Guide for the Process of Managing Risk on Rapid Renewal Projects (2012) / Chapter Skim
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From page 144... ...
142 Appendix B consists of three sections. They are • Risk Checklist for Traditional Transportation Projects • Summary Risk Checklist for Rapid Renewal Projects • Rapid Renewal Risk Categories and Potential Risk Management Actions by Project Phase RISK CHECKLIST FOR TRADITIONAL TRANSPORTATION PROJECTS As shown, the items on this list do not form a formal risk register (i.e., this is not a comprehensive list of items for any particular project, and the listed items are not nonoverlapping by intention)
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From page 145... ...
143 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Uncertainty in "soft" costs and schedule (Other than identified through other items, and excluding additional costs that result from project delays, which are accumulated directly and additionally through simulation.) Fundamental question: Is the base estimate for each in terms of a percentage of construction cost?
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From page 146... ...
144 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Other delays to contract procurement process (e.g., bonding and insurance issues) ; • Owner approach to specifications (e.g., prescriptive versus performance based)
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From page 147... ...
145 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Other difficult or specialized construction issues; • Tie-ins with existing facilities, roadways, structures, or local access; • Failure prior to replacement (e.g., bridges) ; • Additional temporary erosion and sediment control costs; • Railroad conflicts (anticipated or unanticipated)
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From page 148... ...
146 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Access deviations (e.g., FHWA) ; • Additional aesthetics, context-sensitive solutions; • Allowances for miscellaneous items (known pay items not yet itemized in the estimate)
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From page 149... ...
147 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Other regulatory issues (e.g., environmental impact statement, National Environmental Policy Act)
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From page 150... ...
148 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Slope stability issues -- e.g., natural, manufactured (cuts, embankments) ; • Liquefaction design issues; • Uncertainty in seismic design criteria; • Uncertainty in ground improvement design (e.g., what type, how much is required)
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From page 151... ...
149 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Right-of-way/real estate • Global right-of-way problems (e.g., for widening, drainage, pipelines, detention, staging) ; • Additional right-of-way required (e.g., plans change; inaccurate early estimates)
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From page 152... ...
150 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS -- Stakeholder influences leading to additional scope (e.g., aesthetics, political pressure) ; -- Errors in design; -- Construction problems; and -- Regulatory changes.
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From page 153... ...
151 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Cost increase due to change orders (for various reasons, perhaps detailed separately; separate from uncertainty in contract price)
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From page 154... ...
152 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Poor market conditions make securing financing difficult. • Enabling legislation is not in place to allow alternative financing.
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From page 155... ...
153 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Owning agency is not staffed or structured for streamlined approvals. • Stakeholders are unable or unwilling to accommodate streamlined approvals.
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From page 156... ...
154 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Maintenance of traffic -- full or directional closures -- Planned closures and related detour routes are not allowed (political or management issue)
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From page 157... ...
155 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Procurement and contracting strategy • Litigation initiated by an interested party challenging the propriety of the alternative procurement process. • Public concern (and political pressure)
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From page 158... ...
156 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Potential risk management actions to address the various categories of risks and opportunities. The tables in this section therefore contain more background and detail on each risk category, including the corresponding rapid renewal strategy and example risks and risk management actions.
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From page 159... ...
157 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.1. PROJECT PHASE: PLANNING Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Conduct programmatic/portfolio planning Examples: • Long-range requirements, resources, and constraints • Short-range requirements, resources, and constraints Inaccurate planning assumptions and projections Examples: • Inaccurate traffic projections • Inaccurate population growth projections • Intermodal transportation plans not coordinated or inaccurate The following potential risk management actions could apply to a number of the risk categories in the column to the left.
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From page 160... ...
158 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Conduct early coordination -- external Examples: • Develop stakeholder awareness • Gather political support • Establish single-point communication • Brand the project • Conduct public outreach and seek additional investment Uncompleted or infeasible rapid renewal project erodes public trust Examples: • Funding for rapid renewal project not available as "sold" to the public • Rapid renewal project identified in planning as infeasible because of environmental constraints • Public opposition from small stakeholder groups successful in stopping project • Opposition from industry groups (e.g., trucking and freight stakeholder groups) Planning partners do not have resources to partner in advancing rapid renewal projects Example: • Metropolitan planning organizations do not have staff to advance rapid renewal project and still meet other commitments TABLE B.1.
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From page 161... ...
159 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.2. PROJECT PHASE: PROJECT SCOPING Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Conduct early and comprehensive scoping Examples: • Obtain stakeholder input early • Develop and confirm purpose and need early • Develop and test viable alternatives early • Balance scope, budget, and political goals of the project Project contains unrealistic scope considering budget and political landscape The following potential risk management actions could apply to a number of the risk categories in the column to the left.
