Role of the Independent Engineer in Major Projects
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1 Role of the Independent Engineer in Major Projects Catherine LeBlanc, P.Eng., Manager of Engineering, Project Technical Office, Contaminated Sites Program Branch April 27, 2016
2 Background Information The Department of Indian Affairs and Northern Development Canada and the Northern Contaminated Sites Program (NCSP) is responsible for a portfolio of abandoned mine sites in the north, which require remediation and closure. 2
3 NCSP Projects The portfolio consists of projects and major projects. Projects Total Project Cost of between $250k to $100M Require 1 to 9 years to carry out Major Projects Total Project Cost of more than $100M Require 10+ years to carry out Treasury Board Project Complexity and Risk Assessment (PCRA) index of 3 or 4. 3
4 Northern Contaminated Sites Program NAO - ADM Executive Director - NCSP Director Program Directorate Director Faro Mine Remediation Project Director Giant Mine Remediation Project Regional Director General - NU Regional Director General - NWT Regional Director General - Yukon Director Project Technical Office 4
5 Project Technical Office Ultimate goal of PTO is to help ensure successful projects with the NCSP. Provides Technical support to: Project Teams Program Directorate Facilitates Independent review for Sponsor/Owner 5
6 Major Projects Faro Mine Remediation Project (Yukon) United Keno Hill Mine Project (Yukon) Giant Mine Remediation Project (NWT) Tundra Mine Project (NWT) 6
7 Faro Mine Remediation Project 7
8 UKHM Remediation 8
9 Giant Mine Remediation Project 9
10 Tundra Mine Remediation Project 10
11 Why do Major Projects need an Independent Engineer? Because Major Projects can FAIL due to lack of sufficient planning and tracking scope, schedule and budget Used on large projects by government, courts and financial institutions 11
12 Independent Engineer for NCSP NCSP recognized a need for Independent Engineers Ensuring value for money when large funds are being spent Tracking project goal success The size and complexity of the major projects It is a best practice to retain an Independent Engineer for large complex project with multiple stakeholders The IE monitors the quality of work related to financial, construction, health and safety, or technical products. The IE also only focuses on substantive issues only, to ensure that products that are used on the project will meet the overall goals of the project. Evaluating project performance relative to established requirements and guidance 12
13 Independent Engineer for NCSP Independent Engineers have been used previously in Industry Sydney Tar Ponds Confederation Bridge NCSP Independent Engineer Terms of Reference and Standard Operating Procedures were based on previous Independent Engineer Projects 13
14 What is an Independent Engineer? How vs What Independent Engineer Project Function Project Management System and Execution Validation of Requirements Performance and progress against Plans Technical Review Technical Review Committee and Independent Peer Review Design review Design changes 14
15 Purpose and Objective of the Independent Engineer The purpose of the IE is to provide objective, unbiased, third-party professional, technical, and project management reviews to analyze and assess the technical and financial merits of the project. The objectives of the IE role are to review and assess the following: 1. Care and Maintenance, and remediation activities are conducted in accordance with project specifications and agreements 2. Proper INAC project management and construction management processes are in place and reflective of industry best practices, and are working properly 3. Value is obtained for goods and services received for the project, including those obtained through contracts and subcontracts 15
16 Roles of an Independent Engineer Reviews in accordance to Project Objectives Classification of reviews include minor, medium and major reviews depending on level of effort required. Types of reviews can include: Project Execution Plans Annual Work Plans Monthly and Quarterly Reports Specific Work Packages Submission for Preliminary Project Approval to Treasury Board Cost Reviews 16
17 Roles of an Independent Engineer Monthly Report Review Project Monthly Report Work completed Work to be completed Scope, schedule, budget changes Technical/Implementation Issues Project Review Issues / Comments / Concerns Regulatory Engagement Health & Safety Issues Inspection & Environmental Incidents Lessons Learned IE Monthly Report Sources of Information Updates on Previous Recommendations Observations on report Project Progress Variance Conclusions Recommendations 17
18 Roles of an Independent Engineer Cost Review Monitoring for value and accountability in contracting and budgeted expenditures Evaluating technical and financial merit/viability of the construction phase of the project, with respect to care and maintenance and remediation activities Reviews basis of estimates for various work packages or the entire project budget 18
19 Review Cycle Project Report Review by the IE Comments to Project Team Consolidation and Tracking Report to Project Sponsor 19
20 Questions? Catherine LeBlanc, P.Eng., Manager of Engineering, Project Technical Office Contaminated Sites Program Branch Northern Affairs Organization Indigenous and Northern Affairs Canada (INAC) 10th floor - 15 Eddy, Gatineau, QC tel: Catherine.Leblanc@aandc-aadnc.gc.ca 20
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