Jess Albino Facility Advisory October 30, 2007 FACILITY ADVISORY COMMITTEE BREAKOUT SESSION 5 TURNER CONTRACT OVERVIEW October 30, 2007 CONVENTIONAL FACILITIES

Jess Albino Facility Advisory October 30, 2007 Turner Contract Overview Staffing Field Support: CM/GC: additional (Change Order Processing) 7 LCLS UTRs + SLAC UTR’s/SEM as required Trades vary between 120 and 150. Office Support: Field Office: 1 Project Office: 5 including estimating Changes in Last 6 months All UTR’s completed updated training class CF reduced field staff by 1 UTR Turner Safety Manager Roll-off Plan Roll-off plan detailed as part of Re-baseline effort All CF staff will roll-off LCLS accounts by June 2008 (except System Manager)

Jess Albino Facility Advisory October 30, 2007 Turner Contract Overview Team Building Several meetings with Facilitator Session 1: Project Executives Session 2: SLAC/Turner Executives Session 3: Project Personnel Modified Integrated Project Management Teams Established teams composed of SLAC and Turner personnel to address specific issues.

Jess Albino Facility Advisory October 30, 2007 Turner Contract Overview Modified Integrated Project Teams Schedule Prepare recovery plans Roles/Responsibilities Define lines of communication and authority levels SLAC Collaboration Project plan for coordinating activities with other SLAC groups Contract Clarity Obtain concurrence on contract requirements QC/QA Define roles and process for Quality Assurance Safety Establish requirements for Safety performance Change Order Process Define roles and process for executing changes in a timely manner.

Jess Albino Facility Advisory October 30, 2007 TEAMBUILDING – COLLABORATION A Partnering Meeting For the LCLS Project Daniel M. Jacobs, CPCM, CMC Facilitator

Jess Albino Facility Advisory October 30, 2007 TEAMBUILDING – COLLABORATION A Partnering Meeting Purpose of Meeting: To jointly establish the path to success for the LCLS Project. Desired Outcomes: 1. Identify key issues that could be barriers to success. 2. Identify key issues that can improve probability of success. 3. Establish path to success.

Jess Albino Facility Advisory October 30, 2007 TEAMBUILDING – COLLABORATION A Partnering Meeting ARTICLE 4 - PARTNERING In order to accomplish this Subcontract most effectively, the University intends to form a cohesive partnership with the CM/GC, the Architect/Engineer and, in the event option is exercised for Phase 2, sub- subcontractors, to ensure timely and cost-effective completion of the Subcontract. This partnership would strive to draw upon the strength of each organization in an effort to achieve a quality project done right the first time, within budget, and on schedule. It would include, but not be limited to, consideration of each other's interests and requirements; fostering clear, objective communication among all persons who are involved; development of mutual goals and objectives and strategies for implementation; and periodic objective evaluation to assure these goals and objectives are being met. SLAC/Turner Subcontract GENERAL PROVISIONS

Jess Albino Facility Advisory October 30, 2007 TEAMBUILDING – COLLABORATION A Partnering Meeting SLAC/Turner Subcontract A.The Construction Manager & General Contractor (CM/GC) shall provide all the required services herein established including schedule management, cost management, estimates of probable construction cost, value engineering, constructability reviews, pre-bid and bidding phase, environmental, safety and health management, and final installation of all conventional facilities construction. The CM/GC shall demonstrate proven management expertise with quality control, schedule and budget management for projects of similar size and complexity. In addition, the CM/GC shall provide efficient and comprehensive project management through all phases of the project, with particular emphasis placed on the capability to work in partnership with SLAC, consultants, and contractors during design and construction. SECTION CONSTRUCTION MANAGER & GENERAL CONTRACTOR PROJECT SUMMARY

Jess Albino Facility Advisory October 30, 2007 One of the most useful models for building a collaborative team is that developed by Roger Fisher and William Ury in Getting To Yes. This model consists of the following strategic steps: 1. Separate the people from the problem 2. Separate positions from interests 3. Create options for mutual gain 4. Look for appropriate criteria or standards TEAMBUILDING – COLLABORATION A Partnering Meeting

