Best Practices in Project Delivery Management
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SCAN TEAM REPORT NCHRP Project 20-68A, Scan 07-01 Best Practices in Project Delivery Management Supported by the National Cooperative Highway Research Program The information contained in this report was prepared as part of NCHRP Project 20-68A U.S. Domestic Scan, National Cooperative Highway Research Program. SPECIAL NOTE: This report IS NOT an offi cial publication of the National Cooperative Highway Research Program, Transportation Research Board, National Research Council, or The National Academies. Acknowledgment The work described in this document was conducted as part of NCHRP Project 20-68A, the U.S. Domestic Scan program. This program was requested by the American Association of State Highway and Transportation Officials (AASHTO), with funding provided through the National Cooperative Highway Research Program (NCHRP). The NCHRP is supported by annual voluntary contributions from the state departments of transportation. Additional support for selected scans is provided by the U.S. Federal Highway Administration and other agencies. The purpose of each scan and of Project 20-68A as a whole is to accelerate beneficial innovation by facilitating information sharing and technology exchange among the states and other transportation agencies, and identifying actionable items of common interest. Experience has shown that personal contact with new ideas and their application is a particularly valuable means for such sharing and exchange. A scan entails peer-to-peer discussions between practitioners who have implemented new practices and others who are able to disseminate knowledge of these new practices and their possible benefits to a broad audience of other users. Each scan addresses a single technical topic selected by AASHTO and the NCHRP 20-68A Project Panel. Further information on the NCHRP 20-68A U.S. Domestic Scan program is available at http://144.171.11.40/cmsfeed/TRBNetProjectDisplay.asp?ProjectID=1570. This report was prepared by the scan team for Scan 07-01, Best Practices in Project Delivery Management, whose members are listed below. Scan planning and logistics are managed by Arora and Associates, P. C.; Harry Capers P.E. is the Principal Investigator. NCHRP Project 20-68A is guided by a technical project panel and managed by Andrew C. Lemer, Ph.D., NCHRP Senior Program Officer. James C. McMinimee, P.E., Utah DOT AASHTO Co-Chair Shari Schaftlin, FHWA, FHWA Co-Chair Thomas R. Warne, P.E., Tom Warne and Associates, LLC, Principal Author Sidonia S. Detmer, PMP, Virginia DOT Mark C. Lester, P.E., South Carolina DOT Gerard F. Mroczka, P.E., Indiana DOT David B. Nichols, P.E., Missouri DOT Joyce N. Taylor, P.E., Maine DOT Alan T. Teikari, P.E., FHWA Connie Yew, P.E., FHWA Disclaimer The information in this document was taken directly from the submission of the authors. The opinions and conclusions expressed or implied are those of the scan team and are not necessarily those of the Transportation Research Board or its sponsoring agencies. This report has not been reviewed by and is not a report of the Transportation Research Board or the National Research Council. Scan 07-01 Best Practices In Project Delivery Management REQUESTED BY THE American Association of State Highway and Transportation Officials PREPARED BY James C. McMinimee, P.E., Utah DOT Gerard F. Mroczka, P.E., Indiana DOT AASHTO Co-Chair David B. Nichols, P.E., Missouri DOT Shari Schaftlein, FHWA, FHWA Co-Chair Joyce N. Taylor, P.E., Maine DOT Thomas R. Warne, P.E., Tom Warne and Alan T. Teikari, P.E., FHWA Associates, Principal Author Connie Yew, P.E., FHWA Sidonia S. Detmer, PMP, Virginia DOT Mark C. Lester, P.E., South Carolina DOT SCAN MANAGEMENT Arora and Associates, P.C. Lawrenceville, NJ October 2009 The information contained in this report was prepared as part of NCHRP Project 20-68A U.S. Domestic Scan, National Cooperative Highway Research Program. SPECIAL NOTE: This report IS NOT an official publication of the National Cooperative Highway Research Program, Transportation Research Board, National Research Council, or The National Academies. BEST PRACTICES IN PROJECT DELIVERY MANAGEMENT 7 Table of Contents Executive Summary....................................................................................... ES-1 Overview............................................................................................................... ES-1 Summary of Initial Findings and Recommendations............................................ ES-1 Project Management...................................................................................... ES-2 Performance Measures.................................................................................. ES-4 Contracting Practices..................................................................................... ES-5 Community Involvement................................................................................. ES-5 Planned Implementation Activities................................................................. ES-6 1.0 Introduction............................................................................................. 1-1 Study Objectives................................................................................................... 1-1 Focus Areas.......................................................................................................... 1-2 Study Organization and Approach........................................................................ 1-2 Scan Team Composition....................................................................................... 1-3 Implementation..................................................................................................... 1-3 2.0 Findings and Report Overview.................................................... 2-1 3.0 Project Management........................................................................... 3-1 PM Structure......................................................................................................... 3-1 Use of Single or Multiple PMs........................................................................ 3-1 Centralized Versus Decentralized Project Management Functions................3-3 Training............................................................................................................3-3 Certification of PMs........................................................................................ 3-3 Use of Consultants......................................................................................... 3-3 Tools................................................................................................................3-4 Shared Leadership................................................................................................ 3-6 Leadership Extends Below the CEO.............................................................. 3-6 Risk Management................................................................................................. 3-7 Schedule Impacts Due to the NEPA Process................................................. 3-7 Cost and Schedule Estimating Risks..............................................................3-7 Project Delivery Methods Used to Mitigate Cost and Manage Risks................... 3-9 Use of Consultants......................................................................................... 3-10 Investment in GIS and Data Management Tools............................................ 3-10 Maintaining Core Competencies.......................................................................... 3-14 4.0 Performance Measurement............................................................ 4-1 Performance Management System...................................................................... 4-1 Arizona............................................................................................................ 4-1 vi TABLE OF CONTENTS Florida............................................................................................................. 4-1 Missouri.......................................................................................................... 4-1 Virginia ........................................................................................................... 4-3 Washington..................................................................................................... 4-7 Utah................................................................................................................ 4-13 Contemporary Public Accountability.................................................................... 4-15 5.0 Contracting Practices........................................................................5-1 Innovative Construction Contracting.................................................................... 5-1 Florida............................................................................................................. 5-1 Missouri.......................................................................................................... 5-1 Phoenix........................................................................................................... 5-2 Arizona............................................................................................................ 5-2 Utah................................................................................................................ 5-3 Washington.....................................................................................................5-3 Innovative