Successful Dispute Resolution
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Presented at the 2012 Construction CPM Conference, this presentation walks through the challenges of owner/contractor and JV disputes and reviews solutions and prevention techniques using Fuse.

Presented at the 2012 Construction CPM Conference, this presentation walks through the challenges of owner/contractor and JV disputes and reviews solutions and prevention techniques using Fuse.

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Successful Dispute Resolution Presentation Transcript

  • 1. Successful Dispute Resolutionusing Acumen Fuse enterprise project analysis Dr. Dan Patterson PMP | CEO & Founder Acumen
  • 2. 2Agenda! Introductions! Fuse & forensics overview! Case study #1: Owner/Contractor Dispute! Case study #2: JV Dispute January 24, 2012
  • 3. Acumen: Proven Project Analytics! Project Management Software Company! Improving CPM scheduling & analysis! Thought leader in Analytics S1 > S5™ Framework Acumen Core Offerings S5: Acumen Fuse® Validate S4: Optimize S3: Risk- S2: Adjust Risk Assessment Workshops Critique S1: Build Software Training
  • 4. 4Why do Disputes Arise?•  “Planning the work” and “working the plan”! Causes of failure •  “Unrealistic & inadequate planning” or “Poor Execution” •  Poorly contracted terms, Misaligned expectations •  Loosely defined scope/ High degree of change! The challenge of CAPEX projects ! Large projects are inherently complex to model ! Gantt charts/CPM tools don’t lend themselves to team insight! The Solution: Project metric analysis & Forensics ! Pinpoint root-cause of schedule flaws & true risk exposure ! Resolution of cost/schedule/risk/performance issues through optimization ! Study of event interaction using CPM… … to understand significance of deviations from a baseline for potential use in a legal proceeding.! Hindsight vs. Foresight approach January 24, 2012
  • 5. 5Forensics & Metric Analysis! Objective: to align plan & execution! Planning ! Quality of schedule basis ! Realism of estimates ! Accuracy of sequence ! Risk-adjusted! Execution ! Comparison of scenarios e.g. as planned V as built ! Windows analysis e.g. absorption of float ! Non-progress revisions – changes… ! Baseline compliance January 24, 2012
  • 6. Planning Forensics 6Framework •  Schedule Basis EPA LANL URS •  Reflects latest scope/contractor S1 updates •  Critiqued Schedule SAIC Shaw NASA •  Structurally sound, no contingency, S2 sound logic General DCMA Fluor Dynamics •  Risk-Adjusted Schedule •  Estimate uncertainty, risk events S3 L3 GAO Battelle •  Optimized Target Scenarios •  Reduced hot spots, higher confidence S4 Dow Chemical ConocoPhillips NAVAIR •  Team Validated Scenario •  Buy-in on mitigation plans S5 SRS US Navy Bechtel January 24, 2012
  • 7. 7Introduction to FuseEnterprise Project Analysis! Fuse: analytics platform ! Improves schedule quality ! Insight into performance & forensics! Fuse 360: goal-based acceleration ! Schedule Acceleration ! Decision-support January 24, 2012
  • 8. 8Analysis Three Analysis ModulesMetric Analysis Benefit: Pinpoint shortcomings! Metric! Slice and dice Analysis About:! 250+ metrics! Industry Standard! Unique-to-Fuse metrics! Customizable January 24, 2012
  • 9. 9Metric Analysis January 24, 2012
  • 10. 10Analysis Three Analysis ModulesLogic Analysis Benefit: Identify & remove flaws! Metric! Simplify complexities Analysis About:! Recognizes multi-project relationships Logic Analysis January 24, 2012
  • 11. 11Logic Analysis
  • 12. 12Analysis Three Analysis ModulesForensic AnalysisBenefit:! Schedule comparison Forensic Metric ! Calculate variances Analysis Analysis ! Identify changes About:! Any attribute or field Any number of schedules Logic Analysis! January 24, 2012
  • 13. 13Forensic Analysis As planned VKey is not just what changed but Half Step V As the impact of the change Built
