Value Based Project Delivery: Best Value Business Model Kenneth T. Sullivan, PhD, MBA Arizona State University
Value Based Project Delivery:Best Value Business Model
Kenneth T. Sullivan, PhD, MBA Arizona State University
Goals1. Minimize Cost
2. Minimize Cost by becoming More Efficient
3. Become More Efficient in three ways:
– Hire people who know what they are doing
– Preplan before the contract is signed
– Measure for positive accountability
4. Teach the thinking, concepts, tools, and processes to organizations
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Goals (typical - Owner)
• Be able to get what you paid for and be able to prove it – Demonstrate VALUE!
• Enhance preplanning and performance measurement techniques
• Add “Best Value” as another tool in your toolbox
• Have higher levels of accountability / breakdown organizational silos
• Become a “Client of Choice”
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Proj
ect
Org
aniz
atio
nal
20 Years | 250+ Publications | 100+ Funded Partners
2000+ Projects | $6+ Billion Procured
InformationTechnologynetworkingdata centershardwareCOTS softwareERP systems
help desk serviceseProcurement
FacilityManagementmaintenancelandscapingsecurity servicebuilding systemsindustrial movingwaste managementenergy management
custodialconveyancepest control
Health Insurance/Medical Services
Manufacturing
Business/Municipal /University Servicesdiningmulti-media rightsfitness equipmentonline educationdocument managementproperty managementaudiovisualcommunications systemsemergency response systemslaundry
material recyclingbookstoresfurniturefinancial services
Construction/Design/Engineeringlarge gcinfrastructuremunicipallaboratoryeducationhospitalfinanciallarge specialty
small gcrenovationrepairmaintenanceroofingdemolitiondevelopmentsupply chain
DBBCMARDBIDIQJOCLow BidIPD
Strategic Partners & Efforts
Fulbright Scholarship-University of BotswanaBV tests
RMITTeaching IMTPBSRG platform
Tongji University
7+ yearsInfra/IT/Equip€4B+
MalaysiaComplete Supply Chain
United States -70+ clients37 states
Canada13 clients5 provinces
What Percent of RFP’s Are 100% Accurate?
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Who Should Know More About
Performing/Delivering the Services Required?
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It Is More Important For The Vendor To Know What To Do Than It Is For Client To Know What The Vendor Should Do
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Vendor 1
Vendor 2
Vendor 3
Vendor 4
High
Low High
Low High
Low High
Low
Impact of Minimum Requirements
Vendor 1Vendor 2Vendor 3Vendor 4
High
Low
Owners“The lowest possible quality
that I want”
Vendors “The highest possible value
that you will get”
Minimum
Problem with Traditional Approach
High
Low
Maximum
Which of these Proponents brings the client organization the most risk?
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Vendor 1
Vendor 2
Vendor 3
Vendor 4
High
Low High
Low
What we have seen…
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Client
Vendor
Vendor
Vendor
Vendor
Vendor
What we have seen…
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Client
Vendor
Vendor
Vendor
Vendor
Vendor
What we have seen…
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ClientVendor
What we have seen…
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Client Vendor
Client PM Vendor PM
“The Greatest Risk that I always face, is how to
accomplish all of the things that our sales team promised
we could do.”
