Project Planning

CONSTRUCTION CLAIMS and DISPUTES – (Part 5)

April 1, 2013 By George T McLaughlin PMP CCM

Pricing Construction Claims – (continued)

McLaughlin and McLaughlin’s Project Professional post is the fifth in a Subject Series Construction Claims and Disputes. This Subject Series contains discussions regarding potential and actual construction claims and disputes situations. In this series, we focus on the key aspects of construction claims and disputes management (rather than mechanics). This discussion is a continuation of Part 4 regarding the pricing of claims and disputes. The compulsion or question is – “How much is a potential claim worth?” In virtually all disputes, the central issue is the money. Since it is a win-lose situation, the outcome may be that someone (one party) will pay another party. Hence, the money is the ultimate issue (sometimes time is at issue, generally presenting itself in money or damages related to the time).

There is an old saying “win the battle, lose the war” which applies to damages in construction claims and disputes. With facts, logic and analyses on their side, one party (Party A) can prepare and present a very compelling argument regarding the claim (against Party B). However, winning the argument on the cause (or as it is called, entitlement) is relatively useless without winning the argument on the money related to the effect (or sometimes called damages, quantum, compensation, pricing).

Even more compelling, the decision to proceed with a claim (and potentially spend millions of dollars on expenses such as legal and expert fees) should be heavily driven by the potential recovery (the money). Consequently, parties must have a reasonable assessment of the true value of the dispute and the ability to successfully demonstrate or prove these damages in the resolution process. Without the ability to prevail on a suitable and acceptable level of damages, pursuing a construction claim through a costly dispute resolution process could be an unwise managerial decision.

McLaughlin and McLaughlin has extensive experience and expertise in the strategy and pricing of major construction claims and disputes. This experience includes work for both owners and contractors. Further, the experience includes testimony on this topic.

In this discussion, we are guided by another highly useful and well written book. This reference is Calculating Construction Damages, Second Edition, by William Schwartzkopf and John J. McNamara. [Read more…]

Filed Under: Claims, Featured, General, Projects Tagged With: construction claims damages, Construction Claims Management, Construction Claims Management Plan, Construction Claims Quantum, Construction Clams Pricing, Construction Contract Claims, Construction Project Management, EPC Project Management, George T. McLaughlin PMP, McLaughlin & McLaughlin, PMP, Project Management, Project Planning, www.mclaughlinandmclaughlin.com

CONSTRUCTION CLAIMS and DISPUTES – (Part 3)

March 4, 2013 By George T McLaughlin PMP CCM

Current Project Professionals Posts

McLaughlin & McLaughlin’s Project Professionals post is the third in a Subject Series. Construction Claims and Disputes which are (will be) discussions regarding managerial challenges in potential and actual construction claims situations. In this series, we focus on the managerial aspects of construction claims and disputes management. This summary discussion addresses the many posts that have been presented in the past and are at the Subject Series tab of Project Professionals.

In the engineering and construction industry, claims and disputes take many forms and focus on many topics. For simplicity of discussion, we will use the follow the following categories:

Scope of Work, Changed Work or Variations
Delay and Acceleration, Time-Related
Disruption / Productivity (usually labor/labour)
Terms and Conditions (and other subjects).

McLaughlin & McLaughlin’s Project Professionals has posted (or published) greater than 60 posts regarding one or more aspects of Construction Claims and Disputes.

The balance of this post identifies the Subject Series and posts that are at Project Professionals and are relevant to construction claims and disputes. [Read more…]

Filed Under: Claims, Featured, General, Projects Tagged With: Best Practice, Best Practices, Construction claims and disputes, Construction Claims Management, Construction Claims Management Plan, Construction Contract Claims, Construction Project Management, Delay, Disruption/productivity, EPC Project Management, Free Issue Equipment, Free Issue Materials, George T. McLaughlin PMP, McLaughlin & McLaughlin, Project Execution Plan, Project Execution Planning, Project Management, Project Planning, www.mclaughlinandmclaughlin.com

PROJECT PLANNING – (Part 5)

February 20, 2013 By George T McLaughlin PMP CCM

A Key Planning Resource

Industrial Megaprojects by Edward W. Merrow (Merrow, 2011)

This post is the fifth in a series of discussions regarding challenges in project planning and management situations. In this series, we focus heavily on program / project planning and management. This post addresses a major resource that can be highly useful in the planning and initial management of large and complex projects.

This resource is Industrial Megaprojects by Edward W. Merrow. The subtitle is Concepts, Strategies, and Practices for Success. This subtitle is particularly appropriate and compelling.

