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Capital Project Planning and Management

Document Code No.: CON 7-9-1 (AEP)
Department/Issuing Agency: King County Executive
Effective Date: October 1, 2000
Approved: /s/ Paul Tanaka
Type of Action: Supersedes CON 7-9 (AEP) "Use of Contracted Construction Management Services" dated 01/01/97

Signed Document (PDF, 5.5 MB)

1.0 SUBJECT TITLE: Capital Project Planning and Management

2.0 PURPOSE:

2.1 To establish policies governing key elements of the project planning and management process to enhance overall project delivery effectiveness.

3.0 ORGANIZATIONS AFFECTED:

3.1 All Executive Departments, Offices and Agencies.

4.0 REFERENCES:

4.1 CON 7-13 (AEP) "Introduction to Construction Management Policies and Procedures".

4.2 CON 7-7-1 (AEP) Procurement for Capital Projects.

4.3 CON 7-8-1 (AEP) Change Order/Amendment Administration.

4.4 CON 7-14 (AEP) Design Management.

4.5 CON 7-10-1 (AEP) Project Control Officer.

4.6 CON 7-5-1 (AEP) Project Closeout.

4.7 FIN 15-2-1 (AEP) Audits of Construction Management Practices.

5.0 DEFINITIONS:

5.1 See CON 7-13 (AEP) Appendix A "P&P Defined Terminology".

6.0 POLICIES:

6.1 All CAPITAL PROJECTS shall include an initial planning and programming process to develop the project scope. This should include an analysis of organizational needs, public input, consideration of constraints, and the definition of general project requirements. The level of detail for this planning and programming process should be based on the size and complexity of the project.

6.2 IAs shall develop a project management plan for each CAPITAL PROJECT. Guidelines for development of the project management plan and elements to be included in the project management plan shall be documented in the IA's project management manual.

6.3 All CAPITAL PROJECTS shall have established budgets prior to project initiation. IA shall consider adequate contingency amounts during budget formation. The PROJECT REPRESENTATIVE is responsible for monitoring and controlling PROJECT COSTS to ensure that costs do not exceed budgeted amounts, are in accordance with CONTRACT terms, and are properly substantiated by IA DOCUMENTATION.

6.4 All CAPITAL PROJECTS shall have a project schedule. The PROJECT REPRESENTATIVE is responsible for reviewing and managing the project schedule from project initiation through design, construction, and project closeout to ensure that the project is completed in the time required to meet the needs of the end users.

6.5 Each IA shall have a standardized process for identifying, analyzing, and responding to potential project risks (i.e. project unknowns, not insurance requirements) when implementing CAPITAL PROJECTS. This process shall be documented in the IA's Project Management Manual.

6.6 The IA shall conduct a quality control process throughout the life of the project to ensure that project results satisfy the needs of the project owner and end users, as well as the operational requirements of the project.

6.7 The PROJECT REPRESENTATIVE is responsible for ensuring that CONTRACTOR and/or CONSULTANT work performed is within the contracted SCOPE OF WORK. Any work outside the agreed upon SCOPE OF WORK must either be procured separately or have a PROCUREMENT WAIVER.

6.8 Each IA shall establish monthly management reporting to provide the status of each agency's capital improvement projects and the program as a whole. The IA shall provide monthly reports to the IAD or designee to ensure that KC management is adequately informed about the status of CAPITAL PROJECTS.

6.9 All CAPITAL PROJECTS shall have and use an established document/information management system to ensure that project information is readily accessible.

6.10 County shall pay for all services rendered on a timely basis in accordance with its obligations described in the CONTRACT documents.

6.11 The County shall resolve disputes in a timely basis in accordance with the procedures described in the CONTRACT documents.

6.12 On all CONSTRUCTION SERVICES CONTRACTS estimated at $10 million or more, a construction management firm shall be retained, unless, at the written request of the IAD, this requirement is waived in writing by the EAC and the Deputy County Executive. The IAD's request to waive this requirement must be based on the IA's demonstration that the construction project can be effectively managed by County forces, consistent with best industry practices.

6.12.1 The services which the construction management firm may provide include but are not limited to:

A. Establish and maintain a document retention and tracking system;

B. Review, analyze, and approve all construction schedules, including, but not limited to, schedule changes caused by change orders;

C. Provide independent cost estimates for all change orders;

D. Assist project staff in the negotiation of change orders; and/or

E. Review and approve progress payments.

7.0 PROCEDURES:

Action By Action
IA 7.1 To ensure that CAPITAL PROJECTS are managed consistently and that control requirements are met, IAs shall have a project management plan for overseeing each CAPITAL PROJECT. This plan should summarize the roles and responsibilities of the PROJECT REPRESENTATIVE and others involved in management of the project. The project management plan should be consistent with the P&Ps and be developed in accordance with guidelines in the IA's project management manual.

7.1.1 Essential information to be included in the plan include the following:

A. Project Purpose, Objectives, and Needs,

B. Primary Users,

C. General Description of Project,

D. Project SCOPE OF WOR,

E. Proposed Budget,

F. Project Schedule, and

G. Risk Assessment (i.e. identification of areas of potential concern).

IA

Project Representative

 7.2 For each CAPITAL PROJECT, the IA shall prepare a detailed, written cost ESTIMATE to complete the written SCOPE OF WORK. Based on the project's cost and level of complexity, the level of detail for the project budget may vary. At a minimum, the budget should include an ESTIMATE of design cost, construction cost, County work force and administration, and contingency allowance. It is the PROJECT REPRESENTATIVE'S responsibility to oversee and monitor the entire project budget after it has been established by IA. PROJECT REPRESENTATIVES must ensure that all CONTRACTS, CONTRACT CHANGE ORDERS/AMENDMENTS, payment applications, purchase orders, in-house staff time, and miscellaneous charges are within the project's budget, in accordance with CONTRACT terms, and are properly substantiated prior to authorizing them for processing.
IA 7.3 For each CAPITAL PROJECT, the IA shall develop a written project schedule based on design and construction requirements to complete the SCOPE OF WORK. Based on the project's cost and level of complexity, the level of detail for the schedule may vary.

