Construction Claims Due Diligence
PROJECT MANAGEMENT
MTB's approach to project management is based on our philosophy that the owner should receive the minimum facility required, without sacrificing safety, quality, production or the environment, in the shortest possible time and at the lowest possible cost. This requires detailed development of project scope, work breakdown structure, budget, and schedule, as well as the design and implementation of effective project control and performance reporting systems. MTB aggressively manages engineering, architecture, and other design elements and coordinates the bid and procurement processes for required services, equipment, and materials. Throughout this phase, we continue to look for, and solve, potential problems before they impact project performance.
In the development and implementation of any project, the owner's organization has to contract with and successfully manage a wide range of consultants, service providers, and equipment and material vendors. These providers are specialists in their particular areas and – as with any business enterprise – operate with their own best interests paramount. For professional contractors and vendors, that "best interest" should include providing the owner with the best performance and quality at the best price; however, an owner not experienced with a particular specialty may not have the background to evaluate that performance or the resources to effectively manage it. You may not be assured that your best interests are being served. In owner representation, MTB uses its expertise in and familiarity with the myriad of design, engineering, construction, and project management disciplines to ensure that you get your money's worth from contractors and vendors. To that end, we:
- Prequalify, bid, and recommend contractors and vendors who will provide the best service;
- Negotiate the most cost-effective contract and purchase order terms;
- Enforce the highest standards on design, construction, and other contracted work;
- Insist on full accountability and detailed reporting from contractors and vendors; and
- Aggressively manage all contractors and vendors to meet schedule and control costs.
Design Management and Oversight
The design and engineering phase of a project is extremely important in terms of project scope definition, scope control, value engineering, and cost control. The engineer or architect must complete a design that accurately and completely defines the client's needs, and it must also meet any production, process, statutory, or code design requirements. The engineer or architect must do so while monitoring, controlling, forecasting, and reporting the costs for its own services. Obtaining an optimum engineering product in accordance with project schedule requirements, while tracking and limiting the engineer's/architect's costs, is not easily done for the following reasons:
- The client's (owner or developer) needs are often not well defined;
- The engineer/architect often requires a substantial amount of information, which is in the client's domain, to complete its work;
- The client is often busy with its other business responsibilities; it takes a lot of client involvement to obtain an optimum design product at the best cost and schedule;
- A client often does not have staff who are experienced with reviewing all aspects of design and managing the efforts of engineers or architects;
- Many engineers or architects are not effective at monitoring and controlling their own costs;
- Engineers/architects often are not good about submitting alternative solutions or analyzing more cost-effective options.
In providing design management/oversight services, MTB:
- Helps the client define its requirements at a level of detail and in a time frame that will support efficient performance by the engineer/architect;
- Acts as a liaison between the client's organization and the design team for disseminating design documents for review, collecting comments and design inputs from various departments within the client's organization, and coordinating design review sessions;
- Reviews all design products to ensure they meet the design objectives in the most cost-effective manner;
- Tightly monitors and controls the engineer's/architect's performance against the budget for its services;
- Provides timely reviews, approvals, and direction on behalf of the client to keep the design effort on schedule and within budget;
- Closely monitors work in progress and the direction of future work to ensure the project design and engineering remains focused per defined project requirements; and
- Frequently reports progress and problems to the client.
Performance Reporting
Owners need to stay well informed about the progress of their projects, particularly the status of schedule, cost, and any problems that may arise. An effective system of performance reporting is critical to an owner's ability to evaluate the progress of a project. In establishing and implementing a performance reporting system, MTB:
- Determines reporting criteria and formats;
- Compiles, produces, and distributes detailed progress reports;
- Compiles, produces, and distributes detailed cost reports;
- Analyzes, produces, and distributes schedule updates; and
- Identifies project concerns and management action being taken.
Procurement & Logistics Management
The success of any project relies on receiving the required equipment and materials on time and at the lowest possible cost. MTB's procurement and logistics management starts with ensuring that design activities specify the right materials, helps you find the most cost-effective providers, and then aggressively manages those providers to get equipment and materials to the construction site on time.
Procurement and logistics management includes:
- Establishing material and equipment lists and procurement schedules;
- Prequalifying, bidding, and recommending suppliers;
- Negotiating the most favorable cost, schedule, and payment terms for material and equipment;
- Expediting material and equipment fabrication and delivery, including performing facility inspections where required; and
- Managing transportation, including international freight forwarding.
Project Control System Development
Project controls means controlling the scope, schedule, cost, and allocation of resources throughout your project. In project controls system development, MTB focuses on three primary tools that form the basis for controlling your project: The project master schedule, the project budget, and the work breakdown structure. MTB uses the latest project controls, scheduling, and budgeting computer software to enhance analysis and expedite reporting.
- The project master schedule integrates project activities for all the entities performing work, supplying materials, preparing and approving design documents and permits, and supporting project progress. The master schedule reports progress and forecasts activity completion. It is the primary tool to identify problems and initiate prompt corrective actions.
- The project control system establishes the project budget and monitors cost performance against that budget. Expenditures, commitments, physical percents complete, and forecast costs at completion are reported in the cost reports, and corrective actions are recommended for adverse variances.
- The work breakdown structure (WBS) identifies the project scope in a hierarchy that allows detail to be "rolled up" to more summary levels. Preparing a WBS ensures a disciplined approach to detailing the scope. Reporting by WBS element allows for progress and cost review by specific scope items at appropriate levels of detail. The WBS is a useful tool for integrating cost and schedule.
Value Engineering & Constructability Review
Multidisciplinary value engineering reviews play an important role to ensure that a project is properly scoped and that all possible cost- and schedule-saving ideas are adequately investigated. Value engineering is the systematic evaluation of a project design to obtain the highest value for every dollar of cost.
Value engineering includes:
- Project value engineering plan development and management;
- Detailed scoping, schedule and budget review;
- Detailed review of construction plans and specifications;
- Execution plan development and review; and
- Review of value engineering proposals.
Community & Government Relations
Most projects require some coordination with local, state, federal, or international government bodies during development and execution. Knowing the requirements and maintaining positive relations with the appropriate officials can keep your project from being unnecessarily delayed. Depending on location, type of project, and other factors, project success may also involve coordination and maintaining good relations with various community groups, as well as an awareness and understanding of the activities and missions of nongovernmental organizations and other groups that can affect the project. More and more, projects require proactive community participation and government relations programs to be successful. MTB can help you with community and government relations by:
- Researching and preparing situation analyses and recommending courses of action;
- Establishing and maintaining key governmental and community contacts;
- Developing and implementing public participation/information programs;
- Interpreting technical data for lay audiences and creating effective communication tools;
- Providing professional presentations for public meetings or governmental committees;
- Assisting with media relations; and
- Enhancing public trust through personal contacts and dependable information.