Managing Assets Through Enterprise - Wide Scheduling

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1 Managing Assets Through Enterprise - Wide Scheduling Scott Lowe, P.E. Principal, Trauner Consulting Services, Inc.

2 Scott Lowe, Principal, Trauner Consulting Services CPM Scheduler Claims Analyst Expert Witness Author 1

3 The State of the Practice Regarding CPM Most state DOTs require CPM schedules on at least some of their projects. Many require CPM schedules on most of their projects. Many states are beginning to move from P3 to P6. Several states have implemented or are contemplating enterprise installations. 2

4 NYSDOT Installation of Enterprise Scheduling Cutting edge enterprise installation of P6. Excellent infrastructure. Good practices in place regarding submission, review, and acceptance of schedules. Active management of schedules to address delays as they arise. 3

5 What are the Benefits of Enterprise-Wide Scheduling? There is no hard data as to benefits, but our observations are that: Schedule submissions are more timely They are better They are reviewed more quickly Problems are recognized more quickly We know of no claims on projects being scheduled in the NYSDOT enterprise. 4

6 A Note About Turnaround Times We know of no major public owner that is able to routinely achieve 5-day schedule review turnaround times other than NYSDOT. This fast turnaround is possible for three reasons: 1. The Enterprise 2. The use of standard review forms in addition to the usual reports 3. The use of consultants to supplement NYSDOT staff when resources are stretched. 5

7 New York State DOT System* Five year s experience with statewide system Used for construction and pre-construction project management Contractors develop and maintain schedules on NYSDOT s servers inside the firewall Consultants assist with schedule review on NYSDOT s servers *NYSDOT provided from NHI s Innovations Web Conference Series 6

8 NYSDOT Scheduling Project Field Office perform progress schedule reviews, schedule analysis, and delay mitigation strategies. Regional Office responsible for Level 2 time-related delay disputes, and review of contract change orders and time extension requests. Main Office responsible for policy, specifications, procedures, guidance, training, P6 software administration, second-line HELPDESK Support, consultant management, and Level 3 timerelated contract disputes. Information Technology Division responsible for network support, server support, database support, desktop support, network security, first-line HELPDESK user support, software licensing, and data backup and recovery. 7

9 The Big Challenge Steps to Implement Enterprise Scheduling System For NYSDOT 1. Identify Executive Management Goals 2. Identify Regional Construction / Project Field Office Needs 3. Research Other State Dot Current/Best Practices 4. Partner With Construction Industry Groups 5. Document Existing and Desired Business Processes 6. Work With NYSDOT IT Division to Procure Hardware and Software 7. Procure Consultant Services to Assist With Implementation 8. Configure P6 Enterprise 9. Develop New Specifications, Policies, and Manuals 10. Conduct Training 11. Implement on Pilot Projects 12. Implement Changes as Required to Address Issues 13. Implement on All Projects 8

10 The Big Challenge (Goals) More transparency of capital program information through posting all project cost/schedule data on agency website, along with performance metrics. Meet agency Construction program performance goals (Goal for 2012 was 90% of projects delivered on time and with less than 5% cost overruns). Use enterprise systems to manage project related cost/schedule information, and feed enterprise data warehouse for reporting. Find software tool(s) that facilitate more efficient project management and increased collaboration between project stakeholders, and also make that information available to capital program managers. Replace various scheduling tools/versions with one tool that can be supported by agency IT HelpDesk staff, and program area training staff. Reduced licensing and support costs, and reliable data backup/recovery. Facilitate CPM/project management training to build body of knowledge. Reduce risks and costs associated with potential time-related disputes 9

11 NYSDOT was Looking for a Tool for planning, design, and construction staff to manage project schedules real time. that will allow staff to access project schedules at the same time, and that facilitates collaboration and communication. allows access via the Internet, so data is available to all stakeholders wherever they are located. with customizable roles and security privileges to facilitate consultants and contractors building project schedules in NYSDOT s centralized database. that facilitates standardization of schedule methodologies to improve efficiency. that facilitates more timely submittal and review/approval of schedules. that facilitates collaborative analysis of time delays during construction and assists in avoiding, minimizing, and mitigating those delays and related dispute and contract claim costs. that links schedules to a central document repository for easy retrieval by all project stakeholders. 10

12 NYSDOT s Big Solution NYSDOT implemented Oracle-Primavera P6 release 6.1 SP2 on network servers. ($4.7M) P6 Client available through NYSDOT WAN and via CITRIX (5 Citrix servers to balance user load) P6 WebPM available through web server Oracle database platform 2500 Named User licenses + 10 concurrent user licenses. Licenses provided for all users Multi-Tiered environment (Dev, Test, Prod, Train) Using P6 Release 8.2 NYSDOT has project underway to design and implement Enterprise Data Warehouse to join information from various enterprise applications for reporting purposes. Cost and schedule information will be available for all projects. 11

