What key challenges have you encountered when managing technical projects, and how have you overcome them to meet your clients’ expectations?

There are two categories of stakeholders: the management of the company and the actual users of the facility. The management stakeholders will have a vision and a budget in mind. If you focus only on their goals, you might meet their schedule and budget, but the most critical factor is that the facility functions for the end users. If you have not considered what they do on a day-to-day basis, they end up with a new facility that’s not effective.

Managing expectations and change management is also key. Clients may have a broad idea of the end product, but they may not have a good understanding of the time or cost of the project, and in turn, scope of work. If the scope is not well-defined, major changes will occur as the project progresses, significantly disrupting cost and schedule. And if you don’t deliver on time and budget, the stakeholder will blame you. Defining the scope of work from day one, and controlling changes and expectations is imperative.

Can you share specific examples of projects you’ve managed, including their scope, scale, and the strategies you employed to ensure they were delivered on time and within budget?

I’ve been very fortunate in my career to work on a very eclectic portfolio of projects and project types, comprising oil and gas, universities, data centers, and even downstream industrial plants.

Large-scale projects, such as refineries and chemical plants, require careful attention to stringent requirements, design considerations, and material selection. The ability to handle large equipment, especially in preexisting facilities with tight spaces, is a game-changer as are a well-defined scope of work and planning for the storage and handling of long-lead items.

As an OPM, what are the typical milestones and critical phases in a technical project that you pay special attention to, and how do you ensure they are executed smoothly?

Every major transition point is important, from the mobilization of the project to the front-end engineering design work. Project gates, stipulated by the client or aligned with PMI best practices, are pivotal. These gates have specific financial controls, and issues can lead to project cancellations or delays.

Even if a project is 60% complete on schedule and on budget, a change in the organization’s finances can alter the project’s course, so finance departments must be informed throughout the project to avoid sudden impactful decisions. Clients may cancel a project due to economic downturns or changes in industry trends. The ability to recognize these factors, adapt, and present cost estimates for completion versus cancellation becomes vital in these situations.

A win-win-win philosophy for design, owner, and builder collaboration creates mutual success. Avoiding adversarial situations in contracts and negotiations fosters a positive project environment. Adversarial conditions mandate change management and control, emphasizing the importance of collaborative approaches.

In your experience, what are the key trends and emerging technologies in the technical project management field, and how do you stay up to date with these developments to benefit your clients?

We recently conducted a fascinating Critical Path Workshop with Dr. Gui. It’s refreshing to see a company acknowledging that just because a method has been in use for the past 60 years doesn’t make it flawless. Recognizing the need for major improvements is vital, and I admire PMA’s commitment to continuously improving industry standards.

In terms of trends, I always seek process improvement. I disagree with the notion of “if it’s not broke, don’t fix it.” Everything can be enhanced.

Exploring the potential of AI (Artificial Intelligence) in scheduling is a notable trend. I’m actively collaborating with PMA’s knowledge center to understand how AI can benefit and improve scheduling processes.

Another significant trend is the shift in business models. Companies are exploring collaborative approaches and moving away from adversarial contract structures, creating a win-win situation, minimizing concerns, and exposing everyone to a more efficient and beneficial project delivery process.

I also observe a trend towards pre-negotiated agreements with service and equipment providers. Establishing preferred vendor lists and partnership agreements with architects, manufacturers, and suppliers before starting projects is a time-saving and hassle-free approach.

The EPC world, particularly in Houston, has substantially consolidated over the past 15 years. Companies have been acquired or merged due to increased global services market prices and operating costs, leading to a decrease in the number of capable/viable  companies available for project execution.

Breaking this downward spiral requires a fundamental shift towards a trust-based, win-win structure. Changing the traditional adversarial approach to collaboration will revitalize the industry.

Can you provide a success story highlighting your ability to navigate the complexities of a technical project and deliver exceptional results for a client?

In my experience with large international projects, I dealt with the complexity of involving multiple conglomerate companies and various governments. Aligning different entities and addressing technological disparities in the tactical staff were significant challenges that required strategic solutions.

