1. Administering Lump Sum P/T Contracts via a Cost Loaded Schedule
Tom Wiener, P.E. MnDOT Project Controls Engineer
Matt Reid, P.E. HDR Engineering, Inc.

2. Background – Why?

3. Cost Loaded Schedule Allows for Breakdown of L.S. Cost
Validate Costs of the L.S.
Better Quality Control
Better Progress Control and Monitoring
Earned Value / Revenue Techniques
Why us Cost loaded schedule to administer Payment
Cost Breakdown
Estimates still can be done internally on major qty and compared to the L.S. Bid
Better Progress Control
When payment becomes an integral element of the schedule the result is a schedule that is paid attention too – thus a more useful schedule
Better Quality Control
When 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 items
Coming 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 Values
Contractor
Consultant
Challenges Faced
We’ve Never Done This Before ($14.2M QBS)
Office of Audit/Validation of Costs
Creating Negotiated Work Packages from RFP
Schedule Was a Learning Curve for Consultant

6. MN Earned Revenue Method
Provides Method for Equity Control
Allows for Schedule Risk to be Reduced
Reduces Fears of Lump Sum
Lump Sum
Encourages Innovation
Scope Diligence
Streamlined Payment Administration
OR Maybe Why not Lump Sum
Transfer of Risk
In 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 not
But what if we don’t want to dictate means and methods – say a DB contract
More clear understanding of the scope
Less scope creep
Less cost growth

7. St. Croix Design Schedule

8. St. Croix Design Schedule
Lump Sum Contract Requirement
1st Design Contract – Lump Sum CPM
Use of MnDOT SWIFT Codes
1010 – Project Management
1250 – Misc. Engineering & Support
2824 – Special Studies
ABUT
DECK
PIER
Oracle Primavera P6

9. Types of Schedules
Baseline Schedules – 1st plan for executing work and progress measured from
Update 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 locally
Coordination with Functional Leads and MnDOT
Baseline Acceptance
Baseline Uploaded to MnDOT Hosted P6 Environment

11. St. Croix - Work Breakdown Structure (WBS)

12. MnDOT CPM Specifications
Similar to MnDOT CPM Const Specs – 1803
Activity Durations 5-20 days
Activity must have Predecessor/Successor
No Lags/Leads
Constraints
Contract Time, Delays, Impacts, Failure to complete work on time
Very similar to MnDOT standard spec for construction cpm.

13. St. Croix Scheduling Schedule Activities – 465
Logic Relationships – 750
Constraints – 14 Initially, 2 Afterward
Critical Activities – 40, less than 10% of Project, no more than 30% per spec

14. Assigning Cost Accounts to Activities- Cost Loading
SWIFT Codes
Differentiate Subs – Multiple Entries
Reporting

15. Schedule Updates – Earned Value
Schedule Updated Monthly
Purposes of CPM
Coordination with Design Functional Leads
Schedule Narrative
Highlights Anticipated/Final Milestones
Critical Coordination Activities
Change in Schedule Logic
Payment - 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
Organization
Define deliverables in an organized format
Ensure all contracted deliverables are accounted for
Activities have agreed upon budget
Communication
Relationship between disciplines and other parties
Responsibility - activities are assigned to companies, DOT
When deliverables are required logically
Analysis
On time – baseline comparison and float analysis
On budget – Internal earned value/percent complete analysis
Risk 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 process
Truly managed schedules (Earned Revenue Mngt)
We needed this design done on time
Streamlined Payment administration – Auditing History

19. Where Are We At/Going? Projects in Scoping and Design Phase
Project In Construction Phase
Contractor’s build schedule in our network 1/1/13
Piloting BIM and CTD schedules 3/1/13
Select Unit Rate project Resource and Cost Loaded 3/1/13
Role and Resource Loaded of CE&I staff 6/1/14
Projects in Scoping and Design Phase
Programmed Projects Role and Resource Loaded 6/30/13
All planned projects Role loaded by June 30, 2014
Taxpayer Transportation Accountability Act
Cost 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 Schedule
Tom Wiener, P.E. MnDOT Project Controls Engineer
Matt Reid, P.E. HDR Engineering, Inc.