Tools & Training. Integrated Project Management: Who Is Your Speaker? Learning Objectives. Project Management. Survey: Who s Here Today?

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1 Integrated Project Management: Tools & Training Who Is Your Speaker? Christopher P. Martersteck, AIA, LEED, DBIA Project Management Seminar Leader & Consultant - PSMJ Resources Past Vice President & Director of Proj Mgmnt - 3 top 50 A/E/C firms Chair - AIA Chicago Design-Build Knowledge Community Past Board Member - DBIA Great Lakes Chapter Design-Build Certification Course Leader - Design-Build Institute of America Christopher Martersteck AIA, LEED AP, DBIA May 11, 2012 Questions or comments on this presentation or about other Project Management issues? Please feel free to contact: cpmartersteck@yahoo.com and Visit PSMJ Resources website at: Learning Objectives Participants will be able to: Understand the needs and types of consistent tools and processes in managing A/E/C projects Focus training and monitoring programs to encourage and track factors leading to successful projects and client relationships Utilize the project work planning process as a foundation for improved team-building and management of conventional as well as alternative delivery A/E/C projects Survey: Who s Here Today? Your primary current A/E/C role: 1. Design / Engineering Professional Architect Engineer Planner Designer 2. Construction Professional Construction Manager General Contractor 3. Owner / Client / Representative Private Sector Public Sector Owner s Representative Program Manager 4. Other Who Uses Alternative Project Delivery? Project Management Have you or your firm been involved in any form of Alternative Project Delivery (e.g., IPD, D-B, P3, DBOOM): 1. We/I have led the A/E/C IPD team 2. We/I have been a Sub to an IPD Prime 3. We are/i am a Client who has used/is using some form of IPD 4. No direct experience at my firm with IPD or any of the variations The planning, directing, and controlling of resources to achieve a particular objective within a predetermined budget and by a set date.

2 Project Management Critical to the success of our firms and our clients: Client goals Design quality Business profitability Positive team environment Project Management Outline What is needed? Why? How to do it Training Tools Tracking Q & A Project Management What is Needed? Why? What Do Our Clients Want? Faster completion with less finger pointing Fewer change order hassles Fewer claims and other legal problems Early and accurate cost commitments Better quality and lower lifecycle cost Minimize their own risks Less time spent managing the project -- so they can get back to their real jobs Understand and meet their expectations What Are the Implications? What Do Our People Want? Need to define and commit to scope earlier Better information and sooner decisions required by entire team Out of sequence work, rework, and value engineering are continuous facts of life Change management systems needed Collaborative behavior and sharing timely information is not just desirable it s a necessity! More enjoyment of the design process Work on quality award-winning projects Be part of something bigger Responsive team members and leaders Adequate recognition and autonomy Less time spent managing the project Training and more design / technical expertise Job security and a share of the $$$

3 How Can We Retain Our Best People? Consistent process and tools Greater autonomy More communication and delegation Structured training and mentoring programs Increased involvement in the entire process Better leadership Strong Project Management focus Collaborative behavior by all participants Integrated Project Delivery American Institute of Architects definition: Integrated Project Delivery (IPD) is a project delivery approach that integrates people, systems, business structures and practices to harness the talents and insights of all participants to optimize project results, increase value to the owner, reduce waste, and maximize efficiency through all phases of design, fabrication, and construction. IPD principles can be applied to a variety of contractual arrangements and IPD teams can include members well beyond the basic triad of owner, architect, and contractor. In all cases, integrated projects are uniquely distinguished by highly effective collaboration among the owner, the prime designer, and the prime constructor, commencing at early design and continuing through to project handover. Integrated Project Delivery How did IPD begin? What are the goals? Master Builder" concept Single Purpose Entity. IPD-Lite or IPD-ish Integrated Supply Team or Integrated Design-Build Why Do We Need Strong PMs? Principal PM Partnership PM Client Relationship Success Factor Design Quality Successful Firms Successful Projects Happy Clients Profitability Positive Team Environment A Little More on IPD History Alliancing Lean Construction Sutter Health Five Big Ideas: 1. Collaborate fully by all parties throughout the process 2. Increase Relatedness of all parties 3. Networks of Commitments 4. Optimize the entire Project not individual Participants 5. Couple Actions with Learning According to Owner Surveys Document quality declining = 70% Architects should be held more responsible for quality docs = 98% Architects are external inhibitors to contractor productivity Poor quality plans/specs = 60% Slow response time = 51% Owners should contractually define collaboration approaches = 78%

