THE AACE® INTERNATIONAL

NO.2 APRIL 2020 YOUR SOURCE FOR TOTAL COST MANAGEMENT Program Management Lessons Learned: Viaduct Replacement Program

Education Board Seeks Volunteer Subject Matter Experts

AACE Election Results Announced SAVE THE DATE!

CHICAGOJune 28 - July 1, 2020 Hilton Chicago Chicago, Illinois, USA OUTSIDETHEBOX

CHICAGO CLICK to watch Alex Gendler detail the conception and building of the iconic Brooklyn Bridge in this TED-Ed animation.

Outside the Box will be a Epic : standing column designed to introduce new ideas and Building the concepts from other resources and professions that may help Brooklyn Bridge stimulate a new way of thinking about total cost management. In the mid-19th century, suspension understandably skeptical. Alex Gendler The views and opinions bridges were collapsing all across Europe. details the building of the iconic expressed are those of the Their industrial cables frayed and snapped Brooklyn Bridge. authors and do not necessarily under the weight of their decks. So reflect the official policy or when German American engineer John position of AACE International. Roebling proposed building the largest Source: www.ted.com. Ted-Ed Original lessons and most expensive suspension bridge ever feature the words and ideas of educators conceived, New York City officials were brought to life by professional animators. We invite Source readers to send suggestions on other sources to [email protected].

SOURCE APRIL 2020 1 CONTENTS NO.2 APRIL 2020

5 President’s Message Managing Risk

6 Education Board Spotlight The AACE Education Board Seeks Volunteer Subject Matter Experts to Assist On-Line Learning Subcommittee Work

7 Certification News Vetting Certification Exam 7 Questions Demystified 8 Women in Project Controls Spotlight on Sree Buravalli

9 Rising Professional Matthew Pringle, PSP

13 Bonus Technical Article Program Management Lessons Learned: Alaskan Way Viaduct Replacement Program 10

2 APRIL 2020 THE AACE® INTERNATIONAL

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ADVERTISING SALES Also in This Issue Business Development Coordinator Joanna Boggs 10 In Memoriam: Robert B. McCullough, PE CCP CFCC +1.304.296.8444 x1122 [email protected] 11 AACE’s Donald F. McDonald Jr., PE CCP PSP

Remembers McCullough Source magazine (ISSN: 8947-0034/20) is published bi-monthly by AACE International, 12 Special Focus: AACE Election Inc. This is an electronic only publication presented in a PDF format. Copyright © 2020 Results Announced by AACE International, Inc. All rights reserved. This publication or any part thereof may not be reproduced in any form without written permission from the publisher. Copying for other than personal or internal reference use without the express permission of AACE is prohibited. ADVERTISING: Contact Advertising Sales, 1265 Suncrest Towne Centre Dr., Morgantown, WV 26505-1876. Telephone: 304.296.8444. E-mail: [email protected] for rates. Advertisers and advertising agencies assume liability for all content (including text, representation, and illustrations) of advertisements published and also assume responsibility for any claims In Every Issue arising therefrom made against the publisher. The publisher reserves the right to reject any 1 Outside the Box advertising that is not considered in keeping with the publication’s mission and standards. The publisher reserves the right to place the 26 Section News word advertisement with copy which, in the publisher’s opinion, resembles editorial matter. All advertising accepted for publication in the 32 AACE International Corporate Members Source is limited to subjects that directly relate to the cost management profession. Current rate 34 AACE International Contacts card available on request. SOURCE DEADLINES: Submissions for the Source must be received at least 30 days in advance of the issue date. Send 36 Upcoming Events to: Business Development Coordinator, 1265 Suncrest Towne Centre Dr., Morgantown, WV 26505-1876 USA, or e-mail [email protected]. AACE International Online Store AACE assumes no responsibility for statements and opinions advanced by the contributors to its publications. Viewpoints expressed in columns, features, and articles published in Source magazine are solely those of the authors and For additional industry news FOLLOW US do not represent an official position of AACE and updates, you can always on Facebook International. AACE International is not endorsing visit us at web.aacei.org. or sponsoring the author’s work. All content is JOIN US presented solely for informational purposes. on LinkedIn

SOURCE APRIL 2020 3 The Top 10 Reasons To Join AACE International Ready to advance your career and begin enjoying the advantages that our members enjoy? Whether you are an experienced cost engineer or a student, we have a membership ready for you.

1 Time 6 Technical Development Gain access to a wealth of resources that will save you time Increase your knowledge and expertise by joining one and money! You’ll stay informed about the complexities of the of AACE International’s many technical subcommittees, cost and management profession - plus you’ll have access to subcommittees, and Special Interest Groups (SIG’s) at no discounts on educational programs, publications, and more! additional cost to members. Discuss industry problems with your peers or help experts develop new and improved techniques and practices for the profession. 2 Information Locate thousands of technical papers and publications in the Virtual Library. AACE’s database is keyword searchable for 7 Networking quickly locating appropriate reference articles. By attending a local section or our Annual Conference & Expo for interesting speakers, informational tours, social dinners and much more. The online Membership Directory is an excellent 3 Career source for a list of contact information on thousands of members. Join one of our many technical subcommittees and participate in Members can post resumes at no additional cost in our Career the AACE Forums - a great way to tap into the collective wisdom Center and keep your career on track through information and experience of our world-wide membership. sources such as our annual Salary and Demographic Survey of Project and Cost Professionals. 8 Excellence 4 Learning Our certification programs are independently accredited by the Council of Engineering & Scientific Specialty Boards. AACE We offer numerous online learning courses on estimating and certifications are a recognized credible standard in the cost project management. The Approved Educational Provider management field. A recent study shows that individuals with program helps maintain high quality development courses and an AACE Certification earn 17.4% more than their counterpart providers. AACE also holds many seminars throughout the year. without a certificate.

5 Resources 9 Discounts Starting with the TCM Framework and Recommended Practices that are available for free only to members to our On products and services ranging from AACE International bi-monthly publication Cost Engineering featuring articles Conference & Expo registration fees, archived webinars and for cost professionals around the world. Through the AACE presentations, certification examination registrations, and more! International website, the Cost Engineering journal is a great current resource for members and as a member, you gain access to an archive of past issues. 10 You! We are your professional partner bringing you information and support you can trust. Join and become part of a unique network of individuals who are dedicated to improving the cost JOIN TODAY! web.aacei.org and management profession.

4 OCTOBER 2018 SOURCE PRESIDENT’SMESSAGE

Managing Risk

BY DOUGLAS W. LEO, CCP CEP FAACE Hon. Life, President, AACE International

Most important, as I write with online proctoring; or, if necessary, by encourage large group meetings during the this message to you as AACE the rescheduling of exams if testing sites outbreak. If you have the capability to meet International President, is my wish are not available. Members can refer to our with your section virtually that is beneficial. for each of you, your families, your website or contact headquarters for further However, it is not a requirement. friends and coworkers to remain in details. As always, our technical Body of At this time, there are no plans to postpone good health as the world deals with Knowledge is one of our greatest member or cancel the Conference & Expo 2020. We the Covid-19 Coronavirus Pandemic. benefits. Our Associate Boards will continue have received no cancellations from exhibitors This is a time for all of us worldwide to remotely produce the highest quality or sponsors at the event, and registrations to come together, to cooperate, and TCM Frameworks, Recommended Practices, are on pace with previous years. We will to assist one another. study materials and Certifications. All our continue to monitor the situation and will In our professional lives, AACE technical products are always available be in discussion with health authorities and International members are very familiar in to our membership through the AACE the AACE leadership. We will work to ensure dealing with uncertainties, ever changing International website. the highest possible degree of hygiene, safety, risks, and stressful workdays. As managers, Following is a copy of the message that and medical care at the conference as the estimators, project control professionals, AACE International sent to our leadership health and safety of all attendees is our highest schedulers, risk managers, and cost engineers, across the globe. This message expands on priority. We will reevaluate our decision on we often deal with work and project related what I have said and is important for all our a continuous basis. In the event we have to risks. The skills that we employ at work, as membership to hear. cancel the conference in Chicago, we have a AACE members, are now needed more than plan to have a fully virtual Conference & Expo. ever as we deal with the risks, uncertainties, SECTION LEADERS With continued aggressive good hygiene, and the stress of health concerns and AACE International is taking all we can all do our part to help keep everyone other personal issues resulting from the developments concerning coronavirus healthy. We will continue to provide updates Coronavirus. We need to recognize that the disease (COVID-19) very seriously. as the situation develops and new information preparedness that we seamlessly employ at Information and responses are rapidly becomes available. work, is now required in our personal lives. changing and AACE is continually AACE’s Board of Directors, Regional Risks ignored often put project outcomes in monitoring the situation. Directors, and staff, are here to support you. jeopardy. We are now called to manage risks As AACE Section Leaders you should If you have any questions or concerns, please in order to safeguard ourselves, our family, always put the health and safety of our don’t hesitate to contact any of us. Our goal is friends and co-workers. Wherever possible, members first, as we here at headquarters to successfully navigate through this crisis. Our AACE International is striving to assist our are doing. We have been corresponding thoughts are with you and your families. membership during this difficult time. with our volunteers and we are taking AACE International is closely monitoring some actions to ensure that we support the situation, adhering to warnings and our members through this unprecedented If you would like official recommendations with regards situation. The organizers of the Region 2 to contact our to the safeguarding of our members and Symposium and Kuwait Conference have current president preparations for the Conference and Expo. taken the proactive step of rescheduling with questions or While we are still well over three months their events to the fall. While the decisions comments about out from the Conference and Expo, the were difficult, it certainly demonstrates that The President’s safety of our members and attendees is our sections and regions are putting the Message please paramount. We plan over this time to health of our members in the forefront. address your frequently communicate with our Sections As this relates to the Section Minimum e-mail to [email protected]. To engage and will offer updates on the AACE Standards, the Board of Directors has in other discussions, check out AACE website. We have proactively confirmed decided that the requirement for at least International’s online Communities at that Certification testing may be possible three meetings this year is waived. We do not communities.aacei.org.

SOURCE APRIL 2020 5 EDUCATIONBOARDSPOTLIGHT

The AACE Education Board Seeks Volunteer Subject Matter Experts to Assist On-Line Learning

Subcommittee Work BY MARINA SOMINSKY, CHAIR, EDUCATION BOARD

The Online Learning Sub-Committee is actively Skills & Knowledge of Cost Engineering, 6th Edition, CCP recruiting volunteer Subject Matter Experts to Certification Study Guide, 2nd Edition, the TCM Framework, support an ongoing initiative to develop an online 2nd Edition, and other relevant RPs. The sections applicable training program for the Certified Cost Professional to the CCP certification exam are identified and brought over (CCP) certification by 2022. Online training into the source content matrix document. programs for the remaining three professional level 2. Course mapping – Competencies are divided up into certifications – Certified Estimating Professional (CEP), reasonable groups, since each training module should Planning & Scheduling Professional (PSP) and Earned only cover a minimum number of learning objectives. As Value Professional (EVP) will follow. an example, competencies defined in section 2.2.4 - Cost If you are interested in becoming a volunteer for the Estimating and Budgeting – have been divided into seven (7) development of online learning modules, please contact any of the online learning modules. The first three modules have eight, following Education Board representatives: eight, and three learning objectives respectively. 3. Outline development – This step defines slides, potential 1. Teri Jefferson – Headquarters Staff Liaison, Education Board graphics, and narration for each module. ([email protected]) 4. Storyboard development – The storyboard translates the 2. Marina Sominsky – Chair, Education Board outline information into a graphic format and assists in the ([email protected]) development of slides for each training module. 3. Shoshanna Fraizinger, VP Education, AACE Board of 5. Online modules development – This step of the process involves Directors ([email protected]) using the online training authoring software to show the technical content from the source matrix, as well as to be able to Did you know that 57% of members who responded to the 2019 add graphics, references, audio, and knowledge check questions. AACE member value survey indicated a need for virtual, on-demand professional training and 52% indicated positive feedback for virtual, Candidates seeking AACE International CCP certification can on-demand certification training? already take advantage of the two online modules listed below. Stay To meet this demand, the Education Board set the goal to tuned to the AACE website as more modules are created and released. develop, as noted above, this online training program for Certified Cost Professional (CCP) certification by 2022, with CEP, EVP Schedule Planning – Module 1 https://www.pathlms.com/aace/ and PSP to follow. This is an aggressive objective given volunteer courses/3446/external_presentations/150658 resources. Over the past year, the Online Learning Subcommittee of the Education Board has been working on development and Schedule Planning – Module 2 https://www.pathlms.com/aace/ implementation of a few training modules designed to support and courses/3446/external_presentations/151021 guide candidates seeking the CCP certification. Each online learning module is aligned with the CCP Remember, the Online Learning Sub-Committee is actively competencies listed in Recommended Practice (RP) 11R-88: recruiting volunteers to support the online training module Required Skills and Knowledge of Cost Engineering, upon which the creation initiative. If you are interested in becoming a volunteer for competencies and questions in the certification exam are predicated. the development of online learning modules, please contact Teri The steps of the module development process are as follows: Jefferson [email protected] ; Marina Sominsky at EdChair@ aacei.org; or Shoshanna Fraizinger at [email protected]. 1. Content sourcing - The first step is to perform a review of all available AACE documents, including RP 11R-88: Required

