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CMAA: CM Program Management Procedures

1.0 INTRODUCTIONThis manual discusses program management, which inthe context of the construction industry is the applicationof construction management to large and complexcapital improvement programs. However, programmanagement is not unique to the construction industry.Program management is frequently utilized inmanufacturing, pharmaceutical and industrial processesto direct complex activities. A program manager isgenerally concerned with managing resources andrelationships to achieve an owner’s desired outcome.Depending on the organization, program managementservices may be performed by in-house personnel orcontracted out.

There are many similarities between projectmanagement and program management. Both utilizeintegrated systems and procedures such as budgeting,estimating, scheduling and inspections to manage the design and construction process. Theprincipal difference between project management and program management is the size andscope of the projects, and the range of services required. Generally, a program manager isemployed to handle a large project, potentially with multiple facilities in different geographicallocations. The program manager may be asked to supervise or contract for a variety ofprofessional services. The program manager is often asked to manage seemingly unrelatedactivities, which may range far from traditional design and construction activities. Theseactivities may include assisting the Owner in securing financing for the project, leading orassisting public relations and legislative initiatives, relocation services, operation andmaintenance, and facilitating or purchasing a variety of products or services. The Owner’s needsand resources determine the scope of the program manager’s services. Owners with significantin-house expertise may not engage a program manager for “cradle-to-grave” services, butrather pick and chose services to supplement their resources and expertise.

Presently in the construction industry, program management services are provided by anumber of professional entities including construction managers, design-builders, designers,developers, and others. It is CMAA’s position that CMs are uniquely qualified to provideprogram management services for the construction industry. The construction managementprofession developed and flourished as a result of the ever-increasing complexity of theconstruction process and the need to mediate differences and coordinate activities betweenowners, designers and contractors. Generally, CMs, by their training and experience, possessthe knowledge, skills, and abilities needed for effective program management. In many cases,program management is an extension of traditional construction management services and thismanual discusses program management services as being provided by the CM.

Photo courtesy of MWAA


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An owner may contract for program management services in an “agency” or “at-risk”arrangement. In an “agency” arrangement, the CM is paid a fixed or cost reimbursable fee tomanage the contracts between the Owner and other professionals, i.e., architects, engineers andbuilders. The CM is not financially responsible for cost overruns or the errors and omissions ofother team members. In this arrangement, the CM acts as an advocate for the Owner.

In an “at-risk” arrangement, the CM may be paid in a combination of fixed fees, costreimbursable fees and guarantee maximum price with incentives to deliver the project. The CMcontracts for professional services directly and is financially responsible to the Owner for thecost of the project as well as the errors and omissions of consultants under contract to the CM.As a result of this arrangement, there may exist conflicting interests between the Owner and theCM. Therefore, the CM may not always be acting as an advocate for the Owner. It is imperativethat when using a CM-at-risk arrangement, the Owner and the CM structure their contract toavoid or limit conflicts of interests and an adversarial relationship.

As owners downsize to focus on their core functions, they are more likely to contract forprogram management services to satisfy their need for professional management of their capitalimprovement programs. The general approach in this manual is to stress those areas whereprogram management services differ from traditional project management services.

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2.0 SETTING UP THE PROGRAM MANAGEMENT ACTIVITY2.1 ESTABLISHING THEBUSINESS ADMINISTRATIONSTAFF AND PROCEDURESIn addition to quickly developing aprofessional technical relationship withthe Owner, the CM must also establish asound business foundation. TheProgram Management Team and itsphysical environment and operatingsystems should be established in amanner transparent to the Owner.Setting up the business end of a programmanagement activity is an intenseprocess that requires specialized skillsets including: accounting, humanresource management, procurement ofoffice space/furniture/equipment,management information systems, etc.

Using a separate team to establish thebusiness arrangements early in theprogram can be a decided advantage.It assumes the contractual businessarrangements are met in every respect and the proper controls are in place to establish a budgetand monitor funds and equipment from day one.It also ensures support is in place as needed and purchases are made on an economical basis.It ensures the Owner’s procurement desires and regulatory constraints are honored inaccordance with the program management contract. And it allows the permanent ProgramManagement Team to quickly step into an established organizational framework and beginconcentrating on its primary responsibility to manage the program.

2.2 ORGANIZATIONAL STRUCTUREProgram management is a dynamic process. It often changes complexion over time, as tasks arecompleted, new tasks started, problems encountered and with changes in the degree of effortsupplied by the Owner. This results in a variable staffing level that must be managed, housedand supported. The scope of services in the program management contract dictates the degreeof support that is to be provided by the CM. It is highly dependent on how much autonomy theOwner is willing to assign the Program Management Team, its physical location, and the level ofsupport the staff can expect from the Owner’s infrastructure. In some instances, the ProgramManagement Team is integrated into the Owner’s staff, while in others the staff might be totally



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self-supporting. The staff conditions should be spelled out in the request for proposal andnegotiations, to allow time for advanced planning. In addition to regulating the supportstructure, the degree of autonomy must be carefully decided since it has a dramatic impact onthe CM’s ability to provide the right people for each position. The degree of autonomy alsoaffects the amount of influence the CM has over the decision process.

2.3 OFFICE SPACE AND LOCATIONOffice location has a major impact on the program management process. It is usuallyestablished early in the process and may even be a deciding factor in the proposal evaluations.Many factors must be considered. Location is usually dictated by the activities in the statementof work and may be split into multiple offices over time. For example, construction support staffmay be located directly on the various construction sites while the planning and design effortsare collocated with the Owner. In addition, some effort may be best accomplished at the CM’shome office(s) to take advantage of its diverse labor pool and special support, often at a lessercost than permanently relocating those resources to the program.

Another consideration is whether to collocate in the Owner’s office space or into separateoffice space in near proximity to the Owner. The manner of managing the work force as“seconded” individuals or as an independent entity is the deciding factor. Both methods ofoperation, or some mix of these options, serve a purpose and should be carefully delineated inthe statement of work.

There are many advantages of separate but adjacent offices. The staff is distinct and costs ofutilities, communications, equipment and supplies are easily tracked. Security is easier tomaintain (physical and information). It is easier to adjust operations if the program is curtailedor cancelled. Separate space allows the CM the independence to apply new techniques andinstall the latest systems. Collocation also has a number of advantages; this option is especiallyattractive if the Owner has excess space available. The sharing of established supply contractsand procurement systems is less expensive and can be used whether collocated or not.Collocation can make coordination easier and more efficient. The common use of networks andcommunications systems reduces the time and cost of establishing new systems. Sharing ofcommon use spaces, such as conference rooms, avoids duplication.

Since staffing for program management is dynamic with significant peaks and valleys, it iscritical to select space that is flexible and expandable. The space must be tailored to thestatement of work, but sized to meet unexpected changes in requirements. Programmanagement entails a great deal of teamwork, and coordination. It is essential that space besized to include secured information technology (IT) and telecommunications support areas aswell as conference rooms that provide state-of-the art visual aids.

2.4 LOGISTICS AND FUNDINGThe decision to manage the accounting, purchasing, human resources, and other administrativeelements of the program from the CM’s home office, or directly on site, will be dictated by thedegree of support required and the size of the program. Reimbursement is handled as a direct

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reimbursable cost or as part of the built-in overhead (multiplied on direct billable salaries). Inlarge programs, these functions are placed under a Business Manager, who directly supports theProject Management Team. The Business Manager is responsible for tracking the businessbudget, as opposed to the program budget and normally has purchasing authority and fiscalauthority to disburse funds. Assuming adequate auditing and oversight, the CM is thus relievedof time consuming tasks that would otherwise distract it from its primary role of delivering theprogram.

