What is a Punchlist?
| A punchlist is most common in the construction industry. But it may be an overused term on prime contracts between Buyers and Sellers - when a simple To-Do-List might be more appropriate description for a tool construction managers (CM) use to monitor contractor progress toward achieving contract milestones. Punchlist is not normally part of the definitions in the construction contract Form. As a result, Punchlist means different things to Sellers and Buyers. Definition From various sources of expertise, punchlist is described as:
Punchlist is interdependent with the progress of work by the Seller and the milestones specified by the Buyer in the Contract. The milestones are typically contained in the General Conditions/Provisions (GCs) of a contract document. Punchlist creation is associated with substantial completion and punchlist completion is associated with construction completion. Work Flow Punchlist work flow:
Most US standard contract Forms, cite the requirements for substantial completion and construction completion in the General Conditions/Provisions regarding section related to Performance Schedule and Payments. Punchlist Content The content of a punchlist should contain only minor touch-ups and repairs to installed/constructed work that is described by specific in-scope observations and the locations to be corrected for completion. A punchlist that contains base scope items not yet installed or tested and operational is not acceptable and not suitable for meeting the completion milestone. Items observed that are not in-scope will be deleted from the punchlist and be addressed by the Buyer through other project processes for changes to work. In addition to contract milestones and payments, an acceptable punchlist that the Buyer determines meets the substantial completion requirements is often tied to incentives and liquidated damages. Meeting substantial completion is also related to other contract requirements. Punchlist Interfaces Interfaces with other contract requirements in the work flow include: Item 4-After substantial completion, Seller and Buyer can initiate reconciliation of incentives and liquidated damages. Buyer can suspend consideration of all potential changes, instruct Seller to demobilize and to perform site restoration by the final completion/contract completion milestone, request Seller to submit deliverables such as O&M Manuals, As-Built Drawings Package and Warranties, and if applicable, release performance bonds. Item 5-After construction completion, Seller and Buyer can initiate the contract closeout. Item 7-After demobilization, Seller can reduce insurance coverage. TIP: A punchlist should only be submitted once by Seller and reviewed by Buyer for completeness an accuracy. Thereafter, it is locked down. No items can be addressed. Items can only be verified as completed and closed. TIP: All items on the punchlist should be addressed and closed by the Sellers within a period that avoids the risk of further damage or new conditions that requires corrective action. TIP: For Buyer’s, including their construction managers, that require in-progress punchlists to assess the contractor’s physical work relative to the construction substantial completion milestone, a more granular definition of punchlist may be needed. Here are some proposed definitions that can provide guidance to Buyer and Seller as the punchlist changes with the progress of construction.
TIP: An observation listed on the punchlist should identify the inspecting agency/inspector name and date, cite the specific location (s) and the drawing/specification/code, and describe the needed correction to meet with the contract requirements, approved shop drawings or other industry standards for the type of work. TIP: The punchlist observations should be actionable and the description begin with words such as repair, replace, adjust, touch-up, polish, remove, rebalance and clean. Items with words such as install, test, paint, fill, energize, backfill and connect may indicate that base scope is not yet completed. |
Know the Contract - Part 14, Contract Completion/Closeout
| This is the 14th in a series of discussions that is intended to prompt Project Teams to be aware of the entire contract document, including Information For Bidders (IFB), General Provisions/General Conditions/Terms and Conditions (GCs) and the Technical Requirements [Specifications and Drawings.] Part 14 of Know the Contract is Contract Completion/Closeout. Closeout is the successor to all other work performed under the Contract and it is final set of activities between the Buyer and Seller. While the requirements for Closeout may be scattered throughout the Contract document, the most important are described in the GC’s sections related to Schedule and Payments. At this phase of the Contract, the Buyer’s Contracting Officer is the primary arbiter for determining that all requirements are met by the Seller and confirmed by the Buyer’s Project Manager. Part 6-Schedule Performance and Part 7-Progress & Milestone Payments of this series describe the content in the typical contract Form. Satisfying these requirements precede completing the Closeout process and documentation, and includes substantiating completion of testing and start-up; training; delivering spare parts; submitting operation & maintenance manuals, software, as-built drawings, asset management data and warranty; and closure of all quality management processes and deliverables. Regardless of the contracting method, such as Design-Bid-Build, Design Build and CM At Risk, the Closeout of the contract is governed by the GCs as well as any Special Conditions and terms negotiated for contract award. The typical activities and topics include:
