Project Management View from Rail Transit Programs and Projects

Achievable Goals and a Clear Mission and Vision

A financial commercial features an optometrist doing volunteer work saying over and over through various video clips – better, faster, cheaper regarding the manufacturer of eyewear frames.  While it highlights a business woman’s volunteer effort to bring eyewear to distressed communities on the continent of Africa, it can be misinterpreted as an acceptable means and method for leading a business to achieve the goals of a corporate leader. 

Saying better, faster and cheaper to employees at every interim point of progress is not the best method for achieving business success.    But for the commercial it works.   Unfortunately, today’s managers see this style as the foundational approach to managing a business and their employees.   

As a result, management professionals frequently use the acronym SMART to create a framework of target goals for employees to follow and be successful.  

• S = Specific.   This must include statements such as start, complete, launch, open or rollout on month/day/year.
• M = Measurable.   This must include weekly, monthly, quarterly data collection of corresponding metrics compared to planned schedule.
• A =  Attainable, Achievable.  This must include expectations that are based on industry capabilities, history on projects similar in scope and complexity, and proven means and methods
• R = Realistic, Reasonable.   This must include metrics that challenge the norm but also has sponsor backing to optimize or improve processes for project execution.
• T = Timely.  This must include aligning resources with S, M, A and R in adequate time to plan for execution under project conditions, including influences from government, economic, geographic and business plans.

The two most important Letters are A and R.   In order for the S, M and T to be meaningful, the environment for project success must be created by corporate leaders, including those that are accountable in a Project Management Office (PMO).  Leaders also need to think SMART in aligning the environment with employee goals.      

• S = Stewards [for service excellence.]    This must include management professional that understand project management principles and standards for success in the specific industry domain of the organization.
• M = Mature.   This must include hiring managers and supervisors that can train and coach employees for the task at hand as well as planning for succession of employees to increasing responsibilities in the PMO and organization.  
• A =  Articulate.   This must include effective, trustworthy, honest and timely communications sponsored by the organization and distributed throughout the PMO.  
• R = Respect [of the profession.]   This must include demonstrated commitment and presentation of examples by PMO and organization to stimulate repeat of good practices and to avoid poor practices.   
• T =  Trust.    This must include delegation of assignments to employees with accountability commensurate with responsibility, authority and decision making on projects.  

Reality A

SMART is a acronym and it is a concept that provides the first letter of attributes that can be defined for printed expectations for creating successful management in a PMO and throughout management in an organization.    Like any goal it will challenge the PMO status quo based on the best metrics from the previous set of goals.  

Reality B

A PMO is most frequently portrayed as support to projects, programs of projects and portfolio of projects.   Many PMOs focus on dashboards, heat charts, to-do-lists, integrated project schedules and project priorities.   But generating large amounts of data analytics in varied formats may create distractions for PMs, who already use established systems, techniques and tools for managing projects.  

PMO leadership is more than just providing excellent deliverables for measuring progress against planned metrics that show project status and aid in making decisions on projects.   A PMO is in the business of project management, and it is the knowledge resource creating project management success.   PMO is accountable for:

• Implementing strategies and guiding principles for project implementation
• Developing and improving processes and procedures
• Training personnel and  recruiting personnel
• Creating and optimizing an organizational structure and reporting hierarchy
• Providing the tools, systems and resources
• Creating an effective work environment.   

Access to Work Space

Getting painted into a corner may leave no way to finishing work without disturbing completed work.    While project/contract progress can be accelerated by working on multiple locations, the construction management team must ensure that the work is performed and integrated with other work and that the area is accessible for completing remaining work.

Construction management services work with contractors to develop means and methods for construction, establish supply chain and logistics for materials, monitor work in the sequence planned, and to implement work-arounds for unplanned field conditions.   In many rail transit projects, the work area is within an existing operational asset that is being replaced, upgraded or expanded.   These projects are normally constrained by fixed property lines with contract work zones that have trains running through the area. 

