Mysore L. Nagaraja, P.E. Chairman

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Meagan Sutton
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1 APTA 2013 ANNUAL CONFERENCE: SEPTEMBER 30, 2013 BIG TRANSPORTATION INFRASTRUCTURE PROJECTS WORLDWIDE: Global Overview Chairman

2 Introduction The Focus of My Talk Global Overview of Cost Overruns and Delays Experienced by Most Public Works Projects Minimizing Waste by Adopting Innovative Approaches Using 21st Century Technology 2

Overview of Projects I Have Managed East Side Access to Long Island Railroad Number 7

Rebuilding/Mobility South Ferry Terminal Station ($489 M) Fulton Street Transit Center

3 Overview of Projects I Have Managed East Side Access to Long Island Railroad Number 7 Line Extension Project Second Ave Subway South Ferry Terminal Station Lower Manhattan Rebuilding/Mobility South Ferry Terminal Station ($489 M) Fulton Street Transit Center ($845 M) State of Good Repair (SOGR) and System Improvement/Modernization Programs at MTA NYCT: Worth Approx. $30B Denver RTD Fastracks Program WMATA SOGR Procurement Review DesertXpress HSR Flushing Line Extension to West Side Transit Hub at WTC, New York 3

4 Managing Mega-Projects Step 1: Governance Step 2: Program Organization Step 3: Project Management Plans Step 4: Project Tools Step 5: Project Controls Step 6: Project Delivery Options Step 7: Effective Reporting & Integration of Risk Assessment and Risk Management from Beginning to End 4

5 Managing Mega-Projects Project Managers Around the Country and the World Are Generally Addressing These 7 Steps by Adopting Effective Management Processes and Practices 5

6 Challenges? Challenges Are Many, Including: Governance and Scope Definition Contract Packaging Size and Type of Contracts Project Delivery Methods and Limitations Lack Of Trust and Partnering Lack of Communication, Collaboration and Cooperation Amongst Stakeholders Management of All Stakeholders Including Funding Agencies Participants' Behaviors (Human Behavior) 6

7 Causes? In Spite of Good Management Processes and Sound Practices, Most Projects Experience Cost Overruns and Schedule Delays Original Budget/Schedules Established Prematurely Too Many Stakeholders Multiple Oversights Government Structure and Objectives Not Well Defined Bureaucracy Legal Limitations 7

8 Project Delivery Options Project Delivery Methods Evolving for the Last 20+ Years Design/Bid/Build: Most Traditional Around the World 80% of Projects Still Use This Most Inefficient for Mega-Projects In the 1980s, the U.S. Army Corps of Engineers Introduced "Partnering Concepts" in Construction Contracts Though Informal Design/Build: Slowly Emerging as a Viable Option NY State accepted this only last year! DBOM/DBFOM/PPP: These Are Gaining Momentum Mostly Because of Lack of Public Funds 8

9 Project Delivery Options (continued) Construction Manager as Agent Construction Manager at Risk CM/Build INTEGRATED Project Delivery (IPD) IPD-Like 9

10 Contracting Options Low Bid Fixed Price (Most Traditional) RFP = 2-step Negotiated Fixed Price Negotiated GMP Fixed Price With Unit Items Fixed Price With Incentives/Disincentives D/B With Not-to-exceed Price; Final Price To Be Negotiated After Design PPP With Availability Payments PPP With Payments Tied To Revenue Etc., Etc. 10

11 Why Does This Industry Need Change? Needs Are Much Greater Than What Can Be Afforded Hence, Need For Innovative, Proven and Efficient Processes and Practices!! Paradigm Shift in the Industry Is Necessary PPP, IPD and IPD-like Delivery Methods Utilizing 21st Century Technology Must Be Considered 11

12 Possible Solutions Integrated Project Delivery Options Public Private Partnerships Enforceable and Reasonable Contracts Streamlined Oversight 12

13 Technology Enabled Integrated Project Delivery Method All Major Stakeholders Including Subcontractors, Major Suppliers, Other Affected Governmental Agencies, and Utilities To Be Part of the Project Team from Beginning to End 21st Century Technology Like BIM, Primavera, PMIS, Etc. Are Necessary Tools The Three Cs Communication, Cooperation, Collaboration Are Keys to the Legal Agreement!! All Stakeholders Will Be Held Accountable for Success or Failure!! Minimizes Changes and Increases Efficiency and Effectiveness All Legal Protections for Team Members, and for Utilizing Tax Dollars Efficiently, Can Be Built Into Agreements FOSTERS TEAMWORK AND EFFICIENCY AND RESULTS IN "WIN-WIN-WIN" Needs a Major Paradigm Shift in the Industry Savings Applied to Much Needed Infrastructure Improvements in All Regions 13

14 Keys to Successful Project Management And Communication Cooperation Collaboration 14

15 THANK YOU! QUESTIONS? Chairman

The RTD FasTracks Plan

PROJECT DELIVERY METHODS Prepared for: PCJPB August 2013 Prepared by: Richard F. Clarke (Assistant General Manager, Capital Programs) The RTD FasTracks Plan 122 miles of new light rail and commuter rail