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Preproject Planning Processes and Project Scopes of Work The plans of the diligent lead to profit as surely as haste leads to poverty. Proverb s 21: 5, 1000 B CE INTRODUCTION Preproject planning has long been a subject of discussion in the building industry. Many guides have been developed, and much knowledge resides with experienced practitioners (Griffin, 1972; Pena, 1987; Billings, 1993; Preiser, 1993; Haviland, 1996; Cherry, 1999; American Society of Civil Engineers, 2000~. However, in many cases Preproject planning is not performed well in the building industry. Consequently, the building sector suffers from poor or incomplete project scope definition, frequently experiencing considerable changes that result in significant cost and schedule overruns (Gibson et al., 1997; Cho et al., 1999; Cho, 2000~. A standardized Preproject planning process, tailored to a specific organization, provides the foundation for development of effective project scopes of work. This chapter discusses the Preproject planning process, the development of project scopes of work, and the importance of management actions to bring about project excellence. In the course of the discussion, tools available to support Preproject planning activities are identified. An underlying assumption is that the primary party responsible for the Preproject planning phase of federal projects is the federal agency (the owner), with contractor assistance as needed. There are several reasons for this. First, only owner employees have the proprietary knowledge and perspective of why the facility is needed, how it will be operated and maintained, and what special needs exist. Second, in many cases, government employees will operate and maintain the facility long after contracts for planning, design, and construction are completed and in effect are the facility owners. Third, intentionally or not, even the most enlightened contracts for services or construction encourage contractors to pursue risk-averse approaches to the work. Preproject planning is all about addressing risks and making decisions from the owner' s perspective, which is difficult for the contractor to do when operating under these types of contracts. Finally, it should be noted that effective Preproject planning is not a process that can be consistently incorporated throughout an entire organization in a short time frame. It requires process and cultural changes that may take several years to fully implement, but it is critical to the ability to develop consistently effective project scopes of work. 14

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PREPROJECT PLANNING PROCESSES AND PROJECT SCOPES OF WORK BACKGROUND 15 The U.S. government is arguably the largest owner of facilities in the world, with a worldwide portfolio valued at more than $328 billion (General Accounting Office, 2003~. Its facilities are located in almost every city in the United States and in most countries. Although it is difficult to accurately calculate the amount of annual funding allotted for federal facilities (because of accounting and budgeting differences among agencies), the FY 2001 budget for the design, construction, and major renovation of facilities can conservatively be placed at more than $21 billion1 and was probably much higher. Dozens of government agencies are involved in the planning, design, construction, and operation of a myriad of federal facilities, such as institutional buildings, power generation plants, science laboratories, and water treatment plants. Federal projects range in cost from a few thousand dollars to more than $1 billion and vary in complexity from simple building renovations to the design, construction, and operation of massive nuclear test facilities involving cutting-edge technologies. The skill and experience needed to plan and manage these projects vary widely. There are, however, similarities among all of these projects. First, they are conceived and executed to meet a mission, program, or societal need. Second, each project is executed by a team of individuals made up of both federal employees and contractors. Finally, each project generally follows a process that begins with initiation (need) and continues through a preproject planning phase that ends with deciding whether or not to proceed with a project. If a project proceeds, then a budget must be authorized and appropriated and a scope of work for design developed in order to contract with architect-engineer and construction firms that will design, construct, and commission the facility for use. This report focuses on building-type projects, those for which architects typically fill the lead design role. PREPROJECT PLANNING Preproject planning has been defined in many ways.2 In this report it is defined as "the process of developing sufficient strategic information with which owners can address risk and decide to commit resources to maximize the chance for a successful project" (Construction Industry Institute, 1995~. Terms commonly used for preproject planning include front-end planning, front-end loading, feasibility analysis, programming/schematic design, scope definition, scope management, and conceptual planning. A preproject planning process map is shown in Figure 1. The preproject planning process can be summarized into four major steps: organize for preproject planning, select