Supporting a major team effort can be expensive. It is imperative that the business teamleverages its corporate buying power to get the best deal for the Owner. The comparison ofnegotiated purchasing agreements can often dictate which items are purchased through the CMor the Owner. The use of excess capacity and warehoused items can also provide significantsavings. The full gamut of support should be examined in this manner, including travel agents,communications (mobile and fixed), vehicles, IT technical support, mail and courier services,office equipment and maintenance contracts to name just a few. Judicious use of these systemswill dictate the proper balance of funding, either direct reimbursement or indirect fundingthrough purchases in-kind.

2.5 REPORTING SYSTEMIn either case, accounting for funds committed (direct or indirect) to the program managementeffort is vital. It is especially critical if support comes from a variety of sources. The CM’s reportto the Owner on its own operation must be carefully separated from the status of the programitself. This report should address the internal issues of CM budget, control of staff, schedule ofdeliverables and the quality of the CM’s response to the Owner. In addition to keeping close tabson the funds, audit responsibility should be agreed in advance.

2.6 MANAGEMENT INFORMATION SYSTEMSThe CM must quickly assess the level of sophistication of the management information systemsalready in place. A preliminary survey is conducted to review capability, capacity andcompatibility that can be expected in both electronic and paper based systems. The results ofthis survey should drive the decision to use the Owner’s systems, update and expand thesesystems, offer replacement or operate independently, with defined interface points. TheProgram Management Team is selected because of its ability to get the job done and thatincludes the use of sophisticated electronic software to track every aspect of the program,including scope, schedules, cost, quality, safety and the management decision process. Thisinformation must be concise, easy to understand and should channel back to the Owner in amanner that permits rapid response. It is best accomplished when the format is familiar and thereports are made part of the normal management process.

The cornerstone of information management is document control. In every large-scaleprogram, documents, including electronic mail, are a major part of the process. Every step inplanning, design, procurement and construction requires documentation. Not only for the day-to-day operation but also as an archive for technical reference and potential legal proceedings.


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One of the recent trends in the construction industry is electronic imaging of all documents andmaintaining distribution through a virtually paperless environment. This allows the Owner, theCM, consultants and Contractors to share information in a controlled, secure and real timeenvironment. If electronic imaging is not chosen for a given program, then a similar paperbased system must be established from the outset of the program as a basis for the reportingand reference. Whether paper based or electronic, the proper control and archiving of alldocuments is essential to the success of the program. The chosen system must work foreveryone involved in the program management process.

2.7 IDENTIFYING ADDITIONAL PROGRAM MANAGEMENTSUPPORT RESOURCES

Due to the size and complexity of large construction programs, the CM must be prepared toprovide a wide variety of resources on very short notice. Although most tasks arepredetermined, some may be generated as a result of circumstances beyond the control of theCM and the Owner.

2.7.1 PROJECT CONTROLSOne of the most important services that a CM can provide an Owner is project controls. Thisactivity varies in size, but typically consists of a manager and cost control specialists, schedulersand estimators. Project controls are intimately involved in the development of the program andtheir contributions should begin early in the program development phase by establishingindividual project budgets and performance schedules. As the program develops, projectcontrols produce and update project estimates for upcoming contracts and develop the projectschedules as individual projects are prepared for procurement. During the Design andConstruction Phases of the program, project controls apprise the Owner of cost and schedulecompliance or non-compliance with established baselines. These updates to the Owner can bedelivered in a variety of media forms, from simple monthly reports to more sophisticated on-line, interactive web-based reports. Additionally, project controls may be called on to providecash flow analysis for bond offerings. At the conclusion of a project, project controls willtypically develop the final costs for project closeout.

There are many procedures associated with a good project controls program. These arealready addressed in significant detail in the CMAA Cost Management Procedures and the TimeManagement Procedures manuals.

2.7.2 SAFETYConstruction is by its nature a hazardous activity and Contractors have primary responsibilityfor job site safety. However, recent trends in litigation continue to indicate that, under somecircumstances, Owners, CMs and Designers may have responsibility for safety of those otherthan their own employees.

The Owner, through the CM, has an “oversight” responsibility for the Contractor’s safetyprogram. Some federal agencies were the first Owners to perceive this need and enlist the

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professional expertise provided by CMs. Their reasoning was to become “proactive” and, in sodoing, try to manage this risk instead of relying on contract language that sought to exculpate orindemnify the parties. As recent court cases have shown, the lines of responsibility for safetymay easily become blurred; Owners and CMs cannot turn a blind eye towards safety.

The general conditions and special provisions of the construction documents should clearlyreference the safety requirements for the project including compliance with all applicablefederal, state and local requirements. The Contractor should always be required to provide andimplement a Job Safety Plan that addresses all aspects of the work and clearly identifies theperson responsible for overall project safety. The size and complexity of the project may requirea full time Safety Professional or team whose sole responsibility is safety. The Contractor’s JobSafety Plan should identify the Safety Professional and should be included in everySubcontractor’s contract. Every employee should be provided safety training and safetyequipment prior to starting work on the job site.

The Safety Professional’s duties should be clearly defined and, as a minimum, include:

• Providing safety training

• Regular safety inspections

• Enforcing accident reporting procedures

• Enforcing any disciplinary actions

There should be separation between production and safety accountability and the Job SafetyPlan should define that separation and show it on an organization chart.

CMs must bring a thorough understanding of federal, state and local safety laws to theprogram and incorporate those requirements into the contract documents, constructionmanagement plans and program procedures manuals. While Contractors are primarilyresponsible for their job site safety, “proactive” Owners may use CMs to:

• Review contractor safety plans

• Monitor the Contractor’s safety performance against the requirements

• Provide additional and independent safety inspections

• Stop unsafe work

• Require correction of unsafe conditions throughout the course of the program

No employee should be required, or knowingly permitted, to work in an unsafe environmentexcept for the purpose of making safety corrections and then only after proper precautions havebeen taken for their protection.

2.7.3 CONTRACT ADMINISTRATIONContract administration is an essential service CMs can provide to Owners. Theseadministrative services cover contract activities for each project in the program as well as


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projects in the Pre-Design, Design, and Construction Phases. Equally important is the PostConstruction Phase of a project. Contract administration has a major impact on the success ofthe program and consists of a wide variety of tasks performed to ensure the design andconstruction contracts are administered effectively. The specific details of these tasks andprocedures are found in the CMAA Contract Administration Procedures manual.

2.7.4 QUALITY ASSURANCEA significant part of the CM’s services is to ensure that the level of quality required by the Owneris achieved throughout the delivery of the program. Typically, this involves the selection of askilled Quality Assurance Specialist who establishes procedures for both the Design andConstruction Phases. CMAA has an entire manual devoted to this topic entitled QualityManagement Guidelines.

2.7.5 EXTERNAL COMMUNICATIONS/PUBLIC INFORMATIONEarly in the process of defining roles and responsibilities of the Owner and CM, the Ownershould decide on a project spokesperson and clarify how it wishes to handle communicationswith the media and the public at large on matters relating to the program.

Once identified, the program spokesperson should act as the sole conduit of informationabout the program to the media and general public, and a clear and firm policy should beestablished to ensure that any external inquiries or requests for information be filtered throughthat person. This hierarchy assures a consistent, accurate and responsive flow of information tothe public on matters relating to the program.

