Loading...
HomeMy WebLinkAboutAPA2501CONCEPTUAL DE'lELOPHENT the r.ycles the A!ternatives. Chart listing Concepts Considered. III. Points of reference. Minutes of the meeting Bechtel and Alasl-a Pm·.rer Authority staff~ October 981.1 charts of Cc~cepts Presented -through V, Minutes of the meeting Bechtel ansi Alaska Power Authority s taf November l l9HL; Including charts of Alternatives presented -through r~d IIA through IID. VI. Data presented to the .U'A on November 9. t 984 9 in "Briefing Book" shm:~dng ch,:=~rts of Altneratives and related information. VI. Memorandum addressed to Mr. Lee Nunn, Chairman of the Project Management Committee from Joseph L. Perkins of the Alaska Power Authority, dated November 9, 1984. 7208/082 elaborated in 1983 FERC the construction manager will transmiesion lines; license 11 has decided are finalized environmental to monitor March do hire staff needed. 1987 in accordance with CASE IIIo ow: ve A, B, G 1) 2) s i l i the owner of 50-60 ternative E. F, H: alternative ve G: rceived as a possibili ternative E: To As a matter of Authori po 1 i C) and C~1 1 not same rm. tional Al ve: An all-owner ternative should shown and ana then excl study. 2 - 0 r d I ' I, '~-.·· r ...... .,.4-"'' "-?" nn ~·larraat:mei''lt Contractor Oi recti on t'nnino~;r;:,,r. r,,..,.,+""""""''"'"' Direction ~::,..~,~ """'""''"~"'""'''''":r";~-t"'~ ,,..i .. inn Coordination F~10inB2r"iloo/IPm::un~lt Coordinatioo 't'Oic'll-ntM<"'ii'WI Coordinator . . o E plus EPOM Contractor SallE rn 1 es as Ventures ll in .. & Construction Policy Engineering Contractor Direction Engineering/Construction Coordination Engineering/Procurement Coordination Procurement/Construction Coordinator Eng i nEH<I" in~ Management Procurement Management Construction Management Alas~a Power Authori SUSITNA PROJECT MANAGfMENT PLAN DEVELOPMENT I. Ovmer is Project i"iH1dQer/Con:str·uction Manaqer EXEC!.. T I ON f G Conce t Joh1t Venture Contractor Management EPCM. E+EPCM · ... Susitna for individual weighting of alternatives .. l. Crawford J. Perkins vJ. Batt f4. Yerkes J. L. M. Isaacs B. Petrie J. Larson November 1 8:chte1: Susitna Management Plan R. R. s. R. the meeting outlining the work done since the last different charting used, and the fact that it is an He welcomed comments from APA. in describing the 4 level R. Seemel zation tional level wer:: made: the respective responsibilities of each attached copy of chart). The following comments Add Labor Relations, Risk Management, Environmental Policies, Land Acquisition, Power Sales/Utilities Relations Project Management level Add 0/M interface, environmental programme. Entitle one function: 11 Environment and Other Functional ia:lties". Functional Management Add "Environmental Compliance". Then R. Seemel briefly described each of the e·ight alternatives studied. (See attached list). Comments: 0 Show title and legend on the viewgraphs. o Explain the brackets. o Add a tur·nkey alternative. 7074/288/03/Fl R. Loder ained the criteria used for al te~ :1atives, that each of the Bechtel each of the alternatives and unanimous fQr the first three ces and He then the attached 1i R. Seeme1 went +"'"''"'""''"' the 1 ist of and di each alternative. attached lists}. Generally agree with choice number 1 and 2 and comfortable with ranking through 4. Choice number 1 -appears to have a clear and a good management information system. Also, the number APA would have is low. The fewer people on State that Bechtel consider the cost effect on the cost of the to increase costs. A alternatives is required for the Board. range of Authority staffing and poor t s of Bethte1 should the different l~ith Choice number 1, a question was raised about who ru:u•'f'nrmc: It ltJas mentioned that Ff.RC might see a prob'lem does both the QA and QC. With Choice number 2, a question was raised about who does contructabi1ity reviews? The CM doin9 such reviews was seen as an advantage compared to choice number 1. It was noted~ choice number 2 was similar to the organization used at Intermountain Power Agency (IPA) in Utah. At that time, the meeting was adjourned until 2:30 p.m. Meeting resumed at 2:40 p.m. Present APA: l. Crawford Bechtel: R. J. Perkins R. w. Batt s. J. Ferguson R. L. Prentice R. T. Loder N. Seemel Harwell Tripp Picard R. Seemel continued enumerating the pros and cons of various alternatives 1 through 4. .