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1
Management Control Systems of Large Infrastructure Project:
A Case Study of Delhi Metro
Anil Kr Gupta,
General Manager/PPP
IRICEN, Pune, 11, April 2016
2
Project Management
Many look at it as a tool for planning there work
Everyone of us have to plan his day, week or the year ahead
However as the complexity of a Project increases so does the challenge
It applies to every day business such as Contractors, Consultants, New Development, Made to order
But the complex projects like Space missions, Troop Mobilization, Organizing Commonwealth Games, Building Metros, Bridging and Tunneling in Himalayas are the really challenging ones
3
• Frequent Changes in the Chief Executive
• No committed fund
• Commencement without proper investigation and planning
• Faulty contract packaging and poor selection process
• Poor decision making process
• Casual and Indifferent Project Management
Key Reasons for Project Overruns
4
Delhi Metro Project presents a Project Management System
that overcomes all these problems?
5
Basis of the Case
The Case is based on the Phase I of the Delhi Metro Project in general
and MC1A Contract (Vishwavidyalaya to
Kashmere Gate u/g coridor) in particular
6
Background
Detailed Project Report in 1995, Phase I by 2005
DMRC created on 03/05/95 as 50:50 equity from GOI and GOD
Phase I Cost Rs.10,500 crore (62.5% funding from Japan) and field work commenced in Oct’ 98
A General Consultant (GC), of PBI (USA), PCI, JARTS, Tonichi (Japan) and RITES (India) provided the project consultancy
The Project implementation period compressed from 10 years to 7 years and was successfully achieved
7
Record Sheet of DMRC
Section Length(km)
Target Dateas in 2002
CommissionDate
Shahdara-Tis Hazari 8.0 Dec 2002 Dec 2002
Tis Hazari-Tri Nagar 4.7 Sept 2003 Sep 2003
Tri Nagar-Rithala 8.8 Mar 2004 Mar 2004
Vishwa Vidyalaya-Kashmere Gate* 4.0 Dec 2004 Dec 2004
Kashmere Gate-Central Secretariate 5.5 Sep 2005 Sep 2005
Barakhamba Road-Kirti Nagar 6.0 June 2005 Dec 2005
Kirti Nagar-Dwarka 16.4 Sep 2005 Dec 2005
*The Case study is based specifically on this MC1A Contract
8
Salient Features of Contract MC1A
Section : Vishwavidyalaya – Kashmere Gate
Nature of Contract : Design & Construct Contract LS
Contractor : KSHI - JV
Value Of Contract : Rs 900 Cr + Provisional Sum
Length : 4.105 KM & Depot 434 M
No. Of Stations : 4
Start Date (NTP) : 22nd MAY 2001
Completion Date : 25th JULY 2005 (218 WEEKS)
Line Commissioned in Dec 2004, 7 months prior to the scheduled date
MC1A Corridor
9
Work started in May,2001
Expected completion of civil works Dec,2004
2,31,000 Cum of structural concrete
12,00,000 Cum of excavation
10
Salient Strategies that Paid off
11
Technology Risk Management
• First set of u/g Civil, E&M, System, Rolling Stock contract packaging to attract international firms
• Condition: Indian partner and technology transfer to them
• Even GC Contract required Indian partner (RITES)
• Foreign experts of GC helped in transfer of technology to DMRC
• DMRC Engineers deputed to GC and Contractors
How it paid: All subsequent contracts and consultancy became indigenous
Managing Knowledge in GC
GC came in Sept 1998 and during first six months till march 1999 all foreign experts worked
Every Expat was with one Indian counterpart from RITES
All Technical and complex documentation draft done during this period
Subsequently Indian experts with foreign project managers and some key experts managed the show
During the lull periods of delay in tender award expats took series of training sessions for DMRC/GC (Indian) staff
How it paid: Expertise for dealing with foreign contractors and consultants obtained at minimal cost
12
Advance Preparation by DMRC
Road widening, boundary wall on sites, land acquisition
Understandings with local authorities on utilities, traffic, tree cutting/re-plantation, ground water
Surveys and alignments by GC came in handy
All the above gave a head start to the contractor
13
Mobilization and Build Up Strategy
First six months in mobilization and build up of site organization
Contractor’s and GC’s best brains were deployed during this period
Before the foundation laying all Procedures including Safety, Quality and Environmental systems were in place
Too harsh during first six months of construction in all spheres
14
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Worker/ Engineer Training
• Projects are temporary organizations with large number of fresh hires
• DMRC was a new organization with inexperienced but intelligent and motivated engineers
• All top and middle level engineers/ managers (GC/DMRC) sent to metros around the world
• They became trainers for their junior staff
• Compulsory training in construction methodology, quality and safety systems at site to all recruits of contractor
How it paid: Pride and motivation among staff while working on project, safe and quality work
16
Managing Utilities
• Utility Diversion through provisional sum
• Local authority’s retired chief engineers hired
• Local authority’s working contractors hired
• Local authority’s engineers supervised
• Innovations passed on to authorities
How it Paid: Work done in 25% of the cost quoted initially by bidders (this is 50% of the cost demanded by utility authorities)
17
Traffic Management
• Scientific Diversion plan
• Improvements to branch roads (temporary bridges)
• Comprehensive Traffic Signage
• Own staff for regulating traffic
• Unidirectional traffic flow with lighted hoarding
• Real time congestion monitoring
How it paid: Better access to site, free movement of construction vehicles, public image
18
Winning Public Support
• Proper property access through steel decked roads to individual houses
• Improving police station buildings and clubs
• Constructing boundary walls for IP College for women
• Instrumenting buildings for monitoring vibration induced impacts
• Prompt attention to public’s utility disruptions
• Rescheduling works for Five Star Hotel
19
Managing Health and Safety
• No entry without helmet and safety boot, not even MD!
