Construction Workshop
July 11 12, 2002
The Warwick Hotel
Houston, Texas
Creative Problem
Solving
KBR
Innovation
IDEA CONNECTIONS:
How to ensure subcontractor requirements of KBR Systems and Processes?
Ideas
Train subcontractor employees
Put requirements in contract ITB
Review requirements in pre-bid
Detailed review to a minimum standard
Put KBR personnel in subcontractor team staff
Rewrite KBR requirements in a format which is clear and easy to
understand
Perform these services for the subcontractor
Allow subcontractor to use his own systems
Streamline KBR systems
Subcontractor shows (presentation) KBR how system and processes work
in pre-award
Use combination of KBR and subcontractor systems
Page 1 of 44
Big Idea
Put a KBR Guy in the Bidders Office (Coach the Bidder)
KBR to put together a scope of work ITB for a sub contract with provisions
that a KBR employee knowledgeable around our systems and processes and
will be placed at the subcontractor office. In pre-bid meeting the selected
KBR employee will be made available.
Place a KBR systems and procedures person with each bidders office
Give bidders a template for each of the required systems
Assign points to the best use of the systems at bid
Actions:
1. Put a KBR guy in the office
2. Do a pre-bid workshop (2 days)
3. Assign the KBR coach to the subcontractor if he wins (3 months)
Obstacles:
1. Confidentiality
2. Cost
3. Commitment
Page 2 of 44
IDEA CONNECTIONS:
How to Improve Subcontractor Control Systems?
Ideas
Detailed pre-qualification of subcontractors to a minimum standard
Training of subcontractors to KBR systems
Support with KBR personnel when needed
Weekly meetings
Involve the subcontractor
If they do not pre-qualify, dont hire
Address requirements pre-bid
Help subcontractors along in ways that will assist them on project, so
they will have the expertise later
Reward them when they do a good job. Cause them to want to do better
Define our minimum requirements for them
Why do subs have to have the same level as KBR
Clearly define expectations of both parties
Page 3 of 44
Big Idea
Page 4 of 44
IDEA CONNECTIONS:
How to Improve KBR Administration?
Ideas
Know the scope
Train the KBR subcontract administration
Hire qualified Administrative Manager (sub)
Provide incentives to KBR administrators based on subcontractor
performance
Innovative Idea workshops for subcontractor administrators
Establish Lessons Learned database
Communication with subcontractor through social get-togethers
Have a visual scorecard, in public place where all subcontractors are
rated (peer pressure)
Set out expectations of KBR administrators clearly
By proper training by assessment performance
By establishing comprehensive training program
By setting effective performance goals via PPR
Education
Establish career path
Page 5 of 44
Big Idea
Mutual Investment in Career Training
Page 6 of 44
IDEA CONNECTIONS:
How to keep subcontractor focused on schedule in addition to making
profit?
Ideas
Keep clear documented schedule in front of subcontractor
Hold expectation meetings with subcontractor
Structure subcontractor proposal to incorporate schedule related bonus
Upfront alignment session
Tie profit to schedule milestones (no schedule no money)
Provide support to subcontractor to help achieve schedule goals
Show them that they are part of the team
Their participation in two week look a heads and schedule reviews
They need to know up front our expectations
Have subs participate in schedule review meetings
Seek feedback from subs on issues that are holding them back
Eliminate barriers for subs
Require subs to open their books to us for review
Page 7 of 44
Big Idea
Pay for Performance
Actions:
1. Tie profit to schedule milestone
2. Negotiate milestone to be realistic (i.e. every two weeks)
Obstacles:
1. Front end loading by subcontractor
2. Subcontractor has to front the money until milestone attains
Page 8 of 44
IDEA CONNECTIONS:
How to get Subcontractor to work to the levels required of them?
Ideas
Clearly define scope of work to subcontractor and ensure subcontractor
understands what is required of them prior to work start
Proactively manage subcontractors during work execution
Hold pre-award meetings to clarify scope of work
Regular expectation meetings
Hold offsite social get togethers to discuss performance
Make sure subcontractor understands their construction scope
Identify penalties in their scope for non performance
More frequent monitoring of subcontractor work systems
Regular on-going performance audits
Stick to and enforce penalties no matter how unsavoury it may seem
Page 9 of 44
Big Idea
Timely and Effective Audits
Ensure that pre-award meetings are held to make sure that both parties
fully understand the scope being in the contract
Make sure that subcontractor fully understands any penalties that may
be in place and that KBR will enforce them
During the course of the work hold regular meetings to monitor progress
and keep them on track
Do not accept sub-standard performance
Advise subcontractor construction management of need to improve
performance if they are to continue working for KBR
Actions:
1. Clear understanding of scope of work
2. Timely effective audits
3. Subcontractor management accountability
Obstacles:
1. Ability to effectively interface with subcontractors
2. Accepting sub-standard performance
3. Not willing to take time required to improve shortcomings
Page 10 of 44
IDEA CONNECTIONS:
How can we solve the Language Barrier?
Ideas
Hire personnel for several key positions who can speak in other languages
Require ability to speak in English as a requirement qualification for
hiring
Use real-time interpretation ear-phones for key communication
addresses
Cannot solve only (can improve)
Use more interpreters
Teach more staff different languages
Remember we are in their country
Use visual aids as much as possible pictures are more understandable
Hand held translators
By providing proper training
By employing qualified personnel in the countries we work in
Page 11 of 44
Big Idea
Ensure Key Personnel Speak English - Common Language
Actions:
1. Ensure key personnel speak English
2. Ensure that resource available to maintain all visual aids
3. Verify work instructions are fully understood by workforce
Obstacles:
1. Finance of LSTK projects as English speaking supervisors may cost more
2. Resource may not always be available
Page 12 of 44
IDEA CONNECTIONS:
How to ensure that Subcontractors are Pre-qualified to Same Standard?
