“But, we need to ramp up quickly,” Bruce explained. “We have a lot riding on this project.”
“What’s the rush,” I asked.
“We didn’t know if we were going to get the project, it was a very competitive bid process. But we pulled it off, at least the contract. It’s fast track, four months to complete with liquidated damages on the back end if we miss the deadline.”
“When you say ramp up, what do you mean?” I wanted to know.
“We have the production crew to do the work, they’re coming off of another project. But, the project manager is moving to Seattle to start another job. He was good, and a great opportunity for him. Unfortunately, that leaves us in the lurch. I need a project manager and I need one, now!”
“What’s the level of work on this project?”
Bruce stopped to think. “It’s only a four month project, so that’s S-II. I am hoping there will be a decent candidate pool. Sometimes, we post for a job and no one shows up.”
“How does risk play into understanding the level of work in this project?” I pressed.
“There are lots of moving parts, lots of detail, and if we miss the deadline, our profit could be wiped out pretty quick,” he replied.
“But, we have computer software to handle the detail,” I nodded. “What about the risk embedded in the uncertainty of the project?”
“What do you mean?” Bruce furrowed his brow.
“Will you need to trust your suppliers to deliver on time? Hold their pricing? Are the materials in the spec even available? What’s the lead time on materials? Will you depend on your client for approvals? What could hold up the permits for approval? I know you will have subs on the job. Are they dependable and available in each phase schedule? What if there are change orders? How quickly can you identify something out of scope and its impact on the contract? Is the client litigious? To keep the project on track, how will you schedule quality inspections to make sure each phase meets spec before you can move to the next phase?”
I saw the blood begin to drain from Bruce’s face. I continued. “I think this project has more to it than the 4 months timespan after mobilization. The relationships and synchronicity required have to be developed way before mobilization. The trust in your subcontractors needs to already be in place now. This is more likely an S-III project that started before you even got the contract. The biggest mistake most companies make is underestimating the level of work in the project.”