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What is different…
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Client
Vendor
Vendor
Vendor
Vendor
Vendor
P/P/P
What is different…
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Client Vendor
Client PM Vendor PM
Plan
A Leader’s Objectives
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Minimize cost, increase efficiency
“not just transfer risk...but minimize
risk”
Supply Chain mentality“Win-Win”
Minimize risk of non-
performance “High Client
Satisf.”Minimize the need for client management, direction, and
decision making
Vendors maximize their profits by being more efficient
Reduce Cost
Becoming a Client of Choice• Vendors want to send their best people to
compete on your projects
• Open, Honest, Fair, Transparent
• Allow Clarification, Planning, and Coordination Before the Contract is Signed
• Drive Accountability through Performance measurement
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Best-Value Model
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[Insert Name Here] Model
Best Value Model
Best Value Model
Value-Based Selection• Hiring or selecting who will create the plan and
execute it
• The quality of the plan and its execution is directly linked to the individuals creating it and doing the work– Quality of Plan = Minimization of Risk & Cost
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Filter 1Proposal
Evaluations
Filter 2Interview
Key Personnel
Filter 4Cost
ReasonablenessCheck
Filter 5Pre-Award &Clarification
Project ExecutionRisk Reporting & Close Out Rating
Filter 3Prioritization
(Identify Best Value)
Cont
ract
Aw
ard
Evaluation Criteria- Price / Cost / Fee- Project Capability- Risk Assessment- Value Added- Past Performance
Information (PPI)
Short List prior to
Interviews (if necessary)
Pre Award Activities- Training- Kickoff Meeting- Plan & Clarify- Summary Meeting
Total Evaluation Scores are
determined
Decision Matrix to confirm Selection of
the potential Best Value Proponent
Project Execution- Weekly Risk Report- Director Report- Performance Meas.- Close Out Ratings
Best Value Process
Copyright Arizona State Univ. 2013
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Selection – Value Based PropositionSelection dictates the maximum capacity to achieve a quality plan
Procurement methodologies to identify expertise:• Risk and Value focused RFP Process• Simple, brief, anonymous evaluation process• Evaluation of key project personnel
– Proven Past Performance Information– Ability to identify, prioritize, and minimize risk– Interviews of project delivery personnel– Focus on specific project needs– Minimize marketing information
• Cost/Financial
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Factors For Success
• Fair (state/follow rules)
• Open (no “prequalification” / open to all with experience)
• Impartial and Transparent (minimize evaluator bias / share your budget / provide debriefing)
• Efficient (minimize efforts)
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Request For Proposal (RFP)
• Contents:– Current / Existing conditions– Desired outcomes / Objectives– Proposal requirements and selection criteria
• Education describes how the vendor must think (paradigm shift)
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RFP
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RFP / Solicitation• Use existing RFP document and add Best-Value language
• Does not change contract language
• Does not change design / specs
• Always provide your budget
• Always provide your schedule
• Have legal review
• Have an educational meeting
RFP Intent
Defensive Document
VS
Enabler of Value Creation
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Should We Issue the Budget?• The owner wants the best-available option that meets
the requirements.
• Requirements are:– Time constraints– Cost constraints– Expectations - Needs/Req/Quality
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Should We Issue the Budget?• Yes
Filter 1Proposal
Evaluations
Filter 2Interview
Key Personnel
Filter 4Cost
ReasonablenessCheck
Filter 5Pre-Award &Clarification
Project ExecutionRisk Reporting & Close Out Rating
Filter 3Prioritization
(Identify Best Value)
Cont
ract
Aw
ard
Evaluation Criteria- Price / Cost / Fee- Project Capability- Risk Assessment- Value Added- Past Performance
Information (PPI)
Short List prior to
Interviews (if necessary)
Pre Award Activities- Training- Kickoff Meeting- Plan & Clarify- Summary Meeting
Total Evaluation Scores are
determined
Decision Matrix to confirm Selection of
the potential Best Value Proponent
Project Execution- Weekly Risk Report- Director Report- Performance Meas.- Close Out Ratings
Best Value Process
Copyright Arizona State Univ. 2013
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3 Written SubmittalsBlind Evaluations: standard templates, no modifications, and no names.
Risk Assessment
= risks you don’t control
2 pages each, 6 pages in total
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Project Capability
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Project Capability Template
• Plan 1– We will use our 20 years of experience in working with mechanical
systems to minimize the risk of the heating and cooling system design.
• Plan 2– We have identified the design of the heat/cooling system as a risk. It has
not been used before in the area. Will ensure that the system performance and installation is verified in the pre-award period.
– We have bid using best rated mechanical contractor in the area (rated at 9.8 out of 10.0, next best rated 9.1)
– Mechanical contractor identified modifications to the design to improve output and sustainability of the system with the following impacts (mechanical system cost minimized by 15% - see VA#1)
– Mechanical system will be provided by one manufacturer, and will be commissioned by the manufacturer, contractor, and general contractor, who will take full responsibility of commissioning the system
Example of SolutionsRisk: Design of Heating/Cooling SystemType: Project Capability
• Plan 1– We will work with the user to minimize the impact of noise from
demolition.
