BUSINESS OPERATIONS AND FACILITIES PROJECT DELIVERY MANUAL REVISION 0

Transcription

1 BUSINESS OPERATIONS AND FACILITIES PROJECT DELIVERY MANUAL REVISION 0 AUGUST 2014

2 Project Delivery Manual DOCUMENT CONTROL TABLE Date Revision Purpose of Issue Details May 2014 August 2014 A Draft for Review 0 Issued for Use Incorporates comments provided during review of draft. i PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

3 Table of Contents Project Delivery Manual 1. BOF PROJECT MANAGEMENT UTMB PROJECT LIFE CYCLE OFPC PROJECT EXECUTION FACILITIES AND INFRASTRUCTURE STEERING COMMITTEE BOARD OF REGENTS MAJOR AND MINOR CONSTRUCTION AND REPAIR AND REHABILITITATION PROJECTS SPACE REQUEST PROCESS FLOW SPACE REQUEST ROLES AND RESPONSIBILITIES REQUIRED DOCUMENTATION FOR SPACE REQUEST PROJECT DEFINITION PROJECT DEFINITION PROCESS FLOW PROJECT DEFINITION ROLES AND RESPONSIBILITIES REQUIRED DOCUMENTATION FOR PROJECT DEFINITION PHASE KEY ELEMENTS OF PROJECT DEFINITION PHASE PROJECT INITIATION PROJECT INITIATION PROCESS FLOW PROJECT INITIATION ROLES AND RESPONSIBILITIES REQUIRED DOCUMENTATION FOR PROJECT INITIATION PHASE KEY ELEMENTS OF PROJECT INITIATION PHASE PROJECT EXECUTION DESIGN PHASE DESIGN PHASE PROCESS FLOW DESIGN PHASE PROCUREMENTS DESIGN PHASE EXECUTION DESIGN PHASE ROLES AND RESPONSIBILITIES REQUIRED DOCUMENTATION DURING THE DESIGN PHASE KEY ELEMENTS OF THE DESIGN PHASE PROJECT EXECUTION - CONSTRUCTION PHASE CONSTRUCTION PROCUREMENT CONSTRUCTION EXECUTION CONSTRUCTION CONTRACT ADMINISTRATION CONSTRUCTION PHASE ROLES AND RESPONSIBILITIES REQUIRED DOCUMENTATION DURING THE CONSTRUCTION PHASE KEY ELEMENTS OF THE CONSTRUCTION PHASE CHANGE CONTROL MANAGEMENT CHANGE CONTROL OVERVIEW CHANGE ORDER PROCESS CHANGE MANAGEMENT ROLES AND RESPONSIBILITIES REQUIRED DOCUMENTATION KEY ELEMENTS OF CHANGE MANAGEMENT PROJECT CLOSEOUT SUBSTANTIAL COMPLETION/FINAL COMPLETION/CLOSEOUT ii PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

4 Project Delivery Manual 8.2 DOCUMENT RETENTION AND ARCHIVING FINAL CUSTOMER ASSESSMENT (TBD) CLOSEOUT PHASE ROLES AND RESPONSIBILITIES REQUIRED DOCUMENTATION FOR CLOSEOUT PHASE PROJECT ORGANIZATION DOCUMENT CONTROL CUSTOMER/STAKEHOLDER MANAGEMENT PROJECT KICK-OFF AND GOAL ALIGNMENT PROJECT REPORTING PROJECT REVIEWS CUSTOMER STATUS REPORTS PROJECT FINANCES ESTABLISHMENT OF PROJECT NUMBER(S) PAYMENT PROCESS PROJECT STATUS UPDATES PEOPLESOFT PROJECT COST (TBD) HEALTH, SAFETY, ENVIRONMENT ROLES AND RESPONSIBILITIES WORKING IN A HEALTHCARE ENVIRONMENT MANAGING CONTRACTOR HEALTH, SAFETY, AND ENVIRONMENT PROJECT SAFETY PLAN ACTIVITY HAZARD ANALYSIS INCIDENT AND NEAR MISS REPORTING RISK MANAGEMENT RISK MANAGEMENT PROCESS RISK ASSESSMENT QUALITY THE QUALITY MANAGEMENT SYSTEM (QMS) QUALITY PLAN, ACT, CHECK, EXCEL SCHEDULE DEVELOPMENT AND CONTROL APPROVAL OF BASELINE SCHEDULES SCHEDULE CONTROL SCHEDULE REPORTING BUDGET DEVELOPMENT AND CONTROL BUDGETING BASICS BUDGET DETAIL APPROVAL OF BASELINE BUDGET BUDGET REPORTING List of Appendices APPENDIX A FORMS A1 SAMPLE MASTER PROJECT MANAGEMENT CHECKLIST A2 SPACE REQUEST PHASE FORM A3 PROJECT DEFINITION PHASE FORMS iii PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

5 A4 PROJECT INITIATION PHASE FORMS A5 DESIGN PHASE FORMS A6 CONSTRUCTION PHASE FORMS A7 CHANGE MANAGEMENT FORMS A8 PROJECT CLOSEOUT PHASE FORMS A9 PURCHASING LINKS AND FORMS A10 MASTER FILE INDEX APPENDIX B SPACE STANDARDS AND FINISH GUIDELINES APPENDIX C CHANGE CONTROL MANAGEMENT APPENDIX D PROJECT CLOSEOUT PROCEDURE APPENDIX E HSE MANAGEMENT APPENDIX F RISK MANAGEMENT APPENDIX G QUALITY MANAGEMENT APPENDIX H SCHEDULE DEVELOPMENT AND REPORTING APPENDIX I BUDGET DEVELOPMENT AND CONTROL APPENDIX J PURCHASING AND ACCOUNTING CONTACT INFORMATION Project Delivery Manual iv PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

6 Project Delivery Manual A/E AHA AVP BOF BOR CCL CD CFS CM CMR CO CP CPM CSB CSP D&C DD EAJ EHS EVP FISC FO FPM HUB HSP ICRA IDIQ ILSM IM IT JCAHO JOC MEP M&TE NFPA NTP OFCI OFPC OM OSHA PAR PM PO PSP PSR QA QC QMS List of Acronyms Architect/Engineer Activity Hazard Analysis Assistant Vice President Business Operations and Facilities Board of Regents Construction Cost Limitation Construction Document Chart Field String Construction Manager Construction Manager at Risk Change Order Change Proposal Critical Path Method Competitive Sealed Bid Competitive Sealed Proposal Design and Construction Design Development Exclusive Acquisition Justification Environment, Health, Safety Executive Vice President Facilities and Infrastructure Steering Committee Field Order Facilities and Portfolio Management Historically Underutilized Business HUB Subcontracting Plan Infection Control Risk Assessment Indefinite Delivery Indefinite Quantity Interim Life Safety Measures Interiors Manager Information Technology Joint Commission on the Accreditation of Healthcare Organizations Job Order Contract Mechanical, Electrical and Plumbing Measuring and Test Equipment National Fire Protection Association Notice to Proceed Owner Furnished Contractor Installed Office of Facilities Planning and Construction Order of Magnitude Occupational Safety and Health Administration Progress Assessment Report Project Manager Purchase Order Project Safety Plan Project Status Report Quality Assurance Quality Control Quality Management System v PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

7 RFP RFP RFQ ROM SD SF TC UTMB VP Request for Proposal (IDIQ Contracts) Request for Pricing (Construction) Request for Qualifications Rough Order Magnitude Schematic Design Square Foot/feet Team Coordinator University of Texas Medical Branch Vice President Project Delivery Manual vi PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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9 Project Delivery Manual 1. BOF PROJECT MANAGEMENT 1.1 UTMB Project Life Cycle The Business Operations and Facilities (BOF) office on the University of Texas Medical Branch (UTMB) campus is responsible to execute captial projects. This guidebook details the processes used by the BOF project teams during project execution. Projects at UTMB are comprised of many different types of projects including those for research and grants, infrastructure upgrades, information technology (IT) installation and/or upgrades, design-build for new facilities, etc. Projects vary in budget and schedule. Each project is funded by different sources. Despite the variety of these factors, all projects do go through a project life cycle. The project life cycle for projects is comprised of the following stages and is depicted in the figure below: Space Request Project Definition Project Initiation Design Construction Closeout Upon completion of each phase, there is a stage gate process which is the approval process required to move forward, as needed for the project, or to closeout the project as completed to that point. Figure 1.1: Project Life Cycle Space Request Project Definition Project Initiation Design Construction Bid/ Procurement Construction Execution Closeout Project Idea Approved Customer Funding Identified FISC Approval & Customer Agreement Constr. Documents Contract Substantial Completion The process sections of this manual are generally detailed with the following information: Overview of process for the phase describes required steps to complete during phase. Roles and responsibilities of the phase describes the people responsible to complete actions during the phase. Required documentation for the phase describes the project documents needed during phase for approval to proceed. Procurement requirements for the phase, as applicable describes the procurement options available during a phase. PM tools applicable to phase describes the PM tools to be utilized during the phase to ensure consistency for all projects. The Project Management Process Checklist should be used as a master checklist for all non- OFPC projects. Figure 1.2 provides a sample of the checklist. See Appendix A1 for the complete checklist document. 1 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

10 Figure 1.2: Sample Project Management Process Checklist Project Name: Proposed Location/Building: Project Delivery Manual PROJECT MANAGEMENT PROCESS CHECKLIST MASTER STEP AND PROCESS GUIDE locally managed projects (NON OFPC) SPACE REQUEST. This is the initial request for space changes or new space on the campus. It may come as a Space Request through Portfolio Management or a work order through In House Construction. The space request requires approval by Portfolio Management. A planner is assigned to track the request through to approval. Item Tasks Init. Of Lead Task Notes i. Space Request approved for analysis by Portfolio Management FPM 1.01 Meeting with customer and recommended space plan FPM 1.02 Customer's desired occupancy date determined FPM 1.03 Preliminary scope capture: changes in space, relocations, added space FPM ii. If requested, ground floor, change in space between EVPs approved by the Facilities & Infrastructure Steering Cmte. FPM this is for use only - no project data yet iii Portfolio Management planner evaluates and recommends solution FPM iv. Funding for such studies needs to be identified by department. If needed Portfolio Management hires architect for preliminary study on certain projects. >$10,000 needs FISC approval. FPM/D&C v. FYI. to D&C and review of the study and ROM cost. FPM/D&C vi. Based on the study or in house evaluation the recommendation is made. FPM vii. Space Request approved for action by AVP Port. Mgmnt. And VP IT FPM 1.0 FirstStage: PROJECT DEFINITION. May be a formal architectural program, study, or a less formal product based on a customer meeting. Planning has met with customer to ascertain space needs and purpose of project. Projects may be in existing or occupied spaces, or repurpose or reopen vacated spaces; may require new lease space; or, major capital construction. Portfolio management is responsible for the development of the needs and should explore business plans and funding capability, especially for studies or a formal engineering evaluation of the space. Task notes: A project manager is assigned to complete this stage and IN COLLABORATION with the planner(s), adds detail to the program requirements. This includes developing a realistic and comprehensive baseline budget and baseline schedule Tasks Init. Of Lead Task Notes 1.04 Approved space request and/or project requirement received by D&C FPM 1.05 Assign Project Manager or Construction Mgr. as required D&C 1.06 D&C confirms and provides ROM project cost (budget) on experience or SF basis D&C 1.07 Customer's funding based on Total Project Cost ROM identified D&C PM or CM hires an architecture firm to get SD-CD plans for budgeting. D&C 1.08 If LEASEHOLD: FPM- Real Estate goes through a checklist of requirements from D&C, so their concerns are addressed in lease terms FPM/D&C Portfolio Management manages the lease negotiation If leasehold, FPM- Real Estate collaborates with D&C PM. PM recommends delivery, design or construction comments as needed. FPM/D&C Lease is executed. FPM Once lease is executed the project is managed by D&C as any other construction project. FPM will be involved in programming and D&C PM will lead the SD, DD, CD and CM for the project. D&C Details for each project phase are described in Sections 2 8 of this manual. Appendix A presents samples of the project documents used during each project phase. Sections 9 15 and their corresponding appendices describe the various best practices that should be implemented on a project at some point (or multiple points) throughout a project s life cycle. 1.2 OFPC Project Execution Projects with budget greater than $4M (Major Project) are required to be managed by the Office of Facilities Planning and Construction (OFPC). OFPC is a state-level entity that assigns a project manager and team to a project meeting the OFPC project value limit. In doing so, OFPC also charges a management fee to the project. For projects that become OFPC-managed projects, UTMB will assign a local project manager to interface with OFPC to ensure they are meeting the customer s needs and requirements. Being a state-level unit, the OFPC assigned project manager may or may not know the UTMB campus or customers as well as a local UTMB project manager does. Having the local UTMB project 2 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

11 Project Delivery Manual manager liaise with the OFPC project team ensures that the project work will be executed per campus standards. The UTMB project manager executes multiple functions on an OFPC-managed project including: Project Manager (PM) Interface and Oversight to ensure OFPC PM is executing work according to the customer s needs/requirements (budget, schedule, safety, risk, etc.) Communications Liaison to ensure OFPC is making the correct connections and communications with all the various departments affected by the project (including various department heads, mechanical team, safety team, finance and accounting team, purchasing team, etc.) Quality Assurance to ensure OFPC executes the project according to all local, state, federal regulations as well as project management plan. 1.3 Facilities and Infrastructure Steering Committee The Facilities and Infrastructure Steering Committee (FISC) is a committee comprised of a chairman, seven (7) members, and ten (10) staff to committee. The FISC meets monthly on the first Thursday of each month to review and approve various agenda items including real estate (leaseholds and purchases), capital plans, facilities readiness, project updates, and new project approvals. Projects ideas with first floor use are required to obtain FISC approval prior to further development for final project approval. Additionally, any project idea over $10,000 must have FISC approval before moving forward. The initial project approval is obtained once the Facilities and Portfolio Management (FPM) department obtains a Space Request Form from a requestor. The FPM Executive Vice President (EVP) will submit the project idea at the upcoming FISC meeting to obtain the FISC approval. Upon further development of the project scope, budget, and schedule (during the Project Definition and Project Initiation Phases), the PM will ultimately submit a project description FISC approval slide which will be used at the monthly FISC meeting to obtain the final FISC approval on the project (over $10K in value). If the project is approved by FISC, then the PM will use the FISC approval (meeting minutes) as part of the documentation package that is routed for final capital commitment approval (as described in the Project Initiation Phase). Once a project has started, any change to budget in excess of $10,000 must go through FISC approval before any change order (in Design or Construction Phase) can be approved and processed by the PM. NOTE: All documentation for FISC approval must be submitted two weeks prior to the FISC monthly meeting. 1.4 Board of Regents Capital projects over $4 million must be approved by the UTMB FISC and the Board of Regents (BOR). Additionally, each project which includes new construction is reviewed and approved by the BOR prior to the start of construction with a final report submitted after completion of construction. Renovation projects are reviewed by the BOR with a final report submitted after completion of construction. Renovation projects that alter the site or major exterior elements will follow the process for new construction. 3 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

12 Project Delivery Manual The Board of Regents meets only four times per calendar year. All materials are previewed by the Executive Committee one to two months prior to the BOR meeting. 1.5 Major and Minor Construction and Repair and Rehabilititation Projects Major Project A Major Project is defined as any project that meets one or more of the following criteria: 1) New building construction with a value of $4 million or more, 2) Road, paving, and repair and rehabilitation projects with a value of $4 million or more, 3) Any project determined by the Board to be architecturally or historically significant, 4) Any project that is debt financed [(Revenue Financing System (RFS), Tuition Revenue Bond (TRB), Permanent University Fund (PUF)] regardless of the dollar value except those projects appropriated through the Library, Equipment, Repair and Rehabilitation (LERR) budget, and 5) Any campus planning efforts that are intended to result in a capital project meeting one or more of these criteria. (BoR Rule ) Major Construction and Repair and Rehabilitation Projects shall follow the Rules and Regulations of the Board of Regents, Rule Minor Project A Minor Project is defined as new building construction and road, paving, and repair and rehabilitation projects with a total project cost of less than $4 million that are not funded in any part with debt. (BoR Rule ) If the Minor Project is to accommodate facility program changes requiring System approval or approval of the Texas Higher Education Coordinating Board, then (i) necessary facility program approvals must be secured in advance of requests for construction approval; (ii) funds must have been approved through standard System budgetary procedures; and (iii) the project must have been approved by the VP of BOF, chief business officer, and president. (BoR Rule Sec. 2) The Rules and Regulations do not contemplate and do not authorize any Minor Project to exceed these limitations for any reason at any time during the progress of the Project (e.g. because of change orders, added scope or additional costs). Projects that reasonably could exceed these limitations should be considered Major Projects, be included on the U.T. System Capital Improvement Program and institutional management of the Project must be approved by the Board of Regents or the Chancellor. (Ref. UT System OGC Construction Contracting Guidelines Revised November 2011; I. A. 2.) 4 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

13 2. SPACE REQUEST Project Delivery Manual 2.1 Process Flow The Space Request is the initial request for space changes or new space within the UTMB campus. The project idea can be generated by anyone or any group within the UTMB entity. The person or group submitting the request that describes the space need is known as the Customer. A project idea is born when the Customer submits the Space Request Form to FPM team. The following list identifies the Space Request Phase requirements that must be completed prior to progressing into the Project Definition Phase. 1) FPM receives and processes Space Request submittals. 2) Obtain approval by the FISC for any first floor use or project estimates in excess of $10K. 3) FPM Planner evaluates and recommends solution. 4) Obtain approvals on Space Request Form from Assistant Vice President (AVP) Portfolio Management and Vice President (VP) Information Technology. Ultimately, the project idea will be routed through BOF as a design and construction project or through the in-house construction team to execute. The following process flow will be used to identify if a project idea, as submitted on the Space Request Form, will become a BOF project or an in-house project. Figure 2.1 Space Request Process Flow Space Request Form submitted by Customer (Requestor) No First Floor Use and/ or above $10K? Yes FISC Approval No Return Space Request Form to Requestor FPM Planner recommends solution Yes Obtain required Space Request Form signature approvals Design & Constr. Project? No Proceed with Work Order for In House completion. Yes Start Project Definition 5 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

14 Project Delivery Manual 2.2 Space Request Roles and Responsibilities During the Space Request Phase, the following roles will be involved. Facilities and Portfolio Management should ensure that these key roles are engaged during this phase so that the various parties can provide scope, budget, and schedule input for projects, as needed. ROLE Customer Facilities and Portfolio Management (FPM) FPM Planner Facilities and Infrastructure Steering Committee (FISC) Executive Vice President (EVP), Portfolio Management Vice President (VP), Information Technology (IT) RESPONSIBILITY Person, department, or entity who submits a project idea. Responsible to submit the Space Request Form to initiate the project process. Communicates with FPM to ensure documented scope is as expected. Entity responsible to commence Programming Phase once Space Request Form and/or project idea has been submitted by Customer. Person within FPM entity who interfaces with the Customer to identify recommended solutions to the submitted space request. Note: Planner should check deferred maintenance log at the onset of the planning to determine if there are any maintenance issues that could/should be included in the space request. Entity responsible to provide initial feedback on project idea and approve Space Request Forms that have any first floor use or estimated project value in excess of $10K. Provides final approval on the Space Request Form. Provides approval on Space Request Form. 2.3 Required Documentation for Space Request The Space Request Form is the only document generated during the Space Request phase. The FPM department is responsible to ensure it is complete and approved prior to distribution. FPM will distribute the approved Space Request Form to BOF management to determine if the project will cycle through as a design and construction job or if it will be routed to the in house construction department. Appendix A2 provides a sample of the Space Request Form. 6 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

15 Project Delivery Manual 3. PROJECT DEFINITION During the Project Definition Phase, a Project Manager (PM) and Construction Manager (CM) are assigned to project planning work in collaboration with the FPM Planner to further refine the scope, budget, and schedule for a project. The Project Definition Phase adds detail to the project requirements including a realistic and comprehensive budget and schedule. The PM will assure alignment with Customer expectations during this phase. 3.1 Project Definition Process Flow During this phase, the required activities are completed as a collaborative effort between the FPM team and the PM/CM. In order to complete the base Align scope, budget, and requirements for this phase, the PM and FPM Planner schedule with Customer should meet with the Customer (and/or other key expectations. stakeholders) as often as necessary, to produce detailed scope, budget, and schedule documents that will be used in obtaining FISC approval. The following flow chart presents the Project Definition process. Figure 3.1 Project Definition Process Flow The steps identified in this process flow are and also as identified on the Project Management Process Checklist are as follows: 1) The PM, CM, and Interiors Manager (IM) assigned to work with FPM planner to further develop scope, budget, and schedule. 2) FPM Planner and PM/CM/IM meet with Customer to: a. Determine Customer s desired occupancy date. b. Capture preliminary scope which includes changes in space, relocations, added space. 3) Design and Construction (D&C) develops Rough Order Magnitude (ROM) budget based on experience or square foot (SF) basis. 4) Provide ROM budget to Customer for funding identification purposes. 5) Identify if the space is a leasehold. 7 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

16 If a renovation project involves temporary relocation of employees in order for construction work to be completed, the PM and FPM Planner should develop a move plan for the project during the Project Definition phase. Project Delivery Manual a. If leasehold, FPM to provide draft lease to D&C for review of delivery, design, and construction business terms and conditions. b. The Director of Real Estate will provide coordination with the landlord and Customer. NOTE: Although not listed as a required activity for this phase, the PM and FPM Planner should develop a tentative move plan for a space request form that indicates existing used space will be renovated. Pre-planning the move during this phase ensures that the PM, Customer, and key stakeholder departments are aligned with identified swing space needs. Move coordination efforts are further detailed in Section 6, Construction Execution. 3.2 Project Definition Roles and Responsibilities During the Project Definition Phase, the following roles will be involved. The PM should ensure that these key roles are engaged during the Project Definition Phase so that the refined scope, budget, and schedule accurately reflect requirements from the various UTMB departments as well as the final Customer needs. ROLE Customer Stakeholder Environment, Health & Safety (EHS) Department Property Services Facilities and Portfolio Management (FPM) FPM Planner RESPONSIBILITY Person, department, or entity who submitted the project request. The Customer is generally also the end user of the finished project. The Customer is the point of contact for the FPM and PM for the project. Any person, department, or entity that will be involved with or be affected by any activity during project execution. The Customer is also a Stakeholder. See description in Section 3.4 and Section 9.2 for additional information on common stakeholders. Common stakeholder the FPM Planner and PM should engage with to determine any EHS items that could impact project so that ROM accounts for those issues, as needed. Common stakeholder the FPM Planner and PM should engage with to determine any Property Services items that could impact project so that ROM accounts for those issues, as needed. Entity responsible to provide all documentation, generated to date, to the assigned Project Manager. FPM continues to collaborate with the PM through the Project Definition Phase. Person within FPM entity who works with the PM to transition project to the BOF team. The Planner works with the PM during this phase to generate a project move plan, as 8 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

17 Project Delivery Manual ROLE Project Manager (PM) Interiors Manager (IM) Program Director, Design & Construction Design & Construction (D&C) RESPONSIBILITY needed. Person assigned from BOF team who will lead the project through to closeout. The PM is responsible to further define the scope, budget, and schedule of a project that ultimately becomes the final documents for the Customer Agreement. The PM should communicate with the Customre and stakeholders early and often to ensure scope, budget, and schedule are adequately defined. Note: As required by scope, the PM should collaborate with Planner to confirm a move plan is developed. Person assigned to project to ensure scope, budget, and schedule includes furniture requirements and standards, as needed. Review incoming space request project documents and confer with AVP to assign PM to project. First line reviewer and approver of project approval documents. Internal entity who should provide ROM estimates for design and construction activities associated for a project identified by the Space Request Form. 3.3 Required Documentation for Project Definition Phase During the Project Definition Phase, the scope detail and budget information are refined. The ROM budget is the outcome of this process. Appendix A3 provides a sample of a ROM budget. 3.4 Key Elements of Project Definition Phase Stakeholder Identification and Management At this point, in the Project Definition Phase, the PM should be assembling the list of standing DELIVERY stakeholders, by name, and be Successful DELIVERY includes scheduling a preliminary scope meeting with engaging the Customer and stakeholders early. them. The purpose of the meeting is to enlist and alert the campus staff for a successful project delivery. Standing DELIVERY stakeholders participate in writing specifications, setting schedules, and assisting with monitoring progress of design and construction. DELIVERY stakeholders are also Customers! They depend on the project delivery by the PM to meet their needs, as they will eventually be operating the newly created spaces. Each project should include prior dialogue with the following campus departments for all projects: Environmental Health & Safety may include radiation and chemical safety. Property Services maintenance manager affected by the project. 9 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

18 Project Delivery Manual Utilities power, water, gas, HVAC, and related exterior services. Information Technology all communications and datat systems from PCs to fiber-optic transmission. Purchasing Professional Service Proposals (Indefinite Delivery Indefinite Quantity [IDIQ], Request For Qualifications [RFQ], Direct Appointment) and Agreements, Construction delivery methods (Job Order Contract [JOC], Mechanical, Electrical, Plumbing [MEP] Single Trade, Competitive Sealed Proposal [CSP], etc.) and Agreements (procedural impacts). PM Finance funding and finance interface (procedural impacts). UT Police badging, locks, contractor access, site security, traffic control. See Section 9 for additional information regarding stakeholder management Risk Management It is suggested, during the Project Definition Phase, that the FPM Planner and the PM complete an initial risk assessment for the project to identify key risks that could pose severe or significant risks to the scope, budget, or schedule of the project (see Section 12). The Project Risk Assessment should be conducted prior to final scope, budget, and schedule development to ensure high risk issues are incorporated into those documents prior to the start of the project. The Project Risk Assessment is located on the shared drive/forms folder. A copy is supplied in Appendix F of this manual Scope, Budget, and Schedule During the Project Definition Phase, the PM is directly involved with the refinement of the scope, budget, and schedule. Utilizing the tools describing development of the scope, budget, and schedule (see Sections 14 and 15), the PM can ensure the baseline information meets the Customer requirements and approvals are obtained efficiently. 10 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

19 4. PROJECT INITIATION Project Delivery Manual 4.1 Project Initiation Process Flow Project Initiation is a multi-step process. During the first stage, the PM aligns the budget and schedule with the Customer s scope expectations. The PM engages design and construction (D&C) team members to complete the final scope, budget, and schedule which will feed into the FISC approval process. It is during this stage that the PM ensures the delivery stakeholders are engaged so that key items are addressed in the final scope, budget, and schedule documents. The second stage of the Project Initiation Phase commences once the final scope, budget, and schedule documents are approved by the Customer and subsequently FISC. Once the project is approved, the PM will establish the BOF and PeopleSoft project numbers. The following flow diagram presents the Project Initiation process. Figure 4.1 Project Initiation Process Flow ROM & Customer Funding Identified (Leasehold, too, as applicable) Inform Delivery Stakeholders on upcoming project Develop detailed construction and total project cost estimate Develop baseline delivery schedule Determine delivery method (JOC, bid, etc.) Draft FISC approval slide Schedule Customer Acceptance Meeting Customer Agreement (scope, budget, schedule) approved Finalize FISC approval slide Confirm project is on FISC agenda for approval FISC Meeting held. Project approved? Yes Project Initiation Form completed and submitted for BOF approval Capital Commitment document package routed for approvals Approved Capital Commitment document package submitted to Acct. PeopleSoft project number established No BOF Management to report status to PM PM enters budget detail into BOF database Begin Design Phase The steps identified to complete the Project Initiation Phase are as identified on the Project Management Process Checklist. The following activities generally are completed during this Phase: 1) Inform delivery stakeholders of planned project scope, budget, schedule. 11 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

20 Project Delivery Manual 2) Complete detailed construction and total project cost estimates. 3) Complete baseline delivery schedule. 4) Determine construction delivery method (JOC, CSP, Competitive Sealed Bid [CSB], etc.). 5) Draft the FISC approval slide. a. This may be used as an introduction of the project at FISC as part of a two-step process. 6) Schedule a Customer Acceptance Meeting. 7) Customer meets and accepts project scope, budget, schedule. 8) Finalize FISC approval slide and confirm for upcoming FISC meeting. a. See Section 1.2 for information on the FISC approval process. Upon FISC approval of the project, the PM will then complete the following actions: 9) Complete and submit the Project Initiation Form (online) for BOF approvals. a. This is completed to generate a BOF project number. 10) Complete and submit the Capital Commitment document package for all approvals. Document package includes: a. Routing and Transmittal Slip b. Project description letter and/or signed Customer Agreement c. Capital Commitment Form d. Project Summary Report e. FISC approval slide f. Copy of FISC meeting minutes highlighting approved project 11) Submit final signed Capital Commitment document package to accounting for entry into PeopleSoft. Once the BOF and PeopleSoft project numbers are established, the PM can commence the Design Phase. 4.2 Project Initiation Roles and Responsibilities During the Project Initiation Phase, the following roles will be involved. Ensure document packages are properly completed and compiled before submitting for review/approval. ROLE Customer Facilities and Portfolio Management (FPM) Facilities and Infrastructure Steering Committee (FISC) RESPONSIBILITY Person, department, or entity who submitted the project request. The Customer is generally also the end user of the finished project. The Customer is the point of contact for the PM for the project. The Customer signs the Customer Agreement which confirms their approval of the final scope, budget, schedule of the project. Entity working with PM to collaborate on project through the programming, definition, and initiation phases. During Project Initiation Phase, the FPM works with, but does not lead, the project effort. Entity responsible to approve final project scope, budget, schedule, and funding source. 12 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

21 Project Delivery Manual ROLE Project Manager (PM) Stakeholder Team Coordinator (TC) Capital Accounting RESPONSIBILITY FISC approval is documented via the meeting minutes from the monthly FISC meeting. Person assigned from BOF team who is responsible to execute the project scope on budget and schedule. From project initiation through project closeout, the PM is responsible for all project reporting as well. The PM is responsible to complete the following activities during the Project Initiation Phase: Compile the project funding documentation package and submit for approvals and final processing by accounting. Schedule, lead, conduct project related meetings and compile and distribute minutes for meetings. Generate and compile final scope, budget, and schedule documents for Customer Agreement and FISC approval. Generate and compile Capital Commitment document package and submit for review/approval and processing. Enter approved budget information into BOF database. Any person, department, or entity that will be involved with or be affected by any activity during project execution. The Customer is also a Stakeholder. Stakeholders should be engaged prior to development of the final scope, budget, and schedule so that pertinent activities and issues related to their department(s) can be included in the project. A Team Coordinator is assigned to a project upon project initiation. The TC supports the PM with submittal of the final Capital Commitment document package. The TC is responsible to generate the hard copy project files upon notice from BOF Finance that the project is open and distribute the files to the various project team members. Department responsible to enter the Capital Commitment funding information into PeopleSoft in order to obtain the Chart Field String (funding lines) for a project. 4.3 Required Documentation for Project Initiation Phase The following documents are required during the Project Initiation Phase. Final Scope Development o Construction and Project Cost Estimates o Baseline Schedule o FISC Project Description (approval slide) draft and final o Customer Acceptance (including funding validation) - TBD Establishment of Project Number(s) 13 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

22 Project Delivery Manual o Project Initiation Form (online entry) o Capital Commitment document package Routing and Transmittal Slip Copy of FISC Approval Meeting Minutes Project Description Letter or FISC project slide Project Summary Report Capital Commitment Form Customer/Stakeholder Meetings o Agenda o Meeting Minutes Samples of the required forms are supplied in Appendix A4. The electronic template forms for BOF generated documents are located on the BOF shared drive in the Forms folder. File path S:\\Design-Const-Forms\PDP Forms 4.4 Key Elements of Project Initiation Phase Customer/Stakeholder Management During the Project Initiation Phase, the PM ensures that Customer(s) and key stakeholders of the project are engaged throughout the remainder of the project (see Section 9). In some instances, the Customer may also be a key stakeholder during project execution. It is imperative that the PM understands the dynamics and engages the Customer/key Stakeholder at the different required limits based on project need Scope, Budget, and Schedule During the Project Initiation Phase, the PM submits the project scope, budget, and schedule in order to obtain both a BOF project number and the PeopleSoft Chart Field String (CFS) project number(s). The information as submitted during this phase becomes the baseline data. The PM should utilize tools described in Sections 9, 14 and 15 to ensure that project progress is accurately monitored and reported Quality Management During the Project Initiation Phase, the PM should ensure quality control has been conducted on all project development documents so that the final product provided to the Customer (and ultimately the FISC) will be accurate and sufficient to submit for approval. See Section 13 and Appendix G for Quality Control/Quality Assurance best practices Risk Management If not already conducted during the Project Definition Phase, the PM should ensure that a Project Risk Assessment is completed prior to submitting final documents for Customer Agreement and subsequent FISC approval. Conducting an initial risk assessment will help identify potential issues that could affect scope, budget, or schedule resulting in an adverse reaction later on in the project. See Section 12 and Appendix F for additional best practice information and tools for risk management Safety During development of the scope, budget, and schedule for project approval, the PM should ensure that all UTMB safety requirements are included in the baseline 14 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