Ideas
Define essential standards of requirements
Review subcontractors in market place
Interview in person each subcontractor
Complete engineering details so all scope is known
Review other clients they have had
Go to other jobsites they have worked
Introduce an exam they must pass
Accept no exceptions no flexibility
Obtain signed commitment from subcontractor CEO
Develop a detailed KBR procedure for pre-qualification
Minimize the number of areas which are considered during prequalification
As the subcontractors to determine the minimum level of prequalification required
Check other projects that they have worked before
Use subcontract manual
Dont listen to client
Page 13 of 44
Big Idea
I. Prepare a detailed Standard of Requirements
A. Historical Data
1. Provide template to obtain actual performance on construction
projects
a. Safety Record
b. Cost & Schedule performance
c. Claims performance
II. Contact previous clients of perspective contractor and check references
Look at records of projects on which they have worked
III. Compare performance against criteria established in I
Actions:
1. Identify the critical factors to evaluate
2. Obtain data from other clients and previous projects
3. Assess performance (2) against requirements (1)
Obstacles:
1. Lack of information in a timely manner
2. Resistance of individual to conduct due diligence check
3. Non availability of subcontractor who can meet our needs
Page 14 of 44
IDEA CONNECTIONS:
How to Improve weak subcontractor safety practices?
Ideas
KBR to provide standard training to subcontractors
Eliminating the weak supervisors from subcontractors
Ensure procedures are all in place and fully understood
Ensure required practices have a good process in place
Include subcontractors innovative practices such as behaviour based
principles
Reward subcontractors for methods that improve performance
Include subcontractor as part of team in all meetings
Train all personnel
Change culture of area to improve workers understanding
Incentives
S.A.F.E.
Penalties for poor performance
Treat subcontractors personnel as if they are (were) KBR personnel
Include time in the schedule to evaluate and train prior to starting any
work
Page 15 of 44
Big Idea
Safe Subcontractor
Actions:
1. Assessment of problem areas
2. Training and support
3. Include sub in monitoring activities
Obstacles:
1. Participation of subcontractor management
2. Subs do not have budget for it
3. KBR internal costs
Page 16 of 44
IDEA CONNECTIONS:
How do we get clients to allow for adequate time to properly qualify
Subcontractor?
Ideas
Use and accept one subcontractor recommendations
Align with owners on the pre-qualification conditions
Use owner subcontractor who have proven success
Clearly define subcontractor strategy with client prior to prequalification process
Prepare strategy (with client) for tender evaluation
Initiate tender cycle ASAP after subcontractor scope of work identified
and subcontractor requirements are approved by client
Get client approval of subcontractor plan as early as possible
Built timeframe for subcontractor qualification in subcontractor
execution plan
Page 17 of 44
Big Idea
Overhead Staffing
Actions:
1. Build sufficient time in a subcontract execution plan
2. Demonstrate to the client the probable outcome of sufficient time is not
allowed
3. Develop a KBR procedure to minimize pre-qualification time
Obstacles:
1. Project schedule may not have enough time
2. Fixed requirements in contract
3. Cost Issues
Page 18 of 44
IDEA CONNECTIONS:
How to Find Qualified Subcontractors?
Ideas
Create a database from ongoing projects
Better qualification process
From Project experience
Get owners database/history
Personal history of team
Advertise on web
Client input on subs they sue
Solicit subcontractor names from other KBR projects
Search web
Establish metrics for evaluating performance for use with A above
Talk to your friends get recommendations
Check references
Build a corporate database that all projects can dsp. into
Run our own training school for subcontractors to bring to our standards
Make the requirements achievable
Page 19 of 44
Big Idea
Formal Disciplined KBR Database of Subcontractor
Performance
Actions:
1. Formalize a central KBR database of subcontractors past performance
2. Require and review current references
3. Reconcile database and current references for any conflicts
Obstacles:
1. Formal collection and maintenance of current performance database
2. Obtaining and verification/contacting references
3. Receiving subcontractors performance data in proper/usable format
Page 20 of 44
IDEA CONNECTIONS:
How to improve Safety Systems?
Ideas
Page 21 of 44
Big Idea
Actions:
1. Part of Team
2. Include subcontractor in all parts of project
3. Train and educate all personnel to KBR standard
Obstacles:
1. Money
2. Contract limitations
3. Subcontractor management may be road block
Page 22 of 44
IDEA CONNECTIONS:
How to Improve Subcontractor Administration?
Ideas
Issue subcontractor KBR reporting format with examples
Establish relationship with subcontract admin group
Walk through first billing face to face
Training
Be more selective in choosing
Clearly define the requirements up front
Place KBR personnel in subcontractor organization to assist
Reduce admin requirements to bare minimum
Integrate subcontractor admin and KBR admin to a single system
Hire the right subcontract manager qualified
Have admin manager more involved with subcontract administrator
Participate in scheduling meetings
Minimize backup requirements for billings
Subcontractor administrator to train staff on T&C of contract
Give subcontractor administrative time to develop subcontract
Page 23 of 44
Big Idea
Contract Brief
Actions:
1. Communicate contract requirements to all involved
2. Audit processes for compliance to subcontract procedures
3. Give admin (subcontractor) manager clear scope and time to develop
Obstacles:
1. Schedule
2. Client
3. Training craft superintendents on requirements to start subcontract
Page 24 of 44
IDEA CONNECTIONS:
How to have subcontractors have a win/win situation with KBR?
Ideas
Pre-qualification meetings
Hold accountable for $
Partner with subcontractors
Set limits on profits they can make
Treat subcontractors fairly
Coach subcontractors
Help subcontractors who need it
Form an integrated team with subcontractors
Joint milestones and rewards
Marry their bosses daughter
Share the risks
Share the rewards
Negotiate a fee
Lump sum contracts
Trust and open relationship
Subcontractor to write contract
Page 25 of 44
Big Idea
A.
1. Subcontractor administration manager writes contract
2. Team reviews contract before going to subcontractors
Team consists of craft superintendent and upper management
B.
1. Have weekly or monthly meetings with subcontractor to check progress
Incentives and penalties equal $ on downside as offered as incentive
Owner accept risk for quantity growth and subcontractors accept
productivity risk
Actions:
1. Team review subcontract before going to subcontractor
2. Weekly review meeting
3. Add incentives and penalties to contract
Obstacles:
1. Team not yet mobilized
2. Subcontractors do not meet reporting requirements
Schedule update
ACLS reported, etc.
