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2011 Material Handling Industry. Copyright claimed as to
audiovisual works of seminar
sessions and sound recordings of seminar sessions. All rights
reserved.
Welcome to Session 228
Sponsored by:Presented by:
Stephen Donohoe, PMP Manager of
ConstructionTed Dalferes, P.E. Director,
Distribution Center Design
Tim Johnson Project Manager
The Benefits of EPCM Project Delivery
for Your Distribution Facility
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Agenda Speaker Introductions
Factors & Influencers Owners Control & Risk
Why Use an EPCM* Approach?
*Engineering, Procurement, Construction Management
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Factors & Influencers When to bring on CM or GC
Owner Requirements How much control Schedule objectives
Cost objective Quality objectives Safety, claims, etc.
objectives
Degree of Project Complexity
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Typical Owners Requirements Budget
On budget Min contingency remaining at completion
Schedule Meet commitments
Design Quality
Functionality
Construction No defects No claims No accidents
Coordination Minimize impact to operations
LOWEST
COST!
SHORTEST
SCHEDULE!
MAXIMIZE
CONTROL!
NO
CHANGES!
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Delivery Method Influencers Owners:
Budget & risk objectives guarantees?
Schedule objectives degree of urgency Desire for control design
& construction
Resources experienced & qualified PMs
Project complexity & design Procurement flexibility
Single project or multiple projects
New construction vs. renovation
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Balancing the Variables
Schedule Criticality
Owner Control
Risk ExposureLow High
Public Private
Min. Max.
Low High
Procurement Flexibility
Schedule Criticality
Owner Control
Risk Exposure
Procurement Flexibility
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Owners Control & Risk
HIGH
LOW
CONTROL
AND RISK
OWNER CONTROL
CM Agent CM Cost CMR CMR-GMP GC LumpMulti-Prime Plus Sum
CMR = w/ Negotiated GMP
CMR-GMP w/ Competit ive GMP
Where do you
want to be?
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Dont confuse project management
methods with project deliverymethodsthey are different!
Project ManagementMethods
In-house staff
Owners representative
Agency constructionmanager
Program manager
Project Delivery Methods
Design / bid / build (GCLump Sum)
CM at Risk withcompetitive GMP
CM at Risk with negotiated
GMP CM at Risk Cost Plus
CM Agent Multi-Prime
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Why an EPCM Approach? Provides a single point of contact,
accountability and
responsibility
Maximizes execution flexibility
Controls / saves cost
Improves safety
Reduces project schedule
Eliminates redundant project management / siteindirects
Focused change control
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Design-Bid-Build
CM-Based Delivery
CM Gives More Opportunity to Reduce Schedule
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Setting the Stage Construction costs are out of control
Escalation of materials & equipment isunprecedented
Project delivery time needs to be reduced
to meet customer needs Traditional construction delivery is
not
conducive for teamwork and controlling
cost
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Time is Money
SCHEMATIC
DESIGN
DEVELOPMENT
CONCEPT
PROJECT LIFE CYCLEPROJECT LIFE CYCLE
PROJECT
PROJE
CT
EXPENDITURES
EXPENDIT
URES
CONSTRUCTION
DOCUMENTS
BIDDING
CONSTRUCTION
CLOSE
OUTLEVEL
of
LEVEL
of
INFLUENCE
INFLUENCE
selection of
delivery method
cost
curve
influence
curve
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Clients Looking for Change
Control & ownership of budgets Designand Construct to
budget
Schedule-driven projects
Staffing resource challenged
Risk mitigation critical for project success
Lean execution for streamlined project
delivery
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Why EPCM cost reimbursable fixedfee open book approach?
CM GMP has bad track record for increased cost
Costs are rising faster than can be forecasted
Schedule does not allow for detailed GMP early
Clients looking for integrated team by 1 firm
single point of accountability / responsibility
Client only pays for actual cost of project
Client wants assurance and comfort in working
with contractor
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Selling EPCM Cost ReimbursableFixed Fee Open Book Integrated
Project Delivery
Requires selling outside the box
Requires passion for process
Requires courage to challenge norm
Requires discipline and strong project
controls similar to lump-sum Requires a firm like Jacobs
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Benefits of An EPCM Delivery Model
Integrated project delivery team
Project execution based on the end in mind commissioning and
turnover
High degree of cost visibility we are open
book Continually tracks & informs client of real time
costs
Allows escalating costs of steel, energy,shipping and labor to
be managed andminimized
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continued
Allows design to overlap construction
Procurement can be arranged to achieve thebest value for our
clients
Pre-purchase equipment detailed in final
design
Allows major subcontractors to provide inputto design to allow
for best value in the field
Rapid response to field issues keeps projecton schedule
Benefits of An EPCM Delivery Model(continued)
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Quality management plan maximizes efficiency
through administration, communication, qualitycontrol, schedule
control
Flexibility to divert or focus resources as needed for
the project
Established field procedures to hit the ground
running
Detailed early commissioning plans and schedules
with maximum involvement of client operations and
maintenance staff, as well as equipment vendors
Benefits of An EPCM Delivery Model(continued)
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2011 Material Handling Industry. Copyright claimed as to
audiovisual works of seminarsessions and sound recordings of
seminar sessions. All rights reserved.
For More Information:
Speaker: [email protected]
Speaker: [email protected]
Speaker: [email protected] Page: www.jacobs.com
Visit ProMat 2011 Booth 2678