4 Construction Negative Productivity Alternative Project Delivery Offers Hope Earlier team-building & planning More detailed goals tied to incentives for performance Focused responsibility and accountability More knowledgeable project delivery team Mutual respect and trust between all members of the project delivery team Shared risk and rewards Traditional Linear Process Overlapping Phase Process Schedule Acceleration is Typical Planning Planning Design Design Construction Bid Construction Occupancy Occupancy Other Delivery Option Motivators Design-Build Problems Created by Traditional Design-Bid-Build 1. Skyrocketing materials costs 2. Complex regulatory and political environment 3. Difficult financial environment 4. Construction claims, changes and adversarial dealings with the construction entity 5. Desire to minimize risk and maximize collaboration AASHTO study: 83% of large transportation projects were over budget Possible Solutions by Improved Project Integration 1. Earlier team-building 2. More detailed goals tied to incentives for performance 3. Focused responsibility and accountability 4. More knowledgeable project delivery team 5. Mutual respect and trust between all members of the project delivery team 6. Shared risk and rewards Owner Hires One Firm (or Team) to Perform All Design and Construction Design Firm Owner Design-Build Firm(s) Equipment Suppliers Construction Subcontractors

5 Program/Construction Management Owner Hires an Independent Firm to Oversee Design and Construction Activities Program/Construction Manager Design Professional Owner Contractor CM at Risk Owner hires independent CM firm to oversee Procurement and Construction activities Design Professional Owner CM Firm Equipment Suppliers Trade Contractors Bridging Project Delivery Methods Owner Hires A/E Design Firm to Do Front-End Design, Then A/E Design Firm Critiques Construction Team Design Phase Construction Phase Project Delivery Method Approx.% of U.S. Const. Market Trends Federal Industrial Commercial State/Municipal Institutional Europe/ Asia Owner A/E Firm Designer Owner Construction Firm Equipment Suppliers Construction Subs Design-Bid-Build 60% Slowly receding Fastrack 15% Steady Engineer-Procure-Construct 15% Steady Construction Management 15% Increasing Program Management 5% Increasing Bridging 1% Increasing Design-Build (incl. Turnkey) 30% Increasing Design-Build-Own-Operate 1% Experimental only Integrated Project Delivery <1% Experimental only Note: Percents exceed 100% as some projects use multiple delivery methods. Project Delivery Comparison Integrated Project Delivery D-B vs. D-B-B CM at Risk vs. D-B-B Level of Certainty Unit cost 6% less 2% less 99% Construction schedule 12% faster 6% faster 89% Delivery schedule 34% faster 13% faster 88% Cost growth 5% less 8% more 24% Schedule growth 11% less 9% less 24% Source: Construction Industry Institute 1. Access to construction and facility O&M expertise during early design 2. Inform and improve design decisions in Product availability Construction cost Schedule Facility maintainability 3. Goals include: Minimize revisions of completed work Reduce facility lifecycle costs 4. Alliances and Teaming

