Take the simplified path to improve construction efficiency
If there’s one thing that characterizes a project site — whether it’s a capital project or operating facility — it’s complexity. The trick is to manage that complexity and improve construction efficiency.
Anything from weather to skilled labor shortages can affect safety, schedule, and budget. Any disruption can send projects down the wrong path, causing a cascade of delays and cost overruns.
The risks inherent in complexity can often be minimized by harnessing the power of efficiency. Time, labor, and budget can become assets rather than constraints when planning and efficiency are defining characteristics of a job site.
And while predictability can be challenging to achieve, there is an area of any project where it is possible to improve construction efficiency: your site indirects.
Indirects such as tools, scaffolding, equipment, workforce hydration, and other seemingly “small” items make up a significant portion of project costs, and they have a tremendous effect if their availability is interrupted. They are often sourced separately by each contractor on site from a large cast of disparate vendors. Increasing the number of vendors is another variable that further increases the unpredictability.
One proven solution to improving construction efficiency is to source indirects from one major supplier. With a “one hand to shake, one number to call” approach to managing indirects — a complete Site Services® model — project teams can increase efficiency on the site in at least three areas:
Some job site risks fall under or are heavily influenced by site indirects. Instead of individual subcontractors bringing their own tools, consumables, supplies, and construction equipment to the site, those risks are better handled by an experienced Site Services contractor that is prepared and equipped to mitigate them.
For example, a company specializing in onsite management and provision of Site Services will have proven processes, systems, and technology to plan and forecast project requirements properly. Furthermore, the experienced onsite staff will effectively analyze data and make actionable recommendations that eliminate resource redundancy and reduce schedule and cost risks sitewide.
The company will leverage diverse and extensive relationships with manufacturers to combat supply chain interruptions. Engaging a Site Services contractor is one of your risk mitigations, reducing project risk contingency.
This gives engineering, procurement, and construction (EPC) companies a competitive advantage while reducing the Owner’s overall project cost.
Every (sub)contractor involved in a project builds in their own margin, often inflating their indirect costs, and with each one added, the opportunities for duplication and waste increase.
AMECO, The Site Services Company, helps sites improve efficiency onsite by eliminating resource redundancy, maximizing material and equipment utilization, reducing craft labor requirements, increasing time on tools, and limiting the moving parts and opportunities for error, loss, damage, or miscommunications.
A single Site Services provider improves tracking and reporting while reducing the amount of oversight required by site leadership. This allows site leadership to redirect their expertise to the bigger picture.
In construction, what you’ve done is a good indication of what you will do. Choose reliable team members that understand the difference between fulfilling orders and anticipating what is needed to execute projects safely and successfully.
Selecting a trusted advisor with a history of execution excellence is critical. A proven track record and the ability to handle all site indirect needs inside the fence should be evident in their resume of project experience. Their safety performance speaks for itself. Few providers outside of AMECO possess this performance record, capability, and expertise.
Contracting site indirects with one provider requires a great deal of trust, so use a company’s legacy to determine if they deserve it. AMECO has more than 75 years of experience supporting successful projects throughout North America, and we’re trusted as The Site Services Company for capital projects and operating facilities across many complex industries.
It’s clear why more capital projects and operating facilities are changing their Site Services contracting strategy by limiting the number of suppliers from which they source indirects.
The benefits are simple: improve construction efficiency and predictability without compromising safety, ultimately improving your project execution quality, cost, and schedule.
A version of this article also appeared on bicmagazine.com.BACK TO NEWS & INSIGHTS