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From page 162... ...
160 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use innovative project delivery, including: • Design–build • Design–build–finance–operate– maintain • Contingency Management (CM) at-risk • Public–private partnership (private equity or debt)
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From page 163... ...
161 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Delivery method not appropriate for the project (could lead to delay in contracting, change in delivery method, etc.) For example, caused by: • Method conflicts with owner goals • Project risk profile mismatched to delivery method • Stakeholders not aligned • Owner's goals changed • No enabling legislation In addition to the above: • Develop comprehensive process for project delivery selection and establishing project goals, with broad participation from interested agency departments • Integrate project delivery selection with risk registering process • Consider bringing key stakeholders into the training process and project delivery selection process Procurement protest preaward (could lead to delay in contracting, change in delivery method, etc.)
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From page 164... ...
162 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Dispute postaward (could lead to delays and price increases) For example, caused by: • Inadequate scope definition • Ambiguous specifications • Overly active involvement of the agency in contractor's means and methods In addition to the above: • Consider having a third-party peer review of technical scoping documents to assess completeness, accuracy, and whether they are overly prescriptive • Consider having a period of time immediately after award for contractor to assess project scope and determine whether there are any material problems with the request for proposal (RFP)
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From page 165... ...
163 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use innovative contract payment processes Examples: • Milestone construction-related payments • Availability of payments for public– private partnership projects • Incentives/disincentives • Warranty and operations and maintenance (O&M) payment The following potential risk management actions could apply to a number of the risk categories in the column to the left.
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From page 166... ...
164 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Seek alternative financing Examples: • Grant Anticipation Revenue Vehicle (GARVEE) bonds • Generate revenue through user fees (e.g., HOV/HOT lane tolling)
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From page 167... ...
165 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Poor market conditions make securing financing difficult (reduced and/or delayed funding) Examples: • Difficult market • Market collapses • Proceeding on the assumption that there will be sufficient market interest to provide proposals on a revenue-negative project • Miscalculating the amount of agency funds needed to make the project viable to the financing community See above Enabling legislation not in place to allow alternative financing In addition to the above: • Work with AG's office and state financing department to assess likelihood of passing such legislation • Consider lessons learned from jurisdictions where this has been used • Make early "go/no-go" decision on project viability without alternative financing Changes in legislation before financial close (e.g., tolling, competing facilities)
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From page 168... ...
166 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Other delay in funding process Examples: • Approvals for grant funding or public loans (reduced and/or delayed funding) • Process complexity leads to delays • Revenue projections not strong enough to support or get required funding See above Actual revenues significantly less than anticipated Examples: • Ability of concessionaire to live up to contract obligations • Bankruptcy of the concessionaire • For projects using availability payments, ability of agency to fund overruns • Impacts to O&M In addition to the above: • Realistically determine whether the commercial deal is good for both sides • Use contracts that allow the agency to take over the project in the event of financially distressed concessionaire • Ensure that concessionaire has strong financial balance sheet • Develop a policy for how to establish and use reserves Use alternative bonding or performance security Examples: • Letters of credit • Corporate guarantees The following potential risk management actions could apply to a number of the risk categories in the column to the left.
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From page 169... ...
167 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Surety market cannot support project's bond requirements Examples: • Contractual risks are too great • Duration of performance obligations are too long • Overall bond amounts are too great In addition to the above: • Perform outreach to the surety market on the overall agency program as well as project-specific terms and conditions • For projects in excess of $250 million, consider reducing bonding amounts • Evaluate legislative changes needed to have flexibility in bonding terms (including amount) • Use contracts that have reasonable risk allocation • Consider using a combination of bonds, letters of credit, and guarantees on larger projects Bonding capability of contractor(s)
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From page 170... ...
168 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.3. PROJECT PHASE: ENVIRONMENTAL PROCESS AND PERMITS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Accelerate the environmental documentation process Examples: • Leverage master planning (see Project Scoping)
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From page 171... ...
169 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Other delay to completion of environmental process related to attempted acceleration Example causes or issues: • Discipline studies take longer than planned in the accelerated schedule (e.g., gathering growing-season data) • Signatory agencies unable to accommodate accelerated process (e.g., consultation on biological assessment takes longer than planned, lack of staff to participate in accelerated process preapproval, indecisive agency)
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From page 172... ...
170 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Review and approval process takes longer than anticipated for other reasons Example causes or issues: • Receive larger number or more substantial comments (e.g., on draft document or to specific discipline reports) than anticipated See above Challenge to environmental documentation once determination has been issued Example causes or issues: • Challenge to determination by stakeholder or other third party, whether viable or frivolous • Identify potential future sources of challenges and monitor (or perhaps even engage them positively)
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From page 173... ...
