Common Challenges in Project Delivery

A Note on Terminology… Owner / Client – The buyer, purchaser, receiver of services – Includes: Procurement Operations & Management Vendor – The “doers”… interchangeable – Could be… professionals/architects/engineers, suppliers, contractors, etc 2

3 Vendor 1 Vendor 2 Vendor 3 Vendor 4 Performance High Low Risk High Low Performance High Low Risk High Low Impact of Minimum Standards & Requirements Vendor 1 Vendor 2 Vendor 3 Vendor 4 Vendors’ Risk: not winning the job

High Low Performance Owners “The lowest possible quality that I want” Vendors “The highest possible value that you will get” Minimum A Difference in Perceptions High Low Performance Maximum

5

6 Group of manufacturers, engineers, consultants, and government personnel meet in subcommittee to set standards for a product type Physical tests are identified and selected All products of manufacturers involved are tested Test data is used to set standards ASTM Standard Setting

7

8 What Will Manufacturer ‘C’ Do? Standards motivate manufacturers to lower quality Note: ASTM Testing Replication

9 Specification Data Sheet

10

11 Dallas Independent School District “Circle of Life” Meaningless technical data & Price based award Poor quality products Bad applications Buy Best Value

12 Technical Information in the Traditional Environment Does not differentiate Does not predict performance Can be a source of risk Promotes an adversarial environment Moves performance lower

Challenges in Project Delivery What we have seen… 13

Challenges we have seen in the proposal process… Client Vendor Promises

Common Procurement Frustrations Marketing Information – cutting through the “fluff” of lengthy proposals Lack of project-specific information (supplier trying to sell the owner what they think the owner wants to hear) Can be challenging to justify selection Declining service performance over time 15

What we have seen… 16 Client Vendor Contract Negotiations What happens once the contract is signed???

“The Greatest Risk that I always face, is how to accomplish all of the things that our sales team promised we could do.” 17

What we have seen… 18 Client Vendor Client PM Vendor PM

What is different… Client Vendor Plan

What is different… 20 Client Vendor Client PM Vendor PM Plan

Comments / Questions W W W. P B S R G. C O M