To overcome these challenges, I emphasized collaboration among all parties. Bridging the technological gap in the client’s tactical staff became a priority in the project.

On the technical side, I stressed a comprehensive understanding of the technologies, processes, and expected outcomes. I firmly disagreed with the notion that any certified project manager could handle any project, especially in cases like nuclear power plants that demand specialized expertise.

Regarding risk management, I highlighted the significance of identifying and addressing risks upfront to prevent claims. I observed that claims often arise due to a failure to manage risks, emphasizing the need for effective communication to prevent potential issues.

Soft skills, particularly communication and the ability to influence decision-makers, played a key role in navigating these complex projects. Successful communication with project stakeholders proved essential in avoiding delays and cost overruns.

In conclusion, my experience emphasized the importance of understanding project fundamentals, effective communication, and proactive risk management to ensure the success of large-scale international projects.

Can you share your approach to fostering long-term client relationships and consistently meeting client needs?

Earning trust is fundamental in project management. If you can establish reliability – consistently providing great service– you can become the indispensable go-to and continue to work with a good client. When clients have multiple bidders for a project, being on their list due to an established excellent reputation is so advantageous.

Soft skills play a significant role allowing project managers to connect with clients, both at the management and operational levels, to establish those relationships. Addressing and minimizing mistakes allows us to maintain trust to establish a foundation for future collaborations.

How do you position yourself as a trusted advisor and owner’s representative (OPM) for clients seeking to deliver new facilities on schedule and budget?

I leverage PMA’s historical delivery methods and capabilities, showcasing past successes and client base. Marketing and sales efforts require emphasizing our goal to help clients succeed. We convey that our success means their success, making them understand how PMA’s success can benefit them. Building a long-term client-service provider relationship is the ultimate goal.

Key points include emphasizing schedule and budget. PMA excels in scheduling and risk estimation, providing accurate owner’s estimates. Many projects suffer due to unrealistic expectations from inaccurate initial estimates, usually on the low side. Aligning expectations correctly is crucial for success.

The client must recognize that your company can deliver on schedule and within budget. Trust is the cornerstone of this relationship.

How do you approach procurement for technical and financial requirements in complex technical projects, and what strategies do you employ to ensure efficient and cost-effective procurement?

I break procurement into two components: services, whether it be engineering or consulting services, and material/equipment.

For professional services, I recommend separating technical qualifications from pricing. Evaluate the technical qualifications first; only then open the financial bids of the qualified ones for an apples-to-apples comparison. When dealing with smaller projects and an insufficient number of vendors, a proper company estimate provides a point of comparison.

There’s a trend in major corporations stipulating large penalties for schedule delays. A more effective approach is a contract with a cost savings clause where all parties (architect, engineer, company, owner, and general contractor) have a stake in the project’s outcome.

For materials and equipment procurement, identify long-lead items early, especially for technical facilities. These items often have waiting lists, and delays can impact the project schedule. Consider delivery logistics, including customs controls, especially in countries with restrictions. Mastering these details is essential for a successful project.

The post Expert Strategies for Successful Technical Project Management appeared first on PMA Consultants.

To give listeners a frame of reference, Wee clarifies that she considers a long-term project anything that lasts beyond 5-10 years from start to completion. Due to the span of time required for project completion and the number of uncertain elements that can occur during this time, planning for them becomes unique. Having just experienced the COVID-19 pandemic, it’s on the forefront of many schedulers’ minds that everything can change in a moment, especially the longer a project goes on. 

Even though not every project will run into pandemic-scale issues, Wee suggests that the two most important elements to consider while starting a long-term project are people and documentation. Each team member should have a clear expectation of their role and of project management documents such as the standard operation procedures. Because everyone is coming into the project with different backgrounds, it helps everyone to know what can be expected of them and what they can expect from others.  

