Meeting the Challenges to Project Delivery in Trinidad and Tobago

© PMISCC 2007 Technical Session - Meeting the Challenges to Project Delivery in Trinidad and TobagoDate: 2007.11.201

Building Professionalism in Project Management

MEETING THE CHALLENGES TO PROJECT DELIVERY IN TRINIDAD AND TOBAGO

Presented by – Danford E. Mapp


Introduction

Trinidad and Tobago has a long history in the energy-based activity. This and other economic factors and development initiatives has resulted a good record of significant projects having been undertaken (especially for our size).

The appreciation of, training in, and utilization of project management methods can be considered to be reasonable.


Introduction

There is currently the perception in some quarters, true or otherwise, of a poor delivery on projects in Trinidad and Tobago

Projects are:

• Taking too long

• Costing too much (or much more)

• Not meeting the real needs of the users or beneficiaries of the projects

• Questionable in the quality of the final product

(Time, cost, scope, quality)


Introduction

This is the ideal situation for the project manager to make his or her mark!

“If there were no problems or difficulties in executing projects then there would be no need for project managers, the secretary would run the job”


Introduction

Noteworthy from PMBOK Guide:

“…understanding and applying the knowledge, skills, tools and techniques, which are generally recognized as good practice, are not sufficient alone for effective project management.”

Effective project management requires that the project management team understand and use knowledge and skills from at least five areas of expertise…


Introduction

• The Project Management Body of Knowledge

• Application area knowledge, standards, and regulations

• Understanding the project environment

• General management knowledge and skills

• Interpersonal skills”


Global Environment

Active global construction market leading to:

�Material shortages and increasing material prices e.g. steel

�High downpayments required for the purchase of goods with sometimes long delivery times

�Growth in the number and sizes of construction companies notably in non-traditional (in T&T terms) areas e.g. China, Korea, Malaysia

�Opening of country borders and markets with easier movement of large construction firms into other new construction markets.


Local Environment

Very heated construction industry with demand exceeding supply for construction services

� Inadequate capacity to meet accelerated pace of development (“Everybody’s busy”)

�Material shortages and rapid increases in material prices e.g. steel, cement, blocks, etc., etc.

�High consultant fees and contract bid prices


Local Environment

�High mobility of critical resources (professionals, skilled and unskilled labour moving from company to company)

� Low investment in systems and skills development by consultants/ contractors to increase capacity

�Competition from other employment programmes e.g. CEPEP


Local Environment

� Influx of foreign firms; consultants and contractors

� Limited utilization of project management best practices

�Slow legal and administrative processes


Local Environment

� Lack of expertise in certain specialized fields e.g. hotel renovations, smart buildings,

�Greater affinity to “Good Enough” than to “Excellent”

� Lack of consequence management and project recovery


Client Based Challenges

�Poor project definition – the Client does not really know what he wants

�Meeting the challenge -

�Help the Client define the project properly at the outset or as close to outset as possible – It may take a little time but this is time well spent



�Benchmarking – A similar project exists somewhere in the world – find out about the experience of those that have done it before; what worked; what did not work and why. Proving that we are worth our salt does not include making the same mistakes

�Provide and encourage the Client to consider options

�Selection of preferred option should be based on solid assessments and feasibility studies



�Until the project is properly defined it is difficult or impossible to put long range planning in place for the securing of project resources, especially material sources. Thus an important aide in successful project delivery is unavailable.



�Unrealistic expectations - the Client has set project durations and costs that are based on factors other than the project itself so that delivery targets are too ambitious and costs too low


�It starts with proper project definition. The Client has no basis to set time and cost until the project is defined.

