 Below
are the abstracts for the technical presentations scheduled for this years
meeting.
(Subject to change. )
BUILDING INFORMATION MODELING (BIM)
(BIM.01) The Quantification Process and Standards for BIM: AACE International Task Force Project Development and Recommendations
Primary Author: Ms Tamera Lee McCuen University of Oklahoma
Audience Skill Level: Intermediate 
Presentation Length: 1 Hour
Time/Location: MON 10:00-11:00/Diamond (1st Floor)
Abstract:
Building Information Modeling (BIM) is an emerging phenomenon in which
business processes combine with innovative information technology to
optimize efficiency and minimize waste in the design, building, and
operations of a facility. The elimination of non-value added redundant
tasks along with the addition of reliable information in the
communication between stakeholders facilitates these improvements. The
identification of the information that a BIM must contain and the
process of exchange between functional roles to facilitate the quantity
take-off task is needed. The AACE International - BIM Committee, in
association with the National BIM Standard Committee, has answered this
need with a project titled “Quantification (Take-off) Process and
Standards for BIM”. This paper presents the AACE International task
force objectives, the project design, methods for development, and
recommended information exchange process. This paper discusses the
outcomes from the task force and the contribution of this project to the
cost engineer’s role in BIM.
(BIM.04) Constructability Assessment Using BIM/4D Simulation Model
Primary Author: Mr Wissam Hijazi Concordia University
Co-author(s): Dr Sabah Alkass P Eng Concordia University; Dr Tarek
Zayed Concordia University
Audience Skill Level: Basic 
Presentation Length: 1 Hour
Time/Location: MON 11:15-12:15/Diamond (1st Floor)
Abstract:
Implementation of constructability/buildability ideas in the
construction industry has a potential return on investment concerning
time and money. Literature shows that quantified assessment of
constructible designs provides benefits to the owners, contractors and
designers. The potential use of new technology-based tools to assess
constructability of a design has not been fully realized. A new
methodology to evaluate the level of application of constructability
principles in residential buildings was proposed. This methodology
integrates object oriented Building Information Model (BIM) and 4D CAD
simulation model. Factors affecting constructability of building designs
in the Canada are identified from a questionnaire survey on
constructability attributes. Multi attribute decision analysis and
Analytical Hierarchy Process (AHP) were used to assess the overall
constructability value. The new methodology was validated using a case
study of condos project in downtown Montreal. The outcome showed that
integrating BIM with 4D CAD simulation models has many benefits to
designers in which evaluation of different designs can be done in a more
accurate and faster way.
CLAIMS AND DISPUTE
RESOLUTION (CDR)
(CDR.01) Will Courts Adopt AACE Forensic Schedule Analysis RP: 29R-03?
Primary Author: Mr Christopher J Brasco Esq Watt Tieder Hoffar & Fitzgerald LLP
Co-author(s): Mr Christopher M Anzidei Esq
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: MON 10:00-11:00/Willow A (2nd Floor)
Abstract:
The stated goal of AACE International (“AACE”) Recommended
Practice No. 29R-03 on Forensic Schedule Analysis is to offer a
standardized protocol that attempts to minimize procedural subjectivity
in order to facilitate the resolution of delay disputes on the merits.
It is uncertain, however, whether the Recommended Practice will assist
practitioners in overcoming several challenges presented by the existing
body of case law related to concurrent delay. While there is basic
agreement among judges as to the legal consequences of a finding of
concurrency, both the parties and judges involved in nearly every delay
dispute seem to have differing views as to which delays should be
treated as truly concurrent. The uneven application of basic concurrency
rules to recurring fact patterns has given rise to inconsistent
precedent and thus a lack of predictable guidance for parties seeking to
avoid future disputes. Thus, the challenge for a practitioner seeking to
employ the AACE Recommended Practice is to tailor the presentation of
the delay analysis in a manner that accounts for how judges distill and
decide cases.
(CDR.02) AACE Recommended Practices in Action: A Case Study
Primary Author: Mr John J Ciccarelli PE CCE PSP Deloitte
Co-author(s): Mr Michael J Bennink PE CCE PSP
Audience Skill Level: Basic
Presentation Length: 1 Hour
Time/Location: MON 11:15-12:15/Willow A (2nd Floor)
Abstract:
AACE International (AACE) continues to develop various Recommended
Practices (RPs) to provide guidelines for implementing project controls
and procedures in the areas of claims and dispute resolution, planning
and scheduling, estimating, and risk management among others. The
authors will present a case study of the design-build execution for the
construction of a process plant to demonstrate how multiple methods and
components of these separate recommended practices can be brought
together to improve project management and monitoring and to form a
cohesive assessment of the project. The case study will address use of
the RPs to analyze and assess progress during project execution and to
address subsequent delay and disruption claims. The study will also
discuss the roles of project participants, the impact events and how the
events were reported and represented by both the owner and contractor.
This paper will demonstrate that, while the RPs can provide valuable
guidance, effective use of the methods and practices that are best
suited for each unique project scenario is still dependent on the
experience, judgment and skills of industry professionals.
(CDR.03) [Panel Discussion] Minimizing Expert Witness Mistakes in Testimony
Primary Author: Mr Christopher W Carson PSP Alpha Corporation
Co-author(s): Mr Sidney J Hymes CFCC; Mr Robert D Kelly PSP Alpha Corporation
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: MON 2:00-3:00/Willow A (2nd Floor)
Abstract:
Often schedule analysts have to provide expert testimony, as a fact
witness or an expert witness, in deposition or at trial. Most experts,
at some time in their career, have regrettable or dangerous testimony
captured in transcripts, yet there is little training available to help
avoid it.
This session will be a panel discussion, using a case where an expert
witness gives a deposition to the opposing attorney about an expert
report. The expert will make a number of testimony mistakes during the
deposition, the panel would go back through the testimony and highlight
each mistake made. The panel will lead a discussion identifying the
mistakes and demonstrating better ways of testifying. This presentation
will include a moderator, two expert witnesses and an attorney, all
experienced in testimony.
The paper will also include a checklist of the most common testimony
mistakes made by experts and offer ways to improve testimony.
(CDR.04) Proactive Schedule and Claims Control by the Owner, of the Owner, and for the Owner
Primary Author: Mr Fredric L Plotnick PE
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: MON 3:45-4:45/Willow A (2nd Floor)
Abstract:
The Art of Project Management includes assisting and enabling employees
and independent contractors of the Owner’s project perform to their full
potential towards timely and economic completion of the project. The
Owner’s Scheduling Professional (employee or consultant) has the unique
opportunity to assist, or force, the Contractor to complete the project
on or ahead of contractual deadlines, and with a minimum of contentious
claims. This session will discuss the tasks, tools and procedures that
the Owners Scheduling Professional may perform to best verify the
Contractor is on-track, nudge the Contractor to best practices, and cut
off or mitigate claims before such become acrimonious. A proper
specification is a good first step, but even when a poor specification
is already in play, the Scheduling Professional may still promote the
project, deflect impacts that may grow to be claims, and defend against
abuse of the claims process by the Contractor.
This session will discuss the tasks, tools and procedures that the
Owners Scheduling Professional may perform to best verify the Contractor
is on-track, nudge the Contractor to best practices, and cut off or
mitigate claims before such become acrimonious. A proper specification
is a good first step, but even when a poor specification is already in
play, the Scheduling Professional may still promote the project, deflect
impacts that may grow to be claims, and defend against abuse of the
claims process by the Contractor.
(CDR.05) Compliant Registered Method: A Sample Submission
Primary Author: Mr Kenji P Hoshino PSP CFCC Project Controls & Forensics LLC
Co-author(s): Mr Michael S Dennis CCC Project Controls and Forensics
Audience Skill Level: Advanced 
Presentation Length: 1 Hour
Time/Location: TUE 8:00-9:00/Willow A (2nd Floor)
Abstract:
Description: Outline the process and structure needed to register a
schedule analysis method for AACE recommended practice 29R-03 Forensic
Scheduling Analysis (Registered Method). This is a chance to give
companies/individuals some proprietary ownership/validation for the
types of analysis that they use.
Application: This presentation will show the steps that need to be taken
and the form that the request for validation needs to be in for
submission to the AACE CDR Committee to ensure that it meets the
standards basic tenants laid out in the RP.
Results: To show this, we will present an Observational / Dynamic /
Contemporaneous Split (3.4) analysis that augments the month to month
bifurcated approach (2.3.3). The analysis will use monthly updates to
apportion both progress and logic gains/delays to the responsible party,
and then presents the information in a way that is understandable and
easy to relate table.
(CDR.06) The New Modeled, Subtractive,
Multiple Base MIP 3.9 Forensic Schedule Analysis Protocol
Primary Author: Mr Andrew Avalon PE PSP Long International, Inc.
Co-author(s): Mr. Ronald J. Rider Long International, Inc.
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 9:45-10:45/Willow A (2nd Floor)
Abstract:
The Modeled, Subtractive, Multiple Base (Collapsed As-Built Windows)
schedule analysis method is a newly accepted AACE International
implementation protocol, but the method has been in use for over a
decade. The Collapsed As-Built Windows method is a retrospective CPM
schedule analysis which is typically used to prove entitlement for
compensable delay and assess concurrency of delay within a window of
time. The analysis simulates the as-built conditions within a schedule
window and then delays are removed from the CPM model. If the forecasted
project finish date “collapses” but-for compensable delays, then
entitlement for compensable time-related costs can be demonstrated. The
scope of this paper addresses the usage of the Collapsed As-Built
Windows protocol and the advantages and disadvantages of the
methodology.
 (CDR.08)
Window Analysis in a Crunch
Primary Author: Mr. Jeffery L. Ottesen PE PSP CFCC Alta Cascade Inc
Co-author(s): Dr Anamaria I Popescu PE CPM Consulting Inc
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 1:45-2:45/Willow A (2nd Floor)
Abstract:
Have you ever had an impossible deadline imposed by a client unaware of
the effort it takes to perform a detailed schedule analysis? Well, we
did; the client gave us a week! This paper will show you how to
streamline a Windows Analysis when you are under the gun and forced to
deliver something fast. Although insufficient for formal testimony, the
streamlined method we demonstrate excels by providing preliminary
results on key issues to stop a claim before formal litigation arises.
In a specific case scenario, we compare and contrast a typical Window
Analysis with the abbreviated version employed, and present pros and
cons to the shortcut method employed. Under the right circumstances,
this shortcut makes the impossible, plausible and can save all involved
parties significant costs.
(CDR.09) Measuring Delays Using the Contemporaneous Period Analysis, Part 2
Primary Author: Mr J. Scott Love Trauner Consulting Svcs Inc
Audience Skill Level: Advanced
Presentation Length: 1 Hour
Time/Location: TUE 3:30-4:30/Willow A (2nd Floor)
Abstract:
AACE International’s Recommended Practice for Forensic Schedule
Analysis (RP-FSA) and an earlier paper titled, “Measuring Delay Using
the Contemporaneous Period Analysis,” each provide a description for
conducting the prototypical Contemporaneous Period Analysis (CPA)
method. This paper takes the next step by identifying some of the
undefined territory between never changing the schedules during the
analysis as described in MIP 3.4 and extensively modifying the
contemporaneous schedules or recreating non-existent updates during the
analysis as described in MIP 3.5. Through the use of specific examples,
this paper will discuss how to deal with minor “errors” in the schedule
and the insertion of fragnets into the contemporaneous schedule during
the analysis, while still meeting the requirements of the CPA. This
paper will also identify and discuss crucial issues that need to be
considered when performing the CPA under real-life circumstances.
