The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management...

70
The Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer Consulting Services, LLC Chris Carson, FAACE, PSP, DRMP, CEP, CCM, PMP Director of Program Controls ARCADIS U.S., Inc.

Transcript of The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management...

Page 1: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

The Ten Best Project Management Approaches To Avoid Claims On Your 

ProjectGlen R. Palmer, PSP, 

CFCCOwner

GR Palmer Consulting Services, LLC

Chris Carson, FAACE, PSP, DRMP, CEP, CCM, PMPDirector of Program Controls

ARCADIS U.S., Inc.

Page 2: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

2

Glen Palmer, PSP, CFCC

• Owner, GR Palmer Consulting Services, LLC• Certifications: 

– PSP (Planning & Scheduling Professional ) – AACE International– CFCC (Certified Forensic Claims Consultant) – AACE International

• University of Maine, BS, 1976• Professional Field: Glen Palmer has over 35 years of experience working on engineering and 

construction projects. He spent more than 20 years working for two major engineering and construction companies where he held positions as Project Controls Manager and Corporate Head of Planning and Scheduling. More recently, he spent five years with a major risk management and dispute resolution firm in the role of Vice President of Power. He has experience in power, commercial, infrastructure, and process projects throughout the United States and internationally. He has extensive experience in estimating, cost control, planning & scheduling, and project management covering all project phases. He has been an expert witness on disputes

• Association Involvement– Active in PMI and the PMI College of Scheduling/ Scheduling Community of Practice– Active in AACE (Association for the Advancement of Cost Engineering)

Page 3: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

3

Chris Carson, FAACE, CCM, PMP, PSP, DRMP, CEP

• Director of Program Controls, ARCADIS U.S., Inc. • Certifications: 

– Fellow AACE International, 2013– DRMP (Decision & Risk Management Professional ) – AACE International– PSP (Planning & Scheduling Professional ) – AACE International– CEP (Cost Estimating Professional) – AACE International– CCM (Certified Construction Manager) ‐ CMAA– PMP (Project Management Professional)  – PMI

• University of Virginia, Mechanical Engineering, 1972• Professional Field: 41 years of experience in CM and CM Services specializing in Planning and 

Scheduling, Cost Management, Risk Management , Forensic Analysis, Dispute Resolution• Awards

– Selected as a 2014 Fellow of Project Controls by the Guild of Project Controls  (at Planning Planet)– Selected as a 2013 AACE Fellow by AACE International, in “recognition of professional attainment and 

significant accomplishment in cost management or cost engineering”– Recipient of the 2011 AACE International “Technical Excellence Award”– Received the award for “Significant Contributions to The Scheduling Industry” from PMI (Project 

Management Association of America) College of Scheduling, 2009– Awarded first CMAA “Chairman’s Award” for contributions to CMAA and the Construction Management 

profession, 2006• Other Associations

– Active in PMI and the PMI College of Scheduling/ Scheduling Community of Practice– Active in CMAA (Construction Management Association of America)– Active in AACE (Association for the Advancement of Cost Engineering)– Active in Planning Planet & International Guild of Project Controls– Member of College of Performance Management– Qualified as a Senior Professional to pursue MRICS QS status by RICS

Page 4: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Background

• The authors, with experience of over 75 years, have been involved with lots of claims.

• The term “Claims Avoidance” is an often used phrase that is almost impossible to achieve unless all of your contracts / subcontracts are “time and material.” 

• We have seen contractors file claims with little or no basis (entitlement) or submit faulty analyses for claims.

• What we are really trying to achieve is to avoid claims or at least put ourselves in the “best position” for when the claims arise.

Page 5: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #10

• Prepare And Use A Schedule Specification

Page 6: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #10

• Prepare And Use A Schedule Specification

Issues

All Project Team members (Client, GC, Subcontractors & Vendors) need to provide adequate scheduling detail (including resources) timely

The use of Constraints needs to be controlled

A Critical Path needs to be generated and analyzed

Schedules need to be monitored against an approved baseline

Page 7: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #10

• Prepare And Use A Schedule Specification

Important Specification Points:

Level of Detail (maximum activity durations)

Use of Constraints

Open Ends (high float)

Critical Path Determination (let the network determine CP)

Resources (PC, engineering & construction)

Page 8: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #10

• Prepare And Use A Schedule Specification

Important Specification Points:

Monitoring Baseline

Use of LOE Activities

Archiving Schedules

Update Frequency

Content ‐ Engineering, Procurement , & Construction

Page 9: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #10

• Prepare And Use A Schedule Specification

Advice

Be Specific! If you don’t tell the Contractors / Subcontractors on your project how you want the scheduling process to work, they will tell you how much extra it will cost you to make it work correctly!!