Regardless of whether the role of the spokesperson ultimately rests with the Owner or with amember of the Program Management Team, and depending on the program type and its scope,there will likely be a need to integrate a public information support function into the ProgramManagement Team. This is particularly true if the program is one that has a direct impact on thegeneral public (e.g. airports or other public transportation facilities), other public use facilitiessuch as shopping malls, highways, roads or bridges; a program that might be perceived to havean environmental impact of any kind (i.e. requires zoning changes, impacts wetlands or otherenvironmentally sensitive areas, has the potential to stir concerns about noise, etc.); a programthat is funded, fully or partially, with tax dollars or has a major economic impact, like a majorindustrial plant. The public information function should provide services to both the Owner andthe Program Management Team. The scope of those services will vary depending on thepresence and/or size of the Owner’s own public relations and/or marketing departments orfirms and can offer, but is certainly not limited to the following:

• Assess program activities and their potential to create issues of public concern.

• Provide media liaison support to the program spokesperson.

• Develop public information descriptions of the program and the individual projects withinthe program.

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• Develop and maintain a library of current, high quality photographic, digital and/or videoimages of the program.

• Develop attractive and user-friendly display graphics, slide or other presentation materials,videos, brochures, or other collateral materials to promote or explain the program.

• Organize requisite or mandated public information meetings or hearings relating to theprogram.

• Proactively seek venues to promote or explain the program, e.g. chambers of commerce,local events, news coverage.

2.7.6 PROGRAM INTEGRATIONPart of CMAA’s definition of program management includes the sentence, “Comprehensiveconstruction management services are used to integrate the different facets of the constructionprocess—planning, design, procurement, construction and activation—for the purpose ofproviding standardized technical and management expertise on each project.” It is theintegration process that brings together the efforts of planning, design, procurement,construction, and activation management to complete the program management effort. Thedictionary defines integration as the act of “bringing parties together into a whole”.

An important aspect of program integration is to help facilitate the communication betweenthe Program Management Team and the Owner. Both the Program Management Team and theOwner benefit greatly by participating in all the management processes within the program. TheOwner is assured that the program is servicing its needs, and the Program Management Teambenefits from the input of the Owner. The purpose is to provide efficient management ofservices, and to help produce projects within the defined scope, schedule, budget, and quality ofthe program.

• Procedures:

Once the various departments are organized for performance, a study is made to determine therecurring standard meetings and reports. From these meetings and reports, information isreceived on the performance and progress of various aspects of the program. This informationis then distilled to provide an analysis of overall performance, progress and outstanding issuesof the program. From an analysis of these processes, working groups are then formed of personsrepresenting different staffs, but with similar interests. The working groups meet regularly forthe purpose of communicating status of performance, progress, and the resolution ofoutstanding issues. Working groups can be defined by types of infrastructure, work processes,or geographical areas of the program. The function of the working group is to facilitate theresolution of issues in order to produce efficient management of the program.

Issues are recognized through meeting attendance, reading reports and correspondence, andfrom an analysis of the program. These issues are collected, organized and presented in a format(i.e., an “Issues Log”), that will allow management staff to concentrate on resolving majorpriority issues.


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• Staff and Implementation:

Based on the magnitude of the program, the CM may elect to establish a task force to managethe program integration process. It is the Program Integration Task Force’s responsibility toassist in establishing the working groups and the procedures for monitoring issues and theirresolution.

The Program Integration Task Force is comprised of representatives of the CM and theOwner. It meets regularly to monitor the process of integrating the CM’s staff internally with theOwner’s staff. The task force also monitors the status of issue resolution and discusses methodsof facilitating the process of issue resolution.

2.7.7 MINORITY BUSINESS INVOLVEMENTVirtually all federal, state, municipal and institutional projects require that a portion ofcontracting dollars be allocated to small, minority and/or women owned businesses(disadvantaged businesses). Many private sector companies have also embraced supplierdiversity in their purchasing and contracting programs because they believe it is a goodbusiness practice to contract with groups that increasingly make up a large portion of theircustomer base.

Achieving the supplier diversity objectives for a project or program is a challenging task.Many factors affect achieving the supplier diversity objectives which include: lack of uniformityin federal, state, municipal and private sector requirements; the continuing evolution of the lawregarding set asides and other activities designed to increase contracting participation ofdisadvantaged business; or unavailability of qualified contractors in certain geographical areas.

The CM can help the Owner meet the supplier diversity goals for the program by providing:

• Project requirements (including specific project goals)

• Outreach and supplier sourcing

• Purchasing planning

• Mentoring and supplier development

• Administration and reporting

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3.0 PROGRAM DEVELOPMENT3.1 INTRODUCTIONClassical front-end services, or pre-design services, maybe part of the CM’s scope of work, depending on themagnitude of the program and the specific services theOwner intends to have the program managementactivity provide.

Ideally, where front-end services are required, theOwner will hire the CM early enough in the process tohelp shape the program and develop the executionframework. Typically, the earlier in the process thisoccurs, the better the end result will be. The core issuesthat need to be addressed and which set the parametersfor the program are:

• What is specifically in the program and what is thescope of work?

• What is the program cost and what is the source(s) of funds to pay for it?

• When is the program, or portions of the program, needed and when will the program befully complete?

It is vital to the successful execution of any major program to have the overall goals andobjectives fully established. CMs will deliver the program in concert with the Owner’s goals andobjectives by ensuring that program requirements are clearly defined, the financial parametersare established, and the overall program schedule is set. These items are often consolidated in theform of an official Program Management Plan and/or a Construction Management Plan, that arepresented to, and formally approved by the Owner and become the basis for delivering the program.

3.2 REQUIREMENTS DEFINITIONThis is one of the first steps in the journey for a successful program. The size and complexity ofthe program and the sophistication of the Owner’s organization, will determine how much ofthe preliminary program requirements definition has been, or will be, completed and madeavailable to the CM. Even with large and sophisticated Owners, the CM will need to assist theOwner in finalizing the scope of the work and the conceptual requirements of the sub-elementsof work. The better the scope of work and requirements are defined and understood, thesmoother the delivery of the program.

3.3 FINANCIAL PLANNINGIn addition to establishing the specific requirements of the program, the financial resources tomeet the program requirements need to be clearly identified. This includes such items as



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funding sources, outlay, and cash flow projections for the duration of the program. The Ownermay desire to look at these in a variety of ways, depending on how the financing for the programis determined. Depending on the Owner’s budgeting and allocation process, this could be assimple as a single, lump sum disbursement, to a more complex financing arrangementassociated with annual budgeting or selling of bonds over a multiple year period of time.

Regardless, CMs must be able to bring the right level of financial management assistance tothe Owner. This might take the form of simply supplementing the Owner’s existing financial/budgeting operation and staff or it may comprise a more complex activity to manage the entirefinancial and budgeting operation.

3.4 PROGRAM SCHEDULEA critical component to the execution of the program is the establishment of a Master Schedulefor the program. This Master Schedule sets the baseline for delivering the program and all thesub-project elements. The Master Schedule is the vehicle that determines the intensity of theworkload by establishing milestones for completion of various elements of work. This directlyinfluences the manhour production and the corresponding outlay of capital or cash.

3.5 OUTREACH ACTIVITIESThe program may be sufficiently complex to require the CM to assist the Owner with variousoutreach activities dedicated toward advocating support, approval, or funding for the program.This can be in the form of developing advocacy strategies to gain approval both internally andexternally for the Owner. Internal advocacy could be developing a strategy to secure Ownerboard of director’s approval. External advocacy is potentially much more complex and couldinclude strategies and developing grassroots support for bond sales or local referendumsthrough the popular vote.

