Fail to plan Plan to fail 2 Honorable

Fail to plan. Plan to fail.

2 Honorable Stephanie Moren County Judge – Bee County, Texas Fiscal Conservative Respectful of taxpayer dollars and the impact her decisions have on property owners Diligent Does her homework and asks tough questions. Passionate Loves her job and is grateful for the opportunity to serve her community. Honest Tell it like it is.

3 Brenda Jenkins Senior Vice President, ECM International, Inc. Advocate Protect the Owner – No Exceptions Leader Servant Leader = Communication, Trust, and Respect. Accomplished 1 st Woman Executive Director at Public Utility Commission of Texas Process Geek I have a plan for that.

4 Planning & Execution Hazardous Conditions Ahead Project Concept Starts with design? Design Construction

5 Stages of a Project Piece by Piece what to look for. Success vs. Failure A few examples Why? ! The Best Examples How? ! Step by Step Plan

6 What you want to hear Beach front property in Arizona Initiation of the project • • Input from Internal Stakeholders Verify the Need Identify the Budget Court Approval to Start Process Procurement • • Issue RFQ for the Design Team Negotiate Contract Select the Site Surveys Scope • • Meetings with Staff, Constituents Begin Programming Review the Conceptual Design Cost Estimate of Conceptual Design Procurement -2 nd Phase Finance • • Input from Internal Stakeholders Verify the Need Identify the Budget Court Approval to Start Process • • Hire the Contractor Negotiate Price Value Engineering Hire geotechnical, FFE, IT, AV, Commissioning, Testing Construction • • Permits Site Inspections Budget Invoice Approval Quality Control Change Order Management Schedule

PROJECT DEVELOPMENT PHASE The planning phase of a project 1. 2. 3. 4. Getting to the Starting Line Project Concept to Funding Interdependent and Simultaneous Activities Greatest Influence on Success of a Project

8 Planning lets you impose order on the chaotic process of making something new.

The Spaghetti Bowl 9 Where all ROADS converge. Enter at your own RISK Procurement G. O. C. O. Resources Master Schedule Financial Advisor Implementation Strategy Financing Project Controls Delivery Method Project Concept Soft Costs Committees Total Project Cost Public Input Scheduling Site Selection Public Involvement Public Education Bond Committee

Categories of Project Development CRITICAL Components Project Concept Financing Public Involvement Total Project Cost Committees Master Schedule Implementation Strategy 10

11 Project Concept The Beginning and The End Defining the Project Concept is at the epicenter of the Project Development Phase. All other tasks and activities n i ef D he t g t c e The product of the Project Development is a Project that j o Pr ds ee N in the Project Development impact the Project Concept. m s s e s s A c a F t n e e i t ili you can afford, can fund, has a reliable cost estimate, s A s m s s se t n e where public involvement and participation is incorporated, where internal processes and controls are mapped, procurement and resources are assembled into a successful Implementation Strategy.

12 Financing A plan without funding is just a wish. B Bond Counsel Prepares Bond Order and shepherds through Attorney General’s review process, provide opinions to the bond’s validity. F C G Financial Advisor Certificate of Obligation General Obligation Guides the economic side of the process. Structure the Transaction and arranges the sale of bonds. Assist in obtaining rates, insurance, securing banking arrangements to complete the transaction One of several types of funding mechanisms. Does not require an election. Does require court approval and public posting to allow citizens to petition for a Bond Election. Used often. Bond election required with voter approval to proceed with a project.