The core business of rail transit companies is transporting people and commodities from a current location to a new location.   This core business is a relied upon service and it is essential to regional and national commerce in countries throughout the world.  As a result, the execution of projects need to be organized and executed in a manner that maintains transporting services with little to no impact on commitments.   This includes work flow that allows access and assures constructability of work as progress changes the condition of the asset. 

On large project, there may be multiple contracts that share work zones or that overlap at critical points.   This increases the construction management effort for stimulating and maintaining contractors’ progress and for coordinating the logistics for:

• Realistic space, layout and segregation of secure staging areas
• Reliable access for movement of manpower, materials, tools and equipment
• Adequate temporary facilities for personnel, emergency services, fire protection and material storage
• Assignment of protective services to comply with government laws, regulations and codes.

Scheduling multiple contracts is possible using available software tools.  It can easily make adjustments to scheduled activities, manpower and equipment that can be used to manage contractor progress across a program of projects with interdependencies for predecessor and successor activities between contracts.  It can also manage milestone and schedule constraints.

Scheduling experts can increase work hours, increase manpower, accelerate material deliveries, and add construction equipment.  Unfortunately, scheduling tools can not create work space.   

Reality

Putting fifteen people in a telephone booth may increase the call minutes per square foot but it will drastically reduce the quality and effectiveness of telephone conversations and lead to rework as calls need to be redone due to background noise and mistakes from cross-talk. 

CM office is responsible to manage and coordinate contractors’ access to work areas and to manage the contractors’ creation and maintenance of safe and secure temporary facilities, material storage and staging, and of parking areas for employees, company vehicles and construction equipment.    

Manpower, Resources and Work Calendars

Forcing ten pounds of an item into a five pound bag can only achieve a negative result.   Despite the obvious visual consequence, project executives and project control experts often envision that increased project progress can be made by adding staff and adding work periods.  

Demanding the construction activity be shortened by adding more trade personnel and expending more manhours to achieve more daily progress is not unusual.  Construction scheduling tools can adjust the manpower, workday calendars and shifts to show acceleration of work with the goal to reduce the overall schedule duration.   However, these simple adjustments in the number of personnel on-site requires equal adjustments in material supply chain as well as equipment, tools, supervisory staff, construction management (CM) staff, and added processes for transitioning information at shift changes.

While effective for schedule recovery or for schedule acceleration, implementation will continue to be affected by work conditions, site access, and the work restrictions cited in the contract documents.    Additionally, the availability of support services, such as construction management (CM) and independent testing (ITA), for direct work will need to increase proportionately.   However, increasing persons in a work area may not necessarily create an equal improvement in the effectiveness, quality and speed of construction.  

On rail transit projects, adding resources and equipment is not always possible, and where it is possible, it is very challenging to achieve results that in theory should increase production and reduce activity duration.   In other words, doubling the personnel does not always result in doubling the production and halving the duration.   In addition to CM and ITA services, support services will need to increase proportionately for access and protection, track outages and on-rail vehicle escorts (pilots).    Where construction can be isolated from railroad operating areas, support services may be more readily out-sourced and may have a higher ratio of improvement for production and schedule. 

Services requiring rail transit personnel are also limited to the established headcount, crew sizes, crew vehicles, and tools, equipment and materials.   As dictated by annual budgets and labor contracts with unionized trades, railroad personnel are normally hired and organized into work groups for maintenance and operations, and construction.   Each group is assigned to specific geographic locations or project locations.   Due to several factors in managing company resources, personnel and assignments can shift between the two groups in order to maintain utilization while eliminating peaks and valleys for hiring and deferring personnel.  

When added personnel are required by projects, they likely are transferred from the maintenance and operations group.   The flexibility in making these transfers and the resulting increase in progress is limited by factors such as travel time from assigned location to the new location, and the familiarity of personnel with the project construction scope, work flows and processes, and construction equipment and materials.

Maintaining a steady state level of manpower is made more challenging by the unique training and qualifying periods for skilled trade persons in rail transit companies.   Due to the specialized skills need for operating and maintaining rails systems, companies create stringent screening processes for candidates including written and practical tests.   New hires start at an apprentice level and are on probation for at least six months.   Thereafter, employees continue in a training program for the specific skill hired and the established process defined in collective bargaining agreements to qualify personnel for full rate skilled trade positions.  

