Managing Capital Projects What YOU Need to Know

Transcription

1 Webinar Series

2 Managing Capital Projects What YOU Need to Know Speaker Bill Bacon DpIT, CET, PMP Senior Project Manager, Technical Services Department Housing Services Corporation Sept 14,2016

3 Questions? Control Panel- Questions pane Type your questions here then click send

4 About SHARE ONLINE RESOURCE HUB EOA Resource Centre Building Capacity Revitalization EVENT SERIES Webinar Series Innovation Events Regeneration Forum http: //share.hscorp.ca

5 Fall SHARE 2016 Webinars Sept 26 Oct 19

6 Fall SHARE 2016 Webinars Nov 2 Nov 16

7 Visit the SHARE-EVENTS for more info

8 Speaker: Bill Bacon Senior Technical Project Manager

9 About this Webinar Intended to equip you with the fundamentals of managing capital projects and how you can get the most value from your capital budget efficiently and effectively. Provide insight and practical tips on how to maximize the chances of capital project success by anticipating common pitfalls, early on, and taking appropriate actions to avoid them or deal with them should they present themselves.

10 Webinar will cover: How to avoid or manage common pitfalls Practical tips on how to maximize the changes of capital project success Understanding project constraints and taking action early on Managing and avoiding risk Value of professional project management

11 Capital Projects Capital projects can be for new construction, expansion, renovation, or a replacementprojectfor an existing facility or major components within a facility

12 How to avoid or manage common pitfalls Because capital projects involve many different processes and stakeholders, there is always a chance that the project will be hindered by unknown risks, and/or unexpected problems. Caution Pitfalls Ahead!

13 Why does it matter: Anticipating common pitfalls and understanding how to avoidor manage them is one of the most important steps towards ensuring a project s objectives can be successfully achieved. Common pitfalls, if not avoided or properly managed, will cause a project to take longer and cost more than expected. Why are we are running out of time and money?

14 So what can you do A Project Manager can help! While not all pitfalls can be avoided, having an experienced project manager guide you through the process will help minimize or mitigate the many risks related with capital projects. The pitfall monster... I want more, faster and cheaper!

15 Where the pitfall monster hides 1. Site investigation and feasibility studies 2. Stakeholder alignment 3. Scope, schedule and budget definition 4. Acceptance criteria for deliverables 5. Risk management 6. Performance monitoring & control 7. Reporting and Communications 8. Change control 9. Project close out 10. Project Management How could we avoid or manage this potential risk?

16 #1Site Investigations& Feasibility Studies By conducting appropriate site investigations and feasibility studies while your project is still in its concept stageyou determine what you can afford and how to get what you want. It can also identify things in your project that will likely increase the cost of construction.

17 #2 Stakeholder Alignment Sufficient time must be spent in the planning phase to make sure that all stakeholders are on the same page. Stakeholder alignment (buy-in and support) is KEY to the success of any project!

18 Identify your stakeholders Create a Stakeholder Map

19 Create a RACI Chart A RACIChart is a tool that can be used to help identify the roles and responsibilities of those involved in the project and help avoid confusion of those roles and responsibilities. What s RACI?

20 RACI -Definition

21 RACI Example

22 # 3 Scope, Schedule & Budget Definition Capital projects completed within budget and on schedule are an exception, not the rule!

23 Understanding the Triple Constraints

24 Clearly Define Constraints! Ensure scope, budget available, and time is clearly defined during initial project plan and again at project initiation. Ensure stakeholders are aware of what the ramifications might be for any requested or mandated changes.