6 APRIL 2020 SOURCE CERTIFICATIONNEWS

Vetting Certification Exam Questions Demystified

BY VALERIE G. VENTERS, CCP, Certification Board Member

In the October 2018 Source magazine, Valerie Smith, new question does not identify the source document or is confusing/ Senior Credentialing Analyst, AACE International unclear or misleading, the certification exam team returns the Certification Department, authored an article, “Behind question to the Certification Department staff for communication the Scenes: Certification Questions Answered.” back to the question author. The author has the opportunity to The article explained how new certification exam make suggested corrections and resubmit. questions were vetted, approved, and ultimately Since all new questions are sourced from the approved AACE became part of the exam question bank. At the time International Body of Knowledge, they are aligned with the RPs, of the article, the Certification Exam Advisory Group S&K, TCM, or the various Certification Study Guides. The (CEAG), comprised of a member from the Technical, Technical, Education, and Certification Boards are still aligned Education, and Certification Boards, vetted all new to collaborate when needed and consulted to ensure intent of the questions prior to approval/inclusion into the exams. documents comprising the AACE International Body of Knowledge. To reduce inefficiencies of the question review/vetting process The process of reviewing/vetting new certification questions with CEAG, the Certification Board adopted a more streamlined may be different, but this process improvement results in perfect and time-efficient process for future new exam question submittals. alignment between the exam questions, required competencies The new process moved the CEAG in an as-needed “consultant” role, tested, and the AACE International Body of Knowledge. As the placing the responsibility of new question review and vetting on the Certification Program moves forward, the Certification Board coordinating Certification Team for each exam. will continually review its processes and procedures for efficiency, When a new question is submitted, it must have a source clarity, alignment with industry best practices and accreditation, all technical/educational document identified from the AACE being done to ensure certificants and future exam candidates have a International Body of Knowledge, (i.e. Recommended Practices positive experience. (RPs), Skills & Knowledge (S&K), Total Cost Management (TCM) Writing/submitting new certification questions is one way to Framework, or Study Guides). accumulate Continuing Education Units (CEUs) for recertification. The appropriate certification exam team verifies the tagged Visit the AACE International website for more information on source, reviews the question for clarity, assigns the competency, and writing and submitting new exam questions. approves the question for entry into the exam question bank. If the

SOURCE APRIL 2020 7 WOMENINPROJECTCONTROLS

SPOTLIGHT ON Sree Buravalli

BY CINDY WHITMILL, PSP

Sree Buravalli was born and raised in India. As a project finish, wherein you become an integral part of the team. She child, Sree always enjoyed spending quality time gets to see all phases of the project and be part of a unique journey with family. She especially enjoyed time with her as each project is very different and complex in nature. As a project paternal grandmother, who would tell hundreds of controls professional, she gets to see how we performed within a set stories filled with morals and values she instilled in budget and on track with the schedule. every child who listened to her. Her lessons will be Sree has had mentors at each point of her career. Her advisor at carried onto the next generations to come. graduate school, Dr. Gokhale, encouraged her to pursue a career in Sree attended SV University in India, where she earned construction industry. This has given her true satisfaction with the her bachelor’s degree in civil engineering. She went on to earn role she is currently in. She also considers her peers as her mentors, her master’s degree in construction management at Vanderbilt where she learns something new from their experiences every day. University. As an AACE International member, Sree values the meetings Sree started her professional career working as a project engineer and conferences offered. They offer a wide variety of experiences at a boutique construction company, NC Sturgeon, which enabled to construction professionals she can learn from. It gives her an her to learn the nuances of the construction industry and to apply opportunity to educate herself on the emerging advancements in the skills that were taught in grad school. It was a great the industry. She believes learning is an ongoing process and company with a family-oriented structure, and she could AACE International is a great platform that can be used dabble in several tasks including designing structures, to become a better professional. Membership has also estimating, performing takeoffs, scheduling and given her the opportunities to attend training and interacting with subcontractors. Sree cherished seminars, which are considered as value adders to her every bit of this experience as it laid a good career advancement. It motivates her to set new goals foundation for her current career. She is grateful (pursue other certifications) and define her own to her former boss Charles (Chuck) Sturgeon, career path. who was always patient and took time in Sree encourages other to become AACE explaining things to a new graduate. She learned International members, so they will have the invaluable life lessons from him. Sree is currently opportunity to network with some of the best working as a senior project controls specialist industry professionals whom they can count as at Burns & McDonnell’s Houston office. She their potential clients or mentors. Networking supports EPC projects in the transmission and presents you with an avenue of possibilities, distribution industry. which will make you become a good leader From the very beginning, within your team. Sree was interested in being Her words of inspiration are two a part of cost management quotes she has used in her career. and in analyzing schedules. She believes without an “An investment in knowledge efficient project controls pays the best interest” organization; no engineering —Benjamin Franklin and construction company can scale up to take on mega “Arise! Awake! and stop not infrastructure projects. Project until the goal is reached” controls enables participation —Swami Vivekananda from the time of inception to

8 APRIL 2020 SOURCE RISINGPROFESSIONAL

SPOTLIGHT ON Matthew Pringle, PSP

Matthew Pringle, PSP, is a project controls Brasfield & Gorrie include the Georgia Proton Therapy Center and professional with close to 14 years of experience in several medical office buildings. He has also begun working through the construction industry. His experience includes the planning and schedule development phase for a new mixed-use cost, scheduling, and data analysis roles across a and entertainment district, High Street, in Atlanta’s central perimeter. wide range of project types from telecommunications, Matt has been an AACE member and involved with the Atlanta education, data centers, sports and entertainment, Area Section since joining Brasfield & Gorrie Atlanta in 2018. In commercial building, and medical office buildings. 2019, he joined AACE’s Rising Professionals Committee (RPC) and Matt has worked as a cost engineer or project scheduler on projects has contributed to the committee’s university outreach initiatives. totaling over 750 million dollars in contract value. He holds an For Matt, membership in AACE has provided an opportunity to AACE International certification as a Planning and Scheduling gain more knowledge and perspective on planning and scheduling Professional (PSP). techniques as they pertain to the construction industry. His favorite Matt grew up in Alpharetta, GA, in a military family that instilled experience with AACE was in 2019, when he co-authored a the ideal that anything is possible with dedication and hard work. technical paper and presented for the first time at his first AACE His family background also gave him a heightened awareness and Annual Conference & Expo. While there, he also enjoyed the attention to detail in every aspect of his life. An avid baseball player, opportunity for continued learning from various presentations baseball taught him how to work hard on and off the diamond. He and the opportunity to interact and network with other industry completed his baseball career as a travel-team all-star and captain of professionals. His advice for young professionals in the project his college club team. Throughout his baseball career, he remained controls profession goes back to the ideals that were engrained in dedicatedly focused on his academic studies and discovered a passion him while growing up, have a heighten awareness and attention for logistics and supply-chain management. He earned a Bachelor to detail on any task or project you are of Science degree in industrial and systems engineering from the working on. Matt adds, “as a Georgia Institute of Technology at Atlanta, GA. project controls professional, Upon graduation from Georgia Tech, Matt joined Bechtel we need to have a holistic Corporation’s Southeast Telecommunications Division in Bessemer, view of a project’s plan and AL, as a junior project controls engineer. He was fortunate to learn performance, while also project scheduling principles under the mentorship of Jeff Renfro, providing influence on a the company’s divisional project lead cost engineer and scheduler for project by knowing the the AT&T Wireless Infrastructure project at Atlanta, GA. Through granular details. Keep in Jeff’s mentorship, Matt got the opportunity to travel across the mind that even though country scheduling AT&T wireless buildouts using the techniques we live in a technology- that made his mentor successful. Using what he learned through based and data-driven his travels and his systems engineering background, he teamed up industry, project controls with some of colleagues to develop an in-house scheduling system professionals should not that became beneficial at tracking detailed tasks and engaging be afraid to speak up when project teams to communicate more effectively when planning and their intuition is telling scheduling various scopes of work. them something is not Matt is currently employed as senior planner/scheduler by right, because most Brasfield & Gorrie at Atlanta, GA, where he lives with his wife and of the time, that their five sons. At Brasfield & Gorrie, he found several tremendous intuition is mentors who pushed him to step outside his boundaries and strive correct.” for more in his career, including obtaining his PSP certification from AACE International. At Brasfield & Gorrie, Matt has served as the principal scheduler for the construction of QTS DC-2, the largest data center under construction in the Southeast United States. The two-story, approximately 150,000 square foot data center features its own on-site power substation and direct fiber access to a wide variety of carrier alternatives. In addition to his role on this project, Matt is currently overseeing project schedules totaling over 250 million dollars of contract value including additional data center fit-outs, a four-story library renovation at his alma mater Georgia Tech, the Kennesaw State University Academic Learning Center, and a four- story commercial office building in his hometown of Alpharetta, GA. Additional projects that Matt has scheduled to completion while at

SOURCE APRIL 2020 9 in memoriam ROBERT B. MCCULLOUGH, PE CCP CFCC SEPT. 24, 1954 – MARCH 16, 2020

Word has been received of the (CDT) through the Construction death of Robert B. McCullough, Specification Institute. In addition to PE CCP CFCC, on March 16, 2020, being an AACE member, McCullough in Texas after battling cancer also held membership in the American for many years. McCullough, a Arbitration Association (AAA) where longtime AACE International he served as an arbitrator; in the member and President of Associated General Contractors McCullough & Associates, joined (AGC), where he was a sub-committee AACE International in 1983, the and task force chair with the Dallas same year he became President Chapter; the American Society of Civil of McCullough & Associates. Engineers (ASCE); National Society He had served on the AACE of Professional Engineers (NSPE); International Board of Directors as Vice the Project Management Institute President Regions from 1994 to 1996 (PMI) and with the Construction Law and as Director-Region 5 from 1992 Section of the State Bar of Texas. to 1994. He was a member of AACE’s McCullough also taught courses Certified Forensic Cost Consultant on construction related topics to (CFCC) Task Force that created the contractors through Dallas universities CFCC certification, serving from and colleges. He presented and 2005 to 2007. He also served as the participated in numerous seminars Annual Meeting Local Arrangements geared toward claims avoidance and Committee Co-Chair in 1997. resolution. He obtained his practical He used his professional experience by working for large private experience to serve as a Recommended contractors who provided all phases of Practice Contributor toward AACE commercial construction for private International’s Recommended owners, as well as the Practice 29R-03: Forensic Schedule At right: Rob federal government and Analysis in 2011 and Recommended McCullough, his wife Ann state agencies. Practice 70R-12: Principles of Schedule and their son Michael at After becoming a Contingency Management – As Applied the 2004 AACE Annual construction consultant, in Engineering, Procurement, and Meeting. McCullough McCullough managed Construction in 2013. He had served was proud of his heritage multi-million-dollar as President of the Dallas-Ft. Worth and would wear a kilt disputes for some of Section. He authored and presented to some of the banquet the nation’s largest several papers at the annual AACE events and his son is also general contractors, International Conference & Expo. participating in this photo. specialty contractors, (Readers can see the complete list by project owners and doing an advanced search at the AACE International Virtual Library). architects. These He also served as a room host for many years at the Conference & projects included high- Expo during the technical paper presentations. Since 2010, he had his rise hotels, hospitals, company sponsor the CyberCafe at the annual Conference & Expo. office buildings, airports, Prior to becoming President of McCullough & Associates, he power plants, chemical had been a Mocon Building Corporation Superintendent/Project plants, highways, major Engineer from 1981 t o1983; and with the Hawaiian Dredging & utility projects, pipelines Construction Company as a Senior Engineer from 1977to 1981. and related facilities. He has a Bachelor’s degree in Civil Engineering – University of McCullough California, Berkley (1977). He had 40 plus years of professional possessed specialized experience with expertise in project management, CPM scheduling, expertise in project management, CPM scheduling, damages, productivity tracking, expert witness testimony and impact and cost analysis and the measurement and tracking of productivity. delay analysis. He testified in over 300 project cases. He was a He was deposed and presented expert testimony in court on all Registered Professional Engineer in Texas. areas of construction, including CPM scheduling analysis and In addition to his AACE certifications of CCP and CFCC, the measurement and pricing of damages and productivity losses McCullough also was a Certified Document Technologist associated with delays and impact.

