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c t s g r o u pconstruction technology services
PLANNING AN EFFECTIVE STUDY TIME ALLOCATION OF VE PHASES
STUART SOKOLOFF, P.E. PRESIDENT CONSTRUCTION ENGINEERING TECHNOLOGY SERVICES P.C. (CTS GROUP)
●N.Y. CITY: (212) 239-0135 ●BOCA RATON, FL: (561)465-2889
THE NEXT GENERATION
c t s g r o u pconstruction technology servicesSTUART SOKOLOFF, P.E.
VE • 20 YEARS IN VE • APPROXIMATELY 150 STUDIES • OVER 35 CVS’ • VP OF CONSTRUCTION (PREVIOUS)
CONSTRUCTABILITY • CONSTRUCTION DESIGNS US LARGEST CONTRACTORS
LIABILITY • 500 CASE LITIGATIONS
DBIA • VE TASK FORCE
c t s g r o u pconstruction technology servicesPRESENTATION OUTLINE
• VALUE MANAGEMENT • GOALS • TEAM FORMATION • PHASES CONSTRUCTABILITY RISK • COST • LIABILITY
c t s g r o u pconstruction technology servicesVM Goals
Goal VM Design-Build
Reduces Owner Risk Craft Project Constructability Partnering Quality Reduce Schedule Alternatives
c t s g r o u pconstruction technology services
WHY IS VE PERFORMED?
c t s g r o u pconstruction technology servicesForming the VM Team
Facilitator Technical Experts Owner Representatives A/E Representatives Facility Operators
c t s g r o u pconstruction technology servicesBRIDGE VE TEAM
c t s g r o u pconstruction technology servicesQUALITY STUDY PARAMETERS
• TEAM >:
• CVS: Efficiency/Time Allocation Professional/ PE or RA
• Owner: Duration
Expertise
Participation: Owner/Eng. Size
c t s g r o u pconstruction technology services“Think Out of the Box”
• Six Phases of VM: 1. Information 2. Function Analysis 3. Creative 4. Analysis/Evaluation 5. Development 6. Presentation
c t s g r o u pconstruction technology services“Think Out of the Box”
• The Real Six Phases of VM: 1. Information 2. Function Analysis 3. Risk 4. Creative 5. Analysis/Evaluation 6. Constructability 7. Development 8. Presentation 9. Implementation
c t s g r o u pconstruction technology servicesMOST IMPORTANT PHASE
Usually Relatively Obvious (For Physical Projects)
●Bridge ●Building ●Tunnel ●Station ●Waste Water Treatment Plant
• DEVELOPMENT
“THE IDEA NOT IMPLEMENTED HAS NO
VALUE”
• Functions?:
c t s g r o u pconstruction technology servicesIDEA SELECTION
VOTING “SURGEONS & SHOEMAKERS”
c t s g r o u pconstruction technology servicesHOW ARE BENEFITS DIMINISHED
IDEAS:
Not Offered
Not (Adequately) Developed
Offered: Not Correct/Beneficial
V = F (P) CO$T
V = CO$T
1 F(P)
FUNCTION = PERFORMANCE
Not Risked
c t s g r o u pconstruction technology services
VM Study Implementation (Timing) Options
Stage Design Status
Standard (DBB)
Design-Build
Scoping 0-5% Design Completion
Design Preparation 20-30% Post DB Selection* 30% NA
Comparison with Procurement Type
*After Design-Builder Selection — Prior to NTP (Notice to Proceed)
c t s g r o u pconstruction technology servicesTIME ALLOCATION
• PRE-STUDY: 8 -16 HRS • DURATION: 5 DAYS • FUNCTION ANALYSIS: 1 HOUR • TEAM SIZE: 8-10 (TOTAL INCLUSIVE) • DESIGNER PRESENTATION: 1 HOUR • RISK ASSESSMENT • NO DRAFT REPORT HANDOUT • CVS TIGHT TIME CONTROL
“TALK LESS DEVELOP MORE”
EFFICIENT USE OF TIME
c t s g r o u pconstruction technology servicesConstructability
• One aspect of VM and Design-Build • What is Constructability? How to : design: construct
– feasible – better – best
c t s g r o u pconstruction technology servicesWHAT IS RISK?