• Plan 2– We have planned to demolition during off hours and weekends. This
will have a slight impact on our cost (less than 1%), but the impact to customer satisfaction justifies this.
– We will also install rubber sheets on the floors to diminish noise and vibrations.
– Both solutions can be performed within your budget. – Both solutions have been used on multiple previous projects w/ high
levels of customer satisfaction (9.4/10).
Example of SolutionsRisk: Noise from DemolitionType: Project Capability
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Risk Assessment
Risk Assessment
= risks you don’t control
Risk Assessment Template
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Typical Risk Assessment Template
Example of Solutions Risk: Loss of Radio Flagship in Major MarketType: Risk Assessment• Plan 1
– We will work very hard to maintain excellent affiliate relationships. If we lose a radio station (e.g. it changes its format) we will move quickly to replace the lost station. If we cannot quickly replace a flagship station, we can be very creative and could even consider purchasing all local inventory from a new flagship station.
• Plan 2– In the past 10 yrs, on over 50 accounts, 7 radio stations format changes
have occurred. The following solution is optimal.– We own and will maintain two radio contracts covering the area, where
signals can be switched if required. The flagship station will be the station with the stronger signal and greater coverage.
– If a station is lost we will have a equal replacement within 2 months. If within two months a replacement is not contracted we will purchase inventory from another station or discount the cost of an inventory purchase and add it to our payments to the client.
• Plan 1– Coordination with [water company] is critical. We will
coordinate and plan with [water company] as soon as the award is made to make sure that we get water to the site to irrigate the fields.
• Plan 2– We will coordinate and schedule the water with [water
company]. However, based on past experience there is a high risk they will not meet the schedule (the water company does not meet schedule over 90% of the time).
– We will have temporary waterlines setup and ready to connect to the nearby fire hydrant to irrigate until [water company] is ready.
– We will also have water trucks on-site if there is problems with connecting the lines.
Example of Solutions Risk: Getting water to the siteType: Risk Assessment
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Value Added
Value Add Plan1. Provide ways to keep project at or below budget
– Modifications to requirements to meet budget– Specific cost ($) savings– Supported by metrics (high performance)
2. Increase customer satisfaction
3. Increase performance
Value Added Template
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Typical Value Added Template
Example: Value Added Items• Idea: Purchase “Concurrent Licenses” instead of “Named Licenses”
• Why: In a “Named Licensing” model, you must purchase a license for every user and only that particular user can access the software. If that named user is in meetings, on vacation, or not using the system, the license cannot be utilized. In a “Concurrent Licensing” model, the system loans out the licenses to users as they log in. If a user is inactive, the server releases the license and allocates the license to the next user.
• Expected Benefit: The advantage of the concurrent licenses is that the Agency will not have to purchase licenses that are not being used, which can result in approximately 20%-30% savings in cost.