171 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Pursue accelerated environmental permitting Examples: • Develop permit applications coincident with design • Learn requirements early • Form multiagency permitting teams (dispute resolution) • Provide staff to signatory agencies to expedite review Development of permit application takes longer than anticipated Example causes or issues: • Project's impacts are greater than originally assumed (because of design changes, originally underestimated impacts, etc.)
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From page 174... ...
172 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Unanticipated or additional permits required Example causes or issues: • Project's impacts are greater than originally assumed (because of design changes, originally underestimated impacts, etc.) • Permit conditions are different than anticipated (especially resulting from uncertainty in rapid renewal element permitting)
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From page 175... ...
173 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Streamline mitigation planning and implementation Examples: • Use wetland banks • Leverage/improve existing mitigation sites (on-site or off-site) , potentially including partnering with other agencies • Proactively implement mitigation for noise or view Streamlined mitigation effort will not work (management issue)
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From page 176... ...
174 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.4. PROJECT PHASE: GENERAL PRINCIPLES OF DESIGN AND CONSTRUCTION Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Accelerate the design process Examples: • Overlap design activities (make less sequential)
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From page 177... ...
175 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Stakeholders not able (or willing) to support accelerated design process Example causes or issues: • Not able to make internal decisions or provide input on accelerated schedule • Do not support current alternative • Early on, develop a contingency plan to respond to and overcome potential inability to support, or resistance to, the proposed design.
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From page 178... ...
176 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Delay in approval of design exceptions, or denial of design exceptions Example causes or issues: • Requested exceptions create too many adverse impacts • Requested exceptions not acceptable for other reasons (e.g., stakeholder concerns) • Early on, develop a contingency plan to accelerate approval of design exceptions.
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From page 179... ...
177 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Stakeholders unable or unwilling to accommodate streamlined approvals Example causes or issues: • Not able to review or make internal decisions/approvals on the streamlined schedule • Do not support submitted design • Early on, develop a contingency plan to mitigate problems with streamlined processing/approval. For example: -- Identify a quick-response team to address problems with the process -- If not already done, provide staffing support for approving stakeholders (and plan for it early so it is ready to go when needed)
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From page 180... ...
178 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Hold industry constructability reviews early Examples: • Engage nonbidding contractors to review and "war game" construction phasing plan • Seek contractor opinion (nonconflicted) on potential new rapid renewal construction techniques • Seek contractor opinion (nonconflicted)
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From page 181... ...
179 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.5. PROJECT PHASE: DESIGN AND CONSTRUCTION -- STRUCTURES Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use innovative and/or long-life designs Innovative and long-life designs not the right solution Example causes or issues: • Inadequate funding • Adequate funding but innovative and long-life designs are not the most cost-effective approach • Innovative designs too risky (e.g., no demonstrated performance history; uncertain constructability)
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From page 182... ...
180 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Reuse or rehabilitate existing components Examples: • Rehabilitate columns and piers • Rehabilitate bridge decks • Supplement existing foundations Rehabilitation not the best option (identified during design) Example causes or issues: • Replacement turns out to be more technically viable -- Improved compatibility with new structures -- Difficulty performing rehabilitation -- Rehabilitation does not provide desired performance • Replacement turns out to be more cost-effective (e.g., because of limited amount of rehabilitation required)
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From page 183... ...
181 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Delay in procuring prefabricated elements Example causes or issues: • Fabrication facility not available when needed • Problems with design (e.g., errors) or constructability discovered during fabrication process • Costs higher and/or benefits not as great as anticipated, so decision to use prefabricated elements is delayed • Early on, identify fabricators and evaluate potential availability of required items (i.e., conduct feasibility study)
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From page 184... ...
182 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Delay in procuring rapid replacement equipment and/or specialized labor Example causes or issues: • Specialized equipment or labor not available when needed • Costs higher and/or benefits not as great as anticipated, so decision to use the technique is delayed • Early on, identify sources of relevant equipment and labor, and evaluate potential availability (i.e., conduct feasibility study) • Have contractors guarantee availability and schedule of specialized equipment items in contract, or make provisions for schedule recovery (e.g., alternative equipment; alternative construction method)
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From page 185... ...
183 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.6. PROJECT PHASE: DESIGN AND CONSTRUCTION -- GEOTECHNICAL AND EARTHWORKS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use innovative and long-life designs Innovative and long-life designs not the right solution Example causes or issues: • Inadequate funding • Adequate funding but innovative and long-life designs not the most cost-effective approach • Innovative designs too risky (e.g., no demonstrated performance history; uncertain constructability)
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From page 186... ...
