Private bidding public public bidding public must be

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Unformatted text preview: formance, payment) Bonds/Insurance Safety record Safety Reputation Reputation Financial strength Financial Total/Spare capacity Total/Spare Licensing Licensing Background in type of work Background Experience in local area/labor market Experience Management system (QA, planning, estimation, control) Management Interest, adaptability shown Interest, Negotiation Negotiation Typically selected based on reputation, qualifications Typically Typically used for two cases Typically Very simple Very Use trusted, familiar party Use Very complex/big Very Get contractor involved in design, start work early Get Requires relatively savvy owner Requires Evaluate proposals, monitor performance Evaluate Important even for DBB for post-bid changes Important Negotiation Considerations Negotiation Can get win-win because of differences in Can win Risk preferences Risk Relative preferences for different attributes Relative Goal is to find a pareto optimal agreement Goal Key skill in negotiation: Ability to find win-win Key win options Negotiation Tips Negotiation Try to maintain clear sense of reservation price Try Price or conditions under which will accept offer Price Want to adopt some objective basis for position Want Without this impersonal criteria, other party can take Without disagreements personally as arbitrarily demands Discuss multiple issues at once Discuss Permits trading off issues flexibly Permits Formal exposure good–but experience gives Formal edge Negotiation Tips 2: Major Sins of Negotiation (Thomson, 2001) Negotiation Leaving money on the table: Failing to identify Leaving and use win-win opportunities Settling for too little: Unnecessarily large Settling concessions Walking away from the table: Rejecting terms Walking that are favorable, often due to pride Settling for terms worse than existing alternative: Settling Pressure to reach some deal leads to opportunity less attractive than opportunity cost MIT OpenCourseWare 1.040 Project Management Spring 2009 For information about citing these materials or our Terms of Use, visit: Fred Moavenzadeh Spring 2009 The EPC PM Leads a Project Team y To execute the project to the satisfaction of both the customer and contractor. y To integrate project activity across all phases of the project y By managing project dedicated resources within a matrix relationship y Project Direction: What and when y Functional Direction: How to 2 BE Personal Qualities Required of a Leader KNOW Leadership Skills/ Competencies ƒ Coaching ƒ Communication ƒ Empowering ƒ Developing colleagues ƒ Problem solving ƒ Decision making ƒ Teamwork ƒ Planning and organization ƒ Monitoring performance ƒ Giving feedback ƒ Mentoring ƒ Trustworthiness ƒ Care ƒ Respect for human dignity ƒ Fairness ƒ Courage ƒ Honesty DO Important Steps in Leading a Team ƒ Explain the purpose ƒ Identify the critical issues/problems ƒ Encourage contributions ƒ Make a clear decision ƒ Assign clear tasks ƒ Decision making ƒ Monitor progress ƒ Coach team members ƒ Review the activity Adapted from Bechtel 2001 Leadership and CRA/MacDonald Leadership Models 3 Project Management Structure Customer Project Manager Technical Services Functions (e.g.) EPC Project Manager Partnering Relationship Business Functions (e.g.) Controller (CFO) Engineering Procurement Construction Project Controls Technical Guidance, Resources, and Tools to Projects Project Team Oversight and Support to Projects ES&H and QA Legal and Contracts Regulatory Compliance y Critical for project success: PM should have full responsibility, authority, and control (not a coordinator) y Roles, responsibilities, and authority should be clearly defined within the organization and with the customer y PM leads the project to its completion 4 Project Procurement Manager Project Managers Project Cost/ Schedule Engineer Functional Direction Project Team Project Construction Mgr Project Engineer Functional Direction Company B JV Project Matrix Organization Note: Typical project team positions shown. Team could also incl.. e.g. accounting and start-up 5 Client Project Project Manager Project Project Engineering Manager Process ƒ Environmental ƒ Systems ƒ Disciplines ƒ Spets ƒ Consultants ƒ Project Project Procurement Manager Purchasing ƒ Subcontracts ƒ Expediting ƒ Supplier ƒ Quality ƒ Traffic ƒ Project Project Controls Manager Planning ƒ Scheduling ƒ Estimating ƒ Cost Control ƒ Construction Construction Site Manager Constructability ƒ Field Engineering ƒ Field Procurement & Warehousing ƒ Labor Relations ƒ Construction Supervision ƒ Safety ƒ Startup Startup Preoperational Testing ƒ Training ƒ Startup Assistance ƒ 6 EPC Project Manager’s Responsibilities y y y y Customer relations – point responsibility Championing safety – zero accidents Meeting project quality objectives Leading environmental compliance and advocating sustainable development y Execution Planning y Project scope, cost, and schedule control Infrastructure World LLC 7 More EPC Project Manager Responsibilities y y y y y y Prime contract administration Risk management Project coordination and interface management Management reporting and financial control Delivering pl...
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