3.6 PLANNING EXECUTIONThe CM will typically compile all requirements for delivering the program into a comprehensiveplanning document. This document is the Program Management Plan and it is essentially theroadmap for executing the program. The CM works closely with the Owner to develop andpublish the plan. The plan is dynamic and will require review, updating, and modification as theprogram progresses or various factors change from the initial plan.

There are a variety of other program plans that are often developed by the CM in addition tothe Program Management Plan. These plans normally vary by function and examples include:

• Construction Management Plan

• Procurement Plan

• Financial Plan

• Safety Plan

• Quality Control and Assurance Plan

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4.0 PROGRAM MANAGEMENT DURING PLANNINGPlanning is the critical process of taking the conceptual programrequirements initially established in the program developmentstage and defining them into executable elements of work.

Initially, the CM will need to work with the Owner in terms ofhow this phase of work is to be accomplished. Depending on theOwner’s organization, this phase may be accomplished either in-house, using a combination of the Owner’s existing staff and theProgram Management Team, or it could be provided entirelythrough outside consultant planning services. In the majority ofinstances, the Owner will likely defer to the CM to execute thisphase using a combination of internal staff and outside consultant services.

The major items of consideration during this phase of the program are:

• Scope and Project Definition

• Regulatory Considerations

• Program and Project Phasing

4.1 SCOPE AND PROJECT DEFINITIONThis phase of the program is key to defining the specific requirements of individual projects tostart the design process.

The CM will be focused on:

• Distilling macro program requirements into definable and executable projects. Thisdevelops the work breakdown structure (WBS) that is the basis for cost and schedulecontrol.

• Establishing budgets for the specific projects. This typically will include estimating designcosts, construction costs, management costs, and any other unique budgeting requirementthe Owner might be required to include or identify as part of its financial control process.

• Defining the infrastructure and associated utilities to support each project and the eventualfull build out of the program.

• Defining any temporary infrastructure required in the Construction Phase to support theprogram. Examples could include: temporary contractor staging areas, haul routes,production plants, security accessibility to construction work sites, and any temporaryswing space or other space impacted as a result of displaced activities or operations.

• Developing preliminary sketches and plans of the specific projects in order to better definescope and phasing between projects.



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• Developing a “Master Plan” of the program and related siting considerations forcompatible land use.

• Regulatory Considerations*:

* To preclude any adverse impacts or delays as a result of not clearing mandatoryregulatory requirements, it is imperative that all the potential regulatory considerationsand the corresponding response items and times be identified early enough in theprocess to include them in the overall schedule. These regulatory items include anyfederal, state, or local organization having jurisdiction over the program or portions ofthe program. In these cases, the CM should:

- Identify all the jurisdictional authorities impacting the program. In some cases there willbe multiple jurisdictions governing the program.

- Retain legal representation. The magnitude and complexity of the program along with theregulatory impact could justify the need for formal legal representation as a part of theprogram management effort. In some cases, the Owner’s organization will provide theappropriate legal oversight.

- Establish contacts and links to each regulatory authority having potential jurisdictionover the program.

- Establishing a library within the program management activity of regulatory criteriaaffecting the program.

4.2. PROGRAM AND PROJECT PHASINGThis portion of the planning activity is centered on how the individual projects areaccomplished and how they fit together to deliver the final program. There are financial andschedule implications that are primary decision points in developing the overall ProgramPhasing Plan. The CM develops this phasing sequence of projects in concert with the Owner’sestablished goals and objectives.

In developing the overall Phasing Plan, the following financial considerations must beaddressed:

• Determining the cash flow levels for executing the various projects and the resulting overallbudget need on an annual or other periodic basis.

• Translating the resultant project cash flows and budgeting requirements into overallprogram funding that will be sourced by bonds or other financial means from the Owner.

• Determining the benefits of delivering any Owner revenue generating functions or criticalcomponents early in the Master Schedule for the program.

• Determining the cost of downtime of existing activities as a result of displaced or delayedoperations.

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In addressing the schedule considerations in the Phasing Plan, the CM should include:

• Identifying the long lead items and integrate them into the Phasing Plan.

• Delineating the work areas of the various projects and the resultant impact of the lost spaceon the Owner’s operation.

• Tailoring the proposed design packaging and construction phasing to minimize adverseimpact on the Owner’s operation and deliver critical interface components that are neededfor other projects.


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5.0 PROGRAM MANAGEMENT DURING PROCUREMENTCMs can provide procurement services for anOwner, or Owners can chose to procure allgoods and services. In the latter case, the CMmay assist the Owner by developing a scope ofwork for bidding purposes and engineeringestimating of costs. In the case where the CM isasked to procure goods and services, the Ownerand the CM must decide on a strategy forprocuring those services.

Early in the life of a project, the Owner andthe CM must decide on a procurement strategyfor design and construction. Experience hasshown that procurement strategy also hasbudget implications. Some procurementstrategies that should be discussed and agreedupon when formulating the preliminary projectbudget, include the following:

• Design-bid-build, CM-at-risk or design-build project delivery methods

• Owner furnished equipment or materials

• Firm fixed price or lump sum contracts

• Cost reimbursement contracts

• Unit price contracts

Any or all of these are possible procurement strategies, depending on the nature of theprogram as well as the legal and financial requirements, and contribute to program constraints.All of these procurement strategies will have budget implications that the CM must take intoaccount when arriving at the initial construction and program budgets. More detail can befound in Section 2.9 of the CMAA Cost Management Procedures manual.

The Procurement Phase for construction bridges the time between the completion of designand the start of construction. Typically, it includes bid advertising, questions and answers,bidding, addenda issue, bid review and contract award on competitively bid projects.

One of the main time management objectives of the CM during the Procurement Phase is toverify that a set of project-specific guidelines or specifications clearly delineate the time-relatedresponsibilities of the project players both to the project and to each other. These specificationsare developed during the Design Phase. If the CM comes on board at the Procurement Phase,such verification of the contract documents may prompt the CM to recommend additions and


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modifications to the documents through the addendum process to address shortcomings. TheCM also must expedite all project activities such as contract document issue, addenda issue, andcontract award during this phase.

In this Procurement Phase, the CM ensures that project scheduling and other time-relatedspecifications are appropriate for the project, consistent with the size and complexity of thework and provide a level of understanding and comfort for the Owner and Contractors. Thenecessity for clear, concise, unambiguous scheduling specifications cannot be overemphasized.

The CM can be charged with the additional responsibility in the Procurement Phase ofintegrating and distributing contract drawings, project specifications and addenda. In addition,the CM typically schedules the necessary pre-bid meetings with Contractors, expedites projectwalk-through, if applicable, and reviews the project’s master schedule, pre-bid schedule andscheduling requirements with potential bidders. During this pre-bid process, it is important forthe CM to have a dialogue with potential bidders, seeking their commitment, input andresponse to the time management and scheduling requirements consistent with the Owner’sprocurement regulations. Commitment to making the Master Schedule work is theresponsibility of all the project players. Key to success of the scheduling for the entire project isthe ability of the CM to develop an agreement or understanding between all potentialConstruction Phase team members prior to the pre-bid meeting on the relevant time elementsof their project and scheduling requirements.

The timely issue of addenda is also important. Addenda issued too close to the bid due datewarrant postponement of the bid date. Once the bids are received, the CM must assist the Ownerin expediting the award process. This includes working with the Contractor in its submission ofthe bond and insurance information and working with the Owner to expedite review, contractaward and issuance of notice to proceed.


