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Suggested Citation:"Chapter 9 - Guidebook Implementation." National Academies of Sciences, Engineering, and Medicine. 2020. Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods, Volume 2: Construction Manager–General Contractor Delivery. Washington, DC: The National Academies Press. doi: 10.17226/25829.
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Suggested Citation:"Chapter 9 - Guidebook Implementation." National Academies of Sciences, Engineering, and Medicine. 2020. Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods, Volume 2: Construction Manager–General Contractor Delivery. Washington, DC: The National Academies Press. doi: 10.17226/25829.
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Suggested Citation:"Chapter 9 - Guidebook Implementation." National Academies of Sciences, Engineering, and Medicine. 2020. Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods, Volume 2: Construction Manager–General Contractor Delivery. Washington, DC: The National Academies Press. doi: 10.17226/25829.
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Suggested Citation:"Chapter 9 - Guidebook Implementation." National Academies of Sciences, Engineering, and Medicine. 2020. Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods, Volume 2: Construction Manager–General Contractor Delivery. Washington, DC: The National Academies Press. doi: 10.17226/25829.
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Suggested Citation:"Chapter 9 - Guidebook Implementation." National Academies of Sciences, Engineering, and Medicine. 2020. Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods, Volume 2: Construction Manager–General Contractor Delivery. Washington, DC: The National Academies Press. doi: 10.17226/25829.
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Suggested Citation:"Chapter 9 - Guidebook Implementation." National Academies of Sciences, Engineering, and Medicine. 2020. Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods, Volume 2: Construction Manager–General Contractor Delivery. Washington, DC: The National Academies Press. doi: 10.17226/25829.
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Suggested Citation:"Chapter 9 - Guidebook Implementation." National Academies of Sciences, Engineering, and Medicine. 2020. Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods, Volume 2: Construction Manager–General Contractor Delivery. Washington, DC: The National Academies Press. doi: 10.17226/25829.
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Suggested Citation:"Chapter 9 - Guidebook Implementation." National Academies of Sciences, Engineering, and Medicine. 2020. Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods, Volume 2: Construction Manager–General Contractor Delivery. Washington, DC: The National Academies Press. doi: 10.17226/25829.
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Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

34 9.1 Introduction Implementation of CM-GC contract administration occurs in the context of the larger orga- nization. This chapter provides guidance on identifying • Strategies for meeting implementation goals at the organizational level, • Tools for meeting implementation goals at the project level, • Personnel and resources for implementation at both organizational and project levels, and • Aspects of organizational culture important to CM-GC contract administration. Table 9.1 summarizes implementation goals at the organization and project levels. Strategies discussed here are those presented in Chapter 2, and tools discussed here are those presented in Chapters 3 through 8 of this guidebook. 9.2 Organizational-Level Goals The organizational-level goals focus on introducing and embedding new CM-GC contract administration tasks and processes into the organization. Organizational Goal 1. Commit to Long-Term Implementation When an agency adopts an alternative contracting method such as CM-GC, new goals and new strategies are required to achieve those goals. A long-term commitment by the agency to embrace CM-GC processes prevents the agency from reverting to processes and tools used for traditional delivery. In many cases, it is not a matter of making minor adjustments to existing D-B-B processes but of implementing totally new processes. Adopting, disseminating, and explaining organizational goals and strategies such as those presented here help to demonstrate long-term commitment. Additionally, an agency demonstrates long-term commitment when implementing a plan of continuous improvement with the CM-GC related organizational strategies. This continuous improvement involves evaluation of the CM-GC strategy by track- ing implementation and measuring performance. Strong commitment at the organizational level helps provide a framework for CM-GC to be successfully implemented at the project level. Organizational Goal 2. Assign Roles and Responsibilities An organization can make progress on strategies when people within the organization know their roles and responsibilities relating to those strategies. The roles and responsibilities of leaders within a GM-GC project include C H A P T E R 9 Guidebook Implementation

