A year and a half ago the economy was booming, there was plenty of financing for large-scale construction jobs, and the biggest problem facing most contractors was finding affordable and competent labor. Six- and seven-day weeks were common, and the greater risk was committing to too much work as opposed to sitting idle. But how times have changed. For many contractors the backlog of work has ended, and it’s not uncommon for days or even weeks to elapse between jobs.

The decline in revenues often prompts contractors to step back and take the time to review their business. As a result, inefficiencies in the work process are often exposed. It’s not that these shortcomings are new, but the higher volume of work during the past few years may have masked the problems. Now, in a struggling economy, these inefficiencies have been magnified and they warrant immediate attention.

Differing Perspectives
One significant shortcoming to which many contractors fall victim is poor job handoff. Lack of communication at the front end of a job can be costly, both in terms of profits and reputation. It’s not uncommon for the estimator and project manager to have radically different views of a project’s scope, visualizing different solutions or techniques to apply on the project.

Before any dirt is moved, an estimator must make a host of assumptions, particularly with large or complex projects. Labor requirements, both internal and outsourced, must be determined. What equipment is necessary and which construction techniques are best?  How long will each phase take? And what about administrative requirements or special circumstances? The list of assumptions is long, and it illustrates the potential margin of error.

In most cases, however, the estimator isn’t responsible for implementing and managing the work. Estimators are often engineers, focusing on measurements and feasibilities. Project managers, on the other hand, are usually builders and facilitators with more hands-on experience in the field. What might work on paper might be impractical or even impossible at the site.

In many construction firms, estimating and implementation are two distinct functions. But if the two functions work more cohesively, obstacles can be overcome more easily and many problems can be avoided altogether. Lack of communication at the front end of a job can be polarizing and result in finger pointing, especially in organizations that use incentive plans to compensate workers. In effect, poor communication creates a division between the "field" and "corporate," and it impedes the organization from developing a true team environment.

Investing Time in Handoff Meetings
Nobody likes to waste time in meetings. But start-up or job handoff meetings are anything but a waste. Ideally, the project manager should be integrally involved in the estimating function, and for many small contractors the roles of estimating and managing the project are one and the same. But in larger outfits the lack of communication between estimating and groundbreaking can be a significant issue. If the project manager doesn’t have a clear understanding of the estimator’s original assumptions, problems are sure to lie ahead. The result can be anything from experiencing minor inconveniences and embarrassments in front of the customer to drastically missing timetables, incurring penalties, missing profit incentives, and even losing money on the job.

A pre-job meeting should focus on a number of items. The project’s scope and the construction firm’s size dictate how formal and how comprehensive the meeting should be. In general, however, a step-by-step review of the estimator’s schedules can act as a guideline for the meeting. Consider addressing each of these questions before the job begins:

• What is the timetable for each phase of the job?
  
• What internal labor sources will be used, and who are the key individuals?
  
• What subcontractors will be used and under what terms and rates?
  
• What tools and equipment will be necessary for
  each phase?
  
• What materials will be used?  Where will you get them and when do they need to be ordered?
  
• Are there special logistical or safety concerns to be addressed?
  
• Are there special administrative needs (submittals, billing requirements) to be addressed?

Ideally, the estimator and project manager work closely in the bidding process, and they solicit input from all relevant parties, including the contract administrator, payroll staff, accounting personnel, foremen, and others. Absent such collaboration, a comprehensive job handoff meeting is vital before beginning any phase of a job. Clear communication gives the project manager an understanding of what’s expected and what’s been agreed upon. Then, if the project owner requests something outside the job’s initial parameters, that issue can be addressed in a timely fashion.

The best-run construction firms take time for comprehensive job handoff communication. Even highly profitable construction companies can benefit from pre-job planning, enjoying greater efficiency and higher profit margins.