1. Alternate Delivery Methods and Sharing Contract Risk
APTA - Business Member Board of Governors
Mike Robertson
Frontlines 2015 Program Management Group
Utah Transit Authority
January 11, 2008

2. Sharing Contract Risk Why do we contract? Who do we contract with?
Establish a relationship with others to accomplish work we cannot do ourselves
Who do we contract with?
Multiple entities who share a common language but have a different culture

3. Sharing Contract Risk Honest Self Assessment Box the Risk
Gathering the Right People
Order of Importance

4. A Good Start Goes a Long Ways
Honest Self Assessment
How do we want to work with our contractors?
What do we expect to accomplish?
What do we do best?
Where do we need help?
What problems can get in our way?
Box the Risk – define the problem and create the mitigation plan
Perform enough investigation/design/evaluation to understand the nature and size of the risk?
Who has the most to gain when the problem is solved?
Who can solve the problem at the least cost and time?
The Right People
Appropriate Delivery Method to acquire external needs (tailor this to your needs-not a set recipe)
Creative, Build Solution Oriented Relationships, Trusting, Experienced
What is it
How big is it
Who can best solve it

5. Self Assessment Why am I Using a Creative Approach?
Potential for Success
Why am I Using a Creative Approach?
It’s a mandate!!! (malicious obedience)
Process/Schedule/Budget – Dictates a change
We want to do more - Great things are accomplished by a group of people working together at what they do best. Maybe there is a better way!! (Gerber’s Strained Peas or Pumpkin Pie?)
Form of Motivation
Must
Should
Will

6. Self Assessment What are our objectives?
Positive Relationships w/Contractors and Stakeholders
Avoid Litigation and Costly Changes
Manage Risk - Coordinated effort
Value Engineering
Resolve Technical Complexity
Early Fixed Price- Increased knowledge at an earlier date
Shortened Schedule
Reduced Internal Staffing
Funding Assistance
Meet Political Ambitions

7. Box the Risk IMPACT Gather Information
Internal
Business and Project Managers
Designers
Contractors
Real Estate, Legal, Finance
Utility & Permits
Operations and Maintenance
Legislative Liaison
External
DOTs
FTA
Business Community
Cities/Counties
Utility Owners
AGC
Risk Assessment Exercises - Facilitated exercise with a broad group
Probability and Impact
Low, Medium and High
Start in the concept phase, End when the contract closes out, Refresh often
IMPACT
PROBABILITY

8. Box the Risk Assign Risk - Think like a business
Mutually agree on who can best solve the issue and has the most incentive to do so.
Create incentives where valuable
D-B-B provides incentive to contractor to increase scope and costs
Public Involvement on the University Line
Port of Long Beach - $6.8M instead of $600K
Access Roads w/UP – Quick solution w/low current and future costs
Flagging Costs – Lowest cost and partnered approach to mitigate probability of event

9. Appropriate Delivery Methodology
Objective - Creation of the Appropriate Relationships with all Parties
Establish Critical Factors for Success
Complete Self Assessment
Establish goals, objectives, interests, obstacles, etc
Define Contractor and Major Stakeholders objectives
Set criteria to measure success
Evaluation of Options
Brainstorm “Best Fit” Process - incentivises all parties
Is that approach legal? Can it become legal?
Have others tried it? Can I alter a known approach?
Will the approach succeed?

10. The Right People Managing Risk - Relationships and Contracts
“You can’t be bulletproof – Live in a safer neighborhood”
May be a culture shock to existing staff. Manage the change effectively
Pick the right contractor who can appreciate the owners interests
Work to help the other parties meet their objectives.
Corporate Identities Dissolve
Contract codifies the approach – use as a tool not a weapon
Share and Build Synergy

11. Common Success Stories
Business Improvements
Problem solving (Access Roads and Fencing costs)
Recognize the problems early
Define Responsibility and Authority
Regular events to address issues
Whole team works to solve or avoid all problems
Value Engineering (Ogden Bridge)
Weekly Event
Systematic Process
Share in Returns
Allow Time to set Cost and Schedule
Developed Cost and Schedule “envelope”
Establish goals towards the low end
Help everyone meet their objectives if you can “beat the target” – incentives
Attract the interest of the contracting community
Pay on time
Evaluate bonding requirements
Incentive programs

12. Common Success Stories
Build Synergy
Shared goals (University Line and the CCT)
Incentives may help
Co-Locate
Constant Communication
Owner/Contractor/Designer/Stakeholders in one location
Water cooler talk
Build each other up
Have some fun together
Celebrate Success
Awards
Access the Team
Work to provide new opportunities for growth
Everyone may not like Pumpkin Pie

13. Key Points
Figure out what you do best, Find the rest, and don’t settle for Second Best
Bring the right people to the project
Golden rule with all (no second class citizens)
Communicate constantly
Avoid/Solve problems effectively
Select the appropriate contracting methodology – Tailor it to fit your needs