(CDR.10) Applications of Monte Carlo Simulations in Dispute Resolution and Claims Work
Primary Author: Mr. Rod Charles Carter Long International Inc
Co-author(s): Mr. Richard J. Long Long International, Inc.
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: WED 9:45-10:45/Willow A (2nd Floor)
Abstract:
Monte Carlo simulations are often used in cost estimating to calculate
the proper contingency required to address a project’s risks and
uncertainties, yet this tool is seldom employed past the estimating
phase. However, the use of Monte Carlo simulations is just as applicable
in calculating uncertainties in the dispute resolution and claims
process, whether in assessing a Contractor’s most-likely claim recovery
or exposure for use in negotiations, or ranging the cost impact of
missing, incomplete, or disparate data when preparing a claim.
This paper provides a brief overview of the mechanics of Monte Carlo
simulations, outlines its potential uses in the dispute resolution and
claims process, and provides examples from real world projects. The
intent is to provide contractors, owners, attorneys, and consultants an
additional tool to assess and better calculate the risks and
uncertainties in the claims process.
(CDR.11) P6 Discovery Under the U.S. Federal Rules of Civil Procedure
Primary Author: Mr. Kelly Roger Wallace PSP Project Controls & Forensics
Co-author(s): Mr Kenji P Hoshino PSP CFCC Project Controls & Forensics LLC
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: WED 8:00-9:00/Willow A (2nd Floor)
Abstract:
Two changes have occurred in the past few years that will affect the
litigation of actions that involve delay claims on projects where
schedules were maintained in Primavera P6 Enterprise Project Portfolio
Management (“P6”). The first of the changes is the recently stepped-up
effort by Primavera Systems, Inc. to migrate their P3 user-base to P6
Enterprise based software. The second is the 2006 amendment to the
United States Federal Rules of Civil Procedure (“FRCP”) involving
electronically stored information.
While on their own these changes would probably have a smoother
transition, but in combination, these two simultaneous changes could
yield some unanticipated results. The old regime consisted of electronic
schedule data simply copied onto storage disks and very few discovery
rules specifically governing the disclosure of electronic data. The new
system consists of an enterprise-wide database of schedule, budget and
other resource data, and the introduction of an abundance of new rules
on how and what to disclose in the way of electronic files.
(CDR.12) When Less is Not More: Providing Subcontractors Early and Late Dates
Primary Author: Mr. John C Livengood PSP CFCC ARCADIS
Co-author(s): Mr. Rick Gaetano Cianfaglione PE PSP PinnacleOne
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: WED 11:00-12:00/Willow A (2nd Floor)
Abstract:
In a project delivery system such as Agency CM (CM Not at Risk), the
Construction Manager develops the project schedule based on input from
the multi-prime contractors, but the owner essentially “owns” the
schedule. Under most Agency CM contracts, the coordinated schedule
information is developed and managed by the Construction Manager, and
then provided to the multi-prime contractors, who contract directly with
the owner. This creates an immediate tension, since the Agency CM is an
agent of the owner, who now controls the schedule, reversing the
traditional means and methods responsibility for the schedule of the
general contractor or Construction Manager at risk. Given that role
reversal, how do the parties’ responsibilities change? How much
information should the Construction Manager provide? Do the contractors
have greater difficulty planning their work if the Construction Manager
provides limited schedule information? Do more delay claims result
because of limited schedule information? Through common understanding of
bid practices, scheduling techniques and the typical lifecycle of
construction projects, options and scenarios will be explained in an
effort to answer these questions.
(CDR.S01) Delay Analysis Using Learning Effect and Linear Scheduling in Construction
Primary Author: Dr Jae-Seob Lee Dongguk University
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 11:00-12:00/Willow A (2nd Floor)
Abstract:
Delays occur commonly in construction projects. Assessing the impact of delay is a contentious issue, especially when there are productivity changes for the repetitive tasks. Learning curves have traditionally been used to describe the improvement in the performance of repetitive tasks. Several delay analysis methods are available for determining the schedule impact resulting from project delays and disruptions but no one method can be used in situations including the change of productivity for the repetitive tasks. Thus in analyzing the delay especially for the repetitive tasks, a care should be taken if there are any productivity change and learning effect. This paper proposes the "Accumulated Delay Analysis Method ver.1 (ADAM ver.1)" to analyze the schedule delay including lost productivity and learning effect that affect the results of the analysis.
(CDR.S02) Reducing Dispute in Construction Claims: The Role of Decision-making Process
Primary Author: Dr. Ajibade Ayodeji Aibinu University of Melbourne
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: WED 11:00-12:00/Issaquah (3rd Floor)
Abstract:
Claims have become almost inevitable aspect of building and civil
engineering projects. This study brings construction into main stream
social psychology field by exploring the role of decision-making process
as a determinant of dispute in the process for administering project
claims. The data collection instrument was a structured questionnaire
administered face-to-face with 41 contract managers of 41 construction
firms regarding their experience with claims on 41 completed building
and civil engineering projects. The data were analyzed with structural
equation model using product indicator approach implemented with partial
least square estimation. The result indicates that contractors who
received unfavorable outcome on their claims reported lower potential to
dispute when they perceived that the process used in assessing claims
was good and satisfactory than when they perceived it to be
unsatisfactory. Project owners’ management team whose actions rejecting
invalid claims may be misinterpreted and disputed need to pay greater
attention to how decisions on claims are reached. A good quality
decision-making process could mitigate disputing reaction against
unfavorable outcome of claims. Strategies for improving the process for
administering claims are suggested.
(CDR.S04) Deceptive Schedules: What Can We Do About Them?
Primary Author: Mr John P Buziak PE Critical Path Mechanics LLC
Co-Author(s): Mr Jonathan Head Esq Bradley Arant Rose & White
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: WED 2:30-3:30/Willow A (2nd Floor)
Abstract:
“At the meeting the four experts lamented the state of scheduling. They say they see widespread abuses of powerful software to produce badly flawed or deliberately deceptive schedules that look good but lack mathematical coherence or common sense about how the industry works.” [2]
This was the bottle of champagne broken across the bow of the SS College of Scheduling at its launching. Since that time, Practice Standards have been published and Professional Certifications implemented. It will be years before we know if we have moved the meter on the quality of schedules in general. But with the publication of 29R-03 Forensic Schedule Analysis, [4]we ought to be able to detect individual flawed and deceptive schedules, particularly where the deception is the result of logic manipulation. Can we? And if we can, what can be done for parties deceived by such schedules?
TECHNICAL COMMITTEE
AND SIG MEETINGS (COM)
(COM.01) Claims & Dispute Resolution Committee Meeting (1)
Primary Author: Mr. John C Livengood PSP CFCC ARCADIS
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: MON 5:00-6:00/Willow A (2nd Floor)
(COM.02) Cost Estimating Committee Meeting
Primary Author: Mr. Douglas W Leo CCC CEP Censeo Project Solutions
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: MON 5:00-6:00/Grand A Ballroom (2nd Floor)
(COM.03) BIM Committee Meeting
Primary Author: Mr. Philip D Larson CCE PSP CEP Project & Cost Control
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: MON 5:00-6:00/Diamond (1st Floor)
(COM.04) Academic SIG Meeting
Primary Author: Mr. Peter W Griesmyer POWER Engineers Inc
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: MON 5:00-6:00/Willow B (2nd Floor)
(COM.05) Environmental SIG Meeting
Primary Author: Mr. Richard A Selg CCE Parsons
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: MON 5:00-6:00/Aspen (2nd Floor)
Abstract:
The Environmental Special Interest Group (SIG) pursues and develops innovative Total Cost Management (TCM) guidance for resolution and compliance to environmental issues.
The Environmental SIG meeting itinerary is as follows:
- Current and future Department of Energy's (DOE) Applied Cost Engineering (ACE) Team activities for the development of project/program management improvements for DOE's environmental management.
- Environmental/Decommissioning Professional Practice Guide (PPG 11).
- Development of the Estimating Classification Environmental Recommended Practice (RP) CE-0 3.
- Support to the Corps of Engineers and other federal agencies.
- Other items of interest or discussion.
(COM.06) Claims & Dispute Resolution Committee Meeting (2)
Primary Author: Mr. John C Livengood PSP CFCC ARCADIS
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 4:45-5:45/Willow A (2nd Floor)
(COM.07) Decision & Risk Management Committee Meeting
Primary Author: Mr. Michael W Curran Decision Sciences Corp
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 4:45-5:45/Issaquah (3rd Floor)
(COM.08) Transportation SIG Meeting
Primary Author: Mr. Robert H Harbuck PE CCE CEP Parsons Brinckerhoff
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 4:45-5:45/Diamond (1st Floor)
(COM.09) Planning & Scheduling Committee Meeting
Primary Author: Mr. Ronald M Winter PSP Ron Winter Consulting LLC
Co-author(s): Ms. Hannah E Schumacher PSP Kitchell Contractors
Audience Skill Level: Basic
Presentation Length: 1 Hour
Time/Location: WED 11:00-12:00/Aspen (2nd Floor)
Abstract:
The Planning & Scheduling Committee will meet on the last day just
before lunch in a time-tested ploy to keep the meeting from running over
time. As is usual, free candy will not be distributed to all attendees.
Come and be a part of the planning process for this next year’s goals
and plans of one of AACE’s busiest committees. Everyone is invited.
COST AND SCHEDULE CONTROL (CSC)
(CSC.01) Enterprise-Wide Schedule Management the Practical Way
Primary Author: Mr. Gary Nowlin Parsons Corporation
Co-author(s): Mr. Michael R Nosbisch CCC PSP Parsons Corporation
Audience Skill Level: Intermediate
Presentation Length: 1 Hour(s)
Time/Location: MON 2:00-3:00/Diamond (1st Floor)
Abstract:
Whenever the topic of managing project schedules in a consistent manner
across an enterprise is discussed, the conversation inevitably focuses
on the requirement for all projects to load their baseline schedules and
subsequent updates onto a common server accessible to both functional
and business line management. While this strategy is understandable to a
certain extent, it is not very practical, and the result is usually a
database cluttered with countless schedule files that are not adding any
value to the overall management process. In the federal government-based
business unit of Parsons, however, a management by exception approach
was used to address the need for enterprise-wide schedule management.
This presentation will illustrate the process that was ultimately
selected, to include a live demonstration of the proprietary tools that
were developed to support it.
(CSC.02) Total Float Distribution: A SANE Way to Manage Schedule Contingency
Primary Author: Dr. Anamaria I Popescu PE CPM Consulting Inc
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: MON 3:45-4:45/Diamond (1st Floor)
Abstract:
CPM based analysis was first proposed in the 1950’s, but not used in
claims analysis until the late 1970’s. Float ownership debates and
contractual modifications began about a decade after that. “Solutions”
designed to overcome the inherent problems with float apportionment,
unfortunately, have done more harm than good. In fact, numerous claims
have cited these float management techniques as contributing factors.