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6.0 PROGRAM MANAGEMENT DURING DESIGNDuring this phase of the program, the CM is focused on ensuring the definable elements ofwork, or projects, as developed during the planning phase, are designed in accordance with theprogram goals and objectives. The CM will ensure the designs produce contract documents thatare within scope, cost, schedule, and provide theacceptable quality standard required by the Owner.

The CM will orchestrate not only the designs ofindividual projects, but will be responsible forintegrating the designs of multiple projects to ensuredelivery of the program within the parametersestablished. The CM will be focused on:

• Design program development

• Design schedule management

• Design packaging

• Construction packaging and phasing

• Project and program interfaces

• Design and peer reviews

6.1 DESIGN PROGRAM DEVELOPMENTDepending on the structure of the Owner’sorganization, the CM may or may not have to establisha process to select individual design firms to provide the Design Phase servicesfor the Owner’s program.

Assuming that a selection process does not exist within the Owner’s organization, the CM willneed to develop the Designer selection procedures. This will include:

• Establishing a formal selection committee. The committee will be responsible forreviewing, evaluating, and selecting the design firms.

• Establishing the evaluation criteria for which the design firms will offer qualifications forselection of design services.

• Establishing a scope of services for each of the specific design projects or packages.

Additionally, the CM must develop the cost estimate for the design services along with anestimate of the construction value of the work the Designer will be responsible for designing.The construction value of the work is often referred to as a “design to” cost and represents theupper limit of the construction estimate the Designer is required to meet. Any deviations abovethis upper “design to” threshold for a given package or project needs to be addressed with theOwner for resolution. The CM must provide periodic updates to the Owner on the status of the


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design contract costs as well as the Designer’s forecast of the construction value of the workunder design compared to the established “design to” number. The CM may be asked to provideindependent verification of the costs or separate cost estimates.

Depending on the level of expertise in the Owner’s organization, the CM may need to developthe design standards or modify the Owner’s criteria for the current program. These standardswill be an integral part of the initial Designer selection process and will be used to establish aquality baseline and ensure conformance with building codes and other regulatory designrequirements.

6.2 DESIGN SCHEDULE MANAGEMENTThe CM will develop and manage the Design Schedule. This schedule will be a fundamentalportion of the overall Master Schedule. The CM will develop this Design Schedule to include:

• Overall Designer contract performance periods.

• Intermediate project or package design milestones at various Design Phase Completionpoints (i.e., 15, 30, 60, 90, and 100 percent design completion).

• Review periods for design reviews and constructibility reviews.

• Value engineering and periodic peer reviews for complex packages and projects.

6.3 DESIGN PACKAGINGFundamental to the overall program delivery effort is the configuration of the work elementsinto various design packages or projects that will be designed under a given Designer contract.

These design packages will be systematically developed considering such variables as:

• Grouping similar elements of work into single packages.

• Bundling similar work elements to obtain economy-of-scale in design fees.

• Setting up early design packages for various elements of work in order to fast-track construction.

• Tailoring packages to meet critical need dates for various portions of the program.

6.4 CONSTRUCTION PACKAGINGThe Master Schedule is the baseline for delivering projects with completion dates that supportthe overall program as defined in the Program Management Plan. The design packaging isnormally developed in order to produce construction packages that support final programobjectives, goals and or intermediate program milestones, however, restructuring may berequired as the program develops and changes.

These construction packages will be configured considering such variables as:

• Supporting the original design packaging structure established in the delivery schedule.

• Establishing construction packages to achieve various program milestones or permit earlyconstruction starts.


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• Taking advantage of construction contractor specialties and local labor and material situations.

• Taking advantage of economy-of-scale by grouping construction packages.

6.5 PROJECT INTERFACE MANAGEMENTOne of the unique aspects of program management is that it encompasses management ofmultiple projects as opposed to the oversight of a single project. This requires the CM toconcentrate a significant amount of effort toward ensuring the interface and phasing of all themultiple projects are fully coordinated and designed to smoothly deliver the program.

In this instance, the CM has several options to present to the Owner in overseeing theintegration of the multiple design activities. The CM can function as the integrator, or a separatedesign consultant can be hired to act as an umbrella design manager. Regardless, the integrationof the multiple designs, particularly when elements and information from the various designsare critical to the completion of other projects, is vital to the successful completion of the program.

The CM will establish the structure to integrate the design teams and share information onthe various projects. In highly complex and large programs, the CM will develop a detaileddesign matrix to ensure clear understanding of the limits of the various individual design teamsand to ensure that all requirements are addressed and covered by one of the design teams.Uniformity of design and design standards are emphasized as one method of reducingconstruction and maintenance costs.

6.6 DESIGN AND PEER REVIEWSThe CM and Owner, through the Program Management Plan should agree to the type and depthof design reviews by the CM. These reviews will typically include:

• Technical design reviews at various project phase points and serve as a check on theDesigner to ensure the project is within established parameters of scope, cost, schedule,and quality and meets the Owner’s design standards.

• Detailed code and standards reviews to ensure fire, building code, environmental, OSHA,and handicap access are adequately addressed and reflected in the designs.

• Constructibility reviews to ensure the design is within acceptable construction performanceparameters and adheres to planned schedule and cost limits.

• Users’ reviews to ensure the facility users have an opportunity to review the designs andprovide feedback. It is important to ensure the users become vested in the details of theproject in the early design stage and to help alleviate surprises during the ConstructionPhase of the projects.

• Peer reviews are a viable option for complex or difficult design challenges and afford the CM andOwner the opportunity to bring in industry experts to review and comment on the designs.

• Reviews for maintainability are crucial to the Owner. These should include life cycle costanalyses of major systems and equipment as well as routine accessibility, convenientlayouts, and equipment clearances.

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7.0 PROGRAM MANAGEMENT DURING CONSTRUCTIONDuring construction, the CM must address logistics,phasing, projects interface, schedule monitoring andadjusting, and interfacing with the Owner’s existingoperations.

7.1 DEFINE PROGRAM SCOPEA well-defined scope will enumerate the duration,type and magnitude of the projects within theprogram. This is needed to determine the number,type and mix of CM staff needed during theConstruction Phase, as well as other neededresources such as space, utilities and equipment.

The duration, size, complexity, and location ofeach project and the delivery method and contractformat are key components in the program scopedefinition. A comprehensive schedule is importantnot only to determine the overall duration of theprogram but also its staffing requirements at variousstages during construction. The number of people needed to support a program is generallydetermined by the duration and size of the program. Its complexity will determine the “type”and/or “mix” of personnel, including requirements for staff with specialized expertise orexperience. The more complex the program the more experience, expertise and specialization isneeded from the CM staff.

The location of the projects may impact the available resources. A project in a remotelocation, requiring personnel relocations, is more difficult and expensive to staff and to supportthan a project near an urban center. Finally, the project delivery system affects the scope of theproject. The staffing and support needs are different for a traditional firm fixed priceconstruction contract than a design-build construction cost reimbursable contract.

7.2 DEVELOP CONSTRUCTION MANAGEMENT PROCEDURESProcedures need to be developed for the Program Management Team during construction. Theprocedures will ensure that the scope of services is provided to an agreed standard, and willserve as a guide to completing all services.

Procedures will describe the meeting types in detail. In addition to the normal projectmeetings, the Program Management Team conducts meetings that look at the global issues.

Procedures should be considered for processing submittals, schedule monitoring, progresspayments, inspections, testing, managing subcontracts, and processing contract changes toassess their impact on the overall program objectives.



