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"Cost Effective Project Solutions"
Project Management Capability Statement
As quoted for a recent client
Contents
1.0 Introduction
This brief document has been put together in response to the Overseas Road Show (London) which took place on 13th April 1999.
The Road Show advanced our understanding of the Foreign market and in particular plans for development in the Middle & Far East.
The objective of |H|P|C’s role is to use its considerable skills to protect and safeguard the interests of the Client at all times and ensure that we deliver cost effective project solutions.
|H|P|C has been formed by a group of senior and highly qualified International specialists with a combined range of expertise. |H|P|C covers all the disciplines involved in the "fast track" design and construction of major infrastructure and Railway projects. |H|P|C brings a fresh approach to Client based organisations in offering Cost Effective Project Solutions to deliver projects within the Rail, Construction, Marine and Telecoms environments.
2.0 Company Profile
Harvey Planning Consultancy Ltd. is an International Consultancy which provides cost effective project solutions at all stages of the Design, Procurement & Construction process and is also widely known in the marine and telecoms industries.
The practice specialises in the provision of integrated management systems from initial Concept through, Design, Procurement and Construction, and so provides Clients with powerful tools to give higher visibility thus enabling informed decision making.
|H|P|C is a limited company led by Michael Harvey, Eric Warren and Phillip Elliott who are responsible for the day to day operation of the company.
Michael Harvey
A Project Management Consultant with extensive experience in Civil Engineering and Building in UK and SE Asia and is the Managing Director.
Eric Warren
A Project Management consultant with extensive qualifications and experience in Shipbuilding, heavy engineering and telecommunications.
Phillip Elliott
A Project Management Consultant specialising in commercial control, cost-planning integration and claims management / avoidance.
2.0 |H|P|C Ltd Project management structure
( This section is designed around the individual project)
3.0 |H|P|C Philosophy
"To serve the client with effective and efficient delivery of cost effective project solutions from inception, through all stages to completion"
|H|P|C is committed to the philosophy of teamwork, to achieve the highest standards, working harmoniously with the client, the designers and contractors to ensure fulfilment of the project goals and objectives.
|H|P|C also recognise that the infrastructure for transport systems comprises many disciplines, which must be integrated to produce a successful conclusion to the project.
|H|P|C's approach will bring into focus the relationships between the Client the design team and the contractors' to ensure the needs and culture is properly translated into reality by:
Mission Statement
4.0 Scope of Services
Management System
|H|P|C will adopt procedures in line with Project specific requirements by operating a management system accredited to ISO 9001; standard procedures are incorporated in |H|P|C's management manual.
Procedures
By pro-active planning of the project the objectives and fundamentals are clearly defined creating a focus for the project team.
From Inception to completion the Planning and Control are an essential part of the process creating time, resource, risk and cost efficient programmes.
Pre-engineering is a hallmark of our service, ensuring that nothing is left to chance.
