Construction Protocols
Standardized workflows that sequence principles into repeatable methods.
Protocol Categories
| Category | What It Covers | Key Protocols |
|---|---|---|
| Sales | Lead to contract | Qualification, quoting, objection handling |
| Pre-Construction | Contract to site | Estimating, scheduling, procurement |
| Production | Site to handover | Trade coordination, progress claims, variations |
| Financial | Cash flow to profit | Job costing, monthly close, margin monitoring |
| Systemization | Owner to architect | Process documentation, delegation, exception reporting |
The Builder's Loop
Most builders are stuck in a reactive cycle. Protocols break it.
REACTIVE LOOP (the trap):
Site problem → Owner fixes → Next problem → Owner fixes → Exhaustion
↑ |
└────────── No capacity to build systems ───────────────┘
SYSTEMATIC LOOP (the escape):
Exception report → Delegate → System improves → Capacity grows
↑ |
└──────── Owner invests in systems ─────────────┘
Sales Protocol
Lead to Contract
1. CAPTURE
└─► Inbound lead logged (source tracked)
└─► Response within 24 hours (SLA)
2. QUALIFY
└─► Budget alignment check
└─► Timeline feasibility
└─► Scope match to capabilities
└─► Red flag checklist (unrealistic expectations, price shoppers)
3. QUOTE
└─► Charge for detailed quotes (filters serious buyers)
└─► Standardized estimate template
└─► Margin targets applied (not negotiated away)
└─► Timeline and exclusions documented
4. CONVERT
└─► Objections manual (pre-built responses to top 10)
└─► Sales scripts (conversational, not robotic)
└─► Decision timeline agreed
5. CONTRACT
└─► Standard contract template
└─► Variation process explained upfront
└─► Payment schedule defined
└─► Conditions precedent cleared
Sales System KPIs
| Metric | Target | Warning |
|---|---|---|
| Lead response time | Under 24h | Over 48h |
| Quote conversion rate | Over 30% | Under 15% |
| Average markup achieved | Over 30% | Under 22% |
| Paid quotes % | Over 80% | Under 50% |
| Sales meeting cadence | Weekly | Sporadic |
SORCI evidence: Builders who charge for quotes achieve markups 8+ points higher than those who don't.
Pre-Construction Protocol
Contract to Site-Ready
1. HANDOFF
└─► Sales-to-production meeting (documented)
└─► Client expectations transferred
└─► Budget baseline locked
2. ESTIMATE
└─► Detailed takeoff from plans
└─► Supplier quotes secured
└─► Trade quotes confirmed
└─► Contingency applied (not absorbed)
3. SCHEDULE
└─► Master schedule built
└─► Critical path identified
└─► Trade booking confirmed
└─► Weather and permit buffers added
4. PROCURE
└─► Long-lead items ordered
└─► Material delivery schedule aligned to build
└─► Supplier payment terms negotiated
5. MOBILIZE
└─► Site setup checklist
└─► Consent/permit verification
└─► Client communication plan activated
Production Protocol
Build to Handover
1. FOUNDATION
└─► Excavation → Inspection → Pour → Cure
└─► Milestone photo documentation
└─► Progress claim #1
2. STRUCTURE
└─► Framing → Roof → External cladding
└─► Trade coordination (MEP rough-in)
└─► Inspection checkpoints
└─► Progress claim #2
3. SERVICES
└─► Electrical → Plumbing → HVAC
└─► Insulation → Lining
└─► Code compliance checks
└─► Progress claim #3
4. FINISH
└─► Internal linings → Paint → Flooring
└─► Fixtures → Joinery → Final services
└─► Pre-handover inspection
└─► Progress claim #4
5. HANDOVER
└─► Final inspection
└─► Defect list resolution
└─► Client walkthrough
└─► Documentation pack delivered
└─► Retention terms activated
Variation Protocol
Variations kill margins when unmanaged.
