Programming and Planning in the Construction Industry - Part II

Programming and Planning in the Construction Industry - Part II: A Guide for RICS APC Candidates

Overview

In continuation to our blogpost about Programming and Planning in the Construction Industry – Part I (accessible through this link: https://www.apcmasterypath.co.uk/programming-and-planning-in-the-construction-industry-part-i) , we are undertaking a further deep dive in showcasing how Programming and planning are essential skills for any construction professional, especially for those who aspire to become chartered surveyors with the Royal Institution of Chartered Surveyors (RICS). In this blog post, I will explain the key aspects of programming and planning in the construction industry, and how they relate to the RICS Assessment of Professional Competence (APC). I will also provide some real-life examples and references to RICS related regulations and guidance notes, as well as UK laws, that you should be familiar with.

This blogpost tackles the following topics:

• Cash flows

• Progress monitoring

• Project handbook

• Project Execution Plans – PEP

• Establishing team

• Roles and responsibilities

• Commissioning/handover procedure

• Close-out reports

1        Cash Flows

Cash flow is the movement of money in and out of a project. It is crucial to monitor and manage cash flow, as it affects the profitability, liquidity, and solvency of the project and the parties involved. A positive cash flow means that the project is generating more income than expenses, while a negative cash flow means the opposite. A negative cash flow can lead to cash flow problems, such as delays in payments, disputes, claims, and insolvency.

To avoid cash flow problems, you should prepare a cash flow forecast, which is a projection of the expected income and expenses of the project over a period of time. A cash flow forecast can help you to plan and control the budget, identify potential risks and opportunities, and allocate resources accordingly. You should also update the cash flow forecast regularly, based on the actual performance and progress of the project.

A real life example of a cash flow problem is the case of Carillion, a major UK construction company that collapsed in 2018 due to a negative cash flow of £1.5 billion. The company had overextended itself on several large and complex projects, and faced delays, cost overruns, and disputes with clients and subcontractors. The company also had a poor payment practice, which resulted in a large debt and a low cash reserve. The company failed to meet its financial obligations and went into liquidation, affecting thousands of employees, suppliers, and creditors. [2]

As a RICS APC candidate, you should be aware of the RICS guidance note on Cash Flow Forecasting (1st edition, 2017), which provides best practice advice on how to prepare, update, and use cash flow forecasts in construction projects. You should also be familiar with the UK laws and regulations that affect cash flow, such as the Housing Grants, Construction and Regeneration Act 1996 (as amended by the Local Democracy, Economic Development and Construction Act 2009), which sets out the rules for payment terms, notices, and adjudication in construction contracts. [1], [3], [4]

2        Progress Monitoring

Progress monitoring is the process of measuring and reporting the actual performance and progress of a project against the planned baseline. It is important to monitor progress, as it helps to track and control the scope, time, cost, and quality of the project, and to identify and manage any deviations, issues, or changes that may arise. Progress monitoring also enables effective communication and reporting among the project stakeholders, and provides evidence and documentation for decision making and dispute resolution.

To monitor progress, you should use appropriate tools and techniques, such as:

• Gantt charts, which are graphical representations of the project schedule, showing the start and finish dates, durations, dependencies, and milestones of the project activities.

• Network diagrams, which are graphical representations of the project logic, showing the sequence, interrelationships, and constraints of the project activities.

• Critical path analysis, which is a method of identifying the longest path of dependent activities that determines the minimum time required to complete the project, and the activities that have no or little float (slack).

• Earned value analysis, which is a method of integrating scope, time, and cost data to measure the performance and progress of the project, using metrics such as planned value, earned value, actual cost, schedule variance, cost variance, schedule performance index, and cost performance index.

• Key performance indicators (KPIs), which are measurable values that indicate the achievement of the project objectives, such as cost, time, quality, safety, sustainability, and customer satisfaction.

• Dashboards, which are visual displays of the project status, progress, and performance, using charts, graphs, tables, and indicators.

