john f. williams, svp national director - governmental consulting and planning

John F. Williams, SVPNational Director - Governmental Consulting and PlanningHDR Engineering, Inc.New York City

PROJECT MANAGEMENTP3

Beginning with a Common Understanding

Source: * Hermann Scheer, author of A Solar Manifesto

Definitions

Variations

Dimensions

United Nations SU/SSC Training Course 2

P R O J E C T M A N A G E M E N TP3

In the U.S. We Call It …

Source: * Hermann Scheer, author of A Solar ManifestoUnited Nations SU/SSC Training Course 3


P3

In Canada We Call it …



3P

In Europe We Call It ...



PFI

What Do You Call It?



?

Different Acronyms –

Same Process With Many Variations



P3 What is It?


A public-private partnership exists when public sector agencies (federal, state, or local) join with private sector entities (companies, foundations, academic institutions or citizens) and enter into a business relationship to attain a commonly shared goal that also achieves objectives of the individual partners.



Three Basic Dimensions of P3


Place landfill photo



Although each is unique, all P3’s include three basic characteristics

shared goals

shared resources (time, money, expertise, people)

shared risks and benefits

Without all three there is no reason to create or continue a partnership.

Why?


Governments can bring private sector efficiency, expertise and competitiveness into projects and operations, while still being responsible for public interest issues and ensuring delivery at specified service levels.

In short, P3 is a tool that can help governments meet demands for the development of modern and efficient facilities, infrastructure and services while providing value for taxpayers.



Getting Started

How do you create one?

How do you implement one?

A Public entity’s perspective of finding and contracting with the best private sector partner.



How Is It Done?



