PROJECT CONTROLS REPORT

December 15, 2008

Submitted by the Accelerated Bridge Oversight Council pursuant to

Section 17 of Chapter 233 of the Acts of 2008

Respectfully submitted by the Structurally Deficient Bridge Improvement Program

Coordination and Oversight Council to the chairs of the Joint Committee on
Transportation, the Joint Committee on Bonding, Capital Expenditures and State Assets
and the House and Senate Committees on Ways and Means, pursuant to section 17 of
chapter 233 of the Acts of 2008.

ACCELERATED BRIDGE PROGRAM

PROJECT CONTROLS

EXECUTIVE SUMMARY

In May 2008, Governor Deval Patrick introduced the $3 billion Accelerated Bridge
Program (ABP) to reduce the Commonwealth’s growing backlog of structurally deficient
bridges. The Accelerated Bridge Program will dramatically improve the health of
Massachusetts bridges and create thousands of jobs. At the same time, taxpayer dollars
will be efficiently spent, eliminating or reducing construction cost inflation and the
expensive deterioration that comes with time. By completing projects sooner, the
Commonwealth will avoid losing critical dollars to inflation. To ensure the goals of the
program are achieved, new program and project controls are being implemented by the
Massachusetts Highway Department (MassHighway), the Department of Conservation
and Recreation (DCR) (collectively, the “Agencies”) and the Oversight Council charged
with coordinating the program. This report describes the state-of-the-art cost, schedule,
and quality management practices that will govern this program. The intense focus on
streamlining project delivery, adoption of innovative design, construction, and project
management techniques promise to make the Accelerated Bridge Program a
transformative initiative that will yield far-reaching improvements extending beyond the
next eight years and across state government.

Central to the mission of the Accelerated Bridge Program is the requirement for
transparency and accountability in all aspects of program management. As a result, cost
and schedule controls will go beyond minimum industry standards for project delivery
and include an ongoing focus on public reporting. Chapter 233 of the Acts of 2008,
which authorizes the Accelerated Bridge Program, specifically requires the
implementation of effective project controls to ensure adequate tracking and reporting of
program progress, cost and schedule. The controls described in this report will
themselves be continuously improved so that over the next eight years, the controls and
reports will evolve to meet the challenges presented. The data and reports generated
through these controls will guide critical program management decisions aimed at
delivering projects on-time and on-budget and provide the public a clear view of the work
performed and the Commonwealth’s return on investment.

The Program Controls described in this report were developed over the past several
weeks and are based on a review of best practices from other state programs, agency
expertise, industry best practices and were prepared with the goal of meeting the public
reporting requirements for the program. MassHighway contracted with Keville
Enterprises, Inc. (KEI), to review current agency internal practices and recommend

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improvements to such practices with regards to the on-time, on-budget provisions of the
Accelerated Bridge legislation. KEI published dozens of cost and schedule options in a
draft report dated November 1, 2008. In order to address the volume and complexity of
the report, three working groups were assembled to address three categories of
observations and recommendations.

1. Project Controls – Design Schedule

2. Project Controls – Construction Schedule
3. Project Controls – Budget and Cost

The three working groups were comprised of MassHighway staff that is intimately
knowledgeable in the current operations and procedures of MassHighway. A
representative of DCR participated in each working group and a representative of KEI
served as the facilitator. The ABP management team empowered these individuals to
carefully investigate, assess and debate the options in the draft report. Each working
group was tasked with the development of a list of cost and schedule recommendations or
control measures to adopt.

The cost and schedule recommendations were classified into four categories:

• Recommendation(s) already being practiced by the Agencies.

• Recommendation(s) that mirrored current practices with modifications or
improvements.
• Recommendation(s) that were not being practiced by both Agencies, but should
be adopted.
• Recommendation(s) had some merit but required further information or review.

The working groups completed their tasks by November 24, 2008. Final
recommendations were approved by ABP senior management for inclusion in this Project
Controls Report.

It is important to note that the control and reporting requirements contained in the
legislation are extremely aggressive, requiring reporting of detailed project level cost and
schedule information very early in the program, and generally establishing a goal that at
least ninety percent of the bridges in the ABP will be completed on time and on budget.
Every effort has been made to meet these requirements while also delivering the program
in an effective and business-like manner. Best management practices dictate that
successful performance measurement begins with well-structured goals based on accurate
data and assumptions. Inherent to the construction process is the refining of data and
assumptions as projects are scoped and design progresses. Project delivery goals to be
used for performance management are therefore more accurately set at the point of 75%
complete design. Continuous monitoring and reporting throughout the program will
reflect both the progress that is being made and the level of confidence to be accorded
project goals for cost and schedule.

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This report is divided into four major sections: 1. Cost Control; 2. Schedule Control; 3.
Construction Quality; and 4. Implementation. Each of these sections contains specific
recommended project control measures for implementation on the ABP. Some of the
measures should be implemented at the project level, and some should be implemented at
the program level. When fully implemented, as a whole, these integrated measures will
provide a project controls system that will allow for effective cost and schedule
monitoring, control, and reporting on the ABP.

COST CONTROL

Section 1 of this Report, Cost Control, provides recommended cost control measures.
These cost control measures are categorized as: Budget and Reporting; Program Cost
Control; Construction Cost Estimating; and Contract Cost Management measures.

Budget Control & Reporting

A program as large as the ABP must have cost control measures in place to enable the
development of realistic project and program level budgets, and to effectively monitor
and control those budgets. This report recommends specific control measures that, when
implemented, will meet this requirement. These specific measures include guidelines for:

• developing realistic budgets;

• monitoring and controlling budgets;
• developing budget reports that will meet the reporting requirements of Chapter
233 of the Acts of 2008;
• developing and monitoring key budget performance indicators;
• implementing a cost control software system to enhance budget control
capabilities;
• detecting budgetary trends;
• routine periodic review of key budgetary issues; and
• implementing a monthly budget status reporting system.

Achievement of these measures will provide the Agencies with an effective budget
control and reporting system for the ABP.

Program Cost Control

One of the primary goals of the ABP will be to satisfy the legislative requirement to
ensure that at least 90 per cent of bridges expected to be completed in years 2009 to 2011
are completed on-time and on-budget. This report provides recommended cost control
measures which, when implemented, will support the achievement of this goal. These
recommended measures include guidelines for:

• cost containment initiatives;

• the use of peer reviews to control cost and schedule;
• quarterly project management public briefings to foster transparency;

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 • internal monthly program control meetings;
• identifying and monitoring areas of potential cost growth;
• forecasting potential cost growth associated with change orders and claims;
• estimating and monitoring program overhead costs;
• implementing a design-to-cost program;
• incorporating federal agency guidelines for accounting for cost contingencies;
• accounting for cost escalation;
• developing program level cost contingencies;
• developing contract level cost contingencies;
• monitoring and accounting for market price fluctuations; and
• recognizing and avoiding potential schedule delays and their associated costs.

Construction Cost Estimating

Generating reliable and accurate cost estimates throughout the entire cycle of the
Accelerated Bridge Program is vital to the Program’s Cost Control Program. All
construction cost estimates for Accelerated Bridge Program projects must be developed
in a consistent and systematic manner. This report provides specific guidelines for
developing structured construction cost estimates, as well as cost estimating quality
control and quality assurance procedures.

The most effective approach to cost estimating is to develop estimates that are based on
the way that the project will be constructed, otherwise referred to as “bottoms-up” cost
estimating. This involves developing the crews, equipment, and production rates that
would be used to construct the project and developing the estimate based on this
information. This approach to cost estimating results in an estimate that reflects a
buildable approach to the work, while at the same time building in a constructability
check. Another benefit of this approach to cost estimating is that the crew, equipment,
and production rate information that is developed can be easily translated into a project
construction schedule that is integrated with the cost estimate. This early linking of
project cost and project schedule fosters effective cost and schedule control throughout
the life of the project. This bottoms-up approach to cost estimating will be used on all
ABP projects.

Contract Cost Management

In addition to specific cost management and control measures at the program level,
effective management and control of costs will require specific measures at the individual
project contract level as well. Accordingly, several measures which have proven to be
effective in the industry must be implemented on each ABP project contract. These
measures include Constructability Reviews, Claims Avoidance Reviews, Contract
Trending, and effective Contract Administration. This report contains recommended
procedures for each of these measures. When combined, all of these measures will allow
the Program to optimize management and control of costs at the project contract level.

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 SCHEDULE CONTROL

Section 2 of this Report, Schedule Control, provides recommended Schedule Control

measures. Effective schedule control includes control of design schedules, construction
schedules, and the program level schedule. Design and construction schedules must be
developed to accurately reflect the true durations of design and construction activities on
each project, so that when they are rolled up to the Program level, the ABP schedule
accurately reflects the true status of the Program. It is also imperative to include clear
scheduling requirements in the specifications of both design contracts and construction
contracts, and to ensure that these design and construction scheduling requirements are
well coordinated. This Report provides recommended measures for schedule control
which, when implemented, will provide a sound schedule control system for the ABP.
The recommended schedule control measures include: design phase schedule control;
contract time determination; and construction schedule control.

Design Phase Schedule Control

The ABP will require each designer to develop a detailed design schedule that will be
used to monitor and track design progress; critical design tasks; critical decision dates;
and critical actions required by all parties involved in the design process. In addition to
the requirement for design schedules, this report provides recommended measures which,
when implemented, will enhance the control of design schedules. These measures
include:

• earned value reporting;

• incorporation of key design schedule activities and milestones; and
• monthly design schedule status reports.

CPM Schedule Mandate

The Agencies will mandate the use of qualified construction schedulers to prepare
construction schedules. It will be the responsibility of every designer of contracts greater
than $1 Million to use a qualified construction scheduler to develop a CPM construction
schedule during the design phase of each ABP project. Designers will also be required to
ensure that all CPM Schedules are coordinated with the construction cost estimate for
their project. This report also contains a quality control plan that will be applied to every
CPM Schedule.

The ABP will also use Design-Build (DB) contracts on ABP projects where appropriate,
in order to minimize project schedules and project costs. Design-Bid-Build (DBB) has
historically been the routine project delivery method used for MassHighway and DCR
projects. It is commonly accepted in the design and construction industry that using the
Design-Build (DB) project delivery method will result in shorter project duration than if
the DBB project delivery method is used, primarily because construction can begin prior
to design completion. Shorter project durations can reduce duration of project overhead
and general condition costs, as well as reduced cost escalation over time. Moreover,
quality improves because the construction company that is actually building the project
can provide direct constructability input during the design process.

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Construction Schedule Control
Effective schedule control on the nearly $3 Billion Accelerated Bridge Program has
enormous cost ramifications. Prolonged schedule durations translate to increased internal
program costs, increased construction and design overheads, and construction cost
escalation. Accordingly, effective schedule control measures are critical to the success of
the ABP. This report contains recommendations on specific schedule control measures
which, when implemented, will provide an effective schedule control system.
Recommended measures include:

• best practices for managing construction schedules;

• effective use of the Integrated Project Schedule at the program level;
• mandatory CPM schedule requirements for construction contractors;
• the use of state-of-the-art scheduling software;
• incorporation of scheduling requirements in construction contract specifications;
• tying construction progress payments to the construction schedule;
• use of Critical Action Reports;
• schedule recovery work sessions;
• use of a schedule quality control plan;
• developing logical and realistic schedule contingency; and
• identification of issues that could potentially cause schedule delays.

CONSTRUCTION QUALITY

Section 3 of this report, Construction Quality, provides recommended measures to

control the quality of construction. Poor quality construction can lead to re-work and
disputes, which typically translate to additional costs and schedule delays. In order to
manage and control the quality of construction, it is imperative to implement formal
construction quality control and quality assurance programs and procedures. The
program will develop and implement a formal Construction Quality Control & Quality
Assurance program that will be followed on all Accelerated Bridge Program construction
contracts. All ABP construction contracts will contain a standardized Contractor Quality
Control specification, tailored to the specific requirements and complexities of each
individual construction contract. The Program will also develop a standard Construction
Quality Assurance program and approach that will be implemented on all ABP
construction contracts.

IMPLEMENTATION

A dedicated Project Controls organization is required to develop, implement, and

maintain effective project controls on the Accelerated Bridge Program. The Project
Controls organization must focus its efforts solely on control and reporting functions, and
report project and program status in an objective and factual manner without influence

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from planning, design, construction, operations, finance, or other organizations within the
ABP. The Project Controls organization must be staffed adequately in order to ensure
effective control of program and project costs and schedules.

In addition to establishing the Project Controls Organization, over the next few months,
the Agencies will focus on the following aspects of the Program Controls plan:

• Implement the Software Control Systems recommended in this Report;

• Staff the Project Controls organization;
• Amend standard design and construction contracts to reflect new requirements;
• Establish the training programs recommended in this Report; and
• Establish the Early Risk Task Force recommended in this Report.

All of the control measures implemented will be done with the goal of maintaining
transparency and public access to the status of the ABP program and projects. In light of
this goal, a visual web-based status tool will be created. This tool will provide instant
project status information to Oversight Committee members, community groups,
legislators, municipalities, and the general public. Since this tool will provide an aerial
visualization of each bridge and its surroundings, it can also be used for construction
planning and public outreach.

By law, the Legislature will receive bi-annual reports of the updates to program controls.

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 SECTION 1 - COST CONTROL

1.A BUDGET AND REPORTING

1.A.0 –Introduction
Quality procedures for project control and record keeping are indispensable tools for
Program management and project teams during the planning and execution of a large
project such as the Accelerated Bridge Program. These tools serve the dual purpose of
recording the financial transactions that occur and giving managers an indication of the
progress and problems associated with the project. Cost and schedule management
produce a positive outcome when it effectively aligns the demands of the project
objectives, legislative and public expectations, and fiscal prudence.

The Massachusetts Highway Department (MassHighway) and the Department of

Conservation and Recreation (DCR) (collectively, the “Agencies”) will implement a cost
management program that develops and maintains a program budget and a construction
management system. The Agencies will fulfill the reporting requirements of Chapter 233
of the Acts of 2008 and set up a multi-tiered reporting approach so all stakeholders of the
ABP can access the information they need.

1.A.1 – Reporting Goals

With the assistance of Keville Enterprises, Inc., a nationally recognized leader in project
control development and implementation, the Agencies have developed recommended
best practices to fulfill the reporting requirements outlined in Chapter 233 of the Acts of
2008, as well as mechanisms to track program and project costs internally. The specific
details of the reporting elements will be developed and implemented in the next few
months. The reporting program will both manage the budget such that the overall
program (as well as each project) is within the allocated Program budget and will allow
all stakeholders to have access to up–to-date and accurate project schedule and budget
information in a number of formats.

In order to implement this Program, the Agencies will set up a multi-tiered reporting
approach. Performance tracking indicators, including but not limited to those identified
in Chapter 233, will be identified and will become the basis for the data presented in ABP
reports. Monthly, quarterly and semi-annual reports generated will be periodically
reviewed with program stakeholders to ensure that all required data is being captured and
presented in a concise and clear format. In addition, the Program will use a web-based
reporting tool that will allow anyone to use the internet to find up-to-date information on
the status of each bridge project as well as the Program as a whole.

1.A.2 – Performance Tracking Indicators

The Agencies will initiate a formal Performance Tracking Indicator (PTI) program for
portions of the legislative reporting requirements.

Because many of the ABP projects are in the conceptual stage, performance indicators
provided this year (2009) will not be based upon solid advanced designs. For many
projects, not enough scope definition, quantitative information (plans and documents to
provide pricing), or detailed/adequate costs or schedule assessments have yet been
developed. Because of the early stages of design, cost and construction schedule
information is very preliminary and should not be used at this point to control contract
budgets without sufficient contingencies.

Therefore, it is recommended that:

1. The Performance Indicators include an appropriate amount of cost and time

contingencies (see Sections 1.C below).

2. Designers and Engineers who work for the ABP Program do so as part of a
Designer performance review program that will maintain a high level of
accountability for elements within their control, while promoting a ‘team’
approach (see Section 1.B.10 below).