project alternative~s), develop a project definition package (which is the detailed project scope of work), and decide whether to proceed with the project (Construction Industry Institute, 1995~. The preproject planning process includes defining the project's scope and planning for execution. It is during this crucial stage that risks are analyzed, preliminary designs are formulated, critical decisions are made, and the specific project execution approach is defined. The process is structured to include a clear set of approval gates or decision points that require the owner to make a formal decision to proceed to the next step. Incorporating approval gates also provides the opportunity to document progress and the decision on whether to proceed with the project. When personnel turnover occurs between the time a project is initiated and final commissioning, such documentation can be invaluable in providing continuity with respect to decisions made by the team. Inadequate or poor preproject planning has long been recognized as one of the most significant variables that can negatively affect a facility project (Smith and Tucker, 1983~. Inadequate project scope definition inevitably results in the need for changes, which in turn interrupt project sequencing and rhythm, cause rework, increase 1This figure was calculated from the 13 appropriations bills enacted for FY 2001, using line items for construction. 2The Project Management Institute (2000), for example, divides preproject planning (which it calls scope management) into five major subprocesses: initiation, scope planning, scope definition, scope verification, and scope change control. Other preproject planning process maps are contained in The Owner's Role in Project Management and Preproject Planning, Proceedings of Government/Industry Forum (National Research Council, 2002).

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16 STARTING SMART: KEY PRACTICES FOR DEVELOPING SCOPES OF WORK FOR FACILITY PROJECTS Analyze Project Risk Select Team Draft Charter Prepare Preproject Planning Plan Validated Project Concept Analyze Technology Evaluate Site(s) Prepare Conceptual Scopes and Estimates Evaluate Alternative(s) Team Organize for; _ Preproject Formulated Document Project Mope and Design Define Project Execution Approach Establish Project Control Guidelines Compile Project Definition Package Make Decision Authorization Selected Develo a . 9 ~ Decide ecision Select Project | Alternative(s) I ProJe Pt I Project I Whether to I D Alternative(s) _ Definition Definition Proceed _ . Package ac age With Project FIGURE 1 Preproject planning process (Construction Industry Institute, 1995~. project time and cost, and lower the productivity as well as the morale of the work force (O'Connor and Vickroy, 1986~. A Business Roundtable (1997) report showed that 49 of 50 projects with excellent project scope develop- ment met all project objectives, while fewer than one in three with less than adequate preproject planning met their objectives. Presenters from the private sector reiterated the importance of preproject planning at a recent confer- ence sponsored by the National Research Council (2002~. Over the past 10 years, researchers at the University of Texas have conducted several research projects to investigate preproject planning, including the project scope definition process. These studies have included more than 250 facility projects representing approximately $8.2 billion. More than 500 industry practitioners have participated in these studies, and the project planning processes of more than 100 organizations have been analyzed. Research results have shown that thorough preproject planning leads to improved performance (cost, schedule, and operational characteristics) for both industrial and building projects (Construction Industry Institute, 1995; 1996; 1997, 1999; Gibson et al., 1997; Wang, 2002~. Findings from these studies have also shown that success during the detailed design, construction, and start-up phases of a project depends heavily on the participa- tion of stakeholders in preproject planning activities, the level of effort expended during the project scope defini- tion phase, and the thoroughness of the project scope of work. This research has also shown that the preproject planning process needs to be tailored to the specific project type and complexity. Building projects differ from industrial projects in various ways, including the approach to the planning, design, and construction of facilities; the owner's perspective; the architectural focus; and a building's functions. Nonetheless, there are many similarities. Like the industrial sector, the building industry generally suffers from poor or incomplete preproject planning. As in the industrial sector, preproject planning in the building sector is a process that needs to have input from a wide variety of individuals and should have significant owner involvement (Cho et al., 1999~. The federal government has many different types of facility projects that require preproject planning, including office buildings, research facilities, prisons, maintenance facilities, court- houses, and military housing. Different levels of effort and participant skill sets are required for different types of projects. Recognizing the appropriate levels of effort and the skills that are needed is difficult yet critical for project success.

