Appendix B

Amplifying Questions

Introduction

The following questions provide detail on the topics of interest outlined in the panel overview of January 2003. We hope that these questions can serve as a framework for the discussions for our visit in May. Wherever possible, we ask that you answer the questions directly or provide examples of successes and failures in the topical area. Example contracts or contract language from successful projects will also be helpful. While we are certainly interested in your largest and most innovative projects, policies, and procedures, we are also interested in your routine practices, as we may gain new ideas for U.S. agencies from these as well.

Preconstruction Aspects of Construction Management

General Context

• Generally describe the key aspects of how transportation construction management is positioned within the political, economic, and technological structure of your country. Please comment on items such as owner structure, market structure, market competition, contractor associations, funding structure, and the roles and responsibilities of the other primary stakeholders in the transportation life cycle.

Staffing

• Describe how staffing and workforce issues in your agency affect the construction management of projects.

1. How do you ensure that a high-quality staff is present to accomplish agency goals?
2. To what extent are you using consultants in the management of program design, construction inspection, and material testing?

Project Delivery

• Describe the primary project delivery method in your country. In the United States, we primarily use design-bid-build delivery, in which a complete project design is used to procure a contractor through a low-bid process under a unit-price contract.

1. What is the approximate percentage of use by dollar volumes for the following project delivery methods: design-bid-build, design-build, performance-based contracting, concessions with long-term agreements and operational periods, public-private partnerships, others (please describe).

Procurement

• Describe how your procurement or bidding methods support the construction management process throughout the project life cycle.

1. Do you prequalify contractors or use past contractor evaluations in the decisionmaking process of future bidding privileges? If so, describe the process and selection factors.
2. Do you select contractors on the basis of low bid or a combination of cost and other factors? If so, describe the process and selection factors.

Risk Allocation and Management

• Briefly describe your risk allocation and risk management process in the control of work on projects, including the relationships/responsibilities of the owner, consultants, testing services, prime contractor, and suppliers.

1. What do you do to identify and address risk in the construction process to ensure that legal and financial responsibilities are assigned to the appropriate party?
2. How do you manage high-risk issues (utility coordination, right-of-way procurement, environmental permitting, etc.) to eliminate/reduce their impacts?

Construction Aspects of Construction Management

Contract Administration

• Describe the organization of day-to-day responsibilities for management of construction contracts, including the responsibility/authority level of contract administrators, tracking of project progress, project payment determination, project stoppage issues, and project closeout processes.

1. What is the basis for determining the dollar amount when calculating acceleration costs, liquidated damages, incentives, disincentives (e.g., agency construction management costs, road user costs, delay costs, detour costs, private inconvenience costs, etc.)?
2. What methods are used to allow the contractor to change construction concepts during design or construction for the betterment of the project?
3. Are there limitations on subcontracting, such as self-performance requirements by the prime contractor, maximum subcontracting, tiered subcontract issues, etc.?

Quality Plan Implementation

• How does your country ensure high design and construction quality of the finished product?

1. Are contractors responsible for developing and executing formal quality control plans or does the owner specify the plans in the contract? If so, please describe the advantages and disadvantages of the process.
2. Describe the primary method used to assure that materials meet contract requirements. Are acceptance (assurance) tests completed as work progresses, or end result?
3. When quality standards are not met, what remedies are used for substandard work? How do you differentiate between nonconforming (not meeting a standard) and unsatisfactory work?

Contract Change Processes

• Describe the requirements and methods for identifying, quantifying, and documenting contract change impacts on time, costs, and quality of work.

1. What is the approximate average contract growth for your projects (as a percentage of total project construction cost)? How do you calculate this percentage and what are the primary causes for this growth?
2. How does the contracting agency substantiate the cost of change order work?
3. How are contract changes managed to eliminate/reduce their impacts?
4. Describe process and the levels of authority for approving changes.

Project Record Keeping

• Provide an overview of your project documentation requirements, including the parties responsible, for progressive inspection, testing, progress payments, project closeout, and final audit.

1. Provide examples of how you capture trends to help improve your processes.
2. Please describe the use of information technology in your system (e.g., use of the Internet, electronic databases, handheld devices for inspection, etc.).

Third-Party Communications

• Describe your processes for public information and third-party communication, including public construction updates and coordination of third-party construction (utility relocation, local agency improvements, rail crossings, etc.).

1. What methods do you employ for notifying the public of construction activities?
2. How do you determine contractor time extensions and additional payments due to third-party delays? Do you seek reimbursement from the third parties for delays, and if so, how successful are you?

Environmental Monitoring

• Describe the process for dealing with environmental issues that arise during construction, including noise, vibration, dust, and water quality.

1. What role does the contractor play in environmental permitting processes?
2. How are project environmental requirements defined? Are end result standards established, or method requirements specified in the contract?

Project Maintenance Requirements

• Describe the responsibilities of project maintenance during construction, including the contractor’s and owner’s responsibilities for existing or adjacent facilities.

Postconstruction Aspects of Construction Management

Maintenance and Warranties

• Describe the typical involvement of the construction contractor with the maintenance and operation of facilities it constructed.

1. Do you use project warranties? If so, please describe typical products warranted, warranty periods, and corrective actions required.

Process Improvement

• Describe how new knowledge is captured during the construction management process and how it is used to improve the process on future projects.

1. What process measurements and performance indicators are used to evaluate and improve your construction management process (e.g., contract cost growth, contract time growth, etc.)?
2. What aspects of contractor performance are measured and how are they used on future projects?
3. Have you found any innovative methods for incorporating private sector knowledge and suggestions into your construction management processes?