3. Because of limited scope definition in the early stages of design (i.e.) Structural
submission is not complete until the 75%), internal performance monitoring
will be established after the 75% construction estimate and schedule are
developed and agreed to. This will be the Program definition of “90% on-
time/on-budget.”

The goals of the PTI Program are to:

1. Produce measurable/realistic goals for the important stages of design and

construction.

2. Comply with legislative reporting requirements in a visible manner.

3. Ensure a high degree of accountability for elements of work that the

Designer/Engineer can control during the later stages of the design process.

4. Allow ample time to properly scope and budget each individual contract – before
budget tracking is fully committed.

5. Reasonably identify program cost components that are within the control of the
Program’s management team while separating all volatile cost components that

 are outside of the Agencies’ responsibility, but must be budgeted for as part of
this ABP, and do so in a transparent and auditable manner.

Examples of volatile costs outside the Agencies’ control include:

a. Major commodity pricing fluctuations
b. General pricing escalation
c. Scope changes unrelated to the original intent of the ABP
d. Fuel cost increases
e. Funding delays
f. Major construction delays beyond the control of the contractor and the
Agencies (“force majeure”)
g. Major unknown environmental impacts and/or permitting issues

6. Promote transparency and ‘reality’ of the true cost of construction, including

construction contingency and the cost of escalation (see Section 1.B.10 -
escalation).

7. Allow for more refined budgeting of unknowns and delays (beyond contingency
and escalation).

8. Allow ample time to take corrective action during the design and/or construction
phase of any one particular/problematic contract.

Recommended Performance Tracking Indicators (PTI)

The following PTIs are expected to be included in the Reporting Program for all projects
involving rehabilitation or replacement of a specific bridge:

1. Specific Bridge Cost Estimates (responsibility) *

a. Contract Specific Design Budget – before selection (MassHighway/DCR)
b. Contract Specific Design Budget - after selection (Designer)
c. 25% Design Stage - Construction Cost Estimate (Designer)
d. 75% Design Stage ** - Construction Cost Estimate (Designer)
e. 100% Design Stage - Construction Cost Estimate (Designer)
f. Engineer’s Estimate – Bid Value (Designer)
g. Contractor – Bid Value (Contractor)

2. Specific Bridge Scope of Work(s) – for various phases

3. PTI Milestones – Schedule Dates

a. Submittal of 25% Design (Designer)
b. Submittal of 75% Design (Designer)
c. Approval of 100% Design (Designer)
d. Approved Permitting & Right-of-Way Takings Complete (MassHighway/DCR)
e. Date of Work Advertising (Designer & MassHighway/DCR)

 f. Contractor Notice to Proceed (Designer & MassHighway/DCR)

g. Relevant Interim Construction Milestones (see page 46)
h. Substantially Complete (Contractor & MasHighway/DCR)

* Similar Indicators for Design-Bid-Build

** Control Estimate – for Designer performance monitoring

Important Note: Because of limited scope definition in the early stages of design (i.e.
Structural submission is not complete until the 75%), performance measurement will
be established after the 75% construction estimate and schedule are developed and
agreed to. This will be the Program definition of “90% on-time/on-budget.”

Recommended contingency - part of the above Performance Tracking Indicators

(contract specific only)
As delineated in Section 1-B “Contract Contingency,” an appropriate amount of cost
contingency (design, construction, claims), escalation, and time contingency (schedule
delays) will be included in the formal definition of “on time and on budget.”

1.A.3 – Proprietary Contract Management Software

The Agencies intend to evaluate over the next several months whether proprietary
contract management software should be utilized for the Program. The evaluation will
include a comparison of features to the current project management software systems
utilized by both Agencies as well as cost, training and delay considerations caused by
technical difficulties that come from with adoption by two agencies.

1. A.4 – Visual Web-Based Aerial Status Tool

The Agencies will also adopt a unified web-based visual status tool to assist with project
status reporting and transparency. This tool currently under development, will be utilized
to help answer the many questions from Legislators, community groups, municipalities,
and the general public, including:

What bridges have been committed to the program?

When will construction start the bridge start?
How much is the construction budget for the bridge?
Which bridges are preservation projects vs. reconstruction?
Where are these bridges?
What is the current status of the repair?
What streets are impacted by construction?
Who can I call with comments or question about the bridge?

The following is a sample of the page from web-based information tool being developed:

1.A.5 – Program Level Trending

One of the keys to successfully completing the Accelerated Bridge Program is to
recognize potential problems along the way before they become issues. By analyzing
patterns of construction and cost expenditures, trends (both positive and negative) can
be determined. By discerning these trends early on in the process, the Agencies can
avoid or alleviate probable impacts and can steer events towards successful
conclusions.

As part of the program, work will be continuously monitored for new and changing
risks / opportunities. Areas addressed will include safety, cost, schedule and other areas
of concern. This will be done, on a case-by-case basis (on the more critical/larger
aspects of the Program performance), to determine if program assumptions remain
valid, risk levels are changing, policies and procedures are being followed so that
contingencies will be modified accordingly. This analytical technique will be used to
monitor and forecast future outcomes based on both historical data and current project
results to date. The Agencies will analyze variances from either a baseline budget or a
baseline schedule. By using prior progress reporting periods’ data and projecting the
possible variance from baseline at some future point in the program, corrective actions
can be taken and impacts can be mitigated.

The following steps will be implemented:

1. Program Performance Indicators (PPIs) will be established for major portions of

the ABP Program.

2. Variances against these PPIs will be reported quarterly.

3. Mitigation plans will be formulated and executed to alleviate potential problems.

1.A.6 Semi-Annual Report to Legislature (C. 233, §16)

Section 16 of the Accelerated Bridge Legislation mandates that a report be filed with the
Legislature on June 30 and December 31 of each year of the Program that includes the
information listed below. The report will be prepared using the Performance Tracking
Indicators described in Section 1.A.2 and other information as required.

SECTION 16 . . . The report shall include, but not be limited to: the total amount
appropriated for each project, the total estimated cost of each project, the amount
expended for the planning and design of each project up to the time the report is filed,
the amount expended on construction of each project up to the time the report is filed,
the timeline from advertisement through contract award and from the start of actual
design and construction by the design build team to project completion, the time saved,
if any, by employing the design build procurement method; and whether, in the opinion
of the council with consultation from the commissioner of highways, design build was an
effective procurement method for each project; the total amount currently expended on
each project, the estimated lifetime maintenance schedule and cost of each project, the
original estimated completion date of each project and the current anticipated
completion date of each project. This report shall also include the total number of
employees and outside contractors and amount expended on salaries and benefits for
employees and outside contractors that are specifically working on projects to be carried
out as part of the accelerated bridge repair program. . . .

1.A.7 – Program Management Quarterly Report

To support the legislative reporting requirements and internal controls, the Agencies will
prepare a Program Management Quarterly Report.

The main objective of this report/public presentation will be to:

1. Inform the public of the current status of bridge repair.

2. Provide an explanation of key issues – those elements of design, construction,

procurement, funding, traffic, etc. that are important elements of the ABP.

 3. Provide an overall financial briefing – addressing funding status and elements in

the proposed PMQ summary below.

1.A.8 – Monthly Status Reports

For a program the size and complexity of the Accelerated Bridge Program, a vast amount
of data will be generated. The reporting of this data is vital not only to the program
management team but also to the various stakeholders in the Program. The Agencies will
prepare and distribute monthly status reports that will detail information to all levels of
project involvement.

Through the use of the existing Agency software, the ABP will create detailed monthly
reports. Separate reports will be prepared for:
• the individual project level

 • the district level

• the Executive ABP level

1.B PROGRAM COST CONTROL

1.B.0 – Summary
Chapter 233 of the Acts of 2008 requires that the Agencies track the Program’s on-time
and on-budget performance for the first three years against a 90% performance goal.
Although both Agencies already implement many of the following measures in their
current programs, the measures vary somewhat between the Agencies in both name and
content. Therefore, to promote transparency for the ABP Program as a whole and to
provide each agency with the benefit of the best practices available, the Agencies intend
to formally adopt the following Program Cost Control measures. This will involve the
adoption of new control measures as well as the upgrade of current practices

1. Performance Tracking Indicators and Program Schedule Control

2. Formalized Cost Containment Program

3. Peer Reviews

4. Program Management Oversight Advisor

5. Early Risk Task Force

6. Program Overhead Control

7. Internal Control Meetings and Reporting

8. Value Engineering Studies (contracts greater than $20 million)

9. Forecasting Risk and Exposures

10. Designer Accountability

11. Escalation

12. Major Commodity (Material) Pricing Fluctuations

Each of these measures is discussed in greater detail below.

1.B.1 – Program Schedule Control and Performance Tracking

Indicators
One of the most significant factors in controlling cost of a large program such as the ABP
is maintaining Program and project schedules. Therefore, an ABP Integrated Program
Schedule will be developed and maintained to provide Agencies the ability to review and
report on the overall health of the Program and standardize the management of multiple
projects. This will be accomplished by requiring all ABP project schedules to conform to
a structure that is consistent in content and organization. This will allow reporting on the
status of the individual projects, as well as summary level reporting, for various
breakdowns such as by city/district/region, fiscal year budget planning, or critical letting
and construction milestones.

This program will also be developed with a procedure that promotes accountability at the
contract level and transparency/visibility at the Program Management level.

The objective of this Program Cost Control Measure will be to:

1. Ensure transparency in reporting project/contract level problems;

2. Provide a system of accountability at the project/contract level;

3. Ensure that program level decisions are based on all critical contract level

considerations;

4. Develop an efficient mechanism to summarize and report on the overall ABP

program health; and

5. Provide the ability to create multiple levels of reporting for ABP projects within
the larger program. The implementation of a consistent schedule structure will
allow standardized routine reporting within the overall Program, at the most
detailed level.

Control/Accountability Aspects
The Agencies’ Integrated Program Schedule will be generated with a formal procedure to
ensure accountability at the project level. This will be done through the following steps:

1. The construction contractor will provide weekly construction updates during the
weekly construction status meeting held by the Agencies’ Resident Engineer/PM.
The Agencies’ Scheduler will be in attendance and receive meeting minutes.

2. The contractor will provide monthly construction schedule updates in accordance

with the requirements of the Agencies’ scheduling specification.

 3. Upon receiving the Contractor’s schedule, the Resident Engineers (and/or

District Schedulers) will review the schedule and provide comments in a written
report to the ABP District Construction Engineer timely manner.

4. The District Construction Engineer will promptly review the report and provide
direction to the District Scheduler on how to proceed with the monthly update of
the Integrated Program Schedule.

5. The District Scheduler will routinely update the Integrated Program Schedule
that will be utilized for summary level reporting. The Program Controls Group
will be responsible to coordinate the information from the field, ensure
consistency in reporting and prepare the reporting information.

The following steps will be taken by Agencies to provide for successful program
level schedule implementation:

1. Develop the desired program-level reporting for time, cost and resource status;

2. Determine the appropriate schedule structure and schedule loading requirements

based on the Agencies’ needs for the current Program;

3. Refine the schedule specifications to be included in contract documents for each

Agency’s project within the Program; and

4. Create desired Program-level reports concurrently with the review of the

individual project schedule updates on a monthly basis.

Organization Requirements
The key to the Integrated Program Schedule is the creation and implementation of a
specified work breakdown structure (WBS) that will become the basic organizational
structure for each project schedule. Program level schedule report formats will also be
developed. Each construction contract will include similar WBS and schedule loading
requirements at bid letting. Once the WBS has been implemented throughout the
program, program status reports will be developed on a monthly basis coinciding with the
monthly updates provided for each project. The program-level reporting can be provided
concurrently with or independently of the individual integrated project schedule update.

Performance Tracking Indicators

See Section I.A.2 above for a discussion of this Measure.

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1.B.2 – Formalized Cost Containment Program

The Agencies will initiate a formal Cost Containment Initiatives Program. This program
will be implemented by mid-2009 and will survive for the life of the ABP duration (8
years).

The main goal of this program will be to:

1. Standardize cost savings for multiple projects, construction methods, material

efficiencies.

2. Formalize the cost containment program to ensure initiatives have been

adequately evaluated.

In order to perform this program, the following steps will be implemented:

1. Create an active/formal Program Management endorsement of the fundamental

principle for Program Management, employees, and consultants to be
actively/continuously pursuing cost containment ideas.

2. Create a formal cost containment review panel to evaluate cost savings, schedule
savings (design, procurement, and construction), and/or claims avoidance. The
review panel will have one senior cost analyst, designer, construction manager,
and a claims analyst.

3. The panel will log all ideas, evaluate, and report to Program Management on a bi-
monthly basis.

1.B.3 – Peer Reviews

The Agencies will budget for and utilize a formalized Peer Review Program. This
program will be utilized for all contracts >$50 Million and on a case-by-case basis for
other contracts (<$50 Million).

The main objectives of this Peer Review Program will be to:

1. Evaluate other potential options that may be cost-effective or may improve the
completion of a bridge contract.

2. Supplement the Agencies’ management staff to provide additional technical

support and resources.

3. Provide an additional level of review on critical projects beyond the existing

Program management.

11

The peer review will be conducted periodically to provide a detailed forensic analysis,
claim review, and other audit type exercises. The Peer Review team will evaluate a
variety of project elements including cost reports, construction documents, schedules and
other items.

Specific Scope of Services

1. Perform an independent review of the current project scope, budget and schedule
vs. compliance with the originally planned scope, budget and schedule.

2. Evaluate the existing contractual obligations and the extent to which Contractor
and the Agencies have met those obligations.

3. Identify any gaps in responsibilities between the project team members and/or any
disconnects between the Agency’s expectations and each team members’
contracted scope.

4. Evaluate the current budget and the general budget trend/exposure for the
completion of the project.

5. Perform an exposure assessment of current major open issues (values exceeding

$250,000) and recommend potential courses of action.

6. Identify systematic or organizational issues and opportunities to improve

performance.

7. Evaluate current Schedule Construction Controls Program and make

recommendations for potential revisions as warranted, including indentifying any
specific deficiencies or concerns.

8. Identify apparent major schedule risks – identify specifics in the schedule and
provide recommendations for mitigation. This will include a brief review of
items that are viewed as aggressively planned.

9. Evaluate remaining top critical paths and provide an adequate measuring tool for
the Contractor’s accountability and evaluation of feasibility of the remaining
schedule.

10. Briefly e valuate sub-critical paths and provide any observations or

recommendations to evaluate further.

11. Briefly evaluate any potential schedule recovery steps that should be evaluated
further by the Contractor.

12. Summarize with a narrative/plan for: making corrective action to, help avoid
additional schedule delays, highlight any positive aspects/outlooks, and provide

12

 any specific recovery plans (if possible). This will include a detailed schedule
report.

Review selected documents

• Agency Designer Contracts
• Agency Contractor Contracts
• Base-Bid Construction Documents (Plans and Specs)
• Current version of Plans and Specs
• Contract Budget (Original and Current)
• All significant change orders
• Project Schedules (baseline and all applicable updates)
• All Schedule extensions and revisions to the baseline schedule
• Current and past payment requisitions
• All major pending Claims/Disputed issues (Over $250,000)
• Quantity takeoffs and estimates generated by others

A similar Peer Review Team will be implemented for selected Design Cost reviews,
Construction Cost Reviews (during design), and Program Management Cost Reviews.

1.B.4– Supplemental Program Management Oversight Advisor (PMOA)

The Agencies will budget for and utilize a supplemental Project Management Oversight
Advisor for selective critical aspects of the Program, primarily to assist in an independent
audit fashion. This advisor may be utilized to provide an independent evaluation of
problematic contracts (design or construction). The PMOA will be selected by the
Agencies based upon qualifications and a presentation of applicable knowledge related to
Program Management of this magnitude. This PMOA will be specifically selected for
Program Controls, including proven knowledge in:

• Construction Cost Estimating

• Construction Scheduling
• Budgeting
• Reporting
• Document Control
• Project Management
• Inspection
• Quality Control
• Claims Analysis
• Trending and Forecasting

13

The main objective of this PMOA will be to:

1. Supplement the Program management staff in providing additional technical

support and resources.
2. Provide an additional level of review beyond Program management.
3. Assist in training district staff project managers.
4. Assist in preparation of reporting and budgeting demands.