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PREPROJECT PLANNING PROCESSES AND PROJECT SCOPES OF WORK IMPACT OF INADEQUATE PREPRO,IECT PLANNING 17 Measurement of effective preproject planning has been the subject of much study. Merrow et al. (1981) developed a practice use metric for first-of-a-kind facilities that consisted of several variables, including process flow development, execution approach, and site characterization. This metric became the basis for benchmarking services such as those provided for Department of Energy environmental projects in the mid-199Os (Independent Project Analysis, 1996~. A white paper by the Business Roundtable (1997), based on benchmark data, reported that projects with effective preproject planning are more likely to meet cost, schedule, and operational objectives. Inadequate preproject planning is the most significant determinant affecting project performance in the Construction Industry Institute's (CII) Benchmarking and Metrics database. Its relationship with established performance metrics is highly correlated, and CII considers preproject planning to be a best practice. More recently, it has measured preproject planning and other practice use metrics as well as performance metrics (Construction Industry Institute, 2000~. Building and industrial projects with thorough preproject planning have consistently outperformed other projects in terms of cost, schedule, and number of change orders, as shown in Tables 3 and 4. Table 3 compares project performance for a sample of 62 industrial projects worth $3.9 billion using a 200- point Project Definition Rating Index (PDRI)3 score cutoff. These data show the mean performance for the projects versus execution estimates for cost and schedule and the absolute value of changes as a percentage of total project cost. Projects with a PDRI score under 200 (a lower score is better) statistically outperformed projects with a score above 200 (Wang, 2002~. The PDRI score was determined just prior to the beginning of detailed design, and the differences in performance parameters are statistically significant. TABLE 3 Comparison of Projects with PDRI Industrial Project Scores Above and Below 200 PDRI Score Performance 200 Cost 3% below budget 9% over budget Schedule 1% ahead of schedule 8% behind schedule Change orders 6% of budget 8% of budget (N= 35) (N= 27) A similar evaluation was performed on a sample of 78 building projects representing approximately $1.2 billion. Table 4 summarizes the project performance and PDRI score using the same 200-point cutoff. Again, projects with better scope definition (lower PDRI score) significantly outperformed projects with poorly defined scope at the 95-percent confidence level. A subsample of 25 similar projects from one owner organization in this evaluation showed a construction cost savings of 3:1 for every dollar invested in planning (Wang, 2002~. The mean percentage of total project cost spent on preproject planning activities for all of the building projects in CII's database was 2.4 percent, which indicates a significant return on the investment of planning resources compared to total savings in budget, change orders, and time (Construction Industry Institute, 2000~. In summary, in the studies cited here and in many other investigations, preproject planning has proven to be 3The PDRI is a tool for measuring the degree of scope development on building projects (Construction Industry Institute, 1999). It consists of a weighted checklist and descriptors that can be used as a project risk analysis tool during the preproject planning process. Additional information about PDRI is included later in this chapter and in the appendixes.

