Audience Focus: Advanced
Application Type: Research
Time/Room: TUE 3:45-4:45/Wilson A
Abstract: Capital projects require specialized management, in order to address the cost overruns, delays, and failures with which such projects are associated. The need is greater than ever for careful oversight, especially for projects funded by multiple sources.
Researchers have introduced metrics (such as key performance indicators and critical success factors) for use in capital program evaluation. However, these have shortcomings, as the metrics must both reflect the uniqueness of each project and be adapted as the project progresses through its lifecycle. Audit is commonly a requirement on capital projects, yet current approaches to performance audit are variable, and no appropriate oversight, standards, or guidance exist.
This paper will explore elements of performance audit, and begin to address a real-world approach for capital projects. A flexible and portable methodology for appropriate capital program review could enable continuous improvement while addressing stakeholder expectations of audit. Further, the methodology may also be applied in non-construction industries such as information technology and manufacturing, and in endeavors such as major event planning. (PM-1203) Analytical Program Management: Integrating Cost, Schedule, and Risk
Primary Author: Mr Eric Druker Booz Allen Hamilton
Co-author(s): Graham Gilmer Booz Allen Hamilton
Audience Focus: Intermediate
Application Type: Application
Time/Room: TUE 8:00-9:00/Wilson A
Abstract: One of the greatest challenges in managing costs on programs is the lack of cost, schedule, and risk integration. Despite the interconnection of these disciplines, it is rare when cost estimates, schedules, and risk registers are fully integrated artifacts. Analytical Program Management (APM) is a methodology, pioneered on highly complex NASA programs, for completely integrating cost, schedule and risk. APM allows projects to immediately determine the cost impacts of schedule growth and vice versa. Additionally, since the cost estimate and risk register are integrated with the schedule, the secondary and tertiary effects are uncovered, improving the quality of the individual artifacts. This provides a far more complete view of critical risks affecting cost and schedule. Through the use of Monte Carlo simulation, the risk-adjusted cost estimate and schedule are generated allowing program managers to budget and plan using statistical confidence levels. This methodology identifies actions that program managers can take, either by accelerating tasks, mitigating risks, or removing scope, to ensure their program fits within a constrained budget and schedule. (PM-1216) Practical Corporate Investment Decision-Making Guide
Primary Author: Mr James D Whiteside II PE ConocoPhillips
Audience Focus: Intermediate
Application Type: Application
Time/Room: TUE 11:00-12:00/Wilson A
Abstract: This topic is designed to assist the project management professional on how to relate insights gained from economic analysis to investment making requirements and information to company executives. Most companies have economists and cost engineers that provide thorough economic analysis on potential investment opportunities. Oftern, however, project professionals have difficulty with succintly communicating to executives who may not have enough time to invest in the volume of analytical material that project economists typically produce to defend the project payout. Company executives are immersed in company strategy and are searching for projects to meet the company strategy. Economics and investment strategy are two related but different subjects.
Therefore, project personnel need to describe their projects to meet the key features that the company executive requires to render a decision to meet corporate strategy. This paper identifies the key concepts and details necessary to translate project economics into a few basic parameters to assist executives in investment decision making. The paper is written to provide the structure required for a project assessment document (PAD) with explanation and examples of the technical requirements for each section. (PM-1219) Project Delivery Methods of the Future, Cloud Computing, and BIM Primary Author: Mr Peter N. Cholakis 4Clicks Solutions, LLC
Co-author(s): Mr Nicholas Cholakis 4Clicks Solutions, LLC
Audience Focus: Intermediate
Application Type: Application
Time/Room: TUE 2:00-3:00/Wilson A
Abstract: The authors suggest that cultural, technological and supply chain barriers endemic to the AECOO (Architecture, Engineering, Construction, Owner, Operations) sector create inefficiency and waste. As a result facility managers continue to struggle with cost effective life-cycle management of the built environment. “The only truly effective way of delivering great buildings that delight end users, on time and to budget, is to achieve excellence at both a business and project level through collaboration” [1].
Various market drivers are weakening these barriers, including 1.) worldwide changes in the economic and environmental landscapes, 2.) the advent of disruptive technologies specifically BIM and Cloud Computing, and 3.) the associated application and integration of transparent and collaborative project delivery methods [2].