Timeframes to becoming qualified can vary depending on the unique skills required for executing duties in an environment that is focused on safety and customer service.  Signal maintainers = 3 years.   Lineman = 12 months.   Plumber = 6 months.  Carpenter = 6 months.   Electricians = 6 months.   During this period the incumbents are expected to demonstrate critical skills, teamwork, operation of tools and equipment, and safe work methods.  Failing to do so may mean separation from the company at worst, or extending the probation period for qualifying and for permanent assignments.

A short term alternative is to expand regular manpower shifts through overtime, which can increase daily progress while full time standard rate employees are identified or hired.  However, this alternative comes with its own challenges including:

• Increasing expenses for overtime labor rate
• Confirming vehicles and equipment are not already assigned to work groups on other shifts
• Off-setting shift production due to travel time
• Discounting progress due to personnel inexperience with project specifics

Reality

The actions taken by CM and contractor to adjust staffing to improve schedule performance is a function of the contract requirements, including provisions for time is of the essence, work hours, liquidated damages, and schedule incentives.  Depending on the contract, the CM will rely on the contractor determining the best actions to increase production and achieve performance milestones or to adhere to the planned curve of progress approved by CM at Notice to Proceed.

As may be requested by government officials or other influencers, Owner’s with the explicit goals to beat schedule dates will need to work with the CM to identify the cost impacts in exchange for improving the date contracted at the time of award, fast tracking or modifying the Owner’s standard procedures and process obstacles, and for coordinating interdependent activities and dates for predecessor and successor projects and contracts.      

Contract Submittal Process

You see it more and more, corporate leaders flex their authority and demand the work force do it faster, do it cheaper, do it better and do it right.   Despite the obvious opposing forces to achieve these goals, program and project managers are expected to execute and overcome obstacles to progress and project realization.   

Demanding construction contract submittals be processed in a 7 day review cycle can only achieve success if the contractor’s submittal quality, size and complexity are aligned with the Construction Manager’s (CM)  process work flow and the assigned reviewer resources.

For typical construction projects, the contract specifications follow Construction Specifications Institute (CSI).    The submittal general description, specific product requirements and the execution requirements are typically contained in the CSI-Division 1 specifications.   The product requirements include descriptions of items such as shop drawings, product data, as-built drawings, calculations, inspection and test reports, and material samples.  The execution requirements include the disposition of reviews, the review duration and timing with construction schedule, resubmittal requirements, and the overall process work flow.   The disposition of submittal reviews are normally A) Proceed.  B)  Proceed As Noted.   C)  Proceed As Noted – Revise and Resubmit.  D)  Do Not Proceed – Revise and Resubmit.

In many rail transit projects, contractors are typically requested to plan the submittal register and schedule for a 30 day period from receipt of submittals to return of comments to the contractor.   This period includes CM administration, review comments by Engineer of Record (EOR), and review and reconciliation of Owner comments.   The construction contract submittal process is managed with simple software tools, such as MSExcel, or more targeted contract management tools, such as SharePoint and UNIFER, that track submittals by specification, date to CM, date returned to contractor, and the disposition.  

To shorten the review cycle period, program and project executives as well as scheduling experts would insist that additional EOR staff be increased and that reviews be conducted by multiple reviewers. 

Assigning multiple reviewers to submittals to shorten the review period may work on paper. If multiple reviewers are assigned, then the process work follow will need to conduct an integration review and comment reconciliation before the submittal can be returned to the contractor.   But typically, it is more effective to assign a single person familiar with the requirements and the contract development.   A single reviewer will assure a systematic and integrated review of a submittal from start to finish. 

The Division 1 specification for submittals allows the CM and contractor much latitude and flexibility to create a process work flow to maximize the use of the contractor’s internal processes and documentation standards.   However, the processes and documentation standards can be vastly different between contracts and vary widely depending on the contract scope.   Additionally, system contracts, tunneling contracts, vehicle procurement contracts, vehicle storage yard contracts and substation contracts all are unique to their individual industries. 