184 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Reuse or rehabilitate existing components Examples: • Supplement existing foundations (e.g., micropiles) • Stabilize existing foundations (e.g., with ground support)
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From page 187... ...
185 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Prefabricate key elements Candidate prefabrication technique will not work (technical issues identified during design) Example causes or issues: • Transportation of prefabricated elements difficult or not possible • Inadequate site access (e.g., cannot maneuver on-site)
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From page 188... ...
186 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use rapid-placement/construction techniques Examples: • Top-down excavation support • Innovative ground improvement • Rapid-embankment consolidation/ construction • Intelligent compaction equipment Candidate rapid-placement technique will not work (technical issues identified during design) Example causes or issues: • Inadequate access (e.g., cannot get specialized equipment into position)
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From page 189... ...
187 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.7. PROJECT PHASE: DESIGN AND CONSTRUCTION -- DRAINAGE AND STORMWATER MANAGEMENT Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use innovative and long-life designs Example: • Seek sustainable/natural solutions for treatment Innovative and/or long-life designs not the right solution Example causes or issues: • Innovative and long-life designs are not the most cost-effective or schedule-appropriate approach • Innovative designs too risky (e.g., no demonstrated performance history; uncertain constructability)
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From page 190... ...
188 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Reuse or rehabilitate existing components Examples: • Culverts • Tie into existing drainage system (outfalls, treatment) The following potential risk management actions could apply to a number of the risk categories in the column to the left: • Conduct early testing of existing components • Explore designs that involve modifications to existing components Rehabilitation not the best option (identified during design)
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From page 191... ...
189 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Prefabricate key elements Examples: • Replacement culverts • Inlet and outlet structures Candidate prefabrication technique will not work (technical issues identified during design) Example causes or issues: • Transportation of prefabricated elements difficult or not possible • Inadequate site access (e.g., cannot maneuver on-site)
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From page 192... ...
190 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.8. PROJECT PHASE: DESIGN AND CONSTRUCTION -- ROADWAY, GEOMETRICS, AND INTELLIGENT TRANSPORTATION SYSTEMS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use innovative and long-life designs Examples: • Consider alternative alignment/ geometrics • Provide alternative access Innovative designs require exemptions from FHWA or other agency Examples: • Alternative alignment does not meet current design standards • Innovative intelligent transportation systems (ITS)
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From page 193... ...
191 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Reuse or rehabilitate existing components Examples: • Fiber backbone • Communications equipment Testing of existing components is not reliable Examples: • Existing components cannot be accessed for testing • Adequate testing methods not available • Testing samples do not reflect the condition of the entire component Existing component will not be compatible with new design or construction method Examples: • Impossible to integrate existing component with new design • Existing component will be damaged during construction TABLE B.8. PROJECT PHASE: DESIGN AND CONSTRUCTION -- ROADWAY, GEOMETRICS, AND INTELLIGENT TRANSPORTATION SYSTEMS (continued)
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From page 194... ...
192 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.9. PROJECT PHASE: DESIGN AND CONSTRUCTION -- PAVEMENT Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use innovative and long-life designs Examples: • Conduct life-cycle analysis (e.g., asphalt versus concrete)
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From page 195... ...
193 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Reuse or rehabilitate existing components Example: • Rubblize/recycle existing pavement Rehabilitation not the best option (identified during design) Example causes or issues: • Replacement turns out to be more technically viable -- Improved compatibility with new or adjacent pavement sections -- Difficulty performing rehabilitation -- Rehabilitation does not provide desired performance • Replacement turns out to be more cost-effective (e.g., because of limited amount of rehabilitation required)
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From page 196... ...
194 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Prefabricate key elements Example: • Roadway panels (concrete, prestressed) Candidate prefabrication technique will not work (technical issues identified during design)
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From page 197... ...
195 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.10. PROJECT PHASE: DESIGN AND CONSTRUCTION -- MAINTENANCE OF TRAFFIC Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action The following potential risk management actions could apply to a number of the risk categories in the column to the left: • Use performance-based specs • Use contractor incentives at key coordination points within contract and between contracts in a phased situation • Reduce traffic demand during closures.
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From page 198... ...
196 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use innovative maintenance-oftraffic (MOT) strategies Examples: • Provide alternative modes • Provide alternative routes • Use creative closure strategies (incentive/disincentive; directional closures; total versus partial closures)
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From page 199... ...
