Professional Documents
Culture Documents
2005
IN
IN THIS
THIS ISSUE
ISSUE
• Technical Article -
Design/Build Selection
Process — Art or
Science?
• Technical Article -
Using Earned Value
Management Indexes
as Team Development
Factor and a
Compensation Tool
• Technical Article -
The Goalposts for
Project Success Have
Moved — A Marketing
View
• Executive Article -
The Art of
Compromise
• Special Feature -
Earned Value
Professional
Certification on Track
for New Orleans
Premier
President
Clive D. Francis, CCC ESTABLISHED 1958
Black & Veatch, MI
734-622-8543/fax: 734-622-8700
e-mail: president@aacei.org
Depar tments
President-Elect
Philip D. Larson, CCE PSP President’s Message ................................3 Special Feature ....................................26
WinEstimator, WA In Our Estimation ..................................5 Professional Services Directory ..............38
253-395-3631/fax: 253-395-3634
Letters to the Editor................................8 AACE International Bulletin ..............39
e-mail: preselect@aacei.org
Education Board News ........................10 Article Reprints and Permissions ..........43
Past President Calendar of Events ..............................44
Certification Corner ............................11
Ozzie F. Belcher
Belstar, Inc., VA Executive Article ..................................13
703-645-0280/fax: 703-645-0286
e-mail: pastpres@aacei.org Featured Ar ticles
Vice President-Finance
Robert B. Brown, PE Design/Build Selection Process — Art or Science? 14
PMA Consultants of Illinois, LLC, IL
312-920-0404/fax: 312-920-0405
Talal Abi-Karam, PE CCE
e-mail: vpfinance@aacei.org Although Design/Build is one of the most popular integrated alternative delivery methods, it does not have well-
established contractor selection procedures. The selection of a Design/Builder can be based solely on qualifi-
Vice President-Administration cation, solely on price, or a combination of price/qualification. Even with qualification-based selection (QBS),
William E. Kraus, PE CCE the selection process may be subjective, since various state agencies (DOT's) and municipalities have different
B & C Project Services, CO selection criteria for pre-qualifying and evaluating bids of the perceptive Design/Build teams. This article exam-
970-206-0947/fax: 970-226-1818 ines the various selection methods of Design/Build teams in the public works sector. It addresses the legal
e-mail: vpadmin@aacei.org
framework for selecting Design/Build teams, including qualification-based selection (QBS), selection criteria,
Vice President-Regions and weighting of criteria.
Marvin Woods, CCE
Project Controls Group, Inc., MO
314-838-4987/fax: 314-389-8957
Using Earned Value Management Indexes as 20
e-mail: vpregions@aacei.org Team Development Factor and a Compensation Tool
Vice President-TEC Ricardo Viana Vargas
James G. Zack Jr., The objective of this article is to present the main components of the development of a project team and the
Fluor Daniel, CA motivational characteristics inherent to team work. It also looks at an interrelation proposal between the earned
949-349-7905/fax: 949-349-7919 value analysis and team development through the SPI and CPI indexes. These are obtained by tool use and
e-mail: vptec@aacei.org
team development models and the compensation and reward in the project. This reduces the subjectiveness
Director-Region 1 of humans resource in the project evaluation. The article presents a brief report about team development and
Mustansir H. Raj, CCE compensation policies, as well as an introduction to the earned value concept, aiming to align the approached
Bantrel, Calgary, Canada concepts.
403-282-6545/fax: 403-290-5050
e-mail: dirregion1@aacei.org
The Goalposts for Project Success Have Moved — 28
Director-Region 2
Charles E. Bolyard Jr., PSP
A Marketing View
McDonough Bolyard Peck, Inc., VA P.S. Kupakuwana and G.J.H. van der Berg
703-641-9088/fax: 703-641-8965 Traditionally, a successful project was seen as one in which the triad of time, budget, and specification was com-
e-mail: dirregion2@aacei.org plied with at a profit. Current project literature places more emphasis on customer satisfaction as a fourth
Director-Region 3 important success parameter. This article discusses project management services and focuses on what consti-
Robert E. McCoy, CCC tutes project success. This type of project is named the new project in this article and a set of new project rules
BWXT Y-12, LLC, TN is arrived at. The article also takes a services marketing view and examines the customer's motivation in appoint-
865-482-7658 ing a project manager.