The content and complexity of submittals and Requests for Information are also a function of contractor processes, new technology, specialized means and methods, and direction received at project meetings.   In order to improve the performance, a more prescriptive description of submittal packages tailored to shop drawings, product data, test procedures, and installation instructions will need to be developed to effectuate a 7 day review cycle:  

• Submittals:   Based on the approved Submittal Register/Schedule, documents submitted to the CM shall contain no more than 20 drawings or 50 sheets for product data, manuals, and calculations.   For composite submittal content, the total sheets shall not exceed 30 sheets. (For large submittals, the contractor/CM will need to establish multiple Submittals that allows a longer review period of consecutive 7 day periods.)
• Requests For Information:   Using the ESA standard form, an RFI shall be limited to one primary question and no more than 5 sheets of attachments. 

Managing a more prescriptive submittal process will require the CM and contractor to more intensely monitor staffing and CPS priorities to maintain aggressive progress.  Additionally, the CM and contractor will be needed to be nimble in making changes as the construction schedule is adjusted.   As a result, the standard submittal register/schedule may become more extensive as other attributes are added to the process work flow, including:

• Assigned reviewers
• Successor construction activity ID, description and start date
• Interdependencies with other submittals

Reality

Unless process reviews are diligently managed and controlled by CM within the approved Submittal Register/Schedule, the return of submittals will deviate from the contract guide of 30 days.   The risks on the construction schedule will be monitored and mitigated by the CM, contractor and EOR working closely together to prioritize critical submittals for review.   

Risk Allocations

Having a car insurance policy transfers cost liabilities for an accident from a driver to an insurance company.  But it does not eliminate all risk and responsibility for the driver to properly operate, control and maintain the vehicle, and to comply with traffic laws and regulations.

Having a medical insurance policy transfers cost liabilities from the insured to an insurance company.   But it does not eliminate all risk and responsibility for the insured individual to maintain personal health, practice healthy behaviors, protect from contagious diseases and to recognize potential problems from a family history.

When an Owner hires a Construction Manager (CM) , construction contractor or consulting Engineer Of Record (EOR), the liabilities for cost, schedule, scope and quality are shared.   While the risk allocation may change between participants, the Owner retains the risk and responsibility for assuring the product delivered is the product in the contract and in documentation for government funding grants or for commercial loan agreements.

Recently, a CM was surprised to learn that he was responsible for construction risk, and then indicated that something must be wrong because the risk should be with the contractor or the EOR.    Unfortunately, this thinking is a common belief of several CMs, and it could not be farther from the truth.

Ideally, the project plan includes a risk management plan, a risk register, and a risk reserve as part of the budget contingency.   Ultimately, the project and the Owner’s project leader always owns the risk and the risk is managed by an assigned project participant.   Mitigation and response strategies may transfer work scope, and associated risks, to another entity by creating consultant service contracts and contractor construction contracts.

Typically, a CM is contracted by the Owner’s project leader to provide services on the project.    In this case the project retains the risk associated with managing the performance and deliverables from construction contractor but responsibility and accountability is transferred to the CM.  As a result, the CM provides the management expertise and services for managing the contractor’s work in conformance with the construction contract and performance metrics in the CM’s service contract.   

Similarly, a construction contractor is contracted by the Owner’s project leader to provide supervision, labor, equipment, tools and materials to build, fabricate or manufacture a project deliverable.  All associated risks are retained by the project but the mitigation and response to cost and schedule impacts from risks are transferred to the contractor.   If a CM is managing the contractor, the risks may be shared to ensure that project deliverables conform to the construction contract.

Reality

Insurance policies only address a small portion of all the risk events with potential to impact project cost and contractors’ contractual obligations.

The majority of project risks must be managed by the CM in accordance with the Owner’s risk management policy and the project risk management plan.   CM manages and assesses performance for safety, quality, and means and methods of the construction contractor to meet the contract, and for integration with other project work.  Field changes and direction from the CM to contractor changes the allocation of risks.