Standards of Practice Course PROJECT MANAGEMENT

Agenda Definitions and Functions Goals, Philosophies, and Concepts Project Management Tools PM Services by Phase © Construction Management Association of America. Do Not Duplicate or Reproduce.

Project Management: Definition As qualified to a construction project, the use of integrated systems and procedures by the project team to accomplish design and construction. © Construction Management Association of America. Do Not Duplicate or Reproduce.

Project management is an integral part of construction management © Construction Management Association of America. Do Not Duplicate or Reproduce.

Project Management: Functions Project Planning and Management Cost Management Schedule Management Scope Management Quality Management Safety/Risk Program Management Contract Administration © Construction Management Association of America. Do Not Duplicate or Reproduce.

Project Management: Goals, Philosophies, Key Elements Control time, scope, cost, and quality Apply integrated systems and procedures to achieve the Owner’s goals Key issues that affect scope of work: - Ambiguities - Inconsistencies - Errors & Omissions © Construction Management Association of America. Do Not Duplicate or Reproduce.

Project Management: Goals, Philosophies, Key Elements Essence of a good CM is professionalism and teamwork “The CM is the Master Integrator” Judith Kunoff, AIA, CCM © Construction Management Association of America. Do Not Duplicate or Reproduce.

Stakeholders (project participants) Needs Expectations Interests Owner CM Designer Contractor Subcontractor(s) Vendor(s) © Construction Management Association of America. Do Not Duplicate or Reproduce.

Project Management: Goals, Philosophies, Key Elements “Create an environment in which contractors can be productive.” Woodrow Wilson Bridge CM Plan © Construction Management Association of America. Do Not Duplicate or Reproduce.

Interrelations of Time, Cost & Quality How much? Time How long? Scope How well Quality © Construction Management Association of America. Do Not Duplicate or Reproduce.

Interrelations of Time, Cost & Quality How much? Time How long? Scope How well Quality © Construction Management Association of America. Do Not Duplicate or Reproduce.

Goal of Project Controls Cost Control - Complete within the Owner’s budget Schedule Control - Finish within the Owner’s required timeframe Quality Control / Assurance - Final product expectations, objectives, standards, and intended purpose © Construction Management Association of America. Do Not Duplicate or Reproduce.

Management of the Project Team Projects need: Multi-disciplinary teams of specialists Strong leadership - Professionals will (generally) follow the rules if they know what they are Partnering, leading to a collaborative culture, is the ultimate goal © Construction Management Association of America. Do Not Duplicate or Reproduce.

Management of the Project Team (continued) Clearly stated, comprehensive agreements (e.g. Complete within the Owner’s budget) Clear, accurate and complete Const Docs Fair, fast, and timely decision-making © Construction Management Association of America. Do Not Duplicate or Reproduce. September, 2006

Management of the Project Team (continued) Pre-planned resolution procedures People with people skills - Disagreeing without being disagreeable - Arguing issues, not egos - Resorting to “higher authority” quickly © Construction Management Association of America. Do Not Duplicate or Reproduce.

Owner’s Requirements (e.g. funding) LISTEN!! Learn the owner’s issues Explain to the owner what value we can add Be familiar with - Feasibility studies -Cash flow projections - Break-even analyses -ROI calculations - Life-cycle cost analyses - Public and private debt requirements © Construction Management Association of America. Do Not Duplicate or Reproduce.

QUESTIONS?

Pre-qualifications / Selection of Designers and Contractors All designers and contractors are not created equal Expertise and reputation should match the project requirements © Construction Management Association of America. Do Not Duplicate or Reproduce.

Pre-qualifications / Selection of Designers and Contractors CM cannot control the Owner’s decisions, but has an ethical obligation to advise on them If the “wrong” designer or contractor or subcontractor is selected – act quickly © Construction Management Association of America. Do Not Duplicate or Reproduce.

Development and Coordination of Contract Language Language in all contracts must be consistent and non-contradictory Language in specifications and drawings must be consistent and non-contradictory Language in bid submittal documents must be coordinated with contracts © Construction Management Association of America. Do Not Duplicate or Reproduce.

Development and Coordination of Contract Language Properly coordinate Scope packaging Have your most skilled manager serve as editor Prepare the language and documents carefully, then have everything reviewed twice as carefully! © Construction Management Association of America. Do Not Duplicate or Reproduce.

Project Management Tools Construction Management Plan Project Procedures Manual Quality Management Plan Procurement Plan Contracts or Agreements Laws Standards of Care © Construction Management Association of America. Do Not Duplicate or Reproduce.