23 Project Delivery Manual documents. From this phase forward, the PM needs to ensure that subsequent phases of work capture safety requirements in Architect/Engineer (A/E) supplied designs and that construction activities meet safety reporting requirements as well as correctly installed safety scope items. See Section 11 and Appendix E for best practices related to Safety. 15 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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25 5. PROJECT EXECUTION DESIGN PHASE Project Delivery Manual The Design Phase of a project consists of procuring an A/E for Professional Services and developing the design into construction documents. Utilizing a method as described in Section 5.2, the PM ensures that the A/E is contracted to complete the Design Phase of the project life cycle. 5.1 Design Phase Process Flow The Design Phase consists of five key steps, which fall into two stages. Procurement Stage 1) Procuring A/E Professional Services 2) Design Phase kick off with A/E and Stakeholders Design Execution 3) Schematic Design (SD) Review 4) Design Development (DD) Review 5) Construction Documents (CD) Review Procurement Stage Process The procurement stage process flow is shown in Figure 5.1. Figure 5.1 Design Procurement Process Flow Descriptions of the procurements available for the selection of an A/E firm are provided in Section 5.2. As noted on the process flow chart, and as itemized on the Project Management Process Checklist, the required activities to complete during the procurement stage are as follows: 1) PM selects an A/E and informs FPM Planner: a. IDIQ Select most qualified A/E from pool of contracted Firms and complete the purchasing Exclusive Acquisition Justification (EAJ) form. b. RFQ Submit a requisition for budgeted A/E Professional Services and work with Purchasing to develop an RFQ package for solicitation of A/E Firms. c. Direct Appointment Obtain appropriate approvals to directly appoint a qualified A/E Firm for the project. 2) For IDIQ and Direct Appointment - the PM solicits a proposal (Request for Proposal [RFP]) from A/E Firm including fees, hourly rates, estimated expenses and and design schedule. A Historically Underutilized Business (HUB) 17 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

26 Project Delivery Manual Subcontracting Plan (HSP) must be obtained and approved by the UTMB HUB Coordinator for projects where fees exceed $85K. 3) PM works with Team Coordinator to enter requisition, ensure funding, and confirm Purchasing has issued a Purchase Order (PO) Design Execution Process Design execution is comprised of the project kickoff, various design package development (schematic design, design development), design reviews, and development of a final construction document package for use in procurement in the Construction Phase. The design execution stage flows as shown in Figure 5.2. Figure 5.2 Design Execution Process Flow Details on the project kickoff and subsequent design reviews are provided in Section 5.3. Required activities for design execution, as noted on the Project Management Process Checklist, include the following: 1) PM holds kickoff meeting with Customer and A/E team to set the design schedule, including Customer reviews and approval milestones, consistent with delivery schedule. 2) PM and Planner work with IM on standard finishes (including carpet, paint, furniture, and window treatments) using design guidelines and campus standards. See Appendix B for additional information on UTMB space standards and finish guidelines. 3) PM and Planner meet with IM and Wayfinding Manager to integrate wayfinding and signage into design based or campus standards and design guidelines. 18 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

27 Project Delivery Manual 4) PM alerts Purchasing of pending construction project (JOC, CSP, CSB, etc.) and provides tentative schedule and expected dates for pricing by JOC or bid and award schedule. 5) PM and Planner schedule and conduct the 95% SD review of Leasehold or Buildto-Suit projects for Site Utilization and business plan and lease conformity with VP, BOF. 6) PM and Planner schedule and conduct 95% SD review of Site Utilization of green space projects for master plan conformity with VP, BOF and A/VP Portfolio Management 7) PM and Planner schedule and conduct 95% DD review with VP BOF for approval of DD prior to distribution of review meeting notice. Ensure program and DD are in synch and that project costs are in line with project budget. 8) PM forecasts all 95% design reviews (SD, CD, and DD) and posts notices through Program Director, Construction to Monday Planning Forum calendar. a. Ensure drawings are distributed TWO WEEKS in advance of the review. b. Distribution as noted on the design review meeting notice form. 9) PM ensures all DD product is physically signed off by Customer executive or empowered project representative prior to proceeding to CD. a. Includes documentation of Customer changes or concerns with document and path forward. 10) PM supervises development of the CD through the 95% review. a. CM is appointed and engaged at this point or sooner (preferably at start of Design phase). 11) PM/CM schedule and conduct the 95% CD review and meet with Purchasing to review front end solicitation documents and procurement schedule. 12) PM ensures that TDLR is copied on bid drawing distribution by the A/E team for reviews. Tracks responses. 5.2 Design Phase Procurements The PM needs to work with the procurement department in order to get an A/E Firm under contract for a project. The PM should ensure that the correct procurement forms are used and the correct Texas Procurement Law requires selections for professional services to be based on qualifications. Fees are negotiated after appointment and may not result from a competitive bid process. procurement processes are followed for all A/E and subsequent construction procurements. The procurement options during the Design Phase include: Indefinite Definition, Indefinite Quantity (IDIQ) - Professional Services Study Project (Non-CCL) or Construction Cost Limitation (CCL) UTMB has established IDIQ Professional Services Agreements with qualified A/E Firms for services to be utilized as needed for Minor Projects, unless otherwise approved. The IDIQ Agreements have been executed for Architectural Professional Services in the categories of Administrative, Academic & Classroom, Clinics, Hospital, Programming and Research; and Engineering Professional Services in the disciplines of Civil, Energy, Life Safety, MEP, and Structural. A/E IDIQ Agreements may not exceed $1 million dollars during the term of the Agreement or any renew/extension thereof. When reviewing the qualifications of the IDIQ A/E Firms, the PM should be mindful of the 19 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

28 Project Delivery Manual remaining balance of the Agreement of the selected A/E. If this type of procurement is used, the PM issues a RFP for a Study Project (Non-CCL) or a Construction Cost Limitation (CCL) Fee Schedule for a CCL Project. The PM completes an EAJ for the A/E justification and PO Checklist, these along with other required documents are submitted to the TC for the issuance of a Purchase Requisition. This work will become part of the established Agreement and a PO will be issued against that Agreement to authorize work to begin. Required documents for Purchase Requisition: IDIQ Study Project (Non-CCL) o PO Checklist o EAJ Form for A/E justification o RFP Form (signed) o A/E Proposal o Revised A/E Proposal or Additional Services Proposal (Change Order) o HSP (over $85K) and UTMB HUB Coordinator s approval o Project Milestone Schedule, if applicable o Owner s Approval of Construction Documents, if applicable o Project Summary Report (budget sheet) IDIQ Construction Cost Limitation (CCL) o PO Checklist o EAJ Form for A/E justification o CCL Fee Schedule o Revised CCL Fee Schedule (Change Order) o HSP (over $85K) and UTMB HUB Coordinator s approval o Project Milestone Schedule, if applicable o Owner s Approval of Construction Documents, if applicable o Project Summary Report (budget sheet) Appendix A9 contains the Purchasing Links and Forms Request for Qualifications (RFQ) Request for Qualifications (RFQ) The RFQ process is required for Professional Service Agreements when the IDIQ Agreements are not utilized. For these procurements, the PM must develop a scope of work, submit a purchase requisition for the A/E budget and work with Purchasing to prepare a RFQ for the solicitation of qualified A/Es. Upon completion of the RFQ process and its subsequent Respondent evaluation, the most qualified A/E shall submit a proposal to UTMB. An Agreement for the A/E services will be executed upon successful negotiation of a fair and reasonable price. Required documents for Purchase Requisition: RFQ (Solicitation for Professional Services) o Requisition for the budgeted amount required to begin RFQ process o Copy of budget sheets and other BOF approval documents Appendix A9 contains the Purchasing Links and Forms. 20 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

29 Project Delivery Manual Request for Proposal (RFP) Request for Proposal (RFP) Form used to obtain IDIQ Study (non-ccl) and CCL proposals Direct Appointment for Professional Services In certain circumstances, a Direct Appointment Letter may be issued to appoint a qualified A/E firm directly instead of soliciting for qualifications. Direct Appointment required approvals: A/E Fees under $1M for Minor Projects approved by VP, BOF A/E Fees over $1M for Minor Projects approved by UTMB President Upon direct apppointment approval, the appointed A/E will submit proposal to UTMB. An Agreement for the A/E services will be executed upon successful negotiation of a fair and reasonable price. Required documents for Purchase Requisition: Direct Appointment o Direct Appointment Letter (signed) o EAJ Form for A/E justification o Agreement for Professional Services o A/E Proposal and Direct Salary Expense (DSE) o HSP (over $85K) and UTMB HUB Coordinator s approval o Insurance Certificates for General Liability, Auto, Worker s Comp. and Professional Liability Appendix A9 contains the Purchasing Links and Forms Required Project Documentation for Design Procurements Regardless of the procurement type, at a minimum, the following documents are required to be issued to the A/E service provider. Scope of Project As-built drawings Building clarification Always check with Purchasing to make sure the most recent Purchasing Forms are used. (Reference Appendix A9 Purchasing Links and Forms) Life safety deficiencies Infrastructure requirements, including latest air balance report I.T. upgrade requirements Deferred maintenance list 5.3 Design Phase Execution The Design Phase of a project may vary in size and design effort level but generally, the following activities are conducted during the design execution: 21 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

30 Project Delivery Manual 1) Project kickoff 2) Schematic design and review 3) Design development and review 4) Construction Document development, review, and issuance of final documents for procurement Project Kickoff Regardless of the type of project, upon procurement of the A/E firm, the PM should promptly initiate a project kickoff meeting with the Customer, stakeholders, A/E team, and the project team to review the project s scope, budget, and schedule with all parties present. Items to review with project team during kickoff meeting include: General Information (contract, project number, meeting dates/time) Introduction of project team members (roles and responsibilities) and overall project organization (including consultants) Review of Customer Agreement (scope, budget, schedule, milestones) Safety expectations Project protocols (safety, quality, cost reporting, document control, etc.) Questions and answers Action items Utilizing the established best practice, the PM should ensure a meeting agenda is issued prior to the meeting and minutes are recorded and distributed upon conclusion of the meeting Schematic Design Activities During the SD stage, the PM will need to work with stakeholders (maintenance, utilities, etc.) to confirm existing conditions in the project s intended work area. Potential scope risks should be identified so that the A/E can ensure design captures the required resolution. Areas of concern include mechanical needs, electrical needs, information services needs, plumbing needs, etc Hazmat Survey Projects of a renovation nature may be required to conduct a hazmat survey if the project work has the potential to disturb existing material. As the A/E firm conducts the Schematic Design stage, the PM should identify if the design would potentially disturb existing materials in the project space. If it is likely, the PM will need to ensure a hazmat survey is conducted. Before procuring a service provider to complete a hazmat survey, the PM should consult with the EHS department to cross check the EHS database of surveys to identify if a hazmat survey exists for the location of the project. If a survey does exist, the PM will provide the documentation for project records. If a survey does not exist, the PM will need to work with the Purchasing department to hire a survey company to complete a survey. All final survey documentation should be included in the project files and forwarded to the EHS department in order for the survey database to be updated Air Balance Test Projects of a renovation nature also need to have air balance tests conducted before and after construction. Air balance tests should also be conducted on 22 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

31 Project Delivery Manual swing space areas that will temporarily house employees during the construction period. The PM should work with the Property Services department to ensure the air balance tests are conducted, as needed. At the end of the project, during the Construction phase, the PM needs to ensure that post-construction air balance tests are conducted during the inspection process. Air balance tests can be conducted by the UTMB mechanical department or by third-party contractor, as appropriate for project size Design Reviews The FPM Planner and PM continue to collaborate through the Design Phase to ensure Customer needs are embodied in the design product. The PM takes the lead of all Customer communications and manages dialogue on reviews and approvals. Additionally, leadership will review documents at SD and DD 95% completion for compliance with the master plan objectives and Customer business plan conformity. Prior to design review meetings, the PM should ensure that the notice for the design review has been issued (two weeks prior to meeting) and that the design documents are issued to the specified meeting attendees prior to the meeting. The set list of meeting attendees is as documented on the Notice for Review Meeting form. This list is comprised of: Customer* BOF Construction Manager* Environment Health and Safety* Environmental Services Police Telecommunications* Innerface Architectural Signage Utilities* Clinical Equipment Services Business Operations & Facilities (PM, CM, AVP, PD D&C) Purchasing Property Services/Maintenance* Infectious Diseases Interiors Note: Recipients of the design documents are as noted by an asterisk and the specific person is named on the notice form. See Appendix A5 for sample Notice for Design Review. Typically, the design documents are issued for review and comments are returned to the PM prior to the scheduled review meeting, as noted on the notice for meeting document that is issued. The PM reviews the comments on the design documents and sets the meeting agenda to discuss pertinent items from the document review process, at a minimum. Review meetings required during design phase include: Schematic Design Ensures site plan compliance and leasehold (build-to-suit) lease and business plan match to site utilization. NOTE: At the 95% SD review, VP BOF approval is required before continuing design. 95% Design Development Ensures budget and scope are in conformance and checks program objective to design prior to construction documents. NOTE: At 23 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

32 Project Delivery Manual the 95% DD review, VP BOF approval is required before continuing design. PM must also obtain Customer sign-off prior to moving into CD phase. 50% Construction Document, conducted as needed 95% Construction Document, conducted as the minimum requirement on any design project Additional review may be added based on scope and schedule of project. Upon completion of the CD documents for review, the PM needs to submit a CD set to the TDLR for review/comment. All final changes to the CD documents will be made and the final document are released for use in the construction procurement process. 5.4 Design Phase Roles and Responsibilities During the Design Phase, the following roles will be involved. ROLE Customer Stakeholder Facilities and Portfolio Management (FPM) Planner and Interiors Manager (IM) Project Manager (PM) RESPONSIBILITY The Customer attends and participates in design review meetings and approves final design development documents. Stakeholders should be engaged throughout the design review process to ensure departmental requirements are adequately addressed in the final design documents. Person assigned to collaborate with the PM and project team to ensure UTMB standards and guidelines are maintained for all finishes, wayfindings, and signage for the project. Planner additionally attends design review meetings, as available and as needed. Person who is responsible to execute the project during the design phase. The PM is the point of contact for the Customer, stakeholders, and the A/E firm procured for the design work. The PM is responsible to execute the project scope on budget and schedule. Various responsibilities include: Compiles the procurement documentation, obtaining approvals, and submitting procurement documents to the Team Coordinator for entry into the online requisition form. Conducts project kickoff meeting(s), which can include both an internal kickoff for the project team members and a Customer kickoff for all project players (Customer, A/E, stakeholders, etc.) Distributes design review meeting notices and ensures design documents are issued for review/comment prior to the design review meetings. Receives comments to design documents and develops the review meeting agenda. Leads the design review meetings and ensures meeting minutes are captured and distributed to all attendees and design reviewers. Ensures estimates are completed prior to the CD 24 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

33 Project Delivery Manual ROLE Team Coordinator (TC) Interiors Manager (IM) Construction Manager (CM) RESPONSIBILITY review. Reviews incoming supplier invoices to ensure work completed to date matches amounts invoiced. Initiates PO change orders, as needed, using established change management and procurement processes. See Section 7 for additional roles and responsibilities related to change management. Notifies Purchasing department regarding upcoming construction procurements. Person assigned to a project to support the PM during project execution. Various responsibilities include: Reviews procurement document packages to ensure all required items are provided and enters the procurement requisition into the online form upon receipt of a complete procurement document package from the PM. Updates IDIQ Log with requisition /PO number, project description and project amount, change orders are also logged when they occur.. Receives incoming invoices, verifies available funding, confirms contract required documents are provided with invoice (e.g. HSP Progress Assessment Report (PAR)), obtains PM approval, submits invoice for payment by accounting department. Logs all invoices submitted for processing. Verifies payment was issued. Processes incoming change order documentation similar in nature to process for new requisitions. See Section 7 for additional information on the Change Management process and responsibilities. Person assigned to project who handles all activities and items regarding space, furniture, finishes, wayfindings, and signage. The IM works with the PM and Planner to ensure the standard UTMB requirements and guidelines for final finishes are integrated in the final construction documents. The IM participates in the design meetings. Person assigned to the project who will handle the day-today activities during the construction phase of the project. The CM becomes actively involved in the project no later than the Schematic Design stage. The CM will participate in design reviews and final Construction Documents development to ensure all construction related items and activities are adequately captured in the construction scope, budget, and schedule. CM works with the PM and confirms move plan developed for project (during project definition phase) is still applicable and ensures swing space will be available once pre-construction 25 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

34 Project Delivery Manual ROLE Vice President, BOF Program Director, Design & Construction Purchasing Department Architect/Engineer (A/E) Firm RESPONSIBILITY phase begins. Responsible to approve contract documents for design phase. Conducts review of 95% SD and DD and approves design work to proceed into CD stage. Posts all 95% review notice on Planning Forum calendar, as requested by PM. Reviews all change order requests and approves for PM to proceed through change order process. See Section 7 for more information on Change Management process and responsibilities. UTMB Department responsible to produce procurement documents (Agreements, Purchase Orders and PO Change Orders) to suppliers as identified on corresponding documents provided by PM. Firm awarded the procurement to execute the design work for the project. A/E is authorized to begin work once purchase order has been issued. The A/E is responsible to complete the various design stages (schematic, development, and construction documents) of a project. The A/E provides the design documents for review, participates, in the review meetings, and submits meeting minutes of all design review meetings to the PM for further distribution. The A/E is responsible to invoice according to the terms as established in the Agreement. 5.5 Required Documentation during the Design Phase Required documentation for Design Phase procurements are as noted in the subsections of Section 5.2. The following documents are required during the Design Phase execution. Design Review o Design Review Meeting Notice o Meeting Agenda o Meeting Minutes Samples of the design review notice form is provided in Appendix A Key Elements of the Design Phase Project Organization Implementation of the project organization prior to commencement of the design phase is key to the success of a project. Project organization includes project kickoff and goal alignment, Customer/stakeholder management, document control, and project reporting (additional detail provided in Section 9). It is suggested that the PM conduct not only the project kickoff meeting with the Customer and entire project team, but also hold an 26 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

35 Project Delivery Manual internal BOF project kickoff team meeting to establish project needs and set responsibilities for each project team member Safety Safety is one of the key performance indicators for any project. The PM should not only ensure the project team utilizes safety practices in day-to-day operations of a project, but also ensure that UTMB safety requirements are integrated into the final design deliverables. Additional information on safety related best practices is located in Section Quality Quality, as described in Section 13 and Appendix G, should be an integral part of a project. During the Design Phase, key aspects of quality management that should be implemented include activities from all steps in the Plan-Act-Control-Excel process. During the planning step, the PM should ensure that the A/E firm selected during the procurement process is qualified and competent to complete the scope of work for the project. Additionally, performance criteria for the A/E contract should be established and monitored throughout the design process. Maintaining document records of all design reviews, ensuring quality checks are conducted on final deliverables, and participating in management reviews on the project are all ways the PM can ensure quality is integrated throughout all aspects of the project Estimating Estimating throughout the design and procurement process is essential to scope control and budget accountability. As a minimum, one estimate should be prepared for any job over $100,000 of construction scope, including contingencies BEFORE it is put out for solicitation or submitted to the JOC / MEP Contractor for pricing. The estimate is usually developed during the 50% CD period, but may be earlier or later. The estimate may be done in-house using RS Means if the project will be completed under the JOC delivery method. Other delivery methods, including CSP jobs, may be estimated on a SF basis by the design professional involved. Note: The RS Means or SF estimate is part of meeting with the Customer at the Project Initiation meeting. For any construction exceeding $250,000, there should be three estimates done for the record: RS Means or SF estimate prior to Project Initiation 95% DD Review by 3 rd party (design professional acceptable) 95% CD Review by 3 rd party (design professional acceptable; 3 rd party estimator preferred) The project should not proceed when any estimate indicates that the market will drive the construction line item over budget BEFORE contingency is applied. 27 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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37 Project Delivery Manual 6. PROJECT EXECUTION - CONSTRUCTION PHASE The Construction Phase begins once the construction documents are complete and ready for solicitiation. The construction procurement will result in an Agreement being issued to a contractor who will then proceed with execution of the construction work. The PM and FPM Planner continue to collaborate through the Construction Phase of the project through to occupancy of the space to ensure Customer needs are captured in the final product. During the Construction Phase, a CM is appointed as owner s representative of the project work and is the main point of contact for the contractor. However, the PM continues to be the main point of contact for all Customer and A/E team communications and reporting for the project and should stay engaged on the project during this phase. The Construction Phase is comprised of two main stages: 1) Construction Procurement (Solicitation Process) and 2) Construction Execution. Both stages contain multiple activities to complete. 6.1 Construction Procurement The Construction Documents generated at the end of the Design Phase will be used for procurement of the construction contractor. The Construction Procurement Methods include: Job Order Contract (JOC) Procurement UTMB Purchasing has established Agreements with qualified contractors for minor construction, repair, rehabilitiation and/or alteration projects in the categories of Healthcare and Academic, Research and Business. UTMB can request RS Means pricing from the appropriate JOC Contractor for projects under $300,000. JOC Projects over $300,000 require additional approvals from the AVP of Design and Construction. Work may begin after a UTMB Purchase Requisition has been entered and a Notice to Proceed (NTP) or PO has been issued. Required documents for Purchase Requisition: Job Order Contract (JOC) o Request for Pricing (RFP) Form - signed o RS Means Estimate to include: JOC Proposal Approval Form signed RS Means Proposal Contractor s Non-Pre-Priced Items form with back-up, if applicable Subcontractor s Non-Pre-Priced Items form with back-up, if applicable o JOC Justification Form for projects over $300K or for Secondary JOC Contractor regardless of Project dollar value o HSP (over $85K) and UTMB HUB Coordinator s approval o Project Summary Report (budget sheet) o For Change Orders include: Change of Scope Justification signed Change Order Form Project Summary Report (budget sheet) 29 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

38 Project Delivery Manual MEP Single Trade Services UTMB Purchasing has established Agreements with qualified contractors for MEP single trade services to be performed on a time and materials basis in accordance with the rates specified in the Agreement. UTMB may request pricing for work from the appropriate MEP Contractor for projects under $50K. Work may only begin upon the issuance of a PO and receipt of PO by the Contractor, unless written authoriziation from a BOF Program Director or AVP is obtained for an emergency situation. Required documents for Purchase Requisition: MEP Single Trade Services o Request for Pricing for Work Form - signed o Contractor s Cost Proposal, itemizing the following: Title of Personnel Number of Hours for work Hourly Rate Parts with wholesale cost plus mark-up Rental Equipment cost and hours of use, if applicable Total Cost of Work Project Summary Report (budget sheet) Competitive Sealed Proposal (CSP) Competitive Sealed Proposals are solicited for projects in excess of $500,000. Generally, the CSP procurement is administered by the Purchasing department and follows the process below: Solicitiation front end documents finalized CSP documents issued to print companies Notice to Respondents issued Pre-proposal meeting and site visit Questions from Respondents Proposals and HSPs received HSPs reviewed and approved by HUB Coordinator Proposals evaluated Award Recommendation issued Notice of Intent to Award issued Agreement executed PM develops construction activities notification (CAN) form (impact to campus), if required Signed Agreement to Contractor Notice to Proceed issued Purchase Order Issued Begin construction activities Required documents for Purchase Requisition: Used to initiate the soliciation process for CSP (required) o Budget Sheet o Other BOF Approval Documents 30 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

39 Project Delivery Manual Competitive Sealed Bid (CSB) Option for project of low complexity and limited scope. Primary selection criteria is price. Required documents for Purchase Requisition: Used to initiate the soliciation process for CSP (required) o Budget Sheet o Other BOF Approval Documents Construction Manager at Risk (CMR) Required documents for Purchase Requisition: Used to initiate the soliciation process for CSP (required) o Budget Sheet o Other BOF Approval Documents Design Build (D/B) Required documents for Purchase Requisition: Used to initiate the soliciation process for CSP (required) o Budget Sheet o Other BOF Approval Documents OFPC Procurements Via authority under the Board of Regents Figure 6.1 presents the procurement process flow for construction. The PM will work with the Purchasing department and the TC will ensure the documents flow through the process. Regardless of the procurement type, the PM is the lead for ensuring Agreeements are issued for construction. Note: Construction procurements, other than JOC, typically take 3-4 months to complete. The PM needs to ensure this time constraint is included in the schedule and Purchasing is alerted to the project early in the design phase. The Purchasing department can provide specific detail on the schedule associated with each part of the construction procurement process. Always check with Purchasing to make sure the most recent Purchasing Forms are used. (Reference Appendix A9 Purchasing Links and Forms) 31 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

40 Figure 6.1 Construction Procurement Process Flow Project Delivery Manual 32 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

41 Project Delivery Manual 6.2 Construction Execution Construction Execution has three main stages: 1) Pre-work, 2) Execution; and 3) Substantial Completion/Final Acceptance. Note: Once the project goes to the execution stage, the CM will be the person who ensures the work activities are completed; however, the PM needs to stay engaged in the project for communication and reporting purposes. The CM and PM should both ensure there is an open communication channel with the other. Figure 6.2 presents the construction execution process flow Preconstruction Activities The following subsections detail key activities during pre-construction. This is not an exhaustive description of activities but a highlight of the key functions. List items highlighted in bold are further detailed in the subsections below. The goal of the pre-work stage is to get the site ready for construction. During the prework stage, the CM will complete the following activities: CM review of construction area Initial move-out coordination o Removal of assets, if not already done by others Development of keying package for construction o Changing cores for construction CM issues electronic forms to contractor Pre-construction meeting Infection Control Risk Assessment Move-out Coordination Move coordination is a key activity that starts in the preconstruction phase with move-out of existing space but finishes once construction is complete with the final move-in of employees into the new space. Move-out coordination will only need to be conducted for projects with scope to renovate existing space. New construction will not have a move-out requirement. During the pre-construction phase, the PM, CM, and IM should conduct a move coordination meeting which includes attendees from the various stakeholder departments. Coordination effort between the project team and the various departments is needed to ensure that employees are relocated to a suitable temporary working area and a project s space/area is cleared of all items so construction can begin. The move coordination meeting should include the following topics, as applicable to the project. A sample move coordination checklist is provided in Appendix A6. Information on temporary swing space Keying status Packing office contents Labeling instructions for packing boxes and furniture Computer and voice move instructions Notifications to UTMB departments regarding move-out process and utilization of temporary space Responsible parties for various move activities Asset disposition during move-out process (move, store, dispose) Move schedule 33 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

42 Figure 6.2 Constuction Execution Process Flow Project Delivery Manual 34 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

43 Project Delivery Manual Key points to understand regarding the move coordination: Usually done twice (one for move out, one for move in). Sometimes others complete move out without involvement of project team. If move out was conducted by others, the CM should confirm the project space is ready during review of the project space. Attendees at move coordination meeting should include: PM, CM, IM, furniture teams, IS, IT, institutional mover, Customer, voice/data/desktop, environmental services, Contractor. Move out coordination determines where furniture and other items will be stored or disposed Keying for Construction The keying process is a multi-step process which begins in the pre-construction stage with the removal of existing key cores and installation of the construction cores. Installation of new key locks for the space will be completed after construction is complete (see Section ). The two key roles throughout the keying process are the Construction Manager and the Key Control Officer (KCO), which is typically the Team Coordinator. The following table details the required steps and responsible parties for the keying process that is conducted during the pre-construction stage. Step Description of Activity Responsible Party Keying preparation activities 1 Create multiple keying spreadsheet CM / KCO 2 Remove cores prior to demolition CM / KCO 3 Update Keystone door cards Planning 4 Change cores to construction cores KCO 5 Submit Maximo Request CM / KCO Pre-Construction Meeting A pre-construction meeting is conducted by the CM prior to the start of construction. The intent of the meeting is to review the construction plan with the Customer, contractor, stakeholders, and project team, including IM, to ensure everyone is on the same page going forward. The meeting agenda generally includes the following discussion points. A sample pre-construction meeting document package is provided in Appendix A6. Identification of Customer representatives and project team members o Contact/roles o Communication points of contact and general flow Purchase Order information and status Scope of work review o Reason for Project o Project Information 35 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

44 Project Delivery Manual o Milestone schedule dates and schedule of values o Drawings/Specifications Scheduling of weekly construction progress meeting critical for site access/staging/logistics/document flow monitoring o Who o When o Where o Start Date o Frequency Forms and document flow procedures for submittals o List of anticipated submittals o Flow charts for construction submittals (see Appendix A6) Anticipated construction progress schedule Site access logistics, including space survey drawings Request for Information Field Order to Change Order process o Field Order o Request for Pricing o Change Proposals o Change Orders As-builts O&M Manuals Deactivations Hot Work Permits Tests/Inspections Orientations Salvage items Daily Reports Pay Requests Storm water Infection Control Iterim Life Safety Measures Shutdown reviews Above ceiling work permit Badges Site access Working hours/days Infection Control Risk Assessment The Infection Control Risk Assessment (ICRA) should be completed during the pre-construction stage. The contractor completes the assessment document detailing the plans of action for mitigating all ICRA items. The assessment is submitted to the PM and CM for approval. During the course of the construction execution, the CM should ensure the contractor implements the noted plans of action on the ICRA Construction Execution Once the project space has been cleared and deemed ready for construction, the keys have been set for construction use, and the pre-construction meeting has been held, execution of the work can commence. 36 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

45 Project Delivery Manual Construction execution is a complex stage of the project. There are daily and weekly reporting requirements as well as the potential for change orders for scope items that need to be modified during the course of completing the construction. The following subsections describe the items/activities the CM and PM will need to monitor during construction and include these items: Safety Toolbox Meetings Construction Daily Report Interim Life Safety Measures Project Progress Meetings Request for Services Permitting, Inspections, Testing Keying Process Move Coordination Commissioning Safety Toolbox Meetings It is recommended that the CM meet the construction superintendent and crew on the first day of field work to confirm the contractor establishes the safety culture of the project from the start. This includes holding daily toolbox safety moments prior to each day s work activities and submittal of the Construction Daily Report which includes the Interim Life Safety Measures (ILSM) daily checklist. The CM should also ensure that the contractor s work crew meet the PPE requirements for the project. Note: The Contractor should provide a Safety Plan to the PM/CM prior to the commencement of any work (generated as part of the bid process). The PM and/or CM should ensure the contractor s safety plan meets contract requirements for working in a healthcare environment. See Section 11 for information on Safety Construction Daily Report As established during the preconstruction meeting, the construction contractor is required to provide a Construction Daily Report. The PM/CM should ensure the construction contractor completes the daily report and submits it daily at a predefined time. The CM is responsible to review the report, distribute and file the report, and follow up on issues noted in the report Interim Life Safety Measures The ILSM is a required checklist to be completed daily by the construction contractor and submitted with the Construction Daily Report. The PM and CM should review the checklists to identify if there are any non compliance issues and to confirm that corrective actions have been identified and implemented Project Progress Meetings The project progress meeting is conducted weekly. The meeting is conducted with the contractor s superintendent and the A/E project representative in attendance (in person or by phone) with the CM. Additional attendees of the meeting should include the PM and IM, as needed or desired. 37 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

46 Project Delivery Manual The contractor is responsible to conduct the meeting via the agenda and produce the meeting minutes. Generally, the progress meeting will include the following agenda items: Review of construction progress, safety, schedule, and budget Review of payment applications Review RFI log Review Change Request/Order log Review submittals The CM is responsible to approve the meeting minutes while the PM is responsible to ensure distribution of the minutes Request for Services A Request for Services form should be submitted to the UTMB Police department for any security services needed for the project Permits During the course of construction, the following types of permits may be required. Above ceiling work permit Hot work permits Off-campus projects may require city building permits Required Inspections and Tests A variety of inspections and tests will be conducted prior to construction completion. The CM should ensure that the Customer and stakeholders are invited to attend the inspections and tests at their availability. At a minimum, the following tests and inspections will be conducted on projects. Inspections Inspections may be conducted in a series based on project footprint. o Pre-existing Conditions Assessment/Inspection o Utility Trench Cover-up Inspection o Concrete Pre-pour Inspection o Wall Cover-up Inspections o Overhead Inspections Fire Alarm Testing Functional Test Report, which generally includes o Mechanical o Electrical o Plumbing o Process Piping o Controls o Fire Protection and Life Safety o Sprinklers o AV Equipment o Telecommunications o Air balance o Others as noted by contract SOW Interim Life Safety Inspection - At 80% construction completion, the CM needs to schedule a life safety walk-through for the project. 38 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

