Have you ever wondered how to develop a project controls system, and if the investment in computerised project controls systems, as well as the staff to collect and analyse the data and maintain the system itself, are worth the investment? In this section, Lakhbeer Singh—founder and chief operating officer of IPEC Project Systems Sdn Bhd—elaborates on the reality of project controls system’s implementation, and how the evolution of Building Information Modelling (BIM) will be the game changer in project delivery. This article also explores the challenges that project controls professionals face in integrating BIM systems with traditional project controls software like Oracle Primavera P6 and Microsoft Project (MSP).
With the involvement of larger capital costs, international participation, joint venture owner relationships and multiple contractor execution strategies, construction projects have become more complex. Meanwhile, the tools and techniques for project control are often overlooked. With the evolution of BIM technology, contracting companies need to move fast to capture benefits offered by BIM to stay competitive due to the upcoming mandatory contractual requirement of BIM technology usage in Malaysia.
Since the midst of 1990s, Malaysia underwent massive transformation programmes with the launch of several mega projects, which had transformed Malaysia’s construction industry and project delivery methods. Some of the more prominent projects from that period were Putrajaya, a new international airport (Kuala Lumpur International Airport), a hydroelectric dam (Bakun dam), the Petronas Twin Towers, as well as several highways and rail projects such as Putra Rail, Star Line and Express Rail Link (ERL). Most of these pioneer projects were delivered by foreign project management consultants who introduced project controls discipline and software to companies in Malaysia.
Project controls are defined as the data gathering, management and analytical processes used to predict, understand and constructively influence the time and cost outcomes of a project or programme. This can be achieved through the communication of information in formats that assist effective management and decision-making.
Project controls are measurement systems that assist in communication about the objectives, priorities, and outcomes in the project. They assist in defining success, measuring performance outcomes and establishing measures of success. Project controls functions—defined in the classical sense as estimating, planning and scheduling, cost control, risk analysis and related reporting functions—have been demonstrated to provide cost benefits for the successful completion of any project.
Most construction companies are driven by contractual requirements of owners to produce a construction schedule by using critical path method (CPM) and having a dedicated planner or scheduler in the project team to update the project schedule via the Oracle Primavera P6 or MSP software. However, the purchase of project controls software and hiring of planners or schedulers failed to bring any strategic benefit because most construction organisations have a misconception regarding project controls discipline. Hence, the projects will still run behind time and over budget, which results in costly disputes and hefty late delivery penalties.
The profit margins in the contracting business are razor thin and there are requirements for strong cash flow management throughout the project life cycle. Most of the companies get paid based on work progress of the approved project schedule.
There are three main aspects that need to be considered by companies for a successful project controls practice, which is known as the People, Process and Technology approach. Companies need to implement project controls discipline and systems as a strategic internal initiative, rather than purchasing software as part of the contractual requirements.
ALWAYS START WITH THE PEOPLE
Firms need to confirm that they have the backing of the senior management from the start, because most project controls initiatives failed due to the absence of support from top management. In Malaysia, the top-down approach works best in any strategic initiative or system implementation.
Companies need to ensure that their teams consist of the right people with the right skills, experience and attitude. There are many planners, schedulers, project managers and project team members who lack formal certifications and knowledge of what they are expected to produce. Most project controls staff mastered projects based on their own interpretation or experience gained from past work experience.
Formal project management qualification and certification from international bodies, such as Project Management Institute (PMI) and AACE International can help in producing competent project controls team members who are trained to work based on strong frameworks and structured method of working.
ASPECTS OF THE PROCESS
Many Malaysian construction companies lack a formal project controls process on how a project needs to be managed through the project life cycle—from initiation, planning, execution, control to closing stage. The attempt to implement a software or system in a company that has no formal process will end up becoming a white elephant.
A lot of companies think that it is costly to hire consultants to come up with a formal project control process. However, companies can make use of established process frameworks from the Project Management Institute (PMI)—such as PMBOK, OPM3 and AACE International Total Cost Management (TCM) frameworks—to come out with well-defined processes. All of these process frameworks developed by international bodies are free of charge and can be implemented by any certified consultant.
