ENGINUITY TUTORIAL Handling Job Delays Copyright Virtual Management Simulations Handling Job Delays The effectiveness of labour allocated to a job by the Construction Manager can be adversely affected by a number of factors, such as : The expertise of the project manager on the site Labour relations Overmanning of the site There is also another key factor that the Construction Manager needs to take into account, and that is delays to the job. We will at how the Construction Manager can mitigate against the consequences of job delays. Handling Job Delays Navigate to "Main menu/Making decisions/Job progression decisions/Display job details” Consider the following example. Job 52 should have completed in period 6, when 90 labourers were allocated to site. However, the effective level of labour was reduced by 2.5 men due to delays. This resulted in the job being 99.5% complete at the end of period 6, and not quite completing. We will now look in more detail at what causes the delays, and what action could have been taken to mitigate against their affect. Handling Job Delays Navigate to "Main menu/Making decisions/Job progression decisions/Display job details/Job information/Risk and delay analysis” DELAYS ARE CAUSED BY RISKS STRIKING. The Risk and delay analysis for job 52 reveals that the delays were caused by the risk ‘Personnel issues’ striking in period 6, the second period of the job. KEY POINTS More than one risk can strike in any period of a job, but they only occur during the planned duration of a job, and not if it overruns. Completing a job at least one period early can prevent risks striking in future periods. Handling Job Delays Navigate to "Main menu/Making decisions/Job progression decisions/Display job details” All labour on site incurs site cost, including ineffective labour, and hence the cost of any delays is incorporated into the site cost for the period. Handling Job Delays Delays that occur in the periods before a job is due to complete are not such a concern, apart from the additional site cost. HOWEVER, delays that occur in the period a job is due to complete can be costly because they can prevent a job from completing, with associated late completion penalties, and a waste of resources in terms of the further labour and a project manager to complete the job. Gong back to the previous period, how could the Construction Manager adjust the labour on site for job 52 to mitigate against the affect of any potential delays ? Handling Job Delays Navigate to "Main menu/Making decisions/Job progression decisions/Display job details/Job information/Risk and delay analysis” The Risk and delay analysis for job 52 reveals that there are 2 risks that have not yet struck : ‘Personnel issues’, which has a ‘high’ chance of occurring ‘Site contractor co-ordination issues’, which has a ‘low’ chance of occurring Although both risks could strike, and potentially delay job 52 in period 6, it is decided that the threat of ‘personnel issues’ is most likely, and the Construction Manager decides to take action in case this happens. However, how much is the current labour level of 90 labourers to be increased by to offset any potential delay ? Handling Job Delays Navigate to "Main menu/Making decisions/Job progression decisions/Display job details/Job information/Risk and delay analysis” The DELAYS SO FAR (ALL JOBS) reveals that ‘personnel issues’ have already caused delays of between 2.7 and 2.9% on other jobs, and this is a good guide to the likely affect if ‘personnel issues strikes on job 52. Of course, ‘personnel issues’ may not have caused any problems so far on other jobs, and in this case the Construction Manager would have to make an educated guess on the likely affect. As time goes by the potential delays can be more accurately assessed as more risks occur. Job 52 currently has 90 labourers on site, and the Construction Manager decides to assume a 3% reduction may be possible, and adjusts the labour to 93 labourers. Handling Job Delays The adjusted labour level of 93 labourers should compensate if the risk ‘personnel issues’ strikes, and enable the job to complete on time. Of course, if the risk ‘site contractor co-ordination issues’ occurs this could prevent the job completing, but it was a ‘low’ risk, and the Construction Manager decides to take a chance this will not occur. KEY POINTS If the delays do not occur the job will complete earlier than the end of the period, and as all labour is retained on site until the end of the period when a job completes, there will be additional labour costs due to the ineffective labour. However, at least the job will have completed.
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