10 APRIL 2020 SOURCE AACE’s Donald McDonald Remembers McCullough

Longtime AACE member Donald F. From top: Wally Strutt, Michael C. Ray, McDonald Jr., PE CCP PSP, worked PE CCP, and Robert McCullough, PE with and was mentored by Rob CCP CFCC, talking at the 2001 AACE McCullough. He shares the following International Annual Meeting. Rob and memories of this professional Ann McCullough with AACE Friends at an association and friendship: AACE Annual Meeting in the 1980s. Rob “In 1984 I was a newly minted graduate McCullough, PE CCP CFCC, and his wife, with a Master’s of Engineering with a poorly Ann McCullough; Mr. and Mrs. Nelson E. written thesis entitled, “Complex Claims Bonilla and Novice and Tom Barlow at the Analysis” - only known as being such after the 1997 Annual Meeting. Bonilla, CCP, served fact when the real world of claims consulting as AACE President for 1996-1997. hit me smack in the face. As part of my thesis research I interviewed claims consultants and construction lawyers and is when I began attending almost every AACE Annual first met Rob McCullough, who was Meeting for a 35+ year run. working for a construction lawyer in Even though in 1988 we went our Tyler, TX. After graduation I had separate ways and had our individual the option of working for a highway claims consulting firms, we would contractor in a management role that support each other’s Annual Meeting I was well experienced and qualified to papers and Cost Engineering Journal take on, or to go to work for the Tyler publications. Even though we construction attorney and work with were professional rivals and would Rob McCullough as a claims consultant occasionally find ourselves on opposite – something I had no experience or real sides of a matter, we continued to qualifications for. support AACE endeavors by supporting Of course, I went the crazy route and technical document development. This stated working with and being mentored even lead to the 2000 AACE Annual by Rob McCullough on all things cost Meeting Mock Arbitration — Catfish and schedule damages related in contract Contractors vs. NYET County Airport claims. When you work with Rob, you Board. Catfish was a tongue in cheek work with his very talented wife Ann – a look at the issues that Rob and I were whirlwind if there ever was one. An on opposite sides of in a Texas airport intense period of several years working construction project dispute. with Rob ensued while I learned the ropes Rob and Ann were great supporters and was able to gain my Texas Professional of AACE over the past 40+ years. He Engineer license under his tutelage. was a founding member of the Contract Rob was a proud Berkley graduate Claims & Disputes Special Interest who worked for Hawaiian Dredging/ Group that evolved into the Claims Dillingham Corp in Hawaii and Pacific & Dispute Resolution Subcommittee. Islands before returning to his West Coast roots and eventually Rob also supported the development of AACE’s 2007 Expertise migrating to Tyler, TX. Ann may recount it a bit differently, but I Level Certification - Certified Forensic Claims Consultant (CFCC). think the reason Rob got involved in construction contract claims, Often Rob and Ann would provide a kiosk with computers dispute resolution and eventually became a well-regarded damages where Annual Meeting attendees could check email and browse the expert witness was that the majority of the projects he was working web – all well before everyone had their own iPhone. You would on had fallen into the claims and dispute ditch (I don’t think he was often see Rob, very comfortable in his own skin, wearing a snappy in ‘management’ at the time) and he was tapped to help the legal team Scottish kilt at one of the evening events. When Rob was busy develop claims and push them to resolution. finalizing an expert report or testifying in a hearing, and could not Rob and I worked well together as a team complimenting each attend an Annual Meeting, he would send Ann to make sure that other’s strengths and weaknesses. At the urging of my Graduate AACE was being well supported. advisor and strong AACE supporter, Dr. George Stukhart, we both Even though we went our separate ways professionally and time has joined AACE and started down the path of studying to take the made our frequent interactions to be more and more distant, Dolores CCE (now CCP) certification exam. Beginning with the 1985 and I always counted Rob and Ann as good friends personally and Annual Meeting in Denver, Rob, Ann and I with my spouse Dolores, good friends of AACE. Rob is a good friend whom I will miss.”

SOURCE APRIL 2020 11 SPECIALFOCUS

AACE Election Results Announced

BY AACE INTERNATIONAL

Winners are being announced in the 2019 AACE International election for seats on the Board of FIVE ELECTED AS DIRECTOR-REGIONS Directors and the Membership Board. Members Each Director-Region provides liaison between the AACE elected a President-Elect; Vice President-Finance; Sections, within their respective Region, and AACE’s Board and five seats on the Membership Board for of Directors and the Membership Associate Board. Beginning Director-Region in Regions 1, 2, 4, 7, and 9. terms as Director-Region will be:

Region 1: Sandra Mejia Villegas PRESIDENT-ELECT Region 2: Michael J. Bennick James E. Krebs, PE CCP FAACE, will be returning to the Region 4: Dayna Anderson board as President-Elect. This is a three-year commitment, Region 7: Haya S. Saleh serving in 2020-2021 as President-Elect, then as President for Region 9: Johnson Awoyomi 2021-2022, and a year as Past President for 2022-2023. Jim has been an active member of AACE International since • Sandra Mejia Villegas, P.Eng., is currently serving as the 1986, all as a member of the Great Lakes Section having served chair of the mentorship committee and was previously the as President, along with various other board positions. For his co-chair for Women in Project Controls Committee. Sandra dedication to the Great Lakes Section, Jim earned the Charles is also a contributing member of the Latin America Task V. Keane Distinguished Service Award. Jim achieved the rank of Force, the Raising Professionals Committee and was part Fellow in 2012 and was awarded the O.T. Zimmerman Founder’s of the Vision 2020 committee. Sandra works for Parkland Award in 2019. Jim served on the Association Board of Directors Refining BC as Project Cost Control Analyst. as the Director of Region 4 in 2008 and 2009, and the Vice • Michael J. Bennick, PE CCP PSP PMP, joined AACE President of Administration in 2015 and 2016. Jim has presented International in 2002 and is currently the President of the papers and training sessions at AACE Conference & Expos and New Jersey Section. He holds the CCP and Planning and quarterly board meetings. Jim is the Senior Vice President of Scheduling certifications, is a licensed professional engineer Administrative Controls Management, Inc. He has over 33 years of and is currently a Vice President at JS Held. project management, project controls, and construction experience • Dayna Anderson has worked in project controls for over including planning, scheduling, estimating, cost controls, claims 16 years and is a former president of the AACE Chicago- analysis and testimony, field supervision, and administrative services. Midwest Section and a Board member for many years. She All remaining Board seats serve two-year terms. is co-founder and Senior Partner of Breakwater Forensics LLC, headquartered in Chicago. • Haya S. Saleh, PSP, joined AACE in 2007 is currently the VICE PRESIDENT - FINANCE President of AACE Jordan Section, a position she has held since Patrick M. Kelly, PE PSP, was elected to serve as Vice 2017. Haya is currently the General Manager and Founder of President-Finance. Patrick is a construction claims analyst MESC, a construction management entity in Jordan. and testifying expert with more than twenty years’ experience. • Johnson Awoyomi, CCP CEP, is President of the AACE Patrick joined AACE in 2007, and earned his certification as a Nigeria Section. Johnson is currently the Group General Planning and Scheduling Professional in 2008. Since then, he Manager Engineering and Technical Division, in Nigerian has been actively involved in AACE, by submitting papers for National Petroleum Corporation (NNPC).. publication in Cost Engineering journal and presentation at the Annual Conference & Expo. Additionally, Mr. Kelly held All elected Board of Directors and Membership Board the Chair of the Claims and Disputes Resolution Technical members will officially begin their terms of office at the 2020 Subcommittee for three years, served on the Board of Directors AACE International Conference & Expo, June 28 - July 1, at as Director, Region 2 for two years, and is currently finishing a the Hilton Chicago hotel. term as Vice President Finance.

12 APRIL 2020 SOURCE BONUSTECHNICALARTICLE

Program Management Lessons Learned: Alaskan Way Viaduct Replacement Program

BY DAVID SOWERS, PE; HARRY JARNAGAN, PE CCP; AND BRIAN SMITH, CCP

ABSTRACT article cover topics such as earned value replaces an aging, elevated section of State This article provides an overview of management; risk management and the use Route 99 (SR 99) with a two-mile-long, program management lessons learned from of contingency and reserves; right-of-way large-diameter, machine-driven single bore the Alaskan Way Viaduct Replacement acquisition; change control; relations with . This complex engineering and Program (AWVRP), being delivered by oversight entities; and the use of alternative construction feat now threads the city’s the State Department of delivery contract methods. This article was hourglass geography over 200 feet below Transportation (WSDOT) in , first presented as PM.3105 at the 2019 the surface streets, from near the Seattle Washington. This landmark program is AACE International Conference & Expo. Center in the north to the professional sport changing the City of Seattle by replacing stadiums in the south. an aging, elevated section of State Route INTRODUCTION The ability to deliver a mega program 99 with a two-mile-long, large-diameter, This article provides an overview of like AWVRP is a significant achievement machine-driven single bore tunnel, one of program management lessons learned from from many perspectives. It improves public the largest of its kind ever completed. This the Alaskan Way Viaduct Replacement safety by removing a structurally deficient, complex engineering and construction Program (AWVRP), being delivered elevated freeway. It provides the opportunity effort, with a current budget of $3.3 billion by the Washington State Department to transform the city’s waterfront. And it and a delivery schedule spanning more of Transportation (WSDOT) in Seattle, increases the efficiency of freight transport than a decade, is nearly complete. The Washington. This landmark program is in a dense, urban environment. From the many lessons learned addressed in this changing the City of Seattle waterfront. It owner’s perspective, delivery of this program

SOURCE APRIL 2020 13 has been a success. Total cost growth is at viaduct carried approximately 110,000 cars is a joint venture between Tutor Perini and only 5.7%. Compare this to Flyvbjerg’s “Iron per day and was considered a critical north- Dragados USA. Law of Mega Projects” where “overruns of up south conduit. It also posed a seismic risk for Meanwhile, WSDOT assembled teams to 50 percent in real terms are common, over the traveling public. of consultants who were expert in tunneling, 50 percent not uncommon.” [5] AWVRP is Schedule was a key planning program management, and project delivery. now also being considered a model for how consideration. In the late , WSDOT Through heavy internal recruitment, to deliver a large-diameter, machine-driven secured additional funding from the Port WSDOT was also lining up its staff to deliver bored tunnel-centric mega program. Officials of Seattle and the US Federal Highway this challenging project: in construction and an elected United States Congress person Administration (FHWA) and pressed administration, design review, and myriad representing an eastern U.S. city, recently forward with a series of EIS alternative- other disciplines. All competitive candidates visited the AWVRP project site. These neutral projects. These included utility had extensive design-build experience. appointed and elected leaders believed they relocations and replacing the southern mile could look to AWVRP as an example, as of the concrete viaduct between Holgate BUDGET AND FUNDING they plan a capital improvement program and King Streets. In 2010, the state released Washington State provides major to address their city’s transportation-related, a request for proposals seeking design-build appropriations to agencies on a biennium urban waterfront problems. teams for the central portion of the corridor, (2-year) basis. Based upon AWVRP’s master As of the writing of this article, AWVRP, a deep bore tunnel. WSDOT had succeeded schedule, the program management team with a delivery schedule spanning more than with design-build projects in the past, most developed cash flow needs for each phase a decade, is nearly complete. This article recently the $650 million Tacoma Narrows (engineering, right of way, and construction) enumerates the key lessons learned related to: bridge, which links the Olympic Peninsula of each proposed contract (34 total), aligned with Tacoma, Washington. The state with the proposed funding source. The • budgeting, funding, and financial legislature looks favorably upon design build, FHWA defined AWVRP as a mega project management because WSDOT’s lump sum bid approach and therefore it required a formal financial • cost estimating and risk modeling gives greater price certainty (fewer change plan. [4] The nomenclature “mega project” • design-build contracting orders and cost growth), risk allocation has since been replaced by “major project.” • right-of-way acquisition and related between WSDOT and the contractor, and, The program also received pledges from the construction impacts most importantly, reducing the duration of toward capital expenditures • “workforce” management and handling the project schedule over design-bid-build. and reimbursable funds and from the City professional labor scarcity Throughout 2010, two bidders competed of Seattle and other entities for utility • configuration and change control for the deep bore tunnel project. They met relocations and betterments. • progress measurement and reporting regularly with WSDOT’s team to discuss During its 2009 session, the Washington • working with oversight entities Alternate Technical Concepts (ATC), risk State Legislature approved Engrossed allocation, insurance, and stakeholder Substitute Senate Bill (ESSB) 5768. The Generally, lessons learned are issues. On December 9, 2010, WSDOT legislation identified a deep bore tunnel as summarized after each section. opened the technical and price proposals its preferred option and directed that the and identified Seattle Tunnel Partners as the program must include existing state and BACKGROUND best value proposer. Seattle Tunnel Partners federal funding of $2.4 billion and no more The AWVRP is a $3.3 billion program to replace a 65-year old, structurally deficient concrete viaduct that carried SR 99 through the heart of with a nearly two-mile-long bored tunnel. The tunnel has an outside diameter of 56 feet and was, briefly, the world’s largest earth- pressure-balance-mined tunnel. The project originated following the 2001 Nisqually earthquake beneath Olympia, Washington, which measured magnitude 6.8 on the Richter scale. The state of Washington, led by the Washington State Department of Transportation (WSDOT), launched a series of studies to determine how to replace the aging structure. After much analysis, conducted as part of the Environmental Impact Statement (EIS), and after two unsuccessful citizen votes on multiple alternatives, the state, city and county leadership elected to proceed with a deep bore tunnel. At the time, the existing FIGURE 1 Example: Expenditures and Funding by Source, 2010