e-mail: dirregion3@aacei.org
Director-Region 4
Jeffrey D. Kursave, CCC
In This Issue
SAIC., MO
Board of Directors Contact List ........................1 Index to Advertisers ......................................38
314-770-3006/fax: 314-344-4349
e-mail: dirregion4@aacei.org AACE Certification Exams ..........................11 AACE International HQ Contact List ........42
Director-Region 5
Stephen W. Warhoe, PE CCE On the Cover: New Orleans is ready to welcome AACE International members and guests to our 49th
303-740-2665 Annual Meeting, June 26-29. Register by May 27, and save $100.
e-mail: dirregion5@aacei.org
A
US$99. Subscriptions are accepted on an
annual-year basis only. Copyright © 2005 by
AACE International, Inc. All rights reserved. to believe that there have been nine struction and other claims. With the strategic
This publication or any part thereof may not messages which have preceded this plan, we will have a guide to help us define
be reproduced in any form without written
permission from the publisher. AACE one, and I look forward to recognize that who we are and where we need to be in the
assumes no responsibility for statements there are only two more to go. The elections next few years.
and opinions advanced by the contributors
to its publications. Views expressed by them have been completed, and the makeup of the What else is new? We have introduced
or the editor do not necessarily represent next year’s Board of Directors (BOD) is truly and successfully completed two Beta tests of
the official position of Cost Engineering, its
staff, or AACE International, Inc. Printed in exciting. The elections have brought to the new Earned Value Professional (EVP) certifi-
York, PA, USA. Cost Engineering is a BOD three new persons who have never cation. The certification gives AACE
refereed journal. All technical articles are
subject to review by a minimum of three been on the BOD. They will bring new ideas International professionals who perform
experts in the field. To submit a manuscript
for peer review, please e-mail it to
and energy to your association and provide a earned value analysis as part of their daily
editor@aacei.org. Cost Engineering is new outlook and ideas to make us grow. work activities the recognition for the work
indexed regularly in the Engineering Index.,
Cambridge Scientific Abstracts, by EBSCO
The other exciting action to come from they do. The certification was developed by a
Publishing, and in the ABI/Inform database. the elections was the overwhelming vote to dedicated group of professionals who devel-
Cost Engineering is available online, via the
ProQuest information service; on microform; change the method of voting for your associ- oped questions, developed processes, and
electronically on CD-ROM and/or magnetic ation executives. Our votes in this election developed the criteria.
tape from Bell & Howell Information and
Learning, PO Box 1346, Ann Arbor, MI 48106. were decided by only 15 percent of our mem- Also, by the time you read this message
Photocopy permission : Authorization to bership. I recently voted for new directors our Interim Executive Director, Andy Dowd,
photocopy articles herein for internal or
personal use, or the internal or personal use and other issues for another group via elec- will have returned to his life before working
of specific clients, is granted by AACE tronic voting method. This was so easy and at AACE International Headquarters. Andy
International, Inc., provided that the base
fee of US$4.00 is paid directly to Copyright quick and I am sure brought out a much has served the Association well over the last
Clearance Center, 222 Rosewood Drive, higher percentage of those eligible to vote. eight months. As Interim Executive Director,
Danvers, MA 01923 USA. Telephone:
978.750.8400. For those organizations that The Association will implement electronic Andy chose to take the high road and to make
have been granted a photocopy license by
CCC, a separate system of payment has
voting for all members, hopefully by the improvements in operations, to guide the
been arranged. The fee code for users of the 2006 election. staff, helping to mentor them, and to be the
transactional reporting service is ISSN-
0274-9696/02 US$4.00. This permission to
By the time you read this, the April conscience to the Board of Directors. All that
photocopy does not extend to any Cost Board meeting will be history. I am going to Andy did was dedicated to improving the
Engineers’ Notebook, AACE Recommended
Practices supplements, or membership this meeting with a lot of anticipation and Association's operations. Andy also chose to
directories published in this magazine hope for an exciting new process for AACE be our representative with other associations.
and/or special inserts. Payment should be
sent directly to CCC. Copying for other than International. The plan is for us to spend a All of us at AACE International owe Andy a
personal or internal reference use without portion of the Board of Directors meeting special thanks for his contributions. From a
the express permission of AACE is
prohibited. Address requests for permission developing an outline for a new AACE personal point of view, I believe that Andy
on bulk orders to the editor. ADVERTISING International Strategic Plan. The new plan was there when needed and I could depend
COPY: Contact Network Publications Inc.,
Executive Plaza 1, 11350 McCormick Road, Suite will be our guide for the next two to three on him to be there as a guide, mentor, and
900; Hunt Valley, MD 21031. Telephone: 410.584.1966. years. The expectation is that the strategic more importantly, as a friend. ◆
E-mail: aace@networkpub.com for rates.