| Step | Action | Documentation |
|---|---|---|
| Identify | Client request or site condition | Written record |
| Price | Cost estimate within 48h | Itemized quote |
| Approve | Client signs before work starts | Signed variation order |
| Execute | Work tracked against variation budget | Job cost code |
| Reconcile | Variation invoiced separately | Clear on progress claim |
Financial Protocol
Monthly Close
1. COLLECT (Day 1-5)
└─► All supplier invoices received and coded
└─► All time entries submitted
└─► Progress claims submitted to clients
└─► Subcontractor invoices reconciled to budgets
2. ALLOCATE (Day 5-8)
└─► Every cost allocated to a job
└─► Overhead allocated by method (% revenue or direct)
└─► Owner market-rate salary included
└─► WIP calculated per project
3. REPORT (Day 8-10)
└─► P&L by job generated
└─► Company P&L generated
└─► Balance sheet updated
└─► Cash flow forecast updated
4. REVIEW (Day 10-12)
└─► Job margins vs budget reviewed
└─► Exception report: any job under target margin
└─► Cash position vs upcoming commitments
└─► Decision: adjust pricing, scope, or pace
5. ACT (Day 12+)
└─► Corrective actions assigned
└─► Budget updates for active jobs
└─► Pricing adjustments for new quotes
Systemization Protocol
The Liberation Sequence
Where to start when everything depends on the owner:
1. AUDIT (Week 1)
└─► List every task the owner performs
└─► Classify: must-do vs should-delegate vs shouldn't-exist
└─► Rank by: frequency × time × delegatability
2. DOCUMENT (Week 2-4)
└─► Write SOPs for top 5 delegatable tasks
└─► Include: trigger, steps, quality check, exception rule
└─► Format: checklist, not essay
3. TRAIN (Week 4-6)
└─► Assign each SOP to a team member
└─► Shadow period: owner watches, doesn't intervene
└─► Sign-off: team member runs it independently
4. MONITOR (Week 6-8)
└─► Define exception triggers per process
└─► Build simple dashboards (red/yellow/green)
└─► Owner reviews exceptions only
5. ITERATE (Ongoing)
└─► What broke? Fix the system, not the symptom
└─► Next 5 tasks from the audit
└─► Track: Systemization Index score over time
Activity Matrix
| Activity | Owner | Project Manager | Admin | Subcontractor | Client |
|---|---|---|---|---|---|
| Lead qualification | o | o | |||
| Estimating | o | o | |||
| Scheduling | o | o | |||
| Trade coordination | o | o | |||
| Progress claims | o | o | |||
| Variation pricing | o | o | o | ||
| Monthly financials | o | o | |||
| Client communication | o | o | o | ||
| Safety compliance | o | o | |||
| Systemization | o |
o = Primary responsibility
Factory Design and Build
Industrial/commercial project protocol — from feasibility to commissioning.
The Meta-Factory
This is the physical factory template. But every business is an ideas factory. The Dreamineering logo is a P&ID for thought — same control system, different material. See Thought Audit for the ideas factory parallel.
Feasibility
| Metric | Conservative | Anticipated |
|---|---|---|
| Discounted Cash Flow | ||
| Payback Ratio |
RFP Protocol
Consent Costs:
| Service | Cost | Authority | State | Date |
|---|---|---|---|---|
| Land | ||||
| Electrical | ||||
| Gas | ||||
| Water | ||||
| Waste |
Desired output: Product, Quality, Quantity, Price, Profitability projection, CAPEX justification
Engineering
- Process and Instrument Diagrams
- Sizing calculations
- P&ID nomenclature and database
- Procurement budget
- Equipment sizing and footprint
- Factory layout (floorplan and height)
- Civils (budget on square metre cost)
Deliverables: Cost Schedule, Gantt Chart with milestones on critical path
Sales
- Point to prior history if possible
- RFP process must be fast and accurate
- Prove strength of processes
- Prove depth of resources
| Service | Cost |
|---|---|
| RFP Engineering | |
| Consent | |
| Turnkey project | |
| Contingency |
Delivery Tracking
Equipment states for monitoring progress through each discipline:
Mechanical: Designed, Signed off, Budgeted, Ordered, Delivery, Onsite, In Progress, Ready, Approved, Commissioned
Electrical: Design Signed off, Budgeted, Sized, Connected
Automation: Functional Specs, Coded
Tools: AutoCAD, Standard P&ID Library, Equipment Drawings Library, Forecasting Software
DePIN Construction Protocols
Emerging protocols that could transform construction coordination:
| Protocol Type | Traditional | DePIN-Enabled | Status |
|---|---|---|---|
| Equipment sharing | Phone calls, rental yards | Tokenized usage, trustless booking | Emerging |
| Material tracking | Paper COCs, spreadsheets | On-chain provenance, carbon passports | Pilot |
| Worker verification | Manual cert checks, phone refs | Portable on-chain credentials | Research |
| Safety compliance | Paper inspections, manual filing | Immutable audit trails, IoT sensors | Research |
| Progress verification | Site visits, photos | AI + 360 cameras + blockchain proofs | Growing |
Property Lifecycle Handoff
Construction doesn't end at handover. The data generated during the build becomes the property's foundation for its entire operational life.
CONSTRUCTION PHASE OPERATIONS PHASE
───────────────── ────────────────
Material provenance ──────────► Building passport (carbon, compliance)
Inspection records ──────────► Maintenance baseline (warranty, defects)
IoT sensors installed ─────────► PropTech data flywheel (energy, structural)
As-built BIM ──────────► Digital twin (facility management)
Trade credentials ──────────► Warranty accountability (who did what)
| Construction Output | Real Estate Input | Value Created |
|---|---|---|
| Verified material chain | Carbon disclosure compliance | 2028 mandate readiness |
| Structural sensor data | Predictive maintenance | 3-5x cost reduction vs reactive |
| As-built documentation | Facility management | Faster tenant fit-outs |
| Defect resolution records | Warranty management | Reduced disputes |
| Energy system commissioning | Operational efficiency baseline | Benchmarking from day one |
The bridge: A building with construction-phase data is worth more than one without. Sensors deployed during construction create the PropTech data flywheel that compounds throughout the asset's life.
See Real Estate Industry for the operations perspective. See Property Development for the developer's view of the build phase.
Context
- Performance — How to measure protocol effectiveness
- Players — Who executes these protocols
- Protocols — Broader protocols framework
- Real Estate — Where construction output becomes operational asset
- Work Charts — Human/AI split methodology