7.3.1 Basic information that should be included in the schedule includes the following:

A. Project Start and Completion Dates,

B. Pre-Design/Programming,

C. Estimated time frame and interdependencies for each major project element,

D. Identification of Responsible Parties,

E. MILESTONE Dates,

F. Acquisition/Property Issues,

G. Permitting Requirements,

H. Design Phases (schematic design, design development, construction documents, etc.),

I. CONTRACTOR and/or CONSULTANT Procurement;

J. Construction, including a CPM schedule of major work activities, where applicable,

K. Use and Occupancy, and

L. Project Closeout.

IA

Project Representative

 7.4 The IA's PROJECT REPRESENTATIVE shall review and analyze the CONTRACTOR'S project schedule as a basis for either accepting or rejecting the schedule in accordance with the County's General Conditions (see General Conditions if the schedule is not accepted).

7.4.1 Items to be considered as part of the PROJECT REPRESENTATIVE'S review and analysis include:

A. Conformance of the project schedule to the specified CONTRACT start and completion dates or the CONTRACT period;

B. Clear identification on the project schedule of required interim MILESTONE dates;

C. Reasonable and logical amount of "float" time, so that not all activities are on the critical path;

D. Reasonable individual activity duration's and logical sequencing of activities;

E. Reasonable consideration and inclusion of schedule influences such as potential adverse weather conditions, long lead times for materials procurement and fabrication periods, and County review periods of submittals, among others. Schedules should be equipment, material, and labor loaded and/or resource loaded schedules. The level of effort and manloading at any point in time should be consistent with the size of the worksite and does not conflict with enforceable restrictions such as working hours, building permit conditions, etc.;

F. Verification that the format and content of the project schedule is consistent with the technical specifications, including the computer software utilized and the output reports;

G. Mobilization and clean up; and

H. Close-out activities.

7.4.2 The originally accepted baseline project schedule should be preserved in a hard copy and electronic copy format for the entire duration of the project. Schedule management during construction shall be performed in accordance with the requirements of the General Conditions and the IA project management manual.

IA 7.5 IAs shall include a detailed risk assessment process for CAPITAL PROJECTS in the project management manual.

7.5.1 This process should include the following steps:

A. Risk Identification: Determine what are the potential risks for each CAPITAL PROJECT and document the characteristics of each. This should include a review of any past CONTRACTOR and/or CONSULTANT evaluations;

B. Risk Quantification: Analyze and evaluate each risk to assess and quantify the range of potential impacts to the project; and

C. Risk Response: Determine action steps to mitigate the potential negative impacts of each risk.

IA 7.6 The IA's quality control process for CAPITAL PROJECTS should be documented in the IA's project management manual.

7.6.1 This process should include the following steps:

A. Review of project activities against the agreed upon project scope;

B. Tests and inspections to measure project activities against established specifications;

C. Adherence to functional objectives and design specifications;

D. Compliance with permitting, regulatory, and environmental requirements and specifications; and

E. Action to correct any identified quality control issues.

Project Representative 7.7 The PROJECT REPRESENTATIVE shall follow the policies and procedures outlined in the PCSS Procurement Manual to obtain any services outside the original SCOPE OF WORK. This includes procedures for procurement and PROCUREMENT WAIVERS for out of scope work.
Project Representative 7.8 PROJECT REPRESENTATIVES shall develop CAPITAL PROJECT status reports based on departmental guidelines. Depending on the PROJECT COST, schedule, level of complexity, and information needs of IA management, the level of detail for project status reporting may vary. Basic information that should be included in the project status reporting include costs incurred, budget status (unexpended budget vs. estimated balance to complete), CHANGE ORDERS/AMENDMENTS, project schedule, contingency, and any variances between planned vs. actual project performance.
IA 7.9 Each IA shall develop and utilize a formal document indexing system to manage and maintain project information on a consistent basis throughout projects.

7.9.1 This should include, but not be limited to:

A. Table of Contents,

B. Project Data Sheet (key contacts, phone #'s, etc.),

C. Budget and Schedule,

D. Project Planning Information,

E. Correspondence,

F. CONSULTANT CONTRACT and AMENDMENTS,

G. CONSULTANT Invoices,

H. CONTRACTOR Bids,

I. CONTRACTOR CONTRACT and CHANGE ORDERS,

J. CONTRACTOR Applications for Payment,

K. Minutes of Construction Meetings,

L. Permits, and

M. Project Closeout.

8.0 RESPONSIBILITIES:

8.1 IAs are responsible for developing a project management plan to oversee each CAPITAL PROJECT.

8.2 IAs are responsible for ensuring that a budget exists for each CAPITAL PROJECT and that costs do not exceed the budget.

8.3 IAs are responsible for developing and managing a project schedule for each CAPITAL PROJECT.

8.4 IAs are responsible for planning and managing CAPITAL PROJECTS in accordance with these policies and procedures.

9.0 APPENDICES: None.