3. Owner will not buy-in
Page 26 of 44
IDEA CONNECTIONS:
How to get the subcontractor to bid the right level of overhead?
Ideas
Obtain breakout of rates
Obtain organization chart and list of responsibilities
Better define KBR ITB definition
Issue NTE requirements to subcontractor
Meet with subcontractor to define requirements at pre-qualification
meeting
Pre-award audits
Ensure subcontractor understands scope and can justify rates and
overhead
Good quality subcontractor administrator required
Review requirements with separate pre-bid meeting
Have verbal presentations by bidders of what they will use
Define what they are to bid for overhead
Structure contract with incentives on reporting/management, etc.
Define requirements of overhead
Page 27 of 44
Big Idea
Overhead Staffing
The ITB will include a good scope definition of work. This will also include
management, controls, and safety expectations. Have pre-bid meetings to
discuss and clarify requirements. Ask for documentation of staffing and
responsibilities. Create an environment that will make the contractor want
to provide adequate overhead staffing by structuring incentives that reward
good management, reporting, etc. Have subcontractor present examples of
regular documentation from other projects. Seek feedback from
subcontractor to evaluate understanding.
Actions:
1.
2.
3.
Obstacles:
1.
2.
3.
Page 28 of 44
IDEA CONNECTIONS:
How to cause owners not to get involved in subcontractor selection?
Ideas
Page 29 of 44
Big Idea
Limit Owner Involvement
Actions:
1.
2.
3.
Obstacles:
Page 30 of 44
IDEA CONNECTIONS:
How to understand contractors own cultures?
Ideas
Page 31 of 44
Big Idea
Managing Cultures for Win-Win Projects
Page 32 of 44
IDEA CONNECTIONS:
How do we insure proper definition of Subcontractor Scope?
Ideas
Page 33 of 44
Big Idea
Assign qualified person the responsibility of writing the plan. Have him
gather proper technical and commercial information. Prepare preliminary
draft of scope. Review with client and then individually with potential
subcontractors.
Qualified subcontractor scope of work writer should be skilled technical
writer in addition to experienced with technical and commercial issues.
Review statement of requirements with engineering and with client along
with scope of work draft. Review draft scope of work with potential
subcontractor tenders if tender cycle will permit this (timing of it).
Actions:
1. Use qualified person (technical, commercial) to write subcontractor scope
of work
2. Have engineering/and client, subcontractor type permitting) review
subcontractor scope of work
Obstacles:
Page 34 of 44
IDEA CONNECTIONS:
How to ensure that subcontractors have sufficient Safety
Programs/Systems?
Ideas
Page 35 of 44
Big Idea
Overhead Staffing
Page 36 of 44
IDEA CONNECTIONS:
How should we ensure that subcontractors understand the Scope of Work?
Ideas
Page 37 of 44
Big Idea
Scope It Out!
A meeting needs to take place between the subcontractor and KBR prior to
the award, for the subcontractor to explain back to KBR the Scope of Work,
and produce a schedule satisfactory to KBR. KBR will also monitor the
subcontractors in their execution methods and daily activities.
The schedule is the key since it depicts their knowledge of the scope.
Review their cost control budget if possible. (not possible on a lump sum
bid). Review the subcontractor schedule with the subcontractors line
supervision (foremen) prior to/during commencing the work. Hold site
walkabout tours with subcontractor supervision at regular intervals. Ask to
see their BOMS for materials they are buying.
Actions:
1. Pre-award/scope clarification meeting
2. Review detailed schedule from subcontractor
3. Review subcontractor schedule with subcontractor line supervisors on a
regular basis
Obstacles:
1. Schedule pressure prevents holding thorough pre-award meeting and
review of detailed schedule
2. Subcontractor does not produce detailed schedule in timely fashion
3. BOMs not available
Page 38 of 44
IDEA CONNECTIONS:
How to get more trained supervision for Subcontractors?
Ideas
Page 39 of 44
Big Idea
Actions:
1. Interview subcontractor supervisors
2. Train subcontractor supervisors same as KBR
3. Pay for performance
Obstacles:
1. Getting rid (next worse than this)
2. Promoting from within (Union?)
3. Cost of more qualified personnel
Page 40 of 44
IDEA CONNECTIONS:
How can KBR improve subcontract planning?
Ideas
Page 41 of 44
Big Idea
Actions:
1. Communicate scope of work to subcontractor in detail
2. Subcontractor to develop execution plan
3. Review and include subcontractor in all schedule meetings
Obstacles:
1. Subcontractor to sue same program
2. Subcontractor to sue KBR planners and schedulers
3. Include subcontractor in scope of work development
Page 42 of 44
IDEA CONNECTIONS:
How to improve claims management?
Ideas
Page 43 of 44
Big Idea
Were a Team!
Actions:
1. Scope of Work sufficiently detailed to avoid claims
2. Monitor/inspect subcontractor progress to ensure compliance with
schedule
3. Teambuilding process with subcontractor to establish close relationship
Page 44 of 44
IDEA CONNECTIONS:
How to create Engineering awareness of real time issues?
Ideas
Engineering Manager assigned as construction support lead at site
Proactive field information request with weekly teleconference to discuss
Project Director and Engineering Manager focal point review tied to
Page 1 of 26
Big Idea
Accountability and Ownership of Milestones
Place the milestone requirements out, assign a champion for each. Have
champion further assign folks to take on the pieces to obtaining the
milestone. Have the Champion post-regular status to making the
milestone. This should be made available to the field site also so they can
follow the progress to obtaining milestone. Champion must share plus &
minus to the goal and predict the completion in each report. This should
be done in the field also back to engineering.
Actions:
Obstacles:
1. Coordinate issuance of the document and the format
2. Agree on format and how much information to include
Page 2 of 26
IDEA CONNECTIONS:
How to have Engineering Resources available when Construction needs
issues resolved?
Ideas
Page 3 of 26
Big Idea
Positioning for Success
Actions:
1. Review company work methods with process owners for opportunity to
inject requirements that provide the opportunity for earlier and
continuous integration
Obstacles:
1. Paradigms
2. Silos
Page 4 of 26
IDEA CONNECTIONS:
How to come up with integrated EPC Plan?