6 Integrated Project Delivery Issues Cultural Barriers to IPD Adoption Table of Contents 1. Compensation 2. Risk allocation and reliance 3. Design ownership and access 4. Intellectual property 5. Model hosting 6. Insurance Team commitment vs. differing agendas (finger pointing) Clients typically wish to shed risk to A/E/C team Clients may be reluctant to sign a Single Purpose Entity Contract Bureaucratic clients will inhibit team decision-making Old ways of doing things are hard to change IPD Procedural Barriers Design-Build IPD Client Benefits IPD requires a sophisticated owner A/Es need to take on added risk BIM maximizes the value of IPD Constructors need to be flexible Single Source Responsibility with one contract for building, equipment and systems Earlier Guarantee Of Cost often with a GMAX / GMP set at the SD / DD phase Lower Overall Cost with competitive purchasing at the subcontractor level Fastest Overall Schedule with 30% savings possible due to fast track release but there are definite risks as well Single Point Responsibility Advantages Team commitment vs. differing agendas (finger pointing) Better protection against change orders Reduced time + more timely decisions = earlier occupancy No need for Client to referee between A/E & CM Early knowledge of construction costs informs design Eliminate communication gaps/divisions of responsibility Improved documents constructability + coordination Direct access to A/E personnel = maximum speed Elimination of overlapping responsibilities between A/E & separate CM = greater value Faster Less Expensive Higher Quality! What Are the Implications? Need to define and commit to scope earlier Sooner decisions by entire team Out of sequence work, rework, and value engineering are continuous facts of life Document change tracking systems needed Collaborative behavior not just desirable it s a necessity! Client/owner leverage no longer available for internal AE v. GC issue resolution

7 What are the Opportunities? Lower Construction Documents costs if achieved via Shop Drawings by Subcontractors Potential fee reallocation to spend more $ earlier & later in the process, less in CDs More early collaboration & decision-making data = better design information & results Architects can attain greater potential profits Higher involvement / energy / fulfillment / partnering Lead the entire process rather than being a subconsultant / subcontractor Integrated Project Management How to Do it What Are Our Strategies for Success? Project Management Training Partnering & Team Building: Insure the Entire Team including the Client is On the Same Page Get All Team Members Involved Earlier Consistent Project Management Process Standard, Accessible, User-Friendly PM Tools Communication Process of Endorsement Training of ALL Team Leaders Clarify Expectations Reminders, Support & Enforcement Internal Firm Training Systematic and process oriented Clear and measurable goals External PM Training Complementary programs: Mentoring program Fellowship Program Intern Development Program Integrated Project Management Training Culture for Success Companies that enjoy enduring success have core values and a core purpose that remain fixed while their business strategies and practices endlessly adapt to a changing world. Harvard Business Review on Change

8 Core Values Project Management Expertise Vision Purpose Core Values Goals Guiding Principles Strategic Plan Firm Business Plan Leadership support and commitment Key staff involvement at all levels It is not enough to just do your best or work harder, you must know what to work on. W. Edwards Deming Project Management Learning Not What You Learned in School Seminars Project Leadership Change Management Developing a Budget Earned Value Analysis Scheduling Project Management Forum Webinars OJT Integrated Project Management Tools Initiation Ongoing Closeout PM & Team Expectations Team Building Defined Job Responsibilities Project-Specific Roles & Responsibilities: Who Does What? Focused Communication Relationships Feedback - Immediate Performance Evaluations - Longer Term Project Work Planning Goal Setting Process of Endorsement Input Incorporate Gain Commitment Buy-In Communication

9 PM Tool Best Practices When Should You Start to Plan? Consistent Process Standardized & Easily Accessible Summary Reporting Formats Timely & Accurate Tracking Data Scalable Intranet-Enabled Web-Based Simpler = Better but Use the ones you already have first! Project Concept by Client 1. Convert project goals into manageable tasks Get the RFP 2. Anticipate problems Start Proposal Accomplish the Two Objectives of Planning Understand Client Priorities Submit Proposal Negotiate Contract Award Mobilize Project PMP Do the Work Close the Job Number Project Management Plans Project Proposal 1. Proposal is your first draft 2. Finalized after project is secured 3. Consolidates information Request for proposal Proposal due diligence Proposal document Negotiations Contract 4. Planning & Communication tool Project team Client Why Plan? 1. Get your team informed 2. Get your client on-board 3. Make the PMP your first milestone deliverable & invoice 10-15% upon submittal Vision / Goals Statement of Understanding Delineation of Scope Preliminary Schedule Consulting Teaming Terms and Conditions Project Proposal - Goals Proposal - Scope & Schedule Vision / Goals What the Client gets out of this Client s key issues and hot buttons Critical success factors Performance measures - quantified if possible Statement of Understanding Our understanding of the scope of work Inclusions and exclusions Subconsulting services included Additive or deductive alternate service offerings Delineation of Scope Deliverables Bottom-up Budget Top-down Budget Detailed scope summary with deliverables Detailed list of tasks and deliverables Associated hours Preliminary Schedule Overview of start, completion, and major milestone dates Critical activities beyond firm s control or by Client