For years in the United States, float has generally been distributed
among stakeholders on a “first come first served” basis, but with
generally poor outcomes. In Canada, the contractor is considered to own
the float. But what happens if the contractor expends all the float?
A more recent development is the use of critical chain scheduling (CCS).
This methodology has its own problems, including implementation issues.
In this paper we describe a new approach that distributes float in an
objective manner to the activities that have a greater tendency to
experience delays. This approach also complements project level
contingency management. The procedure of float distribution is described
in detail, then illustrated with a case study.
(CSC.07) SOX and Project Controls Reporting: An Integrative Solution
Primary Author: Mr. Rohit Singh P Eng CCE McIntosh Engineering
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 11:00-12:00/Diamond (1st Floor)
Abstract:
There is no doubt that SOX compliancy in project controls reporting will
become a requirement on all projects for all companies in the future
there is no question of the need for SOX compliancy based on the serious
lessons learned by the demises of such companies as Enron Inc.
This paper shows that current trends in SOX compliancy have some
definite drawbacks in its reporting requirements and the integration of
Cost and Scheduling in Project Controls reporting.
The author who is a consultant has recently been involved within a SOX
compliant project controls environment for a fortune 500 -EPC Company.
This paper is based on his experience within the company in producing
monthly reports and in being grilled on a monthly basis by the senior
officers of the company for the projects that he was managing.
In this presentation the essence of the SOX experience is communicated
and a logical (for project controls professionals) gap that exists
between project controls and financial controls is concluded and
discussed.
In order for the audience to obtain the full benefit from this
presentation, an interactive presentation approach will be used to share
experiences and solutions within a SOX project controls environment.
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 as a Planner/Schedule Cost Engineer,
Project Controls Manager.
PROFESSIONAL
DEVELOPMENT (DEV)
(DEV.01) How to Write a Technical Paper
Primary Author: Mr. James D Whiteside II PE ConocoPhillips
Audience Skill Level:
Basic
Presentation Length: 1 Hour
Time/Location: TUE 11:00-12:00/Diamond (1st Floor)
Abstract:
The Associate for the Advancement of Cost Engineering International
(AACE) “Official Guidelines for Preparing Papers” describes how to
structure and format a paper for publication, yet writing a 5,000 word
paper is intimidating. This paper describes a useful story board
technique and a basic organizational format to get most technical
authors past the "writer's block". The paper is intended to assist the
first time author as well as the seasoned author. Sensitive items such
as addressing copyright, legal review, and proprietary data will be
presented. Advanced writing tips will show how to select an editor,
avoid common grammatical mistakes, incorporate technical reviews, and
how to address the audience. The goal is to transform knowledge authors
into recognized world-class authorities by helping them communicate
their ideas on paper.
(DEV.04) The Talent Vacuum -- Keeping Your Best Talent in a Downturn
Primary Author: Mr. Jeffrey Bettinger Fluor
Co-author(s): Ms. Shayna Lynn Brown Fluor
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: WED 8:00-9:00/Diamond (1st Floor)
Abstract:
The recent downturn following the absolute explosion in growth in the
project controls field has given all of us a reason to sit back and
wonder if we are doing the right things with our top talent. Study
indicates that individuals leave companies that do not provide
opportunities for growth and development. Whether in boom or bust,
providing opportunities for development is key to attracting, and
retaining top talent.
(DEV.05) Being a Consultant?
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: Intermediate
Presentation Length: 1 Hour
Time/Location: WED 9:45-10:45/Diamond (1st Floor)
Abstract:
Consulting can be an exciting, challenging and rewarding career. The
reasons that many of us have become consultants are varied. The paths to
success or failure in the consulting specialty fields are just as
varied. Consulting groups as well as independent consultants are growing
their businesses literally around the world. Is it time for you to
consider embarking on this life changing career field?
Three Independent Scheduling Consultants who are specialists in the
planning, scheduling, claims and computer technology fields have taken
this leap and they will share their experiences and answer your
questions on a variety of topics that are important to the success of
any consulting business. If you are curious as to what it takes to “hang
your shingle” and have the motivation and the experience necessary to
start a consulting business, you should attend this informative session.
(DEV.06) How to Present a Technical Paper
Primary Author: Mr. James D Whiteside II PE ConocoPhillips
Audience Skill Level:
Basic
Presentation Length: 1 Hour
Time/Location: WED 2:30-3:30/Diamond (1st Floor)
Abstract:
Andrew Griffith, PHD (senior analyst for IPA), authored a paper to
address effective presentation skills (Las Vegas, 2006, DEV.02) [1]. His
paper inspired more points to be addressed in this paper and a few
additional ways to present a technical paper. Subjects include hand-off
by multiple presenters, shaping material for an audience, handling tough
audience questions, and finding your presentation style. In 2009, AACE
is offering a “Green Room” where recognized professional presenters and
editors will offer mentoring services to authors new to presenting and
to seasoned professionals who want to step up their skills. The Green
Room and this paper/presentation are offered to help you overcome the
challenges of presenting a paper and become a greater success!
(DEV.07) Data Collection and Project Closeouts from a Non-Engineering Perspective
Primary Author: Ms. Lesley Nordean ConocoPhillips
Audience Skill Level: Basic
Presentation Length: 1 Hour
Time/Location: WED 1:15-2:15/Diamond (1st Floor)
Abstract:
The objective is to develop an employee unfamiliar with project
management into a knowledgeable Benchmarking analyst.
Components examined include training the employee’s intrinsic analytical
skills to recognize key pieces of data throughout all stages of a
project. Another major task is to familiarize the analyst with the “big
picture” and allow them to discover the details that influence that big
picture.
Recruiting a variety of disciplines to meet the demand for cost
engineers and project management employees is becoming a popular
practice. To make an employee’s first project a true learning
experience, it’s helpful to lay out basic instructions to navigate
through a project closeout. The number one rule is this: All information
is valuable.
By properly introducing personnel into this organization, they are able
to focus their analytical skills and contribute to the organization in a
shorter time period versus someone with no introduction or orientation.
ESTIMATING (EST)
(EST.01) The Professional Estimator - Fact or Fiction?
Primary Author: Mr. Bruce E. Bradley Fluor Corporation
Audience Skill Level: Advanced
Presentation Length: 1 Hour
Time/Location: MON 10:00-11:00/Grand A Ballroom (2nd Floor)
Abstract:
Historically, the role of “estimator” has been filled within various
industries by individuals with broad and diverse backgrounds. Any
business wishing to expand its facilities or invest in new business
ventures has to have a thorough understanding of the capital expense (CAPEX)
and operating expense (OPEX) costs. Whether performed by either a single
individual or a large group, within an owner company or by a contractor
organization, the resulting estimate needs to be accurate and reliable
as a critical factor in making the “go” or “no go” decision to proceed.
This paper will provide insight into estimating as a professional career
based on the author’s personal experiences.
(EST.03) Estimating Today’s Mega Projects
Primary Author: Mr. Waymon D. Lofton Fluor
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: MON 2:00-3:00/Grand A Ballroom (2nd Floor)
Abstract:
Today many of our estimates are for Mega -Projects that cost over a
billion dollars or more. With such large projects, anticipation and
organization are the keys to successful Estimating.
Due to the shear magnitude of these projects, a well organized team is
required to meet the estimating demands. That Estimating team must have
specific positions with roles and responsibilities well defined and
understood.
The team in support of the estimator’s (Engineering, Procurement,
Contracts, Construction, Scheduling, and Cost) must know what is
required of them, in what format it is required, and when the
information is required.
The lead estimator has to anticipate the types of estimates. The
majority of the team’s time will be spent developing the Class 4
Conceptual Estimate and the Class 2 Detailed Estimate, but “other”
estimates (change estimates, study estimates, and value engineering
estimates) often catch the team by surprise.
We will discuss things to be prepared for and other issues that you will
face on mega projects so they don’t surprise you.
(EST.05) Bid Preparation For Contractors (Avoiding Estimating Errors)
Primary Author: Mr. Todd W Waddle CCC L-3 Communication/Titan
Audience Skill Level: Basic
Presentation Length: 1 Hour
Time/Location: TUE 8:00-9:00/Grand A Ballroom (2nd Floor)
Abstract:
Submitting the low bid on a building project can be a thrilling moment
for a building contractor. However, the contractors’ excitement can turn
to dismay after discovering that their low bid was the result of bid
preparation errors. A contractor could possibly go bankrupt or out of
business if they continually win contracts through bid mistakes.
The intent of this article is to show that consistently following a set
of bid preparation procedures will help reduce the risks of bid errors
and loss of profit. This paper examines some common mistakes that
building contractors make in bid preparation and lists steps that can
reduce bid preparation errors.
With low profit margins required to win bids in tight and competitive
construction markets, thorough and accurate bidding is essential for
contractor success. Developing and consistently applying bid preparation
procedures are a key component to achieving this goal.
(EST.06) Owner Review Process for Mega-Project Estimates
Primary Author: Mr .Douglas W Leo CCC CEP Censeo Project Solutions
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 9:45-10:45/Grand A Ballroom (2nd Floor)
Abstract:
We are witnessing an unparalleled explosion in the complexity, scope and
size of today’s mega projects. Yesterday’s multi-million dollar projects
are dwarfed by today’s multi-billion dollar projects. The volume of
information, required to compile a complete Capital Project Estimate (Capex),
as well as, the corresponding Operational Project Estimate (Opex) for
these mega-projects, is immense. Many of the tried and true estimate
review procedures that were adequate for smaller projects need to be
expanded for the mega-project. Many times because of the owner’s rush to
sanction, high level benchmarking is the norm, rather than a detailed
review of the project estimate. Therefore, the review process cannot
wait to start until the estimate is near completion but rather must be
started long before the estimate has formally begun. This paper will
present the necessary steps to provide a comprehensive review of
estimates for mega-projects. Many of the steps, while not required at
the same level of complexity for smaller projects, will be extremely
helpful in an abbreviated form.
(EST.07) Effective Project History Collection and Retrieval - Back to Basics
Primary Author: Mr. Kevin McDowell CCE IOL / SCL
Audience Skill Level: Basic
Presentation Length: 1 Hour
Time/Location: TUE 11:00-12:00/Grand A Ballroom (2nd Floor)
Abstract:
Cost is a highly visible performance metric for indicating project
success. Capturing and using not only the cost data but also other
historical project information including lessons learned can impact the
direction of future projects. The historical information can be used in
preparation of strategic estimates and benchmarking project performance
against other owners. Most people in the oil and gas industry that
create capital projects understand the importance of historical data for
use in cost metrics and benchmarking. Few companies though have the
methodologies, procedures, and systems in place to effectively use this
information.