· 7074/288/03/Fl an o Use·bu1 et o Rather see o How to handle o of dam s a o Ho\!'J hancn e scope ._.,..,, .. u~-,. CM than rm. item. o Mentioned tho sequence hiring in choice number PM, then then CM o A rHnl'nnr:;HJP of management contractors sian of design neer firm. Fi o The State pay levels are not an absolute limitation, but itica1 consideration. o that scope changes be mentioned in the charts. o A unified management information system is a o Asked if choice number 1 could be started CM -then make a later decision on the CM col'i11Parlv or the same as PM). Response was 1Ji!l:)i·'~"'1li'at'l to where "Official Files" are to 0 reporting. in financial o Wants to be able to fix accountability on contractor. Wil not go for an integrated organization. o Finance fits well into either of the first two organizations - 1 or 2. 0 Lake project is managed under a·l ternative IA number for Susitna, but not necessarily ~o low a choice for a small project). It uses b permanent APA e plus two temporaries. Fairbanks-Anchorage Intertie is also alternative IA and uses 2-3 people. o .An estimate for Susitna of 200 people in APA and PM organizations (excluding CM) was mentioned. o Bechtel should present all the alternatives to the Board of Directors next week, starting from the bottom up, moving up the line quickly, and spending most of the time with the top two choices. Attachments as stated. RP/tmm 7074/288/03/Fl APA OWNERSHIP ORt;ANIZATION *Executive Manilgef'l~nt *Plannin<J *Finance 11 Arlninistration *OpP.rations *Projects 0 Environmenta1 1 i 1ancial 0 ~1oni tor Project 0 Public/Communi 0 Government Rel Licenses Pe rmi 0 lntergration with State/Regional Planning 0 0perations & Maintenance -------------------------------------------------------------~----------·---------------------------------------------------~ I I -------- I I GENERAL I ~1ANAGEMENT PLANNING I [OTHER l'J FUNCTIONAL CONTROLS I SPECIALIST\ 1 J I PROCUREMENT I fONSTRIJCT!ON fl LOGISTICS L_ . ----------------------------------------/--------- --I PROCIJRtM~iiT I ?1 LOGISTICS MANAGEMENT CONSTRIIr.TION I MANAGEMENT I I --------------------1-------------------- 1 PROCUREMENT/ LOGiSTICS CONTRACTORS CONSTRUCTION CONTRACTORS Project Management Responsibilities 6 ProJect Master Plan 0 Project Budgets and Schedules 0 Project Policies and Prn~edures, Criteria and Star.da rds °Cost & Schedule Controls 0 Management Reporti °Functional Contract Administration 0 tngi neeri ng/Procurement Coordi nation 0 Procurement/Construction Coordination 0 Engineering/Construction Coordination 0 Support Functions °Functiona1 Planning, Policy Monitoring aQua1ity Assurance ~>Environmental Compl~ance ------------------------------------------------------------- or_,.. ___ ~,: 1H::JJJCI...I. I <>cost & "Performance Assuri'P•Ce I, I J I l· I I I I .. I ~-.1 I L I I I I. ' ' I 1. !. I ' l I I·-i. -· ! ! . I I I 4 1----i 1 -t '· r _j I f ! + I r . i ·- ' l i I i I i l ! I I l I I ! I I ~-·· .; 1_. l I• .. I I I i l ~ ·-·· l i L. ! I . f .f I I -· I -!. l I ' ~ ; . i [ i '· I ' . i I . ! I -;· I· .. I I I ! ~ . I l ! ! I I ,. i I I I I I I I ~. i I -I i l l I I . I l I 1 1- I I i l I 1-j· f i I I I I I .. ·I I I ! - I I I I l I I I i" I I !·· i .. i I . I I i ! . i ! I i I I "' ! i I I l I ! I . i t. r· ; -i ! . ·f l· I . -··r . 1 I I -i I I _L I I !· ' I !' i I . "! .. J . -I . ! I 1 to in has to 1 oolc to one martaaeme!nt contractor ts.. No i''l"'::ll~~ni':~~i'i 1 11 ized the is owner can ts (i .. e .. , to d accoun.tab 1 Power Authori vement, aad Cost and seneau in 1 number 1 ,_ is less than in a r owner red .. ~ aw1agren!nt erJntrac f:ors is the 1 1 1 the next to the di is not clear cut -more other ans., to Oimi ni shed :i»il"'f'f"''·'1~'~+:~ as the owner tors ( & 1 s J,iii th El!M~~•I!