1. Controlling Project Cost and Schedule
Protecting the Waters of the State…

2. What is GCA Political Subdivision of the state Established 1969
Governed by a 9 member appointed Board of Directors
Can operate statewide
Fully funded by services provided
No ad valorem taxes
Mission
Protecting the waters of the State of Texas through environmentally sound and economically feasible regional waste management practices

3. GCA Operations
Own and operate 4 regional industrial wastewater treatment facilities ~90 industries 50 mgd
Blackhawk Facility is a regional municipal wastewater treatment facility
POTW so operate a pretreatment program
Odessa Facility supplies treated wastewater for O&G water supply

4. How to Produce a Poor Project Outcome
Lack of Clear Project Objectives
Weak Project Management Processes
Poor Change Management
Ambiguity in Bid Package

5. “Benefits” of a Poor Project Outcome
Excessive Contractor Change Orders $$
Project Delays $$
Contractor Disputes $$$
Attorney Fees $$$$

6. Avoiding a Poor Project Outcome

7. Basic Elements of a Project
Scope
Schedule
Budget
All exist in equilibrium- changing one changes the other two
Key to maintaining Schedule and Budget is to define Scope early and control of Scope to the extent possible

8. How GCA Avoids a Poor Project Outcome
Formal Project Management Process that Requires:
Clear Project Objectives
Inclusive Project Team
Specific Project Deliverables to Avoid Ambiguity in Bid Documents
Strong Change Management Process

9. GCA Project Work Process (Stage/Gate)
Project is broken up in to clearly defined stages of work
Each stage has specific expectation that need to be addressed before progressing to next stage
Progression to next stage requires senior management approval

10. Project Objectives
Defines what is the expected project result not what to build.
What problem(s) will this project address?
What are the expected performance outcomes?
What is the required project delivery date?
What are the know constraints?

11. Project Objectives- All Projects Must Address
Core Values
Safety
Reliability
Compliance
Cost Effectiveness
Operability
Maintainability

12. Project Objective Example
Provide a disinfection system upgrade to meet the new regulatory limits
System to be in compliant operation by November 1, 2022
The system must be installed on the current plant site but not include the area reserved for future treatment expansion
The system must be expandable to meet future planned capacity
The system must be installed without interruption of operations
The system must not include gaseous chlorine or other potential off site vapor release hazards
Minimize operational and maintenance complexity.
Control of capital cost is more important than operational cost

13. Project Execution Process
Strong Project Manager
Authority to control the project
Clear delineation of roles
Inclusive Project Team
Report to PM for project work
Provide communication between the project team and respective area of representation

14. GCA Project Work Process- Project Team
Project Manager
Project Engineer
Facility Representative (Operations & Maintenance)
Compliance Representative
Engineering Consultants
Other staff as necessary (Safety, Reliability, QA/QC Reviewers, etc.)

15. GCA Project Work Process Stages

16. Key Stage Deliverables
Stage 0- Needs Identification
Clear objectives and preliminary justification.
Stage 1- Planning Studies/Technology Selection
Define initial Basis of Design
Evaluation and selection of technology to meet objectives

17. Key Stage Deliverables
Process configuration, layout and key equipment needs
Updated cost estimate
Permitting requirements
Equipment delivery issues
Utility needs
Plan of how to address obstacles to completion.
Initial Transition Plan

18. Key Stage Deliverables
Stage 3- Detail Design
Bid Package
Detail of how to construct the project
Complete specifications
The more detailed the bid package the more likely to be able to build a partnership with the contractor rather than an adversarial relationship
We use Best Value bid evaluation process
Assure compliance with GCA standards
Updated cost estimate
Updated Transition Plan
Startup and Commissioning Plan
Identification of construction risks and associated costs
Project turnover requirements

19. Key Stage Deliverables
Stage 4- Construction
Complete construction of the project
Careful review of contractor submittal
Assurance of meeting design package requirements
Maintaining up to date as-builts
Stage 5- Commissioning
Project team verifies work is ready for turnover to operations
Complete Turnover Packages including warrantee documents
All manuals and as-builts up to date
Stage 6- Startup
Training and support to operations
Complete PSSR

20. Change Management Key element in maintaining cost and schedule targets
All projects will requires some changes due to unforeseen weather or site conditions
Having a formal change management process valuable tool to meeting cost and schedule targets
Avoid Scope Creep

21. Scope Creep

22. GCA Change Management Process
Key elements approved in one stage require formal approval to be changed in subsequent stages
Guidelines for approval are defined in PWP documentation
Two types of changes
Project Changes
Scope Changes

23. Project Changes
Allows changes to completed work under certain conditions
Needed to meet Project Objectives
Needed for to meet a safety requirement
Need to meet a regulatory requirement
Change goes through Project Manager’s chain of command
Requires justification of one of the above
Requires definition of cost and schedule impact

24. Scope Change A change request that is not a Project Change
Change is approved through Facility Operations chain of command
All Scope Changes require General Manager approval
Requires technical and cost/schedule evaluation by Project Management Team
Approval provides a change to the project budget and schedule

25. Summary
A Formal Project Management Process can improve your ability to meet cost and schedule targets
Key elements of good project management process include:
Clear Project Objectives
Inclusive Project Team
Specific Project Deliverables to Avoid Ambiguity in Bid Documents
Strong Change Management Process