8 De-risking mechanisms for General Contractors

Part 2: Risk Mitigation Strategies for General Contractors and Construction Companies

In Part 1, we discussed the common challenges that general contractors and construction companies face due to incomplete engineering designs, poor constructability planning, and logistical complications. In this section, we will focus on practical and effective risk mitigation strategies that can be adopted to reduce exposure to these issues. By anticipating these risks early and employing the right approaches, contractors can improve project outcomes, reduce delays, and protect their bottom line.

The mess of de-risking construction methodology imposed by poor delivery from engineers.

1. Establishing Early Collaboration and Communication

One of the most effective ways to mitigate risks associated with incomplete design packages is to establish early and consistent communication between contractors, engineers, and stakeholders. This is critical for addressing potential gaps in the design phase before they become larger issues during construction.

• Pre-construction Meetings: Contractors should initiate pre-construction meetings with design teams to review all plans in detail, identify potential discrepancies, and ensure that constructability considerations have been fully integrated into the design. This process allows for critical feedback from the construction side, ensuring that the design aligns with the practical realities of on-site work.
• Design Review Workshops: A collaborative workshop approach involving designers, contractors, and key subcontractors can help identify and address constructability issues early. Contractors can provide insights into potential bottlenecks or sequencing challenges, helping to refine the design and ensure smoother execution.
• Request for Information (RFI) Process: Setting up a clear RFI process from the outset allows contractors to seek clarification on incomplete or ambiguous design elements. This minimizes the risks of errors and rework by ensuring that all critical details are available before construction begins.

2. Adopting Progressive Design Completion

Rather than waiting for the final, fully completed design, contractors can adopt a progressive design completion strategy where they work with phased design releases. This allows construction to begin on elements that are fully designed, while final details for other parts of the project are completed. However, this requires careful management to ensure that the phased releases do not lead to confusion or errors.

• Phased Design Reviews: Contractors can request phased releases of designs for major project milestones. For instance, foundation work could begin while upper structural details are finalized, as long as coordination between the design and construction teams ensures that decisions made in the later phases do not affect the early work.
• Sequencing and Contingency Planning: During early stages of work, the contractor should develop a detailed sequencing plan that includes contingency buffers for elements that are dependent on final designs. This buffer provides flexibility to manage delays in design without derailing the project schedule.

3. Enhancing Design and Document Quality

To mitigate risks related to poor-quality drawings, contractors should implement a robust quality control process for reviewing design documents before they are used on site.

• Drawing Standardization: Encourage design teams to standardize drawings in a way that organizes all relevant information in a single, clear format. A well-structured set of drawings will minimize the need for construction managers or foremen to flip between pages, reducing the potential for errors.
• Pre-Construction Design Review: Contractors should allocate time for an in-depth review of drawings to ensure they are complete, consistent, and logically organized. For critical details like connections, foundation layouts, and material specifications, a checklist can be used to ensure no critical information is missing.
• Digital Platforms and Markup Tools: Utilizing digital document management systems that allow for real-time markups and updates can help ensure that design changes are communicated quickly and clearly. Systems like Bluebeam, Procore, or BIM platforms can track changes, allowing contractors to view the latest revisions without delay.

4. Optimizing Constructability Through Early Input

Designs that fail to account for constructability issues often lead to delays and rework during construction. Mitigating this risk requires involving contractors early in the design phase, allowing them to provide feedback that enhances the practicality of the design.

• Constructability Reviews: Contractors should push for formal constructability reviews as a requirement before the design is finalized. This ensures that the construction process is efficient and avoids unnecessary complexities, such as multiple intersecting critical paths that cause bottlenecks.
• Lean Construction and Value Engineering: Lean construction principles encourage the use of efficient construction methods that reduce waste and improve flow on site. Contractors can provide value-engineering suggestions, optimizing designs to improve constructability, reduce material costs, or simplify labor-intensive tasks. This should be incentivized to ensure both designers and contractors are working towards the same goals of efficiency and cost-effectiveness.

5. Material Availability and Specification Flexibility

Material procurement challenges can lead to significant delays, particularly when specialized or non-standard materials are specified in the design. Contractors can mitigate these risks by advocating for design flexibility and securing materials early.

• Material Lead Time Management: Early engagement with suppliers can help contractors identify potential material shortages and long lead times. This information should be communicated back to the design team so that any materials that are difficult to source can be reconsidered or ordered early enough to avoid delays.
• Standardizing Material and Connection Designs: Whenever possible, contractors should encourage design teams to specify standardized materials and connection details that are readily available in the local market. Standardization not only reduces lead times but also lowers the risks of errors and inefficiencies associated with unfamiliar materials or techniques.

If you can’t standardize, make every effort to simplify!

6. Mitigating Non-Standard Labor Requirements

Designs that include non-standard connections or construction techniques can require specialized labor, increasing the risk of delays and errors during installation. Contractors should mitigate this by ensuring that training and upskilling are accounted for in the project plan.

• Training and Certifications: If specialized labor is required, contractors should plan for early training sessions to ensure field crews are properly skilled. This may include working with design teams to ensure that sufficient lead time is given for training or, if possible, advocating for simpler, industry-standard connection methods.
• Pre-Fabrication and Modularization: Where applicable, contractors can mitigate labor challenges by advocating for pre-fabrication or modular construction methods. These techniques reduce the need for specialized labor on-site and speed up the overall construction process by moving some tasks off-site.

7. Flexible Project Scheduling and Contingency Planning

Given the inherent unpredictability of construction, contractors should always build flexibility into their project schedules to accommodate delays caused by design revisions, permitting issues, or supply chain disruptions.

• Critical Path Analysis and Buffering: Contractors should conduct a thorough critical path analysis early in the project, identifying any tasks that are likely to create bottlenecks. Where possible, buffer time should be built into the schedule, particularly for tasks dependent on the delivery of final design details.
• Phased Construction with Overlapping Tasks: If design or material delays occur, contractors should identify areas where overlapping tasks can be initiated. For example, while awaiting final designs for one area, crews can be shifted to tasks that are already fully designed, maintaining progress and reducing idle time on-site.

8. Improving Client Communication and Expectations Management

To avoid disputes and dissatisfaction, it is crucial for contractors to communicate openly with clients about the challenges and risks inherent in the project from the outset.

• Regular Client Updates: Establishing a communication plan that includes regular updates to the client on design completion, material procurement, and schedule adjustments is essential. This transparency builds trust and allows clients to understand potential risks and delays before they become critical issues.
• Expectation Management: Contractors should set realistic expectations with clients regarding potential risks and the need for flexibility in the schedule. Clearly explaining the impact of design changes, material lead times, or labor requirements can help avoid conflicts later in the project.

By implementing these risk mitigation strategies, general contractors and construction companies can significantly reduce their exposure to the common challenges encountered in the construction engineering industry. Early collaboration, constructability reviews, quality control in design documents, and flexibility in scheduling are key components to achieving better project outcomes.

In Part 3, we will explore how Arch Engineers applies these mitigation strategies to deliver effective, tactical solutions that streamline construction processes, minimize risk, and ensure project success in even the most challenging environments.