Project Management

Methods towards a successful project.

By Ed Butts, PE, CPI

Effective management is a vital component of any successful project.

Whether the project is a large water treatment plant for a public utility requiring months to complete or a single-family water system installation done in a single day, all projects require some level and degree of adequate management and oversight.

This is needed to ensure the firm is properly allocating, budgeting, controlling, and accounting for labor and material costs and expenses, hopefully resulting in a timely completion with some profitability at the end.

Good project management often goes hand in hand with a firm’s cash flow and other concurrent, committed, or pending work to determine the best timing for payment and scheduling and allocation of material, labor, and subcontractors.

We’ll examine some of the basic techniques and expertise of project management this month, along with various methods used to track job-related performance and expenses to improve productivity and increase profit.

Project Management 101

Many of us in the water well business do not think of ourselves as construction firms. After all, we simply drill the well, perhaps install the well pump, and move on to the next job, right? In my judgment, not only is this attitude risky for the success of a business, but it is also short-sighted and undervalues your contribution to the project.

Over the many years of my career, I have been involved with untold examples of “project management” in one form or another, including pump installations as minor as a replacement jet pump and as large as acting as the project manager of a multi-million-dollar water treatment facility where the pumping system was just one component of a much larger overall plan.

In all these cases, I like to think I tried to perform just one or a myriad of tasks involved in the project in the same organized and efficient manner and without any undue loss of productivity or wasted time.

Obviously, that is what I would like to think. But I can also relate several projects I supervised over the years that were not only conducted inefficiently on my part but ended up on bad or shaky terms with the client, my employer, or resulting in lost or no profit.

Correction of my shortcomings first required an in-depth look at myself and my abilities. In many cases, especially during my early years in the industry, the problems were the direct result of my inexperience and inability to predict and avoid problems before they occurred.

This was often from a lack of knowledge as to the importance of a specific task or piece of equipment to the overall project. Remember that it only takes one minor misstep to foul up the entire project.

This is where there is no element of project management like good and bad experience, regardless of what the handbooks or instructors might tell you. There simply is no substitute for experience!

I wish I could tell all young contractors that your future experiences with running a well, pump, or other project will always be successful without any problems and result in thousands of dollars in profit. But I would be lying. That is not only not true but isn’t realistic. There is no way that every project can be delivered on time, within budget, and with a profit. Often you will be happy to hit two of the three goals.

Even years of experience will not preclude problems from cropping up on projects. The principal advantage project managers gain with experience is the ability to foresee and possibly head off some of the problems before they occur and lessen the impact after they occur. In many instances, that is the best to hope for.

While the project is under construction, the contractor will often have to deal with various problems that may not crop up during everyday work. These problems may include coordination and problems with subcontractors; staging and coordinating material to be delivered to the site (this factor can be especially important on cramped or somewhat inaccessible sites); and scheduling the contractor’s own workforce.

There are many good software programs and Microsoft Excel spreadsheet applications that are available that can assist with scheduling and implementing an effective work plan. I recommend if you are interested in using such a job-tracking or management software program that you tread carefully. The software currently available ranges from simple programs up to sophisticated scheduling programs using critical path methods (CPM).

Make sure the software program you select fits into your operation and matches the computer skill level of the people who will be working with it. A software program that is too complicated to use will most likely end up gathering dust.

Communicating, Tracking, and Monitoring

While performing work on the project, it is imperative to maintain open and good communication between yourself and the client’s project manager. This includes all verbal conversations and written correspondence. Any change in the scope of work that may involve a change order will be more readily received and approved if the client’s project manager has been fully involved and informed throughout the project.

Remember, there are two basic priorities for a project manager:

1. Track and monitor the work to complete the project on time and on budget for the contractor’s benefit
2. Conduct the same above tasks, but for the owner’s benefit.

These parallel goals require continual tracking and monitoring of the project’s progress which includes: subcontractor coordination and scheduling; material and equipment procurement and delivery; scheduling of the contractor’s own labor force; maintaining communication between yourself and the engineer or client’s project manager; accurately tracking of job expenses and schedule; and the submission of required
paperwork.

Positive Management Actions

In addition to the previously cited responsibilities of a project manager, there is one additional less rigid duty—the project manager should act as a cheerleader on the project.

Occasionally, especially on complicated projects, workers will become temporarily disinterested or ineffective conducting the work. This is when the project manager should step in and encourage the workers to recognize the positive aspects rather than the often more visible negative connotations.

This can be as simple as bringing coffee or soft drinks to the site or organizing a bull and gripe session at a local bar after working hours. The key is to always look for simple problems and try to correct them before they become major issues.

As was mentioned, submitting paperwork is part and parcel of the job and can sometimes seem like a chore for the project manager, which also drags a project down. To offset this negative effect, an effective project manager will learn to lean on clerical staff and others who are capable to become involved and help with this part of the job.