“The chance of a negative event”
GOAL: IDENTIFY AND MITIGATE
c t s g r o u pconstruction technology servicesFORMAL RISK
c t s g r o u pconstruction technology servicesINFORMAL RISK
c t s g r o u pconstruction technology servicesRISK: ACCORDING TO WHO?
PERSPECTIVES • OWNER • PUBLIC • DESIGNER • BUILDER • DESIGN-BUILDER
c t s g r o u pconstruction technology servicesRISKS
• ERRORS/ OMISSIONS (DESIGNER)
• APPROACH (DESIGNER/OWNER)
• DELAY/SCHEDULE (CONTRACTOR)
• CHANGED CONDITIONS (OWNER)
c t s g r o u pconstruction technology services
INFORMAL DESIGN RISK MITIGATION
MITIGATION
RISK ITEM PROBABILITY X SEVERITY = RATING
c t s g r o u pconstruction technology services
FORMAL DESIGN RISK MITIGATION
PROBABILITY MODEL (MONTE CARLO, ETC)
SINGLE OR GROUPING (AVG. P)
a) RANGE/LIKELIHOOD % CHANCE b) ESTIMATE IMPACT RANGE/LIMITS
c) COMPUTER STIMULATIONS REVENUE SCHEDULE COST
IMPACT
P
c t s g r o u pconstruction technology servicesUNION LABOR
c t s g r o u pconstruction technology servicesEstimating Project Costs
• Problematic
• Material Construction
• Means/Methods by Builder
• Each Project is Unique
• VM “Savings”
c t s g r o u pconstruction technology servicesWHAT DOES A PROJECT COST?
The cost of a project is the lowest price submitted by a
responsive bidder
c t s g r o u pconstruction technology services
“LEGAL LIABILITY”
c t s g r o u pconstruction technology services
RESPONSE TO A POOR VALUE IDEA (COST OR TECHNICAL)
• Not My Decision
• Not My Fault
• Was Your Choice
“SO WHO SAID YOU SHOULD IMPLEMENT OUR RECOMMENDATIONS ANYWAY?”
c t s g r o u pconstruction technology services
IS THE CVS AND STUDY TEAM RESPONSIBLE FOR A POOR
VALUE IDEA?
YES! (unless you are careful)
c t s g r o u pconstruction technology services
ACTUAL CASE LEGAL ACTION vs. VE ENTITY
VE Recommended Project Implementation
Project Not Financially Sound (Project Discontinued)
≈ > $40 Million Action Owner vs. Prime Engineer vs. CVS vs. Each Team Member
c t s g r o u pconstruction technology servicesCOMPLAINT
Counts: • Negligent Misrepresentation
• Malpractice
• Breach of Contract
• Unjust Enrichment
c t s g r o u pconstruction technology servicesAVOID LIABILITY
“Recommendation” “Verify” “Confirm” “Validate” “Assure”
DON’T VOLUNTEER FOR LIABLITY
• Inaccurate Costing
• Poor Value:Poor Performance Mitigation Of
V = Performance CO$T
c t s g r o u pconstruction technology servicesSUGGESTIONS
1. Allow Sufficient Time For Experts To Be Experts
2. Do Not Offer Costs/Use Given Project Costs
3. Do Not Offer “Recommendations” Offer “Ideas”
4. Disclaimer In Response To RFP/and in Report
5. Carry Insurance
c t s g r o u pconstruction technology servicesDISCLAIMER
“The costs used are those provided by the Engineer.
Where the VE team has offered alternate costs, they
are provided for information only reflective of the
extremely short duration of the VE study and should
be evaluated by the Owner and its Engineer. VE Ideas
are provided to the Owner/Engineer for their
evaluation and implementation is exclusively at their
discretion.”
c t s g r o u pconstruction technology services
c t s g r o u pconstruction technology servicesThings Do Change
10 20 30 40 50 60
c t s g r o u pconstruction technology services“NEXT GENERATION”
YOU ARE CHANGE!
• LOOSEN UP
• “TALK LESS: DEVELOP MORE”