A01_Project_Development_1.23.2024_RUBRIC_FINAL
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RUBRIC ASSIGNMENT A01 Project Development Process A01_Project_Development_1.23.2024_Rubric_FINAL Page 1
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2/12/2024 Course: ARE 323K Project Management & Economics Assignment: A01 Project Development Process Due Date: January 30, 2024 Deliverable: Short-answer response to questions below. Total Points 25 points Purpose: The purpose of this assignment is for you:
Become familiar with generally accepted stages and control gates for development and authorization of major capital projects.
Understand how the level of project scope development is used to estimate contingency estimate to approved projects.
Contrast/Compare with the U. T System Capital Project Delivery program Assignment: 1.
Review the AACE technical paper: Dysert, L. and T. Pickett “Supporting Estimates with Effective Scope of Work Definitions.” (In Module 2) Focus on the first 2 sections: Introduction and Project Development Process. 2.
Download the UT System Capital Project Delivery Plan https://www.utsystem.edu/sites/capital-project-
delivery-guide/ut-system-management-resources and review the phases for a UT Systems Major Project. Focus on sections through The Construction Documents and Construction Phases. 3.
Provide short answers to the questions below. Questions: 1.
The UT Major Capital Project Delivery process applies to what kind/size of projects? (3-pts) 2.
Compare the FEL stages described in the Dysert paper to the UT systems processes. (Total 20-
pts) a.
Use a table format for the comparison. Provide a brief description/purpose of each. Note it is not a perfect 1:1 match (16-pts) AACE Stages
UT Process
Comments or Notes
FEL 0 Opportunity
Campus Master Planning
FEL 1 Business Case
b.
Are the processes similar? Why/Why not? (2-pts) c.
At what stage are projects authorized or approved? AACE/UT (2-pts) 3.
Class of Estimate ( Accuracy) (2-pts) a.
An approved UT Major Capital Project has what level of accuracy? _________ b.
What class of estimate would you assign to the approved project?__________
RUBRIC ASSIGNMENT A01 Project Development Process A01_Project_Development_1.23.2024_Rubric_FINAL Page 2
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2/12/2024 Acceptable Answers - The grading goal is to assess if the student has made some reasonable effort to read the material and answer the questions. Use broad latitude. 1.
Q: The UT Major Capital Project Delivery process applies to what kind/size of projects? o
Points:
3 points 1 for each correct answer
. o
From pdf pg. 5
of Guide.
The guide applies to the delivery of Capital Projects that meet one or more of the following criteria:
New building construction with a total project cost of $10 million or more
Road, paving, and repair and rehabilitation projects with a total project cost of $10 million or more
Any project determined by the Board to be architecturally or historically significant
2.
Q: Compare the FEL stages described in the Dysert paper to the UT systems processes. a.
Use a table format for the comparison. Provide a brief description/purpose of each. Note it is not a perfect 1:1 match o
Points/Guidance: 16 points.
The primary goal is for the student to list the steps for each and include some description of its content. The table below fives some key ideas. If they get a couple of them, they have earned the points.
8 points for listing the AACE Stage and some basic description of each gate process. – See EST Paper - 3434
8 Points for listing the UT processes and some basic description of each. See
https://www.utsystem.edu/sites/capital-
project-delivery-guide/ut-system-management-resources
Use comments or notes to help with grade for UT or AACE o
Answer: See table below.
RUBRIC ASSIGNMENT A01 Project Development Process A01_Project_Development_1.23.2024_Rubric_FINAL Page 3
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2/12/2024 AACE Stages UT Process Comments or Notes FEL 0 Opportunity Campus Master Planning Comments or Notes
Purpose: o
Business units (BU) develop ideas and opportunities that create new assets, meet business objectives, or modify existing ones.
Team:
No formal team. Internal BU staff.
Decision by: Head of BU.
Cost estimate class: undefined.
Budget: No formal. Internal BU funds.
Gate 0 Decision: Is the idea worthy of
i
ncluding into the capital planning process for organization?
