2c - Project Delivery Process

2c - Project Delivery Process - Methods of Financing CE 332...

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  CE 332  Page 1 Methods of Financing
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   CE 332 Page 2 Public Owners Appropriations from legislative body (short duration  projects < 5 years) one lump sum annual appropriations Bonds (longer duration projects) general obligation bonds revenue bonds assessment bond – special assessment on limited  population Grants Cost Sharing
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   CE 332 Page 3 Private Owners Out-of-pocket (cash) Loans (short term < 5 years) Bonds (longer term debt) For capital improvements must show: Increased revenue Increased production Increased efficiency
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   CE 332 Page 4 Alternative Methods Build-transfer Build-lease Build-operate Build-operate-transfer Build-operate-lease
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  CE 332  Page 5 The Project Delivery Process
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   CE 332 Page 6 Project Objectives The owner’s primary objectives are:  cost, time, and quality These are often conflicting and one  cannot have them all Increasingly, owners consider time as  the primary objective
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   CE 332 Page 7 Cost-Time-Quality Tradeoffs $ Time Quality Quality min  =  Industry Norm $ Time $ min T opt $ min Q 2 $ 2 Small delta $,  large delta Q Q min T min Q 2 T 2 Small delta T,  large delta Q Large delta T, small delta Q Large delta $,  small delta Q
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   CE 332 Page 8 Project Risks Risks need to be well understood as there are  many project risks, such as: time delays and cost overruns highly technical or specialized work unforeseen conditions inaccurate information project will not work Delivery system (project organization) must  be selected to minimize the risks
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  CE 332  Page 9 Delivery Systems
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   CE 332 Page 10 Definitions A delivery system is the contractual  arrangement between the parties and  the delineation of responsibilities  (includes design and construction).   It is the project organization and should  support the owners objectives (cost,  time and quality) and be compatible with  other constraints.
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   CE 332 Page 11 Definitions (cont.) A state-of-the-practice project is one  using standard technologies where the  scope and risks can be reasonably well  defined Quality levels can be either at or above  the industry norm State-of-the-art projects??
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This note was uploaded on 04/11/2008 for the course C E 341 taught by Professor Scanlon,andrew during the Spring '07 term at Penn State.

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2c - Project Delivery Process - Methods of Financing CE 332...

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