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7.3 CONSTRUCTION PROGRAM LOGISTICSThe projects within a given program will each require areas for staging, access to the work site,and access to utilities. Program management must develop a system of staging areas, roads, andutilities that support all of the projects within the program. This support must be phased asprojects start and complete. Project managers are responsible for managing the logistics of theconstruction program as it relates to their individual projects while the program manager isresponsible for the overall program objectives and interface.

7.4 MONITORING PROGRESSWeekly Progress: Due to the pace of today’s construction, monitoring of progress has becomeparamount. Accordingly, schedules have become very sophisticated; most constructionactivities are interdependent even if they are not on the critical path. Cash flows are veryimportant to Owners and any delays can mean a severe monetary loss. Weekly progressmonitoring provides the CMs with one of the best tools to detect the early indications of aproblem or series of problems that can be addressed in sufficient time to avoid costlier solutionslater on.

Monthly Reporting: Monthly reporting provides a higher level of progress reporting andaddresses areas of concern such as cash flow, schedule delay, potential liabilities, majoraccidents and other similar issues. Senior Program Management Team members generallypresent these monthly reports to a representative or representatives of the Owner. Specialreporting may be required where the Owner is providing equipment, material or vacating andoccupying space.

7.5 QUALITYInspection Reports: As the first line of reporting in any construction project, inspection reportscontain information that is critical for those responsible for constructing the individual projectsbut far too detailed and inefficient to be useful to the CM or Owner. An “Exception ReportingSystem” must be established to extract from the inspection reports the incidents that mayimpact directly on the Master Schedule, cost or quality, or appear to represent unacceptabletrends.

Non-conformance is any failure to conform to requirements. The Program ManagementTeam must highlight unacceptable trends or a non-conformance item that impacts the programfor analysis. Due to the size and duration of major programs, the goal of program managementis to fix the problem early to eliminate repetition. Non-conformance also needs to be evaluatedagainst the design standards established for the program. Standards may have to be adjustedduring the life of the program.

Issue Resolution: Once a quality non-conformance item has been identified, it is theresponsibility of the Program Management Team to resolve the issue and determine its impacton other projects in the program.

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Schedule: An Interface Program Schedule allows Program Management Team to take theprogress from individual project schedules and assess the impact on the overall program.Detailed Interface Schedules are developed that show all significant interfaces between projects.These are critical to the program.

7.6 CHANGESThe change process must be managed on a global basis by the Program Management Team.Once the changes are recognized, the CM must evaluate every change and determine its impacton the overall program goals, including schedule, cost and quality, with special consideration ofthe Owner’s original objectives. A change approval process must be established. This processwill define the documentation required, the review parties and the approval authority, based onthe defined magnitude of the change.

Procedures should be developed to minimize changes. Some of the processes which minimizechanges are constructibility reviews, a well defined Interface Schedule for the program,monitoring progress to meet Interface Schedule milestones, anticipating the Contractors’ needsand developing a team effort between the various project Contractors and the Owner’s operatingstaff.

7.7 MANAGING PROJECT INTERFACEOnce the Interface Program Schedule has been established, the Program Management Teammust work together to establish relationships between projects and project schedule milestonedates that interface properly with other project schedule milestone dates. The CM mustunderstand the detailed relationship between projects, and must understand the consequence ofdelay to each project, if a schedule milestone is missed. Some of the interface relationshipsinclude: access to work areas, staging area availability and utilities available, or providing afunction such as putting a bypass bridge in service to reroute traffic out of a work area onanother project in the program.

The CM develops monitoring techniques to ensure that sufficient progress is being madetoward meeting a scheduled event. The Program Management Team must evaluate potentialdelays on related projects and, as necessary, develop a proposal to the Owner to modify theproject contracts (accelerate and/or delay certain projects) in order that the aggregate of changeto the program minimizes the Owner’s exposure.

7.8 PROGRESS PAYMENTSIndividual project progress payments within a program are often managed as though the projectwere not part of an overall program. However, the Program Management Team must besensitive to potential impacts caused by one project within a program to other projects withinthe program.

The CM must consider quantity and quality of work, when authorizing progress payments.Depending on quality, performance, and the potential impacts on other projects, retainageshould be considered that mirrors the potential risks to the program.


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7.9 PROJECT COMPLETIONAs projects within a program near completion, the final phase of project contract constructiontakes place. Preliminary inspections are made, a listing of work to be done or corrected isproduced (punch list), and the work progresses toward completing the punch list work. Onceenough work is complete, in order that the project can be utilized within the program, then“Substantial Completion” is declared and the project may be activated or utilized. Minor punchlist work will continue as necessary, until a final inspection is made and the project is accepted.

The CM must be sensitive to other projects within the program, before declaring a project, ora portion of a project, substantially complete. The project use may be restricted because it isdependent on another project, or its use may impact other projects within the program. Thesedependencies must be identified in the Interface Schedule and in each construction contract.

The CM must be aware of the potential impacts to the program if products such as training,spare parts, O&M manuals, warranties and as-built drawings are not delivered on a timely basis.Steps are taken early to monitor the progress of these associated project products, in order toprevent time and cost impacts on the program should the products be late or of poor quality.This is especially true in large programs where projects are interrelated but acceptedincrementally.

7.10 FACILITY COMMISSIONINGCommissioning is the process of validating the expected performance of a facility orinfrastructure system as an entity based on the interaction of all of its components. Thisintegrated process starts early in program development and lasts through the early stages ofoccupancy.

Testing and acceptance of buildings is undergoing a fundamental change. The concept ofcommissioning takes testing much further than in the past. It demands full integrated testingfor all systems. This is a much broader approach than isolated testing of mechanical andelectrical components. It is more rigorous and comprehensive than the testing and balancing(TAB) approach. Commissioning emphasizes the original intent of the Owner from earlyplanning through design, construction and post occupancy. Are the occupants satisfied? Doesthe building meet the Owner’s expectation? The fact that the construction simply meets contractrequirements is just part of the commissioning process.

The CM is best suited to manage this commissioning process. Commissioning is a processthat must be totally integrated into the program. It develops and grows as the programprogresses.

7.10.1 PLANNING THE COMMISSIONING ACTIVITIESDuring the early planning process, the Program Management Team spends a great deal of timewith the Owner to understand the details of the Owner’s goals and requirements. During thatprocess, commissioning is set in motion. Commissioning will be used to verify that the Owner’sgoals have been met.

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Individual testing verifies that the basic equipment, materials and systems are installed asspecified by the Designer. Integrated testing and trials verify that the whole building or systemworks as the Owner envisions. In the planning phase, it is essential to agree on thecommissioning protocol.

Since commissioning is an added initial expense, the Owner must agree on the degree ofcommissioning. A preliminary budget is established along with the rationale for that expense. Apreliminary plan is drafted that addresses each objective of the Owner as well as the intent of thedesign. The CM, as commissioning agent, is responsible to develop a draft commissioning planand manage this approach throughout the program including post occupancy.

7.10.2 COMMISSIONING DURING DESIGNDuring design, the preliminary commissioning plan is refined and commissioningspecifications are developed. These specifically cover the cross discipline nature ofcommissioning and the responsibilities of each entity during the commissioning process. Theplan must address specific performance criteria that support the Owner’s goal. It must addressthe issue of how the facility systems work together and how to measure how well the facility isperceived by the user and Owner alike.