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8 STARTING SMART: KEY PRACTICES FOR DEVELOPING SCOPES OF WORK FOR FACILITY PROJECTS TABLE 4 Comparison of Projects with PDRI Building Project Scores Above and Below 200 PDRI Score Performance 200 Cost 3 % below budget 13 % above budget Schedule 3% ahead of schedule 21% behind schedule Change orders 7% of budget 14% of budget (N = 17) (N = 61) a key ingredient in determining whether a project will ultimately support an organization's mission and meet the owner's requirements. An investment of approximately 2 to 5 percent of a project's total cost will fund a cost- effective approach to increase the probability of success in the execution phase of the facility building process and can lead to better life-cycle operational performance. This level of project scope definition is a prerequisite to preparing an effective scope of work for design. KEY FUNDAMENTALS OF THE PREPROJECT PLANNING PROCESS The previous sections provide an overview of the preproject planning process and its contributions to project success. Major steps in the process, as shown in Figure 1, include organizing a team, considering and selecting alternatives, developing a project definition package (project scope of work), and making an informed decision regarding whether to proceed with the project. Research results were shown which indicate that effective preproject planning improves both project performance and the predictability of that performance. Key fundamentals of an effective preproject planning process are outlined in the following discussion to assist owner organizations in evaluating and enhancing existing processes or in developing new ones. The organization should ensure that it is performing the "right" project. This requires leadership and stakeholder involvement. The preproject planning team should ensure that the proposed project will meet the strategic intent of the organization with respect to its mission and needs. Preproject planning should begin with good leadership, effective and appropriate involvement of key stakeholders, and a detailed determination of project objectives and requirements. It is important to ask many questions and manage the expectations of the project sponsor and the project team. The team must be chartered and given adequate resources by project sponsors to allow it to explore and choose the most cost-effective project alternatives in terms of site and technology options. Research has shown that stakeholder identification and team alignment are critical to project success. A typical preproject planning team is comprised of individuals representing a wide variety of functional groups with diverse priorities, requirements, and expectations. These individuals may be as varied as building managers, maintenance supervisors, construction managers, technical representatives, future tenants, scientists, military officers, or cabinet officials (Construction Industry Institute, 1995~. Figure 2 presents the definition and a graphical representation of alignment (Griffith and Gibson, 2001~. Each team member brings different priorities and expectations into the preproject planning process. Alignment is the process of incorporating all of those distinct viewpoints into a uniform set of project objectives that meets the organization's needs. Alignment should be developed and maintained by the project team, and work should be planned and documented to provide the foundation for the project execution phase.

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PREPROJECT PLANNING PROCESSES AND PROJECT SCOPES OF WORK - Or a - - _ - The condition where appropriate project participants are working within acceptable tolerances to develop and meet a uniformly defined and understood set of project objectives. FIGURE 2 Graphical representation and definition of alignment (Construction Industry Institute, 1997~. 19 The final stage of any successful alignment process is the acceptance and commitment of the entire team to the overall project objectives. Alignment cannot be achieved without the commitment of team members and the endorsement of the team sponsors. The arrows in Figure 2 are adjusted to form a uniform flow representing the evolution toward commitment to the overall project objectives. A project's objectives should meet the organization's mission and business requirements. They are formed in the early stages of project scope develop- ment and have a critical impact on the ultimate success of the project. In effect, the objective statement should be one of the first elements of the project scope of work to be developed, as it provides a course of direction for succeeding tasks. Perhaps an appropriate analogy of a misaligned project would be that of driving a car with the front end out of alignment. Three unfortunate consequences generally occur: the ride is uncomfortable for the passengers, the tires wear out quickly, and the car drifts off the road. The same may be said of a project team that is out of alignment. The participants are in a constant struggle to maintain their viewpoints, and no one is entirely satisfied with the project's outcome (Construction Industry Institute, 1997~. Ten critical issues positively influence alignment when properly addressed or can cause difficulty in aligning the team to the task at hand. These critical alignment issues, in order of importance, are as follows: 1. Stakeholders are appropriately represented on the preproject planning team. The preproject planning team should include representatives from all significant project stakeholders so that their priorities and expertise are included in the project planning process to achieve optimum results. At a minimum, the team needs to include representatives from the business management group, operations group, construction, and often the general public, in addition to project management and design personnel (Construction Industry Institute, 1997~. It is often beneficial to structure a core team of five to seven individuals and to bring in representatives from additional key areas as needed. The exact size and makeup of the core team should be tailored to the specific requirements of the project in question. For instance, on small projects there may be no established team, and the project manager would use expertise from within the organization or consultants as needed.