(EST.10) Strategies for Reduction of Estimating Variances on Projects at Atlanta's Airport
Primary Author: Mr. William E Kraus PE CCE
Co-author(s): Mr. Richard A Selg CCE
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: 3:30-4:30/Grand A Ballroom (2nd Floor)
Abstract:
In 1999, the Hartsfield Jackson Atlanta International Airport
established a development program envisioned to take place over ten
years and estimated to cost $5.4 billion. Included were a new runway,
international terminal, consolidated rental car (CONRAC) facility, south
gate complex or terminal, and improvements to various other
infrastructure and facilities. Wide variances occur between construction
cost estimates and bids received in many capital projects and the
Hartsfield-Jackson Development Program (H-JDP) is no exception. It’s
often challenging to understand the variances as well as to develop a
strategy for reducing them for future estimates. This paper addresses
the findings of a performance audit of one of the projects and of
interviews and analysis of the documentation of estimating efforts on
airport projects and will document the causes of variances, report on
efforts to reduce those variances, and establish how success of
corrective measures is to be gauged.
(EST.11) Historical Lessons for Today: How the Savings and Loan Crisis Affected the US Construction Sector
Primary Author: Mr. Basil P Alexander Esq O'Connor Construction Management, Inc.
Co-author(s): Mr. Fred J. Saldana III PSP O'Connor Construction Mgmt;
Mr. John E Mauk O'Connor Construction Management Inc
Audience Skill Level: Basic
Presentation Length: 1 Hour
Time/Location: WED 8:00-9:00/Grand A Ballroom (2nd Floor)
Abstract:
Today’s economic crisis has many similarities to the savings and loan crisis of the 1980s and early 1990s. Both crises stemmed out of policy changes, poor lending policies, including increased lending to sub-prime borrowers and increased use of non-traditional loan instruments, and decreased property values. This paper examines the historical ties between the construction sector and the savings and loan industry, which simultaneously expanded and collapsed in the 1980s. The first section of this paper examines the pertinent history of savings and loans, which have always been connected with the construction sector. The second section compares the savings and loan crisis to the current-day crisis, in an attempt to draw conclusions about where the construction sector is headed in 2009 and 2010.
(EST.12) The Estimating World of the 21st Century
Primary Author: Mr. Daniel Matthew Uman ECCE CEP
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: WED 9:45-10:45/Grand A Ballroom (2nd Floor)
Abstract:
“The struggle to remain competitive will be the most challenging task
facing the construction industry in the next decade”, declared a recent
construction contractor survey. Everyone agrees that current market
conditions and the state of the economy have a major impact on profit.
Thus, the complexities of preparing a winning bid becomes a major
challenge in a world where one must determine, in addition to a quality
takeoff and accurate computation, the impacts of client relationships,
risk, payment history of clients, bonding, union labor relationships,
market conditions, number of bidders, time span of the project, need for
work, quality of supervision, and other uncertainties. Contractors and
construction managers must be more perspicacious regarding projects
being bid with major changes in the bidding process, shorter bid times,
incomplete drawings and specifications, requiring a more thorough
analysis to protect their price and scope of work.
(EST.13) General Liquids Pipeline Projects Scope and Cost Estimating Challenges
Primary Author: Mr. Brent Kitson P Eng Enbridge Pipelines Inc
Audience Skill Level: Basic
Presentation Length: 1 Hour
Time/Location: WED 11:00-12:00/Grand A Ballroom (2nd Floor)
Abstract:
Pipelines are an efficient and safe method of transporting high volumes
of liquids, gases or slurries. Pipelines transport commodities such as
oil, natural gas, water and liquid chemicals. The first gathering
systems in North America were constructed of hollow logs and were used
to transport natural gas short distances from well sites to nearby
towns.
The United States has the largest network of energy pipelines – both oil
and natural gas -- of any nation in the world. The oil pipeline network
alone in the U.S. is more than 10 times larger than that in Europe with
approximately 200,000 miles of oil pipelines. There are approximately
580,000 km (360 000 miles) of pipelines in Canada.
Canada has approximately 179 billion barrels of oil that can be
recovered with current technology. About 173 billion barrels are located
in the oil sands and about 6 billion barrels are referred to as
conventional.
This paper will discuss general pipeline project scope and review some
of the challenges with estimating pipeline project costs in the
development phase of a project.
(EST.15) Assessment of Methods for
Adjusting Construction Cost Estimates by Geographical Location
Primary Author: Mr. Adam A Martinez
Co-author(s): Dr. Giovanni C Migliaccio University of New Mexico; Dr Paul
Zandbergen University of New Mexico; Mr Su Zhang University of
New Mexico
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: WED 1:15-2:15/Grand A Ballroom (2nd Floor)
Abstract:
Conceptual cost estimates are especially useful to owners in
consideration of budgeting and programming of construction projects. The
proposed paper will report findings from a study that critically
assessed the current method of adjusting conceptual cost estimates by
geographic location. Currently, the industry uses a simple,
proximity-based, interpolation method which uses the “nearest available”
cost value to represent an excluded location factor. Although this
approach is widely accepted, its validity has not been substantiated.
The study utilizes Geographic Information System (GIS) tools to conduct
spatial and statistical analyses and confirm the validity of the
“nearest available” method. An assessment of alternative interpolation
methods was also conducted, including an evaluation of the state average
and the nearest available value within state boundary. The study
determined that the nearest available within state boundary method
produced the least amount of error between actual and estimated values
and therefore, should produce the most accurate location adjustment
estimate between the three methods evaluated.
(EST.S01) Predict Piping Quantities Based on 30% Model Review or Earlier Downloads
Primary Author: Mr. Lakshmanan Simhadri P Eng CCE Fluor Canada Ltd
Co-author(s): Mr. Blair Hitchings Fluor
Audience Skill Level: Advanced
Presentation Length: 1 Hour
Time/Location: MON 11:15-12:15/Grand A Ballroom (2nd Floor)
Abstract:
There is a constant push to do AFE estimates (Class 3) much earlier in
the project cycle, which poses an ever increasing challenge to achieve
the required levels of estimate accuracy. Given the current market
conditions, any improvements in quantifying bulks more accurately would
impact estimate accuracy significantly.
Between estimating and piping, we have researched a method to predict
final piping quantities based on 3D model downloads at various levels of
completeness. This paper will describe different ways the early download
data, typically 30% or less can be used to predict the final quantities
and the merits and limitations of using them. The objective is to steer
away from using large and subjective factors or allowances to make up
for piping quantities not modeled yet.
(EST.S03) Selling Recognition and
Acceptance of AACE Recommended Practices
Primary Author: Mr. William E. Kraus PE CCE
Co-author(s): Mr. Ken Cressman CCC EVP
Audience Skill Level: Basic
Presentation Length: 1 Hour
Time/Location: TUE 1:45-2:45 / Grand A Ballroom (2nd Floor)
Abstract:
An opportunity for increased recognition of AACE International exists in
the development of recommended practices to meet the heretofore
unfulfilled needs of industry. In particular, certain segments of
industry lack standards or procedures for many essential cost
engineering functions within their purview. As an example, a recent
experience on a project drove this point home. The Rental Rate Blue Book
by Equipment Watch is recognized as the industry standard for standard
ownership and hourly operating costs. However, the Blue Book states that
“No industry standard exists regarding the computation of standby
rates.”
The authors propose that our Association develop a recommended practice
and propose, in conjunction with Blue Book, to fill that need. This
paper will present the authors’ thoughts on an approach to gain more
recognition and acceptance for our recommended practices (RPs). It will
also list several areas and topics that the authors feel should be
explored by AACE International for the development of RPs.
EARNED VALUE
MANAGEMENT (EVM)
(EVM.01) Lessons Learned in Using Earned Value Systems, (a case study)
Primary Author: Mr. Harry W Jarnagan PE CCE Hatch Mott MacDonald
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 8:00-9:00/Willow B (2nd Floor)
Abstract:
This paper provides a summary of lessons learned related to the
implementation and use of the Earned Value Management System (EVMS) now
in place on the Alaskan Way Viaduct and Seawall Replacement Program (AWVSRP)
being delivered in Seattle, Washington, by the Washington State
Department of Transportation (WSDOT). The material discussed herein is
taken from a report prepared by Hatch Mott MacDonald (under contract to
WSDOT to provide Program Management services) and submitted to the
Federal Highway Administration (FHWA). The full content of this report
can be found on the internet at http://www.fhwa.dot.gov/majorprojects/lessonslearned/alaskanway/index.cfm.
Given that, as of the writing of this report, this program was in its
design phase, the lessons learned that will be discussed will concern
EVMS in support of engineering.
(EVM.02) Using EVM Reports, Models, and
Indices to Identify Problems Early
Primary Author: Mr. Gary Humphreys Humphreys & Associates
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 9:45-10:45/Willow B (2nd Floor)
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) Activity Duration Based Schedule Progress and Prediction Metrics
Primary Author: Mr. Scott William Crew PSP CCE EVP Administrative Controls Mgt
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 11:00-12:00/Willow B (2nd Floor)
Abstract:
Walt Lipke developed a practice called Earned Schedule (ES) that results
in time-based schedule performance metrics. These metrics are derived
from standard Earned Value (EV) cost data. ES metrics are more intuitive
in measuring schedule progress and more accurate in predicting schedule
completion, than those of the limiting EV schedule metrics. A reality is
that many schedules are not completely, if at all, resource/cost loaded.
This creates a situation where ES or EV metrics can lead to questionable
outcomes or cannot be used at all. Schedule activity duration data,
however, is or should be readily available in all schedules. This paper
will explore the concept of applying ES calculations to a schedule that
is not resource/cost loaded. By using activity duration data instead of
cost data, this paper will compare to ES and attempt to validate the
schedule progress and schedule completion predicting capabilities of the
resultant time-based metrics.
(EVM.04) Monitoring Productivity with
Earned Value Analysis -- A New Approach
Primary Author: Mr. Aldo Dorea Mattos Aldo Mattos Consulting
Co-author(s): Mr. Ricardo Delarue Murray & Roberts
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 1:45-2:45/Willow B (2nd Floor)
Abstract:
Labor has an undeniable effect on a construction project and represents
a major source of risk for the contractor. Better (or worse) than
expected productivity certainly causes a positive (or negative) impact
on the global schedule and cost, and thus must be properly monitored and
controlled. Measuring the efficiency of direct manpower is a task
ordinarily carried out by many contractors, but keeping records of
quantities of work performed and the corresponding man hours is not
enough. Some questions remain: (i) what is the overall efficiency of the
manpower?; (ii) what is its impact on the project as a whole?; (iii)
what is the trend of the labor production rates, and how does it affect
the originally estimated scenario? In this paper the authors introduce
the concept of Labor Cost Performance Index and Labor Schedule
Performance Index and present a methodology for measuring and
interpreting productivity and forecasting trends by means of Earned
Value Analysis.
