San Francisco Bay Bridge - Project Management Issues

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  • 1. Group #9 Bay Bridge Eric Chan Jolene Kuo Huiting Tang Lele Zheng
  • 2. Contents Introduction Modeling, Data gathering and Analysis Conclusions and Recommendations4 Executive Summary1 2 3
  • 3. Executive Summary In the following paper we focus on two of the challenges that arose at different times in the project’s life cycle. Our focus: 1 2 3 4 The importance and the uniqueness of these two problems The conflicts that were caused by the limited resources Their scopes and interdependence The project management processes that were used to manage them
  • 4. What comes to mind?
  • 5. The “Other” Bridge
  • 6. The “Other” Bridge
  • 7. What’s the difference?
  • 8. The “Other” Bridge
  • 9. Loma Prieta Earthquake of 1989
  • 10. Loma Prieta Earthquake of 1989
  • 11. Problems Initial Problem Further problems Overrun Costs • Address the significant overrun costs that occurred, causing a complete halt to the construction.  Retrofitting the existing east span to be more seismically safe  Construct a new seismically safe structure all together
  • 12. Problem 1 Seismic Issue
  • 13. Seismic Issue • Portion of Bay Bridge collapsed in 1989 due to earthquake • Bay Bridge lies within 10 miles of 2 earthquake fault lines • Caltrans investigated and suggested either retrofit or rebuild of the bridge • Rebuilding the bridge would last up to 100 years rather than 30 • Started building in 2002. Built to withstand 8.5 magnitude earthquake and set to SEE (This is defined as an earthquake that generates the largest motions expected to occur at the bridge site once every 1,500 years ) • As of now, major components in place. Should open by September 2013
  • 14. Timeline- Main Points • 1989 Loma Prieta earthquake • Dec. 1996 Caltrans recommends rebuilding • 1997 budget estimated at $1.5 billion • 2001 Caltrans releases new budget of $2.1 billion • 2002 construction begins • 2003 Caltrans revises cost at $2.95 billion • 2004 Caltrans reveals cost of $5.1 billion • 2008 foundation laid, however labor disputes arise and costs rise to $5.7 billion • 2013 bridge expected to be completed
  • 15. East Span construction
  • 16. The NEW East Span
  • 17. Problem 2 Cost Issue
  • 18. Overrun Costs California ran out of money Raw Material Cost Increase 9/ 11 increased the cost of bonds for construction Overrun costs = ??? Top down budgeting was not working Resource usage changed Contingency fund was not enough
  • 19. Budgeting Management Involved engineers and outside resources Governor Office had the right to audit Bridge finances Bottom up Fiscal Responsibility Change Resources Lower raw materials cost Solutions
  • 20. Budgeting Management Involved engineers and outside resourcesBottom up Divide the project into 13 smaller projects to obtain competitive bids “Buy America” Clause
  • 21. Budgeting Management Governor Office had the right to audit Bridge finances Fiscal Responsibility California Legislation eased bond requirements so Caltrans could obtain bonds for the overrun cost. California would cover 43% of the overrun cost. Caltrans traded federal funding with state funding
  • 22. Budgeting Management Change Resources Lower raw materials cost “Buy America” Clause Caltrans traded federal funding with state funding Able to use foreign steels and other raw materials Outsource the building to China, Japan, Korea, and England
  • 23. Conclusion
  • 24. Conclusions & Recommendations Recommendations Recourse Leveling Planning-monitoring- controlling process May help avoid lagging the project and finish it before the deadline of 2q013. May help foresee any causes that could either delay the project or produce extra overrun costs Conclusions  The first issue  Reflects the application of risk planning and budgeting in project management.  However, the construction is still underway.  The second issue  Relates to cost estimating in project management.  The cost estimating process may be the main factor of the overrun costs.
  • 25. The Bay Lights