Technical Program Abstracts

(OWN) Owner Issues

(OWN-2789) Major Risks in Transmission Line Enterprises

Author(s)/Presenter(s): Dennis Y. Bocuzzi; Luciano Fujii
Time/Location: Tuesday, June 26 from 5:15pm to 6:15pm / America's Cup AB (4th Floor)

Abstract:

[Level: Basic] The demand for high-voltage transmission lines in Brazil is increasingly high. As many power plants, solar and wind farms start their operation, the gap of transmission has become more evident and, for this reason, the government has prioritized the sector in recent years. This has led to many greenfield mega projects for the construction of transmission lines and substations, where new players arise each year and, with them, lack of experience on the part of the owner is a key factor. More than 12 billion USD in investments were announced in 2016 and 2017, totaling almost 80 different projects and over 25,000 kilometers of transmission lines (15,625 mi).

This paper describes the high-voltage transmission line situation in Brazil. It presents the most common complex construction projects, in which EPC lump sum contracts are usually awarded. The major risks associated with this type of project and contract, along with common mistakes made by the enterprises, methodologies applied, or not applied and their consequences are reviewed.

(OWN-2800) Owner's Role in Construction Productivity and Schedule Constructability

Author(s)/Presenter(s): Ahmad Emam, CCP
Time/Location: Monday, June 25 from 2:15pm to 3:15pm / America's Cup AB (4th Floor)

Abstract:

[Level: Basic] The project owner is the first one penalized in the case of late delivery due to project delays. Applying effective project monitoring and control gives the owner more confidence in the progress figures reported by the contractor. The project owner should not wait until the project is 90% completed to receive progress figures on the remaining 10% of the project which may take another 90% to be completed. Several contract terms and conditions obligate the contractor to report to the owner labor and equipment productivity and construction challenges and risks. This paper describes the basics of construction productivity and schedule constructability, the direct relationship between the two, and the benefits, both project related and business related, of the owner's team evaluating these two elements. In addition, the paper provides several practical examples from the construction of industrial projects that demonstrate the “how” of productivity measurement and schedule constructability review by an owner's project team.

(OWN-2809) How to Maximize ROI from Integrated PMIS and IWMS/FREM Solutions

Author(s)/Presenter(s): Steve Powers; Kimberly McDonald Baker
Time/Location: Tuesday, June 26 from 2:15pm to 3:15pm / America's Cup AB (4th Floor)

Abstract:

[Level: Intermediate] This paper examines the capital asset lifecycle and discusses how the implementation of a project management and cost controls solution (also known as a Project Management Information System or PMIS) lays the foundation upon which a complete lifecycle asset management system can be built.  The paper covers the stages of lifecycle asset management and how integrating a PMIS with an integrated workplace management system (IWMS) or facilities and real estate management (FREM) solution manages the full lifecycle. It covers the implementation methodology behind a successful PMIS, IWMS / FREM solution deployment, including how consultant and client teams engage and collaborate during solution rollout. This paper also discusses three real-world use cases utilizing the systems and methodology examined to illustrate how organizations can quickly obtain maximum ROI from their solution investment.

(OWN-2852) Path to Predictability: The Evolution of An Owner's Integrated Cost Engineering System

Author(s)/Presenter(s): Prashant K. Srivastava; Kyle Rakowski; Maury Porter; Nathan Len
Time/Location: Tuesday, June 26 from 11:30am to 12:30pm / America's Cup AB (4th Floor)

Abstract:

[Level: Basic] In 2006, a large scale energy infrastructure company (the Company) faced a growing portfolio of capital projects, including several potential mega-projects. The company had a solid history as an operator but did not have in-house cost engineering capability to evaluate and manage such large capital investments. Significant challenges surrounding estimate accuracy provided strong motivation to improve. Fast forward to 2018 and the Company has mature in-house Cost Engineering expertise and an integrated suite of effective cost estimating and modeling, risk analysis, and historical project benchmarking methods and tools that are aligned with AACE® International Recommended Practices. Improvements in estimate accuracy and performance repeatability have been excellent and demonstrable. This case study will walk through the evolution from immature processes and tools, to fully customized, ground-up tools and finally towards the use of standardized industry tools extensively calibrated with integrated systems now used to develop estimates for the multi-billion dollar annual capital spend program. A company acquisition now presents new challenges. A road map for future improvement and integration will also be explored.

(OWN-2853) High Voltage Transmission Line Megaprojects: Strategic Considerations and Lessons Learned

Author(s)/Presenter(s): Jason R. Kean, P.Eng.
Time/Location: Tuesday, June 26 from 4:00pm to 5:00pm / America's Cup AB (4th Floor)

Abstract:

[Level: Basic] This paper will outline a number of strategic considerations when planning the development of a major high-voltage transmission line, based extensively on the author's recent experience leading the construction of a $2.5+B CDN transmission project in Canada. Through a sharing of lessons learned and best practices, the author will provide key insights for use in planning future transmission lines or other linear projects (e.g. pipelines).