ConstructionOversight

Commis-sioning

AdministrationStartup

ContractModifications

Assessment EnhancementMonitoring Contract

Renegotia-tions

DesignCompliance

Situation Initial Idea,Need or Vision

Prelim ProjectDefinition &Rationale

PrelimBudget/

Schedule

ObjectivesSetting

AlternativesIndexing

Seed Funding

FeasibilityReport/

BusinessCase

Process Map& Strategy

Fatal FlawAnalysis

PrelimEconomic/FinancialAnalysis

QualitativeAnalysis

Final ProjectDefinition

Environ-mental/

PermittingAnalysis

Site Selection/Analysis

Asset/SystemEvaluation

MasterSchedule/

Budget

PoliticalClimate

Assessment

Public/VendorOutreach &StakeholderConsultation

PrelimBusiness

Plan

MasterPlan &

Phasing

ProcurementStrategy

RiskAssessment/

Allocation

BusinessPlan

Vendor Pre-Qualification

ConceptDesign/

PerformanceSpecs

DealStructuring/

Financing Plan

DeliveryMethodology

CommercialTerms/

ContractPrinciples

ContractNegotiations

VendorProposal

Evaluation

ProcurementDocuments

Property Management

Construction

Developer

Design/Engineering

Brokerage/Marketing

Legal

Finance/Accounting

Public "Owner"/Sponsor

Program Manager

User/Tenant

II

OverseeConstruction

AdministerConstruction

ConstructFacility

VisitSite

SuperviseStart-upActivities

ProvideGuidance

I

I

I

ApplyScope/Quality

Controls

SuperviseCommission-ing Activities

AuditDevelopment

Costs

ConfirmContract

Compliance

I

ApplyMonitoring

Controls

A

I

I

LeadContract

NegotiationsA

ReviewContract

Mods

A

Assist inContract

Negotiations

ReviewContract

Mods

VisitSite

I

CompletePunchlist

OverseeCommission-

ing

OverseePunchlist

Completion

I I

MakeCommission-

ingAdjustments

PreparePunchlist

ManageFacility

OverseeFacility

Management

A

I

I

I

AssessContract

Compliance

ApplyMonitoringControls

DocumentEnhancements

I

SuggestEnhancements

SuggestEnhancements

ProvideGuidance

ReviewMajor

ContractMods

ExecuteContract

Mods

IdentifyHotspots/

PowerPlayers

AssessPublic

& PrivateAttitudes

RiskIdentification

I IVisitSite

DocumentMajor Deal

Terms

I

PreparePreliminaryBusiness

Plan

PresentAlternatives

I

PrepareMasterBudget/

Schedule

PrepareGuidance

Report

I

PrepareRFQ &RFP

I

I II

ConductOutreachSessions

I

PrepareFinal

BusinessPlan

IdentifyHotspots/

PowerPlayers

IdentifyStakeholders

RiskAllocation

RiskMatrixing

ReviewDraftPlan

ReviewDraftPlan

DiscussProcurement

Philosphy

LegalOptions/Provide

Guidance

PrepareContracts

A

I

I

I

Administrative Specs

VisitSite/Perform

Analysis

ProvideValuation

Research& Interpret

Zoning

I

PresentOptions/

DocumentStrategy

DevelopEvaluationProcess

A

I

LeadContract

NegotiationsA

I

I

ReviewDesign

Submittals

StrategyInput

PrelimPublic

Assessment

MarketFeedback

MarketFeedback

MarketFeedback

ExpressInterest

I

IDetermine

StakeholderStrategy

PrepareRelationsStrategies

A

ReviewDraftPlan

ReviewDraftPlan

I

StrategyInput

RiskAssessment

RiskAssessment

A

CommercialTerms

ContractPrinciples

A

Terms ofReference

A

A

A

A

Assist inContract

Negotiations

ReviewDesign

Submittals

PrepareDesign

Submittals

ReviewDesign

Submittals

ReviewDesign

Submittals

ReviewDesign

Submittals

SubmitQuals

AssembleTeam

Visit Site/Ask

Questions

SubmitProposal

Visit Site/Ask

Questions

Visit Site/Ask

Questions

PrepareBAFO

RefineAssumptions

I

PrepareMaster

Plan

ROI

Land UseAmendment

I

Infrastructure/SupportSystems

CompetitiveAnalysis

Program

ProjectCash Flow

Needs

InitialPhasing

InitialPhasing

I

DetermineSources& Uses

SeedBudget

Estimate

EstablishObjectives

ProvideQualitative

InputI I I

VisitSite

I

PrepareFeasibility/Business

Report

I

DocumentAlternatives

I

PrepareFatal FlawAnalysis

II

CustomizeProcess Map

& Strategy

I

CoordinatePermit