PM Tool #1: The Construction Management Plan Articulates the project vision Defines / documents project requirements Establishes scope, budget, schedule and quality management approach Identifies team members and their roles / responsibilities © Construction Management Association of America. Do Not Duplicate or Reproduce.

PM Tool #1: The Construction Management Plan, cont. Identifies organizational structure Addresses significant site and environmental issues Establishes communications protocol Identifies contracting strategy Basis for evaluating team’s performance © Construction Management Association of America. Do Not Duplicate or Reproduce.

PM Tool #2: The Project Procedures Manual Cost control procedures Schedule control procedures Communications procedures MIS procedures QA program procedures Team organization - Levels of authority - Roles / responsibilities © Construction Management Association of America. Do Not Duplicate or Reproduce.

PM Tool #2: The Project Procedures Manual (continued) Contractor coordination procedures Safety program procedures Meeting protocol Documentation procedures Procedures for all contract administration documents © Construction Management Association of America. Do Not Duplicate or Reproduce.

PM Tool #3: The Quality Management Plan Project organization Quality goals and objectives (services and construction) General methodology for QA © Construction Management Association of America. Do Not Duplicate or Reproduce.

PM Tool #3: The Quality Management Plan (continued) QA Responsibility Decision Flow Charts Quality control plan Quality assurance plan © Construction Management Association of America. Do Not Duplicate or Reproduce.

PM Tool #4: The Construction Procurement Plan Identifies alternative contracting strategies Evaluates strategies and identifies pros/cons with respect to Owner’s requirements and constraints © Construction Management Association of America. Do Not Duplicate or Reproduce.

PM Tool #4: The Construction Procurement Plan (continued) Recommends a strategy or strategies with supporting rationale Establishes actions necessary prior to procurement © Construction Management Association of America. Do Not Duplicate or Reproduce.

PM Tool #5: Contracts and Agreements Standard forms of agreements: - CMAA - AIA - AGC - DBIA - Others… Modified standard forms Owner-prescribed forms © Construction Management Association of America. Do Not Duplicate or Reproduce.

PM Tool #5: Contracts and Agreements (continued) Send your contract to review by: - Legal counsel - Insurance provider Get legal assistance to review all contracts: Don’t try to play the role of lawyer (and don’t let your lawyer manage construction) © Construction Management Association of America. Do Not Duplicate or Reproduce.

PM Tool #6: The Law(s) We are a society based on the concept of law… Statutes, both Federal and State Case law…it grows every day and helps define required “standards of care” Helps shape risk management plans © Construction Management Association of America. Do Not Duplicate or Reproduce.

PM Tool #7: Standards of Care It’s what is expected of you You need to learn them, and stay current on them Your boss may…the judge and jury will…judge your actions with respect to “them” © Construction Management Association of America. Do Not Duplicate or Reproduce.

PM Tool #7: Standards of Care (continued) The “right” standard of care will be judged in accordance with: - terms of the CM agreement - current statutes and case law - what other prudent CMs would do (or have done) in similar circumstances at the location and time the services were provided © Construction Management Association of America. Do Not Duplicate or Reproduce.

QUESTIONS?

Phases of a Project Pre-Design* Design Procurement Construction Post-Construction *optimum time to hire a CM © Construction Management Association of America. Do Not Duplicate or Reproduce.

Pre-Design Phase Project organization Construction Management Plan Project Procedures Manual Designer(s) selection Pre-design project conference Management Information System Special studies/reports (soils, exist. dwgs) Constructability Reviews © Construction Management Association of America. Do Not Duplicate or Reproduce.

Designer Selection Contracting strategies for design professional services Identify basic tasks and responsibilities Define criteria for selection © Construction Management Association of America. Do Not Duplicate or Reproduce.

Designer Selection Develop lists of potential firms Prepare and transmit the RFP Assist in review of written proposals and interviews © Construction Management Association of America. Do Not Duplicate or Reproduce.

Pre-Design Conference Construction manager plans, conducts, and documents the conference Establish commitment and understanding of project goals, stakeholders, approach and procedures by Owner, Designer, and Construction Manager © Construction Management Association of America. Do Not Duplicate or Reproduce.

Management Information System Why have one? - Status and forecast compared to PMP - Basis for managing, identifying, and evaluating problem areas and variances - Address information needs, data sources and control elements for time / cost / quality control - Accommodate continuing input of data - Efficient communication tool for stakeholders © Construction Management Association of America. Do Not Duplicate or Reproduce.

