group

By Tom Frisby

THE 12 STEP APPROACH TO EFFECTIVE CONSTRUCTION CONTRACTING, PART 2

Step seven is the three-step quality approach, which is an effective process for building in quality (as opposed to inspect and correct) as well as a tool for the contractor and the owner’s representative to work together in preventing problems. The three-step approach begins with a “preparatory phase” in which the contractor’s supervisory personnel and an owner’s representative meet before beginning new tasks (such as foundations, framing, etc.) and discuss the requirements of the plans. In this manner, there is a clear understanding of the requirements, and any previously undiscovered conflicts in the plans can be detected and resolved before they affect the installation crew. The contractor should discuss how he intends to go about the work and the owner’s representative can make input, understanding that “means and methods” is the responsibility of the contractor.

After the work begins, there is an “interim” step in which the parties reconvene and review how the construction is proceeding so corrections can be made mid-stream instead of during the final inspection. The third step is the Final Inspection, which should be just that—a final inspection, not a prelude to a large punch list.

Good workmanship is a key to team building—good drawings, good installation, good decision making, good scheduling. Good work on your part often inspires good work on the part of the other parties as well. Everyone wants to be a part of a great project, of a winning team.

Step eight is a system for conflict management. At the partnering meeting, the parties will discuss how to handle conflicts that may arise. The contractor may believe that there is a conflict in the drawings while the designer disagrees. These differing opinions are inevitable. Regardless, they should both commit to developing a conflict resolution process that quickly deals with problems and maintains the momentum of the project. Too often, delays, out-of-sequence work and accelerations are by-products of dilatory decisions over “two-bit issues” and impair the relationships on the project.

Develop a decision-making tree early on to get the parties to work out their differences and if all else fails, agree to submit to third-party mediation. The best mediation arrangements are those in “real time” so the problem is quickly resolved and not allowed to fester.

Step nine requires the team to be better at the end of the project than it was when it began. (This commitment should take place at the partnering meeting.) Monthly team evaluations are important in identifying whether the early objectives established at partnering are being met. This is also an opportunity to identify “rocks in the road,” challenges and areas that need improvement. This is also the time to identify ways to work together toward improvement. Honest evaluations of “team” performance are absolutely essential in a collaborative approach to construction. It is equally important for team members to “attack issues, not people” in these meetings. Simply identifying the challenge is not enough—a team should be assigned to develop effective measurable solutions and then monitor the progress.

The 10^th step is really a ubiquitous concept that transcends the project. Supervisory personnel must be trained in concepts of team play. The divisive attitude of “us and them” and “these are lousy plans” or “the contractor is gouging us on change orders” must be eschewed. The principal players—owner, designer, contractor, etc.—must indeed be champions of the team approach. Too often, an officer of one of the parties returns to the office after a partnering meeting and joins in support with other employees who bash one or both of the other parties. And so the adversarial and hostile Balkanization process continues.

Craft contractors must learn to work with other craft contractors, coordinating work areas and space, and respecting the material of the other trades.

And contractors must realize their contracts require competent supervision and craftsmen on the job and not use the excuse, “Well, we just can’t get good workmen anymore.” A team destroyer makes excuses to justify poor workmanship or delays.

Remember, quality is an essential ingredient of pride, and pride is an essential ingredient of “team.” Management should undertake recognition programs (on-site barbecues, pats on the back, etc.) for we must build team unity at the field level as well as the management and principal levels. All the foregoing recommendations will be in vain if the team, or the project itself, breaks down at the field level. Any program related to collaboration and team building must address its field supervision and craftsmen.

Number 11, like number 10, is not a separate and distinct step, but rather a way of life. The glue of any relationship is trust and the acceptance of accountability for one’s responsibilities. These issues should be raised in the prequalification process (and frankly, the contractor should consider these qualities in the owner and designer before deciding to work with them). Make trust and accountability guiding principles throughout the entire project. Roy Disney said that once your guiding principles and values are in place, you never really have to make a decision again. It is easy to fall off the wagon when making a choice between values and dollars, but the best projects are designed and built by teams that are absolutely committed to these principles and live them rather than just talk about them.

Believe it or not, at the end of most great projects, we hear, “Well, I would like to do that again with the same people. That was fun!” On bad “Balkanized” projects, we hear, “Well, the construction industry just isn’t fun any more!”

So, find out a way to enjoy yourselves, to have some fun, play some golf, have a pig pickin’, or roast some oysters, and share a story or two.

Editor’s note: Tom Frisby’s first six steps appear in our March 20 issue of Construction Claims Advisor.