\'l• net te!n:e!d and are lflllt1ne:(il Pi'i'il~~'tmilt'l!l!!~.a sources .. s net as as '7ll!IT"I!I'llll'\l and ll'llam,fth<i!1 is a 8 ternate Few checks and 1ty ttl SCih~So of te€1tm sunm~~~~ (which could problems with mobilizing and then ae .. ·mtn::nl significant under this lack of and controls. Hi~~ A 1 tev .. nill I· i \ --------------------------------------- .. ' Execu ive Man *Planning *Finance Adninis *Opera.tion *P cts t ~RO.~UREMEf(I'/-_ { t:OG I iC.ONTRACT .,_........._ fxecuti na *Plannin9 *Fina ce ~ Adn ni at *Op rat ons Project I J I i I -------~ *fxeco ive n Pl nning *Fin n c ~ Adntnt tr *!lpP.ra ons *Projr:c ENGINEERING ·.·, ... ,CONTRACTOR ( S J IEFING u APA OWNERSHIP ORGANIZATION ~------~---------- I GENERAL *Executive Managenent *Planning *Finance & Arlninistration *Oppraticns *Projects 0 GG·:iernment Jlnnr•·n,-'l 0 Right .. of-Way 0 Power Sales/Uti i oproject Management an 0 Management Contract Administration 0 lmplementation Contract Approvals 0 [nvironmental Policy 0 0percbility/Maintainability Reviews 0 financia1 Resources 0 Monitor Project Management Performance 0 Pub1 ic/Community/t1edia Relations 0 Government Relations 0 lntegration with StateiRegiona1 Systems Planning 0 0perations & Maintenance . ) NANAGEMENT Project Mana ement Responsibilities OOwnersh1p Eng1neenng Coordination' (including Operations PLANNING ENVIRONMENTAL !'t r,:; n OTHER CONTROLS SPECIALISTS '---------- 1 I & Maintenance Considerations) 0 0wnership/Procurement Coordina~ion 0 0wnership/Construction Coordination 0 Project Master Plan 0 Project Budgets and Schedules 0 Project Policies, Procedures, Criteria and Standards °Cost & Schedule Controls 0 Management Reporting °Functiona1 Planni11g, Policy Mon.toring °Functional Management Contract Administration 0 Engineering/Procurement Coordination oProcurement/Construction Coordination 0 [ngineering/Construction Coordination ENG! 0 Support Functions (Labor Relations, Legal, Insurance, Etc.) N::J PROCIIREM~ ?. CONSTRIICT ION LOGISTICS L 0 (/uality Assurance ---------------I ~------------------------------------t=---. ------~ ~~: ~~~:;"-:~ ~~:~:~ ~~;e-s~:: s-i~ ~; 1 :i e ~------------. ------- '----------.........__ I [ UH;!NEERIN(;l PHOCUREr~[JENT ~,ONSTR!ICTION ~1 oContrac~ Admin1~:r.::tlon t1ANAGEMEtlT I ?, LOGISTICS t1ANAGH~ENT oinspect.1onjQual1ty Control Mflt~AGF.MENT -oCost & Schedule Control L_ ______j Pe;--fonnance Repo.·ting _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ________________ 1 ________________ T _ . __ . _ _ _ _ _ ~ [ n ~ i-r~ ~~~ ': t~ ~ C ~mp 1 i an c_e ___________________ _ OESIGN FNG!NEER r-------' I l PRo c iJr~ E NT 1 ! --c-o~~ r ( o ~~---1 I LOGISTICS I C:ONtRALfOR<; I LNTRACTO~_j J °Fabrication of Equipment olnfrastructure Operation oconstruction & Startup ·". f.~fiCIENCY + + lTV D!EfiCIEMCIES TO ELIMINATED BY SPECIAl .,...,,. .. ,.... OVERSIGHT, CoriMITTEES, II ETC. DESIGM ENGINEER P~OCUREME'14T/ LOGISTICS CONTR"ACTORS CDMST~UCTION 0 0 MJiNil.~~NT ACCtlJNTABILITY - -MAXIMIZED BY &lA..()'{MFNf OF COOROLS -OPTIMIZ8). <UNIFIED COOROL PARTICIPATION LESS THAN IN FUI.l Y INTEGRATED CHECKS AND BALANCES -Glf£R C TO ASSURE CHECKS ANJ BAL~NCES TECHNOLOGY TRANS'=ER TO ()lrf:R LESS THAN IN RJLLY INTEGRATED ORGANI.zt\TION 7104/018 0 0 Management and Techni ca 1 E.xperti se This alternative likewise permits maximization of the expertise brought to the project. Selection of an experienced fiMm with a proven record on like projects can permit assignment of qualified personnel with proven track records. This reduces the risk to the project of depending on relatively inexperienced personnel to into the jobo 11 Impact on Ow:1er Organization (Staffing) This alternative~ although requiring more owner involvement (and staffing-up) than the "turnkey" approach where he exerts effectiv ... ely no operational control, represents an ~timization of his resourcese The owner is able to exercise control of the Project Manager's operations through a relatively small cadre who monitors the PM/CM's