47 Project Delivery Manual Representatives from EHS, Maintenance, and the life safety committee should all be present for this inspection. Pre-substantial completion / punch list inspection NOTE: JOC projects are required to keep meeting minutes for inspections and distribute the next day. Additionally, if there is any decision point that comes out of the inspection meeting, the CM needs to ensure that the issue(s) goes through the appropriate process (Change Proposal, CO, RFI, etc.) to address it Keying Process Eight weeks prior to construction completion, the CM will need to proceed with the keying process for installation of new key locks for the space. The following table details the required steps and responsible parties in the keying process during the construction execution stage. Step Description of Activity Responsible Party Keying Meeting 6 Eight weeks prior to move - Issue drawings of spaces (before and after renovation) to keying team members and provide multiple copies of spreadsheet with door cards. Note: utilize hardware schedule to determine lock/no lock for door cards. 7 Organize and manage keying meeting for capital projects. Required Attendees: CM, departmental KCO, departmental decision makers, capital team KCO, institutional locksmith 7a Provide floor plan or space survey, copies of multiple keying spreadsheet with door cards filled in (designated new or existing to be cored) 7b Provide employee information, who needs keys, employee number, date or birth, security clearance CM CM CM KCO/Administrator 7c Provides existing key codes, existing keys issued, and key code availability Locksmith 7d Maintain and update multiple keying spreadsheet KCO Keying Meeting Outcome Activities 8 Enters data electronically into multiple keying spreadsheet and submits to CM, department KCO, and locksmith for validation and input of other information. Note: spreadsheet must be finalized before KCO 39 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

48 Project Delivery Manual Step Description of Activity Responsible Party proceeding. 9 Obtain quote for keying request Locksmith 10 Create Maximo request and submit keying package (multiple spreadsheet and drawings) via s to the following: Police, department KCO, locksmith, Program Director D&C, PM, Facilities Information Associate, Facilities Information Manager, IM, CM, Customer(s) 11 Contact locksmith with confirmation of install date (one week in advance) KCO CM 12 Update door card information FPM Planner 13 Mail cores to Locksmith Key supplier 14 Cut keys and combinates cores. Delivers keys to service center. Installs cores. Locksmith 15 Enter data in Keystone Keying Office 16 Notify CM, Customer KCO, FPM, Keying & Badge Office of the final installed keys and cores (per asbuilts) Locksmith Move-In Coordination Move coordination is another key activity that starts in the preconstruction phase with a move-out coordination meeting but finishes with a move-in coordination once construction is complete. The move-in coordination meeting is held by the PM, CM, and IM and includes attendees from the various stakeholder departments. Coordination efforts between the project team and the various departments is needed to ensure that final move in is conducted smoothly and efficiently. The move coordination meeting is conducted prior to substantial completion while the physical move happens once substantial completion has been reached (see Section ). Key points to understand regarding the move-in coordination: For renovated space, efforts will account for items removed during moveout process. For both renovated space and new construction, the coordination meeting will ensure all parties involved with the move-in activities understand the schedule and their role. Attendees at move coordination meeting should include: PM, CM, IM, furniture teams, IS, IT, institutional mover, Customer, voice/data/desktop, environmental services, Contractor. 40 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

49 Project Delivery Manual Move-in coordination includes items from housekeeping, materials management (hand sanitizer, toilet paper, paper towel holders, etc.) Need to ensure owner furnished, contractor installed (OFCI) items are included in construction schedule as these items are installed upon construction completion Commissioning General list of systems and assemblies to be commissioned: 1. Central building automation system 2. All equipment of the heating, ventilating and air conditioning systems 3. Scheduled or occupancy sensor lighting controls 4. Daylight dimming controls 5. Refrigeration systems 6. Emergency power generators and automatic transfer switching 7. Uninterruptible power supply systems 8. Life safety systems (fire alarm, egress pressurization, fire protection) 9. Electrical (service switch gear, switchboards,.see section H) 10. Domestic and process water pumping and mixing systems 11. Equipment sound control systems and testing 12. Data and communication 13. Paging systems 14. Security system 15. Irrigation 16. Plumbing water supply, pressure systems, special treatment systems 17. Vertical transport 18. Building envelope including the different types of curtain wall assemblies (specify roofing, windows and doors, construction joints, etc.) 19. Process instrumentation and controls 20. Medical Gas systems 21. Special Air supply and exhaust systems and pressure relationships Once commissiong is complete, the project moves into the substantial completion stage Substantial Completion/Final Acceptance Substantial Completion is the point in the delivery of a project that marks the beginning of the owner s responsibility for the operation of the project. The American Institute of Architects (AIA) defines substantial completion as the stage in the progress of the Work where the Work or designated portion is sufficiently complete in accordance with the Contract Documents so that the Owner can occupy or utilize the Work for its intended use. Substantial Completion demands accuracy, compliance, and fairness. Key activities to complete during the Substantial Completion stage include: Issue Certificate of Substantial Completion Transfer of billings for Operational Utilities and services to the Owner for off-site projects Notify Operations and Maintenance (O&M) to add the work to their responsibility and re-key facility Determine what work remains for completion or correction based upon Design Team walk through 41 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

50 Project Delivery Manual Begin Closeout activities (testing, equipment startup, operations training, record documentation) Schedule 1-year warranty walk-through Substantial Complete/Project Closeout When the project is deemed substantially complete, the PM will work to begin project closeout from a financial and administrative standpoint, as per Section 8, Project Closeout. In parallel, the CM continues to progress the construction work through to final acceptance Substantial Completion Inspection/Punch List/Final Acceptance Prior to substantial completion, the CM schedules the Substantial Completion Inspection walk-through. All punch list items are identified on the inspection walk-through. The CM will additionally submit a letter of Notice of Substantial Completion to the contractor noting the completion date for all punch list items. The notification also requests the contractor to provide: As built drawings O&M manuals UTMB keys Final payment releases, as noted by contract Upon completion of the punch list items and receipt of the required contract documentation, the PM/CM will provide a Final Acceptance Letter to the contractor. Note: Due to timing on receipt of documents and final invoice from the contractor, Final Acceptance notification may be made later in sequence of project activities Owner Furnished Contractor Installed Items The CM needs to ensure that the OFCI items are installed by the contractor or inhouse construction department prior to Customer moving into the new or modified space Keying/Moving Coordination/Final Move In The CM will oversee the keying process to ensure that the new or modified space has been rekeyed prior to Customer move-in. Additionally, the CM will need to conduct a move coordination meeting to confirm all parties involved with installing final furniture/fixtures has scheduled or completed the work. 6.3 Construction Contract Administration While the CM is responsible to oversee all of the construction related work, the PM is ultimately responsible to manage the contract from start to finish. During the internal project kickoff, the PM and CM should identify who will be responsible for each contract administration item/activity for a given project. Contract management includes the following key items: Progress Meetings as noted in Section Construction Daily Report/Daily Construction Interim Life Safety Measures as noted in Section Request for Information incoming information request from the contractor. 42 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

51 Project Delivery Manual o Contractor originates, submits to A/E, A/E reviews and submits comments to CM, CM approves RFI answer and returns final documentation to contractor. PM reviews, as needed or requested by CM. Submittals incoming submittals sent to A/E copied to the CM, A/E returns submittal to CM for distribution to contractor. A submittals log must be kept by contractor, A/E, and CM. Pay Requests issued on UTMB form. The pay percentage is approved at the last progress meeting of each month. Pay applications must include an HSP PAR. Request for Inspection issued on UTMB forms. Minimum 24 hours advance notice for any inspection. Request for Utility and Services Shutdown issued on UTMB forms. Minimum of 3 weeks advance notice. Includes mechanical, electrical, plumbing, fire alarm, security, linen/trash chutes, pneumatice tube, etc. System Test Report to be issued on UTMB form or UTMB-approved contractor form. Change Proposals (CP) issued on UTMB form. CP log kept by contractor, A/E, and CM. Contractor submits CP to CM with copy to A/E, A/E reviews and sends response to CM, CM and PM approves and returns to contractor. Field Orders (FO) issued at CM discretion for expediting work on unforeseen problems. Change Orders (CO) compilation of change proposal and field orders. Submitted for approval to CM. Processed monthly. Note: Additional information on Change Management is provided in Section Construction Phase Roles and Responsibilities During the Construction Phase, the following roles will be involved. ROLE Customer Stakeholder Construction Manager (CM) RESPONSIBILITY The Customer attends construction related meetings (preconstruction, move coordination, substantial completion, etc.), inspections and tests (as desired), and approves scope, budget, or schedule changes, as needed. Any person, department, or entity that will be involved with or be affected at any point during construction execution. Stakeholders should be engaged throughout the construction execution to ensure departmental requirements are adequately addressed in the final inspections of the project space. Person on project team who is responsible to execute the day-to-day activities during the construction phase. The CM is the main point of contact with the construction contractor. Various responsibilitiess include (but are not limited to): Participates in procurement process for construction contract(s). Leads the pre-construction meeting and subsequent weekly progress meetings and distributes minutes, and the issues log from those meetings. Schedules and attends all construction inspections and tests through construction completion. 43 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

52 Project Delivery Manual ROLE Project Manager (PM) Team Coordinator (TC) RESPONSIBILITY Initiates Field Orders and reviews all incoming change proposals and orders (see Section 7 for additional information on change order management). Ensures contractor submittals are aligned with contract requirements and project scope. Reviews/approves incoming construction invoices to confirm work completed equates to billed amount. Ensures daily construction reports are being generated and addresses all safety related issues that arise. Person who is responsible to execute and manage the construction contract. The PM is the point of contact for the Customer, stakeholders, A/E, and construction contractor. Working with the CM, the PM is responsible to ensure that construction is executed on budget and schedule. Various responsibilities includes (but is not limited to): Participates in procurement process for construction contract(s). Compiles the procurement documentation, obtaining approvals, and submitting procurement documents to the Team Coordinator for entry into the online requisition form. Attends the pre-construction meeting and subsequent progress meetings as needed or requested by CM. Reviews and further processes incoming change proposal documents for contract change orders. Reviews incoming invoices to ensure work completed to date matches amounts invoiced and works with the TC to submit for processing. Reviews change order requests and ensures change order documents are processed, as needed. See Section 7 for additional roles and responsibilities related to change management. Initiates project closeout once construction reaches substantial completion. Person assigned to a project to support the PM and CM during project execution. Various responsibilities include: Reviews procurement document packages to ensure all required items are provided and enters the procurement requisition into the online form upon receipt of a complete procurement document package from the PM. Submits key request forms and work requests upon review and confirmation that keying document package is ready. Submits badge requests for BOF project related contractors. Receives incoming invoices, verifies available 44 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

53 Project Delivery Manual ROLE Interiors Manager (IM) Purchasing Department Construction Contractor Architect/Engineer (A/E) Firm RESPONSIBILITY funding, obtains PM/CM approval, submits invoice for payment by accounting department. Logs all invoices submitted for processing. Verifies payment was issued. Processes incoming change order documentation similar in nature to process for new requisitions. Person assigned to project who handles all activities and items regarding space finishes, wayfindings, and signage. The IM works with the PM and CM to ensure the standard UTMB requirements and guidelines for final finishes are installed in project space. Additional responsibilities during the Construction Phase include: Attends Construction Progress Meetings and provides input/feedback for interiors related items. Works with CM to schedule and implement the move coordination meeting(s). Coordinates the installation of the furniture with the vendor, CM, and Customer. Coordinates with FPM to distribute the Room Change Memo once new signage is installed. Participates in punchlist walk to identify any outstanding interiors related items. UTMB Department responsible to produce procurement documents (Agreements, Purchase Orders and PO Change Orders) to suppliers as identified on corresponding documents provided by PM. Firm contracted to complete the construction work on a project. The Contractor is required to execute the work and invoice according to contract terms. The Contractor directly reports to the CM for the day-to-day construction activities but will interface with the PM for general contract management issues. Firm who conducted design of project space. The A/E attends construction progress meetings, as needed. The A/E also reviews incoming RFIs and provides response as required. 6.5 Required Documentation during the Construction Phase The following documents are required during the Construction Phase. Construction Execution o Pre-construction meeting notice o Meeting Agenda o Meeting Minutes o Interim Life Safety Checklist o Infection Control Risk Assessment 45 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

54 Project Delivery Manual o Security Clearance Request Form o Inspection Request Form o Request for Service o Construction Daily Report o Fire Alarm Functional Test Report o HVAC Function Test Report o New System Test Report o Overhead Inspection Checklist o Service Shutdown Request o Stormwater Discharge Request Contract Management o Request for Information o Pay application o Final Acceptance Letter o Contractor Evaluation Form Samples of the construction phase forms are provided in Appendix A6. The following contract management documents are provided in Section 7, Change Management. o Scope Change Authorization Form o Field Order o Change Proposal as provided by Contractor o Change Order o Change of Scope Justification Form 6.6 Key Elements of the Construction Phase Project Organization Implementation of the project organization starts prior to commencement of the design phase but continues through the construction phase. Conducting a well organized preconstruction meeting will likely set the stage for the success of the construction phase. Additionally, good document control during the construction phase is a must. There will likely be a volumous amount of incoming and outgoing documents during construction and having an established process and file system will help a PM/CM keep scope on budget and schedule. See Section 9 for additional information on project organization Safety Safety is one of the key performance indicators for any project. The PM anc CM should not only ensure the project team utilizes safety practices in day-to-day operations of the construction phase, but also ensure that UTMB safety requirements are met by all construction contractors and vendors. Additional information on safety related best practices is located in Section Quality Quality, as described in Section 13 and Appendix G, should be an integral part of a project. Key aspects of quality management that should be implemented throughout the Construction Phase include activities from all steps in the Plan-Act-Control-Excel process. 46 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

55 Project Delivery Manual During the planning step, the PM should ensure that the construction contractor selected during the procurement process is qualified and competent to complete the scope of work for the project. Additionally, performance criteria for the construction contract should be established and monitored throughout construction execution. Maintaining document records of all construction activities (meetings, inspections, testing, etc.), ensuring quality checks are conducted on final installed products, and participating in management reviews on the project are all ways the PM and CM can ensure quality is integrated throughout all aspects of construction Change Management Change management will be a key focal point during construction with various FO, CP, and CO requests coming in for scope changes. It is imperative that the PM and CM utilize sound change management skills to ensure the project meets the final Customer expectation/need without exceeding budget or schedule. Section 7 describes the change management process and Appendix C describes change management best practices. 47 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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57 7. CHANGE CONTROL MANAGEMENT Project Delivery Manual 7.1 Change Control Overview The contract is the key document used to manage scope, budget, and schedule on a project. Change orders on a project are a risk that can adversely affect budget and schedule and as such, should be properly managed. Project managers should have an in-depth understanding of the terms and conditions of the contract as well as the scope of work. The PM must also be familiar with the contractual requirements for managing change orders, including any limitations within the contract, and understand any time constraints on requesting a change order. Scope control refers to a form of baseline control similar to that used to control the schedule and budget. Scope control involves the establishment and control of a well-defined technical baseline to ensure that the work performed meets the criteria required by the contract. Change control refers to the process used to identify, review, analyze, and incorporate changes to any project baseline, including scope, cost, or schedule. As part of the pre-construction meeting, the PM or CM should discuss the change process with both the Customer and contractors to ensure a mutual understanding of the process. For additional best practice information on change control, refer to Appendix C. 7.2 Change Order Process Change management is important during both the Design Phase and the Construction Phase. The following subsections detail the process for each phase Design Phase Change Orders If a project requires a change order during the Design Phase, the following steps will need to be completed. Figure 7.1 shows the process flow for Design Phase change orders. 1) Need for change in budget is identified. 2) Scope Change Authorization Form is completed and submitted to Vice President, Business Operations and Facilities for approval. 3) Once the Scope Change Authorization is approved, PM solicits a Change Proposal from the A/E firm for pricing. a. The Scope Change Authorization is a 2-step form (one for design and the second for construction since scope change may likely require the A/E to provide or modify design documents). b. Form should be edited to remove the signature line for UTMB Chief Business Officer if the price is below $100,000. c. PM completes the form and submits it for initial review/approval by AVP for Design and Construction prior to submitting for final signature. 4) If the change order is for more than $10,000, the PM will need to additionally route the approval through for FISC approval before proceeding. 5) Once the Scope Change Authorization is approved, a change order request needs to be entered online for IDIQ A/E Services in accordance with the procurement procedures; or an Amendment to the A/E Agreement will need to be executed, upon receipt of fully executed Amendment, the change order request needs to be entered online in accordance with the procurement procedures. 6) Purchasing issues the PO Change Order. 49 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

58 Project Delivery Manual 7) PM needs to update the BOF database with the approved budget change information. Figure 7.1 Design Phase Change Management Process Construction Phase Change Orders During the Construction Phase, the change order process can vary. The CM can issue a Field Order which will address immediate unforeseen issues that arise on the jobsite. Change Orders are issued to confirm FO issued and to request new scope items that require additional budget. Change management during the Construction Phase generally follows the process as described below. Figure 7.2 presents the process flow for construction. 1) Issue is identified that results in additional scope requiring a change in budget. a. Contractor generated RFI for directive/input for resolving an issue b. CM generated request for design assistance 2) Determing if the work associated with the change requires pricing before the work is executed. a. If not, CM issues a FO after concurrence of the scope with the PM and Customer. If FO issued for work that is not part of contract scope of work, CM requests contractor to submit Change Proposal for work. b. If so, CM issues RFP for the scope change and asks for a Change Proposal from the contractor. 3) Contractor submits a Change Proposal for the scope of work. a. The A/E will review and provide comment/recommendation to the CM. b. The PM, CM, and Program Director of Construction review and approve the Change Proposal prior to work proceeding. 4) Change of Scope Justification is completed and submitted to appropriate Program Director, D&C for approval prior to obtaining approval and funding. 5) Once Change of Scope Justification is approved, PM generates the Scope Change Authorization Form (using appropriate form based on value). 6) If the change order is for more than $10,000, the PM will need to route the approval through AVP, D&C prior to submittal to FISC for approval, if needed. 7) If the CO is approved, a change order request needs to be entered for Purchasing in accordance with the procurement procedures. 8) Purchasing issues the PO Change Order. Note: Change Orders cannot be approved by the PM/CM using the construction or project contingency funds, unless otherwise approved by management. Construction contingency is intended to be used for small Field Order type items only. 50 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

59 Project Delivery Manual Signature limits: Program Directors, D&C up to $10,000. Anything over $10,000 must be preapproved by the AVP Design and Construction prior to submittal to FISC for approval. Change order work cannot proceed without approval. Change Orders over 10% of CCL require either a Rider to the bond or a Letter from the Bonding Company indicating that the increase amount is covered under the current performance and payment bond and copies of such must be sent to Purchasing with the Change Order Request. Figure Construction Phase Change Management Process Contractor generated Issue Identified CM generates RFI for directive/ input for resolving issue Design Assistance Required (from A/ E, Customer, Stakeholder) Additional Scope Identified CM issues Field Order after concurrence of scope by PM and Customer No PM/CM/IM price before work executed? Yes CM issues RFP Contractor performs additional work Contractor generates/submits Change Proposal A/E reviews and forwards comment/ recommendation to CM PM generates Scope Change Authorization and routes for approval Change of Scope Justification completed and submitted for approval to PD, Construction Monthly, CM processes all CP, not pulling from contingency Yes PM, CM, and PD Constr. Approve CP? No CM issues rejected CP to contractor If approved, follow established procurement processes to issue CO 51 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

60 7.3 Change Management Roles and Responsibilities Change Management involves the following roles and responsibilities: Project Delivery Manual ROLE Customer Program Directors, Design & Construction RESPONSIBILITY The Customer will approve scope changes that affect budget or schedule and confirm funding source, as needed. Reviews all incoming change order documents and provides approval for changes under $10,000. AVP Design and Construction Preapproves change order documents in excess of $10,000 prior to submittal to FISC for approval. Facilities and Infrastructure Steering Committee Construction Manager (CM) Project Manager (PM) Interiors Manager (IM) Team Coordinator (TC) Purchasing Department Construction Contractor Architect/Engineer (A/E) Firm Responsible to approve all change order requests in excess of $10,000. Person on project team who is responsible to issue field orders, review change proposals and submit change order documentation to PM for processing during the construction phase. Person on project team who is responsible to review change proposals and submit change order documentation for processing during the design phase and collaborate with the CM to ensure change management is executed per established processes during construction. Person assigned to project who handles all activities and items regarding space, furniture, finishes, wayfindings, and signage. The IM works with the PM and CM when change orders affect interior related issues for a project. Person assigned to a project to support the PM and CM with change management documentation to ensure it is processed and change order documents are issued. UTMB Department responsible to produce procurement documents (Agreement Amendments, and PO Change Orders) to suppliers that arise during the project. Firm executing construction work who provides change proposal documents to the CM for review and subsequent approval. Firm executing the design work who provides change request documents to the PM during the design phase. During the construction phase, the A/E will review incoming change requests from construction contractor and provide comments on requested change. 52 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

61 Project Delivery Manual 7.4 Required Documentation Document requirements for change orders is as follows: Design Phase (Reference item 5.2 for required forms for Purchasing change order request) o Scope Change Authorization Form (over $100,000 or less than $100,000) o Change Proposal o Change Order Form Construction Phase (Reference item 6.1 for required forms for Purchasing change order request) o Change of Scope Justification o Scope Change Authorization Form (over $100,000 or less than $100,000) o Field Order o Contract Change Proposal General Contractor o Contract Change Proposal Subcontractor o Change Order Construction Contract <$2M o Change Order Construction Contract >$2M Samples of the change management forms are provided in Appendix A Key Elements of Change Management Project Organization Document control for all change orders during both the Design Phase and Construction Phase is an important task Budget and Schedule Control Change orders will impact budget and are likely to impact schedule if not processed timely. It is important for the PM and CM to utilize best practice tools for budget and schedule management (see Sections 14 and 15) during the change management process. It may be likely that the baseline budget and schedule will be updated per a change order Project Finances As COs are processed, a PO amendment will be issued to the contractor. The PM will need to ensure the budget information in the BOF database is updated timely. Additionally, as invoices are received, the PM and CM will need to confirm the invoiced amounts are billed according to change order documents. 53 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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63 8. PROJECT CLOSEOUT Project Delivery Manual Project closeout is the final step in completing a successful, well-managed project and begins once construction reaches substantial completion. The close-out process enables the BOF Finance team to collect unexpended balances of capital from the funding lines of a project and return it to the UTMB Capital Finance for application against other requirements. Close-out is project specific and schedule driven. The BOF Capital Project Close-out Procedure details both the general project management close-out process and the financial close-out process and should be referenced for the specific actions required to progress close-out. Appendix D contains the complete procedure. The closeout process flow is as shown in Figure Substantial Completion/Final Completion/Closeout At the point of substantial completion, the CM executes construction closeout, as described in Section 6, while the PM initiates the general and project management closeout process and the financial closeout process, as described in this section. The substantial completion date, as noted in the construction contract and reported on the PSR, is the anchor date for all further close-out activity planning. In anticipation of substantial completion, the PM will need to conduct the following activities: Ensure PSR accurately reflects the Substantial Completion date. Ensure all POs based on current requisitions are entered, as needed. Check the completion schedule and verify forecast of closeout. Validate existing encumbrances and expenses. Ensure any Change Proposals or Change Orders are in process for approvals. Annotate PSR with forecast comments for remaining encumbrances. Forecast Final Completion on PSR, with notes as needed (typically 30 days from date of Substantial Completion). Upon reaching substantial completion, the PM updates their project to a Status 6 in the PSR and proceeds with providing BOF Finance with the document package that notifies them of the status change (see Section ). Final completion is reached once the Contractor has contractually completed all work and submitted final payment requests. During final completion, the PM will verify the final incoming payment requests and approve for payment. Issues affecting final closeout should be noted on the PSR. Once a project reaches the financial closeout date, the PM will work with BOF Finance to ensure the remainder of closeout documents are submitted (see Section for details). 55 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

64 Figure 8.1 Project Closeout Process Flow Project Delivery Manual 56 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

65 8.1.1 Financial Closeout Project Delivery Manual Substantial Completion The BOF Project Closeout Procedure, Part 2 Finance and Accounting documents the BOF Finance team s responsibilities and process for closing out the Peoplesoft projects. The PM is responsible to initiate this process when the project reaches Substantial Completion. At Project Status 6 (Occupancy Substantially Complete), the PM notifies BOF Finance that a project is substantially complete by submitting the following required documentation. Completed and signed Notice of Substantial Completion Project Summary Report Selected Projects Financial Summary Project Detail Report Project Completion Check List See Appendix A8 for a sample closeout document package. During financial closeout, the PM should maintain routine communications with the TC and BOF Finance to confirm the closeout process is progressing. Using the information provided on these documents, BOF Finance will reduce the budget, as necessary, via a budget adjustment request to Asset Management to match the total budget needed for project completion Final Completion At Project Status 7 (Complete), the PM notifies BOF Finance and the project Team Coordinator of any funds available to return to the appropriate funding source. At this point in closeout, the BOF Finance team researches the funding source(s) to determine the action required to return balance available. A project with multiple funding sources will require multiple actions to return the equity balance. BOF Finance will also review the project transactions to validate that revenue and expenses are accurate and recorded on the correct project and fund source. The review process can contain multiple iterations of reviews and actions that the Finance team and the Team Coordinator will complete. Additional information on the specific actions are detailed in the BOF Project Closeout Procedure, Part 2 Finance and Accounting. Once all transactions are validated and deemed correct, the BOF Finance representative will prepare the Notice to Inactivate Capital Project form and submit to the capital accounting department. This documents confirms that the Peoplesoft project is ready to be inactivated General and Project Management Closeout Upon a project reaching the substantial completion milestone, the PM will need to continue collaboration with the CM and the FPM Planner to ensure the following required closeout activities are completed and documented, as noted on the Project Management Process Checklist. 1) TBD - PM and AVP Design and Construction distribute feedback forms and schedule communications surveys with the Customer. The Project Initiation 57 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

66 Project Delivery Manual agenda provides the basis for monitoring project progress, which includes budget and schedule documents. See Section ) PM schedules cover-up inspections, substantial completion inspections (completed as part of Construction Phase). See Section ) Delivery team conducts substantial completion walk of project and generates punch list. Planner reviews punch list for program compliance, way finding, and furniture items and issues and monitors resolution (completed as part of Construction Phase). See Section ) FPM Planner and PM agree on resolution of punch list and sign off on punch list as complete for final payments to vendors and contractor(s). 5) As built drawings prepared and received by FPM. See Section ) O&M manuals, training, and documentation received by UTMB and distributed to corresponding departments. See Section ) FPM Planner and PM conduct final debrief with Customer after delivery. Use Customer Agreement document (from Project Initiation) as agenda to verify that all project goals were met. See Section ) A/VPs conduct team meeting lessons learned from outcomes of final debriefs. 8.2 Document Retention and Archiving All projects must meet UTMB records retention or disposal requirements for all project files generated on any given project. The PM should consult with the UTMB Legal department before destroying project records Redline As Builts or BIM Model During the administrative closeout for document retention, the PM will need to ensure that the final as-built redline documents or BIM models are obtained from the contractor, prior to final payment to the contractor. The PM should complete the following steps to ensure redline documents are archived properly. 1. The CM/PM should verify incoming redline as-built documents to ensure all information is obtained from construction contractor and is correct. 2. The PM sends the redline as-built documents to the A/E supplier who will then provide their redlines into the as-built documents. 3. The A/E supplier submits the final as-built document package to the PM. 4. The PM provides the final document package to the FPM to update the as-built detail in the UTMB system. 5. The Team Coordinator ensures the redline documents are archived with the project files Project Documents The PM should work with the Team Coordinator to make arrangements for project archives. Upon completion of the project, the Team Coordinator will gather hard copy project files from the PM, CM, IM, and others, as needed, and compile them into the consolidated project file drawers. The project files will be stored in the BOF project office for one year, as noted by the UTMB records retention requirements. Generally, at a project s one-year warranty walk-through, the Team Coordinator will proceed with getting the project files archived for off-site retention at the UTMB records retention facility. To prepare the project files for offsite records retention, the Team Coordinator will log the files on the archives register and proceed with sending the files to the designated 58 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

67 Project Delivery Manual UTMB records retention location. These arrangements must include a process to destroy files after the required document retention period. Records are held for an additional 11 years at the UTMB records facility until final destruction. 8.3 Final Customer Assessment (TBD) All projects should have at least one Customer assessment, completed at or near completion of the work. Customer assessments are requested by management and coordinated by the PM to ensure the assessment is completed. Additional information on Customer assessments is described in Appendix G. 8.4 Closeout Phase Roles and Responsibilities During the Closeout Phase, the following roles will be involved. ROLE Customer Construction Manager (CM) Project Manager (PM) Interiors Manager (IM) Team Coordinator (TC) RESPONSIBILITY The Customer will provide final acceptance of the project space. CM will collaborate with the PM to confirm all final acceptance has been completed and documented for the construction work. The CM will review final incoming construction related invoices and confirm work is complete. The CM provides final project files to Team Coordinator for onsite archiving of project records. Person responsible to execute and manage the project closeout process. The PM works with the Team Coordinator to ensure all final invoice documents are processed and paid. The PM provides final project files to Team Coordinator for onsite archiving of project records. The PM is responsible to ensure project budget records accurately reflect all costs. The PM works with the Team Coordinator and BOF Finance to closeout any remaining funds on a complete project. The PM will participate in the Customer assessment debrief meeting and conduct a lessons learned session with BOF management and BOF PMs and CMs. Person responsible to: Complete the signage/room number Department Move Change Notification Memo Supply Planning with drawing that has new room numbers for L codes. Person assigned to a project to support the PM during project execution through project closeout (including records retention). Various responsibilities include: Contact vendors for outstanding invoices. Confirm and close all open purchase orders. Prepare project checklist to be included in closeout package. Notify team of closeout and collect all project files 59 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

68 Project Delivery Manual ROLE BOF Finance RESPONSIBILITY for archives. Participates in project closeout activities through to records retention. See Project Closeout Procedure in Appendix D for additional information on responsibilites. Works with the PM and Team Coordinator to identify outstanding budget line items and processes Substantial Completion Notice package. Responsible to provide final Notice to Inactivate Project documentation to Capital Accounting. 8.5 Required Documentation for Closeout Phase Required documentation during the Closeout Phase consists of the following: Financial o Notice of Substantial Complete documentation Completed and Signed Notice of Substantial Completion Project Summary Report Selected Projects Financial Summary Project Detail Report Project Completion Check List (online form) o Notice to Inactivate Capital Project Project o Assessment Form - TBD o Customer Debrief Agenda o Customer Debrief Meeting Minutes Samples of the closeout forms are provided in Appendix A8. 60 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

69 9. PROJECT ORGANIZATION Project Delivery Manual Organization of various elements of a project can be a significant benefit or detriment to project management. Thoughtful planning on the part of the PM is essential to successful project organization. 9.1 Document Control Document Control is an important aspect of all projects and is a required best practice. Every project should have a document control system that includes the following features: A file system that is consistent for both hard copy and electronic documents A master filing index to facilitate document control setup Distribution control to prevent the unauthorized release of information, while ensuring that the appropriate project personnel have timely access Electronic files stored on a network shared drive Document File Structure The PM must ensure that a document file system for their project is set up using the structure bulleted below. Note: The suggested file structure is the starting point for all projects and can be edited for individual project scope, as needed. The PM/CM should utilize the master file index to indicate the file structure used on a project since all folders may not be applicable based on project scope. The master file index is used as a reference for project team members and others to quickly identify applicable files for a project and will confirm that no files are missing at project closeout and archiving. The master file index is provided in Appendix A10. The suggested file structure for all BOF projects is as follows: Master File Index Space Request (SR) o Correspondence o Budget/Schedule o Space Request Form Project Definition (PD) o Correspondence o Budget/Schedule o Customer Funding Information o Leasehold Information o Equipment Information o Site Investigations o Miscellaneous Project Initiation (PI) o Correspondence o Meetings (Agenda/Minutes) o Budget Final o Schedule Final o FISC Submittals/Approvals o Customer Agreement/Funding Validations o Project Setup Information Design Phase (Design) o Budget/Schedule 61 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

70 o o o o o o o o Change Orders Change Proposal Change Order Requests Change Orders Approved Correspondence Design Documents Schematice Design Development Construction Documents Engineering Estimate Invoices Meetings (Agenda/Minutes) Miscellaneous Procurement Bid Lists Bid Evaluations Bonds/Insurance Closeout Documents Invoices Miscellaneous Purchase Order/Contract Proposals Requisitions Sole Source Justification RFQ/RFPs Regulatory Agencies Specifications Studies o o o Construction Phase (Constr.) o As-Built Drawings o Change Orders Field Orders Change Proposals Change Orders Requests o o o o o o o o o o Communications Contractor Submittals Infection Control Risk Assessment Interim Life Safety Measures Invoices Interiors General Furniture/Fixtures Finishes Carpet/Flooring Window Coverings Artwork Signage Keying Meeting Minutes Move Coordination Permitting Project Delivery Manual 62 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

