Project Management

Richard Ravin

NAU MBA 2006

Agenda

Background Current Position

Home Building Business Project Management vs. Program Management Scope and Budget Examples Scope & Budgets Exercise

Background

School University of Oregon (Philosophy) Northern Arizona University (MBA)

CAPM 2005 (Project Management Institute)

Work AT&T Wireless

Project Manager IT software implementation Shea Homes

Field Manager Land Development Manager

Land Development Manager

Outside Responsibilities Dirt to fully improved lots Landscaping Amenities Offsite projects

Bridge building Road building

Land Development Manager

Inside Responsibilities Home Owner Issues Cash Flow Budgeting

1 million dollar monthly budget Scheduling

Tracking projects Tracking homes sold

Projecting Future Lot Needs

Home Building Business

Market Conditions Bursting bubble Slow sales Dropping prices

Market Outlook Sales picking up but people can’t qualify for a

loans About 18 months until business starts to grow

again

Project Management vs. Program Management

Project Management Single Project Project performance is

evaluated by: Budget Schedule Quality

Single project manager managing other project managers or employees

Program Management Multiple Projects with a

Single Monetary Goal Project performance is

evaluated: Contribution to overall

performance of the company

Schedule as a function of capital expenditures

Manager managing other project managers or general contractors

How I use Scope Statements

To gain understanding of project goals As a tool for contractors during bidding

process Part of the contract that contractors must

sign Conflict resolution

Scope Example Liberty Island Section 1 –Bridge Demolition, Stream Bed Grading, Waterline extension and

Pavement overlay Scope Provide all labor, equipment and materials as required to perform “The Work” in

accordance with contract drawings for Liberty Island Rd. (Note- the work will not include the full improvements of Liberty Island Section 1. It will only include installation of the waterline, bridge and pavement overlay

Additional scope requirements Clearing, Grubbing and Demolition - The removal and offhaul of all street improvements,

pavement, fencing walls, fencing, bridge/culvert structures and miscellaneous structures as shown on the contract drawings. Also, included within the scope of Clearing, Grubbing and Demolition will include the installation of all restriction fencing.

Waterline– The installation of a new waterline per the updated plans dated August 13, 2007. This will include the placing the waterline within the Trilogy at Rio Vista Golf Course. Replacement of cart path and restoration of ground cover disturbed during waterline placement.

Road Section Overlay- Widen existing road way per soils engineers report dated July 19th 2007. Conform new roadway to new bridge elevation. This work will also include existing pavement dig outs to accommodate smooth road surface at completion. Install new drainage features along the side of new road to maintain drainage

Budget Process

Entitlement Budget Engineers Estimate Bid Process Reevaluate and Update Entitlement Budget Tracking Using MS Project

Engineers Estimate

ITEM UNIT QUANTITY COST/UNIT EXTENSION TOTAL

LANDSCAPE PREPARATION

Demolition SF 1,200 0.25$ 300.00$ Earthwork/280 cu yds (precompact) SF 15,000 0.35$ 5,250.00$ Shrub Prep SF 6,500 1.50$ 9,750.00$ Top Dress SF 6,500 0.50$ 3,250.00$ Fine Grading SF 15,000 0.35$ 5,250.00$ Landscape Drainage SF 1,200 2.25$ 2,700.00$

Sub-total 26,500.00$ 26,500.00$

LANDSCAPE PLANTINGTurf Area with Irrigation SF 900 3.00$ 2,700.00$ Planting Beds/with irrigation SF 6,500 5.50$ 35,750.00$ 24" Screen Trees with Stakes EA 31 300.00$ 9,300.00$ 24" Shade Trees/Grates/ with Stakes EA 28 600.00$ 16,800.00$ 36" Accent Trees EA 0 750.00$ -$

Sub-total 64,550.00$ 64,550.00$

Bid Process

Bid Tab Comparison Bid Submitted By: Dan Smith

Extended Extended (OVER)/UNDER

Item Description of material and/or services Quantity Price Unit Price Quantity Price Unit Price BUDGET

1.          Mass Grading2.          Moving Dirt3.          Finish grade pads4.          Lot Development5.          Sewer6.          Storm7.          Water8.          Joint Trench9.          Joint Trench Pull Wire / Equipment10.       Finish Grade - Balance Streets11.       Subgrade12.       1st Lift of AB including curb & sidewalk AB13.       String / Layout Curb / Gutter/ form sidewalk14.       Pour Curb & Gutter & DI's& sidewalk15.       Sewer & Water Test & Inspection16.       Final lift of AB17.       Paved out18.       Striping19.       Retaining wall20.       Perimeter walls

Subtotal:Tax Rate of :

ORIGINAL BID BREAKDOWN

TOTAL BID - (OVER)/UNDER BUDGET

Contractor Title - Project ScopeBASE CONTREACT BREAKDOWN

JDE BUDGET

Budgets Cost Code Description Existing New Credit/

Budget Budget Debit

1) 010207 Engineering Design 454,872.00 454,872.00 0.002) 010810 Legal Fees - General 1,940.00 1,940.00 0.003) 031410 Mass Grade 285,025.00 285,025.00 0.004) 031420 Finish Grade 0.00 0.00 0.005) 031610 Erosion Control 96,390.00 96,390.00 0.006) 031710 Sanitary Sewer System 301,712.00 301,712.00 0.007) 031810 Storm Drain System 251,435.00 251,435.00 0.008) 031910 Domestic Water Syste 473,891.00 473,891.00 0.009) 032010 Dry Util Joint Trench 490,000.00 490,000.00 0.00