The CM can manage the commissioning process directly or can assume an oversight role asdictated by the Owner. In the latter case, an independent specialty company or the Contractorcan accomplish commissioning. The plan establishes the organization and defines the role ofeach entity in detail. These roles vary depending on the protocol that is selected by the Owner.The contract documents enforce the plan by directing the Contractor to accomplish selectedtesting, to cooperate in testing by others and allow certain operational trials duringconstruction. It also details the amount of documentation, reporting and additional schedulingthat is required to accommodate commissioning. Comprehensive specifications alert theContractor to costs it must incur and activities that it must incorporate. At this stage, the budgetfor commissioning is refined to include the amounts to be included in the construction contractand those costs outside of the contract. A staffing plan is approved and subcontract solicitationsare prepared.

7.10.3 COMMISSIONING DURING CONSTRUCTIONCommissioning is part of construction, but must be handled as a distinct and independentactivity. It is the ratification of design and construction and, as such, requires an unbiasedproponent. Whether the commissioning activities are performed by the Contractor or by aseparate consulting firm, the overall management is best handled by the CM. The CM representsthe Owner as the commissioning authority. With full responsibility for the Master Schedule, theCM must integrate activities from the commissioning plan into the Master Schedule.

The functional testing involved in commissioning requires testing of the facility in variousmodes of operation. The interoperability of systems must be proved during high and low loads,with component failures, alarm activations and utility failures. To achieve realistic conditions,the final functional testing often requires the correct seasonal (summer or winter) loading. In


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the event that some commissioning occurs after occupancy, the CM is in the best position tointerface testing with the Owner and occupants. The CM is also in the best position to managethe interface between all of the commissioning participants including the Designer, O&M team,suppliers, commissioning subcontractors, Contractor, code authorities and users and to resolveany conflicts that may arise.

7.10.4 COMMISSIONING DURING OCCUPANCYThe final functional proof of major systems is often conducted after the facility is partially orfully occupied. In consultation with the Owner, the CM must include this activity in thecommissioning plan as a post-occupancy activity. The CM is in the best position to balancefunctional testing with the activities of the occupants. Some activities cannot be interrupted.Developing a detailed plan and schedule is time consuming but essential. Once the final phase ofcommissioning is complete, documentation covering the entire process is turned over to theOwner through the CM.

During the commissioning process, conflicts may arise between members of thecommissioning team based on the results of tests, interpretations of the commissioning agentsand the reports. Each member has its own professional position to protect. It is theresponsibility of the CM to review each position, develop a consensus and render decisions thatallow the process to move ahead without compromising the ultimate goal, to fine-tune thefacility to meet the Owner’s expectations.

The commissioning process is also the prelude to operation and maintenance. The vast arrayof data collected during commissioning is appended to the O&M manuals as the standardagainst which the systems are to be maintained. Participation during commissioning by theO&M staff reinforces the training that they receive from the Contractor and helps establish astructured routine to approach for future operational problems.

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8.0 PROGRAM ACTIVATION8.1. INTRODUCTIONProgram activation is the process whereby the Ownerprepares to use a new facility or facilities. CMs play amajor role in this process. On major programs, theactivation process may be a sequential process ofbringing on-line various facilities, or components ofa given facility. Sequencing this activation processwith the supporting infrastructure must be includedin the early planning phase. The Owner has made amajor investment in the program and expects thisinvestment to start to pay back as soon as possible.The goals of activation are to:

• Ensure that tenant spaces are prepared andoccupancy is achieved in a timely and efficient manner.

• Ensure that the intended level of service is achieved from the outset.

• Provide a seamless and transparent move from Contractor completion to full operation.

8.2 ACTIVATION ORGANIZATIONThe activation process must be done in parallel with the design and construction process andintegrated into the production schedule. Requirements from the users, for example, must bedesigned into the basic structures and construction sequencing.

On major programs, activation is directed by a dedicated person from the Owner’s staff butmay be seconded from the CM or a separate consultant. This Activation Manager must beintimately familiar with the Owner’s organization and must have the authority to task theorganization to support the activation process.

Although some facilities require only minor activation interface, the vast majority of facilitieson a major program require significant planning and early interface with the CM. These are besthandled as individual projects headed by separate project coordinators under the overalldirection of the Activation Manager.

The basic working element of the activation process is a working group or committee madeup of representatives of each organizational element that is involved in bringing the new facilityon line including users, tenants, operators and maintainers. A letter of appointment or otherauthorizing document is issued stating the role, goals, authority and responsibility of theworking group.

Advance planning is the key to successful activation. A list of activation tasks is developed toinclude early design requirements through the final ribbon cutting events and occupancy. Thislist tasks each organization and tenant with specific activities, deliverables and dates. Key



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milestones are agreed and set. These milestones are then interfaced with the Master Schedule.All dependencies are noted. Any changes in the Master Schedule immediately trigger changes tothe activation tasks. A critical path is established through the network to single out those tasksthat must be closely managed on a regular basis. Specific tasks can be tailored to the job fromtime tested generic task lists that CMs have developed through wide experience in numerousindustries.

8.3 TRANSITION AND RELOCATIONConstruction can be provided in a fully completed state or as a shell. The Owner must eitherdecide to accept the task of finishing a shell building or to direct a “turnkey” approach. Usually,there is some middle ground where a portion is fully ready and part is available for tenant fit-out. There are numerous factors that drive this decision, such as cost, flexibility, schedule, andtenant unknowns. When the Owner chooses to have the new facilities completely furnished andready for occupancy, activation is much simpler and involves less risk. In the case of shellbuildings, activation plays a much more significant role, involving fit-out design andconstruction, tenant coordination, relocation and moving. This includes deciding whatfurniture, fixtures, and equipment to relocate and what to purchase. Numerous separatecontracts are involved in purchasing fixtures, furniture, equipment and services. Even if someOwner capability is available, it is usually supplemented by contract movers, suppliers, andtelephone and computer installers. In addition, phased occupancy adds another layer ofcomplexity to the relocation issue. Scheduling and tight control of numerous outsideorganizations adds to the risks but generally reduces costs and increases flexibility.

8.4 TRIAL OPERATIONSThe most important part of the activation process is the identification of operational trials tosmooth the transition to full use. Operational trials are the partial or full scale simulation ofactual use under a highly controlled environment to test, evaluate and predict the actual use ofany given facility and system.

Ideally, the trial is designed to create realistic loads on the system, with quantifiableobservations to collect data. The data is used to make unbiased recommendations to eithermove to full use or recommend appropriate changes and selected retrials. When the trialsinvolve public use of a facility, the trials should encourage the use of people who are unbiasedand generally match the profile of the expected user of the facility. For example, prior to theopening of a new airport terminal people should be hired to participate in the trials that have arange of travel experience from novice to experienced traveler. The use of a high number ofnovices would unduly bias the trials arriving at costly decisions to delay the full use of thebuilding.

Trial operations should not be confused with testing and commissioning. Commissioning isnormally completed in a controlled but somewhat artificial environment and in a non-integrated manner. HVAC testing and commissioning is typical of this process. The systems areaccepted without full equipment and “people” loads on the building. Of particular concern

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during the trial operations is the integrated testing of security, safety and other critical systems.These are best designed using staff volunteers or hired stand-ins and actual, not simulatedresponses, from the appropriate police, fire and operations teams. Any conflicts in design intentor construction weaknesses are quickly picked up during the trial period even after a buildinghas been fully tested and commissioned by the Contractor. If the schedule is critical, many trialscan be scheduled, with mutual consent, during the final throes of construction completion. Thisensures on time delivery with the full confidence of operational trials.

The operational trials must be carefully designed and planned in detail. A budget should beestablished for each trial as input to the budget and help support a cost benefit analysis decision.Trials can be expensive and the benefit must be convincing.

