Advancements in Construction Project Administration Session: 41 October 28, 2014

Transcription

1 Advancements in Construction Project Administration Session: 41 October 28, 2014 Room: C :00PM 3:45PM Claims ance, Mitigation and Resolution Take Advantage of New Tools Presented by: Andrew Morse, PSP Brian Goodreau, PSP Moderator: Chris Engle Introduction to ARCADIS BUILDINGS Global Company 6,200 Employees in United States ENVIRONMENTAL INFRASTRUCTURE WATER Experience 30+ years providing construction claims services 3 1

2 On-call Claims Transportation Clients 4 Introduction Brian Goodreau Experience at ARCADIS 5 Years at ARCADIS - Scheduling projects to $500 million - Claims avoidance, mitigation and resolution BS Construction Management Planning and Scheduling Professional (PSP) - Association for the Advancement of Cost Engineering International (AACEI) Associate Constructor (AC) - American Institute For Constructors (AIC) Introduction Andrew Morse Experience at ARCADIS Over 3 years at ARCADIS 10 plus years of industry experience Successfully managed complex construction schedules on projects ranging from $2 million to well over $1 billion Planning and Scheduling Professional (PSP) - Association for the Advancement of Cost Engineering International (AACEI) Associate Constructor (AC) - American Institute For Constructors (AIC) 2

3 Dispute Management Notice to Proceed Project Completion 7 Dispute Management Document management Schedule development Cost controls Risk management Value engineering 8 Document Management Systems Choose the right system User training Enforce the rules 9 3

4 Document Management Systems Key Features: Project bookshelf Process workflows Monitor ball in court Financial and schedule data 10 Schedule Development Select software Establish milestones Develop specifications Baseline schedule review Basic Software Packages Advanced Software Packages Primavera SureTrak Project Manager Primavera P3 Microsoft Project Primavera P6 Features Low initial cost High initial cost Limited project capacity Handles small to extremely large projects Single user Enterprise management Limited analytics Cost / resource / risk analysis 11 Schedule Development Why do contractors schedule? TO USE AS A TOOL TO BUILD THE JOB To provide answers to: What are you obligated to do? What are others obligated to do? What are you building? Document the as built condition Demonstrate cause/effect 12 4

5 Schedule Development Why do owners schedule? Understand the contractor s plan Decision making tool Performance measurement Baseline to measure delays Reconcile hindsight and blind sight 13 Schedule Development Understand the critical path! Critical Path. The series of activities that determines the duration of the project it is the longest path through the project. 14 Why Schedule? 15 5

6 Cost Management 16 Choose the right system User training Enforce the rules Cost Management 17 Cost Management Most overlooked aspect of claims Contractors have sophisticated systems Owners lag behind To equitably and quickly resolve claims, systems must roll up and be able to accurately capture key data beyond quantities: Labor and equipment usage 18 6

7 Risk Management Select software Identify risks/stakeholders Hold risk workshops Establish contingencies Crystal Ball Active Risk Manager (ARM) Acumen Risk Full Monte Polaris Predict Primavera Risk Analysis (Pertmaster) Proteus RiskyProject Company Palisade Oracle Sword Active Risk Acumen Barbecana Booz Allen Hamilton Risk Decisions Oracle Safran North America Intaver Institute Risk: Uncertain event or condition that could affect a project objective 19 Typical Risks: Design errors/changes Schedule Quality Risk Management Safety Political Existing conditions Permitting Environmental concerns Funding Project delivery method Contractual Security End user satisfaction 20 Cumulative Distribution Function (CDF) for Schedule Risk Management Cumulative Distribution Function (CDF) for Cost Deterministic Schedule: 11/2/ % probability that project completed on 11/2/2015 P80 Schedule: 4/4/2016 Schedule Contingency: 154 Days Current Estimate: $ Million 8% probability that project will not exceed current estimate P80 Cost: $ Million Cost Contingency: $15.29 Million 21 7

8 Dispute Management Update schedule Monitor cost Good decisions 22 Schedule Maintenance Maintain Schedule Output & Deliverables Baseline Schedule Control Level Schedules Tracking Schedule Progress Variance & Trends Cost & Resource Management Schedule Analysis Acceleration Schedule Forecasts Schedule Maintenance & Feedback Constructability Review Progress Reports & Reviews Recovery Schedules Management Summary Progress Measurement Level of effort Physical progress Milestone achievement Activity start/finish Supervision judgment 23 The output from schedule review software can be voluminous and overwhelming and: Does not tell the whole story Cannot explain constructability Misrepresented as cause for delay Don t get behind with update review!! 24 8

9 Float Suppression Techniques: Activity durations Excessive/conservative durations Additional (unanticipated) activities Preferential logic Constraints Insertion of an artificial constraint Impacts float calculations Influences the longest/critical paths Concerns: Manipulates the critical path to flow through: Problem areas Work at a high risk of change Owner responsibilities Third party responsibilities False indication of what the contractor knows is actually happening Schedule recovery techniques are: Proactive, not reactive Premium time / multiple shifts Logic revisions (more aggressive) Stacking trades Resource leveling 27 9

10 Time Impact Analysis (TIA) traditional scenario: Erect Steel Delay Bridge A Erect Steel Bridge B Erect Steel Bridge C 28 Time Impact Analysis (TIA) with resource leveling: Erect Steel Bridge A Delay Erect Steel Bridge B Erect S Preferential logic does not exist Delays are mitigated Delays only occur when resources are over allocated 29 Monitor the Cost Keys to successful cost control: Consistent cost reporting Quality inspection reports Reconcile actual quantities Identify quantity overruns Monitor early warnings Timely pricing of change orders 30 10

11 Decisions To be used as an effective claims mitigation decision tool schedule and cost systems: Must be scalable to the project or program Must fit the skills of the user Must work together 31 Dispute Management Document review Schedule / financial analysis Litigation preparation 32 Resolution ance and Mitigation are the keys to successful resolution Technology will not help at this stage if it was not employed early Document management and trial presentation software can help you get ready for mediation, arbitration or trial 33 11

12 Document Review Wide range of vendors Compile documents Create issue coding Focus on key issues 34 Litigation Preparation Mutual understanding leads to resolution Technology helps present your side of the story Trial Director Office Timeline Plus 35 Resolution No magic contract clause No magic cost control or scheduling system No magic presentation technology Resolution prior to trial still hinges on the willingness of the parties to settle

13 Questions? Andrew Morse, AC, PSP Claims Analyst 213 Court Street Middletown, CT Brian Goodreau, PSP, ENV SP Claims Analyst 213 Court Street Middletown, CT (860) (860) December ARCADIS 13