71 Project Delivery Manual o Procurement CSP Bid Lists Bid Evaluations Notice to Bidders Award Recommendation/Notice Purchase Order/Contract JOC Purchase Orders/Contracts Closeout Documents Invoices Miscellaneous Proposals Requisitions Sole Source Justification RFQ/RFPs o Progress Meetings o Reports Commissioning Daily Construction Inspections Nonconformances Quality Assurance Tests o RFI o Safety o Schedules o Specifications o Submittals o Substantial Completion/Closeout o Warranties The folder structure should be set up consistently between both hard copy format and electronic format to use the following structure: 1 st level folder o 2 nd level folder 3 rd level folder (subfolder of 2 nd level) 4 th level (subfolder of 3 rd level) Document Files Hard Copy Document Files The Team Coordinator is responsible to set up the hard copy project files as noted on the project s master file index. All hard copy documentation will be located in the project files located with the Team Coordinator. File labels should utilize the following label structure for all hard copy folders: 63 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

72 Project Delivery Manual Project Name 1st level folder name Project Number Subfolder name Subfolder names should contain all levels. For instance, Construction Interiors, General or Constr. Procurement JOC POs/Contracts Electronic Copy Document Files The Team Coordinator is responsible to set up the electronic file folders on the network shared drive consistent with the hard copy files, utilizing the structure as noted in The PM and other project team members are responsible to store any electronic files in the file folders as set up on the shared drive. Note: storing files on individual hard drives is not a best practice. It is acceptable for a PM/CM to temporarily save document files to their hard drive for work in progress documents, but all final documents (completed native file and approved final scanned files) should be stored in the project files on the shared drive. Both PMs and CMs are likely to receive decision point communications via . s containing this type of information can be archived in one of two ways. 1) The PM and CM can print a hard copy of the (s) and file in the hard copy file system. 2) The PM and CM can set up a.pst file, copy or move project related s to the specific.pst file and provide the entire.pst file on CD or USB drive, which will then be archived with the hard copy files. UTMB IT department should be contacted for instructions on setting up a project.pst files for documents. 9.2 Customer/Stakeholder Management All projects will have a Customer(s) and Stakeholders. The Customer is the person/entity who receives the final project deliverable and pays the invoices for project services. A Stakeholder is anyone who is directly affected by the project execution or plays a part in the project execution. There are instances when the Customer is also a Stakeholder who will be directly involved in project execution. In these instances, the PM should work with the Customer to identify the point of contact from the Customer s team/department who will act as the Stakeholder for that project. Identifying this alternate point of contact allows the Customer/Stakeholder to become involved at the level required without overburdening the Customer main point of contact. Each project is likely to have a unique Customer/stakeholder group since not all projects are the same size and of same nature. However, there is a common set of Stakeholders for all projects that must be engaged on the project. These Stakeholders include: EH&S IT Property Services Utilities Purchasing Capital Accounting 64 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

73 Project Delivery Manual Examples of other Stakeholders include: Employees of department affected by work Nursing team of area where work is being conducted Doctors who use/work in area where work would be conducted Note: It is a suggested best practivce to identify the project stakeholders early on in the life cycle of the project, but no later than Project Definition and Project Initiation. Inclusion of stakeholders during project development could save substantial amounts of rework or changes farther into the project. 9.3 Project Kick-off and Goal Alignment The kickoff meeting is an excellent forum to set precedents and make a lasting impression on the Customer and your project team. The kickoff meeting will help establish relationships that will be needed throughout the project, and a good start will help ensure success. The initial Customer kickoff meeting introduces the project team to the Customer, confirms the goals and objectives of the project, and identifies individuals from both entities (project team and Customer) who will play a role in meeting these requirements. The meeting is also a good venue to determine Customer preferences, communication styles, and other nuances essential for customer satisfaction. Additionally, the kickoff meeting with the Customer produces Customer Agreement that aligns the goals of the project team and Customer. It will ultimately be the guiding document for how the project will be executed (scope, budget, schedule requirements). The internal kickoff meeting is a project team meeting for the PM to review the project requirements, organization, and plan for how the project team will execute the scope on budget and schedule. The timing sequence of the meetings is provided in the respective project phase sections of this manual. As a required best practice, any/all meetings should utilize the meeting tools as described in Section Project Reporting Communication on any project is key to its success. The PM should ensure that all Stakeholders and Customer(s) are engaged early on the project by setting a pattern of open and frequent communications, which includes routine project reporting. Communications with and between the people/entities responsible for execution ensures that all parties are actively involved and engaged in meeting the project s end goal. All Project Managers, regardless of the size of the project, will always maintain the following MINIMAL documents as part of their day-to-day project reporting and meeting records: Project Status Report (PSR) including the funding sheet and the budget tracking sheet Critical Path Method (CPM) Schedule in either Excel, MSProject or other scheduling software (i.e. Primavera, Suretrack) Meeting Agenda all project meetings shall have an agenda Meeting Minutes trackable to each agenda and meeting Action Log updated on a regular basis, indicating open action items, responsible parties, and due dates The following subsections give the PM guidelines on reporting and tracking using the above noted 5 required tools. 65 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

74 Project Delivery Manual Cost Implementing cost control systems early in the life of a project will increase the chances of overall project success. Good cost control systems help in many ways, but most importantly, they provide decision makers with timely and accurate information necessary to make daily business decisions. They also prevent unauthorized commitments and expenditures from impacting a project s bottom line. Additional information on Budget Development is contained in Section Schedule Project management means having schedule control, not merely having a schedule. To implement an effective schedule control system, the PM ensures that the schedule is updated, measured, analyzed, and enacted in a timely manner. The process begins by verifying that the schedule (durations, relationships, resources, etc.) is valid and achievable. The PM must then implement a process to update and analyze the schedule at least monthly. Schedule risks must be identified so the project team can focus on activities that pose the greatest threats or present the greatest opportunities. Action plans must be developed and implemented. Additional information on Scheduling is contained in Section Project Reviews All BOF projects are subject to monthly project reviews. Project reviews provide information to the management team regarding the state of the project. Projects also receive constructive input from the collective experience of the management team. If a member of the review team can assist the project by visiting the site or the Customer or by taking some other action, the project review provides a great opportunity to make such a request. BOF conducts project reviews the last Thursday of every month. The project review session is attended by multiple departments and BOF management teams. To prepare for the project review session, the PMs attend a practice review the last Tuesday of the month. The standard project review covers the following topics: Project Introduction Safety Program & Performance Quality Program Contract Overview & Performance Challenges, Issues, Concerns Project Execution Milestone Reporting Project Financial Overview 9.6 Customer Status Reports The Customer Agreement should typically specify Customer meeting and reporting requirements and provide specific instructions for certain types of notifications. However, the Customer Agreement may only provide the minimum required communications. In general, a much higher level of interaction and communication between the PM, project team and the Customer may be expected. Ultimately, the appropriate level of communication desired depends on the individuals involved, and the best approach to determine this level is simply to ask. Most Customers want to know everything that is happening on the project, while some want the PM to filter out a given level of daily issues, and others want most information to flow through 66 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

75 Project Delivery Manual their staff. It is important for the PM to understand which type of Customer they have and communicate accordingly. Most Customers understand and accept that projects have difficulties and challenges, but few Customers tolerate not being told about difficulties promptly and directly by the PM. Difficult issues or problems are particularly hard to discuss; when they arise on a project, it is essential that all PMs be able to discuss them in an open, honest and professional manner. PMs should utilize the five required reporting tools to status the project for their Customer. Project Status Report (PSR) including the funding sheet and the budget tracking sheet Critical Path Method (CPM) Schedule in either Excel, MSProject or other scheduling software (i.e. Primavera, Suretrack) Meeting Agenda all project meetings shall have an agenda Meeting Minutes trackable to each agenda and meeting Action Log updated on a regular basis, indicating open action items, responsible parties, and due dates 67 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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77 10. PROJECT FINANCES Project Delivery Manual 10.1 Establishment of Project Number(s) Project budgets are initially identified during the Space Request Phase and further developed during the Project Definition Phase. The detailed project budget is approved, including funding validation, during the Project Initiation Phase. Once the budget is final approved (FISC approval for all projects over $10,000), the PM is responsible to get a BOF project number established and submit the approved Capital Commitment Form document package to the finance department to obtain PeopleSoft Chart Field String(s) (CFS) established for the budget funding line items. Additional best practice information for cost control is described in Section 15, Budget Development and Control and the corresponding Appendix I. Generally, the process flow for project finances is as presented in Figure Figure 10.1 Project Setup Process Flow Budget Developed Funding Determined and Validated by Requesting Department FISC Approval of Project/Funding Approved Budget Capital Commitment Document Package Submitted Project Initiation Form completed Project set up with PeopleSoft CFS based on budget funding BOF Project Number Created Project Summary Reports Budget Development A ROM budget is usually included as part of the Space Request Form. If a budget is not initially provided, the PM and FPM Planner work together during the Project Definition Phase to develop a ROM which is further refined during the Project Initiation Phase. The PM should enlist the Design and Construction team to provide support during the final budget and estimate development in the Project Initiation Phase. Once the final budget is developed, it becomes part of the Customer Agreement documentation. The Customer Agreement confirms the Customer s acceptance of the project budget as well as identifying/validating the funding source for the project. 69 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

78 Project Delivery Manual The project budget, as approved by FISC (over $10,000), becomes the baseline budget by which progress reporting is generated Funding Sources and Approvals All projects will have a funding source. Funding sources generally include: Local funds FEMA Bonds (TRB) PUF LERR Other The Customer is responsible to identify the funding source(s) for their requested project. Once a PM is assigned to an incoming project request (via Space Request form process), the PM should ensure the funding source is identified by the Customer as part of the Customer Agreement meeting and approval documentation. If the Customer has not identified the funding source, the PM should escalate the issue to the BOF AVP Design and Construction for further support on the issue. The funding source should be identified and validated prior to the final FISC approval of the project Payment Process The approved budget is used to validate all incoming project expenses for payment processing. Once a project is established and proceeds into execution (Design or Construction phase), a supplier is procured to complete the work. Regardless of the type of procurement issued, the following steps are completed to ensure contracted suppliers are paid and costs are processed against correct project and funding line items. 1) Requisition for the services is submitted. The requisition is entered into the UTMB system by the Team Coordinator who ensures the billing/payment instructions are correctly entered for the encumbrance by commitment of approved funds. 2) Purchasing issues a Purchase Order to supplier with billing/payment instructions. 3) Supplier begins work and subsequently submits invoice(s) per PO instructions. 4) Invoice received and reviewed by PM/CM to confirm PO balance, verify CFS for payment of invoice and ensure HSP PAR is attached, when applicable. 5) PM/CM/IM approves invoice for payment. 6) Prior to sending invoice to accounting, the TC reviews PO in PeopleSoft to confirm funds are currently available to pay invoice and determine line item number from which to pay. 7) TC logs the invoice and submits approved invoice to Capital Accounting for final payment processing. A copy of the invoice with the HSP PAR is sent to the HUB coordinator, when applicable. 8) Capital Accounting creates PeopleSoft payment voucher. 9) Payment issued to supplier within 30 days of receipt of valid invoice. 10) TC routinely reviews payment status on logged invoices and follows up for payment, as needed. Note: The PeopleSoft voucher is in direct relation to the supplier s invoice. The supplier s invoice should be in direct relation to the PO that was issued for the work. The PO has a direct relation to the requisition which was entered based on the approved project budget. If there are discrepancies between any relation along the process, a Match Exception Report will be 70 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

79 Project Delivery Manual generated and the PM will need to address and correct the issue prior to payment being processed. Information for purchasing and accounting contacts is provided in Appendix J. Figure 10.2 presents the payment process flow. Figure 10.2 Payment Process Flow Approved Budget entered into PeopleSoft and BOF Project Database Requisition with billing/payment instructions entered Purchase Order Issued with Billing/ Payment Instructions Invoice Received and PM Reviews Procurement Process to identify/ contract supplier Supplier Begins Work Invoice approved for payment? Yes Submit approved invoice to Capital Accounting for payment No Submits Invoice per PO billing instructions Identify reason for rejected invoice and address PeopleSoft Payment Voucher Created Change Order process Supplier corrects invoice and resubmits Payment Issued for Invoice Job Cost Review The PM is responsible to review and validate all project invoices against the project budget and PeopleSoft CFS. Upon receipt of a supplier invoice, the PM reviews the invoice to ensure the charges agree with the work that has been completed to date and that the invoiced amounts are in alignment with the contract. Upon approval of the invoice, the invoices are submitted to the accounts payable department for final processing. If the PM identifies an issue with the invoice, he/she should determine if the issue is due to incorrect billing from the contractor or if the issue is due to a change order not processed or needed. The PM should take appropriate action based on the determination Project Status Updates During the life of the project, the PM is required to maintain accurate and up-to-date PSR on each project with emphasis on accuracy of funding, budgets, encumbrances, and expenses. PMs will need to post and accurately update budget balances on a regular 30-day basis, or as change occurs. 71 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

80 10.4 PeopleSoft Project Cost (TBD) Project Delivery Manual UTMB is in the process of identifying and creating a PeopleSoft Project Cost module that will eventually be used campus wide and for all BOF project finance use. Additional information on this item will be provided in future revisions of this manual. 72 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

81 11. HEALTH, SAFETY, ENVIRONMENT Project Delivery Manual Effective HSE management results in a win-win-win situation for BOF, our project team members, and our Customers. Emphasis on health and safety affects every employee, and every BOF project. The importance of safety in all activities cannot be overemphasized Roles and Responsibilities Project Manager The PM is accountable and responsible for developing and implementing an appropriate and effective HSE plan for their projects to ensure the health and safety of employees, contractors, and all personnel associated with a project. Key Support Functions Project team managers provide essential support in developing and administering safety programs. Construction managers, stakeholders, and other Contractor supervisors also support the implementation of the program Working in a Healthcare Environment Working in a healthcare environment involves additional safety measures besides the standard construction safety processes. UTMB projects must additionally account for the following National Fire Protection Association (NFPA) regulations: NFPA 99 establishes criteria for levels of health care services or systems based on risk to the patients, staff, or visitors in health care facilities to minimize the hazards of fire, explosion, and electricity NFPA 101 The Life Safety Code is the most widely used source for strategies to protect people based on building construction, protection, and occupancy features that minimize the effects of fire and related hazards. Unique in the field, it is the only document that covers life safety in both new and existing structures. Provisions are included for all types of occupancies, with requirements for egress, features of fire protection, sprinkler systems, alarms, emergency lighting, smoke barriers, and special hazard protection Per Occupational Safety and Health Administration (OSHA), the NFPA and the Joint Commission on the Accreditation of Healthcare Organizations (JCAHO) the following Interim Life Safety Measures are required when performing construction work in occupied buildings: Non-combustible partitions between the work area and the occupied area-this is usually accomplished by the use of temporary sheetrock walls on metal studs. Walls must go from deck to deck and made out of a previously UTMB-approved material. See a UTMB construction manager for more details. Contractors must have their own fire extinguishers in the work area and have workers trained in their use. Exits from the construction area must be kept substantially clear and useable and access to the area by emergency responders must be maintained. Fire alarm pull stations and extinguishers may not be blocked. Construction debris (e.g. trash) must be cleaned/removed regularly; at lest daily. Combustibles such as wood and paper must be kept to the lowest quantities feasible. Fire drill conducted twice per quarter (UTMB conducts 1/quarter in healthcare areas). Additional safety precautions as applicable per NFPA and UTMB. UTMB audits construction work sites for compliance on a daily basis and will provide feedback where necessary. Not all measures are necessarily employed. 73 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

82 Project Delivery Manual UTMB utilizes a Hot Work Permit system for any work that creates an open flame, sparks or otherwise generates significant heat perfonned inside a building or within 30 feet of combustible materials. Where construction involves the generation of dust or otherwise may set off a fire alarm system, the UTMB Alarm Deactivation process must be followed. Where construction involves working in an area with asbestos containing materials, proper established asbestos containing materials removal procedures must be followed. Non-compliance with the above may result in the delay of your project. Additionally, if an alarm system is inadvertently activated by construction activities, the contractor may be financially liable. Details of the above and questions about any of the above should be obtained from/directed to a Construction Manager (your UTMB contact person) Managing Contractor Health, Safety, and Environment HSE standards apply to everyone working under UTMB direction, including our employees and contractors. However, UTMB does not develop safety programs or detailed work procedures for our contractors. Rather, our contract agreements must include language that clearly defines UTMB s general requirements for contractor health, safety, and environment programs. HSE requirements should, as a best practice, include the use of two-week look-ahead meetings, AHAs, and other zero-incident techniques. See Appendix E for details on HSE best practices. As part of project management activities, the PM and/or CM should routinely perform audits of the Contractor s work practices to ensure that the work is conducted in compliance with contractual requirements. Project managers must understand that UTMB can be held liable despite contractual and regulatory requirements that obligate the contractor to be responsible for its workers safety. During the Construction Phase, the CM should bring potentially unsafe situations to the attention of contractors and require the contractors to take immediate corrective actions. One of the fundamental responsibilities of PMs/CMs with respect to contractor safety is to ensure that all parties clearly understand exactly who is responsible for what. Coordination is the key to eliminating gaps in safety management Project Safety Plan Contractor The Project Safety Plan (PSP) establishes safety goals, objectives, organizational structure, roles, responsibilities, and accountabilities for a project to ensure health, safety, and environment receive top attention and priority. Construction agreements should contain language requiring contractors to submit their PSP prior to the start of construction. It is the responsibility of the proposal evaluation team to review and confirm the Contractor-supplied PSP meets the project requirements PSP BOF Generated (TBD) For major projects managed by BOF, the PM should consider creating a PSP prior to the start of the project to ensure any/all HSE requirements are addressed and communicated to all project team members, stakeholder, and Customer(s). See Appendix E for additional information on development of a Project Safety Plan. 74 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

83 Project Delivery Manual 11.5 Activity Hazard Analysis The activity hazard analysis (AHA) is an important aspect of the HSE program. AHAs are used to identify project hazards and communicate the work techniques required to mitigate these risks. AHAs are intended to identify and eliminate or mitigate hazards or potential accidents associated with specific tasks performed on a project. They help workers focus on specific hazards before they engage in the activities that create those hazards. AHAs can also be used as a planning tool to raise awareness of upcoming potentially hazardous stages of work. The PM/CM should include the use of AHA in the contract agreement requirements for construction contractors. Additional information on developing AHAs for a project are detailed in Appendix E Incident and Near Miss Reporting The investigation and reporting of all significant safety, health and environment incidents is an essential component of a HSE program. All significant incidents should be reported within four (4) hours of their occurrence. Any fatality or incident resulting in the hospitalization of three or more employees must be reported to OSHA within eight hours. Some states have more stringent reporting requirements, and the PM must be familiar with those local reporting requirements. These requirements should be identified in the PSP, whether contractor generated or BOF generated. Additional information on incident and near miss reporting and investigation best practices is provided in Appendix E. 75 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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85 Project Delivery Manual 12. RISK MANAGEMENT Project risk is typically described as a measure of potential obstacles to achieving overall project objectives within established cost, schedule, or technical constraints. Project risk management is the process of planning for, identifying, analyzing, responding to, and monitoring project risk to minimize the probability and consequences of events that could be adverse to project objectives and outcomes. Well-executed risk management processes can help the project manager avoid problems that could impact cost, schedule, and technical performance. An awareness of, and ability to identify, project risks is an essential activity at all stages of a project. One of the first things a project manager should do is foster a risk management orientation that ensures that the attention of all project team members is directed at maximizing opportunities and minimizing hazards throughout the project. The risk management approach is central to all project management activities, including the following: Planning the project Organizing and structuring the work Developing management systems Creating project procedures Allocating resources Managing time This section provides an overview of the best practice approach to identify, analyze, and mitigate project risks. Details for each step in the risk management process are contained in Appendix F Risk Management Process Formal risk assessments and/or risk management plans provide many benefits and should be incorporated into every project. Completing the risk assessment at an early stage (preferably during the Space Request Phase and Project Definition Phase) will help build cohesion among team members at the start of a project. In addition, team members who participate in the risk management process (see Figure 12-1) take ownership of risks throughout the life of the project. The process also provides an open forum in which the team has the opportunity to express concerns about various aspects of the project before problems arise. The risk assessment also focuses the PM and project team on those events or activities that have the greatest chance of impacting the success of the project. Figure 12-1: Risk Management Process Five Steps to Risk Management Implement and execute the control plan Perform a quantitative analysis Develop mitigation plans Perform a qualitative analysis Identify potential project risks Upon project initiation, the PM reviews the risk assessment that was conducted during the Space Request or Project Definition Phase of the project. If the PM determines that the assessment requires further development to ensure the control of project risks, further risk assessment activities should be undertaken immediately. 77 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

86 Project Delivery Manual 12.2 Risk Assessment Assessing the risks on a project is one of the first critical steps a PM should undertake to ensure the success of the job. Risk assessment should include risks associated with the following types of risks: Project Execution Risks, Pre-Construction Risk Assessments, Regulatory Compliance e.g., Interim Life Safety, Infection Control. It is a Life Safety requirement (see NFPA 99), in the Environment of Care, for any facility alteration in an active patient care environment to have a formal Infection Control Risk Assessment performed prior to any work conducted. The ICRA should be done in concert with the responsible Property Services facility manager to ensure that a complete understanding of potential impacts, risks, and mitigation are documented and applied. The risk assessment checklist (provided in Appendix F) should be utilized at the onset of a project. This checklist, once completed, will provide the PM with a quick reference as to the low, medium, and high risks for any given project. Based on the risk levels, the PM should then take further action, as needed, to mitigate the risks. 78 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

87 13. QUALITY Project Delivery Manual 13.1 The Quality Management System (QMS) Not all projects require a project-specific quality program; in many cases, the standard UTMB policies and procedures suffice. However, some contracts require a project-specific quality program as a project deliverable while others contain more rigorous quality requirements than those contained in individual procedures. In these cases, the PM should implement and document a project-specific quality program. Regardless of whether a quality program is project specific or uses the UTMB standard QMS, the PM should ensure that all project team members are aware of the quality requirements for any given project. Even a project with a presumed low risk of quality problems must focus on quality. Every PM is responsible for making quality part of the project execution. Project Managers implement systems (or processes) to ensure that all contractual requirements are met and to provide for continual improvement of work processes. Key ways to follow through on this is to implement the Plan-Act-Check-Excel process. This process includes actions such as implementing peer reviews, performing QC checks on deliverables (e.g., reports, specifications, calculations, estimates, and drawings), utilizing experts from key departments who apply the policies and procedures for their disciplines (e.g., Procurement, HSE, Utilities, etc.) to select reliable suppliers and subcontractors, and implement process control oversight to confirm compliance with agreed-to requirements. Project managers also achieve these goals by establishing and ensuring the continuous application of quality objectives, use of audit results, analysis of measurement, identification and implementation of corrective and preventive actions, and management reviews. Additional information regarding quality tools can be found in Appendix G Quality Plan, Act, Check, Excel The information contained in this section provides basic information for the various tools and techniques PMs can utilize to ensure consistency in meeting the overall UTMB quality policy on every project Plan The first step for implementing quality on any project is to plan for quality. Planning includes executing the following types of actions during the project life cycle. Budget for quality on the project. Establish use of quality procedures on project and ensure quality requirements are part of overall project requirements. Select qualitifed suppliers. Prepare inspection and test plans or ensure contractors have plans approved and implemented. Prepare measuring and test equipment (MT&E) control plan or ensure contractors have plans approved and implemented. Establish performance criteria for project (i.e. project reporting metrics of meeting budget, schedule, scope, percentage of rework required, client feedback reports, etc.). 79 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

88 Project Delivery Manual Act Once the quality processes have been defined for a project, the project team should execute the work ensuring that quality objectives and requirements for the project are met. During project execution, the quality actions a PM and project team should conduct include the following: Implement an orientation to project team, suppliers, stakeholders, or others who may be involved in completing a portion of the work. Monitor implementation and compliance to established quality processes and procedures. Take corrective action, as needed, and eliminate root cause deficiencies. Maintain document and quality records Check The quality checking step is implemented to monitor and measure the scope of work deliverables against established performance criteria, objectives, and requirements via independent checks, reviews, observation, measurements, inspections, and tests; and results are documented. The check process includes the following types of actions: Conduct internal checks and reviews of technical and other deliverables prior to submittal. Track and resolve external comments. Verify procured work products. Monitor subcontractor and supplier onsite and offsite work activities, products, and services. Inspect and test self-performed construction activities Excel The excel step involves reviewing feedback from audits, management reviews, internal (success stories) and external (client feedback) sources and implementing measures to continuously improve overall performance. During this step, the project team takes the following actions: Conduct project audits against established processes and implement corrective and preventive actions, as needed. Participate in routine management reviews with current and accurate project performance data. Implement project-specific success stories and provide input for lessons learned that can be used throughout the BOF organization. Obtain client feedback and take action, as appropriate. 80 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

89 14. SCHEDULE DEVELOPMENT AND CONTROL Project Delivery Manual A good project schedule is one of the most important tools in creating a successful project by keeping all project team members aware of significant deadlines, reviews, and project events based on contractual completion dates. The schedule serves as a management reporting tool as well as an implementation tool to help get the work done on time. The schedule should contain activity durations, interdependencies, and constraints that help to identify conflicts and bottlenecks. When completed, the schedule produces a realistic and achievable timetable for executing the work. The schedule is also one of the most important tools in managing changes on the project. Because the activities in the schedule are tied together with logical relationships, the schedule allows the PM to accurately evaluate changes from the plan and identify the resulting impacts to time and resources throughout the entire project lifecycle. The schedule also provides the PM with a tool to evaluate alternative execution strategies to meet business objectives (e.g., reduce duration or costs) by adjusting resources and logic. Additional information on schedule development and control is provided in Appendix H Approval of Baseline Schedules The FPM Planner generally provides a basic milestone schedule for the project during the Space Request Phase. It is further developed and detailed in conjuction with the PM during the Project Definition Phase. The baseline schedule is developed during the Project Definition phase and approved during the Project Initiation Phase during the Customer Agreement meeting. Contractual requirements and overall execution strategy drive the development of the schedule. During the review and approval process, the PM, or delegate, provides documentation of the key points that form the basis of the schedule to ensure that all parties have a mutual understanding and common expectations Schedule Control Project management means having schedule control, not merely having a schedule. To implement an effective schedule control system, the PM ensures that the schedule is updated, measured, analyzed, and enacted in a timely manner. The process begins by verifying that the schedule (durations, relationships, resources, etc.) is valid and achievable. The PM must then implement a process to update and analyze the schedule at least monthly (or more frequent, as driven by project scope). Schedule risks should be identified during the Space Request and Project Definition Phases so the project team can focus on activities that pose the greatest threats or present the greatest opportunities. Action plans should be developed and implemented Schedule Reporting Project managers are required to maintain and provide the project schedule as part of the routine project reporting requirements. Project reporting includes progress reporting with both BOF management and the Customer. Schedules must also be provided as part of routine project meetings with the contractors, Customer, or BOF management. 81 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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91 Project Delivery Manual 15. BUDGET DEVELOPMENT AND CONTROL 15.1 Budgeting Basics Developing a sound project budget depends on knowing and understanding the relationship between the defined scope of work, the project estimate, and the negotiated contract value. Additional information on budget development and cost control is provided in Appendix I. Figure 15.1 presents a typical budget development flow diagram. Figure 15.1 Typical Budget Development Process Flow Define Scope of Work from contract PROJECT ESTIMATE Estimate Resources to accomplish Scope of Work CONTRACT VALUE (Negotiated) PROJECT BUDGET Negotiated Contract Value by Scope Task Item Key terms used in this section are summarized below. Budget Contract Value Internal Contingency Project Cost Estimate The budget is a tool used to plan and manage the execution of the work. The contract value is the agreed-upon amount that a Customer will pay for the services defined in the SOW. This amount includes all costs as well as profit or loss. Contingency values are part of budget, but they have been set aside to protect the project from risks associated with the work. Contingency is considered a project cost. The project cost estimate is a quantitative assessment of all resources necessary to execute a project s complete scope of work. The project cost estimate includes a base number and a modifier to indicate accuracy (e.g., +10% / 5% ). The estimate is developed before the contract value or winning price is determined. It may include escalation and contingency, as appropriate Budget Detail Budgets are initially obtained during the Space Request Phase and further developed and finalized during the Project Definition and Project Initiation Phases prior to entry into UTMB s cost system. The budgets should be broken down into an appropriate budget line items that can be linked back to project scope items Approval of Baseline Budget The baseline budget is the budget for the project that is approved by the FISC and input into Peoplesoft by CFS Budget Reporting Project managers are required to maintain and provide project financial reports as part of routine reporting requirements which includes progress reporting with both BOF management and the Customer. 83 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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93 Project Delivery Manual APPENDIX A FORMS PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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95 A1 Sample Master Project Management Checklist Project Delivery Manual PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

96 PROJECT MANAGEMENT PROCESS CHECKLIST MASTER STEP AND PROCESS GUIDE locally managed projects (NON OFPC) Project Name: Proposed Location/Building: SPACE REQUEST. This is the initial request for space changes or new space on the campus. It may come as a Space Request through Portfolio Management or a work order through In House Construction. The space request requires approval by Portfolio Management. A planner is assigned to track the request Item Tasks Init. Of Lead Task Notes i. Space Request approved for analysis by Portfolio Management FPM 1.01 Meeting with customer and recommended space plan FPM 1.02 Customer's desired occupancy date determined FPM 1.03 Preliminary scope capture: changes in space, relocations, added space FPM ii. If requested, ground floor, change in space between EVPs approved by the Facilities & Infrastructure Steering Cmte. FPM this is for use only - no project data yet iii Portfolio Management planner evaluates and recommends solution FPM iv. Funding for such studies needs to be identified by department. If needed Portfolio Management hires architect for preliminary study on certain projects. >$10,000 needs FISC approval. FPM/D&C v. FYI. to D&C and review of the study and ROM cost. FPM/D&C vi. Based on the study or in house evaluation the recommendation is made. FPM vii. Space Request approved for action by AVP Port. Mgmnt. And VP IT FPM 1.0 First Stage: PROJECT DEFINITION. May be a formal architectural program, study, or a less formal product based on a customer meeting. Planning has met with customer to ascertain space needs and purpose of project. Projects may be in existing or occupied spaces, or repurpose or reopen vacated spaces; may require new lease space; or, major capital construction. Portfolio management is responsible for the development of the needs and should explore business plans and funding capability, especially for studies or a formal engineering evaluation of the space. Task notes: A project manager is assigned to complete this stage and IN COLLABORATION with the planner(s), adds detail to the program requirements. This includes developing a realistic and comprehensive baseline budget and baseline schedule Tasks Init. Of Lead Task Notes 1.04 Approved space request and/or project requirement received by D&C FPM 1.05 Assign Project Manager or Construction Mgr. as required D&C 1.06 D&C confirms and provides ROM project cost (budget) on experience or SF basis D&C 1.07 Customer's funding based on Total Project Cost ROM identified D&C PM or CM hires an architecture firm to get SD-CD plans for budgeting. D&C 1.08 If LEASEHOLD: FPM- Real Estate goes through a checklist of requirements from D&C, so their concerns are addressed in lease terms If leasehold, FPM- Real Estate collaborates with D&C PM. PM recommends delivery, design or construction comments as needed Lease is executed. FPM Once lease is executed the project is managed by D&C as any other construction project. FPM will be involved in programming and D&C PM will lead the SD, DD, CD and CM for the project. D&C FPM/D&C FPM/D&C Portfolio Management manages the lease negotiation 2.0 Stage Two: PROJECT INITIATION. The project manager aligns both budget and schedule with customer expectations. Core stakeholders are alerted to participation in scope and schedule development. Planner and Project Manager meet with customer to present plan and seek approval to proceed; or, refine items based on dialogue prior to starting work. Planner and project manager meet with leadership for approval of approach, certification of funding, and prioritization. The work product in this stage is completedwith the reviewand approval of the project by the Facilitiesand and Infrastructure Steering Tasks Init. Of Lead Task Notes 2.01 Detailed Construction and Total Project Cost Estimates completed D&C 2.02 Baseline delivery schedule completed incl. approvals by EVP and FISC D&C 2.03 Decide on delivery method (JOC, bid, etc.) D&C Prepare the draft FISC Approval Slide (may be used for introduction of project at FISC as part of 2.04 two-step approval process). FPM reviews the project for conformance to standards. FPM/D&C 2.05 Inform core stakeholders of planned project scope, schedule and budget D&C IT, EH&S, Property Services, Utilities, Procurement 2.06 Schedule a Customer Acceptance Meeting FPM/D&C Portfolio management and Customer rep 2.07 Customer meets and accepts project scope, budget and schedule D&C Signed agreement copied and shared 2.08 Finalize FISC Approval Slide and confirm for FISC agenda FPM/D&C Approvals 2.11 Customer Approval (documented) D&C this is the "delivery contract with the customer" Funding Approval (validated prior to FISC if possible) D&C 2.13 FISC Approval (document through agenda and minutes) D&C 2.14 PM fills out "Project Initiation Form" and submits for BOF Approvals D&C 2.15 PM fils out Capital Commitment Form and submits for BOF Approvals D&C 2.16 Approved Capital Commitment Form Signed and Returned D&C 3.0 Stage Three: PROJECT EXECUTION/DESIGN: Planner and Project Manager collaborate through the Design Phase of the Project to ensure customer needs are embodied in the design product. PM assumes lead of all customer communications at the inception of design, and manages dialogue on reviews and approvals. Leadership reviews documents at the SD and DD completion phases for compliance with master plan objectives and customer business plan conformity. A 95% SD Site Plan review ensures site plan compliance with the campus Master Plan. Leasehold (build to suit) 95% SD Site Plan review ensures compliance with lease and business plan match to site utilization. 95% DD review ensures budget and scope are in conformance. Tasks Init. Of Lead 3.01 PM appoints architect from IDIQ or selects architect IAW RFQ process, informs planner D&C PM solicits proposal from A/E firm including cost and design schedule D&C PM works with coordinator to enter requisition, ensure funding, follow to P.O. D&C PM sets design schedule by phase with A/E team, including customer reviews and approval milestones consistent with delivery schedule PM and planner (oversight) meet with Interiors Manager on standard finishes incl. carpet, paint, furniture and window treatments using design guidelines and campus standards PM and planner (oversight) meet with Interiors Manager & Wayfinding Manager to integrate wayfinding and signage into design based on campus standards and design guidelines D&C D&C D&C Task Notes PM alerts Procurement of pending JOC, bid, or other delievry method for construction and provides schedelue and expected dates for pricing by JOC; or, bid and award schedule. PM and planner schedule and conduct(planner REVIEWS DOCUMENTS) 95% SD review of LEASEHOLD or BUILD-TO-SUIT projects for Site Utilization and business plan and lease conformity with VP, BOF. D&C D&C/FPM Must gain VP BOF approval before continuing design. 1 of 3