Guidebook Implementation 35 • CM-GC coordinator—A CM-GC coordinator is involved in the procurement of every CM-GC project within the agency. • Alternative contracting methods officer—An alternative contracting methods officer supports project managers in all aspects of procurement and contract administration. • Discipline-specific leads—These agency-level leaders should understand how the CM-GC process will change reviews into an iterative process incorporating contractor feedback on cost and schedule. • Upper-level administrators—Upper-level administrators can incentivize staff performance by emphasizing the implementation of CM-GC processes on CM-GC projects. • CM-GC champion—An agency staff member who advocates for proper implementation of CM-GC practices on a project. This person could be a designated agency staff member on the project team or the alternative contracting methods officer. Creating and improving strategies require a commitment of time and resources. The most efficient way to ensure success is for the agency leaders to assign and train team members to direct and monitor implementation. Agency staff should be involved throughout this process to incorporate ideas, opinions, and areas of expertise. However, team members taking the lead should be clearly identified. Assigning roles and responsibilities minimizes confusion and ensures that strategies to reach the implementation goals are being actively managed. Organizational Goal 3. Assess and Adjust Current Strategies Assessment can occur at two different times. The first time is before CM-GC processes or policies are in place. The second time is after implementing CM-GC processes. In either case, agency leaders want to understand the current organizational environment to reveal opportuni- ties for improvement. Assessment areas are current policies, procedures, and guidance documents that affect D-B-B contract administration. It is also important that the leader determines if the written agency guidance is being followed or if there are unwritten rules that are being used. Feedback from agency personnel can reveal what is working well and what needs improvement. Document review and feedback from agency personnel will identify areas of strength and areas for improvement. The assessors should look for D-B-B delivery processes that do not fit Agency Level Implementation Focus Implementation Goals Organization Strategies • Commit to long-term implementation. • Assign roles and responsibilities. • Assess and adjust current strategies. • Communicate agency direction for CM-GC contract administration. • Train organizational team members. • Develop methods to measure and evaluate performance. Project Tools • Assess existing tools. • Identify appropriate tools based on project characteristics. • Train project team members. • Test new tools. • Evaluate the performance of tools. Table 9.1. Implementation goals Successful CM-GC construction administration will require agencies to assign champions who have adequate time and resources to be successful.

36 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods the goals of a CM-GC project, as this becomes a primary area for innovation and change. Once CM-GC processes are in place, the leader’s assessments focus on whether agency personnel are effectively using the new CM-GC processes, if there are obstacles to effective implementation, or if agency personnel are reverting to D-B-B processes. An assessment can show changes in the procurement process to strengthen alignment during contract administration. Alternatively, an assessment can show a gap in responsibilities or an overlap in roles. If processes are not implemented consistently, guidance may not be clear and training may be needed. After evaluation of the existing strategies, the leader can begin incorporating new informa- tion and ideas from this guidebook. Ideas for improvement may come from the strategies for contract administration in Chapter 2 or from the tools presented in Chapters 3 through 8 and Appendix A. Updating existing policies, procedures, and guidance documents with new stra- tegic approaches will convey long-term commitment and will promote a consistent approach to CM-GC projects. Organizational Goal 4. Communicate Agency Direction for Construction Manager–General Contractor Contract Administration Gaining the support of agency personnel is an important step to successfully implement new strategies. This step involves establishing a clear understanding of the new strategies and their benefits. The strategies in Chapter 2 provide an excellent roadmap for an agency’s CM-GC direction. These strategies provide a framework for the creation of agency-specific goals. For example, the Alignment Strategy can provide for a group of programmatic goals that focus on the types, sizes, and levels of complexity of projects for which an agency will use CM-GC. The Preconstruction Services Quality Strategy can provide for direction on the use of independent cost estimator services and the process for reaching GMPs on each project. Agency leaders can host agencywide workshops as an effective way to communicate an agency’s new or evolving approach to CM-GC contract administration. Workshops should focus on informing agency members of forthcoming internal changes and expected long-term benefits. Interagency memos and newsletters are other ways to communicate information and reinforce the agency’s goals. The specific roles and responsibilities among individuals and team members will vary throughout the agency, as discussed below. Organizational Goal 5. Train Organizational Team Members When agency members have been informed about why new strategies are being intro- duced, they need to understand how to participate and contribute. Training can cover goals, approach, processes, benefits, and differences from D-B-B. Agency personnel involved in training at the organizational level include personnel involved in procurement, contract administration, payment, and compliance. Procurement personnel need to learn how to procure an independent cost estimator, as well as a CM-GC firm. The project manager and other personnel will need to be familiar with construction cost models and built- up estimates versus estimates based on historical data. Contract administra- tion personnel should know their role during design and construction to CM-GC training at the organizational and project level will increase the probability of successful project delivery.

