BETTER JOB SITE PRODUCTIVITY [NCLBGC 2 Hours Elective C.E.] COURSE - - PDF document

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BETTER JOB SITE PRODUCTIVITY [NCLBGC 2 Hours Elective C.E.] COURSE - - PDF document

7/20/2020 BETTER JOB SITE PRODUCTIVITY [NCLBGC 2 Hours Elective C.E.] COURSE DESCRIPTION The Purpose of this course is to provide help in Job Site Productivity. This course will survey processes pertaining to Employees, Supervisors and


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BETTER JOB SITE PRODUCTIVITY

[NCLBGC 2 Hours Elective C.E.]

COURSE DESCRIPTION

▪ The Purpose of this course is to provide help in Job Site Productivity. ▪ This course will survey processes pertaining to Employees, Supervisors and Subcontractors. ▪ It will show a prominent way to become an efficient and successful builder.

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THE ELEPHANT IN THE ROOM

  • Average annual increases in productivity were between 2-3% for all US

industries throughout the 1990’s.

  • However, the construction industry was only 0.8%. Add that labor &

material costs have always steadily increased as well  Negative pressure to make or increase profits for the construction industry.

AN INDUSTRY-WIDE ISSUE

Why hasn't the Construction Industry been able to increase productivity? The construction business is unique regarding productivity related issues as compared to other industries. ▪ No two jobs are the same ▪ Each job has a unique location ▪ The work crews and subcontractors change from job to job

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WHAT TYPICALLY NEEDS TO BE ADDRESSED

Labor productivity

▪ Typically the first item that comes to mind. ▪ A major and continual anxiety to construction managers and supervisors who are responsible for the control of costs.

Material handling

▪ Usually the next item that is of concern and many times overlooked. ▪ Material management includes the procurement of the items, inventory control, shop fabrication, and field servicing. Any of these processes can be analyzed to see if improvements can be made.

MEASURING LABOR PRODUCTIVITY

The construction industry has the following properties: ▪ Large Numbers of Contractors equals Strong Competition ▪ Profit Margins are Small ▪ Small Errors May Eliminate Profit

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MEASURING LABOR PRODUCTIVITY

Productivity in construction is often broadly defined as output per labor

  • hour. How is labor productivity measured?

Unit of Dollars of Output Labor = Person Hours of Input + Person Hours of Redo Work

LABOR CHARACTERISTICS

Labor characteristics that affect job site productivity are:

▪ Age (what physical attributes are required?) ▪ Experience of workers / Pace at which they work ▪ Equipment ▪ Worker interaction ▪ Supervisor/Leadership’s ability to motive and influence the level of productivity

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CAUSES OF NON-PRODUCTIVE WORK TIME

▪ Waiting for materials, labor or equipment ▪ Workers waiting for instructions ▪ Unnecessary movement of & materials ▪ Inaccurate information ▪ Change Orders ▪ Punch lists ▪ Theft, vandalism and waste ▪ Accidents ▪ Substance Abuse ▪ Redo work ▪ Lack of job site supervision ▪ Late start and early quitting

TYPICAL CONSTRUCTION WORKDAY

Substance Abuse 2% Accidents 3% Theft / Waste 3% Punch List 3% Changes 5% Inaccurate Information 5% Unnecessary Movement 6% Instructions 7% Waiting 14% Redo Work 2% Productive Work 50% Substance Abuse Accidents Theft & Waste Punch List Change Orders Inaccurate Info Unnecessary Movement of Tools/Materials Waiting for Instruction

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WAYS TO INCREASE PRODUCTIVITY

▪ Work Harder ▪ Work Smarter ▪ Improving Management Practices

JOB SITE WORK CONDITIONS

▪ Job size and complexity ▪ Job site accessibility ▪ Equipment utilization ▪ Local climate ▪ Local cultural characteristics

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PLANNING SUCCESSFUL PROJECTS

What is a successful project?

▪ Completed within financial budget ▪ Meets or beats the project duration schedule ▪ Constructed properly to meet quality standards expected ▪ No accidents occurred — free of injuries

PLANNING SUCCESSFUL PROJECTS- CONTINUED

Some of the tasks that will need accomplishing:

▪ Planning production budgets—supervisor meets with estimator for assumptions and contract document information ▪ Scheduling the major work activities ▪ Reviewing project contract documents:

▪ Drawings, Specifications (quality), General Conditions, Supplementary Conditions (special work), Addendum, and Agreement Form

▪ Pre-ordering long lead time materials ▪ Organizing the paper work flow

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QUIZ QUESTION #1

Approximately what percentage of time is the construction workforce productive? Choose one:

  • 30%
  • 50%
  • 70%
  • 90%

QUIZ QUESTION #1 – ANSWER

Approximately what percentage of time is the construction workforce productive? 50% - is the correct answer

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COST CONTROL OF LABOR PRODUCTIVITY

▪ Construction is a people business

 The largest risk and the biggest problem is labor.