A real life example of a progress monitoring tool is the NEC4 Engineering and Construction Contract (ECC), which is a standard form of contract widely used in the UK and internationally for construction projects. The NEC4 ECC requires the contractor to provide the project manager with a programme, which is a detailed plan of the project activities, showing the order, timing, dependencies, and resources. The programme is updated and accepted by the project manager at regular intervals, and is used to assess the progress and performance of the contractor, and to determine any compensation events (changes) that may affect the project.

As a RICS APC candidate, you should be aware of the RICS guidance note on Project Monitoring, Reporting and Control, which provides best practice advice on how to monitor, report, and control the progress and performance of construction projects. You should also be familiar with the UK laws and regulations that affect progress monitoring, such as the NEC4 ECC and other standard forms of contract, and the Construction (Design and Management) Regulations 2015, which set out the roles and responsibilities of the project participants for health and safety. [5], [6]

3        Project Handbook

A project handbook is a document that contains the essential information and guidance for the management and delivery of a construction project. It is usually prepared by the project manager or the client, and is distributed to the project team and other relevant stakeholders. A project handbook can help to establish and communicate the project vision, objectives, scope, requirements, standards, procedures, roles and responsibilities, and expectations. It can also serve as a reference and a record for the project.

The content and format of a project handbook may vary depending on the size, complexity, and nature of the project, and the preferences of the project manager or the client. However, a typical project handbook may include the following sections:

• Project overview, which provides a brief introduction and background of the project, such as the project name, description, location, purpose, benefits, and objectives.

• Project organisation, which defines and describes the project team and other key stakeholders, such as the client, the project manager, the contractor, the consultants, the suppliers, and the end users, and their roles and responsibilities, contact details, and communication channels.

• Project scope, which defines and describes the project deliverables, requirements, specifications, assumptions, constraints, exclusions, and changes.

• Project schedule, which defines and describes the project activities, milestones, dependencies, durations, and deadlines.

• Project budget, which defines and describes the project costs, resources, funding, and payments.

• Project quality, which defines and describes the project standards, criteria, methods, and tools for ensuring and controlling the quality of the project deliverables and processes.

• Project risk, which defines and describes the project risks, opportunities, impacts, probabilities, responses, and mitigation strategies.

• Project communication, which defines and describes the project communication plan, such as the purpose, audience, message, medium, frequency, and responsibility of the project communication.

• Project documentation, which defines and describes the project documents, records, and reports, such as the project charter, the contract, the drawings, the specifications, the minutes, the invoices, and the progress reports, and their formats, locations, and retention.

• Project closure, which defines and describes the project closure plan, such as the criteria, procedures, and activities for completing, handing over, and evaluating the project.

A real life example of a project handbook is the Crossrail Project Handbook, which is a document that provides the information and guidance for the delivery of the Crossrail project, a major railway infrastructure project in London and the South East of England. The Crossrail Project Handbook covers the topics of project overview, project organisation, project scope, project schedule, project budget, project quality, project risk, project communication, project documentation, and project closure, as well as other relevant topics, such as health and safety, environment, sustainability, and stakeholder management. [10]

As a RICS APC candidate, you should be aware of the RICS professional statement on Project Management (1st edition, 2019), which provides the mandatory requirements and best practice guidance for the management and delivery of construction projects. You should also be familiar with the UK laws and regulations that affect project management, such as the Contracts (Rights of Third Parties) Act 1999, which allows a third party to enforce a term of a contract that benefits them, and the Bribery Act 2010, which criminalises the offering, promising, giving, requesting, agreeing, receiving, or accepting of bribes. [7], [8], [9]

4        Project Execution Plans – PEP

A project execution plan (PEP) is a document that describes how a construction project will be executed, monitored, and controlled. It is usually prepared by the project manager or the contractor, and is approved by the client and other key stakeholders. A PEP can help to define and communicate the project strategy, approach, methodology, and processes. It can also serve as a baseline and a tool for the project management and delivery.