Page 10: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #10

Page 11: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #9

• Monitor Procurement

Page 12: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #9

• Monitor Procurement

Issues

Schedule networks without procurement calculate improperly

Failure to identify procurement or lead time problems early

Procurement problems show up in delay claims

Procurement issues falsely blamed on the Owner 

Approved as Noted may include scope changes

Suppliers/fabricators & “squeaky‐wheel” concept; fabrication schedules get bumped by more persistent contractors

Page 13: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #9

• Monitor Procurement

Important Points

Submittal and approval activities are often the source of delay

Early delays are often due to incomplete or inaccurate plans concurrent with failure to award subcontracts

Procurement activity path has multiple delay risks: Failure to submit or incomplete submittal Review and approval   Approved as Noted requiring changed conditions work Fabrication or lead time slippage

Page 14: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #9

• Monitor Procurement

Advice

Include complete path of procurement activities in network

Perform constructability reviews – reduce bad plans

Quickly reject incomplete submittal – document rejection

Monitor Remaining Duration on Lead or Fabrication Time activities – do not rely on RD calculated by OD minus AD

Page 15: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #9

Delbert Bearden has an RP out for “Tracking the Procurement Process”

Page 16: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #8

• Perform A Technical Review of All Contractor / Subcontractor Schedules

Page 17: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #8

• Perform A Technical Review of All Contractor / Subcontractor Schedules

• Issues

– Ensure that the schedules submitted conform to the scheduling specification

– Ensure that all schedule input is based on adequate planning

– Ensure that the Contractor / Subcontractor has dedicated scheduling personnel of adequate experience

Page 18: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #8

• Perform A Technical Review of All Contractor / Subcontractor  Schedules

• Your team needs to review each contractor / subcontractor  schedule:

– Have an in‐house review session and evaluate the electronic version of each schedule with respect to the schedule specification

– Meet with each contractor  / subcontractor  and discuss their plan in detail and discuss all comments with action items

– Get a commitment from the Contractor/Subcontractor  on dedicated scheduling personnel of adequate experience

Page 19: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #8

• Perform A Technical Review of All Contractor / Subcontractor Schedules

• Advice

– You need to make the Contractor / Subcontractor prepare a well thought out (reliable) schedule or the project will quickly become “out of control” 

Page 20: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #8

Page 21: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #7

• Resource Plan

Page 22: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #7

• Resource Plan

Issues

Inefficiency shows up first in job costs

Insufficient resources cause delay

Inefficient resources cause disruption

Poor early resource planning can cause late resource stacking

Page 23: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #7

• Resource Plan

Important Points

Durations are product of quantity and productivity

Productivity is a function of resource efficiency

Insufficient resources cause delay

Inefficient resources cause disruption

Poor early resource planning can cause late resource stacking

Page 24: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #7

• Resources are factor in claims, inefficient near end when stacked

Manpower

Page 25: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #7

Page 26: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #7

• Resource Plan

Advice 

Insufficient resources problem

Require resource plan from contractor

Track actual resources & compare to plan

Monitor re‐planning efforts – resources needed increase

Page 27: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #7

• Resource Plan

Advice 

Concurrent resource under‐allocation

Crew load schedule; run early and late date resource tables

Discuss crew loading with contractor to ensure a reasonable flow of resources through the project

Page 28: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #7

• Resource Plan

Page 29: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #6

• Perform Comprehensive Bid Evaluations

Page 30: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #6

• Perform Comprehensive Bid Evaluations

Issues

Determine that the Schedule dates are achievable with adequate float prior to bidding

Evaluate Risks prior to bidding

Perform a evaluation on customs issues for international projects

Evaluate  area  craft  availability 

Page 31: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #6

• Perform Comprehensive Bid Evaluations

Important Evaluations:

Schedule Completion Achievability (End date ‐ Owner’s business model) 

Liquidated Damages (Schedule)

Liquidated Damages (Performance)

Craft Availability

In‐house Resource Availability (PC, engineering & construction staffing)

Page 32: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #6

• Perform Comprehensive Bid Evaluations

Important Evaluations:

Risks

Weather

Customs

Long Lead Equipment Availability

Cash Flow

Page 33: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #6

• Perform Comprehensive Bid Evaluations

Advice

Do not minimize the effort required to take on a lump sum project and do so without losing your shirt!