10 Proposal - Consultants & Contract Consulting Teaming Major consultants identified Estimated costs for services Prequalification database Terms and Conditions Standard contract terms Proposal - Assembling the Team Collaborative team players only need apply! Have you worked together before? Not just the firms but the specific team members Trust issues Flexibility / Willingness to try new things can you think outside the box and past previous ways of relating? Developing close relationships with the other team members especially your Prime Project Manager! Willingness to share Risk & Rewards Proposal - Update After Award Project Work Planning - Part 1 Proposal Evolution to Project Work Plan Develop an Agenda and summarize initial information Prior to the meeting prepare and distribute a preliminary outline framing known information and focusing the discussion of key areas Assemble the in-house team Review and facilitate a discussion of all key elements Incorporate notes and publish summary Copy Senior Management and those unable to attend Hold a similar meeting with the Client team and key firm team members, excluding financial information not required by contract and internal risk assessment issues Team Members Project Description Overview Client Vision / Goals Our Firm s Goals Scope of Work Detailed Schedule Financial Plan Team Organization, Resources, Responsibilities Project Delivery Strategies Quality Control Process Project Work Planning - Part 2 Project Work Planning - Overview Change Management Process Communication Plan Contingency and Risk Management Plan Internal Risks Contingency and Risk Management Plan External Risks Client Required Data and Reviews Client Care Plan with Potential Expanded Services and Relationship Growth Opportunities Next Steps / Immediate Actions Team Members Introduction Project Description Overview What we know about the project at this point Project size Location Client Major functional components RFP essential elements summary

11 Project Work Planning - Client Project Work Planning - Our Firm Client Vision What the Client is trying to achieve Client s business plan / strategic objectives Client priorities relative to stated objectives Client Goals Client Critical Success Factors with performance metrics Elements central to the Client s success Quantified descriptions wherever possible Construction cost budget Schedule goals Who approves the design Programmatic space requirements data Our Firm s Goals Profitability goals Strategic firm objectives Market sector goals Future business opportunities Award potentials High-performance team opportunities to achieve better / faster / more profitable results Sustainability opportunities Quantifiable measures of firm success Project Work Planning - Scope Project Work Planning - Schedule Scope of Work Services provided Disciplines Joint venture partners Distribution of responsibilities Subconsultants with identified partner firms Excluded services or scope What is reimbursable What is not reimbursable Detailed Schedule Fleshed-out milestone schedule for smaller projects Bar chart/critical path schedule for larger projects All known milestone dates Activity sequencing Meeting dates Client review durations Assumed permitting and construction durations Project Work Planning - Financial Project Work Planning - Team Financial Plan How fees have been established Bottom-Up Budget Top-Down Budget Comparison Work Breakdown Structure convert into Tasks & Deliverables of approximately $10,000 fee each Insertion of WBS into Weekly / Monthly Earned Value Tracking and Baseline Fee Projection / Cash Flow model Construction Cost Model indicating how it will be established Accounting issues summary dates and process for submission & payment of invoices, accounting kickoff, payment issues or concerns Team Organization, Resources, Responsibilities Project Organization Chart Who Does What Definition of Client responsibilities Subconsultants identified with team leaders Possible outsourcing opportunities Work to be done in other offices if relevant What other offices will do Who champions what Schedule Communication Meetings Travel costs