The content and format of a PEP may vary depending on the size, complexity, and nature of the project, and the preferences of the project manager or the contractor. However, a typical PEP may include the following sections:

• Executive summary, which provides a concise overview and summary of the PEP, such as the project name, description, objectives, scope, schedule, budget, quality, risk, communication, and documentation.

• Project strategy, which describes the project vision, mission, goals, and objectives, and how they align with the client's and the contractor's expectations and requirements.

• Project approach, which describes the project delivery method, such as design-bid-build, design-build, construction management, or integrated project delivery, and the rationale and benefits of choosing it.

• Project methodology, which describes the project phases, stages, and gates, such as initiation, planning, design, procurement, construction, commissioning, handover, and closure, and the activities, deliverables, and approvals for each of them.

• Project processes, which describe the project management processes, such as scope management, time management, cost management, quality management, risk management, communication management, and documentation management, and the methods, techniques, and tools for each of them.

• Project organisation, which describes the project team and other key stakeholders, such as the client, the project manager, the contractor, the consultants, the suppliers, and the end users, and their roles and responsibilities, contact details, and communication channels.

• Project resources, which describe the project human, material, equipment, and financial resources, and how they will be allocated, mobilised, and managed.

• Project performance, which describes the project performance indicators, such as cost, time, quality, safety, sustainability, and customer satisfaction, and how they will be measured, monitored, and reported.

• Project risks, which describe the project risks, opportunities, impacts, probabilities, responses, and mitigation strategies.

• Project changes, which describe the project change management process, such as the identification, evaluation, approval, and implementation of changes, and the roles and responsibilities of the change control board.

• Project lessons learned, which describe the project lessons learned process, such as the collection, analysis, documentation, and dissemination of lessons learned, and the roles and responsibilities of the lessons learned coordinator.

A real life example of a PEP is the PEP for the London 2012 Olympic and Paralympic Games, which is a document that describes how the Olympic Delivery Authority (ODA) and its delivery partners will execute, monitor, and control the delivery of the London 2012 Olympic and Paralympic Games, a major sporting event and infrastructure project in London and the UK. The PEP for the London 2012 Olympic and Paralympic Games covers the topics of executive summary, project strategy, project approach, project methodology, project processes, project organisation, project resources, project performance, project risks, project changes, and project lessons learned, as well as other relevant topics, such as health and safety, environment, sustainability, and stakeholder management. [12]

As a RICS APC candidate, you should be aware of the RICS professional statement on Project Management (1st edition, 2019), which provides the mandatory requirements and best practice guidance for the management and delivery of construction projects. You should also be familiar with the UK laws and regulations that affect project execution, such as the Construction (Design and Management) Regulations 2015, which set out the roles and responsibilities of the project participants for health and safety, and the Public Contracts Regulations 2015, which set out the rules for public procurement of works, services, and supplies. [6], [8], [11]

5        Establishing Team

Establishing team is the process of forming and developing a project team that can effectively and efficiently deliver the project objectives and requirements. It is an important process, as it affects the performance, productivity, and success of the project and the parties involved. A well-established project team can foster collaboration, communication, coordination, and trust among the project team members and other stakeholders, and can enhance the quality, safety, and sustainability of the project.

To establish a project team, you should follow these steps:

• Define the project team structure, which is the hierarchical and functional arrangement of the project team members and their roles and responsibilities, such as the project manager, the project sponsor, the project steering committee, the project board, the project team leader, the project team members, and the project support staff.

• Identify the project team skills, which are the knowledge, abilities, and competencies that the project team members need to have or acquire to perform their roles and responsibilities, such as technical, managerial, interpersonal, and communication skills.

• Select the project team members, which is the process of choosing the most suitable and qualified individuals to join the project team, based on their skills, experience, availability, and motivation, and using methods such as interviews, tests, references, and recommendations.

• Assign the project team roles, which is the process of allocating the roles and responsibilities of the project team members, based on their skills, experience, availability, and motivation, and using tools such as role descriptions, responsibility assignment matrix (RAM), and RACI matrix (responsible, accountable, consulted, and informed).

