(PM-3051) Challenges for Cost Control in Operations in Peruvian Small Companies of Construction
Author(s)/Presenters(s): Gloria Luz Flores Fernandez
Time/Room: SUN 2:15-3:15/Room 9
In the last decade Peru has experienced a growth in its economy, which is positively impacting all sectors, especially construction. This conjuncture brings advantages and opportunities for all, especially for small construction companies which face new challenges seeing themselves in need of implementing new management tools that will allow them to obtain competitive advantages in the market.
One of the main challenges is the change of its organizational culture, which tends to be of the type of young, small, and inexperienced organizations. This paper will identify the primary weaknesses of small companies by examining their internal operating processes, where the staff covers multiple functions and tasks. It also describes the internal processes of companies that have implemented and are using management tools to control construction projects.
To carry out the implementation of cost control tools in a typical Peruvian small construction company successfully, 5 stages are identified where the processes and actions to be executed by all the company's collaborators will be described.
It is concluded that it is feasible to implement cost control tools for a small business, provided there is a commitment from the management, since active participation and effective leadership is key for the success of the proposed process.
(PM-3062) Pre-qualifying Contractors for Today’s Project Delivery Needs
Author(s)/Presenters(s): H. Lance Stephenson, CCP FAACE
Time/Room: MON 2:15-3:15/Room 9
Supply chain management, especially contracting, is vital in achieving success in project delivery. Therefore, in order to ensure the successful delivery of the project, it is imperative that the contractors and subcontractors can demonstrate their ability to provide the necessary experience, governance, execution and control of their respective skillsets. To support this endeavor, the author has developed a robust contractor pre-qualification assessment process and tool.
The contractor pre-qualification assessment process and tool can be used as a refined approach in determining the appropriate level of acceptance and tolerance required for the effective and efficient execution of the contracts within a project. This includes, in part:
• The development and implementation of a contractor pre-qualification work processes and tool, including expected contractual requirements, and deliverables based on the contract and scope of work.
• A refined understanding of the maturity for the contractor’s capabilities based on expected contractual requirements, and deliverables via the pre-qualification tool. The pre-qualification tool would provide the users with a quantitative assessment of the contractor’s ability to provide the necessary experience, governance and control.
The use of a contractor pre-qualification process can be considered a leading indicator for assisting in the successful delivery of the project. Through the contractor pre-qualification process, the time invested in preparing, documenting, and communicating the approved contractors will increase the success of the execution of the projects by reducing project delivery risk.
(PM-3085) Portfolio Management: Case Study of a Brazilian Mining Company
Author(s)/Presenters(s): Ricardo Gonçalves Alves
Time/Room: WED 8:00-9:00/Room 9
This paper focuses on portfolio management for a group of sustaining projects in a Brazilian mining company. Such a group of projects can be understood as the investment dedicated to support and maintain current operation, covering renovation projects to projects for new mining areas. This paper covers more than 40 projects managed simultaneously, involving an annual capital expenditure of about US$100 million.
An overview of the mining process is presented, highlighting the strategic importance that project controls have in supporting the business. How projects are pulled together during the annual budgeting cycle is discussed, with particular attention to early resource consolidation. The tools used to develop the baselines and techniques adopted for forecasting are shown. The paper presents the project pipeline and portfolio management framework, along with the KPIs for physical and financial control.Finally, an integrated financial forecast is performed using Monte-Carlo Simulation (MCS).
A conclusion highlights the key findings discussed in the paper, including the benefits achieved by the company through the adoption of the portfolio management framework. In addition, reminders of the current limitations are presented, along with a set of recommendations for future improvements.
(PM-3105) Program Management Lessons Learned: Alaskan Way Viaduct Replacement Program
Author(s)/Presenters(s): David Sowers, PE; Harry W. Jarnagan, PE CCP FAACE Hon. Life; Brian C, Smith, CCP
Time/Room: MON 11:30-12:30/Room 9
This paper provides an overview of program management lessons learned from the Alaskan Way Viaduct Replacement Program (AWVRP), being delivered by the Washington State Department of Transportation (WSDOT) in Seattle, Washington. This landmark program is changing the City of Seattle by replacing an aging, elevated section of State Route 99 with a two-mile-long, large-diameter, machine-driven single bore tunnel, one of the largest of its kind ever completed. This complex engineering and construction effort, with a current budget of $3.3 billion and a delivery schedule spanning more than a decade, is nearly complete. The many lessons learned addressed in this paper cover topics such as earned value management; risk management and the use of contingency and reserves; right-of-way acquisition; change control; relations with oversight entities; and the use of alternative delivery contract methods.
(PM-3121) WYSIATI “What You See Is All There Is”: How Are Capital Projects Delivered?
Author(s)/Presenters(s): Dr. Diana Nada
Time/Room: SUN 4:00-5:00/Room 9
Common questions in the day-to-day industry practice such as: why do capital projects fail? Why delivering projects have not improved given all the project management advancement? And, why it is no longer uncommon to see projects “over budget, over time, over and over again”? are key for ‘creative’ solutions.
Daniel Kahneman coined the term “WYSIATI” as a cognitive bias which explains how irrational people making decisions and how little it matters to them. Perhaps the way they share information and communicate on projects is a key determining factor to projects’ success. The ‘What’, the ‘How’, and the ‘When’ determines how executives and project implementers make strategic decisions, approve funds and deliver projects.