12 Project Work Planning - Delivery Project Work Planning - Change Project Delivery Strategies How can we improve our process? Initial weekly efforts and deliverable goals Critical project delivery issues Construction delivery intentions Expanded service CM / PM / DB opportunities Quality Control Process Schedule Tasks Responsibilities Summary write-up by Quality Leaders Change Management How a change is identified Contract change language How the fee for a change is developed How the added time for a change is calculated Who approves a change in scope, schedule or fee both for Client and the firm Standard change letter / Additional Services Request Work Planning - Communication Communication Plan Communication matrix - who gets what, when Potential items include work plan, meeting minutes, drawings, project directory, review sets, project review meetings, main client point of contact, distribution list, project communication / master file FTP site for drawing exchange / possible PM Website Weekly conference call Client approval matrix Who approves what / when Communication plan between internal team members as well as Client & user group members Project Binder for team members especially Client Client submittal standards PM to be copied on everything All Client communications need to go through PM Work Planning - Internal Risk Contingency Planning & Internal Risk Mgmnt Internal risk issues that could potentially impact firm s ability to deliver appropriate quality work meeting / exceeding client scope / schedule / budget goals Risk issues that could impact firm s ability to meet / exceed profitability goals Examples might be: Severe time constraints Availability of people to staff project per budget Unusual project type Code issues Multi-office coordination needs Client approval / staffing / personality issues Work Planning - External Risk Work Planning - Required Data Contingency Planning & External Risk Mgmnt External issues possibly outside of Client s and firm s ability to impact, except to maintain awareness and minimize potential impact if they occur Examples might be: potential site problems, code compliance or review / approval challenges, tight budget or time relative to Client goals, lack of documentation of existing conditions, environmental issues, market costs External issues within Client s impact but which need to be focused on to assure their impact is minimized or mitigated Examples might be: complex internal Client approval process, numerous stakeholder groups with conflicting goals, meeting or approval schedule requiring unrealistically accelerated or numerous meetings or approvals, lack of availability of decision-makers to conform to schedule needs Client Required Data and Reviews Survey data Existing conditions information Soils report Accessibility plan Master plan Client standards

13 Work Planning - Client Care Plan Client Care Plan with Potential Expanded Services and Relationship Growth Added service opportunities and action plan Possible 3D Renderings Potential expanded services XAE, PM, CM, D-B Expansion of building size + cost for rework of work completed to date Premiums to recover schedule slippage due to client failure to review & provide direction per agreed schedule or at least get good will if no formal ASR Other added service opportunities and action plans? Future service opportunities Internal responsibilities and proactive plan for Client relationship maintenance and growth Work Planning - Next Steps Next Steps / Immediate Actions What do we need to immediately achieve to move forward Resolve all Contract / Letter of Intent / JV issues ASAP Accounting kickoff / Invoice issues / payments process Reconcile Bottom-Up Budget & revise Project Initiation Develop list of deliverables per phase Develop a Meeting Schedule with dates, agendas, attendees, approval durations, information or reviews Invoice against any initial work accomplished Do not proceed with work until A/R is up to date Incorporate Work Plan discussion points from these meetings into Final Work Plan and schedule a Summary Work Plan Review with the entire internal team then invoice for initial deliverable Schedule a Client Visioning / Work Plan review Transmit copies of all above to internal team, local Operations Leader & Core Services Leadership Team Integrated Project Management Tools Ongoing Project Reporting/Communication Project Status Reporting & Documentation Project Work Planning Regular Client review meetings Weekly project team meetings Monthly schedule update Monthly records management Project Work Plan communication & coordination activities Intranet Project Data Base with PM Critical Success Factors Weekly Project Status Reports External Client & Team issues Internal Firm & Staff issues Project Status Reports Weekly Summary Report to Client: What did we accomplish last week? What will we accomplish this week? Scope changes / value added to date Budget status/percent complete Schedule status/deliverable status Input needed from client or others? Other issues/concerns Project Ongoing Tracking Tracking, Monitoring & Corrective Actions Weekly project team meetings Development and review of Earned Value 3-line diagram Monthly analysis of task and deliverables completion Team member review PM / Senior Mgmnt Review Review of suggested corrective actions if needed Monthly schedule update Quality reviews at milestones Regular interval Design / Budget alignment Continuous PM Dashboard business data management Semi-monthly review meetings with office Operations & Senior Management review PM KPIs & actions to correct

