Mutual Gains Negotiations and the PennDOT Staff Hour Estimating Guide APC Fall Seminar November...
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Transcript of Mutual Gains Negotiations and the PennDOT Staff Hour Estimating Guide APC Fall Seminar November...
ACEC/PAA C E CM ERICAN OUN CIL OF NGINEERING OMPANIES
of Pennsylvania
Mutual Gains NegotiationsMutual Gains Negotiationsand theand the
PennDOT Staff HourPennDOT Staff HourEstimating GuideEstimating Guide
APC Fall SeminarAPC Fall Seminar
November 2010November 2010
ACEC/PAA C E CM ERICAN OUN CIL OF NGINEERING OMPANIES
of Pennsylvania
BackgroundBackground
►PennDOT Paid Out $365 Million to PennDOT Paid Out $365 Million to Consultants in 2009Consultants in 2009
►Consultants Critical Component to Deliver Consultants Critical Component to Deliver $1.8+ Billion Letting Program$1.8+ Billion Letting Program
►Significant Time/Energy Spent Negotiating Significant Time/Energy Spent Negotiating ContractsContracts
►Some Negotiations Create Tension and Some Negotiations Create Tension and Mistrust and Cost TimeMistrust and Cost Time
►Modeled After FDOT Mutual Gains ProcessModeled After FDOT Mutual Gains Process
ACEC/PAA C E CM ERICAN OUN CIL OF NGINEERING OMPANIES
of Pennsylvania
Mutual Gains NegotiationsMutual Gains Negotiations
►Fair & Reasonable AgreementsFair & Reasonable Agreements
►Establish a Range of Effort for Engineering/ Establish a Range of Effort for Engineering/ Environmental TasksEnvironmental Tasks
►Range Agreed Upon by PennDOT and Range Agreed Upon by PennDOT and Consultant Task ForceConsultant Task Force
►Fosters a Sense of True PartnershipFosters a Sense of True Partnership
►Mutual Understanding of Scope, Mutual Understanding of Scope, Deliverables, Schedule, Range of Hours, Deliverables, Schedule, Range of Hours, Project ComplexityProject Complexity
ACEC/PAA C E CM ERICAN OUN CIL OF NGINEERING OMPANIES
of Pennsylvania
BenefitsBenefits
► Significant Reduction in Negotiation Significant Reduction in Negotiation TimeTime
►Mutual Focus Upon Project DeliveryMutual Focus Upon Project Delivery
► Consistent Negotiations StatewideConsistent Negotiations Statewide
►Mutual Appreciation of Each Other’s Mutual Appreciation of Each Other’s BusinessBusiness
► Fair Compensation for Project DeliveryFair Compensation for Project Delivery
ACEC/PAA C E CM ERICAN OUN CIL OF NGINEERING OMPANIES
of Pennsylvania
Current Process IssuesCurrent Process Issues
►Divergence of Opinion on Level of EffortDivergence of Opinion on Level of Effort
► Time to Get Under Agreement Time to Get Under Agreement
► Reduces Project PartneringReduces Project Partnering
► Time and Money Lost to ConstructionTime and Money Lost to Construction
►Does Not Capture Knowledge on Staff Does Not Capture Knowledge on Staff Hour Estimating (Institutional Memory Hour Estimating (Institutional Memory Loss)Loss)
ACEC/PAA C E CM ERICAN OUN CIL OF NGINEERING OMPANIES
of Pennsylvania
Cycle Time TrendsCycle Time Trends
Agreement Cycle Time: Selection– Execution
62
77
38
96
23
7
175
95
Number AgreementsDay
sDay
s
ACEC/PAA C E CM ERICAN OUN CIL OF NGINEERING OMPANIES
of Pennsylvania
Proposed New ProcessProposed New Process
►Founded on Mutual Gains PrinciplesFounded on Mutual Gains Principles
►Provides Foundation of Agreement for 80% Provides Foundation of Agreement for 80% of Projects and Tasksof Projects and Tasks
►Reduces Time From Selection to ExecutionReduces Time From Selection to Execution
►Fosters PartneringFosters Partnering
►Team Approach to Project DeliveryTeam Approach to Project Delivery
ACEC/PAA C E CM ERICAN OUN CIL OF NGINEERING OMPANIES
of Pennsylvania
Applicability of Staff Hour Applicability of Staff Hour GuideGuide
PROJECT COMPLEXITY
10%More
Simple
10%More
Complex
Applies to 80% of Project Tasks