operations. These cadre represent the interface between the PM/CM and the "Owner" and this interface exists 7104/018 to one mcu1agie:m1ent: • No can be the ..,~i'fl!ll!l•1" Miana1geimer1t .... mruu''''~~"5 '~"1 '"1111' under the philosophy Contractor or supp 1 i er I i nsta 11 er wi t~~oe... t the .;iii! rnlnlli'T'n,,"" r:a_,,c,~• Manager or its desigmsted ""'""'ft'li'\l'OA continuous verification of 1ty of ~1'\~~~I~'IN"f'l!ll! plant and in the forms, gradation of fill millllt'f''I!!UI"~~a emt,ankmE!nt work, embedment, a 1 i gnment and job contractors before allowing any one contractor to OWner, through its management cadre quality assurance staff can directly monitor this program at the site$ ~roject Controls and Management Information Systems The selection of a single management firm to manage all of the proje~t should result in emplacement of compatible controls systems at a11 working levels of the project .. 1·he only int!!rface then becomes the establishment of the inte~ f.ace between the ..,,..JR."ll!ll!.t'·? Manager's control systems and the Owner's reporting and mat1agrem1ent information system. (NOTE: In all probability, the Project Mal~ace~r who is selected will possess a completely integrated project controls reporting and management information system proven on previous projects. The Power Authority may want to consider 7104/018 \. 7104/018 the s ,.. __ ........... _ .... , the Sus owner ted s 0 MANAh~NT FUNCTIONS ENHANCES ACCOUNTABLE FOR STAFF IN EFFECTIVElY CONTROL PROJEcr 111ROUGH A EFFECTIVE QUALITY CONTROL BY . EXPERiaeD SPLIT OF MANAGEME.NT BETWffJ\! ThO ORGANIZATIONS CAN CREATE PROBLEMS (EXJVIlPLE: QUAlilY CONTROL AND QUALITY ASSURANCE, CONTROL & REPORING SYS1tJ'IlS) UNIFICATION OF PROJECT CONTROLS SYSltJ'IlS-POTENTIAL DIFFIQJLTY OWNER PARTICIPATION LESS THAN IN FULLY INTEGRATED ORGANIZATION TECHNOLOGY TRANSFER TO OWNER, LESS THAN IN FULLY INTEGRATED ORGANIZATION The creation. of an organization from t~ro firms ... one is responsib1 e for engineering and the other resoort- sib1e for construction management, will tend to enhance a """'!;"'"";;) anrl balances between the engineering and the nw,,.u.I"'~Dn'o"·t>l ti on a c::ti viti es ~ Project Accountability As with the first choice alternative, the owner can 1 oo k to others to hold accountable for project results. However, the existence of a separate CM contractor diminishes the accountabi li ";y· of the project management contractor. Impact on_Owner Organjzation (Staffing) Likewise ease of staffing for the Power Authority is maximized. Mobilization and demobilization problems are minimized because of the relatively small PO\'Ier Authority staff required. Compared to the first choice alternative where total responsibility is awarded to a single management organization, the interface between the 7104/018 between for interface di re r>esotn<>ee~$ to mar1ag1! .. an organization created from two di ma11agren!nt will growing pains unti 1 l su·n to work coordinate their respective of th increased intercession by the fferences.. Als~, the owner•s proximity Construction Management function is not as Number 1 in view of the fact that the Ol.11ner functions at project management level. Consequently, owner involvement in construction oper·~tions decision making is necessari1 more remoteo (NOTE: The construction management contractor could up to three times the number of people fumi sned b,1At~:~h;e .... ~~~ management contractor. This cm.c1d make the nuuuageme~n contract the most lucrative. This could potentially have undesirable effects on the bidding for these ). Cost and Schedule Control Cost and schedule control could ;Jotentia11y be as effective as in the number 1 choice.. However, some conf1 ict i:. inherent in the joining of two different control approaches. 