Clearly spelling out these roles leads to the importance of documentation. This not only helps the original members of a project team know what to expect from each other, but it prepares for a smooth transition during the inevitable turnover that happens during a long-term project. Documentation should also encompass employees, but every area of the project so that it’s easy to look back on what has happened and better adjust for the future. Starting this process early on can make all the difference if you are looking back on over a decade of work! 

After sharing these insights along with the various levels of a schedule and key scheduling approaches, Wee conveys the key lessons she’s learned while working on long-term projects. Primarily, she emphasized the importance of discussing the right level of information with the right people and setting ground rules for expectations. This goes back to her point about knowing each person’s role and the background of each team member. By sharing the appropriate information with the correct people, you ensure relevancy and on-time decision making while reducing the possibility of overwhelming or confusing anyone with information that isn’t their specialty.   

Wee also added that in terms of tools and technology, it’s important to choose what’s right for your specific audience and situation, even if that means trying something that isn’t the norm. For example, before COVID, Power BI was rarely used in her industry, but the changes that came with the pandemic called for her and her counterparts to adapt. Additionally, she highlighted that even in more stable times, she must be thoughtful about the technology she uses according to its audience. While Primavera P6 is useful for monthly reports, it’s not the most user-friendly option for stakeholders that are inexperienced in scheduling. Wee has found that NetPoint is usually more suited to working with a group of stakeholders, since its visual, interactive nature allows people to see real-time effects to the schedule in an easy-to-follow way. While she has not had as much experience using Project Summit, she’s found it helpful for extremely long-term projects (around 15-20 years) since it allows people to clearly view the entire schedule in one page.  

To hear more about what Wee, Zoe, and Hatim have to say about the methods and factors that go into planning and decision making for multi-year projects, listen to “Strategic Perspectives on Long-Term Projects and Planning!”

The post Long-Term Projects and Planning – Project Insights Episode 005 appeared first on PMA Consultants.

Risk management is commonly defined as a process or system used to identify and control potential threats to a project.  Francisco begins by describing the different approaches that he takes when assessing a project, including decision analysis, qualitative risk analysis, and quantitative risk analysis. The decision to use one approach over the other relies heavily on the project’s life cycle stage and its level of definition. For example, when attempting to assess the forecast and potential outcome for costs and schedule early in a project life cycle, Francisco might use decision trees and probabilistic branching, while later in a project he might bring in Monte Carlo simulation and parametric modeling.   

Another key consideration that Francisco brings up is beginning with a great team. These professionals are not just those who will be determining the potential risks that might occur, the sequencing that needs to happen, and all the other facets of the process, they also are the people that will actually be carrying out these tasks. Assembling a team that can carry out these tasks with both caution and confidence, as well as creating connections with outside groups, is essential.   

While building a team, it’s also important to consider the prior knowledge that they bring to a project. As Francisco told the hosts, “We know mostly everything that is going to happen because it has happened [already]”. In other words, to have the best chance of foreseeing issues that might occur, it’s best to have a team that has the most experience encountering and overcoming a variety of roadblocks. 

Considering advances in technology, a team that knows how to bring the wealth of information supplied by similar projects to bear on your current project is vital. There are many internet sources that can supply risk managers with data and models to consider. Along with this store of data, Francisco advocates for the use of artificial intelligence (AI), while recognizing its drawbacks. Because AI can pull information from hundreds of thousands of projects, it can effectively create potential schedule for the type of project you are working on. Once obtained, however, you will still need an expert to review and ensure the data is pertinent to this project and covers any areas that AI might have missed. The strides we are making in the realm of artificial intelligence plus the enhanced documentation for all types of projects will ensure that AI becomes an increasingly useful tool for risk management.  

In projects where there is little historical data as a basis for decisions, Francisco finds it important to discuss the use of calibration. Risk management for these projects often involves surveying individuals on what they think about potential outcomes and may introduce bias, such as optimism bias, anchoring bias, or group biases. Calibration is a measure that a risk manager takes to lower these potential effects, such as asking questions both while the participants are in a group and when they are by themselves. This better ensures the quality of data for the project and its outcomes.   

