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Construction Management Performance

Readiness Assessment for Managing Large Projects


January 2008

Contents
The Construction Management Landscape is difficult and getting worse
Construction costs continue to escalate
Global construction activities increasing, fuel continued demand-driven cost increases
Competition for key construction resources (e.g., project managers, heavy equipment, etc.) to
complicate domestic / U.S. power projects
Compressed project schedules as owners wait for environmental picture to crystallize
Construction Management Tables Have Turned
Owners held the trump card previously when construction and supplier over-capacity was rampant;
now contractors and suppliers have the leverage
Building (or Rebuilding) Construction Management Skills
Owners need to build (or rebuild) a number of construction management skills, both organizational and
individual, to succeed in the new environment
How ScottMadden Can Help You

1
Copyright 2008 by ScottMadden. All rights reserved.

The Construction Management Landscape

The Construction Management Landscape

Construction Costs Going Through the Roof


Worldwide Economic Growth Stimulates
Construction Inflation

Skilled Labor Vital to Construction


Is More Costly, As Well

What Does This Mean for Utilities?

The world economy continues to grow at a brisk


pace, led by China. This growth has sparked a
significant run-up in construction inputs, both for
commodities and equipment like transformers and
turbines

Labor scarcity, especially skilled workers, will likely


drive up labor costs long-term, as firms increase
wage rates to attract candidates to the construction
trades. Indeed, skilled labor supply and demand
curves crossed in April 2007

The cost increases are impacting all infrastructure


projectsgeneration-, transmission-, or distributionrelatedand they will impact utilities in direct and
indirect ways. For example, rising copper prices will
increase T&D cable costs

Oil price increases have impacted materials


transportation costs as well as inflation. Crude oil
domestic prices during 2005-06 were on par in real
terms with their highest levels in the late 1970s and
early 1980s

From January 2000 through January 2007, the


Skilled Labor Index increased at a 4.1% CAGR; this
rate was 4.8% between 2003 and 2007

This creates sizeable challenges for utilities.


Infrastructure spending must continue. U.S. electric
utility net plant is over $700 billion today, and CERA
projects that $800 billion needs to be invested in the
North American power industry over the next 15 years
(excluding potential CO2 reduction-related capex). With
a current market capitalization of just over $500 billion,
investor-owned electric utilities have not faced this level
of investment in 30 years

While less dramatic than materials cost increases,


labor wage inflation contributes significantly to
construction cost increases, given labors cost as a
percentage of total energy and utilities construction
costs

From January 2000 through January 2007, the


Material Price Index increased at a 2.3% CAGR;
prices decreased from 2000 to 2003 but have since
escalated at 6.8% per year

Shop and fabrication costs have increased as well,


compounding this problem

The United States is also hampered by lower


currency valuation, so imported goods are now more
expensive across the board

This spending will likely be in steadily increasing


increments rather than a quick peak with an abrupt falloff
Rate cases, which had been dormant for years, might
proliferate. There is some risk of 1970s-style rate case
pancaking if the environment is significantly inflationary

Manufactured equipment prices have risen


dramatically in 2005 and 2006. Estimated price
escalations for major power plant components were
13.0% in 2006 and 9.3% in 2005

Long-term interest rates have


remained relatively stable

6%

U.S. Treasury Yield Curve


(Recent and 6-Months, One Year & Three Years
Ago)

But commodity prices


have spiked in recent years

And infrastructure equipment


prices have increased

Selected Materials Prices vs.


General Inflation (Index: 1997=100)

Annual Price Increase


for Selected Equipment (By Year)

300

80%

Copper

Yield (%)

5%
4%
3%
2%
1%
0%

Current
6 Months Ago
1 Year Ago
3 Years Ago
Source: SNL Financial

Relative Prives (vs. 1997)

275

Source: Edison Foundation

70%

250

2003

2004

2005

Compressor
& Drivers

Structural
Steel

2006

60%

225

50%

200

Steel mill
products

175
150

Cement

125

30%
20%

100

GDP Deflator

75

50
3 Month 6 Month 1 Year 2 Year T 3 Year T 5 Year T 10 Year 30 Year
1997
1998
1999
2000
Note
Note
Note
T Note T Bond
Bill
T Bill
T Bill
(BEY) (BEY) (BEY)
Sources: The World Bank; Edison Foundation; The Keystone Center; U.S. Geological Survey; SNL Financial;
U.S. Bureau of Labor Statistics; U.S. Bureau of Economic Analysis; EIA; The New York Times; Platts Electric Utility Week (Feb. 19, 2007)
(citing CERA)