�It is supported to proper investigation, studies and fact-based estimates



�Scope Creep - the Client’s requirements keep changing as the project progresses


�It starts with proper project definition. If the Client properly examines the options at the beginning of the project the likelihood of scope changes is reduced

�If you have to make a change make it as comprehensive a change as required. One big change may be preferable to a host of smaller on-going changes



�Poor communication – the flow of information to and from the Client is slow


�Establish with the Client at project inception a dedicated Client representative team with defined roles, responsibilities and authorities (and the other Project teams as well (PM, Consultants) and define the Client’s lead contact person

�Define the reporting structure

�Define the reporting procedure



�Hold regular project meetings

�Circulate Minutes of Meetings early and widely (as directed by project protocols and reporting procedure). Make sure that everyone who is supposed to know is furnished with the information



�Delays in obtaining decisions and/ or approvals – it takes a long time to get decisions out of the Client


�Ensure that the Client is fully aware of and understands the project schedule including the critical path/ items

�Establish with the Client early in the project cycle the decision gates that are required and keep them before him continuously during the project



�Understand what information/ documentation the Client needs to make a decision and support the process as required (provide complete information in a timely manner). Have a decision-making sub-project



�Delays in making payments – it takes a long time to get money out of the Client


�Establish a project payment procedure at project initiation and determine a projected payment schedule/ cash flow

�Assist the Client in finding ways to reduce the complexities in the payment procedure (reduce number of levels/ persons involved in the payment process)



�Ensure that the Contract reflects the most likely payment timelines of the Client and that the Client understands the impact of a departure from standard timelines (increased bid prices or Contractor hardship)

�Work with the Client to determine other possibilities for project financing e.g. project loan, contractor financing,



� Lengthy inflexible tendering procedure – Client tendering procedure has significant schedule impact


�Explore with the Client alternative tendering strategies that would still satisfy the need for transparency and competitive bidding while offering quick turnaround times e.g. utilizing a third party for the bidding process



�Undertaking a pre-qualification exercise to limit the need for open tendering which can be longer based on tender response

�Exploring different procurement systems that may result in better project delivery e.g. design-build, design-build-finance, etc.



�Undisclosed site/ project encumbrances which take some time to remove


�Build the relationship with the Client so that there is the mutual respect that makes for honesty.

�Conduct proper initial investigations into site/ project parameters. Flag encumbrances and determine an agreed approach and schedule for these to be handled


Consultant Based Challenges

�Consultants are busy, their resources are stretched resulting in lack of timely response and late delivery of work (and it appears to be a challenge to say “No, thank you”)


�A thorough investigation of the proposed consultants workload and resource availability should be made prior to tender invitation

�A check of Client references of proposed consultants should be made as part of the tender evaluation



�The consultant’s resource listing and delivery schedule should be an integral part of the Contract, including the personnel to be assigned on the job and their time inputs. Consultants would be required to adhere to these commitments and failure to do so would be considered as a breach of Contract. Changes to the resource loading would require the approval of the Client

�Performance based Contract- Payment for achievement of deliverables



�Hold regular meetings

�Incentives for early delivery

�Recovery plan to be instituted by consultants at early signs of slippage

�Reducing consultant’s scope for failure to meet delivery targets without penalty to the Client

�“Cut your losses early” – Termination

�Secondary consultant retained as preferred replacement in case of non-delivery by contracted consultant



�Consultants’ work quality is poor – errors, omissions, re-dos,


�Consultants’ capabilities, experience, job history and references should be thoroughly investigated prior to invitation to tender

�Experience and capabilities of project assigned personnel should be a key factor in the tender evaluation



�Personnel and resources indicated in the tender document must be provided. Failure to do so should be considered a breach of contract.

�Interim reviews of designs, including peer reviews, at key milestones and at end of design period


Approvals Process Challenges

�Approval process is lengthy impacting project delivery schedule


�Engage approval agencies early (from project conceptual stage). Both the EMA and TCPD have openly stated that they are willing to get involved in your project and have dialogue as early as possible. Include T&TEC, WASA, TSTT and NGC in early discussions

�Find out the requirements and adhere to them


Approval Process Challenges

�Respond in a timely manner with complete information when requested

�Hold discussions regarding differences of opinion. Propose suitable options where possible. Do the research to find them.

�Follow up with agencies immediately if their responses are late in coming

�Build relationships. Earn and maintain trust

�Include adequate times for the approval process in your project schedule



On a side…what ever happened to the ”One-stop shop”?

