Capital Project and Contract Planning and Management

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 team, 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 WORK,

E. Proposed Budget,

F. Project Schedule, and

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

IA

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 MANAGER's responsibility to oversee and monitor the project budget after it has been established by the IA. PROJECT MANAGER and PROJECT REPRESENTATIVE 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.

7.3 For each CAPITAL PROJECT, the IA shall develop a written project management plan. The project management plan should include appropriate project controls 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 project controls may vary.

7.4 Basic information that should be included in the Project management plan includes the following:

A. An established project budget, including budget for all phases of the project

B. Identification of baseline construction targets for design scope, schedule and budget established when there is enough technical information available to allow a reasonable basis for performance measurement. Baseline construction targets should be established when 30% to 40% of design is complete, depending on the project.

C. If the final design consultant differs from the predesign consultant, the plan shall include a process for reconciling differences, if any, when 30% to 40% design is complete.

D. A plan establishing cost controls, including, but not limited to: (1) identifying a process for design changes during the final design phase and maintaining costs within baseline construction target; (2) a process requiring the IA's approval of any design change that may result in exceeding the baseline construction target before incorporation into the design; and, (3) identifying a timely process for risk identification and management including impact of risks on the baseline construction target.

E. A plan identifying: design intervals or milestones for deliverables (design drawings and other submittals); requirement for periodic updates to the cost estimates; and requirements for a schedule for design reviews.

F. A plan for estimating requirements to include: specifications for formats and level of detail required; a reconciliation process to use when baseline construction target and design estimates are at variance; and, value engineering or other processes to consider scope revisions to control cost, as applicable to the CAPITAL PROJECT or CONTRACT.

G. A plan for contingency management, including establishing contingency levels throughout the CAPITAL PROJECT and for each CONTRACT.

H. The plan must include the IA Department's process for notification to the IA Department Director when the baseline construction target is at significant risk of being exceeded.

IA

7.5 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.

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

A. Project Planned Start and Planned Completion Dates,

B. Pre-Design/Programming (as applicable)

C. Estimated activity durations and interdependencies for each major element,

D. MILESTONE Dates,

E. Acquisition/Property Issues, where applicable

F. Permitting and Regulatory Activities ,

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

H. CONTRACTOR and/or CONSULTANT Schedule for Procurement;

I. Construction activities, including a Critical Path Method (CPM) schedule of major work activities, where ; and

J. Use and Occupancy, if applicable; and,

K. Project Closeout.

IA

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

7. 7.1 Items to be considered as part of the PROJECT REPRESENTATIVE'S review and analysis include:

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

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

C. Review of schedule logic for reasonable and logical sequencing of activities including such factors as "float" time, so that not all activities are on the critical path, and the duration of individual activities.

D. 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.

E. Schedules should be equipment, material, and labor loaded and/or resource loaded schedules. The level of effort and man-loading at any point in time should be consistent with the size of the worksite and does not conflict with enforceable restriction such as working hours, building permit conditions, etc.

F. Verification that the format and content of the CONTRACT 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.

7.8.2 The originally accepted baseline CONTRACT schedule should be preserved in a hard copy and electronic copy format for the archival life of the PROJECT files. Schedule management during construction shall be performed in accordance with the requirements of the General Conditions and the IA project management manual.

IA

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

710.1 This process should include the following steps and provide for different types of project:

A. Risk Identification: Determine what the potential risks for each CAPITAL PROJECT;

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 each risk.

IA

7.11 The IA's quality control process for CAPITAL PROJECT CONTRACTS should be documented in the IA's project management manual.

7.12.1 This process should include the following steps:

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

B. Tests and inspections to measure CONTRACT 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.

IA

7.13 The PROJECT REPRESENTATIVE shall follow the policies and procedures outlined in the PCSS Procurement Manual to obtain any services outside the original CONTRACT SCOPE OF WORK. This includes procedures for procurement and PROCUREMENT WAIVERS for out of scope work.

IA

7.14 PROJECT MANAGER 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 CAPITAL PROJECT status reporting may vary. Basic information that should be included in the CAPITAL PROJECT status reporting include costs incurred, budget status (unexpended budget vs. estimated balance to complete), CHANGE ORDERS/AMENDMENTS, CAPITAL PROJECT schedule, contingency, and any variances between planned vs. actual CAPITAL PROJECT performance.

IA

7.15 Each IA shall develop and utilize a formal document indexing system to manage and maintain project information on a consistent basis throughout the CAPITAL PROJECTS.

7.15.1 This should include, but not be limited to:

A. File Index,

B. Project Contact List (key contact, 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. Meeting notes/meeting minutes

L. Permits, and

M. Project Closeout.