▪ Cost control will help to deliver a profit

 The goal is to detect any deviations, and then follow up with a plan to correct this.

▪ Job cost system

 With no way of measuring performance, how do you know if the estimated

costs are accurate?

▪ Need to control labor and overhead

 Too much work performed too fast and/or too cheap has forced many

contractors into bankruptcy.

COST CONTROL OF LABOR PRODUCTIVITY

  • CONTINUED
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COST CONTROL OF LABOR PRODUCTIVITY

  • CONTINUED

Tracking by Labor Hours:

COST CONTROL OF LABOR PRODUCTIVITY

  • CONTINUED

Tracking by Labor Dollars:

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COST CONTROL OF LABOR PRODUCTIVITY

  • CONTINUED

Tracking by Labor Unit Costs :

COST CONTROL OF LABOR PRODUCTIVITY

  • CONTINUED

Reasons for Deviations in Job Cost Control

▪ Productivity Issues ▪ Estimating ▪ Change Orders ▪ Changed Conditions ▪ Poor Record Keeping

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COST CONTROL OF LABOR PRODUCTIVITY

  • CONTINUED

Record Keeping Best Practices

▪ Form completion / accountability ▪ Mandatory daily record keeping and transmittal ▪ Simple forms  Check boxes as opposed to narratives ▪ Easy to understand  A reference legend and clear instructions

COST CONTROL OF LABOR PRODUCTIVITY

  • CONTINUED

Other Benefits of Job Cost Tracking

  • Helps to establish a benchmark for the employees

 Form a goal to get something done before it will start costing the

company money.

  • Measurement of Employee ability

 They can take pride in reaching the goal.  Measurement proves to management that the workers are doing a

good job.

  • Pinpoint problems during Estimating
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PERCEPTIONS AND REASONS FOR FAILURE TO TRACK FIELD JOB COST DATA

▪ Relay to workers that this is necessary in producing better and more accurate estimates ▪ Job costing needs to be thought of as a motivator ▪ Every estimate should have input from the production people before it goes out ▪ Take time in implementing a job cost control system ▪ Do not pressure field people ▪ Keep the reporting system simple or easy ▪ Constantly reinforce the importance to the field people

QUIZ QUESTION #2

Contractors largest risk and biggest problem is the management of people (labor) —True or False?

  • True
  • False
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QUIZ QUESTION #2 - ANSWER

Contractors largest risk and biggest problem is the management of people (labor) —True or False?

True – is the correct answer

YOUR PEOPLE - WORKING FOR A COMPANY OR FOR THE PROJECT?

▪ Employee Turnover ▪ Individual Initiative & Ambition ▪ Personal Attitude

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WHAT ARE YOUR EMPLOYEE MOTIVATION OPPORTUNITIES?

Compensation Plans, Role Definitions, Style of Management, and Company Activities

▪ Physiological Needs ▪ Safety Needs ▪ Social Needs ▪ Esteem Needs ▪ Self-Actualization

Every individual is unique in what motivates them.

YOUR EMPLOYEE MOTIVATION OPPORTUNITIES— CONTINUED

Journeyman Construction Worker Needs:

▪ Pride in Work ▪ System for measuring performance ▪ System for effective communication ▪ Monetary Benefits

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SUPERVISORS AND THEIR ROLE IN PRODUCTIVITY – CONTINUED

Constantly Ask:

  • How many hours of punch work were expended?
  • How many occurrences of double material handling were there?
  • Is there more productivity in the morning or afternoon?
  • Is productivity better before or after payday?

SUPERVISORS AND THEIR ROLE IN PRODUCTIVITY – CONTINUED

Constantly Measure:

  • Distance material is moved?
  • Distance to the tool trailer?
  • Time spent waiting for material?
  • Number of hours expected on redo work?
  • Occurrences of theft, vandalism or other waste?
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SUPERVISORS AND THEIR ROLE IN PRODUCTIVITY – CONTINUED

Be the Second Line of Defense:  Identify the existing method of work  Plan an alternative method  Perform a cost benefit analysis; total-cost, unit-cost, and productivity calculations between the existing and alternative methods.

