AASHTO SCODAASHTO SCODTask Force ReportTask Force Report

Preconstruction Engineering Management Preconstruction Engineering Management (PCEM)(PCEM)

June 2003June 2003

Robert Pratt, Vice ChairmanRobert Pratt, Vice Chairman

Our FocusOur Focus

Develop guidance in Develop guidance in the management of the management of the preconstruction the preconstruction engineering engineering process process

Managing for QualityManaging for Quality

Defining QualityDefining Quality Developing QualityDeveloping Quality Assessing QualityAssessing Quality

Engineering ManagementEngineering Management

The overall processThe overall process Characteristics of a Characteristics of a

good Management good Management systemsystem

Tracking/scheduling Tracking/scheduling systemssystems

Consultant UsageConsultant Usage TrainingTraining Currently used Currently used

systemssystems

Current Work Status of 1991 Guide Current Work Status of 1991 Guide ReviewReview

WHAT WE HAVE DONE:WHAT WE HAVE DONE: Identified portions which need to be Identified portions which need to be

updated updated Developed web based questionaire Developed web based questionaire Obtained input from SCOD (94% Obtained input from SCOD (94%

response rate)response rate) Prepared some examples of our Prepared some examples of our

findingsfindings

Questions related to Several Questions related to Several General AreasGeneral Areas

Organizational Organizational Structure Structure

Project Project Management Management PracticesPractices

Project Project Development Development Processes Processes

Computer Computer Systems and Systems and Software Software

Streamlining Streamlining Use of Use of

Consultants Consultants Performance Performance

Measures Measures

For Example:For Example:

Here are some Preliminary Here are some Preliminary Findings Related to the Use of Findings Related to the Use of

ConsultantsConsultants

Use of ConsultantsUse of Consultants

0

2

4

6

8

10

12

14

16

18

20

< 25% 25-50% 50-75% > 75%

Total # of Projects

Total Construction$'s

Num

ber

of States R

eport

ing

Do you utilize a financial Do you utilize a financial incentive/disincentive program for incentive/disincentive program for

engineering services? engineering services?

0

5

10

15

20

25

30

35

# of States

Incentive

Disincentive

Both

Neither

Typically, what is your annual Typically, what is your annual expenditure for consultant expenditure for consultant

engineering services related engineering services related to the preconstruction to the preconstruction

engineering process (design, engineering process (design, plan preparation, etc.)?plan preparation, etc.)?

Annual Expenditure for Consultant Services

0

1

2

3

4

5

6

7

8

9

# of States reporting

Less than $1 Million$1-10M$10-25M$25-50M$50-75M$75-100M$100-150M$150-200MMore than $200 Million

Current Work Status of 1991 Guide Current Work Status of 1991 Guide Review – Cont’dReview – Cont’d

WHAT WE WILL DO:WHAT WE WILL DO: Provide each state with a summary of Provide each state with a summary of

all responses all responses Provide access to each states’ Provide access to each states’

individual responseindividual response Identify trends which may be of valueIdentify trends which may be of value Identify issues which may need to be Identify issues which may need to be

addressedaddressed

Managing ConsultantsManaging Consultants

Establishing Establishing Consultant ProgramsConsultant Programs

Preparing ContractsPreparing Contracts Selecting Selecting

ConsultantsConsultants Managing Managing

ConsultantsConsultants Etc.Etc.

Current Work Status of 1996 Guide Current Work Status of 1996 Guide Review.Review.

We have created an unedited list of We have created an unedited list of possible issues related to Consultant possible issues related to Consultant usageusage

We are seeking input from the SCOD We are seeking input from the SCOD regarding the areas most in need of regarding the areas most in need of emphasisemphasis

Areas considered include:Areas considered include:

Issues related to consultant usageIssues related to consultant usage

– Costing, i.e., overhead ratesCosting, i.e., overhead rates– IndemnificationIndemnification– Incentives/disincentivesIncentives/disincentives– Collaborative/interactive negotiationsCollaborative/interactive negotiations– Selection processSelection process– Location preferenceLocation preference– Brooks BillBrooks Bill– How errors and omissions are addressedHow errors and omissions are addressed

Issues related to consultant usage Issues related to consultant usage – Cont’d– Cont’d

– Application of errors and omissions clause in Application of errors and omissions clause in contractscontracts

– Quality controlQuality control– Cost schedulingCost scheduling– AccountabilityAccountability– PS&E/Bid preparationPS&E/Bid preparation– Feed back process documentationFeed back process documentation– State practice on master contracts and/or on-State practice on master contracts and/or on-

call contractscall contracts– Task ordersTask orders– Scope negotiationsScope negotiations

We seek your input We seek your input

To identify issues that are most To identify issues that are most importantimportant

To develop guidance and best To develop guidance and best practices informationpractices information

Task Force ReportTask Force ReportPreconstruction Engineering Preconstruction Engineering

Management (PCEM)Management (PCEM)

Thank You.Thank You.