• Develop the project team, which is the process of improving the performance and cohesion of the project team, by providing training, coaching, mentoring, feedback, and recognition, and by using techniques such as team building, team charter, team norms, and team rewards.

• Manage the project team, which is the process of leading, motivating, and supporting the project team, by setting goals, expectations, and standards, and by using methods such as communication, delegation, empowerment, and conflict resolution.

A real life example of establishing team is the project team for the Eden Project, which is a visitor attraction and educational charity in Cornwall, UK, that showcases the world's largest indoor rainforest and other biomes. The project team for the Eden Project consisted of various individuals and organisations, such as the client (Eden Project Ltd), the project manager (Davis Langdon), the architect (Grimshaw Architects), the engineer (Anthony Hunt Associates), the contractor (Sir Robert McAlpine), the biome builder (MERO), the landscape architect (Land Use Consultants), and the horticulturalist (Philip McMillan Browse). The project team was established by defining the project team structure, identifying the project team skills, selecting the project team members, assigning the project team roles, developing the project team, and managing the project team. [15]

As a RICS APC candidate, you should be aware of the RICS professional statement on Project Management (1st edition, 2019), which provides the mandatory requirements and best practice guidance for the management and delivery of construction projects. You should also be familiar with the UK laws and regulations that affect establishing team, such as the Equality Act 2010, which prohibits discrimination, harassment, and victimisation on the grounds of protected characteristics, such as age, disability, gender, race, religion, and sexual orientation, and the Employment Rights Act 1996, which sets out the rights and obligations of employers and employees, such as contracts, wages, holidays, sick leave, maternity leave, and redundancy. [8], [13], [14], [26]

6        Roles and Responsibilities

As a programmer and planner, your main role is to ensure that the construction project is delivered on time, within budget, and to the required quality standards. You are responsible for developing, monitoring, and updating the project schedule, identifying and managing the risks and opportunities, and communicating the progress and issues to the project team and stakeholders. You also need to coordinate and integrate the activities of different disciplines, contractors, and suppliers, and ensure compliance with the contract, specifications, and regulations.

Some of the specific tasks that you may perform as a programmer and planner include:

• Preparing the project plan, baseline schedule, and resource allocation

• Applying the appropriate planning methods and tools, such as critical path analysis, network diagrams, Gantt charts, and software applications

• Establishing the project milestones, deliverables, and key performance indicators

• Conducting regular site visits and inspections to verify the actual progress and quality of work

• Updating and revising the project schedule based on the changes, variations, and delays

• Analysing the impact of any deviations from the plan and proposing corrective actions

• Preparing and presenting the progress reports, forecasts, and earned value analysis

• Managing the project documentation and records

• Collaborating and communicating with the project manager, client, consultants, contractors, and suppliers

• Resolving any conflicts or disputes that may arise during the project execution

As a RICS APC candidate, you need to demonstrate your competence and experience in programming and planning, as well as your knowledge of the relevant RICS standards and guidance. Some of the sources that you should refer to include:

• The RICS APC Pathway Guide for Project Management, which outlines the mandatory and technical competencies that you need to achieve, including T021 Programming and planning/. [16]

• The RICS Practice Standards and Guidance Notes, such as the RICS Project Management Global Standards (the RICS Black Book), the RICS Guidance Note on Project Monitoring, and the RICS Guidance Note on Delay Analysis. [8], [20]

• The RICS APC Candidate Support Resources, such as the RICS APC Competency Guidance, the RICS APC Case Study Guidance, and the RICS APC Final Assessment Guidance [17], [23]
  

7       Commissioning/Handover Procedure

The commissioning/handover procedure is the process of transferring the completed project from the contractor to the client, ensuring that the project meets the agreed requirements and is ready for operation. The commissioning/handover procedure involves several stages, such as:

• Testing and commissioning: This is the stage where the contractor verifies that the project works as intended and complies with the design, specifications, and regulations. The testing and commissioning activities may include functional testing, performance testing, safety testing, environmental testing, and quality testing. The contractor also prepares the commissioning plan, the commissioning report, and the commissioning certificates.

