Month: November 2024

In the construction industry, third-party audits for scheduling can often feel more like a nightmare than a constructive process. Whether you’re a contractor, a project manager, or a trades partner, understanding the dynamics of these audits is crucial—not only for maintaining sanity but also for protecting your project and your team from unnecessary stress. Let’s dive into what to expect during a third-party audit and the steps you can take to emerge unscathed.

Why Third-Party Audits Are Often Problematic

The goal of third-party audits may be to ensure accountability and progress. However, when done with CPM (Critical Path Method) schedules and a rigid, often toxic approach, these audits can create more harm than good. Instead of providing actionable feedback, many third-party auditors end up focusing on compliance over collaboration, tearing down work rather than helping teams build better processes.

A CPM schedule, after all, does little to improve on-the-ground production or to manage work in a way that adapts to a project’s real-time needs. Instead, it often becomes a tool for auditors to scrutinize minor variances or delays and leverage them against contractors—frequently leading to stressful audits that impact not only projects but also personal lives and mental health.

The Realities of Going Through a Third-Party Audit

If you’re facing an audit, expect a grueling process that can affect both your work and personal life. Here’s a quick breakdown of the main phases and what to be prepared for:

1. Preparation and Planning Phase: Auditors will review your project documentation and lay out their objectives. Ensure every “I” is dotted and “t” is crossed here because this is where the digging begins.
2. Schedule Analysis Phase: Auditors will compare your baseline schedule with the current reality, often highlighting any variances or slippage. Don’t be discouraged by this scrutiny—every project has its delays, and they’re a natural part of construction.
3. Critical Path and Logic Reviews: This is where things can get tricky. Auditors typically insist on analyzing the critical path as though it’s the only valid measure of success, disregarding the complex reality of a project’s flow and dependencies. They may also force illogical connections between tasks, distorting your schedule to fit their rigid standards.
4. Interviews and Scheduling Practices Evaluation: Expect questioning around your scheduling methods. Often, auditors will push for outdated practices, offering recommendations that could turn a well-functioning plan into an impractical one.
5. Findings and Recommendations: After the review, auditors will present their findings. While these recommendations might seem aimed at improving your schedule, implementing them can often lead to impractical changes that hinder rather than help.
6. Follow-Up and Corrective Actions: Auditors expect you to address their findings. However, following all recommendations to the letter might compromise your project. Sometimes, separating your builder schedule from the one used to satisfy auditors can be necessary to keep your project on track.

Key Survival Tips for a Third-Party Audit

To emerge from an audit with your schedule intact and your peace of mind preserved, here are some key strategies:

• Use Takt Planning: A Takt-based approach, which focuses on flow and production balance, is far more effective than CPM. It allows for real-time adjustments that help your project stay aligned without overloading teams.
• Follow Contract Requirements Precisely: Adhering to every contract requirement with meticulous detail keeps you above reproach, reducing opportunities for auditors to criticize.
• Stand Up Against Disrespectful Behavior: Don’t accept disrespectful or abusive treatment. It’s acceptable to set boundaries with auditors or owners if their behavior becomes unprofessional.
• Enforce Flow Rules: Insist on practices that maintain flow, like limiting unnecessary labor increases, preventing excessive material staging, and maintaining manageable work-in-progress levels.

When Updating Schedules, Follow These Rules

If you’re making adjustments to your schedules, always remember:

• Keep Trade Flow Diagonal: Maintain flow in your schedule to avoid chaotic disruptions.
• Preserve Logical Ties and Duration: Don’t make arbitrary cuts in duration or stack work without considering capacity.
• Build in Buffers: Include adequate buffers to absorb unforeseen delays without derailing the entire project.
• Focus on the Path of Critical Flow: Look at the critical flow that includes buffers, sequence, and line-of-balance, rather than fixating on the critical path alone.

Conclusion

Surviving a third-party audit requires a firm focus on takt planning, strict contract adherence, and standing up against any disrespect. Keep your project’s flow intact by following practical scheduling principles, and don’t hesitate to reach out for guidance if needed.