 Below
are the abstracts for the technical presentations scheduled for this years
meeting.
(Subject to change. )
ADVERSE CONDITIONS (ADV)
(ADV.02) Complex Urgency: Recovering from Katrina and Wilma
Primary Author: Dr Randy R. Rapp PE CCE AACE International
Co-author(s):
Audience Skill Level: Intermediate 
Presentation Length: 1 Hour(s)
Time/Location: MON 11:10-12:20/Conference Room F
Abstract:
Construction industry firms or other organizations that wish to most effectively
contribute to recovery from extensive hurricane damage must pre-plan their efforts.
Disaster recovery work can require quicker and more comprehensive response to changing
demands, especially at the startup, than many construction managers are conditioned to
provide for conventional projects. Recovery planning for widespread hurricane damage to
existing military buildings and grounds can be task-organized into four primary activity
types: debris removal, power restoration, resealing the building envelope, and remediating
building interiors. Complications arise when trying to quickly acquire extensive repair
resources, after a region has been struck by rapidly successive major natural disasters.
Procurement, materials management, and logistics evolve into relatively greater concerns
for managers. Appropriate contracts and reliable supervisory communications establish
essential operational conditions. In quick-changing situations, rapid implementation of
effective project controls is critical, or costs might escape containment due to the high
burn rate.
(ADV.S01) Damage Control: Covering Your Assets
Primary Author: Mr. Thomas C. Hoffman Deloitte
Co-author(s): Mr. Nathan Florio Deloitte; Mr. Steven Gottlieb Deloitte;
Audience Skill Level: Basic 
Presentation Length: 1 Hour(s)
Time/Location: MON 10:00-11:00/Conference Room F
Abstract:
9/11, Hurricane Katrina, and other recent events provided valuable lessons
regarding the process of obtaining adequate insurance coverage and the need to
properly estimate insurable values for real property assets. But has the real
estate industry been paying attention?
Unfortunately, many commercial
real estate owners, operators, investors, developers, and even lenders, have
not. While all firms have taken notice of these and other large-scale events,
many companies are still vastly underinsuring their most valuable assets, even
after Ground Zero and Katrina have become household names and each days news
brings another story of turbulent weather and terrorism threats.
Sharp
increases in construction material and labor costs, the growing number of
transactions, escalating property values, and an incomplete understanding or
misuse of different premises of value as a basis in establishing insurable value
estimates have all conspired to place real estate assets at risk for the next
catastrophic event.
BUILDING INFORMATION MODELING (BIM)
(BIM.01) Scheduling, Estimating, and BIM: A Profitable Combination
Primary Author: Ms Tamera Lee McCuen University of Oklahoma
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: MON 1:50-2:50/Conference Room F
Abstract:
It may be difficult to realize the true spirit of a Building Information Modeling (BIM)
system when a design team creates a model independent of the 4D (Schedule) and 5D
(Estimating) know-how of industry professionals. Project scheduling and cost estimating
are essential components in the pre-construction process and should be included in an
advanced BIM system to facilitate informed decisions with regards to time and costs and
the impact of each on a projects bottom line. Adding 4D and 5D to a BIM project creates an
environment that enhances profitability. This paper presents a case study in which the
scheduling and cost functions added value in the model development. It concludes with a
method for 4D and 5D integration so to optimize the benefits of BIM for both the project
team and project owner.
(BIM.02) CAD Automation - Establishing Best Practices
Primary Author: Mr. Peter R Bredehoeft JR CH2M Hill Inc
Co-author(s): Mr. Rob Brawn CH2M Hill
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 3:25-4:25/Conference Room F
Abstract:
The tools and technology are embedded in our daily work practices. The linkage between CAD
and Estimating has been established. The challenge is not the connection to the tools
anymore, but rather establishing the processes and best practices and leveraging the human
element, processes, and procedures. We use the tools every day, but it is amazing we don't
take advantage of the power of the tools in the engineering and construction we perform
each day.
This paper focuses on establishing the CAD and Estimating Best Practices from a process
standpoint. The paper will provide a high level architectural viewpoint of the integration
between CAD and Estimating at an enterprise level and from an EPC perspective. The paper
will outline basic concepts, procedures, methods, techniques and best practices from both
an estimating perspective and from a CAD Automation perspective.
The human element and the cultural aspects will be discussed in the paper, as well as the
technical aspects of the proper ways of data entry to maximize the beneficial use of the
tools. Visualization tools will be discussed from a perspective of how these tools can
benefit the cost estimator and design teams. An overview of the various industry standards
around CAD Objects and XML Technology will be discussed.
The development of the National BIB Standards will be discuss in regards to how it relates
to Cost Estimating, Cost Engineering and Project Controls in General.
The paper will serve as a road map of procedures and processes that will help an
organization establish best practices focused on adding value to the design teams and cost
estimating teams.
(BIM.03) Leveraging the Power of 4D Models for Analyzing and Presenting CPM Schedule Delay
Analyses
Primary Author: Mr. Kevin T. Coyne PE PSP Exponent
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 4:35-5:35/Conference Room F
Abstract:
This paper explores the use of 4D models, which provide a virtual construction simulation
by linking a 3D model and project schedule, in support of CPM schedule delay analyses.
Traditional delay analysis methodologies rely on bar charts or similar graphics for
analyzing and conveying the results of complex schedule analyses. This paper supports the
fact that the use of 4D models allows scheduling and claims personnel to perform and
present more efficient and effective CPM schedule delay analyses during construction,
dispute resolution, arbitration, or litigation. The author shares findings from actual and
theoretical case studies that utilized 4D models to visually analyze and present
as-planned versus as-built and un-impacted versus impacted CPM schedule delay analyses.
The paper also discusses the benefits and shortcomings of the use of 4D models,
admissibility of 4D models in court, and additional topics for research.
(BIM.04) Building Information Modeling (BIM) in Construction: Benefits, Risks and
Challenges
Primary Author: Dr Salman Azhar Auburn University
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: WED 1:00-1:25/Essex Ballroom
Abstract:
Building Information Modeling (BIM) has recently attained widespread attention in the
Architectural, Engineering and Construction (AEC) industry. BIM helps architects,
engineers and constructors to visualize what is to be built in simulated environment and
to identify any potential design, construction or operational issues. The technology to
implement BIM is readily available and rapidly maturing. Yet its adoption in the
construction industry is much slower than anticipated. There are two reasons. First, the
current transactional construction process models have data incompatibilities which
hurdles the exchange and integration of meaningful information among different BIM
components (i.e. technical issues). Second, there is no clear consensus in the AEC
industry as how to implement or use BIM and who (i.e., owner, designer or constructor)
should develop, own and operate these models (i.e. management issues). This paper, via
questionnaire survey and interviews, investigates these issues and evaluates the BIM
implementation benefits, risks and challenges. It is expected that this study will be
helpful for general contractors who are planning to implement BIM in their future
projects.
(BIM.05) The Construction of Project Cost Information Management System in China Electric
Power Industry
Primary Author: Ms Huiping Zhu China Engineering Cost Assoc CHINA
Co-author(s):
Audience Skill Level: Basic
Presentation Length:
Time/Location: CANCELED
Abstract:
This paper presents a theoretical and practical research on the construction of project
cost information management system (PCIMS) by briefly introducing current status of
project cost management in China electric power industry, discusses the importance and
benefits of the PCIMS to project cost management in China electric power industry, and
mainly describes the key process of information management system such as the information
collecting, analysis method and application.
CLAIMS AND DISPUTE
RESOLUTION (CDR)
(CDR.01) (Panel Discussion) The Claims Business Practice Forum
Primary Author: Mr. Kenji P. Hoshino PSP CFCC Project Controls & Forensics
Co-author(s): Mr Steve Revay CCC CFCC Revay and Associates Limited; Mr. John C. Livengood PSP CFCC Warner Consultants; Mr James G Zack JR CFCC Fluor Corporation; Dr Anamaria I Popescu PE CPM Consulting Inc
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 10:00-11:00/Conference Room B
Abstract:
A panel presentation of the business aspect of the claim consulting business comparing and
contrasting business models and practices of five different businesses represented by the
following panel members:
Frank Giunta, Hill International
Sr. Vice President Claims Group North American Operations
Representing the Publicly Held Large Firm Model
John Livengood, PSP, Warner Construction Consultants
Senior Vice President
Representing the Privately Held Mid-Size Firm Model
Jim Zack, CFCC, Fluor Corporation
Senior Vice President Claims Group
Representing the Captive In-House Service Model
Kenji P. Hoshino, PSP, CFCC, Project Controls & Forensics, LLC
Principal Member (MODERATOR)
Representing the Distributed Small Firm Model
Anamaria Popescu, PhD, CPM Consulting, Inc.
President
Representing the Emerging Solo Operation Model
Topics include dealing with professional resource constraints, marketing for services,
conflict of interest concerns, biggest short-term problems, long-range strategy, advice to
prospective clients, challenge to the industry for ethical business practices, and the
inevitable war story or two.
(CDR.02) Using the Contemporaneous Period Analysis During Projects
Primary Author: Mr. Mark F. Nagata PSP Trauner Consulting Svcs Inc
Co-author(s): Mr Brian Furniss Trauner Consulting Services
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 11:10-12:20/Conference Room B
Abstract:
The Contemporaneous Period Analysis (CPA), MIP 3.4 in the AACE RP/FSA, has been
pigeon-holed as an analysis technique for identifying and measuring project delay after
the project is complete or during the preparation or evaluation of a claim. However, the
CPA can be and has been used in real time on active projects to assist the parties in
deciding on the appropriate course of action to mitigate delays, settle claims, and track
progress on the critical path while the project is on-going. Typically, on active
projects, the participants have to act quickly to address time-related issues, such as
time extension requests and directed acceleration. This paper will discuss how the CPA has
been used successfully on different projects to help the project participants quickly
identify critical project delays and decide on mitigation efforts and to resolve time
extension requests and claims that arise during the project, using the contemporaneous
project schedules.
(CDR.03) Put Some Punch in Your Pen
Primary Author: Mr. Jeffery L. Ottesen PE PSP CFCC Alta Cascade Inc
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 1:50-2:50/Conference Room B
Abstract:
You may be a great orator, but often written words carry and win a case. In dispute
resolution, communicating clearly in writing can be difficult when presenting complex
arguments. Many factors contribute to this challenge including competency level of the
target audience, overlapping issues and interrelationships between various systems, trades
and people. This paper teaches how to simplify complex arguments by first introducing the
basics of logic and logical reasoning. Next a complex argument is broken down into
fundamental elements of facts and assumptions. Finally, the argument is logically
reassembled, strengthened and integrated into the final written work product. Whether on
the affirmative or defense, the tools given here will help authors add clarity to their
written works.
(CDR.04) Risk Review of Recovery Schedules
Primary Author: Mr John J Ciccarelli PE CCE PSP Deloitte
Co-author(s): Mr Matthew Murch Deloitte FAS
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 3:25-4:25/Conference Room B
Abstract:
When construction projects experience delay and disruption and deviate from the original
baseline plan, owners and contractors typically develop a recovery schedule to re-baseline
the project. How realistic is the recovery schedule? Is the recovery schedule a reasonable
plan or was it forced to achieve a pre-determined completion date? The ultimate issue is
determining the probability that the recovery schedule will be met, especially considering
past performance on the project. This paper will explore methods for using current Monte
Carlo based risk analysis techniques to review recovery schedules and will discuss methods
for incorporating past performance on the project (including scope growth and
productivity) as risk to demonstrate the reasonableness of achieving the re-baselined
planned completion date. The paper will also discuss the importance of re-baselining
direct and indirect costs to reflect changes and the adjusted risks.
(CDR.05) The Measured Mile - A Better Way Of Utilizing An Old Tool
Primary Author: Mr Glen R Palmer PSP GR Palmer Consulting Services
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 4:35-5:35/Conference Room B
Abstract:
The Measured Mile is traditionally thought of as the best approach for analyzing and
quantifying productivity disruptions in the construction industry. Most productivity
experts agree that the major issue regarding this methodology is the assurance that the
work analyzed in both the baseline and impacted periods are comparable. In other words, it
would be unrealistic to compare the productivity of underground pipe work versus that of
above ground pipe work, utilizing a unit rate comparison. This work is executed
differently, utilizes different material types and would yield false results if analyzed
using unit rates.
This paper will discuss an approach that would allow this work to be compared. By
analyzing the effort required to complete one percent of the total piping work effort or
the manhours expended to complete one percent of pipe work, it is possible to compare
these very different work efforts on an even and comparable basis.
(CDR.06) (Panel Discussion) The Great Debate: Concurrency vs. Pacing - Slaying the
Two-Headed Dragon
Primary Author: Mr. John C. Livengood PSP CFCC Warner Consultants
Co-author(s): Mr. Thomas F. Peters PE CFCC PinnacleOne; Mr. Kenji P. Hoshino PSP CFCC Project Controls & Forensics
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 8:00-9:00/Conference Room B
Abstract:
The Great Debate is upon us! This fall voters in the U.S. will choose a new leader, and
while they argue about foreign policy, tax cuts, and the environment, the scheduling
experts in the delay-claim world have more pressing issues. One of these is the two-headed
dragon of concurrent delay and pacing. The panelists, in an election-year moderated debate
format, will argue questions such as: What are the elements of concurrency? What is the
level of proof to establish pacing? Do concurrent delays have to start on the same day?
Does the party have to know it is pacing when the delay occurs? Does the measurement
period matter? Is there any way to distinguish pacing from concurrent or controlling
delay? Is pacing just a hind-sight excuse for failure to complete on time? Is concurrency
even relevant in the context of a Longest Path contract? Witness the battle! Challenge the
combatants!
(CDR.07) Causation - How is it Proved?
Primary Author: Mr. James E Krebs PE CCE Administrative Controls Mgt
Co-author(s): Mr Michael J Reynolds Barris Sott Denn & Driker
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 9:40-10:40/Conference Room B
Abstract:
The three steps necessary to perfect a claim are duty, causation, and damage. The most
difficult of these elements to prove is causation, yet this topic is not well represented
in the literature. A search on the word Delay in the AACEI archives of 4,100 technical
papers yields 220 papers. The same simple search on the word Causation yields 7
selections, with only one paper directly discussing causation.
This paper begins with an overview of causation, including recent legal rulings. The paper
then discusses proving causation in delay, lost productivity, cumulative impact, and
disruption claims. Each of the four topics will include the legal perspective and
examples.
(CDR.08) Single-Line Critical Path Shift Analysis
Primary Author: Mr. Gordon R. Costa PSP CFCC URS Corporation
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 10:50-11:50/Conference Room B
Abstract:
The critical path of a project can shift as a job progresses. Understanding and
communicating the details of such a shift can be confusing. The graphic method described
in the paper can help analyze and communicate the details of a critical path shift.
The single-line method can be used to illustrate or analyze delays and critical path
shifts in many situations. The examples in the paper will compare two consecutive monthly
updates. I have found the method to be particularly useful for illustrating critical path
shifts between monthly updates in contemporaneous-period CPM analyses.
(CDR.09) A Synthesis of Forensic Schedule Analysis Techniques
Primary Author: Mr J Scott Lowe Trauner Consulting Services
Co-author(s): Mr. Mark F. Nagata PSP Trauner Consulting Svcs Inc
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 1:30-2:30/Conference Room B
Abstract:
AACEs Recommended Practice for Forensic Schedule Analysis (RP/FSA) identifies and
describes techniques for analyzing schedules as discreet methods. While a wise strategy
for the RP, in practice analysts often use more than one technique to analyze schedules
depending on the timing (prospective or retrospective), the schedules, the contract, and
the practices established on the project. This paper will set forth guidelines for the
implementation of a schedule analysis system that is a hybrid of MIP 3.4 (CPA) and MIP
3.6/3.7 (TIA). This paper will include a discussion of basic goals and objectives,
definitions, a description of the specific analytical techniques, and rules for
application, including sample contract language. While the individual techniques for
analyzing schedules to be discussed in the paper are well established, the innovation is
the synthesis of these accepted techniques and practices into a single, coherent system
for analyzing schedules and determining delays on a construction project.
(CDR.10) The Eichleay Formula - Is Standby the Standard?
Primary Author: Mr Robert A Dieterle CCE Hill International Inc
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 3:10-4:10/Conference Room B
Abstract:
The Eichleay formula is probably one of the most often used formulas to calculate damages
in a construction delay claim. The Eichleay formula (from a case dating back to the early
1960s) computes a daily rate of unabsorbed home office overhead which is applied to the
number of calendar days of compensable delay. The underlying data for the formula is
derived from a Contractors corporate financial statements.
In spite of its widespread use (and sometimes mis-use), the Eichleay formula is probably
still one of the most controversial aspects of damages associated with a construction
dispute. It is also probably one of the most misunderstood areas of damages evaluation in
delay situations.
Through the last ten to twenty years there have been several landmark cases, mostly in the
federal jurisdiction, which have established that certain conditions be met before the
Eichleay formula is accepted. Most prominent of these conditions is that the project must
be in a stand-by mode, i.e. the performance period of the project is suspended rather than
simply stretched out due to a variety of causes. This paper will provide a brief history
of the Eichleay formula and describe the current conditions established by the courts that
must be met before acceptance of the formula as an element of damages. The paper will
examine and discuss how standby situations affect a contractor on a project and whether,
if there is no standby encountered on a project that is delayed, the use of the formula to
compute claims for home office overhead is compromised or rejected.
(CDR.11) Forensic Schedule Analysis: Example Implementation
Primary Author: Mr. Mark C. Sanders PE CCE PSP Alpha3 Consulting LLC
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 4:20-5:20/Conference Room B
Abstract:
AACE International’s 2007 publication of Recommended Practice 29R-03 represents the
first concerted effort by a group of experts to catalog, define, and detail the various
forensic schedule analysis techniques. Debate may linger as to whether forensic schedule
analysis is more art or science, but there is no debate as to whether the analysis must be
based on sound reasoning and accepted techniques in order to carry any weight with a trier
of fact. Even outside the legal realm, the techniques applied in engineering and technical
fields should and must be governed by accepted standards, and those standards must be
published so that analyses can be evaluated and a consistent set of practices can be
developed across an industry. This paper presents two example implementations developed
according to the recommendations of RP29-03, based on MIPs 3.3 and 3.7. The results of the
two analyses are compared, and issues encountered in applying RP29R-03 are discussed.