1.B.5 – Early Risk Task Force

The Agencies will form an Early Cost Risk Task Force that will develop critical cost and
schedule related information related to these common areas of concern:
• Right-of-way (timing and cost)
• Permitting impacts
• Utility and structure ‘as-builts’
• Geotechnical information
• Environmental review
• Construction contingency validation

The development of this information will:

• Ensure consistency
• Identify best approaches when dealing with outside influences
• Enable scope and cost definition of conditions to be handled at a program level
• Identify and manage project risks that may have broad design and budget
implications

Early Risk Task Forces will be comprised of a representative of each of the relevant
major disciplines (land acquisition, permitting, utility, legal, construction, design), a cost
estimator(s) and a construction scheduler. This group will routinely review and present
to Program Management the potential cost and schedule impacts to the project posed by
the types of early project risks delineated above, as well as the potential impacts to early
design priorities and milestones. This group will also be responsible to prepare and
present possible mitigation measures. Depending on the need and personnel assigned,
multiple Task Forces may be established.

1.B.6 – Program Overhead Control

Currently, a preliminary budget of approximately $390 million has been allocated for
non-construction/program overhead costs. As part of the mandate to maintain
transparency, in the future months, the Agencies will provide a clear budget allocation of
the program ‘overhead’ costs. These costs include Agency salaries, equipment, rent,
financing, debt, insurance, utilities, furniture, vehicles, Program (non-design) consultants,
materials, supplies, and maintenance. All of these costs will have an escalation

14

projection performed as well. Over the next several months, Program Management will
evaluate these costs in much more specific detail, and will do so in a manner that uses
past historical data to generate a defensible budget of these overhead costs.

The objective of Program Overhead Control will be to:

1. Perform a systematic budget evaluation of the cost to ‘overhead’ ratio.

2. Assist in the allocation of the overall program contingency. As indirect (i.e.

‘overhead’) and direct (i.e. contract specific) centers are formalized, the
remaining overall ABP appropriation becomes contingency (allocated and
unallocated).

3. Ensure transparency in reporting the development of Program-related cost

projections, followed by the regular status update of actual expenditures.

4. Allow ample time to properly scope and budget for the entire Bridge Program
duration before budget tracking is fully committed.

5. Ensure that program level decisions are made with all contract level
considerations as its basis. This would include using past history to evaluate the
ratio of non-manual workforce (inspectors, resident engineers, designers, office
engineers, etc.) it takes to efficiently manage bridge projects by cost range.

6. Develop an efficient manner to summarize and report on the overall Program

health.

The following steps will be implemented:

1. Field Management Ratio – First, an evaluation of past historical data will be

performed by an internal task force of Agency personnel. This historical
evaluation will include a selection of some of the better performing (cost and
schedule) past bridge projects, to determine an optimal field management staff
ratio (people/$ of bridge contract – by major cost category). A projection of total
field management staffing will then be done using the overall 8 year program
schedule, and will utilize individual conceptual contract schedules as a guide.
The Program is committed to manage to the $390M that has been allocated for
ABP indirect program costs.

2. Other ‘Overhead’ Costs - A separate evaluation will be done by a second Agency

task force. This group will evaluate budget of non-construction costs to
successfully manage a program of this size. This group will also evaluate finance,
insurance, salaries, equipment, rent, payroll, accounting, financing, debt,
insurance, utilities, furniture, vehicles, consultants, materials, supplies, and

15

 maintenance. This evaluation will consider past overhead budgets (comparing the
ratio of $ to design and construction / on an annual basis), and will consider the
Field Management Ratio above.

3. This Program Budget function (i.e. indirect costs) will also be revisited and
adjusted regularly as part of the overall Program Budget evaluation.

1.B.7 – Internal Program Control Meetings

The Agencies will hold regular internal Senior Project Management control meetings.
These meetings will be implemented immediately and extend through the end of the ABP
duration (8 years).

The main objective of these meetings will be to:

1. Create and maintain the accountability and transparency required for the
legislative reporting requirements.

2. Generate a formalized senior management review process that allows for program
level priorities to be evaluated and acted on as efficiently as possible.

3. Identify specific schedule and cost control priorities to be addressed in further

detail in the Critical Actions Meetings (see section 2.C).

4. Identify action items to recover costs (and/or delays).

1.B.8 – Value Engineering Studies

In 1995, Congress passed the National Highway System (NHS) Designation Act which
included a provision requiring the establishment of a program that would require States to
carry out a VE analysis for all Federal-aid highway funded projects on the NHS with an
estimated total cost of $25 million or more. On February 14, 1997, the FHWA published
its VE regulation in 23 CFR 627 establishing such a program and concurrently reduced
the dollar threshold to $20 million. The successful administration of the VE program can
contribute measurable benefits to the quality of the surface transportation improvement
projects and to the effective delivery of the overall Accelerated Bridge Program. The
following table summarizes recent benefits realized nationwide by the FHWA when
conducting VE.

16

 Summary Of Past VE Savings

Federal-Aid Highway Program
FY 2007 FY 2006 FY 2005 FY 2004 FY 2003
Number of VE Studies 316 251 300 324 309
Cost of VE Studies Plus Administrative $12.54 $8.15 $9.80 $7.67 $8.42 Mil
Costs Mil Mil. Mil. Mil.
Estimated Construction Cost of Projects $24.81 $21.53 $31.58 $18.7 Bil. $20.48
Studied Bil Bil. Bil. Bil.
Total No. of Recommendations 2861 1924 2427 1794 1909
Total Value of Recommendations $4.60 Bil $3.06 Bil. $6.76 Bil. $3.04 Bil. $1.97 Bil.
No. of Approved Recommendations 1233 996 1077 793 794
Value of Approved Recommendations $1.97 Bil. $1.785 $3.187 $1.115 $1.110
Bil. Bil. Bil. Bil.
Return on Investment 157:1 219:1 325:1 145:1 132:1
Resource - http://www.fhwa.dot.gov/VE/

In the Accelerated Bridge Program, the Agencies will continue the current policy of
Value Engineering.

1.B.9 – Forecasting Risk & Exposures

The Agencies will periodically account for forecasting the exposures of each construction
contract. This will be performed on a quarterly basis, to support the reporting
requirements included in Section 12 of the ABP Legislation. This component of the
Program will be implemented by early 2009, for all construction contracts that are
currently active, and will survive for the life of the ABP duration (8 years).

The objective of this program will be as follows:

Develop a comprehensive cost that identifies current scope, cost-to-date, and allowances
for all future potential costs, known or unknown.

The following steps will be implemented:

1. Assess all contractor claims and change orders and include an estimated cost
where the Program has potential cost exposures.

2. Perform a future risk assessment to include an estimate for unknown future

contractor claims or change orders. Various methods exist to estimate future risk.

17

 The preferable method is to categorize remaining work into common scopes (i.e.,
utilities, excavation, etc.) and assess potential cost changes. The intent of this
portion of the forecast is to establish a budget contingency for future costs that
will not result in an unexpected contract cost at completion.

3. Review all unit-priced pay item quantities (if any exist within the contract) and
forecast quantities at contract completion.

4. Identify all traffic control costs incurred to date, if any, and include a forecast for
to-go traffic control costs.

5. Obtain input from the designer(s) regarding future design changes being
contemplated by the designer and include estimated costs for potential scope
changes.

6. Include an overall comparison to the previous forecast(s) and identify significant

variances from the previous forecast.

An ABP Program Budget exposure has been identified to monitor a construction

contracts progress, Program Management will consider performing a study of the past
bridge project completion costs and timeframes. If the findings conclude that there needs
to be a budget allotment of much greater than the 15% previously added, then Program
Management will adjust the program and Budget Control in a reasonable manner. This
will also become part of the Program Performance Indicators.

1.B.10 – Designer/Engineer Accountability Program

To foster a team approach from the Designers and Contractors, the Agencies will
implement a D/E Accountability program in the second quarter of 2009.

Because the ABP is in the conceptual stages, any true performance indicators provided
this year (2008) will be premature and not based upon advanced designs. For many
projects in the Program, at this stage insufficient scope definition, quantitative
information (plan to provide pricing), or detailed/adequate costs assessments of other
significant cost related impacts has been developed.

Therefore, Program Management will implement, for contract specific cost control during
the design stage, a D/E Accountability Program that will maintain a high level of
accountability for elements within the D/E’s control while promoting a ‘team’ approach
– see section 2.A.

18

The following steps will be implemented as the core of the D/E Accountability
Program:

1. Select Designer/Engineer (or Design/Build) based upon qualifications.

2. The Designer will be required to work with an independent estimator(s). This

Estimator will be required to work with the design team from the early stages of
the design – to develop quantity and qualitative assumptions, assist with value
assessments, develop contract payment items, price the estimates using accepted
practices, and to work with the Agencies.

3. The Designer will be responsible for implementing the Construction Cost

Estimating Protocol outlined in Section 1.C below. At the 75% stage, the
Designer will be responsible for producing a “bottoms-up” construction cost
estimate that will become the basis for measuring a project’s on-budget
performance.

4. The Program’s Estimating Group will review this estimate and the reconciliation.
They will evaluate the categorization of change (i.e. pricing changes, scope
changes, design development, corrective action), and will file a determination of
accountability report to ABP Executive Management.

5. During the design selection process, a strong part of the evaluation of a

Designer’s past performance will be how the Designer responds to and plans for
this Designer/Engineer Accountability Program. The discussion of qualifications,
resources, experience with this more rigorous control, and the Designer’s
justification of any form of contingency, will be considered.

1.B.11 - Escalation Costs

In order to maintain cost control and foster public trust in the Program’s budget, the
Agencies will provide a clear budget allocation of escalation/inflation (“time value of
money”) costs and contingencies at both a contract and a program level. Additionally,
the Agencies will formalize a position on just how much, as a percentage of projected
cost increase, will be allocated for the factors of escalation. The section below is specific
to the cost escalation, recognized as a highly vital component of proper budgeting/cost
control and a component of the performance of the Designers, the Contractors, and the
ABP management staff.

It is important to note that the proposed definition of “on-time-on-budget,” for the

purposes of the legislative reporting, includes a reasonable amount of escalation and
contingencies in each construction contract as it evolves and in the overall Program
Budget (see Section 1.A.2, Performance Tracking).

19

This section defines the recommended use of contract specific escalation during the
evolution of the design phase of a typical ABP contract. In contract specific instances,
escalation factors need to be calculated to include inflation factors for, at a minimum,
construction costs, right-of-way acquisitions, labor costs, and general price inflation. The
construction schedule should be utilized to help determine the budget. The section also
discusses the cost of escalation of the overall Program costs for ‘non-construction’ type
costs.

In light of the many recent financial market fluctuations, and because of the magnitude of
the cost implications to the ABP, the Agencies will initiate a third party study by a
professional local economist to evaluate the current percent cost growth to be expected,
with specific regard to the Commonwealth and to bridge construction commodities,
including labor. Once this study is complete and every year thereafter, an annual
evaluation will be performed and appropriate budget adjustments using program
contingency will be made. This will help to maintain transparency, establish a
standardized approach to be managed by the ABP Cost Control Manager, and separate
this volatile aspect from the accountability of the Designer/Engineer during the design
phase.

Many current economic publications address the cost escalation factor of construction. It
is rare for two publications to agree on what the percentage of escalation should be for
future work. Moreover, each region of the country has varying cost increases. For
example, a 5/13/08 article posted on the ABP website states “A recent report of the
Federal Highway Administration estimated that road and bridge construction costs
increase between 9 percent and 15 percent each year.” The FHWA statement is
consistent with an unverified publication that has looked at the past five years and noted
that the cost of highway and street materials has increased by 70%.

20

Contract Specific Escalation Costs

This portion of the cost control plan will be implemented in the following manner
and at the applicable estimate stages of design and construction.

1. As mentioned above, a third party study will be performed to develop a

professional opinion of how much annual cost growth should be applied to the
contract-specific budgeting.

2. To ensure consistency and proper forecasting practices, during each stage of the
design, the professional cost estimator will use the Program-directed percentage
of escalation. Based on the estimate generated at current year dollars, the
estimator will then use the construction schedule to escalate to the mid-point of
construction (more advanced approaches - based on year-of-expenditure, will
also be acceptable).

3. This escalation amount will regularly be provided to the Program Cost Control
Manager to report and budget for the escalation at the Program level and as part
of the Performance Tracking Indicators. Again, this will be done at the various
stages of design.

4. As the Engineer’s Estimate is developed, and as part of an Program Executive

Estimate Briefing for each major contract over $5M, the estimating team will
present the escalation calculation, showing how much of the predicted costs are
included in the bid value.

5. Program budget entry will be provided for each contract account for the potential
increase that the Agencies must budget.

Program Specific Escalation Costs

This portion of the cost control plan addresses how escalation of “non construction costs”
will be accounted in the Program Budget. During the early stages of the Program, very
preliminarily budgets have been established for Program management. Those costs
include Program salaries, equipment, rent, financing, debt, insurance, utilities, furniture,
vehicles, consultants, materials, supplies, and maintenance. All of these costs need to
have an escalation projection performed as well. Similar to the contract specific
escalation, the Program will retain a third party to perform this study as well. This
program budget function will also be revisited and adjusted annually as part of the overall
Program Budget evaluation.

21

1.B.12 – Monitoring Major Commodity (Material) Pricing Fluctuations

Unprecedented high escalation on selected construction materials and fuel driven by
international demand is causing substantial impacts to highway bridge projects.
Allocations to properly budget for these costs must be carried in the project budget from
the conceptual stage through construction. To account for this on the Program level, two
significant cost allocations were performed prior to submitting the Accelerated Bridge
Plan.

1. A 9% annual Escalation Rate was added to all cost estimates – and done so in a
manner that attempts to forecast the future bid values by escalating to the mid-
point of construction.
2. A 15% Construction Contingency was also included in the recent estimates. This
is to account for an aggressive (i.e. well managed) cost growth factor that is
anticipated after the Contractor has been awarded a contract.

The ABP Program Budget will monitor the impacts of material pricing.
Anticipated commodities for escalation clauses based on historic increases and current
volatility include:

• Steel
• Cement
• Hot mix asphalt
• Fuel (as it relates to operating construction equipment or providing
temporary heat)
• Fuel (as it relates to material delivery surcharges)

1.C PROJECT-BY-PROJECT COST CONTROL MEASURES

1.C.0 – Construction Estimating and Contract-Specific Contingencies–

Summary

Construction Cost Estimating

Generating reliable and accurate cost estimates throughout the entire cycle of the
Accelerated Bridge Program (design phase, bid, construction, and change order
management) is vital to the ABP Cost Control Program. All construction cost estimates
for ABP projects must be developed in a consistent, systematic, structured manner. The
“bottoms-up” approach to cost estimating will be used for developing the Lump Sum
Bridge (LS) construction cost estimates on all future (beyond Dec-08) Accelerated
Bridge Program projects as they progress into the 75% design phase.

22

Quality Control/Quality Assurance Plan - Estimating

A cost estimating Quality Control/Quality Assurance procedure has been developed for
the Accelerated Bridge Program. In order to enhance the validity of project cost
estimates, most cost estimates prepared for the ABP will receive a quality control (QC)
review in accordance with the procedure.

Contract-Specific Contingencies
Section 1.C.4 defines the use of contract-specific cost contingencies during the evolution
of the design phase of a typical project in the Accelerated Bridge Program. It is
important to note that the proposed definition of “on-time-on-budget” for the purpose of
the legislative reporting includes a reasonable amount of cost and schedule contingency.
This is a vital component of proper budgeting and cost control that must be a component
of the performance of the Designers, the Contractors, and the ABP management staff.

1.C.1 – Construction Estimating Program

The ‘bottoms up’ cost estimating approach is more effective because estimates are
developed based on the way that the project will be constructed rather than merely
applying unit prices to quantity take-offs. Bottoms-up estimating involves developing
costs for the crews, equipment, and production rates that a contractor would use in
constructing the project, and developing the estimate based on this information. A
‘bottoms-up’ cost estimate reflects a buildable approach to the work, while at the same
time building in a constructability check. Moreover, crew, equipment, and production
rate information can be easily translated into a project construction schedule that is
integrated with the cost estimate. This early linking of project cost and project schedule
fosters effective cost and schedule control throughout the life of the project.

