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1999 A&E Perspectives

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1999 A&E Perspectives
November 18, 1999

Project management essentials

Winners give it a high priority and common sense approach

By MICHAEL D'ALESSANDRO
PSMJ Resources, Inc.

In today's heated economy and complex design world, project management has never been more essential to success. It's even more important for the small projects than the large ones.

Does the following story sound familiar? A client wants a design firm to complete a small project over a couple of weeks. In fact the project is so small, the client authorizes the firm to proceed with the work via fax authorization. The written authorization states that since the project is small, the design firm should simply invoice for the charges incurred with no limit on fees. The design firm is excited about the new work and views the time and expense, no limit authorization as a low risk project. The work is completed in a way that meets or exceeds the client's expectations.

Continuing education seminars at the UW College of Architure and Urban Planning

The concepts in this article are drawn from Michael D'Alessandro's "Project Management Bootcamp" series. He recently appeared at the University of Washington in a one-day project management program presented by PSMJ Resources, Inc.

The next series in the Continuing Professional Education program at the College of Architecture and Urban Planning at the University of Washington is entitled "Elements of the Building Envelope," presented by Simpson Gumpertz & Heger.

Four sessions, all held on Wednesday, December 8, include:

  • "Waterproofing of Plaza Decks, Garages and Underground Structures," with Kenneth A. Klein;
  • "Roofing: Life Cycle/Cost Benefit Issues," with Kenneth A. Klein;
  • "Glass/Metal Curtain Walls: Achieving Durability and Assessing Risk," with Thomas A. Schwartz; and
  • "Interior Walls - Concepts of Reliability and Consequences of Defects," by Thomas A. Schwartz.

The cost of the seminar is $300 per person. For more information about the program and other continuing education programs at the College of Architecture and Urban Planning, contact Lynn Firkins at (206) 685-8222.

The continuing program
Now in its second year, the college's CPE program has offered four day-long seminars this academic year that have been designed for architects and construction firms. Technical in nature, they cover building code, the building envelope, project management and moisture control and indoor air quality.

"A program of this stature satisfies a long-standing need in the Puget Sound architectural community," said Rick Meyer, principal of Callison Architecture in Seattle. According to Meyer, the program fills a gap between programs sponsored by the American Institute of Architects and the professional degree programs at the University; and they are being customized and developed at the request of the design community

In addition to these programs, program director Lynn Firkins is meeting with construction industry leaders, planning professionals and landscape architects to determine if there are continuing professional education needs that the college can help them meet. In all instances the college looks for guidance in the development of these programs from the professional community.

"Real, hard core education on the technical and practice issues of our profession keeps us in business. It is on this business foundation that we enjoy the artistic, the creative side of architecture," said Rich Wagner, principal in Baylis Architects.

As a way of introducing himself to the professional community several years ago, Dean Jerry Finrow visited professional firms and heard first-hand their concerns about the college and the professional education programs offered by the College of Architecture and Urban Planning. One of the things repeatedly mentioned during those visits was the need for continuing professional education. This was particularly true for architecture firms whose employees are members of the American Institute of Architects.

Since 1997 the AIA, through its Continuing Education System, has made professional learning a mandatory requirement for full membership and recorded it through a range of credits. The College of Architecture and Urban Planning is now a registered AIA/CES provider. All providers register with the AIA and submit program forms that are reviewed to ensure accuracy of program content and quality level.

As the Continuing Professional Education (CPE) Program continues to grow, it is hoped that multiple offerings will be required to accommodate all who are interested in attending. Last year Linda Brock, a forensic expert on cladding failure from the University of British Columbia, made a presentation in December that was repeated twice in March to accommodate demand. Attended by architects, construction managers, developers, attorneys and representatives from the City of Seattle and others, the seminars provided the opportunity for a good cross-disciplinary discussion of the cladding failure problems facing this region.

Information about each program is disseminated by email, to announce the program, and then faxed to give complete information about the program and registration. If your firm would like to receive information about our offerings, please contact the program director, 206-685-8222. Information also is available at the program's website. The college welcomes comments and suggestions for future offerings and development of the CPE program.