14 Cumulative Expenditures Project Earned Value Analysis Earned Value - A Little Quiz What is it? What are the benefits? Is it too complicated for us? Do we really need it? How can we do it? Do we already have an EVA system? What is an easy way to start? What are the prerequisites? Your Proposal $100,000 Budget 10 Month Schedule Present Status $40,000 Spent 6 Months Spent What s the % Complete? 30% 40% 50% 60% 70% The Real Percent Complete? How Do You Monitor Projects? 0% 100% % Complete Milestone vs. Hours or Dollars? vs. $173,790 What s This Project Status? Academic Earned Value Analysis $156,411 $139,032 $121,653 $104,274 $86,895 $69,516 $52,137 $34,758 $17,379 What Happened on the Way to the Bank? $13,000 Projected Cumulative $ Actual Costs $0 31-Jan 31-Mar 31-May 31-Jul 30-Sep 30-Nov The Process 1. Take out separate accounting codes for each task/activity 2. To assess status, generate a forecast to complete (FTC) for each task/activity 3. Get actual expenditures from accounting for each task/activity 4. Add Steps 2 and 3 to determine the Estimate at Completion (EAC) 5. Compute earned value The Problems You need lots of job cost account numbers Team members don t charge their time to correct account numbers PM ends up being a timesheet cop Team has to estimate forecast to complete each month