Studies suggest that construction industry productivity/efficiency issues have their root in the fragmentation of design, engineering, and construction, a process that was seeded in the Renaissance [3]. Specialization of AECOO professions, dissimilar educational paths for design professionals vs. construction professionals, and adversarial business models contribute to cultural divide, have resulted in unintended divergent interests which does not serve the owners interests. (PM-1229) Using Complexity Footprints to Manage Complexity in Construction Projects Primary Author: Mr Isaac Annis Colorado State University
Co-author(s): Dr Kelly Strong Colorado State University; Dr Carla Lopez del Puerto CCC Colorado State University; Dr Rebecca Atadero Colorado State University
Audience Focus: Intermediate
Application Type: Research
Time/Room: TUE 9:45-10:45/Wilson A
Abstract: In order to manage complexity in construction projects, construction engineers need a framework for measuring, visualizing, and tracking complexity, much like they do for scope and schedule. An innovative method to quantify complexity in construction projects is to rank five dimensions of project management (cost, schedule, technical, finance and context) in order of complexity and assign a numerical value on a scale of 0 to 100 points against a standard of 50 points for a routine project. Thus, index numbers greater than 50 indicate that the rated factor was more complex than normal. The results are then graphed in the form of a radar diagram that ultimately displays the “complexity footprint” for a project. The process of developing a complexity footprint is best explained through a case study example. This paper presents the steps and thought process used to determine the complexity footprint of the I-75 and I-94 highway rehabilitation and expansion projects in the metropolitan Detroit area of Michigan. (PM-1272) The Status of the Relationship Between General Contractors and Subcontractors
Primary Author: Dr Ali A. Shash King Fahd University of Petroleum and Minerals
Audience Focus: Intermediate
Application Type: Research
Time/Room: WED 11:00:12:00/Wilson A
Abstract: The development of a construction project is usually a collective effort of many parties depending on the delivery system utilized. This study encompasses the correlation of the General Contractor and the Subcontractors involved in the development of a project through utilization of subcontracts. Two different set of questionnaires were sent to General Contractors and Subcontractors who are involved in projects for the Royal Commission of Saudi Arabia. The aim of the questionnaires was to collect information relevant to many aspects of the relationship, starting from the decision to invite subcontractors till the completion of the project. Also, the questionnaire collected information related to various challenges and opportunities of the relationships between the two parties. Through this methodology, it was possible to evaluate the processes and uncover many problems surrounding the relationships between the two parties. The results of this study are expected to benefit both parties by improving their relationships and eliminating or at least mitigating the factors affecting their relationship negatively. (PM-1319) How to Maximize the Value of Virtual Teams
Primary Author: Mr Joseph A. Lukas PE CCE PMCentersUSA
Abstract: A virtual project team is a group of individuals geographically dispersed who work across space and organizational boundaries to complete projects. This topic will discuss the many reasons more projects in today’s business environment are using virtual teams, along with the benefits that can be obtained by use of virtual teams.
The top ten barriers that can impede the success of virtual teams will be explained, along with strategies for removing these barriers. Project success is possible with a virtual team provided the building blocks for success are properly done. The five keys to success when working with virtual teams will be reviewed spanning from getting started to managing the virtual team. An effective tool called the project e-communications plan will be explained, along with available communication technologies that can be used. This topic will help make your virtual team and project a success. (PM-1417) Better Utilizing Value Engineering in Project Delivery
Primary Author: Mr Michael D. Dell'Isola PE Faithful+Gould
Abstract: Value engineering (VE) has tremendous potential to improve the delivery of projects but its use or misuse over the past 50 years has tended to create a negative environment and skepticism. The application of VE needs to adapt and expand to better address today’s projects that often have conflicting issues of cost, sustainability, technology, schedule, risk, collaboration and multiple delivery methods.
This paper will address how to better integrate VE into the project delivery process during planning and design and deliver improved overall value to owners. Key aspects include:
Achieving better collaboration in a VE setting
Effectively utilizing life cycle costing
Using risk management to improve VE functionality
Avoiding the pitfalls of overly simplistic VE approaches
How non-economic issues can be better reflected in VE
How to efficiently integrate VE into the design process
VE also has applications in the construction phase and to business processes associated with the management of overall design/construction delivery process. This paper will focus on the planning and design portion of the delivery process. (PM-1432) Modelling Productivity Loss Using System Dynamics to Understand Cumulative Impact
Primary Author: Dr Stephen P Warhoe PE CCE CFCC SP Warhoe LLC
Abstract: Identifying the cause and effect dynamics that result in productivity loss when scope changes are introduced on construction projects has been a topic of discussion for several years. In recent years the issue of productivity disruption resulting in the phenomenon known as cumulative impact continues to remain prevalent because of the difficulty for contractors to identify, quantify and show causation for impacts and damages.
A project is a system requiring fully functioning processes and procedures, tools and resources, and when any of these aspects are not working efficiently, resulting especially from many unanticipated changes, a cascade of problems can occur. When changes are introduced during a construction project using the design-bid-build delivery method (DBB), cumulatively, these changes can dramatically affect project performance.
Using system dynamic modelling, it is theorized that a construction contractor’s ultimate productivity impacts can be calculated by simulating the primary causal influences and the resulting feedback loops.
Identifying and quantifying the cause and effect relationships between changes in order to mitigate or avoid their impact is vitally important to the construction industry.
Primary Author: Dr Alexia A Nalewaik CCE QS Requin Corporation
Primary Author: Mr Peter N. Cholakis 4Clicks Solutions, LLC