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Past Performance Information• PPI will be collected on the critical Entities:
– Firm/Key Firms– Project Manager (Individual)/Team Leader(s)– Key Subs or Suppliers and Other Key Individuals
• Each Entity must prepare and submit a list of references, customer surveys, and Past Performance Information Scores
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VendorENTITY
Prepare and Send Survey Questionnaires to Past Clients Step 2
Step 3Collect/Receive Completed Surveys
Prepare Reference ListStep 1
Enter data into Reference ListStep 4
Package all material (Reference List and Surveys) and SubmitStep 5
Financial Proposal/Bid Cost• Dependent on
project type
Financial Proposal (VGS)• Vendor generated
solution
Filter 1Proposal
Evaluations
Filter 2Interview
Key Personnel
Filter 4Cost
ReasonablenessCheck
Filter 5Pre-Award &Clarification
Project ExecutionRisk Reporting & Close Out Rating
Filter 3Prioritization
(Identify Best Value)
Cont
ract
Aw
ard
Evaluation Criteria- Price / Cost / Fee- Project Capability- Risk Assessment- Value Added- Past Performance
Information (PPI)
Short List prior to
Interviews (if necessary)
Pre Award Activities- Training- Kickoff Meeting- Plan & Clarify- Summary Meeting
Total Evaluation Scores are
determined
Decision Matrix to confirm Selection of
the potential Best Value Proponent
Project Execution- Weekly Risk Report- Director Report- Performance Meas.- Close Out Ratings
Best Value Process
Copyright Arizona State Univ. 2013
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Filter 1Proposal
Evaluations
Filter 2Interview
Key Personnel
Filter 4Cost
ReasonablenessCheck
Filter 5Pre-Award &Clarification
Project ExecutionRisk Reporting & Close Out Rating
Filter 3Prioritization
(Identify Best Value)
Cont
ract
Aw
ard
Evaluation Criteria- Price / Cost / Fee- Project Capability- Risk Assessment- Value Added- Past Performance
Information (PPI)
Short List prior to
Interviews (if necessary)
Pre Award Activities- Training- Kickoff Meeting- Plan & Clarify- Summary Meeting
Total Evaluation Scores are
determined
Decision Matrix to confirm Selection of
the potential Best Value Proponent
Project Execution- Weekly Risk Report- Director Report- Performance Meas.- Close Out Ratings
Best Value Process
Copyright Arizona State Univ. 2013
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Best Value Interviews:Identifying Expertise
1. Why were you selected for this project?
2. How many similar projects have you worked on? Individually and as a Team?
3. Describe a similar project you have developed/worked on to the current project.
4. What is different about this project from other projects that you have worked for?
5. Draw out the process for this project by major milestone activities.1. Identify, prioritize, and how you will minimize the risks of this project.2. What risks don’t you control? How will you minimize those risks?3. What do you need from the client and when do you need it?
6. How are you going to measure your performance during the project?
7. What value do you bring to the project in terms of differences based on dollars, quality, expertise, or time?
• If buying a product, demos are done here
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Selection Model
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Selection Case Study
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Filter 1Proposal
Evaluations
Filter 2Interview
Key Personnel
Filter 4Cost
ReasonablenessCheck
Filter 5Pre-Award &Clarification
Project ExecutionRisk Reporting & Close Out Rating
Filter 3Prioritization
(Identify Best Value)
Cont
ract
Aw
ard
Evaluation Criteria- Price / Cost / Fee- Project Capability- Risk Assessment- Value Added- Past Performance
Information (PPI)
Short List prior to
Interviews (if necessary)
Pre Award Activities- Training- Kickoff Meeting- Plan & Clarify- Summary Meeting
Total Evaluation Scores are
determined
Decision Matrix to confirm Selection of
the potential Best Value Proponent
Project Execution- Weekly Risk Report- Director Report- Performance Meas.- Close Out Ratings
Best Value Process
Copyright Arizona State Univ. 2013
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Best Value Model
How to Clarify a PlanWhat is it / Why is it important?