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20 STARTING SMART: KEY PRACTICES FOR DEVELOPING SCOPES OF WORK FOR FACILITY PROJECTS 2. Project leadership is defined, effective, and accountable. The organization should be committed to developing and supporting effective team leadership because it will positively influence team members' commit- ment to the project's objectives. The leadership should be technically proficient and knowledgeable of the preproject planning process. It should also have defined responsibilities, be accountable for results, and remain focused. Ideally, project leadership is established early in preproject planning and maintains continuity through facility commissioning. 3. The priorities among cost, schedule, and required project features are clear. Clearly stated priorities among project cost, schedule, and quality features will assist all team members in making more uniform and correct decisions regarding the project and its objectives. Identifying these priorities in advance saves time by allowing more empowered decisionmaking by team members. 4. Communication within the team and with stakeholders is open and effective. Establishing open and effective communications between all members of the preproject planning team is essential. This involves breaking down barriers to communication and utilizing advanced technologies to improve communication. Peri- odic communication with stakeholders outside the preproject planning team will ensure timely input and their alignment with the project direction. This can be accomplished through team meetings, newsletters, e-mail, video conferencing, town hall meetings, and computerized information management systems (Construction Industry Institute, 1997~. 5. Team meetings are timely and productive. Team leadership should conduct frequent and productive project meetings both to inform the team and to obtain input from team members. Team leadership should ensure that the team follows good meeting practices by providing an agenda, developing meeting minutes, assigning meeting roles, evaluating the meetings, and so forth. Meeting schedules should be set based on the size, pace, and complexity of the project. Too frequent meetings do not allow work to be accomplished in the interim. Too much time between meetings can damage alignment. 6. The team culture fosters trust, honesty, and shared values. Team leadership should develop a culture of trust and honesty so that team members can maintain open, synergistic relationships. This culture is influenced by the organizational cultures that interact with it; however, the team should make sure that trust and honesty are fostered in its activities. This can be accomplished through kickoff meetings, establishing the importance of trust in the team's performance, developing long-term working relationships over a number of projects, and providing accurate information (Construction Industry Institute, 1997~. 7. The preproject planning process includes sufficient funding, schedule, and scope to meet objectives. It is important to establish and follow a prescribed preproject planning process. A comprehensive preproject planning process includes a team charter that outlines team member's roles and responsibilities, budget, schedule, and objectives of the team. The preproject planning process should be given adequate funding and time. Lack of funding is often cited as one of the most significant barriers to gaining alignment and in performing thorough preproject planning. 8. The reward and recognition system is designed to promote the achievement of project objectives. Manage- ment should develop and implement a reward and recognition system for team members and outside contractors that supports the overall project objectives. Conflicting reward structures for different team members may cause decisions regarding project objectives and planning to be in direct opposition, resulting in less than optimal outcomes. 9. Teamwork and team-building programs are effective. Proper alignment requires that a group of diverse individuals from different functional groups be able to work together as a cohesive team. It is important that

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PREPROJECT PLANNING PROCESSES AND PROJECT SCOPES OF WORK 21 teamwork is developed through both formal and informal team-building programs focused on the project activities. 10. Planning tools (e.g., checklists, simulations, work;flow diagramsJ are effectively used. Proper use of tools by the entire team to develop and manage project organization, scope, schedule, estimates, and work processes fosters alignment during preproject planning. The greatest value in using these tools is that they foster open communication and acceptance of the approved project scope, estimates, schedule, and work processes. Examples of such tools include work process diagrams, scope definition checklists, scheduling techniques, and risk analysis techniques. Immediately following the formation and alignment of the project team, and still early in preproject planning, the project team should review site and technology options and make critical decisions. Many organizations call this phase conceptual planning. It is important that key decision makers understand and commit to a rigorous analysis of alternatives and to the chosen alternative decisions .4 The types of issues that need to be defined and documented early in preproject planning for building projects are outlined below. Properly addressing these issues will ensure that the project team understands the project's requirements and can begin detailed project scope development. Many of these issues require input from project sponsors as well as operations and maintenance personnel. It is critical to document these issues to provide a sound basis for developing the project scope of work. The lists given below and in succeeding sections are in order of highest to lowest importance (Construction Industry Institute, 1999~. Many of these issues are strategic in nature and are required to develop the project scope, whereas others are investigated and developed at the conceptual level in order to compare alternatives. It should be noted that to investigate several alternatives at a detailed level requires significant cost. The first two catego- ries, business or mission need and ownership philosophy, are prerequisites to developing viable alternatives. Many times this process is iterative in nature; if no viable alternatives are possible, these first two categories may need to be revisited. Business or mission need. These issues should be resolved to ensure that the project requirements are well understood and that the project will meet the strategic intent of the organization: Building use Business justification Business plan Economic analysis Facility requirements Future expansion/alteration considerations Site selection considerations Project objectives statement Ownership philosophies. The long-term requirements for sustained operations in the facility should be well understood and include: Reliability philosophy Maintenance philosophy Operating philosophy Design philosophy (includes sustainability) 4A discussion of alternative selection is given in the Pre-Project Planning Handbook (Construction Industry Institute, 1995).