SUPERVISORS AND THEIR ROLE IN PRODUCTIVITY

A supervisor should have the following abilities:

1) Knows the construction process of the trade(s) being supervised 2) Monitors the workers’ productivity, cost and risk 3) Monitors equipment productivity, cost and usage 4) Critiques & praises the work products and workers 5) Maintains a fair & respectful attitude towards workers & subs 6) Has the ability to track and record work progress data 7) Is open to listening to other ideas & opinions 8) Can make a plan & prioritize tasks 9) Emphasizes both a high quality work product and safe working conditions 10) Is a team player and able to motivate others without being arrogant

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MONEY— AND THE JOB

Everything on a construction project involves spending — labor, materials, equipment and overhead. Supervisors think their responsibilities are supervising: framing, hanging drywall, or any other construction activity.

  • But-

In reality they are supervising the spending of money.

MEASURING WORK PERFORMANCE

A method to calculate needed production per day or other time period:

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MEASURING WORK PERFORMANCE - CONTINUED

Finally, the number of crews required can be calculated:

SYSTEM FOR EFFECTIVE COMMUNICATION

▪ Any record keeping on the jobsite should be as easy as possible, with check boxes and pre-printed work codes on the sheets to record labor hours. ▪ Any individual that is required to fill out forms should have an explanation as to how the data is used and shown an example

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MONETARY BENEFITS

Remember…

Money is typically only a maintenance factor and not a motivational factor for workers.

QUIZ QUESTION 3

A construction worker needs are which of the following:

I Saturday & Sundays off of work Il System for measuring performance III System for effective communication IV Paid holidays

  • I and Il
  • Il and Ill
  • I, Il and Ill
  • Il, Ill and IV
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QUIZ QUESTION 3 - ANSWER

A construction worker needs are which of the following:

I Saturday & Sundays off of work Il System for measuring performance Ill System for effective communication IV Paid holidays

Il & Ill – is the correct answer

QUESTION #4

Typically, a construction worker's main motivation is how much money they are paid per hour — True or False?

  • True
  • False
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QUESTION #4 - ANSWER

Typically, a Construction worker's main motivation is how much money they are paid per hour—True or False? False – is the correct answer

SCHEDULE —A PROJECT ROAD MAP

A formal schedule should include:

▪ Projects that are divided into a series of individual work tasks ▪ Tasks should be defined by duration and crew size ▪ All tasks should be linked together in a logical sequence ▪ Provide for inevitable delays and identify available float time ▪ Determine the major tasks productivity ratios

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OPTIMUM PRODUCTIVITY TIME DURATIONS

The following is a formula to calculate optimum time durations: The following example would be to prepare and repair walls/ceilings in 35 hotel rooms or 31,640 sq. feet. How many days will this activity require?

OPTIMUM PRODUCTIVITY TIME DURATIONS — CONTINUED

▪ Contingency Factors  Need to plan for the unexpected ▪ Subcontractor Input  Coordinate schedules between the various trades throughout the progress of the project ▪ Contractual Agreement  For periodic written updates ▪ Accountability  Increased attention to detail and performance ▪ Product Selection Schedule  To mitigate selection delays

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QUESTION #5

Making it a requirement that a project planning schedule be submitted with the bid from your subcontractors is not a good idea as this will make them unhappy and they will not want to work for you—True or False?

  • True
  • False

QUESTION #5 - ANSWER

Making it a requirement that a project planning schedule be submitted with the bid from your subcontractors is not a good idea as this will make them unhappy and they will not want to work for you— True or False? False – is the correct answer

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ELIMINATION OF UNPRODUCTIVE TASKS AND IMPROVEMENTS

Choose or focus on one problem — the one causing the most nonproductive time AND that can be corrected quickly and easily measured.

ELIMINATION OF UNPRODUCTIVE TASKS AND IMPROVEMENTS – CONTINUED

IMPORTANT : The defect time card is to be used for improvement and

not to blame employees. ▪ Analyze the defect — what is the cause of the problem? ▪ Develop a plan correction — what are the means for improvement?