Ideas
Page 5 of 26
Big Idea
Elicit Planning Culture
Each project will create a construction plan training program which will be
lead by the Construction Management team and attended by discipline
engineers. The goals of this training program will be education, mutual
respect, understanding of inter-relations and ultimately a better team. The
training will be organized on a discipline/craft basis such that like
backgrounds and skills are interfacing on subjects they both know and
hopefully enjoy.
Develop jointly a team culture based on project requirements. Project
Manager and Construction Manager to champion. Identify milestones and
publicise/monitor/reward achievements.
Actions:
1. Provide budget
2. Develop/Implement Program
3. Recognize achievements
Obstacles:
1. Financial constraints
2. Time allocation
3. Resource availability
Page 6 of 26
IDEA CONNECTIONS:
How to Instil Ownership in Engineers?
Ideas
Page 7 of 26
Big Idea
Page 8 of 26
IDEA CONNECTIONS:
How to increase communication between Engineering and Construction?
Ideas
Provide weekly photos of site progress
Work the real issues do not just generalize
Page 9 of 26
Project close-out reports get team together to discuss what went well
and didnt build a level of involvement throughout project
Page 10 of 26
Big Idea
Actions:
4. Budget for personnel
5. Identify employees and stick with tem
6. Include communications in recognition program
Obstacles:
4. Funding
5. Commitment of management
6. Employees agreement to go to the field
Page 11 of 26
IDEA CONNECTIONS:
How To Define Clear Objectives For Project?
Ideas
Page 12 of 26
Big Idea
Macro - Management
Establish simple clear milestones for all key activities (sequential events)
and tie an incentive to it.
Clear milestones for key activities will help the team focus on them and easy
to remember if there is a sequence logic to it, that will help employees
personally interested in obtaining this goal.
Break down difficult tasks into simplistic modules there are manageable
Provide managers and superintendents with clear responsibilities,
authority to manage and hold accountable
Actions:
4. Assign responsibilities
5. Provide Authority
6. Establish incentives
Obstacles:
3. Reluctance to fund incentive
4. No vision of the big picture
5. Non responsive employees
Page 13 of 26
IDEA CONNECTIONS:
How to Obtain Vendor Data On Time?
Ideas
Page 14 of 26
Big Idea
Two Phase Vendor Data POs
How to obtain vendor data on time
On the most critical equipment (long lead, complex, field assembly time),
packaged equipment select supplier and award Engineering P.O. at earliest
stage of project. This is extremely helpful if preliminary funding is available
prior to final project funding. This is additional risk money that must be
committed by owner at the conceptual stage.
Work with suppliers to develop consistent specifications prior to P.O.
placement.
Bid P.O.s in two phases First for Vendor Data and delivered at same time
second for full P.O. award.
If necessary award first PO to one or more bidders keeping competition
going. When successful Ts and Cs are determined, award full P.O.
Actions:
4. Early Purchase of Vendor Engineer
5. Two Phase POs a. Early Vendor Engineer b. Full PO Award
6. Build compelling case for action
Obstacles:
4. Early funding commitments
5. Clients reluctance to early fund
6. Vendor reluctance if no carrot
Page 15 of 26
IDEA CONNECTIONS:
How to make Engineering aware of Construction Needs?
Ideas
Create construction situation room in HOC
Make Construction participation a requisite for promotion to leadership
Page 16 of 26
Page 17 of 26
Big Idea
Constructions Top Ten
Page 18 of 26
IDEA CONNECTIONS:
How to make Engineering have a Sense of Urgency?
Ideas
Have engineers go through a project rotation to get a better feel of the
Page 19 of 26
Big Idea
Open Team Environment
Actions:
4. Develop open floor plan - communicate
5. Team buy-in to early schedule development
6. Recognition
Obstacles:
4. Cost
5. Resources
6. Time
Page 20 of 26
IDEA CONNECTIONS:
How to Ensure Timely Engagement of Engineering and Construction?
Ideas
Page 21 of 26
Big Idea
Obstacles:
4. Difficult to get team together at beginning of project
Page 22 of 26
IDEA CONNECTIONS:
How to have Engineering Buy-in for Deliverables?
Ideas
Page 23 of 26
Big Idea
Integrated Inspection Process
Engineering/Procurement buy-in can be enhanced by having our shop
inspectors report to the Construction Manager, rather than the
procurement group. This way we will close the loop of communication, so
that Engineering, Procurement and Construction all have a say, and get the
information at the same time. It is imperative though, that the shop
inspector report to the Construction Manager.
This inspection process will be defined as to which activities are directly
accountable to the Cost Manager and those which follow the
normal procurement cycle. Construction Manager, Procurement Manager
and Inspector shall review these requirements together before inspection
starts and as the work increases.
Actions:
4. Define the scope
5. Agree on which items are directly accountable to each participant
Page 24 of 26
IDEA CONNECTIONS:
How to Give Engineers Experience in Construction?
Ideas
Give engineers short term assignments in the field
Have construction personnel come to the engineers office to share their
knowledge
Have engineers to participate in workshop such as this one
Assign construction personnel to engineering office team during design
Construction develop execution plan as design develops
Hire engineers with construction experience or require engineers to work
with construction in the field
All engineers are drafted to spend field assignment in Chad
Give bonuses to engineers who are willing to go to construction
Kidnap engineers from their homes and put them on a ship to Quatar
60 day rotating shifts between projects prior to permanent assignment
Make a piping engineer work with a pipe fitter to understand his
problems, electrical, etc.
Help to develop engineers from trained field personnel
Rotate engineers in different construction departments on a project site
Make it part of PPR and job description to participate on project site
Construction to drive the process and identify areas and positions for
design engineers to work at site
Field support assignment
Interaction of engineering discipline leads with construction discipline
leads starting early as engineering develops their Execution Plan and
continuing until transition to field
Page 25 of 26
Big Idea
Project Performance Driven PPR Review
Develop a PPR process for EPC project management leadership teams PPRs
and job descriptions are tied to and aligned with mutual project successes
goal accomplishment. Construction feedback to Engineering PPRs keep
discipline alignment to ensure relevance of feedback Engineering feedback
on Construction PPR requires engineers involvement during construction to
be relevant.
