Managing a T&M job

[mull982]

I am working on a project where the electrical contractor has left site with work uncompleted (contract issues) and we are bringing in another contractor to finish the job on a Time and Material basis. There is probably about 150k - 200k of work left to be done.

I have been tasked with overseeing the new contractors work and was hoping to have a few questions answered or suggestion on the best way to effeciently manage T&M work to get the work done quickly but keep costs minimal.

1) What is the best way to monitor time spent. On a job this big it will be difficult to sign time sheets accounting for 25+ contract employees on a daily basis, so what is the best way to monitor time spend on the job? Would a timesheet on a weekly basis be better? What the best way to account for all workers?

2) What is the best way to account for material used to make sure the contractor is not purchasing any unnecessary material. Most likely all material reciepts will be handed in at the end of the job, but how can we monitor the material on a rolling basis to keep track of the job cost? Get weekly material reciepts?

3) What is the best way to keep track of contractor screw ups that lead to additional man hours. For instance if the contractor spends 20hrs installing cable only to find out afterwards that the cable was knicked during install and needs to be re-pulled, how do you deal with the additional time wasted on having to re-install this cable? I would think that this additional time should not be charged by the contractor? What is the best way to deal with these situations up front

4) We most likely will get a quote with a price not to exceed. What is typically done when the price not to exceed is reached but more work remains? Should you discuss with contractor reasons for not having work completed? Should you have the contractor provide a schedule and timeframe up front with completion dates and milestones that the contractor should be held accountable for meeting?

5) How should delays be handled that are caused by contractor? What about by others such as client?

I appreciate any experience or advice that anyone can offer.

 

[ceb58]

I am working on a project where the electrical contractor has left site with work uncompleted (contract issues) and we are bringing in another contractor to finish the job on a Time and Material basis. There is probably about 150k - 200k of work left to be done.

I have been tasked with overseeing the new contractors work and was hoping to have a few questions answered or suggestion on the best way to effeciently manage T&M work to get the work done quickly but keep costs minimal.

1) What is the best way to monitor time spent. On a job this big it will be difficult to sign time sheets accounting for 25+ contract employees on a daily basis, so what is the best way to monitor time spend on the job? Would a timesheet on a weekly basis be better? What the best way to account for all workers?

2) What is the best way to account for material used to make sure the contractor is not purchasing any unnecessary material. Most likely all material reciepts will be handed in at the end of the job, but how can we monitor the material on a rolling basis to keep track of the job cost? Get weekly material reciepts?

3) What is the best way to keep track of contractor screw ups that lead to additional man hours. For instance if the contractor spends 20hrs installing cable only to find out afterwards that the cable was knicked during install and needs to be re-pulled, how do you deal with the additional time wasted on having to re-install this cable? I would think that this additional time should not be charged by the contractor? What is the best way to deal with these situations up front

4) We most likely will get a quote with a price not to exceed. What is typically done when the price not to exceed is reached but more work remains? Should you discuss with contractor reasons for not having work completed? Should you have the contractor provide a schedule and timeframe up front with completion dates and milestones that the contractor should be held accountable for meeting?

5) How should delays be handled that are caused by contractor? What about by others such as client?

I appreciate any experience or advice that anyone can offer.

OK, I will throw my $0.02 in
#1 punched time cards turned in weekly for every one working on the job plus maybe a % of that total time for contractors office personal handling admin. work for the project.
#2 Ask for a material breakdown weekly. Keeping in mind the contractor may/should be looking ahead to get material on site for the next phase of installation.
#3 That's a good one. Something that needs to be addressed up front and in writing. But he should not be held responsible for other contractor screw ups that he encounters and causes extra time to correct but it should be brought to your attention right away so adjustments can be made.
#4 A time line would be a good thing to have that way you and the contractor can see where you are and where you should be. With a variance for weather, other trades not complete with there task and so on
#5 If the contractor were held up by other clients or trades then that is no fault of his own. He could move to other things but allowances for remobilization and time line completion would need adjustment.
Have a meeting with the contractor every week. Decide on what day you would want to see the time cards and material list. Make the meeting for the same day and time every week. Period. That way you know and he knows on Thursday morning at 10:00am ( or what ever day and time) that you will meet to go over the schedule and progress of the project, turn in time and material and if there is any discrepancies they can be resolved then.

 

[charlietuna]

I have done it. $200K isn't that many days when your talking a 25 man crew. Daily time records isn't that much of a problem. Break the men into crews with foremen. Have the foreman or leadman, track time and material daily. Your job is to oversee and iron out the problems keeping the job on track and keep the materials available.

 

[AV ELECTRIC]

Maybe you can find out where the other electrician had priced out there bill of materials If you can get that from that parts house and have the other electrician look it over to see if it will work for him or any changes that are needed. Then take over the purchasing of the material get an account at the parts house . Have materials delivered if possible . You can price out your material at other places but time may be a factor and the original place may have already ordered the material and may give you a discount. Labor your not going to be able to do much with that mistakes and delays will happen You should pay them if there on site. You can have the crew sign in in the morning and sign out in the evening or when anyone leaves the job site . It all comes down to how much you want to manage this part of the project and how much the EC will take being so involved in his side of the job.