During the Closeout phase, the Buyer may develop Lessons Learned from the Seller’s performance on the Contract. The Lessons Learned will be utilized by the Buyer to consider changes in requirements as well as management processes and documentation on future Contracts. Some of the topics from Lessons Learned may include:
TIP: The responsible parties for Closeout are the Buyer’s Project Manager with support from the Buyer’s Contracting Officer and the Seller’s Project Manager with support from the Seller’s prime contracting/procurement official. TIP: While risking duplication of requirements, create a separate Division 1 specification covering the requirements and deliverables checklist for contract closeout. TIP: Most US contract Forms were written based on paper transactions throughout the Contract cycle. Due to awareness of threats outside normal contract and project processes, security of products, deliverables and documentation is now part of controlling access to sensitive contract records. As a result, EDMS has replaced paper documents and is used more effectively to segregate, store and restrict distribution of documents that contain sensitive information. TIP: The use of electronic document control system (EDMS) has become a critical part of managing and executing the work at a project and contract level. As a result, there may be a need to create requirements for content, format, compatibility and the transfer method of the Seller’s EDMS with the Buyer’s hardware, software and the organizational management of records. TIP: Ensure Closeout requirements and terminology are well defined and are consistent with the process and requirements in the GCs. Clarity of terms is essential for both the Buyer and Seller. TIP: Buyer’s Contracting Officer should provide clear guidance to the Buyer’s Project Manager on the process, timeline and documentation required to satisfy the contract closeout. |
Applying Project Management to System Projects - What Are Your Questions?
| 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?
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Part 3 of 3 - Applying Project Management to Rail Transit Rolling Stock Projects
| This article is collaboration between Lamont Ward, Senior Electrical Engineer at National Railroad Passenger Corporation (Amtrak), and Henry Hattenrath, Senior Technical Consultant – Parsons Transportation Group. It was started with a simple question and answer to a posted article on Converting the Design-Bid-Build Contract Model for Design Build Delivery in the rail transit domain – see https://www.linkedin.com/pulse/converting-design-bid-build-contract-model-design-build-hattenrath/. Or https://www.projectmanagement.com/blog-post/47557/Converting-the-Design-Bid-Build-Contract-Model-for-Design-Build-Delivery This part continues to highlight the differences in project characteristics between construction and rail transit rolling stock purchases. The characteristics are relative to a project management view as opposed to presenting the program Model showing the processes and life-cycle for development and production of rail transit vehicles. Q15. Does the Seller provide an operator cab mock-up for training by simulator? A15. Yes - If required by contract scope. Most rolling stock Buyers have detailed curriculum for training and qualifying train operating engineers and train crews on the operation of the rolling stock, including passenger cars and locomotives. For Buyers operating in North America, the regulatory agency-Federal Railroad Administration requires comprehensive training for employees. Without an operating cab simulator, the training period can be lengthy until the employees learn the equipment operations and the performance characteristics of the rolling stock along the railroad right-of-way. A cab simulator allows employees to be trained faster than the historic approach to ride the rails along each branch of the system network under supervision of a qualified employee. Q16. In managing the contract, are there unique inputs the Buyer needs to coordinate with the Seller? A16. Since the Seller is completing the detailed design for the rolling stock, there are performance requirements that will be discussed and amplified to assure the Buyer’s expectations are satisfied. In addition to tracking all Buyer inputs to Seller, the Buyer should provide the Seller with as much information on the existing operations and how the contract deliverables will be integrated as production deliveries commence. The information may include: A) Braking performance of existing equipment and signal blocks in the wayside signal system. B) Clearances and shop equipment locations in inspection and maintenance facilities and storage yards. C) Planned vehicle arrangement used for customer exiting/loading at platforms for station stops. D) Drawings/samples of existing ADA bridge plates and amenities. E) Operator and vehicle