Management Information System (aka “Project Record”) Includes: - General correspondence - Periodic reports of activity performance - Drawing schedules - Submittals - Transmittals - Change requests and authorizations - Daily reports / weather conditions © Construction Management Association of America. Do Not Duplicate or Reproduce.

Management Information System, cont. Includes: - Procurement - Material control - Meeting minutes - Oral instructions / field directives - Controlled inspections - Non-conforming work - Scheduling records - Progress photos © Construction Management Association of America. Do Not Duplicate or Reproduce.

Design Phase Goals Complete a set of documents defining a project which can be built in the current marketplace within the owner’s established budget, scope and schedule requirements Basic sections required of a complete set of contract documents: - Technical specifications - Project drawings - Agreements © Construction Management Association of America. Do Not Duplicate or Reproduce.

Design Phase Includes: - Document review (phased) - Document distribution - Scope verification and sign-offs - Front-end documents: contract, general conditions & supplementary general conditions - Public relations - Project funding - Meetings - Cost control: independent phased cost estimates - Time control: milestone development - Consultant coordination - Permit approval oversight © Construction Management Association of America. Do Not Duplicate or Reproduce.

Pre-Construction / Procuring Contractors Key Concepts - Public relations: means of reaching potential bidders - Assessing bidding climates - Requirements for selection of pre-qualified bidders - Assessing and evaluating bidder qualifications - Understanding basic content required of contract general conditions - Addressing risk management issues in contractor’s pre-award meetings © Construction Management Association of America. Do Not Duplicate or Reproduce.

Bidding and Contracting The Process: - Solicitation and prequalification - Evaluation guidelines - Notices / advertisements - Bidders/ interest campaign - Delivery of bid documents - Information to bidders - Issuance of addenda © Construction Management Association of America. Do Not Duplicate or Reproduce.

Bidding and Contracting (continued) The Process: - Bid opening and evaluation - Monitor compliance with and execution of contracts - Provisions for permits, insurance and labor affidavits - Arrange Owner-purchased equipment - Other requirements © Construction Management Association of America. Do Not Duplicate or Reproduce.

Construction Phase Includes: - Safety - On-site facilities - Public relations / Public Outreach / Tours? - Safety - On-site facilities - Coordination/ Meetings - Time management - Budget and cost reporting - Payment request processing - Change orders - Dispute resolution © Construction Management Association of America. Do Not Duplicate or Reproduce.

Construction Phase (continued) Includes: - Utility, SWPP and off-site improvement oversight - Quality management - Record keeping - Management reporting - Owner-purchase materials and equipment - Record drawings - Claims management © Construction Management Association of America. Do Not Duplicate or Reproduce.

Contract Modification The Sequence: - Develop scope, estimate the cost, and analyze the schedule impact before receiving a formal request from the GC, or prior to Owner’s request for proposal (RFP) being sent to the contractor - Contractor proposes on scope, cost, and time - Negotiations - Develop and agree on modification language - Execute modification © Construction Management Association of America. Do Not Duplicate or Reproduce.

Alternative Dispute Resolution Techniques: - Discussion: reasonable people with focus - Negotiation: willingness to modify terms - Mediation: any time, no contractual agreement required, confidentiality of information, mediator does not impose terms, totally voluntary - Dispute Review Board: contractual, 3 members, meet regularly and as needed, non-binding decisions - Arbitration: contractual, formal and structured, binding and not subject to appeal (usually) © Construction Management Association of America. Do Not Duplicate or Reproduce.

When Nearing Completion Key Terms to Remember: - Preliminary inspection - Punchlist work - Final inspection - Beneficial occupancy - Substantial completion - Start-up - Commissioning - Final completion © Construction Management Association of America. Do Not Duplicate or Reproduce.

Post Construction Phase Includes: - Preparing and transmitting documents connected with the final payment - Organization of O&M manuals, warranties, training - Assembling record drawings - Contractor follow-up - Owner move-in or start-up - Contractor call-back - Contractor closeout © Construction Management Association of America. Do Not Duplicate or Reproduce.

Interests Expectations Needs Architect-Engineer Subcontractors Construction Manager Owners General Contractor Vendors © Construction Management Association of America. Do Not Duplicate or Reproduce.

Summary Project Management: integrating systems to accomplish design and construction Integrator of stakeholder needs, expectations, and interests Organize early with PMP, MIS, and Procedures Manual Control time, scope, cost, and quality Change happens! © Construction Management Association of America. Do Not Duplicate or Reproduce.

QUESTIONS?