INCREASING PRODUCTIVITY IN THE CONSTRUCTION MANAGEMENT

INDUSTRY: HOW TRADITIONAL METHODS AND TECHNOLOGY HAVE

IMPACTED EFFICIENCY, PROJECT SCHEDULES & NEIGHBORHOOD

DEVELOPMENT

____________

A Thesis

Presented

to the Faculty of

California State University, Chico

____________

In Partial Fulfillment

of the Requirements for the Degree

Master of Science

in Interdisciplinary Studies:

Construction Management

____________

by

© Luis J. Tiznado

Spring 2019 1

INCREASING PRODUCTIVITY IN THE CONSTRUCTION MANAGEMENT

INDUSTRY: HOW TRADITIONAL METHODS AND TECHNOLOGY HAVE

IMPACTED EFFICIENCY, PROJECT SCHEDULES & NEIGHBORHOOD

DEVELOPMENT

A Thesis

by

Luis J. Tiznado

Spring 2019

APPROVED BY THE INTERIM DEAN OF GRADUATE STUDIES:

________________________________

Sharon Barrios, (Ph.D.)

APPROVED BY THE GRADUATE ADVISORY COMMITTEE:

________________________________ ________________________________ Carson Medley, (Ed.D.) Chris Souder, (MS)

Graduate Coordinator Chair ________________________________

Mathew Thomas (Ph.D.) Committee Member

2

PUBLICATION RIGHTS

No portion of this thesis may be reprinted or reproduced in any manner

unacceptable to the usual copyright restrictions without the written permission of the

author.

3

DEDICATION

I would like to dedicate this thesis to my mother Elizabeth Navarro, me has mostrado

resiliencia en tu misma, y por eso pude cumplir con mis deseos de lograr este sueño. Te

amo, y todo los dias dificiles nomas pensaba en ti, y ese pensamiento me daba la fuerza

para marchar adelante. Gracias por pasarme tu humildad, tu valor y resiliencia.

Thank you for your encouragement along the way and support to my father Jose Luis

Tiznado, my sisters; Evia, Janet & Liz, my brother in laws ; Jorge, Luis and Bryan. I’d

like to dedicate this to everyone who took the time to hear out the challenges of this two

year journey, your ability to simply listen made the world of a difference, when all I

needed was to be heard.

4

ACKNOWLEDGEMENTS

I would like to thank all of those involved in the culmination of this project. I

would like to express the deepest appreciation to my health and wellness mentors,

financial mentors, academic mentors and those who were there for me from the start.

Thank you to my committee Chair, Chris Souder who took on the role and

commitment to guide me towards the right direction. Chris took over the role of

committee chair on last minute, and since the first day I met with him, he made a

significant impact on how I approached my research. Despite a very compact schedule

Chris never rushed our meetings nor made himself unavailable, it was inspiring to see the

amount of workload he had, yet the amount of time he gave towards the development of

this thesis. Chris was always there for me, regardless of how “high maintenance” he

thought I was. Thank you for your unselfishness and mentorship throughout this journey.

It seemed like every week the universe would give me one more reason to

discourage me from obtaining this degree, and that is when Dr.Carson came in clutch. I

couldn’t have done this without his mentorship. More importantly he let me dive into my

research and conduct a mixed methods study, despite the immense workload that came

along with it. I specifically remember emailing him at midnight one day, ready to quit, he

made himself available the very next day and walked out of his office with a certain ease,

confidence and even a pep in my step! That is the Dr.Carson effect.

5

TABLE OF CONTENTS

PAGE

Publication Rights ....................................................................................................... iii

Dedication ................................................................................................................... iv

Acknowledgements...................................................................................................... v

List of Figures................................................................................................................ viii

Abstract ....................................................................................................................... ix

CHAPTER

I. Introduction 12

Background 12 Statement of the Problem 13 Purpose of the Study 14 Definition of Terms 15 Limitations of the Study 16

II. Literature Review 18

Introduction 18 Background Information 19 Scheduling in Construction Management 22 Productivity in Construction Management 26 Leadership 29 Disconnect Between-Field and Office 31 Conclusion 34

III. Methodology 35

Survey 35 Instruments 36

IV. Findings and Results 37

Phenomenological Analysis 53

6

CHAPTER PAGE

V. Conclusions and Recommendations 59

Conclusions 59 Recommendations 60

References 61

Appendix 1 --

7

LIST OF FIGURES

FIGURE PAGE

1. Demographics of Study 39

2. Field of Study Responses 40

3. Respondents Company Positions 41

4. Factors Decreasing Productivity 42

5. Factors Increasing Productivity 43

6. Projects Under Budget 2019 44

7. Measuring Productivity 45

8. Impacts of New Systems in Place 46

9. Confidence Levels in GC Scheduling 47

10. Technology Impact on Productivity 49

11. PlanGrid and Productivity 50

12. Top Qualities of a Leader 51

13. Improving as a Leader 52

8

ABSTRACT

INCREASING PRODUCTIVITY IN THE CONSTRUCTION MANAGEMENT

INDUSTRY: HOW TRADITIONAL METHODS AND TECHNOLOGY HAVE

IMPACTED EFFICIENCY, PROJECT SCHEDULES & NEIGHBORHOOD

DEVELOPMENT

by

© Luis J. Tiznado 2019

Master of Science in Construction Management

California State University, Chico

Spring 2019

The rapid increase in construction projects and development has left a large

gap in academic research for industry enhancement, The Bureau of Labor Statistics

projects employment for construction managers to increase 11% from 2016 to 2026, a

rate exceeding any other job occupation (Gross and Marcus 2018). With nearly 100% of

graduates, going directly into the high demand job market, few are pondering the lack of

productivity rates in the industry. Complex projects and accelerated schedules require an

in depth analysis of the current state of the industry. What do modern companies seek for

in a future project manager or city planner? And how do traditional methods of managing

and planning impact projects? Does technology play a significant role in streamlining

9

documentation and information? Regardless of project size, technology has proven to aid

in critical aspects of project management, yet it leaves areas for improvement. With

industries like the agricultural industry raising production levels , one leaves to question

what is holding back the construction industry from steady levels of productive building

(USDA 2018). Productivity in building has decreased, therefore I sought to look at what

are the constraints and strengths of project management and building. With an overview

of scheduling, productivity management and leadership this research paper will identify

areas in the industry that need attention for continuous improvement.