40%

10%

Sources: BLS; Edison Foundation

0%
2001

2002

2003

2004

2005

2006

Columns,
Vessels

Line Pipe

Exchangers Switchgear

Pumps &
Drivers

Other
Equipment

3
Copyright 2008 by ScottMadden. All rights reserved.

The Construction Management Landscape

Global Construction Activities Increasing


Many industries across the globe are increasing construction activities, creating demand on labor, heavy
equipment, logistics, engineered components, and commodities

Similar projects have been canceled or delayed due to rising


costs, labor shortages, and equipment delays

Seventeen expansion projects were planned in the U.S. from


late 2006 through the year 2010

Maintenance projects were pushed backed due to delays of ordered


equipment and the availability of construction contractors said
Chevron Corp. spokeswoman Stephanie Price and there were labor
shortages as skilled workers flocked to the Gulf Coast to work on
repairs on facilities there. This created a backlog that continues
today.2
New nuclear constructions is ongoing in Europe, looks likely in U.K.
and France, and is being considered in the Netherlands and Canada
while India and China have some of the worlds most robust
construction programs3
China added 102 GW of capacity in 2006 and is expected to more
than double that capacity by 20204

Many U.S. power generators are re-evaluating plans to build new


generation as a result of estimated construction cost increases

Limited resources worldwide to provide equipment for nuclear


construction programs

GDP Deflator

170
160
150
140
130
120
110
100
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Construction
Price
Hikes
ConstructionEquipment
Equipment
Price
Hikes
7%

6.9%

6%
5%
4%
3.7%

3%

Construction Equipment Manufacturers

Craft Labor

Year

Common Labor

180

Power Generation

Labor for Heavy Construction and Reinforced Concrete

Source: The Brattle Group

Oil refiners are continuing to roll out plans for expansions and
upgrades 1

Overseas heavy equipment sales by Caterpillar rose 35% in Europe,


the Middle East and Africa and rose 23% in the Asia/Pacific region
Both Komatsu and Hitachi experienced a sales decline in North
America and noted that demand grew in Europe & CIS, China, Asia &
Oceania, and the Middle East & Africa

2%
1%
0%

3.2%
2.5%

2.3%
1.4%

0.9%

0.2%

1.5%

1.3%

Source: Bureau of Labor Statistics CPI Data

National
Average
Labor
Cost
Index
National
Average
Labor
Cost
Index

Petroleum Industry

Index (1991 = 100)

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Note: Year-to-year percent change for August

1. Upgrade Plans Flow While Oil Prices Ebb, ENR, October 2, 2006 by Thomas Armistead with Beth Evans
2. Refineries Summer Break, The Wall Street Journal Online, June 26, 2007
3. New Realities Bring About a Construction Climate Change, ENR, September 18, 2006 by Thomas Armistead with Peter
Reina and Dan OReilly
4. Costs Hit Coal Building Plans, February 2007, Power Engineering by Amethyst Cavallaro

4
Copyright 2008 by ScottMadden. All rights reserved.

The Construction Management Landscape

Competition for Key Construction Resources


Demand is not just raising prices, it is making projects harder to start and complete on-time with
implications on budgets
Current and future environment

Construction productivity is declining, in part due to the


scarcity of skilled labor

Contractors are experiencing:1

Opportunity to focus on projects where expertise


is possessed, owners are reliable and a
reasonable return can be expected

Margins are on the rise with fewer fly-by-night


contractors low-balling on bids

65000

Source: The Brattle Group

Amount (Millions of $)

55000
50000
45000
40000
35000
30000

Source: The Brattle Group

0.2
0

Freedom to turn down contracts with onerous


terms or simply walk away

Difficulty in finding and retaining skilled and


competent workers in trades and management

Material and equipment cost estimates are higher than


original project plans due to strong demand and low supply

National
Utility
Infrastructure
Indices
National
Utility
Infrastructure
Cost Cost
Indices
Total Plant-All Steam Generation

Gas Turbogenerators

GDP Deflator

Transmission

Distribution

190
180

Source: The Brattle Group

Annual
Backlog
at Major
Firms
Annual
Backlog
at Major
EPCEPC
Firms
60000

0.4

alv
es

0.6

lV

More delays (start and ongoing) are due to labor and skill
availability constraints (management, engineers, craft
levels)