13 The Big Solution Additional Contract Services Required CSMIN Contract (currently with IBM) to provide construction Field Office wireless router, computers, printers, scanners, high speed Internet service, and maintenance ($6 million annually for 300 sites). Software maintenance and support agreement with Oracle-Primavera. Higher-level support agreement, with bi-monthly conference calls with Primavera technical support staff. One, full-time consultant to provide training courses on using Primavera P6 and Contract Manager. One, full-time consultant to handle P6 enterprise admin tasks and User HELPDESK support. Consultant contract (currently with TRAUNER) to provide construction support services and CPM scheduling services. 12

14 Critical Issues for Implementation Established Executive Management vision and goals Needed champions at Executive level Partnering with construction industry and consultant industry groups DOT IT support/coordination Information gathering, including best practices Sufficient resources for implementation and maintenance of software system Training to improve project management skills and to become proficient using P6 software Development and issuance of technical policies, standards, and guidance (Scheduling Manual) 13

15 Critical Issues Phased implementation. Focus first on the most complex projects that have highest risks. Use Pilot projects. Seek volunteers that are motivated individuals, automation oriented, early implementer types, project manager mentality. Then support them. Later phase of implementation includes an electronic schedule for all active construction projects. Training for construction and consultant staff. Stress importance of Progress Schedule integrity, and that first priority of scheduling is to use it to manage the project. 14

16 Lessons Learned Specification Issues: Vary specification requirements based on project complexity. Type 1 - Bar Chart, simple projects (Monthly) Type 2A - CPM, routine projects (Monthly) Type 2B CPM, moderately complex (Bi-weekly) Type 2C CPM, complex projects (Weekly) Contractor must develop and maintain Progress Schedule on DOT servers. Needs to include criteria for minimally acceptable Progress Schedule submission. Method Of Measurement minimum Lump Sum Scheduling Manual to supplement CPM specification and provide detailed scheduling requirements. 15

17 Lessons Learned IT issues: Need higher-level Oracle-Primavera Maintenance/Support agreement. CITRIX server farm to distribute user load for P6 Client users for remote access. P6 Web for dashboards, reports, graphics. Shared server for document collaboration. Do NOT import schedules into enterprise database. Automate reports on AD account usage and P6 account usage to program area administrators providing login/logout times. 16

18 Lessons Learned Program Area support issues: Use Web page to disseminate policy and guidance to users. Implement shared address for Admin staff. Implement group contact list to notify user group of scheduled maintenance issues. Regularly monitor security profiles and privileges for changes. 17

19 Lessons Learned Resource issues: Initially required various levels of resource loading based on project complexity. Contractors disliked resource loading, time consuming data entry and impression that DOT had limited use for data. Have now shifted to requiring Productivity Rates instead of resource loading. Productivity Rates entered into activity Notebook tab, along with corresponding quantity. Easier for both Contractor and for State review. 18

20 Lessons Learned Training issues: Custom training manuals geared toward Primavera software that utilize highway/bridge example projects. Use separate training database with example Progress Schedules to allow hands-on training for course attendees. Use Master training database to restore training database after each training course. Just-in-time training for Construction Field Office staff. Automation training rooms with one computer per course attendee. Program Area facilitator at training courses to handle detailed construction policy issues, coordinate with IT HelpDesk staff to resolve problems, and assist attendees. Train-the-Trainer not successful. Engineers do not want to provide training in scheduling software or project management. 19

21 Advantages of P6 Enterprise NYSDOT Main Office provides all the IT support and user licenses for the enterprise systems, relieves burden from Contractor s, Consultants, and project field office staff. Improved data security. Data integrity. Regular automated data backup. Only one software version needs to be maintained and supported by IT Division. More reliable automation training environment. Application software, training database, and training user accounts are on network servers. No proprietary software issues with respect to contract specification. Also manages Consultant Term Agreement to provide assistance to EIC for schedule reviews and dispute resolution. Also coordinates additional assistance through Oracle Support contract. 20

22 Advantages of P6 Enterprise All project stakeholders using the same scheduling software. Assures schedule used by entire project team is the same. Helps standardize and speed schedule development Standard Reports, Project Layouts, Activity Layouts, Filters, Global Activity Codes, Global Calendars, etc. Schedules are calculated using the same settings. Faster schedule reviews. No mailing disks, converting file formats, loading files, or lost files. Agency only has to support training on one software version. 21

