Experience in concluding construction projects

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Forward: Project Manager Salon. Author: Xu Linson, PMP. I have been involved in the closing phases of two projects – Xiaolang International Engineering and the Dongshen Water Supply project in China – and I have some insights that I’d like to share with everyone. Also in terms of project completion, the main difference between international and domestic engineering projects is that, from a contractual perspective, international projects involve more substantive elements and fewer formal aspects. The fundamental reason, as the old saying goes, is the system. Here, we will discuss the common aspects of the closing work from the perspective of handover and acceptance: First, there is emphasis at the project manager level, and preparation is key. Those involved in project management believe that the beginning and ending stages of a project are the most challenging, especially the ending stage, which is full of complexities and requires a lot of effort; yet after all that hard work, no tangible results are visible, which undermines the project’s image. Plus, with the end approaching, people’s minds are unsettled ； The relationship with subcontractors is also fraught with disputes due to the final settlement issues, and conflicts are becoming increasingly apparent; there is far less cooperation and enthusiasm as during the construction period. The acceptance unit should also be stricter at this point, as everyone knows that if something goes wrong, it will be difficult to fix things later on. Under such circumstances, the attention from the project manager level and strong support for the closing work become extremely important. Usually, the project manager will take personal care of it. Otherwise, it could be disastrous. Moreover, this project manager must be someone who is well aware of the complexities involved and has the patience to handle this task. Coincidentally, in both of the projects I was involved in, a new project manager was assigned at the end to handle the closing tasks. The difficulty of bringing things to a conclusion, and the lack of willingness to do so, illustrate this point clearly. Also, although it is called closing out work, what is being closed out are the tasks from before. Therefore, while the skills and effort required for closing out work are important, the quality of this closing process is more closely related to the work done on a regular basis; in other words, the real effort lies in the daily tasks. The usual efforts here refer not only to the engineering structures but also to various documents related to them. II. Designate a responsible person and emphasize planning: Given the complexity and numerous aspects involved in the closing tasks, it is necessary to assign a specific person to be in charge of them. This person is directly accountable to the project management level, and together with those in various departments who have spent considerable time on the project and are familiar with its details, they form a capable team responsible for handover, acceptance, and document archiving, carrying out the final tasks focused on handover and acceptance as well as completion archiving. Special emphasis should be placed on the plan at the end. This plan should be drafted initially by the person responsible for the finalization tasks, based on the actual conditions of the project and in accordance with the contract terms. Once drafted, it must be reviewed by various departments (especially the contract, technical, and construction departments) under the supervision of the project manager, and once approved it shall be issued for strict implementation. To ensure the implementation of the plan, it is best to have a regular meeting system, allowing all parties to periodically review progress and address any issues that arise in a timely manner. III. Coordination – This primarily involves coordination in terms of technology, contracts, and on-site operations; on-site, it mainly entails coordination among various subcontractors. It is necessary to act actively, decisively, and strictly in accordance with the acceptance plan. In practice, it is more difficult to get on-site cooperation: no subcontractor is willing to carry out tasks such as repairs and cleaning, and the reason is simple – it results in losses. This requires patient and meticulous persuasion, explaining the pros and cons. It’s best to prepare your own repair team as well, to step in when it counts. The cost is of course deducted from the subcontractor. The only purpose of combining both hard and soft approaches is to get the job done. Another challenge at the site is that layoffs often start with the on-site staff first. This can easily lead to psychological imbalance in them, and if not handled properly, it can cause great trouble in their future work. What to do? My experience tells me to uphold fairness, treat people with sincerity, and move them with empathy. In fact, rationally they are able to accept the reality of layoffs; it’s just emotionally that they can’t. They had the highest output during the construction period, and now they are the first to be laid off – it’s as if they’re being discarded once their use is over, or even before that, they’ve already been gotten rid of. Therefore, those responsible for wrapping things up also need to understand their feelings. When deciding on layoffs, try to help them find future jobs and arrange a good place for them to go. If that’s not possible, consider offering things such as bonuses or souvenirs. Even giving them some time, sending a car to take them around the construction site for a tour or taking photos with them can be helpful. In short, within the limits permitted, help them as much as possible to reduce that sense of being abandoned once someone leaves. Their achievements should be fully recognized. I once said to an engineer who was laid off, “Although you’re leaving, you need to continue to have an impact.” Later, he gave me a summary that contained many useful insights and suggestions for future work. Throughout the entire completion work, there was not a single instance of unnecessary losses caused by staff shortages; everything proceeded smoothly. To this day, I maintain good relations with most of them. Of course, institutional measures have also been put in place to ensure that the information, data, documents, etc. that need to be collected are obtained in a timely manner. The system must be strict and merciless, so that people can be compassionate. IV. Sequence and quantity of items to be inspected: This is primarily determined based on two factors: contractual interests and the actual conditions on site. Generally speaking, it should be \"develop one as it matures\" and the earlier it is handed over, the better. Because after the handover, it is possible to reduce one’s own costs, enter the defect liability period sooner, transfer responsibilities to the owner earlier, and it also facilitates the settlement of project payments and warranty funds more promptly. Of course, this requires negotiation and definition by the contract department as well as the supervision and owner parties. However, if the project is small and the benefits of layoffs or cost reductions are not significant, it may be advisable to combine the acceptance and handover of several sub-projects; this can reduce the costs associated with acceptance and handover while improving efficiency (including in terms of interpersonal relationships). V. Thorough preparation: The handover and acceptance process is a tedious and repetitive task, so thorough preparation is necessary. There are mainly two aspects: data and the site, especially the data. The documents must be prepared in full in accordance with the regulatory requirements ； On-site work mainly involves defect repair and cleaning prior to acceptance. During the preparation process, involve the supervisor and the owner as early as possible so that issues can be resolved promptly. If there are certain problems that cannot be solved before the inspection, seek their approval to include them among the outstanding issues, in order to avoid delays in the inspection process. Also, generally speaking, the supervisor and the owner are not inclined to conduct inspections in advance; therefore, the person responsible for the inspection needs to repeatedly request such inspections, making good use of various opportunities until approval is obtained. What is the sign of being well-prepared for success? It’s just a feeling of things happening naturally as they should. All the problems were resolved before the acceptance process; on the actual day of acceptance, it was merely a formality – just a signature was required. VI. Standardization: The first acceptance test is quite difficult, so it is essential to ensure success – failure is not allowed. After passing it the first time, some programmed elements suitable for that project can be obtained, making subsequent inspections much easier. Another meaning of standardization is that the requirements specified in contracts and regulations must be strictly followed; no further explanation is needed on this point. VII. Benefits of overseeing and participating in handover inspections The greatest benefit is the improvement in quality awareness; no one wants to be responsible for fixing others’ mistakes. When you go through the handover inspection process, and you’re frustrated by issues that arose during the construction phase, your sense of quality awareness naturally increases. If you don’t want to be scolded by those behind you, you must do your current work well. Additionally, there is the improvement in skill level, especially in terms of having an overall understanding of the project. During construction, it’s impossible to take care of everything; that can only be done during the handover and inspection phase, which serves as a comprehensive review. Even so, there are often some old and forgotten trivial matters that are dug out again and dried once more. What else? I am confident that, despite facing new challenges, I am definitely able to complete the final tasks such as handover and acceptance properly.