Actions:
4. Create task force to establish format for PPR leadership team
5. Conduct quarterly PPR reviews
6. Require feedback from customer to deliverable owner
Page 26 of 26
IDEA CONNECTIONS:
How to better Integrate Engineering with Procurement and Construction?
Ideas
Do constructability reviews from preliminary 3D models (or the last
closest job)
Rotate people across EPC all the time
Bring in the vendors into engineering phase to co-engineer
Spend more time on projects
Better understand the needs of the project
Look for possible problems that could impact project in the future
Teambuilding
Realistic time frames by all parties
Commitments to perform
Procurement and Engineering teams would attend monthly project
progress/scheduling meetings
Page 1 of 32
Big Idea
Migrate Key Project Personnel to other positions on Project
non-traditional Engineering>Construction
Construction>Engineering
Employee rotation / meeting allows responsibility to be tied to the individual
or team. It also allows for knowledge to be gained on effects ones job has
on others.
List all possible impacts on a project tied to procurement and have a team
review actual project data weekly to identify those that have occurred.
Constructability reviews have always been as excellent tools anyway that can
be enhanced is a potential dramatic improvement.
An EPC team put together for the proposal and works the project together
to completion has the greatest chance of success try to commit people
from beginning to end.
Availability of all correspondence, memos, etc., that are generated on
project available to all personnel increases communication but also give
increase chances for recognition of problems, changes, innovation,
improvement, etc.
Actions:
4. Train or hire multidiscipline personnel
5. Proposal team becomes
6. Use Expedition
Obstacles:
4. Who pays for training
5. Reality of award schedules
6. Not in-house software
Page 2 of 32
IDEA CONNECTIONS:
How to Measure Impact of Changes on Schedule?
Ideas
Material deliveries
Slippage in engineering
Additional manhours to execute the change
Engineering deliverables
Scope changes by client-cost-schedule
Procurement deliverables
Update critical path and review float position
Evaluate, labor/materials and other costs required to maintain schedule
Recovery plan costs
Variance system
Establish change factors (new work = 1.0 change work = 1.5)
Re-forecast with change work included
Consider location and additional material requirements to satisfy the
change
While change activities are being undertaken, consider limitations of
manpower
Page 3 of 32
Big Idea
Assign People to Monitor/Report Changes - Trends
Page 4 of 32
IDEA CONNECTIONS:
How to have a Standard Baseline for Productivity?
Ideas
Page 5 of 32
Big Idea
Page 6 of 32
IDEA CONNECTIONS:
What is the Best Way to Update Current Trending?
Ideas
Better feedback
Set a time line for information to be turned in
Have a person identified to get trending
Be realistic
Base it on actual execution to date and not on a miracle
Make the client part of the review and have him commit to key actions
Trained personnel
Critical review of correspondence
Critical review of subcontractors daily reports
Accurate information in a timely manner
Base on actual scope and schedule
Page 7 of 32
Big Idea
Linkage of Manpower Tool to Critical Path Tool
How to measure impact of changes to schedule?
First to be considered is material availability and schedule impact (neg.)
Once the materials are available, manpower has to be allocated to perform
the work. As this work was not in the original scope, manpower will be reallocated from other scheduled activities causing a ripple effect effecting
the schedule as a whole! What was initially considered to be a manageable
schedule change may in fact be un-manageable.
Identify the critical path to recognize how materials and their location vary
on the impact to the schedule. By doing so, priorities for management of
labor allocations can be sorted on.
The slippage to the schedule due to material growth has to be visible. Also,
there needs to be an allocation (contingency) prepared early-on to anticipate
that some growth will occur. This growth varies if the job is mature (has
been built before) or is a grassroots or revamp (where scope is less clearly
defined). This will allow some flexibility in execution.
Actions:
3. Linkage to Critical Path
4. Build a change contingency into schedule and cost
5. Bring in operators (clients) to model reviews, to minimize tail end changes
Obstacles:
3. Cost (people to link accs & P3)
4. Pressure to keep cost to a minimum during a proposal
5. Cost & availability
Page 8 of 32
IDEA CONNECTIONS:
How Do We Increase Communication of Changes that Might Happen?
Ideas
Get history of this area (changes that have taken place)
Create base/case history
Create evergreen process of changes, types of projects these changes
happen on
Catalog all expected changes by craft/product and send to affected
supervisor
Tie changes back to time sheets, line, PO, etc., and report weekly to
management as accruals cost or credit
Set up individual exception reports that would be created on all changes
and report to project management daily to create a problem log to
address
Develop a plan or work process to standardize procedures
Involve experienced competent personnel in forecasting
Insure line of communication with client project management
Use web based technology to identify changes
Have chat rooms and areas
Page 9 of 32
Big Idea
Earliest Construction Involvement in Initial Facility
Conceptualization
Geographical linkages around the world are now possible for most job
sites at moderate costs via the Internet. We can have similar projects
or specialities linked so they can share information
Create a change management process across EPC that recognizes the
different aspects of these phases. Make the client an intrical part of
this process assign causes to each change
At the first clue of a change, notification and discussion with all
possible effected parties should be undertaken. This process
could/should determine if the change is required, or if it is feasible. It
may end-up that there are any number of reasons why the change should
not be implemented
Actions:
7. Obtain detail of lessons learned from previous similar projects
8. Thorough constructability review
9. Change management process which makes Eng/Const/Client accountable
Obstacles:
7. All projects are different
8. Unforeseen/new problems
9. Getting seamless interfaces between Engineering and Construction and
accountability or buy-in of client
Page 10 of 32
IDEA CONNECTIONS:
How Do We Execute What We Sold?
Ideas
Develop good project Execution Plan
Mobilize top performers into project team Project
Management/Engineering/Construction
Communicate & Communicate & Communicate The Project Scope/Plans
Have employees know what they are selling
Pass on clear information to the project
Have good project leadership
Integrate Engineering/Procurement and Construction early
Proposal group must pass on information from negotiations
Communicate!
Merge EPC schedule early!
Make sure salesmen know what is possible involve Construction
Have Construction involved in the selling
Have no secrets
Page 11 of 32
Big Idea
Sales and Realworld working together before we make the sales pitch to the
Client.
