1. Setting Up The Project Project Manager Academy Section Five JOB LOOP 5.0Post Project Review 4.0Project Management 3.0Project Pricing 2.0Project Estimating 1.0Project Qualification

2. Performance Objectives Establish a standard job file Understand PM activities following a job award Buyout Understand budget development 1

3. Why is it Important to Have a Job File? Standardization Documentation From a legal standpoint, if its not in the file, it didn’t happen. Documentation is important, and documented records are essential The courts have ruled that electronic documents are as acceptable as a hard copy. 2

4. California Comfort Standard Job File Setup 3

5. Be Organized in Your Administration of Project Documents Standardize your filing scheme and implement on every job! Makes it easy for others to find information No adjusting by foremen to a different filing system with each new project In the event of a claim, easier to find information at a later date Standardization = Efficiency 4

6. Setting Up the Job California Comfort Systems (1 of 3) Directly after project turnover, please complete the following tasks: Turnover input sheet to the accounting department. Update the Access data base with all current information. Create schedule of values and forward to General Contractor. Schedule a kick start meeting with key field personnel. Confirm with accounting that our insurance certificates have been sent to the General Contractor. If required for project forward Comfort’s MSDS and our Injury, Illness and Policy and Prevention book to General Contractor. 5

7. Setting Up the Job California Comfort Systems (2 of 3) Create Electronic Job Folder from the MASTER on the J drive in Construction Jobs Create Submittal Log Create Change Order Log Create Procurement Log Create RFI log Create PO Tracking Log from the MASTER on the K drive in Purchase Orders Initiate Pre Planning strategies 6

8. Setting Up the Job California Comfort Systems (3 of 3) California Comfort - JOB SET UP 7

9. The Project Budget Cost Codes 8 “The Few” “The Many” VS. What is the best strategy when setting up a budget?

10. Strategy for Budget Setup Manageable size chunks Balance complexity with control Be project-specific – only set up as many codes as you can manage and track efficiently Operational execution is primary Phases or floors to track productivity can be broken out separately from the budget 9

11. Strategy for Budget Setup Insert DMI Job Cost Worksheet Scottsdale Center for the Arts CSP Enough Job Cost Codes to be efficient but not too many to manage. Smaller breakouts should be managed through spreadsheets or daily tracking Someday we will be able to highlight the BIM Model on a field device to obtain Man-hour goals for a specific system 10

12. Strategy for Budget Setup Spend the time up front if you expect quality information on the back end. Make sure the field knows which codes are setup for them to charge time and material. 11

13. The Buyout

14. Performance Objectives Define buyout Who does the buyout for your Company? – Equipment – Material – Subcontractors Identify importance of timely buyout Understand leverage in large quantity purchases Manage materials and subcontractors efficiently and effectively Know lien rights 13

15. What is Buyout? Buyout is the process of purchasing all materials and equipment as well as the issuance of subcontracts once a contract has been issued. The goal is to buy at a lower cost than the estimate. How does your buyout process work? How does buyout differ from “Bid Shopping”? Who verifies that vendors and subcontractors have a complete scope? Who has final approval? 14

16. Is Lead Time Important? 15 Material Management Short Lead TimesLong Lead Times -Standard Air Distribution -Insulation -Pipe, Valves, & Fittings -Equipment -Plumbing Fixtures -Complicated mechanical systems

17. Why is it so Complicated to Get the Materials I Need When I Need Them? 16

18. Purchasing Power 17 Comfort System National Agreement Review

19. Typical Purchase Order Terminology FOB – site/warehouse/office Net 30 and Discounts Taxes Unloading Bundling Placement Terms and Conditions 18

20. How to Get Better Pricing Use National Purchasing Companies – National Purchasing National Purchasing Buy large quantities – i.e. – 90% material takeoffs – Who performs this function to reduce purchase orders, number of deliveries, loading & unloading, disruption of work, etc.? Send material estimates out to 3 vendors Partnerships with local vendors – Example of United Rentals What other ways are there? 19

21. The Buyout California Comfort\Buyout Can everyone explain your buyout process and approval process and how they work? Is there a time frame for completion? The most important details of a buyout: – Suppliers must have their entire scope covered – Keep your integrity – Your reputation and trust of your customers are the most important things you have. 20

22. Reasons to Use a Subcontract Subcontracts should be used for any Company that supplies labor on your project Liability in subcontract value Requirement of general contract Certificates of Insurance The use of Master Subcontracts 21

23. What is a Lien? 22 A lien is legal claim placed on property. The party filing the lien has a right to retain possession of the property until a debt payable is satisfied.

24. Lien Releases (1 of 2) When a G/C receives a pay application from a subcontractor, it will require a conditional partial or progress waiver of liens covering work for which payment is requested When you receive your monthly draw, you sign an unconditional partial or progress lien release At the end of a project, full and final lien waivers will be required Subcontractors should obtain similar partial and final lien waivers from their subcontractors and suppliers 23

25. Lien Releases (2 of 2) Lien laws vary greatly from state to state Generally, lien waivers: – Are strictly construed – Must be in writing – Must express the claimants intent to waive lien rights 24

26. Summary (1 of 2) Do you know your standardized file system? Do you understand your job setup process? Do your understand your philosophy for buyouts? Setting up your budget and communicating job cost codes is essential for project success 25

27. Summary (2 of 2) Buyout the goal is to have a lower cost than estimated Know the lead times – short and long Subcontractors insurance Use Master Subcontracts Above all, your reputation is crucial. You live and die by your reputation. 26

28. Take Aways 27 ___________________________________