CASE STUDY 12.2 "First Come, First Served": Resource Challenges for Sunrise Restoration Sunrise Restoration and Remodeling is a small, pri- budgeted project amount and actual costs spent. The vately-owned construction business specializing in commission is paid upon project completion. Therefore, restoring residential properties that have been dam the project managers are constantly seeking the cheap- aged by fires and floods. Sunrise has a few dedicated est resources they can find without sacrificing quality project managers working diligently to oversee clean-up standards and they want to finish projects as quickly as and reconstruction for many properties at a time. Each possible. It is up to the project managers to find subcon- customer's project is unique, depending on the extent tractors for their projects and they do not like to share of damage and scope of work. Once Sunrise sends an with the other Sunrise project managers. For completing estimator out to assess the scope of work, the project is work, they also want to use the in-house technicians as transitioned to a project manager for completion. much as possible because the labor hours billed to their Much of the restoration work is completed by expert projects are much lower than the subcontractor rates. construction workers who are subcontracted by Sunrise It is obvious that the Sunrise project managers are Restoration. It is very challenging to find high-quality, competing among each other for external resources: low- reliable, consistent, and available contractors with the cost, high-quality, and fast subcontractors. Additionally, number of homes in need of repairs. Sunrise has worked they are experiencing increasing conflicts as they all want with many companies only to find that they cannot use to utilize the same two Sunrise technicians. Company them aga because they rushed through a job and the owners established a "first come, first served" policy when quality of work was terrible. Their database of approved it came to project managers reserving the two in-house contractors is very limited and diminishing. They are technicians. Often, the first project manager to assign a constantly looking for new subcontractors, but finding technician to a specific job site on a specific day and time good options is usually the result of trial and error. This has priority for that technician to work on their projects. inconsistency and lack of available subcontractors has led One project manager, Tyler, was getting very frustrated to challenges in providing realistic time estimates for jobs with another project manager, Ken, for continuously tak- (different contractors provide varying time estimates). ing both technicians for his own jobs, leaving Tyler's job Completing jobs on schedule has been challenging. sites without technician support. Ken often called the Due to the continuous demand for technical con technicians and got verbal confirmation of their availabil- struction resources, Sunrise has recently hired two techni- ity for weeks at a time, leaving them available for every cians on staff full-time. These technicians are generalists other project manager for only a few hours each week. As who can perform many construction activities, but they a result, Tyler's subcontractor costs and total project costs each have their own restrictions according to levels of were quickly rising, and so were his frustrations. expertise and physical limitations from past injuries. Sunrise also owned equipment, stored in their Therefore, although each technician is available 40 hours warehouse, to be utilized for cleaning or drying dam- per week, they are not able to complete some tasks. Techni- aged job sites. One morning, Tyler called one of the cians are intended to be a supplemental human resource, technicians, Dave, to go pick up an industrial air mover working in addition to the subcontractor experts. and a dehumidifier from the warehouse before meeting Sunrise Restoration and Remodeling wants to him at a job site. Dave agreed. (Per Sunrise's "first in keep project costs low and profit margins high. To incen line" policy, Tyler verified at 5:00 pm the day prior that tivize project managers to keep costs down, the owners the equipment was there to use.) Soon enough, Dave pay project managers a commission for coming in under called Tyler explaining that the equipment was not at budget and a percentage of the difference between the the warehouse because Ken took it to use for one of his *This case was prepared by Jennifer Morin, University of Central Florida. Used by permission. (continued) projects. Ken got to the warehouse first. Now, Tyler's invest in some fancy project software. You know it's up project would experience a one-week delay because no to you to find your own subcontractors as well. Come other work could be done until cleaning is completed back to me when you have a solution instead of a pile (a 3-day long task) and Tyler won't have a technician of problems." available for his projects until early next week. Frustrated, Tyler brought his concerns to the Sun Questions rise owner: I don't know why we have to share techni 1. Describe some of the resource constraints that Sun- cians. The process for assigning them on a first come, rise and its project managers are facing. first served basis isn't working for me. It's not working 2. Is Sunrise's current method of prioritizing resource for getting cleaning equipment to my job sites, either. I assignments viable? Why or why not? think we need to buy another set of cleaning systems. 3. How could technology alleviate some of Sunrise's We also need more technicians. On top of everything resource management issues? else, Ken has now started poaching my subcontractors 4. Would Tyler's suggestion to hire additional tech- for his jobshe took my tile guy yesterday. We are con- nicians and purchase more equipment solve the stantly competing for the same resources." resource problems at Sunrise? Why or why not? The owner responded to Tyler, Well, this is the 5. Put yourself in Tyler's position and create a one- way we've always done things and nobody else has ever page proposal for the Sunrise owner. Outline the complained. A little competition never hurt anyone. I current issues briefly with corresponding detailed like that you all have a sense of urgency to get your jobs recommendations for action. Your actionable completed, but I don't have any more money to hire improvements must be specific, address your technicians or buy more equipment. What if I were to (Tyler's) concerns, align with the owner's priori- get the extra people and cleaning machines, but they ties, and outline the benefits of your solutions in a just sat idle in the warehouse? I can't afford that. I'm persuasive manner. open to suggestions, but I don't have a lot of money to