Furthermore, I sought to look into how increasing productivity in public

works projects can impact neighborhood development. The study found that 76% of

public works projects are behind schedule due to the labor shortage and skill sets of low

bidders (DeHart 2007).

This case study examined how leadership in the construction management

industry helped boost productivity and examined the success rates of construction

projects. I conducted daily observations while shadowing a project superintendent for a

period of 3 months, interviewed 63 project managers, superintendents, and foremen. I

sent out 182 surveys and gathered 63 responses in order to collectively create solutions

and a conclusion. Lastly, I sat down with (7) professionals in the industry and

interviewed them on questions that pertain to the construction management industry. The

findings conclude the largest factors hindering productivity rates in construction are;

10

absence of skilled trades, lack of interest in skilled trades, disconnect between the office

and field personnel & lack of centralized leadership.

Although this research is rich in content, there are a variety of fields that need

to be analyzed for further development. The lack of research and publication in the

construction management industry has made it difficult to gather data on existing issues,

the high demand job market influences students to go straight to work post graduation.

Future research will require an overall view of project management, diversity in the

construction management industry, and an extensive analysis on the impact that

technology has had on students desires to learn trade skills vs technological applications.

11

CHAPTER I

INTRODUCTION

Background

The increase in collaborative methods and technology in the construction

management industry has prompted new methods of management and challenged

productivity levels within trades. Different scheduling techniques have been at the

forefront of discussions with project owners and general contractors when bidding for

projects, more importantly executing schedules on a daily basis.

A typical construction project will include a project manager, who oversees

the project in its entirety, project engineers, who assist the project by having a keen eye

on design documents, project specs and coordination meetings with trades. Lastly

superintendents and field engineers serve as the liaisons between the building and the

office, typically having a better understanding of the projects quality and safety.

Superintendents are at the forefront of assuring that the building meets the baseline

schedule and that the quality of construction is meeting the owners needs. With a need for

advanced technical skills in construction management also comes the need for soft skills

in construction management. This research study incorporates the importance of

leadership in the industry and which specific traits best contribute towards the overall

success of a project. The respondents of the 22 question survey also shared what

leadership traits they most need improvement on.

12

Traditional methods of scheduling and planning through project constraints

originally consisted of face to face meetings with field foremen and engineers. With the

ever increasing amount of schedule demands we have looked at technology to replace

field meetings which has introduced new challenges to the construction management

industry. The current gap between traditional methods of building and new methods of

construction management, hinders productivity and often delays schedules while having

an impact on the project budget. The theme of “difficulty adapting” to new methods was

evident throughout the research and survey.

Statement of the Problem

Too many construction projects fall behind schedule and over budget. This

study seeks to find common factors in the construction management industry that deter

project base schedules and budgets. With ever increasing complexity of standards, safety

regulations, collaborative design build techniques and importance of leadership - the

industry has been stagnant in producing results for owners. This study will look at what

scheduling methods and techniques have made recent projects successful, and which

techniques have proven to not meet schedules and budgets. Along with gathering data

and phenomenological research, this study highlights leadership traits that the industry

deems to be important towards project productivity and successful completion. A project

is successfully completed when the relationship between the owner and the general

contractor remains positive and there remains opportunity for repeat work (McConaughy,

T., and Shirkey, D. 2013)

13

Purpose of the Study

The purpose of this study is to answer the following questions:

1. To what extent, does the traditional critical path method of scheduling produce better

results than a last planner method?

2. To what extent, does a lack of leadership impact a construction projects productivity?

14

Definition of Terms

Critical Path Method Scheduling (CPM):

The sequencing of project task durations, figuring out which tasks require the longest

durations. A systematic method of scheduling, standard in the industry (Project

Manager,Web)

Field:

Construction personnel involved with the day to day activities of the building, typically

spend a majority of the day on the job site.

Field Management:

A supervisor of construction activities and the construction related activities on a project.

General Contractor (GC):

A business entity that contracts to be in charge of a building project usually involving the

use of subcontractors, typically hired to meet the needs of an owner.

Last Planner System (LPS):

Collaborative method of scheduling allowing for each trade specific foreman to plan

activities and durations in collaboration with other trades. The idea is that field foreman

have a more realistic understanding of day to day operations, therefore providing a more

realistic view of project schedules.

Soft Skills:

Personal attributes of an individual that enable someone to interact effectively and

harmoniously with other people (Indeed, Web)

15

Limitations of the Study

The limitations of the study were; response time, lack of published data in

construction management, and diversity in respondents. The construction management

industry is a male dominated field which resulted in a majority of respondents being

male, women in management in other industries responded differently to surveys than

their male counterparts,offering a different perspective (NAWIC 2015). Limitations to

the literature review were evident as it became increasingly difficult to find scholarly

sources and data that has been previously published. There have been publications in

foreign countries that the research team was able to analyze, the high demand job market

attracts professionals seeking employment right after a traditional 4 year program which

hinders data collection.

When conducting the face to face interviews and phenomenological studies

,there was a shift in answers, attitude and approach to construction management from

baby boomers and millennials. Millennials responded positively to collaborative

methods of design and building, yet lacking trade specific knowledge, the gap in the

research will later be discussed in chapter IV. Baby boomers often let their egos get in the

way of their problem solving. The ideology of those with field experience in trades and

building, differs than newer generations who do not have field experience and solely

academic experience, the gap is evident. Too often field management that I spoke to and

interviewed had a different perspective towards management, one that uses power and

16

masculinity to make decisions. As I observed interactions between field workers and

superintendents it became clear that those with knowledge in the “field”, were respected

more and listened to more often. When interviewing younger generations of project

engineers, there seemed to be a lack of experience in the field yet more open to

collaboration. The lack of field experience often made it difficult for collaboration

between the field and office personnel.

17

CHAPTER II

LITERATURE REVIEW

Introduction

This study investigated, previous and current, factors that drive successful

construction projects. Along with analysis of proven success in the construction industry,

a myriad of studies have exemplified what deters a construction project from meeting

baseline schedules and budgets. Before analyzing technical trends and theoretical

frameworks, it is important to understand the history of this complex industry.