7104/018 7104/018 PROCURE}fEMT/ LOGISTlCS CONTRACTORS SPLIT RESPONSIBILITY BTORT ACCEPTS ProJECT MANA<Hf'.NT ..................... ~ 7104/018 Project cost and schedule control should be as effecti second choice alternative, providing that the proven met:noc~s different management contractors can be successfully quality Control 1 This alternative should permit effective quality control because access to experienced personnel from the Co11struction Mar1aaemE!nt organization .. Technology Transfer Owner personnel obtain significantly more project than in Choices 1 and 2, due to the fact that owner personnel staff positions in the project mar.ag~ment organization. 7104/018 Unlike the first two organizational choices ~~ to others ,for accountability for ternative ~ Direct owner involvement n mana~remamt team implicates the owner in r~~:nrn11~ • Likewiset the benefits of i aud nn,,.at"'.ll"'"' obtained from ar. independent overview group are not ""'l!ll~e:.Atl-t the owner directly participates in th! project management 7104/018 DESlGH ENGINEER P~OCUREMENT7 LOGISTiCS CONTRACTORS A ·o STAFF-liP BY CW£R REQUIRED PERSONNEL ADMINISlRATION OF LARGE INTd1RATED MllNAi~NT ORGPNIZATION·. REWIR8J OWNER CANNOT ·Lf.DK TO OTHfRS TO HOLD ACCOUNTABLE FOR MANAirf'ME!~ FEWER GIECKS & BALANCES IN INTEGRATED PROJECT MANAGEM:Nr ORGPNIZATION 7104/018 ma.r11agEm~es1t organization be identified Power Authority in the contractors who with and not through a .mddl eman .. '!:o the owner• s contribution to s ..-.. ......... ..,, ... organization in key positions, owner possible. g~ 1i.ty Assurance/Control The availability of experienced quality assurance personnel from a qualified outside firm selected to participate in the project management function assures the r~quired expertise in this tant function .. quality of the Management Organization. The quality· of the personnel and working efficiency of the manage- ment organization under this concept should be high.. S.el action of a11 experienced and well qualified outsiJe firm should permit assignment of high quality personnel to the job by this outside finn~ Id~Rlly, many of these personnel will have worked together before on otheu" projects and this should enhance early attainment of a smoothly w~'t'ie ing organization. 7104/018 The creation of an i , ment containing owner. as , res nlllllo~:.,.A.,_ personnel icies for s advancement, salary adMinistration for ~loy.ees of both organizations team, should be contro11 ed by this One of the key prerequisites for identity in the management organization is nel administration by that organization. Project Accountability Un1 ike alternatives where the owner contracts thi malllcH111!':!1mem: out to other firms, the owner is an integra 1 part of mcrnagement in this management organization concept.. Cone~all"inar'+ the owner cannot look solely to others to hold accountable project results. Likewise, the objectivity and independence obtained from an owner overview group (management cadre) is not present in this form of organization. 7104/018 . 7104/018 DESIGN INEER PtUJCUREMEHT I LOGISTICS CONTRACTORS Dl PERSCNE. SHOUlD BE MANAGEflfNT" ORGANIZATION OR.iANlZATION COO..ICATES DB-INEA'TION OF 01~R STAFF REOOIRBVIENTS GREATER lHAN MOST 011£R IN. TI£ PRQJECT' MANA L rrt OF OTHERS FOR PROJEC INVQVere.JT OF TIREE DIFFERENT FIRJVS MAY CREA1E DifTIQJLTIES INITIALLY 01Pir£R IMfOLVEMOO IN THE "PROJEcr MJ.\NAGflJENT'' RJNCTION MINIMIZES THE EFFECTIVENESS OF THE OiECKS & BALANCES ROLE OF 11£ COf'STRUCTION MANAGER 7104/018 Engage!Mt'!lt of an experienced technical 1ty assurance by the owner's project ma11~agem1ertt !l'\ll"n.::!l,ll'ioi'7!'1+"i control fs exercised by construction maf1tagE!m!B1t r~'!I''J"JI!iiii"'TI'!!Ii" involvement of specialized finns in both the ,..t\.lc:+1~u·+1tu!l llii:ule'lge- ment, as well as project management functions should assure act·fvity 1 s adequately staffed .. Project Contra 1 s Likewise, engagrement of a h'ighly qualified firm to provide certain technica 1 services penn its profession~ 1 schedu1 ing and cost control to the project. However, their successful integration into the balance of the project activities may be more difficult than in other on structures due to involvement of three different firms in structure .. Hiring of an experienced construction contractor and a tion of the use of personne 1 frorn the ca 1 services firm allow employment of experienced and trained people in most of the other· important areas of the project as we 11. 