14 APRIL 2020 SOURCE than $400 million in toll revenue. Combined alternatives analysis. The cost estimate was a with up to $300 million from the Port of joint effort between the design engineer and Seattle, the source of funds totaled $3.1 owner. The design engineer provided costs billion, which was the original 2010 budget. based on physical take-offs. The owner and Figure 1 shows a 2010 cash flow curve owner’s representative provided owner costs that indicates the program would suffer a that included engineering, right-of-way, and cash flow gap beginning in 2013 because program management. They also provided program expenditures exceeded funding specific input from independent experts and sources. The deficit was due to a lack of overall coordination. A record of decision toll collection for a program not planned FIGURE 2 Funding Sources (Proposed (ROD) was reached in August 2011. for completion before 2015. Moreover, the 2019-202 Legislative Budget) WSDOT used the Cost Estimate $400 million toll revenue was revised down Validation Process (CEVP) to solicit to $200 million in the 2012 legislative expertise from both the project team and a session. Revenue studies had indicated Strategic Technical Advisory Team (STAT) $200 million was a more realistic target and comprised of industry experts. The risk would reduce diversion onto city streets. consultant combined cost and schedule The remaining $200 million was filled with estimates into a critical path network that previously unprogrammed federal funding. was subjected to a probabilistic analysis. This [9] Figures 2 and 3 show the current process references AACE International’s program funding sources and uses and the Recommended Practice 41R-08, Risk revision to the federal contribution. Analysis and Contingency Determination US Federal funding was disbursed at the FIGURE 3 Projected Funds Use (Proposed Using Range Estimating. The initial model agency level, to be used across all WSDOT 2019-2021 Legislative Budget) run in 2009 provided results that exceeded eligible projects. Non-federal funds were the target budget. received according to interagency agreements for both federal and non-federal funds. A Value Engineering (VE) exercise was negotiated between WSDOT and the Incorrect assumptions can result in the undertaken, consisting of three teams of funding source. WSDOT placed the priority mistiming of major funding sources. state, city and consultant staff. Each team on using federal funds ahead of state funds, to • Increase cash flow projection accuracy had a primary geographic focus: south, north better time state bond sales for all WSDOT to avoid additional costs for financing and the tunnel itself. The teams evaluated projects. Often, AWVRP experienced a swap projects or to avoid additional costs more than 44 ideas that resulted in nine of funding sources, when federal funds were that might reduce the ability to execute recommendations. The two most significant substituted for state funds that could be used projects, either the particular program or suggestions were to change the profile of elsewhere in the state. However, these swaps other agency-sponsored projects. the adjacent Holgate to King project from were not obvious to program staff until after a subsurface structure to an elevated one, they had occurred, complicating efforts to COST ESTIMATING, THE and to realign both the north and south balance sources and uses. COST ESTIMATE VALIDATION tunnel portals to reduce property impacts. WSDOT had an 80% cash flow PROCESS (CEVP), AND The recommendations implemented for the accuracy target. Highway projects often VALUE ENGINEERING final CEVP workshop in 2010 totaled $310 fell woefully short of this target, which During the initial viaduct replacement million of avoided base cost. resulted in inefficiencies in the use of Environmental Impact Statement The results of both rounds of CEVP funds, increases in the cost of money, and (EIS), which ran 2004-2006, the state modeling were communicated by AWVRP additional costs associated with the sale of evaluated reconstruction and cut and leadership to transportation committees of bonds. The AWVRP was projected to be cover replacements of the seismically- the Washington State House and Senate, as as much as 33% of WSDOT’s cash flow at vulnerable viaduct. In January 2009, the well as the Joint Transportation Committee the peak of construction, and the program Governor, King County Executive, and (JTC). The risk-based estimate results were strived to increase the accuracy of its cash Seattle Mayor recommended replacing the shown with 10%, 60%, and 80% estimate flow forecasts and meet those numbers, central waterfront portion of the viaduct probabilities. WSDOT provided an overview thus helping the state minimize cash flow with a deep bore tunnel. The decision of some of the risks included in the analysis. inefficiencies and frequently hit 90% or created the need for a supplemental EIS. For budget setting purposes, the 60% better accuracy on a monthly basis. Through ESSB 5768, the state committed probability was established. to providing $2.8 billion for the SR 99 CEVP is used primarily during the Lessons Learned: scope elements and directed the state to engineering phase of a project, prior to • Be flexible when balancing project provide updated cost estimates for the construction; however, the process was funding sources and needs. Owners viaduct replacement alternatives, including also adopted for AWVRP to latter stages of must also be prepared to revise funding the proposed bored tunnel. Following this construction to reassess risks and Estimates assumptions or scope to match proposed recommendation, preliminary engineering at Completion (EAC) and better inform funding. and cost estimate development began in stakeholders, including the state legislature • Gain a keen understanding of the rules earnest, building upon earlier parametric and the governor. This modified process is by which funding is disbursed and used cost estimates created for the first EIS known as Cost Risk Evaluation (CRE).

SOURCE APRIL 2020 15 Regular monitoring of risks is essential to maintaining discipline throughout the life of a program. Figure 4 is an example of tracking pre- and post-mitigation response. Risks established during the risk elicitation workshop are shown in the Pre-Response Quantification block and plotted on the heat map according the probability and impact of the risk. Input from the teams responsible for managing the risk assess potential mitigation actions which provide input into the Post-Response Quantification block. Reviews are documented in the Monitoring and Control block on the form.

Lessons Learned: • Develop a project risk register and update it regularly (see Figure 4). • Account for risks and inflation in estimates. • Identify and develop risk management plans. • Engage experts with national and international tunneling experience in urban environments. • Get input from subject matter experts to identify a wide range of risks, even “black swans.” [8] For example, after weighing risk trade-offs, WSDOT paid for a second bearing for the tunnel boring machine (TBM), to mitigate the low probability but high impact risk of the first TBM bearing failing and causing severe schedule delays. • Use value engineering techniques to critically examine project assumptions in order to meet project goals while maintaining safety and functionality. • Make sure the risk and value engineering exercises include not only program implementers but stakeholders from FIGURE 4 Risk Summary where the project will be constructed. • Continue risk management beyond design. Regular, monthly risk register reviews should be supplemented with a periodic, comprehensive probabilistic risk review that encompasses all phases of work.

RESERVE AND CONTINGENCY MANAGEMENT WSDOT makes a distinction between risk reserves and contingency. Risk reserves are held at the program level for addressing quantified risks, whereas contingency is provided to construction projects to address common change order issues. WSDOT Instructional Letter IL 4071.01, “Risk-Based Project Estimate for Inflation Rates, Market Conditions, and FIGURE 5 Reporting: Risk Retirement and Contingency Drawdown

16 APRIL 2020 SOURCE Percentile Selection” provides guidance to record of decision in August 2011. example, Seattle Tunnel Partners modified WSDOT regions for the development and WSDOT’s experience with design- the south portal locations significantly, management of risk reserves for capital build began in the late 1990s, with a pilot within available state right-of-way, to launch projects. IL 4071.01 directs that one risk project in Vancouver, Washington. In 2001, the TBM south of WSDOT’s intended reserve will be established per project or based on the success of the pilot and other location. This minimized impacts on collection of projects, identified by a project positive experiences among departments neighboring properties and the immediately item number (PIN), and will consist of of transportation (DOT) nationally, the adjacent existing viaduct foundations and, the risk dollars identified at the selected Washington State Legislature authorized in turn, reduced the number of utilities that probability percentile from either a Cost WSDOT’s use of design-build. Not long had to be relocated at the south portal. Risk Assessment (CRA) or CEVP analysis. after, with several more of WSDOT‘s In another example, the design-build During design, as risks are addressed projects successfully completed, the contractor, in cooperation with WSDOT, and retired, the values associated with the legislature required the department to managed risk for controlling ground retired risks are drawn down (see Figure consider design-build as the project delivery settlement, induced by activity, 5). When risks are realized, the amount method for any project budgeted at $10 by way of a $20 million “deformation to which they occur is moved into the million or greater. The legislature lowered allowance.” If ground settlements were base budget. Conversely, as new risks this threshold in 2015 to $2 million. minor and caused little to no cosmetic are quantified, they are added to the risk Currently, WSDOT awarded 21 active damage, let alone structural damage, the register. Risks that are configuration issues design-build contracts since 2017. They design-build contractor benefitted by or that meet the trend thresholds are account for over 25% of all WSDOT receiving 75% of the allowance, minus documented and managed through projects, by dollar-award value. repairs. Thus, the allowance worked as an the change control board. Modifications WSDOT’s design-build delivery incentive to encourage careful mining and in scope, when they might occur within approach begins with a Request for excavating and other best practices. each project, are estimated and become Qualifications (RFQ) phase. During By 2016, WSDOT had successfully part of the budget basis. When the project the RFQ phase, prospective teams of delivered 29 design-build projects statewide is awarded and goes to construction, constructors and designers submit and are and had others in the pipeline. So, in 2017, change order contingency is allocated then scored on their team’s previous working WSDOT again chose design-build to deliver to that project. relationships, key individual managers, and the final set of projects for AWVRP. After much firm experience. This phase does not include deliberation, WSDOT packaged three scope Lessons Learned: scoring a team’s approach to executing the elements together in one design-build contract: • WSDOT instruction letter(s) provide proposed scope or the team’s innovative clear direction to capital projects for concepts; that happens later in the Request • Demolishing the viaduct the development and management for Proposal (RFP) phase. Because of the • Backfilling and decommissioning of the of risk reserves. In turn, this provides technically challenging nature of the deep Battery Street Tunnel transparency at a statewide level about bore tunnel and the size of the contract, • Reconnecting the north portal surface the amount of funds identified for risk. only three bidders had the technical ability, streets, which for 65 years had been bisected • Clear division of responsibility and experience, and bonding capability to by the Battery Street Tunnel portal accountability is documented between submit qualifications. program management and projects. In February 2010, WSDOT released Again, project duration was paramount. Allocation of contingency is within the a draft of the bored tunnel RFP, which WSDOT estimated that delivering these control of project managers; risk reserves was finalized in May. The RFP contained final projects as three separate design-bid- are controlled at the program level. the general conditions and technical build projects would have extended AWVRP specifications required of the designer at least another fifteen months. DESIGN-BUILD and contractor. It specified the minimum CONTRACTING roadway dimensions, tunnel liner thickness, Lesson Learned: For WSDOT, design-build was an easy and permissible ground settlement, among While design-build has proven to be an choice. Design-build had already led to other requirements. The general conditions effective delivery method, the many and the highly successful delivery of previous detailed financial incentives; allowances for diverse program stakeholders and their lack WSDOT projects, including the new various issues, such as insurance, Port of of knowledge about design-build proved Tacoma Narrows Bridge. WSDOT Seattle property access, and cost sharing, in to be one of WSDOT’s hurdles. The management knew that a lump sum case ground settlement along the TBM’s tunnel contract provided an opportunity approach could be successful, by allocating path exceeded predictions. In short, these for education in the design-build process design risk and machine operations to the general conditions provided the framework to colleagues at the city and county. The design-builder, while keeping responsibility for best practices for tunnel mining. WSDOT staff administering, reviewing for the subsurface conditions with WSDOT. Besides schedule, the other principal design, and overseeing AWVRP construction Most important for AWVRP was the ability reason design-build benefitted a project like were all seasoned, having worked on multiple to quickly advance the work. For example, in the SR 99 bored tunnel was the necessary design-build projects. Unfortunately, other the case of the SR 99 bored tunnel, WSDOT interface between design and construction agencies needed time to understand the executed the contract and was able to start that could not have been achieved with many nuances of design-build—such as design before the FHWA issued the final traditional design-bid-build delivery. For Quality Assurance/Quality Control (QA/