There are jobs that you do not want to win!!

Page 34: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #6

• Perform Comprehensive Bid Evaluations

Page 35: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #5

• Generate Timely Responses to TIAs (Time Impact Analyses)

Page 36: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #5

• Generate Timely Responses to TIAs (Time Impact Analyses)

Issues

Too many TIAs are done improperly, creating false sense of entitlement

Poor TIAs make it harder to resolve timely

Lingering TIA requests ruin relationships & turn into claims

The longer a TIA stands unchallenged, the higher up it goes in the GC management, and builds credibility inside GC office.  When it hits the bookkeeping system (bank/bonding co.), it won’t be resolved easily

Page 37: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #5

• Generate Timely Responses to TIAs (Time Impact Analyses)

Important Points

Unabsorbed delays require prospective TIAs, absorbed delays require a forensic technique

TIAs require schedule that provides a good contemporaneous model of the field plan 

TIAs require a recent schedule update, should not use an older schedule or the baseline (unless CP is unchanged)

Page 38: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Most Common Causes for Disputes

(“Global Construction Disputes 2014 – Getting the Basics Right”, ARCADIS)

Page 39: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #5

• Generate Timely Responses to TIAs (Time Impact Analyses)

Advice

Use a clear scheduling specification for TIAs

Require distinction between absorbed and unabsorbed delays 

Require adherence to AACE documents: RP No. 29R‐03, “Forensic Schedule Analysis” for absorbed delays RP No. 52R‐06, “Time Impact Analysis” for unabsorbed delays

Perform independent Engineer’s TIA & award unilateral time

Page 40: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #5

• Generate Timely Responses to TIAs (Time Impact Analyses)

Page 41: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #4

• Perform A Monthly Delay Analysis

Page 42: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #4

• Perform A Monthly Delay Analysis

Issues

Determine delays and delay responsibility during the project execution

P6 makes this very expensive to perform after the fact

Project team turnover can be detrimental to this effort

Page 43: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #4

• Perform A Monthly Delay Analysis

Best reasons to do this:

Determine delays and reasons for delay while the facts are fresh in everyone’s mind

This approach gets the analysis results into the Project records

If you wait and do this at the end of the project (like everyone else does) when the project team has moved on to  different  projects, it is very difficult to get all of the important facts for causation

Page 44: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #4

• Perform A Monthly Delay Analysis

Best reasons to do this:

P6 used in the Enterprise approach makes it very difficult to get the same activity “start dates” and “completion dates” when Project files are restored to a Claims expert’s stand alone computer – causing a substantial validation effort 

Waiting until the project is over to determine delays and causation can cost several hundred thousand dollars

Page 45: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #4

• Perform A Monthly Delay Analysis

Advice

Perform this analysis monthly even if you need to get outside expertise to do so

Page 46: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #4

• Perform A Monthly Delay Analysis

Page 47: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #3

• Perform A Constructability Review

Page 48: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #3

• Perform A Constructability Review

Issues

Incomplete or inaccurate drawings common problem

Some A/Es do not have construction experience

Mistakes on drawings create concurrent delay with early contractor problems

Just choice of non‐local techniques can be a problem

Page 49: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #3

• Perform A Constructability Review

Studies

Risk Assessment and Best Practices, Pinnell‐Busch, Inc. 2005

Page 50: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

“Managing Uncertainty & Expectations in Building Design & Construction”, Smart Market Report ‐McGraw Hill Construction, 2014

• Uncertainty

Causes of Uncertainty

Page 51: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #3

• Perform A Constructability Review

Important Points

Sometimes design is completed in the shop drawing phase

Not all A/Es have construction experience

Design is very different from construction – need construction experience for great drawings

Biddability can be as important as constructability

Page 52: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #3

• Perform A Constructability Review

Advice

Constructability review evolve from Value Engineering Schematic and conceptual design

Constructability reviews at appropriate stages Aligned with design phases35% drawings75% drawings90% drawings (most recommendations cannot be taken)

Page 53: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Relationship of Time and Change