Companies need to ensure that these processes are evaluated by their stakeholders so that they are aware of what will be expected from them, and are guided through possible gaps and issues. They also need to make sure that whatever ready-made framework and process adopted are based on internal business needs, as well as endorsed by all stakeholders.
SELECT THE TECHNOLOGY
With all the people and processes in place, you can now look at technologies that will support them. It is never a good idea to enforce a new technology and then attempt to retrofit the people and processes around it.
There are myriads of software solutions available in the market for project controls. Some of the most popular solutions in Malaysia are Oracle Primavera P6 EPPM suite and Microsoft Project EPM suite. Companies need to ensure that whatever solution is chosen, it is based on internal and client or market requirements. For companies that build big infrastructure projects—such as rail, oil and gas facilities—it will be sensible to adopt the Oracle Primavera solution, since it is the de facto solution for big and complex project management in Malaysia and globally.
A project controls system need to keep track of time, resources, costs, issues, risks and documents, as well as churn out reports and analyses from data based on the requirements of each stakeholder. Overall, there is no standard solution that can satisfy all requirements and it is normal for companies to integrate project control software with other software, such as estimating software, ERP, document control systems and custom executive dashboards.
CHALLENGES IN IMPLEMENTATION
Companies need to look at soft issues in general, such as change of management in the aspects of organisation structure and workflow. The biggest challenge for companies in project controls discipline is that traditional contracting companies do not follow the project schedule during project execution. The project schedule is produced to satisfy the client’s requirements, rather than an internal strategic tool to control cost and ensure that the project can be delivered on time. Besides this, there is a disconnected reality between the planning team and project execution team on work execution method and work sequencing. The same issue is faced when companies attempt to implement BIM solutions.
Another common challenge is inaccurate data and quantities that are inputted into the system, which often produce wrong results. Regardless of how powerful or advanced the software is, wrong estimation of work sequencing, time, resources and costs will produce wrong results. Therefore, companies need to ensure that all stakeholders participate in the projects control plan.
The construction delivery team works on their own phase without following logical steps outlined in the project schedule. It is important for planners to have ownership of the project schedule based on project site and construction team through involvement from the early stage of development to subsequent updating of schedule based on actual daily work progress. Work progress on the site does not usually match the progress outlined in the project schedule, which renders the project control software or discipline useless since it is inaccurate in indicating the actual project progress. With the recent technological advancement of tools, such as Primavera P6 EPPM, team members have mobile updating capability whereby any site supervisor can update work activity progress daily via easy-to-use excel-like interface without the need of learning how to use scheduling software.
USAGE OF BIM IN PROJECT CONTROLS
The adoption of BIM—where a structure is digitally represented by a three-dimensional (3D) model—for design and construction of building projects has grown rapidly in the last few years. The primary goal is to achieve Clash Free Design and Zero Change Order coordination in the construction phase. The BIM modelling effort also generates a large amount of useful data in electronic format. Each constructed individual item—such as wall, window, light fixture or door—is tagged with metadata that identifies what it is, which system it belongs to and where the location is.
Quantity Take-Offs are generated from the models that provide easy access to a variety of data about the building, which can be used to analyse and inform the construction process. The planning and scheduling effort can be based on exact quantities. Progress reporting and project controls during the construction and commissioning phases of a project can also be tied to more accurate work in place assessments.
BIM is the future for construction delivery and 4D BIM that is directly related to project controls practice will impact how projects are planned and executed. 4D BIM involves timerelated information being associated to different components of an information model for a specific element or work area. This can include details on its lead time, construction and installation period, curing and drying allowances, sequencing or interdependencies with other areas.
With the help of 4D CAD building modelling, approximately 15 percent of construction problems can be classified before the inception of the construction process. With the help of 4D BIM tools, it is possible for professionals to thoroughly understand the construction planning and sequencing, hence immediately identifying the cause of scheduling problems caused by various factors.
