Procedures which follow the successful bid are discussed in this section of a three-part article on management of project risks. Subjects covered include schedule/budget correlation, overhead rates, drawing coordination, submittals, photographs, and equipment records.

SCHEDULE/BUDGET CORRELATION

Once on site the project manager should refine the project bid by breaking down the estimate to a preliminary cost-loaded schedule and man-loading curve.

OVERHEAD RATES

Another early task is the establishment of an overhead rate to apply to change-order markup. Every subcontractor cost that will (1) increase if the job is extended beyond the original completion date or (2) require more labor, should be covered.

DRAWING COORDINATION

Drawings must be coordinated in advance of actual construction. Designers expect this coordination and most contracts make it a requirement.

SUBMITTALS

The sooner all submittals are in and approved, the sooner the subcontractor's exposure to the danger of delaying his own or another's progress is eliminated.

PHOTOGRAPHS

Job progress photographs should be taken even before construction begins, with a regular photography schedule maintained thereafter. Photographs can serve to disprove claims of damages to preconstruction conditions or claims of negligence.

EQUIPMENT RECORDS

An inventory of small tools and equipment should be kept and revised periodically to update overhead percentages for change-order mark-up. Major equipment should be constantly inventoried.