data on handling performance on existing vehicles to train schedule. F) List of heavy shop equipment used to service and maintain exiting vehicles and to support on-board component changeouts. Q17. How are costs of spare parts managed as part of the contract negotiations? A17. Spare part requirements are normally defined by the Buyer in the contract. During the contract acquisition, the Buyer and Seller will establish the anticipated spare part quantities and costs to maintain the fleet over a defined period of time. However, Buyer’s requirements may be limited in the spare parts that can be purchased as part of a contract with government funding or by Buyer’s internal funding requirements that may define a minimum value to qualify material as a spare part. Whether in the base contract or by a separate maintenance contract, the Buyer will need an inventory of major components for performing running repair within the capacity of equipment and throughput of the shop facilities. Some of the components that will need to be inventoried include: tracks, wheel sets, traction motors, air compressors, batteries, AC/DC convertors, air condition evaporators, and air conditioning condensers. Q18. If a particular part is found unreliable and the railroad finds an alternative source how does the railroad recoup any losses for the poor performance of the part from the manufacture? A18. The Buyer’s contract will define the metrics for monitoring and measuring the reliability of equipment during the initial testing of initial train sets as well as the testing and operation of production sets. Systems and components with failures that fall outside the baseline requirements, such as Mean Time Between Failures or Mean Miles Between Failures, are subject to corrective action and potential re-design and replacement by the Seller. Based on the severity of the failures on performance, the Seller may be obligated to perform a re-call for implementing change-out of the system/components on the entire fleet of vehicles. The contract will identify the percentage of failures on in-service rolling stock, and the specific processes and remedies the Seller will follow throughout contract period and any Options for extended periods for performance monitoring and warranty. Q19. How are reliability metrics determined and negotiated? A19. The reliability metrics are developed by the Buyer based on the known range of performance data from manufacturers and equipment suppliers, and the Buyer’s internal Subject Matter Experts (SME) and/or the Buyer’s contracted Engineer of Record (EOR). The SME and EOR will prepare the drawings and specifications, which define the technical requirements in the contract documents. The reliability metrics serve as the basis for evaluating the Sellers’ offerings pre-award and for verifying compliance with requirements post award. Q20. If the vehicle manufacturer has a particular vendor in mind for a system, but the railroad wants to use a vendor of their choosing, how is this worked out between the two parties? A20. If the Buyer has known vendors with proven records, the requirements in the contract should identify the vendors that have demonstrated the ability to qualitatively meet the technical specifications. The specifications do not need to identify detailed product information, but they do need to update quality requirement in the technical specifications to include the vendors used by the Buyer such as Vendor A, Vendor B or Buyer’s approved equal. If the Seller uses other vendors with products equal in quality and with proven performance in the industry, the “or equal” provides a mechanism for persuading the Buyer to accept or decline the Seller’s vendor. If declined after the contract is awarded and underway, the Buyer will need to provide objective reasons for not finding the vendor is equal. 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. |
Part 2 of 3 - Applying Project Management to Rail Transit Rolling Stock Projects
| This article is collaboration between Lamont Ward, Senior Electrical Engineer at National Railroad Passenger Corporation (Amtrak), and Henry Hattenrath, Senior Technical Consultant – Parsons Transportation Group. It was started with a simple question and answer to a posted article on Converting the Design-Bid-Build Contract Model for Design Build Delivery in the rail transit domain – see https://www.linkedin.com/pulse/converting-design-bid-build-contract-model-design-build-hattenrath/. Or https://www.projectmanagement.com/blog-post/47557/Converting-the-Design-Bid-Build-Contract-Model-for-Design-Build-Delivery This part continues to highlight the differences in project characteristics between construction and rail transit rolling stock purchases. The characteristics are relative to a project management view as opposed to presenting the program Model showing the processes and life-cycle for development and production of rail transit vehicles. Q7. How is the warranty period managed over the extended delivery period? A7. Buyer’s warranty requirements are typically effective at the time the Seller’s product is placed into operation after substantial completion is achieved. The warranty period is 12 months and it can cover labor and material for implementing action to restore as-designed vehicle operation. Rolling stock contracts become more