3 Cost Loaded Schedule Allows for Breakdown of L.S. Cost Validate Costs of the L.S.Better Quality ControlBetter Progress Control and MonitoringEarned Value / Revenue TechniquesWhy us Cost loaded schedule to administer PaymentCost BreakdownEstimates still can be done internally on major qty and compared to the L.S. BidBetter Progress ControlWhen payment becomes an integral element of the schedule the result is a schedule that is paid attention too – thus a more useful scheduleBetter Quality ControlWhen payment is linked to a deliverable the result is BETTER SCOPE DILIGENCE & LESS REWORK
4 Cost Loaded Schedules Contractor Consultant Schedule of Values (Low Bid Contract)Lump Sum Bid items are Cost Accounts in P6 that align with Unit Rate bid itemsComing to consensus on the Schedule of Values or LS Cost Centers is very important if you are going to be able to maintain a cost estimating basis of connecting this to your unit rate costs
5 Cost Loaded Schedules Contractor Consultant Challenges Faced Schedule of ValuesContractorConsultantChallenges FacedWe’ve Never Done This Before ($14.2M QBS)Office of Audit/Validation of CostsCreating Negotiated Work Packages from RFPSchedule Was a Learning Curve for Consultant
6 MN Earned Revenue Method Provides Method for Equity ControlAllows for Schedule Risk to be ReducedReduces Fears of Lump SumLump SumEncourages InnovationScope DiligenceStreamlined Payment AdministrationOR Maybe Why not Lump SumTransfer of RiskIn large part I’m not here to argue the merits of a contract LS or Unit Rate Contract. I am here to demonstrate successful techniques for addressing some biggies of why notBut what if we don’t want to dictate means and methods – say a DB contractMore clear understanding of the scopeLess scope creepLess cost growth
8 St. Croix Design Schedule Lump Sum Contract Requirement1st Design Contract – Lump Sum CPMUse of MnDOT SWIFT Codes1010 – Project Management1250 – Misc. Engineering & Support2824 – Special StudiesABUTDECKPIEROracle Primavera P6
9 Types of SchedulesBaseline Schedules – 1st plan for executing work and progress measured fromUpdate Schedules – record of progress on a monthly basis; actual dates, remaining durations, actual cost, earned value.Revised Schedules – Re Baseline if necessary
10 St. Croix Baseline Development Schedule built locallyCoordination with Functional Leads and MnDOTBaseline AcceptanceBaseline Uploaded to MnDOT Hosted P6 Environment
12 MnDOT CPM Specifications Similar to MnDOT CPM Const Specs – 1803Activity Durations 5-20 daysActivity must have Predecessor/SuccessorNo Lags/LeadsConstraintsContract Time, Delays, Impacts, Failure to complete work on timeVery similar to MnDOT standard spec for construction cpm.
13 St. Croix Scheduling Schedule Activities – 465 Logic Relationships – 750Constraints – 14 Initially, 2 AfterwardCritical Activities – 40, less than 10% of Project, no more than 30% per spec
14 Assigning Cost Accounts to Activities- Cost Loading SWIFT CodesDifferentiate Subs – Multiple EntriesReporting
15 Schedule Updates – Earned Value Schedule Updated MonthlyPurposes of CPMCoordination with Design Functional LeadsSchedule NarrativeHighlights Anticipated/Final MilestonesCritical Coordination ActivitiesChange in Schedule LogicPayment - Invoicing
16 Schedule Updates – Invoicing 17 page invoices vs page invoices for similar sized projects, including labor/expense backup.
17 Benefits of Design CPM on St. Croix OrganizationDefine deliverables in an organized formatEnsure all contracted deliverables are accounted forActivities have agreed upon budgetCommunicationRelationship between disciplines and other partiesResponsibility - activities are assigned to companies, DOTWhen deliverables are required logicallyAnalysisOn time – baseline comparison and float analysisOn budget – Internal earned value/percent complete analysisRisk or Impact mitigation – All parties can identify and mitigate potential risks, allocate or shift resources
18 Consultant Contract Was it worth it? Yes Validated Scope of Work Consultant buy-in to the processTruly managed schedules (Earned Revenue Mngt)We needed this design done on timeStreamlined Payment administration – Auditing History
19 Where Are We At/Going? Projects in Scoping and Design Phase Project In Construction PhaseContractor’s build schedule in our network 1/1/13Piloting BIM and CTD schedules 3/1/13Select Unit Rate project Resource and Cost Loaded 3/1/13Role and Resource Loaded of CE&I staff 6/1/14Projects in Scoping and Design PhaseProgrammed Projects Role and Resource Loaded 6/30/13All planned projects Role loaded by June 30, 2014Taxpayer Transportation Accountability ActCost Loading Unit Rate projects – done this in the past -
20 Administering Lump Sum P/T Contracts via a Cost Loaded Schedule Q&A?Administering Lump Sum P/T Contracts via a Cost Loaded ScheduleTom Wiener, P.E. MnDOT Project Controls EngineerMatt Reid, P.E. HDR Engineering, Inc.
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