Project Management View from Rail Transit Programs and Projects

This article complements the previous articles “What are good practices for Commissioning Acceptance and Maintenance Plan (CAMP)?” and Questions and Answers to CAMP – Part 1.  Here are Questions and Answers to CAMP – Part 2.

What are the CAMP deliverables?

Typical contract sections or project plans for CAMP deliverables are:

• Receipt of Final Testing and Acceptance Sign-Off Documentation:  This consists of a complementary series of project documents, which demonstrate quality and managerial oversight of the work.    Based on the scope, this may include factory acceptance test results, site acceptance test results, inspections at substantial completion, final inspection at completion of punchlist, record of special inspections, and closure of Permits by the issuing agency.   This documentation is produced by construction management consultants and Agencies with permitting jurisdiction.
• Certificate of Construction Completion: This is certification that all punchlist work is complete; start-up, training and burn-in is complete; and the overall Project Element is constructed as shown on the RFC design packages, shops drawings and material/product submittals.  Unless indicated otherwise, this Certificate is produced by the primary Construction Manager. 
• Certificate of Construction Compliance/Code Compliance:  This is certification that all work meets the contract technical and quality requirements, the Design Build Quality Program, and all stipulations in construction Permits.   This Certificate is produced the Engineer of Record. 
• Spare Parts:   This is found in the Division 2-16 Technical Specifications of the contract/purchase order.   The spare parts description and quantities will typically be itemized in the Buyer’s contract award price breakdown and in the Seller’s Detailed Contract Schedule/payment schedule.  
• Training, O&M Manuals:   This is found in the Division 1 Technical Specifications of the contract/purchase order.    While the Seller’s  system and equipment suppliers typically have standard services and deliverables for off-the-self components, the Buyer’s may have extraordinary requirements to meet the operation standards, procedures and processes of the company. 
• As-Built drawings:    This is found in the Division 1 Technical Specifications of the contract/purchase order.     This item may also be expressed and defined by the Buyer with other labels such as red-lined contract drawings and record drawings.   It is typically an updated version of the conformed contract drawings from the Seller, which includes all contract changes and modifications, and it indicates the actual installed locations of the constructed assets.
• Warranty:    This is found in the General Provisions, and it may be amplified in Division 2-16 Technical Specifications for large, high value technology systems and equipment.    By Contract, the Warranty starts at Buyer’s use/acceptance of the work, and it follows Final Inspection, and Punchlist activities.    Seller’s obligation  for warranty  is typically one year and as supplemented by manufacturer’s and Original Equipment Suppliers’ warranties, which may extend post-contract closeout for several years as described in the product data/specification reviewed during the Contract Submittal process. 
• Software and Software Licenses:    The requirements scope for computer supported products with hardware and software are usually found in the Technical Specifications in Division 10-16, including (10) Specialties, (11) Equipment, (13) Special Construction, (14) Conveying Systems, (15) Mechanical/Plumbing, and (16) Electrical.   However, depending on the contract format, requirements may also be separated into new Divisions including (21) Fire Suppression, (23) HVAC, (25) Integrated Automation, (26) Electrical, (27) Communications, and (28) Electronic/Safety/Security.  
• BIM/GIS Data and Asset Management Data:    This is found in the Division 1 Technical Specifications of the contract/purchase order.   While the data can be generated using the contract drawings, it is more accurate to complete after the As-Built drawings are submitted and accepted.  

Who is responsible for CAMP?

CAMP is a cross-functional process and it is correlated with various activities and the creation of various project records.  As established by the project in the Schedule Work Breakdown Structure, the CAMP process monitors work across several managerial silos.   In some Electronic Document Management Systems, the managerial silos or project phases include:

Design:   The development and refinement of project product requirements, and the creation of contract documents and performance metrics for the product meeting the Buyer’s criteria and business case results.

Construction:   The physical fabrication/manufacture of systems, brick & mortar assembly of a structure for the systems, and the integrated start-up and testing the entire product for Buyers acceptance.  

Quality:   The control and assurance on the product, processes and documentation meet the Buyer’s requirements for the project product, including design and construction submittals and deliverables and the content for CAMP.  

Commercial:   The management of project finances, contract payments and closeout, contract changes and of contractor performance to schedule milestones, which includes monitoring incentives for beating milestones and liquidated damages for missing milestones. 

