THE MANAGEMENT CONTROL OF THE FOREIGN BUILDING SITE OF THE CONSTRUCTION COMPANY
“The management control of the foreign building site of the construction company”
Activities, tools and specific control methods for companies in the construction sector operating abroad
The summary of the intervention
The intervention provides construction companies operating overseas the control instruments suited to their particular needs.
The management of building sites is critical even when their location is within the national territory: respecting cost budgets, respecting timing prediction, managing job risks, organizing people are aspects on which it is necessary to work to optimize and improve them.
These problems are increased when the construction site is abroad: the distance, the difficulties of connection, the lack of a constant presence, make each passage more critical and therefore potential source of losses, sometimes even relevant.
The intervention responds to these needs, providing tools and methods of control resulting from the experience gained in the construction industry, able to maintain the foreign construction site within a careful planning.
Sometimes the intervention may have as its object specific sites on which the business consulting is needed.
The symptoms of his need
Who leads the company perceives the strong problems in the management of various foreign sites. Once a job has been acquired, often with very reduced margins, profitability cannot be kept under control, which sometimes drops to show a negative income. Sometimes profitability is not even established, except for the feeling that it was not satisfactory. The physical distance leads to misunderstandings, waste, slowdowns and continuous problems. Facing contingent and unexpected situations becomes usual. The cultural and linguistic barriers, often present, accentuate the problems caused by geographical distance.
The course of the intervention
Construction management is structured according to project management principles, where both profitability levels and time compliance are planned and followed. Financial management, project risk management, organizational aspects and data flow are relevant issues that are addressed in the management of foreign building sites. The areas on which the intervention takes place are the following:
– definition of cost budgets, monitoring of their compliance and possible corrective actions of deviations
– definition of timing schedules, monitoring of their compliance and possible corrective actions of deviations
– definition of the organizational structure of foreign building sites and monitoring of their problems
– commission risk analysis, focusing particularly on the sites’s foreign nature, monitoring and management
– links with the Italian parent company, setting reports and their use
The business consulting can assume both the nature of control of a specific site, and the structuring of a procedure and tools suitable for their use in the subsequent building sites of the company. When the intervention is requested on a specific site, the consultant assumes neither the role of site manager, nor that of head clerk or project manager: he assists the people who work in this role, helping them to correctly set up the management and control of the building site itself.
The human resources involved
The intervention involves the management in the part of understanding their needs and strategies. Human resources at the operational level will be involved in the technical and operational aspects of the project. Each aspect of the project will be monitored together with the management, while the operators will take imput, needs and cases. As in any Farnetani Estero Consulting project, will tend to minimize the impact on the company’s ordinary activity, alternating the people involved, limiting its use, and optimizing the interaction with the consultant based on the individual work requirements. operators.
When the intervention is requested on a specific site, the consultant will work in close contact with the persons responsible for managing it, such as project managers, site managers and project managers, alternating on-site presence and remote assistance.
When it is necessary to create monitoring and control structures for foreign sites, the intervention can last from ten to fifteen days of work of the consultant, depending on the size and complexity of the company and its sites. The duration can increase in case of particular geographic complexity of the yards, due to the necessary movements. When operational assistance is required on a specific site, the duration will depend on the size and timing of the construction site itself. In any case, the duration of the intervention will be agreed on the basis of a specific quote.
The advantages achieved
The procedures and operating methods that are created allow the accurate and professional control of foreign building site. Their profitability, their timing and, above all, their level of risk is kept under control and managed. The orders acquired abroad are therefore known, examined and monitored in their progress.
The management of foreign building sites, objectively difficult in many respects, thus acquires a sense of planning and there is a widespread feeling that, despite the difficulties, the system is under control. In the case of assistance requested on a specific site, these advantages are transmitted on the construction site itself, but the procedures acquired can still be used by the company for the future.
The control system of foreign building site can be developed and refined, in many stages, in many ways. The level of analysis and assessment of inefficiencies can be refined, increased, strengthened, especially by removing the causes.
A future development of the work, often requested by the construction companies, is the intervention on the organizational structure, in order to make the company more receptive to the control and optimization tools of the foreign sites. Analysis, monitoring and removal of the causes represent a virtuous cycle that, if pursued constantly over time, brings foreign yards to high levels of efficiency and effectiveness, and therefore of profitability.
In the case of assistance provided on a specific site, the most straightforward development is the transformation of a one-off activity into a procedure to be used in all subsequent foreign worksites.