Specific areas of focus within the paper will include (i) project delivery options and approaches, (ii) cost and schedule development management, (iii) risk and uncertainty management, (iv) interface management, and (v) claims avoidance.

Additionally, this paper will provide key insights to support the establishment of industry-standard cost estimating guidelines for high-voltage transmission lines.

(OWN-2861) (Presentation Only) Supporting Owner Estimate Classes with Engineering Maturity and Accuracy

Author(s)/Presenter(s): Stephen L. Cabano
Time/Location: Monday, June 25 from 10:15am to 11:15am / America's Cup AB (4th Floor)

Abstract:

[Level: Basic] For decades, AACE International has provided details around the level of cost estimating accuracy related to the maturity of the engineering deliverables across front end phases of a project. This established an industry accepted criteria for communicating the level of cost estimating precision as a project moves from its earliest development phases to the full project funding step. This single dimension has long been the mechanism for assuring engineering deliverables are at the level of completeness to support the cost estimating effort. But is it enough? The Construction Industry Institute (CII) recently completed a research effort which concluded it was not enough in today's market. A second dimension/second lens is needed to evaluate the level of accuracy of engineering deliverables. This presentation will provide the basis for this research and the data that supports the application of the approach. The tool that has been developed to support the multi-lens review of engineering deliverables in support of the required class estimate, The Front End Engineering Design - Maturity and Accuracy Total Rating System (FEED MATRS) will be demonstrated to show the tool's functionality and benefits in measuring whether a project is ready to progress through its Front End phase gates.

(OWN-2862) Owner Project Planning Supports Estimate and Schedule Accuracy

Author(s)/Presenter(s): Robert C. Mathias; Christopher F. Michalak; Paul G. Williams
Time/Location: Monday, June 25 from 11:30am to 12:30pm / America's Cup AB (4th Floor)

Abstract:

[Level: Intermediate] When developing the owner’s cost estimates, the maturity of engineering deliverables has often used to define the class of estimate produced. This has long supported the standard estimate classification model but should not be the only parameter considered when defining the class of estimate in support of capital programs. There are several equally important aspects of the quality of the front end deliverables such as the accuracy of the engineering as well as the maturity of the project plan. The project plan needs to evolve at the same pace as the engineering deliverables and will likewise affect the level of schedule and cost estimate accuracy. Significant improvement in project cost and schedule outcomes are possible, depending on the details of the project plan and its relationship to specific project characteristics and risks. This paper will identify industry best practices for content of the project plan and the typical evolution of the plan through the project front end efforts and execution.  Examples of owner project plans will be provided and as well as the impact various components of the plan have on the estimate/schedule accuracy and corresponding project risk.

(OWN-2873) Improving Public Procurement by Applying Principles of Project Control

Author(s)/Presenter(s): Bryan Payne, PE CCP CFCC Esq.
Time/Location: Monday, June 25 from 4:00pm to 5:00pm / America's Cup AB (4th Floor)

Abstract:

[Level: Intermediate] Public procurement is a costly, lengthy, and generally unpleasant process.  Although project managers may plan for procurement in the overall project schedule, the detailed contracting process is often opaque.  This leaves the project manager's schedule at the mercy of the contracting process and the contracting officer. Contracting officers do not in general plan procurements like projects but treat procurement as an administrative process.  However, by applying the principles of project control the procurement process may be transformed from a gnostic process to a transparent sub-project that may be tracked and measured like any other phase in an overall project.

This paper will examine how planning, scheduling, and monitoring procurements like projects have resulted in substantial savings in cost and time to public owners.  This paper will also explore how procurement should be addressed in the TCM Framework.

(OWN-2973) What, Why, and How of an FTA Before-and-After Study

Author(s)/Presenter(s): Omoniyi O. Ladipo, CCP EVP
Time/Location: Monday, June 25 from 5:15pm to 6:15pm / America's Cup AB (4th Floor)

Abstract:

[Level: Intermediate] The Federal Transit Administration (FTA) is an agency within the US Department of Transportation (DOT). FTA requires all sponsors of specific types of major capital investment projects, that are recipients of federal funds, to prepare a Before-and-After Study (Study) for each project. The Study is designed to capture the actual and predicted outcomes of a project so that the knowledge acquired can be utilized in the prediction of the outcomes of future projects. The Study covers the period from the planning phase through design, construction, and the opening of a transit project for use by the traveling public. The Study evaluates the project outcomes across specific milestones, based on five main criteria, namely project scope, capital cost, service levels, operating and maintenance costs, and ridership. This paper will provide some insight into reasons why the Study is required, how a Study is planned and executed, and identify some essential steps for success.

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