• Substandard safety condition reporting (SSPCR)
• 24hrs medical attendant doctor - tie up with nearby hospital
• Safety drill and job training at site
• All incidents, howsoever minor, reported (IR)
• A Safety Compendium was maintained for incidents and learning
How it paid: Minimum disruption, higher motivation, higher work output
20
Environmental Management
• Tyre Washing System
• Water sprinkler system for dust control
• Silent Generators
• Neat and tidy work sites
• Conservation of Ground Water
• ISO 14001 certification
How it paid: Better mobility of worker, higher output, public image, fame to contractor
21
Quality Management
• Stigma free reporting and documentation of violations
• SIs – for smaller violations (about 250)
• NCNs – for serious violations (about 65)
• Contractor’s corrective and preventive action
• Follow up with changes in MS/ WP
• Contractor’s own similar system
How it paid: Created a Reliable system and work culture which was later used to jack up progress like batting in slog overs of one day match
22
Quality Inspections
• Section Engineers all day and Resident Engineer’s morning inspection
• Construction Manager’s weekly inspection
• CPM’s fortnightly inspection
• Director’s Monthly inspection
• MD’s quarterly inspection
• Weekly safety inspection, and surprise night inspections
• Weekly Environmental inspection
• Designer’s weekly site inspection
How it paid: Everyone remain charged up, no blame game, prompt solutions
23
Motivating People• Group Awards by Contractor:
– Best Section Award, Best House Keeping Award,
• Group Awards by DMRC:
– Safety Shield for the Best Contract on Safety Day
• Individual Awards:
– Best Section Manager’s Award, Best Safety Manager’s Award, Best worker award
• Functions and Celebrations:
– Foundation Day for DMRC, Foundation Day for Contractor, Safety Day, Celebration for achieving important Key Dates
• Team Spirit Encouraged in joint participation of DMRC, GC, Contractor and Design Consultant staff in celebration
• Colorful MC1A Monthly bulletin for highlighting achievements
24
Managing Design and Decisions
• Major decisions in meetings
• Concept approvals by MD in the presentation
• ‘Deemed acceptance if no comments by cut off date’
• Work must not suffer for want of design decisions
• On site consent or even on phone of design changes
• Online monitoring of design progress for scheduled works
How it paid: The biggest reason for delaying a project is gone
IIMB, January 6, 2010 25
Managing Informations
Web Based Project Management Information System (PMIS)
• Daily Site wise Progress
• Cumulative Progress
• Site Photographs
• Drawing Management
• Controlled Documents
• Reports
• Schedules
•Online Instrumentation
• Milestone Status
Home Page
Some Site Photographs
26
27
A view of Concrete Batching Plant
28
A view of Rebar Fabrication Yard
29
Formwork fixing in Progress on Tunnel Roof
30
Concreting in Progress on Tunnel Roof
31
Work in Progress from Steel Deck inside the Hoarding
32
Work in Progress at Vishwavidyalaya Station
33
Excavation under Steel Struts Supporting Sheet Piles
34
Inside the partially roof casted tunnel
35
Dedicated Footpath on both sides on the Shamnath Marg
36
6.00 Hrs in the morning, traffic stopped for blast
37
Rebar Fixing at floor slab at Vishwavidyalaya Station
38
An aerial view of road and work sites
39
Tunnel Taking Shape- Top Down Construction
40
Steel Deck Access to a Residence in Civil Lines area
41
Vibro Sheet Piler at work
42
Silent Sheet Piler at work
43
Tyre Washing System
44
A safety training in Class
45
Crack Meter on the wall of a building
46
Best Section Manager Award by MD to A-1 Section Manager
47
Safety Talk to Workers on Safe Working at Height in A-2 Section
48
Safety Award to the Project Leader of the KSHI JV by MD
49
Hand Written Note by MD
50
Recognition to the Safety Manager of the MC1A
ISO 14001 Certification
Citation From MD for ISO 14001 Certification
My Last Working Day on 25th November 2003 (Kashmere Gate Station in the Background)
Founding Principles of Delhi Metro Construction Management
No hoardings reading
– “Inconvenience is regretted”,
– “Work in Progress”,
– “Please bear with us”
These hoardings indicate poor planning and callous approach
They are indicators to future accidents, time overruns and cost overruns
Founding Principles....