The biggest challenge in project controls discipline with BIM software will be managing processes and changes in how projects are planned and sequenced. Under the traditional design and build contracting method, projects are designed by architects and passed to quantity surveyors for costing, then subsequent construction and delivery are carried out by contractors.
Most companies view BIM as a software, but in reality BIM is a process and a new way to work on and deliver projects. In order to implement BIM successfully, there is a need for powerful BIM software solutions—such as Autodesk Revit and Navisworks—that offer robust and user-friendly BIM technology. However, clients with less budget to spend on software can opt for Intellicad or ODA-based BIM software—such as 4M—that is more suitable for small-scale projects.
Most companies view BIM as a software, but in reality BIM is a process and a new way to work on and deliver projects. In order to implement BIM successfully, there is a need for powerful BIM software solutions—such as Autodesk Revit and Navisworks—that offer robust and user-friendly BIM technology. However, clients with less budget to spend on software can opt for Intellicad or ODA-based BIM software—such as 4M—that is more suitable for small-scale projects.
By using BIM, projects are designed and modelled by BIM modellers who adopt a design-based approach in modelling and work sequencing. The challenge that most companies face are that the traditional project controls team and construction team work by delivering projects based on their own traditional approaches. A project planner, BIM modeller and construction manager are traditionally trained in different work methods. Each role is trained to think differently and have a different level of experience, expertise and understanding. A BIM modeller may not understand the challenges that a construction manager faces in the real world scenario while executing a project and scope of project controls, whereby a planner may design a schedule logic to accommodate payment terms and other variables such as total float and inter-project relationships. All stakeholders need to agree on a common work method and reach a compromise if BIM is going to be used for project controls.
In order to implement project controls successfully in a BIM-based environment, the project controls team and construction team need to be involved in the project during conceptual modelling stage. BIM is about teamwork and this poses a big challenge for contracting companies where different stakeholders are used to working in silos. Construction companies need to change their traditional organisation and reporting structures before they can adopt BIM technology. Otherwise, the BIM implementation will fail because of organisational conflicts and firefighting.
Solutions such as Autodesk Navisworks offer seamless integration to project control solutions, but planners need to sit with BIM modellers to understand the logic and sequence behind every 3D model creation, before they can come out with a schedule that needs to be integrated back with the 3D model sequential logic.
CONCLUSION
Project controls and BIM offer benefits to contracting companies by delivering projects on time and within budget successfully. Companies need to adopt the People, Process and Technology approach in any strategic initiative. The most important aspect is to change the mindset and organisation structure before any system or technology can be implemented.
Project control professionals and construction managers need to understand how BIM technology works, and companies need to understand that project controls professionals work with tools that they are comfortable with. Any BIM implementation for project controls needs to take these software into consideration. At the same time, BIM modellers need to understand how projects are planned and executed on-site in the real-world scenario, as well as contractual challenges that need to be resolved using traditional methods as there is no legal framework established pertaining to BIM.
Another important consideration for companies is to start small in any project control and BIM initiative with a clear vision based on business requirements, rather than spending money purchasing costly software and hiring expensive consultants.
LAKHBEER SINGH is the founder and chief operating officer of IPEC Project Systems Sdn Bhd (www.ipecsystems.com.my). IPEC is Oracle Primavera’s specialised partner in Malaysia and provides project control and BIM services. Singh has been involved in Primavera solution marketing, pre-sales, implementation and support for the past 16 years. He has experience in assisting clients in the scope of Primavera implementation for various industry sectors, such as construction, oil and gas, rail and property development. Throughout his 16 years of experience in the Primavera line, he has witnessed the evolution of Primavera software from scheduling tool under Primavera Systems Pte Ltd to complete project portfolio management solution under Oracle Corp. He sits on the Board of Directors of AACE International Malaysia Chapter, where he is responsible for membership and marketing. AACE International is a 501(c) (3) non-profit professional association that has been serving the total cost management community since 1956.