Co
ntr
o

1
0.8

rs

Co
mp
re
ss
or
Pu
s
mp
s(
ex
cl.
LN
G)
Co
ntr
ol
Va
lve
s

Re
ac
tor
s

Ve
ss
els

ns
Co
lum

Ex
ch
an
ge
rs

Ai
r

Co
La
ole
rg
eM
rs
oto
rs
(>
50
0H
P)

Higher fuel prices increase material extraction/production


and transportation costs

Pu
mp
s

20

1.2

ns
/V
es
se
ls

40

Longer lead times for materials and scheduling work

Anticipated 2006 Shop Load

1.4

lum

60

Current Shop Load

Co

Weeks

80

Equipment availability, e.g., cranes, limited to none

oo
le

100

2004 Shop Load

rs

Source: The Brattle Group

120

Shop Capacity

Growing backlog of project contracts at large EPCs

Ex
ch
an
ge

2006

Ai
rC

2005

170
Index (1991 = 100)

2004

Mo
tor
s

Delivery
Schedules
Delivery
Schedules

160
150
140
130
120
110
100

25000
2002

2003

2004

2005

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

2006

Year

Year

Compressed
CompressedProject
ProjectSchedules
Schedulesare
arethe
theResult
Result
1. From The Top 400 Contractors, Prosperity Allows Firms to be More Selective, ENR, September 24, 2007 by Gary
Tulacz

5
Copyright 2008 by ScottMadden. All rights reserved.

Construction Management Tables Have Reversed

Construction Management Tables Have Reversed

Project Management Stages and Definitions


Development

Creation of
scope-level
design for
planning and
estimating
Information
structure [for
work
management,
scheduling and
cost systems]
prepared

Development
of project PEP

Contract
strategy (make
versus buy)
development

Design

Detailed
engineering
design
development

Long lead time


materials
ordering

Contract
specifications
development

Scheduling

Execution

Planning and
materials supply

Implementation/
installation

Assessing
(detailed
estimate
information
inputted into
work
management
and scheduling
systems)

Permitting

Work
performance
monitoring

Work
management/
schedule and cost
monitoring

Completion of
work package

Weekly progress
status reporting

Short lead time


materials
ordering

Construction
check and testing

Development of
operations and
maintenance
documentation

Outage planning
interface

Commission

Certification and
testing of
equipment
operability

Operations and
maintenance
documentation
delivery

CloseClose-Out

System punchlist items closedout

Design drawings
updated with
field changes

Documentation
closed-out

Initial training
completion

7
Copyright 2008 by ScottMadden. All rights reserved.

Construction Management Tables Have Reversed

Risks of Project Schedule Compression


Pressure to start later and end sooner affects every stage of large capital project development
Project Life Cycle
Pressure
Pressureto
to
Start
Later
Start Later

ent
opm
l
e
v
De

Des
ign

on
c ut i
Exe

Scheduling

Com
miss
i on

Engineering
design delays
Fabricator /
equipment
supplier queues
lengthening
Acquisition of
labor

Pressureto
to
Pressure
Finish
Finish
Sooner
Sooner

Out
Close-

Competitive markets
Cash flow
Low reserve margins

Underestimated costs
Lack of commissioning
Adverse impacts on
and under funded
time and plans
other projects
project
Delayed
Inadequate contract
Delayed start-up
permitting
specifications
Missing or incorrect
documentation
Incomplete designs and
design documentation

Risks
Schedule
ScheduleCompression
CompressionEscalates
EscalatesEvery
EveryProject
ProjectRisk
Risk

8
Copyright 2008 by ScottMadden. All rights reserved.

Building (or Rebuilding) Construction Management Skills

The Need to Refocus on Construction Management Skills


Large capital projects have always been extremely complex and difficult to manage. Emerging conditions have
increased the complexity through price escalations, lack of key construction management skills and schedule
compression.
Construction management governance, through its eight key skills, provides the foundation for managing
construction project risk well.
Project
Management
Regulatory
Management

Financial
Management

Stakeholder
Management

Work
Management

Performance
Drivers

Quality
Management

Workforce
Performance
Management

Process
Management

10
Copyright 2008 by ScottMadden. All rights reserved.

Building (or Rebuilding) Construction Management Skills

Construction Management Governance Initial Focus


To address the challenges and mitigate risk exposure, companies should initially focus on rebuilding (or
building) construction management skills in five areas

