PROJECT MANAGEMENT
CM 321
Mechanical Systems
February 1st & 6th,
2007

Introduction
Maria Boyer
Construction Manager
University Mechanical Contractors, Inc
Experience
• 17 years in Mechanical Industry
• 3 years in General Contracting

WHAT IS SPECIALTY CONTRACTING?
z “The BIG THREE”
–
M - Mechanical
–
E - Electrical
–
P - Plumbing

M
Mechanical Systems z Mechanical system can represent 15% - 40% of the overall cost of a project.
z HVAC - Heating, Ventilation & Air Conditioning z Temperature Control Systems z Building Automation Systems z Fire & Life Safety Systems z Plumbing Systems

E Electrical Systems z Power Wiring z Lights z UPS Systems (Uninterrupted Power Supply) z Communication Wiring z Data Wiring z Fire & Life Safety Systems

P Plumbing Systems z Sanitary Waste z Domestic Water z Storm Drainage z Medical Gases z Natural Gas z Lab Waste

What is Project Management?
Management of:
–
Scope
–
Time / Schedule
–
$Resources (People, Material, Finance$)

Project Management for Mechanical Contractors:
--

-- How is it Unique… z z z z z z
Diversity of Projects
System Integration with Building
Components (Structural & Arch)
Expanded Responsibilities
Self Perform Work – Labor Relations
Technical Component
Owner/Developer Relationships

Project Management
Responsibilities z z z z z z z z z
Risk Management
Financial Management
Document Management
Resource Management
Coordination / Scheduling
Estimating
Scope Control
Quality Control
Customer Relations

Primary Responsibility..
Risk Manager
“Manage the Project by effectively communicating the contract with all parties and mitigating risks throughout the construction and closeout process.”

The Big C’s
“Communicate..
Clarify..
Confirm”

ACTIVITY

Project Management Cycle z Pre-Construction z Construction z Close-Out

Three Primary
Project Delivery Approaches z Plan / Spec z Design Assist z Design Build

Delivery Method
Timeline Distinctions
TIMELINE
DELIVERY METHOD 1st Qrt 2nd Qrt 3rd Qrt 4th Qrt 1st Qrt 2nd Qrt 3rd Qrt 4th Qrt
Plan / Spec Design Design Design
Bid
Build Build Build Build
Design Design Design
Bid
Build Build Build Build
Design Build Design Design Design
Bid
Build Build Build Build

Scope Management
“Provide what you committed to provide within the parameters of the bidding documents and submitted bid proposal.”
PM Required Tools z Bid Proposal Letter z z
Bid Plans and Specifications
Bid Budget Estimate z z z
Schedule
Contract
1 st Tier Contract From
Owner

Contract Review
Review upon Receipt
–
–
–
Bid Scope Proposal Letter
Bid Documents: Plans; Specifications; Schedule
Post Bid – “Clarifications”
Review for Discrepancies Between Bid & Contract
–
–
–
–
Contract scope defined
Schedule
Plans and Specification Documents Listed
Terms and Conditions
(“ The Small Print” )

Contract Terms & Conditions
Important to Mechanical Contractors z Notice Requirements (Sample) z Change criteria z Change of schedule or delay by others z Dispute resolution z Payment z Schedule of Values z Retainage

Notice
Protecting the Rights of Your Company z Event Occurrence z Rough Order of Magnitude $Price (ROM) z Final Price with Back-Up

ACTIVITY
Review Sample
Notice Requirement Matrix

End of this segment

Review Feb. 1st
Key Discussion Points z z z z z z
What does MEP stand for?
What type of structure do you have if there is no MEP?
What percentage range of a projects total cost can the
Mechanical system represent?
What is the primary responsibility of a Project Manager?
What are the three project delivery approaches ?
What is the most significant difference between the three
Project delivery approaches?
z z z z z
Conceptual; Schematic; Design
Development; Permit and
Construction represent the five typical stages of what?
The Project Management Cycle is comprised of what three phases?
Name a key review item that a
Project Manager must make upon receipt of the contract ?
What are notice requirements and what is their impact?
What is ‘ flow-down of contract terms’ ?

Schedule Management z z z
Know your Scope
–
Proposal; Plans; Specifications;
Contract
Understand General
Contractor’s Schedule
–
Is it complete? Is it feasible?
–
Does it adequately allow for completion of mechanical activities?
Identify milestones for mechanical activities
–
–
Project start date and completion date
Integrated activities of other trades

Scheduling Benefits z Communication tool z Record document of contractor’s intent z Assists in estimating project costs z Develops framework for planning phases z Risk management tool z Maximizes construction sequencing z Productivity measurement tool.
z Resource management both at the project & corporate levels

Resource Management
“Successful Project Managers have a keen insight and ability to manage people, material and financial ‘resources’.”

Turnover Meetings z What is a Turnover
Meeting?
z Stages Turnover
Meetings Occur?

Keys to Successful Turnover
Between Team Members.
Communicate the Overall Intent of the Project: z z z z z z z
Scope
Documents – Plans / Specs / Addendums
Estimate / Budget
Schedule
Team Players
Commitments
Materials / Methods

Material / Equipment Management z Purchase Orders / Subcontracts
–
Subcontract: Labor Service
–
Purchase Order: Product

Submittals z What do they mean?
–
Impact as a contract documents z What are they for?
–
–
–
–
Engineer
Crew
Purchasing
Owner z What do good ones look like?

ACTIVITY
Review Submittal Document

Financial Cost Management z Work In Progress Schedule (WIP)
Forecast cost to complete z What Type of Costs?
z Why Is It Important?

Cost Codes
“Breaking the project down into manageable parts”
–
Labor
–
–
Equipment / Material
Subcontractors
–
Committed Costs
–
Forecasting

Labor Management z Labor Budgets z Cost Codes
–
–
By Area
By Type z Crew Schedules z Labor Forecasting

Project Management
Project Cycle
Identifying and Resolving
Risks Throughout the
Project Cycle.
–
–
–
Pre-Construction
Construction
Close-Out

Project Cycles
PM Roles &
Responsibilities
Pre-Construction Construction
Contract
Turn-Over
Meeting
Scope / Terms
Conditions
Estimating / Sales
T.O
PM
Notice
Requirements
PM T.O
Field
Production
Material /
Equipment
Submittals
Close-Out
Retainage / Lien
Detailing Shop
Drawings /
Installation / Startup
PM / Field T.O
Estimating / Sales
Operation &
Maintenance /
Owner Training
Financial Cost
Management
Budgets – Labor /
Material / Equipment
Forecasting /
Labor Productivity
+/- $Profit

End of this segment