Francisco leaves the hosts with his most important advice for those working in risk management, which he believes can have a substantial impact on projects, especially if they run into a large-scale issue. To learn about this and more pertaining to decision and risk management, listen to Episode 003 of Project Insights!

The post Risk Management – Project Insights Episode 003 appeared first on PMA Consultants.

Toxqui, a Director with PMA’s Digital Transformation and PMIS groups, has a passion for data and technology in project management, having conducted his master’s thesis on machine learning. With this background, he says that AI (when a computer simulates human behavior) has existed much longer than most people realize. Thanks to developments like ChatGPT, AI has become a household concept due to its accessibility to anyone with internet. However, Toxqui argues that even 20 years ago, when he was working on his thesis, he was not working in the early stages of AI, but with information that had been built up for years prior. While he had to build much of what he was doing from scratch and determine the correct algorithm on a much more sophisticated and detailed level than people must today, we are following this same process with a little more prior knowledge.  

To discuss the future of AI, Toxqui thinks it is necessary first to give the audience an understanding of how it works. The technology needs to go through many cycles of learning and training, building up on smaller aspects necessary for a function. Like a toddler that first must learn how to stand before they can master walking, or learn how to walk before they can master running, it’s a sequential, repetitive process that takes time to build up to the desired task. 

With this knowledge of the process involved in making AI work, it’s clear why we have been working on it for so long, and it is still in reasonably simplistic stages. It takes a large volume of experiences and exposure for technology to learn the same behaviors as humans. In addition to this, things such as variance in language (ex: phrasing the same concept in different ways), unexpected situations (ex: illness or weather), and other factors make it much more complex (or possibly unlearnable) for AI technology. So, while the future only brings more advanced applications due to more data, it’s unclear what that future will look like. 

But the question remains: will AI take over our project manager positions? Put simply, Toxqui believes that project managers will still be necessary, but their jobs will look different given AI’s disruptive nature. Find out his predictions for the role, along with his advice for professionals in the industry, by listening to Project Insights! 

To test our current AI technology, see how you think ChatGPT’s summary of the episode matches up with your takeaways after listening: 

In this episode of Project Insights, hosts Zoe and Hatim spoke with Ernesto Toxqui, PMA’s Director of Digital Transformation and PMIS groups, about the application of artificial intelligence in project management and project controls. Ernesto shared his expertise in computer science, project controls, and project management, discussing the history and evolution of AI and how it has advanced to its current state of development. The conversation also explores ways AI can be used in project controls and management, including documentation, delay analysis, administrative tasks, and real-time data analysis. Ernesto also addressed concerns about AI as a disruptive technology and its potential impact on job displacement. Ernesto suggested remaining open-minded about technology, updating one’s knowledge about AI, and identifying areas where it can be applied in daily tasks.  

The post AI in Project Management – Project Insights Episode 001 appeared first on PMA Consultants.

The post The Value of an Owner’s Project Manager: Resolving Challenges for Successful Projects appeared first on PMA Consultants.

PMAer Ahmed Garamoon, PE, Manager, is a project management and project controls professional with extensive construction experience. He has specific on-site expertise in managing mega projects, such as construction materials processing plants, power plants, rail, roads, ports, and real estate developments on projects worldwide. Mr. Garamoon has an excellent understanding of schedule control, cost control, and cost estimating. He has served as site supervisor and he has managed quality control on multiple projects. Mr. Garamoon is skilled in MS Products, Primavera P6, AutoCAD, SAP Design, and CRM software.  

What is a lookahead schedule?  

A lookahead schedule is a dynamic tool applied across various project levels, from one to four. The granularity of detail varies with the schedule complexity. Contractors employ lookahead schedules to synchronize imminent tasks. The term “near term” encompasses periods ranging from two weeks to several months, adapting to project scope and intricacy.

Commonly, lookahead schedules streamline construction projects, harmonizing activities spanning the preceding week, current week, and subsequent one to three weeks.