7104/018 y .. a nal!"<o:::nnli'11111i 1 to +av-llll~lo"i woo ld requi rt Av.eunt'e•.:lh ization of a 1 ""'''"·~···""-.zation, the owner retains ibi ma1nag1efi'N~nt and consequently shares the responsibility .. Ace ountab·l lity of others is correspondingly 1 nwAli"At~ Organizational Efficiency The staffing of the management functions with personnel from three different organizations who have not worked together before will ably create initial interface difficulties. Deve1 of i systems and procedures with which all participants can work wil difficult .. Checks and Balances The split of 11 Project Management 11 and construction management functions produces a certain checks and balances benefit in theory. However§ the fact that the project management organization is constituted of personnel effectively negates the Construction Manager's checks balances role. 7104/018 \. SEPARATION OF CONSTRUCTION MANAGBVENT ENHANCES CHECKS ANl BALPM:ES INTEGRATION Cf PRlJ COOROLS/REPOOING f~~NAffR Wffil PR MAN\GER POTENTIALLY O\f£R MUST HIRE SIGNIFICANT N91 STAff TO STAff ORlANIZATION OWf£R FACES DIFFICllT OBSTAO..ES TO HIRE QUALIFIED STAFF INTO AN EFFECTIVE ORGANIZATION 7104/018 -.;ac~nJt~!"te owner staffing of team personnel, a'F~rds the owner a arge measut>e of direct ...... ,.., ... .,.,.. the conduct f'""' the project. Construction Management Expertise Engagement of a qual if1ed con~truction management firm to nall"·~·l"l\W"~lill~ the construction ,management function pemits this function to be smffed with experienced The construction management function represents number of people as in the project management Checks and Sal anc:es The separation of the construction management from the balance ·of the "project management~., functions -enhances the checks and balances between the .. engineering and construction activities.. HOlil~ever the complete owner control of the project management function to diminish somewhat the effectiveness of the construction manager in the checks and balances role® DISADVANTAGES Project Controls The integration of the construction manager's project contra 1 systems with the contro 1 and reporting system of the owner's project management organization could be difficult. This could be exacerbated if the systems and repor·ting requirements of the owner are i ncori!patible with those of the construction management firme 7104.'018 7104/018 lffiK TO OTHERS malrti~IEmlelnt ~~ 1 ance ma.Bu:agrem!Trt ¥su'!lll"+'lln!!'iae! assures direct owner contro 1 1'\IA<!!olll'l!ii!<iP''it'IIIIUll of the an experienced services contractor to n~r"f"nli'om functions permits staffing with h in functions.. Their ccaplete i n+~~n•:!lll'll'~inn organization is ·flnportant and would the o'ltftr. DISADVA~TAGES Owner St! ff.ing The owner would need to hire over 300 additional staff in order to staff this project. The attendant problems to this staff-up, int-egration into a cohesive project organization and their eventua 1 demobilization would be fonni dabl!. Project Ac.EJ!mtabi lity Accountability of others for project results woold be almost nil .. The services contractor accountability would be low as the nature of this contract wwld be to furnish personnel to perform a functi m, rather than assignment of responsibi1i ty for the function .. 7104/018 s mffing and control of the entire ........... , .. """' .... m.ana1aemefl1t ofll' ..... ~ ...... ·~ ...... minimizes the checks and balances Detlflt!Em of the project management 7104/018 7104/018 . lll'l£11'!!