# Presentation: 671275

## It seemed simple, but ...

- FAA Eastern Region Airports Conference
- Hershey, Pennsylvania
- Session B-6
- March 19, 2008

## Background

- Not all projects go smoothly!(Despite best attempts)

- Many different perspectives

- Opportunities to learn from other projects

**Notes:**
COURTNEY -
Background for the Panel:
Although no one wants to admit it, certainly not all projects go smoothly.  In many cases, there can be frustration all around the table – and in some cases, it’s just a matter of putting yourself in the other parties’ shoes.  There are many different perspectives to consider on any of the challenges that projects encounter.  

The purpose of the session is to bring to light some of those frustrating challenges, expose the different perspectives, and learn from others who have gone before you.  (Of course, not necessarily in a literal sense ... because all projects are different ... but we think there are some very common themes.)

## BLAME

**Notes:**
COURTNEY –
It’s a discussion, not a lecture.  There certainly is a lot of experience up here on the panel today ... however, we all have had projects that have gone south for one reason or another.  Our goal today is not to blame others ... instead, it’s to draw attention to others’ perspectives and have some take-aways that might help us in our future projects.

## Slide 4

**Notes:**
COURTNEY –
No single person (no matter how good) can accomplish a project alone.  The key to success is that there is a TEAM that has to work together.

## Slide 5

**Notes:**
COURTNEY –
Owner/Sponsor ... has the dream.
FAA & State ... has the $$ (and the rules to go with them).
Engineer ... responsible for the nuts & bolts of making the project happen.
Contractor ... does the heavy lifting at the end of the day ... 

## Slide 6

**Notes:**
COURTNEY –
Any of the four players can be left scratching their head ... wondering “How in the world did this project that SEEMED SIMPLE, go so far astray?”

## Panelists

- Mark McGuire, P.E.*Campbell and Paris Engineers*
- L. William Kelly, C.M.*New Kent County Airport*
- William D. Pahuta*Charlottesville-Albemarle Airport*
- Courtney A. Beamon, P.E., C.M. (moderator)*Delta Airport Consultants, Inc.*

**Notes:**
COURTNEY –
Introduce Panel, also mention Mike Swain (will not make the trip due to travel restrictions)

## Scenario #1:

- “Need more flexibility & time ...
- Let’s hold bids for 90 days!”

## “Need more flexibility & time ...  Let’s hold bids for 90 days!”

- “Need more flexibility & time ...  Let’s hold bids for 90 days!”

- _Unit Pricing:_  forcing contractor to estimate “worst case” scenario!
- Petroleum (pavement, travel costs, equipment fuel, etc. etc.)
- Steel
- Copper

**Notes:**
Jim – It would be great if you could talk about this one ...

## “Need more flexibility & time ...  Let’s hold bids for 90 days!”

- “Need more flexibility & time ...  Let’s hold bids for 90 days!”

- http://tfc-charts.w2d.com/old_hist_CO.html

- 30%

- Light Crude Oil (CL, NYMEX)

## “Need more flexibility & time ...  Let’s hold bids for 90 days!”

- “Need more flexibility & time ...  Let’s hold bids for 90 days!”

- _Signaling Theory:_  “Are they *really* serious about this job?”
- Do they have the money?
- Are they ready to start?
- Am I wasting my time bidding this job?

## “Need more flexibility & time ...  Let’s hold bids for 90 days!”

- “Need more flexibility & time ...  Let’s hold bids for 90 days!”

- _Time is Ticking:_  “What will my workload look like in 3-4 months?”
- Will I still want the work?
- Lots of unknowns!

## “Need more flexibility & time ...  Let’s hold bids for 90 days!”

- “Need more flexibility & time ...  Let’s hold bids for 90 days!”

- Initially:  “Sounds good, no harm!”

- “Lots of uncertainty!  Better protect myself!”

- $$

**Notes:**
Last note ... what about when we ask them to hold prices “until Spring!”

## Scenario #2:

- “The Contractor is not performing ...
- Someone needs to fix this!”

## “The Contractor is not performing ...  Someone needs to fix this!”

- “The Contractor is not performing ...  Someone needs to fix this!”

- “Get moving already!  This grant has been open a long time!”

- “The engineer knows what the contractor needs to do.  They need to show them how it’s done!  Make it happen!”

- “The owner needs to pull the bond ... it’s clear the contractor isn’t getting it together.”

- “Maybe I’m in over my head .. Perhaps if it had been better explained ...”

**Notes:**
Jim – Why can’t you instruct the contractor how to do the work? ....
Bill / Bill – Why don’t you want to pull the contractor’s bond?

## Scenario #3:

- “The tenants decide to care ...
- AFTER construction begins!”

## “The tenants decide to care ...  AFTER construction begins!”

- “The tenants decide to care ...  AFTER construction begins!”

**Notes:**
Bill P. – thought you could tell your airline story here.
Jim – Can you tell any stories about adjusting phasing DURING construction?  (I know I’ve got a few.)
Finish with “take-aways” ... how to avoid this on projects by getting input early-on.

## Scenario #4:

- “The project was going fine UNTIL ...”

## ?

- “The project was going fine UNTIL ...”

**Notes:**
Bill P. – thought you could tell your church/RPZ story here.
Bill K. – thought you could tell your contractor borrow source story here.
Finish with “take-aways” ... how to avoid this on projects by getting input early-on.

## Scenario #5:

- “Why can’t it be done for the ORIGINAL budget?”

## “Why can’t it be done for the  ORIGINAL budget?”

- “Why can’t it be done for the  ORIGINAL budget?”

- “This is all the money we have.  YES, you need to include ALL of these requirements!”

- “The review agencies are making us ...”
- &
- “The engineer should have known ...”
- &
- “I’ve already turned in my budget ...”

- “This estimate is 5 years old!  Things have changed.  Plus, they said to keep it simple!”

- “Are they crazy?  I wasn’t expecting this.  They are making my life difficult!”

**Notes:**
Other things to think about .... Owners wanting to add/change items during construction ... Local review agencies changing requirements very late in the game ...

## “Why can’t it be done for the  ORIGINAL budget?”

- “Why can’t it be done for the  ORIGINAL budget?”

- $$$

**Notes:**
Classic Example – T-Hangars ... they can’t be done cheaply anymore.  Local requirements (restrooms, fire protection, etc.).  Steel prices.  
Bill K. / Jim – comments?

## Other Scenarios / Open Discussion