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Level: Advanced
TCM Section(s):
2.4. Project Control Process Map
8.1. Project Control Plan Implementation
Venue: 2021 AACE International Conference & Expo
Abstract: Looking to the future of the owner/contractor relationship environment, it has never been more important to consider how this relationship should be structured to deliver the project safely, at the quality defined, on time and within budget. These owner expectations seem simple but the historical record over the past 10+ years, especially on major projects, reads quite differently. Project expectations are not being achieved, and the rationale behind this spans owner, supplier and contractor issues.
Owners have difficulty locking down business case criteria, which in turn changes the capacity, timing and other parameters for the project. The farther along in the project development process this occurs, the more impactful it becomes to the venture. Suppliers are also responsible for some of these project issues with missed delivery dates and quality issues. The engineering/construction contracting community also has some culpability here. Contractors are understaffed and overly aggressive in bidding projects, allowing for unachievable goals from contract award through project completion. The way all entities function cohesively is vitally important to overall project success.
The owner’s contracting strategy, which is intended to weave a path through all of the potholes outlined above, also has a huge impact on the project control environment required for project delivery. The level of transparency across resource hours and cost/schedule data is crucial to keeping a project on track. A critical standard used to select one project control approach over another is the level of transparency desired by the owner. This is often overlooked when considering all the other measures for selecting the optimum contracting approach.
This paper will outline the interface aspects of project controls and varying types of contract strategies. Several examples will be given and the top 10 criteria for contract strategy selection will be shared. Several publicly available tools will be demonstrated that can assist owner organizations through this complex project planning step.
Level: Advanced
TCM Section(s):
2.4. Project Control Process Map
8.1. Project Control Plan Implementation
Venue: 2021 AACE International Conference & Expo
Abstract: Looking to the future of the owner/contractor relationship environment, it has never been more important to consider how this relationship should be structured to deliver the project safely, at the quality defined, on time and within budget. These owner expectations seem simple but the historical record over the past 10+ years, especially on major projects, reads quite differently. Project expectations are not being achieved, and the rationale behind this spans owner, supplier and contractor issues.
Owners have difficulty locking down business case criteria, which in turn changes the capacity, timing and other parameters for the project. The farther along in the project development process this occurs, the more impactful it becomes to the venture. Suppliers are also responsible for some of these project issues with missed delivery dates and quality issues. The engineering/construction contracting community also has some culpability here. Contractors are understaffed and overly aggressive in bidding projects, allowing for unachievable goals from contract award through project completion. The way all entities function cohesively is vitally important to overall project success.
The owner’s contracting strategy, which is intended to weave a path through all of the potholes outlined above, also has a huge impact on the project control environment required for project delivery. The level of transparency across resource hours and cost/schedule data is crucial to keeping a project on track. A critical standard used to select one project control approach over another is the level of transparency desired by the owner. This is often overlooked when considering all the other measures for selecting the optimum contracting approach.
This paper will outline the interface aspects of project controls and varying types of contract strategies. Several examples will be given and the top 10 criteria for contract strategy selection will be shared. Several publicly available tools will be demonstrated that can assist owner organizations through this complex project planning step.