(CDR.12) (Panel Discussion) Mock Arbitration of a Regional Light Rail Construction Dispute
Primary Author: Mr. Bryan Payne PE CCE CFCC Carter & Burgess
Co-author(s): Mr Ghulam Mujtaba Shaikh Carter & Burgess Inc; Mr James B French Navigant Consulting Inc; Mr W John Irwin II CFCC W John Irwin II PE
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 8:00-9:00/Conference Room B
Abstract:
This mock arbitration will explore examples of common issues that have become claims on
real-world projects. Issues including the interpretation of an escalation clause,
cumulative impact, defective design, and the interpretation of performance specifications
in a hybrid delivery system will be presented to an arbitration panel. Input from the
audience will assist the arbitration panel in reaching a decision at the end of the
session.
By exploring real-world examples as well as surveying the general legal principles
governing them, this mock arbitration will be useful to owners, contractors, construction
managers, and counsel.
(CDR.13) Primavera Project Management Software and the Claims Consultant
Primary Author: Ms Anne Marie Tombros Exponent
Co-author(s): Mr Sunu Mohan PSP EVP Exponent Inc
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 10:50-11:50/Conference Room B
Abstract:
Primavera has launched Versions 5.0 (P5) and 6.0 (P6) of its scheduling software in the
past couple of years that are drastically different from the popular software Primavera
3.0 (P3). The introduction of these new versions, along with Primavera's plans to phase
out P3, poses unique challenges to the Claims Consultant. This paper discusses some of the
issues involved in analyzing P5 and P6 schedules, mainly due to the enterprise features
and multiple scheduling options. Critical issues surrounding the conversion of P5 and P6
schedules to P3 are presented and a checklist is provided to ensure the integrity of the
schedules.
(CDR.14) Delay Analysis Considering Dynamic Resource Allocation and Multiple Baselines
Primary Author: Dr Tarek M Hegazy P ENG University Of Waterloo CANADA
Co-author(s): Mr. Wail Menesi University of Waterloo CANADA
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 9:40-10:40/Conference Room B
Abstract:
Windows delay analysis has been recognized as one of the most credible techniques for
analyzing construction delays. To overcome some of the drawbacks of windows delay
analysis, this paper introduces improvements to a computerized schedule analysis model so
that it produces accurate and repeatable delay analysis results. The model considers
multiple baseline updates along project evolution due to changes in the activities
durations and/or the logical relationships among them. Furthermore, the model considers
the impact of resource allocation in delay analysis. It recognizes any resource
over-allocation due to delays and apportions the responsibility for the additional delays
that are caused by resource rescheduling. To facilitate accurate analysis, the model uses
a daily window size to consider all fluctuations in critical path(s) and uses a legible
representation of progress information. A simple case study has been implemented to
demonstrate the accuracy and usefulness of the proposed delay analysis model.
(CDR.15) The Use of Forensic Animations in Resolving Complex Disruption Claims - A Case Study
Primary Author: Mr Keith Pickavance Hill International CHINA
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: CANCELED
Abstract:
The use of electronically produced evidence is a relatively new development in dispute
resolution. Little case law is available to support its admissibility, but recent US
developments and the Bloody Sunday enquiry in the UK have helped to provide a background
into how and when electronically produced exhibits may be admitted as evidence.
The aim of using advanced computer animation is to help in the interpretation,
communication and understanding of complex factual scenarios.
The animations can be compiled into auto-run or interactive stand alone presentations,
integrated into PowerPoint presentations and high-resolution still images can also be
exported to enhance the visual contents of reports.
This paper will explore what can be achieved by the use of 3D and 4D animations in the
proof of causation in complex delay and disruption claims.
(CDR.16) Use of Relational Databases in Forensic Delay Analysis
Primary Author: Mr. Faik Burak Evrenosoglu CCE PSP Fluor Corporation
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 2:10-3:10/Conference Room B
Abstract:
An accurate and comprehensive delay analysis is vital for apportioning the delays and
assigning damage costs to the responsible party. The author of this paper believes that
the use of relational databases would allow the delay analyst to reduce the analysis
duration and improve the quality and the accuracy.
A sample delay database application is provided to demonstrate the advantages of using
relational databases. The delay database functionalities are:
- Determining the probable as-built critical and near-critical paths efficiently.
- Relating the contemporaneous project documentation with the probable as-built critical
path activities
- Developing and maintaining the project staff interview questions, fact finding efforts
and logging their resolution
- Recording and presenting actual performance data in an easily searchable and presentable
format by activity or activity sequence.
The delay databases will centralize the data gathering, querying process and improve the
accuracy and the quality of the delay analysis.
(CDR.S02) Resolution Now: The Key to
Contemporaneous Dispute Resolution Starts with Impact Classification
Primary Author: Mr. Brian A. Henschel, PE Virginia Department of Transportation
Co-author(s): Dr. John C. Hildreth University of North Carolina at Charlotte
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: CANCELED
Abstract:
Failure to promptly resolve project impacts results in disputes that quickly escalate in cost and duration and distract the project team from its chief purpose. A critical role of the cost engineer is to quickly harness such disputes with an equitable, contemporaneous resolution that prevents impact creep. The first key step of dispute resolution is developing a detailed impact identification, which includes defining the type of impact, the cause of the impact, and the entitlement classification of each impact. Based on dispute resolution research, a new process is presented for guiding disputing parties to a full and mutually agreed upon impact identification, the primary step in the effort to obtain formal resolution. This process, supported by the experience of the authors and currently in application testing, provides the basis for then quantifying and apportioning discrete impacts on the project schedule, using various previously developed, industry-supported impact analysis techniques.
(CDR.S03) Retrospective or Prospective Delay Analysis in My REA - Should I Be Concerned About It?
Primary Author: Ms. Maria Petrov CFCC Nielsen-Wurster Group Inc.
Co-author(s): Mr. Carlos Manuel Vara PSP Nielsen-Wurster Group Inc.
Audience Skill Level: Intermediate
Presentation Length: 1.0 Hour(s)
Time/Location: WED 2:10-3:10/Conference Room F
Abstract:
As a result of the dramatic increase in delay-related claims and
disputes, contractors are finding themselves in the position of
performing schedule delay analysis in order to justify the entitlement
to an extension of time and additional costs. While there is no standard
methodology for analyzing delays, organizations like AACE are trying to
develop best practices for quantifying delays. This paper will explain
the concepts of prospective and retrospective delay analysis in the
context of REA preparation. Choosing a delay methodology must be
intrinsically related to the type of analysis required (retrospective or
prospective). By presenting examples from three infrastructure projects
the paper will illustrate that both, prospective and retrospective
analysis can be used but the methodology must be clearly identified and
followed for a successful resolving potential delay issues. The paper
will show that reliable and reasonable forecasting and measuring of
delays are beneficial to the Project.
(CDR.S06) Errors and Omissions Damage Claims
Primary Author: Mr. Joseph W. Wallwork PE CCE PSP CFCC Strategy, LLC
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 1:00-2:000/Conference Room B
Abstract:
Claims for Errors and Omissions on the part of the design professionals are a significant part of the overall construction disputes arena. A dispute between the owner and the contractor may lead to a claim against the designer. That claim may be made by the Owner, the contractor, or both. Claims against the Designer can also be brought by the owner when there are alleged issues of constructability and design to budget requirements even before the construction work has begun. This paper will address the circumstances under which errors and omissions claims occur, the determination of the damages incurred by the contractor, the determination of damages to the owner, the issue of standard of care, and the responsibilities of each party.
TECHNICAL COMMITTEE
AND SIG MEETINGS (COM)
(COM.01)(Presentation) Technical Board Overview
Primary Author: Mr Larry R Dysert CCC Conquest Consulting Group
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 10:00-11:00/Conference Room G
Abstract:
(COM.02) Claims and Dispute Resolution Committee Meeting (1)
Primary Author: Mr. John C. Livengood PSP CFCC Warner Consultants
Co-author(s): Mr. Thomas F. Peters PE CFCC PinnacleOne
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 5:45-6:45/Conference Room B
Abstract:
(COM.03) Cost Engineering Committee Meeting
Primary Author: Mr. John K. Hollmann PE CCE Validation Estimating, LLC
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 5:30-6:30/Essex Ballroom
Abstract:
(COM.04) Construction SIG Meeting
Primary Author: Ms. Carla Lopez del Puerto CCC Southern Illinois University
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 5:45-6:45/Conference Room D & E
Abstract:
(COM.05) Project and Cost Control Committee Meeting
Primary Author: Mr. Stephen M. Jacobson CCC Hilton Hotels Corporation
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 5:45-6:45/Conference Room G
Abstract:
(COM.06) Building Information Modelling Committee
Primary Author: Mr. Philip D. Larson CCE PSP Project Cost & Control
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 5:45-6:45/Conference Room F
Abstract:
(COM.07) Decision and Risk Management Committee Meeting
Primary Author: Mr. Michael W Curran Decision Sciences Corp
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 5:45-6:45/Windsor West
Abstract:
(COM.08) Claims and Dispute Resolution Committee Meeting (2)
Primary Author: Mr. John C. Livengood PSP CFCC Warner Consultants
Co-author(s): Mr. Thomas F. Peters PE CFCC PinnacleOne
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 5:30-6:30/Conference Room B
Abstract:
(COM.09) Cost Estimating Committee Meeting
Primary Author: Mr Bernard A Pietlock CCC DuPont
Co-author(s): Mr Douglas W Leo CCC Censeo Project Solutions
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 5:30-6:30/Conference Room D & E
Abstract:
(COM.10) Economic & Financial Analysis Committee Meeting
Primary Author: Dr Robert C Creese PE CCE West Virginia University
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: TUE 6:05-6:30/Conference Room G
Abstract:
(COM.11) Earned Value Management Committee Meeting
Primary Author: Mr Robert A Marshall General Services Admin
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 5:30-6:30/Conference Room F
Abstract:
(COM.12) Planning and Scheduling Committee Meeting
Primary Author: Mr Edward E Douglas III CCC PSP ACTPMA LLC Consulting
Co-author(s): Mr. Timothy T. Calvey PE PSP Calvey Consulting LLC; Mr. Ronald M. Winter PSP Ron Winter Consulting LLC
Audience Skill Level: Basic
Presentation Length: 1 Hour(s)
Time/Location: WED 10:50-11:50/Conference Room C
Abstract:
The objective of this committee is to increase planning and scheduling effectiveness
through sharing of the latest planning and scheduling techniques and experiences. The
committee accomplishes this by developing guidelines for planning and scheduling, by
providing a forum for the exchange of experience and information, by contributing to
advances in state-of-the-art planning and scheduling methods, and compiling information
about planning and scheduling.
(COM.13) Transporation SIG Meeting
Primary Author: Mr. Robert H. Harbuck PE CCE Parsons Brinckerhoff
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 5:30-6:30/Conference Room C
Abstract:
(COM.14) Academic SIG Meeting
Primary Author: Mr. Peter W. Griesmyer POWER Engineers Inc.
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 5:45-6:45/Conference Room C
Abstract:
COST AND SCHEDULE CONTROL (CSC)
(CSC.01) The Project Controls Maturity Model
Primary Author: Mr H Lance Stephenson CCC WorleyParsons CANADA
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 11:10-12:20/Conference Room G
Abstract:
In recent years, many companies have sought to enhance the performance of their Project
Controls Organization and Systems to provide management with more predictable/reliable
results in support of their project decision-making processes. While many organizations
have attempted to improve certain key elements of Project Controls, little success has
been accomplished. This paper will present the Project Controls Maturity Model (PCMM) in
an effort to establish a sound model for establishing a leading position in Project
Controls effectiveness.
The Project Controls Maturity Model (PCMM) provides the Project Team with a complete
understanding of their project control capabilities for ensuring that the development of
the schedule satisfies the predetermined criteria. The PCMM implies that project controls
is compliant with industry standards and criteria. The PCMM provides recommendations for
correctness and completeness if compliance is not met. Also, the PCMM should substantiate
the technical adherence to sound project controls practices and provide the Project
Management Organization with an effective tool for developing or enhancing the project
controls systems (people, processes & tools) within their organizations. I will use
AACE’s Total Cost Management Framework as the benchmark for applying the appropriate
level of maturity required for project success.
(CSC.02) Integrating SAP with the Project Execution Platform - Was it Worth it?
Primary Author: Mr. Wayne M. Ushijima Fluor Daniel
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 1:50-2:50/Conference Room G
Abstract:
Balancing project execution requirements with a corporate SAP financial system can be
challenging. See how Fluor balanced the needs of seven different industry groups while
satisfying Sarbanes Oxley, Corporate Finance and Project Management procedures.
This paper reviews the implementation philosophy, and how project execution functional
groups were able to integrate legacy applications with SAP through a process called the
Integrated Framework. The Integrated Framework leverages the strengths of both SAP and
legacy systems. But was the effort worth it?
Hear about the successes and challenges faced as we embarked on the 7 year journey to
implement the Integrated Framework. Every small engineering feasibility study to the
largest world class Engineering Procurement and Construction project, are now all managed
by the Integrated Framework.
(CSC.03) Total Float Management: Renovating a Misused and Abused Approach
Primary Author: Dr Anamaria I Popescu PE CPM Consulting Inc
Co-author(s): Mr. John Jerz CPM Consulting Inc
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 3:25-4:25/Conference Room G
Abstract:
In an Owners world, float is not actually owned by anyone but merely absorbed by the
project team. Float is only managed when it becomes negative in those come-to-Jesus
monthly meetings where guilt is distributed evenly.
This paper contends that a schedule carrying the burden of negative float from month to
month is not a schedule but a liability. Instead of allowing float to be eaten up in the
individual activities, different tiers of management reserve buckets will be embedded at
the end of the schedule to allow float to be distributed to the areas most deserving of
such an allocation. A management of change process and a chain of command theory will be
instigated to discourage the abuse and misuse of float on the project. This paper will
explain in detail how to use these float buckets to manage and distribute float in a way
that dispels the negative float schedule from owners vocabulary once and for all.
(CSC.04) Increasing Field Use of Planning, Scheduling and Project Cost through Assessed
Training Programs
Primary Author: Dr Daphene Cyr Koch Purdue University
Co-author(s):
Audience Skill Level: Basic
Presentation Length: 0.5 Hour(s)
Time/Location: MON 4:35-5:00/Conference Room G
Abstract:
Each day, decisions made by foreman and superintendents on construction sites are crucial
to the success or failure of projects. Profit margins are gained or lost by the field
decisions, so the knowledge of planning, scheduling and managing project cost should be
integrated into the field at all levels of supervision. Training alone does not guarantee
the transfer of knowledge to the field, but integrating company examples and demonstrating
best practice can raise the level of confidence that an employee attains during that
training. Research shows that a person who is more confident (has a higher self-efficacy)
about a topic is more likely to participate and excel in that area. This paper provides a
model to assess the knowledge gained and employee self-efficacy of training that can be
applied to concepts of planning, scheduling and managing project cost.
(CSC.05) Influence of Quality on Construction Costs
Primary Author: Dr. John A. Kuprenas PE Vanir Construction Management
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: MON 5:10-5:35/Conference Room G
Abstract:
This work tests the truth of the construction industry paradigm that cost, schedule, and
quality form a triangle and that increasing any one of these attributes will adversely
impact the other two. The study examines the correlation between quality measures (such as
construction finish quality, construction deviations, and length and value of construction
punchlist) and construction costs measures (such as total project cost per square foot,
construction contract cost per square foot, and construction change order costs and
percentages). Based on data from over 50 large, public sector, educational building
program projects completed over the last 5 years, this paper also suggests best practices
for cost engineers and project managers working for other public sector agencies.
Conclusions to the paper include suggestions for expansion of the research/lessons
learned, as well as future research of factors that influence project cost and quality.
(CSC.06) Discussion on Preparation and Control of Construction Cost of Hydro Power
Projects
Primary Author: Mr. Xinmin Shi China Engineering Cost Assoc CHINA
Co-author(s):
Audience Skill Level: Basic
Presentation Length: 0.5 Hour(s)
Time/Location: CANCELED
Abstract:
This article describes the preparation methodology and the brief history of cost estimate
reform of hydro power projects. Compared with general methodology of cost estimate adopted
in foreign countries, it points out the major deficiencies and the direction of cost
engineering reform. As to the cost control during construction period, it describes the
practice of cost control in China during recent years the focus is on the methodology of
preparing execution cost estimate. The author of this article has prepared the cost
estimate of China Three Gorges Project and conducted cost management consulting services,
by this experience the article evaluates the actual effect of major reforms adopted in
preparing the cost estimate 15 years ago and the effectiveness of cont management
metrology used during the whole process of this project.
PROFESSIONAL
DEVELOPMENT (DEV)
(DEV.01) Project Controls Professional Development Program at Parsons
Primary Author: Mr. Michael R. Nosbisch CCC PSP Parsons
Co-author(s): Ms. Andrea Bach Parsons
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 10:00-11:00/Windsor East
Abstract:
There is currently a major shortage of project controls professionals across the entire
engineering and construction industry. As a result, many firms are put in the position of
hiring/promoting people into project controls positions of increasing responsibility
before they have the requisite experience to succeed in the role. Parsons has recently
developed an internal professional development program to address this unique situation.
The program currently has two facets: an internal certification process to ensure that
individuals assigned as either a principal level cost engineer or a project controls
manager (PCM) have the right balance of general and Parsons-specific knowledge to be
successful and a PCM Internship program to entice early to mid-career professionals to
enter the profession in exchange for an accelerated, incentivised career progression plan.
The paper will describe both aspects of Parsons program as well as provide metrics that
will attempt to illustrate the effectiveness of each.
(DEV.02) (Panel Discussion) Costs and
Benefits of Building Green (Sponsored by the AACE Women in Project
Controls Taskforce)
Primary Author: Ms Alexia A Nalewaik CCE Moss Adams LLP
Co-author(s): Ms Valerie G Venters CCC Venters Consulting LLC
Audience Skill Level: Basic
Presentation Length: 1 Hour(s)
Time/Location: MON 11:10-12:20/Windsor East
Abstract:
Sustainable development is the most vibrant and enigmatic global topic in the construction industry in more than a decade. Green buildings are the darling of the media and trendy, politically-correct owners & tenants. Building green is also a means to an end, used by public agencies to bolster community support and public image. But what does it cost?