Purpose: o
Each UT campus is required to assess future needs and to prepare and maintain a Campus Master Plan. o
Each campus maintains a list of priority projects suitable for recommendation for UT system consideration.
Team: Campus specific.
Budget: Campus funding
Cost estimate class: Undefined
Decision to advance by: Campus president and UT System executive.
Gate – Go to Project Definition Phase (Programming and Schematic Design). This decision moves the campus level project to the UT System Major Capital Project Delivery process.
Authorizes up to 5% of Total Project Cost to fund Project Definition work.
Similar.
UT Master Planning includes both FEL 0 Opportunity and FEL 1 Business Case activities.
At end of Master Planning, a UT project is selected from the Master Planning list and moves to the UT System capital development planning.
End of Master Planning is similar to the end of FEL 1. FEL 1 Business Case
Purpose: o
Identify potential alternatives that may meet business objectives from FEL 0. o
Set basic parameters – capacity, technology etc.
Team: Internal Core BU Team formed.
Budget: Internal BU funding
.
Cost estimate class: Maybe Class 5.
Decision by: Head of BU.
Gate 1 – Go to FEL 2 Select. BU decides to include project idea in the capital planning process for organization. Authorizes funds for outside expertise in FEL2
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RUBRIC ASSIGNMENT A01 Project Development Process A01_Project_Development_1.23.2024_Rubric_FINAL Page 4
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2/12/2024 FEL 2 Select Project Definition (Programming & Schematic Design)
Purpose: o
Evaluate Alts from FEL 1. o
Refine scope. o
Identify preferred alt(s) for further development. o
Document in conceptual engineering report
.
Team: Core Team + small outside technical consultants.
Budget: Internal BU funding but spending captured for potential recapture as capitalizable expense
.
Cost estimate class: Class 4.
Decision by: Head of BU/ Exec. For capital planning.
Gate 2 – Go to FEL 3 Define. BU decides to continue effort for project development. Proceed to FEL 3 development of detail scope description. Project may move to a formal asset mgmt. group to complete the capital planning organization.
Purpose: o
Refine the scope of the project and define requirements. It includes sub – processes: o
Procure professional services. o
Programming to define facility requirements. o
Schematic Design
to define conceptual design of the facility. o
The Basis of Design Report (BOR) is initiated in Project Definition.
Team: Internal project advocate + a professional services team of designers.
Budget: Reimbursable funding of up to 5% of total project cost.
Cost estimate class: Class 3 –
Final cost within 30% of TPC.
Decision by: Board of Regents (BOR) to formally add the project to the Capital Improvement Program.
At this stage both AACE and UT process become aligned as both have formally started the process to develop a major capital project.
UT uses a 3 steps to get to Construction Plans and Specification o
Programming o
Schematic Design o
Design Development)
FEL has 2 steps: o
FEL 2 Select o
FEL 3 Define.
RUBRIC ASSIGNMENT A01 Project Development Process A01_Project_Development_1.23.2024_Rubric_FINAL Page 5
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2/12/2024 FEL 3 Define Design Development
Purpose: o
Further evaluate alts from FEL2, to a point where a single alt. is left. o
Continue development of preferred alt. o
Prepare prel. eng. Report. Site plan, equipment list, etc.
o
Project developed sufficiently to support Class 3 estimate.
Team: Core Team + expanded to a core design team architect and/or engineer.
Budget: Internal BU funding but spending captured for potential recapture as capitalizable expense
.
Cost estimate class: Class 3.
Decision by: Head of BU/ Exec. For capital planning.
Gate 3 Purpose – Go to FEL 4 Execute. Authorizes full project funding.
Purpose: o
Refine and finalize the Basis of Design Report (BOR) started in Definition Phase. o
Update the project cost estimate. o
Support approval of Design Dev.
Team: Internal project advocate leading a professional services team of designers.
Budget: Reimbursable funding of up to 10% of total project cost.
Cost estimate class: Class 2. Final cost within 10% of TPC.
