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 – Parts 1 and 2.  Here are Questions and Answers to CAMP – Part 3.   

Are the CAMP requirements different for design bid build (DBB) and design build (DB) project delivery?

No.    Since the CAMP process spans the design and construction phases of a project, the requirements are the same.   However, the execution of the CAMP process is different.  In DBB, there are separate contracts for Designer/Engineering of Record to create the construction contract, and for a Contractor to furnish/construct the product.   In DB, there is a single contract where the EOR and Contractor are part of the same team with the design and construction phases proceeding in parallel.   

If there is no CAMP in Div 1, where are the requirements found?

Commissioning, Acceptance and Maintenance Plan requirements may be spread throughout the general provisions and the technical specifications in the contract.   As a result, the Buyer and Seller will need to work together to extract and consolidate the activities and documentation into a cohesive set of deliverables.   In some cases, Buyers may label CAMP differently such as Integrated System Test Plan (ISTP) or System Test Plan, which may include Factory Acceptance Testing and Site Acceptance Testing.   

On a project, is CAMP one package at the end of the project?

There can be one CAMP Package if the project consists of a single construction contract and there is no incremental acceptance of construction by the Buyer for operational use ahead of the substantial completion or construction completion as defined in the performance.   Larger projects may include multiple contracts/subcontracts with scope that can be constructed and put into use independent of other contracts/subcontracts on the project.   As a result, multiple CAMP packages will be required for each contract or subcontract.   This may require the Project Management Plan incorporate a CAMP [Management] Plan  to management the processes and deliverables.  

What happens when the Buyer accepts the Sellers CAMP Package?

Based on typical contract requirements, the Buyer’s acceptance of the CAMP Package constitutes construction completion and the start of the Warranty period management by the Seller.   During this period, the Buyer is responsible for periodic inspection and maintenance of the product, including consumable items.  However failures and breakdowns of the constructed product is covered by the Sellers management of the established Warranty Plan.   This normally includes Sellers labor and materials to repair the product to operational use. 

What actions can the Buyer take to focus the Seller on completing punchlist work?

Creating an agreed upon punchlist is a co-predecessor to the contract milestone for  Substantial Completion (SC ) and for issuance of certificates for occupancy.   Finishing punchlist work is a predecessor to achieving the contract milestone for Construction Completion (CC).   In order to focus the Seller on completing all  work, the Buyer must carefully evaluate the Seller’s payment applications and assure the value of the remaining work is estimated and used by the Buyer to reduce the total earned value of verified work completed by the Seller.    Under the General Provisions of the standard contract form, the Buyer can  withhold the estimated value of remaining work from the invoice amount presented in the Seller’s payment application.     In some contracts, the Buyer can reduce the Seller’s payment application amount by 2 times the estimated cost of remaining work. 

Do you have any added Questions?

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.

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.   

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.