  • 14. Case Study #1Execution Delay Dispute ! Project incurred massive schedule delays ! Disagreement as to root cause of delay ! Ongoing financial exposure was huge ! As expert witness, Acumen asked to: 1.  Determine realism of schedule(s) 2.  Give insight into highly complex plan 3.  Perform schedule risk analysis 4.  Pinpoint delay drivers (root cause) 5.  Offer acceleration scenarios
  • 15. 15Schedule Critique! Developed a library of core metrics to give insight into schedule basis quality! Drivers ! Missing logic ! Constraints ! Use of Lags Became the basis! Effect of the 300 ! Negative float metrics built into ! Logic Density™ Fuse ! Float ratio™ January 24, 2012
  • 16. Fuse Schedule Quality 16Index™! Overarching schedule quality score! Helped with assessing multiple versions of the schedule! Enabled trending of schedule quality! Pinpointed shortcoming by contractor January 24, 2012
  • 17. 17Logic Density! Indicator as to the quality of logic! Highlighted extreme schedule complexity in early phase of execution
  • 18. 18Driving Path Analysis! Pinpoint driving path(s)! Specific Activity ! Trace forwards, backwards! Two Activities ! Path between them! Link visualization ! Show movement! Highlighted breaks in the driving path!
  • 19. 19Additional Logic Analysis January 24, 2012
  • 20. 20Variance Analysis! Pinpointed changes to plan on monthly basis! Isolated owner of change! Determined planned or unplanned January 24, 2012
  • 21. 21Baseline Compliance™! Used to determine how close a schedule was planned and executed against it’s baseline! Measure of well the plan was being executed! More than just date comparison! Looked at period-compliance January 24, 2012
  • 22. Compliance Scenarios
  • 23. Compliance Metrics
  • 24. Baseline Compliance™ Analysis100% 80% 60% 40% 20% 0% Looked at correlation with changes/correlation analysis
  • 25. 25Summary of Analysis! Pinpointed specific shortcomings in schedule! Determined areas of repeated scope change! Determined owner/driver of unplanned change! Unique insight into true risk expousre January 24, 2012
  • 26. Case Study #2Joint Venture Dispute•  Oil & gas CAPEX project•  Completion Nov 2018 (year later than JV board willing to sanction)•  Pre-FEED already slipped by 6 months•  Determine true first production date•  Understand & agree P50/P75 risk exposure•  Identify scenario to get project back to original target completion Risk exposure Acceleration Realism (S2) (S3) (S4)
  • 27. 27Detailed Risk Analysis! Hidden critical paths! Risk Hotspots! Risk exposure over time January 24, 2012
  • 28. 28True Risk Profile10090 Team Perception80 True Risk Exposure70605040302010 0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 January 24, 2012
  • 29. 29Accelerated Scenario! Choose ! Target date ! Duration acceleration ! Best possible! Cleansed schedule! Specific criteria January 24, 2012
  • 30. 30Project Criteria Set! Defined series of steps! Steps contained rules ! Duration reduction ! Calendar adjustment ! Lag reduction ! Constraint elimination! Set priority ! Earliest/latest ! Longest ! Easiest/least resistance! Targeted activities ! e.g. exclude procurement January 24, 2012
  • 31. 31Scenario #1 Analysis Results
  • 32. Schedule 32Acceleration Efficiency™Example 1 Example 2! 2 day project acceleration ! 2 day project acceleration! requires 2 days of reduction ! requires 2 days of reduction! Acceleration Efficiency =2/2 100% ! Acceleration Efficiency=2/3 67% 2 day activity reduction 2 day activity reduction 1 day activity reduction 2 day project 2 day project acceleration acceleration January 24, 2012
  • 33. 33Results: Risk & Acceleration! Balance between risk & acceleration! Able to achieve12 month acceleration! P50 dates reflected 10 month acceleration January 24, 2012
  • 34. Want to Avoid DisputeResolution?120%100%80%60%40%20% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Fuse Quality Index™
  • 35. More information:White papers: www.projectacumen.comSoftware Trial: www.projectacumen.com/trialTwitter: @projectacumenEmail: info@projectacumen.com