Submitting Payment Requests

Always be cognizant of cut-off dates for submission of pay requests. Usually, pay requests, which will generally include wage rate certifications for the contractor and subcontractors, need to be submitted at least two to three weeks before payment is anticipated. This period is needed to allow the owner time to review and approve the pay request.

In general, plan to submit your payment requests at least three to four weeks before you anticipate payment. Generally, wage certifications for the billing period must be submitted as an element of pay requests.

While performing the project, the contractor should also accumulate any information or documentation needed for the operation and maintenance (O&M) manuals that will generally be submitted in a complete and final form to the owner before final payment will be processed.

A lot of time and extra work can usually be avoided if the paperwork is kept current while the project is underway.

Do not forget to submit prevailing wage certifications at intervals required by the contract and applicable statutes. Many prevailing wage laws require weekly payrolls, which can be disruptive to those companies who normally pay either monthly or bi-weekly.

Requesting Time Extension

While the project is under construction, if you begin to sense that the project cannot be completed within the time limits outlined in the contract, immediately contact the engineer to begin the process of requesting a contract time extension.

This factor is often one of the most critical elements of the project as liquidated damages are often tied to failure to complete the project in the time allowed. As is the case for change orders, your request for an extension of time will be received much more readily if you can prove that delays were due to factors beyond your control, and you submit your request long before the end of the contract date of completion.

Some of the many justifiable reasons for requesting an extension include an unexpected or uncontrollable failure or default of a subcontractor, a delay in receipt of critical supplies, and unexpected severe weather conditions that may have interfered with site work or construction.

Basic Rules of Project Management

Performing government contracts can be a worthwhile venture for your firm as long as a few basic rules are observed. Always maintain good and effective communications between your firm and the contracting agency and any regulatory oversight agencies; keep up to date on all paperwork and required wage certifications and documentation; and always consider the hidden costs and delays associated with government work.

By now I have hopefully been able to help with the definition and basics of project management. Now I want to share some tips I have picked up from my own experience or from great project managers I worked with at one time or another:

• Remember that contrary to what many management books and instructors would like to tell you, project management is not always an exact science. Human beings, mechanical devices, and machines are not perfect.

You must be able to roll with the punches and be ready to craft or implement a contingency or backup plan
upon a moment’s notice for any conceivable event. Also, humanize the role. Remember that you were once also a worker and adapt to the different personalities.

• Many firms prefer to isolate their project managers from the bidding or estimating process. I believe that philosophy is generally a mistake. After all, how can you expect your project manager to keep a project within the planned budget if he does not know how the bid was generated in the first place?

This is particularly true with labor, as there is usually no single bid item more volatile than the labor component. A successful project manager will be involved with the preparation of the proposal or at the least have a full understanding of the intricacies and mechanics of the proposal, the determination of and the estimated profit margin included in each bid item, and where and how much contingency is included.

• Subcontractors can make or break a project along with the resulting profit, not to mention much of the goodwill often established between the client and the contractor. It is critical to establish a good working relationship with all subcontractors as well as protect yourself by working to maintain a reasonably accurate knowledge of the subcontractor’s volatility and recent business history.

For example, are they having trouble bonding or completing projects? Do they have a pattern of unexpected or unusual change order requests? Do they have problems maintaining adhering to their part of the schedule? Have they been assigned a “COD” or “Cash Only” account by their suppliers? Or are they having trouble paying either their employees or suppliers in full and on time?

Any of these examples are red flags that should be investigated further. The actions, or in some cases inactions, of subcontractors have been known to pull down otherwise excellent contractors. Thus, to the degree possible, an effective project manager will track potentially impacted subcontractors to protect his firm from these risks.

• New or junior project managers should not be thrown under the bus. Although they may have extensive field experience and be able to drill a well in a hatbox, the tasks and risks associated with project management require a different set of skills and abilities, many that can be gained only from experience.

The amount of seasoning a new project manager will need is dependent on their unique background, experience, talents, and knowledge as well as the size and type of project, but anywhere from six months to as much as two years is typical.

There is no schedule so rigid and no penalty too great to justify greater importance than developing and maintaining a safe work site.

• One of the riskiest as well as most critical elements of project management is working with the various governmental agencies often involved in a project. This category includes onsite inspectors, project engineers, regulatory agencies, including building code inspectors, and yes, even the government agency’s project managers (they have them too).

From my experience, there is often conflict between some of the regulatory agents due to factors such as differing priorities, inexperience, or a simple lack of knowledge of the issue at hand. Usually, there is no direct way to avoid these occurrences. An effective project manager will simply recognize the potential for them and ensure all communication between all regulatory, inspecting, and contracting parties is clear and concise as well as documented in some retrievable format, such as an email or written memos.