Has been tried at least three times but has not been sustained. The principal difficulties encountered were:

1. Persons appointed could not make decisions so that plans still had to travel the route of the normal process. Agency liaison approach brought limited benefits depending on the individual

2. Agencies had limited resources and could not release individuals to the approving committee on a regular or long-term basis (especially senior personnel)



There is still a need for and merit in pursuing the establishment of a One-Stop Approval Shop.

A new National Physical Development Plan to guide overall development is also a key input in making the approval process more efficient


Contractor Based Challenges

�Contractors are busy, their resources are stretched and they are failing to keep project delivery schedules


�A thorough investigation of the proposed tenderers’ workloads and resource availability should be made prior to tender invitation

�A check of Client references of proposed contractors should be made as part of the tender evaluation (especially on recent projects)



�The contractor’s resource listing and delivery schedule should be an integral part of the Contract, including the personnel to be assigned on the job and their time inputs. Contractors would be required to adhere to these commitments and failure to do so would be considered as a breach of Contract. Changes to the resource loading would require the approval of the Client



�Milestone-driven Contracts which give the Client the right to step in to amend Contract scope or take other corrective measures once intermediate milestones are not met. May require particular Conditions of Contract to bring this into the Contract.

� Reducing contractor’s scope for failure to meet delivery milestones without penalty to the Client

� Early determination of Time Extension due (with and without cost implications). This a key part of judging the Contractor’s performance.



�Recovery plan to be instituted by contractor at early signs of slippage

�Performance based Contracts- Incentives for early delivery and penalties for late delivery

�Phased project with on-going awards as earlier phases are successfully completed. New contractors would be engaged in the event of failure of the first contactor to deliver

�Hold regular project meetings and try to resolve issues quickly

�Insist on the use of Project Management methods



�The Client embarked on his project to have it delivered not to get Liquidated Damages or a Bond payment. Maintain the right focus. The aim is to get the job done; so be pro-active and take corrective action early.

�Conditions such as those above may cause Contractors to avoid bidding on projects or provide high bid prices to cover risks. To counteract this you would need to build relationships to a level where your fairness and professionalism are respected



Contractors are busy, their resources are stretched and they are not tendering for projects


�Utilize Expressions of Interest to gauge potential to attract tenderers. Market projects to bidders. This often requires a personal interface. Understand bidders concerns and their reasons for not tendering on projects.

�Build relationships. Contractors may consider bidding a job if it means working for someone they respect. (On the converse side, contactors would be very likely to bid a job if the Client or PM is a “walkover”)



�Contractors’ work quality is poor

(Remember, people may eventually forget or forgive your cost and time overruns but poor quality work will remind people for a long time why your poor performance as a project manager should not be forgotten nor forgiven. Do not compromise work quality. Poor work quality has a tendency to come back to haunt you.)

Meeting the challenge -

�Ensure that the Contract Documents contain properly drafted, relevant Technical Specifications. Use peer reviews to assist.



�Review Work Plan and Method Statement to ensure adherence to the Technical Specifications. Work Plan and Method Statements should be made part of the Contract.

�Ensure adequate levels of capable project supervision from onset of construction

�Enforce inspection procedures and quality standards

�Is the lowest bid too low? Quality is usually a casualty


Project Manager Based Challenges

Project Managers are not fulfilling their contractual obligations. Projects are not being properly controlled.

Meeting the challenge -

�Check qualifications, experience and references of PM before engagement

�Ensure that appropriate PM techniques are utilized

�Establish project fundamentals from the outset –PM’s role, responsibilities and authority; proposed project delivery schedule and estimated or contracted project cost; project monitoring and reporting systems, etc.



�Maintain good lines of communication

�Meet regularly

�Formulate an agreed on action plan to be implemented in the event of project slippage

�Monitor PM’s performance and give regular feedback. Take to task immediately when quality of performance diminishes



�Project management methods work but we can not apply them in a vacuum. The world is not perfect and unless the PM deals with the real world and meets the many challenges to delivery he will find himself asking (sometimes frequently) “How come my project isn’t going the way it’s supposed to?”

�Project management is about change. The PM’s job is to deal with the changes that inevitably come his way as he seeks to fulfill his role and to make those changes that are required to ensure that his Client’s intentions are met.