97 PROJECT MANAGEMENT PROCESS CHECKLIST MASTER STEP AND PROCESS GUIDE locally managed projects (NON OFPC) Project Name: Proposed Location/Building: PM and planner schedule and conduct 95% SD review of Site Utilization of green space projects for master plan conformity with VP, BOF and A/VP Portfolio Mgmt. PM forecasts 95% DD review and posts notices through Program Director, Construction to Monday Planning Forum calendar. Ensures drawings are distributed TWO WEEKS in advance of the review. PM and planner schedule and conduct (PLANNER REVIEWS DOCUMENTS) 95% DD review with VP BOF for approval of DD. Ensure program and DD are in synch, and that project cost is PM ensures all DD product is physically signed off by customer executive or empowered project representative prior to proceeding to CD. Includes documentation of customer changes or concerns with document and path forward. PM supervises of CD's thru 95% Review. C.M. IS APPOINTED NOT LATER THAN THIS STEP. PM ensures that TDLR is copied on drawing distribution by the AE team for reviews and tracks responses D&C/FPM D&C D&C D&C D&C D&C Must gain VP BOF approval before continuing design. Must gain VP BOF approval before continuing design. Document sign off by physical signature or Stage Four: CONSTRUCTION PROCUREMENT and QUALITY ASSURANCE. Project Manager leads through the Construction Procurement Phase of the Project to ensure customer needs are embodied in the delivered space. PM manages dialogue on reviews and approvals. Planner available for any planning related issues forcollaboration Tasks PM Confirm delivery method with Procurement; noramlly $> $500,000 will be a Competitive 4.1 Sealed Proposal; $< $500,000 can be J.O.C IF J.O.C. provide dcouments to J.O.C. for review and pricing IF J.O.C., select appropriate contractor IAW Healthcare or Academic/Research IF J.O.C., receive, review, and approve pricinging. Ensure sufficient time is built into schedeule for subcontract HUB priciing and selection for $cost > $100, Schedule NTP Weekly Job Meetings with customer. OAC. Agenda and minutes and issue tracking log If Bid. Documents to procurement. Review RFP for correct scope and detail If Bid monitor solictation. Ensure AE team responds to RFI's If Bid with procurement, prepare bid tabs and participate in selection process and award If Bid awrd and confrim price and schedule If Bid NTP and mobilize. Include laydown space management. 4.3 ILSM and ILSP 4.4 ICRA and Infection Control in Hospital Occupancy 4.5 C.A.N. Init. Of Lead Task notes: send CDs to Facilities Info Associate so that a background document to use at sub comp.is available and is also notified of the project whether JOC or bid. Need to capture changes implemented by In-House workorders as well. 5.0 Stage Five : CONSTRUCTION ADMINISTRATION AND CHANGE MANAGEMENT Project Manager ensures customer needs are embodied in the final product. Construction Manager is appointed for construction administration and field supervision of project work. Leadership reviews progress at regular intervals based on project size, cost, or complexity. PM ensures that equipment, furniture, way finding (signage) are ordered and scheduled for timely delivery. Interior Manager ensures furnishings and way finding/signage are consistent with campus standards and assist with review and approval. Project Manager and Interior Manager accompanies construction manager on punch list walkthroughs and confirms final space/project outcomes are in conformity to the original program. Customer communications surveys and debriefs are held throughout the process. (PM ENSURES THIS. PLANNER WILL CHECK THE 95% DD DOCUMENTS) Init. Of Lead Task notes: 5.1 OAC: agenda and minutes and tracking of issues D&C 5.2 Invoice administration D&C 5.3 Control of jobsite; hot works permits; above ceiling permits; firestopping of penetrations; ILSP; D&C 5.4 Badging and security access D&C 5.5 RFI's, submittals and shop drawings D&C 5.5 Collaboration with Property Services (deferred maintenance)(inspections)(shutdowns) D&C 5.6 Collaboration with EH&S and Epdemiology: ILSM and IC D&C 5.7 Change management - contractual D&C 5.8 Customer change management: funding and approvals D&C 5.9 Budget updates and schedule tracking D&C 5.10 Monthly progress reporting by PM to Executive Staff D&C 5.11 PM specifies and orders furniture, wayfinding, equipment IAW project scope. D&C 512Routine 5.12 inspections: Cover-up, above ceiling, pre- substantial completion and substantial D&C 5.13 PM and CM check fro TDLR review commenst and make sure AE team and contractor respond D&C 5.14 Plan, organize core stakeholders for substantial completion inspection and walk through D&C time of the Sub Comp to document space prior to Conduct and dcoument the Substantial Completion Inspection. Notify FPM Real Estate of date D&C 6.0 Stage Six: PROJECT CLOSE OUT. Substantial Completion is achieved and documented. All insepctions are complete. Retainage is released commeasurate with progress to final completion. All contracts and purchase orders are reviewed and closed upon final payments. Customer communications surveys and debriefs are held throughout the process. PM and A/VP Design and Construction distribute feedback forms and schedule 6.1 communications surveys. Original project Initiation Agenda provides basis for monitoring project D&C Conduct surveys and report on KPI. progress. Includes budget and schedule documents. 6.2 PM schedules cover-up inspections, substantial completion inspections. D&C Includes planner and users 6.3 Delivery team conducts substantial completion walk of project and generates punch list. Project Manager reviews punch list for program compliance, way finding and furniture items and issues and monitors resolution. D&C 6.4 PM and CM agrees on resolution of punch list and sign off on punch list as complete for final payments to vendors and contractor(s). D&C 2 of 3

98 PROJECT MANAGEMENT PROCESS CHECKLIST MASTER STEP AND PROCESS GUIDE locally managed projects (NON OFPC) Project Name: Proposed Location/Building: As built drawings prepared and received by Portfolio Management. CM hands over the as-builts to Information Associate at FPM for filing in EDMS. O&M manuals, training and documenation receieved for UTMB and distributes and accounted for. PM conducts final debrief with customer after delivery. Use original contract document from 6.7 project initiation as agenda to verify that all project goals were met. D&C 6.8 A/VP's conduct team meeting lessons learned from outcomes of final debriefs. D&C D&C D&C record documents must conform to UTMB CAD standards or they will be returned to PM 3 of 3

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100 A2 Space Request Phase Form Project Delivery Manual PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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102 Space Request Form Please complete this form and submit to Entity leader managing designee for signature. Send signed and completed form to Bob Brown and Royce Ann Sline Requestor s Name: Department Date Phone: Current Space: Use location Square Feet Describe Your Space Need: Action Options Requested (circle one): 1. Facilities Planning will proceed with limited, in house space programming (expending no outside funds) to get more information, such as budget, and come back to managing Entity designee for direction and funding as required. 2. Entity leadership provides budget and funding source to proceed with preliminary (limited) planning for the project. Project Manager is assigned, consultants hired, preliminary planning completed and Facilities Planning returns to the managing Entity designee with more information for direction. 3. Project is approved as presented, funding is provided, a project established and the work proceeds Department Head Approval: Name: Title date: I.S. designee signature: Name: Title date: VP Approval : Name: Title: date EVP Approval. Required for Actions 2,3 and change in use of space only: Name: Title: date Name: Title: A VP, Facilities Portfolio Mgmt date Kim McKay Budget: Funding Source

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106 Order of Magnitude Estimate Is this an Ike related request? Yes No Project Name: Date: Department: Customer: Building: Floor\room numbers: Prepared by: Project Justification: Project Description: Scope Order of Magnitude estimate Design Construction Equipment Flooring $ - Furniture $ - Subtotal 15% Total Order of Magnitude Estimate Duration of project after approval to proceed: Approved by: Date: Not Approved by: Date:

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108 A4 Project Initiation Phase Forms Final Scope Development Construction and Project Cost Estimates Baseline Schedule FISC Project Description (approval slide) Customer Acceptance Project Delivery Manual PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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110 ESTIMATE PREPARATION CHECKLIST 1. Locate the Estimate Sheet (lower left corner) 2. Enter Project Name 3. Enter Project Number, if known, otherwise enter TBD 4. Enter Project Description 5. Enter Project Square Footage 6. Go to Construction Line (17) pull-down and select type of construction 7. Go to Verify Unit Cost sheet (below) and verify square foot cost 8. Note construction cost 9. Go to A&E sheet 10. Find the Select Category pull-down and pick category 1, 2, or Go to that category pull-down and pick the level of construction 12. Go to the Calculator sheet and find your construction category and price level and enter your construction cost in the appropriate cell 13. Go back to the A&E sheet and verify that the proper percentage is indicated 14. Add a percentage for Supplemental Services, Additional Services, etc. as appropriate for your project. Also include an amount for Reimbursable Expenses 15. Go back to the Estimate sheet 16. Add number of days for Abatement Consultant 17. Go to the Asbestos Removal sheet and add square foot amounts in the appropriate rows 18. Go to the Computer sheet and add amounts as appropriate 19. Do the same for Telecom, Biocom, Flooring, Furniture, and Equipment sheets 20. Go back to the Estimate sheet 21. Add an amount for In-House Construction 22. Go down to line 26 and pick a type of window covering and enter the number of windows 23. Enter the amounts for keying, artwork, signage, and moving costs 24. The Miscellaneous Expense is a percent on the construction cost 25. Hit the print key, you re done 1

111 PROJECT NAME: PROJECT NO: BUSINESS OPERATIONS & FACILITIES CONSTRUCTION BUDGET ESTIMATE DATE: 13-Aug-14 PROJECT COST: PROJECT AREA: SF COST/SF: #DIV/0! DESCRIPTION QUANTITY UNIT TOTAL PRICE COST PROJECT DESIGN COST A/E (see "A & E" tab) Classroom, Office 1 LS ASBESTOS CONSULTANT DAY(S) $ ASBESTOS REMOVAL (see "Asbestos Removal" tab) 1 LS CONSTRUCTION (see "Verify Unit Price" tab) Research-Major Renovation SF $ CONSTRUCTION CONTINGENCY (sliding scale) 1 LS 10.00% IN-HOUSE CONSTRUCTION COMPUTER SERVICES (see "Computer" tab) TELECOMMUNICATIONS (see "Telecom" tab) BIOCOMMUNICATIONS (see "Biocom" tab) CARPET (See "Flooring" tab) FURNITURE (see "Furniture" tab) EQUIPMENT (see "Equipment" tab) 1 LS 1 LS 1 LS 1 LS 1 LS 1 LS 1 LS WINDOW COVERINGS Type: Solar Shades EA $ KEYING EA $55.00 ARTWORK EA $ SIGNAGE EA $ MOVING COST DAY/S $1, MISCELLANEOUS EXPENSES (sliding scale) 1 LS 10.00% PROJECT CONTINGENCY (sliding scale) 1 LS 10.00% TOTAL CONSTRUCTION RENOVATION COST ESTIMATE 2

112 ARCHITECTURAL / ENGINEERING PROFESSIONAL SERVICES FOR MINOR RENOVATION AND REPAIR ARCHITECT/ENGINEER FEE SCHEDULE FOR CCL PROJECTS Healthcare, Research and Special Education Facilities Classroom, Office and Other Buildings Dormitories, Garages and Warehouses MINOR RENOVATION $200K - $1M MINOR RENOVATION $200K - $1M MINOR RENOVATION $200K - $1M INPUT INPUT INPUT CCL $200, $255, $1,000, CCL $200, $875, $1,000, CCL $200, $255, $1,000, OUTPUT OUTPUT OUTPUT PERCENT 10.00% 9.93% 9.00% PERCENT 9.50% 8.66% 8.50% PERCENT 9.00% 8.93% 8.00% MAJOR RENOVATION $1M - $5M MAJOR RENOVATION $1M - $5M MAJOR RENOVATION $1M - $5M INPUT INPUT INPUT CCL $1,000, $1,450, $5,000, CCL $1,000, $2,265, $5,000, CCL $1,000, $1,450, $5,000, OUTPUT OUTPUT OUTPUT PERCENT 9.00% 8.89% 8.00% PERCENT 8.50% 8.18% 7.50% PERCENT 8.00% 7.89% 7.00% MINOR CONSTRUCTION $200K - $1M NEW MINOR CONSTRUCTION $200K - $1M NEW MINOR CONSTRUCTION $200K - $1M NEW INPUT INPUT INPUT CCL $200, $234, $1,000, CCL $200, $234, $1,000, CCL $200, $234, $1,000, OUTPUT OUTPUT OUTPUT PERCENT 8.00% 7.96% 7.00% PERCENT 7.50% 7.46% 6.50% PERCENT 7.00% 6.96% 6.00% MID CONSTRUCTION $1M - $10M NEW MID CONSTRUCTION $1M - $10M NEW MID CONSTRUCTION $1M - $10M NEW INPUT INPUT INPUT CCL $1,000, $1,234, $10,000, CCL $1,000, $1,234, $10,000, CCL $1,000, $6,221, $10,000, OUTPUT OUTPUT OUTPUT PERCENT 7.00% 6.99% 6.50% PERCENT 6.50% 6.49% 6.00% PERCENT 6.00% 5.71% 5.50% MAJOR CONSTRUCTION $10M - $15M NEW MAJOR CONSTRUCTION $10M - $15M NEW MAJOR CONSTRUCTION $10M - $15M NEW INPUT INPUT INPUT CCL $10,000, $12,345, $15,000, CCL $10,000, $12,345, $15,000, CCL $10,000, $12,345, $15,000, OUTPUT OUTPUT OUTPUT PERCENT 6.50% 6.27% 6.00% PERCENT 6.00% 5.77% 5.50% PERCENT 5.50% 5.27% 5.00% * Architect/Engineer Fee Schedule as adopted by the UT System Board of Regents on December 3, 1987 Calculator 3

113 PROJECT NAME: PROJECT NO: BUSINESS OPERATIONS & FACILITIES CONSTRUCTION BUDGET ESTIMATE - PROJECT DESIGN COST A/E DATE: 13-Aug-14 PROJECT AREA: SF DESCRIPTION QUANTITY UNIT TOTAL PRICE COST BASIC SERVICES Select Category: Healthcare, Research, Special Education Facilities Type: Major Renovation SF 8.89% 2 - Classroom, Office and Other Buildings Type: Minor Renovation SF 8.66% 3 - Dormitories, Garages and Warehouses Type: Major Construction SF 5.27% SUPPLEMENTAL BASIC SERVICES % FALSE ADDITIONAL SERVICES % FALSE FEES FOR CHANGES TO PROJECT SCOPE % FALSE FEES FOR CHANGE ORDER SERVICES % FALSE REIMBURSABLE EXPENSES 1 LS PROJECT CONTINGENCY (sliding scale) 1 LS TOTAL CONSTRUCTION PROJECT DESIGN A/E COST A & E 4

114 PROJECT NAME: PROJECT NO: BUSINESS OPERATIONS & FACILITIES CONSTRUCTION BUDGET ESTIMATE - ASBESTOS REMOVAL DATE: 13-Aug-14 PROJECT COST: PROJECT AREA: SF COST/SF: #DIV/0! DESCRIPTION QUANTITY UNIT TOTAL PRICE COST HARD CEILING DEMO SF $5.00 SPRAY ON FIREPROOFING REMOVAL SF $7.00 DUCT MASTIC REMOVAL SF $2.00 FLOOR TILE REMOVAL SF $2.00 FLOOR MASTIC REMOVAL SF $2.00 PROJECT CONTINGENCY 5.00% TOTAL ASBESTOS REMOVAL COST Asbestos Removal 5

115 PROJECT NAME: PROJECT NO: BUSINESS OPERATIONS & FACILITIES CONSTRUCTION BUDGET ESTIMATE - VERIFY UNIT PRICE DATE: 13-Aug-14 PROJECT AREA: SF DESCRIPTION QUANTITY UNIT TOTAL PRICE COST HEALTHCARE PATCH & PAINT SF $ MINOR RENOVATON SF $ MAJOR RENOVATION SF $ BUSINESS PATCH & PAINT SF $85.00 MINOR RENOVATON SF $ MAJOR RENOVATION SF $ RESEARCH PATCH & PAINT SF $95.00 MINOR RENOVATON SF $ MAJOR RENOVATION SF $ Verify Unit Price 6

116 PROJECT NAME: PROJECT NO: BUSINESS OPERATIONS & FACILITIES CONSTRUCTION BUDGET ESTIMATE - COMPUTER SERVICES DATE: 13-Aug-14 PROJECT COST: PROJECT AREA: SF COST/SF: #DIV/0! DESCRIPTION QUANTITY UNIT TOTAL PRICE COST HARDWARE (Racks/Switches/Routers) 1 LS ACTIVATIONS EA $55.00 CABLING (Voice/Data) EA $ PROJECT CONTINGENCY 5.00% TOTAL COMPUTER SERVICES COST Computer 7

117 PROJECT NAME: 0 PROJECT NO: 0 BUSINESS OPERATIONS & FACILITIES CONSTRUCTION BUDGET ESTIMATE - TELECOMMUNICATIONS DATE: 13-Aug-14 PROJECT COST: $0.00 PROJECT AREA: 0 SF COST/SF: #DIV/0! DESCRIPTION 0 QUANTITY UNIT TOTAL PRICE COST New Data Connections EA $45.67 $0.00 New Instruments EA $ $0.00 Relocated Instruments EA $79.94 $0.00 Voice Line Cords EA $20.56 $0.00 Data Line Cords EA $11.42 $0.00 Test Tone and Lable EA $17.13 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 PROJECT CONTINGENCY 5.00% $0.00 TOTAL ESTIMATED TELECOMMUNICATIONS COST $ Telecom

118 PROJECT NAME: 0 PROJECT NO: 0 BUSINESS OPERATIONS & FACILITIES CONSTRUCTION BUDGET ESTIMATE - BIOCOMMUNICATIONS DATE: 13-Aug-14 PROJECT COST: $0.00 PROJECT AREA: 0 SF COST/SF: #DIV/0! DESCRIPTION 0 QUANTITY UNIT TOTAL PRICE COST Biocom EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 PROJECT CONTINGENCY 5.00% $0.00 TOTAL ESTIMATED BIOCOMMUNICATIONS COST $ Biocom

119 PROJECT NAME: 0 PROJECT NO: 0 BUSINESS OPERATIONS & FACILITIES CONSTRUCTION BUDGET ESTIMATE - FLOORING DATE: 13-Aug-14 PROJECT COST: $0.00 PROJECT AREA: 0 SF COST/SF: #DIV/0! DESCRIPTION 0 QUANTITY UNIT TOTAL PRICE COST Prices include removal of old flooring and floor prep Carpet (broadloom) SF $3.75 $0.00 Carpet (tile) SF $4.75 $0.00 VCT SF $2.00 $0.00 Sheet Vinyl - Standard SF $4.00 $0.00 Sheet Vinyl - Premium SF $5.50 $0.00 Solid Vinyl (Toli) SF $8.00 $0.00 Ceramic Tile - Floors SF $8.00 $0.00 Ceramic Tile - Walls SF $6.00 $0.00 Terrazzo SF $12.00 $0.00 $0.00 $0.00 If furniture needs to be moved as part of the work SF $1.00 $0.00 SF $0.00 $0.00 SF $0.00 $0.00 SF $0.00 $0.00 SF $0.00 $0.00 SF $0.00 $0.00 SF $0.00 $0.00 SF $0.00 $0.00 SF $0.00 $0.00 SF $0.00 $0.00 SF $0.00 $0.00 SF $0.00 $0.00 SF $0.00 $0.00 SF $0.00 $0.00 SF $0.00 $0.00 SF $0.00 $0.00 SF $0.00 $0.00 PROJECT CONTINGENCY 5.00% $0.00 TOTAL ESTIMATED FLOORING COST $ Flooring

120 PROJECT NAME: 0 PROJECT NO: 0 BUSINESS OPERATIONS & FACILITIES CONSTRUCTION BUDGET ESTIMATE - FURNITURE DATE: 13-Aug-14 PROJECT COST: $0.00 PROJECT AREA: 0 SF COST/SF: #DIV/0! DESCRIPTION 0 QUANTITY UNIT TOTAL PRICE COST Executive Office (EXC-1) EA $10, $0.00 Executive Office (EXC-3) EA $7, $0.00 Faculty/Manager Private Office (FS-1) EA $6, $0.00 Private Office (FS_2) EA $3, $0.00 Shared Office (FS-3) EA $7, $0.00 Freestanding Carrel 60 SF (FS-5) EA $2, $0.00 Manager Workstation 110 SF (WS-1) Wall Track EA $3, $0.00 Manager Workstation 110 SF (WS-1) Panel Hung EA $5, $0.00 Workstation with Guest Chair (WS-2 EA $4, $0.00 Workstation Carrel 60 SF (WS-6) EA $2, $0.00 Reception Area 120 SF (REC-1) EA $6, $0.00 Waiting Room Chairs EA $ $0.00 Guest Chairs EA $ $0.00 Task Chairs EA $ $0.00 Stack Chairs EA $ $0.00 Breakroom (per Person) EA $ $0.00 EA $0.00 $0.00 EA $0.00 $0.00 Misc EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 PROJECT CONTINGENCY 5.00% $0.00 TOTAL ESTIMATED FURNITURE COST $ Furniture

121 PROJECT NAME: 0 PROJECT NO: 0 BUSINESS OPERATIONS & FACILITIES CONSTRUCTION BUDGET ESTIMATE - EQUIPMENT DATE: 13-Aug-14 PROJECT COST: $0.00 PROJECT AREA: 0 SF COST/SF: #DIV/0! DESCRIPTION 0 QUANTITY UNIT TOTAL PRICE COST ICU BED EA $8, $0.00 PACU STRETCHER EA $5, $0.00 EXAM TABLE, STOOL, LIGHT EA $2, $0.00 TELEVISION/VCR (add $350 for TV cable) EA $ $0.00 COMPUTER/PRINTER (add $800 for flat screen) EA $4, $0.00 TELEMETRY LS $85, $0.00 FACSIMILE MACHINE (RICOH 3700L) EA $2, $0.00 CARTS EA $1, $0.00 COFFEE MAKER (Bunn VPLF) EA $ $0.00 ICE MAKER (Scottsman) EA $3, $0.00 CLINICAL SCOPES EA $1, $0.00 LARGE COPIER (60 cpm) EA $13, $0.00 PYXIS STATION (main, auxiliary, tower) EA $30, $0.00 IV POLES EA $ $0.00 SHARPS/GLOVE BOX EA $75.00 $0.00 TRASH CONTAINER EA $30.00 $0.00 PNEUMATIC TUBE (per station) EA $20, $0.00 EA $0.00 $0.00 EA $0.00 $0.00 LS $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 EA $0.00 $0.00 PROJECT CONTINGENCY 5.00% $0.00 TOTAL ESTIMATED EQUIPMENT COST $ Equipment

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124 SAMPLE FISC PROJECT DESCRIPTION Watchdog Monitoring System for Animal Areas The Watchdog system Server provides secure, real time and permanent data collection for differential pressure monitoring between rooms and corridors, monitor cold room temperatures, monitor drinking water levels and consumption, and has the availability for web based access for customers. This system will be installed in the MRB, ARC, Research Support Facility, and Research Facility. PROJECT DETAILS: Total Project Cost: $350,000 Architect: NA Contractor: Edstrom and Trevino Construction Completion: January 2011 Funding: Research CONTACT: Chuck S. Anderson, Project Manager (409)

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126 Project Delivery Manual Establisment of Project Number(s) Project Initiation Form Capital Commitment Form >$100K Capital Commitment Form <$100K Sample Capital Commitment document package Routing and Transmittal Slip Copy of FISC Approval (meeting minutes) Project Description (or FISC project slide) Project Summary Report Capital Commitment Form PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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128 Project Initiation Form Main Menu Screen

129 Project Initiation Form Information Entry Screen

130 Project Initiation Form Information Entry Screen

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132 UTMB Capital Initiative Commitment > $100K Purpose This form is intended to document the approval of funding for Capital Initiatives that have been approved by the UTMB Facilities Steering Committee and to authorize the establishment of PeopleSoft Project Accounts. Please fill out all of the following below and attach the detailed project budget with cash flow: Facilities Project Number: Facilities Project Name: Funding Source Amount PeopleSoft # (completed by Finance) Local funding: $ Sealy and Smith funding: $ TRB funding: $ Bond funding: $ PUF/LERR $ Other Gifts funding (please specify): $ Other funding (please specify): $ Total Project funding: $ Summary of work to be performed: UTMB Project Manager: Name Date: OFPC Project Manager: Approval Name Date: James G. Victor, Asst VP, Design & Construction, Business Operations & Facilities Date: Michael R. Shriner, MBA, AIA, VP, Business Operations & Facilities Date: Carolee A. King, JD, Senior VP & General Counsel Date: CC: 1) Matt Furlong 2) Craig Ott 3) Pauletta (Polly) Nichols 4) Jim Victor 5) Patrick Michaelski

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134 UTMB Capital Initiative Commitment < $100K Purpose This form is intended to document the approval of funding for Capital Initiatives that have been approved by the UTMB Facilities Steering Committee and to authorize the establishment of PeopleSoft Project Accounts. Please fill out all of the following below and attach the detailed project budget with cash flow: Facilities Project Number: Facilities Project Name: Funding Source Amount PeopleSoft # (completed by Finance) Local funding: $ Sealy and Smith funding: $ TRB funding: $ Bond funding: $ PUF/LERR $ Other Gifts funding (please specify): $ Other funding (please specify): $ Total Project funding: $ Summary of work to be performed: UTMB Project Manager: Or OFPC Project Manager: Approval Name Name Date: Date: James G. Victor, Asst VP, Design & Construction, Business Operations & Facilities Date: Michael R. Shriner, MBA, AIA, VP, Business Operations & Facilities Date: CC: 1)Matt Furlong 2) Craig Ott 3) Pauletta (Polly Nichols) 4) Jim Victor 5) Patrick Michaelski

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136 Sample Capital Commitment Document Package 1

137 Sample Capital Commitment Document Package 2

138 Sample Capital Commitment Document Package 3

139 Sample Capital Commitment Document Package 4

140 Sample Capital Commitment Document Package 5

141 Sample Capital Commitment Document Package 6

142 Sample Capital Commitment Document Package 7

143 Sample Capital Commitment Document Package 8

144 Project Delivery Manual Customer/Stakeholder Meetings Meeting Agenda Meeting Minutes Issue Log PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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146 e Project Name Meeting Name - Date List of Attendees: Agenda Item Discussion Summary Action Items Responsible Individual(s) 1) Agenda Items entered in this column Meeting minutes detailed in this area for each agenda item. Pending action items for this agenda item are noted here. Person(s) responsible to complete action item are noted here. 2) 3) 4) 5) 6) 1 of 1 Action Status of action described here (new, ongoing, completed)

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148 This log is used to record and track project issues. Issues are things that are currently happening that require resolution for the project to proceed successfully. This log includes all issues identified over the life of the project, including those that are resolved and those that are still active. Do not delete issue information from this log: it is a permanent record of project issues. Tips: 1. Create your first Issue Log when the Project Plan is approved, using the issue section of the Project Plan as initial content. 2. Change the title of this document by clicking "View" in the Tools Menu and selecting "Header and Footer" and then "Custom Header". 3. Active issues in a period should be recorded in the Project Status Report for that period according to the thresholds for reporting issues in the Issue Management Plan. 4. Identifying new issues and updating this log should be part of an ongoing risk management process with clear roles and responsibilities. See the Issue Management Plan Template for suggestions on these. 5. Each issue should be assigned a number as a unique identifier (see left hand column) that does not change over the life of the project and that is also used on the Project Status Report, Issue Identification Form, and Issue Assessment Form. 6. There should be specific defintions for the terms high, medium, and low. See the Issue Management Plan for suggested definitions. 7. Issues are things that are currently happening that can affect the project. If the situation has not yet occured, it should be assessed as a possible risk. PROJECT NAME Issue Log Issue No. Issue Description Responsible 1. Basic Issue Information 2. Issue Assessment Information 3. Issue Response Information Date Reported day month year Laste Update day month year Impact Impact Description Status Resolved/Not Resolved Completed Actions Planned Future Actions Provide unique identifier to issue Describe the issue by saying what is happening or what has happened and how it is negatively impacting the project Name of title of the team member who is responsible for issue Enter the date the issue was first reported Enter the date the issue (not the entire log) was updated Enter here: (H) High, (M) Medium, (L) Low according to impact definitions List the specific impact the issue is expected have on the project schedule, budget, scope, and quality. Other impacts can also be listed State whether or not the issue has been resolved or if further action is required List, by date, all actions that have been taken to respond to the issue. This does not include assessing the issue List what will be done in the future to respond to the issue

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150 A5 Design Phase Forms Project Delivery Manual PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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152 NOTICE FOR xx% Name of Design Review REVIEW MEETING TO: De Anne Meeh EHS Jack Tarpley EHS Charles Carlisle* EHS Luz Cheng EHS A/E HKS Inc Amy Goebel EHS Abatement Consult. N/A Dee Zimmerman EHS User Group* Core Team Jim Stone EHS Dr. Mayhall Infectious Diseases Jason Botkin Environmental Services David De Ore Police Edward Garcia Police Jimmy Salcedo * Telecomm. Telecomm. Design Specialist Telecomm. John Schindler Innerface Architectural Signage Andrew Spielman Innerface Architectural Signage George Kaiser Utilities Chris Robbian* Utilities Rick Meyer Utilities Jingyu Liu (Jane) Utilities - Operations David Stevens Clinical Equipment Services Chuck Anderson Business Operations & Facilities Jim Victor AVP Design and Construction Construction Mgr.* Business Operations & Facilities Julie Baur Business Operations & Facilities Tracy Jackson Purchasing Program Director of Maintenance Property Services* * Designates who receives drawing DATE: PROJECT NO.: PROJECT DESCRIPTION: REVIEW MEETING DATE & TIMES: MEETING GOALS FOR Name of Design Review REVIEW MEETING: 1. To review design documents and verify that all needs and decisions made during the design process have been correctly translated into the design documents. Name of Design Review for the above project are now available for review at the office of Business Operations and Facilities. You are invited and encouraged to review these documents and furnish any appropriate comments at the review meeting which will be held in the Materials Mgmt. Building - Conference Room No. xxxx. Please review these drawings in detail, before the Review Meeting and have your comments ready for the meeting or them earlier to (Project Mgr), attention:, Project Manager. Any questions should also be directed to, Project Manager at Extension. Rev. 03/21/05

153 Please Indicate Your Intentions Below Concerning This Review And A Response To (Project Mgr.) RESPONSE: A Representative of my department Will Will Not attend the review meeting. Signed Thanks for your help. Rev. 03/21/05

154 Project Name: Date: Reviewer: Phase/Package: ( Name of design review ) Note: Provide two copies of this form filled out to the Project Mgr. at time of review. Item No. Sheet No./ Room No./ Grid Ref. Comments Action Taken Issue Closed Rev. 03/21/05

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156 e Project Name Design Review Meeting Name - Date List of Attendees: Agenda Item Discussion Summary Action Items Responsible Individual(s) 1) Agenda Items entered in this column Meeting minutes detailed in this area for each agenda item. Pending action items for this agenda item are noted here. Person(s) responsible to complete action item are noted here. 2) 3) 4) 5) 6) 1 of 1 Action Status of action described here (new, ongoing, completed)

