best practices for exceeding project goals and reducing risk on … · 2016-10-24 · 2...
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![Page 1: Best Practices for Exceeding Project Goals and Reducing Risk on … · 2016-10-24 · 2 Presentation Team Robyn Minter Smyers Partner, Thompson Hine 216.566.5830 Robyn.Smyers@ThompsonHine.com](https://reader033.vdocument.in/reader033/viewer/2022050115/5f4c183f23b16b6b6c69e2df/html5/thumbnails/1.jpg)
Best Practices for Exceeding Project Goalsand Reducing Risk on Construction Projects
Presented by:Robyn Minter SmyersAlan S. RitchieHeather A. BartziErin Luke
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Presentation Team
Robyn Minter SmyersPartner, Thompson [email protected]
Alan RitchiePartner, Thompson [email protected]
Heather BartziPartner, Thompson [email protected]
Erin LukeSenior Associate, Thompson [email protected]
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Beginning of Design and ConstructionProject• Ideal Process
• Plenty of Time
• Ample Budget
• Project Goals ClearlyIdentified
• Competitive Selection ofDesigner and Constructor
• Abundant Information
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But, IRL…
• Starting Tomorrow
• Way Over Budget
• Unresponsive Proposals
• Scope of Project is a
Moving Target
Result: Do what you did for the last project with the
same design and construction team.
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• Late Completion
• Over-Budget
• Bad Fit, No Cooperation Among Team
• Disappointment
• Unhappy Stakeholders
What Happens?
Basically…
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The Fix
• Effectively Plan the ProjectEarly
• Align Goals and AddressProject Risks and Challenges
• Select Appropriate ProjectDelivery Method
• Use Good RFP/RFQ forSelection of Designers andConstructors
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Best Practices of Construction Projects:Front End Planning and Process• We will discuss in this seminar:
• Review and prioritize critical projectparameters
• Identify constraints that limit possibledelivery options
• Review project delivery methodologies
• Compare options based upon stakeholderpriorities
• Identify special tools to enhance projectdelivery success
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Address Key Questions
• What are the critical project parameters?
• Absolute constraints that limit options?
• What is owner’s need for control vs. shifting risk todesigner and/or constructor?
• Type of project? (e.g., manufacturing,office building, infrastructure)
• Other concerns? (e.g., real estate,environmental, health & safety)
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Roles & Responsibilities Of Stakeholders
• Management Profile:In-House Expertise &Resources
• Approach to DesignManagement
• Tolerance for Risk
• Relationship Network
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Project Management – The Problem
• Project delivery system oftenselected without objective analysis…
• The way we always do it
• What the Architect/Engineer wanted
• The form the lawyer used
• LET’S DO WHAT’S NEW AND EXCITING!!!
• … and not tailored to solve project specific issues.
• Can lead to project failure—time, scope and cost
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What is Project Delivery?
• Business and legal structure that identifies andaligns:
• Project Goals
• Project Requirements
• Project Processes
• Legal Structures
• Risk Mitigation
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Budget
Schedule
Changes
Legal Structure
Process and Risk
Management
Safety
Quality
Aesthetics
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Acceleration of Detail/Decisions into Design
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Project Delivery Methodologies
• Multiple Prime Contracting
• Design-Bid-Build (General Contractor)
• Construction Management
• As Advisor – Not utilized often
• At-Risk (As Constructor)
• Design-Build
• Bridging Design-Build
• Integrated Project Delivery
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Design/Bid/Build (General Contractor)Approach
A/E Owner
General
Contractor
SUB SUB SUB
Consultant Consultant Consultant
Design Construction
PR
IC
E
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Design Construction
Construction Manager at Risk Approach
A/E OwnerConstruction
Manager
SUB SUB SUB
Consultant Consultant Consultant
+ Precon
PR
IC
E
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Bridging Design/Build Approach
Owner
Design/
Builder
SUB
Consultant
A/E
Consultant Consultant
SUB SUB
Criteria
A/E
Consultant Consultant Consultant
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Project Compensation Models
• Lump Sum, Stipulated Price
• Cost of the Work – No GMP
• Cost of the Work with GMP
• Target Price
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Basis of Design and PricingOwner’s Basis
of Design
Design-
Build
Bridging
Design-
Build
CM @
Risk
General
Contractor
(D-B-B)
Complete
Construction
Documents
Performance
Requirements
35% to 95%
Construction
Documents
Schematic orDesign
DevelopmentDocuments
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Lump Sum vs. GMP Approach
GMP ContractLump Sum Contract
Lump Sum
Fee
GCs
Contingency
GMP
Fee
GCs
Cost
of the
Work
Final
Cost
of the
Work
Savings
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Lump Sum vs. GMP Approach
GMP ContractLump Sum Contract
Lump Sum
Fee
GCs
Contingency
GMP
Fee
GCs
Cost
of the
Work
Final
Cost
of the
Work
Loss
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Target Pricing
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Selection of Design and Construction Team
Set Team
• Facilities
• Finance
• Management
• Legal
• EHS
• Owner’s Rep
Identify Goals
• Uses & Needs
• Budget & Contingency
• Schedule & Milestones
• What’s Important
• What’s Unique
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Good Paperwork – RFQ / RFP
Uniform Requests
=
Uniform Submissions
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Required Submissions
• Firm Profile
• Insurance and Bonding
• Litigation History
• Financial Strength
• References
• Approach / Method
• Project Experience
• Current Workload
• Key Personnel / Staffing
• Agreement Comments
• Pricing Proposal
• Value Add Ideas
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Due Diligence Review
• Preliminary Research
• Firm Interviews
• Contact References
• Assemble Information
• Discuss and Evaluate
• Teamwork v. Price
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Project Partnering
• Communication Protocols
• ID Key Stakeholders
• Address Concerns
• Collaboration
• Team Work
• Project Success!
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• Project Sponsorship/Resources
• Project Delivery
• Facilitated GMP Process
• Contingency Management
• Insurance Review
• Dispute Resolution Issues
Tools to Enhance Project Success
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Yippee-
Kai-Yay!
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Questions?
Robyn Minter SmyersPartner, Thompson [email protected]
Alan RitchiePartner, Thompson [email protected]
Heather BartziPartner, Thompson [email protected]
Erin LukeSenior Associate, Thompson [email protected]
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