Guidebook Implementation 37 ensure design and construction quality. Payment personnel must understand how measure- ment and payment applies to a lump sum or GMP, and how to document compliance with federal requirements for federally funded projects. The training discussed here is at the organizational level. Agency personnel at the organi- zational level are frequently the first to be involved with a CM-GC project, and it is important that they implement the correct approach at the earliest stages. Individuals at the organi- zational level may not adopt as many tools as those at the project level. To achieve effec- tive CM-GC delivery, organizational-level personnel must understand and implement the agency’s CM-GC approach as consistently as personnel at the project level. Organizational Goal 6. Develop a Method to Measure and Evaluate Performance It is crucial for the agency to develop a method to measure and evaluate the CM-GC program’s performance to ensure goals are met and continuous improvement occurs. In developing a performance measurement methodology, an agency should consider • What will be measured? • How will it be measured? • Who will perform the measurement? • When will the measurement occur? • What will be done with the results? Agency leaders can use multiple performance criteria to measure the effectiveness and success of the CM-GC program. These performance criteria include measuring whether projects are being completed on budget, on schedule, and with minimal disputes. Current performance can be compared with the historical performance of the CM-GC program or with the performance of the traditional D-B-B program. In any performance analysis, decision makers should understand the context of the data. Projects of similar size and complexity should be compared. Any unusual circumstances regard- ing environmental issues, utility conflicts, right-of-way acquisition, and political issues should be factored into the analysis. Assessments can include a cost performance evaluation that compares the original agency- estimated costs to the awarded and final costs. This allows the agency to observe and potentially minimize the percent growth of project costs throughout the various stages. However, data must be analyzed in light of many variables. For example, during a time when there is a rise in construction prices, an agency estimate developed from historical prices may not provide an accurate estimate. Much like the project costs, the agency should strive to minimize or eliminate the schedule growth of a project to reduce overhead costs and road user costs. Schedule variation analysis should take into account the agency’s method and assumptions in estimating a schedule compared with a contractor’s method and assumptions. Additionally, impacts of unknown conditions, agency change orders, or situations outside the contractor’s control should all be considered when analyzing schedule data. Performance assessments can include a dispute evaluation that can provide the agency with feedback on the quality of project documents and communication with the CM-GC team. Measuring the number, type, and cost of disputes will help agencies identify opportunities to improve project delivery.