Example in Action: Streamlining Procurement

To illustrate, consider a case where PMA was tasked with optimizing a client’s procurement operations. With two to seven months of procurement activities, the lookahead window was extended to twelve months to accommodate these elongated processes.

What’s Included in a Lookahead Schedule?  

Lookahead schedules encapsulate granular aspects too specific for the project’s main construction schedule. They provide intricate insights into:

• Daily labor requirements, categorized by trade.
• Equipment and material needs for each day.
• Detailed specifications of major milestones.. 

Notable elements on a lookahead schedule, not typically present on a project schedule, encompass: 

• Distinct work items, organized crew-wise.
• Timings of material deliveries.
• Subcontractor particulars, often replacing generic terms with precise positioning.  

Mitigating Challenges with Lookahead Schedules  

Often, optimism clouds stakeholders’ perspectives, leading to unrealistic projections. By delving deeper into activities, optimism bias is counteracted. Material constraints, dependencies, and potential hurdles are highlighted, ensuring a pragmatic outlook. This empowers project stakeholders, such as CMs, contractors, and trades, to troubleshoot, adapt, and prevent schedule overruns.

These efforts cultivate precise activity duration estimates. Detailed analysis of concealed activity constraints bolsters the overall dependability of lookahead schedules. Moreover, these schedules attribute responsibilities, instilling accountability, and bolstering project alignment.

Crafting and Sharing Lookahead Schedules

Basic lookahead schedules can be constructed using Excel, suitable for simpler projects lacking intricate logic. Advanced contractors extract lookahead data from scheduling software like Microsoft Project, Primavera P6, and NetPoint for more intricate undertakings. Complex scenarios, where activities are broken down and resources allocated, find a suitable ally in NetPoint.

Sometimes when the lookahead preparation entails breaking down general activities into smaller ones, while allocating the associated resources, NetPoint is a perfect tool to simulate more than one scenario based on the availability of resources and work restrictions. Usually, these lookaheads are prepared in a live session with the client where we can move activities around based on discussions and see the outcome on the spot.

How are lookahead schedules used in lean construction?  

Lean construction practitioners advocate previewing work one to six weeks ahead. This approach facilitates dialogue with trades, unveiling potential impediments before scheduled activities commence. Proactive problem-solving during the early stages curbs setbacks.  

Impact of BIM and 360 Video on Lookahead Schedules  

While 360 cameras have diminished the gap between work completion and information accessibility, seamless real-time tracking and integration with scheduling software and BIM models are yet to be fully realized. Advancements continue to refine the integration of technology with lookahead scheduling.

By delivering a more succinct and engaging version of your content, we aim to enhance reader engagement and reduce the bounce rate for your article on lookahead schedules.

. 

The post Enhancing Coordination with Lookahead Schedules appeared first on PMA Consultants.

In a deterministic project schedule, total float represents the amount of time an activity start or finish date can be delayed without affecting the project schedule end date or an intermediate benchmark (e.g., fixed milestone). The uncertainty in the project schedule will likewise affect the amount of flexibility each activity has to be delayed.  

For a stochastic project schedule, the safe start date for any activity is defined as the latest possible time to which an activity may be delayed safely without affecting the probability of completing the project by the targeted P-value completion date. Safe float is defined as the available amount of time flexibility that an activity has, considering remaining risk/uncertainty in the schedule. Safe float of any activity is its total float adjusted for risk and uncertainty remaining in the schedule. 

Since activities in project schedules may start on planned dates, as in instances with GPM, the safe float available to a task is always defined with respect to the task early date in the simulation’s schedule model. The safe float is thus the time between the early date of the task and its safe start date; however, not all tasks have a safe start date, and sometimes the safe float is negative, indicating that such activities are critical in nature and cannot be delayed.     

Why should total float not be trusted?

Total float is calculated using a deterministic schedule. Deterministic schedules represent only one possible scenario out of potentially thousands, if not millions, of possibilities of how the project might be executed. As the task durations are inherently uncertain and there is potential for risks to impact project progress, use of total float calculated in a deterministic schedule is therefore not the best measure to predict whether the project will be delayed or not.  