SOURCE APRIL 2020 17 FIGURE 6 SR 99 Tunnel Alignment

QC) responsibility—and this led to minor before WSDOT certifies right-of-way Temporary construction easements delays in design development and reviews. In acquisitions. For design-bid-build projects, were required where property access was the end, design-build delivery charted the this traditionally occurs before contracts needed by the state and the design-build best course for a successful project, while are awarded but this requirement creates contractor to install building and ground protecting all parties. significant time pressure on the teams. The instrumentation for the purpose of nature of this design-build required some monitoring subsurface movement as the RIGHT-OF-WAY ACQUISITION of the certification to happen post-award TBM passed directly beneath or adjacent to AND CONSTRUCTION due to the identification of real estate a subject property. This was done to inform IMPACTS acquisitions during the final design process. engineers, in real-time, of any ground There will always be third parties affected This was another advantage to design-build. deformation, as well as to protect building by mega projects in urban environments. Technically speaking, the real estate owners’ interests and limit frivolous claims Owners of properties along or adjacent to the effort required either a three-dimensional by property owners over alleged damage. proposed work site may be the most affected subsurface property acquisition (the state This effort was time consuming; over 100 and, thereby, the most difficult to manage. cannot obtain permanent easements across properties were instrumented. However, this In the case of the SR 99 bored tunnel, the private property), a temporary construction step was critical to WSDOT’s success and to corridor alignment, horizontally and vertically, easement, or both. In the case of parcel reducing tort claims. shown in Figure 6, was selected in large part acquisitions, the 56-foot diameter tunnel Hiring skilled appraisers and agents to to minimize the impact on private properties. (mined with a 57.5-foot TBM) required negotiate land acquisitions and temporary A deep tunnel can generally pass beneath a “box” 150 feet tall and 84 feet wide. The easements was one of the biggest challenges. private property with little impact, depending 84 feet was consistent with the city street This is an area of technical and legal savvy that on the subsurface features of a given legally right-of-way, where the tunnel was directly required many consultants. Hiring was done defined tract of real estate (a parcel). At the beneath . The 150 feet vertically from across the Pacific Northwest and the tunnel portals, though, property acquisitions (approximately 50 feet above and 50 feet U.S, because state resources were insufficient. get much more involved. below the TBM) and 84 feet horizontally However, the outside experts were less For the SR 99 project, garnering needed provided a “buffer” around the concrete knowledgeable about Washington State real property rights factored into a nearly $190 tunnel. This additional space provided some estate law and processes, which presented million real estate budget. The project room for error should a property owner some challenges. The state’s use of threat of required the rights to cross private property, extend tie-backs or other foundation elements condemnation also required skilled attorneys albeit usually at great depth, and the rights into the “box” accidentally. Above the tunnel, and administrators. In summary, available, to add instrumentation and to access those the 50-foot buffer provided additional stress skilled workforce were and will continue to instruments during tunneling. WSDOT’s distribution from footing loads above the be a challenge for real estate acquisitions. acquisition of property is governed by tunnel. This was particularly important in the Another challenge was the many out- the Uniform Relocation Assistance and shallower portions of the tunnel alignment. of-state, and even out-of-country, property Real Property Acquisition Policies Act of Where the tunnel was approximately 50–100 owners, a circumstance not fully grasped at 1970. The process is highly prescriptive in feet deep below a parcel, WSDOT placed the outset of the acquisition process. This order to equitably balance the rights and load limit restrictions on future development condition repeatedly lengthened the overall obligations of affected property owners and and on the loading of buildings and process, that is, getting appraisals reviewed, tenants. As the project is partially funded by foundations. These development restrictions offers exchanged, and final negotiations FHWA, federal approvals must be obtained were limited in number, but costly. handled, even getting final papers filed.

18 APRIL 2020 SOURCE Lessons Learned: counties, including Alameda, Santa Clara, management assistance consultant • Resource planning for the number of real Orange, and Los Angeles. Also, programs (PMAC) contract. estate professionals needed to handle a from various separate agencies operating • Realizing that securing such hard-to-find large number of transactions over a dense in those counties, such as the Santa Clara staff might require: and geographically wide area is vital. Valley Transportation Authority, based ◦ Paying higher-than-normal hourly rates • Adequate time must be allowed for in San Jose, and the Los Angeles County to attract desired staff to the program. processing real estate transactions where Metropolitan Transportation Authority. ◦ Global outreach for program delivery property owners do not live locally and or technical talent. Nations that are often corporate entities. To successfully deliver AWVRP, the provided offshore staff included program had to find and attract many , the United Kingdom, Italy, INDUSTRY RESOURCES professionals in fields where available staff and Germany. For large-scale tunneling, AND WORKFORCE was scarce, for example: many experts came from “peer” AWVRP was a major capital delivery program projects in the industry, such as the set in a region with other such programs • Estimators and schedulers in the project Stormwater Management and Road under way and in a metropolitan area with an controls discipline. Tunnel (SMART Tunnel) delivered already substantial capital project workload. • Appraisers, relocation agents, and in Kuala Lumpur, Malaysia. Make In the transportation sector alone in the acquisition specialists (discussed above). sure experts in work visas and tax laws Western United States, programs competing • Tunneling and geotechnical experts, given applied to non-U.S. labor are available for scarce professional staff resources included: the large-scale tunnel being delivered, with to offshore staff. its attendant need to carefully monitor and ◦ Adequate time to find and recruit • Sound Transit’s “ST3” program, a $53.8 control settlement along the tunnel alignment. professional staff. Last-minute requests billion program in the Seattle Metropolitan to secure professional services were Area that plans to add 62 new miles of light Workforce planning began early in doomed in a market where the rail to stations serving 37 additional areas of AWVRP’s capital delivery cycle and would recruitment timeline was measured in a regional system reaching 116 miles. [7] cease only upon program closeout. The weeks or months, not days. • WSDOT’s “Connecting Washington” following planning measures were important: program of transportation improvements Workforce planning required a depth of in Washington State, with an estimated • Development of an organization chart detail and analysis beyond an organization cost over $16 billion. and organizational breakdown structure chart. WSDOT and Mott MacDonald • WSDOT’s State Route 520 Floating that reflected all owner and consultant developed a spreadsheet-based staffing plan Bridge and Landings program another staff. Highlighted were those specialty that organized many data for each open major capital project in the Seattle area. skill sets known to be in high demand. position and each member of the program • California High Speed Rail, a major • Creation of a convenient contract vehicle team. Updates to this plan occurred at least rapid transit capital effort, already under with broad scope that could secure quarterly. The benefits of a data-conscious construction in California’s Central Valley. various types of professional services. approach were many. Besides giving senior • Substantial transportation improvements WSDOT met this need by retaining management advanced notice of staffing from some of California’s “self-help” Mott MacDonald under a project needs, this staffing plan:

FIGURE 7 Employee Workforce Report

SOURCE APRIL 2020 19 • Could be “costed,” with labor rates THE CONFIGURATION AND and management approval on any change applied to individual positions. Thus, CHANGE MANAGEMENT to the baseline.” [1] labor costs could be aggregated at various PROGRAM levels of detail. The staffing plan became AWVRP’s configuration management a QA check on labor estimates derived ESTABLISHING A BASELINE system documented and obtained the proper through the normal estimating process. At the end of the 2009 legislative session, approvals for changes to the approved • Aided planning for program ramp-up the Washington State Legislature passed the baseline of an AWVRP project’s physical and and ramp-down, the most difficult 2009 legislated final budget. This budget functional features. The AWVRP’s definition phases for which to provide professional included the deep bore tunnel and provided of configuration expanded on the AACE labor. Another difficult phase for the baseline against which AWVRP progress International definition to include, but was which to plan professional staff was would be measured. This baseline was the not limited to: the commissioning and start-up phase, starting point for tracking, reporting, and because the tunnel included various change control captured by external reports. • Project termini sophisticated systems and controls. Internally, the first contract packaging plan • Horizontal and vertical alignments • Could assist WSDOT and AWVRP served as the configuration against which • Ramp and roadway geometry consulting firms in planning for an change was initially tracked and served as • Fire; life, and safety systems individual’s follow-on assignment, after the project implementation basis for project • Electrical systems AWVRP concluded. Within WSDOT, scope against which change management • Hydraulic systems such next assignment planning required was managed. This overall process is • Other features that defined the look and discussions among senior staff in outlined in AACE International’s RP 60R- function of the program WSDOT’s Northwest Region. 10, Developing the Project Controls Plan. [2] • Aided in required labor reporting submitted Configuration management provided quarterly to WSDOT’s headquarters. CONFIGURATION CONTROL AND the mechanism by which project changes Figure 7 provides an example of this CHANGE MANAGEMENT were identified; reviewed; evaluated for reporting, whereby staffing drawdowns AWVRP’s configuration control program was cost and schedule impacts; evaluated are plotted against calendar quarters. implemented to manage scope and changes for risks to the project; and controlled across contract packages, throughout the life and incorporated into the project design. Lessons Learned: of the program. Configuration control, as Configuration management was essential • Begin staff planning early. The planning applied to AWVRP, aligns with definitions to ensuring that all parties working on the and forecasting effort should continue provided by AACE through program completion. International: • For consultant labor, create a broad contracting vehicle that provides a “Configuration – A convenient means to find and assign a collection of an variety of specialists. item’s descriptive • Create a staff planning and forecasting and governing tool that collects and manipulates data characteristics, to the individual position level. Review which can be output from this tool regularly. expressed 1) in • Identify scarce skill sets regularly. On functional terms, AWVRP, the management team undertook that is, what quarterly reviews of workforce needs performance the and actions. The process to secure scarce item is expected expertise typically commenced well in to achieve; and 2) advance of their actual need on the program. in physical terms, • In the program labor estimate, use that is, what the somewhat higher labor rates, i.e. 10%- item should look 20% higher than the industry average, like and consist for specialty skill sets that may be more of when it is difficult to attract given the competitive completed.” [1] professional labor market. Such rate increases were set based on discussions “Configuration with members of management most Control – A system familiar with labor rates for given skills. of procedures that • Be prepared to search globally for specific monitors emerging technical talent. Be aware of and be project scope prepared to comply with visa and tax- against the scope related requirements associated with baseline. Requires offshore recruiting. documentation FIGURE 8 Configuration Change Request [3]

20 APRIL 2020 SOURCE design and, ultimately, the construction of environmental checklist to ensure that to be built. Trend management controlled the project, were working to the current potential changes did not impact any the financial and schedule implications project configuration, making sure there commitments in the EIS. Figure 8 shows the resulting from any physical changes. Once were no unintended gaps, overlaps, or form used to ensure that input and review a configuration change was approved, if discontinuities across AWVRP projects. were solicited from all disciplines affected. certain schedule or budget thresholds were Deviations from the contract package The configuration management process, exceeded, the change was advanced through descriptions and preliminary design illustrated in Figure 9, worked in concert the change management process via a trend drawings were brought forth to a change with the trend/change management process management (change control) document. control board for consideration. Review and the WSDOT construction change The trend management program aligned of proposed configuration changes was a order process. Configuration management with the AACE International definition of multidisciplinary effort and included an controlled the physical aspects of what was change control:

“(1) Process of accepting or rejecting changes to the project’s baselines”; “(2) process of implementing procedures that ensure that proposed changes are properly assessed and, if approved, incorporated into the project plan”; and “(3) risk abatement process of accepting or rejecting changes to the project’s baselines, based on predetermined criteria or ‘trigger points.’” [1]

The trend management process monitored changes to the baseline scopes, budgets, and schedules for the AWVRP projects. The trend management process worked in conjunction with the configuration management process, the construction change order approval process, and the risk management process to bring changes that exceeded budget, schedule, and risk thresholds to executive management’s attention. However, trend notices may also have derived from actions outside the configuration management process, for example, moving money from one control account to another. In many cases, these trends were administrative in nature and could be approved by the trend manager. Figure 10 demonstrates the change management process developed for the AWVRP. In summary, configuration changes and change control are essential to providing a FIGURE 9 Configuration Management Process structured, informed process

SOURCE APRIL 2020 21 by which project management, senior management, and executives can understand proposed changes and help document them for a program for which they are ultimately held responsible. To date, there have been almost 700 configuration changes and trends processed. These documents provide a roadmap of scope changes throughout the program’s life.