The construction management industry regained financial stability, following

the market crash of 2008. After making $550 billion in revenue, the construction

management industry hit a low of $350 billion in revenue FY 2009, since then the value

of construction has shown steady growth rates (IBIS 2017). The rising value of

nonresidential and commercial construction drives the demand for construction

management services, which creates a demand for an in depth analysis of the current

conditions and leadership of the industry. Along with current trends and analysis, it is

also important to look at the factors that deter construction management productivity

rates.

The rising value of construction increases the risk of poor conflict

management. The risk is increased, when project teams are not equipped with best

18

practices and personnel that can successfully manage a project. Construction

management services manage projects on an at-risk basis, more than often taking legal

responsibility for owners and developers of buildings. IBIS World predicts that these

services will continue to grow within the next 5 years, due to the continuing demand of

construction and building renovations (IBIS 2017). Private construction projects and

nonresidential projects are among the top clients for the industry, without proper

leadership standards and evaluation of productivity, the industry will continue to remain

stagnant in production (McKinsey and Company 2017). Why has the construction

industry remained stagnant in production rates meanwhile continuing to grow profit

margins? Common trends are put to practice on a daily basis; critical path methods of

scheduling, leadership tactics that used to work ie; prideful superintendents, yelling and

communication skills without the use of technology. Do the factors I previously

mentioned still enhance a projects value and “get the job done?” What current changes

are being made by the most successful industry leaders that are profiting their

companies?

Background Information

The construction management industry has shown exceptional growth

rates throughout the last 5-8 years, yet there are variables that deter growth . Although

“Consumer confidence is at a 17-year high, unemployment is at a 17-year low”, the

margin in consumer confidence and unemployment have shown implications on project

productivity (Associated Builders and Contractors 2018). The demands for skilled

19

workers and office personnel both parallel the driving needs of the industry (Associated

Builders and Contractors 2018). The labor shortage is one of many factors that contribute

towards low productivity on projects, with labor shortages and a decrease in interest in

trade schools, the need for an analysis in construction is needed now more than ever.

Construction management projects are complex due to the constant change in

contributing parties and factors that play into making a construction project successful.

The unexpected changes, whether the changes come in form of design faults, owners

request or due to lack of planning are the basis of schedule and budget overruns.

According to McKinsey & Company roughly “98 percent of megaprojects suffer cost

overruns of more than 30 percent; 77 percent are at least 40 percent late” (McKinsey &

Company 2013). The demand for accelerated schedules and quality project management

influenced me to look in depth at the modern needs of the industry.

Conflicts are inevitable when managing large scale projects. For the purpose

of this paper I will identify conflicts as attended and unattended dynamics. Conflicts can

be explained as attended and unattended dynamics, in which Love et al describe the

former as activities in the project that are planned and programmed, such as techniques,

and technology, decision making, project structure and behavioural responses, the latter is

described as project related uncertainties, organization related uncertainties and human

related uncertainties. I will elaborate on project related uncertainties and the human

uncertainty factor in “Productivity in Construction Management” (Love et al 2017).

20

Project constraints arise daily, the longer they go unnoticed the larger the

potential to impact the project. The discussion on project impact revolves around

schedules and budgets; whether it be lack of skilled trades, low resources for companies

that take large bids, design issues, or often lack of communication between the field and

the office - constraints need to be managed. Schedules are often put in place as a system

of tracking work activities and durations, when project collaborators all agree on

durations a higher percentage of tasks are completed- thus increasing productivity (Mavi

and Standing 2018) .There is no single formula or template that can be used to manage

workflow, but the theoretical framework and literature review I have outlined, pieces

together management practices with quantitative research on modern trends.

Contractually engineers and construction management personnel have adapted

and created ways for a streamlined process of documentation flow, contracts tend to be

relatively standard. (Love 200). When changes occur, projects become “at-risk”, due to

the unforeseen changes in the design and building process. Project managers who foresee

issues arising and can prevent them are at the upper echelon of the industry, meanwhile

those who react to changes tend to struggle the most (Love et al 2001).

The goal of a construction project is to provide the owner with the project that

they want, in a timely manner yet still to a higher level of quality than other competitors

(Love et al 2001). Aside from systems in place that enhance project management,

successful industry leaders flourish when they are able to apply both systems in place

with leadership and soft skills in the industry.

21

Currently the definition of leadership in construction management is vague

(UK Construction Report 2007). With private entities attracting their own unique

stakeholders, the construction industry lacks an individual who is a main player in the

industry, the concern is a general guideline for leadership in the industry is missing. This

study differs from previous research in that it; heavily focuses on the “soft skills” and

human approach to construction management, furthermore how soft skills can enhance a

projects value. The existing literature has only briefly discussed the importance of

leadership.

Scheduling in Construction Management

The construction management industry has a multitude of scheduling

methods. Two methods that have proven to be effective when scheduling projects are the

Last Planner System (LPS) and the Critical Path Method (CPM). The last planner system

can be used as a component of the critical path method, if the owner and general

contractor allocate time and resources at the forefront of the project (Love et al 2001).

Love elaborates on attended dynamics of a construction project, these are the basic

project systems that are typically structured and a part of company culture, like the CPM

of scheduling (Love et al 2001). The gap in academia and current state of the industry are

the unattended dynamics, in which are typically “unexpected events and uncertainties

causing changes”, the schedule of a project can be put in place, but the way in which one

manages the changes is the focus of this section. When companies invest in the resources

to implement the LPS, they are increasing their profitable margins and opportunity for

22

future repeat work for the client meanwhile focusing on unattended

dynamics(McConaughy & Shirkey 2013)

The last planner system is effective, but it requires collaboration and a great

amount of teamwork on behalf of all trades (Patel, 2017). Large groups of collaborators

prompt for a larger amount of differences, the time constraints, pressure and pride add

layers to the difficulty of agreeing on differences which then begins to make the LPS

process ineffective. Pull planning sessions are collaborative work sessions that allow for

each subcontractor to voice their durations and constraints, giving a better micro vs

macro view of the project. I will discuss the human aspect that is often overlooked when

creating systems that create successful projects in further sections. The critical path

method of construction scheduling allows for the general contractor to provide durations

to the subcontractors, in which the subcontractors typically follow due to the nature of the

hierarchy or often times contractually.

