Process Assessment and Organizational Development Support (Re: Rate B)
Thisusuallyinvolvesa1-2weekonsitereviewofyourdepartment’sfunctionalityincludingdocumentreviews,staffinterviewsand workshops.Agapanalysisrelativetoindustrybestpractices(e.g.,TCMFramework,AACERPs,CII,etc.)isconductedandareportis prepared including recommendations and a prioritized Action Plan to address gaps. This may involve: Process Assessment•Assessment:evaluatethestateandperformanceofyourestimating,riskandrelatedprocessesandtheiralignmentwithyourbusiness objectives and project system. •Planning for Process Improvement: Develop strategies and plan activities and resources.•Reengineering/Process Mapping Workshops: Implement planned process improvements.•Procedures: Support owner in developing procedures in alignment with process.Organizational Development and Training•Assessment:evaluatethestateofyourorganization,theskillsandknowledgeofthestaff,andorganizationalalignmentwithobjectives, processes, methods and tools. •Planning for Organization Improvement: Establish strategies and plan activities and resources.•Model Development: Develop competency/capability development models and career paths.•Training: Implement improvement actions through customized training and workshops.•Coaching: provide managers and leads with support and advise as needed.Check-ups and Interventions•Forworkorprojects-in-progress,checkhowprocessandorganizationarefunctioning,investigatedeviationsfromexpectationsand recommend corrective actions.Notethatthesearenotoverall,generalprojectsystemreviewsorbenchmarkings,butworkinglevelassessmentsbyarecognized expert in these fields; the resultant Action Plans are specific and practical.
Methods and Tools Development, Implementation & Training (Re: Rate B)
Note:thisisfor“niche”methodsandtoolsthatmeetneedsforwhichcommercial3rdpartysystemsareunavailableorinappropriate. Theserviceusuallyinvolvesaneedsassessmentfollowedbydevelopmentofaspecificproposalforcustomtooldevelopmentand implementation. The consultant has successfully implemented tools for the following:•Estimating Methods and Tools (e.g., owner Class 5 and 4 cost models)•Project Historical Databases for cost, schedule and risk information and metrics•Estimate Validation Methods, Tools and Metrics (i.e., application of historical data)•Risk Analysis and Quantification Methods and Tools: see ProductsVE’sgoalistoleaveeachclientself-sufficientintermsofowningandcompetentlyapplyingthemethodsandtools(toNOTbe dependent on ongoing consulting support).
Estimate Review & Validation and Risk Analysis & Contingency Estimation (re: Rate A)
These are the company’s namesake services. See the book “Project Risk Quantification” that covers these services.•Estimate Reviews (at gate):Thisiscombinedqualitativeandquantitativereview(validation)ofanEngineer’sorEPC’sClass4or3(Pre-feasibilityorFeasability)estimateonbehalfoftheowner.Thegoalistodetermineiftheestimatemeetsownerrequirementsand provides a suitable basis for decision making, funding and control. Recommendations for improvements are provided as appropriate. •Estimate Reviews (during phase):Gatereviewsareoftenfrustratingandineffectualbecausethereisinadequatetimetofix difficienciesbeforetheBoardmeeting.Theestimatepreparationprocessshouldinsteadbereviewedstep-by-step,includingatkick-off, atcompletionofkeyintermediatedeliverables,andthenpriortothegate. Thisresultsina“no-surprise”finalreviewandgreaterquality and confidence. •Risk Analysis and Contingency Estimation:VE’sexperiencewithestimatereviewsisthatcontingencyestimatesareofteninadequate andneithertheownerorcontractorareequippedtodothemproperly(i.e.,inanempiricallyvalidatedway.)Therefore,theconsultant hasexpertisetofacilitatecostandscheduleriskanalysisworkshopsandtoquantifythecontingencyusingbestpractices(seeProducts). This may be part of an estimate review or a stand-alone effort.
Expert Task Support or Advise (Rate A or B depending on scope of service)
Oftenaclientisinneedofexpertsupporttoconductallorpartofparticularanalysis,evaluationorothertask(inadditiontoestimate reviews and risk analyses, etc). These may include, but are not limited to:•Investment Analysis (e.g., life cycle cost modeling)•Investment Decision Support (e.g., decision modeling)•Project Cost Estimate Preparation (e.g., conceptual level check estimate)•Escalation Estimating•Negotiation and Claims Support•Historical Data Capture/Cleaning/Normalization•Be Part of an Independent Project Review Team (focused on estimating, project control and risk management aspects)•and more...