For bottoms-up estimates, prices at the detail level for material, equipment, and labor
must reflect local/industry pricing to the maximum extent possible. Time and care must
also be taken to develop contingencies, overhead costs, general conditions costs, and
profit rates in a sound, logical manner, rather than by applying blanket percentages.

For all common elements (other than the Lump Sum Bridge item), MassHighway has
recently implemented a “Weighted Average” unit price tracking program. This system
has allowed MassHighway to estimate unit priced items (usually amounting to < 20% of
the contract value) more easily. Because of the consistency noted by MassHighway over
the past year, and to assist in keeping consultant costs lower, the Weighted Average
program will be continued during the early design phases. Designers (and the
independent estimators) will be required to perform a validation of these unit prices as
part the final Engineer’s Estimate (75%).

23

Lump Sum Bridge items (and any other significant lump sum item) will nevertheless be
required to be derived from the “bottoms-up” approach, from an independent cost
estimator, beyond the 25% design stage (part of the 75%, 100%, and PS&E submissions).

Early Conceptual Estimating (prior to 25% design)

Bottoms-up estimates cannot be developed at the early conceptual stages of a project
since there is not enough scoping information available to allow for detailed development
of crews, equipment, and production rates. Accordingly, it is necessary for ABP project
designers to use high level parametric estimating (pricing by square foot, cubic yard, tons
of steel, etc.) coupled with the application of logical assumptions to develop early
conceptual estimates. Parametric costs that are used will be based on local historic costs
from projects with similar scope, coupled with any known current market cost trends.
The level of detail of the assumptions used will vary from project to project, but the
estimator shall discuss and validate all assumptions with the project design and
construction representatives. These early estimates should include high contingency costs
to account for: the lack of scoping detail; changes to the scope that will inevitably occur
as design progresses; known and unknown project risk factors; and market fluctuations
that will occur over the life of the project. As the design progresses and more detail is
added to the design documents, contingencies will be decreased.

As part of the 75% design submission, all construction cost estimates will begin with a
detailed quantity take-off. The independent estimator will then develop a logical work
breakdown structure for the project, followed by the crews, equipment, and production
rates that will be used in constructing each element of the work. Once this information is
developed, the estimator will then develop pricing information (again using weighted
averages for normal unit prices and the “bottoms-up” approach for lump sum and/non-
routine elements).

Labor pricing shall be current and shall incorporate:

• Appropriate Prevailing Wage rates and fixed fringes for the local area;
• Variable fringe/burden calculations based on assumption of hours per working
year or years of retention (e.g. holidays and vacation for some Union trades);
• Workers compensation rates;
• Appropriate payroll taxes and insurances (Federal and State Income tax; Social
Security; Medicare; Mass. Health; etc); and
• Assumed contractor healthcare and vacation benefits.

Pricing of overtime and shift work shall reflect appropriate local (union) labor wage
premiums and appropriate calculation of payroll taxes and burdens above. This will be
evaluated as part of the 100% submission, following the completion of a detailed
Contract Time Determination study (i.e. detailed construction schedule) that utilizes
information from the 100% construction cost estimate.

All estimates will contain an appropriate level of contingency to account for: stage of
design; level of scope definition; difficulty level of construction; chance of scope creep

24

during design; chance of scope creep during construction; construction risk factors
(subsurface conditions, hidden conditions, hazardous materials, form of construction
contract, construction contract pay item structure, market price trends); bid climate; etc.
The estimate contingency should be applied below the bottom line of the cost estimate
and not included in quantities or unit pricing.

All estimates will contain appropriate markups for indirect costs including home office
overhead, profit and insurance (special coverage such as pollution, marine, and other
unique job requirements) and bonds.

All estimates will include escalation to the midpoint of construction, calculated monthly
or yearly. Useful indices to determine the applicable escalation rate may include
Engineering News Record, Consumer Price Index for materials, Metals Weekly, various
D.O.T. and FTA escalation materials indices, and local sources. However, because of its
size, the Accelerated Bridge Program will develop a standard escalation factor, to be used
by all estimators, that is generated by a professional economist.

1. All site-specific Construction Cost estimates (greater than $1M) will include an
Executive Summary of costs by the ABP Work Breakdown Structure.

2. All estimates will be developed into appropriate summary level Unit Costs at total
and Systems cost levels, to allow for cost benchmarking, (e.g. cost per Bridge
Foot, cost per Lane Foot, cost per LF of vertical foundation; cost per CY of
concrete or earth; etc).

3. Each estimate at the 75% submission for all site specific construction contracts
greater than $1 Million shall be accompanied by a Basis of Estimate narrative.
The Basis of Estimate shall may include the following:

• List the specific project documents and source documents forming the basis
of estimated scopes and assumptions. Identify sources and dates.
• Identify all scopes, quantities, and costs, provided by sources other than the
estimating team (e.g. ‘pass-through’ Allowances provided by the Agencies,
Designer, or end-user.)
• Reconcile major scope changes from prior estimates, as identified by the
design team.
• Reconcile summary level cost variances from prior estimate, in tabular or
narrative form.
• Reference, and explain, detailed estimate ‘backup’ such that third party
readers can correlate summary level information with the backup.
• Outline unresolved scope or cost issues.
• Describe estimate departures from project documents, and why they are
included (e.g. constructability).
• Describe estimate assumptions regarding site access restraints.
• Describe estimate assumptions regarding sequence of work and labor
shifts.

25

 • Describe the specific estimating methodologies employed- e.g. parametric;

detailed; quoted; historical, or other sources.
• Describe the basis of material cost development, labor cost development,
equipment cost development, markups development.
• Describe the basis and levels of project markups- level of overhead, profit,
and soft costs applied, with justification.
• Describe contingencies applied and how they were developed.
• Describe escalation markup applied to bottom line, calculated to the
midpoint of construction, utilizing project dates identified by the team.
• Outline major project risks that may significantly impact project costs.
• Where formal, or informal, Risk Analysis has been employed, outline how
it has been used in development of the cost estimate.

The Importance of the Estimator

The professional estimating team is the ABP Program’s principal line of defense in
ensuring project design is likely to meet construction budget expectations. Whereas each
design professional in the team may work on a subset of the project scope, the estimators
must become familiar with all content in all documents, and will frequently identify
issues that may not otherwise be apparent to the design team. Developing estimates with
the mindset of developing a bid estimate will allow the estimator to produce valuable
feedback to the design and owner team regarding final document clarity, accuracy,
bidability, and constructability. A professional independent estimator will be well
versed in fulfilling these multiple roles.

1.C.2 – Quality Assurance Check - Estimating

In order to enhance the validity of project cost estimates, most ABP cost estimates will
receive a quality assurance (QA) review in accordance with the QA Guidelines attached
hereto. All QA reviews shall be performed by the ABP Program Controls Group. The
reviews shall follow the steps contained herein, and shall be documented in writing in the
cost estimate file.

QA Review Guidelines

Scope Review

Review the scope of the work for which the estimate was developed. Documents to be

reviewed include scope descriptions, plans, specifications, studies, and correspondence.

Check to see that all scope elements are included in the estimate.

Estimate Format
Review correspondence and other documentation provided by the estimator which
identifies the required format that the estimate is to be presented in, e.g. CSI, bid item
numbers, Uniformat, etc., and check to see that the estimate is in the required format.

26

Summary Level Pricing Check

Review the summary level pricing represented by the overall estimate, if feasible. For
example, check the overall square foot price of the estimate and compare it with pricing
of similar bridge projects using the most pertinent pricing source available, e.g., historic
project pricing, or estimating manuals. After checking the summary level pricing
represented by the overall estimate, check the summary level pricing for each category of
work (CSI Category, or Work Breakdown Structure element) using similar pertinent
pricing sources.

Quantity Take-Offs
Check line item quantities. Review the estimator’s take-off files to ensure the accuracy
of quantities derived by the estimator. At a minimum, check quantities of major scope
items comprising the majority of the cost of the project. Ensure that quantity take-off
documentation is included in the estimate file prepared by the estimator.

Material Pricing
Check pricing of materials. Ensure that backup documentation is included in the estimate
file prepared by the estimator for all items of material. Backup documentation may
include vendor quotes, historic pricing from other recent estimates, photocopies of pages
from estimating manuals, copies of recent invoices, or other pertinent substantiation.

Equipment Pricing
Check pricing of equipment. Ensure that backup documentation is included in the
estimate file prepared by the estimator for all equipment. Backup documentation may
include vendor quotes, historic pricing from other recent estimates, photocopies of pages
from estimating manuals, copies of recent invoices or lease agreements, or other pertinent
substantiation.

Labor Pricing
Check pricing of labor. Ensure that backup documentation is included in the estimate file
prepared by the estimator for all labor. Backup documentation should include prevailing
wage agreements in the vicinity of the project and other pertinent information. If
appropriate, check to see that the backup includes a workup of the elements comprising
the fully burdened wage rate.

Overhead and Profit

Check to see that overhead and profit have been included in the estimate. Check to see
that the overhead and profit rates used are appropriate for the project. Ensure that the
estimate file prepared by the estimator contains a discussion/workup of overhead and
profit rates used.

Contingency
Check to see that the estimate contains an appropriate level of contingency, taking into
account the following factors: stage of design; level of scope definition; difficulty level of

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construction; chance of scope creep during design; chance of scope creep during
construction; construction risk factors (subsurface conditions, hidden conditions, form of
construction contract, construction contract pay item structure, market price trends, etc.);
bid climate; etc. Check to see that contingencies are applied in appropriate locations
within the estimate (below the bottom line, spread through line items, etc.). Ensure that
the estimate file prepared by the estimator contains a discussion/workup of contingency
rates used.

Disposition of Review Comments

The QA Reviewer shall document all questionable cost elements identified during the
review by red-lining the estimate, or other suitable means. The Reviewer shall then
discuss the review, including all questionable cost elements, with the estimator. The
estimator shall make adjustments to the estimate based on the comments provided by the
Reviewer, and shall provide a copy of the adjusted estimate to the Reviewer. The
Reviewer shall perform a final QA review of the estimate to ensure that all adjustments
discussed with the estimator have been incorporated into the estimate.

1.C.3 - ABP Estimating Group

The Program will employ its own group of estimators within the Project Controls Group
with program review and reporting responsibilities.

The ABP Estimating Group will be responsible to:

1. Review Cost Estimates (including quantity and pricing information) from

Designers.

2. Report at a Program Level the status of cost.

3. Formally comment on differences in the cost estimates at different stages of

design.

4. Generate Estimate Reconciliation sheets to show why the estimates have changed
from one stage to the next.

5. Identify and monitor those aspects that the Designer is accountable for – alerting
Program Management and design managers of discrepancies with
recommendation to mitigate.

6. Review ‘method of measurement’ and ‘basis of payment’ provisions and payment

items.

7. Develop and maintain a standardize construction cost estimating pricing, bid

items, procedures.

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 8. Monitor bid results and participate in bid approval.

The intent of the ABP Estimating Group Measure is to:

1. Ensure a high degree of accountability for elements of work that the

Designer/Engineer can control during the later stages of the design process.

2. Assist in promoting transparency and ‘reality’ of the true cost of construction.

3. Allow ample time to make corrective action during the design phase.

4. Promote a standardized approach to reviewing cost estimates at a Program level.

1.C.4 – Contract Specific Cost Contingency – from design to construction

The Agencies will apply a contract specific Cost Contingency during the evolution of the
design phase of an ABP contract that follows the process outlined below. It is important
to note that the proposed definition of “on-time-on-budget,” for the purposes of the
legislative reporting, includes a reasonable amount of cost and schedule contingency; the
section below is specific to the cost contingency.

1. Order Of Magnitude - Conceptual

In the earlier stages of the contract document preparation, when scope is not clearly
defined and/or there is an apparently high degree of difficulty in the planned
construction approach, a contingency will be allowed and budgeted for in the overall
ABP Program Budget. This will be done on a contract specific case. Because the
Agencies’ are currently using unit prices and conceptual estimates for many of the
projects, it is proposed that a corresponding construction Cost contingency of 30% be
included with any conceptual design estimates.

It is important to note however, that this 30% contingency is to be added to estimates

of the ABP bridges that have not yet been fully estimated but have been scoped. For
projects that have yet to be scoped (as of Dec-08), a contingency of 50% is
recommended.

2. Preliminary (Budget) – Preliminary Design 25%

As a design actually starts to evolve, and as drawings allow for quantity development
of major commodities, the professional estimator will work with the design team to
develop an allowance basis of “immeasurable items” (example: assume #6 rebar at 6”
on center). The schedule can be developed at this same degree of accuracy (15-30%).
Therefore, the proposed construction Cost contingency will be lowered to no less
than 20%.

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3. Definitive Estimate – 75% Design

In the later stages of design, as drawings progress to allow for much more accurate
quantity takeoff and pricing, and as a construction scheduler can start to develop a
crew-based approach to much more accurately define critical paths in the preliminary
construction schedule, a “Detailed Control Budget” can be reasonably established.
At this stage, the Cost contingency is proposed to be dropped to no less than 15%.

4. Detailed Engineer’s Estimate – Final Stages

In the later stages of design, as the Engineer’s Estimate evolves to allow for the full
development of a detailed Engineer’s Estimate, it is proposed that the Cost
contingency be 10-15% (depending upon study results below).

It important to note however, that it is not proposed that a 10% Cost contingency be
included in the final Engineer’s Estimate (for advertisement). The Engineer’s
Estimate is to be developed to provide for a reasonable cost projection of the contract
documents provided (and not a prediction of the low bid). Cost contingencies to be
added to the Engineer’s Estimate at this stage, will be discussed/evaluated, on a
contract-by-contract basis, as part of the risk/exposure discussion of the Estimate
Review Briefing with Senior ABP Management staff. The overall ABP Program
Control Budget that will include a proposed 10-15% Cost Contingency (again, such
contingency will not be part of the Engineer’s Estimate).

As mentioned in the schedule contingency section, and relevant to the cost

component of this section, at the time of bid, the contract Time (i.e. contract duration)
will include 10% Time contingency as part of the development of the Contract
Milestones. This 10% Time contingency will include overhead, and escalation, as an
allocated contingency in the overall ABP Program Control Budget.

5. Construction Phase
Once in construction, the same 10%-15% Cost contingency will be utilized and
budgeted for within the Program Control Budget to account for cost growth during
construction.

Recommended contingency studies

ADDITIONAL STUDY – for construction contingency validation

An ABP Program Budget exposure has been identified to monitor a budgetary risk
associated with the potential cost increases normally associated with highway/bridge
construction in the Northeast (winter impacts and common delay issues).

To validate the 15% Construction Cost contingency implemented, after some

construction contracts progress, the Agencies will perform a study of the past bridge
project completion costs and timeframes. This study will be examine to the bridges that

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have completed over the past 3 years and will compare the bid value vs. the actual Cost-
at-Completion to determine a reasonable percentage for which to budget. This study may
be commissioned within the coming months. If the findings conclude that there needs to
be a budget allotment of much greater than the 15% previously added, then the Agencies
will adjust the program and Budget Control in a reasonable manner.

1.D CONTRACT COST MANAGEMENT

1.D.0 – Contract Cost Management Summary

The ABP will adopt contract cost management measures that have proven to be effective
in the industry. These measures include Constructability Reviews, Claims Avoidance
Reviews, Contract Trending, and effective Contract Administration. When combined, all
of these measures will allow Program Management to optimize management and control
of costs at the project contract level.

1.D.1 - Constructability Reviews For Select Contracts

Constructability reviews will be performed on select site-specific ABP projects.
Performing constructability reviews on construction contracts during the design phase is
a proven method for optimizing construction contract costs and schedules and using the
$5 million threshold for projects receiving this review will achieve an appropriate
cost/schedule benefit. An effective constructability review will identify project elements
contained within the design documents that will hinder efficient construction and add
unnecessary cost and time to the construction project. Requiring constructability reviews
on all ABP projects will also ensure that specific construction knowledge and expertise
are incorporated into the design of each project contract. It is important to perform
constructability reviews early enough in the design process to allow for incorporation of
pertinent comments and recommendations with minimum chance of requiring major re-
design or design change.