Process

PerformFunctionalEvaluation

I

I III I

StrategyInput

ResearchPotential

Uses

PrelimMarket

Analysis

I

PreparePrelim

Budget/Schedule

I

Leasevs. OwnAnalysis

EstimateSoft

Costs


ProvideQualitative

Input

DocumentQualitativeAnalysis

SuggestAlternatives

SuggestAlternatives

EstablishObjectives

ProvideGuidance

I I I I I I

A

I

I

I

I

I I I

MarketFeedback

MarketFeedback

PerformPhysical

Evaluation

VisitSite/Perform

Analysis

ProvideValuation

Research& Interpret

Zoning

I

PhysicalEvaluation

Market Needs

Program-ming

CodeSynopsis

Environ-mentalImpact

Assessment

SiteVisit

DocumentObjectives

EstablishCriteria

DocumentFinal Project

Definition

PrepareApplication

Serve asApplicant

IdentifyOperationsScenarios

IdentifyFinancingSources

Prelimi-narilyDefineProject

DiscussProcurement

Desires

ProvideGuidance

Define BasicNeeds

CommissionFacility

TrendsInput

MarketFeedback

P3PMSM Process


Two Major Steps



Crafting the Partnership

Implementing the Partnership

CRAFT IMPLEMENTATION

Two Steps Down to Six Phases



Genesis

Feasibility

Plan & Test

Procure

Design & Build

Operate & Maintain

GENESIS PROCUREFEASIBILITYPLAN &

TESTDESIGN &

BUILD

OPERATE &

MAINTAIN

Six Phases to 18 – Sub Phases



Pre-QualifyDefinition Rationale ProForma

MasterPlan

MarketResearch

EconomicAnalysis

ConfirmDemand

ProgramBudget

Schedule

Select &Negotiate Design Maintain

Delivery/Deal

Structure

RiskAssess-

ment

Risk/DealStructure Start-up DisposalBuild

18 Phases to 40 Milestones




Commis-sioning


ContractModificationsAssessment EnhancementMonitoring

ContractRenegotia-

tions

DesignCompliance

Situation Initial Idea,Needor Vision

PrelimProjectDefinition&Rationale

PrelimBudget/

Schedule

ObjectivesSetting


SeedFunding

FeasibilityReport/

BusinessCase

ProcessMap& Strategy

Fatal FlawAnalysis


QualitativeAnalysis

FinalProjectDefinition

Environ-mental/

PermittingAnalysis

SiteSelection/Analysis


MasterSchedule/

Budget

PoliticalClimate

Assessment

Public/VendorOutreach&StakeholderConsultation

PrelimBusiness

Plan

MasterPlan &

Phasing

ProcurementStrategy

RiskAssessment/

Allocation

BusinessPlan


ConceptDesign/

PerformanceSpecs

DealStructuring/

FinancingPlan

DeliveryMethodology

CommercialTerms/

ContractPrinciples


VendorProposalEvaluation



Commis-sioning



ContractRenegotia-

tions

DesignCompliance



PrelimBudget/

Schedule

ObjectivesSetting


SeedFunding

FeasibilityReport/

BusinessCase


Fatal FlawAnalysis


QualitativeAnalysis


Environ-mental/

PermittingAnalysis



MasterSchedule/

Budget

PoliticalClimate

Assessment


PrelimBusiness

Plan

MasterPlan &

Phasing

ProcurementStrategy

RiskAssessment/

Allocation

BusinessPlan


ConceptDesign/

PerformanceSpecs

DealStructuring/

FinancingPlan

DeliveryMethodology

CommercialTerms/

ContractPrinciples


VendorProposalEvaluation


40 Milestones to 100s of tasks





Commis-sioning




Renegotia-tions

DesignCompliance



PrelimBudget/

Schedule

ObjectivesSetting


Seed Funding

FeasibilityReport/

BusinessCase


Fatal FlawAnalysis


QualitativeAnalysis


Environ-mental/

PermittingAnalysis



MasterSchedule/

Budget

PoliticalClimate

Assessment


PrelimBusiness

Plan

MasterPlan &

Phasing

ProcurementStrategy

RiskAssessment/

Allocation

BusinessPlan


ConceptDesign/

PerformanceSpecs

DealStructuring/

Financing Plan

DeliveryMethodology

CommercialTerms/

ContractPrinciples


VendorProposal

Evaluation


Property Management

Construction

Developer

Design/Engineering

Brokerage/Marketing

Legal

Finance/Accounting


Program Manager

User/Tenant

II

OverseeConstruction


ConstructFacility

VisitSite


ProvideGuidance

I

I

I

ApplyScope/Quality

Controls


AuditDevelopment

Costs

ConfirmContract

Compliance

