mutual gains negotiations and the penndot staff hour estimating guide apc fall seminar november 2010

ACEC/PAA C E CM ERICAN OUN CIL OF NGINEERING OMPANIES

of Pennsylvania

Mutual Gains NegotiationsMutual Gains Negotiationsand theand the

PennDOT Staff HourPennDOT Staff HourEstimating GuideEstimating Guide

APC Fall SeminarAPC Fall Seminar

November 2010November 2010


of Pennsylvania

BackgroundBackground

►PennDOT Paid Out $365 Million to PennDOT Paid Out $365 Million to Consultants in 2009Consultants in 2009

►Consultants Critical Component to Deliver Consultants Critical Component to Deliver $1.8+ Billion Letting Program$1.8+ Billion Letting Program

►Significant Time/Energy Spent Negotiating Significant Time/Energy Spent Negotiating ContractsContracts

►Some Negotiations Create Tension and Some Negotiations Create Tension and Mistrust and Cost TimeMistrust and Cost Time

►Modeled After FDOT Mutual Gains ProcessModeled After FDOT Mutual Gains Process


of Pennsylvania

Mutual Gains NegotiationsMutual Gains Negotiations

►Fair & Reasonable AgreementsFair & Reasonable Agreements

►Establish a Range of Effort for Engineering/ Establish a Range of Effort for Engineering/ Environmental TasksEnvironmental Tasks

►Range Agreed Upon by PennDOT and Range Agreed Upon by PennDOT and Consultant Task ForceConsultant Task Force

►Fosters a Sense of True PartnershipFosters a Sense of True Partnership

►Mutual Understanding of Scope, Mutual Understanding of Scope, Deliverables, Schedule, Range of Hours, Deliverables, Schedule, Range of Hours, Project ComplexityProject Complexity


of Pennsylvania

BenefitsBenefits

► Significant Reduction in Negotiation Significant Reduction in Negotiation TimeTime

►Mutual Focus Upon Project DeliveryMutual Focus Upon Project Delivery

► Consistent Negotiations StatewideConsistent Negotiations Statewide

►Mutual Appreciation of Each Other’s Mutual Appreciation of Each Other’s BusinessBusiness

► Fair Compensation for Project DeliveryFair Compensation for Project Delivery


of Pennsylvania

Current Process IssuesCurrent Process Issues

►Divergence of Opinion on Level of EffortDivergence of Opinion on Level of Effort

► Time to Get Under Agreement Time to Get Under Agreement

► Reduces Project PartneringReduces Project Partnering

► Time and Money Lost to ConstructionTime and Money Lost to Construction

►Does Not Capture Knowledge on Staff Does Not Capture Knowledge on Staff Hour Estimating (Institutional Memory Hour Estimating (Institutional Memory Loss)Loss)


of Pennsylvania

Cycle Time TrendsCycle Time Trends

Agreement Cycle Time: Selection– Execution

62

77

38

96

23

7

175

95

Number AgreementsDay

sDay

s


of Pennsylvania

Proposed New ProcessProposed New Process

►Founded on Mutual Gains PrinciplesFounded on Mutual Gains Principles

►Provides Foundation of Agreement for 80% Provides Foundation of Agreement for 80% of Projects and Tasksof Projects and Tasks

►Reduces Time From Selection to ExecutionReduces Time From Selection to Execution

►Fosters PartneringFosters Partnering

►Team Approach to Project DeliveryTeam Approach to Project Delivery


of Pennsylvania

Applicability of Staff Hour Applicability of Staff Hour GuideGuide

PROJECT COMPLEXITY

10%More

Simple

10%More

Complex

Applies to 80% of Project Tasks

PROJECTTASKS


of Pennsylvania

Expected OutcomesExpected Outcomes

► Formal Scope Clarification Upon Award of Formal Scope Clarification Upon Award of JobJob

► Mutual Agreement on Technical ProposalMutual Agreement on Technical Proposal

► Mutual Agreement on Scope, Mutual Agreement on Scope, Deliverables and ScheduleDeliverables and Schedule

