Once owners/Project Managers/Contract Managers understand the complexity of resource management we can start to look for opportunities to reduce the amount of staff required and therefore reducing cost

For example- Contractor A bids a project utilizing unit measurements, the owner hires a third party to validate the estimate but unfortunately they employ the same methodology and come up with similar results. But the owner is tired of seeing resources ( trades) on its projects sitting around waiting for there next ( ie scaffolding gets built for the fitter and welder but once the scaffolding is built the carpenter now has idle time waiting for either scaffold modifications or scaffold removal. So the owner asks for a resource tracker to be included as part of the bid. The resource tracker includes not just the trades required by day including OT ( weekends) but also the supervision, subcontractors and all PMT. This view allows for full transparency of the cost estimate and gives the Project Manager the ability to challenge the bid.
In my personal experience utilizing this methodology it has allowed for 30-40% cost reduction of the bid prior to awarding the contract.

In this scenario, it’s clear that resource tracking and management play a crucial role in improving the efficiency and cost-effectiveness of complex construction projects. The use of a comprehensive resource tracker can indeed provide valuable insights into resource allocation, productivity, and costs across various aspects of the project, including labor, supervision, subcontractors, and project management team (PMT).

The Benefits of Owner/Project Manager Understanding the use of Resource Trackers

1. Understanding Complexity: Owners and project managers often gain a deeper understanding of resource management challenges as they oversee complex projects. They become increasingly aware of the impact of inefficient resource allocation on project timelines and costs.
2. Cost Reduction Goals: As in the example provided, once owners and project managers recognize the need to optimize resource utilization, they actively seek solutions to reduce the amount of staff required and overall project costs.
3. Transparency and Accountability: Implementing a resource tracker provides a transparent view of resource allocation and associated costs, allowing project managers to identify inefficiencies and make informed decisions to optimize resource usage.

Benefits of a Comprehensive Resource Tracker

1. Holistic View: A comprehensive resource tracker, as described in the example, provides a holistic view of resource requirements, including trades, supervision, subcontractors, and project management. This visibility enables better decision-making and cost control.
2. Identifying Inefficiencies: By tracking resource utilization in detail, the project manager gains insights into potential inefficiencies, such as idle time for trades, which can be addressed to improve productivity and reduce costs.
3. Cost Reduction: The implementation of a resource tracker, as demonstrated in the example, has resulted in significant cost reductions, highlighting the effectiveness of this approach in optimizing resource utilization and challenging project estimates.

Implications for Project Management and Bidding Processes

1. Enhanced Bid Evaluation: The inclusion of a resource tracker as part of the bid evaluation process allows owners to thoroughly assess and challenge project estimates, leading to more accurate cost projections and potentially reducing the risk of cost overruns.
2. Optimizing Staffing Levels: With the insights provided by the resource tracker, project managers can make informed decisions to optimize staffing levels, reduce idle time, and improve the overall efficiency of resource utilization.
3. Improved Transparency: The use of a resource tracker fosters transparency in resource management, enabling stakeholders to have a clear understanding of resource requirements and associated costs.

In conclusion, the successful implementation of a comprehensive resource tracker can lead to substantial cost reductions and improved efficiency in complex construction projects. This approach provides transparency, enables informed decision-making, and empowers project managers to optimize resource utilization, ultimately contributing to the successful execution of projects within budget and timeline constraints.