Research reveals many strategies that can improve the way capital projects are delivered. Neuroeconomics can help resolve barriers to decision-making in project delivery. Signals based on past projects’ experiences can impact how knowledge is shared among teams by improving the awareness of the choices made; the intuitive professional judgment and survival needs. There are tactics to improve project management practices to help embrace uncertainty and recognize that the ‘sometimes’ irrational approach to capital investment decision-making can be key to bridge the gap in project delivery.
(PM-3124) Disruption Quantification in Small and Medium EPC Projects: A System Dynamics Model
Author(s)/Presenters(s): Michael Mac Guinness
Time/Room: MON 4:00-5:00/Room 9
Change is a fact of life in Engineering, Procurement and Construction (EPC) projects however change impacts (cost, schedule and productivity) are usually estimated in isolation, there is no generally accepted way to assess the cumulative effects of multiple changes either before or after the events. This presents huge problems for small and medium sized contractors.
This paper describes the design, build and testing of a radically simplified system dynamics model intended to assist project management deal with the complex interaction of changes on productivity and quality, to forecast their cost and schedule impacts, and evaluate ways to mitigate or avoid them.
Starting with the rework cycle with feedback, a system dynamics model was developed. The model was expanded to include multiple feedback loops. The minimum complexity was added to capture the interaction and feedback of timing and magnitude of changes and their effects on productivity, quality, cost and schedule.
(PM-3134) Aerial Data Collection Accuracy and Insights to Infrastructure Decisions
Author(s)/Presenters(s): Blaine Horner; Ryan Mextorf; Kyle Schroeder; Shanna Hawley; Timothy Bail; Travis Featherby; Vinay Nair, PE
Time/Room: MON 10:15-11:15/Room 9
The geospatial industry is revolutionizing infrastructure-related endeavors by using unmanned aerial vehicles (UAVs). From topographic map development for urban planning to orthomosaic map composites, UAVs enable contractors and developers to accelerate data collection and processing through all phases of the construction life cycle. UAV technology has reached a point where operators can follow standardized collection practices to gather consistent and reliable information.
UAV data can vary in accuracy and precision in accordance with the demands of a given application. This paper will emphasize the need for understanding project requirements to assess the appropriate type of UAV data collection. This paper also addresses trends in aerial data mapping, industries that UAVs are impacting, and the regulatory framework for working with UAVs and UAV data.
(PM-3151) Optimized Cash-flow: Opportunities for Finance Solutions for Contractors and Owners
Author(s)/Presenters(s): Ashraf Elazouni
Time/Room: WED 9:15-10:15/Room 9
While scheduling is being used by the construction planning teams to integrate the management of project time and cost, project financing is yet managed separately at the corporate level by the finance teams. This results in project finance being managed separately from project time and cost. This trend signifies a remarkable gap within the framework of project management. As a direct consequence of this trend, schedulers generate construction cash-flow forecasts for projects which are presented to the finance teams as a by-product of the scheduling process. This represents a huge imperfection of the generated cash flow as a management tool to help finance teams make prudent project finance decisions.
This paper presents a scheduling and cash flow generation case studies that achieves full integration between project duration, cost, and finance. In addition to the generation of project cash flow forecasts, the case studies show that the full integration between schedules and cash flow allows both teams to optimize schedules and generates cash flow that offer intriguing finance solutions.
(PM-3246) Benchmarking the Performance of Egypt's Contruction Industry Using KPIs
Author(s)/Presenters(s): Ahmed Bahaaeldin I. Ghonamy; Dr. Mohamed A. El-Mikawi
Time/Room: WED 10:30-11:30/Room 9
This paper reviews the importance of key performance indicators (KPI) to evaluate and improve construction project management performance. A suitable research framework was established to select and determine KPI values. KPIs were collected from previous researches then face to face interviews with expert engineers to select most appropriate KPIs within the Egyptian market. A questionnaire was designed and 162 senior engineers responded to ranking KPIs.
The paper provides six KPIs that were used to measure project management performance efficiency and evaluate the performance of contractors in Egypt. The results confirm that using KPIs are essential because they assist construction companies in recognizing their strengths and weaknesses and carry out unremitting enhancement and improvement. The research methodology is applicable in other countries with some modifications.
(PM-3259) Improving Project Success by Introducing Safety Measures Early in the Project Life Cycle
Author(s)/Presenters(s): Chantale Germain, P.Eng.; Dr. Nathalie Drouin
Time/Room: SUN 1:00-2:00/Room 9
Accurate planning is key to the success of any project. Safety incidents are one important consideration that impact planning and schedule performance. It is thus essential that safety measures be introduced in the early phases of the project life cycle. This article presents the results of the first phase of a broader project to develop a model for introducing safety measures early in the feasibility phase with the goal of improving project planning performance. The findings are based on a literature review and a quantitative approach using the in-house databank of a Canadian energy company. The results of this first phase of the broader study show that project success improves when safety measures are introduced in the planning phase. The measures introduced must be designed to reduce incidents that occur most often with the particular type of project concerned. When building power transmission lines, measures are required to address negative patterns with respect to the following: cabling work, work conditions (such as working at heights and live-line work), particular days of the week and weather conditions.