What typical CAMP activities should be in the Detailed Contract Schedule?

A sample of the critical cross functional activities with responsibilities by Buyer/Seller are:

1. Seller initiates CAMP package and compiles project records
2. Seller and Buyer confirm readiness for substantial completion/operational use
3. Seller/Buyer conduct and document QC/QA inspection and testing, including Site  Acceptance Test (Predecessor = B)
4. Seller/Buyer conduct and document substantial completion inspection and punchlist (Predecessor = C)
5. Seller requests progress payment for 100% earned value and Buyer issues progress payment (Predecessor = D)
6. Seller submits CAMP package and notifies Buyer on readiness for final inspection (Predecessor = A, E)
7. Seller/Buyer conduct and document final inspection and completion of punchlist/work and burn-in (Predecessor = F)
8. Seller submits contract closeout documents and requests release of retainage withheld from previously approved progress payments (Predecessor = G)
9. Buyer confirms acceptance of CAMP package, including and all products and deliverables by contract requirements, and releases retainage to Seller  (Predecessor = F, G, H)

This article complements the previous article “What are good practices for Commissioning Acceptance and Maintenance Plan (CAMP)?”  Tailored to rail transit projects, this article follows with  Q&A on CAMP definitions, description of CAMP deliverables, integrated managerial functions supporting CAMP, and the general activities and sequence for CAMP.    Here are Questions and Answers to CAMP – Part 1.

When Does the CAMP Process Start?

CAMP starts with the design of the project and the creation of construction documents, and it continues through the closeout of the contract/project.   The process will consist of iterative development of a content a Matrix that lists the components that will form the constructed product as described in the project scope and objective.   The Matrix also lists the expected CAMP deliverables, such as Operation and Maintenance Manuals, Warranty, Training, As-Built Drawings, Spare Parts, Software, and GIS/Asset Management data.   Starting the work in the design will assure that at the time of the construction contract award, the Seller and Buyer have the same expectations for the CAMP deliverables.

What are the definitions for CAMP?

Commissioning:   This is the pre-requisite activities and deliverables for starting the CAMP package and deliverables for Acceptance, and it is the Buyer’s (Owner) process for verification of project/contract scope and the Seller’s (Contractor) compliance with requirements.    The activities typically include Factory Acceptance Testing (FAT), On-Site Acceptance Testing (SAT), In-progress Inspections, Start-Up and Burn-In.   Commissioning activities should be integrated into Project Control schedules and Quality Plans, which contain quality control test and inspection plans.

Acceptance:  This is a predecessor activity for contract closeout, and it refers to the Final Acceptance by the Buyer/Owner, which follows completion of Commissioning activities and  A) Final formal inspection of the Seller’s work.   B) Seller’s completion of punchlist work.   C) Buyer’s  confirming resolution of Submittals and Non-Conformance Reports (NCR).   D) Buyer’s receipt of Seller’s training, As-Built drawings, Spare parts, Warranty, Operation and Maintenance Manuals (Inspection and Maintenance).   E) BIM/GIS and Asset Management Data.   Contractually, Acceptance equates to Construction Completion, which its tied directly to commercial provisions, Final Payment and Warranty, and is a milestone for the Project Control schedule.  

Maintenance:   This is a post-contract closeout activity and it refers to Buyer’s readiness to conduct periodic inspections and maintain the Seller’s accepted work.  The Buyer’s readiness includes A) Allocating operating budget and assign management responsibility.  B) Purchase and inventory of special tools, consumable items and spare parts.  C) Assign new or reallocate operation/maintenance staff and resources.  D) Update company asset inventory and insurance. 

What are CAMP requirements?

