EST-2578 Estimating in step with Advanced Work Packaging (AWP) for enhanced project control Lakshmanan Simhadri Yogesh Srivastava Glen Warren
PLEASE USE MICROPHONE FOR ALL QUESTIONS AND COMMENTS! 2
BIO of Lakshmanan Simhadri President & CEO of www.PPEinternational.com Discerning company providing estimating services to: Owner / EPC / Module Yards / Construction Companies • Something You Might Know About Me: – Led several complex mega project estimates up to $40 billion TIC • Something You Might Not Know About Me: – Lived and worked in 4 countries in 3 continents; travelled to 123 cities in the world; absolutely love experiencing diverse cultures! 3
BIO of Yogesh Srivastava Global Director, Construction and Fabrication Solutions Intergraph Process, Power & Marine Delivering Success Throughout the Life Cycle of Your Facility with Integrated & Data Centric Solutions • Something You Might Know About Me: – Co-author & member of CII/COAA Research Team 272 that produced AWP Best Practice, Co-Chair of AWP Committee at COAA • Something You Might Not Know About Me: – Working extensively on sustainable development, technology for social causes and benefitting the society 4
BIO of Glen Warren “Industry Expert Emeritus” • Co-chair of the COAA Construction Performance Committee I have been involved as chair/co-chair of COAA committees for over 10 years • Something You Might Not Know About Me: I was co-chair of the CII Research Team RT272 that developed and published Advanced Work Packaging - which has been used as a guideline for implementing AWP globally 5
Agenda • Intro to AWP • Benefits of AWP • Enhancing cost & schedule certainty • Achieving superior quality estimates • Emerging technology: Impacts on Estimating • Questions 6
Advanced Work Packaging (AWP) • AWP is a disciplined approach to improving project productivity and predictability CWP: Construction Work Package EWP: Engineering Work Package IWP: Installation Work Package Source: Construction Industry Institute 7
Why Advanced Work Packaging (AWP)? 8
AWP gaining momentum Many owners and EPC companies are committed to AWP as the preferred way of project execution Oil & Gas and Mining & metals Chemical process industries Infrastructure Power plants Commercial buildings 9
How does AWP make a difference? Well planned execution with AWP Process: Conceptualize Path of Construction Project Data Base and Execution Basis early in aligned with documents anchored Front-End Phase by • Execution basis • EWP • Procurement & Contracting • EWP Strategy • CWP • CWP • Modularization • IWP • Path of Construction Consistent EWP and CWP designation across Define IWPs in 3D models/drawings/documents/procurement RFQs detailing phase Constraint free release for construction, minimizing idle time 10
AWP doesn’t automatically bring cost certainty Requires superior quality Estimate & Schedule in sync with EWP & CWP 11
ACHIEVING SUPERIOR QUALITY ESTIMATES 12
Budget and Schedule firmed up in Front End Need to produce predictable estimate & BUDGET schedule right at this stage Funding Approval Path of Construction 13
Achieving Predictable Estimate Include identifiers in estimate detail EWP and CWP numbers Budget Estimate in Procurement and Contract numbers step with AWP Coding for material, labor activities and other attributes Precise Cost Control basis by CWP from approved budget 14
Achieving Predictable Estimate Estimate quality determinants: – Good quantity baseline – Stratified MTO allowances – Current market pricing – Well assessed Productivity/Location Factors – Well structured coding – Detailed scoping of Direct, Indirect and all other costs – Well assessed contingency and forward escalation – Management of change 15
Estimate alignment with EWP and CWP MTO details need to include EWP and CWP numbers – Model downloads and manual take-offs should be identified with EWP and CWP – Supplemental quantities (e.g.) items not shown on P&IDs should be added using representative standard take-offs • such factored additions also carried out at EWP and CWP levels 16
Producing more complete MTOs Examples of interactive reports showing means of producing more complete MTOs: Small bore piping quantity Fitting & valves frequency review review 17
Documented basis for MTO allowances • MTO allowances should not be used as a means of making up for grossly incomplete take-offs! • No broad brush dollar allowances across the board! • Stratified MTO allowance – Progressively smaller allowances for larger sizes and for exotic material (expected to be better quantified in the base MTOs) • Documented rationale of what have been quantified well and what needs to be covered by MTO allowances Stratified MTO Allowances Sample Reports: & Rationale 18
Coding – Key to enhance estimate usefulness 19
Construction Planning inputs by CWP Construction planning group provides: – Planned start and finish dates by CWP and by Contract Estimating provides to Construction Planning: – Quantified labor operations by CWP and by Contract – Budget hours by CWP and by Contract – Breakdown of hours by Prime Account – Cost Control charts customized to Project Controls needs Construction Planning Inputs - Sample Reports: Visuals 20
Procurement and Contract Budget Reports • MTO details summarized by every Procurement RFQ (RFQ numbers mapped to code of accounts) • MTO details summarized by Contract (labor activities by code mapped to contract number) 21
Effective Cost Control Reports Desired Cost Control Reports derived from actual estimate details – Labor activity quantities and budget hours by CWP – Planned start & finish dates of CWPs – Precise budget info in the control base reports Deviations from budget values become apparent very early thus facilitating corrective action in time Performance Sample Reports: Monitoring 22
Comprehensive Estimate Reviews Estimate reviews are often compromised due to time constraints • Interactive estimate review reports provide pre- formatted info generated from details • Enables reviewer to drill down and scrutinize effectively Greater confidence and buy-in Sample Reports: Estimate Review Report 23
Predictable Estimates – Summing up.. More rigorous ways suggested in this presentation will drive cost certainty through: 1. Completeness in quantification 2. Obtaining project specific current market pricing 3. Proper assessment of Productivity/Location Factor 4. Coding of material, labor, RFQs and Contract for close monitoring & control 24
Predictable Estimates – Summing up.. • The basic principles need to follow through to Direct Costs, Indirect Field Costs, Home Office Costs and all other costs • Proper assessment of contingency and forward escalation are the last pieces of a predictable estimate • Keeping up with management of change 25
EMERGING TECHNOLOGY: IMPACTS ON ESTIMATING
Emerging Technology – Impact on Estimating Ability to process vast amounts of data meaningfully Intelligent reviews by Data Visualization Tools 27
3D Technology for Early Alignment on EWP/CWP Visualizing Engineering Work Volumes for EWP/CWP in 3D After WBS, additional & flexible hierarchy in the system Physical Subdivision Logical Grouping Deliverables Assemblies Blocks Weight & CG Hierarchy Hierarchy Blocks Workcenter Check Assignment Assignment Manufacturability Assembly Drawings & Manage Sequencing BOM Intersections Blocks Hierarchy Assemblies Hierarchy Outputs 28
Early definition, visualization and alignment Breaking and organizing the project from a prefabrication and construction perspective 3D Engineering Work Volumes For generating quantities with the EWP intelligence from the model 29
Further break-down 30
3D Model Intelligence 31
Engineering Work Volume (Block) Assignment Service – Parts are automatically assigned to the correct planning hierarchy level – Early indication of Quantity / Total Weight / COG 32
Future Developments • Model downloads with substantially complete MTOs at different stages of modelling • Can be achieved by intelligence built in to 3D modelling tools to supplement modelled in-puts with rule based additions 33
CONCLUSION
Foundation for Cost Certainty & Productivity AWP Based Execution EWP/CWP Cost Certainty 35
High performance through AWP work process Need of the hour for successful delivery of complex projects: “AWP driven Data Centric Execution” And “Predictable estimate” 36
QUESTIONS/COMMENTS? (PLEASE USE MICROPHONE) 37
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