According to McConaughy and Shirkey, typical construction management

planning systems “led to decreased schedule reliability and ineffective constraint

analysis”, which created project delays and budget overruns (IGLC-21 2012) Constraints

need a timely and consistent method of funneling through the correct personnel on a

project, when constraints are not managed on a micro level they are often forgot about

and can eventually have an impact on the project schedule. When subcontractor foremen

are limited in voicing their constraints, a project can be in jeopardy of failing, this often

happens when a GC creates an environment that does not allow for subcontractor input

23

(Vaux and Kirk 2018). When GC superintendents provide critical path method schedules

and have a stigma of demanding work or have leadership traits that do not let other

parties voices be heard, the project is in jeopardy already. This existing literature is often

alarming, as it proves how much ego and lack of communication can deter a projects

early completion, the construction industry has grown so rapidly that the impact of soft

skills in efficient schedule management has not been studied.

The superintendent of your modern day construction project must not only

have technical trade knowledge, but must carry the soft skills for subcontractor buy in

and collaboration. “There are behavioral aspects and sub trade levels of engagement to

consider”, these sorts of human interactions are covered in the last planner system by

nature of collaboration (McConaughy and Shirkey 2013). Scheduling systems are

systems in place that can be taught, yet the implementation of a schedule and methods of

implementation are not discussed in courses and company trainings.“Without buy-in

from the Superintendent or Project Managers LPS will not succeed”, when you gather in

the field you are now being proactive as opposed to reactive and that has a lot to do with

the success of a project, once again looking at the micro vs macro of a project. Solving

issues in real time, or having the personnel in the room that can identify issues prior to

them arising is one of the most important elements of the last planner system, which is a

component of the CPM of scheduling.

Human issues do not present themselves as often in design phases of the

project,as frequent as they do during the implementation phases, therefore having a keen

24

eye on the soft skills superintendents, laborers, foreman and workers have is an important

key towards efficient project completion (Howell 1999). The reality of modern day

projects is that owners are pushing for faster schedules and higher quality, which often

leaves project teams leaving very little time for; collaborative team building, pull

planning and tracking the benefits of collaboration, Shirkey states that “One of the

biggest impacts of LPS is the human element of the construction team,” which is often

not considered when driving construction schedules.

Collaboration is successful with the proper management personnel and

systems. Superintendents who are at the forefront of construction schedules seem to have

had the most pushback with collaborative methods of scheduling throughout the study of

various literature (Vaux & Kirk 2018). There is no question as to why the transition from

ego-dominated managing to collaborative methods of managing have been difficult for

companies to adopt. Changing methods of scheduling often causes people to panic,

especially those who have grown accustomed to driving project schedules without the

human context in mind. A vast majority of superintendents want to stay in a comfort

zone, and “people generally don’t need to learn new things and therefore don’t change”

when that occurs, the modern day superintendent must have a strong balance between

office management and field management (Koskenvesa & Koskela, Vaux & Kirk 2018

20189 ). Current research exemplifies that when you plan and budget for the LPS

sessions, the initial benefits of having pull planning sessions would “significantly offset

their investments” (Fauchier 2013)

25

Productivity in Construction Management

Understanding productivity in construction management is complex in a myriad

of ways. Productivity in the office, in design, in the field and throughout the closing

stages of a project. This research paper focuses on field productivity, specifically, what

design teams and superintendents can do to make their foreman and tradesmen more

productive. Productivity is simply defined as, units of product per labor hour. The correct

systems that construction personnel put in place to increase the amount of work per hour

meanwhile satisfying quality and safety is the main target for an increase in productivity.

The concept of “Lean Construction”, best explained by Gregory E. Howell, has

introduced the idea of better meeting customers needs while using less of everything”,

although delivering projects quickly is a bonus - production causes errors (Howell 1999).

Current literature points towards material management, lack of management experience

and ineffective communication between the office and the field as leading causes for lack

of productivity (Dozzi, S.P. & AbouRizk, S.M 1993.)

Providing the owner with accurate and realistic schedules boils down to the micro

activities that are often overlooked by a general contractor-such as material availability.

Material is a resource that consumes up to 70% of a project budget, so it would only

make sense to perfect the systems in place for managing material Dozzi, S.P. &

AbouRizk, S.M 1993. Field foreman on average spent “25% of time being delayed

because the material was not available” according to an annual productivity report in

Canada (S.P. Dozzi P.Eng. Et al 1993). The lack of effective material management

26

systems and research is needed in the industry for further enhancement. PlanGrid’s 2018

industry report claimed that respondents spent roughly 5.5 hours a week searching for

material data and information, which could have been prevented (PlanGrid 2018). A main

demotivator for a tradesmen is the poor management and non-availability of right

material, tools or equipment for a jobsite, the demands are high and as foreman are

pressured to complete schedules, little room left for improvement-therefore industry

analysis and studies must look further at (Dozzi, S.P. & AbouRizk, S.M 1993.)

In order to have a positive workflow, the first factor in place must be the presence

of skilled labor. The decrease in skilled trades needs to be addressed for future

productivity. Woodworkers, electricians, welders, plumbers, carpenters are a scarce

resource, which often leaves specialty subcontractors that overcommit to work delaying

schedules due to shortage of labor. The US Markets Construction Overview found that

subcontractors are “Getting too much work too fast”, meanwhile not having the

resources to keep up with required production levels and schedules (US Markets

Construction Overview 2018). Existing research points towards a fast growing market

and companies “Not knowing when to say no to work” (US Markets Construction

Overview 2018).

A successful project is complete when there is opportunity for repeat work with

the client. Too often contractors deplete their resources to meet project schedules for the

sake of maintaining a good relationship and a possibility of repeat clientele. The example

of car manufacturing can put this idea into perspective, Howell elaborates on the

27

increased margin of error in Toyota assembly lines,“Just as defects were often left on

cars, so are materials damaged and the quality of construction suffers when one attempts

to push production levels” (Howell 1999). High production does cause errors, but high

production that is well managed can also aid in profit margin gains , the industry is

currently facing low productivity meanwhile analysis of how to improve is stagnant.