• Period of time allotted before work begins to the entity doing the work:
– Present their project/service plan
– Set a plan for its delivery / clarify that their plan is accurate
– Identify the risks and issues that could cause the plan to deviate• Identify what you don’t know and when you will know it and
how the plan could change based upon what you discover• Set plans to minimize those risks from occurring• Address all the concerns and risks of the client
How to Clarify a Plan What is it / Why is it important?• Period of time allotted before work begins to the entity doing the work:
– Know how they are being successful and adding value (measurement)• What metrics you will use and how you will report them• What is the current baseline condition we are comparing against
– Identify what you need from the client and have a plan for getting it
– Have completely aligned expectations between all parties so everyone knows what is going to transpire and what they are supposed to do
– Coordinate the schedule
Clarification / Preplanning PeriodSt
art
Very High Level
Cost Verification
Included in Proposal
Excluded from Proposal
Major Assumptions
Major Client Risks/Concerns
High Level
Project Work Plan
Client Risks/Concerns
PA Schedule
Uncontrollable Risks
Response to all risks
Roles and Responsibilities
Value Added Ideas
Coordination
Review Functionality
Technical Level
Performance Reports / Metrics
Additional Documentation
Technical Details
Project Schedule
High level demos
PA Document
End
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Clarification / Preplanning Period
Impact of Clarification/Pre-Award (General Services Administration)
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No CRITERIA Traditional RFP ASU-BV
1 Number of projects analyzed 11 10
2 Total awarded cost $14,244,385 $9,994,887
3 Total awarded schedule 1,822 1,373
4 Percent awarded cost below budget 4.4% 6.0%
5 Average time RFP Release to Contract 68 days 78 days
6 Average BV-PA duration (days) 0 7
7 Average Overall Change Order Rate 50% Decrease8 Average Overall Project Delay Rate 38% Decrease9 GSA Satisfaction Rating of Contractor/Job 34% Increase
For within BV projects, also tested “<1 week” PA vs “>1 week” PA̶ Longer PA had 33% lower change order rate (73% reduced overall)̶ Longer PA had 69% lower delay rate (73% reduced overall)
Clarification & Preplanning Case Study
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Best Value Model
Filter 1Proposal
Evaluations
Filter 2Interview
Key Personnel
Filter 4Cost
ReasonablenessCheck
Filter 5Pre-Award &Clarification
Project ExecutionRisk Reporting & Close Out Rating
Filter 3Prioritization
(Identify Best Value)
Cont
ract
Aw
ard
Evaluation Criteria- Price / Cost / Fee- Project Capability- Risk Assessment- Value Added- Past Performance
Information (PPI)
Short List prior to
Interviews (if necessary)
Pre Award Activities- Training- Kickoff Meeting- Plan & Clarify- Summary Meeting
Total Evaluation Scores are
determined
Decision Matrix to confirm Selection of
the potential Best Value Proponent
Project Execution- Weekly Risk Report- Director Report- Performance Meas.- Close Out Ratings
Best Value Process
Copyright Arizona State Univ. 2013
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Measured Environment• Must be simple and dominant
• Must be for the purposes of positive accountability
• Transparency and openness
• Measuring against a plan (or expectation created by the individual/team doing the work)
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Weekly Risk Report System• Excel Spreadsheet that is setup by the Client and sent to the vendor
once Award/NTP has been issued
• Vendor must submit the report every week (Friday) until project is complete
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Unforeseen Risks
PERFORMANCE SUMMARY• Vendor Performance• Client Performance• Individual Performance• Project Performance
PROJECT PLAN• Risk• Risk Minimization• Schedule
WEEKLY REPORT• Risk• Unforeseen Risks
