PROJECT PLANNING/EARLY RISK MITIGATION/ALTERNATIVE DELIVERY

METHODS

Stephen Revay CCP, CFCC, FCSC, FAACE

AGENDA

INTRODUCTION

PROJECT PLANNING

RISK MITIGATION

ALTERNATE DELIVERY METHODS

INTRODUCTION

PROJECT PLANNING

Stage Gate

Complete Engineering (Most Common Cause)

Advanced Work Packaging (This afternoon)

PROJECT DEFINITION RATING INDEX (PDRI)

Construction Industry Institute

With – StageGate

RISK MANAGEMENT ELEMENTS

UNCERTAINTY AND RISK MANAGEMENT

IDENTIFICATION

QUALITATIVE AND QUANTITATIVE ANALYSIS

RESPONSE PLANNING

AVOID

MITIGATE

“TRANSFER”

ACCEPT

MONITORING AND CONTROL

REAL PROGRESS REPORTING

INTEGRITY IN THE SCHEDULES

CONTINGENCY MANAGEMENT

ONGOING RISK IDENTIFICATION

PROBABALISTIC SCHEDULES

CURRENT RISK REGISTER

NO MAGIC FORMULA

NO GUARANTEES

ALTERNATE DELIVERY METHODS

COLLABORATIVE CONTRACTING

CONTRACTING STRATEGIES

Alliances / Partnering

Design Build / EPC

Construction Management / EPCM

Public Private Partnership

Integrated Project Delivery

MUTUAL GOALS

ALLIANCES • Relationships Contractually

Defined • No blame culture • Internal handling of conflict • Buy in to cultural shift • Sharing risk & reward (GMP)

or • Sharing savings only • Reimbursable

PARTNERING • No Contractual Definition • Gentlemen’s Agreement • Project Charter • Needs ongoing maintenance • Often fixed price Contracts

DBB PROCESS

Complete Design

Bid Period

Bid Packages

Bid Review

Mobilize

Bids Close

Contract Award

Construction Start

A single point of responsibility for

both design and construction

DESIGN-BUILD

QUALITY

Design consultant working with Owner to achieve - design - functionality - life cycle cost

vs. Design consultant working with

Contractor to achieve budget

CONSTRUCTION MANAGEMENT

Owner

Consultant CM &

Contractor

CONSTRUCTION MANAGEMENT Owner

General Contractor Consultant

CM

Multiple Primes

OR

MODELS OF PUBLIC – PRIVATE PARTNERSHIPS

Operation & Maintenance (O & M) Build & Finance (during construction) Design / Build / Finance / Maintain (DBFM) Design / Build / Finance / Maintain/Operate

(DBFMO) Build / Own / Operate (BOO) Build / Own / Operate / Transfer (BOOT) now

called Concession

WHAT IS CCPPP?

Canadian Council for Public-Private Partnerships (PPP, triple P or P3)

Founded in 1992, the CCPPP is celebrating its 25th anniversary this year

CCPPP-DEFINITION FOR PPP

Relates to the provision of public services or public infrastructure; and

Necessitates the transfer of risk between partners.

“A cooperative venture between the public and private sectors, built on the expertise of each partner, that best meets clearly defined public needs through the appropriate allocation of resources, risks and rewards.”

INTEGRATED PROJECT DELIVERY

The Integrated Design Process (IDP) is based on the “whole building systems approach”. It brings together key stakeholders and design professionals, such as building owners, facility managers, developers, designers, engineers, consultants, and occupants, as a core team to work collaboratively and interactively from the early planning stages through to building occupation. Architecture Canada | Royal Architectural Institute of Canada website:

https://www.raic.org/practice/bim/ipd_e.htm

Integrated Project Delivery (IPD) is a project delivery approach that integrates people, systems, business structures and practices into a process that collaboratively harnesses 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.

AIA-Integrated Project Delivery A Guide 2007 http://www.aia.org/contractdocs/AIAS077630

INTEGRATED PROJECT DELIVERY

CURRENT INDUSTRY PRACTICE

INTEGRATED PROJECT COLLABORATION (IPC)

AIA - INTEGRATED PROJECT DELIVERY A GUIDE

Principles of Integrated Project Delivery Mutual respect and trust Mutual benefit and reward Collaborative Innovation and Decision Making Early Involvement of Key Participants Early Goal Definition Intensified Planning Open Communication Appropriate Technology Organization and Leadership

QUITE SIMILAR CONCEPTS Alliances

• Improving Collaboration • Popular in UK and Australia

• Primarily in Western Canada not recently

• BIM* is not suggested to be a key factor or driver

• Generally industrial projects

• No blame culture - sharing risk - contractually agree not to sue

Integrated Project Delivery • Improving Collaboration • Generally seen in the US

• Slowly becoming more common throughout Canada

• IPD is seen as the concept and BIM* as the tool

• Generally commercial projects

• Webinars and seminars dealing with legal issues and emerging risks primarily dealing with the tool

* Building Information Modelling