The best advice I was ever given was from a grizzled old PM that once told me, “Don’t ever trust or believe
what anyone says as gospel; always put it in writing.” Experience speaks. Enough said.

• Recognize that effective and productive project management begins well before you step onto the site and usually does not end until a year or more after you leave the site. This statement is obviously more oriented towards the larger and more complex projects but also has validity for the smaller well and pump jobs.

As an example, many of the most common complaints that arise from customers is the way we “showed no
care” for their lawn, shrubs, etc. Believe it or not, this attitude is not limited to the small homeowner. I have been called onto the carpet by CEOs from large corporations over this one overlooked element.

Simple but important housekeeping techniques can go a long way to maintaining customer satisfaction, not to mention jobsite safety, and will provide you with points you may need later for resolving a much more serious problem.

The “project’s backside” is the way I refer to items such as maintenance bonding, equipment adjustment
and amperage return checks, 6- and 12-month warranty examinations, and even grass reseeding. These are items that stretch beyond the actual date of completion. Once again, to the owner these items can be just as important as the project itself, as they demonstrate an ongoing commitment to the project and its owner. Those innate feelings can lead to more work for your firm and for you, so don’t ignore them.

• Perhaps the most crucial task for the project manager is jobsite safety. The scope of the project doesn’t matter if the project site is nothing more than a single drill rig or a 20-story building. Dead is still dead if you get hit on the head by a falling object.

The opportunities for serious injury or death on the typical jobsite are too numerous to mention. This is the
reason this aspect must be the overriding responsibility of the project manager. There is no schedule so rigid and no penalty too great to justify greater importance than developing and maintaining a safe work site and practices.

Helpful Tips for Project Management

Regardless of whether your role as a project or construction manager is for a contractor, engineer, owner, or on a design-build project where the engineer and contractor responsibilities overlap, there are a few basic tenets to consider and implement to become an effective manager. Here are 13 of them:

1. Understand and use the principles involved in developing clear and concise budgets, work scopes, schedules, and proposals. Consider using spreadsheets or the CPM (critical path method), when feasible.
2. Exploit the best of both worlds; balance the mentoring offered from a trusted and experienced associate with education and knowledge from a formalized setting such as classes or seminars.
3. Strive to assemble all parties involved in the project to function and cooperate as a unified project team.
4. Listen to, acknowledge, and work towards resolving the valid concerns of all team members.
5. Understand and implement the expectations of the client, your employer, and the entire team.
6. Use rapid, clear, and concise communication methods with all parties. Don’t just send memos or other outdated written forms of instructions. Use electronic methods with verbal/two-way conversations to discuss and resolve problems, issues, or even to acknowledge successes (you know, the atta-boys).
7. Strive to build cooperation, respect, and a teamwork attitude with and among all involved parties.
8. Expand your knowledge base whenever possible. Learn about new management techniques and construction methods and processes that may benefit you and your team on this or the next project.
9. Recognize that codes and standards are there for a reason. Do not allow subordinates or subcontractors to circumvent or bypass any type of code including building, electrical, safety, plumbing, HVAC, or other.
10. Delegate responsibility and tasks when necessary but recognize that as the project manager you oversee the entire project and the outcome, good or bad. As Harry Truman said, “The buck stops here.”
11. Use fair, balanced, and technically valid judgment in making decisions and applying discipline.
12. Realize that change orders and work directives (in both directions) are sometimes warranted, needed, and even desirable. However, never use one as a “profit recovery” method; it’ll likely come back to bite you.
13. Above all, recognize that there is no “one size fits all” or standard approach to project management. Develop and use your own inherent skills, talents, and experience to the best of your ability.

When Project Management Fails

Finally, even with the best estimating and project management techniques, some projects are bound to fail. There are numerous possible causes, including any one or more of these 10 reasons:

1. Insufficient bidding and managerial experience
2. Excessive waste of time, onsite and offsite
3. Poor labor allocation and management
4. Poor risk understanding and management
5. Improper subcontractor selection and lack of coordination
6. Project scheduling and planning issues, including a lack of communication with the client.
7. Poor material take-off, order, or delivery to project
8. Poor or inadequate cash flow management
9. Poor material or subcontractor procurement practices
10. Improper or inadequate regulatory and code understanding and observance.

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This concludes this installment on project management. We will discuss fleet maintenance, purchase, and replacement next month.

Until then, work safe and smart.

Ed Butts, PE, CPI, is the chief engineer at 4B Engineering & Consulting, Salem, Oregon. He has more than 40 years of experience in the water well business, specializing in engineering and business management. He was honored by the National Ground Water Association with the 2025 Technology Award. He can be reached at epbpe@juno.com.