I.D.2 - Claims Avoidance Reviews For Select Contracts

Claims avoidance reviews will be performed on select site-specific ABP projects. It is
not possible to completely eliminate claims and change orders from the construction
process; however, performing claims avoidance reviews during design is a highly
effective means of minimizing claims and change orders during construction, and in turn
minimizing construction contract costs and optimizing construction contract schedules.
Effective claims avoidance reviews will identify specific areas within the project contract
documents that are prone to construction change orders and claims, and provide specific
recommendations on how to mitigate that exposure. The potential cost and schedule
savings from an effective claims avoidance review will far outweigh the cost of
performing the review.

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I.D.3 - Effective Contract Administration

The ABP Program Management will maintain contract administration procedures on all
ABP projects, with the objective of resolving and settling all construction change orders
and claims as quickly and effectively as possible. The implementation of formal contract
administration procedures, along with instituting an atmosphere of mutual cooperation
between the Agencies and construction contractors will enhance the likelihood of
successful projects, while minimizing the exposure to protracted disputes and their
associated costs and schedule delays. Specific measures to ensure effective contract
administration will include:

• providing adequate level of authority for ABP on-site representatives to negotiate

and approve change orders;
• providing adequate contract administration resources/personnel for each ABP
project;
• Maintaining clear/concise contract administration procedures and ensuring that
construction contractors understand them;
• fostering an atmosphere of professional cooperation with construction contractors;
• reaching forward-priced change order agreements to the maximum extent

possible;

• using unilateral contract modifications when necessary to keep construction work

progressing; and
• use of auditors to verify high cost change orders and claims.

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 SECTION 2 – SCHEDULE CONTROL

2.A DESIGN PHASE SCHEDULE CONTROL

2.A.0 – Design Phase Schedule Control – Summary

The Agencies will require each ABP Designer to develop and maintain a detailed Critical
Path Method (CPM) design schedule that will be used to monitor and track design
progress; critical design tasks; critical decision dates; and critical actions required by all
parties involved in the design process. These mandatory design schedules will ensure that
the design phase of the overall ABP is progressing efficiently, foster more in-depth and
transparent design planning, develop an auditable trail of accountability, assist in change
management and budgeting, and support portions of the ABP legislative reporting
requirements.

The key elements of effective design schedule control are: accurate schedules; reporting;
transparency; accountability; and change order management. The following three
documents will be used to support these key elements.

1.) Project Design Schedule – a detailed CPM schedule which shows how the
designer plans to execute the design, planned resources (designer hours), design
activities and their durations, and the logical relationship of each of the design
activities.

2.) Design Consultant’s Monthly Report - a monthly summary report which includes
the following information:
• Overview
• Accomplishments for the month
• Upcoming key deliverables
• Critical action items (listing person responsible and need date)
• Summary financial report
• Project Meetings – past and future
• Community meetings

3.) Scope Statement – a descriptive statement of the project scope developed and
managed by the Agencies’ Design Manager. The scope statement will be revised
and updated as the design progresses. A reconciliation statement that clearly
describes scope changes will also be developed at each stage of the design. The
reconciliation statement will also include the specific reasons for all scope
changes.

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2.A.1 – Schedule Management and Performance During Design

The Agencies will require the ABP Design Consultants to provide in-depth and
transparent design planning. Design planning will be centered around a requirement to
provide a detailed baseline CPM Design Schedule which shows how the designer plans to
execute the design, planned resources (designer hours), design activities and their
durations, and the logical relationship of each of the design activities. These Design
Schedules will be used to monitor and track design progress, critical design tasks, critical
decision dates, and critical actions required by all parties involved in the design process.

This portion of the program control plan will consist of the following elements:

1. Design Performance Ratio

The Agencies will require Design Consultants to cost-load their Design Schedule,
based upon planned resources, and provide a detailed breakdown of the
Designer’s overall fee. Performance of the Designers will be measured using a
design performance ratio. Each month, in order to receive authorization for
payment, the Designer will be required to submit a requisition that includes the
following components:

1.) Planned incremental design fee – by discipline/task as related to the

planned schedule (example Structural/design foundations = $40,000
planned design fee expenditure up to the date of billing).
2.) Actual incremental design fee (example: Structural/design foundations =
$36,000 actual design fee expenditure up to the date of billing).
3.) The resulting performance ratio ($40k/$36k = 1.11)

This will allow the Agencies’ Design managers to quickly identify areas of
concern. Any task with a performance ratio above 1.0 indicates a possible delay
in completing the design task.

This will be added to all future Design Requirements (after Jan-09).

2. Project Design Schedule

Design Consultants will be required to prepare and submit one (1) original and
five (5) copies of a Design Schedule as part of their Project Management Plan
submission to the Agencies for approval. This schedule will outline the activities
to accomplish the design work, in accordance with the requirements of the
Contract Time Provisions of the Design Consultant’s Contract, and will be
founded upon the existing Design Schedule Template.

• The Project Management Plan shall establish the framework for the
project, including the organization of participants, responsibilities,
decision structure, channels of communication and procedures to be
followed in developing the design within the required timeframe.

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 • The Project Design Schedule shall establish all project milestones

pertaining to data collection, field survey/inspection, preliminary and final
design submissions, including plans, specifications and construction cost
estimates, and construction phasing plans, if appropriate.

The Project Design Schedule shall be developed and maintained using MS Project
or Primavera Scheduling software (or approved equivalent), and shall include
such information as required in the standard bridge schedule template (as
amended), or other schedule guidance issued by Agencies for the project. Design
services shall be undertaken and completed in accordance with the Project Design
Schedule as approved by the Agencies, and as revised and updated from time to
time by Design Consultant. The Project Design Schedule shall be used by the
Design Consultant and the Agencies for planning and monitoring the progress of
the design work.

This will be added to all future Design Requirements (after Jan-09).

3. Project Tracking Points

The Project Design Schedule shall include interim design completion milestones,
and shall clearly define the progression of the Work from NTP to design
completion by using separate activities for all significant design components,
including but not limited to:

1. Start project planning

2. Complete project planning
3. Environmental Impact Analysis
4. Right of way takings
5. Prepare design RFP
6. Advertise Design RFP
7. Award Design RFP
8. Start 25% design
9. Bridge sketch plans complete
10. 25% design public hearing
11. Complete 25% design
12. Bridge sketch plans approved
13. 25% design plans approved
14. Start 75% design
15. Bridge first structural submission
16. Complete 75% design
17. Bridge first structural submission approved
18. 75% design approved
19. Start 100% design
20. Bridge final structural submission
21. Complete 100% design
22. Bridge final structural submission approved
23. 100% design approved

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 24. Permit applications filed

25. Permits received
26. Issue Construction IFB
27. Open bids
28. PS&E Submission
29. Approval to Advertise
30. Advertise

This list is currently being finalized by the design schedule review team and is
subject to change.

The Design Consultant shall update and submit the monthly Project Design
Schedule. The monthly update shall: describe work completed during the
reporting period; describe work planned for the next reporting period; explain and
comment on schedule delays; provide costs-to-date and a statement of the
adequacy of the remaining design budget; indicate MBE/WBE/DBE activities;
and indicate anticipated problems with recommended solutions.

4. Design Consultant’s Monthly Report

As part of the monthly requisition for payment, the Design Consultant shall also
prepare a monthly summary report to include the following aspects:
• Overview
• Accomplishments for the month
• Key deliverables upcoming
• Critical action items (listing person responsible and need date)
• Summary financial report
• Project Meetings – past and future
• Community meetings

2.A.2 – Scope Statements

Industry experience has shown that infrastructure project scopes have an inherent
tendency to change over time due to a variety of factors. These scope changes almost
inevitably result in changes to project costs and schedules. Accordingly, it is essential to
record and monitor project scope from project inception through final construction
completion. Tracking and recording all changes to project scope enable accurate and
effective management and reporting of associated cost and schedule growth. Early
development and continuous updating of project scope statements is a tool that will
enable Agencies to monitor and control the effects of scope changes on all ABP projects.

The Agencies’ design managers will develop a scope statement for each ABP project at
initial project inception. The scope statement will be revised and updated at each stage of
the design. A reconciliation statement that clearly describes scope changes will also be
developed at each stage of the design. The reconciliation statement will also include the
specific reasons for all scope changes and all associated cost and schedule changes.

36

The function of this control measure will be to:

1. Assist in overall change management.

2. Assist in promoting transparency and ‘reality’ of the true cost of construction.

3. Allow ample time to take corrective action during the design phase.

4. Promote a standardized approach to developing the early scoping documents, and

managing and controlling project scopes over time.

Contract specific Scope Statements

For each ABP project, the project Scope Statement will be updated at the following
points in time:
1. Contract Specific Design Budget - before Designer selection
2. Contract Specific Design Budget - after Designer selection
3. 25% Design Stage
4. 75% Design Stage
5. 100% Design Stage
6. Engineer’s Estimate (PS&E)
7. Contract Completion (identifying all major changes)

Initial Implementation
A standard form will be developed (by Feb-09) to utilize on a future ABP projects. This
form will be filed at each design phase and identify when each significant scope change
is made. This will document the history of the scope changes over the life of the project.

2.B - CONTRACT TIME DETERMINATION

2.B.0 – Contract Time Determination – Summary

In order to minimize costly delays during construction, it is vital that a Critical Path
Method (CPM) Schedule be developed during the planning stages of every ABP project.
This CPM schedule needs to be founded upon the critical elements of the contract
documents (including limitations of operations), the corresponding construction cost
estimate data, and a reasonable determination of the possible construction means-and-
methods.

During the design phase, the Agencies will ensure that professional construction
schedulers are utilized to prepare construction schedules that will determine the overall
Contract Time (duration) of each ABP construction contract. This will be referred to as
the Contract Time Determination schedule (a.k.a. pre-bid construction schedule), and will
be utilized throughout the design phases.

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The Agencies will also ensure that the critical information (crews, equipment, production
rates, quantities, construction sequence) from the construction cost estimate (section 1.C)
is integrated with the basis of the Contract Time Determination schedule. This will also
assure that contract documents have been planned with efficient construction planning
practices.

Once the construction contract has been awarded, this Contract Time Determination
schedule will be compared with the construction contractor’s Baseline Schedule
submission. This will ensure that the Contactor has incorporated all scope elements in its
schedule, is not positioning for a schedule claim, is utilizing the schedule to logically plan
the work, and has planned the work properly to avoid major surprises or delays.

This schedule also contains a quality control review plan for Contract Time
Determination schedules that will be used on ABP projects.

2.B.1 – Contract Time Determination (Pre-Bid Schedule)

Critical Path Method (CPM)

The Contract Time Determination schedule and the construction schedules that are
required from the Contractors will be developed using the CPM. This method is the
industry standard and calculates the longest path of planned activities to the end of the
project, and the earliest and latest that each activity can start and finish without making
the project longer. This process determines which activities are "critical" (i.e., on the
longest path) and which have "total float" (i.e., can be delayed without making the project
longer). In project management, a critical path is the sequence of project network
activities which add up to the longest overall duration. This determines the shortest time
possible to complete the project. Any delay of an activity on the critical path directly
impacts the planned project completion date (i.e. there is no Float on the critical path). A
project can have several, parallel, near-critical paths. An additional parallel path through
the network with the total durations shorter than the critical path is called a sub-critical or
non-critical path. Float is the amount of time an activity can be delayed without
impacting the milestone or project completion date.

It will be the responsibility of the Design Consultant on site specific construction

contracts greater than $1 Million (construction value) to utilize a qualified construction
scheduler to develop the Contract Time Determination schedule. A schedule submission
will be required following the submission of each construction cost estimate.

These types of schedules will not be submitted until after the construction cost estimate is
complete, in order to provide adequate time for the professional scheduler to utilize the
data generated in the construction cost estimate. In general, these schedule submissions
will be due to the Agencies no sooner than 3 weeks and no later than 5 weeks, after the
construction cost estimate has been completed.

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This will be added to all future Design Requirements (after Jan-09).

The steps to implement this control measure are to:

1. Require an evaluation of critical resources, shift differential, overtime, and

construction escalation costs as part of the Engineer’s Estimate (PS&E) and
Contract Time Determination schedule. This will also serve as a means of
assuring that contract documents have been planned with efficient construction
planning practices.

2. Compare the Contract Time Determination Schedule to the construction

contractor’s Baseline Schedule submission once the construction contract has
been awarded. This will ensure that the Contactor has incorporated all scope
elements in its schedule, is not positioning for a schedule claim, is utilizing the
schedule to logically plan the work, and has planned the work properly to avoid
major surprises/delays.

Use of Critical Data from the Construction Cost Estimate

The Agencies will ensure that the data (crews, equipment, production rates, quantities,
construction sequence) from the detailed construction cost estimates is utilized in the
development of the Contract Time Determination schedule. The professional scheduler
will develop the logic (activity relationships) and activity durations, using the data from
the estimate. Production rates and labor hours will be used to develop reasonable crew
hours that are based upon a reasonable crew composition (example: 1 labor foreman, 3
journeymen, and 1 apprentice). This evaluation will also consider to the intended
construction sequence.

Milestones and Access Restraints

Contract Milestones are contractual dates by which the Contractor will be obligated to
complete work. The Agencies include a date for completion of the work as well as a
Liquidated Damages clause in each construction contract to protect the Agencies from
damages resulting from inexcusable late completion.

Access Restraints are also contractual dates. However, these are included in the contract
to serve as a contractual means to control the start the contractor’s work. (Example: “the
contractor will receive access to parcel 45 no sooner than 60 days from the Contract
Notice-to-Proceed date.”)

The Designer’s Professional Scheduler will be responsible to work with the Agencies to
determine which Contract Milestones and Access Restraints should be included in the
contract provisions and to include them in the Contract Time Determination schedule.

Limitations of Operations – Construction Constraints

Limitations of Operations are important restraints that the Contractor must be aware of in
order to adequately develop a construction cost estimate (bid) and schedule. (Example:

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“The Contractor will not be allowed to perform any work after 6:00PM”). In order to
minimize construction claims, ensure quality bidding, and avoid major discrepancies with
the Engineer’s Estimates, it is vital that these Limitations of Operations be clearly defined
in the construction contract. The Designer’s Cost Estimator and scheduler will be
required to communicate regarding the implications of these constraints.

Open Ends
A CPM schedule relies on the logically tied relationship of each activity. “Open Ends”
are created when an activity does not have a successor (i.e. an activity that depends upon
the completion of a predecessor activity). The professional construction scheduler will
ensure that all of the activities in the overall schedule have been adequately tied and that
there are no open ends in the schedule.

Other Important Elements

The professional scheduler will also be responsible to ensure that the following important
Time (contract duration) related elements are included in the Contract Time
Determination schedule:
• time required for the Contractor to plan the work and mobilize prior to
starting physical work;
• preparation of critical submittals;
• review of critical submittals (by designer)*;
• procure/order materials;
• fabricate and deliver long-lead items;
• testing;
• commissioning;
• winter restrictions; and
• agency/utility/city restrictions.

* The Agencies will have a standard submittal review duration of 30 calendar days
– with the exception of more complicated submittals (to be defined). These will
have durations of 60 calendar days. This clause will help to properly plan the
work and avoid a dispute (claim) for delays at the inception of the project.

Near Term Mandate – related to planning construction packaging

The Agencies recognize that a critical aspect to the success of this ABP is the planning
of:
1. right-of-way acquisitions;
2. permitting; and
3. environmental approvals.

The Agencies will initiate a formalized study of all bridges to be constructed near term to
ensure that accomplishment of these elements has been accounted for properly.
Commensurate changes will be made to the Program Budget and Program schedule, if
necessary.

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2.B.2 – Quality Control Plan - Contract Time Determination

Each ABP pre-bid construction schedule (a.k.a. Contract Time Determination schedule),
for site specific construction contracts greater than $1 Million will be prepared by a
qualified construction scheduler and shall receive a QC review in accordance with the
guidelines delineated herein. Reviews shall be performed and documented prior to
delivering the schedule to the Agencies.

