Project Management View from Rail Transit Programs and Projects

Unfortunately for more times than I can count, the term “turnover” [or "handover"] has become commonly used to describe a process for the Seller to transfer contract products to the Buyer.     Unless “turnover’ is defined in the Contract or clarified via Request For Information, the term is subject to arbitrary interpretation by Buyer and Seller.  

In Contracts that are part of my rail transit project experience, “turnover” is not defined but it may be analogous to requirements for Substantial Completion (SC) and to Final Completion (FC).  SC is the earliest date the Seller’s product meets its intended use by the Buyer.   FC is latest date for the Seller meeting all requirements for Buyer’s final acceptance of the Seller’s work.

Substantial Completion is a contractual milestone that consists Buyer acknowledging Seller completion of work minus punchlist (minor repairs and touch ups) and the completed work is suitable for intended use and operation by the Buyer.  Seller’s deliverables for SC includes Buyer’s review and acceptance of reports on all test and inspections, punchlist, closure of permits, issuance of certificate for occupancy/code compliance, completed submittals, and on resolution of Quality - Non Conformance Reports and Observations.  

Final Completion is a contract milestone that consists of Buyer acknowledging Seller completion of all construction and all technical and contractual deliverables.   Technical deliverables include Certificate of Construction Completion, Certificate of Construction Compliance, as-built drawings, O&M Manuals, warranty, training, software, spare parts, asset management.    Contractual deliverables include final change orders, final payment, waiver of liens, confirmation of all payments for vendors and subcontractors, and reports on certified payroll and other reports for use of disadvantages and small businesses. 

While not associated with “turnover”, Construction Completion is a contract milestone that consists of Buyer acknowledging Seller completion of the punchlist.  This also includes directing the Seller to submit its invoice request for final payment on the balance of the 100% EVM in the payment schedule previously approved by the Buyer. 

TIP:    Project participants need to use only terms that are clearly defined in the Contract, and diligently avoid creating ambiguity by introducing terms outside of the Contract.  

TIP:   Contract milestones dates, definitions and processes for Notice by Seller to Buyer on completing the work to meet the milestone are described in Provisions Related to Time.

TIP:   Contract payment definitions, deliverables and processes for Request by Seller to Buyer for payments are described in Provisions Related to Payments.  

TIP:   Requirements for technical deliverables are described in specifications that make up the technical portion of the Contract. 

TIP:   Requirements for deliverables content, format and timeframes for Seller’s submission and Buyer’s review are described in the Division 1 [general] specifications.  

TIP:   The Buyer’s Project Management Plan may be useful in establishing the activities, sequencing and timeframes for coordinating Seller’s delivery of spare parts and software.

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.