Sales
Use information from the sales group when putting the project execution
plan together
Put project execution plan together as soon after award as possible so
nothing is lost
Make sure salesmen know what is possible Involve Construction during
promise making period
When using information from different departments we should use
people from those departments to agree or disagree with what will be
sold. When we are ready to sale the product, the sales group should
cover with someone (management) from the execution (field group what
will be sold and how much they will trim from the plan in order to make
the sale
Actions:
7. Sales should make a dry run over what will be sold to the execution
department
8. Sales made should have boundaries
Obstacles:
6. Sales takes place so far in advance execution team may not be available
to go over need to use people from projects to review
7. Hurting for revenue
Page 12 of 32
IDEA CONNECTIONS:
How to have Consistent Way of Reporting Quantities Earned?
Idea
Page 13 of 32
Big Idea
Budget and Investigative Team to Research Available
Technology and Develop Implementation
Actions:
7. Budget for technology
8. Involve proper people on team
9. Identify test project
Obstacles:
7. Capital available
8. Client
9. Available technologies
Page 14 of 32
IDEA CONNECTIONS:
How do we get early recognition of changes impacting cost?
Ideas
Have the originator of the change send a notice of change to all affected
Page 15 of 32
Big Idea
Open Communications for All
Actions:
7. Develop relationships/owner/client
8. Open communications between Engineering/Construction
9. Involve owner/client when potential changes are identified have buy-in
Obstacles:
4. Owner/client resistance
5. Improper documentation
6. Different for Engineering and Construction
Page 16 of 32
IDEA CONNECTIONS:
How to have historical trending of quantity growth?
Ideas
Page 17 of 32
Big Idea
Know Your Quantities
Actions:
7. Develop and issue quantity reports early based on estimates vs. actuals as
design progresses
8. Issue at a glance documents to communicate
Obstacles:
7. Engineering design does not have hours budgeted
8. Client does not wait to pay for progressive take offs
Page 18 of 32
IDEA CONNECTIONS:
How to have Engineering Progress based on deliverables not manhours?
Ideas
Page 19 of 32
Big Idea
Measure Engineering on Deliverables based on agreed
alignment between Engineering and Construction
Actions:
6. Change measure of track to only deliverables
7. Engineering must be aligned to Constructions requirements for
deliverables
8. Have Engineering following schedule to meet deliverables
Obstacles:
5. Old way not open to change
6. Lack of communication of requirements need
Page 20 of 32
IDEA CONNECTIONS:
How do we handle management pressure effectively?
Ideas
Appropriate push-back
Provide data to support conclusions
Establish relationships
Change jobs
More support for forecast
Better guidelines for forecasting
Provide very timely feedback
Use historical data to provide evidence
Outline details of problems, issues and concerns
Solicit coaching from those applying pressure on how to execute more
effectively
Take it on as a challenge answer the challenge with action
Do what you think is right regardless
Create a relationship with one of the team members one that you can
share concerns of the job with
Respond to pressure with thought not your emotions
Remember there is pressure in all jobs. A lot of energy can come from
pressure, allow yourself time to think about the pressure
Page 21 of 32
Big Idea
Handling Pressures
By building a relationship with management that tends to place pressure on
us. We both will be able to handle being coached by one another. Coaching
allows for one to share his/her opinions and knowledge. Allowing this there
will be ideas shared on how to handle pressure and even how to resolve
conditions that have caused the pressure to be laced on someone.
Work on not taking the pressures personally usually the pressure falls
on the most
Coal under pressure creates a diamond
Work diligently
Actions:
6. Communicate problems up and down stream throughout the project
7. Deal with pressure objectively
8. Involve management in your problem solving
Obstacles:
4. Ego leave me alone/management resistance
5. Time
6. Individual not capable of handling pressure
Page 22 of 32
IDEA CONNECTIONS:
How to have early warning of delivery slippage?
Ideas
Identify required early vendor information to support engineering
Page 23 of 32
Big Idea
Weekly Meetings to Help Identify Slippage Prior to
Happening
Page 24 of 32
IDEA CONNECTIONS:
What needs to be done to have minimum changes in the plan?
Ideas
Page 25 of 32
Big Idea
EPC Internal Contract
Engineering changes should pass through EPC group before they are
initiated
Change originator should explain change necessity to all downstream
customers
Peanalize for changes/reward for minimal changes
Obstacles:
4.
5.
3.
Because we are EPC Management and peer pressure not to push back
Very little opportunity for downstream customer to participate in
change process
Subcontractor dishonesty
Page 26 of 32
IDEA CONNECTIONS:
How to get accurate initial quantities?
Ideas
Historical data
Early downloads from model
Accept client quantities
Incorporate field personnel into initial take/offs and estimates
Accept limitations of local subcontractors
Tap heavily into historical data at the particular area
Competent personnel to do take/offs
Accurate and reliable information system to convey information
Compare with historical data
ACLS personnel in Engineering office
Use historical data to assume
Improper technology to achieve desired results
Wait on all or a great percentage of the drawings to be issued or until
the model is built
Double check the initial take-offs
Have them extracted electronically from the model
Page 27 of 32
Big Idea
Greater Percentage of Design Completion
Good information
Accurate take off
Review all drawings wait for greater degree of completion
percentage design
Obstacles:
1.
2.
Page 28 of 32
IDEA CONNECTIONS:
How to get Engineering Approvals on time?
Ideas
Page 29 of 32
Big Idea
Actions:
4.
5.
6.
Obstacles:
1.
2.
3.
Page 30 of 32
IDEA CONNECTIONS:
How to trend material delivery effectively?
Ideas
Historic data
Material take off schedules
Construction driven interface with Engineering
Aggressively track each stage of process of one job determine check
points
Actual installed date versus original Construction need date and why
different
Review allowable durations in schedule versus actuals
Continuos track of material
Proper data and up-to-date
Continue to check durations
Better inspection in shops
Track drawing delivery against material schedule
Expeditors provide better information
Keep up with production in shops
Follow schedules very close
Have a specific way of tracking material
Page 31 of 32
Big Idea
Assist Vendor in resolving his Problems
Page 32 of 32
IDEA CONNECTIONS:
How to get KBR and Client alignment?