The procedures covered by |H|P|C include:
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For the purpose of this example a brief summary is given (see chart) of the procedures |H|P|C find necessary in applying Cost Effective Project Solutions
| PRE-CONSTRUCTION PHASE Planning |H|P|C create an integrated suite of programmes, charts, and drawings which through they're production, logically analyses the Project sequencing and timing in order to fully pre-engineer the project. This pre-engineering philosophy is of paramount importance, in that the work undertaken during the Pre-Construction stage is simply about undertaking the already agreed plans and strategies. This pre-engineering work is fundamental in order that "nothing is left to chance" environment prevails. The process of planning a project is about teamwork and must not be seen as the sole jurisdiction of a single individual. It is vital that the whole project team contributes to, and agrees, to the planning of each stage of the project, be they Owner, Designer, Manager, Contractor or Sub-Contractor. |
| Risk Analysis/Management Risk Analysis: |H|P|C''s approach to risk analysis is to take account of the inherent uncertainties of the length or cost of individual activities when assessing the timescale and out-turn cost of the project. The risk analysis allows the project team to evaluate these critical factors and then to manage the risk in accordance with the Client's parameters. Risk Management: |H|P|C will establish within the project team a plan of immediate and continuous action to deal with the identical risks and recognise further risks which may arise during the life of the project. This stage involves the development of 'responses' to the main risks identified. Risk analysis and risk management phases often interact and link as interaction takes place. This exercise is a team effort using the tools of a workshop and review meeting formats. During this stage, the team could carry out studies such as:
In association with the pre-engineering undertaken by |H|P|C this will enable procedures to be put in place to mitigate risk by managing the process throughout. Value Management / Value Engineering Value Management: The structured approach to achieving the optimum balance of time, cost, quality and function, involving all members of the project team. Expectations of the improvement in value for adopting such procedures can range between 5-15%. Value Engineering: The application of a thought process similar to lateral thinking to ensure that all possible solutions are explored and that the best value for money solution is secured. Value Engineering can be used to introduce new ways of thinking, and thereby avoiding the logical progression to a preconceived answer. To do this, VE uses a deconstruct/reconstruct mechanism. |
Design Management/Optimal Solutions
Design Management is a vital component of our Pre-Engineering approach to achieving the Client's aspirations and objectives. Our aim is to understand the Client's detailed design objectives and through our depth of experience in the international construction arena, bring solutions to the project, which meet those specific design objectives.
Our experience enables us to solve complex interface issues requiring meticulous co-ordination between disciplines and careful design management and control.
We actively invest our efforts in exploring options through value management exercises and cost appraisals in order to bring innovative yet technically valid concepts to the forefront of the design team's considerations at an early stage, thus pre-engineering the project.
Procurement Solutions
The overall objective of the Procurement process is to achieve security of:
The actual procurement route is a fundamental decision that generally needs to be made early in the Project Development phases and has a consequential effect on all activities from thereon in. The actual selection of a suitable procurement route workshop should be held to ensure that the chosen route properly matches the Project objectives.
It has often been demonstrated that procurement by line management proves to be more effective than procurement via a remote-buying department. Line management will provide ownership and control of the process by those with excellent knowledge of the project, also maximising personal contact and technical competence thus enabling the best value to be achieved.
Engineering & Construction Solutions
|H|P|C believe that effective Engineering and Construction Solutions will be achieved through a deconstruct reconstruct process with Risk Management through Value Engineering.Identifying and taking into account the broad scope of Risk and Uncertainty inherent in the programme which provides a basis for probabilistic risk analysis.
Value Management will provide a structured approach to achieving the optimum balance of time, cost, quality and function.
|H|P|C are often requested to produce buidability reports on strategies necessary in order to achieve a 90% confidence limit of timescale and out-turn cost of the project.
|H|P|C's objectives at this stage is to achieve best value for money through:
Client's Master Programme
By adopting the Pre-Engineering processes |H|P|C will create and validate a robust Master Programme which reflects the "real world"
TENDER PHASE
Tender Strategy & Documentation
With our broad experience of tendering for international projects |H|P|C has a wealth of experience upon which to draw so as to be able to advise clients regarding appropriate tendering strategies.
To meet the clients overall objectives, which may be to adopt a fast-track approach where possible, there will be consequential implications for the tendering strategy so as to make the earliest start on the early works such as foundations. This may require separation of the work into separate packages for these early works. There will be consequential implications for the design management so as to be able to reflect this requirement in the production of the tender drawings.
The above is an example of how the overall objectives of the Master Programme can be met by identifying where possible overlaps in that programmes activities can be introduced so as to achieve the fastest delivery to the client and so earliest payback for the investment with the revenue stream flowing from the project’s commissioning
The adoption of an appropriate tender strategy can avoid the situation where tenderers are asked to accept undue risk by being given too little time to complete their tendering processes with a consequent extra cost to the client when tenderers load their tender price to cover that risk.