PROGRESS MEASUREMENT AND REPORTING Progress measurement methods are supposed to provide management with accurate and timely performance metrics. Developing a methodology appropriate for the level of control and reporting that is cost effective requires experience and professional judgment. Inadequate staffing typically results in low level of control which can lead to oversimplification, while generous staffing can provide greater levels of control and measurement but can be costly in terms of labor. The AWVRP project controls team faced the same challenge. An Earned Value (EV) approach was used that was appropriate to the level of control that was budgeted, but it was supplemented with graphics to communicate program performance trends quickly and effectively to senior management.

USING EARNED VALUE PROGRESS MEASUREMENT FIGURE 10 Change Management (Trend) Process Several factors can ensure the success of an earned value management system (EVMS). and those being measured may resist the • Scope must be defined and frozen. First, senior management must support the effective performance of such a system. The project plan must be in place. For earned value approach. Also, they must Senior management must communicate, AWVRP, regional headquarters required communicate the business need for it to that EVMS is not to justify punishing staff. earned value measurements even before the next few levels of management, who Rather, they should clearly communicate the program’s preferred alternative to must participate in, accept, and apply that EVMS measures performance and replace the elevated viaduct had been the results of the EVMS analysis. In a forecasts program issues, leading to proactive chosen. Thus, a key element of program challenging capital delivery environment, corrective actions. scope was unknown yet earned value when seemingly anything can go wrong at A program must meet the following metrics were required of the program any time, a system to measure performance preconditions for EVMS to be developed team. Project scope must not only be will detect such problems quantitatively, and to work properly: defined but frozen, so project controls

22 APRIL 2020 SOURCE staff can develop the quantified is about 10% complete. By that point, refresher training is advised for all project performance measurement baseline. most delivery teams should have adjusted controls staff at the start of the program. • Project estimate and schedule must to the project environment and, hopefully, ◦ Must be expert in the use of their be developed. AACE defines an earned will be working near full effectiveness.[6] software tools. value management system as, “A project • EVMS should be joined by a fully ◦ Must be appropriately sized and progress control system that integrates developed change control system. motivated. Managing and delivering work scope, schedule, and resources AWVRP adopted a configuration control an EVMS on a mega program is a to enable objective comparison of the system and a trend, or change, control challenge and represents the synthesis of earned value to the actual cost and system early in the project delivery cycle many skill sets. The work environment the planned schedule of the project.” as described previously. The approval can be a grinding, constant quantitative [1] If such estimates and schedules of any changes to the project represents and analytical space that does not relax are not competently developed, even an associated change to the project until program completion. if preliminary, the result is a false performance measurement baseline. baseline against which performance • EVMS procedures should be ready Project managers, whose work will be measurements are meaningless. before EV tracking begins. EVMS subject to EV measuring, should be • EV plans must cover a project’s full procedures should be developed and trained appropriately about EVMS duration. The performance measurement ready for use before actual earned value principles and function. They should baseline must cover the entire project measuring and tracking begins. These understand the fundamentals of delivery cycle, from preliminary procedures will form the basis of team what is being measured, under what engineering through testing and training before EVMS is turned on. circumstances, and that they may be commissioning and eventual completion, • Project team must be prepared to required to explain why their team’s as signified by owner acceptance of the support EVMS. Effective support of performance may be falling outside project’s improvements. EVMS augurs an effective implementation. a prescribed measurement threshold. • EV metrics should not be applied too Senior management should reaffirm that early. Every project is different, and this The project controls staff: the purpose of EVMS is not to negatively is especially true of high-value, publicly ◦ Must include experts in scheduling, reinforce workers but to develop and use visible, and risk-intense programs estimating, and cost forecasting. The metrics that keep project delivery on a like AWVRP. The delivery staff will project controls manager must have prior track to success. have a learning curve early in their supervisory-level EVMS experience. assignments, so performance may be ◦ Must be trained specifically in earned • EVMS scope must be supported by erratic. Meaningful EV measurement value concepts. No matter what the contract language covering consultants’ should commence when a scope of work experience level in earned value methods, work. Contract language for consultants must include EVMS-related measurement and reporting requirements. This was especially important on AWVRP, where consultants delivered a significant amount of work scope. • Progress metrics should be simple and objective. Earned value metrics are critical. This data is compared to the planned values and actual costs to reveal variances and determine quantified performance. If the effort to gather this data is cumbersome or complicated, the project team could “burn out” quickly, and EVMS implementation will suffer as a result. [6]

REPORTING Project reporting is important. It should cover not only EVMS metrics but also other performance metrics. It should rely on graphics as much as possible, so senior management can discern intuitively and quickly project status. Reports should include descriptions that identify issues and FIGURE 9 recommend solutions, as opposed to rote Configuration recitations of project status. Details can be Management provided in an appendix for later reference, Process as needed.

SOURCE APRIL 2020 23 Reporting should be flexible. On a major metropolitan area, it was the subject meetings with oversight agencies, and AWVRP, several individuals rotated in and of focused attention by the taxpayers of the development of reports required by out as program administrator. Each program Washington State and individuals holding these entities. Oversight interactions administrator had distinct preferences official and elected positions. involved management and were executed regarding report content and formatting. For AWVRP, oversight came from in accordance with pre-planned schedule The project controls team had to support various sources: milestones. The team avoided last minute changes, as requested. Report graphics scrambles, to the extent possible. should be eye-catching and require little • Elected officials at all levels, from city • Carefully reviewing after-visit reports explanation. Reports should stand on their council members to the Washington prepared by an oversight entity and own. The project controls team should have State Legislature and the Governor. highlighting content that likely at least one-person adept at understanding • Funding agencies, including the Port of required response by AWVRP senior data and designing effective graphics. Seattle and FHWA. leadership. Preparing such responses, Figure 11 shows examples of AWVRP • Expert review panels, which, with as appropriate, and reviewing them for graphic reporting for a few different subject AWVRP, were project delivery experts later delivery, if requested. areas: parking; garage use; and website access. selected by and under contract directly to Figure 5 shows an AWVRP report graphic the Washington State Legislature. These As with other aspects of program delivery, concerning risk. panels delivered reports on AWVRP the development of these robust supporting performance to the legislature on a capabilities enhanced interactions with Lessons Learned: prescribed time schedule. oversight entities: • Earned Value Management Systems: • Citizen-based committees, formed, and ◦ Senior management must support it operating under an official charter. • The project controls team was ready and explain the business need. • Public citizens through the State of with performance metrics and cost and ◦ Scope must be defined and frozen and Washington public disclosure request schedule forecasts. the project plan in place. (PDR) process. • The risk management team maintained ◦ Project estimate and schedule must • Media outlets, such as newspapers, completely populated risk registers. The first be developed. radio and television stations, and blogs, registers’ content reflected periodic risk ◦ EV plans must cover a project’s duration. although having no official status, took review meetings or focused multi-day ◦ EV metrics should not be applied too an intense interest in AWVRP and risk workshops. early. reported on it continuously. • The program change control system ◦ EVMS should be joined by a fully featured a tracking database and stored developed change control system. The program team had to be prepared digital documentation, which were ◦ EVMS procedures should be ready and ready to answer to such oversight. organized in accordance with AWVRP’s before EV tracking begins. Approaches taken on AWVRP to create work breakdown structure. This system ◦ Project team must be prepared positive engagement included: supported a recitation of the technical to support EVMS through prior and management history of the program experience, training, and qualifications. • Designating specific project team members at different levels of detail and served ◦ EVMS scope must be supported to interact with specific oversight groups. as a conveniently available source of by contract language covering • Creating a communications team. The information. consultants’ work. AWVRP communications team was • The program document control system ◦ Progress metrics should be simple and charged with communicating the relied on a robust, industry-standard objective. project “story” to the public. They software application, Open Text’s • Reporting: were an important resource when Content Server, that featured a hierarchy ◦ Make maximum use of graphics. strategizing messages about the of folders and used metadata to rapidly ◦ Use executive-summary level text program and preparing for meetings retrieve documents. The AWVRP team that emphasizes issues and with oversight entities. took advantage of this capability often in recommended solutions. • Adopting an open and transparent communications with oversight entities. ◦ Reports should capture the attention communications style. AWVRP staff of management, be eye-catching, and freely admitted that problems were Lessons Learned: require little or no extra explanation. being faced at different times; but these • Project teams should assign specific ◦ The project controls staff should disclosures were also accompanied by personnel to act as liaisons to oversight include an individual who is expert planned solutions. The program risk groups. Make these relationships long at converting data into effective and register became an important document. term, allowing project team staff to expressive graphics. Problems should be and were, in fact, develop a professional rapport with the presented in the AWVRP risk register, members of the oversight agency. EXPERT REVIEW PANELS along with estimated costs, schedule • Maintain a risk register to share with AND OVERSIGHT impacts, and planned mitigation or oversight groups that documents project AWVRP is a prime example of a high- avoidance or transfer measures. issues as they are encountered, as well value, publicly visible, risk-intense program. • Assigning high priority to team response as the estimated costs, schedule impacts, Because it would forever change the face of to oversight questions, preparation for and planned mitigation efforts.

24 APRIL 2020 SOURCE • Give high priority to involvement with REFERENCES and Documenting the Estimate, oversight entities. Take their involvement 1. AACE International Recommended AACE International, Morgantown, in the project seriously and proactively Practice 10S-90, Cost Engineering WV, latest version. watch for opportunities to educate Terminology, AACE International, 2. AACE International Recommended and keep oversight members abreast of Morgantown, WV, latest version. practice 96R-18, Cost Estimate problems and solutions, performance 2. AACE International Recommended Classification System, As Applied in metrics and cost and schedule forecasts. Practice 60R-10, Developing the Project Power Transmission Line Infrastructure Controls Plan, AACE International, Projects, AACE International, CONCLUSION Morgantown, WV, latest version. Morgantown, WV latest version. The $3.3-billion Alaskan Way Viaduct 3. Alaskan Way Viaduct Replacement Replacement Program is a mega program Program, Configuration Management ABOUT THE AUTHORS delivered successfully. AWVRP was an and Trend Management Guidance. David Sowers, PE, is intensive effort lasting more than a decade 4. Federal Highway Administration, https: with the Washington in a challenging operating environment. //www.fhwa.dot.gov/majorprojects/. State Department of The program involved hundreds of owner 5. Flyvbjerg, B. What You Should Know Transportation. He and consultant staff, representing a variety About Megaprojects and Why: An can be contacted by of technical and management disciplines. Overview, Project Management Journal, sending email to: This program team turned the many lessons Vol. 45, no. 2, pp 6-19, April-May 2014. sowersd@ learned into its “way of doing business.” 6. Jarnagan, H. Lessons Learned On The wsdot.wa.gov The result is a completed landmark project Use of Earned Value Management that forever changed the face of one of Systems: Alaskan Way Viaduct and Harry Jarnagan, PE the United States’ largest cities and is Seawall Replacement Program, Federal CCP, is with Mott already considered exemplary by other Highway Administration, June 25, 2008. MacDonald, LLC. metropolitan areas. 7. Sound Transit. Sound Transit 3 He can be contacted The capital program delivery profession Overview, http://soundtransit3.org/ by sending email to: must make use of these lessons learned, as overview, accessed February 12, 2019. harry.jarnaganjr@ the future holds the challenges presented by 8. Taleb, N.N. The Black Swan, The mottmac.com many more mega projects. This profession Impact of the Highly Improbable, needs to meet society’s demand for high- Random House, 2007. Brian Smith, CCP, quality infrastructure and break the so-called 9. WSDOT. 2012 Financial Plan is with Mott “Iron Law of Mega Projects.” Mega programs Update, SR 99 Alaskan Way Viaduct MacDonald, LLC. are not fated to become management failures, Replacement Project, 2012. He can be contacted always grossly overrunning their budgets. As by sending email to: AWVRP demonstrates, they can be delivered RECOMMENDED READING brian.smith@ successfully and meet their quality, schedule, 1. AACE International Recommended mottmac.com and cost objectives. Practice 31R-03, Reviewing, Validating

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SOURCE APRIL 2020 25 SECTIONNEWS

THE AACE® INTERNATIONAL BULLETIN Section News from Around the World

GREATER CAIRO SECTION The Greater Cairo section held its first collaborative event with the Dispute Resolution Board Foundation (DRBF) on February 16. The Greater Cairo Section introduced AACE International and the DRBF to the audience which consisted predominantly of engineers. AACE International was represented in this event by the section’s president, Waleed El Nemr. The event discussed the types of dispute boards, their effectiveness and the role of engineers (especially ones with AACE project controls certifications) as DB members, with their miscellaneous expertise and potential in resolving disputes. The event was attended by more than 120 people.