The requirements for the items cited in the definitions above are typically embedded in the contract document.    Typical contract sections or project plans for CAMP technical requirements or inputs in rail transit are:

• FAT/SAT:   This is found in the Division 2-16 Technical Specifications of the contract/purchase order.    It is most applicable to major systems and equipment, including signal systems, HVAC, substations, signal power motor generators, communications and supervisory control systems and control centers.   The Seller is required to submit detailed test procedures, and the test results for review and approval by the Buyer. 
• Inspections:   This is implemented under the General Provisions and detailed in Technical Specifications of the contract/purchase order.   It is most applicable to work covered by government permitting and code compliance, and it is described in the Buyer’s construction  manager’s  (CM) monitoring plan and in the CM’s inspection and testing plan  for overseeing the Seller’s work.
• Start-Up/Burn-In:   This is found in the Division 2-16 Technical Specifications of the contract/purchase order.   It is most applicable to power systems such as substations and signal power motor generators.   The Burn-in periods can range from 30 – 90 days after initial start-up under full load.   For replacement projects, the completion of the Burn-In for the new infrastructure is a predecessor activity in the Seller’s Detailed Contract Schedule for demolition of the old systems.  
• Final Inspection:    This is found in the General Provisions of the contract/purchase order, usually under the Payment and Time/Contract Schedule Milestones.   Final inspection is typically an end-of-contract item.  However, Buyer and Seller may agree to incremental inspection, use and occupancy of portions of the work.   The Seller’s detailed contract schedule and the Inspection and Test  Plan will delineate the proposed sequence for completing portions of the work.  
• Punchlist:   This requirement follows Final Inspection and it is a predecessor for achieving Time/Contract Schedule Milestone for Substantial Completion (SC) in the General Provisions of the contract/purchase order.   SC means the work is useful to the Buyer ahead of the completion of work and milestones such as Construction Completion and Contract Completion.
• Resolution of Submittals and Non-Conformance Reports (NCRs):   This is part of the Buyer’s contract monitoring plan and the project quality plan.  These Plans assure that delivered and installed products reflect the current contract including all negotiated changes and contract modifications, and the completion of corrective actions on NCRs under the Seller’s Quality Management Plan.

Until recently, Commissioning, Acceptance and Maintenance Plan (CAMP) deliverables on major projects were delegated to the contractor for determining format, content, level of detail and the submittal date.   Typically, the compilation of the associated deliverables was part of final acceptance of contract products by the Buyer and achieving the performance milestone by Seller for contract completion.   At contract completion, the withheld retainage by the Buyer, which can be 5% deducted from all Seller’s progress payments through 100% earned contract value, becomes part of the contract closeout.   As a result, contractors typically leave the CAMP deliverables until the end of the contract.

Contract closeout means the Buyer’s Project Manager (PM) can close the remaining administrative office, package the files for storage, and be reassigned to other projects on a full-time basis.  For the Seller’s PM, it means all financial reimbursement obligations are complete and they can close files and financial bookings, and reassign any remaining staff to other contracts.

However, there are numerous Lessons on contracts from closeout experiences that reflect poor quality and incomplete CAMP deliverables.  The situation is compounded by the urgency of the Buyer’s PM to closeout the contract and of the Seller’s PM to collect all retainage due from the already approved payments.  At this time on the contract lifecycle, CAMP deliverables can easily become secondary, as both PM’s are usually focused on closeout and moving on to new projects or contracts.

In order to mitigate the risk of poor quality and incomplete CAMP deliverables on rail transit projects, a major United States (USA) commuter railroad updated its requirements for consultant design contracts and contractor construction contracts.  The scope of work for design contracts specify that a CAMP Matrix be developed and submitted with each level of deliverables.   The Division 1 Specifications for the construction contracts specify the CAMP as a deliverable with scope, product and execution requirements that include the CAMP Matrix – developed by the design consultant.  

The CAMP Matrix includes the major systems constructed, and for deliverables, such as Training, Operation and Maintenance Manuals, Spare Parts, Software, Software Licenses, Warranty, and As-built drawings, which are itemized in the Divisions 2-16 Specifications of the construction contract.   Some Mega projects also include deliverables for BIM/GIS, Asset Management and service contract agreements.   As the Matrix progresses from the design contract and into the construction contract, more detailed descriptions of the components /systems of the constructed product are incorporated.  This creates better understanding of the CAMP deliverables. 

Since implementing in the late 2000’s, the USA commuter railroad has collected Lessons Learned on CAMP requirements, which are used during the development of new projects and contracts.   Enhancing the contracts was proven to enable Buyer’s PMs to better manage the Seller’s PMs and realize higher quality and comprehensive CAMP deliverables that met the real expectations of the Owner’s operating departments.   