A new project brings new investment
Agency developing the infrastructure is in a better position to manage civic services at site
Hoardings at work sites on street should
– be a welcome sign
– public should expect better roads, smoother traffic and safer environment
– be a brand building for agency, contractor and consultant
56
Contract Planning
Framework of Works Contract
Item Rate
Contract
Build to
Design
Contract
Design and
Build
Contract
Design, Build
and Finance
Contract
Design,
Build,
Finance and
Maintain
Contract
Increasing Degree of Risk Allocation to Contractor
BOT
EPC BOLT
Objectives of Contracting
Faster Construction
Smaller no. of Interfaces
Less Intensive Supervision
Project Financing (for part funding of project)
Lower Life Cycle Cost
Superior Asset Reliability - near zero failure
Less Frequent Maintenance
Lower Maintenance Duration
Contract Selection by DMRC
Item Rate (Zonal Based) Contract for site preparation
Construct Only Contracts for Elevated
Design and Construct for first two u/g contracts, MC1A and MC1B
Subsequent u/g contracts for phase I on Construct Only
U/g contracts in second phase on Design and Construct
Private Concessioning-(Airport Line)
– Tunnel on EPC model
– System, Rolling Stock and operation on BOT model
Review of DPR
Why Review of DPR
DPR generally prepared by a team not directly responsible for implementation
Many DPRs do not get implemented
Project team and its Leader must own the DPR on which project is implemented
To avoid any blame game later on
61
Reviewing DPR by DMRC Corridors revised to align them to the busiest roads
Contract Packaging changed for better quality and control e.g. Metro Corridor:
Contract Package
• Two Contract MC1A & 1B.
• Design & Construct -EPC
• The Packaging is done based on proposed method of construction i.e.(cut & Cover vs Tunnel Boring)
• Civil Engg. Electrical & Mechanical, Lighting(AC & Ventilation) all combined.
DPR
• 10 Civil Structure Contracts.
• Construct Only.
• Tender Documents are prepared on the basis of traditional multi-contract implementation Strategy
• Several E&M Contracts
• Several Ventilation/AC Contracts
Project Management Consultant(PMC)
64
Why PMC ?
A new SPV is neither experienced nor adequately equipped to handle the project management on its own.
To keep organization lean
Professional Management
Bridging the Knowledge Gaps
Better Relationship with Contractor
Managing New Contract types
65
Project Consultancy Practices
Contract Specific
– NHAI, RVNL, BOT Projects
Project Specific
– General Consultant in DMRC
Organization Specific
– Irrespective of Contract or Project; being considered for CAO’s organization on IR
66
Defining the Role
Project Management involve:
– Planning, Procurement and Tendering
– Measurement and Billing
– Progress Reporting
– Quality and Safety Monitoring
What should be the best way of allocation of above works?
67
Role Allocation
Authority
Design Consultants
Contractor
CAO RVNL DMRC
Authority Authority
PMCPMC
Contractor Contractor
68
How to Balance the role?
Client • Payment, Variations, and other contract management issues
• Planning, procurement and tendering
• Overall responsibility
Contractor • Contractor’s own Safety and Quality monitoring
• Monthly Progress Reporting
• Measurement and Billing
PMC • Safety and Quality monitoring
• Parallel Progress Reporting
• Checking of measurement and bills
• Assist client in planning, procurement and tendering
69
Risk of Misjudgment
LeaderCAO
Individual
System
Exhibit-9
Leader
Individual
System Leader
Individual
System
CAO RVNL DMRC
70
General Consultant to DMRC
Acted as Employer’s Representative on specific corridors and contracts
Did for Employer
– review of DPR
– tender management
– monitoring of execution
– NOC to Contractor’s drawings
– Testing and Commissioning different systems
DMRC kept payment, changes in contract, approval to
key drawings only
71
EPC Contract Design
72
Description Amount
a. Additional Testings
b. Furniture, Cabinets & Shelves
c. Artwork & Landscaping
d. Architectural finishes including false ceiling
e. Diversion & Support of utilities
Rs. 50 Lacs
Rs. 50 Lacs
Rs. 1.5 lacs
Rs. 15.5 (crores)
Rs.15 crores
MC1A Contract- Uncertain and Risky Items in Provisional Sum
73
Activity Milestones Based Payment Cost Center Based Planning:
– 01 Preliminaries and General Requirements
– 02 Design (A-Civil, B-E&M, C-Tunnel Vent)
– 03 Tunnel Construction (A to D Sections, E-Depot Access)
– 04 Station Construction (A to D Stations)
– 05 Electrical (A to D Stations)
– 06 Water, Plumbing, Drainage (A to D Stations)
– 07 Fire Detection and Suppression (A to D Stations)
– 08 ECS (A to D Stations)
– 09 Tunnel Vent (A to D Stations)
– 10 Testing & Commissioning (A to D Stations)
– 11 Product Support (A to D Stations)
74
Milestones Submission by Tenderers
Cost Center Outline describing activities included in it and typical activities and their ID numbers provided in tender
Tenderer to prepare its own Milestone Schedule matching its Program for entire project quoting $ and Re components of payment demanded together with Week of completion
Typical Milestone Numbers and what it implies
– 3B.20B implies Sheet Plie 50% complete by plan length at Ch 11+002 m to 11+627 m of Tunnel from V V Stn. to OS Stn.
