Project Scope and Budget Management

Transcription

1 Project Scope and Budget Management Process and Procedure Training New Construction Branch April 7,

2 Agenda 1. Project Budgets, objectives of the procedure and the types of Project Scope Changes 2. Procedure walkthrough and filling out the Project/Budget Modification (PBM) form 3. Relationship between Estimate at Completion (EAC), Expedition ACR forms, and the Project Budget Modification form 4. Cost Codes and Real Estate Site Cost Estimate (5 page report) 5. Questions and Answers (Q&A) Erik Blum Philippe Besson Wendy Kaszycki Jeremy Christensen All 2

3 Project Budgets During Project Definition, project cost estimates are based upon: Established set of criteria and assumptions (Phase I and Phase II & III) Preliminary Space Program Approved Project Budgets reside in: Expedition Strategic Execution Plan COLIN New Construction Reporting Warehouse Coming Soon 3

4 Objectives of the Procedure Document all additions or deletions to approved project scope and/or budget. Ensure that all Departments that are impacted by the scope or budget change have reviewed and approved it. Ensure that the project is properly funded Provide proper control and management of the Program Reserve account. 4

5 Site Project Scope and Budget Management Types of Scope Changes Location of site changes Addition of parcels Land Acquisition cost changes Program Additions or deletions to approved School Building (Space) program: Number of classrooms Gross Square Footage Type of School Site Acres Design Design modifications required to align design estimate with Construction budget 5

6 Types of Scope Changes Unforeseen Conditions Soils report impacts, liquefaction Results from initial environmental assessments Required PEA, RAW, RAP Other Scope Changes Consolidation between Project(s) Project Name Changes Any other reasons for a cost adjustment 6

7 Procedure Walkthrough Terms and Definitions Budget Buckets and budget ownership Project/Budget Modification Process Flow Program Reserve Requests Filling out the Project/Budget Modification (PBM) form 7

8 Terms and Definitions Buckets a.k.a. Phases - contain cost codes Cost Codes lowest level of budget and expenditures Scope Mod any change to the Project Scope (DCFE) Budget Mod has a net impact (+ or -) $ change to budget Project Mod no net (+ or -) $ change to overall budget Intra-bucket mod within bucket no budget impact Inter-bucket mod between buckets no budget impact ACR Expedition Anticipated Cost Report detailed budget (related to BMR s and PMR s) Department Project Owner Real Estate or Const. Originating Department Owner identifies need for $ Impacted Department Owner impacted $ (+ or -) 8

9 Type of PBM Matrix 9

10 Budget Buckets and budget ownership 1. Site Bucket Real Estate Department Owner 2. Environmental 3. Plans 4. Construction 5. Management 6. Tests 7. Inspection 8. Furn & Equip 9. Community Outreach 10.Project Reserve Real Estate/Construction & OEHS School Planning and Design Construction Various, depending on Cost Code Construction Community Outreach Construction/Real Estate/SPD 10

11 Project/Budget Modification Process Flow Scope change requires a modification to approved Project Budget Program Scope Change? No Yes DTM/OAR reviews Space Program change with Design Requirements (L. Padilla); Obtains revised space program Grants & Funding (K. Lee) Revises State Match construction analysis Estimating Unit (L. Luu) Estimates budget based on construction trends Budget Manager/Cost Analyst and DTM/OAR set local funds contribution DTM/OAR fills out and signs the Project/Budget Modification Form (PBM) and obtains DM/RD approval (signature) Has the Budget increased more than 5% over the SEP amount? Yes No DTM/OAR prepares file folder and places PBM form in folder, fills out the Inter-Office Transmittal Info form and attaches to the left-inside of the folder Regional Cost Analyst Enters the Budget Mod Request (BMR) or Project Mod Request (PMR) into Expedition in NEW (Pending) status and prints a new ACR for DTM/OAR 1 2 DTM/OAR prepares Memo to Board for DCFE DTM/OAR signs Project/ Budget Modification form Budget Manager/Cost Analyst initials PBM (Real Estate Only) Project Controls Manager initials PBM (Real Estate Only) Originating Department Director signs PBM (as required in table A-1) Is PBM an Intrabucket mod? Yes DTM/OAR completes a Project Mod Memo, scans form and memo into Document Control system. Then, attaches scanned image to an e- mail and CC s to list at the bottom of the Project Modification Memo. PBM Package with wet signatures to Project File. Region Cost Analyst approves the BMR/PMR in Expedition Program Controls scans Program Reserve Request Memo, Program Reserve Request, and Project Modification form into Document Control system. Then attaches scanned image to an e- mail and CC s to list No Does PBM have Net Impacted Department Yes Program Controls Does modification Yes impact to Project Director signs PBM (as Manager (E. Blum) require Program Budget or change required in table A-1) obtains DCFE Approval Reserve funds? 3 Program Scope? 11 4 No No See separate Program Reserve Request Process Flow Chart