The CAMP Matrix makes it clearer to both PM’s on the scope of deliverables and it provides the foundation for expanding the use into alternate delivery contracts such as Design Build (DB).   Thanks to designing CAMP into the deliverables, the Seller for DBB contract has well defined requirements and deliverables scope for CAMP.  In DB contract, the Seller will develop the CAMP scope during the design phase and compile the source documents from construction contract submittals from the DB prime and all its subcontractors and vendors/suppliers.  

Due to the size of scope and contract values on mega projects, the planned intermediate use of contract products for operational use ahead of the contract completion/final acceptance milestone is a practical necessity.   In the current rail transit environment in USA, the project leadership commitments to funding partners, stakeholders, politicians and influencers create urgency to place products in-service for Ribbon Cutting ceremonies and press conferences.   As a result, Owner’s assume responsibility for maintenance well ahead on the scheduled contract or project completion.  This requires that the usual end-of-contract CAMP activities become incremental and intermediate, and the project team needs to adjust project management staffing by Buyers and Sellers to expedite CAMP deliverables.

Good Practices for CAMP

• Identify detailed CAMP roles, responsibilities, personnel interfaces and scope  interdependencies in Project Management Plans, Project Quality Plans, Contract Quality Plans, Construction Monitoring Plans, Integration Plans and Contract Management/Administration Plans
• Integrate the CAMP requirements, including processes/work flows and schedules, into the technical specifications of contracts and contractors’ subcontract agreements and purchase orders
• Insist CAMP activities and deliverables be defined in contract performance milestones and in the contractor’s Detailed Contract Schedule.
• Define and dedicate manpower for Points Of Contact (POC) and signature approval authorities from the Owner, Buyer’s PM and Seller’s PM
• Create performance monitoring metrics for reporting progress on CAMP deliverables to project management leadership and to Owners
• Provide comprehensive portfolio of samples that can be used as Models for all deliverables and other written documentation necessary for the lifecycle of CAMP.

Topics for Further Consideration at Closeout:

• Assigning a Value for Warranty - Payable after Warranty Period Ends:   The integration of formal and enforceable contract requirements for CAMP may necessitate a change in the contract performance milestones.   While impractical – based on current Owner/Contractor transactions, withholding a percentage of payments to cover the warranty period may be needed to assure equal priority by Buyer’s PM and Seller’s PM to the Owner’s requirements.  Equally, Owner’s need to dedicate a team to extend the management for warranty from the initiate incremental acceptance products up to one year after contract final acceptance or as otherwise defined in the contract, which is more typically construction completion.
• Defining the Owner’s Project/Operating Role and Resources for Commissioning:  CAMP is part of the Seller’s contract.  But the actual commissioning includes the Owner’s activities to take responsibility for the contract product and undertake project and operating budget reimbursed actions to ready the organization to assign manpower and budget accordingly.   The Commissioning may need to extend to the end of the contractor’s Warranty period.

TIP:   CAMP deliverables should be tailored to the Owner’s expectations and to SAMPLES of CAMP documents accepted to the Owner on previous contracts.

TIP:   CAMP deliverables should utilize as many of the documents reviewed during construction contract Submittals, which typically include detailed instructions for start-up, operation and maintenance as well as a list of recommended consumable parts, replacement spare parts, inspections, warranty and trouble shooting information. 

TIP:  Owner/Buyer should compile a set of SAMPLE documents – proven acceptable to Owner POCs, that can be used by Buyer/Seller PMs to create and distribute CAMP deliverables. 

TIP:   Buyer’s CAMP Manager should have access to information across various functional silos of the project management organization and data management system software, including design (CAMP development), construction (CAMP implementation and training records), quality (Product/system tests, inspections and various reports) and commercial (Contract changes, requests for acceptance, payment for spare parts, and requests for release of retainage). 

TIP:   Since final acceptance of products initiates the start of the Seller’s warranty period, Seller’s PM, Buyer PM’s and Owner should create a post contract completion team to monitor the warranty lifecycle, which may occur while construction is on-going and extend after contract completion is achieved.

TIP:   Since receipt of spare parts is in the CAMP scope, Buyer’s and Seller’s PMs need to establish a formal process and documentation to manage the transfer of spare parts to support the incremental final acceptance of contract products.  