METRICS• Time linked• Financial• Operational/Client Satisfac.• Environmental
Measurement of Deviation from the ExpectationManagement by Risk Minimization
Project ManagementCreating a Measured Environment:
• Weekly Risk Report– Tool for documenting risk that impacts the project– Measurement in terms of cost, schedule, and client expectation
• Director’s Report– Overall performance summary of multiple projects running
simultaneously
• Performance evaluation– Client closeout evaluation of vendor performance– Accountability metric updates Past Performance Information
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U of MN Objectives• The UMN has a goal to be recognized as a top research institution in the
world
• In 2005, CPPM partnered with the PBSRG (ASU) to implement the PIPS Best Value Process
• CPPM’s Objectives of the Best-Value Program are to:– Contract to high performers– Respond faster to customer needs– Increase performance (on time, on budget, high quality)– Increase efficiency of procurement (spend taxpayers money more
efficient)– Create a fair and open process for all vendors
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• Award Analysis:– Number of Best-Value Procurements: 161– Awarded Cost: $50.6M (11% below average cost)– Average Number of Proposals: 4– Projects Where Best-Value was also Lowest Cost: 53%– 85% of projects were awarded to vendor with highest / second
highest RAVA Plan (7.3 vs 5.9)
• Performance Information:– Contractor Impacts: 0% Change Orders / 4% Delay– Vendor post project rating: 9.6– Average Contractor Increase in Profit: 5%
Current Results
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PM 1 PM 2 PM 3 PM 4
Procurement Officer 1 Procurement Officer 2
Director
Contractor 1
Contractor 2
Contractor 3
Contractor 4
Contractor 3
Contractor 6
Contractor 1
Contractor 8
Contractor 9
Contractor 7
Contractor 7
Contractor 2
Contractor 4
Contractor 8
Contractor 9
Contractor 2
Program Report
Director 1 Director 2
PM 1 PM 2 PM 3 PM 4
Vice President
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Report – Overall Program
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Directors Report
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TEAM 1 (President /
University / Admin)
TEAM 2Academic Health
Center
TEAM 3Provost College
1 Total Number of Projects 19 14 52 Percent of Projects Procured Using PIPS 79% 86% 80%3 Total Awarded Cost: $5,359,995 $2,821,005 $2,353,7614 Average Number of Risks per Project 3 8 12
5 Overall Owner Impacts (Time & Cost) 7.7% 41.3% 41.1%6 Owner Change Order Rate 0.6% 3.4% 20.0%7 Owner Delay Rate 7.2% 37.8% 21.1%8 Percent of Projects without Owner Cost Changes 63% 36% 80%9 Percent of Projects without Owner Delays 68% 50% 80%
10 Overall Contractor Impacts (Time & Cost) 8.1% 19.6% 14.8%11 Contractor Change Order Rate 0.1% 0.1% -0.8%12 Contractor Delay Rate 8.0% 19.6% 15.6%13 Percent of Projects without Contractor Cost Changes 95% 93% 100%14 Percent of Projects without Contractor Delays 79% 79% 60%
15 Total Number of Completed Projects 4 2 116 Total Number of Client Surveys Returned 3 2 117 Percent of Projects Evaluated by Client 75% 100% 100%18 Average PM Post Project Rating of Contractor 6.75 10 1019 Average Client Post Project Rating of Contractor 7.7 8.5 8.020 Average Client Post Project Rating of CPPM 10.7 8.5 7.0
Contractor Impacts
Owner Impacts
Satisfaction Ratings
General Overview
Report – End Users
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Report – Internal PM’s
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No ContractorTotal
Number of Projects
Total Awarded Cost:
Owner Change Order Rate
Owner Delay Rate
Vendor Change Order Rate
Vendor Delay Rate
Percent of Late Reports
Vendor Performance