• Handover: This is the stage where the contractor formally hands over the project to the client, along with the relevant documentation, such as the as-built drawings, the operation and maintenance manuals, the warranties and guarantees, and the health and safety files. The handover may also involve a site inspection, a demonstration, and a training session for the client and the end-users. The contractor also issues the practical completion certificate, which marks the end of the construction contract and the start of the defects liability period.

• Defects rectification: This is the stage where the contractor rectifies any defects or faults that may arise during the defects liability period, which is usually 12 months from the date of practical completion. The contractor also responds to any queries or complaints from the client and the end-users, and maintains the project until the final completion certificate is issued, which marks the end of the defects liability period and the release of the retention money.
  

As a programmer and planner, you need to ensure that the commissioning/handover procedure is planned, coordinated, and executed smoothly and efficiently, and that the project is delivered to the client's satisfaction. You also need to be aware of the legal and contractual implications of the commissioning/handover procedure, and the potential risks and disputes that may arise. Some of the UK laws and regulations that you should refer to include:

• The Contracts (Rights of Third Parties) Act 1999, which allows third parties, such as the end-users, to enforce the terms of a construction contract. [7]

• The Housing Grants, Construction and Regeneration Act 1996 (the Construction Act), which regulates the payment terms, the adjudication process, and the suspension of work for construction contracts. [4]

• The Defective Premises Act 1972, which imposes a duty of care on the contractor to ensure that the project is fit for habitation and free from defects. [18]

• The Limitation Act 1980, which sets the time limits for bringing a claim for breach of contract or negligence in relation to a construction project.[19]
  

8        Close-Out Reports

The close-out reports are the documents that are prepared at the end of the project to evaluate the project performance, identify the lessons learned, and provide recommendations for future projects. The close-out reports are important for capturing the knowledge and experience gained from the project, and for improving the best practices and standards of the construction industry. The close-out reports may include:

• The project evaluation report, which assesses the project outcomes, benefits, and impacts, and compares them with the project objectives, scope, and criteria.

• The project performance report, which measures the project efficiency, effectiveness, and quality, and compares them with the project budget, schedule, and specifications.

• The project feedback report, which collects and analyses the feedback and satisfaction of the project stakeholders, such as the client, the end-users, the consultants, the contractors, and the suppliers.

• The project lessons learned report, which identifies and documents the project successes, challenges, risks, and issues, and provides recommendations and solutions for future projects.

As a programmer and planner, you need to contribute to the preparation and dissemination of the close-out reports, and use them as a source of learning and improvement for your professional development. You also need to follow the RICS ethical and professional standards, such as the RICS Rules of Conduct, the RICS Global Professional and Ethical Standards, and the RICS Conflicts of Interest Professional Statement, when preparing and presenting the close-out reports. [21], [22], [24], [25]

9        Conclusion

In this blog post, I have explained the main aspects of programming and planning in the construction industry, and how they relate to the RICS APC. I have also provided some real life examples and references to the RICS standards and guidance, and the UK laws and regulations, that you need to know for your APC. I hope that this blog post has been useful and informative for you, and that it will help you to achieve your goal of becoming a chartered surveyor with the RICS. If you have any questions or comments, please feel free to contact me at construction.expert@blog.com. Thank you for reading.

10 References

1. RICS – Cashflow Forecasting Guidance Note. Accessible from: https://www.rics.org/content/dam/ricsglobal/documents/standards/cash_flow_forecasting_1st_edition_rics.pdf

2. Carillion collapse: what went wrong? Accessible from: https://commonslibrary.parliament.uk/carillion-collapse-what-went-wrong/

3. Her Majesty’s Stationery Office. (2009). The Housing Grants, Construction and Regeneration Act 1996: As amended by The Local Democracy, Economic Development and Construction Act 2009. https://www.legislation.gov.uk/ukpga/2009/20/pdfs/ukpga_20090020_en.pdf.

4. HM Government. (1996). Housing Grants, Construction and Regeneration Act 1996. http://www.legislation.gov.uk/ukpga/1996/53/contents.

