Project Alignment and Issue Resolution

1. Project Alignment and Issue Resolution PMI/AACE Joint Meeting March 29, 2007 by George F. Jergeas and Steve Revay

2. Agenda • Introduction • Non-traditional approach (A New Mind Set) • Project Alignment / Partnering • Project Neutral • Conclusions

3. Introduction • Characteristics of the construction industry • Adversarial • Win-lose approach • Risk allocation • Fixed price and fast-tracking • Increase in claims

4. Litigation and Arbitration • Too adversarial • Outcomes unpredictable • Complex and convoluted • Very expensive and lengthy

5. Non-traditional Approach • Proactive approach to avoid and resolve disputes: • Non-adversarial manner • Together as a team • Project Alignment / Partnering • Project Neutral

6. Project Alignment

7. Characteristics of Failed Projects • Adversarial • Win-lose approach • Hidden Agendas • Unclear Project Objectives • Leadership Problems • Lack of Commitment • Personality Conflicts • Poor Communication

8. Different Approaches Partnering • Tries to instil co-operation amongst project participants • Focuses on teamwork, communication and alignment of goals • A partnering workshop is usually conducted at start of project with follow-ups • Partnering does work

9. Project Alignment/Partnering • Reverse backward trend by: • Changing mind sets • Focus on real issues • Start early! • Does not replace contract

10. Project Alignment / Partnering A structured management approach for transforming contractual relationships into a cohesive, co-operative project team with common goals and established procedures for resolving issues or disputes in a timely manner.

11. Prerequisites • Equity • Commitment • Trust • Open communication • Mutual goals and objectives • Ongoing project goal evaluation • Timely issue resolution

12. Prerequisites All Parties • Participate in Alignment workshop • Commit time • Develop common goal and objectives • Willing to listen to options & other expertise • Ongoing willingness to work together through problems

13. Prerequisites • Owner • Commitment and active promotion • Role of the INDEPENDENT facilitator • Assess participants needs • Organize the workshop • Provide ongoing INDEPENDENT support and monitoring

14. Alignment Process Problem Resolution Teambuilding Workshop for Team players Completion Monitoring Success On going Support

15. The following goals and objectives were agreed and recorded as the Partnering Team Charter for the project. Produce a project that is safe in its design, construction, maintenance and use. Create a safe-working environment resulting in zero lost-time incidents. Minimize the inconvenience to the patients, visitors, care providers and protect the facility, community and the environment. Design and construct a project of optimum quality, which is functional, flexible, maintainable, sustainable and of which we are proud. Goal of project is to have zero claims. Provide a non-confrontational forum for the resolution of any disputes that arise. Encourage innovation and creativity. Understand each party's role within the project team and develop good relationships based upon trust, respect and honesty. Manage the project effectively, efficiently and manage stakeholder change requests. Incorporate and share lessons learned from other projects and gained from outside sources/experience. Maintain positive, cooperative relationships through; clear and open communication, no surprises, no hidden agendas, minimum delays of paperwork, and resolution of problems quickly at the lowest level. Prepare, update, and share common project schedule. Deliver project on schedule and within budget. Co-ordinate efficiently with other hospital projects as much as possible. Empowerment of all team members to allow decision making at all levels. Improve budget management by regular review and tracking of cost accounts and early communication of cost overruns and changes. Manage scope changes in a fair and timely manner. Acknowledge the requirements connected with infection, prevention and control. 19. Have fun and create an enjoyable work environment. Rockyview General Hospital We, the team of the Redevelopment Project, recognizing the unique nature of this project, commit to creating an environment of trust and open communication to deliver a quality project, which meets or exceeds each stakeholder group’s requirements. We commit to maintaining a seamless, positive, and optimistic work environment in which all partners' goals can be achieved. Capital Project - 2004

17. 1 5.0 12 2 4.0 3.0 11 3 2.0 1.0 10 0.0 4 5 9 8 6 7 Team Alignment Overall Team Self-Evaluation Results (Combined)04-Dec-09 • Communications • The flow of information • The timeliness of information • Cooperation • Problems, issues or concerns • Responses to problems • Disputes/problems • Problems are resolved • Construction safety performance • Design and construction quality • Value for money • Public Complaints

18. 1 5.0 12 2 4.0 3.0 11 3 2.0 1.0 cc 10 0.0 4 9 5 8 6 7 Team Alignment by Company Team Self-Evaluation Results (By Company) 04-Dec-09 • Communications • The flow of information • The timeliness of information • Cooperation • Problems, issues or concerns • Responses to problems • Disputes/problems • Problems are resolved • Construction safety performance • Design and construction quality • Value for money • Public Complaints

19. Issue Resolution Mechanism • Lowest level with time limit • Escalated to the next level of management • No action is not an option

20. Issue Resolution Mechanism Stage One Within 2 days Names: 1. __________ 2. __________ Stage Two Within 3 days Names: 1. _________ 2. _________ Stage Three Within 5 days Names: 1. __________ 2. __________ Resources Available 1. 2. Problem Identified Problem becomes apparent Solution to problem offered by those who are directly involved with it If problem not resolved, go to stage two. If solution agreed, do not go to stage two. If changes affect other project parties, record them into a form for circulation. Problem discussed at progress meeting. Solution to problem offered by project team. If solution to problem cannot be agreed at progress meeting, go to stage three. If solution agreed, do not go to stage three. Solution to problem recorded in meeting minutes. A resolution committee comprising a representative from each of the project parties is formed. Problem resolution meeting called for committee. Mutual way forward for project greed by resolution committee. Statement of way forward recorded and issued. Fact Based Mediation Finish Finish Finish Alignment Workbook

21. In the event parties have a legitimate difference of opinion Requiring analysis

22. Options • Each party engages claims consultant • Each party diverts project people to perform analysis • Two parties engage independent to provide objective basis

23. Proposed Alternative The appointment of an impartial independent Facilitator to offer: • Unbiased advice and decisions • Assist in negotiation • Conduct forensic analysis

24. Project Neutral • Voluntary and economical • Assists negotiation • Relies on communication to achieve resolution • Problem solving approach • Uses impartial independent facilitator for forensic analysis and to facilitate conciliation process • Decision is not binding • Contracts should include “Facilitation” clause

25. Forensic Analysis • Initiation of Process • Fact Finding • Draft Report • Final Report

26. Initiation of Process • Differences with regards to delay / productivity • Generally speaking not scope issues

27. Fact Finding • Access to documents from all parties • Access to project people from all parties • Better results less cost

28. Draft Report • Issued with the expectation that it will be challenged • Each party has input into final result • Manage expectations regarding outcome

29. Final Report • Alignment modality • Parties have contributed to final result • Legitimate interests have been considered • Most economic alternative • Based on objective criteria

30. Conclusions • Project Alignment/partnering works • Focus on maintenance and communication • Nip problem in the bud • Early non-adversarial communication • Keep negotiating • Work with people • Project Neutral • Complex issues resolved with objective criteria