38 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods Other performance criteria include safety, quality, mobility, and environmental impacts. Measuring and evaluating CM-GC performance can help an agency continuously improve CM-GC contract administration. Agency leaders must assign the responsibility of performance measurement and evaluation to an individual or a team to ensure that it is being conducted consistently. Adequate time and resources must be dedicated to this function, which can be performed internally or contracted out to an independent evaluator. The agency also must determine the frequency of evaluation. Frequency options include continuous measurement, or cyclical (i.e., monthly, quarterly, annually, or end of project). Monthly assessments could include partnering evaluations. Monthly, quarterly, and annual evaluations can provide data on how a project is progressing with regard to budget, schedule, and changes. End-of-project evaluations allow the project team to compare their project to benchmarks or other projects. The frequency of evaluation will vary from agency to agency depending upon program maturity and need, but it is important to select a timeframe and remain consistent. It is difficult to go back in time to collect data, so at the beginning of each project a decision should be made on what data will be collected and how frequently that data will be gathered. Measurements becomes useful when they are followed up by analysis and actions that lead to continuous improvement. 9.3 Project-Level Goals The project-level goals focus on introducing and embedding new tasks and processes into a project. Project Goal 1. Assess Existing Tools Agencies have a vast institutional knowledge of D-B-B tools. The purpose and implemen- tation of these tools is sometimes documented and sometimes unwritten. These tools have benefited from years of use and improvement, while familiarity makes their implementation second nature in many agencies. Some D-B-B tools can be used with CM-GC. However, when CM-GC processes and goals differ from D-B-B, then specific CM-GC tools should be used. Cost, schedule, quality, and other benefits of CM-GC can be lost when D-B-B tools are mis- applied to the CM-GC process. Therefore, a project team must work collaboratively to implement CM-GC contract administration tools to achieve the full benefits of CM-GC delivery. If an agency has never implemented a CM-GC project, agency leaders and project managers should first identify contract administration functions that differ from D-B-B. An agency can select, develop, or adapt tools to perform those CM-GC contract administration functions. If an agency has implemented CM-GC projects, tools currently being used on CM-GC projects should be identified and reviewed. Even if these practices are not currently referred to as tools, they may be considered tools. The definition of a tool—repeated from Chapter 1—is provided to help clarify what a CM-GC contract administration tool is. Tools are used to perform an operation to accomplish a specific project goal. Tools support a regular and systematic procedure to accomplishing this goal. Examples of tools include checklists, spreadsheets, guidelines, matrices, structured meetings, and more. Specific examples related to this guidebook include tools that help with oversight management, design management and quality, construction management and quality, project completion, and closeout. When the project team has a list of available tools from past agency experience, a comparison can be made between the tools currently in use and those included in this guidebook. Project team members should ask questions about existing tools, such as the following:

Guidebook Implementation 39 • Can the purpose and implementation of existing tools be described better? • Can existing tools be improved to perform better? • Is an existing tool suited for D-B-B but not CM-GC, and should it be removed from the CM-GC tool kit? Project team members should ask questions about tools from the guidebook, such as • Should we adopt this tool from the guidebook? • Are there tools in the guidebook that we can adapt to better meet our project needs? Improvements to CM-GC contract administration can occur by improving existing tools and adopting or adapting new tools. An agency should investigate all of these options during the tool assessment. Project Goal 2. Identify Appropriate Tools Based on Project Characteristics To effectively deliver CM-GC projects, the agency and CM-GC project team should select tools that fit the project characteristics. The tool descriptions in this guidebook include recom- mendations regarding the appropriateness of the tool for various project sizes and complexity levels. Some tools are widely applicable, whereas other tools may be most appropriate for a project of a certain size or complexity. For example, the tool that identifies roles and responsibilities—2 Roles and Responsibilities— is appropriate for all project sizes. However, the tool 4 External Stakeholder Coordination Plan is most applicable to project sizes of more than $10 million. The tool 14 Plan Standards is most appropriate for complex projects. But, the tool 15 In-Progress Design Workshops is most appropriate for moderate to complex projects. Typically, tools that are appropriate for small and noncomplex projects are appropriate for larger and complex projects. However, tools appropriate for large and complex projects may not make sense with regard to costs and benefits for small, noncomplex projects. Project Goal 3. Train Project Team Members When CM-GC goals, approaches, processes, benefits, and changes have been communicated to agency personnel, the agency project manager needs to introduce training programs to cover these topics. Project team members need to understand their specific roles and responsibilities for implementing tools for CM-GC contract administration. Project team members should be trained on the CM-GC contract administration tools they will be using and the details for their proper implementation. Training should extend to project managers, as well as to field and office staff. Training also should be provided to consultant staff representing the agency during contract administration as if they were part of the agency. Training may need to occur at various times during the life of a project as new individuals are onboarded or as weaknesses in tool implementation are observed. These weaknesses can include lack of tool use, incorrect tool use, or inconsistent tool use. Specific topics to include in the training to implement tools for CM-GC contract admin- istration are • Tool Purpose (Why is it used?), • Tool Function (What does it do?), • Tool Timeline (When is it implemented?), and • Tool Resources (Who is involved?).