197 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Test the MOT plan before construction Examples: • Simulate plan performance (e.g., using traffic models) • "War game" the MOT plan with constructors (e.g., on a tabletop project graphic, stepping through the construction staging/ sequencing)
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From page 200... ...
198 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.11. PROJECT PHASE: RIGHT-OF-WAY Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Accelerate right-of-way (ROW)
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From page 201... ...
199 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Accelerate ROW acquisition Examples: • Seek accelerated ROW funding • Conduct advance ROW acquisition; prioritize parcels for acquisition (get what is needed to start construction first) • Ensure adequate staffing • Seek willing sellers (e.g., better offers)
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From page 202... ...
200 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.12. PROJECT PHASE: UTILITIES Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Accelerate utility planning and agreements Examples: • Overlap utility planning with project design and environmental activities • Coordinate early and often with design team and utility companies • Carry multiple alternatives • Provide staff to support the utility's review/approval process • Develop common/shared utility crossings • Seek accelerated utility-plan approval process Late changes to the design cause delay in utility planning Example causes or issues: • Change in design late in process cascades to utility design changes (especially if utility planning and design are overlapped)
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From page 203... ...
201 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Accelerate utility relocation Examples: • Provide incentive for utility to relocate on time • Cost sharing • Relocate critical utilities first (so construction can be started) Utility encountered and/or damaged during construction (if owner's contractor performs the work)
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From page 204... ...
202 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.13. PROJECT PHASE: RAILROAD Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Accelerate railroad planning and agreements Examples: • Overlap railroad planning with project design and environmental activities • Coordinate early and often with design team and railroad representative • Carry multiple alternatives • Provide staff to support the railroad's review/approval process • Propose mitigation to speed agreements Late changes to the design cause delay in railroad planning Example causes or issues: • Change in design late in process cascades to railroad-related design changes (especially if railroad planning and design are overlapped)
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From page 205... ...
203 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Accelerate railroad-related construction Examples: • Provide incentive for railroad to provide longer or more frequent work windows • Cost sharing • Complete critical railroad-related construction first (so general construction can be started) Railroad facility damaged during construction (if owner's contractor performs the work)
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From page 206... ...
204 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.14. PROJECT PHASE: PROCUREMENT AND CONTRACTING STRATEGY Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use alternative procurement method Examples: • Cost-plus-time (A + B)
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From page 207... ...
205 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Litigation initiated by an interested party challenging the propriety of the alternative procurement process Example causes or issues: • Challenges to the ability of a state to select construction projects on something other than full, open competitive bidding • Challenges as to the reasonableness of the selection factors In addition to the above: • Create a team that develops a formal procurement and contracting plan that is reasonable, logical, and objective • Perform outreach to legislators who are concerned about alternative procurement practices • Ensure that the AG's office is cognizant of potential issues and prepared to act quickly to address any challenges Public concern (and political pressure) resulting from the use of procurement processes that heavily weight nonprice factors Example causes or issues: • Perceived conflict of interest when a designer–builder is first selected to perform preliminary engineering and then has sole-source negotiation rights for final design and construction • Perception that contracts awarded on qualifications basis are "sweetheart" contracts and the result of cronyism In addition to the above: • Perform outreach to the public to make the procurement process transparent and to explain the rationale and public benefit behind the procurement choice • Use independent outside consultants to evaluate pricing of the contracting teams • Use escrowed bid documents to obtain access to the documents • Use open-book negotiation process • Require contractor (designer– builder)
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From page 208... ...
206 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Limited competition arising from projects perceived as being created for large contractors In addition to the above: • Assess whether the project can be broken down into alternative contract packaging (see below) • Require proposers to submit a subcontracting plan that demonstrates how it will use small businesses and have this as a significant selection factor Other problems procuring contract Example causes or issues: • Bid protest • Unclear contract documents or language resulting in claims, whether credible or not, which could be a problem during contract procurement, during construction, or both • Contractor default (most likely during construction)
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207 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use delayed-start provision in contract Examples: • Purchase construction right-of-way (ROW) to allow for prefabrication of elements • Allow contractor to revise designs before beginning work to minimize traffic impact • Allow contractor to do off-line work that will not impede traffic Perception of delayed start will erode internal or external confidence in rapid renewal goals In addition to the above: • Educate stakeholders on need for delayed start • Align incentives and disincentives with start of mainline work rather than start of contract Mobilization costs are higher and at risk if contractor defaults In addition to the above: • Use best-value procurement to ensure that a solvent and experienced contractor is selected • Monitor work and payment closely TABLE B.14.
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208 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.15. PROJECT PHASE: OPERATIONS AND MAINTENANCE Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Consider private O&M contractor Required O&M effort greater than planned (either more frequently, more extensive, or both)
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