I

ApplyMonitoring

Controls

A

I

I

LeadContract

NegotiationsA

ReviewContract

Mods

A

Assist inContract

Negotiations

ReviewContract

Mods

VisitSite

I

CompletePunchlist

OverseeCommission-

ing

OverseePunchlist

Completion

I I

MakeCommission-

ingAdjustments

PreparePunchlist

ManageFacility

OverseeFacility

Management

A

I

I

I

AssessContract

Compliance



I

SuggestEnhancements

SuggestEnhancements

ProvideGuidance

ReviewMajor

ContractMods

ExecuteContract

Mods

IdentifyHotspots/

PowerPlayers

AssessPublic

& PrivateAttitudes

RiskIdentification

I IVisitSite

DocumentMajor Deal

Terms

I


Plan

PresentAlternatives

I


Schedule

PrepareGuidance

Report

I

PrepareRFQ &RFP

I

I II


I

PrepareFinal

BusinessPlan

IdentifyHotspots/

PowerPlayers


RiskAllocation

RiskMatrixing

ReviewDraftPlan

ReviewDraftPlan

DiscussProcurement

Philosphy


Guidance

PrepareContracts

A

I

I

I


VisitSite/Perform

Analysis

ProvideValuation

Research& Interpret

Zoning

I

PresentOptions/

DocumentStrategy


A

I

LeadContract

NegotiationsA

I

I

ReviewDesign

Submittals

StrategyInput

PrelimPublic

Assessment

MarketFeedback

MarketFeedback

MarketFeedback

ExpressInterest

I

IDetermine

StakeholderStrategy


A

ReviewDraftPlan

ReviewDraftPlan

I

StrategyInput

RiskAssessment

RiskAssessment

A

CommercialTerms

ContractPrinciples

A

Terms ofReference

A

A

A

A

Assist inContract

Negotiations

ReviewDesign

Submittals

PrepareDesign

Submittals

ReviewDesign

Submittals

ReviewDesign

Submittals

ReviewDesign

Submittals

SubmitQuals

AssembleTeam

Visit Site/Ask

Questions

SubmitProposal

Visit Site/Ask

Questions

Visit Site/Ask

Questions

PrepareBAFO

RefineAssumptions

I

PrepareMaster

Plan

ROI

Land UseAmendment

I


CompetitiveAnalysis

Program

ProjectCash Flow

Needs

InitialPhasing

InitialPhasing

I


SeedBudget

Estimate

EstablishObjectives

ProvideQualitative

InputI I I

VisitSite

I


Report

I


I


II


& Strategy

I

CoordinatePermit

Process


I

I III I

StrategyInput

ResearchPotential

Uses

PrelimMarket

Analysis

I

PreparePrelim

Budget/Schedule

I


EstimateSoft

Costs


ProvideQualitative

Input


SuggestAlternatives

SuggestAlternatives

EstablishObjectives

ProvideGuidance

I I I I I I

A

I

I

I

I

I I I

MarketFeedback

MarketFeedback

PerformPhysical

Evaluation

VisitSite/Perform

Analysis

ProvideValuation

Research& Interpret

Zoning

I

PhysicalEvaluation

Market Needs

Program-ming

CodeSynopsis


Assessment

SiteVisit

DocumentObjectives

EstablishCriteria


Definition

PrepareApplication

Serve asApplicant




DiscussProcurement

Desires

ProvideGuidance

Define BasicNeeds

CommissionFacility

TrendsInput

MarketFeedback

P3 Project Management – A Process Linked to Critical Path Scheduling



Pre-QualifyDefinition Rationale ProForma

MasterPlan

MarketResearch

EconomicAnalysis

ConfirmDemand

ProgramBudget

Schedule

Select &Negotiate Design

IMPLEMENTATIONCRAFT

MaintainDelivery/

DealStructure

RiskAssess-

ment

OPERATEDEVELOPPROCUREPLAN & TESTFEASIBILITYGENESIS

Risk/DealStructure Start-up DisposalBuild


Commis-sioning



ContractRenegotia-

tions

DesignCompliance



PrelimBudget/

Schedule

ObjectivesSetting


SeedFunding

FeasibilityReport/

BusinessCase


Fatal FlawAnalysis


QualitativeAnalysis


Environ-mental/

PermittingAnalysis



MasterSchedule/

Budget

PoliticalClimate

Assessment


PrelimBusiness

Plan

MasterPlan &

Phasing

ProcurementStrategy

RiskAssessment/

Allocation

BusinessPlan


ConceptDesign/

PerformanceSpecs

DealStructuring/

FinancingPlan

DeliveryMethodology

CommercialTerms/

ContractPrinciples


VendorProposal

Evaluation



Commis-sioning



ContractRenegotia-

tions

DesignCompliance



PrelimBudget/

Schedule

ObjectivesSetting