23 Advantages of P6 Enterprise One project record (Schedules/Narratives/Reviews) available to all concerned parties and available via WEB. Contractor Project Field Office Consultant Construction Support Regional Office Main Office (Construction, Legal, Executive Management) Improves collaboration/communication between Agency, Contractor and Consultant. Improved project management and documentation reduces project delays and thereby reduces disputes. Less potential for Contractor claims for Extended Overhead costs. 22

24 Advantages of P6 Enterprise Agency can maintain important data with schedule. Project Codes Contract D #, PIN #, Region, EIC, CS, Contractor, Scheduler, Reviewer, County, Town, Legislative District, etc. Review Status User Defined Fields (fields created by agency) Letting Date, Award Date, Completion Date Date Progress Schedule was submitted by Contractor. Date Schedule was approved/accepted by agency. Contract Bid Cost, Current Construction Cost. Contractor s Narrative Report Schedule Review Report 23

25 Advantages of P6 Enterprise Program Management Tool Managers have access to all their project schedules. Project Codes used to group, sort, and filter schedules. Quick identification of project performance. Standard Global Reports for Managers. 24

26 Claims Avoidance Claims are essentially unresolved changes. Thus, to avoid a claim, we must reduce the number of changes. And, we must provide systems on the project to help us resolve disputes. 25

27 Claims Avoidance 99% of the claims we review have delay as a component; often the primary component. That means that delays are proving hard for the project team to prevent and tough to resolve. 26

28 The Problems The baseline schedule is approved too late in the project. Schedule updates are not submitted or are not submitted timely. The contractor makes unapproved changes to the schedule. 27

29 Late Baseline Schedule Approval This problem takes many forms, but the ultimate problem is that the baseline progress schedule is not approved for several months into the project. The result is that there is no schedule in place during the early months of the project. 28

30 Late Baseline Schedule Approval Also, the agency may be concerned that the baseline schedule ultimately approved has been manipulated to magnify the impact of any early owner delays to the project. 29

31 The Solution Submittal Dates Require the baseline progress schedule to be submitted as part of the bid to establish responsibility. Require the baseline schedule to be submitted at the time of award as a condition of issuance of the notice to proceed. Require the baseline schedule to be submitted prior to the preconstruction meeting. 30

32 The Solution Submittal Dates B.1 Preliminary Schedule Acceptance of the first Preliminary Schedule is a condition of Contract Approval and NTP1. A delay in submitting the Preliminary Schedule is a nonexcusable delay under A, Non-Excusable Delays, and the Contractor is not entitled to an extension of the Contract Time. 31

33 The Solution Submittal Dates All schedules submitted before the Department accepts the Baseline Schedule will be considered Preliminary Schedules until the Preliminary Schedule is accepted as the Baseline Schedule in accordance with B.2, Baseline Schedule ; the Contractor shall continue to improve upon the Preliminary Schedules and show the status of Work actually completed by incorporating actual start and finish dates and by reasonably estimating the remaining duration for each incomplete activity. 32

34 The Solution Submittal Dates At a minimum, the Contractor shall include the following level of detail in the Preliminary Schedules: 1. First Preliminary Schedule: show all Milestone dates are understood and provide a detailed schedule for a 30- day look-ahead period. 2. Subsequent Preliminary Schedules: show all Milestone dates are understood and provide a detailed schedule for a 45-day look-ahead period. 3. Changes to the First Preliminary Schedule in subsequent submissions shall be closely coordinated with the Engineer and are subject to the Engineer s review and acceptance. 33

35 Submittal Concerns Schedule does not comply with the contract. Schedule shows early completion. Schedule is unreasonable or in error. Schedule sequesters float. Schedule has been manipulated. 34

36 Submittal Concerns PERFECTION IS NOT THE STANDARD! 35

37 The Solution Enforcement Allow no work on site to occur until the baseline schedule is submitted. Make no payments or make reduced payments until the baseline schedule is approved. Allow no time extensions for delays incurred prior to the baseline schedule being approved. 36

38 The Solution Enforcement A.3 Non-Compliance The Contractor's refusal, failure, or neglect to pursue timely acceptance of any schedule shall constitute reasonable evidence that the Contractor is not prosecuting the Work with the diligence that will ensure its completion within the applicable Contract Time and shall constitute sufficient basis for the Engineer to exercise options available in this "Non-Compliance" section. The Engineer will determine which of the following option(s) will best facilitate compliance: (1) 100 Percent Withholding: The Engineer may withhold an amount up to 100 percent of the estimated value of work performed. (2) Monetary Deduction: The Engineer may assess a nonrecoverable Monetary Deduction of up to $1,000/day for every day past an applicable deadline within 1803, Progress Schedule. 37