While the title is focused on “megaprojects,” the advice and guidance has value and merit in considering the planning and management of large and complex projects. Smaller projects may be better guided by previous Project Professionals discussions. Some of the key discussions are summarized in the previous post, PROJECT PLANNING (Part 4) Summary of Posts.

As presented on the dust cover of this fine book, “Mr. Merrow is the founder and CEO of Independent Project Analysis, Inc. (IPA), the world’s leading consulting firm evaluating billion-dollar megaprojects of national and international oil, chemical, pharmaceutical, and major mineral companies, and benchmarking their cost, schedules, safety, startup, and operational performance.”

While this lofty description can be both impressive and intimidating, the book has a wealth of information regarding project planning and initial execution. [Read more…]

Filed Under: Featured, General, Project Planning, Projects Tagged With: Construction claims and disputes, Contracting, Edward W. Merrow, EPC, George T. McLaughlin PMP, Industrial Megaprojects, McLaughlin & McLaughlin, Project Execution Plan, Project Execution Planning, Project Initiation, Project Management, Project Planning, www.mclaughlinandmclaughlin.com

PROJECT PLANNING (Part 4)

February 15, 2013 By George T McLaughlin PMP CCM

Summary of Posts

This summary update provides readers with an overview of prior posts regarding Project Planning and provides a baseline for future posts that will follow on a timely basis.

There are two applicable Subject Series. One Subject Series, PROJECT MANAGEMENT CHALLENGES was posted during June through September 2011. Since that time, blog readership has increased very significantly.

The other Subject Series, PROJECT PLANNING was started in late 2012. This Subject Series is ongoing and new posts will occur in the upcoming weeks and months. Readers are encouraged to subscribe to automatic update notification.

This summary is very brief and simply serves as an index for readers to follow. Of course, detailed descriptions are contained in the individual posts.

Ideally these Subject Series provide a starting point to investigate best practice on many planning and execution features of project management. [Read more…]

Filed Under: Claims, Featured, General, Productivity, Project Planning, Projects Tagged With: Best Practice, Best Practices, Construction Contract Planning and Scheduling, Earned Value Management, Forecasting, George T. McLaughlin PMP, GSA Construction Claims, McLaughlin & McLaughlin, Notice of Recognition, PMBOK, Productivity Management, Progress, Progress Assessment, Project Execution Plan, Project Execution Planning, Project Management Institute (PMI), Project Management Plan, Project Planning, Recognition, Schedule Specifications, Stakeholder Management, Stakeholders Management, www.mclaughlinandmclaughlin.com

CONSTRUCTION CLAIMS and DISPUTES – (Part 2)

February 6, 2013 By George T McLaughlin PMP CCM

Construction Claims Management Planning

This post is the second in a Subject Series Construction Claims and Disputes which are (will be) discussions regarding managerial challenges in potential and actual construction claims situations. In this series, we focus on the managerial aspects of construction claims and disputes management. This post addresses the planning, a key managerial requirement in all project work. First plan it, and then do (execute) the work. The notion is consistent with the old adage “An ounce of prevention [in this case management] is worth a pound of cure.” In that regard, litigation on a large and complex project can cost millions USD in expenses to pursue and may have tens of millions USD at issue.

Yes, construction claims and disputes can and should be managed. This is particularly true of large and complex projects.

Prospective Construction Claims Management refers to the managerial approach and planning for managing the risks (and options, opportunities, etc.) during project execution through project close-out related to claims.

Retrospective Construction Claims Management (development, presentation and defending) will be addressed in another post.

Claims Avoidance – There is a myth that construction claims can be avoided. Experience shows that this is just a myth, since it relies on controlling the activities of others. These others may be in an adversarial posture or position. Hence, control cannot be readily achieved. [Read more…]

Filed Under: Claims, Featured, Productivity, Projects Tagged With: Best Practice, Best Practices, Construction claims and disputes, Construction Claims Management, Construction Claims Management Plan, Construction Contract Claims, Construction Project Management, Delay, Disruption, EPC Project Management, Free Issue Equipment, Free Issue Materials, Free Issue Scaffolding, George T. McLaughlin PMP, GSA Construction Claims, McLaughlin & McLaughlin, Project Execution Planning, Project Management, Project Planning, Temporary Power, www.mclaughlinandmclaughlin.com

PROJECT PLANNING – Managerial Challenges (Part 3)

January 8, 2013 By George T McLaughlin PMP CCM

PROJECT PLANNING – Managerial Challenges(Part 3)

Project Initiation – Contractor

This post is the third in a series of discussions regarding managerial challenges in project management situations. In this series, we focus heavily on the managerial aspects of program / project planning and management. This post addresses the starting point or initiation of the project. Part 2 discussed Project Initiation in general. This post [Part 3] addresses considerations that are unique to contractors.