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22 STARTING SMART: KEY PRACTICES FOR DEVELOPING SCOPES OF WORK FOR FACILITY PROJECTS Project requirements. The overall project requirements need to be understood and documented, including: Value-analysis process Project design criteria Evaluation of existing facilities Scope of work overview Project schedule Project cost estimate The project manager and team should ensure that they develop the "right work product" during preproject planning. Once the team is aligned toward the right project and has selected alternatives to meet the strategic requirements of the organization, the team should identify, address, and document the appropriate scope definition elements to ensure that the project has a good design basis. Basing the scope of work for design on a well- developed project scope of work will ensure a smooth transition from preproject planning to detailed design and construction. Many times definition of the project scope involves the use of outside consultants or architect- engineers. A well-developed project scope of work roughly corresponds to a 15- to 25-percent complete design effort. Major tasks include developing the technical requirements; performing risk management activities; devel- oping the project control baseline, including cost estimates; and documenting this information to form a good basis for detailed design activities. Project scope definition activities can generally be categorized into the following four major technical areas: extensive site evaluation; good flow design (space planning for buildings); documenting design parameters, including code, regulatory, and user preferences; and identifying equipment requirements in detail. A partial list of the issues that should be defined prior to development of a scope of work for the detailed design of building projects (Construction Industry Institute, 1999) includes the following: Extensive site evaluation. Uncertainty about the conditions and characteristics of the site and existing facilities can have a devastating impact on the project in the detailed design phase. Issues that should be explored and documented include: Site layout Site surveys Civil/geotechnical information Governing regulatory requirements Environmental assessment Utility sources with supply conditions Special water and waste treatment requirements Security requirements Flow design. Understanding how people and functions relate to one another is essential for facility functionality and as a basis for detailed design. These relationships should consider building uses as well as horizontal and vertical circulation. Requirements that should be addressed and documented include: Program statement Building finishes Room data sheets Furnishings, equipment, and built-ins Building summary space list Overall adjacency diagrams Stacking diagrams

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PREPROJECT PLANNING PROCESSES AND PROJECT SCOPES OF WORK Growth and phased development Circulation and open-space requirements Functional relationship diagrams/room by room 23 Design parameters. The boundaries for the designer should be developed to ensure that the needs and intent of the building users are met. Among the issues to develop and document are: Civil/site design Architectural design Structural design Mechanical design Electrical design Building life safety requirements, including security Sustainable design Constructability analysis Equipment requirements. Non-core equipment requirements should be investigated and documented. These equipment systems may include telecommunications, laboratory, food service, and so on. The team needs to investigate and document: An equipment list Equipment location drawings Equipment utility requirements Many organizations think that a project scope is adequately developed once general requirements are defined and a preferred alternative is chosen. This is not true. To adequately develop a project scope, real design activities by architects, engineers, and consultants should be performed to translate project requirements into a design basis. In effect, the project scope provides a bridge between the operational and organizational needs that a facility will meet and the technical aspects of project execution. The project manager and team should choose the "right approach" to project design and construction execution. During preproject planning, the team should investigate and choose the right execution approach to ensure a good basis for successfully managing the project during design and construction, if it is decided to proceed with the project. This approach should address the acquisition strategy for designs consulting and ~ ~ ~ rr 1 0~ 0 0 construction services and should ensure that the owner organization has controls in place to manage the project tasks through commissioning and occupancy. These issues are often part of the standard operating procedures of the organization, but it is critical that the process and details of execution be adapted to the project at hand. The types of execution issues that need to be defined prior to the development of a scope of work for design are outlined below. It should be noted that failure to address design and construction execution issues during preproject planning can severely impact the cost and particularly the schedule performance of a project (Construc- tion Industry Institute, 1999~. Procurement. The strategy and control mechanisms for the acquisition of critical equipment and materials should be developed and documented, including: Identify long lead/critical equipment and materials Procurement procedures and plans Project control. Systems and processes should be in place to guard against potential problems that will occur during project execution, including:

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24 . STARTING SMART: KEY PRACTICES FOR DEVELOPING SCOPES OF WORK FOR FACILITY PROJECTS Project cost control Project schedule control Risk management Project execution plan. A plan should be in place to ensure that execution will proceed smoothly once the design and construction phases begin, including: Project organization Owner approval requirements Project delivery method Design/construction plan and approach At some point in the development of an execution approach, the scope of work for design is developed. This document depends on the level of project definition and should address the contractual obligations for project delivery as well as specific process requirements of the contractor and owner organization. The scope of work for design can be modified to include significant project scope development activities and process steps if needed. Overall, processes to ensure that the project will transition smoothly into the execution phase should be developed during the preproject planning phase. Without an effective execution approach, the project will flounder and management involvement will usually be required to assist the project. ENABLING MANAGEMENT ACTIONS ~7 1 J Having described the basics of the process, it is important to understand the management actions required to make preproject planning a consistent and value-adding process throughout an organization. Even organizations with little project management expertise and poorly defined project processes will occasionally have what appear to be highly successful projects. These occurrences may be the result of lowered expectations, use of experienced contractors or project managers, "Herculean" efforts, or just good luck. Although individual project managers can use the techniques described in this chapter to positively impact their projects, the ability of an entire organization to continuously improve project performance over time requires strong management action. The goal of preproject planning process improvement is not necessarily to have a few spectacular successes offset by some disastrous failures; it should be an overall focus on project improvement so that the performance of the entire project portfolio improves. The following overarching actions have been found to improve the effectiveness of preproject planning (Construction Industry Institute, 1995; 1997; Davis-Blake et al, 2001; National Research Council, 2001~: existence and consistent use of a detailed preproject planning process, including formal approvals or decisions at the end of each phase or subphase; proved; commitment to adequately tuna preproject planning activities and to support plans that have been ap- fostering an environment that makes no exceptions to conducting the preproject planning process; development and use of effective practice metrics for the planning process and performance metrics for projects in order to facilitate improvement; discipline to fully support the preproject planning process and to make project scope decisions during preproject planning rather than during detailed design and construction, since this can corrupt the process and lead to cynicism; and support for the development and protection of a cadre of experienced project planners, including training programs, progressive assignments, and recognition. This last point warrants emphasis for federal agencies. According to recent reports, the loss of human capital in the federal work force in the coming years is a critical concern (General Accounting Office, 2000; 2001b). In

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PREPROJECT PLANNING PROCESSES AND PROJECT SCOPES OF WORK 25 a similar study of the private sector, an expected loss of white-collar workers in the project professional ranks over the next few years will be a significant challenge for both owners and contractors (Davis-Blake et al., 2001~. The loss of corporate knowledge as workers experienced in facility projects leave or retire is especially important in that experienced personnel who have tacit organizational knowledge and skills to address critical issues are needed to ensure that preproject planning is effectively and consistently performed. The maintenance of core competen- cies as recommended by the National Research Council (2002) and the Construction Industry Institute (Anderson et al., 1999) is essential for successful management of preproject planning and the entire facilities acquisition process. TOOLS AVAILABLE TO SUPPORT PREPROJECT PLANNING ACTIVITIES Many private- and public-sector organizations develop internal processes, checklists, and techniques to ensure the various activities that make up the preproject planning process are performed thoroughly and consistently. These tools and techniques are