TECHNOLOGY TRENDS IN CONSTRUCTION
Automation Boosts Efficiency in Time & Materials Tracking
By Guy Skillett, Rhumbix
the field. Tis data is critical for both the physical execution of the work and the management processes that control them. Recently, the industry has started to see evolutions in technologies that change the way contractors invoice and get paid for the work they do. A process that is ripe for automation
T
is the generation of tickets, or tags, for documenting directed change order work in the field. T&M (time and materials) tickets capture the resources that are expended during the execution of work that is not yet part of the base contract, and may be included in future change orders. T&M work is usually documented on paper tickets which are retained by the subcontractor and general contractor and eventually turn into contract change orders and payment applications. Tis overly simplistic represen-
tation of the workflow understates both the level of inefficiency, delay and waste that defines the current process, and the potential impacts on timely compensation. What drives these conditions? Te T&M process is often required
by owners and contractors who need to execute work in the field prior to the time-consuming process of negoti- ating and issuing change orders. Te process is defined in contracts, and is completed by subcontractors with the expectation for timely compensation for the costs and resources expended. Tere are many reasons why this
process is challenging; the most obvious impacts stem from time taken to process and administer the T&M tickets that document the work.
16 September/October 2018
he construction industry is defined by data, particularly processes that generate data in
Hensel Phelps is deploying a
digital platform for T&M on
the Terminal 1 Renovation at San Francisco Airport,
shown in this rendering.
Consider the steps in the T&M
workflow: 1. Tickets must be handwritten in the field by subcontractors to document the work.
2. Supporting narratives and descrip-
“We knew there had to be a better way to manage the traditional T&M workflow. We’ve partnered with a local Bay Area start up to develop a digital solution that is being rolled out with our trade partners so that all parties can benefit from a streamlined digital experience.” — Hensel Phelps Project Manager Andrew Cameron
tions must be included to explain what work took place, why it was needed, who instructed it, and what resources were involved.
3. Te ticket is reviewed and verified in the field by the contractor, and possibly the owner.
4. Te ticket must find its way from the jobsite to the offices of both subcontractor and contractor.
5. Te parties must confirm and agree that this was in fact new work, and not part of the base scope.
6. Te genesis of the work must be understood, and explained to the owner, justifying the additional cost.
7. Tickets must be priced, with all the necessary back-up documen- tation provided.
8. Te data must be digitized, and entered into the many logs, systems, workflows, platforms, and spreadsheets that help to manage ‘changes’.
9. Eventually, the scope is captured in a change order and subcon- tractors can include in a payment application, and be compensated.
California Constructor
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