15 Cumulative Expenditures Percent Complete Cumulative Expenditures Forecast of Progress (%) Project Earned Value Analysis Set Up Project Baseline: 1. Prepare an expenditure forecast Convert the expenditure forecast to a progress forecast Change the baseline only if the contract is amended Assess Project Status: 2. Estimate Progress for Each Task 3. Compute Overall Progress 4. Determine Actual Costs 5. Determine Schedule Status (Step 3 vs. Step 1) 6. Determine Budget Status (Step 3 vs. Step 4) Expenditure Forecast Computation Task Description Budget Start FinishUnit Cost 2001 ($) Date Date ($/mo) 30-Jun 31-Jan 28-Feb 31-Mar 30-Apr 31-May 31-Jul 31-Aug 30-Sep 31-Oct 30-Nov 31-Dec Totals $13,140 A. Develop Background $13,140 1/1 6/30 $2,190 $2,190 $2,190 $2,190 $2,190 $2,190 $2,190 B. Conduct Case Study $0 $2, Select Case Study Study $2,920 3/1 3/30 $2,920 $2,920 $2, Prepare Breifing Documents $2,960 1/1 3/30 $987 $987 $987 $986 $7, Develop Data Mgmt Plan $7,650 1/1 3/30 $2,550 $2,550 $2,550 $2,550 $19, Visit Case Study Sites $19,700 4/1 9/30 $3,283 $3,283 $3,283 $3,283 $3,283 $3,283 $3,285 $2,917 $17, Analyze Waste Samples $17,500 6/1 11/30 $2,917 $2,917 $2,917 $2,917 $2,917 $2,915 C. Evaluate Costs for Case Studies $0 $8, Develop Cost Models $8,060 1/1 6/30 $1,343 $1,343 $1,343 $1,343 $1,343 $1,343 $1,345 $10, PerformPreliminary Designs $10,860 6/1 11/30 $1,810 $1,810 $1,810 $1,810 $1,810 $1,810 $1,810 $1,470 $1,470 $1,470 $8, Estimate Costs $8,820 7/1 12/30 $1,470 $1,470 $1,470 $1,470 $368 $368 $368 $372 $4,420 D. Evaluate Potential for Trtmt $4,420 1/1 12/30 $368 $368 $368 $368 $368 $368 $368 $368 $368 $2,630 $2,630 $5,260 E. Assess Cost Impacts $5,260 11/1 12/28 $2,630 $6,240 $6,240 F. Evaluate Cost Impact Models $6,240 11/1 11/30 $6,240 G. Project Reporting $0 1. Topical Reports $0 $8,940 a. Background Data $8,940 7/1 8/30 $4,470 $4,470 $4,470 $8,940 b. Case Study Site Visits $8,940 10/1 11/30 $4,470 $4,470 $4,470 $4,470 $8,940 c. Waste Sampling $8,940 11/1 12/30 $4,470 $4,470 $9,050 $18, Draft Repot $18,100 10/1 11/30 $9,050 $9,050 $3,970 $7, Final Report $7,940 11/1 12/30 $3,970 $3,970 $1,117 $1,113 $13,400 H. Project Management $13,400 1/1 12/30 $1,117 $1,117 $1,117 $1,117 $1,117 $1,117 $1,117 $1,117 $1,117 $1,117 $1,117 $10,967 $21,202 $38,510 $14,025 Total Monthly Cost $8,555 $8,555 $11,474 $8,301 $8,301 $13,030 $15,435 $15,435 $173,790 Projected Cummulative $ $8,555 $17,110 $28,584 $36,885 $45,186 $58,216 $73,651 $89,086 $100,053 $121,255 $159,765 $173,790 $173,790 Projected Expenditures/Progress Forecast $173, $156, $139, $121, $104, $86, $69, $52, $34, $17, $ Jan 31-Mar 31-May 31-Jul 30-Sep 30-Nov Earned Value - as of June 30 Task Description A. Develop Background Data B. Conduct Case Studies 1. Select Case Study Sites 2. Prepare Briefing Documents 3. Develop Data Management Plan 4. Visit Case Study Sites 5. Analyze Waste Samples C. Evaluate Costs for Case Studies 1. Develop Cost Models 2. Perform Preliminary Designs 3. Estimate Costs D. Evaluate Potential for Treatment E. Assess Cost Impacts F. Evaluate Cost Impact Models G. Project Reporting 1. Topical Reports a. Background Data b. Case Study Site Visits c. Waste Sampling 2. Draft Report 3. Final Report H. Project Management Totals Task Percent Earned Budget Complete Value $13,140 x 65% = $8,541 2,920 x 100% = 2,920 2,960 x 100% = 2,960 7,650 x 100% = 7,650 19,700 x 20% = 3,940 17,500 x 0% = 0 8,060 x 10% = ,860 x 0% = 0 8,820 x 0% = 0 4,420 x 30% = ,260 x 0% = 0 6,240 x 0% = 0 8,940 x 10% = 894 8,940 x 0% = 0 8,940 x 0% = 0 18,100 x 0% = 0 7,940 x 0% = 0 13,400 x 25% = 3,350 $173,790 $32,387 Total Project Progress: $32,387 / $173,790 = 19% $173,790 $156,411 $139,032 $121,653 $104,274 $86,895 $69,516 $52,137 $34,758 $17,379 $0 Horizontal Distance Between Earned Value and Projected Expenditure Curves Equals Schedule Status "A" = Schedule Status =2.3 Months Behind A Schedule Status Projected Cumulative $ Earned Value 31-Jan 28-Feb 31-Mar 30-Apr 31-May 30-Jun 31-Jul 31-Aug 30-Sep 31-Oct 30-Nov 31-Dec Dates Sample Accounting Reports Division Time Analysis Percent Chargeable Detail Verification Invalid Transaction Report Division Aging Report Active Projects w/completion Dates w/in 30 Days Unauthorized Expenditure Detail Report Active Projects with Unauthorized Items Authorization Listing Items Made Non-Billable during Period X Revenue Write-offs during Period X Unbilled Receivable/ Undistributed Revenue Audit Unbilled Receivable/ Undistributed Cost Aging Manager s Project Status Operating Statement Budget & Expense Report Budget & Expense Exception Near-Term Financial Action