5. RICS - Cost Reporting Guidance note. Accessible from: https://www.rics.org/content/dam/ricsglobal/documents/standards/cost_reporting_1st_edition_rics.pdf

6. The Construction (Design and Management) Regulations 2015. Accessible from: https://www.hse.gov.uk/construction/cdm/2015/index.htm

7. His Majesty Government- The Contracts (Rights of Third Parties) Act 1999. Accessible from: https://www.legislation.gov.uk/ukpga/1999/31/contents

8. RICS professional statement on Project Management (1st edition, 2019). Royal Institution of Chartered Surveyors. Retrieved from https://www.rics.org/globalassets/rics-website/media/upholding-professional-standards/sector-standards/construction/project-management-professional-statement-1st-edition-rics.pdf

9. His Majesty Government- The Bribery Act 2010. Accessible from: https://www.legislation.gov.uk/ukpga/2010/23/contents

10. Crossrail Planning and Scheduling Handbook. Accessible from: https://learninglegacy.crossrail.co.uk/wp-content/uploads/2016/09/1G-006_Planning-Manual_Redacted-Finalv2smaller.pdf

11. The Public Contracts Regulations 2015. (2015). UK Government. Retrieved from http://www.legislation.gov.uk/uksi/2015/102/contents/made

12. PEP for the London 2012 Olympic and Paralympic Games. (2007). Olympic Delivery Authority. Retrieved from https://learninglegacy.independent.gov.uk/documents/pdfs/project-management/oda-pep.pdf

13. HM Government – The Employment Rights Act 1996. Accessible from: https://www.legislation.gov.uk/ukpga/1996/18/contents

14. HM Government – The Equality Act 2010. Accessible from: https://www.legislation.gov.uk/ukpga/2010/15/contents

15. Wikipedia - Eden Project. Accessible from: https://en.wikipedia.org/wiki/Eden_Project

16. RICS – Planning and Programming. Accessible from: https://www.isurv.com/info/354/planning_and_programming

17. RICS – Assessment of Professional Competence (APC). Accessible from: https://www.rics.org/join-rics/rics-member-grades/chartered-member-mrics/assessment-of-professional-competence-apc

18. Defective Premises Act (1972). Accessible from: https://www.legislation.gov.uk/ukpga/1972/35

19. Limitation Act 1980. Accessible from: https://www.legislation.gov.uk/ukpga/1980/58

20. RICS – Damages for delay to completion. Accessible from: https://www.isurv.com/downloads/file/3126/archived_damages_for_delay_to_completion_1st_edition

21. RICS. (2020). RICS global professional and ethical standards (effective from 1 January 2020). https://www.rics.org/globalassets/rics-website/media/upholding-professional-standards/professional-ethics/rics-global-professional-and-ethical-standards.pdf.

22. RICS. (2020). RICS conflicts of interest professional statement (effective from 1 January 2020). https://www.rics.org/globalassets/rics-website/media/upholding-professional-standards/sector-standards/construction/conflicts-of-interest-professional-statement.pdf.

23. RICS. (2017). RICS professional experience route: Guidance for candidates and counsellors. https://www.rics.org/globalassets/rics-website/media/upholding-professional-standards/pathways-and-competency-framework/rics-professional-experience-route-guidance-for-candidates-and-counsellors.pdf.

24. RICS. (2019). RICS global professional and ethical standards. https://www.rics.org/globalassets/rics-website/media/upholding-professional-standards/standards-of-conduct/rics-professional--ethical-standards-2019.pdf.

25. RICS. (2017). Conflicts of interests: Global professional statement, second edition. https://www.rics.org/globalassets/rics-website/media/upholding-professional-standards/sector-standards/real-estate/conflict-of-interests--global-professional-statement-2nd-edition-rics.pdf.

26. RICS. (2019). RICS professional standards and guidance, UK: Construction projects, pre-contract and post-contract project administration. https://www.rics.org/globalassets/rics-website/media/upholding-professional-standards/sector-standards/construction/project-administration-professional-statement.pdf.