For example, consider a schedule where “Task A” has 6 days of total float. During execution of the project, “Task A” was delayed by 5 days and, considering available total float, the deterministic schedule will still indicate on-time completion. However, due to uncertainty that still exists in future tasks, it is likely that at least one or more tasks on the successor path of “Task A” will take longer when started, thereby delaying the project end. Consequently, we see that total float is a lagging indicator when making decisions pertaining to delays and their potential impact on the project. Total float identifies the delay in the project after it has occurred, and the project team must then react to control it after the fact.  

1. Total float can misrepresent the actual flexibility or likely success of the project.
   A systematic misrepresentation of the task durations can be used to game the available total float to the detriment of the project. For example, using only optimistic durations on tasks will show an abundance of available total float, whereas using only pessimistic durations will mean that the total float available to tasks will be very low. Critical paths on the schedule can thus be manipulated to cross tasks for the benefit of a party even when the actual critical path during project execution may likely be different.
2. Total float does not represent the same flexibility at the project start or end.
   Schedulers have always understood that 5 days of total float at the start of a project is not equivalent to 5 days of total float at the end. This leads to recommendations on using a percent of remaining project duration as the allowable float to define criticality. This approach, however, still treats every path in the network equally, irrespective of the uncertainty on the path, and uses a judgment in picking the “correct” percent value for float, in addition to being calculated for a deterministic scenario. Hence a task on a riskier path will be treated equally to a task occurring at the same time but on a purely deterministic path.       

Why should we use safe float?

1. Safe float is true flexibility.
   Safe float considers duration and other risk uncertainty in the schedule. This inherently means that safe float is not calculated based on one set of deterministic durations; instead, it takes into consideration all significant duration possibilities that are anticipated to occur during execution of the project. Safe float thus represents the true flexibility available for a task to be delayed, as it considers all possible duration outcomes for all activities in the portion of the network rooted at the activity. Unlike total float, using different sets of durations for the remaining tasks will not impact safe float if the logic ties and uncertainty in the schedule remain the same.
2. Safe float is a better indicator of criticality.
   As safe float considers uncertainty and is independent of the choice of durations for the deterministic project schedule used to determine safe float, its value provides an important indication of criticality. Certain tasks in a project schedule may not have a valid safe start date, indicating that any delay to the task will potentially translate into a delay to the project end date. This allows the project manager to focus resources on tasks that are absolutely critical rather than tasks on the deterministic critical path which are sure to change as the project progresses.
3. Safe float is an early indicator of potential delay in a project.
   Projects are typically controlled or monitored using deterministic schedules or a project baseline; however, as described earlier, the choice of deterministic durations for float calculations may be random and/or insufficient. When tasks have a negative safe float value, it indicates that the early date denoted on the baseline schedule might already be causing delay. As a result, such scenarios can be handled early, and tasks planned for execution even sooner, by modifying the plan or adding resources to complete tasks on their predecessor path earlier.
4. Safe float improves decision-making when floating tasks.
   Unlike total float, if an activity is delayed within its safe float, there is an inherent certainty that the delay will not impact the project end date. Using up total float provides no such certainty, as described earlier. Accordingly, any delay past the safe float available to a task provides a direct indicator of a potential delay in the project. As projects are executed, it is common for certain tasks to be delayed for a myriad of reasons: managing with lower resources, floating work to avoid frequent start and stops, pacing due to delay in related but different schedule path, etc. When deciding to delay a task, the available total float is ineffective; however, safe float provides a significant tool to quickly assess which tasks can be safely delayed and how much delay to the task there can be without impacting the project end date. 

The post Safe Start Date & Safe Float appeared first on PMA Consultants.

The Infrastructure Investment and Jobs Act (IIJA), enacted in November of 2021, supplied trillions of dollars of federal funding for a wide range of infrastructure projects. In 2022 alone, the federal government spent $36.6 billion on infrastructure directly and transferred $94.5 billion to the states.