This will be added to all future Design Requirements (after Jan-09).

Quality Control Review Guidelines

• All schedule QC reviews shall be performed by a qualified professional other than
the individual that developed the original schedule. This person is herein referred
to as the Schedule Reviewer.
• The Schedule Reviewer shall use the following procedure as a guideline when
performing schedule reviews.

Contract Scope Review

The Schedule Reviewer shall review the project documents for the work for which the
pre-bid construction schedule was developed to become familiar with the major scope
elements of the project. Documents to be reviewed include scope descriptions, plans,
specifications, studies, correspondence, and any construction estimates that were
developed. A check will be performed to verify that the major scope elements are
included in the final schedule.

Schedule Format
The Reviewer shall make sure that the schedule has been developed in accordance with
the requirements of the Agencies’ contract scope and specifications describing the
schedule requirements. The final Contract Time Determination Schedule will be
provided to the Agencies in hard-copy form (plots or 11x17). The Reviewer shall also
ensure that the schedule is developed in the format required by Agencies. The Reviewer
shall make sure that:

• the Work Breakdown Structure is clear and logical;

• all contract bid items are incorporated;
• contract milestones are included and are clear and logical;
• graphics are clear and understandable;
• and electronic files are provided.

Basis Statement – List of Assumptions

The Reviewer will validate the basis statement and list of assumptions that have been
prepared by the professional scheduler. The Reviewer shall compare the basis statement
with the key scoping documents that were provided by the Engineer/Designer to ensure
that the basis statement documents any major assumptions needed to address incomplete

41

or unclear design elements and recommendations to be addressed by the

Designer/Engineer before the bid documents are finalized. These elements are necessary
to fully assess the contract time. Examples include: work hour restrictions, limitations to
access the work, temporary construction, submittal preparation and review time, crew
basis, labor availability, right-of-way takings, contaminated soils, test pits, etc.

Summary Level Duration

The Reviewer will evaluate the summary level duration. For example, the Reviewer will
check the overall square footage in a pre-bid construction schedule for a bridge deck
replacement and compare it with the duration of similar bridge deck replacement projects
using the most pertinent source available, e.g. other as-planned construction schedules,
as-built construction schedules, etc.

Transition of Critical Data from the Construction Cost Estimate

On all site specific construction contracts greater than $1 Million, the Agencies will
require that all Contract Time Determination schedules are integrated with the
construction cost estimate. The Reviewer will check to ensure that important data from
the estimate has been incorporated into the schedule, including a consideration of the
intended construction sequence, production rates, and labor hours/crew hours. Major
differences between the durations in the cost estimate and those in the schedule on critical
paths will be documented and/or provided with a Log-Note in the schedule file itself.
The differences will need to be resolved prior to final approval to advertise the
construction contract.

Critical Path
The Reviewer will perform a random “spot check” of 3 of the top 10 critical paths. The
Reviewer will:
• follow the logic/sequence (to validate reasonableness of the

successor/predecessor activities);

• check 50% of the durations on each these paths (to ensure that there is an
adequate basis for them – crews/manhours, etc.);
• validate the reasonableness/basis of any significant lags that are used;
• ensure that calendars have been used properly; and
• ensure that the top critical path is a logical critical path for the project.

If there are significant problems with this spot check, or the checks in the two paragraphs
that follow, the Reviewer will meet with the Scheduler to resolve findings and will
continue to evaluate other paths and other aspects of the schedule.

Milestones and Access Restraints

The Reviewer will check to make sure that all Milestones and Access Restraints
identified in the project documents are included in the schedule. The Reviewer will also
perform a spot check of the Contract Milestones and Access Restraints. If there are
fewer than 10 Contract Milestones/Access Restraints, the Reviewer will check each of
the top paths to the Milestones for reasonableness and completeness. For those schedules

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that contain more than 10 Milestones/Access Restraints, the Reviewer will validate no
less than 10% of the Milestones/Access Restraints, in a similar fashion described above.
The Reviewer will also ensure that the Milestones/Access Restraints have been inserted
into the schedule software properly (i.e. activity type and zero duration).

Limitations of Operations – Construction Constraints

The Reviewer will check to make sure that all limitations of operations identified in the
project documents are included in the schedule. The Reviewer will perform a spot check
of the limitations of operations (specified in the contract documents) and/or constraints.
If there are fewer than 10 of these restrictions, the Reviewer will check to ensure that
each of the limitations has been adequately accounted for and that a reasonable successor
has been included. For those schedules that contain more than 10 of these limitations, the
Reviewer will validate no less than 30% of them, in a similar fashion described above.

Open Ends
The Reviewer will ensure the schedule submission contains no open ends. These are
activities that are not assigned a successor and therefore contain excessive float values.
The one exception to this is the final contract Milestone.

Other Important Elements

The Review will check to see that there is adequate time/duration to account for the
reasonable time required for the Contractor to plan the work and mobilize prior to starting
physical work and to complete the contract work. The Reviewer will validate that there
is adequate time to:

• prepare and review critical submittals;

• procure/order materials;
• fabricate and deliver long-lead items;
• test;
• commission the project;
• accommodate winter restrictions; and
• accommodate agency/utility/city restrictions.

Contingency
The Reviewer will check to see that the pre-bid construction schedule contains an
appropriate level of schedule contingency taking into account the stage of design, level of
scope definition, and/or difficulty level of construction. The Reviewer will also ensure
that the pre-bid construction basis statement contains a discussion/workup of any Time
contingency used.

Disposition of Review Comments

The Reviewer shall record all of the comments developed during the review. The
Reviewer shall then discuss each review comment with the Scheduler. The Scheduler

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shall make adjustments to the pre-bid construction schedule based on the comments
provided by the Reviewer, and shall provide a copy of the adjusted pre-bid construction
schedule to the Reviewer. The Reviewer shall perform a final QC review of the pre-bid
construction schedule to ensure that all adjustments have been incorporated into the final
bid documents to be advertised.

Final QC Approval
Completion of the Schedule QC Review will be required prior to approving the contract
documents for bid advertisement.

2.B.3 – Delivery Method – Use of Design-Build Contracts

Design-Bid-Build (DBB) has historically been the routine project delivery method used
for MHD and DCR projects. It is commonly accepted in the design and construction
industry that using the Design-Build (DB) project delivery method will result in a shorter
project duration than if the DBB project delivery method is used, primarily because
construction can begin prior to design completion.

The objective of this program will be to:

Implement the use of DB contracts, where appropriate, in order to minimize project
schedules.

2.C - CONSTRUCTION SCHEDULE CONTROL

2.C.0 – Schedule Management During Construction

The Agencies recognize the significance of timely and accurate construction schedules.
MassHighway has already begun to draft major enhancements to the schedule
requirements of the Construction Contract Specifications. This section highlights
additional enhancements that will be made and describes the manner in which the ABP
Program Controls Group will assist in some of the future ABP projects.

In the sections that follow, the specifications, types of schedules, quality of the
Contractor’s Schedule Submittals, and other schedule-enhancement tools to be used on
the Program will be explained. These requirements, concepts, and best practices, will be
implemented in the project management procedures of the ABP.

Heavy/highway contractors may generate claims that are founded on the construction
schedule of record (official schedule submittal). However, the construction schedule may
not be maintained and the schedule requirements of the construction contract may not be
enforced, and as a result, the Owner is left with little to present in defense of the claim.
The Accelerated Bridge Program will implement several steps in the sections that follow
to ensure that cases like this are minimized.

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The construction schedule control program has been designed to:

1. Provide the Agencies’ project managers with training sessions on best practices of
construction schedule control (including Primavera or equivalent, CPM, Work-
Session, Schedule Recovery, Critical Issues Reporting, Documentation, and Field
Verification).

2. Develop and implement a standardized approach to construction schedule reviews

and construction delay analysis.

3. Provide the Agencies’ Schedule Control Manager with the necessary tools and
resources to ensure that contractors are progressing diligently.

4. Ensure that the proper critical information flows from the field to the program
level to ensure that informed program level decisions are made efficiently and
effectively.

5. Ensure that proper documentation is provided to build the necessary audit trail in
defense of time-related delay claims.

In order to perform this program, the following steps will be implemented:

1. A professional Construction Scheduler will be part of the new ABP Program

Controls Group. Initially, one construction scheduler will be assigned to each
District (5 MHD and 2 for DCR). The District Construction Engineer will be
responsible for prioritizing the assignments of this construction scheduler (based
upon critical need and benefit).

2. The Construction Schedulers will be responsible to:

• Review and comment on the Contractor’s baseline schedule;
• Participate in contract status meetings;
• Work with field inspectors to verify actual progress in the field – including
construction resources planned vs. actual;
• Generate ideas and studies to recover time delays;
• Review, comment on, and present monthly status update submittals (from
the Contractor);
• Summarize and report on key schedule aspects of the individual projects
to the upper program level;
• Support Agencies’ District Manager functions related to schedule
reporting and presentations;
• Prepare and present aspects of schedule delays and claims for Time; and
• Provide schedule training to Agency inspectors and project managers.

45

 3. ABP Project Managers and Schedulers will review critical information in the
Contractor’s Monthly Schedule and will routinely review, comment, and
document the reason and basis for schedule changes.

4. The Agencies will update the current Schedule Specifications and internal
procedures to promote the transparency and accountability required as part of the
ABP Legislation.

5. The Agencies will also provide guidance and training to the ABP Project
Managers/Resident Engineers on developing CPM schedule reviews, with
Program integration (reporting and standardization) in mind. The Resident
Engineers will continue to have a major responsibility of providing the primary
review of each of the Contractor’s monthly schedule updates.

Initial Guidance Recommendations:

After the issuance of a Notice-to-Proceed to the Contractor, each ABP site specific
construction project will have its own unique project schedule. This schedule will detail
the Contractor’s work plan to complete all work on the project within the time specified
in the Contract, including any interim milestones. There are multiple types of schedule
submittals for each project, and multiple levels of schedule reviews that will need to be
completed. Many of the required elements for each schedule submittal are detailed in
contract documents such as the Standard Specifications and Special Provisions, while the
process for performing the schedule reviews is detailed in the Quality Control Plan. The
following are some examples of typical construction milestones:

Preservation Contracts
1. Contractor NTP
2. Mobilization
3. 25% complete
4. 50% complete
5. 75% complete
6. Substantial Completion
7. Final acceptance
8. DHD Certificate of Completion

Replacement Contracts
1. Contractor N.T.P.
2. Complete Structural Steel Shop Submittal & Drawings Submitted
3. Bridge Deck Demolition Complete
4. Substructure Replacement/Repair Complete (if applicable)
5. Structural Steel Replacement Complete
6. Final Bridge Deck Restored
7. Substantial Completion
8. Final Acceptance

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 9. DHD Certificate of Completion

Repair Contracts
1. Contractor N.T.P.
2. Complete Structural Steel Shop Submittal & Drawings Submitted
3. Complete Concrete Repair Submittal & Drawings Submitted
4. Bridge Deck Repair Complete (if applicable)
5. Structural Steel Repair Complete (if applicable)
6. Substructure Repair Complete (if applicable)
7. Substantial Completion
8. Final Acceptance
9. DHD Certificate of Completion

The actual schedule submittal requirements will be detailed in the contract documents in
terms of frequency and items to be submitted. The typical project will include:

• preliminary schedule submittal (pre-NTP);

• a baseline schedule (initial work plan generated from the Contractor’s bid
plan); and
• schedule updates (typically monthly).

Depending on how the project progresses, there may also be revised schedules or even
time-impact schedules on a case-by-case basis. The typical schedule submittal includes
an electronic file, hardcopy plots and a schedule narrative. The electronic schedule file is
the most important part of the schedule submittal as all information necessary to
complete the schedule review can be found in the electronic file. A hard copy submittal
(or even a PDF plot) should never be accepted in lieu of the electronic file as changes in
the schedule may not be apparent when reviewing only a static print.

Schedule Narrative
A schedule narrative will be required for every schedule update the construction
Contractor submits. This will detail the current status of the project, work performed in
the past update period, and all changes to the schedule being proposed in the schedule
submittal.

Preliminary Schedule
Review of the Preliminary Schedule Submittal typically is based on activities expected to
be performed in the initial 90 days. The focus of this review is to see the general phasing
of the project, planned performance on major contract milestones and overall time, initial

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cost and resource loading. Generally a preliminary schedule review is not considered
comprehensive but will provide an overview of the Contractor’s approach to the project.

Baseline Schedule
The review of the Baseline Schedule submittal is the starting point against which all
delay and production issues are measured. It is the comprehensive review of the
Contractor’s initial work plan to complete the project within the specified contract
Time/duration. To assist in the review of the Baseline, the Agencies’ Scheduler(s) will
utilize the valuable information that is developed as part of the Contract Time
Determination schedule (done by a professional scheduler during design). The Baseline
Schedule will be compared against this document to see how the Contractor’s planned
approach to the project varies in planned production, sequencing and milestone
completion. This will help to quickly identify problems (related to scope, intent,
production, restrictions, etc.), and will be part of the documented review comments that
the Agencies’ Scheduler will develop.

All work scope contained in the Plans, Contract, Specifications and Special Provisions
should be included in the Baseline Schedule along with a verification of the planned
durations, schedule logic, and cost and resource loading as required. Once the Baseline
Schedule is accepted, this submittal becomes the ‘schedule of record’ for the project until
superseded. The Agencies’ Specifications and Special Provisions will indicate the
process for receiving a schedule submittal and the time allowed for review and response.

Monthly Schedule Updates

The Contractor’s Monthly Schedule Update will be based on the most recent/past
‘schedule of record’. Typical schedule updates include changes to actual progress and
earned costs and resources, changes in schedule logic, added/deleted tasks, modified
durations, etc., which will require review and acceptance prior to approval in the
schedule. If a schedule update submittal is rejected, subsequent submittals will be based
on the last accepted schedule by the Agencies until a new schedule of record is approved.
Along with analysis of the technical schedule data, validation of as-built schedule data
such as actual dates, percentage complete and resource expenditure is required. The
validation of these items generally requires the assistance of project field staff or
documentation. Therefore, the Agencies will make it a practice, on all site specific
contracts over $1 Million, to have the ABP Field Engineers reference the schedule
activity identification # in their Daily Reports.

Revised Schedule
Revised Schedule Submittals require careful examination because the Contractor is
proposing modifications to the approved work plan that may not be in accordance with
the Contract documents. Revised Schedules used to validate alleged delay claims require
a comprehensive review in addition to the normal Schedule Update. In this process, the
Contractor is often seeking approval for work/delays that have not yet occurred The
Agencies’ procedure will validate the proposed changes with a detailed review of the

48

Contractor’s planned resources, sequencing, production rates, and potential impact to the
contract substantial completion date.

2.C.2 – Integrated Program Schedule – From Contract To Program Level

An ABP Integrated Program Schedule will be developed and maintained to provide

Agencies the ability to review and report on the overall health of the Program and
standardize the management of multiple projects. This will be accomplished by requiring
all ABP project schedules (from the Contractor and the Agencies’ schedulers) to conform
to a structure that is consistent in content and organization. This will allow
reporting/statusing of the individual projects, as well as summary level reporting, for
various breakdowns such as by city/district/region, fiscal year budget planning, or critical
letting and construction milestones.

This program will also be developed with a procedure that promotes accountability at the
contract level and transparency/visibility at the Agencies’ executive level.

The objective of this portion of the Construction Schedule Control program will be
to:

1. Ensure transparency in reporting project/contract level problems;

2. Provide a system of accountability at the project/contract level;

3. Ensure that program level decisions are made based on critical contract level
considerations and status as a basis;

4. Develop an efficient mechanism to summarize and report on the overall ABP

program health; and

5. Provide the ability to create multiple levels of reporting for ABP projects within
the larger Program. The implementation of a consistent schedule structure will
allow standardized routine reporting within the overall program, at the most
detailed level.

Control/Accountability Aspects
The Agencies’ Integrated Program Schedule will be generated with a formal procedure to
ensure accountability at the project level. This will be done with the following steps:

1. The Contractor will provide weekly construction updates during the weekly
construction status meeting held by the Agencies Resident Engineer/PM. The
Agencies’ Scheduler may attend and receive meeting minutes.