- Is popular perception correct, that green buildings cost more?
- Do lower lifecycle costs offset any increase in the initial construction cost?
- Do the benefits related to human performance and health balance the cost of sustainable design? Can you afford NOT to build green?
- Is building green justifiable as a business case?
This paper provides a brief overview of green building and available rating systems, followed by a discussion about the tangible and intangible benefits of sustainable design. The relative cost of green construction is debated, and the discourse concludes with some cost-savings guidance.
(DEV.03) The Seven Secrets of Speaking Like a Project Controls Leader!
Primary Author: Mr. Rohit Singh P ENG CCE ES Fox Ltd CANADA
Co-author(s):
Audience Skill Level: Basic
Presentation Length: 1 Hour(s)
Time/Location: MON 1:50-2:50/Windsor East
Abstract:
Speaking like a project controls leader is more than being a subject matter expert, it
lies in how effectively you can get the point across. There are seven secrets to doing
this that will be explored in this presentation.
Here are three of the secrets that will be shared:
- Have a definite mission and be committed to it.
- Be futuristic in your approach as a project controls leader
- Simplicity and Straightforwardness- these are powerful and positive messages for the
audience.
In order for the audience to obtain the full benefit from this presentation, an
interactive presentation approach will be used.
This presentation based on research and practical applications by the author, who has lead
the implementation of project controls for major EPC companies in North America and have
distinguished himself as a public speaker for Toastmasters’ International on many
occasion would be beneficial to all project controls personnel of all levels in a
company’s hierarchy.
(DEV.04)(Panel Discussion) Open Forum on ICEC and United Nations Programs
Primary Author: Mr. Murtala Ayodeji Oladapo Murty Associates NIGERIA
Co-author(s): Dr Kenneth K. Humphreys PE CCE
Audience Skill Level: Basic
Presentation Length: 1.5 Hour(s)
Time/Location: MON 3:25-5:00/Windsor East
Abstract:
The International Cost Engineering Council (ICEC) was granted Roster consultative status
of the United Nations (UN) on 21st July 2006 as an NGO concerned with specific technical
focus. This provides ICEC and its membership the opportunity to formulate policies for UN
Programs in social, economic and sustainable development. ICEC can now receive automatic
accreditation to conferences, summits or other events organized by the UN at
international, regional and national levels and make contributions.
Using its network of professionals and academia ICEC has the capacity and capability to
cooperate and collaborate with several organizations, departments, programs or specialized
agencies of the UN system by drawing on the expertise from the spread of its membership.
The aim of this open forum is to review, generate issues, examples and initiatives that
would enable ICEC establish an appropriate work plan, structure and systems for its role
as an NGO of the UN and maximize the associated benefits with respect to professional
development among other things.
(DEV.05) Are We Really a Teflon Coated Profession?
Primary Author: Mr. Peter Cox Padgham & Partners AUSTRALIA
Co-author(s):
Audience Skill Level: Basic
Presentation Length: 0.5 Hour(s)
Time/Location: MON 5:10-5:35/Windsor East
Abstract:
This paper responds to some growing murmurs of discontent emerging from private and
government sector clients in regards to the standard of services and lack of
accountability amongst the quantity surveying profession.
In the presentation the author will share some observations based on his own experiences
over thirty years in practice as well as some recent feedback from the marketplace in
Australia, Canada, Singapore and the UK. In particular it will draw on some very
comprehensive market research commissioned by The Australian Institute of Quantity
Surveyors into the views of users of QS services.
The paper will also explore some of the underlying drivers of the emerging situation and
propose some new initiatives which the QS profession can (or must) take in order to throw
off the Teflon coated profession label.
It concludes with a challenge to all quantity surveyors around the world to get involved
in an agenda to raise the bar and thereby raise the profile of the profession.
(DEV.06) The Update of the Certification Reference Material in Estimation
Primary Author: Mr Didier Barrault AFITEP FRANCE
Co-author(s):
Audience Skill Level: Basic
Presentation Length: 0.5 Hour(s)
Time/Location: TUE 5:30-5:55/Windsor East
Abstract:
A working group on estimating, within AFITEP, has started an update of the reference
material on estimating. AFITEP is currently providing ICEC certification in the following
areas : General knowledge, and scheduling, cost control, and estimating. Concerning
estimating, the recommended reference material for the preparation of the certification
consists today in various books, making the task not easy for the certification candidates
who want to get the required knowledge. The objective of the working group is produce one
single manual, similar to the AACEI Skills & Knowledge of Cost Engineering, exhaustive
enough to address all the cost engineering topics, as well as all the business domains.
(DEV.07) An Investigation Into the Curriculum of the Construction-Related Associate Degree
in Hong Kong
Primary Author: Dr. Eric Cheng City Univ of Hong Kong HONG KONG
Co-author(s):
Audience Skill Level: Basic
Presentation Length: 0.5 Hour(s)
Time/Location: TUE 6:05-6:30/Windsor East
Abstract:
The aim of the investigation is to assess the views of the key stakeholders regarding the
relevance of the existing Associate Degree curriculum with special reference to the
construction-related curriculum to provide middle level technicians at CityU where the
researcher works. The main findings are that the AD curriculum which contains vocational
skills also includes an increasing number of general education skills, but they are not
made explicit in the course content. Although employers in Hong Kong view general skills
as equally important to vocational skills, the latter are viewed as essential to begin
employment. When asked to postulate on the situation in four years time, employers are of
the view that general education skills will gain in significance. However, it is argued in
the report that Hong Kongs economy and employment needs are changing as part of the trend
towards globalization. Therefore, the AD curriculum must be based on the perceived new
role of the work force, so as to preserve the vocational skills but instill more general
skills in order to meet the expectations of the employers and the professional bodies.
(DEV.08) Where Are All the Estimators???
Primary Author: Mr Jeff Bettinger URS Washington Division
Co-author(s): Mr Barrett L Richards CCC PSP Jacobs Carter-Burgess
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 8:00-9:00/Windsor East
Abstract:
Low supply of workers is creating wage inflation in all construction fields, including
estimating. The economics of this has and will continue to drive wages up. One possible
reason for this shortage is a lack of understanding about the rewards of pursuing
estimating as a career. If the industry invested in education on the disciplines related
to the estimating field, the pool of potential workers would increase, creating a less
competitive market.
(DEV.09) (Panel Discussion) Women in
International Business
- Sponsored by the Women in Project Controls Task Force
Primary Author: Dr. Anamarie Popescu PE CPM Consulting LLC
Co-author(s): Ms. Marlene Hyde CCE Hyde Consulting LLC
Audience Skill Level: Basic
Presentation Length: 1 Hour(s)
Time/Location: WED 9:40-10:40/Windsor East
Abstract:
Women face major obstacles when conducting business in the global
community. There are two primary factors that contribute to creating these
barriers for women: no protocols exist for conducting business
interactions between genders and there are stereotypical expectations of
female roles. This paper will explore the different protocols women must
adhere to in order to be able to effectively conduct business in foreign
countries. The first part of the paper breaks down the countries of the
world into five (5) categories. The categories range from “impossible to
conduct business here as a woman” to “no problems conducting business here
as women.” Then the paper will discuss certain countries with specific
business etiquette standards that a woman needs to adhere to in order to
be successful in that country. These countries include Russia, China,
India, and Brazil. Three areas of etiquette will be covered in each
country discussed: appearance, behavior, and communication.
(DEV.10) Project Controls: A Roadmap to a Choice Career
Primary Author: Ms. Nyssa-Dawn Amelinda Corria-Simpson Bechtel Power Corporation
Co-author(s): Mr. Bernd R. Langer Bechtel Corporation; Ms Pamela Handor Bechtel Group Inc
Audience Skill Level: Basic
Presentation Length: 1 Hour(s)
Time/Location: WED 10:50-11:50/Windsor East
Abstract:
With construction projects on the rise and the need for quality Project Controls Engineers
increasing twofold, one company’s Project Controls department revitalized its career
development program to ensure that Project Controls became the career of choice. This
strategic thinking not only provided a roadmap for current employees but also paved the
way to attract college graduates to pursue a career in Project Controls. Not having a
defined career path and a formal mentoring program to grow future leaders ranked very high
as a result of recent employee surveys. This article explores how a company revitalized
its entire career development program, by establishing a career road map, identifying
skills and competencies at each grade level and also developing the training required to
fill any skill gaps. By establishing this program and providing employees the right tools
at the right time this dynamic organization demonstrated that employees are our most
valued resource.
(DEV.11) The International Cost Engineering Council (ICEC) & the Global Demand for
Cost Engineers
Primary Author: Dr Peter Vincent Smith University Of Tech. Sydney AUSTRALIA
Co-author(s):
Audience Skill Level: Basic
Presentation Length: 1 Hour(s)
Time/Location: WED 1:00-2:00/Windsor East
Abstract:
This paper describes the development of the International Cost Engineering Council (ICEC)
since its inception in 1976 and links this with the global expansion of the project cost
management profession over the same period. ICEC is an international confederation of cost
management associations with the main objectives of facilitating cooperation between these
associations and promoting the profession worldwide. Commencing with 4 founding
associations in 1976, ICEC has grown to a membership base of 44 national associations
located in 40 countries. ICEC now represents more than 100,000 quantity surveyors/cost
engineers in over 120 different nations. This in itself provides demonstrable evidence of
the global rise and recognition of the profession. This paper will track this growth and
the concomitant recognition and development of the profession internationally. This will
include emerging trends in Africa, China, India and the Middle-East. This has created
tremendous international opportunities for expert project cost management professionals
and demand for these services is at an all-time high. Unfortunately, this demand has not
been matched by supply resulting in a global shortage in the profession.
(DEV.12) The Role of the Estimator in Today's Construction Industry
Primary Author: Mr Steve J Rajpatty Associated Svcs Limited TRINIDAD AND TOBAGO
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: WED 2:10-2:35/Windsor East
Abstract:
In today’s competitive and dynamic construction environment one of the most critical
undertakings of any contractor is to formulate and execute a practical estimate. Arguably,
it is from this stage that the contractors profits or losses on the project can be
ascertained.
Notwithstanding the advent and use of technology in the estimating process there is always
an element of uncertainty, bias and inevitable guesswork that the estimator must employ
and any estimate prepared by him is necessarily a matter of opinion, subjective,
imaginative and without doubt open to criticism (Smith, 1986). This is compounded by the
fact that today estimators are required to take into account a multitude of non
traditional factors when developing estimates. These include sustainability/green issues,
efficient patented building techniques, stringent delivery time, methods of payment,
retention, quality and affordable building processes, construction method to mention just
a few.
The role of the estimator is thus critical to the financial success of any project.
Accordingly this paper proposes to examine the background, role, place and challenges of
the estimator within an industry that remains highly unpredictable and politicized.
(DEV.13) The Pillars of Quantity Surveying for a Learned Society
Primary Author: Dr. J. J. P. Verster Univ of the Free State SOUTH AFRICA
Co-author(s): Ms Benita G Kotze Univ of the Free State SOUTH AFRICA; Dr A C Hauptfleisch Univ of the Free State SOUTH AFRICA
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: WED 2:45-3:10/Windsor East
Abstract:
The aim is to identity the five pillars that are most important determinants to develop
quantity surveying towards a learned society and to evaluate the levels of importance as
seen by the profession.
Methodology/Approach/Design
A questionnaire was compiled to identify and weigh the important dimensions of quantity
surveying for a learned society. One hundred and seven questionnaires were sent to
prominent quantity surveyors, board members of the ASAQS, council members of the SACQSP,
and academics. Fifty-six quantity surveyors responded, which represents a response rate of
52%.
Results
The results show that the following dimensions are, amongst others, important for quantity
surveying to be a learned society: education training mentorship continuing professional
development (CPD) and research. The level of importance of these dimensions was used to
propose the five pillars of a learned society as a model for the quantity surveying
profession.
Value
Based on the analysis of the identified pillars and their weighting, a unique model may be
implemented for the quantity surveying profession, thus adding value to the understanding
of the professions maturity.
(DEV.14) The Role of Project Managers in Construction Industry Development
Primary Author: Dr. Martyn James Hills Hong Kong Polytechnic Univ CHINA
Co-author(s): Dr. Paul William Fox Hong Kong Polytechnic Univ CHINA; Dr. Martin Skitmore QUT AUSTRALIA; Ms. Carol K. H. Hon Hong Kong Polytechnic Univ CHINA;
Dr. Patrick Sik-Wah Fong Hong Kong Polytechnic Univ HONG KONG
Audience Skill Level: Intermediate
Presentation Length: 1.0 Hour(s)
Time/Location: MON 5:45-6:45/Windsor East
Abstract:
An awareness of the issues involved in construction industry development
will help project managers to play a more effective role in promoting this
important aspect of the industry's culture. This study applies a
theoretical framework for construction industry development, proffered by
Fox and Skitmore (2007), to Hong Kong's construction industry in order to
test the validity of the framework for construction industry development
in developed economies. Factor analysis was used to generate the following
eight factors that affect Hong Kong's construction industry: financial
resources physical resources competition coordination and cooperation
government intervention long-term vision and policy communication between
government and the industry and a learning culture. The findings of this
study are not only useful to project managers but also to policy makers
and leaders in the construction industries of developed countries, who
face similar challenges to those found in Hong Kong when considering how
to develop their construction industry.
ESTIMATING (EST)
(EST.01) 10 Cents on Estimating
Primary Author: Mr Barrett L Richards CCC PSP Jacobs Carter-Burgess
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 10:00-11:00/Conference Room D & E
Abstract:
Development of an accurate estimate involves a tremendous coordinated effort. The effort
must be well thought out and consistent. Critical to the effort are the individuals
involved. In addition, while two estimates can be equally accurate, but result in
different total amounts, a well coordinated effort results in estimates with common
characteristics. This paper will examine the following ten guidelines:
- Estimating should be implemented early
- Estimating involves more than counting
- The entire project team must be involved in the estimate
- Accuracy in estimating is in the details
- What is not in the estimate is as important as what is
- Estimate organization must be carefully considered
- Current information is key
- Estimating done right serves as a check on project scope
- An estimate should not be high or low, but just right
- An estimator must be visionary
(EST.02) Reviewing Change Orders 101
Primary Author: Mr. Brian S. Clare CCC Cumming Corporation
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 11:10-12:20/Conference Room D & E
Abstract:
The basis for this paper is to provide a roadmap to the basic or intermediate construction
project personnel on how to focus their review time on a proposed change order. This would
include the merit assessment, quantity verification, pricing verification, additional
backup requirements, and the advantages and disadvantages of the different types of change
orders - lump sum vs. time and materials. In addition, the discussion will include tips on
negotiating with the contractor, and the hidden spots where contractors hide their
additional costs and markups.
The next step of addressing the claim if it also doesn't settle will also be addressed.
(EST.03) An Introduction to Parametric Estimating
Primary Author: Mr Larry R Dysert CCC Conquest Consulting Group
Co-author(s):
Audience Skill Level: Basic
Presentation Length: 1 Hour(s)
Time/Location: MON 1:50-2:50/Conference Room D & E
Abstract:
This paper is aimed at the entry-level estimator wanting to explore the concepts of
parametric estimating. Parametric cost estimating models are useful tools for preparing
early conceptual estimates when there is little technical detail to provide the basis for
using more detailed estimating methods. This paper will introduce the concept of
parametric estimating, discuss the steps involved in the creation of a parametric
estimating model, and demonstrate a few examples of parametric estimating models.
(EST.04) A Practical Application of Monte Carlo Simulation in Forecasting
Primary Author: Mr James D Whiteside II PE ConocoPhillips
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 3:25-4:25/Conference Room D & E
Abstract:
This paper describes a practical application of the Brownian-walk Monte Carlo simulation
in forecasting. By setting up a simple spreadsheet and time-dependent historical data,
this simple Monte Carlo routine is useful in forecasting productivity, installation rates,
labor trends, etc. This is especially useful when historical data can not be modeled using
standard data regression techniques. The paper discusses basic forecasting for single
commodities, and it outlines a more robust methodology to create a composite forecast by
combining several single commodities.
While Monte Carlo simulation is very popular to calculate the "P50 value" for
contingency planning, the true power of Monte Carlo simulation is in data extrapolation,
or forecasting beyond the known data points and understanding the range of outcomes
expected. The paper addresses some basic elements of Monte Carlo simulation, approach for
its application via a Brownian-walk approach in understanding cost trends and assessments
for hard to model situations. The approach can help companies develop unique near term
market insights and trends in order to compete in marketplace on analytics.
(EST.05) What is the U.S. Gulf Coast Baseline when Estimating Site Productivity?
Primary Author: Mr. Bruce E. Bradley Fluor Corporation
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 4:35-5:35/Conference Room D & E
Abstract:
For more than the past half-century, direct craft labor work hours on industrial projects
located throughout the majority of the 48 contiguous United States, have loosely been
associated with one another through a single common denominator mysteriously referred to
as the U.S. Gulf Coast. It seems to be so ill-defined while at the same time it appears to
be taken for granted among all construction-related contracting companies as an agreed
upon reference point. When estimating a new project, contracting companies typically
attempt to determine what site productivity to apply to these USGC work hours. The danger
in this is believing the starting point is identical among contractor organizations, thus
creating a potential disconnect when working simultaneously for a single owner company.
This paper does not attempt to provide a single, specific reference point, but rather to
attempt to define the USGC phenomenon itself.
(EST.06) Parametric Estimating for Environmental Remediation Projects
Primary Author: Ms. Angela R. Brunsman ICC Oklahoma Dept of Env Quality
Co-author(s): Mr. Kenneth F. Robson University Of Oklahoma; Dr Douglas D. Gransberg PE CCE University Of Oklahoma
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 8:00-9:00/Conference Room D & E
Abstract:
Estimating environmental remediation projects is a difficult problem to say the least. Not
only are the scopes of work most environmental remediation projects virtually impossible
to quantify due to the nature of the work, but also the nearly exclusive use of cost-plus
contracts introduces another factor of variation into the data that can be used to build
an estimating database. This paper demonstrates how parametric estimating can be used to
get a handle on the variation and improve the accuracy of estimates for these types of
projects.