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QUESTION #6

A defect time card or schedule is an excellent way to:

▪ I - track defects ▪ Il - who is to blame for the problem Choose the best answer from the following:

  • a.) I
  • b.) Il
  • c.) I and ll
  • d.) I or Il

QUESTION #6 - ANSWER

A defect time card or schedule is an excellent way to:

▪ I - track defects ▪ Il - who is to blame for the problem I – is the correct answer

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SUBCONTRACTORS — MANAGING PRODUCTIVITY

  • Be discerning in recruiting subcontractors
  • Require performance management procedures — schedules,

productivity calculations, etc. by contract

  • Consult the subcontractors

a) Detailed and resource loaded schedules as opposed to ambiguous ones. Rough plumbing — lst floor— 3 days with 2 men, as opposed to "Rough Plumbing 14 days.

b) Specify the minimum number of work and/or length (days) of any activity used for schedules. c) Detailed list of daily work activities with quantity of labor, crew size, etc.

SUBCONTRACTORS — MANAGING PRODUCTIVITY – CONTINUED

Example of a subcontractor daily planning form:

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QUESTION #7

A subcontractor that knows he is being closely monitored and held accountable will increase their level of attention to performance — True or False?

  • True
  • False

QUESTION #7 - ANSWER

A subcontractor that knows he is being closely monitored and held accountable will increase their level of attention to performance — True

  • r False?

True – is the correct answer

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QUESTION #8

Performance management procedures should be required by contract from all subcontractors. These schedules and productivity calculations should include the following: I) Detailed and resource loaded schedules Il) Specify the minimum number of work activities and/or length (days)

  • f any activity

Ill) Detailed list of daily work activities with quantity of labor, crew size, etc.

  • I and Il
  • Il and Ill
  • l, Il and Ill

QUESTION #8 - ANSWER

Performance management procedures should be required by contract from all subcontractors. These schedules and productivity calculations should include the following: I) Detailed and resource loaded schedules Il) Specify the minimum number of work activities and/or length (days)

  • f any activity

Ill) Detailed list of daily work activities with quantity of labor, crew size, etc. l, Il and Ill – is the correct answer

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COMMUNICATIONS ON THE JOB SITE

Maintain a bulletin board with the following:

  • Master job schedule micro
  • Subcontractor micro schedule for their respective phase (plumber,

electrician, etc.)

  • Personal Boards — letter of praise, jokes, comic strips, time when an

employee or subcontractor went the extra mile

  • Cost of Employees – display a typical cost of various employees with

burdens, taxes, insurance.

  • Overhead and Recovery Goals — again emphasizing costs to all

participants

EXPRESSING APPRECIATION EXAMPLES

▪ Thank You Notes ▪ Thank You Ads ▪ Annual Subcontractor Luncheon

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COMMUNICATIONS ON THE JOB SITE - CONTINUED

▪ Keeping anger and hostility to a minimum keeps everyone focused on getting the job done. ▪ Require each successive subcontractor to sign off before they begin the next phase. ▪ Line tubs and shower floors with or pad remnants to add chips and stains from

  • thers. Cover tile and countertops with ½” foam insulation board to fend off the

inevitable hammer drops, ladder marks, etc. ▪ Interior floor surfaces can be protected by giving the workers hospital booties to wear over their shoes/boots while inside. ▪ Brick pavers can be protected from asphalt installation debris by coating pavers with graffiti protection material.

COMMUNICATION WITH SUBCONTRACTORS

▪ Deal with any problem as quickly as possible — don't delay! ▪ The Subcontractor should not meet with the owner alone to resolve problems ▪ Use positive dialogue — complement as much or more than you criticize ▪ Listen as well as talk — encourage subs to submit their ideas to solve problems (A Mouse Trap) ▪ Try to structure a win-win situation ▪ Use signage for success, recognition, and achievement ▪ Explain why instructions are being given and the benefits to all if achieved

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COMMUNICATION WITH SUBCONTRACTORS — CONTINUED

Other job site signage for communication could be:

▪ Clean Up After Yourself ▪ You Represent Your Work ▪ Think Before You Do ▪ Remove Shoes (job sites with newly finished interior floors) or ▪ Wear Protective Booties

FINISHING JOBS AND OVERCOMING SLOWDOWNS

▪ High Production Supervisors vs. Finish men / crews ▪ Always have a finish crew in place

▪ Have two or three main crews that start and almost complete a job. ▪ Have a smaller crew comes in and finishes (punches) the work.