12 Program Reserve Requests Required when a PBM requires additional funds not currently part of the project budget & When Program Reserve, under management of the DCFE is part of the additional funding When a project has a budget surplus that needs to be returned to the Program Reserve Process: Program Controls generates Program Reserve form and obtains DCFE Approval Program Controls prepares memo to Grants and Funding to transfer funds into Project Budget Program Controls scans PBM package into Document Control Cost Analyst logs approved Program Reserve Request into 12 Expedition

13 Project/Budget Modification (PBM) form Initiated by: Department / Region: Expedition Proj. #: Project Name: Expedition BMR#/PMR#: SECTION A: SCOPE CHANGE Type of Change: (check all that apply) Intra-Bucket x Site Program Design Unforseen Conditions x Inter-Bucket Project Scope/Budget Change Other: Scope/Budget Change Justification: (Include any major changes in GSF, # of Classrooms, site size, detail of impact to each project/budget category) Schedule Impact Summary: (Attach P3 schedule documentation, if required) Don t forget the Expedition BMR/PMR# Be as descriptive as possible in the justification 13

14 Project/Budget Modification (PBM) form SECTION B: SCOPE/PROGRAM IMPACT x Significant change to GSF (>2% of total GSF): Change to # of Classrooms: HS MS ES K EEC Change to School Type: Change to Gross Site Acres: Current Proposed Complete the Current Scope/Program for all PBM s Get the Scope info from COLIN (NC Data Warehouse) If there is a proposed change check the type and enter the proposed number Definition of Gross Site Acres read the form 14

15 Scope/Program Info in COLIN Type dc1 in your web browser and login as guest Navigate to the Project by clicking the Region tab and look for the Project 15 Once in the Project click on the Statistics tab

16 Project/Budget Modification (PBM) form SECTION C: BUDGET MODIFICATIONS REQUIRED: Attach the Expedition Anticipated Cost Report (ACR) indicating cost adjustment breakdown by line items Budget Category Current Project Budget (Expedition ACR, Column C) Cost Adjustment (+/-) (Expedition ACR, Column D) Revised Project Budget (Expedition ACR, Column G) (1) SITE $5,000,000 $500,000 $5,500,000 (2) ENVIRONMENTAL $225,000 $0 $225,000 (3) PLANS $1,000,000 $0 $1,000,000 (4) CONSTRUCTION $20,000,000 $2,000,000 $22,000,000 (5) PROJ MGMT $500,000 $0 $500,000 (6) TESTING $200,000 $0 $200,000 (7) INSPECTION $500,000 $0 $500,000 (8) FURNITURE & EQUIPMENT $2,000,000 $0 $2,000,000 (9) COMMUNITY OUTREACH $500,000 $0 $500,000 (P) PROJECT RESERVE $0 $0 $0 Budget Mod increase over 5%. *TOTAL $29,925,000 $2,500,000 $32,425,000 Include memo to Board. *Net Project Budget Increase/Decrease $2,500,000 * If Net Project Budget Increase/Decrease=0 then do not complete Section D below Enter Current Project Budget from Expedition for all PBM s If Net Increase (+ or -) requires DCFE approval and completion of Section D Funding Strategy If red error message pops up make sure to include memo to 16 the board

17 Project/Budget Modification (PBM) form SECTION D: PROJECT FUNDING STRATEGY FUND AREA PRGM IFS PROJ Fund Description (BB, Measure K, etc.) * Total Revised Funding Strategy must equal Revised Project Budget (D) Project Funding Strategy (E) Funding Adjustment (+/-) (F) = (D) + (E) Revised Project Funding Strategy Measure K - Phase 1 $0 $0 $0 Measure K - Phase 2 $0 $0 $0 Prop 1A $0 $0 $0 Other $0 $0 $0 New Fund Source $0 $0 $0 New Fund Source $0 $0 $0 *TOTAL $0 $0 Revised Funding <> Revised Budget **PROGRAM RESERVE REQUEST FILL IN Res. Req. #: ** Indicate amount of Program Reserve requested with this modification Program Controls Use Only Project Funding Strategy can be found at: P://fsd/funding strategy/funding strategy xls COLIN (NC Reporting Warehouse) Coming Soon! Revised Funding Strategy must equal the Revised Budget! Don t forget to fill in the amount for the Program Reserve 17 Request!!

