Project Management Consulting services

1. Getting the Best Value for your
Building Dollar
How we can help!
Abhi Basu
Basu Technology, Inc.
abhibasu@basutech.com
856 245 9082

2. Introduction
Basu Technology, Inc.

Small and Focused

SDBE / MBE

Expert Team

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3. Background
Over 30 years of experience working on

major capital expansion programs in the
region
Experienced in all facets of project delivery

cycle
Geared specifically to Facilities Construction

Working only with Owners

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4. Project Experience
Columbia University

Princeton University

AT&T

Brookhaven National Labs

Rutgers University

Others

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5. What we provide
Top down look from the Owners Viewpoint

Objective advice

Subject Matter Expertise

Technology Implementation

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6. Our Mission
Empower the Owner with Critical Information

To make better decisions

To be proactive

Save cost and time

Manage Risks

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7. Services
Project Audit, Process Audit

Project Monitoring & Peer Reviews

Risk Management

BIM Implementation

Set Up and Training

Project Controls

Metrics

Process

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8. Industry Observation
An Owner can be his/her own worst enemy

Owners have the ability to set the tone for

each project and the potential for a
successful outcome for all stakeholders
FMI – CMAA 5th Annual Survey of Owners
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9. Cost & Schedule Overruns
Owners identify main causes to be:

Incomplete drawings

Poor Pre-planning process

Escalating cost of Materials

Lack of timely decisions

Excessive change orders

FMI – CMAA 5th Annual Survey of Owners
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10. Program Governance –
What Owners Can Control
Opportunities and Choices

 30% cost & schedule difference
 Project vs Program, Life-Cycle Costs
 Standards
Scope

 Ancillary Scope, Scope Creep, Dark Scope
Alignment

 Scope, timing, stakeholders, contracts
Organization

 Delivery, Change Control, Communications
Metrics & Reporting

 Making business sense
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11. Improving Program Governance
Identify total scope and stake holders

Create comprehensive framework for

planning and executing
Create standards, establish gating

Align multiple projects and processes

Set up metrics and reporting on Owner needs

Monitor and audit

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12. Creating a Framework for Planning, Executing
& Reporting
Framework Components

Comprehensive Scope Document

Enterprise Project Structure

Organization Breakdown Structure

Project Work Breakdown Structure

Processes

Reporting

Milestones & Metrics

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13. How we can help …
Supplement your in-house staff with expert

knowledge and skills
Help set up your Program Management

Office
Immediate ramp-up of critical scoping,

planning, scheduling, risk management and
communications tasks
Help streamline your project delivery process

for maximum benefits
Provide the infrastructure and tools to take

full advantage of information technology
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14. Specific Areas
Scheduling / Peer Reviews

Project Monitoring / Audits

Risk Management

Claims Analysis

BIM for Owners

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15. Implementing Technology
Project Management and Project Control

Software
BIM

4D Scheduling

Training

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16. Supporting Slides
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17. Construction Cost-Project Cost-Life Cycle
Cost
Building First Costs
Project first costs are only about

Financing / Legal /
15% of Life Cycle Costs
Insurance
100 22
Land
10
80
8
For every dollar of First Cost

6 Furnishings
60
additional 5.67 dollars are spent
AEC
40 54
20
over the Building Life Cycle
Construction
0
1
Dispose
Building Life Cycle Costs
le
yc e
ec us
Re
/R Renovations
De
20
si g
100 Financial / Legal
n
Renewal
15
80 Taxes
17
Maintenance
60
tion
15
Operation
truc
40 18
Op
s
Construction
er
Con
at 20 15
io
ns
/U
0
se
1
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18. Project Delivery Phases –
Cost of Making Changes
Conceptual Schematic Design
Planning
Design Design Development
Cost of Making Changes
Ability to Make Changes
Construction
Procurement
Documents
Commissioning
Construction
Closeout
Time
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19. Front-End Planning
A change
here
Which should
have been
made here
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20. Savings attributed to thorough concept
definition
Study Sample – 62 projects (CII)

Metric – Final TPC / Estimated TPC

Findings

Impact of Poor Design Drawings
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Over Runs
15
% Cost Over run
10
5
0
High Medium Low
-5
Degree of Definition
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21. Owners Fail to Track
Total Project Scope
Only part of the scope

is tracked in project
metrics
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22. Mismatches in Cost Scope and Schedule
Scope
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23. (Mis)Alignment of Responsibilities
Bilateral Contracts in a multi-lateral

framework
Stakeholder participation

Communications - Lost in translation

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24. Major Players causing Project
Delays/Overruns
Factors Causing Cost / Schedule Overruns
Scope Changes
by Ow ner
Other Factors
19%
24%
AE Delays
8%
Delays by
External
Agencies
10%
Contractor's
Poor
Performance
39%
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25. Cost of Rework
Project rework costs average 12.4% of TPC

80% caused by Errors & Omissions in Design

Documents
20% caused by poor construction practices

50% of construction change orders caused

by errors in design documents directly related
to uncoordinated drawings
Change orders cost 0.8 to 3.4% of TPC

Discipline interface review of documents

during design costs 0.1% of TPC
Payback ratio - $8 to $34 for every dollar

spent
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26. Cost and Schedule Savings with BIM
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28. Seeking to be a member of your core team
Basu Technology, Inc.
Abhi Basu
E-mail: abhibasu@basutech.com
Phone: 856 245 9082
We would be happy to come in and present to
you specific ways we can save you money
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