Managing Support Costsin Project Delivery

California Transportation Commission August 13, 2009

Richard Land, Chief Engineer

TAB 41

California Department of Transportation

Overview

• Project Delivery

• Breakdown of Project Costs

• Managing Support

Preliminary EngineeringEnvironmental Clearance

Preparation of Contract Plans, Specifications and Estimate

Acquisition of ProjectRights of Way

ConstructionContract

Administration

ContractAdvertisement

And Bid

PAED

RW Cert

RTL

Post Cert RW Activities and Monumentation

Claims

Award

Closeout

PAED Support

RW Support

Construction Support

Design (PS&E) Support

CCA

Project Delivery

Breakdown of Project Costs

Support and Capitalexpressed in terms of a "Transportation Dollar"

Right of Way Capital5 cents

Construction Capital

69 cents

Capital Outlay Support26 cents

Breakdown of Project Costs

Support Onlyexpressed in terms of a "Transportation Dollar"

Conceptual Design and

Environmental2 centsDesign

9 cents

Construction Support14 cents

Right of Way Support1 cent

Support to Capital “Scatter Chart”

0%

10%

20%

30%

40%

50%

60%

70%

80%

All programmed STIP & SHOPP projects between $1-$100 Millionthat met a CCA milestone in FY's 2006-07, 2007-08, & 2008-09

Managing Support

Challenges:• Funding sources are volatile. A project may

have multiple funding sources, with differing requirements.

• Support budgets are built early in the project when scope may not be well defined.

• The Department has out-of-date management and information systems.

• Our cultural focus has been on schedule and capital cost, not on support costs.

Managing Support

Improvement Actions:• Increased accountability measures for

Proposition 1B Projects• Support costs added to Department’s

Contracts for Delivery.• Increased emphasis on managing project

delivery tasks (scope, schedule, capital costs and support costs)

 

Managing Support

Improvement Actions:• Replacing management and information

systems (E-FIS and PRSM)• Developing additional performance measures

for managing support• Incorporating support cost changes into change

management processes