– 4D.10A implies V V Station Base Slab 50% complete
Monthly cash flow to be submitted by tenderer and that should generally match with the physical progress of work proposed e.g.‘S’ Curves for Concrete
Lowest tenderer based on cumulative present value of milestone payment schedule of the tenderer
75
Sub-Contracting Provisions
Tenderer prequalified with Design Consultant and T&C of proposed contract with it to be submitted with tender
Sub-contracting for works other than design limited to 50% of LS Price
Each sub-contract exceeding Rs. 1 million to be prior approved
Each sub-contract for provisional sum works, irrespective of value, to be prior approved
76
MC1A Contracting EnvironmentDMRC
KSHI JV
GC
Sub Contractors
(upto 50% of the LS cost)
NOC for > Rs.1 million
Labour Contractors
PS Sub Contractor
Design Consultant
(MSEA)
Sub Consultants
Approval for each PS Sub Contract
77
Interfacing with Other Contracts
78
Metro Corridor System Wide Contracts
MC1A Civil Structures VW Station to ISBT (4Km)
MC1B Civil Structures ISBT to Central Secretariat (6.5 KM)
SYS 01 Signalling and Communication
SYS 02 Traction & Power Supply
SYS 03 Track work
SYS 04 Automatic Fare Collection
SYS 05 Lifts and Escalators
MC2 Khyber Pass Depot
RS1 Rolling Stock
79
Key Dates for MC1A Connecting System Wide Contracts
KeyDate
Description of Key Date
KD1
KD5
KD8A
KD8B
KD8C
KD9
KD10
KD11
KD12
Preliminary Design 14 Weeks
Definitive Design 39 Weeks
Hand Equipment Rooms to SYS01 & SYS02-113 Weeks
Hand Concourse to SYS04 –155 Weeks, station complete
Handover Basic Structure to SYS 05-120 Week
Hand Track way to SYS 03 – 120 Weeks, tunnel complete
Power on to Station/Tunnels – 186 Weeks
Handover for Integrated Testing-193 Weeks
Completion of Works – 218 Weeks
Key Dates vs Milestones
Both have a date specified in number of weeks from NTP for each
Key Dates are constraints for Project Network but Milestones are not
Non adherence to a Key Date invites penalty while that of a Milestone only delays the respective payment
Achievement of subsequent Key Date gets refund of penalty on earlier Key Dates while achievement of any milestone is independent of any other milestone
Key Dates were renegotiated for early commissioning while Milestones were allowed to be split for improving cash flow to contractor
80
81
Project Scheduling
82
Scheduling Strategy of DMRC
Chief Program Expert in GC was responsible for developing Primavera schedule
Stage wise commissioning dates identified in top level schedule
Cut off dates for all policy, technical, and contractual decisions in the planning phase
While fixing key dates for contracts, strategic buffer was kept at the end
Two level project management
– Corporate level: Key Dates for interfacing and buffer management
– Contract level: Milestones and Network Technique for monitoring
83
Key Dates and Buffers
Buffer
Critical Chain = L Buffer = L/2 Commissioning
KD 1 KD 2 KD 3
KD 4
KD 5 KD 6
A Typical Project Schedule
84
Scheduling Strategy of Contractor
Cumulative Payments ‘S’ curve matched with the Earthwork and Concrete ‘S’ curve derived from Schedule
Estimation of cost, payment flows and Programme logic followed each other
Some key resources centralized for reducing uncertainties- Lab, Batching Plant, Rebar Fabrication yard, Plant Maintenance, stone crushing plant
Objective: Latest Start and Highest economy
Proposed: 3 phase construction, for reusing temporary structural steel
85
Concrete Consumption
0
5000
10000
15000
20000
25000
1-Apr-02
1-May
-02
1-Ju
n-02
1-Ju
l-02
1-Aug
-02
1-Sep
-02
1-Oct-02
1-Nov
-02
1-Dec
-02
1-Ja
n-03
1-Fe
b-03
1-Mar-03
1-Apr-03
1-May
-03
1-Ju
n-03
1-Ju
l-03
1-Aug
-03
1-Sep
-03
1-Oct-03
1-Nov
-03
1-Dec
-03
1-Ja
n-04
1-Fe
b-04
1-Mar-04
Time Period
Co
nc
re
te Q
ty
0
50000
100000
150000
200000
250000
300000
Monthly Concrete Qty
Actual Monthly Qty
Cumulative Concrete Qty
Cumulative Concrete Qty
S-Curve for Concrete Pouring S- Curve for Milestone Payment
Payment S-Curve
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Jun-
01
Aug
-01
Oct-0
1
Dec
-01
Feb-
02
Apr
-02
Jun-
02
Aug
-02
Oct-0
2
Dec
-02
Feb-
03
Apr
-03
Jun-
03
Aug
-03
Oct-0
3
Dec
-03
Feb-
04
Apr
-04
Jun-
04
Aug
-04
Oct-0
4
Dec
-04
Feb-
05
Apr
-05
Jun-
05
Millio
ns
Months
Cu
mu
lati
ve
IN
R. Eq
uiv
ale
nt
Cumm.