18 Project Funding Strategy in COLIN 18

19 Project/Budget Modification (PBM) form SECTION E: APPROVALS The following signatures are required as indicated for approval of the proposed change: Signature Name (Print) Date Project Manager (OAR/DTM) Required for all PBM's Senior Project Manager Required for Projects Managed by Construction Department Dev. Manager/Regional Director Required for all PBM's Originating Department Director Required for all PBM's Impacted Department Director Required for "Inter-bucket" and Project Scope and Budget changes Impacted Department Director If more than one impacted dept. Deputy Chief Facilities Executive Required if Project Scope Change or net impact to total Project Budget Forward the original Project Modification Form to the Project Manager with copies to the following: 19

20 Expedition BMR s and PMR s Budget Modification Requests (BMR s) Change to Total Project Budget < or > $0 => Generally requires an Authorization for Utilization of Program Management Reserve Project Modification Requests (PMR s) Changes within the Project Budget Net change to the budget =$0 Expedition Process Flow see handouts 20

21 Expedition ACR s ACR Detail w/o Expended or ACR Proj/Bdgt Mod Version used for EAC s 21

22 Expedition ACR s ACR Detail ( Project/Budget Mod Version ) attached to PMR/BMR 22

23 Expedition ACR s Checks and Balances EAC Over/<Under> is basis for BMR value: ACR Proj/Bdgt Mod Version now shows Pending Revisions Amount: 23

24 Expedition ACR s Checks and Balances EAC Over/<Under> is basis for BMR values by cost code ACR ProjBdgt Mod Version now shows Pending Revisions by cost code 24

25 Expedition ACR s Checks and Balances ACR vs Project/Budget Mod Section C -Phase Subtotals -Current & Pending 25

26 Expedition Process Cost Analysts - BMR Expedition Change Order Module Create a Document type BMR To: LAUSD; From: LAUSD Tie to BUDGET contract Total Amount in Value Tab, Lump Sum Amount Cost Distribute (Coins) to Affected Cost Codes (will automatically be Cost Category: BUDGET Pending ) Approve BMR after it s signed by Deputy Chief Facilities Executive 26

27 Expedition Process Cost Analysts PMR s Same process as BMR s except: Create a document type PMR Approve PMR after it s signed by Originating and Impacted Department Owners 27

28 Expedition Reports Is my BMR approved? 3 Multi-Project BMR/PMR Reports Approved BMR/PMR s with prompt for date (>dd/mm/yyyy) All BMR/PMR s Approved ( APP ) or Open ( NEW ) Open BMR/PMR s 28

29 Real Estate Site Cost Estimate (5 page) Four reasons for generating the form (on the drop down) Preliminary Site Analysis Set Baseline Project Project Modification Anticipated Costs only Form then feeds Expedition in ACR Anticipated Why is this important? Updates Project for budget purposes Eliminates the need for Terrence s RE Report Card Memorializes and makes estimates official 29

30 Real Estate Site Cost Estimate (5 page) Always have the Project Director review the RE Site Cost Estimate before entering it into Expedition Before using the Estimate to modify the Project Budget it needs to be approved by Terrence Fennessy Give the Estimate form to your Cost Analyst to enter into Expedition as Anticipated If the budget needs to be modified the analyst will enter the Expedition PMR or BMR and the DTM will complete the PBM form Make sure to enter the appropriate site, tenant and parcel information in the Real Estate Database any time you get a Site Cost Estimate approved as your budget 30

31 Key Points to Remember ACR s Project/Budget Mod Version are to be attached to all Project/Budget Modifications ACR s Pending Revisions (Column D) must equal the value of the PMR/BMR (Cost Adjustment Column and Funding Adjustment ( E ) Funding Strategy section required for all BMR s ACR Current Budget (Column C Bucket Subtotals ), PMR/BMR Current Project Budget and Project Funding Strategy ( D ) must all be equal ACR Projected Budget (Column G), PMR/BMR Revised Project Budget and Revised Project Funding Strategy ( F = D + E) must all be equal 31

32 Key Points to Remember PMR s are $0 net impact to the Project Budget (Intra and Inter-bucket Mods) PMR s must be signed by the Originating AND Impacted Department (Inter-bucket) PMR s (Intra and Inter-bucket) are scanned by the Region into LAUSD Docs BMR s are a < or > $0 net impact to the Project Budget (Project Scope/Budget Change) BMR s must be signed by all Originating and Impacted Departments AND DCFE Program Controls will process Program Reserve Requests for BMR s affecting the Program Reserve BMR s are scanned by Program Controls into LAUSD 32 Docs and then to distribution

33 WIIFM - What s in it for me? Budget Change Documents only get entered once Streamlined process & documentation Documents history of all changes to the Project Budget Maintains existing IFS control points Consistent method of Project Budget management to support a clean handoff to Construction Do it or Terrence will kick your BUTT! 33

34 Questions and Answers 34

35 Contacts for additional information Program Reserve Subject Project Scope and Budget Management Policies and Procedures Grants and Funding Funding Strategy issues Expedition (BMR s, PMR s, ACR s and Reports, etc.) COLIN (NC Reporting Warehouse) Real Estate Site Cost Estimates Contact Erik Blum Vic Muro Beth Hamby Jay Dolinky Jeremy Christensen Jeremy Christensen Jeremy Christensen Extension