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