▪ Punch items ID’ed on post-it-notes or colored painters tape. ▪ Break up long punch list line items into smaller groups of tasks that are only applicable to that trade

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HIRING LABOR

▪ What are the consequences of not taking the time to hire right the first time?  Anywhere from $1,000 to $10,000. ▪ HR Trick of the Trade  Make the interviewee/applicant write things

  • ut

HIRING LABOR- CONTINUED

Interviewing — divide it into two parts:

1) Technical Credentials 2) Company Fit

  • Why are you interested in this job and this company?
  • What things disturb you the most?
  • How do you get along with people you dislike?
  • What do you like dislike about your current supervisor?
  • What motivates you to make your best effort?
  • What are your plans and dreams for the future?
  • Describe a situation that could happen to this employee when
  • working. Ask them how they would handle it?
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WAGES

▪ Review each job description as to the value and profitability to your company. You cannot afford to overpay someone even if that person has been with you for 20 years. ▪ If the wage is at the top of the pay scale — how do you recognize and give an extra reward?

WAGES – CONTINUED

Overtime —US Department of Labor exempts only four types of jobs from qualifying: executive, administrative, professional, and outside sales.

  • Executive — owner, manager, superintendent, the primary duty is to manage
  • Administrative — must directly relate to management or general business
  • perations. Uses discretion or judgment in the performance of intellectual work.
  • Professional has advanced knowledge acquired by specialized study. Work

requires discretion and judgment, is intellectual, and results are not standardized.

  • Outside sales— employee must be away from the place of business making sales
  • r getting orders.

All other positions require overtime pay!

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TRACKING HOURS & TRAVEL TIME TO MINIMIZE UNPRODUCTIVE TIME

  • Foreman reports ALL arrival and departures from various sites

▪ Issue GPS-tracking if you suspect any dishonesty

TRACKING HOURS & TRAVEL TIME TO MINIMIZE UNPRODUCTIVE TIME

Travel Time Cost = ($ per Mile) x (# of Employees) x (Extra Miles) x (# of Days) Travel Time Cost = ($1.00) x (4 Employees) x (40 miles round trip) x (28) Travel Time Cost = $4,480

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TRAINING OR PAYING FOR REDO WORK?

▪ New employees are expected to learn by trial and error

▪ Most companies lack a formal training program

▪ Most managers claim to want self-managed employees

▪ Training is the only way to achieve this goal without the lengthy learning process by trial and error

▪ Most feedback to employees is negative due to the employee making a mistake ▪ Confusing instructions and inconsistency

▪ This further the needs for formal onboarding (check out what some of your local trades unions may be doing)

TRAINING OR PAYING FOR REDO WORK? – CONTINUED

▪ People learn in different ways: by listening, by seeing, by touching or handling, or having to move around and do things. ▪ Any training materials should mostly consist of checklists, bulleted itemizations, flowcharts, stick or cartoon drawings. ▪ Keep the textbook material to a minimum. ▪ The easier information is to understand, the easier it is to learn.

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REVIEW THE PROJECT FOR PRODUCTIVITY DEVIATIONS

When the project is completed it should be analyzed for strengths and weaknesses. This should include:

  • Description of the problems and how they were resolved
  • Steps to avoid the same issues in the future
  • Construction cost line items that were over-budget — explain deviation
  • Steps to improve productivity for over-budget items
  • Construction cost line items that were under-budget - explain deviation
  • Steps to repeat the same superior productivity for under-budget items
  • Did the subcontractors perform well?
  • Steps to improve subcontractor productivity in future projects
  • Were the material suppliers able to deliver on time and follow delivery

details?

SUMMARY

▪ Contractors are challenged by strong competition, small profits and the chance that small errors will reduce any profit. ▪ By improving productivity on the jobsite by only a few percentage points you will gain a competitive edge.

▪ This small increase in productivity should be achievable due to the fact that 40% to 60% of a workday is unproductive.

▪ You can work harder, smarter and improve management to increase productivity. ▪ You cannot eliminate or improve a defect unless you know the extent

  • f the defect and what caused it.
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SUMMARY – CONTINUED

1.) Choose or focus on one problem — the one causing the most nonproductive time AND that can be corrected quickly and easily measured. 2.) Analyze the defect—what is the cause of the problem? 3.) Develop a plan for correction — what are the means for improvement? Require performance management procedures—schedules, productivity calculations, etc. by contract Important for the subcontractors to be aware that the crew’s efforts will be monitored frequently (daily) and held accountable. This fact will raise their level of attention to better productivity performance.

THE END OF PRESENTATION

Thank You!

Questions?