INR Equi.
Use of S- Curve for Project Scheduling
86
EPC Bidding Process
87
Project Feasibility by the Contractor
It is inherent in the process that a contractor follows in responding to the request for proposal
Tender System should be designed to ensure proper feasibility study by the contractor for complex projects (EPC)
Pre Qualification and Technical Proposal plays an important role in this
88
Request for Qualification (RFQ)
89
Why need Pre Qualification?
Preparation of High Value EPC Bid: a time consuming and costly affair
Good parties do not invest in bidding unless they have a 20% chance of winning
Pre-qualified bidders provide a structured and meaningful feedback on the bid process and documents
They become stakeholders in the faster completion of the bid process
Necessary for bigger and complex projects
90
Technical Proposals
9191
Technical Proposals Essential for Complex Tenders
Drawings speak much more than Specifications
To avoid interpretation problems later
Authority is paying for the works and shall have to maintain the assets
To bring the understandings of different bidders at a level playing field before opening financial bids
Example of Vishwavidyalaya metro station technical evaluation
92
Contents of Tender Documents
Works Program including Key Dates and Milestones
Employer’s requirements- Functional, Design, Construction, Manufacturing, Installation and Testing
Outline Design Specifications
Outline Construction Specifications
GCC & SCC
Safety, Quality and Environmental Manual
Tender Drawings and Tender Forms
93
Evaluation of Tender Proposal
GC teams of experts in each field including programming constituted
Based on pre-bid queries and meetings with pre-qualified Tenderer's eight amendments issued
211 clarification questions covering every aspect of the proposal raised- many repeated to get clear confirmation
Answers/ confirmations sought in unambiguous terms together with revised proposals in many cases
NPV computation for the financial proposal
94
Sample Clarification Question & Answer
95
Value Addition During Tendering
96
Alternatives and Options in Tender
Alternatives for deviations from Employer's Requirements and Outline Specifications in separate ‘Technical’ and ‘Financial’ packets
Options for change in basic nature of project
– Option A- Tunneling from Ch11+025m to 12+000m (Rocky area) instead of Cut & Cover
– Option B- Entire stretch with Tunneling instead of Cut & Cover
Alternatives are deviations in the Base offer itself while Options are complete set of optional tender
97
Value Addition in Tender Process
Interactions with tenderers lead to understanding of break up of offer and risks that were priced
A reduction of more than Rs. 60 crore was achieved in LS Price
– By including Utility Diversion in Provisional Sum and increasing it by Rs.15 crore
A reduction of more than Rs. 200 crore was achieved in LS price due to following changes
– Min soil cover over tunnel/station box roof relaxed from 2m to 1m at localized places like subways
– Road allowed to be raised and regraded at localized places to meet min soil cover without raising tunnel alignment
Execution of the Project
98
99
Flow Chart of Design and Drawings
Tender Proposal
Preliminary Design
Definitive Design
Construction Reference Drawing
Working Drawings
Final design
As-Built Drawings
Project Management
100
101
Project vs OperationProject Operation
One time or a few times activities
Repetitive Activities
Temporary Organization Permanent Organization
Decisions Based on situations
Decisions Based on set rules
Higher technological and knowledge input
Mechanized or systematized set up
Managing constraints through unknown routes
Hardly any unknown situation
First time execution a Project
When execution isrepeated, becomes Operation
102
Project Management
It has three dimensions
– Budget, Time and Quality Standards
An efficient organic way of achieving the Project Goal with necessary tradeoffs among the three
But be careful against treating it as hard quantitative CPM/PERT application software
It is actually a Soft Behavioral and System Approach
Hierarchy of Decisions is key
103
Management Hierarchy in Project System
System Environment
Institutional Level
Organizational Level
Technical Core
Power delegation and decision making at each level has to be different for the system to work
104
Decision Makers in the Hierarchy
System Hierarchy
Phase-I of Delhi Metro
MC1A Contract
System Environment MoUD, Delhi Government, BoD
(DPR and Funding Variation)
MD and Directors
(Cost and Time Variation)
Institutional Level MD and Directors
(Alignment and Contract Packaging)
PM/CPM
(Specification Variations)
Organizational Level CPM