After the market crash of 2008, there is no question as to why people lost interest in the

construction industry, “we witnessed a total of 1.5 million skilled workers lose their jobs”

(Richardson 2018). The loss in interest could be a factor towards the “elimination of

vocational training in high schools”, that as a result cut off much of the pipeline for

blue-collar workers.” The research at hand identifies the decrease in vocational training

as a factor towards the decrease in tradesmen. Before the great recession, labor was not

a scarce resource, the recent push for young students to attain a college education has

shifted the majority of students towards an academic based or engineer training. The

shortage of skilled trades will soon become a problem when baby boomers and beyond

begin to retire. “Approximately 80 percent of construction businesses are currently

having difficulty finding qualified skilled labor - Compounding this problem, a whole

generation of younger workers are no longer even considering construction as a viable

career option”, there is a stigma of working a blue-collar job that needs to be addressed in

further research. Many high schools have phased out shop classes, and parents

increasingly have steered graduates to “four-year colleges and white-collar careers”

(Tradesmen International 2018).

28

Leadership

Leadership within the Construction management industry contributes towards the

overall success of a project. Not only are leaders within the industry essential towards

project completion but also have an impact on the external relationships with

stakeholders, which in turn creates opportunities for repeat work (Hagberg 2006).

Although there is not a single definition that can define a leader in the industry Chan’s

definition of a leader provides a guideline towards what soft skills enhance project

completion. Leadership within the construction industry can be defined as the

development of :” people, places and events”, or simply the ability to influence people

towards a common goal (Chan 2008). The survey conducted by the research team

exemplified that leadership was essential towards a projects overall success, balanced

with industry knowledge. The fundamental skills of a leader display; communication,

understanding the industry and strategic vision (CIOB 2007). Current academia fails to

provide research on what practices are in place to develop leadership as it pertains to the

construction industry specifically. Leadership can be transferred between industries, yet

the central idea of leadership has yet to come to light in the industry.

Given that the industry is heavy in project management, I believe it is important

to identify the differences between management and leadership. There is a clear

distinction between an individual that manages and one who leads. Although different,

current research uses leadership and management interchangeably, but that is a part of

the problem - they are different in nature. Chan linked leaders towards empowerment and

29

long term vision, whereas managers are more interested in managing the daily routines of

employees (Abraham Zalenzik 1977). It is important for CEO’s or Human Resource

developers to establish guidelines and standards in the industry for incoming engineers,

foreman, managers and superintendents. Leadership is a trait that can be practiced and

learned, therefore universities and companies should consistently keep an eye on trends

and practices for continuous education. Although leadership is evident and each company

may have their key leaders, “A better understanding of central leadership skills required

of project managers and superintendents would benefit education training and

development programs in the construction industry”, which in turn would increase project

productivity and profit margins (Hagberg 2006).

In a sample conducted by the Chartered Institute of Building, the research team

found that the highest proportion of answers to the question”Who is the most influential

in the construction industry”, said ‘none’ or ‘don’t know’ (CIOB 2007). The lack of

central leadership is evident once again as many respondents were “unable to name any

influential leaders in construction”, this allows us to understand that companies are not

making leadership a priority (CIOB 2007) . The same study indicated that more than half

of the companies did not have a documented or defined definition and guidelines for

leadership (CIOB 2007) . What is more astounding is the amount of research that

indicates industry leaders are in need of mentorship as opposed to financial benefits

(Harrison 2018)

30

Regardless of entry level or senior management, existing literature sheds light on

the current focus of the industry in developing future and current leaders. A CIOB study

found that “18% are not developing their leaders in any way; and 45% do not have formal

succession plan or leadership strategy” , existing literature shows that industry leaders are

looking for new “experiences, inspiration, training and clear guidance” , therefore

financial benefits are not creating leaders for a better industry, more mentorship and

training will.

Disconnect Between the Field and the Office

Project teams that figure out the correct methods of management between field

and office are the most successful, and the teams that fail to communicate design and

construction effectively face time and money losses (PlanGrid FMI 2018). When project

engineers and managers are in harmony with field engineers and superintendents, the

project becomes more efficient. A recent study surveying over 600 industry leaders

concluded that $177.5 billion will be spent, on non-optimal activities, activities that do

not aid in project productivity or completion (PlanGrid FMI 2018). The personality

differences and interests of those in the field differ, which make it increasingly difficult

for the two disciplines to seek common ground. This literature review found that there is

a digital disconnect between the field and the office, which ultimately hinders project

completion and delays schedules.

Project engineers are more than often the main source for design changes, which

are now almost completely electronic, rework is the result of failed communication of

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updated designs (PlanGrid 2018). Superintendents and field foreman have struggled with

keeping up with design documents, but that is where research ultimately comes to a halt

and is needed. “There is a significant and constant disconnect between the field and the

office in regards to documentation. It’s challenging for the field guys to find what they

need electronically and when they find it, they are not sure if they are looking at the most

up to date document” (Linq 2018). The disconnect not only delays the project but creates

budget overruns. Communication flow in the industry has a direct correlation towards

project productivity and continuous improvement. The gap in field and office

coordination and divide exists 1) because this issue is relatively new due to the surge in

use of technology within the last 10 years and 2) the industry is hiring graduating seniors

for immediate work, with very little room for interpretation and analysis of current

industry trends. The generational differences both human aspects and attended dynamics ,

systems in place, must be understood by both the field and the office in order to

successfully manage a project.

Generational differences in construction management have a profound impact on

day to day conflict resolution, project management styles and overall project

communication. The human related uncertainties that Love et al allude to describe the

disconnect between older generations and new generations. The constant changes in

behavior from people that collaborate on a project adds to the layer of complexity in

project management, “Human related uncertainties:people and situations need to be

treated on their merits, thus Fryer suggested that a contingency approach is needed (Love

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2007) . The effectiveness of human resources is affected by individual traits, social

background, religious beliefs, customs, lifestyle, education level, work conditions, etc.”

The need for a more in depth look at how human related problems deter projects must be

evaluated, yet there are very few studies on how human related uncertainties impact

project completion. The attended dynamics have been put in place as a tool for success,

now we must look at the soft skills that pertain to the construction industry.

Research shows the benefits of collaboration and using the LPS throughout the

course of a project will aid in productivity (citation). The significance behind the LPS is

that it is dependent upon reliability of the subcontractors willingness to cooperate with

the GC,“Lean supports the development of team and a willingness to shift burdens along

supply chains.Where Partnering is about building trust, lean is about building reliability”,

collaboration and shifting burdens across a project team will build reliability. A field

crew does not often trust the lack of experience from the project engineers and younger

project engineers do not fully comprehend how bad the digital divide is when sharing

information, this often leads in a communication breakdown between the two.