Typical Billing Rates (subject to change, may vary depending on specific scope of services)
A. Expert Advisory/Witness: Expert witness or expert/managerial advisory or coaching services, generally of limited duration and scope. Base Rate: US $250/hour plus expenses and travel time at half rate up to 8 hours each way. B. Project and Program Analyses: Mission-critical, time-is-of-the-essence services of significant scope. Primarily independent project estimate reviews and validation, risk analyses and contingency estimate development, and similar (the types of work for which errors-and-omissions insurance is appropriate). Base Rate: US $200/hour (or senior technical engineer or team lead equivalent on established third party rate schedules) plus expenses and travel time at half rate up to 8 hours each way. C. Process and Tools Improvement: Assignments are not time critical and the scope is important but investment is sometimes difficult to justify. Primarily long term organizational continuous improvement efforts such as process and procedure review and development, estimating and risk analyses tools development and implementation, and similar. This also includes bespoke training for these elements or training outside the AACE International community via third parties. Base Rate: US $100/hour plus expenses and travel time at half rate up to 8 hours each wayD. Pay-It-Forward: Helping groups and organizations improve their Cost Engineering skills and knowledge. Primarily full day or more training, workshops and seminars on general Cost Engineering topics within the AACE International community. Base Rate: Expense reimbursement plus nominal honorarium where appropriateE. Mentorship: Helping motivated young and/or developing professionals achieve their full potential. Primarily general technical advice, draft paper reviews, and informal coaching. My experience is that each work assignment, workshop or presentation introduces me to at least one person seeking professional guidance in some respect; I encourage them to contact me with their questions at any time. This is an extension of my 25+ year history of volunteering via AACE International. Base Rate: Patience
Thisusuallyinvolvesa1-2weekonsitereviewofyour department’sfunctionalityincludingdocumentreviews,staff interviewsandworkshops.Agapanalysisrelativetoindustry bestpractices(e.g.,TCMFramework,AACERPs,CII,etc.)is conductedandareportispreparedincludingrecommendations and a prioritized Action Plan to address gaps. This may involve: Process Assessment•Assessment:evaluatethestateandperformanceofyour estimating,riskandrelatedprocessesandtheiralignment with your business objectives and project system. •PlanningforProcessImprovement:Developstrategiesandplan activities and resources.•Reengineering/ProcessMappingWorkshops:Implementplanned process improvements.•Procedures:Supportownerindevelopingproceduresin alignment with process.Organizational Development and Training•Assessment:evaluatethestateofyourorganization,theskills andknowledgeofthestaff,andorganizationalalignmentwith objectives, processes, methods and tools. •PlanningforOrganizationImprovement:Establishstrategies and plan activities and resources.•ModelDevelopment:Developcompetency/capability development models and career paths.•Training:Implementimprovementactionsthroughcustomized training and workshops.•Coaching:providemanagersandleadswithsupportandadvise as needed.Check-ups and Interventions•Forworkorprojects-in-progress,checkhowprocessand organizationarefunctioning,investigatedeviationsfrom expectations and recommend corrective actions.Notethatthesearenotoverall,generalprojectsystemreviews orbenchmarkings,butworkinglevelassessmentsbyarecognized expertinthesefields;theresultantActionPlansarespecificand practical.
Note:thisisfor“niche”methodsandtoolsthatmeetneedsfor whichcommercial3rdpartysystemsareunavailableor inappropriate.Theserviceusuallyinvolvesaneedsassessment followedbydevelopmentofaspecificproposalforcustomtool developmentandimplementation.Theconsultanthas successfully implemented tools for the following:•EstimatingMethodsandTools(e.g.,ownerClass5and4cost models)•ProjectHistoricalDatabasesforcost,scheduleandrisk information and metrics•EstimateValidationMethods,ToolsandMetrics(i.e., application of historical data)•RiskAnalysisandQuantificationMethodsandTools:see ProductsVE’sgoalistoleaveeachclientself-sufficientintermsofowning andcompetentlyapplyingthemethodsandtools(toNOTbe dependent on ongoing consulting support).
Thesearethecompany’snamesakeservices.Seethebook “Project Risk Quantification” that covers these services.•Estimate Reviews (at gate):Thisiscombinedqualitativeand quantitativereview(validation)ofanEngineer’sorEPC’sClass 4or3(Pre-feasibilityorFeasability)estimateonbehalfofthe owner.Thegoalistodetermineiftheestimatemeetsowner requirementsandprovidesasuitablebasisfordecisionmaking, fundingandcontrol.Recommendationsforimprovementsare provided as appropriate. •Estimate Reviews (during phase):Gatereviewsareoften frustratingandineffectualbecausethereisinadequatetimeto fixdifficienciesbeforetheBoardmeeting.Theestimate preparationprocessshouldinsteadbereviewedstep-by-step, includingatkick-off,atcompletionofkeyintermediate deliverables,andthenpriortothegate.Thisresultsina“no-surprise” final review and greater quality and confidence. •Risk Analysis and Contingency Estimation:VE’sexperience withestimatereviewsisthatcontingencyestimatesareoften inadequateandneithertheownerorcontractorareequipped todothemproperly(i.e.,inanempiricallyvalidatedway.) Therefore,theconsultanthasexpertisetofacilitatecostand scheduleriskanalysisworkshopsandtoquantifythe contingencyusingbestpractices(seeProducts).Thismaybe part of an estimate review or a stand-alone effort.
Expert Task Support or Advise (Rate A
or B depending on scope of service)
Oftenaclientisinneedofexpertsupporttoconductallorpart ofparticularanalysis,evaluationorothertask(inadditionto estimatereviewsandriskanalyses,etc).Thesemayinclude,but are not limited to:•Investment Analysis (e.g., life cycle cost modeling)•Investment Decision Support (e.g., decision modeling)•ProjectCostEstimatePreparation(e.g.,conceptuallevelcheck estimate)•Escalation Estimating•Negotiation and Claims Support•Historical Data Capture/Cleaning/Normalization•BePartofanIndependentProjectReviewTeam(focusedon estimating, project control and risk management aspects)•and more...