Owners often view contractors as a homogenous group or homogenous within the contractor’s own organization. This perception is not correct, at least for contractors of any size or diversity.

Why does the same contractor behave differently on one job relative to another? Why does a contractor bid differently relative to past practices or experiences? Why is the contractor’s price so high on this bid when it was so low on another bid? We expected the contractor to be competitive and they are not. Another scenario, we expected the contractor to not be competitive; but, they have the best proposal and bid. There are many potential reasons. The answer may reside in the project initiation process.

PROJECT PLANNING – Managerial Challenges (Part 2)

December 29, 2012 By George T McLaughlin PMP CCM

Project Initiation

This post is the second in a series of discussions regarding managerial challenges in current project management situations. In this series, we focus heavily on the managerial aspects of program / project management. This post addresses the starting point or initiation of the project. This is a crucial challenge.

In a recent consulting assignment, M&M encountered a highly respected client using a phrase that is something like “Building the right project in the right manner.” While this is paraphrased, the notion is clear. But, what could they mean “Building the right project…?” Why would an organization devote time and investment money to building the wrong project? The answer typically resides in the Project Initiation process. Inadequate attention and alignment regarding such items as the project objectives and scope of work [also known as the Project Scope Statement] can lead to a misguided start (and sadly sometimes, finish) of the wrong project. Project Initiation is the essential foundation.

PROJECT PLANNING – Managerial Considerations (Part 1)

December 20, 2012 By George T McLaughlin PMP CCM

Introduction

After a long period [since March 2012] of inactivity, McLaughlin and McLaughlin is pleased to resume posting activity in this blog. Project Professionals is intended to offer advice and tips regarding various aspects of Program and Project Management. For a statement of blog Objectives and Goals, please follow this link.

During this inactive period, M&M has been performing two time-consuming assignments. One is program management support work on large Canadian oil sands investment/expansion program. The second is a construction claim on an international power plant project.

In considering the general topic of project planning, consider the following question. Why do so many projects experience serious negative issues, if not failure, when project planning has been pursued? Often the answer is that the plans are defective or ignored. Alignment, implementation and updating are essential features. Good quality plans must be developed and implemented. Often, this is not the case.

[Continued] [Read more…]

Filed Under: Claims, Featured, General, Projects, Uncategorized Tagged With: Best Practices, Chartered Institute of Building (CIOB), Doctor Harold Kerzner, Earned Value Management, McLaughlin & McLaughlin, PMBOK, Preliminary Project Scope Statement, Project Charter, Project Execution Plan, Project Execution Planning, Project Initiation, Project Management Institute (PMI), Project Planning, Project Sponsor, US Army Corps of Engineers (USACE), www.mclaughlinandmclaughlin.com

PROJECT PROFESSIONALS POSTING RESUMPTION

December 16, 2012 By George T McLaughlin PMP CCM

McLaughlin and McLaughlin [M&M] is pleased to announce that they will resume postings at their blog, Project Professionals. Since March 2012, M&M has been heavily involved with several large assignments [Canadian Oilsands program management support and construction claim regarding an international power plant project]. Now that workload permits, new blog postings will be offered.

M&M wishes to remind followers (new and ongoing) that there are many offerings at the Project Professional site. They are organized by what we call Subject Series.

These Subject Series are:

Managing Risk of Delay [15 posts]
Contract Notice and Recognition [4 posts]
Productivity [18 posts]
Schedule Validation and Audits [3 posts]
Staffing Your Project Management Team [8 posts]
Project Management Challenges [11 posts]
Time Management – Schedule Specification Implementation [6 posts]
Ways of Working [1 post]

M&M will resume new posts with a Subject Series titled Success through Project Planning. This Subject Series will focus on methodologies, process, sequencing, synchronization and other managerial considerations.

We hope that you will find these existing and new posts informative and relevant.

May we wish you the best of luck and let us all attempt to confront and deal with Project Management Challenges. It is crucial that recognition and anticipation of these issues occur during initiation and planning. However, the recognition and management should continue through execution, controlling and closeout.

Please note that McLaughlin and McLaughlin [M&M] is not a law firm and is not intending to provide legal advice. M&M is a consulting firm providing (among other services) non-legal expertise in dispute resolution and litigation support. The Resource Center is for the convenience of blog visitors and M&M does not offer this for commercial purposes. For further information on M&M services, please see www.McLaughlinandMcLaughlin.com.