From CMAA Standards of Practice

Page 54: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Project Example

• Route 17, Dominion Boulevard, Chesapeake, VA

CM Design Phase Services: Modified Phasing Reduced Earthwork Resolved Utility Conflicts Improved sequencing/MOT Saved Time & Cost

Return on Investment of 25:1

Page 55: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #3

• Perform A Constructability Review

Page 56: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #2

• Develop A Real Risk Management Program

Page 57: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #2

• Develop A Real Risk Management Program

Issues

Complex projects need this expertise involved in the bid process / contracting process

A real risk management program is not a risk register or a risk checklist

A complex lump sum project needs a full time risk manager

Page 58: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #2

• Develop A Real Risk Management Program

Important considerations

Every contract has to be set up to work for you and requires a risk expert during those contracting processes

Risk Management is not a process that can take place once a month, it has to occur every day on a complex project and requires an expert to manage the risks

Risk Management is not just a computer program applied to a project’s cost or schedule

Page 59: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #2

• Develop A Real Risk Management Program

Important considerations

A risk management program is not just a check list or a risk register, it is a process of “brainstorming” to identify risks and determining the correct areas where money and resources have to be expended to manage those risks (Risk Mitigation Actions)

These actions should be identified in the project documents (monthly reports, schedule, etc.)

Page 60: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #2

• Develop A Real Risk Management Program

Advice

Spend the money to manage risk!

Page 61: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #2

• Develop A Real Risk Management Program

Page 62: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #1

• Documentation, Documentation, Documentation (Pictures)

Page 63: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #1

• Documentation, Documentation, Documentation (Pictures)

Issues

Contemporaneous records are the strongest support for a position

Research later into project records is never great

A big problem with delay and disruption claims is lack of documentation support

Page 64: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #1

• Documentation, Documentation, Documentation (Pictures)

Important Points

Causation, not correlation, wins the argument

Learn to identify symptoms of delay/disruption

Use lessons learned from dispute and claims resolution 

Page 65: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #1

• Documentation, Documentation, Documentation (Pictures)

Advice for delay

Critical Path analysis

Remember that causal activities in schedule don’t tell the whole story 

In claims, research is the larger task – issues drive causal activities

Research is only as good as the documents – contemporaneous exploration is better than research

Page 66: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #1

• Documentation, Documentation, Documentation (Pictures)

Advice for disruption (inefficiency, acceleration)

Baseline productivity information Measured Mile information Daily resource confirmation Performance tracking Daily coordination Photographs, videos of daily conditions

Page 67: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #1

• Documentation, Documentation, Documentation (Pictures)

Advice for disruption ‐ Performance tracking

Daily production reports Specific activities, associated labor force and hours, installation quantities, 

Assignment, re‐assignment, idle time observations Daily task assignments: when, where, why and how long? Daily re‐sequencing efforts Separate productive from non‐productive time

Page 68: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Claim Avoidance Approach #1

• Documentation, Documentation, Documentation (Pictures)

Advice for disruption ‐ Performance tracking

Daily production reports Specific activities, associated labor force and hours, installation quantities, 

Assignment, re‐assignment, idle time observations Daily task assignments: when, where, why and how long? Daily re‐sequencing efforts Separate productive from non‐productive time

Page 69: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

Summary

10. Prepare and Use a Scheduling Specification9. Monitor Procurement8. Perform a Technical Review of All 

Contractor/Subcontractor Schedules7. Resource Plan6. Perform A Monthly Delay Analysis5. Generate Timely Responses to TIAs4. Perform Comprehensive Bid Evaluations3. Perform a Constructability Review2. Develop a Real Risk Management Program1. Documentation, Documentation, Documentation

Page 70: The Ten Best Project Management Approaches To Avoid · PDF fileThe Ten Best Project Management Approaches To Avoid Claims On Your Project Glen R. Palmer, PSP, CFCC Owner GR Palmer

The Ten Best Project Management Approaches To Avoid Claims On Your Project

Glen R. Palmer, PSP, CFCCGR Palmer Consulting Services, LLC

Mobile Ph.: 603‐591‐6754  E‐mail: [email protected]

www.gpalmer.com

Chris Carson, FAACE, PSP, DRMP, CEP ARCADIS U.S., Inc.

Mobile Ph.: 757‐342‐5524E‐mail: chris.carson@arcadis‐us.com

www.arcadis‐us.com