Superintendents often do not want to adapt to technological changes, which places

a burden on communication flow on the project, conversely, modern day project

engineers stray away from being in the field and speaking to superintendents due to the

disconnect. Learning a new software is not simple, there are “Uncertain environments

under great time and schedule pressure”, that take up most time from the

superintendents-learning modern day technology can seem like a burden (Howell 1999).

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The superintendents that have adapted to using technology as a tool for productivity have

seen success on their projects, but these are all individuals who have invested the time

and resources on learning and adapting to the changes in the industry (PlanGrid and FMI

2018).

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CHAPTER III

METHODOLOGY

This phenomenological- mixed methods study assessed 1) Current trends in

scheduling and experience from knowledgeable industry leaders 2) how the consequences

of poor leadership impact a project’s productivity, time and schedule 3) And

characteristics that make an individual in the industry a leader.

For the quantitative portion of the research, a 22 question survey was

administered to professionals in the industry via SurveyGizmo, an online platform that

collects data and simplifies the quantitative analysis of responses. With 182 surveys

being administered, 63 responses were received for a 34.6% response rate. The survey

was administered to project managers, superintendents, project engineers and foremen of

companies primarily in the Bay Area, CA. The research team gathered answers to the

surveys and converted them to charts in order to better present the findings of the survey.

I used evidence found in the surveys as a method to better converse with industry leaders

that I interviewed for the phenomenological portion of the survey.

The phenomenological study included 7 interviews. Among the subjects being

interviewed were ;(2) Project Managers, (3) Foremen, (1) Safety Inspectors and (1)

Superintendent. The interviews were recorded using a “Voice Recorder” App on an

Iphone, then stored in a Google Drive Folder, each interview lasting approximately 30-45

minutes.

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I contacted professionals that had a substantial amount of power in decision

making in the industry in order to better understand the phenomenon of day to day

activities and issues in construction. The amount of “emergent” data, was useful in

finding theoretical frameworks for the literature review and further recommendations of

the current state of the industry (Merriam, 2009, 169). The amount of knowledge that

industry leaders were willing to share was astounding to me.

Intensive research on existing literature was useful in finding current trends

and analysis in the construction management industry. The categories discussed in the

literature review come from a combination of phenomenological research, literature

reviews and a 20 question survey that was administered. All of the information obtained

was helpful in creating future solutions for effective leadership and construction

productivity. The questions that were asker pertained to; trends in productivity, software

usage experience, leadership trends in the industry and preferred methods of scheduling.

Questions can be found in appendix 1.

Participants

The participants of the phenomenological study were all employees of a

General Contractor in CA, primarily San Francisco and Chico CA. The participants all

had more than 3 years of experience in the field and academia. Survey respondents varied

across the United States, with a large majority of them residing in California.

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CHAPTER IV

FINDINGS AND RESULTS

The purpose of this study was to find trends in the construction industry that

need to be further looked at and improved upon for industry growth. Participants

answered a 22 question survey, with all answers being analyzed and presented through

graphs by the research team. Throughout a 3 month period the researcher shadowed a

superintendent of a billion dollar company, with over 30 years of experience. Every day

the researcher produced field and observation notes of the superintendents managing and

leadership practices. Lastly, the researcher conducted a phenomenological study

interviewing (7) professionals in the construction industry. The following findings and

results include transcriptions from professionals in the field, used to support the findings

from the survey.

I wanted to sit down and interview experts in the industry that would help me

better understand the disconnects that are present in today’s rapidly increasing industry.

The synopses and stories that the subjects were able to elaborate on, provided a

theoretical framework which allowed me to pick themes for further research and

conclusions.

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Demographics of Population

Recipients of the survey were asked how long they were in the construction

management industry, over 90% of the respondents answered with over 4 years of

experience. It is important to identify the depth of experience coming from each

recipient, the respondents gave the research team confidence in that their responses were

credible, due to their lengthy involvement in the construction management industry.

(Figure 1)

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The majority of recipients came from strictly academic backgrounds (76.2%),

surprisingly (19%) answered that they had field or trade experience, which contributed to

the research gap.

(Figure 2)

At Least 23.8% of the respondents had experience in day to day activities and

field related construction knowledge. It was important for the research team to receive a

balance of academic related management and field related management responses. Both

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spectrums perform different daily tasks meanwhile contributing towards the overall

success of the project.

Although we had enough respondents with field experience to get a good insight

on day to day activities, a majority of their current positions are project managers. The

responsibility of a project manager is to oversee all project design, cost and scheduling

related items, the project manager should have more knowledge about the construction

industry than any other position. The respondents were able to give knowledgeable

insight on their experiences in and out of the field.

(Figure 3)

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Productivity in construction management is a variable of improving the industry that the

research team analyzed, we asked about contributing factors that aim in increasing

productivity, conversely, analyzing factors that decrease productivity in the industry,

figures 5 and 6 show our findings.

(Figure 4)

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Poor leadership and rework were among the top factors for decrease in productivity, other

notable responses were lack of material availability and poor planning. The next figure

indicates what helps increase productivity.

(Figure 5)

Coordination amongst construction personnel, both field and management received 64%

responses. Interesting enough leadership was the second with 22.6%. A quality of a

leader in the industry is one who can coordinate amongst various parties, meanwhile

42

adapting to a changing environment. The question allowed the research team to find

industry specific leadership traits.

The leading companies in the construction management industry deliver projects

on time and under budget, understanding percentage of projects that have been

successfully completed under budget is important for analysis on current trends.

(Figure 6)

With increasing demands from owners comes a huge responsibility to meet their

requirements meanwhile managing a tight schedule and quality. Building and installing

equipment correctly prevents project rework, but when a schedule is accelerated or

laborers are pushed to work faster, the quality of the project then decreases. The rework

will add to the budget, therefore understanding how many projects the respondents have

had come under/over budget was essential towards the research team's findings. The

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metrics for tracking productivity also give insight on what best practices are being

utilized.

Companies use different methods to track productivity; As-builts, MS-Project,

field as-builts or tracking tasks completed. Some systems are being implemented more

effectively than others, which in turn helps the overall project budget.