(Land, Survey and Planning)
RE/ DyCE
(Procedure variation)
Technical Core Dy CE
(Site Development)
Site Engineers
(Inspection and Conformances)
105
System Hierarchy for Routine Work
System Environment
Institutional Level
Organizational Level
Technical Core
As the complexity and uncertainty decreases the inner circles expand
106
Standardization of Processes
107
Procedures and Method Statements
Deputy Production Manager responsible for preparing from Contractor side
Resident Engineer from GC responsible for reviewing and giving comments
Work started only after relevant process approved through issue of NOC from GC
32 MPs, 56 MSs & ITPs and more than 30 WPs were developed in the contract
108
Standard Procedures Expanded the Technical Core
System Environment
Institutional Level
Organizational Level
Technical Core
As the standardization and repetitiveness increased the inner circles expanded requiring lesser intervention of higher level decision makers
109
Project Life Cycle and Phases
110
Activities in Life Cycle of Project
Planning Designs Construction Services Finishing Commissioning
Time
Activities
111
Each Phase Requires Different Levels of
Control
112
Phases of a Project and its Control
Phase Primary Control
Secondary Control
Tertiary Control
Project Creation
System Environment
Planning Institutional System Environment
Design Organizational Institutional System Environment
Construction, Services and Finishing
Technical Core Organizational Institutional
Testing and Commissioning
Organizational Institutional
Operation Separate Operating Organization
113
Flexible Management System
Life Cycle puts resources, costs and schedules in a constant state of change
Management must be flexible to respond and authorize changes
Flexible strategies for tradeoff among time, cost and standards
114
One Implementing Agency for All Activities
115
No Duplicity of Implementing Agency
Agency developing the infrastructure is in a better position to manage civic services at site
– No dependency on DJB, DVB, MCD, MTNL for utility diversion
This avoids blame game and feelings of helplessness
Compare this with the preparation for the Commonwealth Games 2010
No amount of GOM or Committees can replace the decision making process of one sole agency
116
Monitoring System
117
Building Site Organization- MC1A Contract
4 Sections, A to D (corresponding to cost center names) comprising one km of tunnel including one station
GC Organization parallel to Contractor’s
– Section Manager (Contractor) vs Section Engineer (GC)
Quality, Safety and Environment Managers reporting directly to the Project Leader
– Respective GC Experts reported to PD whereas SE Spl was the counterpart at site reporting to RE
Traffic and Utility Coordinator appointed by the contractor for coordination with sub contractors and authorities
118
SE Section B
MD (DMRC)
Proj Dir (GC)Dir Proj
CPM (MC)
Dy. CE North MC
E. E.-1
PM (MC)
CRE (MC1A)
RE
SE Section A
PM
SM Section A
PL (MC1A)
E. E.-2
SE Section C
SE Section D
SM Section B
SM Section C
SM Section D
SE Spl RMs 1,2,3,4
CPM-Chief Proj Manager; PM-Proj Manager; CRE-Chief Resident Engineer; RE-Resident Engineer; SE-Section Engineer; EE-Executive Engineer; PL-Proj Leader; PM-Production Manager; SM-Section Manager; RMs-Resource Managers
Organizational Structure of MC1A
Line of communication
Line of Command
119
Schedule of Meetings
• Chaired By DMRC
– Quarterly Community Interaction Meeting
– Monthly progress meeting by Director
– Field meeting by MD after inspection
• Chaired by GC
– Weekly Progress Meeting
– Weekly Design Coordination meeting
120
Schedule of Meetings…contd.
• Chaired by Contractor
– Monthly Safety Meeting
– Site coordination meeting by each Section Manager
– Interface Coordination meeting with other contractors
How it Paid: Complex issues got resolved fast to every one’s satisfaction, Accountability for commitments
121
Procedure for Monitoring Programme
Uniform procedure across contracts
Primavera 2.0 or later Software
3 month rolling program every month
4 week rolling program every week
Every program to show how key dates being achieved
Primavera Project Plan
An important tool for developing and checking the integrity of Project Plan
But limited use for monitoring and interface at discussion level
Simple Gantt Charts were used for monitoring in addition to Primavera reports
122
123
SECTION - A1 ( V V STATION)
TYPESTART
DATESCOPE
FINISH
DATE
S.P. 17-Nov-01 2063 20-Jan-03744 m 1636 m
73872 m3
EXCAVATION(STN) 1-Mar-02 160000 28-Oct-02
R.R. @ m3/day
m3
EXCAVATION(S) 7-Jun-02 74789 3-Oct-02 62172 m3 @ m3/day
EXCAVATION(N) 10015 to 10350
10-Aug-02 103451 11-Mar-03
m2
DECKING 16-Apr-02 10,600 21-Jan-035692m2 R.R.@ 78 m2/day
33 nos.
