By

Bob Prieto
Senior Vice President
Fluor Corporation

The lessons learned that follow are based on experience in the infrastructure, buildings, government, power and industrial sectors on "mega-projects". "Mega-projects" are those projects which are complex in nature (technically, logistically, politically, etc.) and have total installed costs in excess of $1,000,000,000.

This is the third part in a series of such lessons learned. This part addresses lessons learned in:

• Technical
• Continuous Improvement
• Procurement
• Labor

The first two parts of this series addressed lessons learned with respect to:

• Project Management Plan
• Finance Plan
• Safety
• Schedule
• Cost Estimating
• Cost, Schedule, and Status Reporting
• Cost Containment
• Project Personnel

These lessons learned are not intended to be comprehensive in nature but rather represent a compilation of such lessons that the author has, through his various professional and industry experiences, identified as important to the success of "mega-projects". Many represent nothing more than the fundamentals of good project management, but because scaling effects are non-linear, they take on special importance on "mega-projects".

The lessons that are described apply across a full spectrum of delivery and contracting approaches.

Part 3

Technical

• evaluate the technical capacity and capability for all performing teams
• additionally, identify strengths, weakness, threats and validate that the needed resources or reinforcements are in place
• get the end users involvement from the beginning
• start as-built drawing from the beginning... the value of accurate as-built drawings are only appreciated after construction is finished
• configuration management provides a valuable tool in the construction process as well as the post construction period
• establish a comprehensive configuration management process
• design changes during construction need to be validated in a manner similar to the original design
• status supplier and fabricator progress weekly for materials from busy vendors or markets under general market pressure
• steel fabrication
• current steel market and large local mega-projects may increase risk of structural steel arriving at site late
• structural steel fabricators may subcontract out steel releases and not advise of schedule slippages in a timely manner
• status each structural steel release as stated in purchase order whether release subcontracted or not
• Chinese steel delivery risk is not readily quantifiable
• cement
• typical 20% of US supply from foreign suppliers is under pressure as a result of growth in China
• delivery risk linked to shortage of cargo ships and rail backlogs; cost risk from spikes in freight rates
• mega-projects need to consider onsite batch plants with sufficient cement storage to handle supply disruptions
• maritime sites should evaluate floating batch plants that can be sold at end of project
• include provision in budget for first article inspections and shop monitoring of critical supply items
• Establish at the beginning of the project an expediting and tracking resource or team
• emphasize need for accurate dates for MEP vendor data to facilitate coordination and construction sequencing
• limit number or packages and addendum to efficiently maintain drawing status and interface coordination
• follow-up on coordination correspondence or meetings with suppliers and subcontractors to ensure necessary level of coordination has occurred
• establish a comprehensive document control program
• waterproofing systems for underground construction need to be considered on a life-cycle basis
• benefits accrue during construction from reduced water infiltration
• finished space is drier
• robust corporate knowledge management systems can provide high value on large scale, long duration projects
• access by project team must be assured
• encourage proven new technology
• draw upon worldwide experience and international lessons learned
• latest safety and security technology
• establish a Technical Advisory Committee (TAC) supported by Working Groups
• senior staff of owner to "sign off" on all design development
• supported by staff representatives in integrated Working Groups
• detailed and thoroughly documented TAC papers produced and accepted by all TAC members
• avoid unnecessary design iterations
• establish a Concept of Operations
• early definition of how the finished product or system will work and be implemented by the O&M users
• early involvement of end-users, designers, and constructability experts
• gets O&M staff to think "out of the box" and buy-in to  new technology
• enables implementation of international ideas and innovations
• avoids unnecessary design iterations
• involves end-users in all phases of project
• facilitates acceptance during testing and commissioning

Continuous Improvement

• lessons learned as an agenda item on all project meetings and recorded in meeting minutes, captured in project database and appropriately disseminated
• leverage continuous improvement by facilitating team member participation
• establish a creative and innovative project environment
• implement outreach programs for "better idea"
• act on those key improvement that will make the biggest difference

Procurement

• get supplier involvement and input as early as possible
• construct a comprehensive supplier performance evaluation program
• establish a comprehensive expediting program
• construct an comprehensive integrated contract packaging and procurement plan and schedule
• purchase orders for equipment and materials must include itemized bills of materials in addition to specifications and drawings to avoid rush ordering of missing parts/items
• shop inspection of major mechanical equipment fabricated outside the US should include checks for "handedness" and fitting sizes as well as insuring that any required filters have been provided and pre-installed if so required
• vendor interfaces must be carefully managed for complex mechanical systems in constrained areas
• ensure completeness of rebar bending schedules prepared by rebar supplier
• common site services provide logistical advantages on constrained sites
• post award debriefings provide a pre-contract process to further ensure good project initiation and communication
• procurement strategy should provide for flexibility in financial and commercial approach
• example: agency CM capable of executing portions of work as GC if project requires
• alternative dispute resolution mechanisms provide execution stability... if they are fair
• clear understanding of "who owns what risk"
• high quality specs prepared by certified construction specification writers (CCS)
• long lead procurement issues identified
• design creative procurement strategies that best meets client's and project's needs

Labor

• project labor agreements should be used when:
• building trades are well organized but on a craft basis
• labor agreements have different expiration dates or work rules
• facilitate a project training and development program that corresponds to industry and trade programs
• cooperate with the building trades council(s) for mitigating jurisdictional claims and disputes
• monitor special interest labor groups and coalitions and the impact they may have on the project
• special pre-negotiated labor agreements related to overtimes, shift-differential rates, shift productivity
• profit/bonus sharing program with trades