Never Give Up! Strategies for Overcoming Project Delivery Challenges and Roadblocks

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1 Conference: Design-Build for Water/Wastewater Conference 2016 Paper/Presentation Title: Never Give Up! Strategies for Overcoming Project Delivery Challenges and Roadblocks Authors: David Schwartz, CDM Smith; Brent Christ, DC Water/DBIA; Mike Angeli, PC Construction/DBIA; Brian Hagerich, CDM Smith/DBIA; Leonard Benson, DC Water; Phil Braswell, Brown and Caldwell Contact: Phil Braswell - pbraswell@brwncald.com Abstract Never Give Up! Strategies for Overcoming Project Delivery Challenges and Roadblocks You've heard the success stories; now you can hear the unfiltered reality of what goes on behind the scenes of a complicated and pressure-packed project, and learn how one team worked together to slay the dragons and make the effort a success and point of pride for all involved. This battle-tested project team will frankly address the major challenges they faced and worked their way through, share strategies for design-building innovative technologies on a large scale, and emphasize the vital importance of intensive partnering to overcome potential roadblocks. Learning Objectives: Project lessons learned: We share some hard-earned lessons from our project about the need to effectively address change management, unforeseen conditions and administrative hurdles. Challenges of complexity: the innovative, large projects that DB is ideal for can also present difficulties. Here's what to expect and how to overcome those challenges. Prioritize partnering: Partnering on a tricky DB project isn't merely an occasional "kumbaya" meeting. Learn how our team of design-builders and owner worked intensively together to overcome challenges, manage change and make the project work. Best practices for challenging projects: with lessons learned from this project, we leave the audience with our recommendations to plan for the struggles, overcome the obstacles and reach the finish line as a team.

2 Never Give Up! Strategies for Overcoming Project Delivery Road Blocks Brent Christ, DBIA, DC Water Leonard Benson, DC Water David Schwartz, CDM Smith Mike Angeli, DBIA, PC Construction Brian Hagerich, DBIA, CDM Smith Phil Braswell, Brown and Caldwell

3 Agenda Project Overview Major Hurdles Outcome: Were Objectives Met?

4 Overview 370 mgd (1400 megaliter/day) treatment facility World s largest advanced (nutrient removal) wastewater treatment plant Class A biosolids

5 Key Contributors Bringing a Complex, World Class Project to Life Owner DC Water Biosolids Program Manager Brown and Caldwell Main Process Train Design Build Team PC Construction/CDM Smith JV CHP Design, Construction, and Operation Pepco Energy System (PES) with Black & Veatch and Ulliman Shutte Construction Mgmt for MPT, CHP, and FDF Arcadis Final Dewatering Facility Design CH2M Final Dewatering Facility (1C) Construction Corinthian Contractors Final Dewatering Facility (2C) Construction PC Construction Site Preparation Construction Management Earth Tech (AECOM) Site Presentation Construction Alberici Construction

6 Objectives Convert Class B, lime stabilization sludge facility into an innovative sustainable Class A biosolids system Reduce quantity of biosolids and hauling Increase marketability of biosolids Recover energy Reduce greenhouse gas emissions

7 Components 4 Contracts 3 Delivery Methods

8 Why Alternative Delivery?

9 The Result Screening Centrifuges Storage Bins

10 The Result Cambi Digesters Flares

11 Agenda Project Overview Major Hurdles Outcome: Were Objectives Met?

12 Contract Negotiations Industry Outreach Lowered Hurdles Bonding company issues Liability Primary and secondary specifications

13 Owner Requirements Fixed Price Price certainty at an early phase for budget management Still allowed for competitive pricing amongst the best shortlist teams in addition to a technical evaluation at the RFP stage

14 Owner Requirements Sole Source to Cambi A Term Sheet is Not a Complete Contract Commercial Terms Backcharges Liquidated Damages Actual Damages

15 Owner Requirements Keeping the Faith Cambi s first US project LOTS of opportunities in the US We knew Cambi would not let this fail Reasonable protection in the prime contract

16 Challenges of a Prescriptive Contract Overcoming Pride of Ownership Owner and Program Manager developed concepts for bridging documents Owner preferences vs. design builder preferences A lot of work by DB to demonstrate benefits

17 Challenges of a Prescriptive Contract Working within Fixed Price Would DB be reimbursed? Engineering costs Construction costs Credit expected No cost shared for VE ideas Stifled Creativity

18 Maintaining Communications: Weekly Coordination Key Stakeholders DC Water Project Manager Program Management Leadership Construction Management Leadership DB Leadership: Design Team, Construction Team, Commissioning Team