(EVM.06) In Search of the Elusive "Corporate EVMS Certification"
Primary Author: Ms. Robin J Corona Parsons Corporation
Co-author(s): Mr. Michael R Nosbisch CCC PSP Parsons Corporation
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TTUE 3:30-4:30/Willow B (2nd Floor)
Abstract:
Four years ago, Parsons initiated an effort to have its earned value
management system (EVMS) recognized as being compliant with the ANSI
Standard (748) at a corporate level, an achievement that would benefit
the corporation as well as the U.S. Government. While the terminology
used by Parsons government clients to describe the process is slightly
different (the Department of Defense calls it an advance agreement while
the Department of Energy uses the term corporate certification), the
assumption by upper level management was that successes experienced on
project-specific efforts for either agency could be effectively
leveraged into a corporate system recognized by both. Nothing could be
further from the truth, however, and this presentation will document the
trials and tribulations that Parsons has experienced in attempting to
achieve what has turned out to be an extremely difficult goal, along
with recommendations for companies that are aspiring to do the same.
IT/IM IN PROJECT AND
COST MANAGEMENT (IT)
(IT.01) Data Warehouse or Data Closet - Size Doesn’t Really Matter
Primary Author: Mr. John G. Musgrove PE Bechtel Corporation
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: WED 11:00-12:00/Wallingford (3rd Floor)
Abstract:
The advent of data warehouses has provided quantities of information for
companies to analyze their businesses. Terabytes (TB) of data are not
required to benefit from a well-structured and populated database.
Bechtel’s Oil, Gas & Chemicals Global Business Unit’s OLAP Equipment
Data Storehouse provides detailed commercial and technical properties
for 9,000 pieces of mechanical equipment.
For reference, what are the various database sizes? The common Microsoft
Access database system in Microsoft Office has a limit of 2 Gigabytes
(GB). Much larger databases and warehouses abound.
Data warehousing became popular “in the late 1980’s and early
1990’s.”[1] Three years ago Sears purchased a 86-TB data appliance for
its operations.[2] JEA, the “eighth largest municipal utility company in
the U.S.”, won an industry award this year for their data warehouse
which was 3.4 terabytes in size.[3] And Teradata Corporation recently
unveiled a DW “appliance” which can accommodate from 50 TB to 50
Petabytes (PB).[4].
OWNER ISSUES (OWN)
(OWN.02) The Changing Face of Owner Project Risks
Primary Author: Mr. Stephen L. Cabano Pathfinder LLC
Audience Skill Level: Advanced
Presentation Length: 1 Hour
Time/Location: TUE 3:30-4:30/Diamond (1st Floor)
Abstract:
For purposes of this paper, we will be discussing the owner/operator
project risks associated with capital engineering and construction
projects in the Chemical and Hydrocarbon process industry. Also, during
these turbulent times in which the industry seems to vacillate every few
months, it should be noted that this paper is being written in January
2009 and will reflect the industry as it stands today.
(OWN.03) A Method for Developing a Truly Effective Construction Wage Rate
Primary Author: Mr. Jeffery J Borowicz CCC PSP CPCII
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: WED 8:00-9:00/Willow B (2nd Floor)
Abstract:
This article will address a method for developing an effective wage
rate, identifying only true rate components. Many wage rates are
developed and loaded with costs that should be carried as individual
cost issues. The article will look at the complexity of building-up an
effective wage rate to be as competitive as one can be. The rate will be
based on the financial resources of the company, insurance rates, safety
rating, and a number of other areas. Also to be considered is a
company’s day-to-day financial performance. The rate in this article was
developed using AFL-CIO union wage rates, incorporating US federal and
the State of Michigan taxes as a basis. This article will explore labor
rate issues that can save an owner thousands or millions of dollars
(based on the volume of annual construction work) and give contractors
(subcontractors) techniques to be the lowest bidder, and to collect
extra profit from change order work.
(OWN.04) Change Order Assessments for Guaranteed Maximum Priced (GMP) Contracts
Primary Author: Mr. John W. Stone CCE Deloitte & Touche LLP
Co-author(s): Mr. Michael J Bennink PE CCE PSP
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: WED 9:45-10:45/Willow B (2nd Floor)
Abstract:
There are several general categories of contracts that are common in
capital construction projects. The general categories include lump sum,
unit price, or cost plus with some sort of fee with the contractor. A
common contract that is popular in many industries for capital
construction projects is a negotiated cost-plus fee with a guaranteed
maximum price (GMP) contract. The GMP contract is similar to a lump sum
bid; however, the fee and/or profit is contractually limited to an
amount specified in the contract documents between the relevant parties.
The GMP contract provides potential advantages to an owner including
more owner control of the project work along with owner flexibility
regarding changes to the project. Generally, GMP contracts require
detailed requirements that document changes to the project work scope.
Many construction projects utilizing a GMP contact require contract
compliance assessments, which can include change order assessments. In
this article, some practical approaches and recommendations for GMP
change order assessments are discussed, which places a level of control
into the project and can greatly assist in compliance during the life of
the GMP contract.
(OWN.05) Project Audit - Joint Engineer and Accountant Team Approach
Primary Author: Mr. Jack A Lazarczyk CCC McGovern & Greene, LLP
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: WED 11:00-12:00/Willow B (2nd Floor)
Abstract:
An audit in its traditional, accounting sense is inadequate when applied
to the construction project. Accountants focus primarily on the fairness
of financial representation. The financial focus, however, will leave
unexamined other aspects of the transaction such as whether purchased
materials were properly installed, laborers spent their time utilizing
appropriate methods of construction. An accountant alone is not
qualified to address the issues of scope, methods, quality. That is a
realm of an engineer. Often times an accountant and an engineer would
work side by side reviewing the project but seldom would they work
together. A joint, an engineering and accounting, approach to the audit
should provide the Owner a greater assurance of the project status.
(OWN.06) A Case for Third Party Project Controls
Primary Author: Mr. Randall Scott Wyandt Vastco Project Systems Inc
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: WED 1:15-2:15/Willow B (2nd Floor)
Abstract:
The papers purpose is to promote the principal of third party Project
Controls as an independent entity on projects in the private and public
sectors. Project Controls are typically subordinate to Project
Management. The result of this relationship generates a motivation to
produce deliverables biased toward pleasing management. Identify several
examples of project controls failures. Examples would be several mega
projects with gross cost overruns and schedule delays. Bring attention
to the fact that project accounting is often performed by third party
firms. Identify SOX issues related to EVA and accounting practices.
Identify how project controls is responsible for accurate progress
tracking and cost forecasting to accounting. Point out the obvious
contradictions. Project Controls should be performed by independent
third parties whose only motivation is accuracy. This is a solution to
the problem of biased inaccurate Project Controls. This solution
elevates the position of Cost Engineering as a profession.
(OWN.07) Project Scoping in a Large Pipeline Company
Primary Author: Mr. Ray S Philipenko P Eng Enbridge Pipelines Inc
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: WED 2:30-3:30/Willow B (2nd Floor)
Abstract:
I work for a company that owns and operates some of the longest and
largest transmission pipelines in the world. The cross-country
transportation of liquid petroleum products is a complex operation that
requires many systems, facilities and people. Comprehensive project
scoping of transmission pipelines presents unique technical challenges
due to the variety of required facilities such as electrical
infrastructure, pump stations, tanks, metering, and pigging facilities.
Regulatory and environmental agencies make the execution of a project
equally as challenging.
This paper will analyze some of the tools, processes and methodologies
used to develop project scope for liquid transmission pipelines, at
various phases of project development up to project sanction. The paper
will cover examples of specific pipeline hydraulic design tools used as
a method of comparing lifecycle costs for different alternative
solutions. The criticality of process and procedures, combined with
stakeholder consultation will be reviewed to understand the value-added
during the project development phase. The paper will cover how these
elements facilitate the definition of a project scope that meets the
business need within the constraints of an existing pipeline expansion
or green-field project. Determining the most economical scope of work
for a pipeline is one of many critical components that contribute to
making good business decisions.
(OWN.S02) Challenges in Reporting Project Costs and Risks to Owner Decisionmakers (Sponsored by WPC)
Primary Author: Ms Alexia A Nalewaik CCE
Co-Author(s): Mr Jeffrey Witt Moss Adams LLP
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 8:00-9:00/Diamond (1st Floor)
Abstract:
Owners rely on project reports in order to make decisions. However, reporting is often inadequate for this purpose. For example, there may be too much or too little information, which confuses the Board or executives. Data may be misrepresented, incomplete, unreconciled, not validated, or simply inaccurate. Owner oversight of projects requires accurate, timely, and relevant status reporting, yet all too often it is not provided.
This paper identifies common pitfalls in project reporting, discusses the differences between accounting and project management software capabilities, and provides guidelines for developing periodic, consistent, useful reports to upper management.
(OWN.S03) Project Portfolio Management for Value Growth and Cost Control
Primary Author: Ms. Beth Britt UMT Consulting Group
Audience Skill Level:
Presentation Length: 1 Hour
Time/Location: MON 3:45-4:45/Grand A Ballroom (2nd Floor)
Abstract:
Budgets and priorities can change rapidly and the ability for managers to present options and a revised execution path to steering committees is critical. What will happen to companies that focus exclusively on cost cutting measures but neglect opportunities that harness innovation, promote and launch new products, and adhere to strategic objectives? In a tough economy, there is a greater demand for a rigorous methodology to rationally prioritize and select the project initiatives that will deliver the highest value to the enterprise given cost and resource constraints. Project portfolio management can positively influence the top and bottom line, but getting it right can be difficult. This presentation examines best practices around Strategic planning and cost control using methodologies and analytics that are endorsed by Global 1000 companies and industry thought leaders. Learn how to find a structured approach coupled with sophisticated software to reduce the cost of your IT portfolio, to identify the right mix of initiatives with the highest value and lowest investment.
PROJECT MANAGEMENT (PM)
(PM.02) Attributes of a Harmonious Project Team
Primary Author: Dr. Parviz F Rad PE CCE Project Management Excellence
Co-author(s): Mr. Vittal S. Anantatmula CCE Western Carolina University
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: MON 11:15-12:15/Issaquah (3rd Floor)
Abstract:
The success of a project team will be judged based on the measurable
values of scope, cost, and duration. Notwithstanding, enlightened
organizations pay special attention to the people facets of projects,
with implicit notion that fostering harmonious team work impacts the
performance of the project in subtle but significant ways. Measurable
success of the project in crafting the desired deliverable would require
the concerted and unified efforts of a harmonious team. A delightful
synergy occurs in well running teams and efforts should be made to
foster and encourage that synergy. People issues and teamwork are
team-specific, partly dependent on culture of the enterprise, and
minimally dependent on team’s mission, in that the team culture is
minimally project-dependent and minimally content-dependent. A
description of the team facets should include the manner by which the
members of the team relate to each other, and cooperate with each other,
toward their unified mission. This paper will outline practical
strategies for achieving consistency and repeatable success for the team
activities.
(PM.03) Organizational Change: All We Want is Better Projects - Why So Difficult?
Primary Author: Mr. Philip (Phil) James Gardner P Eng PMP Pretium Project Services Inc.
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: MON 2:00-3:00/Issaquah (3rd Floor)
Abstract:
Organizational Change is increasing in importance and regularity.
Although more critical than ever, change is reported to fail most of the
time. Some organizations don't believe they need Change Management;
others manage on an ad hoc basis. Research shows 50-80% failure levels.
It seems that we simply don't take change seriously.