often structured to address specific types of projects and the proprietary knowledge of the organization. There are many books that describe the preproject planning process, and many of these include checklists and detailed methods (Griffin, 1972; Pena, 1987; Preiser, 1993; Billings, 1993; Construction Industry Institute, 1995; Haviland, 1996; Cherry, 1999; American Society of Civil Engineers, 2000~. Some organizations have developed detailed process manuals to ensure that preproject planning is adequately performed (University of Texas System, 1995; Office of Planning and Budget and the Georgia State Financing and Invest- ment Commission, 2001~. In 1997 a tool called the Alignment Thermometer was developed in order to allow a project team to assess its level of alignment during the preproject planning process (Construction Industry Institute, 1997~. The book accompanying the tool describes major issues that should be addressed to ensure that the team is effective. The Alignment Thermometer is shown in Appendix C. A tool called the Project Definition Rating Index has also been developed. The PDRI is a weighted checklist of project scope definition elements that allows self-assessment of a project to determine the current state of scope definition and to identify areas of risk that remain to be addressed. Two versions of the tool exist one for industrial (process) facilities and one for building facilities (Construction Industry Institute, 1996; 1999~. Both tools have been widely used by public and private industry organizations. The PDRI for building projects consists of 64 elements that are grouped into 11 categories and further grouped into three main sections. The 64 elements are arranged in a score sheet format and are supported by 38 pages of detailed descriptions and checklists (Construction Industry Institute, 1999~. The weighted score sheet containing the PDRI's three sections, l l categories, and 64 scope definition elements is given in Appendix D. As an example of the detail included in the tool, the descriptions for the three elements making up the equipment category are given in Appendix E. The format of the score sheet and descriptions is similar to the industrial projects version of the PDRI that was developed in 1996. PDRI is a risk management tool that can help a preproject planning team assess and measure project scope definition risk elements and then develop mitigation plans. A risk management analysis is most effective when performed prior to "locking in" facility budgets and committing funds to detailed design and construction. The PDRI is adaptable to small project scope development. Experience has shown that it provides numerous benefits, including a: checklist that a project team can use to determine the necessary steps to follow in defining the project scope; list of standardized project scope definition terminology throughout the construction industry; standard for rating the completeness of the project scope definition to facilitate risk assessment, prediction of escalation, evaluation of the potential for disputes, etc.; means to monitor progress at various stages during the preproject planning effort and to focus efforts on high-risk areas that need definition; tool that aids in communication between owners and design contractors by highlighting poorly defined areas in a scope definition package;

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26 STARTING SMART: KEY PRACTICES FOR DEVELOPING SCOPES OF WORK FOR FACILITY PROJECTS means for project team participants to reconcile differences by providing a common basis for project evaluation; training tool for organizations and individuals throughout the industry; and benchmarking tool for organizations to use in evaluating the completion of project scope definition versus the probability of success on future projects. The U.~. Army (construction Engineering Research Laboratory has developed tools that can be used to support preproject planning activities to identify client criteria and keep the client involved in the process (www.cecer.army.mil). Some of these tools are currently used by the federal agencies interviewed in this study. The tools include: Sustainable Project Rating Tool (SPiRiT), which is a checklist/rating system for sustainable design. This provides a structured approach to addressing sustainable design issues and meeting sustainable design objectives in project scope development. Design Review and Checking System (DrChecksJ and Corporate Lessons Learned (CLLJ System, which allow online design reviews by multiple users, support feedback and comments, and capture lessons learned for future reference. These are commonly used to review detailed designs but could also be used to review prelimi- nary design work done during preproject planning. Modular Design System, which is designed to maintain the client's criteria through the design process. This facilitates the inclusion of stakeholder input. Building Composer software, which supports the identification of customer criteria and transfers those criteria to the facility model during design. This facilitates the gathering and inclusion of stakeholder input. Other preproject planning and project scope development tools and techniques currently in use by federal agencies are outlined in Chapter 4.