 

[mull982]

Thanks for the responses.

How should we determine how many people the contractor should keep on site. Should this be a function of how many people the contractor says it will take to get the job done in a desired timeframe. Should the number of personal be determined by required job completion time?

 

[AV ELECTRIC]

Thanks for the responses.

How should we determine how many people the contractor should keep on site. Should this be a function of how many people the contractor says it will take to get the job done in a desired timeframe. Should the number of personal be determined by required job completion time?

Sometimes you have to trust the the company you hired let them determine size of crew and scheduling this is what they do for a living . If there are people standing around then you can question it but I would not get to involved with that.

 

[nhfire77]

Thanks for the responses.

How should we determine how many people the contractor should keep on site.

You don't. Unless you know how many employees it takes to do task A, you cannot determine that. The EC has to be trusted to do that, and your contract enforces it.

 

[mull982]

You don't. Unless you know how many employees it takes to do task A, you cannot determine that. The EC has to be trusted to do that, and your contract enforces it.

What do you mean by "your contract enforces it", in regards to this particular issue?

 

[mkgrady]

What do you mean by "your contract enforces it", in regards to this particular issue?

The contract outlines the responsabilities of the parties. If a party does not meet their responsabilities and it is their own fault then they are liable for any damages caused by their failure to perform.

 

[ike5547]

Is this EC purchasing materials through one of your accounts? Or is he purchasing them himself? Why do you expect him to show you receipts?

 

[hardworkingstiff]

This sounds like it might be a bonded job. I think a call to the bonding company to ask their opinion of what documentation will be required and helpful at the end of the project when the courts get involved.

Maybe a chat with your attorney too? You are sure that you are proceeding in accordance with the contracts, right?

 

[rodneee]

show up at the jobsite everyday...talk to the foreman regarding the scope of work for each day..... count the workers on site each day....keep a daily work log as to what went on each day....take pictures....don't be afraid to ask questions regarding things you see that may seem awkward or out of place....but most of all PRAY THE GUY IS HONEST!!!!!

 

[satcom]

This sounds like it might be a bonded job. I think a call to the bonding company to ask their opinion of what documentation will be required and helpful at the end of the project when the courts get involved.

Maybe a chat with your attorney too? You are sure that you are proceeding in accordance with the contracts, right?

If the job was bonded the first EC left the job, so at that point the bonding company should of pulled the bond ?

 

[stevenje]

Sometimes you have to trust the the company you hired let them determine size of crew and scheduling this is what they do for a living . If there are people standing around then you can question it but I would not get to involved with that.

Remember that the new EC is dealing with was left by the old EC. It can be a nightmare for all involved. Have you determined where you are in respect to labor and material already used up by the original EC compared to the percentage of work completed? The new EC is most likely playing catchup. Sit down with your EC and discuss the remaining hours and material left for the job in respect to the work that has already been preformed. This will determine the man hours that must be allocated to the job to meet the deadline. If the schedule is now to tight, expect to pay some overtime. Remember that two workers working a 40 hour week can complete an 80 hour task. But you can't get 80 workers to complete the same task in an hour.

 

[cdslotz]

I would never do a T&M where I didn't purchase the materials. T&M means I get a fair markup for materials and labor. I don't warranty anything I don't purchase. Besides, materials are the easiest to manage.

As far as managing their labor goes, I assume you are the GC right?
You build a schedule, and the EC mans accordingly. If that requires OT to get the tasks done, the EC should get paid OT. If the schedule is behind because of bad scheduling, coordinating subs, and the EC has to double his manpower and work OT, the EC should get paid.
Changes in scope increases the not-to-exceed amount. Schedule escalation is a change in scope.

 

[satcom]

I would never do a T&M where I didn't purchase the materials. T&M means I get a fair markup for materials and labor. I don't warranty anything I don't purchase. Besides, materials are the easiest to manage.

As far as managing their labor goes, I assume you are the GC right?
You build a schedule, and the EC mans accordingly. If that requires OT to get the tasks done, the EC should get paid OT. If the schedule is behind because of bad scheduling, coordinating subs, and the EC has to double his manpower and work OT, the EC should get paid.
Changes in scope increases the not-to-exceed amount. Schedule escalation is a change in scope.

I wish we could find some fish to give us a T&M construction project.

 

[charlietuna]

I would never accept:
" The contract outlines the responsabilities of the parties. If a party does not meet their responsabilities and it is their own fault then they are liable for any damages caused by their failure to perform."

in my contract! Who is the person and what are their qualifications to make this decision ??? You give me the job and i'm doing it!! I am beginning to realize why the first contractor left the job !!! BYE !