(EST.07) If You Build It They Will Come - Making Project Historical Data Useful
Primary Author: Mr. John G. Musgrove PE Bechtel Corporation
Co-author(s):
Audience Skill Level: Basic
Presentation Length: 1 Hour(s)
Time/Location: TUE 9:40-10:40/Conference Room D & E
Abstract:
Last years presentation Transforming Historical Project Data into Useful Information
presented the high level concepts for methods to make historical data useful. This
presentation drills down into the specific implementation problems and their solutions,
including:
- Issues pertaining to data quality and data typing
- Who provides the data who owns it?
- How to transform existing data in a new format
- What security and implementation issues were encountered
- How initial success led to expansion and greater levels of management support
The development of the CMD Central Metrics Database automated and made accessible project
summary data previously maintained in restricted Excel worksheets and un-reproducible
paper reports. The challenges and solutions to implementing the CMD will be presented to
help others understand how to develop their own historical databases.
(EST.08) Escalation Estimation: Lessons Learned in Addressing Market Demand
Primary Author: Mr. John K. Hollmann PE CCE Validation Estimating, LLC
Co-author(s): Mr Larry R Dysert CCC Conquest Consulting Group
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 10:50-11:50/Conference Room D & E
Abstract:
Global capital project costs have become increasingly volatile since 2003. Increased
capital spending for process facilities has created a sellers market for EPC services as
well as many material and equipment types. Unfortunately, there are no available indices
that effectively track EPC and other hot market prices for downstream capital projects (a
fact admitted to by sources such as ENR). This situation requires the cost engineer to
develop home-grown price indices that address the capex market situation, a task most cost
engineers are not prepared for given the market volatility. At the 2007 AACE Annual
Meeting, the authors presented a new, objective way to estimate escalation by leveraging
capex market forecast data from economic consultants. In this years paper, the authors
will review the method as well as general learnings from implementing custom escalation
estimating tools at various owner and contractor companies.
(EST.09) Estimating Preconstruction Services Fees for CM-at-Risk Projects
Primary Author: Dr Douglas D. Gransberg PE CCE University Of Oklahoma
Co-author(s): Mr. Jeremy B. Carlisle ICC GH2 Architects LLC
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 1:30-2:30/Conference Room D & E
Abstract:
Construction Manager-at-Risk (CM-at-Risk) project delivery is a growing method throughout
the United States for construction projects. There is currently no recognized method to
estimate the cost of the pre-construction service fees that are associated with this
delivery method. The traditional delivery method does not involve the construction
contractor until the design is complete. Therefore, contractors are not used estimating
this type of fee and are trying to use traditional practices for a nontraditional delivery
method that has no published standards. This paper explores methods for estimating
preconstruction service fees based on an analysis of project case studies in Oklahoma and
Texas. It synthesizes those into a graph that can be used as the starting point for
negotiations on these fees.
(EST.10) Expectations of the Process Plant Cost Estimate Using Kbase
Primary Author: Mr. Christopher L. Kinney CB&I
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: CANCELED
Abstract:
Expectations of Cost Estimate accuracy and quality are increasing due to the higher
demands placed on projects from increased business investment pressures. Every owner
company wants to get its product to the market faster and cheaper. That desire is
especially difficult in todays ever-tightening market, the same market that has fewer and
costlier resources available to build and/or update existing process plants.
To meet the higher business demands, there is a drive to generate quantified and validated
estimates at the conceptual level enabling owners to make business decisions significantly
earlier in the evolution of a project.
This article identifies several proven concepts that previously have been non-existent or
seldom used.
- Development of cost models:
- significantly increase the speed and accuracy of developing a pre-validated scope,
schedule, and cost estimate using previously hazopd P&IDs and a real plot plan
complete with all the bells and whistles, for use in new projects at the conceptual level
- identify construction quantities which facilitate earlier planning, management, and
procurement activities, especially for the mega-projects, driving to earlier completion
dates by as much as a year
- provide earlier guidance supporting optimization of costs in designs
- significantly reduce engineering man-hours expended solely for the purpose of supporting
the development of cost estimates
- establish a project control baseline (quantified) for project performance much earlier
in the design stages2.Outlines steps to developing quantified cost models with proven
accuracy
- Explains the work processes that are used:
- encompasses two distinctly different types of ISBL concepts
- includes rules of thumb for factoring un-identified localizable non-process portions of
a project
- identifies simple benchmarks for validation of the early estimates
- Suggests a work process used very successfully for developing extensive TIC trending at
the initial concept development stage of a project.
- Aids in the planning process for developing higher quality conceptual estimates,:
- Includes a diagram for planning the development of more accurate estimates
- Includes recommended BEST PRACTICES (as changes to the AACEI Estimate Classification
System) reflecting the increased estimating accuracy achievable using Kbase
- Identifies key estimating receivables in the form of a simple chart that is also useful
for determining the accuracy of an estimate.
The intent of this article is to identify the new expectations of the process plant cost
estimator, bringing ideas back to the table that significantly enhance further
optimization of total installed capital costs through the use of todays limited resources
and AspenTechs Icarus Kbase.
(EST.11) Methodology for Calculating a Pipeline Repair Cost
Primary Author: Mr. Jeferson Faria Vianna Petrobras Transporte S/A BRAZIL
Co-author(s): Mr Enirton Ferreria Teles Petrobras/Transpetro BRAZIL
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 4:20-5:20/Conference Room D & E
Abstract:
A probabilistic methodology of calculating a pipeline repair cost is presented. The
pipeline is divided into 1-km segments, each one having its own estimating repair cost.
The probabilities calculi are based on the Poisson distribution and two repair methods are
used: welded sleeve and pipe replacement. The total pipeline repair cost is obtained as a
sum of the product fail probability times repair cost applied to each 1-km pipeline
segment. An application illustrates the methodology. The repair cost may be used for
different purposes.
(EST.12) How Six Sigma Approach Solve Escalation Issue?
Primary Author: Mr Hee Kyu Kwon CCE Samsung Engineering Co Ltd KOREA, REPUBLIC OF
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 8:00-9:00/Conference Room D & E
Abstract:
Escalation is always an Achilles Tendon for estimators and managers who are in charge of
bidding and/or budgeting of projects in an organization. In Oil/Gas, Petrochemical and
Chemical industry, vendors and suppliers are reluctant to submit quotation with a longer
validity than a month due to market uncertainties like unstable oil price, material
shortage, shop load and others. However, it is normal to take at least 6 months or much
longer until actual purchase order of materials. How much is a proper level of such
escalation to the price of materials at the time of purchase orders?
How to solve this question? Now, more scientific and quantitative model has been invented
with 6 sigma approach. Define, Measure, Analyze, Design /Optimize and Verify. These 5
steps of 6 sigma methodology have successfully led to the result that can be customized to
each equipment and materials at an anticipated time of purchase orders.
For example, the vital X parameter governing CE Plant Cost Index is Dubai oil price, 14
months before the time. Ni price is governed by Dubai oil price, 10 months before the
time. These major correlation and others can be effectively used for estimators to predict
the level of future escalation, if follow the procedure suggested in this paper.
(EST.13) How to Perform a Location Factor
Survey
Primary Author: Ms. Aafje M. Jansen-Romijn Cost Engineering Consultancy NETHERLANDS
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 9:40-10:40/Conference Room D & E
Abstract:
For decision-making of potential investments of new projects it is often not possible to
wait till the definitive investment estimate is prepared, because of the considerable time
and effort needed to prepare a detail estimate. If part of the decision making different
locations are involved it multiplies the effort and cost to prepare the estimates for
different locations.
For this purpose one could also perform a Location Factor survey in stead of full detailed
estimates for the different locations to save time and money.
A location factor is an overall total project factor for translating all of the project
cost elements of a defined construction project scope of work from one geographic location
to another. This factor recognizes differences in productivity and costs for labor,
engineered equipment, commodities, freight, duties, taxes, procurement, engineering,
design and project administration.
A location factoring method requires a detailed survey of labor, material, equipment, and
other project-specific data completed for the base location. The same survey then is
priced out according the current prices and norms of the selected location compared to the
base data.
Next to quantitative calculations it is very important to analyze the main uncertainties
together with a detailed risk assessment of the different locations.
(EST.14) Unit Price Estimation in Division 1 to 16 Format Using MS Excel and/or MS Access
Database
Primary Author: Mr Indirakumar Sinnathamby CH2M CANADA
Co-author(s):
Audience Skill Level: Basic
Presentation Length: 1 Hour(s)
Time/Location: WED 10:50-11:50/Conference Room D & E
Abstract:
Most of the Estimate with too many pages are looked at as too much paper work. At the
tendering stage, contractors are required to submit lump sums for each Division. As a
result contractors only showing lump sum bottom line figures at the table. How are they
building Estimates? by following major Unit Prices acceptable in the Industry, and
figuring out quantities just to feed those unit prices. Material supply, Labor to install,
Equipment necessary, and Sub contractors overhead and profit are all absorbed in unit
prices. Contractors are powerful organization who are making the design into reality, on
site. They need more time on site adding value to ever growing built environment. If we
have to figure out how Unit price estimates works, we have to go in detail one unit price
by one. Cost Consultants here build up the unit prices with cost models. these models
varies from one company to the other. Which are proprietary assets.
Using Excel Spread sheet for Unit Price Estimates is good for 5 to 10 page estimates. Lots
of Formulas have to be dealt with. Lots of range error have to be dealt with. But in
Access or any other database applications. Formula errors won't happen. any professional
Estimator can submit 50 page estimate 100 page estimate with confidence. Also pricing
harmonization or pricing consistency can be achieved with minimum effort, by dealing with
unit price report. I want to share this thoughts with fellow estimators how it is being
achieved in a fast paces estimation environment.
(EST.15) Distinguish the difference between Parametric Estimating and Factored Estimating
and how they relate to cost and proposals
Primary Author: Mr Warren Charles Tasca Hill International, Inc.
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: WED 1:00-1:25/Conference Room D & E
Abstract:
The topic that I chose to base my paper on is to distinguish the difference between
Parametric Estimating and Factored Estimating and how they relate to cost and proposals.
Some key points that I will discuss are the definition of a parametric estimate, the
proposal and the use of parametrics, the parametric estimating system, cost estimating
relationships and models, the overall cost estimating relationships development process,
establishing an approved parametric estimating system, negotiating an parametrically based
proposal, parametrics and the auditing process, and the requirements for a parametric
estimating system, parametric based proposals, and a parametric estimating checklist. Some
key points I will discuss for factored estimating are the definition of factored estimate,
major reason for good estimates installation factors, and total direct process unit cost,
weather conditions that could affect the estimate, the accuracy that this type of estimate
depends upon, the factored cost estimate format, factored estimating based up the cost of
equipment, indirect affects of labor and how they affect the factors of an estimate.
(EST.16) Historical Construction Cost Database and their Application
Primary Author: Mr Selvanayagam Assiskumar CANADA
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: WED 1:35-2:00/Conference Room D & E
Abstract:
There is always a quest for readily available construction information. Their
applicability and accuracy is in stake when it comes to use historical cost databases. As
such the historical cost databases serve a great deal in deriving a budget for a project
at the early stages of its development. How to get most out of the available information?
There are many published books on the market and also information readily available from
Internet. Almost every company in the construction business track down their cost
information in a format suited to their practice and need.
Various factors play a keen role in interpreting the data. Size of the project, year being
built, inflation rate, local market condition, complexity of the project, procurement
method, site conditions, etc.
An attempt was taken to investigate what makes a good database and what are the most
critical factors that determine the accuracy of them.
(EST.17) Factors Affecting Contingency Determination
Primary Author: Dr. Ali Ali Shash King Fahad U of Petroleum & Mi SAUDI ARABIA
Co-author(s): Mr. Fahad Mohammed Al-Azzaz CCE Saudi Aramco SAUDI ARABIA
Audience Skill Level: Basic
Presentation Length: 0.5 Hour(s)
Time/Location: WED 2:10-2:35/Conference Room D & E
Abstract:
Project cost performance is typically measured by comparing final cost against budget. A
key component of the project budget for the construction contract is construction
contingency, which caters for contract variations that arise during the implementation
phase of projects. It is important for contractors to know the level of accuracy being
achieved in estimating construction contingency.
A contingency allowance is an amount of money used to provide for uncertainties associated
with a construction project. Traditionally, it is a percentage addition on top of the base
estimate. This study uses empirical data that are being collected from construction
contractors in Saudi Arabia to reveal the techniques which contractors in Saudi Arabia use
to determine the size of the contingency. In addition, the study will attempt to present
the factors that are affecting a contractor's decision on the size of the contingency. It
is anticipated that contractors in Saudi Arabia are using different methods to determine
contingency. The study will present the strengths and weaknesses of the used methods and
present the most effective technique that will aid contractors to determine the
contingency more accurately.
(EST.18) A Few Good Cost Estimators
Primary Author: Mr Gregory Nelson McDowell CCC Boyken International Inc
Co-author(s):
Audience Skill Level: Basic
Presentation Length: 0.5 Hour(s)
Time/Location: WED 2:45-3:10/Conference Room D & E
Abstract:
In order to estimate the costs to provide a complete and operable emergency generator
system, all related items, elements and components must be included. However, we all know
that obtaining proposals from the various contractors and vendors that include a complete
scope is almost impossible without rubbing a few good feathers. Many times contractors,
sub-contractors and vendors qualify their proposals or bids by removing all related scopes
of work with the goal of appearing to have a low bid. The blame game continues, even in a
high-tech world with email, hyperlinks and FTP sites, there are still remains of the
bidder-tights. It is your role as a cost estimator to guard the assets of your clients by
breaking down the walls. Can you handle the truth?
Understanding the principles and structure of the related costing are keys to the
estimators role of costing for a complete and operable system. In order for the estimator
to know the depth of the value of the costing or the truth, he or she must learn to ask
questions.
Yes, a fair illustration of the process is like the Code Red in the movie a Few Good Men
in which there was a non-stated, secret execution order handed down by the general in
charge. A translation in estimators terms, a Code Red is a related scope of work not
clearly stated due to the complexity of the involvement of the various related items,
elements and components handled by the different specialty trades. The sworn secrecy of
silence by the related scopes of involved parties could lead to a pitfall for the cost
estimator and his or her clients in the form of change orders, time delays and poor
quality.
EARNED VALUE
MANAGEMENT (EVM)
(EVM.01) Earned Value Analysis - Why it Doesn't Work
Primary Author: Mr Joseph A Lukas PE CCE PMK Group
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 8:00-9:00/Conference Room F
Abstract:
Too often a company decides to implement earned value analysis on their projects, only to
find it doesn’t work. The quantitative technique still results in projects being over
budget and late so typically they call in a specialist for advice. Our presenter, Joe
Lukas, has consulted with clients on the use of earned value analysis, and in most cases
his advice is to not use EVA. Surprised? Joe teaches EVA and is telling most clients not
to use the technique! This talk will cover the Dave Letterman list of the top ten pitfalls
that can make EVA unsuccessful, and will describe possible corrective actions that can be
applied to your project to counter these hazards. By the end of this session you’ll
hopefully realize this really isn’t just another talk about using EVA but covers a
much larger and more important topic.
(EVM.02) Using EVM Performance Reports, Models, and Indices to Identify Problems Early
Primary Author: Mr. Gary Humphreys Humphreys & Associates
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 9:40-10:40/Conference Room F
Abstract:
Earned Value Performance Data Analyses and the use of the Data Indices began in the early
1970s. Over time, however, incorrect interpretation of the Data Indices and using the
Independent Estimate at Completion (IEAC) math models to replace a managers final cost
estimate have eroded senior managers confidence and the effectiveness of EVM Performance
Analyses.
This paper uses actual EVM data, advanced analysis techniques, and those indices that are
used by Government Program Managers to spot masking of performance data. The consequences
of misuse of the indices and what works better are explored to improve managers use of EVM
data.
Examples of advanced graphical EVM data extrapolations, proper use of indices, independent
EAC models, and independent schedule completion date models--all using actual Contract
Performance Reports are presented to demonstrate the validity of these analysis
techniques.
(EVM.03) ABC of Earned Value Application
Primary Author: Mr. Mark T Chen PE CCE
Co-author(s):
Audience Skill Level: Basic
Presentation Length: 1 Hour(s)
Time/Location: TUE 10:50-11:50/Conference Room F
Abstract:
Eared value management system is gaining popularity. However, the actual implementation of
earned value technique is still not widely spread. This is in part due to lacking a clear
understanding of the fundamental earned value concept and the real world practical
applications.
This paper addresses the basic concept and explains key terms in an easily understood
format. Tracking earned value is straight forward when physical quantities are available.
How to apply the earned value technique when physical qualities are non existent? Tools
will be introduced to track engineering deliverables. The earned value can be tracked
either in terms of dollars or workhours. What key factors influencing the selection of
using dollars or workhours to measure earned value of your unique application? Examples of
applying earned value management system to both engineering and construction progress will
be presented.
(EVM.04) Time is Money: Understanding the Root of All that is Good and Evil in
Construction
Primary Author: Mr Mike Debiak Carter & Burgess, Inc
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 1:30-2:30/Conference Room F
Abstract:
We all strive to improve our ability to manage and control projects. There are many
theories and even more software tools that claim to be the next best thing to fulfill our
objectives. The bottom line is to complete projects on-time, under budget, and at a
quality level in accordance with the contract requirements. The quintessential equation to
which the standard answer has always been, choose two. That hasn’t changed. The
objective of this presentation is to get back to the roots of how time and money play for
and against each other in our quest to achieve the ultimate goal attaining all three. The
presentation focuses on how EVM and related metrics can be used as a strategic tool in the
decision making process, from concept through project close-out, to provide better
information and help forecast results.
(EVM.05) Evolution of Performance Measurement Techniques
Primary Author: Mr. Hasani Widemond EVP Booz Allen Hamilton
Co-author(s): Mr Amir Moore A IBM Global Business Services
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 3:10-4:10/Conference Room F
Abstract:
This paper is about the application of the Performance Based Earned Value (PBEV)
technique. The PBEV is a refinement to Earned Value Management (EVM), just as EVM forty
years ago was the panacea to the challenges presented by the traditional performance
measurement technique Budget vs. Actuals.