SeedFunding

FeasibilityReport/

BusinessCase


Fatal FlawAnalysis


QualitativeAnalysis


Environ-mental/

PermittingAnalysis



MasterSchedule/

Budget

PoliticalClimate

Assessment


PrelimBusiness

Plan

MasterPlan &

Phasing

ProcurementStrategy

RiskAssessment/

Allocation

BusinessPlan


ConceptDesign/

PerformanceSpecs

DealStructuring/

FinancingPlan

DeliveryMethodology

CommercialTerms/

ContractPrinciples


VendorProposal

Evaluation



Commis-sioning




Renegotia-tions

DesignCompliance



PrelimBudget/

Schedule

ObjectivesSetting


Seed Funding

FeasibilityReport/

BusinessCase


Fatal FlawAnalysis


QualitativeAnalysis


Environ-mental/

PermittingAnalysis



MasterSchedule/

Budget

PoliticalClimate

Assessment


PrelimBusiness

Plan

MasterPlan &

Phasing

ProcurementStrategy

RiskAssessment/

Allocation

BusinessPlan


ConceptDesign/

PerformanceSpecs

DealStructuring/

Financing Plan

DeliveryMethodology

CommercialTerms/

ContractPrinciples


VendorProposal

Evaluation


Property Management

Construction

Developer

Design/Engineering

Brokerage/Marketing

Legal

Finance/Accounting


Program Manager

User/Tenant

II

OverseeConstruction


ConstructFacility

VisitSite


ProvideGuidance

I

I

I

ApplyScope/Quality

Controls


AuditDevelopment

Costs

ConfirmContract

Compliance

I

ApplyMonitoring

Controls

A

I

I

LeadContract

NegotiationsA

ReviewContract

Mods

A

Assist inContract

Negotiations

ReviewContract

Mods

VisitSite

I

CompletePunchlist

OverseeCommission-

ing

OverseePunchlist

Completion

I I

MakeCommission-

ingAdjustments

PreparePunchlist

ManageFacility

OverseeFacility

Management

A

I

I

I

AssessContract

Compliance



I

SuggestEnhancements

SuggestEnhancements

ProvideGuidance

ReviewMajor

ContractMods

ExecuteContract

Mods

IdentifyHotspots/

PowerPlayers

AssessPublic

& PrivateAttitudes

RiskIdentification

I IVisitSite

DocumentMajor Deal

Terms

I


Plan

PresentAlternatives

I


Schedule

PrepareGuidance

Report

I

PrepareRFQ &RFP

I

I II


I

PrepareFinal

BusinessPlan

IdentifyHotspots/

PowerPlayers


RiskAllocation

RiskMatrixing

ReviewDraftPlan

ReviewDraftPlan

DiscussProcurement

Philosphy


Guidance

PrepareContracts

A

I

I

I


VisitSite/Perform

Analysis

ProvideValuation

Research& Interpret

Zoning

I

PresentOptions/

DocumentStrategy


A

I

LeadContract

NegotiationsA

I

I

ReviewDesign

Submittals

StrategyInput

PrelimPublic

Assessment

MarketFeedback

MarketFeedback

MarketFeedback

ExpressInterest

I

IDetermine

StakeholderStrategy


A

ReviewDraftPlan

ReviewDraftPlan

I

StrategyInput

RiskAssessment

RiskAssessment

A

CommercialTerms

ContractPrinciples

A

Terms ofReference

A

A

A

A

Assist inContract

Negotiations

ReviewDesign

Submittals

PrepareDesign

Submittals

ReviewDesign

Submittals

ReviewDesign

Submittals

ReviewDesign

Submittals

SubmitQuals

AssembleTeam

Visit Site/Ask

Questions

SubmitProposal

Visit Site/Ask

Questions

Visit Site/Ask

Questions

PrepareBAFO

RefineAssumptions

I

PrepareMaster

Plan

ROI

Land UseAmendment

I


CompetitiveAnalysis

Program

ProjectCash Flow

Needs

InitialPhasing

InitialPhasing

I


SeedBudget

Estimate

EstablishObjectives

ProvideQualitative

InputI I I

VisitSite

I


Report

I


I


II


& Strategy

I

CoordinatePermit

Process


I

I III I

StrategyInput

ResearchPotential

Uses

PrelimMarket

Analysis

I

PreparePrelim

Budget/Schedule

I


EstimateSoft

Costs


ProvideQualitative

Input


SuggestAlternatives

SuggestAlternatives

EstablishObjectives

ProvideGuidance

I I I I I I

A

I

I

I

I

I I I

MarketFeedback

MarketFeedback

PerformPhysical

Evaluation

VisitSite/Perform

Analysis

ProvideValuation

Research& Interpret

Zoning

I

PhysicalEvaluation

Market Needs