10) 032030 Electrial Deposite 319,904.00 319,904.00 0.0011) 032070 Telephone Deposit 10,431.72 10,431.72 0.0012) 032092 Telephone Reimb -10,431.72 -10,431.72 0.0013) 032110 Paving 461,087.00 461,087.00 0.0014) 032140 Striping 10,185.00 10,185.00 0.0015) 032210 Concrete 101,946.00 101,946.00 0.0016) 032620 Perimeter Walls 139,200.00 139,200.00 0.0017) 032625 Retaining Walls 84,000.00 84,000.00 0.0018) 032635 Entry Gates 0.00 0.00 0.0019) 032810 Land Warranty Reserves 33,983.00 33,983.00 0.0020) 032820 Lot Maintenance 3,139.00 3,139.00 0.0021) 040240 Special Inspections 75,485.00 75,485.00 0.0022) 040320 Municipal Deposits 180,503.00 180,503.00 0.0023) 040380 Land Indirects Absorption 137,541.25 137,541.25 0.0024) 049100 Site Dev Contingency 95,220.00 95,220.00 0.0025) 090400 Bond Fees 26,415.00 26,415.00 0.0026) 100240 Kitchen Consult Reimb 0.00 0.00 0.0027) 100250 Dry Util Consult Reimb -319,904.00 -319,904.00 0.00

0.00

Total Cost Center 3,703,969.25 3,703,969.25

0.00Net:

MS Project Schedule ID Task Name Duration Start Start Float Finish Actual Start Actual Finish Predecessors% Complete

235 Phase 11 1163 days Thu 9/7/06 0 days Mon 2/21/11 Thu 9/7/06 NA 31%

236 Mapping Process 259 days Thu 9/7/06 0 days Tue 9/4/07 Thu 9/7/06 NA 94%

264 Contracting Process 65 days Mon 12/3/07 0 days Fri 2/29/08 Mon 12/3/07 NA 0%

274 Construction 776 days Mon 3/3/08 535 days Mon 2/21/11 NA NA 0%

275 Mass Grading 75 days Mon 3/3/08 535 days Fri 6/13/08 NA NA 0%

276 Moving Dirt 60 days Mon 3/3/08 535 days Fri 5/23/08 NA NA 0%

277 Finish grade pads 15 days Mon 5/26/08 535 days Fri 6/13/08 NA NA 276 0%

278 Lot Development 516 days Mon 3/2/09 350 days Mon 2/21/11 NA NA 0%

279 Sewer 9 days Mon 3/2/09 350 days Thu 3/12/09 NA NA 277 0%

280 Storm 9 days Fri 3/13/09 350 days Wed 3/25/09 NA NA 279 0%

281 Water 10 days Thu 3/26/09 350 days Wed 4/8/09 NA NA 280 0%

282 Joint Trench 16 days Thu 4/9/09 350 days Thu 4/30/09 NA NA 281 0%

283 Joint Trench Pull Wire / Equipment 11 days Fri 5/1/09 350 days Fri 5/15/09 NA NA 282 0%

284 Finish Grade - Balance Streets 7 days Mon 5/18/09 350 days Tue 5/26/09 NA NA 283 0%

285 Subgrade 9 days Wed 5/27/09 350 days Mon 6/8/09 NA NA 284 0%

286 1st Lift of AB including curb & sidewalk AB 8 days Tue 6/9/09 350 days Thu 6/18/09 NA NA 285 0%

287 String / Layout Curb / Gutter/ form sidewalk 5 days Fri 6/19/09 350 days Thu 6/25/09 NA NA 286 0%

288 Pour Curb & Gutter & DI's& sidewalk 6 days Fri 6/26/09 350 days Fri 7/3/09 NA NA 287 0%

289 Sewer & Water Test & Inspection 8 days Mon 7/6/09 350 days Wed 7/15/09 NA NA 288 0%

290 Final lift of AB 4 days Thu 7/16/09 350 days Tue 7/21/09 NA NA 289 0%

291 Paved out 19 days Wed 7/22/09 350 days Mon 8/17/09 NA NA 290 0%

292 Striping 5 days Tue 8/18/09 350 days Mon 8/24/09 NA NA 291 0%

293 Retaining wall 60 days Tue 8/18/09 685 days Mon 11/9/09 NA NA 291 0%

294 Perimeter walls 70 days Wed 5/27/09 734 days Tue 9/1/09 NA NA 284 0%

295 PG&E Inspection 2 days Tue 8/18/09 737 days Wed 8/19/09 NA NA 291 0%

296 PG&E heat up phase 5 days Thu 8/20/09 737 days Wed 8/26/09 NA NA 295 0%

297 Water / Permits Issuable 1 day Thu 8/27/09 737 days Thu 8/27/09 NA NA 296 0%

298 Walk with Contractor for punchlist 1 day Tue 8/25/09 350 days Tue 8/25/09 NA NA 292 0%

299 Complete Punchlist items 31 days Wed 8/26/09 350 days Wed 10/7/09 NA NA 298 0%

300 Formal Turn Over To Production 2 days Thu 10/8/09 504 days Fri 10/9/09 NA NA 299 0%

301 Build homes 130 days Mon 11/2/09 489 days Fri 4/30/10 NA NA 300 0%

9/4/07SOND J FMA M J J A SOND J FMA M J JA S

2006 2007 2008

Questions and Comments