Limitations have been identified in how projects have been measured and managed using the
EVM technique. The inability to fully evaluate and measure the status of the project
stimulated the interest of EVM practitioners and project managers. This interest led to
the discovery of creative means for measuring clients/business requirements from project
initiation through delivery.
The application of this technique will show the relationship between time-phased product
requirements and performance-based earned value metrics. System engineering tools and
methods will be used for developing the PBEV system for complex projects.
We will use a real project example for establishing a PBEV system and a how to approach
for tracking and measuring key performance parameters, as well as, EV metrics. The
tracking of KPPs and EV metrics will ensure quality and successful project delivery
(EVM.06) Summary Analysis of Earned Value Metrics in the Department of Energy
Primary Author: Dr John R Shultz US Dept of Energy
Co-author(s): Mr Jefferson Gordon Underwood National Nuclear Security Adm; Mr Richard J Denton US Dept of Energy
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: TUE 4:20-4:45/Conference Room F
Abstract:
The Department of Energy (DOE) manages many of the biggest, most challenging, and
technically complex projects ever attempted by the federal government. Also, DOE is
responsible for one-of-a-kind facilities that enable science experiments that have
resulted in the award of many Nobel and other science honors and awards.
In July of 1999, DOE announced the Project Management Reform Initiative, a department-wide
initiative to increase accountability and improve performance within the Departments
project management and control systems. The adoption of Earned Value (EV) principles by
DOE marks an important evolution in the management of costly and complex projects.
The purpose of this paper is to discuss the evolution of the EV process in the DOE,
present statistics from the department-wide EV database (called the Project Assessment and
Reporting System-PARS) and discuss how EV metrics affect the management of projects in
DOE.
(EVM.07) Producing Earned Value from a Geographic Information System where Scheduling
Tools were Impractical
Primary Author: Mr Mark Buell Parsons
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: TUE 4:55-5:20/Conference Room F
Abstract:
A munitions range cleanup project made traditional earned value (EV) analysis, based on
scheduled and budgeted progress, nearly impossible. Using a geographic information system
(GIS) instead of a scheduling tool proved highly effective.
The key to solving the EV dilemma came when the time basis of scheduling was replaced by
the spatial basis of a GIS. On munitions range cleanup projects (UXO, MRR), quantities,
cost, and progress are indefinite and subjective. The only knowns were the spatial (land)
areas, and the average anticipated cost for an area. For scheduling to be a useful tool
for EV, the work would have had to be broken into thousands of activities using a large
scheduling staff. Using the GIS, on this munitions response project, specifically for
advanced cost analysis provided a useful earned value analysis. Additionally, it provided
a graphic, spatial representation of progress, making the EV a highly useful
decision-making tool.
(EVM.S04) EVM for World Class Project Controls
Primary Author: Mr. Willem J. Viljoen ICC Marwillcor Project Controls SOUTH AFRICA
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 9:40-10:40/Conference Room G
Abstract:
With the latest development in planning software we may see a new generation of
cost engineers, By using the appropriate software planning package which is
aligned with the best practices as they appear in the PMBoK, one person controls
cost and schedule based on an agreed integrated work, organizational and cost
breakdown structure. The said software provides for less labor-intensive but
more accurate project controls.
Project managers are familiar with the
six elements that form the DNA of project controls, they’ve just not had the
support from planning software that is now available. Where companies are
currently paying for both planners and cost engineers, a single resource
equipped with the appropriate planning software to handle both competencies
makes more economic. Sense. However, the cost engineer may need from time to
time assistance from, a scheduler to assist him. I can see project and
construction companies in future making use of a pool of schedulers to support
their Cost Engineers.
HIGH PERFORMANCE/GREEN PROJECTS (HPG)
(HPG.01) Adaptation of Cost Estimating Validation Process (CEVP) to a Major Urban Renewal
Program
Primary Author: Ms. Veronica Ruth Bergs P ENG Waterfront Toronto CANADA
Co-author(s): Mr John J Reilly PE John Reilly Associates Intl
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 8:00-9:00/Windsor East
Abstract:
Waterfront Toronto (WT), an arms-length corporation funded by and accountable to city,
provincial, and national governments, is revitalizing 800 hectares of underutilized lands
adjacent to the Lake Ontario waterfront in central Toronto into sustainable mixed-use
communities. An initial step in this $17-billion endeavor involves delivering a
$1.75-billion program comprising brownfield remediation, civic infrastructure, and public
amenities. Innovative design approaches are being widely employed, interface management is
complex, and cost/schedule performance is being intensely scrutinized.
To meet these challenges, WT is adapting and enhancing the Cost Estimating Validation
Process (CEVP ) originally developed by Washington State Department of Transportation
(WSDOT) to quantitatively assess cost and schedule risk on individual transportation
projects. The process of creating risk-based range estimates for program components of
varying type, scale, and completion status, integrating estimates on a program level,
selecting budget and schedule targets, allocating project- and program level
contingencies, and communicating results to government funders is described along with
initial lessons learned.
(HPG.02) Cost and Energy Tradeoff in the Lifecycle of Construction Projects
Primary Author: Dr Jose Alberto Faria Florida International Univ
Co-author(s): Dr Yimin Zhu CCE Florida International Univ; Dr Tulio Sulbaran University of Southern Miss
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 9:40-10:40/Windsor East
Abstract:
Energy efficient homes and commercial buildings are very popular due to the savings in
electricity on the long run. However, these savings come to a price in the initial
investment, since materials with a higher thermal resistance are more expensive than those
with lower thermal resistance. It is sometimes unclear if the additional initial
investment is worth in the long run. This paper combines operation research methods with
financial concepts applied in construction management to identify the optimal selection
design for construction project considering the tradeoffs between cost and energy savings
during the lifecycle of the project. A mixed integer formulation combined with economical
analysis formulas will be used to find the optimal tradeoff curve between energy savings
and cost.
(HPG.03) The Cost of Sustainable Development
Primary Author: Mr Timothy J Guarnieri Fluor
Co-author(s):
Audience Skill Level: Basic
Presentation Length: 0.5 Hour(s)
Time/Location: TUE 10:50-11:15/Windsor East
Abstract:
This paper will discuss four questions regarding the projected costs to designing and
constructing buildings in a manner that is Sustainable or Green.
What is Sustainable Design? A brief description of what a Sustainability Development is,
how and who defines sustainability and why it is imperative to build in this manner.
What are the costs to build Sustainably? How are the costs measured for Green Building
Upgrades compared to similar non-sustainable construction? The initial investment cost is
reviewed and compared to the life cycle costing with ROI reviewed.
What is the rational to build Sustainably? Beyond the financial benefits, the intangible
non-financial benefits to clients of Sustainable projects are reviewed including the
potential cost to the Planet of not building sustainably.
What progress is being made worldwide? An overview of worldwide trends in the sustainable
building industry will be presented. This discussion will include the status of other
sustainable organizations around the world and a review of current private and government
sustainable research funding activities.
Finally, Conclusions will be drawn regarding the economic viable of sustainable
development with specific case studies including the World Trade Center Transportation Hub
project where I am Engineering Director as well as other relevant projects.
(HPG.04) Understanding Green Building Cost and Value
Primary Author: Mr Tavis McAuley Altus Helyar Cost Consulting CANADA
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: TUE 11:25-11:50/Windsor East
Abstract:
This paper considers the potential of engaging the development community as a primary
means of solving the environmental crisis. Specifically, it addresses how the principles
of sustainable design can be incorporated into communities and buildings while taking into
account the economic realities implicit with every successful project. Using case study
examples of recent projects where environmental stewardship was a primary consideration,
the thesis examines the relationship between sustainable design strategies and their
influence on both capital costs and the perceived value of the completed project. It is
proposed that a comprehensive understanding of the economic impact of sustainable design
is essential for clients to make informed decisions, given their environmental and fiscal
expectations.
GLOBAL PROJECTS (INT)
(INT.01) Economic Internal Rate of Return (EIRR) Estimation in Vietnam Hydro Power Project
Primary Author: Mr Li Kai Nanyang Technological Univ SINGAPORE
Co-author(s): Dr Robert Tiong Nanyang Technological Univ. SINGAPORE
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 5:45-6:45/Essex Ballroom
Abstract:
Vietnams renewable energy development is characterized by hydro power. This could be due
to both economic and geographic aspects. Another driving force is the added incentive from
the carbon financing to these developments. However, a key evaluation leading to
successful approval of investment is the estimation of Economic Internal Rate of
Return (EIRR). Although Asian Development Bank (ADB) has given guidelines, the estimation of
economic, financial, social and environmental benefits and to quantify these benefits have
to be based on local condition. This paper will present a case study of a recent
development of 28MW hydro power plant with option of carbon finance in central Vietnam.
The estimation of respective factors in EIRR, such as Willingness to Pay (WTP), shadow
price etc, with adjustment to Vietnam local provincial factors, will be discussed. And the
significance in carbon financing will be discussed also.
(INT.02) (Workshop) ICEC International Cost Model/Location Factor Workshop/Rollout
Primary Author: Mr. John K. Hollmann PE CCE Validation Estimating, LLC
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 8:00-9:00/Windsor West
Abstract:
The International Cost Engineering Council (ICEC) started developing an international cost
model/location factor product in 2007. A preliminary product will be ready to finalize at
this 2008 workshop. The product will include two standard model designs with quantities
one for a commercial building and one for a process plant. To simplify the effort, the
models are greatly simplified proxies for a full facility design. Going forward, ICEC
members from various regions and locations will be requested to estimate the cost of these
model facilities using local costs, productivities, allowances, etc. within given estimate
basis assumptions and guidelines. The resultant location factors and supporting
information will be published in an ICEC venue. The 2008 workshop will report on the
progress of the product (and hopefully initial results from beta testing), obtain comment,
and solicit volunteers to provide data going forward. Anyone dealing with global project
costs should attend.
(INT.03) A Roadmap for the Contractor Bid Process - An Equipment Manufacturers Perspective
Primary Author: Dr. Iqbal Noor PE CCE General Electric Corporation
Co-author(s): Mr Joe Martin PE General Electric; Mr. Alfred Carl Hagen III GE; Mr Tariq Cheema General Electric Corporation
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 9:40-10:40/Windsor West
Abstract:
Original Equipment Manufacturers (OEMs) are sometimes responsible for the full scope and
execution of projects beyond the sale of major equipment. In this extended role, they are
responsible for the procurement and management of Engineering and Construction contractor
services. This paper will focus on the key steps in the preparation and evaluation process
used in the selection of construction contractors for one of the worlds largest OEMs.
Key process steps including the preparation of bid documents, fair value cost estimates,
bid evaluation reviews, and bid award will be discussed. The importance of labor,
material, and equipment market surveys and the examination of labor craft mix and their
projected productivity in the contractor selection process will be presented. Furthermore,
the use of risk management processes to set contingency amounts will also be discussed.
Where applicable, lessons learned from the execution of similar projects in different
geographical locations will be presented.
(INT.04) Managing International Contract Administration
Primary Author: Mr Niall Reynolds TACA International
Co-author(s):
Audience Skill Level:
Presentation Length: 1 Hour(s)
Time/Location: TUE 10:50-11:50/Windsor West
Abstract:
This paper is based on the Contract Administration aspects of large international
construction programs in the Petrochemical, Public Infrastructure, Leisure and
Semi-Conductor industries.
Cost Engineers and/or other members of the project management team not used to dealing
with once off, large, complex, multi-layered, cross-cultural, international, construction
programs will find this paper of interest. It will be of particular concern to those who
are dealing with, but not limited to:
- Differing international v local industry norms
- Different business practice (s) depending on contracting strategy(ies) within the same
program
- Language difficulties within Project Teams and the workforce
- Cultural differences that impact behavioral relationships
- Currency fluctuations in the world market
- Time zone and physical distance
- Infrastructure differences (e.g. broadband, electricity, roads, etc)
I have seen benign aspects of Contract Administration threaten major construction
programs. The majority of the root causes can be eliminated. This paper describes how
these situations come about and will give examples of how some of them were fixed. It will
also suggest an approach as to how they can be avoided.
(INT.05) Estimating International Hydroelectric Projects
Primary Author: Mr. Paul Martin Hewitt International Project Est CANADA
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 1:30-2:30/Windsor West
Abstract:
This paper includes a review of the steps involved with estimating heavy civil
hydroelectric projects. The review will begin with a review of a typical WBS for a major
international hydroelectric project. The Civil work will includes the steps involved with
estimating Cofferdams, Diversion Tunnels, Dams, Dykes, Spillways, Intake Structures,
Penstocks, Powerhouses, and Tailrace Channels. The Water to Wire component of the projects
includes estimating Turbines, Generators and Power Transformers. The Mechanical and
Electrical components includes estimating Gate, Trashrack and Stoplog structures, Overhead
hoisting as well as Mechanical and Electrical Balance of Plant. The paper will also deal
with the unique challenges of constructing these projects in remote locations including
labor camps and travel requirements.
(INT.06) Construction Labor Productivity in Developing Countries
Primary Author: Dr Enno Koehn PE Lamar University
Co-author(s): Mr C Reddy Guntuk Lamar University; Dr. James F. Koehn Chadron State College
Audience Skill Level: Basic
Presentation Length: 0.5 Hour(s)
Time/Location: CANCELED
Abstract:
This paper reports on a study of factors affecting productivity among members of the
construction workforce in developing countries such as India. Economic and
socio-psychological factors that affect labor performance and are of increasing importance
in a developing country are evaluated and discussed. Construction labor productivity is of
great interest to international projects as it affects project cost and time overruns.
Therefore, up-to-date cost and production data for the construction of various
international projects should be readily available for estimating, project planning and
bidding purposes. The costs of construction projects in developing countries related to
material, labor and equipment expenses are evaluated and compared to that of a developed
country, USA.
The findings should assist constructors working on international projects during the
planning process to achieve the desired estimating, scheduling, quality, cost
effectiveness, duration and updating of construction projects.
(INT.07) Steel Construction Costs for Early Project Phases, Germany
Primary Author: Mr Christopher Hagmann University of Stuttgart GERMANY
Co-author(s): Dr Christian Stoy University of Stuttgart GERMANY; Ms Nannette Terashima University of Stuttgart GERMANY
Audience Skill Level: Basic
Presentation Length: 0.5 Hour(s)
Time/Location: TUE 3:45-4:10/Windsor West
Abstract:
Construction costs are relevant success factors of building construction projects. Most
efficiently, the design and cost decisions are made already in the early project-phases.
Thereby, reliable sources of cost indicators are required when proposing economic
alternatives. With rising steel prices, ArcelorMittal together with UNTEC and CEEC
developed a steel construction cost information and performance (kg/m) database for use by
French planning institutions. After years, a similar product is about to be introduced to
the German market. As both countries work with different standards, however research on
the German steel construction data is required to develop a similar database for the
German market. In this field-research, feedback from 200 institutions and companies
(grouped into framework, floor, roofing, facade etc) will be statistically analyzed and
the results compared with the French data. This is the first study in a series to be
carried out in the next few years around Europe.
(INT.08) Making Investments in Russia. Mega-Projects: Cost Deviation Factors (On Example
of Sakhalin-2 Project)
Primary Author: Mr Aleksey V Ferentsev Sakhalin Energy Investment Co RUSSIAN FEDERATION
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: TUE 4:20-4:45/Windsor West
Abstract:
Russia represents a rapidly developing market, which attracts lots of venture money.
Especially taking into account wealthy natural resources of 1/6 of the firm global ground,
it makes biggest international oil and gas companies to invest billions of dollars in
major hydrocarbon fields development in Russia.
These ventures had commenced just recently, but some big lessons can already be learned.
>From cost management point of view the biggest interest is laying in the area of
identifying factors, which caused noticeable deviations from original plan.
On example of Sakhalin-2 Project (joint venture of Gazprom, Shell, Mitsui, Mitsubishi) we
will define the cost increase factors and identify their weights. We will also conclude
what preventive actions could be done to control the risks.
This all should help cost engineers and estimators to increase project cost effectiveness
when doing their job in complicated environmental and political conditions.
(INT.09) Owner-CM-Contractor 'Silver Fox' Jump-Start SWAT Teams
Primary Author: Mr Earl T Glenwright Jr PE PSP A.S.S.I.S.T.
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: TUE 4:55-5:20/Windsor West
Abstract:
The most time-wasting period of a project is at the beginning after either a CM or
Construction contract has been signed. This is especially true for off-shore projects when
recruiting the project team can take months resulting in the team starting out behind the
curve and trying desperately to catch-up.
In the initial period there is much organizational and homework to be done as well as
critical decisions made that set the destiny of the project.
To bridge this period, an experienced silver fox team can jump in on day 2 because they
have been on standby and can implement the up-front tasks regarding policy-practices,
constructability review, contract specifications, master planning and pre-construction
schedule framework preparation, budget analysis, implementing long-lead time procurements,
communication systems, as well as on-site staff offices and housing amenities.
This small 5-8 person team, who are well known to each other both professionally and
employment-wise, can move quicker due to their knowledge and experience about what works
and what is needed to be done ASAP.
While this is not a low expense team, its duration is short and the return on the
investment high.
A 36-month construction project can accelerate to a 30-month duration when things begin to
roll on day 2.
(INT.10) Project Management Approach of the European funds 2007-2013 for Romania
Primary Author: Dr Nicolae Postavaru Technical Univ. Of Civil Engrg ROMANIA
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 5:30-6:30/Windsor West
Abstract:
In Romania, ICEC is represented by the Association for Management, Consulting and
Technology in Construction, and IPMA is represented by Project Management Romania. Both
professional associations want to promote cost engineering and project management in the
investment programs of the European Community. Since 1st January 2007, Romania became a
member of this community and so, as other countries: Spain, Portugal or Greece did,
benefits of post funds adhesion, which for this period are about 19 billions Eur. (over 25
billiards dollars). These funds cover various domains, and in the article it is
illustrated their importance for both: investors and firms. The author of the article
provides consulting services for those who want to access the European funds, and he may
respond to any questions regarding the approach of the projects.
