Administering Lump Sum P/T Contracts via a Cost Loaded Schedule

1. Administering Lump Sum P/T Contracts via a Cost Loaded Schedule Tom Wiener, P.E. MnDOT Project Controls Engineer Matt Reid, P.E. HDR Engineering, Inc.

2. Background – Why?

3. Cost Loaded Schedule • Allows for Breakdown of L.S. Cost • Validate Costs of the L.S. • Better Quality Control • Better Progress Control and Monitoring • Earned Value / Revenue Techniques

4. Cost Loaded Schedules Schedule of Values Contractor Consultant (Low Bid Contract) Lump Sum Bid items are Cost Accounts in P6 that align with Unit Rate bid items

5. Cost Loaded Schedules Schedule of Values Contractor Consultant Challenges Faced • We’ve Never Done This Before ($14.2M QBS) • Office of Audit/Validation of Costs • Creating Negotiated Work Packages from RFP • Schedule Was a Learning Curve for Consultant

6. MN Earned Revenue Method • Provides Method for Equity Control • Allows for Schedule Risk to be Reduced • Reduces Fears of Lump Sum • Lump Sum • Encourages Innovation • Scope Diligence • Streamlined Payment Administration

7. St. Croix Design Schedule

8. St. Croix Design Schedule • Lump Sum Contract Requirement • 1st Design Contract – Lump Sum CPM • Use of MnDOT SWIFT Codes • 1010 – Project Management • 1250 – Misc. Engineering & Support • 2824 – Special Studies • ABUT • DECK • PIER • Oracle Primavera P6

9. Types of Schedules • Baseline Schedules – 1st plan for executing work and progress measured from • Update Schedules – record of progress on a monthly basis; actual dates, remaining durations, actual cost, earned value. • Revised Schedules – Re Baseline if necessary

10. St. Croix Baseline Development • Schedule built locally • Coordination with Functional Leads and MnDOT • Baseline Acceptance • Baseline Uploaded to MnDOT Hosted P6 Environment

11. St. Croix - Work Breakdown Structure (WBS)

12. MnDOT CPM Specifications • Similar to MnDOT CPM Const Specs – 1803 • Activity Durations 5-20 days • Activity must have Predecessor/Successor • No Lags/Leads • Constraints • Contract Time, Delays, Impacts, Failure to complete work on time

13. St. Croix Scheduling • Schedule Activities – 465 • Logic Relationships – 750 • Constraints – 14 Initially, 2 Afterward • Critical Activities – 40, less than 10% of Project, no more than 30% per spec

14. Assigning Cost Accounts to Activities- Cost Loading • SWIFT Codes • Differentiate Subs – Multiple Entries • Reporting

15. Schedule Updates – Earned Value • Schedule Updated Monthly • Purposes of CPM • Coordination with Design Functional Leads • Schedule Narrative • Highlights Anticipated/Final Milestones • Critical Coordination Activities • Change in Schedule Logic • Payment - Invoicing

16. Schedule Updates – Invoicing

17. Benefits of Design CPM on St. Croix • Organization • Define deliverables in an organized format • Ensure all contracted deliverables are accounted for • Activities have agreed upon budget • Communication • Relationship between disciplines and other parties • Responsibility - activities are assigned to companies, DOT • When deliverables are required logically • Analysis • On time – baseline comparison and float analysis • On budget – Internal earned value/percent complete analysis • Risk or Impact mitigation – All parties can identify and mitigate potential risks, allocate or shift resources

18. Consultant Contract Was it worth it? Yes • Validated Scope of Work • Consultant buy-in to the process • Truly managed schedules (Earned Revenue Mngt) • We needed this design done on time • Streamlined Payment administration – Auditing History

19. Where Are We At/Going? • Project In Construction Phase • Contractor’s build schedule in our network 1/1/13 • Piloting BIM and CTD schedules 3/1/13 • Select Unit Rate project Resource and Cost Loaded 3/1/13 • Role and Resource Loaded of CE&I staff 6/1/14 • Projects in Scoping and Design Phase • Programmed Projects Role and Resource Loaded 6/30/13 • All planned projects Role loaded by June 30, 2014 • Taxpayer Transportation Accountability Act

20. Q&A? Administering Lump Sum P/T Contracts via a Cost Loaded Schedule Tom Wiener, P.E. MnDOT Project Controls Engineer Matt Reid, P.E. HDR Engineering, Inc.