Project Management Consulting Services

Getting the Best Value for your
Building Dollar

How we can help!

Abhi Basu
Basu Technology, Inc.
abhibasu@basutech.com
856 245 9082

Introduction



Small and Focused


SDBE / MBE


Expert Team


2
(C) Basu Technology, Inc. 2008

Background

Over 30 years of experience working on

major capital expansion programs in the
region
Experienced in all facets of project delivery

cycle
Geared specifically to Facilities Construction


Working only with Owners


3

Project Experience

Columbia University


Princeton University


AT&T


Brookhaven National Labs


Rutgers University


Others


4

What we provide

Top down look from the Owners Viewpoint


Objective advice


Subject Matter Expertise


Technology Implementation


5

Our Mission

Empower the Owner with Critical Information

To make better decisions


To be proactive


Save cost and time


Manage Risks


6

Services

Project Audit, Process Audit


Project Monitoring & Peer Reviews


Risk Management


BIM Implementation


Set Up and Training

Project Controls


Metrics


Process


7

Industry Observation

An Owner can be his/her own worst enemy


Owners have the ability to set the tone for

each project and the potential for a
successful outcome for all stakeholders

FMI – CMAA 5th Annual Survey of Owners

8

Cost & Schedule Overruns

Owners identify main causes to be:

Incomplete drawings


Poor Pre-planning process


Escalating cost of Materials


Lack of timely decisions


Excessive change orders


FMI – CMAA 5th Annual Survey of Owners

9

Program Governance –
What Owners Can Control
Opportunities and Choices

 30% cost & schedule difference

 Project vs Program, Life-Cycle Costs

 Standards

Scope

 Ancillary Scope, Scope Creep, Dark Scope

Alignment

 Scope, timing, stakeholders, contracts

Organization

 Delivery, Change Control, Communications

Metrics & Reporting

 Making business sense

10

Improving Program Governance

Identify total scope and stake holders


Create comprehensive framework for

planning and executing
Create standards, establish gating


Align multiple projects and processes


Set up metrics and reporting on Owner needs


Monitor and audit


11

Creating a Framework for Planning, Executing
& Reporting
Framework Components

Comprehensive Scope Document


Enterprise Project Structure


Organization Breakdown Structure


Project Work Breakdown Structure


Processes


Reporting


Milestones & Metrics


12

How we can help …

Supplement your in-house staff with expert

knowledge and skills
Help set up your Program Management

Office
Immediate ramp-up of critical scoping,

planning, scheduling, risk management and
communications tasks
Help streamline your project delivery process

for maximum benefits
Provide the infrastructure and tools to take

full advantage of information technology
13

Specific Areas

Scheduling / Peer Reviews


Project Monitoring / Audits


Risk Management


Claims Analysis


BIM for Owners


14

Implementing Technology

Project Management and Project Control

Software
BIM


4D Scheduling


Training


15

Supporting Slides

16

Construction Cost-Project Cost-Life Cycle
Cost
Building First Costs

Project first costs are only about

Financing / Legal /

15% of Life Cycle Costs
Insurance
100 22
Land
10
80
8
For every dollar of First Cost

6 Furnishings
60

additional 5.67 dollars are spent
AEC
40 54

20
over the Building Life Cycle
Construction
0
1
Dispose

Building Life Cycle Costs

le
yc e
ec us
Re
/R Renovations
De

20
si g

100 Financial / Legal
n
Renewal

15
80 Taxes
17
Maintenance
60
tion

15
Operation
truc

40 18
Op
s

Construction
er
Con

at 20 15
io
ns
/U
0
se
1

17

Project Delivery Phases –
Cost of Making Changes

Conceptual Schematic Design
Planning
Design Design Development

Cost of Making Changes
Ability to Make Changes

Construction
Procurement
Documents

Commissioning
Construction
Closeout

Time

18

Front-End Planning

A change
here

Which should
have been
made here
19

Savings attributed to thorough concept
definition
Study Sample – 62 projects (CII)


Metric – Final TPC / Estimated TPC


Findings

Impact of Poor Design Drawings

20
Over Runs
15
% Cost Over run

10

5

0
High Medium Low
-5
Degree of Definition

20

Owners Fail to Track
Total Project Scope
Only part of the scope

is tracked in project
metrics

21

Mismatches in Cost Scope and Schedule
Scope

22

(Mis)Alignment of Responsibilities

Bilateral Contracts in a multi-lateral

framework
Stakeholder participation


Communications - Lost in translation


23

Major Players causing Project
Delays/Overruns
Factors Causing Cost / Schedule Overruns

Scope Changes
by Ow ner
Other Factors
19%
24%

AE Delays
8%
Delays by
External
Agencies
10%
Contractor's
Poor
Performance
39%

24

Cost of Rework

Project rework costs average 12.4% of TPC

80% caused by Errors & Omissions in Design

Documents
20% caused by poor construction practices


50% of construction change orders caused

by errors in design documents directly related
to uncoordinated drawings
Change orders cost 0.8 to 3.4% of TPC

Discipline interface review of documents

during design costs 0.1% of TPC
Payback ratio - $8 to $34 for every dollar

spent
25

Cost and Schedule Savings with BIM

26

27

Seeking to be a member of your core team

Abhi Basu
E-mail: abhibasu@basutech.com
Phone: 856 245 9082
We would be happy to come in and present to
you specific ways we can save you money

28

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