Jess Albino Facility Advisory October 30, 2007 TEAMBUILDING – COLLABORATION A Partnering Meeting SLAC LCLS Project Management Team: 1. Clarity of Roles & Responsibilities- SLAC/Turner 2. Surveillance Planning 3. Schedule 4. Compliance 5. Field Quality Control/Assurance 6. Configuration Management – Drawing Changes Top Five Issues 1. Resolve claim issues 2. Contract Clarification 3. Turn around submittals and RFI’s 4. Non-collaboration (No Teamwork) 5. Trust/Respect Turner LCLS Construction Management Team: LCLS Team Solutions

Jess Albino Facility Advisory October 30, 2007 TEAMBUILDING – COLLABORATION A Partnering Meeting Top Five Issues LCLS Team Solutions 1.Establish Integrated Project Teams (IPT): (1) Claims (2) Schedule (3) Roles/Responsibilities (SLAC/Turner) (4) SLAC Collaboration (5) Contract Clarity (6) QC/QA a. SLAC b. Turner (7) Safety (8) Teambuilding 2.Weekly Meetings (Jess, David, Bill, Mike) 3.Value Engineer Drawing Submittal Process 4.Enhance Communications Plan

Jess Albino Facility Advisory October 30, 2007 Turner Contract Overview Meetings OAC (owner/architect/contractor); weekly Review Safety Performance Review rolling construction schedule Review Tunneling progress Review FCO, COR, PCO Review Submittals / RFI Review Minutes Procurement meeting; weekly Review FCO, COR, PCO details Safety: daily at pre-task Review daily task Review Permitting Review JHA Review Safety

Jess Albino Facility Advisory October 30, 2007 Turner Contract Overview Progress for Invoicing: monthly Job Walk Review percent complete CF/Turner Project Exec: weekly Review Contract Issues Cost Schedule Staff Review Construction Issues Submittals Lab Coordination Permits and Approvals Coordination: as required

Jess Albino Facility Advisory October 30, 2007 Turner Contract Overview Cooperation Weekly Procurement Status to review: Potential Change Orders Field Change Orders Change Order Requests Contract issues (fee, markups, etc) Site visits Submittals and RFIs Structural Observations (by Jacobs) Turner site staff generally very cooperative and insightful with advice on critical issues and problem-solving. Legacy issues constantly arising Often appear as being reactive instead of proactive

Jess Albino Facility Advisory October 30, 2007 Turner Contract Overview Contract Issues Claims $4.5M under negotiations by attorneys Notice-of-Claim from Affholder under Turner review Turner’s potential claim for delays, etc not fully developed Fee Turner requesting higher fee for Change Order Work Withholding LCLS withholding $1.4M for CLOC from CM/GC fee LCLS withholding Turner fee from monthly invoice due to under- performance compared against approved schedule of values LCLS withholding disputed trade contract amounts

Jess Albino Facility Advisory October 30, 2007 Turner Contract Overview Financial Performance Comparison based on Turner’s schedule of values Schedule of values DOES NOT correspond to current Baseline schedule Actual financial percent complete significantly behind the physical percent complete. Change Orders Many potential change orders (PCO) logged Jointly closed out PCO for lack of information Require too much staff time to process

Jess Albino Facility Advisory October 30, 2007 Turner Contract Overview

Jess Albino Facility Advisory October 30, 2007 Turner Contract Overview Improved Processing of Changes Procurement authorized to process changes under $10,000 with CF-Tech Evaluation form Where negotiated changes are returned, Contract Administrator is authorized to close out without second technical evaluation Single person assigned responsibility for processing technical evaluations for CF. Works closely with Procurement to process changes efficientl

Jess Albino Facility Advisory October 30, 2007 Turner Contract Overview Safety Performance Turner’s numbers are unacceptable Safety manager under evaluation Site and project personnel talk the talk, but… Need corporate to intervene.

Jess Albino Facility Advisory October 30, 2007 Turner Contract Overview end of presentation