PROJECTTASKS
ACEC/PAA C E CM ERICAN OUN CIL OF NGINEERING OMPANIES
of Pennsylvania
Expected OutcomesExpected Outcomes
► Formal Scope Clarification Upon Award of Formal Scope Clarification Upon Award of JobJob
► Mutual Agreement on Technical ProposalMutual Agreement on Technical Proposal
► Mutual Agreement on Scope, Mutual Agreement on Scope, Deliverables and ScheduleDeliverables and Schedule
► Guide Captures Institutional MemoryGuide Captures Institutional Memory
► Promotes Project PartneringPromotes Project Partnering
ACEC/PAA C E CM ERICAN OUN CIL OF NGINEERING OMPANIES
of Pennsylvania
Mutual Gains ActivitiesMutual Gains Activities
►Preliminary Engineering 95-100% √Preliminary Engineering 95-100% √
►Teams Received MGN Training √Teams Received MGN Training √
►Teams Developed Estimates √Teams Developed Estimates √
►Task Force Reviewed Estimates √Task Force Reviewed Estimates √
►Statewide Outreach Program Statewide Outreach Program (FTP/Website)(FTP/Website)
►Pilot Project and ImplementationPilot Project and Implementation
ACEC/PAA C E CM ERICAN OUN CIL OF NGINEERING OMPANIES
of Pennsylvania
Project TeamProject TeamCo-ChairsCo-Chairs
►Highway Team A: Highway Team A:
►Highway Team B:Highway Team B:
►Structures Team:Structures Team:
► Traffic Team:Traffic Team:
►Environmental Team A: Environmental Team A:
►Environmental Team B: Environmental Team B:
William Gross; HDRWilliam Gross; HDRKaren Michael; D2-0Karen Michael; D2-0
Vince Greenland; D9-0Vince Greenland; D9-0Eric Veydt; GFEric Veydt; GF
Ralph DeStefano; D9-0Ralph DeStefano; D9-0Joseph Pegnetter; ORAJoseph Pegnetter; ORA
Paul Archibald; MTPaul Archibald; MTGlenn Rowe; BHSTEGlenn Rowe; BHSTE
Mark Lombard; EQADMark Lombard; EQADRichard Shannon; MTRichard Shannon; MT
Sandy Baseshore; S&LSandy Baseshore; S&LPat Remy; D12-0Pat Remy; D12-0
ACEC/PAA C E CM ERICAN OUN CIL OF NGINEERING OMPANIES
of Pennsylvania
Staff Hour Estimating Guide Staff Hour Estimating Guide ProgressProgress
P.E. – 100% CompleteP.E. – 100% Complete
P.E. – 95% CompleteP.E. – 95% Complete
P.E. – 95% CompleteP.E. – 95% Complete
P.E. – 95% CompleteP.E. – 95% Complete
P.E. – 95% CompleteP.E. – 95% Complete
P.E. – 95% CompleteP.E. – 95% Complete
BridgeBridge
RoadwayRoadway
GeotechnicalGeotechnical
SurveySurvey
EnvironmentalEnvironmental
TrafficTraffic
ACEC/PAA C E CM ERICAN OUN CIL OF NGINEERING OMPANIES
of Pennsylvania
Proposed TimelineProposed TimelineTA
SK
S
TIME
NOV2010
DEC2010
JAN2011
FEB2011
MARCH2011
APRIL2011
MAY2011
JUN2011
JUL2011
AUG2011
SEPT2011
Pilot Project D-11Pilot Project D-11
Co-ChairsFinalize Work on P.E.
Co-ChairsFinalize Work on P.E.
StatewideRollout (P.E.)
of MGN and SHEG
StatewideRollout (P.E.)
of MGN and SHEG
Rollout SHEG for Final Design
Rollout SHEG for Final Design
D-11 / Consultant Feedback
D-11 / Consultant Feedback
FTP/Website Training Module FTP/Website Training Module
MetricsMetrics
NOV 2011
OCT2011
Co-ChairsDevelop SHEG for F.D.
Co-ChairsDevelop SHEG for F.D.
DEC2011
Update SHEG / MGN / TrainingUpdate SHEG / MGN / Training
ACEC/PAA C E CM ERICAN OUN CIL OF NGINEERING OMPANIES
of Pennsylvania
MetricsMetrics
►Before/After SurveyBefore/After Survey
►Time to Get Under Agreement Time to Get Under Agreement
►Number of SupplementsNumber of Supplements
►Time for Project DeliveryTime for Project Delivery
►Additional Input From ADEs Design and Additional Input From ADEs Design and
ConsultantsConsultants
ACEC/PAA C E CM ERICAN OUN CIL OF NGINEERING OMPANIES
of Pennsylvania
Next Steps
►Long Term Commitment By PennDOT and Consultant Community
►On-Going Improvement to Mutual Gains Process, Training and Metrics
►Biennial Updates to Staff Hour Estimating Guide
ACEC/PAA C E CM ERICAN OUN CIL OF NGINEERING OMPANIES
of Pennsylvania
Questions ?
►Gary R. Kleist PE [email protected]►Steven B. Bolt PE