Some 120 attended the Greater Cairo Section’s February collaborative event with the Dispute Resolution Board Foundation (DRBF). The event discussed the types of dispute boards, the effectiveness of these boards, the roles of engineers having different expertise serving on these boards, especially if they hold PCP certification from AACE, and the potential for resolving disputes considering these factors.

26 APRIL 2020 SOURCE HAWAII SECTION On Friday, January 10, nineteen AACE Hawaii Section members and guests participated in a construction site visit of the HNL Consolidated Car Rental Facility Phase 2B Project. The project involves the construction of a five-story structure, intended to meet the operational and spatial needs for all the rental car companies conducting business at the Daniel K. Inouye International Airport (HNL). The facility is situated on nearly seven acres of land, bordered by Aolele Street to the north, the Overseas Terminal Parking Structure to the west, the “Arrivals” roadway to the south, and Paiea Street to the east. The facility is situated over the current operational site for five (5) rental car companies (Advantage Rental Car, Avis Rental Car, Budget Rental Car, Hertz Rental Car, and National Rental Car). The whole project is expected to be completed in the fourth quarter of 2021.

The Hawaii Section members conducted a site visit at the HNL Consolidated Car Rental Facility Phase 2B Project. Shown above from left to right are: Jim Ogata, William “Bill” Fernandez, Ging Ging Fernandez, Rod Nagao, Jian Zhou, Brooks Ford, Maelyn Uehara, Chris Kanae, Yashaira Fletcher, Nicki Dockery, Rollin Wakely, Juhee Han, Jeremiah Laguesta, Brandon Leong, Tommy Uno, Alan Davidson, Kevin Bunting, Evan Yamamoto, Marco Cabrera, Michael Saupan, Robert McAlman, and Jorge Aguirre.

NIGERIAN SECTION The Nigeria Section continues to experience growth. Section members represent various agencies of the government. This shows the Nigerian government is supporting and adopting Total Cost Management in the oil and gas industry. This is not limited to cost reduction of its crude oil production, but also reducing the long contracting cycle and the entire value chain. For three consecutive years, the Nigerian Section has been holding annual meetings. And this year we have set up a planning committee for the 2020 Annual meeting that will take place in Lagos, Nigeria. The 2017 conference was also in Lagos. The 2018 conference The third annual Nigerian Section Conference at Garden City, Port Harcourt, Nigeria, included a CCP was at Abuja and the 2019 and CEP pre-certification class and attendees are shown above as they prepare to participate in conference was at Garden City, training to better prepare them to take these two AACE International certification exams. Port Harcourt, in the River State.

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SOURCE APRIL 2020 27 Nigerian Section President, Johnson Awoyomi, shown seated above center wearing the red cap, joins other participants attending the 2020 Nigerian International Petroleum Summit. Awoyomi spoke at the conference about how total cost management can impact the Nigerian oil and gas sectors.

Each conference also featured continuing educational seminars. Continuing education classes included one for the AACE The Section organized the 2019 conference and workshop Certified Cost Professional (CCP) exam preparation was presented in December at Port Harcourt, the Garden City. The theme by Antony Emaviwe, Head of Cost Estimating for Shell Petroleum was, “Project Controls in Nigeria’s Oil and Gas Industry Projects: Development Company, Nigeria, and Gregory Akhibi, Head Project A Development Roadmap for Nigerian Professionals.” Present Controls, Shell Petroleum Development Company, Nigeria. The at the conference were key industry players, representatives from other class was the Certified Estimating Professional (CEP) exam The Ministry of Petroleum Resources (MPR), Nigerian National preparation and was presented by Jones Basuo, CEP. Since 2018, Petroleum Corporation (NNPC), Nigerian Petroleum Investment this is the third time that the Nigerian Section has successfully Management Services (NAPIMS), Nigerian Engineering and organized its own local annual international conference under the Technical Company (NETCO), Shell Petroleum Development leadership of Johnson Awoyomi. The fourth annual conference is Company (SPDC), Nigerian Liquefied Natural Gas (NLNG), media scheduled in Lagos in November 2020. outfits and other private engineering and consulting companies. The Nigerian Section received a Platinum award at the 2019 The Ministry’s team was led by Nkem Agolor, Director, who AACE Conference & Expo. This is a good reflection of section delivered a speech on behalf of the Minister of State for Petroleum growth over the last three years. “We were not only honored Resources. Thirteen other technical staff accompanied the and delighted to qualify for the Platinum section award but also director in attending the conference. Their goals were to develop encouraged to do more as a section,” explains Awoyomi. technical capacity in the field of cost. Nigerian Section President Because of awareness created by the different activities of the Johnson Awoyomi delivered an opening speech and welcomed all Nigerian Section, this cost expertise is constantly sought after by participants. He highlighted the conference objectives as being an those in the industry. At the Nigerian International Petroleum emphasis on the increasing and critical need of project controls in Summit 2020, time was set aside for Section President Johnson nation building; that the section is the right platform for industry Awoyomi to speak on the impact of Total Cost Management in the professionals and students to effective exchange ideas and provide Nigerian oil and gas sector. Awoyomi also conducted a three-day excellent networking opportunities that will foster friendship among session with a group of Nigerian National Petroleum Corporation Section members in Nigeria. He also elaborated on the current (NNPC) and Nigerian Petroleum Investment Management Services industry challenges of the high cost of crude oil production and a (NAPIMS) staff in February 2020 on Cost Estimate Preparation, long contracting cycle that disregards project controls. Reviewing, and Validation of Third-Party Cost Estimates.

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28 APRIL 2020 SOURCE Nigerian Section President, Johnson Awoyomi recently lead a three-day session with a group of Nigerian National Petroleum Corporation (NNPC) and Nigerian Petroleum Investment Management Services (NAPIMS) staff in February. The training was centered around the theme of Cost Estimate Preparation, Reviewing and Validation of Third-Party Cost Estimates.

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SUBMITTING SECTION NEWS We invite all sections to submit news if the photo does not meet the listed quality requirements. AACE and updates to be included in the International Bulletin section of each reserves the right to edit all submissions and/or to refuse to publish any Source issue. Please submit any and all text as a part of the e-mail or as submissions determined by the Managing Editor or the Art Director to a Microsoft Word file attachment. Please submit any photos as individual not meet the standards of the journal. Any appeals of these decisions will attachments in JPG formats. Do not embed photos in Microsoft Word files. have a final decision determined by the Executive Director. For photos to be used, we require either large original files or print size photos at 300 dpi (dots per inch). For photos to be published, they must be If a submission is not included in the designated issue, please e-mail or in focus, of print quality, and of sufficient resolution. call the Managing Editor to ensure that it has not been lost or misplaced. Call or e-mail if you do not receive a confirmation e-mail within 3 business Please include the names and titles of each person shown in any photos. days of submission. Please list names from left to right or refer to those shown as being above left or right. For group photos please list names from left to right, Source has a submission deadline of two months in advance of the issue date. beginning with the front row and working to the back. All submissions should be e-mailed to [email protected]. Please use the official name of Submission Dates Publication Date the Section as approved by the AACE Board when the Section’s charter By Dec. 31 February was approved. Within 2 to 3 business days of submitting a “Section By Feb. 28 April News” items, you should receive a return confirmation e-mail that your By April 30 June submission was received at AACE headquarters. By June 30 August By Aug. 31 October MISSING SUBMISSIONS Generally, all submissions received in the By Oct. 31 December above scheduled times will be published in the listed issue. Items are not held because of space restrictions. There is no waiting list and Any Section representative with questions is advised to e-mail no preference is given to one Section over another. Questions about [email protected] or call the Managing Editor during regular business incomplete submissions or failure to follow these submission guidelines hours, 9 a.m. to 5 p.m. Eastern Standard Time, Monday-Friday, except could delay publication. Text will be published without submitted photos holidays and special closings.

SOURCE APRIL 2020 29 30 APRIL 2020 SOURCE SOURCE AUGUST 2019 31 Corporate Members Corporate Membership is a comprehensive package of benefits designed to encourage companies to develop the skills of their total cost management employees through AACE® International membership.

CORPORATE PARTNERS ARES Project Management LLC Clark Construction Group, LLC www.aresprism.com www.clarkconstruction.com ANTESA SAC www.antesasac.com Ball Aerospace & Technologies CNOOC International www.ball.com/aerospace intl.cnoocltd.com Concremat Engineering and Technology S.A Belstar Inc Comtech Group www.concremat.com.br belstar.com www.teamcomtech.com

EPCM Project Academy Benchmark Estimating Ltd ConocoPhillips epcm.academy/en www.benchmarkestimating.co.uk www.conocophillips.com

Evonik Operations GmbH BHP ~ Previously BHP Billiton Petroleum Corteva Agriscience corporate.evonik.com/en www.bhp.com/our-businesses/petroleum www.corteva.us

MBP Bilfinger, Inc. Crawford Consulting Services www.mbpce.com (Previously Bilfinger Westcon, Inc.) www.crawfordcs.com westcon.bilfinger.com Delta Consulting Group, Inc. www.delta-cgi.com CORPORATE MEMBERS Black & Veatch www.bv.com Department of Veterans Affairs Administrative Controls Management, Inc Brasfield & Gorrie LLC www.va.gov www.acmpm.com www.brasfieldgorrie.com DRMcNatty & Associates, Inc. AECOM Bruce Power drmcnatty.com www.aecom.com www.brucepower.com DuPont Aecon Construction Solutions Inc. Burns & McDonnell www.dupont.com www.aecon.com www.burnsmcd.com Entergy Services AEGION Caixa Economica Federal entergy.com www.aegion.com www.caixa.gov.br/Paginas/home-caixa.aspx Exponent AESA Caliburn International www.exponent.com www.aesa.com.ar/en www.caliburnintl.com Fluor Corporation Albemarle Corporation Cargill, Incorporated www.fluor.com www.albemarle.com www.cargill.com/ Group Technology, a division of Altran Innovacion S.L. Chevron Corporation PRC Sasol South Africa Pty Ltd www.altran.com www.chevron.com/projects www.sasol.com APTIM Nuclear Power Hatch Ltd. www.aptim.com Engineering Corporation www.hatch.com /www.cnpec.com.cn ARCADIS HDR Constructors, Inc. www.arcadis.com/en/global www.hdrinc.com

32 APRIL 2020 SOURCE Hill International, Inc. O’Connell & Lawrence, Inc. Tecolote Research, Inc. www.hillintl.com/en www.oclinc.com www.tecolote.com

HKA Parsons Corporation The Rhodes Group www.hka.com www.parsons.com rhodes-group.com

HNTB Corporation PCM Consulting, Inc. Turner & Townsend www.hntb.com www.pcmconsulting-inc.com www.turnerandtownsend.com