TIP:   Typical projects start with a Kick-Off Meeting, the completion of CAMP including the warranty period one-year after contract final completion, should be finalized by a Closeout Meeting between the Owner, Buyer’s PM and Seller’s PM.   As may be required, Owner’s final evaluation of Seller’s performance should record and assessment for CAMP and Warranty.

TIP:    Mega projects always start with a ground breaking ceremony where top officials from the Owner, Buyer’s PM team, Seller, Funding Partners, politicians and other influencers are smiling and holding shovels.   The CAMP deliverables and the completion of warranty – one year after full contract completion should be equally ceremonial, such as a press conference with similes, hand-shakes and words of satisfaction between the Owner, Buyer’s PM and Seller’s PM.  As may be required, Owner’s final evaluation of Seller’s performance should record and assessment for CAMP and Warranty.

This article was started with a simple question and answer to a posted article on LinkedIn regarding Applying Project Management to Rail Transit Rolling Stock Projects -  https://www.linkedin.com/pulse/applying-project-management-rail-transit-rolling-stock-lamont-ward-1e/.   

Q21.    Great topic, but what about systems?

A21.    Rolling stock/vehicle project deliverables, as well as the corresponding fixed assets for their operation, are comprised a series of integrated systems.  Project management principles can be equally applied to systems in construction and product manufacturing.  Systems can cross the entire sphere of consumer and industrial project deliverables used world-wide, including air transport and auto transport.   The systems required for these deliverables include passenger/operator compartments, power, propulsion, safety, supervisory and control, suspension/vibration control/energy absorption, HVAC, communications, fire protection, energy conservation and security. 

The comment came from a person involved in a high speed rail project, and it raised the topic of design and construction of the fixed-right of way assets required to support the operation of rail transit rolling stock, including passenger cars and locomotives.  

The International Council of Systems Engineers (INCOSE.org) explains the differentiation between various system projects including those labeled as Large Infrastructure Project (LIP) with value > $1B (2012).    LIPs are executed by railroad employees as well as consultants and contractors with technical and managerial experience that may not be readily available from in-house design and construction groups.  

In the rail transit business, most LIPs consist of fixed asset systems that separated into functional business units.  While separate, each is required to make the system of systems work as-designed with maximum safety and security for customers, employees and communities encountering the business.   The main groups for rail transit physical assets are:

Track:     This consists of operation and maintenance (O&M) for running rail, track and switch ties, bumpers, derails, switches and track bed.

Structures:   This consists of O&M for bridges and abutments, elevated track and viaducts, culverts, drainage, retaining walls and walkway and roadway paving. 

Traction Power:   This consists of O&M for electrical power conversion systems supporting distribution and supervisory operation and control centers for supplying power to on-track passenger cars and locomotives and to other systems such as signal and communications.  This includes essential interfaces with utility companies and emergency power systems.

Signal:   This consists of O&M for right-of-way equipment, including signals, ASC cab signal, supervisory operation and control centers, and grade crossing gates, lights and bells.   This includes essential interfaces with communications and train movement control center systems. 

Communications:    This consists of business voice and data communications, public address, passenger information, CCTV, and connectivity for supervisory monitoring of security, life safety, security, fire protection and building management.  This includes essential interfaces with voice and data providers as well as internal signal, facilities, security monitoring, and control center systems.

Facilities:    This consists of O&M for all systems supporting office buildings, control centers, station buildings and platforms, employee headquarters, material storage and service shops.   The includes integration of HVAC; emergency generators; electric power distribution; fire protection and security system; office partitions, doors and furnishings; and cleaning, trash removal and recycling.   It also includes essential interfaces with state and local regulatory, law enforcement, emergency management and homeland security agencies. 

Control Centers:     This consists of complex computer systems that integrate monitoring and control of all systems needed for the operations of rolling stock, right-of-way assets and support facilities.  This includes integration with internal signal and communications systems as well as interfaces with state and local regulatory, law enforcement, emergency management and homeland security agencies.      

These rail transit systems, combined together, form the fixed assets to support the rolling stock assets of the transport business.  As a result, managing the integration of the systems is a critical factor for success.   The following Q&A are based on the contracting requirements for designing and building the systems.

Q1.   How does the contract integrate work by other systems?