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158 This log is used to record and track project issues. Issues are things that are currently happening that require resolution for the project to proceed successfully. This log includes all issues identified over the life of the project, including those that are resolved and those that are still active. Do not delete issue information from this log: it is a permanent record of project issues. Tips: 1. Create your first Issue Log when the Project Plan is approved, using the issue section of the Project Plan as initial content. 2. Change the title of this document by clicking "View" in the Tools Menu and selecting "Header and Footer" and then "Custom Header". 3. Active issues in a period should be recorded in the Project Status Report for that period according to the thresholds for reporting issues in the Issue Management Plan. 4. Identifying new issues and updating this log should be part of an ongoing risk management process with clear roles and responsibilities. See the Issue Management Plan Template for suggestions on these. 5. Each issue should be assigned a number as a unique identifier (see left hand column) that does not change over the life of the project and that is also used on the Project Status Report, Issue Identification Form, and Issue Assessment Form. 6. There should be specific defintions for the terms high, medium, and low. See the Issue Management Plan for suggested definitions. 7. Issues are things that are currently happening that can affect the project. If the situation has not yet occured, it should be assessed as a possible risk. PROJECT NAME Issue Log Issue No. Issue Description Responsible 1. Basic Issue Information 2. Issue Assessment Information 3. Issue Response Information Date Reported day month year Laste Update day month year Impact Impact Description Status Resolved/Not Resolved Completed Actions Planned Future Actions Provide unique identifier to issue Describe the issue by saying what is happening or what has happened and how it is negatively impacting the project Name of title of the team member who is responsible for issue Enter the date the issue was first reported Enter the date the issue (not the entire log) was updated Enter here: (H) High, (M) Medium, (L) Low according to impact definitions List the specific impact the issue is expected have on the project schedule, budget, scope, and quality. Other impacts can also be listed State whether or not the issue has been resolved or if further action is required List, by date, all actions that have been taken to respond to the issue. This does not include assessing the issue List what will be done in the future to respond to the issue

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160 A6 Construction Phase Forms Project Delivery Manual PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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162 CONSTRUCTION ACTIVITY NOTIFICATION UTMB PROJECT/PW #: PROJECT NAME: NOTIFICATION NUMBER: INSTITUTION: DATE: PROJECT MANAGER/PHONE: The purpose of this construction activity notification is to provide information on upcoming construction work with direct or indirect impacts to your operations. Please review scope of work activity, time duration and potential impacts described below. Scope of Work: *Provide a very high level of scope that all persons can understand (no acronyms, no building numbers, etc.) Schedule: Impacts: Simply state the impacts and resolutions during the timeframe. *For all critical services, back up/contingency plan/s approved by department/s and senior management must be attached. Potential Impacts to Public Access & Routes: EXPECT: o Change route of travel o Plan for delays DISRUPTIONS: o Closures o Delays o Detours o Dust o Noise THOSE AFFECTED: o Bicyclists o Delivery drivers o Emergency responders o Employees o Handicapped o o o o Motorists Patients Pedestrians Students By signing below, you agree that you understand the Scope of Work described, the anticipated work schedule for this Scope of Work, and the potential operational impact(s) to your operation, and that the project team will continue to do everything they can to mitigate potential impacts to your operations. Department(s): UTMB Department Rep. Print Name/Title Signature Date UTMB/OFPC Project Rep. Print Name/Title Signature Date UTMB Senior Mgmt. Print Name/Title Signature Date Page 1 of 1

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164 Date: Contractor: Attention: Subject: Pre-Construction Meeting Dear: A pre-construction meeting has been scheduled on the above referenced project for _ at. The meeting will be held at the Office of Business Operation and Facilities 1302 Mechanic 3 rd floor room It is requested that the following be provided to UTMB at this time. 1. List of all subcontractors and major material supplies. 2. Name of full time Project Superintendent and cellular number. 3. Construction Schedule 4. Schedule of Values. If you have any questions, please contact me at (409) 772-xxxx Thank You Construction Manager: c: AE: Project Manager: Interior Manager: Team Coordinator: S:Shared\Design&Construction\PDPforms

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166 e Project Name Pre-Construction Meeting - Date List of Attendees: Agenda Item Discussion Summary Action Items Responsible Individual(s) 1) Agenda Items entered in this column Meeting minutes detailed in this area for each agenda item. Pending action items for this agenda item are noted here. Person(s) responsible to complete action item are noted here. 2) 3) 4) 5) 6) 1 of 1 Action Status of action described here (new, ongoing, completed)

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168 This log is used to record and track project issues. Issues are things that are currently happening that require resolution for the project to proceed successfully. This log includes all issues identified over the life of the project, including those that are resolved and those that are still active. Do not delete issue information from this log: it is a permanent record of project issues. Tips: 1. Create your first Issue Log when the Project Plan is approved, using the issue section of the Project Plan as initial content. 2. Change the title of this document by clicking "View" in the Tools Menu and selecting "Header and Footer" and then "Custom Header". 3. Active issues in a period should be recorded in the Project Status Report for that period according to the thresholds for reporting issues in the Issue Management Plan. 4. Identifying new issues and updating this log should be part of an ongoing risk management process with clear roles and responsibilities. See the Issue Management Plan Template for suggestions on these. 5. Each issue should be assigned a number as a unique identifier (see left hand column) that does not change over the life of the project and that is also used on the Project Status Report, Issue Identification Form, and Issue Assessment Form. 6. There should be specific defintions for the terms high, medium, and low. See the Issue Management Plan for suggested definitions. 7. Issues are things that are currently happening that can affect the project. If the situation has not yet occured, it should be assessed as a possible risk. PROJECT NAME Issue Log Issue No. Issue Description Responsible 1. Basic Issue Information 2. Issue Assessment Information 3. Issue Response Information Date Reported day month year Laste Update day month year Impact Impact Description Status Resolved/Not Resolved Completed Actions Planned Future Actions Provide unique identifier to issue Describe the issue by saying what is happening or what has happened and how it is negatively impacting the project Name of title of the team member who is responsible for issue Enter the date the issue was first reported Enter the date the issue (not the entire log) was updated Enter here: (H) High, (M) Medium, (L) Low according to impact definitions List the specific impact the issue is expected have on the project schedule, budget, scope, and quality. Other impacts can also be listed State whether or not the issue has been resolved or if further action is required List, by date, all actions that have been taken to respond to the issue. This does not include assessing the issue List what will be done in the future to respond to the issue

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172 Infection Control Risk Assessment Project Name: Project Number: Project Manager: Project Location: Effected Locations: Start date of Project: Manager notified 24 prior to start Healthcare Epidemiology notified 24 prior to start 1 Type of dust protection Issue Plan of Action 2 Negative pressure required 3 Pressure checked (beginning, middle, end of project) 4 Air discharged outside 5 Ventilation system isolated 6 Widows sealed 7 Elevator door sealed 8 Pneumatic tube system sealed 9 Workers decontaminated before they leave the site 10 Worksite is maintained clean 11 Signage is posted to reroute pedestrian traffic 12 Site is terminally cleaned before it is reopened for use 13 Water systems have no dead legs and have been adequately flushed 14 Staff have been educated about infection control risks of construction in the healthcare setting HCE Director: Date: Signature Signature of Contractor: Date: Signature Signature of UTMB Manager: Date: Signature

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174 ATTACHMENT NO. SELLER'S SECURITY CLEARANCE REQUIREMENTS 1.0 Seller shall conduct a Security Clearance Check and a Urine Drug Test of the type and kind defined below for each of its employees, agents and/or subcontractor's personnel who will be assigned to work on UTMB s premises. The type of Security Clearance Check required is indicated below by a X beside Level One, Level Two, or Level Three. Notes: Employees, agents and/or subcontractor s personnel who have already been security cleared by UTMB and issued a contractor s badge will not require a security clearance check under these requirements until such time as their badge expires. 1.1 Level One (Cost is $19.00 per individual) a) Texas Conviction Check b) Terrorist Watch List c ) Sex Offender List 1.2 Level Two (Cost is $38.50 per individual) 1.3 Level Three Required for all non-escorted work in all Non-Public Areas: a) Criminal History Check for last seven (7) years including residence and employment b) Terrorist Watch List c) Sex Offender List Required for all work in Secured areas. In addition to the security clearance requirements identified in 1.2, above Seller shall have each employee, agent and/or subcontractor's personnel who will be working in a Secured Area contact UTMB s Office of Environmental Health and Safety at to obtain further instructions. Escort by approved UTMB personnel will be required at all times for all work in Secured Areas. Note: When submitting a security clearance check, use Level Two (ref, Section 3.0, below). 1.4 Urine Drug Test The Urine Drug Test must be conducted by a certified Substance Abuse and Mental Health Services Administration Laboratory (SAMHSA) and the collection site must be Department of Transportation ( DOT ) certified. The Urine Drug Test must, at a minimum, be a 5 panel non-dot urine drug screen that tests for marijuana, opiates, amphetamines, phencyclidine (PCP), and cocaine. At a minimum, the Urine Drug Test must have been preformed and passed by the individual at time of hire by Seller. 1.5 UTMB Contact 1

175 Question or concerns regarding these requirements or the suitability of an individual to work on UTMB s campus may be directed to: Debbie A. Conley, UTMB Human Resources at Prior to commencing work on UTMB's premises, Seller's employees, agents and/or subcontractor's personnel must first obtain a "vendor badge" from the UTMB Police Department. Vendor badges will only be issued when the following requirements have been met: a) A completed Security Clearance form (ref. Exhibit A) has been faxed to the Contract Officer or Coordinator who in turn will submit the information to UTMB Police with an assignment of appropriate time frame badge to remain valid. No badge will remain valid longer than one (1) year without recertification by the Seller. Contract Officer/Coordinator: Phone: Fax: b) Persons requesting a vendor badge must present valid identification matching the information contained in the Security Clearance form to UTMB Police at Suite Administration Building UTMB Campus c) Upon completion of badge validity period or upon termination of employment, whichever earlier occurs, the badge shall be turned in to UTMB Police at the location above. 3.0 All costs associated with conducting the Security Clearance Checks and Urine Drug Testing pursuant to these requirements shall be the responsibility of Seller. 4.0 To ensure consistency in methods, practices and procedures, UTMB has designated PreCheck, Inc. as the approved provider to perform the security clearance checks. Attached hereto as Exhibit B are brief instructions for getting setup for clearance checks with PreCheck: 4.1 PreCheck Contact Information PreCheck, Inc. Attn.: Jordan Hill 1287 N. Post Oak Rd. Houston, TX Ph: Fax: [email protected] 5.0 Seller acknowledges and agrees, that at any time during the term of its agreement with UTMB and for a period of four (4) years thereafter UTMB or a duly authorized audit representative of UTMB, The University of Texas System, or the State of Texas, at its expense and at reasonable times, reserves the right to inspect and/or audit any and all of Seller's records relating to Security Clearance Checks and Urine Drug Testing for each of Seller s employees, agents and/or subcontractor's personnel assigned to perform work at UTMB. 6.0 Seller acknowledges and agrees that the performance of Security Clearance Checks, Urine Drug Testing, and the maintenance and retention of related records is a material obligation of Seller under its contract with UTMB. Seller recognizes that its failure to conduct such Security Clearance Checks, Urine Drug Testing, and/or maintain and retain related records places a significant risk and burden on UTMB, and agrees to pay to UTMB the amount of $1,000 for each individual that Seller has assigned to work at UTMB for which Seller has not conducted a Security Clearance Check or Urine Drug Test of the type and kind required or for which Seller has failed to 2

176 provide to UTMB appropriate files and records validating that a Security Clearance Check and Urine Drug Test has been properly performed. The parties agree that the amount of $1,000 shall not be construed as a penalty but as liquidated damages representing the parties' estimate of the damages which UTMB will sustain for Seller s failure to perform its obligation under these requirements. 7.0 Notwithstanding anything to the contrary contained in this Section or the Agreement UTMB may, at its sole discretion, deny or restrict access to any of Seller's employees, agents and/or subcontractor's personnel 3

177 EXHIBIT A UTMB SECURITY CLEARANCE SELLER S CERTIFICATION By my signature below, I hereby certify and affirm that a security clearance check has been completed for the individual identified in Section 1, below, and I have determined that he/she is fit to perform work on UTMB s premises. I understand that providing a false statement hereunder shall be deemed as a material breach of our contractual obligations with UTMB and may, at UTMB s option, result in contract termination and/or disbarment from performing work for UTMB in the future. 1. Individual Information Name: Home Address: Texas Driver License No.: ; expiration date: Date of Birth: 2. Security Clearance Check Level & Urine Drug Test Please indicate the type of Security Clearance Check & Urine Drug Test performed and the date completed. A. Level 1 ; Date: Texas Conviction Check Terrorist Watch List Check Sex Offender List Check B. Level 2 ; Date: Criminal History Check for the last (7) years, including residence and employment Terrorist Watch List Check Sex Offender List Check C. Urine Drug Test ; Date: 5 panel non-dot urine drug screen that tests for marijuana, opiates, amphetamines, phencyclidine (PCP), and cocaine. 3. Location of Work The above-identified individual will be performing their work at the following UTMB location: Attested by: (Company Name) (Authorized Signature) (Date) (Printed Name/Title) For Internal Use: Reviewed by: Department Name/Title Date 1

178 EXHIBIT B How Do I Get Started With PreCheck If you are not already a client of PreCheck s, you may contact Dustin Barker, and identify that you require a vendor/contractor account for UTMB requiring an account. If you re an existing client with PreCheck, but have not previously ordered a UTMB Clearance Check, you should also contact Dustin Barker, specifying this information. He can add the appropriate package/s to your existing account, if necessary. PreCheck will forward you a User Agreement and Proposal, and you will be set up within hours. Once you are setup you will receive access to PreCheck s website, and the ability to place and retrieve clearance check orders. Background Check Results Average turnaround time for processing and completing background checks is 2-3 business days. Under federal law, any individual whose background check results impact a placement or contracting decision must be provided with a copy of the report, along with a Summary of Rights under the FCRA (Fair Credit Reporting Act) and PreCheck s toll-free telephone number and address. We also offer management of this process, allowing you to initiate Adverse Action from our website or by contacting us directly. 1

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180 UNIVERSITY OF TEXAS MEDICAL BRANCH AT GALVESTON OFFICE OF DESIGN & CONSTRUCTION INSPECTION REQUEST TO: PROJECT: CONTRACTOR: DATE: TYPE OF INSPECTION LOCATION DATE REQ. REQUESTED BY: APPROVED BY: PERFORMED BY: DATE DATE DATE COMMENTS:

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182 REQUEST FOR SERVICES Requested by (Print):, Capital Team Member PeopleSoft No. Project Title: If request is not for a project, Which Department will be charged for the services? Dept No. Services Requested: No. of Staff Department Brief Description of Services Police Services Dates and Times Requested: Day Date Officer s Name Badge/ID Start Time End Time Hours Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Location Building No. and Name Room No. Report to: (Manager on site) Cell Phone# Service request authorized by Date PRINTED NAME SIGNATURE REASON THIS SERVICE IS NECESSARY FOR THE PROJECT: Comments: 4 hr minimum required; Request 48 hrs in advance; Cancel 24 hrs in advance Reviewed by: Date UTMB Representative Approval: FORWARD TO: Rhonda Hernandez, John Hall, Dana Trussell [email protected], [email protected], [email protected] Effective Date 2/15/2013 Revision Date 7/17/2013

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184 UTMB Building Operations and Facilities (BOF) Project Commissioning Section Project Name UTMB Project # FUNCTIONAL TEST CHECKLIST FIRE ALARM Location Suite# Test #1 Submittal / Approvals Submittal. All components of the work being installed have been submitted, reviewed and approved for use on this project. The system is complete and ready for functional testing. All associated prefunctional checklists are complete, approved and attached to this FT. Prior performance has been verified as complying with the contract documents as attested by the appropriate Contractor / Subcontractor signatures below.. Any outstanding items are noted as requiring correction / completion on attached list. Any outstanding items will require completion before approval of this form can be executed. None of the outstanding items preclude safe and reliable functional tests being performed. List attached. General Contractor Date Controls Contractor Date Electrical Contractor Date Fire Sprinkler Contractor Date Fire Alarm Contractor Date Mechanical Contractor Date Functional checklist items are to be completed and approved before placing equipment into operation. This checklist does not take the place of the manufacturer s recommended checkout and startup procedures or report. Items that do not apply shall be noted with the reasons on this form (N/A = not applicable, BO = by others). Tests performed with this FT are to be verified by the Contractor as meeting the performance criteria of the contract documents before contacting Owner to witness. 3/1/06 Fire Alarm Page 1 of 2

185 UTMB Building Operations and Facilities (BOF) Project Commissioning Section Approved Cont. OFPC. DELIVERABLES Record Submittal n/a Performance data n/a Service / maintenance contract n/a Wiring diagrams Sequences and control strategies n/a O&M manuals n/a PERFORMANCE Verify sequence of operations is identified and coordinated with installation of fire alarm system System has been tested in accordance with NFPA 72 (report attached) NFPA FA record of completion form completed and attached Verify correct operation of each notification/detection device Verify FA signal is landed at elevator controller Verify shunt trip operates for elevator Verify elevator recall brings elevator to designated floor Verify secondary floor designation for elevator recall Verify HVAC dampers operate properly Verify HVAC units are controlled by FA system correctly Verify magnetic door hold-opens operate properly Verify stairwell pressurization fans operate properly Verify loss of power operation (battery check report attached) Verify audible devices operate within specified db range Verify visual devices operate within specified range Test Failure/Retest Required: The Test performed has not met the specified performance criteria and will require retesting before approval. Owner s Representative / Commissioning Authority Date Approval: The test has been witnessed as meeting the performance requirements of the contract documents with any exceptions noted. Owner s Representative/CM/PM Date Commissioning Authority/EHS Date 3/1/06 Fire Alarm Page 2 of 2

186 Business Operations and Facilities 301 University Boulevard Galveston, Texas O F W utmb.edu/foam Project Name UTMB Project # FUNCTIONAL TEST CHECKLIST HVAC DUCTWORK FIRE DAMPERS Location Test # Submittal / Approvals Submittal. All components of the work being installed have been submitted, reviewed and approved for use on this project. The system is complete and ready for functional testing. All associated prefunctional checklists are complete, approved and attached to this FT. Prior performance has been verified as complying with the contract documents as attested by the appropriate Contractor / Subcontractor signatures below.. Any outstanding items are noted as requiring correction / completion on attached list. Any outstanding items will require completion before approval of this form can be executed. None of the outstanding items preclude safe and reliable functional tests being performed. List attached. Mechanical Contractor Date Controls Contractor Date Electrical Contractor Date Plumbing Contractor Date Other Contractor Date General Contractor Date Functional checklist items are to be completed and approved before placing equipment into operation. This checklist does not take the place of the manufacturer s recommended checkout and startup procedures or report. Items that do not apply shall be noted with the reasons on this form (N/A = not applicable, BO = by others).

187 Tests performed with this FT are to be verified by the Contractor as meeting the performance criteria of the contract documents before contacting Owner to witness. Approved Cont. UTMB Record Submittal O&M manuals Verify proper temperature rating for fused link Dampers located per contract documents Verify flanges are NOT sealed at wall/floor penetration (exception is when the manufacturer specifically requires sealing with a specific sealant) Verify NO firestopping, mineral wool, packing is installed in space between damper and wall cavity. Physically release the damper curtain to verify proper operation Damper must operate quickly and shut completely without assistance Verify properly labeled access doors installed Verify damper can be accessed through door Test Failure/Retest Required: The Test performed has not met the specified performance criteria and will require retesting before approval. Owner s Representative / Commissioning Authority Date Approval: The test has been witnessed as meeting the performance requirements of the contract documents with any exceptions noted. Owner s Representative / Commissioning Authority Date

188 THE UNIVERSITY OF TEXAS MEDICAL BRANCH BUSINESS OPERATIONS AND FACILITIES SYSTEM TEST REPORT Project Name: UTMB Project Number: Project Superintendent: Building or area of campus: Company: System Test: System tested (i.e. HVAC ductwork, fire alarm, fire sprinkler piping/heads, tele/data cabling/outlets, domestic water piping, waste and vent piping, natural gas piping, natural gas shut-off valves, lab gas piping, medical gas piping, security system, emergency shower/eyewash, etc.): Location of system tested (i.e. floor, approximate location on floor (i.e. Room-8.523, southwest quadrant, north end, south elevator, north stairwell, etc.)) (please include drawing if feasible): Description of test procedure/test results (i.e. 200 psi hydro pressure for 2 hour/200 9:00 a.m. on and 200 9:30 a.m. on ), 6 inches of static pressure with less that 1% leakage (see attached results & drawings), forced entry/ok, etc.): Sub-Contractor performing test (company name): I hereby certify that the above described system has been tested as indicated above and found to be entirely satisfactory as required in the contract specifications. Sub-Contractor Employee performing test (signature): Project Superintendent (signature): UTMB Facilities Development Representative (signature): Date: Date: Date:

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190 Overhead Inspection Check List Project: Building: Area: Attached site plan (yes or no) Architectural Electrical Plumbing 1. Debris above ceiling 13. Supports 23. Supports 2. Border/ device tiles 14. Identification 24. Dielectric isolation 3. Wall penetrations 15. J Box covers/ labels 25. Insulation 4. Rated wall labeling 16. Whips/ length 26. Identification 5. F/S damper (angle) 17. Conduit/ size 27. Sizing 6. Wall head termination 18. Hurricane clips 7. Support wires Mechanical Cabling 8. Duct supports 19. Supports 9. Duct insulation 20. Pull string 10. Duct flex connections 21. Service loop 11. Return path 22. Insulation type 12. Control wiring/ tubing Location/ Room No. Area Comments

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196 University of Texas Medical Branch University Storm Water Management Program Notification of Construction Activities Any project that includes a site construction office, a lay-down area or material storage area, vehicular and/or equipment access, excavation or grading, or any disturbance of the existing site conditions requires a Storm Water Pollution Prevention Plan (SWPPP) unless specifically authorized otherwise by Environmental Health and Safety (EHS). If SWPPP requirements are waived, Best Management Practices (BMP) for storm water management and weekly inspections by EHS will be required as a minimum. Maintenance activities that include major uses of water (pressure washing) or pumping of ground water that will be discharged to a storm drain require BMP s. The Notification of Construction Activities is used to authorize construction and water discharge activities where SWPPP is waived by EHS. Upon completion please return to EHS for approval. Project Name: Date: Contractor, Contact Name, and Phone No.: UTMB Construction Manager Name and Phone No.: Proposed activity: 1. Proposed date and period for the project: 2. Location of project (be specific) / Estimate area to be disturbed (include material staging area): 3. Purpose of Construction/(describe anticipated activities): 4. Will any ground be disturbed during activity? Yes No If yes, please describe proposed sediment controls (list actions to be taken to protect storm water): 5. Will there be any potential threats to storm water sewer system? Note location of drains in the proposed construction area: (Contractor name) will be responsible for implementation and maintenance of erosion and sediment control measures for the project above. Should controls become ineffective they will be replaced or corrected immediately upon discovery. Contractor signature provides an acceptance of compliance with best practices noted in this document, project drawings, contract documents, and the UTMB Storm Water Management Program. Contractor Signature/Date EHS/Date Environmental Health and Safety (EHS) (409) FAX (409)

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198 The University of Texas Medical Branch University Storm Water Management Program Storm Water Discharge Request Project Name: Date: Location: Request: EHS approval Contact Name and Phone: Please provide the following information about the expected/proposed activity: 1. Anticipated date(s) of discharge: 2. Location of project (be specific) / Describe activity: 3. Describe product/chemicals, solid material, suspected problem if any with water: Maximum water temperature F ph sheen present (yes/no) Estimate total discharge in gallons per minute 4. Will any ground be disturbed during activity? Yes No If yes, please describe proposed sediment controls (list actions to be taken to protect storm water): 5. Will there be any potential threats to storm water sewer system? Note location of drains in the proposed area: Have alternates been considered: Land application Other, describe EHS Office Use Only Approval/Date Comments University of Texas Medical Branch Environmental Health and Safety (EHS), Environmental Protection Management Materials Management, Route 1108 (409) FAX (409)

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202 THE UNIVERSITY OF TEXAS SYSTEM Contractor's Estimate PERIODICAL ESTIMATE FOR PARTIAL PAYMENT NO. PURCHASE ORDER # PROJECT NUMBER FOR THE PERIOD: Inclusive. PROJECT: To CONTRACTOR: For work. TO BE FILLED IN BY THE CONTRACTOR Amount of Contract... $ INSURANCE AFFIDAVIT: I, the Contractor, do hereby certify that all insurance as required by law and by the specifications is in full force and effect Approved Extras... $ Total... $ Accepted Deductions... $ CLAIMS AND LIABILITY: I, the Contractor, do furthermore certify that all current invoices and obligations have been paid in full, and there are no claims or liabilities against this contract. Total... $ Previously Paid... $ Balance... $ THIS CERTIFICATE... $ Balance... $ Signature of Contractor date STATE OF TEXAS } Personally before me, the undersigned authority, this day appeared COUNTY OF } who being by me duly sworn, on his oath says that the account hereto attached, for $ in favor of and against THE BOARD OF REGENTS OF THE UNIVERSITY OF TEXAS SYSTEM is, within the knowledge of affiant, just, true, and correct: that it is due and that all just and lawful offsets, payments, and credits have been allowed. Sworn to and subscribed before me, this day of 2013 Signature of Contractor Notary Public County, Texas Inspected and approved 2013 By TO BE FILLED IN BY THE CONSTRUCTION INSPECTOR Construction Inspector CERTIFICATE TO THE BOARD OF REGENTS OF THE UNIVERSITY OF TEXAS SYSTEM, AUSTIN, TEXAS. THIS IS TO CERTIFY THAT CONTRACTOR FOR (Contractors Firm Name) IS ENTITLED TO PAYMENT OF THIS CERTIFICATE IN THE AMOUNT OF: $ (Name of Construction Project) (dollars and cents) Architect/Engineer S:Shared\Design-Const-Forms\PDP FORMS

203 CONTRACT BREAKDOWN Separate Items Comprising The Contract Value of Separate Items of Contract Total % To Last Report % To This Report Amount Due TOTAL: Less 5%: AMOUNT OF THIS ESTIMATE: S:Shared\Design-Const-Forms\PDP FORMS

204 Business Operations and Facilities Date: 301 University Boulevard Galveston, Texas O F W utmb.edu/foam Contractor: Attention: Project: Subject: Substantial Completion Dear: The above referenced project is substantially complete and has been accepted for use by UTMB. In order for UTMB to close out the project and release final payment, the following will need to be submitted: As built drawings once revised drawings are received from A/E and remaining RFI s for project file Operation and Maintenance Manuals [two (2) copies] Include: 1 Year Warranty Approved Submittals and Shop Drawings Color Selections Release of Liens Consent of Surety of Final Payment Return of any UTMB issued keys Affidavit that all payrolls, bills for materials and equipment, and other indebtedness connected with the work for which the owner or his property might be in any way be responsible, have been paid or will be paid or otherwise satisfied with thirty (30) days after receipt of final payment from the owner, or within the period of time required by article 60LF, Vernon s Texas Civil Statutes. It is requested that all remaining punch out items be completed within 10 days of this letter. Signed: Construction Manager, Business Operations and Facilities C: Project Mgr, Team Coordinator, Chuck S. Anderson, Program Director for Construction, Business Operations and Facilities David Ketchens, AVP Property Services, Business Operations and Facilities Program Director of Property Services, Business Operations and Facilities Manager of Property Services, Business Operations and Facilities

205 Rhonda Hernandez, Financial Analyst, Business Operations and Facilities Dana Trussell, Financial Analyst, Business Operations and Facilities Lynda Alexander, Facilities Information Manager, Business Operations and Facilities Chella Rodriguez, Facilities Info Associate, Business Operations and Facilities Polly Nichols, Financial Analyst, Asset Management Craig Elmore, Assistant Controller, Finance Jason Welch, Finance Manager, Asset Management Rema Washington, Asset Management Tracy Jackson, Sr. Acquisition Specialist, Purchasing

206 Business Operations and Facilities 301 University Boulevard Galveston, Texas O F W utmb.edu/foam Date: Contractor: Attention: PROJECT: (# and Name) PO #: SUBJECT: Certificate of Final Acceptance Dear, Please accept this letter as your Certificate of Final Acceptance. All close out documentation has been received and all punch list items have been completed. The final pay request has now been forwarded for payment. If you have any problems or questions, please contact me at Thank you, Construction Manager, Office of Facilities Development c: James G. Victor, Asst VP Design & Construction, Business Operations and Facilities Chuck Anderson, Program Director, Construction Project Manager, Business Operations and Facilities Team Coordinator, Business Operations and Facilities David Ketchens, AVP Property Services, Business Operations and Facilities Program Director of Property Services, Business Operations and Facilities Manager of Property Services, Business Operations and Facilities Karen Gross, Manager, Supplier Diversity Programs/HUB Coordinator Tracy Jackson, Senior Acquisition Specialist

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208 A7 Change Management Forms Project Delivery Manual PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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210 UTMB SCOPE CHANGE REQUEST FORM Scope Change Authorization Form <100,000 Project Name: Project No.: Date: Project Phase: [ ] Design [ ] Construction Requested by: (Campus representative / title) Description by Requestor: (Information provided by the Project Manager) address scope, quality, budget, schedule, disciplines affected, other pertinent information. Reference ASI, RFI or other documentation as needed. Attach sketch to show extent and nature of change.) Justification by Requestor: (Information from the requestor inserted by the Project Manager) address the need for this change, including consequences if not incorporated in the project.) Step 1 Project Manager: insert data in step 1 and obtain approval prior to step 2 Design Cost Estimate: $ Construction Cost ROM: $ Time to Design: Funding Source: Authorization to define scope and estimated cost / schedule impacts :( Must be completed prior to moving to step 2) [ ] Approved [ ] Denied Initial: Initial: Michael R. Shriner, AIA EVP or Designee VP, Business Operations and Facilities Step 2 Project Manager: insert all data prior to obtaining signatures Est d Cost: $ Account Source: Est d Schedule impact: Ex g schedule comp new schedule comp Date Decision required by: Recommendation for inclusion in the project: [ ] Yes [ ] No Signature: Name UTMB Project Manager Signature (insert name) EVP or Designee Approved for inclusion in the project: Signature: Michael R. Shriner, AIA VP, Business Operations and Facilities Campus Change Management: Updated April 6, 2012

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212 UTMB SCOPE CHANGE REQUEST FORM Scope Change Authorization Form >100,000 Project Name: Project No.: Date: Project Phase: [ ] Design [ ] Construction Requested by: (Campus representative / title) Description by Requestor: (Information provided by the Project Manager) address scope, quality, budget, schedule, disciplines affected, other pertinent information. Reference ASI, RFI or other documentation as needed. Attach sketch to show extent and nature of change.) Justification by Requestor: (Information from the requestor inserted by the Project Manager) address the need for this change, including consequences if not incorporated in the project.) Step 1 Project Manager: insert data in step 1 and obtain approval prior to step 2 Design Cost Estimate: $ Construction Cost ROM: $ Time to Design: Funding Source: Authorization to define scope and estimated cost / schedule impacts :( Must be completed prior to moving to step 2) [ ] Approved [ ] Denied Initial: Initial: Michael R. Shriner, AIA EVP or Designee VP, Business Operations and Facilities Step 2 Project Manager: insert all data prior to obtaining signatures Est d Cost: $ Account Source: Est d Schedule impact: Ex g schedule comp new schedule comp Date Decision required by: Recommendation for inclusion in the project: [ ] Yes [ ] No Signature: Name UTMB Project Manager Signature (insert name) EVP or Designee Approved for inclusion in the project: Signature: Michael R. Shriner, AIA VP, Business Operations and Facilities Campus Change Management: Updated April 6, 2012 Signature David L. Callender, MD, MBA, FACS President Signature required if over $100,000

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214 CHANGE OF SCOPE JUSTIFICATION PURCHASE ORDER NUMBER: REQUISITION NUMBER: PROJECT NAME: PROJECT NUMBER: LOCATION: Why is the change order necessary? Change of scope; unforeseen issues, etc. Is the project within budget? Yes or no Who approved the additional expense? Name, Department and Title Project Manager Name: Date: Approved by: Chuck S. Anderson Program Director for Construction

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216 Business Operations and Facilities 301 University Boulevard Galveston, Texas O F W utmb.edu/foam Date Name of Construction Company Address PROJECT: SUBJECT: Name Project # Request For Pricing (additional Info. can go here) To: Please submit an additive change proposal to represent the additional costs and time resulting. This is as discussed during various weekly construction progress meetings. Please submit a Change Proposal as soon as the values can be determined. Please use the Request for Information form and procedure if there are questions regarding the scope of work involved. Thank you, Construction Manager Office of Facilities Development c: Architect Any UTMB Dept. names Project Mgr. UTMB, Facilities Development Interior Mgr. UTMB, Facilities Development

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218 THE UNIVERSITY OF TEXAS MEDICAL BRANCH FIELD ORDER FIELD ORDER NUMBER DATE: PROJECT: TO: WORK DESCRIPTION: [ ] Owner considers this to be required. It s contractual requirement to be determined later. [ ] Owner considers this to be extra work. [ ] Cost and time to be negotiated later. [ ] Owner considers this to be in contract and is issued to expedite the project only. AUTHORIZED COST: CONSTRUCTION MANAGER - UTMB: SIGNATURE REPRESENTATIVE FOR: (NAME OF COMPANY) SIGNATURE S:\SHARED\PDP FORMS\Field Order.doc 1 Rev 1/96