► Guide Captures Institutional MemoryGuide Captures Institutional Memory

► Promotes Project PartneringPromotes Project Partnering


of Pennsylvania

Mutual Gains ActivitiesMutual Gains Activities

►Preliminary Engineering 95-100% √Preliminary Engineering 95-100% √

►Teams Received MGN Training √Teams Received MGN Training √

►Teams Developed Estimates √Teams Developed Estimates √

►Task Force Reviewed Estimates √Task Force Reviewed Estimates √

►Statewide Outreach Program Statewide Outreach Program (FTP/Website)(FTP/Website)

►Pilot Project and ImplementationPilot Project and Implementation


of Pennsylvania

Project TeamProject TeamCo-ChairsCo-Chairs

►Highway Team A: Highway Team A:

►Highway Team B:Highway Team B:

►Structures Team:Structures Team:

► Traffic Team:Traffic Team:

►Environmental Team A: Environmental Team A:

►Environmental Team B: Environmental Team B:

William Gross; HDRWilliam Gross; HDRKaren Michael; D2-0Karen Michael; D2-0

Vince Greenland; D9-0Vince Greenland; D9-0Eric Veydt; GFEric Veydt; GF

Ralph DeStefano; D9-0Ralph DeStefano; D9-0Joseph Pegnetter; ORAJoseph Pegnetter; ORA

Paul Archibald; MTPaul Archibald; MTGlenn Rowe; BHSTEGlenn Rowe; BHSTE

Mark Lombard; EQADMark Lombard; EQADRichard Shannon; MTRichard Shannon; MT

Sandy Baseshore; S&LSandy Baseshore; S&LPat Remy; D12-0Pat Remy; D12-0


of Pennsylvania

Staff Hour Estimating Guide Staff Hour Estimating Guide ProgressProgress

P.E. – 100% CompleteP.E. – 100% Complete






BridgeBridge

RoadwayRoadway

GeotechnicalGeotechnical

SurveySurvey

EnvironmentalEnvironmental

TrafficTraffic


of Pennsylvania

Proposed TimelineProposed TimelineTA

SK

S

TIME

NOV2010

DEC2010

JAN2011

FEB2011

MARCH2011

APRIL2011

MAY2011

JUN2011

JUL2011

AUG2011

SEPT2011

Pilot Project D-11Pilot Project D-11

Co-ChairsFinalize Work on P.E.

Co-ChairsFinalize Work on P.E.

StatewideRollout (P.E.)

of MGN and SHEG

StatewideRollout (P.E.)

of MGN and SHEG

Rollout SHEG for Final Design

Rollout SHEG for Final Design

D-11 / Consultant Feedback

D-11 / Consultant Feedback

FTP/Website Training Module FTP/Website Training Module

MetricsMetrics

NOV 2011

OCT2011

Co-ChairsDevelop SHEG for F.D.

Co-ChairsDevelop SHEG for F.D.

DEC2011

Update SHEG / MGN / TrainingUpdate SHEG / MGN / Training


of Pennsylvania

MetricsMetrics

►Before/After SurveyBefore/After Survey

►Time to Get Under Agreement Time to Get Under Agreement

►Number of SupplementsNumber of Supplements

►Time for Project DeliveryTime for Project Delivery

►Additional Input From ADEs Design and Additional Input From ADEs Design and

ConsultantsConsultants


of Pennsylvania

Next Steps

►Long Term Commitment By PennDOT and Consultant Community

►On-Going Improvement to Mutual Gains Process, Training and Metrics

►Biennial Updates to Staff Hour Estimating Guide


of Pennsylvania

Questions ?

►Gary R. Kleist PE [email protected]►Steven B. Bolt PE

[email protected]

mutual gains negotiations and the penndot staff hour estimating guide apc fall seminar november 2010

Documents

project partneringtime

environmental team b

structures team

traffic team

highway team b

mgn training teams

range of effort

range of hours