Permitting and licensing

Public accountability reporting

Regulatory filing management

Regulatory requirements
management

Planning and scheduling

Engineering and design

Scope management

Job estimating

Project controls

Work package development

Decision making

Sourcing

Materials management and


logistics

Project
Management

Regulatory
Management

Project scoping

Project financing

Budgeting

Project financial reporting

Project approval hold points

Financial
Management

Work
Management

Workforce
Performance
Management

Performance
Drivers

Stakeholder
Management

Quality
Management

Staffing

Productivity management

Overtime management

Contract management

Work rule management

Skills training

Skills / job matching

Safety

Process
Management

Work continuity

Work method development

Environmental management

Standardization

Project performance auditing

Procedure management

Schedule variance monitoring

Process measurement

Work quality monitoring

Knowledge management

Equity partner interface

Intervener management

Governmental relations

Community relations

11
Copyright 2008 by ScottMadden. All rights reserved.

Building (or Rebuilding) Construction Management Skills

Construction Management Governance Approaches


There are three broad approaches to construction management governance
Informal Style and Processes

Limited Process Models

MarketMarket-Based Approaches

Description

Relies heavily on consensus


Includes few sub-processes to
integrate enterprise considerations
Relies on perceptions, less
empirically-driven
Invites active and broad owner
involvement
Emphasizes project cost and schedule
performance project focus (i.e.,
tactical)
Exhibits low to moderate capability of
decision tool infrastructure

Relies on formal communication,


review and decision processes
Incorporates multi business unit
process dimensions to integrate
enterprise considerations
Uses project requirements to drive
fact-based decisions
Focuses on owner key issues
Emphasizes overall project and
business management program
focus (i.e., tactical-strategic)
Exhibits moderate to high capability
of decision tool infrastructure

Relies on formal management


processes defined by Board and
CEO
Addresses enterprise process
needs comprehensively
Uses business objectives to drive
decision making
Implements rigorous processes to
increase owner comfort levels
Emphasizes business, financial,
human capital and operations
management enterprise focus
(i.e., strategic)
Exhibits high-capability of
decision tool infrastructure

Key Practices

Reliance by owners on third parties to


define requirements
Group decision-making predominates
Decisions driven by project needs and
progress
Decision making is less factor- or
empirics-based
Prevalence of bid-buy practices with
some incentive-based contracting

Owners collaborate with suppliers to


define requirements and protocols
Decisions reflect project economics
Decision-making based on selected
fundamentals
Appearance of alliance and
partnership arrangements

Owners define and drive


decisions and reporting
Decisions grounded in enterprise
value
Decision-making driven by
information over dialogue
Sophisticated use of a full range
of contracting options

Relevance

When business scope is narrow


With a small, tight management group
When strong buyer-power market
conditions exist

When business scale is expanding


With need to preserve owner
interests
When buyer-supplier market
conditions are balanced

When business complexity is


demanding
With increased business
management goal diversity
If balanced and strong buyersupplier power market conditions
exist

12
Copyright 2008 by ScottMadden. All rights reserved.

Building (or Rebuilding) Construction Management Skills

Impact on Execution of Planning


Preliminary planning enables downstream project activities
Project spend lags initial planning and engineering
The greatest impacts on project success are developed during project planning and detailed engineering phases

100%

100%

80%

80%

% of Total Cost

Costs committed by planning and


design decisions

Spend

0%
Planning

Detailed
Engineering

Procurement

Construction

Project Activities

Source: Construction Industry Institute

13
Copyright 2008 by ScottMadden. All rights reserved.

Building (or Rebuilding) Construction Management Skills

Best Practices in Project Management


Effective governance practices establish the foundation for realizing the benefits of project management
best practices namely cost leadership and process efficiency, according to the Construction Industry
Institute
Best Practice
Use vs. Quartile
Performance
Best Practice
Use versus
Quartile

Performance

Best Practice Value

Best Practice Value

High
Impact
Design /
Information
Technology

Zero Accident
Technique
Project
Performance

Schedule
Reduction
Medium
Impact

Pre-Project
Planning

Project
Change
Management

Team Building
Planning for
Startup
Constructability
Materials
Management

Low
Impact
4th Quartile
Low

Mean Performance Score


Source: Construction Industry Institute

3rd Quartile

2nd Quartile

Best Practice
Use

1st Quartile

Low
Impact

High

Medium
Impact
Cost Savings

Low
High
Impact
Impact

14
Copyright 2008 by ScottMadden. All rights reserved.

Building (or Rebuilding) Construction Management Skills

Project Management Approaches


There are several broad project management approaches in use today
Project Management Body of Knowledge (PMBOK)
Classic construction methodology, with centralized CPM scheduling and PMO-driven project management
Production driven centrally through schedule adherence, tight work package preparation and strong push drivers for process efficiencies
Speed of execution through efficient functional execution is the primary project throughput driver
PMBOK methodology driven by optimizing performance along each element of the activity chain
PMBOK is the most prevalent project management methodology in industry today

