APTA 2013 ANNUAL CONFERENCE: SEPTEMBER 30, 2013

BIG TRANSPORTATION INFRASTRUCTURE PROJECTS WORLDWIDE: Global Overview

Mysore L. Nagaraja, P.E.

Chairman

Introduction

The Focus of My Talk

Global Overview of Cost Overruns and Delays Experienced by Most Public Works Projects Minimizing Waste by Adopting Innovative Approaches Using 21st Century Technology

Mysore L. Nagaraja, P.E. Chairman, Spartan Solutions, LLC

Overview of Projects I Have Managed

East Side Access to Long Island Railroad Number 7 Line Extension Project Second Ave Subway South Ferry Terminal Station Lower Manhattan Rebuilding/Mobility South Ferry Terminal Station ($489 M) Fulton Street Transit Center ($845 M) State of Good Repair (SOGR) and System Improvement/Modernization Programs at MTA NYCT: Worth Approx. $30B Denver RTD Fastracks Program WMATA SOGR Procurement Review DesertXpress HSR Flushing Line Extension to West Side Transit Hub at WTC, New York

Mysore L. Nagaraja, P.E. Chairman, Spartan Solutions, LLC

Managing Mega-Projects
Step 1: Governance
Step 2: Program Organization Step 3: Project Management Plans

Step 4: Project Tools

Step 5: Project Controls Step 6: Project Delivery Options

Step 7: Effective Reporting & Integration of Risk Assessment and Risk Management from Beginning to End

Mysore L. Nagaraja, P.E. Chairman, Spartan Solutions, LLC

Managing Mega-Projects

Project Managers Around the Country and the World Are Generally Addressing These 7 Steps by Adopting Effective Management Processes and Practices

Mysore L. Nagaraja, P.E. Chairman, Spartan Solutions, LLC

Challenges?
Challenges Are Many, Including: Governance and Scope Definition Contract Packaging Size and Type of Contracts Project Delivery Methods and Limitations Lack Of Trust and Partnering
Lack of Communication, Collaboration and Cooperation Amongst Stakeholders

Management of All Stakeholders Including Funding Agencies Participants' Behaviors (Human Behavior)

Mysore L. Nagaraja, P.E. Chairman, Spartan Solutions, LLC

Causes?
In Spite of Good Management Processes and Sound Practices, Most Projects Experience Cost Overruns and Schedule Delays Original Budget/Schedules Established Prematurely Too Many Stakeholders Multiple Oversights Government Structure and Objectives Not Well Defined Bureaucracy

Legal Limitations

Mysore L. Nagaraja, P.E. Chairman, Spartan Solutions, LLC

Project Delivery Options

Project Delivery Methods Evolving for the Last 20+ Years
Design/Bid/Build: Most Traditional Around the World
80% of Projects Still Use This Most Inefficient for Mega-Projects In the 1980s, the U.S. Army Corps of Engineers Introduced "Partnering Concepts" in Construction Contracts Though Informal

Design/Build: Slowly Emerging as a Viable Option

NY State accepted this only last year!

DBOM/DBFOM/PPP: These Are Gaining Momentum

Mostly Because of Lack of Public Funds

Mysore L. Nagaraja, P.E. Chairman, Spartan Solutions, LLC

Project Delivery Options (continued) Construction Manager as Agent

Construction Manager at Risk

CM/Build

INTEGRATED Project Delivery (IPD)

IPD-Like

Mysore L. Nagaraja, P.E. Chairman, Spartan Solutions, LLC

Contracting Options
Low Bid Fixed Price (Most Traditional) RFP = 2-step Negotiated Fixed Price Negotiated GMP Fixed Price With Unit Items Fixed Price With Incentives/Disincentives

D/B With Not-to-exceed Price; Final Price To Be Negotiated After Design

PPP With Availability Payments PPP With Payments Tied To Revenue Etc., Etc.

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Mysore L. Nagaraja, P.E. Chairman, Spartan Solutions, LLC

Why Does This Industry Need Change?

Needs Are Much Greater Than What Can Be Afforded Hence, Need For Innovative, Proven and Efficient Processes and Practices!!

Paradigm Shift in the Industry Is Necessary

PPP, IPD and IPD-like Delivery Methods Utilizing 21st Century Technology Must Be Considered

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Mysore L. Nagaraja, P.E. Chairman, Spartan Solutions, LLC

Possible Solutions

Integrated Project Delivery Options

Public Private Partnerships

Enforceable and Reasonable Contracts Streamlined Oversight

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Mysore L. Nagaraja, P.E. Chairman, Spartan Solutions, LLC

Technology Enabled Integrated Project Delivery Method

All Major StakeholdersIncluding Subcontractors, Major Suppliers, Other Affected Governmental Agencies, and UtilitiesTo Be Part of the Project Team from Beginning to End 21st Century TechnologyLike BIM, Primavera, PMIS, Etc.Are Necessary Tools The Three CsCommunication, Cooperation, CollaborationAre Keys to the Legal Agreement!! All Stakeholders Will Be Held Accountable for Success or Failure!! Minimizes Changes and Increases Efficiency and Effectiveness All Legal Protections for Team Members, and for Utilizing Tax Dollars Efficiently, Can Be Built Into Agreements FOSTERS TEAMWORK AND EFFICIENCYAND RESULTS IN "WIN-WIN-WIN" Needs a Major Paradigm Shift in the Industry Savings Applied to Much Needed Infrastructure Improvements in All Regions

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Mysore L. Nagaraja, P.E. Chairman, Spartan Solutions, LLC

Keys to Successful Project Management

And Communication Cooperation Collaboration

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Mysore L. Nagaraja, P.E. Chairman, Spartan Solutions, LLC

THANK YOU! QUESTIONS?

Mysore L. Nagaraja, P.E.
Chairman