49

 2. The contractor will provide monthly construction schedule updates in accordance

with the requirements of the Agencies’ scheduling specification.

3. Upon receiving the Contractor’s schedule, the Resident Engineers (and/or District
Schedulers) will review the schedule and provide comments in a written report to
the ABP District Construction Engineer in a timely manner.

4. The ABP District Construction Engineer will promptly review the report and
direct the District Scheduler on how to proceed with the monthly update of the
Integrated Program Schedule.

5. The District Scheduler will routinely update the Integrated Program Schedule that
will be utilized for summary level reporting. The Program Controls Group will
be responsible to coordinate the information from the field, ensure consistency in
reporting, and prepare the reporting information.

The following steps will be taken by Agencies to provide for successful Program
level schedule implementation:

1. Develop Agencies‘ desired Program-level reporting for time, cost and resource
status;

2. Determine the appropriate schedule structure and schedule loading requirements

based on the Agencies’ needs for the Program;

3. Refine the schedule specifications to be included in contract documents for each

project within the Program; and

4. Create Program-level reports concurrently with the review of the individual

project schedule updates on a monthly basis.

Organizational Requirements
The key to the Integrated Program Schedule is the creation and implementation of a
specified work breakdown structure (WBS) that will become the basic organizational
structure for each project schedule. Program level schedule report formats will also be
developed. Each construction contract will include similar WBS and schedule loading
requirements at bid advertising. Once the WBS has been implemented throughout the
program, program status reports will be developed on a monthly basis coinciding with the
monthly updates provided for each project. The Program-level reporting can be provided
concurrently with or independently of the individual integrated project schedule update.

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2.C.3 – Contract Specification Amendments

a. Contractor CPM Schedules

The schedules submitted by typical highway construction contractors are only as detailed
as required by the contract specifications, and are often times diluted by the lack of
enforcement of scheduling specification requirements. This has historically complicated
the determination of delay causation, and has hindered the owner’s ability to implement
effective schedule control and recovery measures.

Accordingly, the Agencies will supplement the existing construction contract schedule
specifications to require more comprehensive construction schedule submittals from
construction contractors. The Agencies will require that all construction contractor
schedules, for all site specific ABP projects greater than $1 Million, be generated using
the Critical Path Method (CPM), and Primavera Scheduling Software (or approved
equivalent). This requirement will assure the foundation for adequate/defendable delay
analysis, schedule control, and efficient reporting processes.

The Agencies’ schedule specifications will be broken down into general, technical, and
project-specific requirements. There will also be another level of schedule specification
for sub-projects within larger projects.

General specifications will govern the basic information to be included in the CPM
schedule. These will include, but not be limited to:

• maximum and minimum durations for tasks;

• working units (typically days but can be hours);
• working periods per day/week/month;
• cost and resource loading requirements;
• frequency of schedule submissions;
• definition of critical path and float time;
• procedures for time impacts and delay claims;
• procedures for preliminary schedules;
• baseline schedule requirements;
• revised and updated schedule requirements; and
• procedures for schedule reviews and responses.

The technical specifications will govern requirements related to the scheduling

application. These include, but are not limited to:

• the type of scheduling software;

• the format of schedule submittals;
• schedule calculation methods;
• and organization and layout;
• requirements for work breakdown structure (WBS); and

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 • activity coding.

Project-specific specifications will vary among projects. These include, but are not
limited to:

• weather considerations,
• work limitations and working periods,
• construction sequence, and
• contract milestones.

Scheduling Specification enforcement is as important as comprehensive contract

requirements. The Standard Specification will not apply to every project in the Program.
It will be necessary to develop guidance on CPM schedule Special Provisions that will
allow Agencies to be responsive to various levels of project complexity and cost. Some
of those recommendations have been previously addressed in this Report.

b. Primavera Software (or Equivalent)

The Agencies will mandate that all Contractors of site specific contracts greater than $1
Million utilize Primavera scheduling software (or equivalent) to control both cost and
schedule of the Accelerated Bridge Program in the most effective manner and to provide
the a uniform reporting platform. This type of software is endorsed by many state
departments of transportation, is the software most commonly used by the local
Contractors, and is the preferred choice of local claims consultants that work for state
agencies.

The main objectives of this requirement will be to:

1. Ensure effective, standardized ABP schedule reporting.

2. Ensure an effective, standardized approach in analyzing delays and reviewing

contractor schedules.

3. Provide for the most efficient/timely mechanism to share schedule update

information.

4. Provide the most efficient and effective mechanism to summarize program status
(project “roll-up”) and manage multiple projects in an accelerated fashion.

5. Implement a schedule control system that is most commonly accepted for civil
construction projects by local contractors, claims consultants, professional
schedulers, and other DOTs alike.

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In order to implement this control measure, the following steps will be taken:

1. An initial determination of the current Agencies’ staff capabilities will be made

along with current Agencies’ schedule procedures.

2. An Implementation Plan for the Agencies will be developed. It will include

training of Agencies’ staff and the acquisition and installation of selected software
workstations.

3. There will be a period of training for all Agency staff working with project
schedules. The training course typically includes:
• Basic terminology and scheduling techniques;
• Effective operation of the software scheduling application;
• Development of a baseline schedule;
• Schedule review techniques for baseline and updated schedules; and
• Basic time impact analysis for claims issues.

4. The Implementation Plan and training course will be coordinated with any
changes in Schedule Specifications so that the most current schedule requirements
will be reinforced with the Agencies’ staff.

c. Cost and Resource Loaded Schedules

The Agencies will amend their construction scheduling specifications to require a cost
and resource loaded construction schedule for every site specific construction contract
that is valued at over $1 Million. This specification adjustment will be made in early
2009.

The main goal of this portion of the program control will be to develop a more
effective and industry accepted method to:

• Monitor contractor performance;

• Provide for a more effective means of evaluating options to recover Time;
• Provide a more comprehensive/accurate evaluation of contractor claims for Time,
ensuring a better evaluation of the true cause and ownership of delays; and
• Provide effective change management within each contract and the overall

Accelerated Bridge Program.

The following measures will be part of the construction schedule control program:

Cost & Resource Loaded Schedules (for all site specific contracts > $1Million):

• Each schedule activity will have an assigned cost consistent with the value of
work to be installed and will accurately reflect the bid value of the activity
payment item. Example: Lump Sum Bridge Structure 999.000, one payment

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 item, has 120 construction activities, 15 procurement (material purchase)

activities, 25 critical submittal activities. Each activity will be assigned a cost that
added together equals the total bid item value.

• Each schedule activity will also have an assigned crew composition by man-hour
consistent with the value of work to be installed and reflective of the bid value of
the payment item.

• Unless approved by the Agencies’ Project Managers, each activity will not be
more than 20 days duration or less than 5 days duration. This will help to ensure
the proper cost break-down.

• As part of the Baseline Schedule review by the Agencies’ Scheduler, a review of

the distribution of cost will be performed. This will be done to ensure that the
Contactor has not “unbalanced” the value of work in the schedule. Unbalancing
occurs when there is an unreasonable amount of money requested at the beginning
of the construction schedule, or when the cost loaded for schedule activities is
grossly different from its reasonable value.

• The Contractor will be informed of the intent of this requirement in the

scheduling specifications. The following or similar language will be included:

“This project requires an integrated cost/schedule controls program that the

Contractor shall comply with from Contract award until final completion of all
Work. The Contractor is advised that its schedules and reports as specified herein
will be an integral part of the Agencies’ management program. The Contactor's
schedules will be used by the Agencies to monitor project progress, plan the level
of effort by its own work forces and consultants, and as a critical decision making
tool. Accordingly, the Contractor shall ensure that it complies fully with the
requirements specified herein and that its schedules are both timely and accurate
throughout the life of the project. The Contractor's Schedules shall be used by the
Agencies and the Contractor for the following purposes as well as any other
purpose where the issue of Time is relevant:

1. To communicate the Contractor's current plan for performing and

completing the Work.

2. To identify Work items and paths that are critical to the timely completion
of the Work.

3. To identify upcoming activities on the critical path(s).

4. To evaluate the best course of action for recovering schedule delays.

5. As the basis of progress payments to the Contractor.

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 6. As the basis for analyzing the Time impact of changes in the Work.

7. To identify when submittals will be submitted by the Contractor for the

Agencies’ review.

8. To aid in prioritizing the Agencies’ review of submittals.

9. To document the actual progress of the Work.

10. To evaluate resource requirements of the Contractor and the Agencies.

11. To aid in integrating the Work with the operational requirements of the
Agencies.

12. To facilitate efforts to complete the Work in a timely manner.”

EXAMPLE RESOURCE LOADED SCHEDULE (see description above)

Activity DR121 shows (above):

5 day duration

There are 3 laborers in the crew – working 8 hrs/day = 24 laborer hours/day

5 days x 24 laborer hours/day = 120 laborer hours for the planned activity to demo the invert.

If, the Contractors “actual” are 80 hours, and the activity is on the critical path, questions

need to be asked and answers need to be documented.

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EXAMPLE COST LOADED SCHEDULE

Activity DR121 shows, the same activity in the resource loaded example above shows, the
budgeted cost to be $28,334.

Payment – Earned Value

The cost loaded schedule will also be utilized for payment of the Lump Sum Bridge
Payment items. See below for further description of this cost and schedule control
measure.

d. Schedule Narrative

To help manage multiple contracts in an accelerated fashion, the Agencies’ scheduling

specification will include a requirement for the contractor to provide a comprehensive
schedule report each month. This report will include a narrative with the following
components, and is designed to provide the Project Managers with a streamlined
overview of the contractor’s monthly update submission:

1. Each narrative shall list the Activities on each Critical Path and compare
Early Dates and Late Dates.

2. Each narrative shall include (a) the Contractor's site management plan
(e.g., lay down, staging, traffic, parking, etc.), (b) the use of construction
equipment and resources, (c) basis and assumptions for critical activity
durations and logic, (d) compliance with winter weather requirements, and
(e) any shifts, non-Business Days and multiple calendars applied to the
Activities.

3. For each Progress Schedule Submittal, the narrative shall recap progress
and days gained or lost versus the previous Progress Schedule, describe
changes in resources to be used on remaining Work and identify Delays,
their extent and causes. For Progress Schedule Submittals, each narrative

56

 shall also itemize changes in Activities and logic ties caused by each
Change Order, schedule recovery plans and grouping of related
Contractor-initiated revisions.

4. Each narrative shall certify that the Contractor has not been delayed, as of
the closing date, by any act, error or omission of the Agencies, or their
Designer/Engineer, except as otherwise specifically stated in the narrative
or identified in a claim submitted in accordance with the general
conditions of the Contract. Any determination by the Agencies will be
binding on the Contractor if the Contractor fails to do so.

e. Delay Provisions

In order to assist the Agencies with the management of delays, the schedule specification
will include a clear, detailed description of what the Contractor needs to provide in order
to prove delay and receive a Time extension.

The extension of Contract Time will be considered only if the Contractor demonstrates
via the timely submittal of a detailed schedule analysis by using the Contemporaneous
Window Analysis methodology or other similar methodology acceptable to the Agencies.
The analysis shall include: a) a detailed narrative which clearly describes the events
causing the delay and the resulting impacts to the project schedule; b) documentation
substantiating and supporting the delay; c) a detailed CPM schedule (both electronic and
hard copies) clearly delineating the delay; d) a matrix showing delays caused by the
Authority, delays caused by the Contractor, delays caused by any third party and any
force majeure delays; and e) any additional information reasonably requested by
Agencies, including the Contractor’s daily reports, in order to enable the Agencies to
perform a timely and informed analysis of the request for extension of Contract Time.

The following or similar language will also be added to the end of the scheduling
specification to ensure that proper attention to the scheduling requirements is provided by
the Contractor.

MEASUREMENT AND PAYMENT

A. MEASUREMENT
1. A fixed price not to exceed $_______.00 will be made to reimburse the
contractor for CPM Scheduling. Payment will be made under Item No.
_______, CPM Scheduling, to the Contractor.

B. PAYMENT
1. Fifteen percent (15%) of the fixed price for CPM Scheduling will be made
upon return to the Contractor of the CPM Construction Plan Baseline
Schedule Submittal as "Re-submittal Not Required" (As-Planned
Schedule).

57

 2. The remaining (85%) will be pro-rated in equal amounts on each

subsequent application for payment upon the Agency’s receipt and
approval of the monthly CPM updates.

f. Contractor Payment – Earned Value

The Agencies will require every Contractor on site specific contracts greater than $1
Million to comply with an Earned Value Management Program for payment of all Lump
Sum Payment items. This specification requirement will be included in all ABP
construction contracts that are planned to be bid in early 2009 and those thereafter.

The main goal is to implement an effective, industry accepted method to:

• monitor contractor performance;
• ensure a reasonable distribution of payment for work actually installed;
• assist in evaluating trends in a timely fashion, allowing for earlier corrective
action; and
• assist in ensuring that the contractor schedule submissions are accurate and
timely.

The following measure will be part of the construction schedule control program:

Payment – Earned Value (for Lump Sum Payment Items only).

The cost-loaded schedule will also be utilized for payment purposes. Each month, as
part of the Contractor requisition for payment, the activities within the Contractor
schedule will be statused (percentage complete), and the percentage complete will serve
as the value of work that will be paid to the Contractor (less retainage). This Earned
Value cost control will be required on each contract to ensure that the Contractor does not
receive more money than the value of work actually installed.

In so doing, physical progress will be measured in dollars. This schedule performance

allows for a secondary manner of monitoring the actual progress and will assist in cost
control throughout the contract duration. It will also assist in getting Contractors to
update and utilize their construction schedules.

Contractor Payment Example:

Activity DR121 (graphic below):

Shows a planned cost of $28,334 for the demolition of the invert. It also shows that it is
part of bid item 0211.000 DEMOLITION LUMP SUM.

Using the Agencies Earned Value payment procedure, if the contractor has completed 3
days of the 5 day demolition activity, and has 2 days of work remaining (verified by an
Agencies inspector) at the time of the payment requisition closing date, the Contractor
would be entitled to receive $17,000 ((28,334 x (3/5)).

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EARNED VALUE EXAMPLE:

Note: Unit Priced Payment items will be paid in accordance with the procedures already
in place (prior to Nov-08).

2.C.2 – Contract Schedule Review Meetings

On site specific contracts greater than $1 Million, the Agencies will implement regular
internal Senior Project Management Contract Schedule Review meetings. These
meetings will be implemented at the district level and critical information will be
reported to the Program level, through the Program Controls Group. The Program
Controls Group will be responsible to track and prioritize the Critical Action Items
(including submittal reviews, RFI responses, shop drawing approval, contractor
deadlines, responses from outside agencies, force account deadlines).

The main objective of these meetings will be to:

1. Generate a formalized senior management review process that allows for program
level priorities to be evaluated and acted on as efficiently as possible.

2. Evaluate cost and schedule controls – these meetings will be primarily focused on
identifying schedule related concerns and working out a swift course of action
(see section 1.B for Internal Control Meetings).

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 3. Develop action items to recover delays (and/or costs) and monitor status at
subsequent meetings.

The Senior Management Contract Schedule Review Meeting will be implemented as

follows:

CRITICAL ACTION ITEMS MEETING:

(for CONSTRUCTION contracts):
1. Twice per month, each ABP Resident Engineer, on site specific contracts
greater than $1Million, will provide a CRITICAL ACTION ITEMS REPORT
– listing each contract’s critical issues.

2. This report will be generated with the following considerations:

a. Identify the issue, potential delay, problem;
b. Relate to the current contract schedule (activity ID and criticality –
total float);
c. Identify the person assigned to resolve the issue;
d. Identify a NEED DATE for resolution (again relating it to the current
schedule); and
e. Assign a priority for resolution (vs other critical action items on the
same contract).

3. Each District/Field Engineer/Manager (with the assistance of the new

Cost/Schedule Engineer) will be responsible to assemble all monthly Critical
Action Items and review/approve the final selection of the most important
items to address in the report to the Agencies’ senior program managers.