(INT.11) Methodology for Field Appropriation of
Detailed Estimates
Primary Author: Mr. Paulo Roberto Vilela IBEC BRAZIL
Co-author(s): Mr. Orlando Celso Longo Federal University Fluminense BRAZIL
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: WED 2:10-2:35/Essex Ballroom
Abstract:
It is presented methodology for field appropriation of analytics compositions for budget
constructions and engineering services. In our days, where the competitively between
corporations is more and more close, this procedure takes the elaboration of more
consistent payments and makes more easy the obtaining of constructions throughout minimum
budgets, because that gives the constructor company the permission of knowing it's real
cost.
Many are the sources where are found statistics and data with done cost compositions, but,
the adoption of this procedure takes a big risk.
However, it's indisputable that there isn't better source than the worked aferation made
by the own construction company. So, we present this methodology for the companies
utilization in any case.
It's important to a firm that this procedure presents a little cost, being possible to be
adopted by any kind of company.
(INT.12) Procurement Challenges in the UK Oil and Gas Sector
Primary Author: Dr M. Fadhil Mohammad MARA Univ of Technology MALAYSIA
Co-author(s): Dr Andrew Price Loughborough Univ UNITED KINGDOM
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: WED 2:45-3:10/Essex Ballroom
Abstract:
The oil and gas sector is continually seeking better solutions to overcome the emerging
challenges such as the need for procurement strategies based on new values and contextual
factors such as multi cultural complexities. Different regions have different
technological, cultural, geographical, production and managerial challenges that need to
consider. The UK North Sea (UKNS) for example, have to deal with critical situations such
as high operational and production costs with the depleting volume of its oil and gas
production. The aim of this paper is to uncover how major UK players in the sector are
dealing with current procurement challenges in difficult and changing regional and
business environments. This paper summarizes case studies conducted in the UK with three
prominent players in the sector. The results include lessons learnt and the different
innovative management and procurement approaches adopted by these players and agency to
improve current practices in order to face new challenges.
IT/IM IN PROJECT AND
COST MANAGEMENT (IT)
(IT.01) Designing a Cost/Schedule Application for Current Day Project Execution
Primary Author: Mr. Ian C. Simpson Bechtel
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 1:30-2:30/Windsor East
Abstract:
An aging, reliable cost control application needed to be replaced. The approval process
included a 360 degree review, not only with users but customers and suppliers of data
processed by the tool. Given certain essential requirements, buying an application to suit
all was impossible in a multi-business line corporation. Evaluating commercial
applications revealed gaps in functionality for which costs were added to the TIC which
was significantly higher than developing a single bespoke application.
Key factors included changing methods of project execution, use of multiple offices to
maximize value in lower net cost locations, and opportunity to add value in change
management, quantity tracking and forecasting processes the result being an integrated
tool, minimizing data entry while maximizing integration with other applications.
This paper highlights the major drivers to re-develop the application, gaps in commercial
software, and key factors for success and illustrate benefits derived from building the
complete tool.
(IT.02) Development and Implementation of Collaborative & Integrated Cost Management
Tools in a Global Energy Company
Primary Author: Mr Robert E Stein General Electric Corporation
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 3:10-4:10/Windsor East
Abstract:
GE Energy’s Power Generation business has completed the 2nd phase of a
multi-generational plan to implement an integrated and collaborative toolset for the
development of a complete power generation proposal, from bid development through project
implementation. GE has integrated a customized version of a commercially available
Enterprise Cost Management and Estimating System with an in-house developed Web-based
Proposal Development Tool.
The integrated system replaced a major Legacy Estimating System developed in the early
‘90’s, and many other standalone tools that have met their "process
entitlement". The Web-based Enterprise Suite of tools seamlessly integrates with
Finance, Engineering and Sourcing modules.
This paper will discuss the functionality and development of 2 of the modules, which were
launched in March 2006, and currently in full production. The modules consist of the
Project Estimating Module, and a second component, which is a Web-Based Proposal
Development Tool. GE Energy has completed the 2nd phase of the multi-generational plan,
which will allow for expansion of the tools to other Energy Sectors including Wind, Hydro,
Aero, and IGCC.
(IT.03) Web-Based Electronic Tendering - UK Practical Experience
Primary Author: Mr. Joseph L. N. Martin Building Cost Information Svc UNITED KINGDOM
Co-author(s):
Audience Skill Level: Basic
Presentation Length: 0.5 Hour(s)
Time/Location: TUE 4:20-4:45/Windsor East
Abstract:
RICS launched a web based electronic tendering service for use by its members, and others
procuring buildings, in October 2007. The paper will report the background to the setting
up of the service and its first few months of operation and will include:
- Previous practice
- Experience of clients representatives
- Experience of contractors
- Any problems encountered
- Lessons learned
- Future plans
The service is being offered against the background of an industry where notwithstanding
that all documents are originated electronically, 75% of projects are tendered by
exchanging printed documents and half the contractors pricing documents are priced by
hand.
(IT.04) Improving the Tender Stage through Integrating Collaborative Extranet with Project
Integrated Databases
Primary Author: Mr Maher Ajam DG Jones & Partners ME Ltd LEBANON
Co-author(s): Dr Mustafa Al Shawi Salford University UNITED KINGDOM; Dr. Toufic Mezher American University of Beirut LEBANON
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: TUE 4:55-5:20/Windsor East
Abstract:
The management of the construction industry is exponentially increasing in complexity
since it has to deal with highly fragmented, complex and unique combinations of business
relations, communications and processes. Each phase in the construction cycle requires
effective communication/ sharing of information/knowledge as well as coordination among
project participants and stakeholders, thus leading to timing and technical content
transfer enhancements and/or problems as well as related efficiency and/or profitability
loss. Recent advances in the Information and Communication Technology (ICT) are considered
essential and promising in improving sharing/exchange of project information as well as
communication among construction industry stakeholders whilst reducing associated costs
and time.
One facet of such advances in ICT is evident from the proactive indulgement of the
construction supply chain in collaborative extranets. Extranets are able to capture the
supply chain communication practices and provide a controlled communication hub as well as
document management databases with all ICT enhanced features. In parallel, the
construction industry has recognized the importance of sharing and exchanging project
information across the supply chain through project integrated databases. However, such
advancements in the ICT utilization in construction industry were unable to develop a
system that exchanges/shares project information, at the element level, over a well
defined matrix of communication that can also integrate into the business processes of the
members of supply chain.
The objective of this study is to highlight the needs to bridge this gap through the
development of an augmented process model which will enable integrated databases to
support collaborative extranets at the Tender stage. This paper will discuss the features,
limitation and nature of the process and information models which can be integrated into
the core business processes of the construction supply chain members. This is basically
achieved by investigating the communication processes and information exchanged across the
supply chain during the construction tendering phase.
OWNER ISSUES (OWN)
(OWN.01) Owners - Make Your GMP Contract Work Effectively
Primary Author: Mr. W. Doug Creech CCC Carolinas Healthcare System
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 8:00-9:00/Windsor West
Abstract:
Guaranteed Maximum Price (GMP) contracts allow an owner to start work on a project without
waiting for complete design while simultaneously providing some upside cost protection.
However, the standard AIA (American Institute of Architects) contracts, as written, have
several pitfalls. These include 1) a lack of specificity as to what labor burdens are
allowed, 2) inadequate change order procedures, 3) no clear requirements on the
administration of the subcontractor buy-outs, and 4) weak controls reference contractor
participation in bids for, and the ultimate execution, of self-performed work. Owners can
modify the standard AIA A111 (GMP contract between owner and contractor), and the
companion A201 (General Conditions) documents, to improve their effectiveness. However,
this alone will not suffice. Owners must appreciate the importance of good financial
administration of the contract. When well drafted and administered, the GMP contract can
be an owners contract of choice.
(OWN.02) Lessons Learned on Reducing Change Orders
Primary Author: Ms Jacqueline Therese Doyle PMA Consultants
Co-author(s): Mr J Michael Molnar PMA Consultants
Mr. Robert B Brown PE PMA Consultants LLC
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 9:40-10:40/Windsor West
Abstract:
Change Orders are an inevitable part of the construction process everyone involved in
construction knows that they are coming and dislikes dealing with the typical
confrontational environment that they frequently generate. Yet, most owners and their
project managers receive little or no training in how to avoid unnecessary Change Orders
or how to effectively and efficiently manage the Change Order process for legitimate
changes in the scope of a project. This paper examines specific lessons learned on recent
projects and offers recommendations on how to reduce the number and magnitude of Change
Orders and how to painlessly manage the Change Order process. The authors analyzed the
records of typical projects they worked on in the school and hospital industries and
classified the Change Orders into category type. The results of the analysis indicate that
there are specific steps that, if implemented, should reduce the number of Change Orders
on the project.
(OWN.03) Change Management During FEED - Owner's Case Study
Primary Author: Mr. Vijay S. Jambhekar BP North America
Co-author(s): Mr. Stephen D. Weeks BP North America
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 10:50-11:50/Windsor West
Abstract:
Starting in the mid to late 1990s, owner project teams have started to follow a more
structured process for project development or Front End Engineering Design (FEED) process.
We will explain FEED and as well as the common approach to stage gate processes currently
in use. We will discuss how project funding is reviewed at the end of each stage and the
importance of trending the cost estimate during project development.
Kbase was used to model a new facility to be built with a combination of new and existing
technology. A change management procedure was used to provide updates to the model.
We will show the advantages and disadvantages of this process. We will explain why it
should be used. We will also explain what it means to suppliers, especially EPC
contractors, and what role all members of project team will play to support this effort.
Systematic approach to trending and / or management of change (MoC) will help the owner
avoid cost surprises during project development leading up to full funding.
(OWN.04) Impact Costs Litigation in Montreal’s Mega-hospitals
Primary Author: Dr Jean-Claude Huot PE Dr Jean-Claude Huot & Assoc CANADA
Co-author(s):
Audience Skill Level:
Presentation Length: 1 Hour(s)
Time/Location: WED 1:00-2:00/Windsor West
Abstract:
Major Projects have a tendency to be realized in sequential procurement packages. Because
owners in certain type of projects, like the two Montreal's teaching megahospitals, have a
preference to accommodate "the latest" relevant innovation, R&D plays a
vital role, often to the detriment of a total quality function deployment.
How the "public-private partnerships" of the two Montreal's megahospitals will
deal with their volume of design changes after construction start? Design changes will
produce impact costs that will have to be litigated at the end of the project. The danger
is that some contractors will go bankrupt if they do not protect their back in tracking
continuously the causality of design changes on productivity and quality,
Another observation: the 1976 Montral Olympic deficit, was completely paid in 2006, on
account of the Olympic lottery and a special tax on tobacco (3 billion CAN$), the two
weeks Olympic party cost nothing to the taxpayers. Without a Mega lottery, the two
megahospitals, a totally unsound duplication, could become a 6 billion CAN$ economic
catastrophe after 2013.
(OWN.S02) Five Simple Steps to Better
Capital Planning
Primary Author: Mr. Bruce A. Lower Pathfinder, LLC
Co-author(s):
Audience Skill Level: Basic
Presentation Length: 1 Hour(s)
Time/Location: WED 2:10-3:10/Windsor West
Abstract:
The paper conveys the experiences of the author during recent
implementation of portfolio planning methodologies for a major global
manufacturing company. Real-life examples of simple yet effective
techniques that produced achievable capital spending plans in support of
business goals will be cited.
Included in the topics discussed will be root-causes of prior failures to
produce achievable plans, the impacts of these failures, and steps taken
to correct these deficiencies.
Techniques discussed will be relevant to owners finding themselves in the
all too common position of watching their portfolios fall well short of
goals for both spending and asset turnover. Cost planners will find the
methods described useful in avoiding the traditional "4th Quarter Rush" to
jumpstart previously unplanned projects and artificially accelerate
spending on projects in a less-than-cost-effective manner just to meet
year-end spending goals.
This paper is aimed at those interested in breaking the yearly cycle of
portfolio failure.
PROJECT MANAGEMENT (PM)
(PM.01) Project Management, Cost Engineering, Project Definition, Action Plans or What?
Primary Author: Mr. Kul B. Uppal PE Conquest Consulting Group
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 8:00-9:00/Conference Room G
Abstract:
With our ever changing environment, we are all well aware that there are numerous
characteristics that can be used to classify types of Cost Estimates. The most significant
of these are degree of Project definition, End usage of the estimate, estimating
methodology and the time and effort needed to prepare the estimate. This paper will
discribe the classes of estimates based on project definition along with the appopriate
classes or phases of project management process (PMP) in establishing all the deliverables
and how the management Action Plans can help the Project team in the project definition
process. As part of action plan - Obligations, Decisions or Issues will be discussed in
detail. An action plan can help keep track of all pass gate documentation - thus providing
the sponsor and project team an opportunity to review and evaluate the project at the end
each class or phase.
(PM.02) Mega-Project Control: Effective Program, Project, and WBS Granularity Decisions
Primary Author: Mr. Paul Verveniotis PE Skire Inc.
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 9:40-10:40/Conference Room G
Abstract:
Structuring of mega-projects for effective project control can be as much
art as science, and is influenced by many factors. Excessive breakdown
causes unnecessary overhead to project administration with little
additional benefit to project outcome. The project controllers challenge
is architecting the balance between complexity and reporting visibility
for the most cost-effective management. Granularity influences include
project physicality, number of design entities, contract strategies,
procurement methodology, and even available staffing.
Granularity changes as a project matures, and the projects entropy always
increases. Project phases also serve as gates where granularity jumps
occur. This study investigates these influences and provides guidelines
for future projects. We will examine the largest privately funded capital
project in progress in North America as a case study, and highlight the
decisions made through this mega-projects execution.
(PM.03) Managing Evidence Preservation at a Construction Accident Site
Primary Author: Mr. John R. Spittler PE PMA Consultants LLC
Co-author(s): Mr. Robert B Brown PE PMA Consultants LLC; Mr John F Lattyak PE PMA Consultants
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 10:50-11:50/Conference Room G
Abstract:
Project management applied to a construction project is normally a straightforward
process. However, when confronted with a construction stabilization project (post
accident), specialized procedures must be adapted to comply with specific insurance and
legal considerations. The typical situation is characterized by a project that is at a
standstill due to accidental death of one or more workers during construction, alleged
safety violations at the site, potential designer and/or constructor liability, and
adversarial relationships among all parties (owner, designer, contractor, subcontractors,
suppliers, etc.) A Court-ordered protocol is typically established that requires liability
insurance providers to engage a construction management professional to manage the
performance of specific post-accident work that makes the premises safe, allows for
adequate and necessary forensic investigation, documents existing conditions and preserves
evidence, allows evidence to be removed and relocated in a specific fashion for ongoing
investigation, and allows parties to determine how to proceed with completing the project
(e.g., whether to perform remedial work or demolish and start anew). This paper examines
specific lessons learned in all aspects of project management including: coordination,
communication, document control, laser scan surveying, procurement, scheduling, cost
control, safety, site control and security.
(PM.04) Linking Project Controls Implementation Planning and Project Success: The Northern
Canadian Mining Projects Lessons
Primary Author: Mr Akinlolu Isaac Oni CCE BHP Billiton Diamonds Inc CANADA
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 1:30-2:30/Conference Room G
Abstract:
Effective project controls consists of execution plan, time control, cost estimating and
control, risk management, document control, scope and change control, progress
measurement, and status reporting, using appropriate tools, procedures and systems.
This paper reviews key lessons learned on major projects executed in Canada's arctic,
around human resources, planning and budgeting, engineering and scope development,
procurement (purchasing, logistics and contracts) and construction, and summarizes the
impact of project controls implementation plan on the projects outcomes. Findings show
that systematic interactive planning, development of a well-rounded, yet inclusive,
project controls implementation plan (encompassing people, tools, procedures and systems)
and superior human resources strategy help deliver successful arctic projects.
With the anticipated sizes and types of future projects in the arctic, it is expected that
project teams would take a cue from the lessons learned on past projects and develop
appropriate project controls systems in a manner that enhances successful project
outcomes.
(PM.05) Validation - Success Key in Lump Sum Projects
Primary Author: Mr. Madhu P. Pillai CCC S A Kent Company Ltd SAUDI ARABIA
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 3:10-4:10/Conference Room G
Abstract:
The very first response from an assigned project manager on any job is more than likely to
be negative on the bid pricing, and project will be described as one of those potential
commercial disasters from the day one. However what these project managers generally fail
to understand and appreciate is the necessity of a proper and formal validation exercise,
followed by many re-validations in logical intervals to assess and re-assess the project.
This paper discusses some important aspects of the validation exercise with strong
appreciation for the constraints of the Business Development / Sales department during the
preparation of original estimate for the bid.
(PM.06) Time is Money: Top Ten Targets for Improving Construction Productivity
Primary Author: Dr Janaka Y Ruwanpura University Of Calgary CANADA
Co-author(s): Dr George F Jergeas P ENG University Of Calgary CANADA
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 4:20-5:20/Conference Room G
Abstract:
Construction performance and productivity improvement are key focus areas in any nation's
construction industry as construction industry's contribution to national economy is
substantial. However, the decline in construction productivity across the world has been
reported by many researchers and organizations. Therefore, it is very important to find
practical solutions to improve construction performance and productivity focusing on labor
and management issues to save billions of dollars and make construction a professional and
attractive business. The paper outlines the current research directions and strategies of
the Top Ten Targets research project that includes both soft and hard issues of
productivity improvement. The targets include motivation, supervision, integration,
materials management, work practices, optimization, communication, scheduling, changes and
weather related issues. The paper also includes the recent applications of research
deliverables that had improved the tool time and productivity of construction projects.
(PM.07) Project Management Office (PMO) – Principles in Practice
Primary Author: Mr. Jose Angelo Santos do Valle IBEC-Brazilian Inst. For CE BRAZIL
Co-author(s): Dr Wainer da Silviera e Silvia Federal Univ Fluminense BRAZIL; Dr Carlos Alberto Pereira Soares Federal Univ Fluminense BRAZIL
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 8:00-9:00/Conference Room G
Abstract:
PMO Project Management Office, is an emerging relatively new concept which has become a
global phenomenon reaching the structure of organizations all over the world.