Master Tender List
|H|P|C will assist with the analysis of Contractors who have successfully passed through the interview appraisal and make recommendations prior to submission of tenders to the Tender Committee. |H|P|C's role will be to check compliance.
Once the Tender Committee has approved the Master Tender List, which forms the list of Contractors who will be allowed to tender for the works |H|P|C will liaise with the design team and monitor the production of tender documentation.
Tender Review
In order to achieve the best value the tender process must be seen to be tough but fair, creating an environment where Contractors are keen to partner with MTRC without adding significant sums of money to their tender prices for unclear documentation and to cover inappropriately assigned Construction risk.
The Tender documentation should make clear (Tender Documents check list) what is expected for the tender programme and from the contractor for the construction programme that will become the agreed Baseline Programme against which the Contractor’s performance on site will be evaluated. |H|P|C will provide a tender document checklist to assist the Client in ensuring the tender documents are complete and all procedures have been followed.
The Client’s preferred software should be specified to assist in the comparison of tenders, and for the monitoring of the project during the construction. With the currently available software being much easier to use than hitherto there comes the expectation that any contractor should be able to use any software nowadays (such as Primavera P3 or it’s simpler version Suretrak). For particular projects such as rail or tunnelling projects, extended in length, where progress can be expressed as progression along the length of the works Time-Chainage diagrams/programmes may be appropriate, which |H|P|C hold available in computerised form.
Tender Evaluation
|H|P|C will assist with the evaluation of all tenders in conjunction with the designers in order to determine the best value for money using the technical, commercial and human resource criteria set down in the Pre-Engineering process.
CONSTRUCTION PHASE
Performance Measurement
Performance Measurement is the Planned Progress Monitoring enabling Earned Value Analysis of the Project.
Once the Target dates and costs have been established, performance is measured to identify trends to apply timely proactive corrective action.
Planned Progress Monitoring
Measuring physical progress is the most reliable way to monitor actual progress and for comparing planned intentions with actual achievements. Without the reliability of this procedure all progress reporting is subject to abuse and misrepresentation. The method of recording physical progress should be established at a very early stage of the project.
Most programmes are presented in the form of a bar chart of activities upon which "time now" progress of the individual activities can be recorded. Traditionally this is done by blocking in the proportion of the activity bar corresponding to the portion of that activity assessed as achieved at the "time now" date.
The difficulty occurs when attempting to give a summation of the overall progress showing:
The means by which this is best achieved is to plot progress graphically using 'S' curves. Planned Progress Monitoring is a method of plotting actual progress against early start and late start.
Earned Value Analysis & Management
One of the most effective methods |H|P|C find for showing the Client the cost out-turn as measured against budget of a project is by the
utilisation of Earned Value Analysis .
Through cost-loading the activities on the agreed Baseline Programme the Contractor’s performance on site can be evaluated by
comparing the value of the physical work
that has been done with the value of the work that should have been done according to the original Baseline Programme. Actual
cost information of work performed can
be used to revise the Actual Cost at Completion.
Simultaneously this methodology gives an early warning of possible slippage of Completion Date such that corrective action can be
considered and if appropriate the
Contractor can be asked for a Recovery Programme so making possible Earned Value Management of the project
In essence then, Earned Value gives an early indication of likely outcome and points to what remedial action may be appropriate to turn around a project that is absorbing too much cost.
8.0 Computer Resources
|H|P|C employ a system of desk top computer terminals running latest release software and backed up by full colour printing & plotting
on in house hardware.
Current Software includes
| Project Management Tools Primavera P3 Suretrak Microsoft Project 98 Power Project |
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| DTP MS Publisher Photoshop Illustrator Freehand Word Excel |
Analysis MS Excel with custom written s/sheets Lotus 123 " " " " Cobra Monte Carlo for Quantitative Risk Analysis |
| Communication E – Mail - [email protected] ISDN Nos - |
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