19 Project Charter We will work collaboratively to deliver to DC Water a reliable and easy to maintain biosolids Main Process Train that will consistently and cost-effectively produce a Class A biosolids, generate digester gas and meet all performance and schedule requirements. The team will demonstrate the viability of the design-build process for DC Water while enhancing the reputations of all partners. We will accomplish this by achieving the following team goals: Safety Quality Schedule Budget Commissioning Community Teamwork

20 Issue Resolution/Partnering Weekly Coordination of Key Stakeholders Maintain Relationships Track Performance Issues Escalation Log

21 Issue Resolution/Partnering Issue Escalation Log Example Issue Target Resolution Date For Path Forward Current Issue Location (Level/ Individuals) Scheduled Date for Escalation Champion Estimated Close-Out Date Ball In Court Organization Next step in process Acceptable Solution Comments Centrifuges: centrate venting 11/20/15 Level 3 NA Mike Angeli January 15, 2015 JV JV providing a test to ensure no particulate matter is exiting the vent stack over a long period of time, thru all modes of operation.

22 Issue Resolution/Partnering Going Live! First truck of seed sludge from Alex Renew Go/No Go Final Pre-Meeting What Does it Take to Resolve an Issue? Clearly identify the issue An issue is everyone s we win/lose together Assign a champion Communicate Plan for Resolution Review progress Track/celebrate successes

23 Issue Resolution/Partnering Case Study: Seeding Tracked potential showstoppers up until decision date Decision on notices to communities about intent to haul sludge starting 9/30 Decision on purging digester head space with nitrogen Decision on pre-heating water in the digesters Go-No Go Final Pre-Meeting to tracking commissioning efforts and status of control systems

24 Agenda Project Overview Major Hurdles Outcome: Were Objectives Met?

25 Outcome: Were the Objectives Met? Processes up to 450 dry metric tons of solids per day Requires half the digestion capacity of conventional digestion Class A digested sludge is conveyed to sixteen, 2-meter belt filter processes for final dewatering

26 Outcome: Were the Objectives Met? Specification conformance inspection during installation and continuous performance monitoring helped ensure that the new facilities operated as intended

27 Outcome: Were the Objectives Met? Considered to be One of the Greenest and Most Sustainable Wastewater Projects Ever Conceived Reduces number of trucks by over half Reduces annual grid electrical draw by one-third Generates 13 megawatts of green electrical power for plant operations Class A Biosolids

28 DB Lessons Learned 1 2 Implement an issues resolution process in order to solve issues at the appropriate level with a clear escalation process Performance guarantees proved to be valuable - Flexibility with durations and or overlap - Operations and Maintenance buy-in is valuable 3 Transition of owner s roles from design phase to construction phase for reviews needs to be addressed bring in the right players without loss of project history/knowledge

29 DB Lessons Learned Receiving detailed submittals proved beneficial Good engineering practices is not a recognized standard Changes after Final Design Drawings are approved must be identified to the owner Named manufacturers might take exception to specifications: Ensure in RFP that named manufacturers will meet code and/or specifications required

30 Questions

31 Project Charter We will work collaboratively to deliver to DC Water a reliable and easy to maintain biosolids Main Process Train that will consistently and cost-effectively produce a Class A biosolids, generate digester gas and meet all performance and schedule requirements. The team will demonstrate the viability of the design-build process for DC Water while enhancing the reputations of all partners. We will accomplish this by achieving the following team goals: Safety Quality Schedule Budget Commissioning Community Teamwork Zero Accidents Zero OSHA Incidents Maintain awareness Earn national award Establish a common understanding of requirements and maintain or exceed Establish, implement, maintain and document thorough QA/QC program Establish, implement, and maintain a document control system Communicate all project performance guarantees to team Meet all intermediate and contractual milestones Maintain and communicate a valid, wellcoordinated, cost loaded and updated schedule Maintain a realistic three-week look ahead schedule Timely resolution of issues Complete within all organizations budgets Avoid scope creep Maintain an efficient and fair management of the change process Timely invoicing and payment Ensure operations and maintenance are familiar with process early in the project, attend FAT and PCS demonstrations Identify and involve the DC Water Operations and Maintenance champions early and establish relationship with the Commissioning Manager Ensure adequate and useable documentation and knowledge retention after completion Meet/exceed MBE/WBE participation goals Meet First Source hiring goals Identify and coordinate with all interrelated projects Eliminate surprises Earn global acclaim and awards Have fun

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