This study presents an updated discussion on the role of PMOs in modern and competitive
organizations. Such discussion brings a view of advantages and disadvantages, difficulties
and benefits, as well as problems and solutions for this new organizational structure. It
explores relevant and current aspects of both structuring and implementing different kinds
of PMOs at different organizational levels.
Finally, in conclusion, we highlight the reasons why the essence of these new principles
for a project management structure - although highly challenging due to the application of
new concepts - brings such a powerful stimulus for project management best practices, that
it will probably be in place for continuing evolution over the years to come.
(PM.09) Does Standard Project Management Data Provide Useful Information for Portfolio
Management Review and Decision Making?
Primary Author: Mr Caoimhin Ardren AUSTRALIA
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 10:50-11:50/Conference Room G
Abstract:
Recognition of the importance of effective project portfolio management, has led to a
growing trend to implement Enterprise Project Management toolsets at great expense and
effort with the expectation of generating comprehensive project and cost management
reports for improved control and decision making for a portfolio of projects.
This paper investigates the effectiveness and appropriateness of the information generated
and explores alternative approaches. The study will evaluate the processes used to create
a number of project and cost reports in organizations to establish the ability to provide
timely, credible and intelligent information. Other factors considered include the impact
of organizational maturity, project manager ownership of aggregate reports and the
influence of differing drivers /perspectives.
This paper will inform asset managers of the key processes and components required in an
effective portfolio reporting system.
Preliminary findings challenge the accepted practice of creating and presenting portfolio
reports by aggregating project management data.
(PM.10) Evaluating Best Practices for Oil
Sands Projects
Primary Author: Mr James Peter Lozon P ENG University of Calgary CANADA
Co-author(s): Dr George F Jergeas P ENG University Of Calgary CANADA
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 1:00-2:00/Conference Room G
Abstract:
We surveyed over 200 project professionals and conducted detailed one-on-one interviews
with senior project professionals in the oil and gas industry to determine how Value
Improving Practices (VIPs) and Best Practices (BPs) are used in large scale oil sands
engineering and construction projects and the impact these practices have on project
outcome. Although approximately one-half of the project professionals were unfamiliar with
VIPs and BPs, these professionals were aware of practices used within their organizations
that addressed similar areas. VIPs and BPs should be incorporated into the project
execution plan and be used by the entire project team. The consensus was that VIPs and BPs
had a positive effect on project outcome but few organizations directly measured this
effect using quantitative metrics. The impact of VIPs and BPs on project outcome can best
be described in qualitative terms such as improved project definition, schedule awareness,
optimized costs and enhanced quality.
(PM.11) Promoting Power Plant Construction Project Productivity
Primary Author: Dr Johannes E Picard PA Innovators Corp
Co-author(s): Mr John Hutcheson Duke Energy Corporation
Audience Skill Level: Basic
Presentation Length: 0.5 Hour(s)
Time/Location: WED 2:10-2:35/Conference Room G
Abstract:
On power plant construction and maintenance projects, labor is the greatest risk factor
and the greatest opportunity. In recent experience with contractor alliances, labor
productivity is the focus of continuous improvement. All activities must add value, and
efficiently performed. Its proven useful to drill down to and measure actual work
activities during project execution.
This paper demonstrates that consistent implementation of independent work measurement by
sampling (or, more precisely: activity sampling), analysis and reporting meets the
criteria for objective, reliable benchmarking of the work process. The practice is
described and results presented that show that over the past five years, labor
productivity has increased some 30 to 40 percent on major Clean Air construction projects.
(PM.12) The Industry's Perspective on Workforce Planning for Major Projects
Primary Author: Mr. Lloyd Kenneth Rankin Ascension Systems Inc CANADA
Co-author(s): Mr. Tim Slootman Univ of Twente NETHERLANDS; Dr. George F. Jergeas P.Eng
University Of Calgary CANADA
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: TUE 5:30-5:55/Conference Room G
Abstract:
We conducted a validation study (2006) on the principles presented in the workface
planning model, as developed by the Construction Owners Association of Alberta. The model
addresses the effective implementation of detailed execution planning in major projects.
The study is based on a questionnaire, responded by 212 representatives of the Albertan
oil and gas industry (716 invitations). Implementation of workface planning should
contribute, but is not limited to: reduction of the non-productive, non-value adding time,
and improvement of the constructability of design. Conclusion is that a majority of
respondents agree that workface planning contributes to better project execution. Major
findings include the project management team must ensure that planning remains a support
function for construction: execution responsibilities must remain with the (general)
foreman, and the roles of the different stakeholders during the project development stages
require further clarification.
PLANNING AND
SCHEDULING (PS)
(PS.01) Business Rules in CPM Scheduling Software
Primary Author: Mr. Abhimanyu Basu PE PSP Basu Technology Inc
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 10:00-11:00/Conference Room C
Abstract:
We are entirely dependent on commercial software for CPM scheduling calculations. The
mathematics of linear algebra used to perform critical path calculations have been
replaced by various computations performed by the software. The situation has been further
complicated by broadening the role of the software from CPM calculations to time and
record keeping, progress reporting, budget, financial and accounting chores. Software have
evolved to incorporate various algorithms embodying rules for conducting business. These
calculations are opaque with inadequate documentation for verification and validation by
independent auditors.
This article explores the rules embedded in scheduling software and discusses why we need
to be aware of them and how to deal with them. The article identifies three modes in which
business rules are integrated into the software, the types and degrees of flexibility and
options associated with each mode and how the rules govern the outcome of the results
generated by the software.
(PS.02) Schedule Design Planning for
Schedule Development
Primary Author: Mr Christopher W Carson PSP Alpha Corporation
Co-author(s): Mr Patrick M. Kelly Alpha Corporation
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 11:10-12:20/Conference Room C
Abstract:
Schedules are rarely designed, but rather developed immediately without thought for the
end result. Schedulers focus on the mechanics of schedule development while the reason for
the schedule in the first place is ignored. Decisions such as level of detail, reporting
needs, end user needs, abilities and needs of the input user, are allowed to develop as an
offshoot of schedule development.
Proper schedules address project management needs coordinated with specifications,
providing accurate predictions with appropriate detail to ensure a nimble yet accurate
management tool. Such schedules are not thrown together they must be intentionally
designed. Schedule design is more important than schedule development, a technical
function performed by any competent scheduler. Just as projects need to be planned,
schedules need to be planned to ensure the right product delivery to the stakeholders.
Many people ignore the fact that building a schedule is a project in itself.
This paper provides a detailed approach to schedule design, with a
checklist and question and answer approach that leverages planning time
into a good layout for the full schedule development process. This yields
significant benefits by achieving project team buy-in at the schedule
design level, and ensures that the fully developed schedule will meet all
participants needs, from superintendent to end user of the project.
(PS.03) (Panel Discussion) The Great Debate III: Who Owns Float?
Primary Author: Mr Edward E Douglas III CCC PSP ACTPMA LLC Consulting
Co-author(s): Mr. Donald F McDonald JR PE CCE PSP Fluor Enterprises Inc; Mr. Ronald M. Winter PSP Ron Winter Consulting LLC; Mr. Timothy T. Calvey PE PSP Calvey Consulting LLC; Mr. Michael R. Nosbisch CCC PSP Parsons Infrastructure & Tech
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 1:50-2:50/Conference Room C
Abstract:
Who owns schedule float is a question often discussed, but seldom resolved to anyone's
satisfaction. The Great Debate III is a Planning & Scheduling Committee panel
discussion from Owner and Contractor perspectives.
Owner's often view Float as a shared / project resource. Further, any delays to
non-critical path activities are "no harm, no foul" events that do not allow a
contractor to ever recover damages for time lost or money expended the result of float
consumption delays. The Owners worst case is that the project owns float (joint
ownership), with its best case owning float.
Contractor's view float as theirs to manage its resource utilization and work flow.
Further, if an Owner causes float consumption delays, then to the extent the Contractor
incurs costs or time as a result, it is a compensable event. The Contractors worst case is
that float is jointly owned, with its best case owning float.
(PS.04) Update on RDM 2007
Primary Author: Mr. Fredric L. Plotnick PE EnProMaC Inc
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 3:25-4:25/Conference Room C
Abstract:
The ADM Arrow Diagramming Method of CPM was introduced in 1957 50 years ago. The PDM Precedence Diagramming Method of CPM was introduced in 1964. The RDM Relationship Diagramming Method was introduced in 2005 by Fredric L. Plotnick in the 6th edition of CPM in Construction Management, O’Brien and Plotnick, McGraw-Hill. Presented to and refined by member feedback at AACE and PMICOS, this session will discuss the evolving standard and discussions with Primavera Software Systems for implementation.
The guiding principles of RDM are to record and incorporate into the CPM computer algorithm information relating to restraints and events and better defining activities and durations. Key features of RDM permit the project team to distinguish between physical restraints and resource restraints, highlight restraints where the ball is passed between crews, jobsite locations and other situations requiring greater management supervision, and introduces new attributes such as Just-in-Time Start, Finish and Float.
(PS.05) Linear Scheduling Fundamentals for Cost Engineers
Primary Author: Ms. Carla Lopez del Puerto CCC Southern Illinois University
Co-author(s): Dr Douglas D. Gransberg PE CCE University Of Oklahoma
Audience Skill Level: Basic
Presentation Length: 1 Hour(s)
Time/Location: MON 4:35-5:35/Conference Room C
Abstract:
Cost engineers usually have a solid background in critical path scheduling. However, this
is generally not the case with the linear scheduling method. Linear scheduling has been in
use for several decades in the heavy civil construction industry as a tool to plan linear
work sequencing. It is starting to be accepted as a powerful tool to analyze delay claims
and as a result, cost engineers are finding that they must now to learn how this
methodology works and how it relates to classic CPM schedules. The objective of this paper
is to provide and overview of what linear scheduling is and how it operates. The process
of preparing a linear schedule is best explained by example problem. Therefore this paper
uses a utility line example to illustrate both the major concepts of linear scheduling and
the process for developing a typical linear schedule.
(PS.06) The Problem With Hiring A Scheduler
Primary Author: Mr John P. Buziak PE Critical Path Mechanics LLC
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 8:00-9:00/Conference Room C
Abstract:
We have the cheapest most capable computers in the history of the world and Project
Management software to match. Great organizations such as the Project Management Institute
and The Association for the Advancement of Cost Engineering are trumpeting the benefits of
Network Analysis Scheduling. Yet, below the highest levels of the Construction Industry
the use of these superb methods is spotty, at best. What’s going wrong? The answer to
this question is multifaceted and complex. This paper will explore one aspect of the
problem, the economics of a small to middling company employing professional scheduling
methods. The paper will further explore the implications of hiring consultants and suggest
strategies for small companies to afford the skills they need to acquire as they grow
their businesses.
(PS.07) When is the "Critical Path" Not the Most Critical Path
Primary Author: Mr Murray Woolf ICS-Global
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 9:40-10:40/Conference Room C
Abstract:
The Scheduling Practice has long suffered from a glut of inconsistent,
contradictory, and even incorrect definitions of the term,
"critical-path." Even recent efforts by recognized scheduling bodies,
including AACE, have unwittingly contributed to the confusion, by
continuing the long history of building definitions on outdated concepts.
This paper explores the essential meaning of three important terms: path,
critical, and critical-path, and shows why neither the "longest path" nor
the "least-float path" definition makes sense with today's multi-deadline
schedules. Constructively, this paper proposes a new paradigm: that the
term critical-path would better serve us if it represented a category of
deadline-threatening paths (and not just one), and that paths of varying
degrees of criticality ought to have their own separate labels.
(PS.08) Assessing Execution Planning on Oil and Gas Mega-Projects
Primary Author: Mr Lloyd Kenneth Rankin Ascension Systems Inc CANADA
Co-author(s): Dr George F Jergeas P ENG University Of Calgary CANADA; Mr Tim Slootman Univ of Twente NETHERLANDS
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 10:50-11:50/Conference Room C
Abstract:
The Construction Owners Association of Alberta have developed a best practice regarding
the execution planning of large oil and gas construction projects called the COAA Workface
Planning Model. This model involves using a system based approach to planning projects,
with early contractor involvement, constraint checking prior to work release, and use of
dedicated planners. This model has been presented at other conferences and is in use on
over $30 billion worth of projects in Northern Alberta. Owners were concerned that they no
way of assessing their contractors level of compliance to the COAA model so the primary
author helped them develop a scorecard which has been used to assess 8 projects worth a
combined total of over $1 billion dollars. The paper will discuss the workface planning
model, scorecard and the lessons learned from the assessments already conducted.
(PS.09) P5 to P-Sixes: Transition from P5 to P6
Primary Author: Mr. J. Scott Palmer PE Alta Cascade Inc
Co-author(s):
Audience Skill Level: Basic
Presentation Length: 1 Hour(s)
Time/Location: TUE 1:30-2:30/Conference Room C
Abstract:
Primavera’s scheduling software is the predominantly used software in the
construction industry. P3 still has worldwide usage, even with the releases of
Primavera’s E/C versions, most recently P5 and P6. The author previously presented a
paper entitled Pangs of Progress Transition from P3 to P5. The previous paper detailed the
transition from Primavera Project Planner (P3) to P3 e/c version 5 (P5) on the SAS Bay
Bridge Project. This paper is follow up to the previous paper and will discuss
Primavera’s promised fixes for deficiencies in P5 in the P6 release. The paper will
present Primavera’s advertised features of P6, discuss if they perform as advertised
and rate their effectiveness. It will also look at how P6 addressed or did not address the
issues discovered P5. It will also present any new issues that were created with the
release of P6 and any workarounds for these issues.
Specific topics addressed include:
- Previous issues from P5
- Structure and use the WBS
- Sharing layouts and filters
- Transferring activity codes
- Backup and transfer of the SQL database
- Resource Loading
- Cost Loading in
- P5 fixes in P6
- Fundamental Differences in P6
- P6 Bugs and workarounds
(PS.10) Construction Scheduling: Keeping Relevance
Primary Author: Mr Amit Sarkar Parsons Brinckerhoff
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 3:10-4:10/Conference Room C
Abstract:
Over the years construction scheduling has evolved from a plan to execute the work, enough
for any project, to also analyze and settle claims. The last need demands a clarity of
thinking when one sets out to develop a CPM schedule. The baseline schedule developed at
the beginning of a project has become more meaningful and fraught with consequences if not
thought through when it mattered most. Conceivably this could be the only tool one has to
sensibly analyze an impact of an event on a project. If there is a delay, then who is at
fault and how to quantify.
To analyze a claim, one needs a framework to analyze against. The ideal framework is a
schedule that continues to be relevant. This paper will address issues to keep a
construction schedule relevant throughout the life of a project.
(PS.11) Turnaround Planning
Primary Author: Ms Rashmi Prasad Fluor Daniel INDIA
Co-author(s): Mr Mohammad Altaf Dodsal Pte Ltd QATAR
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: CANCELED
Abstract:
A turnaround is a planned, periodic shut down (total or partial) of a refinery process
unit or plant to perform maintenance, overhaul and repair operations and to inspect, test
and replace process materials and equipment. Such turnarounds are scheduled at least 1-2
years in advance focus on diligent planning as delaying a turnaround can increase the
ultimate cost by 20% - 50% or more unless there are not overriding safety
concerns.Depending on the process unit and the amount of maintenance needed, the length of
the turnaround can vary from 1 week to 4 weeks or more as it will involve the crude unit
or the catalytic cracking unit and will result in a more significant decrease in the
utilization rate than a minor turnaround that may involve units such as the alkylation
unit, isomerization unit or sulfur plant. The paper aims to analyze the cost, time,
manpower, safety, quality, materials, equipments required for turnaround planning. It
shall also address the Work Order tasks, activity descriptions, shift length, working
period, critical path scheduling priorities, sequencing logic, resource utilization
efficiency, critical path refinements, interference analysis & updating.
(PS.12) The Case for Construction Schedule Validation and Auditing SVA
Primary Author: Mr Earl T Glenwright JR PE PSP A.S.S.I.S.T.
Co-author(s): Mr Aldo Dorea Mattos Dorea Mattos Consulting BRAZIL
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 8:00-9:00/Conference Room C
Abstract:
Construction projects represent investments at risk for Owners and Contractors, who invest
massive amounts of money and resources. Although some investors resort to evaluations
(e.g., appraisals by mortgage investors), to gain a level of confidence in the outcome,
validation processes are not common practice in construction. There are many advantages to
Owners and Contractors in a reasonable, rational, and feasible independent Validation of
the work plan and planned schedule, as well as periodic Audits of the performance
achieved. Planning and scheduling practices have become more complex as they have matured
and can produce a greater degree of management and control, but they are vulnerable to
incorrect procedures, illogical logic, misuse, abuse, and outright manipulation. SVA can
be used to minimize the impact of conflicts by detecting issues and anticipating problems.
Reasons for implementing SVA, benefits, methodology, deliverables, and steps towards a
standard practice and procedure are presented herein.
(PS.13) Schedule Acceleration - What, Why and How
Primary Author: Mr Sunu Mohan PSP EVP Exponent Inc
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: WED 9:40-10:05/Conference Room C
Abstract:
This paper provides a review of the various definitions of schedule
acceleration, the factors to consider when deciding whether to accelerate
and the common methods used to accelerate the schedule. The paper also
includes some suggestions on documenting acceleration.
(PS.14) Advanced Scheduling Technology for Shorter Resource Constrained Project Durations
Primary Author: Ms. Annaka Kalton Stottler Henke
Co-author(s): Dr Robert Richards Stottler Henke
Audience Skill Level: Basic
Presentation Length: 0.5 Hour(s)
Time/Location: WED 10:15-10:40/Conference Room C
Abstract:
Due to the inherent complexity of resource constrained scheduling, the project durations
of resource constrained project plans can be two or more times longer than needed. This
paper shows that the scheduling engine significantly effects the project duration even for
relatively small resource-constrained projects consisting of a two dozen tasks, and the
effect can become enormous as the number of tasks grows into the thousands and the types
and quantity of resources expands. Unfortunately, the algorithms used by most commercial
project planning software for resource leveling are relatively inefficient for scheduling
resource-constrained projects. This paper reviews some of the literature on this topic
showing different techniques and results showing the major difference in schedule duration
due to the scheduling engine. Real-world examples from NASA, and Boeing per the B787
Dreamliner are provided to further illustrate the commercial impact.