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220 PO CHANGE ORDER DATE: 26-Jun-2014 PROJECT NUMBER: PURCHASE ORDER NUMBER: REQUISITION NUMBER: PROJECT NAME: LOCATION: CHANGE ORDER NUMBER: TO: DESCRIPTION UNIT COST TOTAL COST ORIGINAL PURCHASE ORDER PRICE PREVIOUS ADDITIONS PREVIOUS DEDUCTIONS NET BALANCE CONTRACT PRICE - THIS (ADDITION) (DEDUCTION) ADJUSTED PURCHASE ORDER PRICE: - By:,Project Manager Business Operations & Facilities

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222 Business Operations and Facilities 301 University Boulevard Galveston, Texas O F W utmb.edu/foam CHANGE ORDER CONTRACT FILE #: NUMBER: DATE: PROJECT NUMBER: PURCHASE ORDER NUMBER: PROJECT NAME: LOCATION: TO:., Contractor for the above project. You are hereby authorized to make the following changes in the work under your contract: C.P. NO. DESCRIPTION OF WORK COST TIME TOTAL It is mutually agreed that the addition/deduction of DOLLARS and CALENDAR DAYS time extension provided for in this Change Order, constitutes full compensation to the Contractor, whether direct, consequential or otherwise, in any wise incident to, or arising out of, or resulting directly from the work performed or modified by the Contractor under this Change Order. The new contract completion date, including this time extension,. For the above changes the sum of DOLLARS, will be deducted from the contract price as follows: S:\wrdfiles\forms\chgorderconstcontract.doc

223 ORIGINAL CONTRACT PRICE $ PREVIOUS ADDITIONS $ PREVIOUS DEDUCTIONS $ NET BALANCE-CONTRACT PRICE $ THIS ADDITION: $ ADJUSTED CONTRACT PRICE: $ ACCEPTED BY General Contractor Dated: By: Michael R. Shriner, AIA, MBA Vice President for Business Operations and Facilities By: Carolee King, JD Sr. VP & General Counsel C: Purchasing Project Manager Construction Manager Team Coordinator

224 Business Operations and Facilities 301 University Boulevard Galveston, Texas O F W utmb.edu/foam CHANGE ORDER CONTRACT FILE #: NUMBER: DATE: PROJECT NUMBER: PURCHASE ORDER NUMBER: PROJECT NAME: LOCATION: TO:., Contractor for the above project. You are hereby authorized to make the following changes in the work under your contract: C.P. NO. DESCRIPTION OF WORK COST TIME TOTAL It is mutually agreed that the addition/deduction of DOLLARS and CALENDAR DAYS time extension provided for in this Change Order, constitutes full compensation to the Contractor, whether direct, consequential or otherwise, in any wise incident to, or arising out of, or resulting directly from the work performed or modified by the Contractor under this Change Order. The new contract completion date, including this time extension,. For the above changes the sum of DOLLARS, will be deducted from the contract price as follows: S:\wrdfiles\forms\chgorderconstcontract.doc

225 ORIGINAL CONTRACT PRICE $ PREVIOUS ADDITIONS $ PREVIOUS DEDUCTIONS $ NET BALANCE-CONTRACT PRICE $ THIS ADDITION: $ ADJUSTED CONTRACT PRICE: $ ACCEPTED BY General Contractor Dated: By: Michael R. Shriner, AIA, MBA Vice President for Business Operations and Facilities C: Purchasing Chuck S. Anderson, Business Operations & Facilities Project Manager Construction Manager Team Coordinator

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228 BUSINESS OPERATIONS AND FACILITIES NOTICE OF SUBSTANTIAL COMPLETION Instructions: This form is for the Project Manager to notify BOF Finance Team and Asset Management that a project has reached substantial completion. Submit the form with the documents indicated below. BOF Project Number Substantial Completion Date / / Date all invoices will be paid / / Total budget for project $ Project Summary Report is attached. Selected Projects Financial Summary Project Detail is attached. Project Manager in charge of project at date of substantial completion: Print Name in Full Project Manager s Signature and date Date: Comments: BOF Finance Team close-out process started: Date Initials Effective Date 12/01/2012 Created 11/30/2012

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236 BUSINESS OPERATIONS AND FACILITIES NOTICE TO INACTIVATE CAPITAL PROJECT Instructions: This form is for the BOF Finance Team to notify Asset Management that a project is complete and ready for inactivation. Asset Management confirms inactivation by filing out the bottom section and returning to BOF Finance Team. BOF Project No: Project Description The following chartfield string value(s) are ready for closure: Operating Unit Fund Department # PS Project # Budget Reference All encumbrances and pre-encumbrances have been completed and closed on the project(s) listed above. o No open Purchase Orders o No open Requisitions o No salaries are sourced All transactional activity is appropriate and complete. o Asset Management has verified all their entries are complete. o Research Services verified all their entries are complete, if applicable. All recurring charges (i.e. telecommunication, copy charges, ISCs, etc.) are complete and the appropriate department has been notified to either discontinue service or move the charge from the above project(s). The project(s) listed above have no Budget Balance Available. By signing below, this verifies that the above items have been checked and validated for the Project(s) identified. Prepared by BOF Finance Team: Approved by Dir., Facilities Business Ops: Approved by AVP Design & Construction: Date: Date: Date: Copy: Project Manager Team Coordinator FOR USE BY ASSET MANAGEMENT: Date PS Project(s) Inactivated: By: Effective Date 12/01/2012 Created 11/30/2012

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240 e Project Name Customer Debrief Meeting- Date List of Attendees: Agenda Item Discussion Summary Action Items Responsible Individual(s) 1) Safety Moment 2) 3) 4) 5) 6) 1 of 1 Action

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246 BOF Project Number MASTER FILE INDEX PeopleSoft Project Number: Rev. No. Project Title Instructions: Please check the file categories required to establish files for your project. If your project does not require certain files, please indicate N/A for that file title. Space Request o o o File Name Correspondence Budget/Schedule Space Request Form Project Definition o o o o o o o Correspondence Budget/Schedule Customer Funding Information Leasehold Information Equipment Information Site Investigations Miscellaneous Project Initiation o o o o o o o Correspondence Meetings (Agenda/Minutes) Budget Final Schedule Final FISC Submittals/Approvals Customer Agreement/Funding Validations Design Phase o o o o Project Setup Information Budget/Schedule Change Orders Change Proposal Change Order Requests Change Orders Approved Correspondence Design Documents Schematice Applicable/Not Applicable Responsible Person 1

247 File Name Design Development Construction Documents o Engineering Estimate o Invoices o Meetings (Agenda/Minutes) o Miscellaneous o Procurement Bid Lists Bid Evaluations Bonds/Insurance Closeout Documents Invoices Miscellaneous Purchase Order/Contract Proposals Requisitions Sole Source Justification RFQ/RFPs o Regulatory Agencies o Specifications o Studies Construction Phase o As-Built Drawings o Change Orders Field Orders Change Proposals Change Orders Requests o Communications o Contractor Submittals o Infection Control Risk Assessment o Interim Life Safety Measures o Invoices o Interiors General Furniture/Fixtures Applicable/Not Applicable Responsible Person 2

248 o o o o o o o o Finishes File Name Carpet/Flooring Window Coverings Artwork Signage Keying Meeting Minutes Move Coordination Permitting Procurement CSP JOC Bid Lists Bid Evaluations Notice to Bidders Award Recommendation/Notice Purchase Order/Contract Purchase Orders/Contracts Closeout Documents Invoices Miscellaneous Proposals Requisitions RFQ/RFPs Sole Source Justification Progress Meetings Reports Commissioning Daily Construction Inspections Nonconformances Quality Assurance Tests RFI Applicable/Not Applicable Responsible Person 3

249 o o o o o o File Name Safety Schedules Specifications Submittals Substantial Completion/Closeout Warranties Applicable/Not Applicable Responsible Person 4

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262 Project Delivery Manual APPENDIX C CHANGE CONTROL MANAGEMENT Technical scope control refers to a form of baseline control similar to that used to control the schedule and budget. Technical scope control involves the establishment and control of a welldefined technical baseline to ensure that the work performed meets the criteria required by the contract. Change control refers to the process used to identify, review, analyze, and incorporate changes to any project baseline, including technical, cost, or schedule. The contract is the key document used to manage change orders. Project managers must have an in-depth understanding of the terms and conditions of the contract as well as the scope of work. The PM must be familiar with the contractual requirements for managing change orders, including any limitations within the contract, and understand any time constraints on requesting a change order. Project managers must have procedures in place to address both internal and external changes and change orders. Internal changes are those that can be made unilaterally by BOF, while external changes require Customer approval. Before the project begins, the PM should discuss the change process with the Customer to ensure a mutual understanding. It is perfectly normal and acceptable for the Customer to provide additional details as to how to implement the requirements of the contract. However, any Customer direction that materially alters or is contrary to the contract terms must be documented as a contract modification. 1. Change Orders Change order procedures must be implemented at the outset of the project. These procedures must clearly define appropriate authority levels for the approval of change orders. Customer authority levels for approving change orders also must be defined and must comply with the changes clause of the contract. The project team and Customer should expect change orders to be processed in a timely manner. Because expectations and precedents are set early in the job, the practice of promptly addressing changes should also be implemented from day one. Requirements for Procedures Accountability is a key component in the prompt handling of change orders. Project and construction managers should be clearly identified, and they must understand that they are accountable for controlling the scope. Relevant project team members must be trained in the project change procedure, and should understand that their responsibilities include identifying potential changes and using the established procedures to appropriately communicate those changes so that decisions can be made at the appropriate level. 1.1 Recognizing Change Orders Establish immediately after project award. Define appropriate authority levels. Require that change orders be processed in a timely manner. Include a simple early identification/warning system for UTMB and the Customer. Include rough-order-of-magnitude cost and schedule impacts on initial notifications. If appropriate, include a change review board with Customer representation. Protect against performing work on unapproved changes. Include documentation of the change and all impacts in the permanent contract file. The project management process includes the development of the project budget. Key members of the team must be well versed in the baseline plans for their area of responsibility. As the project progresses, proposed actions and Customer instructions are compared against the baselines. If they represent a variance, the change procedure is followed and work is not performed until a change is authorized. C-1 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

263 Project Delivery Manual The regular (usually monthly) analysis of actual performance provides a second opportunity to identify changes. During this process, responsible managers review all significant variances from their baseline plans and must determine their causes. This analysis reveals any out-ofscope work; such work should be stopped immediately until the change order is approved. The PM is responsible for change reviews. On large projects, a change review committee may be created to assist in this process. To be effective, the change review committee should collectively include expertise in the contract, budget, schedule and technical scope. In some cases, the committee may be as simple as one administrative manager and one technical manager who meet only when potential changes are identified. More commonly, the committee includes several individuals and meets weekly or biweekly to make recommendations to the PM. In any case, the PM must review all potential changes and determine which are legitimate and which require formal Customer authorization and change orders. 1.2 Accounting for Change Orders in Schedules and Budgets In many cases, the full impact on future activities may not be readily identifiable at the time the change order is processed. Sound assumptions must be made regarding future impacts, and costs must be estimated by qualified individuals in order to build a strong case for the change. As with any estimates, cost and schedule impacts should be reviewed and validated by an independent and qualified source. The responsible PM must also approve the estimate before the change is routed for final approval according to established processes. Approved change orders are incorporated into the baseline budgets and schedules as soon as they are approved. Baseline schedules are updated only upon receipt of a fully executed change order. Working schedules may incorporate pending work consistent with that included in the change order. 2. Claims Prevention & Management How well the project team prevents and manages claims may determine whether the project is successful. The PM must ensure that the project team understands this and takes the necessary measures to keep this in mind as they go about their daily activities. Periodically remind all project team members of the following: Claims, whether between UTMB and a subcontractor or between BOF and a Customer, often reflect poorly on BOF because they are viewed as evidence of a breakdown in project execution. Claims are costly for all parties and can be a significant distraction to the management of both UTMB and the Customer, often resulting in hard feelings. The cost of claims includes legal and other third-party fees as well as management and staff time to review, research, and argue the claim or negotiate a settlement. Many claims are the result of poor planning, avoidable delays, errors and omissions, and inadvertent actions or inactions. In other words, many claims are preventable. Claims prevention is a team effort, and the PM should ensure that the entire project organization understands and actively supports claims prevention. 2.1 Major Components of Claims Management The most important elements of claims management are knowledge of the contract, development and implementation of a quality program, and clear communication with the project team, Customer, and contractors. Fortunately, most potential claims are avoided by rigorously following UTMB policies and procedures while executing the work. Following are critical issues that must be addressed or implemented to effectively prevent and manage claims: C-2 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

264 Project Delivery Manual Train team members to identify potential claim situations and resolve them before they escalate. Implement a rigorous and frequent system of progress reporting. BOF and its contractors must implement and maintain quality measurement systems to ensure that work is proceeding according to plan. Implement a rigorous audit and technical review program to ensure the integrity of all work products and verify that the team and contractors/vendors are working according to established procedures. Ensure that contract administrators are fully engaged in the project. Document and retain all relevant conversations, faxes, , memoranda, meeting minutes, or other correspondence with the Customer and contractors. 2.2 Escalation and Resolving Potential Claims When the potential for a claim exists, the PM must refer to the disputes clause of the contract and understand our rights and obligations as well as the agreed-upon process for resolution. The PM is responsible to immediately advise BOF management of a potential claim situation, propose a strategy to resolve the issue, and, if appropriate, notify the Customer if the claim involves a contractor and BOF. Generally, the PM should initially attempt to settle the issue at the project level. This does not mean that the PM acts alone. Procurement and other support services are available to assist and should be consulted for their expertise. If additional support is needed, the PM must raise the issue with management and procurement department. Valid claims are not always wise or cost effective. The management team must evaluate all business aspects before proceeding with a claim and make a sound business decision rather than an emotional one. If the matter cannot be resolved at the project level, it is escalated through the respective management teams. On some claims, senior management may ultimately meet with their Customer or subcontractor counterparts to try to negotiate a settlement. If the two parties cannot reach resolution, the matter is escalated in accordance with the contract. 2.3 Contractor Claims Management cannot resolve every issue, so the formal claims process can be a necessary part of project management. A claim is initiated when a written notice (demand) is received from the contractor (claimant). The contractor submits a statement of facts about the claim, including details and justification for each item of additional compensation or time adjustment claimed, the reasons for the claim, references to applicable provisions of the contract and all other pertinent facts. After receiving a claim, a copy of the claim and all supporting documentation must immediately be provided to the responsible project manager, contract administrator, and contracts manager. In most cases, it is appropriate to notify the Customer of potential claims, even if the contract does not require notification. The contracts manager supports the PM in analyzing the claim and assists the contract administrator in drafting a position statement. The PM responds to the claim in a professional manner and as quickly as practical. The contracts manager must review all correspondence related to the claim before it is released. 3. Technical Scope Control C-3 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

265 Project Delivery Manual Technical scope control applies to the complete technical description required to assess, build, test, accept, install, operate, maintain, and support the project s end product or system. The project manager is responsible for implementing the processes necessary for the creation, maintenance, and controlled change of the technical baseline of the project. The first step in implementing technical scope control is to establish a technical scope control process and procedure for the project. The intensity of the technical scope control process will vary among projects based on risk and Customer requirements. The procedure typically includes the identification of technical changes, methods to identify impacts to all affected disciplines, review procedures to obtain Customer approvals, and processes for communicating the results of the review to the project team. Most projects are defined by a technical scope description or specifications which must be controlled to protect BOF and our clients. Technical scope control benefits the Customer by helping to ensure delivery of the correct technical scope. The review process ensures that the full impact of changes is identified, evaluated, communicated to the Customer, and incorporated only after being approved to protect BOF from future claims that the contracted scope of work was not performed. If scope evolves without proper controls, the Customer s project manager may be pleased with BOF work and cooperative disposition, but the auditors who review the project later may see things differently. After technical scope control processes are established, the project team should be trained in their implementation. This requires a thorough understanding of the technical baseline and the importance of controlling and documenting approved changes. A good document control program is also essential. Project managers must ensure that all technical changes are formally approved by the authorized Customer representative before they are incorporated into the project baselines. Following Customer approval of the change, the PM is assigned responsibility to implement the change. This individual must ensure that impacts are reflected as appropriate throughout the technical baseline. The PM must also ensure that an appropriate audit/surveillance system is in place to ensure that work is not performed on changes before they are authorized. C-4 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

266 Project Delivery Manual APPENDIX D PROJECT CLOSEOUT PROCEDURE D-1 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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288 Project Delivery Manual APPENDIX E HSE MANAGEMENT 1. Safety Culture The term safety culture refers to the principles, attitude, and techniques that all employees should be expected to use to promote a healthy and safe environment, no matter what the project or task. Having a safety culture standardizes our safety, health and environment practices and empowers every employee to take action to eliminate injury and enhance safety. Any work-related injury has a very personal and profound effect on our employees and customers, not to mention our corporate reputation. Therefore, focus on safety, health and environment extends beyond recognized high-hazard activities (e.g., construction and field work) to office activities and even into the lives of our employees outside the work setting. Every project manager and every employee of UTMB should make safety part of their own culture, every day, in every situation. The goal for a project s safety program should be zero incidents. The following table details the various techniques that can be utilized to meet a the zero incidents goal. Table E-1: Zero Incidents Techniques: A Snapshot of What and Why Key Technique What and Why 1 Demonstrated Management Commitment All levels of management consistently display their commitment to the safety process. As leaders, managers are role models whose actions send a strong message to employees. 2 Staffing for Safety Each project manager should consider staffing a team member who has Safety, Health and Environment (SH&E) experience to assist in implementing and administering the safety program. The SH&E representative consults with line organizations, helping to emphasize that safety is the responsibility of each employee on the project, not just the safety department. 3 Safety Planning Pre-project/Pre-task 4 Safety Training and Education 5 Worker Involvement and Participation Planning safety into design and construction by using activity hazards analyses is key to eliminating accidents and incidents in the workplace. Planning job tasks with safety as a key component raises safety awareness of supervisors and employees. Pre-task planning improves productivity and reduces the negative impact of direct and indirect costs of accidents. Orientations, routine training sessions are conducted at all levels of an organization. Specialized training is also conducted to provide specific knowledge about hazardous work activities. Ongoing safety orientation and training gives employees the knowledge and skills to complete their job tasks without injury. Empowering employees to identify hazards in the workplace is a valuable tool to increase safety awareness. Conducting labor-management safety committee meetings allows a forum to coordinate and resolve safety issues. When employees identify and have the ability to correct hazards in the workplace, safety motivation and awareness increase and fewer accidents occur. 6 Recognition and Rewards Employee recognition programs to reward and recognize employees for safe behavior can be based on individual or group accomplishments. Safe behavior is positively reinforced through management involvement, personal contact, communication, and training. 7 Subcontractor Management Project Managers must ensure subcontractors comply with safety and health rules and regulations in accordance with contractual requirements. Aggressive management of subcontractor safety reduces accidents and incidents on the jobsite and reduces the risk of general liability claims against the company. E-1 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

289 Key Technique 8 Accident/Incident Reporting and Investigation What and Why Project Delivery Manual Each project must investigate accidents and incidents immediately and report to the appropriate personnel. The investigation process includes root cause determination and recommendations to prevent future occurrences. 9 Drug and Alcohol Testing Employees are tested for drugs and alcohol where and when permitted by state law and local collective bargaining agreements during pre-employment, at random, post-accident, and when reasonable suspicion exists. Testing employees for drugs and alcohol reduces the likelihood of serious injuries as a result of workers being impaired while working on a project. 2. Safety Training & Awareness Managing HSE takes a proactive approach. Some components of this approach include the following: Demonstrated personal commitment to safety from all levels of management and supervision. Safety planning, including activity hazard analysis, identifying high-risk tasks in the project schedule, and performing two-week look-aheads. Safety training, awareness and education, including orientation for newly assigned workers, general office or construction safety training, and specific training applicable to the project. Worker involvement in safety presentations, safety committees, and hazard identification and mitigation. Aggressive management of contractor safety including prequalification, review of safety programs, and compliance audits. Prompt reporting and investigation of all significant incidents, including near-misses, property damage only, or injuries. Employee recognition programs to reward employees for safe behaviors and accomplishments. 3. Motivating Employees to Work Safely A key component of the HSE program is the ability to effectively motivate team members to work safely. Some techniques that are used to accomplish this include the following: Establish and communicate clear safety goals and objectives for the overall project and individually for the project management team. Constantly remind the team of the safety culture, The most effective safety using a variety of techniques. recognition programs are designed Get personally involved! Take an active role in to reward employees on a frequent managing safety and require the same of all and informal basis and are tied to supervisors on the project. zero incident performance. Solicit safety suggestions from the team. Implement suggestions that will result in improvements. Reward near miss reporting and safety suggestions. Develop a recognition and reward program. Celebrate small victories. Establish a safety committee that includes members from management as well as the nonexempt workforce. 4. Project Safety Plan (TBD) E-2 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

290 Project Delivery Manual The Project Safety Plan (PSP) establishes safety goals, objectives, organizational structure, roles, responsibilities, and accountabilities for a project to ensure HSE receives top attention and priority. PMs play a key role in developing the PSP. They can either take direct responsibility for its preparation or delegate that function to the CM. In either case, the project manager must ensure that appropriate safety expertise is provided and that the PSP complies with all UTMB and any other applicable requirements, such as Customer expectations or contract-specific details. The PM also ensures that the PSP is reviewed at proper levels and is approved for implementation. NOTE: need to determine approval level. A typical Project Safety Plan contains the following sections; however, the PSP is tailored to meet the requirements of individual projects, as needed. SECTION1 - INTRODUCTION 1.1 UTMB Safety, Health, & Environment Policy 1.2 Project Safety Plan (PSP) Key Points of Contact 1.3 Subcontractor Safety, Health & Environment Plan 1.4 Management of Change SECTION 2 SCOPE OF WORK 2.1 Scope of Work 2.2 Customer/Project Specific Requirements SECTION 3 PROJECT HSE MANAGEMENT RESPONSIBILITIES AND AUTHORITY 3.1 HSE Responsibility Matrix SECTION 4 ADMINISTRATIVE PHASE 4.2 Employee Orientation 4.5 Training 4.6 Audits & Inspections 4.7 HSE Meetings 4.9 Measurement & Reporting 4.10 Incident Investigations SECTION 5 PRECONSTRUCTION PHASE 5.1 Risk Analysis and Safety Specification Development 5.2 Contractor Prequalification Review 5.5 Contractor Safety Plan Submission Review 5.6 Premobilization HSE Meeting SECTION 6 CONSTRUCTION PHASE 6.1 Site Risk Analysis 6.2 Five Hazard Control Measures Order of Precedence 6.3 Activity Hazard Analysis 6.4 Safety Systems Audit Protocol 6.5 Site Inspection 6.6 Daily/Weekly HSE Site Inspections 6.7 HSE Enforcement 6.8 Notice of Violation of Safety and Health Regulations 6.9 Competent First Aid Person SECTION 7 SAFETY TRAINING 7.1 Project Safety Orientation 7.2 Zero Incident Techiques 7.3 Daily Huddle 7.4 Weekly Toolbox Meetings 7.5 Activity Hazards Analysis Training E-3 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

291 Project Delivery Manual 7.6 Regulatory Training Programs 7.8 Specialized Training and Orientations SECTION 8 RECORDKEEPING AND POSTING SECTION 9 SAFETY AND HEALTH REQUIREMENTS, MONITORING AND PPE 5. Activity Hazard Analysis The activity hazard analysis (AHA) is an important aspects of the HSE program. AHAs are used to identify project hazards and communicate the work techniques required to mitigate these risks. AHAs are intended to identify and eliminate or mitigate hazards or potential accidents associated with specific tasks performed on a project. They help workers focus on specific hazards before they engage in the activities that create those hazards. AHAs can also be used as a planning tool to raise awareness of upcoming potentially hazardous stages of work. The project team prepares high-level AHAs during the startup of a project as part of the PSP. These high-level AHAs identify the more hazardous or difficult aspects of the project, raise awareness, and help focus the project team on risk management. More detailed AHAs are developed as execution plans and statements of work are developed in detail. Contractors, or stakeholder departments responsible for executing the work should prepare the more detailed AHAs for the project s specific activities. A detailed AHA is required any time that specific activities present a high degree of risk. A detailed AHA should be prepared by the contractor or construction superintendent and is reviewed by the PM and/or CM or safety subject matter expert at least two weeks before the scheduled work activity. There is some flexibility in determining what constitutes a high-risk task. However, as a minimum, any task identified in the risk management plan as significant based on HSE risks requires an AHA as part of the mitigation. (See Section 12 and Appendix F of this guidebook for the discussion of risk management.) If the work is being contracted, the contractor must prepare and submit the AHA for review by the PM or CM prior to the start of work. A sample AHA form is shown below. Sample AHA form E-4 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

292 Project Delivery Manual 6. Near Miss A near miss is an accident that almost happens. A near miss includes all circumstances that could lead to an accident, but, based on chance or skill, do not lead to an accident. Since many events in life could be considered near misses, PMs should place practical limitations on reporting near misses. First, something unusual should be involved. For example, every automobile trip involves a statistical probability of an accident, but not every trip is considered a near miss. A vehicle trip in which the driver swerves to avoid a collision is a near miss. Second, focus on near misses that could cause significant property damage or result in a recordable injury. For example, a potential paper cut is not a near miss, whereas machinery used without proper guards is a near miss. Every PM should ensure that the team is focused on identifying the potential for serious incidents before they happen. Most incidents can be prevented by looking for and removing hazards. For example, a loose cable across a walkway might create a tripping hazard. An employee who notices such a hazard must know that it is not only right, but expected, to correct such a hazard by bringing it to the attention of appropriate project personnel. Attention to near misses is one of the most effective ways to identify less obvious situations that, under a certain set of circumstances, have the potential to cause significant damage or harm. There is a direct correlation between the number of near misses and the number of serious incidents experienced because the causes are the same. In fact, almost every serious incident is preceded by numerous near misses that, if noticed and corrected, could have prevented the incident from occurring. View every near miss as a warning and manage it accordingly. Handle near misses in the same manner as an accident that actually occurs. This includes appropriate reporting, investigation to identify the root causes, development and implementation of corrective measures, monitoring for effectiveness, and sharing lessons learned. Handling a near miss in this manner fully leverages its potential for reducing injuries across all projects, work locations and environments. 7. Incident and Near Miss Reporting The investigation and reporting of all significant HSE incidents is an essential component of a HSE program. All significant incidents must be reported within four (4) hours of their occurrence. Days away (lost time) cases also require a telephone call to the UTMB HSE department within four (4) hours of the occurrence. Safety incidents should be reported and investigated promptly. Any employee or contractor who is involved in or who witnesses an incident must report it immediately to the local supervisor. The supervisor must promptly report the incident to the PM. The PM submits the initial incident report within four hours of the incident and submits a detailed incident report within 24 hours. Any fatality or incident resulting in the hospitalization of three or more employees must be reported to OSHA within eight hours. Some states have more stringent reporting requirements, and the PM must be familiar with those local reporting requirements. These should be identified in the PSP. 8. Incident Investigations Incidents, including near misses, should be investigated to determine the root causes. This investigation ensures that corrective actions are identified and implemented. The goal of all E-5 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

293 Project Delivery Manual incident investigations is to improve performance through operational changes, not to place blame. As soon as all personnel are safely removed from the area, the incident location is safeguarded and photographed and/or videotaped. Record the following information: Location, date, and time of the incident Description of the incident Description of the operation being performed at the time of the incident Outline of the sequence of events that led to the accident Identification of all personnel associated with the work task and incident Witness statements Titles and descriptions of all relevant training, orientation, meeting minutes, etc., conducted prior to the incident 9. Simple Determination of Root Causes The root cause of an incident can usually be identified with about five successive why questions, commonly known as the Five Whys. This strategy begins with taking an incident and asking, Why did it occur? After the first response to this question, another why question is asked. Each successive answer is again questioned why to uncover the links in the chain of events that led to the incident. If the answer to a why is beyond the control of the project team, the process has gone too far and too many whys have been asked. The why questions can have multiple answers. When this occurs, each root must be followed to ensure that all root causes are identified and corrected. E-6 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

294 Project Delivery Manual APPENDIX F RISK MANAGEMENT The following information details the risk management process steps, as noted in Section Risk Identification The first step in the risk management process is to identify potential risks. This is best accomplished by combination of techniques, including the following: Documentation reviews Brainstorming sessions with project team Lessons learned from prior projects Checklist reviews Consultation with internal or external subject matter experts Peer or management reviews Root cause analysis 2. Qualitative Risk Analysis Project managers should utilize a simple qualitative approach to categorize risks on every project. The project manager must assign each identified risk into one of the three standard risk levels: moderate, significant, or severe. These categories are based on a combination of the potential impact of the risk and its probability. The following table defines the standard risk levels. Table F-1: Standard Levels of Risk Moderate PMs use a risk-based management approach to focus management attention on the greatest threats and opportunities. Not considered unusual by industry standards and is within UTMB policy. Moderate risks do not typically require specific contingency and are usually mitigated by standard operating procedures and the project management plan. Significant Severe Considered unusual by industry standards, is out of UTMB policy, requires specific contingency, or requires a specific mitigation plan (any may apply). Could significantly and negatively impact UTMB AND cannot be effectively and reliably controlled. It should also be noted that a large category of minor everyday risks apply to every project. Such risks, when not of particular note relative to the project, are assumed to be effectively mitigated by standard operating procedures and are not necessarily included in the risk management plan. As shown in Figure F-1, moderate risks are normally mitigated through UTMB standard operating procedures. All risks identified as significant or severe require a specific mitigation plan. After the mitigation plan is developed, the risk level must be reassessed. In general, severe risks must be mitigated to the significant level. Those risks considered significant or severe after mitigation require a quantitative risk analysis to determine how much, if any, contingency or reserve is required. These risks require close monitoring throughout the job by use of a watchlist or leading indicators. Risks deemed moderate should be monitored to ensure that their level does not escalate. F-1 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

295 Figure F-1: Qualitative Analysis of all Identified Risks Project Delivery Manual Qualitative Analysis of All Identified Risks Moderate Significant SOP & PMP Specific Contingency not normally required Specific Mitigation Plans Quantitative Analysis Specific Contingency Severe Generally requires mitigation to a lesser risk level 3. Quantitative Risk Analysis Methods Projects should use the expected value model to quantify risks. Each risk is assigned a single value associated with the potential impact if the risk event occurs. This value should represent a reasonably pessimistic scenario, but not necessarily the worst-case scenario. Each risk is also assigned a single probability value. The product of the impact and the probability is the value assigned to the risk (see Example F-1). Example F-1 Many project risks have multiple potential outcomes, each with a unique consequence or probability. If the simplified single expected value approach is not adequate, it can be expanded by dividing a risk into multiple gradations, as shown in Example F-2. Individual business units may determine that more advanced statistical modeling tools should be used on some projects to better understand the potential Example F-2 A Project Manager estimates there is a 10% probability that a piece of equipment will be $1 million over budget, but there is also a 30% probability the equipment will have a smaller overrun of $500,000. (Total probability of an overrun is 40%.) The value assigned to the risk is ($1,000,000 x 10%) + ($500,000 x 30%) = $250,000. A Project Manager estimates that the cost of a critical piece of equipment may overrun budget by $1 million. The probability of the overrun is estimated to be one-in-ten, or 10%. The value assigned to the risk is $1,000,000 x 10% = $100,000. impact of risks. The most common of these tools is the Monte Carlo simulation, which uses numerous uncertain variables, each with a defined set of possible values and a probability distribution. The simulation calculates multiple iterations by sampling the values from the probability distribution using a random number generator to introduce the element of chance. This technique produces a risk distribution that allows the project manager to predict impacts with a given range of certainty. For example, the simulation may show a 25% probability that the total impact will be less than $100K, a 60% probability that the impact will be between $100K and $200K, and a 15% probability that it will be over $200K. Project Controls should assist projects that require risk simulations. 4. Risk Mitigation All projects should mitigate risks and reduce the associated probability or potential impact by using a combination of the following five general classes of mitigation. F-2 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