At the end of the two-week effort, the designer submits the work and the client is very satisfied. The firm then forwards an invoice for $10,000, with detailed documentation of all labor and direct expenses.

But the client is surprised by the $10,000. He thought it should be no more than $6,000. After all, it was only two weeks worth of effort. The design firm is committed to client satisfaction, and in the interest of retaining the client, the parties agree to split the difference and settle on $8,000. What was considered a low risk project has resulted in a $2,000 write-off!

A better balance

Most professional design firms view time-and-expense, no-limit contracts as having the lowest financial risk. In fact, financial data suggests otherwise, as summarized by surveys conducted by PSMJ Resources, a management information firm based in Newton, Massa-chusetts. PSMJ data suggests that time-and-expenses, no-limit contracts result in the greatest percentage of write-offs as compared to other contract methods. Why is this? Because of the lack of defined expectations. There is always a limit! A time-and-expense, no-limit contract simply means the limit has not been documented and mutually agreed to by the design firm and the client. Someone is sure to be surprised.

This was reinforced during a recent conversation with a representative of a prominent insurance company. This company is involved in underwriting professional liability policies for architects and engineers . When asked about the primary reason these professionals are sued by clients, the answer was not negligence, but rather the lack of a well-defined scope of work. The scope of work is the foundation of project management.

What is project management? Conventional thinking has it that it is practiced only by design professionals. Yet even for design professionals, project management has not received the credibility it was due. Often clients would not recognize its value as a professional service, and challenge budgets that included hours for project management.

In a break with tradition, project management has been increasingly accepted as a separate discipline in recent years. Nothing demonstrates this better than the growth of the Project Management Institute, a non-profit organization dedicated to the advancement of project management. PMI's global membership ranks have more than doubled over the past three years. Designers, clients, and owners alike are recognizing the value of project management and how weaknesses in project management can have dire consequences.

But often we fail to recognize the pragmatic elements of project management by embracing the theory of what it should be. Project management is the implementation of common sense and not a proprietary process of using forms, checklist and software. Forms, checklists, and software are simply tools to accomplishing the end result. Simply stated, project management is the process of defining expectations. Having established an appropriate understanding of expectations, the process involves establishing a baseline to measure performance during project execution.

How much should project management cost? As a general rule, it should represent 10 percent of the total hours for a small to medium size project. A small to medium size project represents fees less than $1 million. Larger fee projects will see project management hours less than 10 percent but rarely less than 5 percent. These hours should be used to complete the project plan including development of the schedule and financial baseline, periodic status checks of the project, and client liaison to understand expectations.

Should you add project management hours if you presently do not include these hours in your project budgets? Absolutely not! By investing these hours in good planning and tracking, you will see a savings in excess of those hours from improved efficiency and reduced rework in the project.

One proven tool for better planning involves preparing a project management plan. One could argue that the majority of the planning activities should be completed as part of the proposal process. Developing a project management plan then involves repackaging that baseline scope, schedule, and financial information and communicating the information to your team and your client. Typical contents of a plan include:

  • Goals and objectives
  • Scope (including copy of key contract terms)
  • Schedule
  • Financial plan (budget)
  • Team organization, resources and responsibilities
  • Quality definition
  • Change order process
  • Communications plan
  • Contingency plan

Our focus as architects and engineers tends to be the creative or technical aspects of our practice. However, the reality is that we must fulfill our passion within the confines of a business. How do we balance the need for profitability while at the same time meeting or exceeding our client's expectations? The key to accomplishing these conflicting objectives is implementation of sound project management techniques resulting in mutual agreement of expectations.


Michael D'Alessandro is an engineer and consultant with PSMJ Resources, Inc., specializing in project delivery. Prior to joining PSMJ, he spent 20 years in the design industry, the last 17 of which where with Parsons Engineering Sci-ence, a unit of Parsons Infrastructure & Technology Group.

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