13 Total Project Cost Capture ALL costs 1. Can exceed 30% of the cost of a project 2. 3. 4. beyond the cost of work Owners responsibility for contracts, services, and equipment beyond the Designer and Builder contracts Cost of land financing costs Account for up-front costs and countyperformed work Project Budget Review

14 Project Delivery Methods Managing Risk DESIGN-BID-BUILD COMPETETIVE SEALED PROPOSAL CONSTRUCTION MANAGER AT RISK DESIGN-BUILD CONSTRUCTION MANAGER AS AGENT Lowest Risk Highest Risk The traditional U. S. project A Request for Proposals (RFP) is Commitment in the Design One contract for the Owner. delivery method typically the solicitation document for Phase to fill in gaps, provide Contractor holds the contract involves three sequential this method of procurement. It real-time pricing. Provide a with the Architect. Design and project phases: This sequence is used when price and Guaranteed Maximum Price construction cost are usually leads to a sealed bid, qualifications are critical (GMP)before design is simultaneous. Provide a GMP fixed-price contract. factors complete before design is complete. Varies A contractual arrangement where the CMA is the Owner’s Representative and the Contractor is a Prime and the Owner holds contracts with subcontractors directly. Variations exist on the structure

15 Project Delivery Methods Managing Risk DESIGN-BID-BUILD ADVANTAGES: • Familiar • Easy Accounting • One Contract w/ Designer • One Contract w/Builder DISADVANTAGES: • Familiar • Easy Accounting • One Contract w/ Designer • One Contract w/Builder COMPETITIVE SEALED PROPOSAL ADVANTAGES: • Same as DBB except adds flexibility for Qualificationsbased selection DISADVANTAGES: • Familiar • Easy Accounting • One Contract w/ Designer • One Contract w/Builder CONSTRUCTION MANAGER AT RISK ADVANTAGES: • One contract w/Designer and one w/ Builder • CMR participates in Design Phase • Expedited Schedule • Guaranteed Maximum Price • Transparency • Transfers Risk from Owner DISADVANTAGES: • Unfamiliarity leads to major management mistakes • Difficult Accounting DESIGN-BUILD ADVANTAGES: • Shares advantages of CMR • One contract • Eliminates adverse relationship DISADVANTAGES: • Unfamiliarity leads to major management mistakes • Market Driven • One contract CONSTRUCTION MANAGER AS AGENT ADVANTAGES: • Serves as Advisor DISADVANTAGES: • May be used incorrectly • May increase staff requirements of the Owner • Involves greater risk to the owner without the required elements

16 Site Selection Turn around, don’t drown. NS e the O S LES d Can b tile rne Lea vola s & n o own Less nkn PC. u t of T t mos n e elem Most precarious component of a project. Involves a mix ED nd T C FE st, a of public debate along with technical and financial AF ations, co considerations. Tangible and Intangible considerations he of t e c an ear lity app faci r Ope and often high visibility. DER ical, I S CON Techn , rest cial inan F d an new Pub nte lic I NS O I DIT ispute ONurce of d , C E SIT quent so designers Fre rs. een wne o w t d be an ors, t c a tr con

17 Master Schedule Managing The Schedule = Managing the Cost Vital Baseline Milestones Drivers Bond Schedule Creating the Master Schedule must consider ALL other elements. Financing with G. O has mandated schedules. Procurement has mandated timelines for posting and preliminary schedules should be part of the procurement package. Delivery Method will impact the project schedule market volatility can impact the Schedule.

18 Public Involvement Good Ideas and Public Support Public Input – Public Information – Public Education Public Planning Session • Sense of ownership • Want a voice • Financial transparency and open access • Foster community support and outreach • Lobbying Restrictions

19 Committees Don’t Be Afraid 1. Play a crucial role in the success of a project 2. Must have a common goal with clear and well-defined 3. 4. 5. expectations The number and types of committees vary Committees most often result in a hierarchy based on factors such as dissemination of information, specific role in the project, approval authorities Example: the role of a task force, advisory committee, building committee, selection committee, executive committee may all serve different functions or combined functions Brainstorming Session

20 Implementation Strategy The Result of a Good Plan Procurement • Critical : • Due diligence for site selection • Professional services (Geotech, survey, environmental …) 01 • Financial and Legal advisors, staff augmentation, Mgt support • Designer and Builder Project Control Systems/Processes • Process Identification: identify objectives, scope, and 02 03 players • Information gathering: gather process facts (who, what, when …) • Process mapping: convert into a project execution Resources Staffing Requirements plan that supports decision making