25 Develop Comprehensive Schedule Ensure ALL project activities are in the schedule Breakdown, breakdown, breakdown work! Review schedule and get input from stakeholders Consider history other similar projects Once project is implemented, monitor scheduled activities

26 #4 Acceptance criteria for deliverables Acceptance criteria represents specific and defined list of conditions that must be met before a project has been considered completed and the project deliverables can and will be accepted by the client. Poorly defined acceptance criteria for deliverables is another of the major causes of project failures. Do NOT assume a listed deliverable (requirement) = acceptance criteria

27 Define SMART Acceptance Criteria S Specific M Measurable A -Achievable R Realistic T Time Bound

28 #5 Risk Management Failing to be pro-active and openly consider risks and issues is a major pitfall you will want to avoid. Recognize risks and issues will be part of the project and take time early on to identify them and make plans to avoid or management them

29 Managing Risk For negative project risks... some we can AVOID some we can CONTROL some we can TRANSFER some we must ASSUME

30 Avoiding Risk Example: Choosing a vendor/ design/productwith a proven track record at a higher price over a new vendor that is providing a significant price incentives to avoid the risks related with working with a new system. ie: exterior stucco cladding

31 Controlling Risk Some practical steps you could take include: experienced project management trying a less risky option ensuring an up-to-date DSS is in place and made available to the Constructor understanding legislation related to Constructor /Owner duties preventing access to the hazards ensuring work by the constructor is set up to reduce exposure to the hazard(s)

32 Transferring Risk Insurance Bonding Bid bonding or deposit Labour and material bonds Performance bond Liability Un-owned vehicle Builder s risk or umbrella coverage

33 Assuming Risk Accepting riskoccurs when the cost of managing a certain type ofriskis accepted, because therisk involved is not adequate enough to warrant the added cost it will take to avoid thatrisk. i.e., landscape covering when repairing exterior walls.

34 Develop a Contingency Plan Contingency funds are funds set aside by the project to address unforeseen events that cause the project costs to increase Project with high risks will typically require a large contingency budget. After risks are identified and evaluated, develop a risk mitigation plan what you will do to minimize the impact of the unexpected event.

35 Questions? Control Panel-Questions pane Type your questions here then click send

36 #6 Performance Monitoring & Control Your project should have clearly defined milestones so that all stakeholders understand what successfully completed means. (SMART Acceptance Criteria) Performance should be measures against these clearly defined milestones. Take corrective actions as soon as issues emerge.

37 #7 Reporting and Communications Create a reporting and communication plan based on your stakeholder needs (refer to your Stakeholder Map and RACI Chart). Stakeholder(s) Information Method Frequency Who is responsible? Board members Project status report Monthly Project Manager Building Owner Develop a Communication Plan Detailed project reporting Meeting, report Every other week Project Manager Financial Funder Project status Meeting Monthly Project Manager Vendors Project initiation Meeting 1month prior to Project Project Manager

38 Communications & Reporting Your reporting should include: clearly defining where the project is relative to Budget, Schedule and Scope. status reporting- include details on any contingency expenditures and change orders (requests, approvals, completed, or rejected). performance is based on clearly defined and understood measurements (milestones). planned versus actual be comprehensive.

39 #8 Change Control Failing to define and execute an integrated change control process will surely reap disaster Create a well-defined change control process that provides a mechanism for evaluating, approving or rejecting changes Ensure changes are assessed for their impact on constraints of the project before making decisions and enacting change Engage all stakeholders in change control (RACI chart)

40 #9 Project close out Critical steps often overlooked: Deficiency review Final inspection / close out of permits / record drawings System start up, verification, demonstration Testing and verification reports Warranties / Guarantees / Certifications Construction lien requirements and release Payment certifications (final) Insurers notifications (handover) Occupancy permits, surveys, title registrations End of warranty period review It s better to be looked over than overlooked!

41 #10 Project Management Consider: Who is managing your project? Ensure all team members follow value-added project management processes; these processes will help you effectively execute, monitor, and control your project

42 HSC Technical Services Can Help with Your Capital Projects To-Do List Multi-Year Project Management Preventive Maintenance Planning Full Project Management Services Building Inspection Reports Procurement Management Ontario & across Canada Data Verification for Asset Planner

43 Thank you If you need Project Management assistance: Bill Bacon, DplT, CET, PMP Senior Technical Project Manager Telephone:

44 Questions? Control Panel-Questions pane Type your questions here then click send

45 http: //share.hscorp.ca