IN-Line Consulting, LLC Planning and Cost Engineering Value Management Strategies, Inc. in-lineconsulting.net Services (Pty) Ltd vms-inc.com www.paceservices.co.za Interpipeline Ltd Williams Companies www.interpipeline.com PMA Consultants, LLC co.williams.com pmaconsultants.com Jacobs Engineering Group Inc WSP USA www.jacobs.com PMSOFT, JSC. www.wsp.com/en-US www.pmsoft.ru JESA www.jesa.africa Quantum Global Solutions qgs.global PUBLIC PARTNERS Jianjing Investment & Consultation Co., Ltd. Revay and Associates Limited Honolulu Authority for Rapid www.jjtz.cn www.revay.com Transportation www.honolulutransit.org Johnson Matthey PLC RIB U.S. Cost matthey.com/en www.rib-uscost.com Manitoba Hydro www.hydro.mb.ca J. S. Held, LLC Rider Levett Bucknall jsheld.com www.rlb.com/en Metropolitan Water Reclamation District of Greater Chicago Karle Infra Private Limited Rising Edge Technologies, Ltd. mwrd.org karleinfra.com risingedgegroup.com NYC Department of Design and Kiewit Savannah River Nuclear Solutions, LLC Construction www.kiewit.com www.savannahrivernuclearsolutions.com www1.nyc.gov/site/ddc/index.page

Koch Industries Inc Scheduling and Information Services, Inc. RB Rail AS www.kochind.com 1sis.com www.railbaltica.org

Land Transport Authority SNC-Lavalin, Inc. www.lta.gov.sg www.snclavalin.com/en Would you like for your company to LyondellBasell Sound Transit be an AACE® Corporate Member? www.lyondellbasell.com www.soundtransit.org CONTACT: Michael Baker International Spire Consulting Group LLC Gina Mazzetti www.mbakerintl.com www.spireconsultinggroup.com/en/ [email protected] homepage 304-296-8444 MOCASystems moca-pm.com Stantec Consulting OR VISIT: www.stantec.com/en web.aacei.org/membership Nautilus Consulting, LLC nautcon.com Sundt Construction www.sundt.com NEXUS Engineering Group, LLC www.nexusegroup.com TC Energy www.tcenergy.com OCMI, Inc. www.ocmi.com

SOURCE APRIL 2020 33 Manager, Certification and Membership Penny Whoolery AACE® +1.304.2968444 x1104 [email protected] Senior Credentialing Analyst International Valerie Smith +1.304.2968444 x1112 Contacts [email protected] Certification Administrator Sara Peters +1.304.2968444 x1115 BOARD OF DIRECTORS [email protected] Coordinator, Member Services President Vice President Gina Mazzetti Douglas W. Leo, CCP CEP FAACE Hon. Life International Regions +1.304.2968444 x1105 [email protected] Mohammed Rafiuddin, CCP PSP [email protected] [email protected] Manager, Education President-Elect Teri Jefferson, CMP Christopher P. Caddell, PE CCP DRMP Vice President +1.304.2968444 x1120 [email protected] Marketing Board [email protected] Kristy Kastner Director, Governance, Past President [email protected] Marketing, and Meetings John J. Ciccarelli, PE CCP PSP FAACE Jennie Amos [email protected] Vice President +1.304.2968444 x1106 Membership Board [email protected] Vice President Jaimin R. Mehta Business Development Coordinator Administration [email protected] Joanna Boggs Scott A. Galbraith, PE CFCC +1.304.2968444 x1122 [email protected] [email protected] Director, Technical Guidance Vice President HEADQUARTERS STAFF Christian Heller Finance +1.304.2968444 x1117 Patrick M. Kelly, PE PSP Executive Director/ [email protected] [email protected] Chief Executive Officer Managing Editor Charity A. Quick, MBA CAE CIA CCT Marvin Gelhausen Vice President +1.304.2968444 x1102 +1.304.2968444 x1111 Technical Board [email protected] [email protected] Larry R. Dysert, CCP CEP DRMP FAACE Manager, Accounting and Administration Hon. Life Janice L. Johnson, CPA [email protected] +1.304.2968444 x1107 [email protected] Vice President Accounting Assistant/Accounts Receivable Education Board Molly Burrow Shoshanna Fraizinger, CEP +1.304.2968444 x1118 [email protected] [email protected] Accounting Assistant/Accounts Payable Vice President Open Certification Board Manager, Information Technology Brian Evans, DRMP EVP PSP Ryan Schwertfeger [email protected] +1.304.2968444 x1119 [email protected] 1265 Suncrest Towne Centre Dr Vice President Technical Operations Coordinator Morgantown, WV 26505-1876 North American Regions Greg Carte +1.304.296.8444 Les McMullan, FAACE +1.304.2968444 x1116 Fax: 304.291.5728 [email protected] [email protected] web.aacei.org

34 APRIL 2020 SOURCE ENERGIZE YOUR

Becoming a Certified Cost Professional CAREER is a proven way to enhance your value to employers and clients by providing an impartial endorsement of your knowledge and expertise. SPARK CHANGE, BECOME A

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AACE® International Recommended Practice 100R-19: CONTRACT CHANGE MANAGEMENT – As Applied in Engineering, Procurement, and Construction

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SOURCE APRIL 2020 35 ARE YOU HOSTING AN EVENT THAT WOULD BE OF INTEREST TO AACE® MEMBERS? Please submit items for future calendar listings to editor@ aacei.org at least 60 days in advance of desired publication. Upcoming Events APRIL 7 CMAA SOUTHERN CALIFORNIA CHAPTER 101 Park Avenue, New York Risk Management and Successful Project [email protected] Delivery Seminar Long Beach Marriott, 8 a.m. to 10:30 a.m. 12 28TH ANNUAL CMAA SOUTHERN [email protected] CALIFORNIA AWARDS GALA Hyatt Regency Long Beach, 5 p.m. to 8:30 p.m. 7 CMAA SOUTHERN CALIFORNIA [email protected] CHAPTER DINNER SB 1 Funding and Upcoming Projects 12-13 EMERGING WATER TECHNOLOGY The Westin Bonaventure, 5:30 p.m. to 8 p.m. SYMPOSIUM 404 South Figueroa Street, Los Angeles, CA American Society of Plumbing Engineers (ASPE) [email protected] San Antonio - www.aspe.org

9 CONSTRUCTION NETWORK JUNE VIP BREAKFAST Hollywood Burbank Airport 3-5 AEC NEXT AND SPAR 3D CONFERENCE Capital Program Update McCormick Place, Chicago, IL City Club, 555 S. Flower, 51st floor www.spar3d.com/event/spar-aec-next Los Angeles, CA construction-network.net 9 CONSTRUCTION NETWORK LEGAL LEGAL SEMINAR Design-Build 16 SEAOI MIDWEST BRIDGE SYMPOSIUM Delivery Best Practices for Success Maggiano’s, 111 W. Grand Ave., Chicago, IL Long Beach Marriott, 4700 Airport Plaza Drive seaoi.org Long Beach, CA construction-network.net 23 CONSTRUCTION NETWORK VIP BREAKFAST The LA World Airports 23 CONSTRUCTION NETWORK Capital Programs Updates VIP BREAKFAST Westin Bonaventure, 8 a.m. to 9:30 a.m. Los Angeles Aerial Rapid Transit 404 South Flower St., Los Angeles, CA Westin Bonaventure, 8 a.m. to 9:30 a.m. construction-network.net 404 South Flower St., Los Angeles, CA construction-network.net 28 CMAA SOUTHERN CALIFORNIA CHAPTER Inland Empire Capital Project Updates 28-JUL1 AACE INTERNATIONAL Breakfast of Champions CONFERENCE & EXPO Inland Empire Utilities Agency, 8 a.m. to 10:30 a.m. Chicago Hilton [email protected] web.aacei.org/conferences-events

28 THE STRUCTURAL ENGINEERS FNDN. SEPTEMBER The Hoover Dam Bypass 13 AMERICAN SOCIETY PLUMBING 5 p.m. reception / 6 p.m. lecture ENGINEERS (ASPE) CONVENTION & EXPO 150 N. Riverside Plaza, Chicago, IL New Orleans, LA - www.aspe.org seaoi.org 12 THE 2020 CMAA SOCAL FOUNDATION M AY GOLF CLASSIC 5-6 SECOND ANNUAL MODULAR, PREFAB Old Ranch Country Club AND CONSTRUCTION TECH SENATE [email protected]

36 APRIL 2020 SOURCE FIND MORE ONLINE AT www.aacei.org

AACE® EVP CERTIFICATION STUDY GUIDE, 3RD EDITION International Sean T. Regan, CCP CEP FAACE - Editor, 2015 This study guide is intended to assist you in your study and review of the overall topics Online Store as one step toward successful Earned Value Professional certification. The outline SKILLS AND KNOWLEDGE OF COST provides a listing of the terms you should ENGINEERING, 6TH EDITION know & topics for which you should have Dr. Makarand Hastak, PE CCP, Editor, 2015 a good understanding of how to apply the This publication provides information on a concepts to solve problems. Each chapter also con-tains sample wide range of cost engineering subjects exercises, which test your knowledge of that chapter's concepts. and will prove to be a valuable resource to any individual seeking professional Digital Download - US$50.00 member/US$100.00 nonmember growth or pursuing an AACE International Paper Version available through our Amazon.com link certification. This publication offers six sections comprising 34 chapters of THE TOTAL COST MANAGEMENT content on topics such as cost estimating, project planning, value FRAMEWORK, 2ND EDITION engineering, and strategic management, to name a few. H. Lance Stephenson, CCP FAACE, Editor, 2015 Digital Download - US$50.00 member/US$150.00 nonmember The TCM Framework is a structured, Paper version available through our Amazon.com link annotated process map that explains each practice area of the cost engineering field in CCP CERTIFICATION STUDY GUIDE, the context of its relationship to the other 2ND EDITION practice areas including allied professions. It Dr. Makarand Hastak, PE CCP, Editor, 2016 provides a process for applying the skills and The AACE International CCP Certification knowledge of cost engineering. Study Guide, 2nd Edition is designed as a companion workbook to the Skills Digital Download - Free for members/US$150.00 nonmember and Knowledge of Cost Engineering, Paper Version available through Amazon.com 6th Edition (S&K 6). In conjunction with S&K 6, this study guide will assist COST ENGINEERS’ NOTEBOOK individuals in their preparation for the CCP This CD-ROM is an important reference for any project or cost Certification examination and develop the general knowledge professional. It includes data and procedures related to basic skills a cost engineering professional is expected to have. This study and knowledge that all cost engineers should possess, extensive guide offers insight into the key topics found in each chapter of material on capital and operating cost estimation, and papers in S&K 6 and provides practice questions and exercises to develop four subject areas: cost control, planning and scheduling, project knowledge in individual areas. management, and economic analysis and business planning.

Digital Download - US$50.00 member/US$100.00 nonmember Digital Download - US$50.00 member/US$100.00 nonmember Paper version available through our Amazon.com link AACE INTERNATIONAL RECOMMENDED PRACTICES PSP CERTIFICATION STUDY GUIDE, Cost Engineering Terminology; Cost Estimate Classification 1ST EDITION System; Estimate Preparation Costs in the Process Industries; Peter W. Griesmyer, Editor, 2008 Project Code of Accounts; Required Skills and Knowledge of a Cost This study guide is intended to assist you in Engineer; Roles and Duties of a Planning and Scheduling Engineer; your study and review of the overall topics Profitability Methods; plus many more. as one step toward successful Planning and Scheduling Profes-sional certification. Digital Download - FREE for members/US$100.00 nonmember The outline provides a listing of the terms you should know & topics for which you 2019 AACE INTERNATIONAL should have a good understanding of TRANSACTIONS how to apply the concepts to solve problems. Each chap-ter also contains sample exercises, which test your knowledge of that Digital Download - US$90.00 member/ chapter's concepts. Additional sample questions are provided in US$115.00 nonmember. an appendix.

Digital Download - US$50.00 member/US$100.00 nonmember Paper version available through our Amazon.com link NEXT MONTH IN

Progress Measurement for Owners FIRST PRESENTED AT THE 2019 CONFERENCE AND EXPO AS OWN.3222 BY FERDINAND R. KARBOWSKI, JR. PSP

The Role Owner Project Control Plays in Contract Administration FIRST PRESENTED AT THE 2019 CONFERENCE AND EXPO AS OWN-3196 BY CHRISTOPHER F. MICHALAK, JR., PSP AND PAUL G. WILLIAMS

Benchmarking As-Built Lags FIRST PRESENTED AT THE 2019 CONFERENCE AND EXPO AS PS-3141 BY RONALD M. WINTER, PSP FAACE

Articles announced for publication in the COST ENGINEERING Journal are subject to change.

Subscriptions to the COST ENGINEERING Journal are included with AACE® International membership. For full membership benefits and discounts, become an AACE International member today by visiting: web.aacei.org/membership

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