Filed Under: Featured, General, Productivity, Projects Tagged With: Best Practice, Construction Contract Claims, Construction Contract Planning and Scheduling, Earned Value Management, Forecasting, George T. McLaughlin PMP, McLaughlin & McLaughlin, Notice of Recognition, PMBOK, Productivity Management, Progress, Progress Assessment, Project Execution Plan, Project Execution Planning, Project Initiation, Project Management Institute (PMI), Project Planning, Recognition, Schedule Specifications, Stakeholders, Stakeholders Management

PROJECT MANAGEMENT CHALLENGES– Subject Series Summary

March 21, 2012 By George T McLaughlin PMP CCM

Having recently addressed the AACE International Western Winter Workshop, I am heading for Canada on a new consulting engagement. Likely, we will have some additional posts and details at a later time. The press of business has reduced our recent posting activity. Given this trend and the large number of new visitors to this blog, we will repost some of the Subject Series Summaries.

This McLaughlin & McLaughlin‘s Project Professionals summary update provides readers with an overview of prior posts and provides a baseline for future posts that will follow on a timely basis. This Subject Series, PROJECT MANAGEMENT CHALLENGES was posted during June through September 2011. Since that time, blog readership has increased significantly.

This summary is very brief and simply serves as an index for readers to follow. More robust summaries are provided in the June summary. Of course, detailed descriptions are contained in the individual posts.

Ideally this Subject Series provides a starting point to investigate best practice on many planning and execution features of project management.

Introduction (Part 1) – This post is the first in a series of discussions regarding challenges being encountered in current project management. This post introduces the topic and sets the framework for ongoing posts on individual challenges. This series is intended to draw upon many sources within the project management discipline or profession.

Project Initiation (Part 2) – This post addresses the starting point or initiation of the project. This is a crucial challenge. The initiation process (getting started formally) requires two processes and deliverables/outputs (see PMBOK^®and Kerzner). Both processes are discussed.

Project Initiation Lessons Learned (Part 3) – This post addresses the starting point or initiation of the project. The study of lessons learned creates relevance and importance in (sometimes) abstract concepts. It answers queries regarding the practical side of the issue. There is a famous quote out there that talks about those that refuse to study history. It is suggested that you avoid reliving the mistakes experienced by others.

Project Planning Process (Part 4) – This post addresses the project planning process. This is a crucial challenge and the importance of this process cannot be overstated. A logical and often asked question is along the lines of “Why plan?” as it can be complicated, time-consuming and aggravating. There are several key benefits to planning. These benefits are discussed.

Project Management Plan (Part 5) – This post addresses the Project Management Plan [also known as Project Execution Plan, Project Plan and other titles]. The Project Management Plan can consist of several pages of information and direction or a bookshelf full of many volumes of documents. These many volumes can have a hierarchical structure. PMBOK^®provides guidance regarding this deliverable/work product. The Project Management Plan is also known as Project Execution Plan, Project Plan, and other similar titles.

Project Planning Issues (Part 6) – Planning the project properly, documenting the plan professionally and then implementing the plan successfully are likely the source of most project success and failure outcomes. While project planning is one of the most fundamental skill sets in project management, the requisite processes and actions are not well developed or successfully implemented.

Project Planning Lessons Learned (Part 7) – Learning from the experiences of others is an effective method for skill set development. Many organizations that use project management on an ongoing basis close out projects with a compilation of “lessons learned.” These firms have found value in studying the issues that have emerged in the past.

Project Planning Lessons Learned STAKEHOLDER MANAGEMENT (Part 8) – This post continues the focus on issues in planning and problems that have their source or root cause in planning. The subject is Stakeholder Management. The use of team and stakeholder workshops can be an effective mechanism for aligning, selling and implementing the Project Management Plan. Obtain an audience with all stakeholders. Start with the Project Sponsor. Sell the Project Management Plan in detail.

Project Planning Lessons Learned RESOURCE REQUIREMENTS (Part 9) – This post continues the focus on issues in planning and problems that have their source or root cause in planning. The subject is Resource Requirements. In this regard, the post will focus on human resources or staffing. [Read more…]

Filed Under: Claims, Featured, General, Projects Tagged With: AACE International, Best Practice, Construction Contract Claims, Construction Contract Planning and Scheduling, Forecasting, George T. McLaughlin PMP, McLaughlin & McLaughlin, Notice of Recognition, PMBOK, Progress, Progress Assessment, Project Execution Plan, Project Execution Planning, Project Initiation, Project Management Institute (PMI), Project Planning, Recognition, Schedule Specification, Stakeholders, Stakeholders Management, www.mclaughlinandmclaughlin.com

Search this Site