complicated because each vehicle becomes a product with individual milestones and attributes for delivery, testing, acceptance and the start and end of warranty. This becomes more complicated if the product is updated during production to incorporate Buyer/Owner Initiated changes or product updates initiated by the Seller. Q8. Are the Operation and Maintenance Manuals different for vehicle purchase contracts? A8. Buyer’s Operation and Maintenance (O&M) Manuals for construction contracts are usually a compilation of products from various vendors and subcontractors providing products and system that make up the constructed asset. For rolling stock contracts, the Manuals are more similar to the Manuals published and supplied with production automobiles. The Manuals are integrated and edited for use by a wide and diverse range of Buyers and users. The O&M Manuals are also on integral part of the training documentation and program of course for training operating engineers, train crews, and the maintenance and repair staff. Q9. Performance of building systems is more familiar to Buyer’s than for vehicles. What is a unique performance attribute for rolling stock? A9. Mean Time/Miles Between Failures is a unique industry proven metric for describing the quality of rail cars and locomotives offered to Buyers. Sellers are required to provide this historical data for vehicles supplied to other Buyers. Sellers and Buyers use this data to measure performance on prototype vehicles and on production vehicles to as-designed specifications and to identify potential items that may need to be re-designed. It also extends into the warranty period where upgrades are often incorporated for in-service modifications. Q10. Most construction projects have requirements for training and operation and maintenance manuals. How are the requirements handled on rolling stock contract? A10. Buyer’s training requirements can be extensive and go beyond the most common for initial operation. The training scope may be individual train curriculums for Engineers, Train Crew, Car Inspectors, and Running Repair/Maintenance Mechanics. The training materials are coordinated assure that the O&M Manuals and the training are closely integrated to maximize effectiveness. Q11. How different are the training requirements from those on construction projects? A11. Buyer’s training requirements can be extensive and go beyond the most common for initial operation. The training scope may be individual train curriculums for Engineers, Train Crew, Car Inspectors, and Running Repair/Maintenance Mechanics. The training materials are coordinated to assure that the O&M Manuals and the training are closely integrated to maximize effectiveness. Q12. What type of testing is performed on the prototypes? A12. Burn in-period for first production train set of vehicles is used to verify compliance with performance criteria including operator and passenger comfort attributes such as compartment temperature and forces under acceleration, braking and traveling over switches and interlockings. Instrumentation and simulated passenger loading may be used on the train set during a specified total quantity of miles, such as 1,000 miles. Q13. I have heard Buyers indicate that system contracts are similar to rolling stock contracts but different from construction contracts. Can you explain this statement further? A13. Most construction contracts contain drawings and specifications that provide prescriptive requirements based on Buyer’s criteria, including selected materials, coverings, furnishings and colors, and proven, commercially available products, and means and methods anticipated by the Buyer’s engineer and approved/endorsed by the Buyer. During execution, there is little flexibility to vary from the drawings and specifications In rolling stock contracts, the specifications and drawings provide the performance, functionality and features the Buyer expects from the Seller. Much like the automotive industry, the Seller will design and manufacturer the rolling stock to meet the Buyer’s requirements by modifying its proven and available materials, equipment, and subassemblies to build an integrated product meeting the Buyer’s requirements. While these contracts are typically lump sum, they are executed by Sellers more as design-build. This approach results in frequent interactions by the Seller with the Buyer to formalize the customizable features of the rolling stock and to meet the expectation of both the Buyer and the Buyer’s customers. Q14. What kind of staffing is required by the Buyer to manage and execute the rolling stock contract? A14. Regardless of the total number of rolling stock in scope, the basic team for the Buyer will include: Project Manager, Document Coordinator, Quality Manager, Project Controller, Contract Manager, Equipment Engineer, Master Mechanic-Operation/Maintenance, Transportation Manager, ROW-Signal Engineer, Training Manager, Commissioning/Warranty Manager, and Consulting Engineer. The basic team for the Seller will include: Project Manager, Contract Manager, Design Lead, Materials Manager, Reliability Manager, Production Manager, Quality Manager, Testing Manager, and Warranty Coordinator. For projects with government funding, the team may include: Oversight Consultant and Independent Engineering Consultant. |