296 Class Table F-2: Risk Mitigation Classifications Description Project Delivery Manual Elimination Transference Insurance Control Contingency/Reserves Eliminate the risk from the project (i.e., reduce the probability of risk or impact to zero) by modifying the scope of the contract, obtaining additional expertise, using proprietary technology, etc. (Elimination is the best possible class of mitigation.) Eliminate the risk from UTMB (but not from the project) by transferring it to a different party, usually the Customer or a subcontractor. Indemnification, warranty, and acceptance criteria are examples of methods used to transfer risk. Project-specific insurance coverage may reimburse the project for losses resulting from a specific event. This is also considered a form of risk transfer. A combination of careful planning, constant monitoring, and implementing corrective actions as needed to reduce the probability or potential impact of risks. A pool of funds set aside to pay for the impact of risk events. (Contingency is a last resort to protect UTMB from unplanned losses, because it amounts to acceptance of the risk.) Mitigation plans reduce the impact or probability of occurrence for all risks identified as significant or severe by the project team. If the mitigation plan is considered viable (i.e., the benefits outweigh the cost to implement), it should be funded and implemented. After all viable mitigation efforts are built into the project plan, the probability and potential impact of the residual risk is recalculated. The resulting value is the amount the project manager presents to management for consideration as a contingency or reserve in the project budget. The best form of risk mitigation is always to plan and execute the work in a manner that eliminates the risk of loss. 4.1 Establishing Appropriate Levels of Mitigation The PM must develop skill in determining the optimal amount of mitigation to employ on a project to provide the greatest cost benefit to the project and UTMB. Simple mitigation measures often provide a significant benefit at relatively small cost. Each successive layer of mitigation tends to become more expensive and less effective. The break-even point is the point at which one dollar of mitigation provides one dollar of risk reduction. Mitigation measures at or beyond the break-even point should not be undertaken without compelling reasons. Tips for Success Maximizing Limited Budget Theoretically, every mitigation measure that provides a benefit greater than its cost is implemented. In the real world, the funds available to reduce risks in an inherently risky business must be limited. To get the most bang for the buck, sort the risks based on the ratio of benefit to cost. Beginning with the highest benefit to cost ratio and working down, implement as many items as are allowed by the budget (or until the ratio reaches 1.0). F-3 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

297 Project Delivery Manual Effective Mitigation Techniques Negotiate the right contract Select the right people/provide the right talent base Invest in appropriate tools, procedures, and training Institute formal change management Develop a project quality program and use it Ineffective Mitigation Techniques Bank solely on a good customer relationship Find someone to blame Wait out problems Take a sue me approach Hope for the best 5. Risk Register The risk register is a tool used to identify, track, quantify, qualify, mitigate project risks. It is a MS Excel based file that is generated during a project s planning phase and updated as risks are identified, qualitatively assessed, and quantitatively assessed. The register also allows for mitigation plans to be described. The risk register can then be used during regular project meetings as a means to review/update risks and mitigations for those risks. The risk register is a living tool and is meant to be updated on a routine basis. Sample Risk Register 6. Insurance Basics 6.1 Insurance Program UTMB has a comprehensive insurance program designed to protect the company from sudden major losses resulting from claims. The details of the UTMB insurance program must be handled and distributed with caution; therefore, the PM should consult the insurance department or procurement department for information regarding insurance requirements for a project. UTMB may implement project-specific insurance policies if they are considered necessary for the success of a project. Some examples of project-specific policies include builders all risk, general liability policies for concurrent Customer negligence, pollution liability, and policies that provide specific professional liability. Coverage at levels higher than standard insurance limits may be available if it is deemed necessary and appropriate. 6.2 Insurance Limitations F-4 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

298 Insurance companies are experts at managing risk for a profit. Over the long term, insurance companies recover the cost of all claims with a reasonable profit margin through the collection of premiums. Therefore, the insurance program is a financial tool, not a risk mitigation tool. Project managers must understand that claims made under UTMB insurance policies will always be recovered by the insurance carrier, with interest and profit, in subsequent years. Project Delivery Manual Insurance companies eventually recover claim costs, with a profit, through their premiums. Even project-specific insurance policies have limitations. Because the insurance carrier does not generally have the opportunity to recover costs in subsequent policy years, these policies tend to be very expensive. Essentially, the project pays for anticipated risks through high premiums. A Customer who pays for a project-specific insurance policy may provide a beneficial form of risk mitigation. F-5 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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300 Risk PROJECT MANAGEMENT PROJECT RISK ASSESSMENT** Risk Level: Before Mitigation (N/A, Moderate, Sig/Severe) Contingency Potential Request Contractual Risks T&C AE/CM Consequential damages Liquidated damages Property damage Damage to client property Indemnities and hold harmless clause Limits of Liability outside of policy Deficient Services clause Latent defects clause Third party injury and damages Environmental Hold Harmless Intellectual property ownership Owner's right to terminate Contractor's right to terminate Responsibility for safety and environment Dispute resolution clause Design to cost clause Warranty Conditions Commissioning Terms Service Contract Act Davis Bacon Act Labor Rates N/A M S* $ $ Financing & Financial Risks Inflation and escalation assumptions Funding Source and Assigned CFS(s) Bonds and Insurance Credit risk, default history PUF, LEER, other limitations on time Capitalization Rules and OPEX Escalation within buyout duration Insurance Requirements Unusual insurance requirements ROCIP Health & Safety Risks Heavy equipment use EC/ICRA Assessment and Plan EC/ ICRA Additional Requirements Hot Works Overhead work Project Risk Assessment.xls 1 OF

301 Confined spaces Hazardous materials abatement HAZMAT regulations requirements NFPA 99 Specific Scope not covered ILSP/ILSM Prepared and Approved Estimate & Schedule Accuracy Risks Quantities by major CSI Unit prices by major CSI Productivity by major CSI Insufficient design/vague perf specs prior to bid Missing Scope New design or construction technology Difficulty of geography location Accuracy of subcontractor quotes Lack of bid time resources Tightening labor market Uncertain delivery schedules Vendor pricing validity period Unreasonable client schedule expectations Bid spread (lowest compared to next lowest) No weather days in contract Schedule Float Design Contingency Procurement & Subcontracting Risks Long Lead procurement within schedule Procurement method and duration Supplier or subcontractor default Unable to meet insurance requirements Exceptions to terms and conditions Poor Safety record Absence of bid bond Subcontractor performance Unknown subcontractors Limited/stressed materials market Attic stock/spares/replacement parts impact Subcontracting Levels HUB MWBE Compliance Incomplete scope/csi coverage in bids Environmental Risks Unusual ecological restrictions Disposal of contaminated soils and materials HAZMAT Survey and definition HAZMAT controls during construction Handling of lead paint, asbestos, PCB's, etc. Air quality standards Nox/Non attainment PROJECT MANAGEMENT PROJECT RISK ASSESSMENT** Project Risk Assessment.xls 2 OF

302 ESA Phase I and Phase II if needed SWPPP and Clean Water Act Noise control and abatement Low VOC/odors ventilation and controls Dust and dirt control Adjacency to HAZMAT sources Radiology: Shielding and Containment Biochemical waste: containment BSL 2 to BSL 4 Special Measures ASHRE Air Changes/Filtration/CFM standards Endangered Species protection Historical preservations/artifacts Terminal cleaning and testing PPE availability, training, usage Political and Governmental Risks Changes by Agencies/Regulators Delays by Agencies / Regulators / Third Parties FEMA accounting practices UT/OFPC/ impact of Regents' Approval process Execution Risks Availability of approved program document Consultants for lead designer Applicable codes and standards Extraordinary or unusual codes Client Imposed design changes Adjacent processes or occupancy to job Academic schedules (rounds, exams, etc.) Quantity growth potential Accelerated schedule Inadequate planning time Availability of equipment, material, & trades Permanency of key staff Use of heavy/tracked/special equipment Constructability Complex QC, & safety reporting requirements Client reporting and approval requirements Excessive coordination requirements Coordination of deferred maintenance Inadequate mechanical completion testing Severe weather events Lack of client construction experience Poor or incomplete engineering drawings First of kind construction Craft labor training Craft labor certification and licensure PROJECT MANAGEMENT PROJECT RISK ASSESSMENT** Project Risk Assessment.xls 3 OF

303 Physical Site Risks Poor weather and environmental conditions Site Security Requirements/Adequacy Potential for excessive loss, theft, or vandalism Difficult access or limited work area Limited work hours Shared site responsibilities Soil conditions Traffic during construction Access congestion / transportation restrictions Quality of existing conditions assessments Certainty of existing utilities location Use of as built plans Right of way Acquisition Environmental approvals and permits Recording / preserving historical finds Geologic conditions (earthquake,floods,etc.) Uncertain limits of construction Utility and Operating Risks Availability/lead time for utilities hook ups Long lead utility procurement (specify) Long lead utility procurement (specify) Electrical power continuity Gas continuity Water and sanitary continuity Storm water impact outside SWPPP limits IT/IS systems availability Nurse call/ Biomed Telemetry continuity Fines, penalties Other Risks Add Add Add Total Contingency Potential Required Risk Management Documentation for FSC: Risk analysis worksheets for Severe and Significant risk levels PROJECT MANAGEMENT PROJECT RISK ASSESSMENT** CONTINGENCY TOTAL *Severe Risk Requires Risk Analysis Worksheet and approval of mitigation plan/means Project Risk Assessment.xls 4 OF

304 PROJECT MANAGEMENT PROJECT RISK ASSESSMENT** Risk Definitions AND Initial Assessment for Mitigation IMPACTS: N/A = not applicable to this project M = Moderate. This would be a "routine" and normally anticipated and acceptable impact to personal safety, property or capital, whereby usual processes, controls, training, contingency, float are the usual and anticipated means of mitigation. S = Significant or Severe. This is a level of impact that would endanger personal safety, property, or capital that is not acceptable as a "routine" cost of business. It will require specific mitigation that lowers it to moderate impact. PROBABILITY: Low = 0% 30% chance of occurrence; "possible but unlikely" Medium = 30% 60% chance of occurrence likely will occur or be present High % a condition of the job that is assured or most likely MITIGATION MATRIX XX Requires specific mitigation means Severity Probability N/A M S L X XX that are documented X XX X Normal means and methods can address Common mitigation means: Training and Staff Certifications Method: Process with checklist and oversight Supervision: Additional oversight/management Means: PPE, containment, air machines, etc. Material: spares,pre assemblies,etc. Transfer of liability Insurance Elimination Cost contingency for design, E&O, scope Schedule: float for unanticipated conditions H XX XX ** THIS DOES NOT TAKE THE PLACE OF STANDING UTMB ICRA OR ISLM REQUIREMENTS. IT IS INTENDED TO PROVIDE A HOLISTIC APPROACH TO ALL ASPECTS OF A PROJECT PRIOR TO SEEKING FSC APPROVALS. Project Risk Assessment.xls 5 OF

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306 Project Delivery Manual APPENDIX G QUALITY MANAGEMENT 1. Applying the Quality Management System Not all projects require a project-specific quality program; in many cases, the standard UTMB policies and procedures suffice. However, some contracts may require a project-specific quality program as a project deliverable while others contain more rigorous quality requirements than those contained in individual procedures. In these cases, the PM should implement and document a project-specific quality program. Even a project with a presumed low risk of quality problems must focus on quality. Every PM is responsible for making quality part of our the standard BOF operating culture. By doing so, all PMs help ensure higher levels of customer satisfaction, greater profits, and more growth opportunities across the department. As part of the project QMS, the project manager uses the following process: Identify all relevant standards and requirements. Identify processes to achieve those standards and requirements. Work with process owners to establish objectives for the process and identify performance indicators (metrics) to measure those objectives. Communicate process objectives to the project team. Evaluate and audit performance against established metrics. Determine appropriate corrective actions, oversee their implementation, and monitor progress to determine their effectiveness. Participate in the Customer feedback system. Incorporate into lessons learned for the future. 2. Project Quality Management System To be effective, the project QMS must be designed to suit the project s scope. The QMS must also be forward-looking to ensure that QA/QC procedures are in place before they are needed. Before a project transitions into a new phase of work, the QMS must be evaluated and modified to address the quality concerns associated with the coming phases. 3. Quality Assurance/Quality Control Quality Assurance (QA) - is the element of Quality Management that requires developing and implementing a system of processes and procedures that will enable the PM and project team to provide confidence that products and services meet mutually agreed-to requirements. Quality Control (QC) - is the element of Quality Management that focuses on verifying compliance with the mutually agreed-to requirements. The key aspects of verification are: Verification is performed by individuals who are independent of, and at least as qualified as, those who produced the product or provided the service. The criteria for acceptance are based on the internal and external mutually agreed-to requirements. 3.1 Audits BOF management should periodically perform project QA reviews and inspects audit results and Customer assessments to ensure the continuing suitability, adequacy, and effectiveness of the QMS. The project audit process is designed to determine whether the QMS is effectively implemented on a project with the desired (beneficial) effect. Such reviews enable management to identify opportunities for improvement and to identify how work practices can be modified to ensure continual improvement. G-1 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

307 Project Delivery Manual Additionally, internal audits look closely at financial controls and procedures. Internal audits also evaluate safety, timekeeping, human resources, procurement, and other important aspects of UTMB business management practices. If an audit discovers areas of noncompliance, a formal finding should be issued and corrective action must be completed by the PM or other assigned individual. The corrective actions taken to correct the nonconformance must be documented. Before the finding and audit are closed, the deficient areas may be reaudited to ascertain that the corrective actions have been implemented and are effective. The results of each audit cycle are consolidated for management reporting. The person completing the audit summarizes common findings and issues a report to management. The report focuses on identifying shortcomings to ensure that appropriate preventive measures are taken, but also identifies areas of success that can be applied on future projects. This report becomes a vital source for lessons learned on all projects. 3.2 Reviews and Evaluations QC includes multiple levels of review to check the adequacy of the work. Each check is intended to ensure that the end product meets performance requirements specified by the user. The table below identifies some common types of review and their purposes. The results of each review and the record of changes made as a result of the review must be maintained in the permanent project record. Review Type Independent or peer review Interface review Constructability review Calculation checks Review by management Purpose Confirms the adequacy of the deliverable. Examples include the intradiscipline review of design documents, technical editing of a report, and peer review of reports. Verifies compatibility and lack of interferences among disciplines. Typically this involves an interdiscipline review of design documents. Ensures that plans can be implemented in the field. Ensures that all calculations are error-free and that software calculations are accurate. Ensures compliance with the terms and conditions of the contract and GBU matrix of authority. Project managers should ensure that QC checks are conducted for all in-house activities. On studies and simple design projects, the QC process is a relatively simple independent check by the PM or other qualified individual. However, the process becomes significantly more complex on larger projects such as preparation of construction plans in which the engineering calculations, drawings, specifications, and estimates must be checked in detail by a qualified independent engineer. If the PM decides to outsource or contract any process that could impact product conformity, these processes must be controlled to the same extent as if they were executed in-house. Therefore, QC provisions in the QMS must include evaluations of supplier, contractor, and joint venture partners. Such terms must also be included in the related contractual agreements. A key QC step is to select suppliers and/or subcontractors based on a demonstrated ability to supply products and services that meet requirements. Quality criteria for selection, evaluation, and reevaluation of suppliers and subcontractors must be stated in contract documents. As with in-house QC activities, the results of evaluations of suppliers and/or contractors, as well as G-2 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

308 Project Delivery Manual actions taken to correct deficiencies, must be maintained as part of the permanent project record. The following is a four-phase QC inspection program: Preparatory: before any definable work has started Initial: when a representative amount of work has been completed Follow-up: daily to ensure continuing compliance with metrics Completion: after completion of all work with punchlist of deficiencies All technical work products should be checked for quality! As appropriate to the project (e.g., construction), an inspection and test plan is developed, stipulating the required testing methodologies for applicable products (including those provided by contractors). Contract requirements and applicable codes and standards must be reviewed when determining the type of testing program to implement on a project. Only qualified and certified staff may perform inspections and analyze the results. Project managers should consider using independent test laboratories for testing of construction or fabricated materials if compentent personnel are not already staffed on the project team. Contractors are responsible for their own QC, which is then validated by the BOF PM. In-shop supplier quality surveillance is used during the manufacturing or fabrication cycle to confirm compliance with purchase order or subcontract requirements. Through subcontracting arrangements, supplier quality inspection services are available worldwide. A supplier surveillance inspection plan is developed as part of the procurement cycle and includes witness and hold points appropriate for the product at the times inspections are to be performed. 3.3 Effective Corrective and Preventive Action Program An effective corrective and preventive action program should be implemented on all projects to avoid project nonconformance. If nonconformance does occur, the PM should ensure that it is identified and corrected and that quality is reverified before the product is delivered or used. Corrective action eliminates the cause of a known nonconformance to prevent its recurrence. Preventive action is taken to eliminate the causes of potential nonconformances or other undesirable situations. 4. Customer Assessment System (TBD) Many metrics help determine the quality of our work and serve as a basis for improving work processes. The most important metric is the Customer s level of satisfaction with our final work product. To measure this level of satisfaction, BOF should implement a formal Customer Assessment to be utilized for Customer feedback on BOF-managed projects. The Customer Assessment survey has 13 items the Customer would evaluate their satisfaction on every project. The items are as noted in the following table. Customer Assessment Categories Safety Quality BOF provides leadership, consistency, and direction to ensure the safety of our staff, contractors and subcontractors, customers, and the public, and our performance aligns with your project safety requirements. BOF identifies the mutually agreed requirements for your project, delivers products and services accordingly, and strives to continuously improve performance. G-3 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

309 Project Delivery Manual Customer Assessment Categories Integrity Diversity Innovation Sustainability Communication Teamwork and Collaboration Proficiency Monitoring and Control Change Management Risk Management Overall Performance BOF operates and performs professionally, deals with all project issues and participates openly, fairly, and honestly. BOF encourages and promotes diversity in project delivery and meets the established project goals. BOF actively seeks and uses new ideas to deliver effective and efficient solutions for your project. BOF plans and performs work on the project with respect for all valuable and limited resources BOF keeps you well informed of project progress, issues, and concerns, and responds effectively to oral and written communications. BOF establishes and maintains productive relationships with you, your project staff and all stakeholders, and understands and respects your priorities in performance of the project. BOF provides qualified staff, and subcontractors for your project, and the appropriate facilities, equipment, and tools for project execution? BOF monitors and reports project status and forecasts, and proactively controls project cost and schedule performance to achieve the results agreed upon. BOF establishes clear scope requirements, identifies the cost and schedule impact of project changes, informs you and obtains your approval before proceeding. BOF identifies and monitors risks to your project, and mitigates or controls risks to minimize potential project impacts. Overall, how does BOF performance and the value of our services compare to Customer expectations? At least once during each project, BOF management should request Customer feedback. Requesting a Customer to complete the Customer Assessment should be part of the standard project closeout procedures. The PM should work with BOF management to ensure that this is accomplished. After the Customer completes the assessment survey, the results are shared with the project team, the management team, and others as deemed applicable by management. 4.1 Follow-up Meets requirements is the minimum standard that any projects are expected to receive on a Customer assessment. If a Customer satisfaction rating falls below this level in any category, BOF management should promptly follow up with the Customer to understand their concern and identify corrective actions, if appropriate. The PM is usually charged with implementing the corrective actions. Meets Requirements is the minimum acceptable sandard for all projects. After corrective measures are in place, management follows up with the Customer to confirm acceptability of the action taken. 4.2 Improving Customer Feedback Scores The obvious way to improve customer feedback scores is to ensure that BOF project execution always meet requirements the first time. This is best accomplished when the PM implements a strong quality program throughout the project and ensures that all project team members are aware of Customer expectations and requirements. Project managers use the following tools to increase conformance with requirements: G-4 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

310 Project Delivery Manual Increasing project staff awareness of Customer requirements. Establishing quality and process objectives. Conducting periodic internal measurements to assess performance. Implementing corrective actions, as needed. Using customer feedback to modify training requirements, quality objectives, and process objectives to achieve continual improvement in the quality of work products. G-5 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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312 Project Delivery Manual APPENDIX H SCHEDULE DEVELOPMENT AND REPORTING The following sections provide additional information on schedule development, baseline schedules, and schedule control basics. 1. Scheduling Basics 1.1 Schedule Terminology Activity Baseline Schedule Constraint Critical Activity Critical Path Critical Path Method (CPM) Early Dates (Early Start/Early Finish) Forecast or Current Schedule Free Float Integrated Schedule Master Late Dates (Late Start/Late Finish) Milestone Monthly Schedule Update Network Schedule Relationship Resource-loaded Schedule Schedule Variance Total Float A discrete work item to be performed to deliver the scope of work. The Customer-approved schedule that reflects the plan for implementing a project. This schedule reflects no status, and is sometimes referred to as the target schedule. An imposed date restriction on the start or finish of an activity that overrides logic relationships. Any activity on a critical path. A delay in a critical activity will delay the project. The critical path is the sequence of activities that determines the minimum possible duration of the project. When viewed in a network diagram, the critical path is the longest path to the end of the project. Any delay to an activity on the critical path will delay the completion date. The most common form of network schedule, the CPM identifies the critical path, which becomes the focus of schedule management. The calculated earliest dates that an activity can start or finish based on the completion dates and relationships of the activities before it. The most recent schedule, consisting of actual dates together with the project team s forecast start and/or finish dates for each activity remaining. The amount of time that a noncritical activity can be delayed without affecting the completion date of the next sequential activity. The overall project schedule, created by merging individual contract schedules (i.e., designer and construction contractors) and including relationships between activities that are performed and managed by different groups. The calculated latest dates that an activity can start or finish without impacting the project completion date. An event representing initiation or completion of a significant aspect of work or a contractual requirement. A regularly scheduled status update of the current schedule, reflecting completed work and forecast completion dates for remaining efforts. A schedule in which the activities are sequenced and linked together based on logical relationships, so changes to one activity are reflected in subsequent related activities. Defines how one activity is related to another. A relationship can be one of four types and may include a lag time: 1. Finish to start (FS) activity cannot start until another is finished. 2. Finish to finish (FF) activity cannot finish until another is finished. 3. Start to finish (SF) activity cannot finish until another begins. 4. Start to start (SS) activity cannot begin until another starts Schedule in which resources (e.g., budget, equipment or craft/discipline hours) are integrated into the schedule activities. The difference between identical activities or milestones (typically the project completion milestone) in the current schedule and in the baseline schedule. The amount of time an activity completion can be delayed without affecting the project completion date (the difference between early finish and late finish). H-1 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

313 Project Delivery Manual 1.2 Managing Levels of Schedule Detail Schedules are often referred to by their level, which reflects the amount of detail provided. The following discussion summarizes the description and typical uses for each level of schedule. The Level 1 or master program schedule is a summary level schedule that establishes key completion objectives for a program or project. It defines the overall period of performance, and shows major milestones, including contractual milestones, deliveries, and major program phases. The Level 1 schedule is used for proposals, executive management, and formal Customer presentations; it defines the performance requirements for the Level 2 schedule (see Figure H-1). Figure H-1: Relationship Between Schedule Levels Level I Master Program Schedule Year 1 Year 2 Year 3 Year 4 Year 2 Year 3 Level II Intermediate Schedule Level III Detail Schedule January February March April Level IV Task Schedule The Level 2 or intermediate schedule contains an intermediate set of activities that must be accomplished to achieve Level 1 schedule objectives. A Level 2 schedule provides the detail of a Level 1 schedule as well as contractually required deliveries of critical long lead items, hardware, software, and other key items. The Level 2 schedule is used for presentations to GBU and division management and for monthly Customer updates. The intermediate schedule defines the performance requirements for the Level 3 schedule. The Level 3 or detail schedule contains a detailed set of activities that must be accomplished to achieve Level 2 schedule objectives. This schedule contains enough detail for the project manager to plan, direct, and monitor the completion of work and to reliably calculate a project s critical path. The activity structure of the schedule must be consistent with the project s tasks. 2. Baseline Schedule and Requirements for Alteration of Baseline 2.1 Baseline Control Baseline control is a concept that is fundamental to many aspects of project management. To truly manage an effort, a plan must be created and approved, and progress must be measured and compared to the plan. Changes to the plan must be controlled to preserve its integrity as a management tool. A contract level (Level 1) baseline schedule, consistent with contract requirements, is required for all projects. This schedule is typically a contract deliverable early in the project. Most projects (except for simple studies and level-of-effort work) must establish a Level 3 baseline schedule to measure and manage the work for comparative and variance purposes throughout the project. Always archive the initial baseline schedule. On projects that include conceptual planning or preliminary engineering, the official baseline schedule is sometimes established only after completion of these early phases of work. H-2 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

314 Project Delivery Manual Similarly, on a project with multiple phases, it is common for the entire project to be rebaselined when transitioning to a new phase. For example, during detailed design, the construction plan often evolves so that the baseline schedule bears little resemblance to the current schedule upon kickoff of the construction phase. 2.2 Approval of Baseline Schedules The baseline schedule is developed during the Project Definition Phase and approved during the Project Initiation Phase when the Customer Agreement is finalized and approved. Contractual requirements and overall execution strategy drive the development of the schedule. During the review and approval process, the PM, or delegate, provides documentation of the key points that form the basis of the schedule to ensure that all parties have a mutual understanding and common expectations. 2.3 Changes to the Baseline Schedule The baseline schedule is revised, as appropriate, with approved changes. As contractual scope or requirements change, those changes are reflected in the baseline schedule. The project s change order form should include a required field for identifying schedule impacts and a field to indicate whether the baseline should be updated to reflect the change. If a change does not impact schedule, this should be stated in the change. Some changes impact schedule but are not valid changes to the baseline (e.g., productivity issues or supplier performance.). These changes represent variances from the baseline. In extreme cases, variances from the baseline may accumulate to the point that the baseline schedule no longer is a useful comparison to the current work plan. If so, it may be appropriate to rebaseline the schedule (i.e., to replace the baseline with an entirely new version without the logical audit trail of approved changes). Approval of a new baseline is a formal process that must be approved at the same level as the original baseline. 3. Controlling the Project Schedule Schedule control is a fundamental principle of project management. All projects require schedule control appropriate to the work. In some cases, this may be a Gantt chart (without logic) or simple milestone schedule; on most projects, a logic-based CPM schedule is necessary to control the work. Project schedules provide responsible individuals with timely and accurate status on work performed and timetables for upcoming efforts. However, schedule control does much more: it ensures that decision makers (project team, PM, Customer, management, etc.) have all the information required to make decisions without impacting project schedule in an unknown or unanticipated way. When changes are made from the plan, schedule control allows downstream impacts to be predicted and assessed in sufficient detail to allow for informed management decisions. Project management means having schedule control, not merely having a schedule. To implement an effective schedule control system, the project manager ensures that the schedule is updated, measured, analyzed, and enacted in a timely manner. The process begins by verifying that the schedule (durations, relationships, resources, etc.) is valid and achievable. The project manager must then implement a process to update and analyze the schedule at least monthly. Schedule risks must be identified so the project team can focus on activities that pose the greatest threats or present the greatest opportunities. Action plans must be developed and implemented. 4. Scheduling Software H-3 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

315 Project Delivery Manual Several software products are available for scheduling projects. When selecting a scheduling package, the PM should consider Customer requirements, electronic interfaces (customers, contractors, etc.), project complexity and risk, skills and experience of the project team, and size of the schedule. Today s scheduling applications have few limitations. In most cases, functionality is limited by the user s knowledge and experience. Project managers must ensure that the schedule is developed and maintained by a qualified individual. Table H-2 summarizes the standard software available. It is recommended that a project controller be responsible to maintain schedules for project managers so the project managers can focus on executing the entire project versus constant schedule maintenance. Table H-2: Schedule Software Options Primavera Project Planner (P6) Microsoft Project Microsoft Excel Typical Type of Scope Any Any Studies, PM Services Typical Contract Cost $100k to Unlimited $0 to $2,000k $0 to $300k Cost to Project $ thousands per license $ hundreds per license No charge Recommended User Planner/Scheduler PM or Planner/ Scheduler Coordinator or Administrator Logic Based Yes Yes No Resource Loaded Yes Yes No Typical Max Activities Unlimited* Web-based Version Yes Yes N/A Training Suggested Three day course (very 2-hour self-study Minimal basic only) Strengths Capacity, powerful, Price, ease of use, Simple to use versatility, industry industry standard for small standard for large projects projects Limitations *For Primavera 5.0 Price, complexity, limited users Capacity, built-in report versatility, resource shaping, WBS changes and carrying actuals No logic/resources, capacity, lacks professional image H-4 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

316 Project Delivery Manual APPENDIX I BUDGET DEVELOPMENT AND CONTROL 1. Terminology The word baseline is used in different ways when discussing budgets. Its meaning can usually be derived from the context. However, use of the following terms will help eliminate confusion. Baseline Budget Budget Rebaseline Current Baseline Budget Initial or Original Baseline Budget Performance Target The official value against which cost performance is measured. Discarding the current cost baseline and replacing it because it is no longer a reasonable value accepted by BOF or the Customer. This is most common as a project transitions into a new phase (e.g., upon completion of design). The initial cost baseline plus any approved change orders and/or rebaselines. The cost budget established at the start of the project. A value (often more aggressive than the baseline budget) used as a goal for individual or team performance. Targets may be recognized by the Customer or they may be strictly internal to BOF. 1.1 The Baseline Budget Process To ensure that project tracking is as accurate and efficient as possible, the first step in the budgeting process is to understand the project and determine the appropriate level of detail for the project s budget. The level of detail may vary from project to project, but it must be sufficient to allow for meaningful financial analysis. This requires that the typical budget be very detailed. 1.2 Revising the Baseline Budget The original budget established at the outset of a project becomes the initial baseline budget. As work progresses, approved Customer change orders may lead to changes in the baseline budget. The current baseline budget refers to the original cost baseline plus any approved changes. Variances resulting from performance issues do not result in a change to the baseline budget. A budget rebaseline is a comprehensive re-estimating process performed when the baseline budget no longer represents the work at hand. The most common reason for a budget rebaseline is the transition to a new project phase. For example, a baseline budget may be developed for the entire project before it is designed. During the design phase, the project may evolve so that the construction cost is significantly different from what was originally envisioned. Rather than begin construction with major variances, the construction budget will typically be rebaselined. Depending on the cause, it may be necessary to rebaseline the budget to provide a realistic measure of project performance, particularly if the performance is driven by the Customer (e.g., slow Customer reviews). However, internal productivity issues are not typically cause for a rebaseline because such an action masks problems that require corrective action. In any case, a rebaseline of the budget must be approved by the same levels required to approve the original baseline. 2. Cost Control The goal of cost control is always to complete projects and meet all contractual requirements as efficiently as possible. Implementing cost control systems early in the life of a project will increase the chances of overall project success. Good cost control systems help in many ways, but most importantly, they provide decision makers with timely and accurate information necessary to make daily business decisions. They also prevent unauthorized commitments and expenditures from impacting a project s bottom line. I-1 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

317 Project Delivery Manual 2.1 Overview The discipline of Cost Engineering monitors costs against baseline and provides timely status reports on performance, trends, variances, forecasts, commitments, and expenditures for all project elements. To provide effective cost controls, the cost engineer would interact daily with the PM, other project team members including project A/E, CMs, procurement personnel, and any other project team members. An initial function in establishing the project control system is incorporating the cost estimate, as budgets, into the cost control system. Ensuring accuracy of data between the BOF database and PeopleSoft is important. It is important to consider in the planning phase that when adjunct databases are deployed for project control purposes, a rigorous reconciliation process must be established between that database and PeopleSoft. 2.2 Managing Commitments and Accruals Commitments A commitment is an obligation (most likely contractual such as a purchase order (PO) or contract) to spend project funds. All commitments (POs, contracts, etc.) issued by the project must be coded to the PeopleSoft CFS. Where assigned, the project cost engineer should be responsible for the accuracy of this coding Actual Costs Actual costs provide a snapshot of project costs that have been recognized by the accounting system. Where assigned, the project cost engineer is responsible for validating project costs, and, if they are incorrect, for the actions necessary to correct them. Where applicable, the project cost engineer is also responsible for reporting these costs within all management reports. For OFPC projects, project management, or construction management contracts for which we must track not only BOF costs but the Customer s costs, the project cost engineer is responsible for tracking commitments and cost as discussed in this appendix. Great diligence should be exercised to ensure that commitments and actual costs are entered into the control system timely for reporting purposes Accruals/Encumbrances Accruals/Encumbrances are unrecognized incurred costs, that is, costs that are incurred by the project but are not yet recognized by cost reporting systems. The following are two common examples of costs that may be significant but have been delayed in being posted to the job cost system: Contractor work that has been performed but not paid for (committed expenditures but not yet job costed) Materials received on site but invoices not yet processed Costs are incurred by projects when authorized work is performed or materials are delivered to the project site. These incurred costs can be entered into and tracked as either actual costs or accrued costs. Actual costs are costs that have been incurred by a project contractor or supplier, have been invoiced to UTMB, and have been loaded into the accounting system. Accrued costs are costs that have been incurred by a project I-2 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

318 Project Delivery Manual contractor or supplier but that have not yet been invoiced to UTMB, or may have been invoiced but have not yet been processed into the accounting system Control of Procurement and Subcontract Costs Many projects include significant procurement and subcontract costs. Project managers must carefully manage both commitments and actual expenditures for goods or services from third parties Review of Actual Costs Actual cost should be reviewed routinely for accuracy. Commitments and expenditures should be checked and, if in error, corrected. It is critical that this process not be delayed. As previously stated, inaccurate job costs have a significant impact on billing, cash flow, and financial analysis. I-3 PROJECT DELIVERY MANUAL-R0.DOCX Rev 0

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