A1.   Division 1 Specifications can define the Seller’s responsibilities for coordinating deliverables with adjacent contracted systems.   These specifications, which may include materials provided by the Buyer, will describe the work and deliverables on other contracts that will be integrated by the contractor during the execution of the contract.    This specification will define the work by the Buyer and the Buyer’s representatives including a Construction Manager (CM), Project /Management Consultant (PMC) and the Engineer of Record (EOR).

Q2.  Who takes the lead for the integration of the system?

A2.  The Buyer’s CM is the primary person-in-charge for managing the work on the assigned contract as well as the coordination with adjacent contracts, which may include contracts providing predecessor and successor deliverables for the system.   The CM will determine how the CM, PMC and EOR will participate throughout the contract, including the review of submittals, witness of deliverables testing and final acceptance of the system.  

Q3.   Does the Seller develop the testing program and verify compliance to requirements?

A3.   Yes.  Based on the Buyer’s technical specifications, the Seller is required to submit a comprehensive testing program with all test procedures, test forms and equipment, and the measurements that determine the metrics for acceptance.   The program will be followed throughout incremental as well as final acceptance of the system.      

Q4.    What is incremental testing?

A4.    The size and complexity of some systems contracts require the Buyer and Seller to establish an incremental testing and acceptance plan so the Seller’s demonstrate progress and the Buyer’s substantiate the delivery of assets that allow for payments to the Seller for achieving milestones and payments or for meeting defined progress payments.    While incremental testing demonstrates continuous progress, it does require a final and complete testing of the entire system, which confirms the interconnection and functionality of the individual components into a complete system. 

Q5.   If the system is not complete until all subsystems are installed and interconnected, how is progress maintained without waiting for final testing and acceptance?   

A5.   The Seller’s Commissioning, Acceptance and Maintenance Plan (CAMP) will include inspections and testing of subsystems as they are installed, energized and readied for final testing.    In order to maintain progress as well as payments, the program will perform as much as practical subsystem testing well ahead of the final system testing.  This will reduce the activities and the duration for final testing.   

Q6.  As noted in other Q&A, the execution of Systems contracts are closely resemble the design build method used for construction.   How does the Buyer manage the Sellers evolving designs after shop drawings are already reviewed on subsystems while designs for other subsystems in not yet started?

A6.    The Buyer’s contract requirements and the Seller’s approved management plan will be essential tools in progressing the work in an orderly and properly sequenced fashion.  The plan will include scheduling of submittals, the coordination and integration of the submittal review process scope-wide, and the correlation with successor and predecessor construction activities.

Q7.  Compared to project management, what are the primary elements in systems engineering?

A7.  Project management is built on the fundamentals of management principles and processes.   Project Management Institute (PMI.org) explains the knowledge areas for anaging integration, schedule, cost, quality, resources, communications, risk. procurement and stakeholder.   Systems engineering also is built on the fundamentals of engineering principles and processes.  INCOSE (INCOSE.org) explains systems engineering consists of risk management, requirements, human factors, software, project leadership, integration, verification and validation and hardware.  

The fundamentals common to both are risk management, integration, and the combined areas of human factors-project leadership and resources. 

Q8.   What companies are associated with INCOSE that appeal to rail transit?

A8.  INCOSE’s corporate advisory board includes companies that design and furnish a variety of fixed systems and moving systems.  In the rail transit domain these companies are easily recognized as industry leaders and suppliers - Bombardier, General Dynamics, General Electric, General Motors and Honeywell and Siemens.   

Q9.  I have heard that Systems work is all about the staging and sequence of construction.  Can you explain?

A9.   The Buyer’s Engineer of Record (EOR) designs the system and prepares the technical requirements in the contract documents for construction.   These requirements are based on transforming the existing field conditions into the final condition, which are reflected in the contract.   The EOR provides the Buyer/CM with technical review of the contractor’s submittals and deliverables. 

The Buyer’s Construction Manager (CM) prepares the performance and managerial requirements of the contract documents for construction.   These requirements are based on the criteria, procurement and construction execution, which are identified by the Buyer prior to the EOR completing the contract.   The CM manages to Seller’s compliance with technical and performance requirements in the contract.   

If the Buyer’s construction execution is planned for multiple stages of activating portions of system prior to final condition, the EOR will expand the contract documents to define the interim conditions, and the CM will ensure that contract contains the performance milestones and constraints to match the specific sequence and interim conditions for the work. 

What are your questions?