4. Following the District Engineer/Managers’ finalization of the reports, the

reports will be sent to the Senior Program Management Team (including
Chief Engineer and Program Controls Director).

5. After a limited number of review days to be established, a Senior

Management meeting will be held. The District Managers will present each
of the contracts that they maintain, providing an overview of each contract
with particular attention to problem areas. Each Engineer/Manager will
follow up with recommended courses of action and address questions and
concerns from the Senior Management Team.

6. Action items to recover costs and/or delays will be generated and statused at
subsequent meetings.

Note: See section on CRITICAL ACTIONS MEETINGS for Schedule Control.

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2.C.3 – Schedule Recovery Work-Sessions

The Agencies will initiate a formal Schedule Recovery Work-session program. This
program will be utilized on contracts with poor schedule performance and whenever the
critical path has delayed the completion of work by more than 20 days.

The main goal of this program is to help explore options to RECOVER LOST TIME
FOR DELAYS.

The following is a listing of the key principles that will be utilized:

• The Contractor is informed that cooperation in this matter will help to expedite
resolution;
• Posturing, from all parties, is to be put aside;
• The Contractor’s latest schedule is to be analyzed and tested for “what-if”
options;
• The session must be attended by “the people that are actually doing the work,”
• Requires Commitment from Senior Members of the Agencies, the Contractor, and
the Designer;
• If multiple contractors and sub-contractors are involved, they all need to be
represented;
• A log will be created of all of the schedule changes to validate the recovery plan
and in any future Time Entitlement Analysis; and
• “Commercial issues” are to be sorted out at a later date.

2.C.4 – Quality Control Plan – Construction Schedule Review

The complexities and contractual implications associated with the Contractor Schedule
review require the assistance of qualified construction schedulers.

The Quality Control Plan (QCP) defines the goals for meeting the Agencies’ expectations
regarding the analysis and reporting of CPM schedule submittals. These goals fall into
three categories: (1) agency goals for the project; (2) quality assurance for schedule
review and (3) quality control of the schedule review.

The agency goals for the project include providing a quality deliverable, within budget
and within the time considerations determined by the Contract or Specifications. The
process for determining these goals is a collaborative effort between the Agencies’
Project Managers and the Schedule Reviewer. It provides transparency among Agencies’
expectations, the review process, and production of the schedule deliverable.

Quality assurance for the schedule review process focuses on the process of producing
the deliverable. Quality control of the schedule review involves review of the work
being performed. Quality control involves the Agencies’ management and scheduler staff

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and includes oversight of the process, completion of review checklists, external reporting,
and internal approvals.

During the Agencies’ schedule review, the quality control process will be enforced as
prescribed in the QCP through completion of the final deliverable for each schedule
submittal. Quality assurance will occur over the length of the Program with review
cycles also as determined by the QCP.

The objective of this program will be as follows:

Develop a quality control plan that provides a defined process to achieve ABP goals
through the deliverables.

As an initial step toward implementing this program, the ABP schedule managers will
review the following checklist for Baseline Schedule Reviews:

Milestones, Access Restraints and Access Provisions Review

• Does the schedule model Milestones and Access Constraints as described in the
specification?
• Are Milestone Constraint dates included and correct?
• Are Access Constraint dates included and correct?
• Are Access Constraints, along with seasonal limitations, represented correctly as
described in the Access Provisions?
• Are there additional Access Constraints or Milestones identified in the schedule
but not in the specifications?
• Is the site, with its phases, Access Restraints and Provisions constructible?
• Are there early completions of Milestones? If so, and the Milestone date does not
change, there will just be positive float in the schedule.

Scope of Work review

• Is the full scope of work modeled into the schedule?
• Is the level of schedule detail consistent with the contract and project
requirements?
• Does the schedule detail the full scope of work, and sufficient time, including :
Contractor & Subcontractors - major submittals, shop drawings, major
procurement items, major fabrication and delivery items, equipment installation,
punch list, O & M items, and testing. Owner – permits & licenses; review of
major submittals (generally 30 days); construction inspection; testing, start up,
turn over and commissioning activities; and time for final Owner agency work
and inspections.
• Is the Work Breakdown Structure acceptable?
• Are activity durations, in work days with calendars, identified?
• Are activity duration times reasonable? Rule of thumb: >5 days, < 30 days.
• Are durations for fabrication and delivery reasonable?
• Are durations consistent with expected manpower usage, relative to the cost,
resource and narrative information available?

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Logic review
• Are there open ended activities?
• Are the activity relationships logical? (Foundations after excavation)
• Are seasonal impacts addressed?
• Can the activity durations be supported by reasonable production rates?
• Are relationships other than a FS, 0 lag reasonable? Review to ensure that logic is
modeled not to promote sequestered float.

Float Review
• Are lag relationships and lag durations reasonable?
• Are activity durations inflated?
• Are all logic ties dependent on one another?
• Review the logic and analyze to determine if the critical path is flowing through
the higher probable problem areas of the project. If it is, is there a work around to
eliminate this work plan?
• Is the percentage of critical and near critical activities reasonable? Generally 15 –
25% should be expected.

Critical Path Review

• Do the critical paths make sense?
• Do the critical path and near critical path activities reflect significant work being
accomplished and not inconsequential work that can be done concurrently with
critical path work?
• Are there float suppression techniques used? (incorrect constraint dates, inflated
durations, incorrect logic).

Narrative Review
• Does the narrative describe in detail how the contractor plans on utilizing its
resources, including subcontractor crews and equipment, to support its approach
to constructing the project?

Cost Review (For projects that are cost loaded)

• Are all unit price and lump sum price items represented in the schedule?
• Do the activity costs, for each payment item, aggregately equal the bid amount?
• Do the activity costs, for the filed subcontractors, aggregately equal the bid
amount?
• Are the payment item costs and filed subcontractor costs front end loaded?
• Are there sufficient costs allocated to all O & M and testing activities?

Resource Review (For projects that are resource loaded or used with narrative info.)
• Are labor and equipment resources adequate for the work planned?
• Relative to durations, are crew sizes and production rates too high or too low?
• Will the resources be adequate to support production rates? (Cross check with
narrative)
• Are the resources specified unrealistic?

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 • Are there too many resources identified for the work being planned at that time
frame, due to: confined space limitations or other work being done concurrently,
posing adjacent contractor problems or subcontractor conflict (coordination may
or may not be a reasonable plan)?
• If logic ties are used to represent planned resource usage, but are not necessarily
dependent on one another, convince the contractor to resource load these
activities. If the logic is not due to means and methods but is based on a
preferential logical work approach, any delay claims emanating there from should
be rejected.

2.C.5 – Schedule Contingency

Important Note: The Schedule dates provided for individual projects thus far are
conceptual. They have not been generated using any standard practices for Contract
Time Determination. These will be validated following the completion of the 75%
Construction Cost Estimate.

ADDITIONAL STUDY – for construction contingency validation

An ABP Program budget exposure has been identified to monitor a budgetary risk
associated with the potential cost increases normally associated with highway/bridge
construction in the Northeast (winter impacts and common delay issues).

To validate the 15% Construction Cost contingency implemented, after some

construction contracts progress, the Program will perform a study of the past bridge
project completion costs and timeframes. This will be a comparison of the bridges that
have completed over the past 3 years – and will be designed to compare the bid value vs.
the actual Cost-at-Completion to determine a reasonable percentage for which to budget.
If the findings conclude that there needs to be a budget allotment of much greater than the
15% previously added, then the Agencies will adjust the program and Budget Control in
a reasonable manner. This will also become part of the legislative reporting Program
Performance Indicators.

2.C.6 – Schedule Review Impacts

The recommendations, direction, and comments provided in the Agencies’ review of
schedule submittals will be made by an experienced, professional construction
controls/construction scheduler. Such reviews will consider the contract documents,
accepted construction practices, the overall goals of the ABP, the potential monetary
impacts of changing the Contractor’s plan, as well as project-specific plans,
specifications, and special provisions.

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The objective of this portion of the construction schedule control program will be as
follows:

To avoid costly consequence of actions, or inactions, by the Agencies’ project

management team as part of the schedule reviews process.

Near term mandate – related to planning construction packaging

1. The Agencies recognize that one of the most critical aspects of this Program will
be the sufficiency of resources during the early stages of the Program in order to
successfully advertise the early planned bridge packages (see also Section 4.
Staffing of this Report).

2. The Agencies recognize that another critical aspect is the planning of right-of-way
acquisitions, permitting, and environmental approval process. The Agencies will
initiate a formalized study to evaluate the near term bridges in order to confirm
the duration for these three critical approvals. If it is later determined that the
current planning duration assumptions are inadequate, necessary changes will be
made to the Program Budget and Program schedule.

Additional Examples that will be incorporated into the Agencies’ guidance for
schedule management: The following is a list of common schedule review comments
that can adversely impact project schedules and/or costs. The Agencies will provide
guidance to the project management team members that will help to ensure that these
critical aspects are dealt with consistently and efficiently.

1. Comments that affect Contract Time and/or project milestones

2. Comments that have the potential to change the Contractor’s accepted work
operations (Means and Methods)

3. Comments associated with the Contractor’s planned production rates

4. Comments that are contradictory to the Contract Documents

5. Comments affecting schedule calculation methods

6. Comments that add or delete work

7. Comments related to third party or off-site issues

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 SECTION 3 - CONSTRUCTION QUALITY

3.A.1 - Construction Quality Control & Quality Assurance

Formal construction quality control and quality assurance programs and procedures must
be in place in order to manage and control the quality of construction Historically, it has
been the industry standard to require the construction contractor to provide construction
quality control, while the owner typically provides quality assurance oversight to ensure
that the contractor is effectively following and implementing its quality control plan. It is
also important to ensure that the construction contractor’s quality control requirements
and responsibilities are clearly defined in each construction contract.

A methodology which has been proven effective over time is to include construction
quality control requirements (construction contractor inspection and testing parameters)
in the construction contract documents, and require the contractor to submit a formal
construction quality control (QC) plan which delineates the detailed inspection and
testing measures it will implement for each element of the work, to ensure that all work
installed conforms to the requirements of the contract documents. This is treated as a
formal submittal which gives the owner the opportunity to review and comment on the
plan to ensure that it is comprehensive and effective.

The owner then develops and implements its own internal quality assurance (QA)
oversight plan to ensure that the contractor is complying with the inspection and testing
requirements contained in its approved QC plan. Owner QA oversight measures
typically include performing its own inspections and tests at appropriate frequencies to
verify that the contractor is properly and effectively implementing its QC plan, and that
the plan is in fact ensuring that the work of the project conforms to the requirements of
the contract documents. Frequencies and levels of QA oversight inspections and tests
will vary from project to project, depending on the complexity of the project and the
observed effectiveness of the contractor’s QC plan and efforts.

The objectives of this program will be as follows:

The Agencies will develop and implement a formal Construction Quality Control &
Quality Assurance program that will be followed on all Accelerated Bridge Program
construction contracts. All ABP construction contracts will contain a standardized
Contractor Quality Control specification, tailored to the specific requirements and
complexities of each individual construction contract. The Agencies will also develop a
standard Construction Quality Assurance program and approach that will be implemented
on all ABP construction contracts.

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To achieve these objectives, the following steps will be implemented as the core
guideline:

1. The Agencies will review their existing Contractor Quality Control specifications
for construction contracts, make warranted improvements, and tailor the
specifications to specifically address the requirements of Accelerated Bridge
Program. These specifications will be included in all ABP construction contracts.

2. The Agencies will hold Contractor Quality Control refresher training sessions
with all ABP construction personnel, to ensure that all construction personnel are
intimately familiar with the requirements of the ABP Contractor Quality Control
construction contract specifications.

3. The Agencies will hold construction Contractor Quality Control training sessions
with all construction contractors prior to their performing work on ABP
construction Contracts. The purpose of this training will be to ensure that all
construction contractors performing work on ABP construction contracts
understand the requirements of the Contractor Quality Control specifications.

4. The Agencies will review their existing Construction Quality Assurance

procedures, make warranted improvements, and tailor the procedures to
specifically address the requirements of the Accelerated Bridge Program.

5. The Agencies will hold Construction Quality Assurance refresher training

sessions with all ABP construction personnel, to ensure that all construction
personnel are intimately familiar with the requirements of the ABP Construction
Quality Assurance procedures.

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 SECTION 4 – IMPLEMENTATION

4.A.1 – Near Term Recommendations/Priorities

Over the next 6 months, the Agencies will focus on the following aspects of the Program
Controls plan:

1. Finalize and implement Staffing Plan.

2. Implement Software Control Systems as highlighted in this report.

3. Implement contractual changes.

4. Establish training program.

5. Establish Task Forces (Early priorities commonly problematic for start of

construction contracts).

ABP Staffing for Project Controls

Mission

In order to develop, implement, and maintain effective project controls on the

Accelerated Bridge Program, it is necessary to establish a dedicated Project Controls
Group. The purpose of the Project Controls Group is to provide preliminary evaluations
of each individual project cost and schedule, develop an overall program cost and
schedule, and constantly monitor and report on the programs progress with regards to
cost and schedule.

This organizational arrangement will allow Project Controls Group to focus its efforts
solely on its control and reporting functions, and report project and Program status in an
objective and factual manner.

Organizational Structure

Overall Project Controls Group

The Project Controls Group will be headed by a Project Controls Director. The Project
Controls Director will be responsible for developing, implementing, and managing
effective, comprehensive cost and schedule control and reporting systems for the
Accelerated Bridge Program, the Agencies and the Oversight Council.

Schedule Control Organization

All schedule control and reporting efforts will be headed by a Schedule Control
Supervisor who will be responsible for the daily management of a comprehensive
schedule control and reporting system. Schedule Analysts will be responsible for

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developing, monitoring, reviewing, analyzing, and reporting on project level (design and
construction) schedules, as well as the overall program level schedule. It is anticipated
that schedule analysts will be assigned both in MassHighway Boston, MassHighway
District Offices and the DCR Office and Field Offices.

The number of Schedule Analysts will be determined in conjunction with the finalization
of each individual project’s schedule review. It is expected that during Years One and
Two of the program, the Schedule Control Group will consist of the Schedule Control
Supervisor and three Schedule Analysts. The Schedule team will develop and implement
the schedule control and reporting system. This will require a program level schedule,
project level schedule templates, and early project level schedules and reports. As more
ABP projects become active, additional Schedule Analysts will be added on an as needed
basis. As the volume of Program contracts escalate, the number of Schedule Analysts
will be commensurate with the level of effort required to maintain effective control of
and reporting on all project schedules and the Program level schedule. Early estimations
on staffing needs will be completed following the acceptance of the Project Controls
Report. Neither Agency currently supports a program controls effort that is
commensurate with the level of effort proposed for the Accelerated Bridge Program.
Throughout the early years of the Program, the Project Controls Plan will be augmented
with a staff of contract employees or consultants with the requisite expertise in schedule
and cost management. However, the Agencies intend to transition over time that labor
intensive effort, from consultants to an “in-house” staffing capability.

In addition, it is expected that project control initiatives or applications successfully

implemented as part of the Accelerated Bridge Program will then be applied to each
Agency’s future statewide programs.

Cost Control Organization

All cost control and reporting efforts will be headed by a Cost Control Supervisor, who
will report directly to the Project Controls Manager. The Cost Control Supervisor will be
responsible for developing, implementing, and managing an effective, comprehensive
cost control and reporting system for the Accelerated Bridge Program, and for managing
the efforts of Cost Analysts. A group of Cost Analysts will work under the Cost Control
Supervisor. Cost Analysts will be responsible for developing, monitoring, reviewing,
analyzing, and reporting on project level (design and construction) costs, as well as
overall program level costs.

The number of Cost Analysts will be determined in conjunction with the finalization of
each individual project’s schedule review. It is envisioned that at the beginning of the
program, the Cost Control Organization will consist of the Cost Control Supervisor and
two Cost Analysts who will together develop and implement the program level cost
control and reporting system. Additional duties will include cost control and reporting
templates, and early project cost control reports. As more ABP projects become active,
additional Cost Analysts will be added on an as needed basis. The number of Cost
Analysts will be commensurate with the level of effort required to maintain effective
control of and reporting on all project costs and program level costs.

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