Program-ming

CodeSynopsis


Assessment

SiteVisit

DocumentObjectives

EstablishCriteria


Definition

PrepareApplication

Serve asApplicant




DiscussProcurement

Desires

ProvideGuidance

Define BasicNeeds

CommissionFacility

TrendsInput

MarketFeedback

Practical Guide for P3 Program Management




Six Distinct Phases



Genesis: What’s the need, what’s driving the need, and is there a need for a Public/Private Partnership?

Feasibility: Is a Public/Private Partnership feasible, not only financially, but practically? Can it be done?

Plan & Test: What is the best way to complete the project? Has the plan been thoroughly tested to assess market demand, public and stakeholder feedback, economics and potential “fatal flaws” that could derail the project?Procure: How do you choose and contract with the best-value private partner? What’s the best method and what do current statutes allow?

Implement: How can the project best be delivered — financed, designed, built, operated and maintained?

Operations: Is the private sector partner fulfilling its obligations, and is it necessary to negotiate changes to the contract? Is everything running smoothly?

OPERATEOPERATE

IMPLEMENTIMPLEMENT

PROCUREPROCURE

PLAN & TESTPLAN & TEST

FEASIBILITYFEASIBILITY

GENESISGENESIS

Genesis – What’s the Need?

Will a P3 Satisfy It?

Kick-off and Vision Overview

Data Collection and Analysis

On-site Tours/Condition Survey and Analysis

Vision Refinement

Objectives Setting



Genesis – Preliminary Project Definition

Preliminary Test Plan

Preliminary Risk Analysis (RAP)

Development Options/Frame of Reference (FoR)



Genesis – Preliminary Feasibility Check/Validation Fatal Flaws

Development Options Testing

Process Map and Strategy

Master Schedule



Genesis – Phase 1 Process Map



Feasibility – Can It Be Done?

Is a P3 Practical?

Call for Ideas

Request for Expression of Interest

“Case Study” Tours

Environmental and Geotechnical Analysis

Infrastructure Analysis




Feasibility – Return on Investment

Master Development Budget

Preliminary Development Pro-Forma

Market Focused Interviews

Input Workshops

Economic Analysis

RAP Session




Feasibility – Risk

P3 Delivery & Risk Management Workshop

Final Test Plan

Fatal Flaw Update

Sales and Communications Strategy

Risk-Allocation, Procurement Strategy & Delivery Methodology

Commercial Terms & Contract Principles




Feasibility – Phase 2 Process Map




Plan and Test

Market Based Feedback

Are Concepts Sufficient?

Constant Check for Fatal Flaws

Is the Project Real?

Feedback Based AdjustmentsPlace landfill photo



Plan and Test – Is There a Sound Business Case?




Plan and Test - Phase 3 Process Map




Procurement and Contracting

Delivery/Deal Structure

Pre-Qualify

Select & Negotiate




Structural Framework

A Matter of Balance

Financing

“Ownership”/Occupancy

Project Delivery

Procurement Approach

Contracting Methodology




Structure Drivers

Project Goals

Public Entities Characteristics

Marketplace Realities

“Ownership”/Occupancy

Direct Ownership

Traditional Lease

Build-to-suit Lease

Lease/Purchase (fixed or variable)

Synthetic Lease



Financing

Cash Purchase

Debt Financing (bonds/mortgage)

Leasing (many variations)

Lease/purchase




Project Delivery – “Mainstream”

Traditional (design-bid-build)

Multi-prime

Construction Management at Risk

Design-Build Place landfill photo



Project Delivery – Variations on a Theme Finance-Design-Build (turnkey)

Finance-Design-Build-Leaseback (typical)

Finance-Design-Build-Operate

Finance-Design-Build-Operate & Maintain

Sale-Leaseback (user develops)

Build-Operate

Build-Operate-Transfer

Build-Own-Operate-Transfer




Project Delivery – Many Acronyms DBB

DB

FDB or DBF

DBO



DBOM

BO

BOT

BOOT





Price

A Key Factor?