Ideas
Hold joint contract review session
Set milestones jointly
Hold teambuilding sessions to build camaraderie
Page 1 of 28
Big Idea
Client Alignment
Establish an early session with client to identify and set goals and objectives
jointly with client and obtain concurrence. In project execution, re-visit and
re-confirm goals and objectives oftenpromoting and obtaining buy-in from
new team members as they con on the project. Have frequent opportunities
for informal teambuilding among client and KBR such as lunch, golf, etc.
Reassure that team understands the driving forces that impact the client
particularly, schedule impact, maintenance impact, and operations impact.
Solicit feedback from team on own opinion of alignment.
Actions:
7. Complete joint goal setting process
8. Understand client financial goals of project and impacts
9. Initiate frequent feedback on alignment from team
4.
Establish atmosphere to promote alignment/communication
Obstacles:
7. Time not seen as productive
8. Client confidential information
9. Difficult to get feedback from all team members
Page 2 of 28
IDEA CONNECTIONS:
How to we overcome clients inability to schedule own resources?
Ideas
Identify requirements and resources needed by client to support the
project
Provide schedule for client to provide resources
Identify effects to the project, when client is not effective with
scheduling resources
Publicize needs to upper management of client
Quantify cost and schedule impact of delays
Emphasize teambuilding at individual level on project with client
Show them where they are impacting our efforts
Communicate their impacts in terms of $$$
Clearly identify their specific areas of interface up front
Educate ourselves on impacts to client ability to schedule personnel and
process they use
Page 3 of 28
Big Idea
Contractual Requirement for Client Support
Page 4 of 28
IDEA CONNECTIONS:
How to pre-define schedule incentives in the contract?
Ideas
Page 5 of 28
Big Idea
Page 6 of 28
IDEA CONNECTIONS:
How to make clients pay per the requirements?
Ideas
Page 7 of 28
Big Idea
On Time Payments - Pays
Eliminate all conceivable reasons for the client not to meet their payment
obligations
Be able to demonstrate to client any negative impacts their failure to pay
per requirements will have on the overall success of the project
Document the impacts for later claims negotiation if it comes to that
Utilize previously submitted schedule of values as already agreed to
document for client payment
Offer client incentives for prompt payment
Keep track of Free Bs to client and remind him of them
Actions:
6.
7.
8.
9.
Document any late or no pays along with impact in case of future claims
Refer to previously agreed to payment terms
Late or non payment erodes mutual trust
Establish client discounts for early payment
Obstacles:
6. Non cooperation from client
7. Accounting System Restrictions (SAP)
8. Avoid verbals
Page 8 of 28
IDEA CONNECTIONS:
How to get client aligned internally with their own teams?
Ideas
Formal teambuilding
Written goals and objectives
Early upper management involvement and approval
Teambuilding meetings or dinners
Form Core Group
Client KBR meetings, schedules, milestones, visions and objectives
Facilitate client internal alignment sessions
Hold periodic project review of issues related to client alignment
Have client internal alignment program included in budget
Establish single point of accountability in contract for flow of
communication
Lock them in a room until they can figure it out
Promote client leadership toward the project goals
Page 9 of 28
Big Idea
Actions:
10. Award employees, when found to be proactive on major issue
11. Educate team members to recognize when others seem to be altering the
course
12. Teambuilding
Obstacles:
10. Funds for teambuilding
Page 10 of 28
IDEA CONNECTIONS:
How to keep client from micro managing?
Ideas
Page 11 of 28
Big Idea
Eliminating Client Micro Managing
Actions:
9. Establish work plan execution process with client front line supervision
10. Incorporate client operational requirements into work process
11. Daily meetings with client front line supervision and unit management to
establish clear understanding of work scope and mutual responsibilities to
conduct work
Obstacles:
8. Individual personal agendas
9. Failure to communicate scope changes and schedule revisions to all levels
of client management/supervision on timely basis
Page 12 of 28
IDEA CONNECTIONS:
How to get client cooperation in executing the job?
Ideas
Page 13 of 28
Big Idea
Cooperative Execution
Develop well though out project Execution Plan using basic KBR
guidelines. Know and include client requirements and recommendations.
This document is approved by both parties. i.e. procurement
responsibility matrix
Keep in mind that some client requirements/recommendations may be
adverse to our job execution, such as location of laydown areas, parking,
access and egress, temporary facilities, etc.
Establish list of interface issues; set dates/assign responsibilities to
obtain concurrence from client representatives
Actions:
10. Develop execution plans
11. Have client acceptance of plans and work the plans (define interface
points and establish client responsibility)
12. Monitor execution and provide client feedback
Obstacles:
10. Failure to accept project decision by other onsite client org/depts.
11. Individual personal agendas
Page 14 of 28
IDEA CONNECTIONS:
How to eliminate client rule by committee?
Ideas
Page 15 of 28
Big Idea
Friars Club
Actions:
10. Establish single point of accountability (permanent)
11. Enforce previously approved issues
12. Keep open dialogue throughout job at management level
Obstacles:
7. Lack of stability in client organization
8. Lack of documentation
9. Unrelated pressure on client (corporate policy)
Page 16 of 28
IDEA CONNECTIONS:
How to stop client making decisions about construction without construction
knowledge?
Ideas
Early relationship with key client person or persons to allow client
management internally
Train KBR staff watch and identify early signs of this and nip it in the
bud
Have periodic contract meetings with KBR and key parties from client to
educate
Back to a stricter control of client input to the project, i.e. put inplacefilters
Require construction involvement in decisions by client, that effect
construction
Improve communication between client and construction
Implement a No Change policy
Ensure KBR staff understands client driving force
Ensure KBR staff is aware that such decisions take place and must be
alert not to agree
Develop plan including approach process for client input i.e., changes,
instructions
Meeting schedule for client input
Page 17 of 28
Big Idea
Executive PDN Approvals
Develop a written process including approval document that would allow
client decisions. The client senior site representative and KBR senior site
representative would be the only two signatures accepted and both would
have to sign. Present this to the client representative and ask for his buyin, explaining that he and KBR do not need any of their employees directing
change without approval. If any of these decisions effected the already
submitted execution plan, initiate a PDN.