16 Cumulative Expenditures ($000) Percent Complete The 5 Numbers We Really Need $174 $156 Budget & Schedule Status Weekly 1. Who Charged Time? Inception-to-Date 3. Total Labor $ $139 $122 "A" = Schedule Status = 2.3 Months Behind Non-Labor Charges? Other Numbers: WIP A/R Billing Look at your Accounting Reports 4. Total Non-Labor $ 5. Each Subconsultant $ Accounting Tells Us Project-To- Date Costs = $44,000 as of June 30 $104 $86 $70 $52 "B" = Budget Status = $12,000 Over Budget $35 B Projected Cumulative $ $17 A Actual Costs Earned Value $0 31-Jan 31-Mar 30-May 31-Jul 30-Sep 30-Nov Earned Value for Small Projects EVA - Managing Subconsultants Work Element Task Lead Date Budget 1. Survey Zack 4/1 $1, Data Analysis Don 5/ Report Outline Don 5/ Permitting Rhonda 5/ Agency Meeting Rhonda 5/ % Complete Earned Value Internal and External Communicate Your Expectations Require Project Management Plan within one week of project initiation / notice to proceed Require detailed task list 6. Project Mgmt Don 5/ Final Report Don 5/ Require weekly Earned Value reporting Totals $3,050 E.V. $ Spent to Date $ Over/Under $ Teach them about Earned Value reporting Remember they work for you!! Project Vital Signs / KPI Review Not an inquisition Sr Mgmnt is there to help / brainstorm Contract / LOI signed & returned? Accounting system data correct and up-to-date? When was the job last billed? Are all accounts receivable up-to-date? What is the budget status of the project? Has a PM Plan been prepared and distributed to the project team and reviewed with the Client? Will all the contractual deliverables be delivered on time? Are all our QA requirements being met on this project? When did a principal last talk to the Client to verify they are satisfied? Does the Client have more work coming up? PM Scorecard Deliver Project at or above the as-sold profit Review all draft invoices within 2 working days Get Clients to pay invoices within terms of contract (or better) Bring in $ of new work and add-ons Manage $ of projects invoiced Minimum average score of Very Good on client satisfaction surveys Follow corporate requirements for contract reviews, execution, QA, health & safety Satisfactory or better evaluations from project team members (in role of manager) Personal utilization of at least % Meet professional development requirements

17 Project Change Management Establish our change control processes before work begins, not when the actual first change appears Detail our change control mechanism in the client contract and include it in our Project Work Plan Address and adapt to changing circumstances Accommodate changes in scope and services Immediately assess impacts to scope / schedule / budget / fee Issue documentation and expedite client approval before added work begins Know what is in the contract scope Watch out for scope creep Project Business Tools & Process Establish invoicing and payment processes before work begins, not when the actual first invoice appears Development of Bottom-Up Budget & WBS Deliverables Development and review of Earned Value 3-line diagram Involvement of the entire team in knowing and tracking progress against their respective schedules & budgets Review of required corrective actions if needed Timely identification & Client approval of Add Services Expedited review of draft invoices and transmittal Expedited Client review and approval of invoices Pursuit of outstanding Accounts Receivable PM focus Client relationship management Project Standard Format Tools Proposal Letter Template Project Scheduling Applications Financial Indicators Software Earned Value Analysis Software Construction Administration Metrics Software Basic Services Matrix Bottom-Up Budget Templates & Samples Task Status Matrix Firm Standard A/E Agreements Consultant Database Intranet Sample Forms / Formats / Tools & Instructions Integrated Project Management What is best to remember from today? Project Management Equations Project Management Bottom Line Teamwork = Relationships of Mutual Respect and Trust Coordination = Communication + Documentation Earlier Input = Sooner Results = Higher Profits Facilitate Process = Continuously Clarify & Resolve Scope & Monitor Results Expedite Work Progress = Define Issues, Expedite Decisions & Actions Status = Past / Present / Future Actions / Dates / Responsibilities Project Work Planning is not just a Deliverable it s a continuous Team-Building and Goal-Setting Process for Buy-In + Higher Efficiency of all Team Members Defined Scope stems from Known Goals, Priorities & Expectations Client Critical Success Factors Facility Goals are still a Means to a Business End -- know your Client s Strategic Business Plan

18 Keys to Success In Conclusion Create Client and team relationships of mutual respect and trust Define process, scope & goals in detail Expand key professional role: Consultant Problem-Solver Client Advocate / Partner Trusted Confidant & Steward of Client s Limited Resources Management critical but Leadership central... the future... usually arrives before we re ready for it. Arnold H. Glasow Provide your Leaders with continuous Training plus consistent and simple / scalable Tools Architect As Conductor: The Music of Architecture Thanks for attending Integrated Project Management: Tools & Training Questions/Comments?