T HE O THER C OSTS OF THE P ROJECT Things to Consider When Planning New Work 12 th Annual International Aboveground Storage Tank Conference & Trade Show March 3, 2010

O VERVIEW Planning the Project: looking at the whole picture Project Process & Checklist: what to consider Planning Tools and Tips:

P LANNING THE P ROJECT Project Progression… DefinePlanDesignProcureConstruct

P LANNING THE P ROJECT What are Other costs… Product Systems Tanks Piping/Mechanical Electrical/Controls Rail Docks Other Costs Stormwater Management Fire Protection Geotechnical/Soils Issues Permitting/Approvals Design and Management Fees

P LANNING THE P ROJECT Other costs… Focusing on line-item costs can be misleading…. Additional liability comes from potential: Re-Work $ Schedule Delay $$ Unusable Real Estate Assets $$$ Operations Impact $$$$ Failed Customer Commitments $$$$$

P LANNING THE P ROJECT Depends on procurement method… Single-Source EPC Full-Service Design, Bid & GC Multiple Design contracts and Construction contracts Just build it…now (not recommended)

P LANNING THE P ROJECT …in 3 steps Develop a scope Vet the project Assemble a Concept Package Planning the Project Planning Process Planning Tools and Tips

P LANNING THE P ROJECT Develop a scope… Written scope of construction with photos Flow Diagrams (redlines or new) Site Layout …or any combination of these. Planning the Project Planning Process Planning Tools and Tips

P LANNING THE P ROJECT Vet the project… with local operations with permit authorities with providers (rail, pipeline, harbormasters, etc) with major vendors (tanks, heaters, etc) Planning the Project Planning Process Planning Tools and Tips

P LANNING THE P ROJECT Assemble concept package… Scope of Construction Site Layout Cost Estimate Permit information Project Schedule Planning the Project Planning Process Planning Tools and Tips

Considerations… Who can impact my project Typical permits/approvals Permit investigation Internal requirements Other projects/permits Useful documents to have Use a checklist/form Planning the Project Planning Process Planning Tools and Tips P LANNING P ROCESS

Who can impact my project… City, County, and State Provider (rail, pipeline, etc) EPA (or DEP, DENR, EPD, DEQ) DOT US CG US ACE Marine/Harbor Association Neighbors/Stakeholders Planning the Project Planning Process Planning Tools and Tips P LANNING P ROCESS

Typical permits/approvals… Planning/Zoning Land Disturbance Stormwater/Water Quality Fire Dept Building/Foundation Air (construction, operation) NPDES Rail Planning the Project Planning Process Planning Tools and Tips P LANNING P ROCESS

What if there is permitting… Assemble Permit Tracking form Permit contact, schedule, fee What is the permit trigger? Is it admin or technical? Are there predecessors? Is it a predecessor to others? Is permit needed for all, some or operations only Planning the Project Planning Process Planning Tools and Tips P LANNING P ROCESS

Internal requirements… Find out what approvals are needed internally – safety, environmental, operations, etc. Is PHA/HAZOP needed? Assign contact person from the beginning for each Planning the Project Planning Process Planning Tools and Tips P LANNING P ROCESS

Useful documents to have… Surveys (ALTA, topo, hydro) Geotechnical investigations API 653s and pump data SPCC and NPDES 70E Arc Flash/One-lines/Bills Current/active Permits Fire-flow tests Easements/Agreements Planning the Project Planning Process Planning Tools and Tips P LANNING P ROCESS

Use a checklist or form… Develop a standard checklist for project planning (or borrow) Keep track of permits, approvals, documents, etc Planning the Project Planning Process Planning Tools and Tips P LANNING P ROCESS

Use a checklist or form… Develop a standard checklist for project planning (or borrow) Keep track of permits, approvals, documents, etc Planning the Project Planning Process Planning Tools and Tips P LANNING P ROCESS

Tips… Vet the project – operations, permits, and providers Every permit and regulation has a trigger… Know it. Plan for the worst (reasonable) Set aside 10% for construction contingency Planning the Project Planning Process Planning Tools and Tips P LANNING T OOLS AND T IPS

Tips… Gather documents, now Know the approvals needed, when theyre needed, and which comes first Have a standard Project Plan package – use it every time Planning the Project Planning Process Planning Tools and Tips P LANNING T OOLS AND T IPS

Todd M Eldridge, P.E (office)