Decision by: BOR/
Chancellor and President approve Design Development recommendation.
Decision Gate – Authorizes preparation of construct. docs.
UT Design Development and FEL 3 Define are similar both advance the project definition.
UT uses a Basis of Design Report, FEL uses a Preliminary Eng. Report.
Major Difference.
UT requires a more accurate cost estimate (w/in 10% vs. w/in 30%).
RUBRIC ASSIGNMENT A01 Project Development Process A01_Project_Development_1.23.2024_Rubric_FINAL Page 6
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2/12/2024 FEL 4 Execute Construction Documents/Construction
Purpose: o
Prep. construction & procurement documents o
Construction and commission project.
Team: Core Team + design team and constructor.
Budget: Authorized capital project funds.
Cost estimate class: Class 2/1
Decision by: Board of Directors.
Gate 4 Purpose – Go to FEL 5 Operations. Gate 4 signals new asset is complete and ready for operations. New project asset is turned over to Operations group.
Purpose: o
Prepare construction documents and o
Construct the facility. o
Support approval of construction by Board of Regents.
Team: Core Team + design team and constructor.
Budget: BOR Authorized Project funds.
Cost estimate class: Class 2 or 1
Decision Gate: Contract – Substantial completion
. Project is removed from UT System capital plan and turned over to UT campus for operation.
UT breaks FEL 4 Execute into 2 phases o
Construction Documents o
Construction o
May require separate BOR approval. Not Required for Assignment:
FEL 5 Operate Not Required for Assignment: b.
Q: Are the processes similar? Why/Why not?
Points: 2 point
for a reasonable response based on table above.
Answer.
Both are similar in process. Some notable differences.
UT is not a single business unit – it has the campus unit and the UT Systems unit. UT uses as 2-step process. o
Master Planning
. The initial business need evaluation and definition (FEL 0 and FEL 1) is done at the campus level where each campus maintains a Master Plan with a list of priority projects for that campus. o
UT Systems Major Capital Project Delivery. Based on the Master Plan, recommendation from the campus president, and approval by System Chancellor, a listed campus project passes through a “gate” into the UT System Major Capital Project Delivery program.
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RUBRIC
ASSIGNMENT A01
Project Development Process A01_Project_Development_1.23.2024_Rubric_FINAL Page 7
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2/12/2024
UT Construction Documents and Construction 2 components o
Preparation of Construction Documents o
Construction o
AACE Process Combines these into a single Execution Phase FEL 4 c.
Q: At what stage are projects authorized or approved? AACE/UT
Points: 2 point 1 on for each AACE and UT. Almost any reasonable response is acceptable.
Answer:
AACE: A couple of answers are correct. My preference is Gate 3. o
Gate 3 is where the project is authorized and funds available for final design and construction. o
Gate 1 could work as money is authorized to formally initiate the planning process.
UT – A similar argument -A couple of answers are technical correct. My preference is Design Development Approval Gate. The same as FEL Gate 3. o
Design Development Approval Gate (pdf page 32) – is where BOR authorizes preparation of construction documents and complete construction. (pdf pg. 37) or. o
Addition to Capital Improvement Plan Gate – is where BOR formally adds the project to the Capital Improvement Plan. Occurs after completion of Definition Phase .
RUBRIC
ASSIGNMENT A01
Project Development Process A01_Project_Development_1.23.2024_Rubric_FINAL Page 8
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2/12/2024 o
Approval of Design Development –
3.
Class of Estimate ( Accuracy) (2points 1-point each) a.
Q: An approved UT Major Capital Project has what level of accuracy? _
At Project Definition Stage: Within 30% of final cost. (pdf pg. 27).
At end of Design Development: : Within 10% of final cost. _(pdf pg. 32)
b.
Q: What class of estimate would you assign to the approved project?__________
At Project Definition Stage: AACE Class 3. (AACE Paper pdf pg. 9).
At end of Design Development: : AACE Class 3. (AACE Paper pdf pg. 9).