The Only Factor?

How Much Can Be Done Before Price is Set?

Selection

Low-Bid

Weighed Criteria

Equivalent Design/Lower-Bid

Fixed Budget/Best Design

Meets Criteria/Low Bid

Best Value (adjusted low bid, weighted criteria including price)

Best Value – Weighted Criteria



ProposerQualitative

Score (60 max.)

PriceProposal

Price Score(40 max.)

Total Score(100 max.)

Firm “A”

Firm “B”

Firm “C”

51

53

44

1,629,000

1,546,000

1,510,000

37

39

40

88

92*

84

Best Value – Adjusted Low-Bid



Proposer QualitativeScore

Price Proposal

Adjusted Price

Firm “A”

Firm “B”

Firm “C”

0.85

0.95

0.50

1,000,000

1,300,000

800,000

1,176,471

1,368,421

1,600,000


Sole Source

RFP

RFQ/RFP (pre-qualify, then select)

RFEOI/RFQ/RFP (determine interest, pre-qualify, select)

Contingent Designation and Simultaneous Negotiations



Contract Methods

Lump Sum

Cost Plus

Cost Plus with GMP

Unit Price

Bonus/Merit Awards




Procurement & Contracting – Phase 4 Process Map




Implementation – Phase 5

Design Compliance

Construction Oversight

Commissioning and Administration




Operations - Phase 6

Startup

Monitoring

Assessment

Enhancement

Contract Modifications

Contract Renegotiations




P3 – Process Players

Sponsors/Users

Finance/Accounting

Legal

Owner/Developer

Program Manager




Brokerage/Marketing

Design/Engineering

Construction

Relocation

Property/Facility Management

P3 – Process Responsibilities




Initial Ideaor Need Seed FundingSituation


AlternativesIndex


QualitativeAnalysis

Fatal FlawAnalysis


FeasibilityReport/

BusinessCase

ObjectivesSetting

PrelimBudget/

Schedule

CommercialTerms/

ContractPrinciples

DealStructuring

ConceptDesign/

PerformanceSpecs



VendorProposal

Evaluation

RiskAssessment/

Allocation

DeliveryMethodology


CommissioningAdministration


Startup Monitoring Assessment EnhancementContract

Mods Contract

Renegotiations

Sponsor/User/Tenant

Finance/Accounting

Legal

Owner/Developer

Program Manager

Brokerage/Marketing

Designer/Engineer

Constructor

Relocation

Property Manager

Initial Ideaor Need Seed FundingSituation


R

R

R

R

Define

Basic Need

s Source&

Uses

Budget

Market

Analysis

P3 Program Management Summary



• Risk Assessment/ Allocation

• Delivery Methodology• Commercial Terms

/Contract Principles• Deal Structuring • Concept Design/ Performance Specs • Procurement Documents• Vendor Pre-Qualification • Vendor Proposal Evaluation • Contract Negotiations

• Startup• Monitoring• Assessment• Enhancement• Contract Mods• Contract Renegotiations

• Objectives Register• Alternatives Index• Prelim Schedule/ Budget• Prelim Economic/

Financial Analysis• Qualitative Analysis• Fatal Flaw Analysis • Process Map & Strategy • Feasibility Report/

Project Approval

• Asset/System Evaluation • Site Selection/ Analysis• Environmental/ Permitting Analysis• Final Project Definition • Master Schedule/

Budget • Political Climate Assessment • Procurement Strategy• Prelim Business Plan• Public/Vendor Outreach & Stakeholder Consultation• Business Plan

• Design Compliance• Construction Oversight• Commissioning Administration

• Prelim Project Definition • Seed Funding

OPERATEOPERATEIMPLEMENTIMPLEMENTPROCUREPROCUREPLAN & TESTPLAN & TESTFEASIBILITYFEASIBILITYGENESISGENESIS

John F. Williams, SVPNational Director - Governmental Consulting and PlanningHDR Engineering, Inc.New York City

PROJECT MANAGEMENTP3

john f. williams, svp national director - governmental consulting and planning

Documents

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