11-May-02 78 6-Sep-02
BASE SLABC&C(S) 18-Jul-02 8600 31-Jan-032518m3 delay by 58 days
BASE SLAB VV STN 26-Jun-02 10000 5-Feb-033552m3 delay by 80 days
CD1B EAST 347.6m85m
V.V.STN
CD1A WEST 55.6m
Legend 304.2 m
S.P. : SHEET PILE EXCAVATION DECKING
PROGRESS UPTO DATE TARGETTED BORED PILES
BASE SLAB
R.R. REQUIRED RATE
130909m3
BORED PILES
4306
170
1035
0
1872
TEMPORARY RETAINING STRUCTURES
STATUS AS ON:
PROGRESS BAR
1323.6 m
3524
1070
0
1035
0
738721030
0
1020
0
1010
0
1064
0
124
Pictorial Presentation of Progress
Monitoring through Cost Center and Milestones
Cost Center bifurcation helped in distinct responsibility and monitoring of works of various disciplines in one composite contract
Every conceivable requirement in contract linked to at least one milestone with coding
– 4A.10A [Vishwa Vidyalaya Station (4A), Station Box external walls (10) 50% complete (A)]
Even Contractor’s monthly supervision (1.12 to 1.61), monthly site running (1.79 to 1.128), Quarterly Audit reports on Quality/Safety/Environment (1.62 to 1.78) had one milestone each
Every submission is linked to a milestone
The coding of milestone and the organizational structure ensures that the responsible person for each milestone is known
125
Milestone is the Focal Point
Network Programme is based on Milestone
Certification of completion of Milestone by GC enable payment
GC asks Production wing why certain Milestones that should have been completed in the month were not completed
Accounts wing computes the achievable milestones to get required cash flow and chases Production for completing
126
Milestone Focal Point…
GC asks Quality, Safety and Environment wings for closure of NCNs and blocks payment of respective milestones
Accounts chases theses wings for getting blocked Milestones cleared
Quality, Safety and Environment wings chases Production for compliances so that they close the NCNs to release the milestone payment
127
128
Assuring Cash Flow to Contractor
Weekly cash disbursal monitored by MD
80% payment within 3 days of submission of contractor prepared bills
Recovery of Advance suspended for certain period
Advances against ‘under consideration claims’
Milestones allowed to be split for faster cash flow
Motto: No Contractor should suffer for want of cash flow
129
Monitoring Strategy- DMRC/ GC
• Monitoring changes behavior:
– This rule used to channelize energy
• Separate measurement units for different departments of contractor- Dealt separately to keep them motivated
• Simple measurements to reflect overall progress-e.g. Volume of Earthwork, Volume of Concrete
130
Concrete Consumption
0
5000
10000
15000
20000
25000
1-Apr-02
1-May
-02
1-Ju
n-02
1-Ju
l-02
1-Aug
-02
1-Sep
-02
1-Oct-02
1-Nov
-02
1-Dec
-02
1-Ja
n-03
1-Fe
b-03
1-Mar-03
1-Apr-03
1-May
-03
1-Ju
n-03
1-Ju
l-03
1-Aug
-03
1-Sep
-03
1-Oct-03
1-Nov
-03
1-Dec
-03
1-Ja
n-04
1-Fe
b-04
1-Mar-04
Time Period
Co
nc
re
te Q
ty
0
50000
100000
150000
200000
250000
300000
Monthly Concrete Qty
Actual Monthly Qty
Cumulative Concrete Qty
Cumulative Concrete Qty
S-Curve for Concrete Pouring S- Curve for Milestone
Payment
Payment S-Curve
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Jun-
01
Aug
-01
Oct-0
1
Dec
-01
Feb-
02
Apr
-02
Jun-
02
Aug
-02
Oct-0
2
Dec
-02
Feb-
03
Apr
-03
Jun-
03
Aug
-03
Oct-0
3
Dec
-03
Feb-
04
Apr
-04
Jun-
04
Aug
-04
Oct-0
4
Dec
-04
Feb-
05
Apr
-05
Jun-
05
Millio
ns
Months
Cu
mu
lati
ve
IN
R. Eq
uiv
ale
nt
Cumm.
INR Equi.
