Owners can take a page or two from the contractor knowledge base. This involves scheduling and coordinating multiple projects in a construction program then projecting cash flows for the combined projects in the program. These lessons can be applied on one project or programs with dozens of projects over a multiple year period.
The use of scheduling software such as Primavera will aid in the process immensely. For those new to scheduling, or with a few projects to coordinate, I would recommend SureTrak. It is fairly easy to learn and has a lot of features contained in more advanced programs. For those experienced in scheduling, or with many projects to coordinate, I would recommend the P6 version of their scheduling software. By the way, these are not paid endorsements – they are recommendations for the best products you can use for scheduling.
When developing activities and their predecessor and successor logic, keep in mind they need to be manageable activities tied to responsible parties. For example, if a major piece of equipment is being pre-purchased more than one activity to “Pre-Purchase Big Equipment” for a cost of $1,000,000 and 46 weeks duration is required. The activities may be more appropriate as follows:
| Activity | Responsible Party | Duration | Cost |
| Define Design/ Operating Criteria & Specify | Engineer A | 14 days | $10,000 |
| Develop & Issue Bid Package | Owner | 30 Days | $5,000 |
| Receive Bids & Evaluate | Owner | 30 Days | $5,000 |
| Award Contract | Owner | 10 Days | $2,000 |
| Provide Engineering Submittals | Vendor A | 30 Days | $25,000 |
| Review & Approve Submittals | Engineer A | 10 Days | $5,000 |
| Fabricate Equipment | Vendor A | 180 Days | $300,000 |
| Performance Acceptance Test Equipment | Vendor A | 3 Days | $300,000 |
| Ship/ Deliver Equipment | Vendor A | 14 Days | $375,000 |
| Receive & Store Equipment | Owner | 3 Days | $25,000 |
| Install Equipment | Contractor | TBD | TBD |
The benefits to having these activities instead of just one are numerous. First they identify 10 major steps involved in placing the order to receipt of the equipment. Each step is a potential for trouble in managing the procurement process. Next, they identify who is responsible for completing each step and how long the activity will last. With complete logic relationships, effects of changes can be determined. If there is a change in the duration, problems can be addressed in that activity and in subsequent activities before they become major headaches. Third they have a dollar value for progress payments and cash flow forecasting. And most important, activity definition and logic enables the project or program to be managed.
Successful contractors use this type of scheduling for their projects. Owners can be successful with their projects and programs by using similar methodologies.