(PS.15) RP 53R-06, Schedule Update Review
Primary Author: Mr. Ronald M. Winter PSP Ron Winter Consulting LLC
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 1:00-2:00/Conference Room C
Abstract:
AACE International Recommended Practice No. 53R-06, Schedule Update Review As Applied in
Engineering, Procurement, And Construction is the definitive How To on creating and
reviewing CPM schedule updates. A team of eleven of the top CPM Scheduling Experts in the
field collaborated on this 18-page document that covers every aspect of Schedule Updates.
You can expect a lively debate when the principal author of this RP offers a number of
controversial issues while presenting this paper.
(PS.16) Schedule Constructability Review
Primary Author: Mr Edward E Douglas III CCC PSP ACTPMA LLC Consulting
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 2:10-3:10/Conference Room C
Abstract:
A Schedule Constructability Review is performed to analyze and assess the
feasibility of the construction plan. These reviews are intended to bring
to light problems in the following areas: reasonableness of work sequence,
comprehensive and completion of construction planning, coordination and
interface among the various craft trades and engineering disciplines,
adequacy of lead time for material and equipment procurement, site work
restrictions and adequacy of site access. The schedule constructability
review compares the planned sequence of work with the project scope, site
requirements, and the specific needs of the client. This presentation will
focus on constructability concepts influencing the construction execution
planning and a suggested review process for the construction project
schedule.
(PS.S05) Project Planning Using Logic Diagramming Method
Primary Author: Dr Gui Ponce De Leon PE PMA Consultants LLC
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: TUE 3:10-4:10/Conference Room D & E
Abstract:
This treatise seeks to shine some light back on collaborative
network-based planning by advocating use of LDM (Logic Diagramming
Method). LDM is a technique suitable for collaborative planning that is
squarely within the reach of project stakeholders who are not necessarily
trained schedulers. When used in conjunction with GPM™ (Graphical Planning
Method), LDM allows effortless visualization of activity sequences and
timing while also offering interrelationships between activities that are
more intuitive and versatile for use by non-schedulers than those offered
by PDM (Precedence Diagramming Method) or ADM (Arrow Diagramming Method).
LDM is a recently-unveiled activity-based networking method that modifies
and extends ADM to permit the four types of PDM logic.
This paper’s underlying premise is that collaborative planning, as
implemented by early Critical Path Method (CPM) practitioners, has become
a casualty in time management. PDM and PDM-based software and their
vanquish of ADM have been singled out as culprits. Taking advantage of the
ability of LDM to combine the strengths of both ADM and PDM into a
unifying diagramming technique, it is advocated that reliance on LDM, as
posited by GPM, offers the potential to restore planning to the forefront
of project planning & scheduling.
DECISION AND RISK
MANAGEMENT (RISK)
(RISK.01) Knowledge-Based Proactive Project Risk Management
Primary Author: Mr James Arrow KBR
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 8:00-9:00/Conference Room F
Abstract:
This paper will examine the concept of Project Risk Management (PRM), briefly discuss Hard
and Soft benefits, examine current Best Practices, review Risk Management Maturity models
and lay out a working example for Knowledge-based Proactive Project Risk Management. The
example given will cite systems and processes, developed and currently employed by KBR
Energy & Chemicals division.
Application: It will be demonstrated that the basis for successful Risk Management
involves more than the now the widely recognized suite of Risk Analysis software tools.
Emphasis is made of the need for each Project Team to be Risk Aware. Through the practical
application of a Risk Breakdown Structure devised to organize PRM data, benefit will also
become apparent as it is revealed as the framework for a web-based database developed to
capture risk data, monitor trends and manage Risk Responses, anytime and anywhere. The
Risk Management System will also be shown to facilitate reporting requirements at a
Project and Organization level in both traditional and dashboard formats.
Results, observations, and conclusions: PRM is an organizational learning process where
sustainable results are reached gradually. As the PRM knowledge base grows, the process
becomes inherently more robust because the best guide to a company's future lies in its
past.
(RISK.02) Trade-Off Economics in Refinery and Plant Turnarounds - A Dynamic
Decision-Making Model
Primary Author: Mr Jan A Jackson Asset Performance Networks
Co-author(s): Mr. Mike O'Kane AP-Networks
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: WED 9:40-10:40/Conference Room F
Abstract:
Plant turnaround economics are highly complex. Variables impacting trade-off
considerations weave an intricate web of economic interdependencies. Decision-making in
this dynamic environment however has often been based on little more than anecdotal
information. This paper explores the fundamental relationships between major cost
contributing factors such as shift-patterns, labor productivity, turnaround duration,
fixed costs, quality and opportunity costs. Once the basic interplay between these
variables is established the paper then proposes a generic trade-off assessment model and
presents a case study to illustrate -through sensitivity analysis- the impact of specific
trade-off decisions upon overall economic viability of the turnaround. The study further
explains the concept of dynamic decision-making, prioritization and selection of available
economic alternatives. Data collection and research is based on more than 500 actual
turnaround events that have yielded a multitude of detailed observations.
(RISK.03) Range Estimating - The Implications!
Primary Author: Mr William E. Maddex Arup
Co-author(s):
Audience Skill Level: Basic
Presentation Length: 1 Hour(s)
Time/Location: WED 10:50-11:50/Conference Room F
Abstract:
Range Estimating (RE) is at best one of the least understood terms in the construction
industry. Acceptance of RE will only come with an acceptance of the implications of RE.
The most significant implication is that the total cost of construction and the time to
complete the cycle can be reduced.
This paper will explore the viewpoints on RE and seeks to create a vernacular that takes
us beyond Design Build (DB) toward Design Assist Contracting with the end goal of creating
a path from inception to asset life termination that provides the best value for money.
The premise is that by involving the Construction Contractor in the process prior to 30%
design, the usual point of engagement by Engineers and Architects on DB projects, the
increase in value in the short and longer term can be significant.
(RISK.04) Danish Infrastructure Projects New Budgeting Method - A Rational Process to
Manage Political Decisions
Primary Author: Mr Djon Lind Andersen Banedanmark DENMARK
Co-author(s):
Audience Skill Level: Basic
Presentation Length: 0.5 Hour(s)
Time/Location: WED 1:00-1:25/Conference Room F
Abstract:
Massive cost overruns in large infrastructure projects are well-known.
Worldwide research by Danish professor Bent Flyvbjerg, Aalborg University Centre, points
at incompetence, optimism bias and even deliberate deceit by planners to be the primary
reasons for cost overruns in complex infrastructure projects.
Correspondingly the Danish Ministry of Transport and Energy has issued a pragmatic New
Budgeting Method (NBM) dictating fixed percentages for contingency reserves and requiring
holistic cost management.
The Author presents a methodology for implementation of NBM on the Signaling Programme for
renewal of the entire railway signaling system throughout Denmark.
To secure delivery of accurate and robust budget proposals an advanced integrated package
of management tools has been developed, comprising methods for Risk Management,
Requirements Management, Cost Benchmarking and External Peer-Review as the cornerstones of
the planners response to the NBM requirements.
(RISK.05) Estimating Required Contingency Funds for Construction Projects Using Multiple
Linear Regression
Primary Author: Dr. Alfred E. Thal Jr. Air Force Institute of Tech
Co-author(s): Mr. Jason J. Cook PE Cheyenne Mountain Directorate; Mr. Edward D. White III Air Force Institute of Tech
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: CANCELED
(RISK.06) The Implications of Cost and Risk Management for Equipment Manufacturing
Primary Author: Mr Behnad Sarlak Enersul Limited Partnership CANADA
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: WED 1:35-2:00/Conference Room F
Abstract:
The cost of manufacturing mechanical equipment is the single largest component of overall
product cost encountered by major oil and gas companies. This component can be broken down
into a number of sub-categories such as equipment supply, materials, labor and overheads.
A proficient cost analysis system to attain control of these individual sub-categories and
their individual contribution to the total manufacturing cost is required to establish the
best method of minimizing the cost in each of these areas.
The research purpose of this paper (study) is to analyze the manufacturing cost estimation
methodology and to determine the contribution of the four cost components in regard to the
overall manufacturing cost.
The study identifies a methodology and details techniques to improve and minimize costs in
the all aspects of manufacturing production. The study further identifies a need to
implement and improve estimation methodology by categorizing costs into either fixed or
variable rates in each of the above mentioned areas, hence tracking their related
variations and substitutions.
The study also reveals techniques of identifying risk management, assessing risk items in
terms of occurrence and impact on each cost area and consequently determines risk
management steps to optimize the manufacturing costs.
SKILLS AND KNOWLEDGE
OF COST ENGINEERING (SK)
(SK.01) Skills and Knowledge of Cost Engineering: Estimating
Primary Author: Mr. Charles P. Woodward PE CCE Burns & Roe Services Inc
Audience Skill Level: Intermediate
Presentation Length: 2 Hour(s)
Time/Location: MON 10:00-12:10/Essex Ballroom
Abstract:
(SK.02) Skills and Knowledge of Cost Engineering: Planning and Scheduling
Primary Author: Ms Vera A Lovejoy CCE PSP Parsons
Audience Skill Level: Intermediate
Presentation Length: 3 Hour(s) Time/Location: MON 1:50-5:35/Essex Ballroom
Abstract:
(SK.03) Skills and Knowledge of Cost Engineering: Statusing for Progress and Forecasting Trends
Primary Author: Dr. Joseph J. Orczyk PE CCE Purdue University
Audience Skill Level: Intermediate
Presentation Length: 3 Hour(s)
Time/Location: TUE 8:00-11:50/Essex Ballroom
Abstract:
(SK.04) Skills and Knowledge of Cost Engineering: Change Management for EPC Contracting
Primary Author: Mr. Donald F. McDonald Jr PE CCE PSP Fluor Enterprises Inc
Audience Skill Level: Intermediate
Presentation Length: 3 Hour(s)
Time/Location: TUE 1:30-5:20/Essex Ballroom
Abstract:
(SK.05) Skills and Knowledge of Cost Engineering: Earned Value
Primary Author: Dr. Sean T. Regan CCE IMTC-MEI
Co-authors: Mr. Chris A. Boyd CCE LATA/Parallax
Audience Skill Level: Intermediate
Presentation Length: 3 Hour(s)
Time/Location: WED 8:00-11:50/Essex Ballroom
Abstract:
TOTAL COST MANAGEMENT (TCM)
(TCM.01) Managing Large Complex Projects and the Role of Project Controls
Primary Author: Mr. George B. Bradshaw PE CCE Project Time & Cost
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 10:00-11:00/Windsor West
Abstract:
Nuclear power plant projects encompassing engineering, procurement and construction are an
example of a large complex project. Costs in the billions of dollars, engineering efforts
of over five million work-hours, and construction efforts of over 20 million craft hours
are typical for a large nuclear power plant project. Such projects are currently on the
drawing boards after a 20 to 30 year hiatus. Whether or not they will be successful
depends largely on owner experience and how well their planning, organizing, staffing and
execution takes advantage of lessons learned during the past. Studies performed by
Electric Power Research Institute (EPRI) and the U.S. Nuclear Regulatory Commission (NRC)
have correlated good project management practices with successful projects and lower lead
times for construction. This paper reviews these studies, discusses alternative
organizational structures and contracting approaches, and goes into detail on the project
controls organizations and qualifications of personnel to support these large complex
projects.
(TCM.02) Linking the Estimate, the Schedule and the Cost Control through a Standardized
WBS
Primary Author: Ms Marie Helene Biffi P ENG Hydro-Quebec CANADA
Co-author(s):
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 11:10-12:20/Windsor West
Abstract:
Following a string of powerhouse rehabilitation projects which overran their cost, it was
determined that scope control was the major culprit. At the same time, the WBS for all
powerhouse work was standardized throughout the organization and a new project management
process for powerhouse rehabilitation was defined and put in application.
Using those last tools, a scope definition document based on the WBS was created and the
bill of quantity required for budget estimates was standardized and based on the WBS as
well as on the project management process. As well, a project schedule template was
created and organized by the WBS. In effect, the WBS became the common language linking
all aspects of the project, from scope to cost to schedule.
The creation of those documents have helped to better define the scope of a rehabilitation
project as well as track the scope variations and changes that occur during project
feasibility and realization, thus allowing better control.
(TCM.03) What is Project Portfolio Management?
Primary Author: Dr Parviz F Rad PE CCE Project Management Excellence
Co-author(s): Dr Ginger Levin
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 1:50-2:50/Windsor West
Abstract:
A project portfolio management system is an essential part of an enlightened organization,
although all organizations would benefit from some form of such a function. Project
portfolio management involves a logical and formalized selection of projects and a
methodical execution of these projects to their logical and successful conclusion.
An effective project portfolio management system process serves to identify, analyze, and
quantify project value on a regular basis to prioritize projects and to identify which
projects to initiate, reprioritize, or terminate.
The objective of PPM is to select and prioritize projects to deliver the highest value in
accordance with the pre-established portfolio management business decisions and priority
criteria. Priority should be based on both individual project benefits and overall impact
to the organization. In addition, the resulting portfolio mix must not exceed the
organizations resource capacity and capability.
(TCM.04) Using the TCM Framework for Consistency and Comparability of Various Types of
Environmental Cost Estimates
Primary Author: Mr. Gordon Lee Ballentine Risk Strategics, LLC
Co-author(s): Ms Amy Gignac Parsons
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 3:25-4:25/Windsor West
Abstract:
Cost estimating techniques for environmental projects are best understood within a robust
framework of generic and entity-specific engineering, accounting and economic estimating
contexts and constraints. For example, the estimating techniques appropriate for
environmental liabilities recognition, valuation and disclosure in financial statements
should not be expected to be appropriate for budgeting purposes or as an owners estimate
to support procurement of environmental services. While not equivalent, financial
reporting, procurement and budgeting estimates are wholly consistent when properly
constructed. In this paper, we illustrate the merits of using AACE International's Total
Cost Management Framework as a foundation to ensure consistency and comparability of
environmental cost estimates prepared for a variety of common purposes. Several
illustrative examples are provided, including estimating costs for (1) performance based,
guaranteed maximum price contracting and (2) financial reporting of environmental
obligations by state and local governments in the United States.
(TCM.05) Project Coding Conundrum as it Relates to Project Controls, A Study of EPC
Project/s in Canada
Primary Author: Mr. Tanveer Nabi Ahmed CCE Bantrel CANADA
Co-author(s): Mr Peter D George AMEC Americas CANADA; Mr Schalk W van Heerden Suncor Energy Services Inc CANADA; Dr Janaka Y Ruwanpura University Of Calgary CANADA
Audience Skill Level: Intermediate
Presentation Length: 0.5 Hour(s)
Time/Location: MON 4:35-5:00/Windsor West
Abstract:
Projects convert shareholders cash into long term revenue bearing assets.
Project coding is perhaps the single most important element that can be
used to control the costs on a project. It links everything from the
project estimate to the schedule, cost control and simplifies comparison
between project phases. Cost coding may appear to be one of the simplest
project activities, but in reality it is one of the hardest to get right.
Cost Coding can be overwhelming if there is too much detail. Whereas too
little detail will create challenges during project execution. Continued
strong growth in oil sands and non-energy sector developments, real
business investment is estimated to have increased to over $47 billion in
2006 only (Budget 2007,Economic Outlook). The oil and gas industry in
Alberta has planned to spend over 200 billion dollars (Alberta Economic
Development 2004) within the next decade on capital projects. Individual
projects will range from 1 billion to upwards of 13 billion dollars. In
most cases these projects are so large that a single Engineering,
procurement and construction/management (EPC/M) company cannot manage the
entire project and it becomes necessary to divide them up amongst more
than one EPC/M company. However, because multiple EPC/M firms are involved
in a single Oilsands facility, a consistent and unified approach to
project coding becomes essential to the success of the project. A case
study review approach is used to analyze the past/current project/s
situation/s. Project coding conundrums are identified and discussed.
Future coding schemas can be developed based on this discussion, which can
fulfill different demands for information management, to be extracted from
a single universally accessible and dynamic data set. This cost coding
schema can be used by various role players in diverse functions of the
organization at different project phases.
(TCM.06) The Process of Knowledge Transfer and Its Significance in Integrated Environments
Primary Author: Dr Champika Liyanage Univ of Manchester UNITED KINGDOM
Co-author(s): Dr Qiuping Li Univ of Reading UNITED KINGDOM; Dr Taha Elhag Univ of Manchester UNITED KINGDOM; Dr Tabarak Ballal Univ of Reading UNITED KINGDOM
Audience Skill Level: Basic
Presentation Length: 0.5 Hour(s)
Time/Location: MON 5:10-5:35/Windsor West
Abstract:
It is a known fact that knowledge and competences are regarded as the most critical
resources in organizations nowadays. Thus several aspects of management of knowledge such
as the transfer of knowledge have been discussed extensively in knowledge management
literature. However, there seems to be a lack of discussions on its significance
particularly in integrated environments such as Public Private Partnerships/Private
Finance Initiatives (PPP/PFI) projects in the construction industry. Since public private
initiatives are particularly new to many organizations, their inexperience can, without a
doubt, lead to inefficiencies starting from the early stage of the project, design stage,
construction stage to project operations. This emphasizes the need for the transfer of
knowledge between the parties involved in such projects. However, hitherto, only a handful
of research has been carried out on this matter. A research need, therefore, emerge to
investigate this in-detail.
(TCM.S01) A Formalized Method for Prioritizing Prospective Projects
Primary Author: Dr. Parviz F. Rad PE CCE Project Management
Excellence
Co-author(s):
Audience Skill Level: Advanced 
Presentation Length: 1.0 Hour(s)
Time/Location: TUE 4:20-5:20/Conference Room C
Abstract:
Abstract: Contracts are part of the business landscape of many
organizations, albeit sometimes an organization might be the client
organization of the project, while at other times it might be the
performing organization of the contract. Preparing responsive and
compelling proposals is the key in winning a contract. A nominal amount
of project planning effort is necessary for developing a responsive
price proposal for the prospective project, even in cases where the
available project information might not be comprehensive. The
specifications of the intended deliverable or service, the conceptual
planning performed during the proposal preparation, and the desired
profit margin, form the basis for the bid value of the proposal. A
formalized proposal development process will be essential for a winning
proposal.
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