Level: Intermediate
TCM Section(s)
11.3. Information Management
7.2. Schedule Planning and Development
Venue: 2024 AACE International Conference & Expo
Abstract: The construction industry, renowned for its inherent uncertainty, faces challenges in ascertaining whether the secured project starts with an excessively ambitious contract duration and estimates. Traditionally, project durations are negotiated during the preconstruction phase, relying on performance and data from similar projects, typical production rates, duration estimates from subcontractors and vendors, and preconstruction leaders’ skills and expertise. However, this practice has shown a trend of overaggressive and unrealistic duration estimates, resulting in loss of repeat owners/contracts, workforce attrition, negative impacts on the bottom line and ultimately leading to a reputational risk for construction companies. To address these issues, a paradigm shift is underway, with contractors now adopting different data analytics techniques on historical data to develop more achievable plans with owners, specifically during the preconstruction phase.
This shift has proven to be a successful strategy while negotiating contract duration with the owners and improves the level of confidence for contractors before and during contract execution. Also, leveraging the information from the real-time data analytics throughout the lifecycle of a construction project allows contractors to accurately predict schedule variances, identify schedule compression, measure project performance, and make informed decisions to overcome events or changes that might lead to schedule delays. Facilitating a transparent, data-driven approach enables contractors to build robust relationships with owners, fostering collaboration with stakeholders to effectively manage expectations and achieve optimal project success. This paper delves into how construction firms leverage varied data analytics techniques across key WBS elements at different stages of the life cycle to derive a realistic but achievable duration to bolster their competitive advantage and enhance overall project success.
TCM Section(s)
11.3. Information Management
7.2. Schedule Planning and Development
Venue: 2024 AACE International Conference & Expo
Abstract: The construction industry, renowned for its inherent uncertainty, faces challenges in ascertaining whether the secured project starts with an excessively ambitious contract duration and estimates. Traditionally, project durations are negotiated during the preconstruction phase, relying on performance and data from similar projects, typical production rates, duration estimates from subcontractors and vendors, and preconstruction leaders’ skills and expertise. However, this practice has shown a trend of overaggressive and unrealistic duration estimates, resulting in loss of repeat owners/contracts, workforce attrition, negative impacts on the bottom line and ultimately leading to a reputational risk for construction companies. To address these issues, a paradigm shift is underway, with contractors now adopting different data analytics techniques on historical data to develop more achievable plans with owners, specifically during the preconstruction phase.
This shift has proven to be a successful strategy while negotiating contract duration with the owners and improves the level of confidence for contractors before and during contract execution. Also, leveraging the information from the real-time data analytics throughout the lifecycle of a construction project allows contractors to accurately predict schedule variances, identify schedule compression, measure project performance, and make informed decisions to overcome events or changes that might lead to schedule delays. Facilitating a transparent, data-driven approach enables contractors to build robust relationships with owners, fostering collaboration with stakeholders to effectively manage expectations and achieve optimal project success. This paper delves into how construction firms leverage varied data analytics techniques across key WBS elements at different stages of the life cycle to derive a realistic but achievable duration to bolster their competitive advantage and enhance overall project success.