Constructability
Up-front decisions have the most significant impact on downstream activities
All upstream events (e.g., design, engineering, etc.) must be executed around construction and commissioning requirements
>15% overall project cost and schedule improvements common with constructability implementation
Applications of constructability implementation typically include severe-duty projects such as oil pipelines, power plant construction, shale-oil
refinery construction, etc.

Stage Gating
Stage gating is used to control major project segments with approval to proceed to subsequent stages contingent on meeting each stages
preset objectives
Stage gating technique is being pursued in some regions as a regulatory management tool
Large projects employing stage gating also have seen >15 % project improvements with severe-duty construction efforts (e.g., Suncor at
Alberta refinery construction) benefiting from this technique

Lean Construction
Lean construction is the adoption of the lean manufacturing technique pioneered by Toyota and Honda
The key to lean construction is the decentralization of planning and decision making, managing for process, not speed, and the minimization
of process waste through ruthless standardization
Constructability concepts of feed-forward process input are also included in lean construction
Elimination of process variance within this methodology has seen >15% cost and schedule improvements in large projects such as airport
design and construction
15
Copyright 2008 by ScottMadden. All rights reserved.

Building (or Rebuilding) Construction Management Skills

Success Criteria and Decision Drivers


Regardless of the project management approach selected, the success criteria and levers available to
construction project managers remain the same

QUALITY

SAFETY
COST

SCHEDULE

Decision Drivers

Contract
Contract
Management
Management

Procurement
Procurement
Management
Management

Project
Project
Execution
Execution

Project
ProjectRisk
Risk
Management
Management

16
Copyright 2008 by ScottMadden. All rights reserved.

Building (or Rebuilding) Construction Management Skills

Project Management Leading Practices


Each of the decision drivers has specific leading practices associated with it. Examples include:
Project Execution

Procurement Management

Project management process is clearly defined


with procedures and communicated as the
expected process to complete project work

Appropriate hedging tools used to minimize


price volatility exposure
Continuous evaluation of suppliers fabrication
queues and lead-times to ensure on-time
deliveries

Projects are executed from start to finish by the


same project manager
Project controls are used to monitor the project
continuously and hold project managers
accountable for results

Open, frequent communications with project


managers, asset owners, and finance
personnel regarding deadlines, resource
availability and delivery, and the corporate
integrated construction and maintenance plan

Functional silos are not allowed to impede


project structure and activities
Construction and maintenance schedules are
integrated to optimize use of contractors and
craft labor

Supported by
Organizational

Supplier options expanded through appropriate


identification and qualification processes

Process
Tools

Contract Management

Measurement

Project Risk Management


Priorities and metrics for both the organization
and project are fully aligned

Contracts entered in a timely manner to


minimize financial and project delivery risk

During planning, likely project variances are


identified and previous project actual activity
durations considered

Change order management process clearly


defined and rigorously applied
Web-based tools used to manage interactions
with contractors in near real-time

Performance standards are clearly identified


and appropriate training provided before project
initiation

Array of contracting approaches employed


depending upon project type, scale, and risk
profile

Planning and milestone development


processes are evaluated after each project
Significant time and effort are spent on
stakeholder communications

17
Copyright 2008 by ScottMadden. All rights reserved.

Building (or Rebuilding) Construction Management Skills

Project Management Best Practice Inter-Relations


Possessing the skills and best practices sets the stage for achieving the project benefits
Best Practice Inter-Relations Defined

Maintainability & Operability Designing equipment layout to ensure


that maintenance and operations tasks can be conducted efficiently
and effectively

Constructability The optimum use of construction knowledge and


experience in planning, design, procurement, and field operations to
achieve overall project efficiencies and objectives

Front-End Loading Defining and incorporating strategic information


into the project planning phase to influence overall project capital
costs, schedule reworks, construction turnover to operation, and
steady state operations costs

Value Engineering the systematic effort directed at analyzing


functional requirements of systems, equipment, facilities, procedures,
and supplies for the purpose of achieving the essential functionality at
the lowest life cycle cost, and consistent with meeting all performance
requirements for reliability, quality, safety, etc.