40 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods The use of new tools for CM-GC contract administration is effective only if tools are imple- mented properly throughout the life of the project. Training is the foundation for proper and consistent implementation of tools for CM-GC contract administration. Project Goal 4. Test New Tools An agency should test new tools for CM-GC contract administration before incorporating them. New tools can be tested on a pilot project to help team members analyze and understand each tool better and to determine how the tool can be customized to fit the agency’s processes. For example, 6 Co-Location of Key Personnel may occur daily in a physical location for agen- cies with a high volume of CM-GC projects in urban areas where engineers and contractors are located. However, an agency with many CM-GC projects in rural areas may allow co-location to happen through regular Internet meetings supplemented with weekly face-to-face meetings. The agency can also test new tools in parallel with similar tools already in use. Such a side-by- side comparison of performance can facilitate the identification of strengths and weaknesses. Project Goal 5. Evaluate Tool Performance The agency project manager should evaluate project tool performance on a regular basis. Those evaluations should then be incorporated into the project team’s “lessons learned” sum- mary, typically at the end of the project. This step allows all team members to provide insight and perspectives on how the tools functioned and how they can be improved. This action ensures that the tools evolve if an agency’s project delivery needs change. Regular evaluation for continuous improvement can help the tools perform to their maximum potential. 9.4 Agency Construction Manager–General Contractor Contract Administration Training Training related to CM-GC delivery and tools for CM-GC contract administration can occur through formal training sessions, workshops, meetings, manuals, written materials, and informal interactions. CM-GC contract administration training will share knowledge with project personnel about roles and responsibilities, tool implementation, and documentation. Training should always distinguish CM-GC goals and processes from D-B-B, since D-B-B is the typical experience people will be bringing with them. Initial training will occur early in the project development. Additional training can be provided during later project phases as new team members join the project or as the need becomes apparent. Time and effort are required to develop a good training event. An agenda designed to address training goals should be developed, and handout materials and visual aids should be gathered to support the agenda objectives. Experts in CM-GC contracting should be involved in deliver- ing the training along with the agency CM-GC leaders and the CM-GC firm project manager. At the meeting or workshop, examples of cost models, open-book estimating, and cost–savings matrices can be presented and discussed. The iterative cost estimating process and price proposal negotiation process can also be reviewed. All project team members, as well as agency management involved in approvals, should be invited to the training. Upper-level support for the training should be visible. All participants should understand that the organization’s culture includes a long-term commitment to success- ful CM-GC contract administration. Agency CM-GC manuals can be used to train agency staff and others to provide a uniform understanding of how the agency intends to implement CM-GC projects. When CM-GC

Guidebook Implementation 41 delivery is new within an agency, the agency project manager of a CM-GC project may need to meet with individuals within functional groups to provide information on CM-GC roles, responsibilities, and processes. CM-GC training should become increasingly more targeted for CM-GC delivery and to fine-tune tools for CM-GC contract administration based on the specific context of each project. 9.5 Summary This chapter introduced the recommended approaches to integrating and implement- ing CM-GC concepts at both the organizational and project level. Establishing and achieving these implementation goals will assist in improving the agency’s execution of CM-GC projects. To consistently achieve project success, agencies are encouraged to integrate and implement the concepts found in this guidebook and provide training to agency personnel and project stakeholders.

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The transportation industry has a need for contract administration guidance.

The TRB National Cooperative Highway Research Program's NCHRP Research Report 939: Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods, Volume 2: Construction Manager–General Contractor Delivery provides a practitioner’s guide for construction administration on construction manager–general contractor (CM-GC) projects.

Vol. 1, on design-build delivery, and Vol. 3, a research overview, are also available.

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