Progress on S- Curves
131
MONTH EXCAVATIONCUMM. EXCAVATION
JULY,02 15570 57280
AUG,02 19420 72850
SEPT,02 15260 92270
OCT,02 18080 107530
NOV,02 22030 125610
DEC,02 27170 147640
JAN,03 30700 174810
FEB,03 20370 205510
MARCH,03 23080 225880
APRIL,03 36700 248960
MAY,03 22440 285660
JUN,03 24170 308100
JULY,03 10130 332270
AUG,03 13240 342400
EXACVATION PROGRESS
0
5000
10000
15000
20000
25000
30000
35000
40000
JU
LY
,02
AU
G,0
2
SE
PT
,02
OC
T,0
2
NO
V,0
2
DE
C,0
2
JA
N,0
3
FE
B,0
3
MA
RC
H,0
3
AP
RIL
,03
MA
Y,0
3
JU
N,0
3
JU
LY
,03
AU
G,0
3
MONTH
MO
NT
HL
Y E
XC
AV
AT
ION
0
50000
100000
150000
200000
250000
300000
350000
400000
CU
MM
UL
AT
IVE
EX
CA
VT
ION
EXCAVATION
CUMM. EXCAVATION
month
monthly
concrete cummulative
NOV,2 1550 1736
DEC,2 2084 3820
JAN,3 1291 5111
FEB,3 2240 7351
MAR,3 2180 9531
APR,3 1991 11522
MAY,3 4171 15693
JUN,3 5036 20729
JUL,3 5325 26054
AUG,3 5283 31337
SEPT,03 5634 36971
CONCRETING PROGRESS
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
5500
6000
NO
V,2
DE
C,2
JA
N,3
FE
B,3
MA
R,3
AP
R,3
MA
Y,3
JU
N,3
JU
L,3
AU
G,3
SE
PT
,03
MONTH
MO
NT
HL
YC
ON
CR
ET
ING
0
5000
10000
15000
20000
25000
30000
35000
40000
CU
MM
. C
ON
CR
ET
ING
MONTHLY CONCRETING
CUMM. CONCRETING
Trends of Progress in a Section
132
GC/ DMRC’s Hot and Cold Strategy
• Too harsh in the beginning, even at the cost of progress
• Cyclical harshness in the middle, correcting the course
• Lenient toward the end, pushing the progress and making contractor succeed
133
Recovering Delays
Visible implication of a day’s delay to the SPV
Visible implication of a day’s delay to each contractor
Above should be known to every engineer and worker on the project
134
Visible implication of a day’s delay
• To DMRC
– Each day that the project is delayed, the cost goes up by Rs.1.4cr. due to inflation and DMRC deprived of Rs. 89 lacs of net revenue.
– Each day saved will benefit the city to the extent of Rs. 4.5 cr. in terms of fuel saved & other social benefits.
• To MC1A Contractor
– 0.005% of contract price every day( Rs 5 lakh) if a key date is missed but refundable when subsequent key date is achieved
• Constant reminder: Project Clock ticking number of days left to commissioning
135
Buffer Management in Construction Projects
• Delays are rule rather than exceptions
• As soon as a contract is signed it starts slipping
• Key to success lies in Effective Buffer (Slippage) Management:
– Keep Buffer away from the Activity In-charge
– Link Buffer with Reserve Cash
– Slippages cause loss and Acceleration costs money
– Use Buffer Management for galvanizing/ re-energizing the organization
136
Key Dates and Buffers
Buffer
Critical Chain = L Buffer = L/2 Commissioning
KD 1 KD 2 KD 3
KD 4
KD 5 KD 6
A Typical Project Schedule
137
Key Dates for MC1A Contract
KeyDate
Description of Key Date
KD1
KD5
KD8A
KD8B
KD8C
KD9
KD10
KD11
KD12
Preliminary Design 14 Weeks
Definitive Design 39 Weeks
Hand Equipment Rooms to SYS01 & SYS02-113 Weeks
Hand Concourse to SYS04 –155 Weeks (70%), station complete
Handover Basic Structure to SYS 05-120 Week
Hand Track way to SYS 03 – 120 Weeks (54%), tunnel complete
Power on to Station/Tunnels – 186 Weeks
Handover for Integrated Testing-193 Weeks
Completion of Works – 218 Weeks
138
Tradeoff Between Quality and Time
• Initial Stringent norms were relaxed to assist the Contractor in mobilizing additional resources
• Construction methodology was allowed to be revised
• Additional smaller subcontractors and indigenous equipments were allowed
• Temporary works were allowed to be simplified on the experience gained allowing faster work with lesser material
• Non-conformances were closed with acceptable corrections
139
Tradeoff Between Cost and Time
• Taking up parallel works by abandoning phasing by mobilizing additional alternative materials
• Introducing Night Shift and allowing extra days of salary to all workers for meeting and exceeding targets
• Deploying additional Indian engineers in place of expats
As S curve became sharper, Project Leader forced to think new solutions to face DMRC/GC
Using Key Resources in Speeding
Senior Management monitored batching plant and concreting
Monthly, weekly and daily pour program were prepared
Rate of site preparation didn’t match with the concrete pouring capacity till towards the end of the Month
Last week of every month was concreting week till 6.00 AM in the morning of the 1st of next month
140
141
Assuring Cash Flow to Contractor
Weekly cash disbursal monitored by MD
80% payment within 3 days of submission of contractor prepared bills
Recovery of Advance suspended for certain period
Advances against ‘under consideration claims’
Milestones allowed to be split for faster cash flow
Motto: No Contractor should suffer for want of cash flow
Arranging Alternatives
Silent Sheet Pile driving equipment imported to avoid excessive vibration to sensitive buildings
Air lifting of equipments in case of delay in shipping
Alternative sources of aggregates when SC banned mining
Obtained Delhi police permission for controlled blasting to speed up rock excavation
142
143
Buffer Management by DMRC
• Buffer kept in testing and commissioning helped
• Confidence developed in Rail Corridor led to targeting reduction in time
• Contractors were given incentives for preponing key dates
• Partial opening of stations planned
• Phased handing over to system contractors agreed
Opportunity lies on the upper portion of ‘S’ curve
Open for Questions and Discussion
144