8.5 COORDINATION AND CONTROLThe activation process is one of coordination. Simply stated, it is the formal introduction of theusers, operators, maintainers, and tenants to their new building, facility or system. A series ofmeetings is necessary to create a mutual dialogue between the builders and users. All too oftenthis coordination is left to the last minute resulting in unanticipated problems.

At a minimum, each working group should meet periodically to review the activation tasking,clarify any issues, predict any delays in critical milestones, and determine the resources neededto keep on track. This becomes a forum for the team to bring up new ideas, ensure that the teammembers have the proper support and to insert any changes to the Master Schedule.

The agendas from these meetings tie directly to the design and construction progressmeetings. The Activation Manager should attend each progress meeting as a representative ofthe Owner. Schedule trends discussed in these meetings are helpful in adjusting the activationschedule and activities. It also gives the Activation Manager the information necessary tointerface future activities with the design and construction process. It also builds confidencethat dates will be met or what delays can reasonably be expected.

Activation should have high visibility throughout program development and execution. Theprogress and issues should be reported periodically to the Owner and senior programmanagement staff. Issues requiring management decisions and additional resources are bestpresented in a formal reporting system.

The activation activities must pay for themselves. The initial cost can be expensive. A budgetmust be established and controlled. Even though many of the activation participants areengaged only part time, it may be beneficial to keep track of the effort spent on activation. If theeffort becomes too involved, the level of effort can be adjusted, or a permanent staff positioncreated. The key is to initially establish the task list, develop a scope of work, and estimate thelevel of effort. The cost of each trial should be included in the budget.

In addition to routine activation activities, the budget may include other costs associatedwith turnover such as events publicizing the opening of the new facility. As activationprogresses, expenses are monitored and controls are established as necessary.


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9.0 OPERATIONS & MAINTENANCE SUPPORT9.1 INTRODUCTIONHistorically, operations and maintenance (O&M)support was outside of the CM’s area ofresponsibility. More Owners, however, recognizethe value of a “cradle to grave” approach toprogram management and are extending theseservices to include post turnover activities. O&Msupport is a natural extension of the activationprocess. Full and effective use of any facility orsystem depends on a well conceived and executedO&M Plan. The lack of proper maintenance maynot only void warranties, but also jeopardizecontinuous operation when systems go on lineduring peak load. Effective O&M is based onadvanced planning that includes adequate staffingand funding. It is an outgrowth of the O&Mmanuals submitted as part of the constructioncontracts and the training provided by the construction contractors and suppliers.

Planning for O&M starts with an assessment of the Owner’s current capability and method ofoperation. Large programs may dictate the whole issue of O&M if the new operationsovershadow the Owner’s current operations. Questions to be asked include:

• Is the current O&M centralized or decentralized?

• Is scheduling and control computerized?

• Is the workforce in-house, by contract or a mix?

• Who manages the effort?

• Is the Owner’s O&M staff capable of assimilating a major program?

Frequently the Owner’s O&M force is already fully committed and has a difficult timeplanning for any major new systems and facilities. The CM, however, is ideally suited to the taskand is intimately familiar with the design intent and construction details. The CM is responsiblefor the O&M manuals, as-built drawings, and spare parts list and is also responsible forensuring this information is compatible with the Owner’s current O&M management system.This may include providing a new electronic O&M management system or data for an existingsystem. This is an ideal foundation to support the Owner in developing the O&M budget,staffing plan, ordering and warehousing spare parts, establishing specialty contracts, writingprocedures and promulgating work schedules.

In more complex facility programs, the CM can be tasked to provide O&M management andeven the workforce for extended O&M. Ideally, this decision is made in the early phases of the


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program. It can even be combined with an incentive program that rewards the CM for designingmaintenance efficiencies into the program works.

9.2 IMPLEMENTATIONAs the O&M planner, the CM first develops the scope of work for maintenance and operations.Parameters are established with the Owner. The workload may be split between routineoperations and maintenance (custodial, landscaping and security) and technical aspects(HVAC, CMMS, fire protection). The Owner and CM may split the responsibility. The CM canhire the workforce or provide the service by subcontract. The staff and contracts can be assignedto the Owner at any point in the future when the Owner decides to accept full responsibility. Oneconvenient breakpoint is the end of the major warranty periods as defined in the originalconstruction contracts. In major programs, the operations and maintenance staff may be spunoff as a separate operating company. In any case, the corporate memory and experience residentin this group is a valuable asset that does not transfer if the facilities are simply turned over tothe Owner upon completion.

The most important issue in establishing the O&M program is timing. The plan must includea detailed schedule, which is integrated into the Master Schedule. The staff must be available totake full advantage of the training provided by the construction Contractors. Spare parts andmaintenance materials must be warehoused in time to support the workforce. A skeleton forcefrom select disciplines not only supports early planning but also observes key installation detailsfor future reference. The Master Schedule must be flexible enough to accommodate changeswithin the Construction Schedule.

The composition of the workforce is agreed with the Owner as part of a phased staffing plan.This forms the basis of the budget and influences the decision whether to subcontract selecttasks. The CM simultaneously influences the submittals of O&M manuals, spare parts lists andthe training schedule. All of these activities come together in the Master Schedule. In productiontype facilities, the Master Schedule is further compounded by the hiring plans for the operatingstaff and the scheduling of raw materials, packaging and shipping. An initial operational date iscritical. Everything, including the O&M operation, must be ready for full production. A level ofservice must be maintained from the agreed date. Placing this responsibility in the hands of theCM is the most effective way to ensure that the operational date is met with the level of serviceenvisioned in the planning phases.

The CM has the experience and site-specific background to monitor the operation of thefacility. After-action monitoring and reporting is a common method of determining that all ofthe program objectives have been met and to recommend any adjustments or changes to theO&M program. The costs of O&M are carefully matched to the established budget. In a fixedprice scenario the risk for O&M cost rests with the CM. This ensures a full exercise of anywarranty issues as well as any latent defects. The use of the CM for follow-on services providesthe Owner with a single point of contact for any problems that may arise after the facility istraditionally turned over.


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10.0 SELECTING A PROGRAM MANAGERThe primary consideration for the selection of aCM should be technical competence. Generally,public and institutional Owners have a well-defined selection process for choosing theseservices. The selection procedures andsophistication of private sector Owners varysignificantly from Owner to Owner.

The more sophisticated Owners have the in-house resources and expertise needed to evaluateCM proposals and determine which firm is bestsuited to do the job. Other Owners may seek theassistance of construction professionals to helpthem in the selection of a CM.

Whether representing a public or private sectorOwner, the best way to determine technicalcompetence is to consider the following factors:

• Past experience

• Past performance

• Resources (staff, systems, etc)

• Financial position

• Customer satisfaction

Reference checks are an indispensable tool in determining the CM past experience, pastperformance and a record of superior customer satisfaction.

As part of the evaluation and selection process, the Owner must provide the CM with aRequest for Proposal (RFP) with sufficient information to determine the scope of servicesneeded to support the program and the Owner’s expectations regarding the quality, cost andduration of the project.

In response to an RFP, the potential CMs should provide technical proposals to the Ownerthat covers the above information. Additionally, this proposal should include such items as: amanagement plan, identification of the Program Management Team and a milestone scheduleof significant events.

Once the Owner identifies the CM with the best technical qualifications to manage theprogram, the Owner and the CM should enter into negotiations to determine the fees,reimbursable costs and other expenses associated with the program management effort.


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