Start-up and Commissioning The process of ensuring that systems


are designed, installed, functionally tested, and capable of being
operated and maintained to perform within design specification

TQM A strategy for continuous improvement performance in every


level and in all areas of management

Process Hazard Analysis Ensuring safety of a facility by


identification of hazards or problem areas that result from deviations
from normal design operations

Prefabrication Preassembly & Modularization use off-site


construction and assembly in controlled environments to minimize
stick-building tasks

Prefabrication Preassembly & Modularization

Process Hazard Analysis

TQM

Start-up & Commissioning

Value Engineering

Front-End Loading

Constructability

Maintainability & Operability

Low

Impact on Project Costs

High

Half of the key best


practices are executed
during construction

18
Copyright 2008 by ScottMadden. All rights reserved.

How ScottMadden Can Help You

How ScottMadden Can Help You

Governance Needs Assessment Approach


Construction Project
Performance Criteria
Project Management

Work Management

Workforce
Performance
Management

Process Management

Quality Management

Assessment Areas
Project roles and responsibilities
Tools and measures for decision making and
progress reporting
Skill training and organization depth
Scope definition and control processes
Project estimating procedures and data sources
Work package structures suitable for estimating and
construction
Maximo and Passport management

Work sampling and productivity estimates


Overtime management processes
Work rule management practices
Skills sourcing and training activities
Safety training materials and practices

Work schedule integration and optimization


Work methods
Standardization and modularization
Knowledge capture and transfer

QA/QC program, process and procedure


development and oversight support
Project performance monitoring and performance
improvement
Schedule and budget variance monitoring and
remediation
Supplier quality and queue management

ScottMadden
Demonstrated Capabilities
Hands on experience managing large
capital projects and fossil plant outages
Major projects readiness assessment
ScottMadden proprietary best practices
library
Outage planning and preparation
Construction organization design
Documentation hierarchy (management
model)
Strategic sourcing and supplier
management
EPC contract management best practices
Communication planning and execution
Outage management augmentation
QA/QC program augmentation
Productivity sampling (wrench time
studies)
Post-project reviews, lessons learned,
and knowledge transfer

20
Copyright 2008 by ScottMadden. All rights reserved.

How ScottMadden Can Help You

Sample Project Timeline Readiness Assessment


Task

Week 1

Week 2

Week 3

Week 4

Week 5

Week 6

Week 7

Week 8

1. Planning and Organization


Finalize scope
Identify data needs
Schedule interviews and update
meetings
2. Operations Assessment
Conduct interviews
Review available documentation
Identify primary risks and exposure
Review mitigation options and plans
already in place
Review existing metrics/monitoring
mechanisms
3. Opportunity Identification
Identify and prioritize gaps in risks and
potential mitigation alternatives
Identify and prioritize improvement
opportunities
Identify actions required to achieve
improvements
Prepare high-level project plan for
next steps

Six to eight weeks in duration, depending on finalized scope


Interviews with key internal stakeholders (typically 15 20 interviews)
Review of internal strategy, commitments, requirements, plans, reporting and other internal documentation
Small project team comprised of senior level consultants working collaboratively with key client personnel

21
Copyright 2008 by ScottMadden. All rights reserved.

How ScottMadden Can Help You

Sample Project Timeline Construction Management Auditing


Project Phase
Task
Planning

Execution

Lessons Learned

Outage planning and preparation


Construction organization design
Documentation hierarchy (management model)
Strategic sourcing and supplier management
EPC contract management best practices
Outage management
QA/QC program
Productivity sampling (wrench time studies)
Post-project reviews, lessons learned and
knowledge transfer
Communication planning and execution

Duration of consulting support varies depending on finalized scope


Small project team comprised of senior level consultants working collaboratively with key client personnel

22
Copyright 2008 by ScottMadden. All rights reserved.

Jere Jacobi
Partner

ScottMadden, Inc.
Ten Piedmont Center
Suite 805
Atlanta, GA 30305
Phone: 404-814-0020
Mobile: 262-337-1352
jjacobi@scottmadden.com

Steve Sanders
Partner

ScottMadden, Inc.
Ten Piedmont Center
Suite 805
Atlanta, GA 30305
Phone: 404-814-0020
Mobile: 770-490-8684
stevesanders@scottmadden.com

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