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P roject D elivery & C ontract S trategy (PDCS)

P roject D elivery & C ontract S trategy (PDCS). OVERVIEW. Project Delivery and Contract Strategy Alternatives. ID numbers were used in lieu of names Names were given to the PDCS options at the end of the research. PDCS Descriptions. Each is unique

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P roject D elivery & C ontract S trategy (PDCS)

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  1. Project Delivery & Contract Strategy (PDCS) OVERVIEW

  2. Project Delivery and Contract Strategy Alternatives

  3. ID numbers were used in lieu of names Names were given to the PDCS options at the end of the research PDCS Descriptions

  4. Each is unique Other options may exist but generally are variants or combinations of the 12 12 PDCS Alternatives

  5. Project Delivery & Contract Strategy (PDCS) Criteria for Project Delivery and Contract Strategy Characterization

  6. Phase sequence Project team relationships Compensation approach PDCS AlternativesDefinition Criteria

  7. The sequencing of the design, procurement, and construction project phases, relative to each other Phase Sequencing

  8. Project Team Relationships • Project team relationships are described in both contractual and functional terms

  9. The type of compensation approach that is used for each contractual relationship. Compensation Approach

  10. PDCS Development • Eleven PDCS alternatives were identified based on the three criteria • Survey of CII and non-CII companies was undertaken to examine the use of each PDCS alternative • Data from 82 projects were collected • Eleven PDCS alternatives are currently used in industry • Twelfth alternative was added during development of tool

  11. Traditional Design-Bid-Build - PDCS 01

  12. Traditional with Early Procurement - PDCS 02

  13. Traditional with Project Manager - PDCS 03

  14. Traditional with Construction Manager - PDCS 04

  15. Traditional with Early Procurement and Construction Manager - PDCS 05

  16. Construction Manager-at-Risk - PDCS 06

  17. Design-Build (or EPC) - PDCS 07

  18. Multiple Design-Build (or EPC) - PDCS 08

  19. Parallel Primes - PDCS 09

  20. Traditional with Staged Development - PDCS 10

  21. Turnkey - PDCS 11

  22. Fast Track - PDCS 12

  23. Key Assumptions • Use tool during front end planning • Safety goals/objectives can be achieved equally well by all PDCS alternatives • Alliance/partnering relationships can be used with all PDCS alternatives • Facility startup is excluded except under the Turnkey alternative • Infrastructure projects were not adequately represented

  24. Project Delivery & Contract Strategy (PDCS) Selection Factor Overview

  25. Development of Selection Factors • Research project 165: • Identified typical project objectives • Identified 30 selection factors • Confirmed use and level of importance • Reduced selection factors to 20 by eliminating redundancy and overlap Basic Premise: Project objectives are translated into selection factors that drive the choice of a PDCS alternative for a project

  26. Factor Groupings • Cost-related factors (5) • Schedule-related factors (3) • Other factors (12)

  27. Selection FactorFactor Action Statement Completion within original Control cost growth budget is critical to project success Cost-Related Factors

  28. Selection FactorFactor Action Statement 2. Minimal cost is critical to Ensure lowest cost project success Cost-Related Factors

  29. Selection FactorFactor Action Statement 3. Owner’s cash flow for the Delay or minimize project is constrained expenditure rate Cost-Related Factors

  30. Selection FactorFactor Action Statement 4. Owner critically requires Facilitate early cost estimates early (and reliable) cost figures to facilitate financial planning and business decisions Cost-Related Factors

  31. Selection FactorFactor Action Statement 5. Owner assumes minimal Reduce risks or transfer financial risk on project risks to contractor(s) Cost-Related Factors

  32. Schedule-Related Factors Selection FactorFactor Action Statement 6. Completion within schedule Control time growth is highly critical to project success

  33. Schedule-Related Factors Selection FactorFactor Action Statement 7. Early completion is critical Ensure shortest schedule to project success

  34. Schedule-Related Factors Selection FactorFactor Action Statement 8. Early procurement of long- Promote early procurement lead equipment and/or materials is critical to project success

  35. Other Factors Selection FactorFactor Action Statement 9. An above-normal level of Ease change incorporation changes is anticipated in the execution of the project

  36. Other Factors Selection FactorFactor Action Statement 10. A below normal level of Capitalize on expected low levels changes is anticipated in of changes the execution of the project

  37. Other Factors Selection FactorFactor Action Statement 11. Confidentiality of business/ Protect confidentiality engineering details of the project is critical to project success

  38. Other Factors • Selection FactorFactor Action Statement • 12. Local conditions at project Capitalize on familiar project • site are favorable to conditions • project execution

  39. Other Factors Selection FactorFactor Action Statement 13. Owner desires a high Maximize owner’s controlling role degree of control/influence over project execution

  40. Other Factors • Selection FactorFactor Action Statement • 14. Owner desires a minimal Minimize owner’s controlling role • level of control/influence • over project execution

  41. Other Factors • Selection FactorFactor Action Statement • 15. Owner desires a substantial Maximize owner’s involvement • use of its own resources in the • execution of the project

  42. Other Factors • Selection FactorFactor Action Statement • 16. Owner desires a minimal Minimize owner’s involvement • use of its own resources in the • execution of the project

  43. Other Factors Selection FactorFactor Action Statement 17. Project features are well- Capitalize on well-defined scope defined at award of the design and/or construction contract

  44. Other Factors Selection FactorFactor Action Statement 18. Project features are not Efficiently utilize poorly defined well-defined at award of scope design and/or construction contract

  45. Other Factors Selection FactorFactor Action Statement 19. Owner prefers minimal Minimize number of contracted number of parties to be parties accountable for project performance

  46. Other Factors • Selection FactorFactor Action Statement • 20. Project design/engineering Efficiently coordinate project • or construction is complex, complexity or innovations • innovative, or non-standard

  47. Project Delivery & Contract Strategy (PDCS) Weighting Selection Factors

  48. Weighting Selection FactorsPreference Rank • Up to six selection factors should be identified • Selection factors should be ranked in ordered from most important to least important • Preference rank order should be tied to priority of project objectives and other key project requirements

  49. Weighting Selection FactorsPreference Scores • Preference scores quantify the relative importance of each selection factor • Highest ranked selection factor is always assigned a preference score of 100 • Other selection factors are assigned preference scores to reflecting the magnitude of their importance to the project relative to the first-ranked factor. • Use increments of five (5) or ten (10) at a minimum

  50. Weighting Selection FactorsIllustration

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