(Figure 7)

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54.8% of respondents used cost reports for tracking project productivity. The

overall premise it to analyze a baseline budget and actual costs to figure the current

efficiency and productivity of a project.

New systems in place could be anything from methods of scheduling, additional

meetings, software used to track productivity or change of management. Every project

manager has a different approach to project management, changing a system can either

help your project or cause delays in the overall completion, the respondents’ responses

are shown in figure 9.

(Figure 8)

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It is more than often ideal to implement a management system at the beginning of

a project. Those who have had experience with new systems in the middle of a project

claimed, the change made it increasingly difficult for the team to shift and adjust. 67%

were in the middle claiming that new management systems in place sometimes help

project schedules.

With 45% of the respondents stating that they were somewhat confident in a

General Contractor capturing accurate sequence of events in a traditional CPM schedule,

leaves room for question and debate on which scheduling preferences are more effective.

46

(Figure 9)

40% claimed that they were confident, in the General Contractor providing the

schedule meanwhile 14.5% claimed to not have confidence in the General Contractor.

The respondents of the survey came from subcontractors and general contractors which

may introduce biases in the findings. Despite 45.2% of the respondents being somewhat

confident in a general contractor capturing accurate sequence of events in a traditional

CPM schedule, research illustrates how often general contractors miss micro constraints.

The confidence factor often plays a role in the trust levels of planning work and

following through with work. Those who were lacking confidence in the GC providing a

47

schedule claimed that their trade knowledge needs to be considered for effective

planning.

When implementing new systems in a construction project there are going to be

positive and negative feedback loops, taking the time to learn and implement a new

tracking system is not a priority when the schedule is delayed and needing attention

elsewhere. With the increase in use of technology in construction, some claim that the

trial and error of technology usage, contributed to decrease in productivity. Regardless of

existing theoretical frameworks, a vast majority of the respondents agreed that

technology has helped increase productivity in the industry. The figure below shows the

majority of the respondents considering technology as a tool to increase productivity.

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(Figure 10)

PlanGrid can be used in a myriad of ways, from tracking conflicts, storing photos,

and sharing project documents. New systems and technology can aid in streamlining

information to other contractors but also create problems when one relies on that system

as the sole method of communication. The figure below shows a balance of respondents

believing PlanGrid helped increase and somewhat helped increase productivity.

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(Figure 11)

38 out of 82 respondents stated to have used plangrid on their projects. 39.5% of those

respondents believed that Plangrid “somewhat” helped increase productivity on their

project sites. The findings were not surprising, as more issues arise Plangrid continues to

adapt to the industry, which means that the software in particular is not compatible with

all users.

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Leadership is often studied, but broadly applied in construction management.

There are a variety of characteristics of leaders that make them influential and successful.

Although the myriad of characteristics can be analyzed and discussed there were

characteristics in the construction industry that stood out the most.

(Figure 12)

Communication was the most important quality of a leader in the construction industry,

with 75% of the respondents picking that option, communication breakdown was also

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seen as one of the largest contributing factors towards project delays (PlanGrid 2018) The

second most chosen answer, was a tie, with strategic vision and collaboration receiving

49%. Existing literature shows that 45% of companies are offering financial incentives as

a method to retain leaders, but the findings of this survey indicate industry professionals

are seeking more mentorship and training.

(Figure 13)

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Part 1 Scheduling and Productivity

The experience one gains from pushing productivity in the field will eventually

lead them towards better overall management in the industry. Project managers that

understand the reality of working in the field tend to be the most successful, this was

evident as I interviewed and spent time with industry leaders (McConaughy, T., and

Shirkey, D 2008). One of the respondents, a project manager, elaborated on how he

started in the field:

“That's how i started, I figured that if I appreciated what the field was doing before I got out of school, I’d have a better understanding of how to build, manage and coordinate in the field, it helped a lot , it helped tremendously.”

The industry needs more tradesmen, but more importantly tradesmen that can manage

and use soft skills efficiently through conflict. An increase in productivity helps with

meeting schedules, but in order to enhance productivity, respondents of the survey

claimed that the third most important quality of a leader is knowledge in the industry,

field knowledge and management;

“When you are driving impossible schedules, it's important to know the reality of building, depending on how detailed you can get your scheduled to be, I learned that the less detail in overall schedule is better off, more detail in the daily planners and look aheads, if you put a lot of detail into those schedules and hitting your schedules., that will make for a more successful project”

A lack of skills and industry knowledge is a contributing factor towards the stagnant

productivity rates and rework the industry faces. Respondents to the survey often

mentioned that training would be the most beneficial for increasing productivity and

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meeting baseline schedules. Leaders throughout the industry find methods of

implementing schedules at the beginning of a project, but sometimes a change in the

system must occur to deviate from a potential schedule delay. When asked if new

“schedules in place”, impact productivity one respondent claimed:

“I think there's so much learning curve right now that on some jobs it's a hindrance because of that, I think that when everyone is on board then we’d be able to streamline the process more.”

Having all parties bought into a scheduling system has proven to aid in project early

completion, but when one party deviates from the plan the plan can become counter

effective (McCaughny & Shirkey 2013)

“having people's participation placed into it is important, so that they all have ownership - or at least so that they think they have ownership”

Although scheduling is a standard system in place for a project, leaders must combine

their soft skills and understand that people are more inclined to help when they feel they

have a percentage of the ownership. GC’s that do not create an atmosphere of open

collaboration, often get hesitation from their subcontractors, which lowers their

confidence level of the schedule. A safety superintendent in San Francisco shared his

thoughts on GC confidence levels;

“I don't have much confidence - they see the macro trends and they do not see the micro trends, okay, they will live the micro trends, but they won't associate the micro with the macros.And as it hits them they might say schedule, quality and budget issues when it becomes a macro trend”

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“Not very high, we never really look at their schedules, sometimes their 3 week look aheads are decent, but they never really end up where they're at”

Part 2 - Leadership

Survey respondents mentioned that having a strategic vision (49%) was the most

important quality of a leader, behind that was having knowledge of the construction

industry with (39%) of the respondents considering that a trait of a leader stating industry

specific knowledge is instrumental. The Charter of Building institute of Construction also

concluded that training and mentorship would help respondents grow more professionally

(CIOB 2007) When I asked the owner of a contracting company in Chico “What would

best help you grow as a leader?” the response aligned with CIOB’s findings;

“Mentorship is always the most important. It’s always good to pair people. So that you don't feel alone, especially project managers - everyone comes to you” “Training and sometimes free time outside of work can refresh a little bit.Trial by fire, I don't have many people to mentor me”

A common leadership weakness that the existing literature and the research team’s survey

concluded, was; coordination and planning ahead. PlanGrid 2018 study on productivity

stated that foreman waste roughly 5.5 hours a week sorting conflicts that could have been

avoided with proper planning (PlanGrid 2018 ). I asked a foreman for a subcontractor in

San Francisco what his thoughts were on: “What makes a good leader and what have you

struggled with in the industry?”

