Over the last several years, supply management professionals have been spending a majority of their time in creating, implementing and managing Business Continuity Planning (BCP) for critical products, materials and services. BCP is a strategic management process that focuses on insuring continuity of supply. The main objective is to identify and minimize or eliminate business interruptions in the event of a catastrophic event or major incidents occurring within the supply chain that can lead to adverse consequences for your business. Ten to twenty years ago, supply disruptions were caused by major snow storms, truck breakdowns, labor strikes, fire or explosions, electrical outages, machine breakdowns or even a truck driver making an unscheduled social visit.
Articles
More Than Just Counting Rainy Days: Documenting Weather Delays
by Michelle N. Delehanty, PE, PMP
MDC Systems® Consultant
According to the farmer’s almanac, this upcoming winter is predicted to be more severe than last year, which already seems as if it were one for the record books. For many regions throughout the United States, that means a multitude of storms, extreme cold, and potential closings to schools, offices, and, most problematic, construction sites. These closings of construction projects can lead to schedule delays, change order requests, and ultimately claims. In order for a contractor to justify to the owner that there is indeed a weather-related construction delay, they must demonstrate four specific things: (1) that the delay is within the terms of the contract (2) that the activity delayed had a direct effect on the project end date (was on the critical path), (3) the weather event occurred in excess of the “normal” weather for the season, and (4) there is documentation of which specific activities were delayed on each weather occurrence.
Primavera Scheduling
Robert C. McCue, P.E.
MDC Systems®
Consulting Engineer
Recently, MDC Systems® made the jump from Primavera P3 (version 3.1) to P6. However, the landing was a little rough- initially, erroneous information was received from a Primavera representative and then outside IT consultants had to be brought in to resolve issues with the server installation. If the installation experience is any indicator, it seems likely that P6 will require more IT overhead on an ongoing basis. This is in addition to the learning curve for the new features and capabilities of P6.
Complexity is Often the Culprit in Cost Overruns, Delays
Our long history and experience is that the failure rate for projects in general has remained high. Why haven’t the advances in project management science, computers technology and communications been effectively brought to bear on the engineering and construction business? What about the advertised beneficial impact of 3-D computer-aided design, computerized critical path methods schedules and building information modeling? Are today’s engineers not as good as those who built the mega project of yesteryear like the Panama Canal, Empire State Building or Hoover Dam?
The Standard of Care in a Design Build World
Design-Build Delivery can create new responsibilities for designers where they would not exist in traditional Design-Bid-Builddelivery situations and require new awareness on the part of contractors to the iterative and uncertain world of conceptual design. These new responsibilities require a paradigm shift for both Designers and Contractors as the realities of working together challenge the leadership of the organizations.
For designers the change requires them to abandon their traditionally “client only” focused advice and consent role and adopt a new paradigm of working for, or with, the contractor to deliver an acceptable and profitable product. For the contractor working with and supporting the designer changes the very nature of their previous working relationship. The contractor is now working with and for the people they are all too often at odds with concerning project delivery.
The Surety’s Completion Alternatives for Defaulted Contracts
When faced with a default on their projects, many owners have unrealistic expectations concerning the surety’s obligations under the performance bond. Owners feel frustrated when the surety does not aggressively step in to complete the work. However, under most performance bonds, if the contractor/principal is in default, the surety may discharge its obligations by any one of the following alternatives: (1) finance the contractor/principal to complete the work; (2) obtain a new contractor to complete the work under a direct contract with the owner/obligee; (3) complete the work with a new contractor under a contract with the surety; (4) permit or require the owner/obligee to obtain a new contractor; and…
Project Risk Reduction
Using Project Management Modeling Tools to Quantify, Analyze and Reduce Exposure to Risk
Some project histories are very complex and traditional schedule and damage analysis methods are not able to quantify the impacts of events that have occurred over the life of the project. In these situations MDC&Reg has relied upon more sophisticated mathematical and system based models to attribute impacts to particular events. The usual methods of determining and reducing risk on construction projects include schedule forecast, cost forecasts and change review analysis performed by the project team. However, sometimes these techniques do not allow for an overview that properly adds the effects of many individual events. On these occasions the project team needs more powerful and sophisticated tools that can include multiple project factors including resource availability, site conditions, environmental factors and productivity levels for both planned and actual conditions on the project to date, all factors that cannot be completely comprehended by the project manager without the aid of analysis.
Fukushima Dai-Ichi – Black Swan Event or Engineering Design Error?
By Robert C. McCue, PE MDC Systems® Consulting Engineer Tsunami triggers destruction of nuclear reactors, Japan On the afternoon of March 11, 2011 a magnitude 9.0 earthquake struck the coast of Japan triggering a massive tsunami that ravaged the country’s northern coast. The images of the water moving at a rate of 500 miles per
Risky Business: The Economic Risks of Climate Change to the United States
The U.S. faces significant and diverse economic risks from climate change. The signature effects of human-induced climate change—rising seas, increased damage from storm surge, more frequent bouts of extreme heat—all have specific, measurable impacts on our nation’s current assets and ongoing economic activity.
Design Professional’s Role in Minimizing Claims
Design professionals can play an important role in properly setting the course for the construction project, especially in minimizing the likelihood of claims and disputes. For example, not only can the architect serve as the master builder, but also as the master of dispute prevention and resolution.