According to Chris Commander, director of engineering at Howard Energy Partners, tasks required of project managers in the 21st century differ vastly from the profession’s requirements 20 years ago.
Commander said, at that time, “you may have had an engineer, an estimating department, a construction manager, a project manager, a junior engineer under that construction manager and some sub-construction managers.”
But it is not uncommon for today’s project managers to perform these functions and more.
“You may be doing project cost controls, procurement, acting as your own travel agent and, sometimes, you’re the janitorial engineer,” he added, discussing how to successfully manage large terminal projects at the 11th annual National Aboveground Storage Tank Conference and Trade Show held recently in Galveston, Texas.
Chris Commander, director of engineering, Howard Energy Partners
Commander observed the current process is “leaner” and “more accurate and drilled down.”
Focusing on estimating taxes and contingency, Commander noted he has observed managers allotting 4.25 percent across the entire project for taxes.
“But we’re taxed differently per each location,” he said.
“Not to mention, you are not going to be taxed for labor. You will, but it will be broken up,” he continued, clarifying that the contractor covers their own taxes. “So you really just need to cover material. Don’t put taxes on items you’re not responsible to pay.”
Regarding contingency, Commander warned against the practice of “putting 15 or 20 percent on it.”
“All you are doing is fluffing the numbers, which is great as an engineer, because we all want to cover [ourselves],” he said. “But it may not benefit you. So instead, you might pump that down to 7 percent and feel confident.”
Addressing scheduling, Commander said there’s “a huge difference” between being able to accurately follow a schedule and “just being able to put it in so the boss is happy.”
Commander explained that accurate, accountable scheduling is necessary for two major reasons.
“One is reporting,” he said. “And two is to see where you are as far as costs go. There is nothing worse than having your tank contractor come in and tell you, ‘Hey, we are 60-percent done,’ but your project schedule shows you are at 45 percent. Where’s the discrepancy?”
“Scheduling is a big thing. It is important to pull that out in a way that is beneficial to you. If it’s not beneficial to you, then what is the point?”
Engineering, coding and communication
When contracting engineering, Commander highly recommended that project managers “find somebody who gets it.”
“Keep it to one or two companies that know you really well and know your expectations,” he said. “Those are the ones you want to utilize.”
Commander also advised managers read and know the codes.
“I know they are boring, but read them,” he quipped, adding that managers should make sure operations personnel have a solid understanding of code.
“I can’t tell you how many times I’ve seen specifications that operations guys have never seen,” he said. “An operator should be able to leave one facility and go to another one and have very, very little difference. Easy transition is a very good goal in my opinion.”
Further, project managers should avoid relying on their own contractors’ quality assurance standards.
“That includes fuel inspectors, and making sure you have forms and documentation that you want, and not just relying on codes,” he said.
Accentuating the necessity of clear communication, Commander said he prefers making phone calls instead of texting. “It’s more personal. Nobody does that anymore,” he concluded. “And get out in the field instead of just staying in the office. It makes a big difference, and people appreciate it.”
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