The main 'reason' for failure is resistance but analysis shows many
contributing factors: complacency, fear, sponsorship, communications,
etc. These, in turn, trace to root causes: knowledge, culture and
leadership. All reasons for failure relate to people.
The concept of Change Management describes a structured approach to
transitions in individuals and groups that moves the target from a
current state to a desired state. Successful change doesn't happen by
chance. There is an entire body of knowledge behind Organizational
Change; roles of the most significant levers of success are discussed,
including: leadership, knowledge, culture, structured approach,
stakeholder management, communication, urgency. The power of models is
examined: change, gap analysis, maturity, competence, culture,
organizational environment (useful for Project Management improvements).
Examples of change in society are considered, and advice is offered on
how to approach success.
(PM.05) Designing and Constructing
Cost-Neutral Greener Facilities in the “Energy-Climate” Era
Primary Author: Mr. John R. Spittler PE PMA Consultants LLC
Co-author(s): Mr. Dax Ponce de Leon PMA Consultants; Mr. John M Zann PE PSP PMA Consultants LLC
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: MON 10:00-11:00/Issaquah (3rd Floor)
Abstract:
In “Hot, Flat, and Crowded”, Thomas Friedman makes a compelling argument
for the convergence of global warming, global flattening, and global
crowding giving birth to the “Energy-Climate” era. Given growing
uncertainty surrounding future energy supplies and a built environment
in the United States that accounts for 39% of energy use, the authors
agree with Friedman’s premise and believe that every building should be
a “greener” building. Yet how do we overcome the current paradigm that
the cost of building “green” is 5 to 10% higher than conventional
construction? Using LEED Silver certification as a baseline, the authors
offer five suggestions that can make designing and constructing a
generic mid-rise commercial/residential building cost neutral. The
solution includes establishing an “integrate everything” mindset, which
leads to both starting and planning differently, employing emerging
technologies such as Building Information Modeling (BIM), and changing
procurement methods, contracting strategies, and relationships amongst
participants.
(PM.08) Quality Control, Assurance and Verification in Service and Construction Contracts
Primary Author: Mr. Terry L Borne PE CCE U.S. Army Corps of Engineers,
Seattle District Ft.
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 1:45-2:45/Diamond (1st Floor)
Abstract:
As part of the project triad of Quality, Schedule and Cost,
quality can be the most overlooked due to time and dollar constraints of
a majority of projects. This paper presents the theory and methods of
quality control and quality assurance functions as related to both
services and construction contracts. Although most of the information
provided deals with United States Government contracts, these theories
and methods can be used almost universally.
(PM.09) Setting Up a Project Management Office - Public Sector Environment
Primary Author: Mr. Habib Abdullah P Eng University Of Calgary
Co-author(s):
Audience Skill Level: Basic
Presentation Length: 1 Hour
Time/Location: WED 8:00-9:00/Wallingford (3rd Floor)
Abstract:
In such situation with the world financial crisis especially in fast
track projects, with just enough budget, it becomes mandatory to have
your financial controller, key staff, programmers and other key personal
in a very close contact with you with the right information in a crystal
clear mode. This will allow you to make the right decision in the right
time. In this paper we will address the common problems associated with
managing multiple projects. The objective is to introduce a simplified
approach for providing practical tools to all management levels.
(PM.S02) Characteristics of a Project-Friendly Enterprise
Primary Author: Dr Parviz F Rad PE CCE Project Management Excellence
Co-Author(s): Mr. Vittal S. Anantatmula Western Carolina University
Audience Skill Level: Advanced
Presentation Length: 1 Hour
Time/Location: MON 3:45-4:45/Issaquah (3rd Floor)
Abstract:
In unsophisticated organizations, the enterprise strategic objectives have not been clearly defined, and therefore the operational personnel are unclear as to what projects, and operational enhancements, would meet those objectives. Therefore, the senior management would feel compelled to oversee the implementation of these strategic objectives. The oversight process involves attending the review boards for the vast majority of projects, proposals, and portfolios. Ideally, the senior management should be directly concerned about the philosophy and concepts of strategic objectives, and not necessarily the means of achieving the philosophies that are articulated in the strategic statements. To that end, the senior management must have a detailed articulation or organizational strategic objectives, which in turn can be used by project personnel to align the projects or proposals to those strategies without direct intervention of the senior executives. This paper will describe the characteristics of an organization that facilitates, without direct involvement of senior management, the work of project teams, which will ultimately result in higher organizational profits.
PLANNING AND
SCHEDULING (PS)
(PS.01) AACE Recommended Practices 49R-06 "Identifying the Critical Path" & 26R-03 "Scheduling Specification Models"
Primary Author: Ms. Hannah E Schumacher Kitchell Contractors
Co-author(s): Mr. Timothy T Calvey PE PSP Calvey Consulting. LLC
Audience Skill Level: Basic
Presentation Length: 1 Hour
Time/Location: MON 10:00-11:00/Aspen (2nd Floor)
Abstract:
This Session will be a presentation and open discussion on New
Scheduling Recommend Practices RP 49R-06 "Identifying the Critical Path"
& RP 26R-03 "Scheduling Specification Models".
RP 49R-06 defines the various accepted methods for determining the
critical path. It focuses on the types of analyses and the limitations
of each in identifying the critical path of network schedules. The RP
provides guidelines for the project scheduler to review a network and
determine the critical path and to understand the limitations and
assumptions involved in a critical path assessment as part of the Total
Cost Management (TCM) project planning, scheduling forecasting, and
change management processes.
RP 26R-03 is a comprehensive collection of scheduling specifications and
has received numerous peer review comments that need to be addressed.
This session will review the guidelines and provide an explanation for
recommendations made.
(PS.03) Planning the Planning for Mega Scale Projects
Primary Author: Mr. Madan Lal Bairwa CH2M HILL
Audience Skill Level: Advanced
Presentation Length: 1 Hour
Time/Location: MON 2:00-3:00/Aspen (2nd Floor)
Abstract:
As the economy of a country grows, demand for infrastructure development
projects like airports, ports, roads, power plants, steel plants etc
also grow proportionately. These infrastructure projects require huge
investments with fast track completion. To manage the demand of these
projects in respect of time and cost; sound planning is required before
execution start. To manage this planning, a proper plan/methodology
should be in place to meet and execute requirement of all stakeholders.
This paper addresses the sequence of planning activities (what drives
what e.g. defining progress measurement index (PMI) before developing a
management information system (MIS) or progress reporting, risk
management system before defining a change management system); their
relationship with respect to other departments. The focus mainly is on
progress measurement, progress reporting, schedule development and
maintenance, change management and risk management. This paper will
result into better projection of progress data at all levels, less
duplication of works hence increase in productivity of the project
controls professionals or early detection of prospective changes on the
project.
(PS.04) Schedule Compression for Construction Projects by Interruption in LOB Scheduling
Primary Author: Dr Gholamreza Heravi University of Tehran
Co-Author(s): Mr Seyyed Mohammad Amini
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: MON 3:45-4:45/Aspen (2nd Floor)
Abstract:
In the Line-of-Balance (LOB) Scheduling it is necessary that all of the
activities are progressed in equal rate of production to establish the
schedule as a balanced diagram. Nonetheless in many construction
projects, there are one or more activities which progress faster than
the other activities. In this paper, interruption of activities with
higher production rates and allocate resources to other activities to
decrease the duration of project is studied. Moreover the algorithm for
calculation of number of required interruptions, optimal time and
project unit for applying interruption and also duration of each
interruption in suitable activities which project manager can start them
earlier is introduced.
(PS.05) Understanding Schedule Change Management
Primary Author: Mr Edward E Douglas III CCC PSP ACTPMA LLC Consulting
Audience Skill Level: Basic
Presentation Length: 1 Hour
Time/Location: TUE 9:45-10:45/Aspen (2nd Floor)
Abstract:
Schedule change management refers to the process of managing any change
to the scope of work: or any deviation, performance trend or change to
an approved or baseline project control plan. Schedule change management
helps ensure that the schedule always addresses the requirements of both
the project team and the customer. During the course of the project,
trends, disruptions, deviations and changes will be occur and must be
evaluated. The time related issues must be disposed of appropriately in
the schedule change management process and incorporated into the
approved baseline schedule. The Planning and Scheduling Professional’s
(PSP) required knowledge and skills to support the project management
team successfully in the schedule change management process will be
discussed.
(PS.08) Building Green -- Potential Impacts to the Project Schedule
Primary Author: Ms. Jacqueline Therese Doyle PE PMA Consultants
Co-Author(s): Mr. Robert B Brown PE PMA Consultants LLC; Mr. Dax Ponce de Leon PMA Consultants; Ms. Laura Ludwig Cotter Consulting
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 11:00-12:00/Aspen (2nd Floor)
Abstract:
Green Technology provides an innovative means to reduce the
environmental impact of construction projects as well as to reduce
life-cycle building costs for owners. In order to efficiently and
effectively implement this new technology, it will be necessary for
Owners, Designers, Construction Managers and Contractors to modify and
enhance the way they have historically planned and executed design and
construction work. Successful firms will need to learn pro-active Green
management techniques in order to continue to provide quality service to
their clients. The authors have learned that typical CPM Schedules need
to be modified and enhanced when managing Green projects.
The authors share lessons learned on developing and managing CPM
Schedules on numerous projects including a new large hospital, an
8-story mixed-use building and a 7-story parking garage with first floor
offices. These structures all have, or are planned to achieve, various
levels of LEED Certification, from Silver to Platinum. Leadership in
Energy and Environmental Design (LEED) is a term created by the United
States Green Building Council.
The authors describe some of the key cost, schedule and contract
documentation issues that required modified schedule management
techniques. The underlying green principals will be described as well as
their general impact on the project’s CPM schedule.
(PS.10) Top Ten Scheduling Mistakes and How to Prevent Them
Primary Author: Mr. Joseph Arthur Lukas PE CCE PMCentersUSA
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 1:45-2:45/Aspen (2nd Floor)
Abstract:
Project personnel typically know how to use a scheduling software tool
such as Primavera or Microsoft Project, either from a training course,
mentoring from colleagues or self-learning. Unfortunately, many people
preparing schedules do not understand basic scheduling concepts and
therefore utilize incorrect techniques in preparing and maintaining
their schedules. This paper is based on observations made by the author
in reviewing numerous project schedules for clients over the past
several years. Most schedules contained errors that greatly reduced the
accuracy of the schedule. Based on these reviews, this talk will present
the top ten mistakes people make with project schedules, and describe
how these mistakes can make a schedule very misleading and incorrect.
This presentation will also discuss the correct techniques that should
be used, along with a recommended procedure for preparing schedules.
This talk should be of interest to people who currently prepare
schedules and want pointers on how to create more effective schedules.
If you believe you are a skilled scheduler, read this paper to see
whether you are making any of the common scheduling errors. You may be
surprised!
