Optimizing Capital Improvement Programs

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800.580.9322 • info@e-builder.net e-builder.net 2 Hurdle 3 Hurdle 3 Hurdle • Consider that the familiar model of one project manager responsible for an entire project (e.g., contractor communication, RFIs, submittals, progress reporting, budget) may not work as well as it did when you had fewer, larger projects. You may be at a point where specializing job responsibilities may help your organization to move faster and handle the increased volume. • Some growing construction departments or organizations have started introducing project engineers into the process to help handle coordination, communication, and accountability of contractors. A project engineer model helps focus the project manager's time on contractor relationships, scope management, and cost and schedule performance. • If you have larger projects (typically $25 million or more), further specialization in a central project cost controls resource offers budget and cost management skills that can be applied across multiple projects, further off-loading the burden of budget and schedule controls to a specialist who is more efficient at reporting project performance. Of course, the addition of specialized staff assumes that you have enough teammates in your organization to occupy these roles. BEST PRACTICES • Many owners have blended techniques for improving processes such as adding a project controls discipline (e.g., budget, cost and schedule expertise) to their staff, adopting 3D modeling (BIM) competencies to their skills, and adding the enabling technology to help them manage it. Why people and technology? Because one without the other doesn't achieve results. • For capital program management teams, one of the top answers is to introduce a PMIS. There are many viable solutions in the market that can help. Best practice for people managing a CIP is to look for a PMIS that is designed to meet the unique needs of an owner. • Most construction management software solutions are designed to improve construction phase activities such as RFIs, daily reports, submittals and issues. However, a project manager working in an owner organization is also responsible for project funding, design phase, site work, permitting, owner directed change orders, and commissioning. It is vitally important to select an owner centric PMIS solution that reduces cycle times, improves project control, and boosts productivity. • Applying PMIS technology to streamline the main friction points help you do more with the staff you have by eliminating disparate spreadsheets. Centralized information and streamline workflows will dramatically improve your ability to handle more projects without dramatically increasing internal staff. BEST PRACTICES Organizational Limitations (Continued) Poor Execution According to a recent study conducted by Dodge Data & Analytics, a leading construction research firm, 85% of owners experienced cost overruns versus budget on their capital projects; 92% percent shared that their CIP had projects that exceeded planned schedule; and 63% percent of their projects suffered quality issues. Those are poor statistics that are corroborated by another important study conducted by McKinsey & Company which shows that 98% of projects suffer cost overruns of more than 30%; Additionally, in 77% of cases, their expected delivery date is not met. They extend their date to 40% of the original calendar. The reality is that most capital projects have significant risks and uncertainty associated with them and unless CIP teams do something differently, they can expect the same results. Poor Execution (Continued) Owner organizations that have experienced changes to a capital program budget forced them to find ways to reduce cycle times, improve productivity of their staff and drive down review and approval cycle times. To request an online demo, visit e-Builder.net or call 800.580.9322

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