~1,.; ma1r~agerm~nt .Ali"IUift'i"JI·mt>"it\11'11 and the time nll"'nlllfliH""T management Staff with In view of the fact that the project mar~1agE•r•t envisio~d in this alternative is an entirely personnel policies and administration should be s impl cCJrip~red to integrated management organization alternatives .. However, it is likely that the creation of a construction arm the Pow~r Authority which eoul d effectively quadrup1 e employ~ ~taff wruld have significant iawpact on the Power ity•s structure itse.lf, as well as its personnel policies and pay scales. . DISADVANTAGES 7 Pay ScaJ!! Exis"t;ing pay scales may not give the Power Authority the abi 1 to hire all the construction specialists required in the marlagenu~nt organization .. Organizational Efficiency Creation of a complete project management organization by the owner from the ground up, will produce a group of individuals who have not worked together before. Likewise, they will not have a shared ~xperience wort ing with common systems and procecho~res.. The required to mold th!se indiv·iduals into a smoothly runr,,;ng team 7104/018 ORGANIZATIONAL OWNER 8<EUS LESS DIRECT CHEa<S &··BALANCES PRACTICAlLY .,.. .. ,.-., ... · RELATI\tELY lmtE PfWECT EXPERIENCE OBTAINED BY UNTENABLE CONlRACTING POSITION FOR 7104/018 . A,>!llll'~~~m<!i<~~e exce 11 ent t"nni'P'n a .... + ..... a of an &YI'Il&W'•"iAII'ilfOG!!i,I'JI CiOns;tnt.~ct:orjfma:na~:rer hydro projects wi1 , in lft<!\UI'll+lill+<tr"'ft of proven control systems could be as good as in the ee .. -Quality Control Quality Assurance/Control could also be high for the same reasons as above. The unification of the quality assurance and control functions within the same organization may reduce the potentia 1 checks and balances feature which exists when these two i'IUU"'+'~~~"'e are perlomed by different organizations. This may be to some extent however, by improved harmony ivt the operations of an t>rganization which has been brought to the pro,ject 11 intaet". ... Unified Project Accountability Accountability (as well as responsibility) for project results are more completely unified in this alternative than in any of the others considered. The owner holds one firm accountable for all aspects of the project~ 7104/018 pr1ncipa 1 disadvantage of that the Owner exE:rts relatively Most decision making is MOJ1i'b)r.1ng .of progress disadvantage may a 11 nec.Lfrom this form of project t\ll'>fltJIIIMO~~"JII4i""i o · · Checks and Balances 0 C~p1ete1y: .unified project organization under one firm wii 'lout sign~ficant operational participation by the owner the potential for checks and balances within the project (particula~ly between th~ engineer1ng and construction i~h~ology Transfer Relatively 1 i ttl e project experience i s acquired by owner o~r·'!;ow·un~ under this organization concept for obvious reasons. Contracting '17urnkey 11 Contract Letting a "tumkeyu contract for the Susitna project woold a di1emJM.. Due to technical uncertainties in several areas the project, bidders for a lump sum contract would be obliged to i.ncorporate significant contingencies in their bids.. In :~dition, due to the magnitude of the project, few lump sum bids are li Both of these factors work against realization of the ect lowest total cost using a lump sum "Turnkey" approach., 7104/018 7 TELEPHONE NO: i'ut"l'f'hil!l~"" study before su~:ttv~.a 1 ~ ad()pted. +tll!!>~-s+•h•• 1 ... Contractor Pwlvi,fi~D~ 2 ... Project and Construction MarllagEBvrt r"i'ilfi'il"'ll'>:illlli"<ta!l'ft Separately; Alternative 5 ... APA Manag~nt ~ugmented by ca"11'!!'lli"illlet~~ti and Construction Manag~nt. {For W!Or'e detailed descriptions of the A1tematives1' see Bechtel Briefing Book.) The Conmittl!e wi11 study the three selected orgcmizational options • over th~ next few and wi 11 meet again bef'lre the December Board of Directors meeting to formulate a recommendation which struct•Jre is the optimu~ approach. At the December , the Committee wi11 its recommendation and the Board w111 at that time to ly approve the recommended ap.proach .. The Committee that Bechtel should proceed during the next month with the development of policies and organizational t·•equirements which are common to a11 three approaches. This will allow a minimum of dis- ruption in the schedule for preparation and completion of the Martiage!mtrlt Plan. cc: Javid Allison, Esq~ Esther Wunnicke, Commissioner, Depart~nt of Natural Resources