While more infrastructure projects and improvements are receiving much-needed attention, significant drawbacks are becoming apparent. Due to this funding flow, human resources and material availability are in high demand, creating an inflationary spiral that has left many infrastructure projects in a difficult situation. To learn more about the unique period infrastructure is experiencing under the IIJA, we turned to PMA experts, David DePina, Rick Johnson, Jeff Plant, Kam Shadan, and Ken VanderJagt, to enlighten us on the latest developments in the field.

One of the greatest difficulties that infrastructure projects faced, particularly those started just before or at the beginning of the IIJA being put in place, was the inability to foresee just what an impact inflation would have on the total cost of a project.  Ken VanderJagt’s deep knowledge of cost estimating and cost analysis ensures that project managers will expect and deal with inflation. For example, on one of Ken’s highway transportation projects, in the two-year span between 2019 and 2021, they saw about a 2% increase in the cost of materials.

Once the IIJA was enacted, by June of 2022, however, costs had increased by approximately 50%, a sudden and rapid change. Ken says that this, understandably, threw many projects into a predicament, since no one had expected inflation of this scale to affect their project. Even now, though the rate of inflation has slowed, costs have increased in the 10% range between June 2022 and March 2023, which still presents an issue for anyone attempting to predict costs on a project. It’s reasonable to assume that many infrastructure projects are facing similar inflation patterns, since highway transportation projects such as this make up the majority of infrastructure spending.

While the IIJA brings unprecedented opportunities for the infrastructure sector, it has also unintentionally opened up a world of uncertainty. PMA professionals have been able to meet these uncertainties head-on and continue to provide solutions for our infrastructure clients. One of the most vital roles that we have played is offering value engineering (VE) services at the beginning of an endeavor. Value engineering is one of the most effective methods in the engineer’s toolbox, and Rick Johnson has extensive experience in its deployment.  

While working with the Florida Department of Transportation, Rick performed six VE studies that resulted in $301.4 million in savings for the $2.1 billion program. While these studies all took place just before the IIJA was enacted, the project itself took place afterwards and experienced the previously mentioned effects of inflation. Additionally, Rick says that after the IIJA, he and other VE experts would not necessarily need to change their approach, but that they have become much more in-demand than they have been in recent years; he is currently providing VE on six different projects. Given today’s climate in infrastructure, this is one of the most important services PMA offers. 

In discussing his transportation work, Rick mentioned another important factor in cost controls: Private-Public-Partnerships (P3). By bringing in a private entity, P3s can help ease municipal debt and lower the risk for the public leadership on a project. Additionally, by bringing in more leaders on the project, they allow for increased expertise, adding value to the eventual outcome and highlighting the benefits of alternative funding options such as this.

Materials are not the only factor adding unforeseen costs to a project after the IIJA, as labor costs and availability have also presented a challenge to many infrastructure projects. While this is currently a problem affecting all construction sectors, the increase of projects from the IIJA only exacerbated it. David DePina, who focuses on labor availability, explained that this situation is also in part due to hybrid and more flexible working spaces becoming the norm, which is difficult in the construction world. However, to make infrastructure jobs more appealing, one of the biggest draws a worksite can offer is training. This not only gives workers skills to move on to higher-paying positions once a project finishes, but also attracts people who are dedicated to success and improvement, benefiting the project overall. While this ensures workers on-site, this approach does not necessarily lower the costs of labor. To help in this area, David suggests leaning on technology to lower time and volume needs on-site.  

Because of the aforementioned possibilities and difficulties presented with the implementation of the IIJA, the strategic implementation of projects is necessary in order to maintain progress. From the vantage point of his many years of infrastructure delivery experience, Jeff Plant observed that the increase in funding, has not changed the type of projects that are being prioritized: responses to crises, complying with safety requirements, and a heavy focus on highway, rail, and mass transit.

The post Handling the Impacts of the Infrastructure Investment and Jobs Act appeared first on PMA Consultants.