(PS.12) An Agency Enterprise Implementation of a Project Management Program
Primary Author: Ms. Cathy Hastie HDR Inc
Audience Skill Level: Basic
Presentation Length: 1 Hour
Time/Location: WED 8:00-9:00/Aspen (2nd Floor)
Abstract:
In 2005, the Washington Department of Transportation (WSDOT) was faced
with a dramatic increase in taxpayer-funded project work, which came
with a Legislative mandate to provide more transparent, better project
management and accountability to the public. WSDOT hired a consultant
team, the Statewide Program Management Group (SPMG), to develop a
Strategic Plan to determine how to meet these needs. Following the
acceptance of the plan, the second phase was its execution, with the
Project Management and Reporting System (PMRS) Implementation Program.
The results of this Program to date include the selection, configuration
and partial implementation of Primavera and LiveLink enterprise-wide
software, implementation of industry-standard project management
techniques and processes, and the creation of an in-house training and
mentoring “Project Management Academy” to equip staff with the knowledge
they need to meet the increased expectations of the Legislature, their
project teams, and the public.
With one year remaining in this 5-year effort, the process has not been
without a few bumps in the road. This paper describes the Program and
its evolution, as well as some of the challenges and successes WSDOT has
faced developing and implementing it.
(PS.13) Schedule Collaboration on Mars Science Laboratory with Multi-Users and Tools
Primary Author: Ms. Julie K Owen PSP CCC Jet Propulsion Laboratory
Co-Author: Mr. Thomas Barnhart Lockheed Martin Space Systems
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: WED 9:45-10:45/Aspen (2nd Floor)
Abstract:
NASA’s Jet Propulsion Laboratory (JPL) is a non-profit enterprise
operated by the California Institute of Technology (Caltech). JPL is a
key NASA center specializing, among other things, in robotic exploration
of space. JPL is known worldwide for delivering unprecedented space
missions. JPL delivers these amazing products by leveraging world class
capabilities in science, engineering, and technology and utilizing their
highly skilled in-house workforce and strategic partners. Because of the
anticipated size and complexity of the project, early on the decision
was made to implement Primavera Enterprise for schedule management. This
enabled multi-user scheduling using multiple tools and it leveraged
limited resources. This following paper outlines how the scheduling
implementation occurred, including data integration and validation with
how-to tips and tricks for collaborating with Primavera, P6, and
Microsoft Project, MSP 2003.
(PS.14) (Panel Discussion) The Great Debate: Punchlist - Before or After Substantial Completion?
Primary Author: Mr. Christopher W Carson PSP
Co-Author(s): Mr. John C. Potter PSP Alpha Corporation; Mr.
Mark C Sanders PE CCE PSP; Mr. John J Stauffer
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: WED 1:15-2:15/Aspen (2nd Floor)
Abstract:
The last one percent of a project can be the most difficult portion to
execute. Substantial Completion is often the first milestone associated
with delay computations. The necessary work that completes the project
allowing Final Completion is often referred to as “punchlist” work, but
it is usually the last thing on the minds of the project management team
at the beginning of a project, which means that it can be the most
difficult portion of a project to schedule. Punchlist work can be a
source of disputes regarding the final quality of the work, the timing
of occupancy, the start of warranty periods, and the assessment of delay
costs or liquidated damages. Many of these activities involve other
terms used in scheduling, such as Beneficial Occupancy, Building
Commissioning and Final Inspection, confusing the completion issues. In
what has become a tradition at AACE International, the authors have
prepared to debate these topics at the 2009 Annual Meeting. This paper
presents an overview of the issues for the debate.
(PS.15) Much Ado About Dates: Understanding P6 Date Information
Primary Author: Mr. Faik Burak Evrenosoglu CCE PSP
Co-Author(s): Mr. Ronald M Winter PSP Ron Winter Consulting LLC
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: WED 2:30-3:30/Aspen (2nd Floor)
Abstract:
Besides a fundamental shift in the way that dates are conceptualized,
Primavera Inc’s newest and most powerful scheduling software, P6, has
more kinds of useable dates than any other software in existence. The
majority of P6 users are unaware of the underlying calculations for new
date fields and their usage.
P3 users are frequently confused by the issue of dates when converting
to P6. This is partly because the same company produces both P3 and P6
and partly due to the incorrect assumption that P3 must be an earlier
version of the current P6 software. Date fields with similar names in
both P3 and P6 behave differently in one than in the other. A plethora
of new date fields in P6 create a steep learning curve. A lack of
documentation regarding these features creates a potential for real
confusion.
This paper discusses the underlying calculations for P6 date fields and
their potential uses. It also identifies the issues related to them.
(PS.S02) Update on RDM 2009
Primary Author: Mr. Fredric L. Plotnick PE
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 8:00-9:00/Aspen (2nd Floor)
Abstract:
The Gantt chart, or bar-chart, was first developed in 1910. The first
computer automated Gantt chart, or Critical Path Method (CPM) calculated
schedule, was developed in 1956. This was later labeled the Activity
Diagramming Method (ADM) variant of CPM. A more powerful variant, the
Precedence Diagramming Method (PDM) was developed and commercialized in
1964. Introduction of the Relationship Diagramming Method (RDM) variant
of CPM in 2005 was the first major variant since that time. RDM has now
been commercially exploited and is currently provided in Primavera
Pertmaster (aka Oracle Risk Analysis.) Work continues with Oracle
Primavera for transfer of the new technology to P6. Discussions are
ongoing with Microsoft, Delkek and other software developers.
(PS.S03) An Introduction to Critical Chain Project Management
Primary Author: Mr. Hilbert Robinson Afinitus Group, LLC
Co-Author(s): Dr Robert Richards Stottler Henke
Audience Skill Level:
Presentation Length: 1 Hour
Time/Location: MON 11:15-12:15/Aspen (2nd Floor)
Abstract:
This paper will introduce Critical Chain and explain its basic concepts It might be said that CPM scheduling concerns itself with only the technical aspects of running a project whereas Project Management involves the human side. Critical Chain scheduling seeks to wed these two aspects of running a project into a single system.
Project Management involves making and keeping commitments under uncertainty, accompanied by complexity and interdependency. Falling short of a commitment can result in the project being deemed a failure, with attendant negative consequences to stakeholders. Evidence suggests a high rate of Project Management failure exists industry-wide. Critical Chain Project Management deals with various scheduling issues, including the Student Syndrome, Parkinson’s Law, multi-tasking, buffering and buffer management. A decade of field testing and refinement of Critical Chain has demonstrated how it has increased project success.
DECISION AND RISK
MANAGEMENT (RISK)
(RISK.01) Recommended Practices for Risk Analysis & Cost Contingency Estimating
Primary Author: Mr. John K Hollmann PE CCE CEP Validation Estimating, LLC
Audience Skill Level: Basic
Presentation Length: 1 Hour
Time/Location: TUE 8:00-9:00/Issaquah (3rd Floor)
Abstract:
In 2008/9, AACE’s Decision and Risk Management (DRM) Committee published
an exciting new series of Recommended Practices (RP) for analyzing risks
and estimating cost contingency. The first RP establishes basic
principles that any practice should consider. This is followed by RPs on
three contingency estimating methods: Range Estimating, Parametric
Estimating, and Expected Value. The Parametric Estimating RP is
supported by Excel® working tools that apply methods published by John
Hackney and the RAND Corporation. This paper starts by summarizing each
of the RPs and the example tools. This is followed by a description of a
hybrid method used by the author that combines Parametric and Expected
Value methods in a way that leverages the advantages of both. Finally,
there is a discussion of some methods that are not recommended and a
challenge for industry to support more research. Note that while the
paper borrows text liberally from the RPs (to avoid misrepresentation),
it reflects the views of the author and not AACE or the DRM committee;
users must refer to the RPs before judging, deciding or taking any
action.
(RISK.02) A Fresh Look at Some Past Risk Management Techniques
Primary Author: Mr. David A. Norfleet CCC CFCC Professional Investigative Eng
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 9:45-10:45/Issaquah (3rd Floor)
Abstract:
Even though the definitions, techniques, and tools used in both risk
assessment and risk analysis may change over time, it seems that some
basic questions remain the same. One of those fundamental questions is,
“Is there an effective method of integrating technical, schedule, and
costs risks into the risk management model?” An issue facing many
programs is an ill-defined technical baseline, i.e. scope, and that
drives both schedule and cost uncertainty.
These methods, still largely used in the government sector, seem to
effectively address all three parameters of program risk; technical,
schedule, and cost. In other words, “Can the program as presently
structured technically and with respect to schedule, be completed for
the budgeted amount of money?”
This paper will look at the methodologies but, more importantly, attempt
to bridge the science and math used in the risk management process to
the practical application
(RISK.05) Life Cycle Cost Analysis for Transportation Projects
Primary Author: Mr. Robert H Harbuck PE CCE CEP Parsons Brinckerhoff
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 3:30-4:30/Issaquah (3rd Floor)
Abstract:
Life Cycle Cost Analysis (LCCA) is an economic assessment technique that
is used to evaluate competing infrastructure alternatives based on the
estimated total cost of ownership. LCCA takes into account all of the
costs associated with a particular facility during its entire life span,
including initial capital costs, operations and maintenance cost,
replacement cost, and salvage or disposal costs. The use of LCCA gained
prominence in the 1960s in response to U.S. government agencies desire
to improve the cost effectiveness of equipment procurement. Over the
intervening years LCCA has grown in its use throughout a number of
industries, particularly in the area of building construction. The
application of LCCA to transportation infrastructure projects is
relatively new when compared to other industries and has been primarily
used on highway projects to evaluate pavement and bridge construction
and rehabilitation alternatives. The paper will present a look at the
state of practice for LCCA as it pertains to the transportation industry
and will also highlight some state of the art practices that are
currently being considered.
(RISK.06) A Recommended Total Project Cost Risk Model Approach
Primary Author: Mr. Christopher P Caddell PE PMA Consultants, LLC
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: WED 8:00-9:00/Issaquah (3rd Floor)
Abstract:
In the current world of project cost risk analysis, models to determine
a probabilistic Total Project Cost can vary considerably. Two common
approaches are to 1) put probabilistic cost distributions directly on
the cost items, and 2) apply impact costs to the qualitative assessment
of identified risks. However, both approaches have shortcomings that
decrease the value of the assessment. This paper recommends a cost
modeling approach that uses separate cost elements and discrete cost
variables for scope, price, productivity, and duration, which represent
the identified risks, but avoids the shortcomings from using the risk
register directly. This approach, which can be used by both owners and
contractors, helps provide a realistic assessment of the probabilistic
total project cost by linking the identified risks to the cost estimate,
recognizing compounding impacts on costs, avoiding overlapping risks,
and considering the schedule variability impact on the cost. The end
result provides the project team with a higher confidence in the results
and a workable set of priorities for areas of high risk.
(RISK.07) Risk Management on the National Compact Stellarator Project (NCSX)
Primary Author: Mr. Robert T Simmons Princeton Plasma Physics Lab
Co-Author(s): Mr Philip J Heitzenroeder Princeton Plasma Physics
Laboratory; Mr Wayne T Reiersen Princeton Plasma Physics
Laboratory; Dr George H Neilson Princeton Plasma Physics
Laboratory; Mr. Ronald Strykowsky Princeton University; Mr.
Donald Rej Los Alamos National Laboratory; Mr. Christopher O.