Relationship between KBR and client at all levels needs to be open and honest
Develop the written process in collaboration with the client. Ensure that
KBR/Client communication is open and encouraged at all levels, start the
integration early in the project cycle.
Actions:
1. Develop written client decision process
2. Enforcement of team integration and communication
3. Discuss reason behind all changes
Obstacles:
9. Us vs. Them
10. Time
11. Communication
Page 18 of 28
IDEA CONNECTIONS:
How do we eliminate unwanted client help?
Ideas
Page 19 of 28
Big Idea
Obstacles:
7. Not all key players available
8. Not all personnel will have agreement
9. Change in Management
Page 20 of 28
IDEA CONNECTIONS:
Ho do we improve client satisfaction?
Ideas
Page 21 of 28
Big Idea
Education for Client Satisfaction
Educate client on our process systems and reports/formats so they
understand and are not surprised or disappointed with our
products/performance
Listen to client they will often let you know what their issues are as you
move through the life of the job providing you with an opportunity to satisfy
them.
As conversations proceed take time to identify possible future disconnects
and discuss ASASP and come to a resolution to keep whatever the issue is
from becoming a time bomb at the clients control to push the button at
the same time damaging the KBR/Client relationship.
Actions:
9. Train clients on KBR processes/procedures/contract
10. Set milestones and communicate the criticality of meeting them with the
project team
11. Establish communication skills courses requirements on all projects with
focus on listening
Obstacles:
7. Alignment of who the client is and what really matters to satisfy them in
the long run i.e., (foreman doing things that are asked by lower level
client members when not authorized)
8. Cultural differences
9. Respect from client to contractor
Page 22 of 28
IDEA CONNECTIONS:
How to get favorable contracts from clients?
Ideas
Page 23 of 28
Big Idea
Catching the Big Fish
Start with honesty and layout what KBR t and s are in detail by showing
examples/samples of reports, pictures (progress) of successful project if
client shows an interest. Create and cultivate an atmosphere of clear
communications at the highest most possible level of accuracy. Dont try to
kid a kidder.
Provide client with data on the value to them to provide us with favorable
terms. It must be perceived as a plus for his company to give us something
different from our competition.
Actions:
10. Sales organization need better understanding of execution and
operations limitations and drivers. Exposures and orientation.
11. Develop better understanding of client drivers and their value to client
Obstacles:
7. Client trust
8. Market driver and client corporation culture
Page 24 of 28
IDEA CONNECTIONS:
How to avoid KBR errors on billing?
Ideas
Review invoice procedure with project team
Meet once a week to review invoice status with client and KBR
Address client concerns weekly with payment issues share with project
team
Training of KBR folks early on in project and explain the effect of errors
to bottom line
Structure simplicity into the invoicing process
Have more than one person capable of checking invoices for errors
Understand client requirements
Training of personnel processing billings
Audit process
Use Enron accounting techniques
Establish the proper procedure early
Hire laid off Arthur Anderson accountants
Allow Adequate Time for KBR internal check of invoices prior to
submittal to client
Ensure field staff inputs are accurate to project controls
Staff review meeting established prior to submission
Page 25 of 28
Big Idea
Balancing the Budget
Actions:
7.
8.
9.
Obstacles:
6.
7.
3.
Page 26 of 28
IDEA CONNECTIONS:
How to get on time payment for clients?
Ideas
Ensure project controls representatives are well trained in understanding
Page 27 of 28
Big Idea
Incentives to Client for Timely Payment
Obstacles:
3.
4.
5.
Page 28 of 28
HOT WASH
SESSION #1
Temperature
Quick Thinking
Interaction with co-workers
Good Communication with Controls
Diverse group to work with
Teamwork
Energy
Participation
Meeting people
Learned a good procedure for brainstorming for ideas/solutions
Interaction on work session
A chance to see how my counterparts looked at issues
Got Out of the Box
Learned new brainstorming process
Addressed real issues
Learned knew techniques
Got people to thinking
At least we are starting to try to innovate
Good conversation met new people and learned new technique
Interesting way for getting ideas out
New ideas on innovation
Demonstration of hands-on problem solving technique
Stimulated creative thinking in a group setting
Nothing covered information too fast
SESSION #2
SESSION #3
SESSION #4
HOT WASH
Value (What value did you get from this session)
SESSION #1
SESSION #2
SESSION #3
SESSION #4
HOT WASH
Insight (What Insight did you get from this
session)
SESSION #1
Divergent/Convergent
New methods
Need to seek input from team
Importance of interaction of ideas between team members
More open minded
Common goals
Think out changes
Better understanding of problems facing subcontract department
Not all subcontracts admins fault
I can change my mind about someone elses ideas
We have a long way to go
Additional ideas often come out during conversation
Looking at the different views of others
There are constructive ways to solve sticky problems
Understand that innovative thinking can be used effectively in this business if
given the opportunity
The ideas that I saw were the way we did things 15 years ago
SESSION #2
SESSION #3
SESSION #4
No matter how self disciplined you are it helps to have these type of sessions
New ideas are always out there
A method to solve problems in my group that I didnt know how
How some others are thinking
There are several different ways to think bout a problem
Others ideas are useful
To better personal skills in the think process and aligned with KBR focus
Things are not always what they seem to be
Different minds see different ideas
Saw how we can learn to think differently
Different opinions on issues
HOT WASH
Different (What would you like to see Different)
SESSION #1
SESSION #2
SESSION #3
Time and follow through can we pick an idea and bring it to this session?
More time
More time this type of sessions will help come up with some solutions
More time/preparation
Longer / electronic format
Liked it fine
More time to do exercise
Allow for presentations to others
HSE do not know much about this staff
Time allotment/explain course basis a little better
SESSION #4
Fine as was
More time
Clearer instructions
Slow down the process by allowing more time
Have coffee
Place name on top of sheet on original document you started with
Room set-up was not good for this exercise
More time to reach conclusions
Need a little more time to do exercises
Nothing, not enough time to expand implementation of brainstorming concept
in any other manner
Conversational approach