“Most of the time the foreman being reactive instead of proactive, waiting for issues to come up instead of preventing them, before they arise, proactive instead of reactive-lack of planning. Coordination and leadership, go hand in hand”

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Part 3 - Disconnect Between the Field and the Office

Having spent time in the field, doing my observations, and in the office in the

later portion of my day, allowed me to see the disconnect between field and office

management. The divide was evident, office management that had field experience were

more respected than those who did not.

“A lot of PMs don't have field experience , I’d say a lot of superintendents don't have field experience, supers , they’ll come straight out of college, straight to the field and sometimes these ol’ grizzly guys, you tell them what to do and tell them the iron he has to hump over the next few days, if he doesn't have that level of respect, and sees you don’t have that that level of experience and sees that you might not have a full understanding of what you're asking for, they won't have any respect, it's hard to gain that respect if you haven't seen it or done it.”

Conflict management is an essential skill one needs in the industry, the field requires a

higher level of emotional intelligence and ability to put your ego aside. When I asked a

superintendent about the difficulties of problem resolution in the field, he indicated that

pride often gets into the way.

“I had the pleasure of working for a subcontractor for various years, for an underground utility company so contractactors and subcontractors are managed by people, and people have their own, personalities egos, and when contractors are ran by people, you have interactions that you would normally have between two individuals, but a little tense because now you're dealing with money, schedules and egos - it makes it that much tougher”

Making decisions in the field and relating it to management, field often has their hands

tied. Field making decisions is not really a good idea, there are often legal factors to take

into consideration.

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“I think that lots of times its going back to the office, sometimes their hands are tied in terms of making decisions, and there's always that lag where management and field need to coordinate together”

The general contractor on a previous project I worked on mandated that their

subcontractors use plangrid contractually, PlanGrid training was scheduled on various

occasions for trainings-but it was clear that companies were not buying into the software

in its entirety. The office and management were well acquainted with the software, but

the last planners, the foremen, who would benefit more for tracking daily constraints,

were hesitant to use it. Meanwhile the GC relied on PlanGrid to track constraints, field

foreman were not acquainted with the system and inefficiently used it, they left issues

plugged into the software without properly communicating the person responsible.

PlanGrid’s report states that 75% of GC’s provide mobile devices to their field, yet only

18% reported using them (PlanGrid 2018)

Those who used PlanGrid efficiently communicated their constraints and design

issues effectively, those who did not communicate the issues through PlanGrid had

budget and schedule conflicts in the near future. This resulted in a breakdown in

communication and overall project delays. The disconnect between the field management

and office management became evident as we discussed the technology gap. Conflict

resolution in design and contract, requires a different level of emotional intelligence than

conflict resolution in the building and construction phase of a project. The trend of

“masculinity” and “machismo” became evident as I spent my days observing in the field.

Being a field superintendent requires a great amount of poise and ability to adapt to

57

changes, yet still drive a construction schedule to the finish line. A project manager from

San Jose, CA summarized the benefits of collaboration when asked about the need for

“soft skills”, in the field:

“I think the biggest thing is, if we make adversarial relationships, if we make it US vs Them, if we help get subs through the finish line and mutually understand they want to make money and we want to make money, there is a cohesive team, it always works better...If it’s us vs them, if we are constantly beating them up, and then ask for favors, why would they go out of their way to do us favors? At the end we always need them to do us favors, we beat them into the favors and into submission, at the end of the day we all respond the same way, we respond by positive motivation”

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CHAPTER V

CONCLUSIONS AND RECOMMENDATIONS

Conclusions

The intent of this phenomenological mixed methods study, was to provide the

reader with an in depth analysis of the current state of the construction industry. The focal

point of the analysis was on efficient scheduling through collaborative planning,

increasing productivity, closing the digital divide between the office and the field and

creating dialogue around centralized leadership in the industry.

Due to the rapid increase in construction projects and high demand job market for

both skilled workers and management, there is a lack of interest in data analysis. The lack

of existing research made it difficult to provide a structure for a theoretical framework,

but the research team was able to identify the framework through the surveys and

phenomenological research. The transcribes shed light on current issues of the industry,

which led to probable solutions to the problem statement.

The survey and interviews conducted showed that construction companies are not

making leadership a priority and failing to provide adequate training to their employees.

Despite a majority of the respondents indicating training and mentorship will make them

better leaders,46% also claimed that their company offers financial benefits as the main

incentive to retain leaders-not more training. The research concluded that investing in

collaborative pull planning sessions at the forefront of a project, will reduce rework and

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future unexpected costs - only if the pull planning sessions are followed through with

consistently and subcontractors buy into the systems in place. The industry has remained

stagnant in productivity levels due to the constant variable changes on job sites and

amount of work that is available, although profit is at an all time high - so is the amount

of funds that are being wasted on “non-optimal” activities, which do not aid in project

completion. This study is different from existing literature as it takes into consideration

the behavioral aspects and human implications of scheduling, how poor emotional

intelligence delays conflict resolution and creates a non collaborative atmosphere.

Furthermore this research shed light on the implications that can arise when the field and

office management of a company are disconnected.

Successful projects cannot be completed without proper leadership, a lack of

leadership leads to schedule delays, good leaders communicate well, they respond well to

conflict and pressure, and are often influential in making decisions. Construction

companies must make leadership a priority along with profit margins, schools should

begin to include leadership in their coursework. Afterall respondents claimed that

leadership matters (3rd) most in making a project successful, central leadership specific

to the industry needs to be further analyzed and implemented in collegiate courses and

industry trainings.

`

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