Gruber CCC Independent Consultant
Audience Skill Level: Basic
Presentation Length: 1 Hour
Time/Location: WED 9:45-10:45/Issaquah (3rd Floor)
Abstract:
In its simplest form, risk management is a continuous assessment from
project start to completion that identifies what can impact your project
(i.e., what the risks are)., which of these risks are important, and
identification and implementation of strategies to deal with these risks
(both threats and opportunities). The National Compact Stellerator
Experiment (NCSX) Project was a “first-of-a-kind” fusion experiment that
was technically very challenging, primarily resulting from the complex
component geometries and tight tolerances. Initial risk quantification
approaches proved inadequate and contributed to the escalation of costs
as the design evolved and construction started. After the Project was
well into construction, a new risk management plan was adopted. This
plan was based on successful Department of Energy (DOE) and industrial
risk management precepts. This paper will address the importance of
effective risk management processes and lessons learned. It is of note
that a steady reduction of risk was observed in the last six months of
the project.
(RISK.08) Defining Risk and Contingency for Pipeline Projects
Primary Author: Ms. Cristina Figueiredo P Eng Enbridge
Co-Author(s): Mr. Brent Kitson P Eng Enbridge Pipelines Inc
Audience Skill Level: Basic
Presentation Length: 1 Hour
Time/Location: WED 1:15-2:15/Issaquah (3rd Floor)
Abstract:
Pipeline projects are linear projects that often stretch over several
communities, states, provinces or even countries. Local economic
conditions will impact the cost of the project and can vary by location.
Pipeline projects will be impacted by economic volatility. Alberta is an
example of an economy that has experienced an unprecedented rate of
escalation in the labour market in recent years.
Large pipeline projects are impacted by global economic conditions.
Components such as steel for pipe and pipe fabrication are impacted by
the global market.
The scoping and execution of pipeline projects require the input and
coordination of numerous internal stakeholders, customers, regulatory
bodies, resources and public bodies.
Identifying risk and determining an appropriate amount of contingency is
a challenge that must be addressed to ensure accurate information is
available to base critical financial decisions upon.
This paper will address processes to define risk and contingency for
pipeline projects. Some of the typical risks associated with pipeline
projects will be discussed.
(RISK.10) Mitigating Cost and Schedule Risks on Power Generation Construction Projects
Primary Author: Mr. Anthony Gonzales Spire Consulting Group LLC
Audience Skill Level: Basic
Presentation Length: 1 Hour
Time/Location: WED 2:30-3:30/Issaquah (3rd Floor)
Abstract:
Construction of power generation facilities is challenging and unique.
As governments and businesses look to expand power generation
facilities, meeting schedule and cost goals given the small amount of
qualified resources available will be an increasing challenge. As a
result, construction professionals have to be apprised of the increasing
challenges faced by contractors, subcontractors and suppliers in
constructing alternative energy projects. Ideally, the bid price and
schedule should account for the special needs contractors and suppliers
may encounter on power projects regarding quality, submittals,
scheduling and coordination, procurement, transportation, change orders,
delays and disruptions, unforeseen conditions, nonconforming
construction documents and material/equipment fabrication. This article
provides considerations for what contractors and suppliers need to
consider when preparing and negotiating costs, schedules and contracts
for working on power generation construction projects.
(RISK.S02) Risk Base Estimate Self-Modeling
Primary Author: Dr Ovidiu Cretu PE Washington State DOT
Co-Author(s): Mr. Terry Berends PE Washington State DOT
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: TUE 1:45-2:45/Issaquah (3rd Floor)
Abstract:
Cost estimating and risk analysis (risk-based estimate) usually require employing Monte Carlo Method (MCM) in developing the range and shape of the estimated project cost. The MCM mostly requires dedicated software and specialized users to model and compute large amount of data generated within the process of simulation.
The Risk-Based Estimate Self-Modeling (RBES) eliminates the need of specialized software by allowing a regular excel user to develop an integrated cost and schedule estimate with limited knowledge of risk analysis. The RBES has the flexibility of entering simple independent risks and more sophisticated risks that are dependent of each other and/or correlated. In this way large or small projects can benefit of the value added by employing the Risk-Based Estimate process.
The outcome of the RBES consists of graphs, and tables that present the project cost in current year dollars, and year of expenditure dollars, plus the Advertisement, and End Construction date. In addition to that the RBES computes the tornado diagram of the most significant cost and schedule risks.
SKILLS AND KNOWLEDGE
OF COST ENGINEERING (SK)
(SK.01) Written and Oral Communication
Primary Author: Mr. Michael Steven Franklin CCE Harris Group Inc
Co-Author(s): Mr. Donald F McDonald Jr PE CCE PSP Fluor Enterprises Inc
Audience Skill Level:
Presentation Length: 2 Hours
Time/Location: MON 10:00-12:15/Cirrus (35th Floor)
(SK.02) Estimating
Primary Author: Mr. Charles P Woodward PE CCE CEP Burns & Roe Services Inc
Audience Skill Level:
Presentation Length: 3 Hours
Time/Location: MON 2:00-6:00/Cirrus (35th Floor)
Abstract:
This program will introduce the attendee to estimating basics and
continue through conceptual engineering methods. The program will
introduce basic definitions and methods of estimating, discuss
applications and procedures and present the complete development process
of a detailed estimate. The program will conclude with methods of
developing class 5 (conceptual) estimates. The attendee should bring a
calculator capable of performing exponential calculations.
(SK.03) Planning and Scheduling
Primary Author: Dr. Joseph J Orczyk PE CCE Purdue University
Audience Skill Level:
Presentation Length: 3 Hours
Time/Location: TUE 8:00-12:00/Cirrus (35th Floor)
Abstract:
Workshop approach to basic planning/scheduling skills. The workshop
begins with an overview of project planning and scheduling followed by
an example and an exercise to review network calculations. Next, the
allocation and leveling of project resources are explored followed by an
example and an exercise. The remaining part of the workshop is dedicated
to the compression or acceleration of the project schedule at the least
cost. Please bring a pencil and be ready to participate in the workshop
discussions and exercises.
(SK.04) Statusing for Progress and Forecasting Trends
Primary Author: Dr Sean Thomas Regan CCE CEP
Co-Author(s): Ms Lisa Dianne Matas EVP
Audience Skill Level:
Presentation Length: 3 Hours
Time/Location: TUE 1:45-5:45/Cirrus (35th Floor)
(SK.05) Earned Value Management
Primary Author: Dr. Sean Thomas Regan CCE CEP
Audience Skill Level: Intermediate
Presentation Length: 3 Hours
Time/Location: WED 8:00-12:00/Cirrus (35th Floor)
(SK.06) Change Management for EPC Contracting
Primary Author: Mr. Donald F McDonald Jr PE CCE PSP Fluor Enterprises Inc
Audience Skill Level: Intermediate
Presentation Length: 2 Hours
Time/Location: WED 1:15-3:45/Cirrus (35th Floor)
TOTAL COST MANAGEMENT (TCM)
(TCM.01) Project Development and Cost Estimating -- A Business Perspective
Primary Author: Mr. Gordon K. Good Enbridge
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: MON 10:00-11:00/Willow B (2nd Floor)
Abstract:
Sound project development and cost estimating practices, including the
appropriate application of AACE recommended practices and principles,
are not an end unto themselves. Their primary purpose is to facilitate
effective and appropriate business decisions. Business drivers are
varied and diverse, and depend on many factors, including industry
sector and organizational strategies and goals. It’s important to
effectively integrate the often complex technical elements of a capital
project, including scope, schedule, risk and cost estimates, into
reliable and appropriate business decisions, which result in successful
projects. The time spent, the costs incurred, and the level of project
definition required, depend on the type and impact of those business
decisions. This paper discusses key project development principles and
processes, identifies common business decision criteria, and describes
some of the key business and project drivers that are specific to the
pipeline industry.
(TCM.02) (Panel Discussion) Adding Value by Reinventing Yourself as a Total Cost Engineer
Primary Author: Mr. James Alfred Johnson Heery International
Co-Author(s): Mr. William E Kraus PE CCE; Mr. Richard A Selg CCE
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: MON 11:15-12:15/Willow B (2nd Floor)
Abstract:
One word describes the current practice of cost engineering:
specialization. There are currently eight different specialties in AACE
in which one can become certified. Plus, cost engineering, as practiced,
is following the same pattern of dividing cost engineering into ever
smaller micro-disciplines. Even academia is following this trend. A
contrarian viewpoint is that the industry should take a more holistic,
integrated approach as implemented by master cost engineers. The authors
propose a paper and to host a forum that will debate both sides of the
issue. One team will defend the prevailing practice that specialists can
deliver the most value to clients because the field is so broad no one
can master them all. The other team will defend its position, which is
that generalists, or total cost engineers, can add more value because
the concepts, as well as the latest software, are inextricably linked. A
lively discussion is expected and encouraged.
(TCM.03) Cost Estimating, Project Performance and Life Cycle
Primary Author: Mr. Kul B. Uppal PE CEP
Audience Skill Level: Advanced
Presentation Length: 1 Hour
Time/Location: MON 2:00-3:00/Willow B (2nd Floor)
Abstract:
In today’s very competitive environment most owner companies have
invested considerable amount of time and money in tools and techniques
designed to improve project performance. In general projects are the
vehicle by which we turn business opportunities into valued successful
business assets. Successful projects are defined as the ones that are
delivered on time, within budget, and meet established business
objectives. This paper will highlight extensive use of project
management processes and all related activities for Front end
engineering design (FEED) where a multifunctional team helps define and
freezes the scope of work prior to preparing an estimate for full
funding. For any project management system to be successful, it needs to
follow a structured project management process. This paper will present
various techniques that can help achieve consistent project performance
through entire project life cycle by concentrating on three major
constraints – cost, schedule and performance.
Finally if a company builds successful projects, it can increase its
revenues, decrease life cycle costs (operating and maintenance costs),
and use less capital to achieve its business goals.
(TCM.04) Using the TCM Framework to Increase the Quality, Objectivity, Transparency, and Reproducibility of Risk Analyses
Primary Author: Mr. Derek Michael Ladd CDM
Co-Author(s): Mr. Darwin L Nelson PE CDM; Mr. Gordon Lee Ballentine Risk Strategics, LLC
Audience Skill Level: Intermediate
Presentation Length: 1 Hour
Time/Location: MON 3:45-4:45/Willow B (2nd Floor)
Abstract:
Incorporating lessons learned and proven practices in the risk
management process can lead to enhancement of the quality, objectivity,
transparency, and reproducibility of risk management results. An
effective characterization of risk requires determining what types of
risk information would be useful for decision makers, as well as
developing quantitative and qualitative measures of risk to enhance the
effectiveness of decisions made. Regardless of analytical methodology,
each risk measure (statistics, sensitivity analysis, scenario
development, simulation or expert judgment) must be defined and
communicated in a consistent manner. In this presentation, we
demonstrate the use of AACE International's Total Cost Management
Framework to enable deliberative and consistent methods of treating and
communicating uncertainties that increase credibility, relevance and
understandability for decision makers within an Architectural,
Engineering and Construction firm environment.
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