39 The Solution Contract Admin Use the schedule to manage the project. Trust, but verify. Provide adequate resources to ensure timely and complete reviews. Keep the schedule review as close to the project as possible. Escalate problems quickly. 38

40 Schedule Updates are Late This problem also takes many forms. Updates may be submitted late or they may not be submitted at all. Submittals may not comply with the contract or may not be accurate or complete. 39

41 The Solution Tying to Payment The most successful approach to ensuring that schedule updates are submitted timely is to tie submission to payment. 40

42 The Solution The Contract B.3 Update Schedule The Contractor shall update the last accepted schedule to create the Update Schedule. The Contractor shall update the Progress Schedule by incorporating actual start and finish dates and by reasonably estimating the remaining duration for each incomplete activity. The Contractor shall minimize the number of changes. The Contractor shall describe the reason for changes to the schedule in the Narrative Report submitted with the Update Schedule. 41

43 Solution The Contract CPM Progress Schedule Updates The RE will designate the data date to be used for each schedule update. Schedule progress review meetings to be held approximately 14 days before the schedule update due date Provide the RE with a report detailing actual start and actual finish dates of activities in progress during the previous 2 months Within 14 days from the date of the progress review meeting, submit the schedule update to the RE for approval with the agreed upon changes. Within 14 days, the RE will review the update schedule and approve or reject the submission. If rejected, revise and resubmit the schedule update, within 14 days, to the RE for review and approval Update and submit the subsequent schedule update even if the RE has not approved the previous schedule update. 42

44 Contractor Schedule Revisions This problem can have two faces: The contractor fails to submit a revised schedule when it changes its plan. The contractor fails to obtain approval of revisions to the schedule before revising the schedule. 43

45 Contractor Schedule Revisions Approval of revised schedules raises several concerns: Acceptance of delayed completion. Acceptance of responsibility for delay. Acceptance of approach to mitigating delay or lack of same. 44

46 The Solution A Practical Approach Don t let resolution of delay issues hold up the updating process. Don t let the resolution of delay issues prevent proper management of the project. Treat time the same way you treat money. Make sure the difference between what is scheduled and what is contractually required is clear. 45

47 The Solution A Practical Approach The key is to use the schedule to manage the project. It is not a contractual document. The completion date shown in the schedule is not the contract completion date. It is the scheduled completion date. Approval of the schedule does not modify the contract. It doesn t even constitute acceptance of the contractor s plan. 46

48 The Solution A Practical Approach The Department s acceptance of schedules will not relieve the Contractor of its obligation or responsibility to submit complete and accurate information. Failure to include any element of required Work in the Progress Schedule shall not relieve the Contractor from completing all Work necessary to meet the Milestones within the Contract Time. By accepting the schedule, the Department does not guaranty that the project can be performed or completed as scheduled. If the Contractor or the Department discovers errors after a schedule has been accepted, the Contractor shall correct the errors in the next schedule submission. The Department s acceptance of a schedule will not waive any Contract requirements. 47

49 The Solution A Practical Approach The classic approach to using the schedule to evaluate delays is to prepare a fragnet modeling the delay and then inserting this fragnet into the appropriate schedule. The delay to the scheduled completion date is the difference between the scheduled completion date before the fragnet is inserted and after the fragnet is inserted. 48

50 Contractor Schedule Revisions This is called a Time Impact Analysis. 49

51 The Solution A Practical Approach The problems with TIAs: Owner must agree to the logic and duration of the TIA. TIA process lags the delay itself. Using a model to analyze what is already known. 50

52 The Solution A Practical Approach (5) The Contractor s evaluations and calculations shall comply with the following Recommended Practices published by the Association for the Advancement of Cost Engineering, International: (5.1) Recommended Practice No. 52R-06, Time Impact Analysis As Applied in Construction. The Contractor shall use this Recommended Practice for delays that are in the future (prospective). The Contractor shall not use this recommended practice to evaluate delays that have already occurred (retrospective). (5.2) Recommended Practice No. 29R-03, Forensic Schedule Analysis, MIP 3.4 Observational/ Dynamic/Contemporaneous Split approach. The Contractor shall use MIP 3.4 when evaluating delays that have already occurred. 51

53 For More Information Please contact Scott Lowe at: 1617 JOHN F. KENNEDY BLVD. SUITE 475 PHILADELPHIA, PA Phone: (215) Fax: (215)

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