1 Contractor 118 3 $ 721,965 0.3% 18.1% 0.2% 66.8% 53% 120%2 Contractor 119 3 $ 220,002 0.7% 10.4% 0.0% 0.0% 69% 69%3 Contractor 120 1 $ 269,850 9.4% 303.0% 0.0% 18.2% 47% 65%4 Contractor 104 3 $ 459,225 1.6% 2.7% 0.0% 18.8% 37% 56%5 Contractor 121 1 $ 241,575 0.0% 21.9% 2.7% 50.0% 0% 53%6 Contractor 105 8 $ 1,611,015 0.3% 32.9% 0.0% 16.3% 32% 49%7 Contractor 106 9 $ 1,280,362 2.2% 31.1% 0.7% 3.2% 35% 39%8 Contractor 122 3 $ 367,650 0.0% 79.1% 0.0% 1.4% 37% 38%9 Contractor 107 1 $ 178,440 0.0% 0.0% 0.6% 11.4% 25% 37%
10 Contractor 123 2 $ 3,227,182 14.9% 0.0% -0.6% 5.4% 30% 35%11 Contractor 108 2 $ 327,295 0.0% 135.4% 0.0% 0.0% 32% 32%12 Contractor 124 1 $ 69,218 3.5% 0.0% 0.0% 0.0% 31% 31%13 Contractor 125 3 $ 1,150,738 1.9% 7.3% 0.0% 4.2% 26% 30%14 Contractor 109 5 $ 534,095 2.0% 23.2% 0.0% 0.0% 29% 29%15 Contractor 126 1 $ 323,000 3.3% 3.4% 0.0% 6.8% 22% 29%16 Contractor 110 1 $ 308,882 1.2% 24.8% 0.0% 0.0% 27% 27%17 Contractor 127 7 $ 1,793,355 3.8% 13.6% 0.0% 0.0% 26% 26%18 Contractor 128 4 $ 2,956,800 1.3% 1.7% 0.0% 12.2% 11% 23%19 Contractor 129 6 $ 1,319,789 2.2% 16.2% 0.0% 11.0% 9% 21%20 Contractor 111 4 $ 1,096,707 0.1% 0.0% 0.0% 9.8% 10% 19%21 Contractor 112 1 $ 446,100 0.0% 6.9% 0.0% 0.0% 15% 15%22 Contractor 113 3 $ 552,815 5.1% 29.4% 0.0% 7.0% 8% 15%23 Contractor 114 2 $ 1,841,157 13.0% 215.8% 0.0% 0.0% 13% 13%
Report – Vendors
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Report – Yearly Analysis
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Report – Top 10 Riskiest Projects
No Project Awarded CostAwarded Duration
Overall Change Order Rate
Overall Delay Rate
Percent of Late Reports
Risk Analysis Factor
PM Director
1 Mayo Remodel Suite A652 $ 269,850 66 9% 321% 47% 377% Wycliffe Waganda Gary Summerville
2 Barn Clean Renovations $ 269,000 80 2% 166% 60% 229% Wycliffe Waganda Justin Grussing
3 WBOB Remodel Suite 150 $ 273,100 99 1% 96% 37% 134% Pete Nickel Gary Summerville
4 Vet Sciences Third Floor $ 96,930 49 3% 86% 28% 116% Pete Nickel Gary Summerville
5Weaver Densford College of Pharmacy
$ 90,862 28 2% 25% 80% 107% Pete Nickel Gary Summerville
6 PWB Remodel Suite 6-240 $ 127,338 82 17% 23% 64% 104% Steve Bailey Gary Summerville
7 PWB Room 7-158B $ 46,504 30 0% 0% 100% 100% Pete Nickel Gary Summerville
8Oak Street Parking Surveillance
$ 246,802 74 0% 0% 100% 100% George Mahowald Justin Grussing
9 Snyder Bldg Exterior Door $ 219,000 121 -4% 81% 22% 100% Wycliffe Waganda Justin Grussing
10 Heller Hall Renovation $ 1,593,561 254 29% 0% 50% 79% Matt Stringfellow Justin Grussing
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Report – Analysis of Risks
Risk CategoryNumber of
RisksImpact to
CostImpact to Schedule
Percent Impact to
Cost
Percent Impact to Schedule
1) Client Impacts 114 $660,369 1,200 59% 46%Client Scope Change / Decision 111 660,369$ 976 59% 37%
Client Requested Delay 3 -$ 224 0% 9%
2) CPPM Impacts 135 $329,425 885 30% 34%Design Issue 48 189,876$ 230 17% 9%
CPPM Issue (Codes / Permits) 36 46,140$ 170 4% 7%
CPPM Issue (Energy Mgmt) 2 47,533$ 30 4% 1%
CPPM Issue (Hazardous / Health & Safety) 8 35,407$ 118 3% 5%
CPPM Issue (NTS) 8 10,018$ 64 1% 2%
CPPM Issue (Contract / Payment) 11 -$ 132 0% 5%
CPPM Issue (Other) 22 451$ 141 0% 5%
3) Contractor Impacts 43 $21,005 411 2% 16%Contractor Issue 11 -$ 101 0% 4%
Contractor Oversight of Design 9 21,005$ 38 2% 1%
Contractor Issue with Supplier / Sub 23 -$ 272 0% 10%
4) Unforeseen Impacts 19 $102,544 111 9% 4%311 1,113,343$ 2,607
Measurement Case Study
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Risk Encounters by Stakeholders
High-Performing PM’s vs. Traditional PM’s
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Project Schedule
PM 1 (RM Score 4.2)
PM 2 (RM Score 3.9)
PM 8 (RM Score 2.9)
PM 9 (RM Score 2.5)
Original Completion Date
Vision• Partner with progressive and innovative
organizations and people
• Move industry towards value-based, preplanning, and measured (accountable) environment
• Implement and enhance best value concepts, approach, and tools
• Provide education, research, and assistance
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Comments / Questions
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W W W . P B S R G . C O M