Advertisers and advertising agencies assume plan will be reviewed each year and used as a
liability for all content (including text, guide for the coming year. At the same time,
representation, and illustrations) of
advertisements printed and also assume we would expect that, after each two year
responsibility for any claims arising
therefrom made against the publisher. The
interval, it would continue to serve as a guide
publisher reserves the right to reject any for further updates and become the blueprint
advertising that is not considered in keeping
with the publication’s mission and
for the following two year interval.
standards. The publisher reserves the right So why do we need a strategic plan? It
to place the word advertisement with copy
which, in the publisher’s opinion, resembles has become very evident over the last couple
editorial matter. All advertising accepted for of years that we need to spend time to deter-
publication in Cost Engineering is limited to
subjects that directly relate to the cost mine who we are and where we want to be in
management profession. Current rate card the future. The whole profession of cost engi-
available on request. COST ENGINEERING
DEADLINES : Submissions for Cost neering has changed over the years. The pro-
Engineering must be received at least 7 fession is no longer a group dealing only with
weeks in advance of the issue date. Send to:
Editor, 209 Prairie Ave., Suite 100, numbers. We are now a group of profession-
Morgantown, WV 26501 USA. Deadlines do als who also deal with schedules, who provide
not apply to technical papers.
Study Groups
ou want to become certified, but don't know how to get cepts and material.
The Final Deadline for submitting an examination application is May 20, 2005
Regardless of the method used, the • the technical proposal is then scored; In scoring the technical proposals, the
cost of preparing proposals by a • scores below a pre-determined selection committee may assign a weight
Design/Builder can be very significant. threshold are deemed non-responsive; factor for each of the criteria. The
Some proposals are comprehensive and • scores above the threshold are deemed following table is an example of a
include detailed designs, construction responsive; selection/evaluation scenario with weight
sequences, baseline schedules (CPM), cost • price envelops for the responsive factors.
estimates, material selection, process bidders only are opened; and Scores for criteria 1-5 are compiled
equipment, and prices. • the committee selects the lowest (including the weight factor). Compiled
The cost of preparing proposals could bidder. scores above the threshold (responsive
amount to 2-5 percent of the overall project bidders) are only considered. Then, the
costs, and will require resources, technical The selection committee may include price envelops for the responsive bidders
expertise, and commitment from vendors members from across the owner's only are opened, and the cost envelop of
and subcontractors. Some transportation organization such as, engineering, those bidders who do not score a
agencies, such as the Florida Department purchasing, legal, operation and predetermined number will not be opened.
of Transportation (FDOT), have maintenance (O&M). The committee At this stage, the agency can simply
recognized this burden, and allow for a may include voting members and non- select the lowest price proposal of the
stipend to be paid to perspective bidders. voting members. responsive bidders and award the project.
However, this stipend is fixed and often Non-voting members may be Some agencies compile a composite price
limited to the direct labor hours spent on technology advisors or average citizens score that takes into account the score from
the proposal, and does not include any from the district, whose presence is to the technical evaluation and the score from
allowance for overhead, expenses and ensure that the process is competitive and the price evaluation and awards the project
profits. working as required. The selection to the bidder with the lowest composite
committee evaluates and scores the price.
THE ONE-STEP METHOD technical proposal on a wide range of Other agencies have used an index
The one-step procedure (single stage criteria, including the following. value which is equal to the ratio of the
contractor selection) involves the
evaluation of the technical proposal in • innovations of designs and
addition to price at the same time (one construction;
package, see figure 2). • meet owner's needs;
This procedure will provide for • prior experience in this specific type of
competitive evolution of the technical projects; price score divided by the technical score
proposal with the contract award decision • management criteria such as, quality (see equation 1), and the project is awarded
based on best value to the agency for the control, supervision, and management to the Design/Builder with the lowest
combination of evaluated technical merit approach; and index.
and associated price, but not necessary to • project schedule (deliverables, CPM).
the lowest cost. The one-step method is
mainly used for simple Design/Build
projects. The evaluation process is
primarily a low-bid selection. This process Evaluation Criteria: Weight Factor (percent)
is recommended where the following 1. Understanding of the project 20 %
procedure is required. 2. Design and construction approach 10 %
3. Delivery of the work 10 %
Procedure
• owner issues an invitation for bids 4. Management of the services 10 %
(IFB); 5. Qualifications and experience of the team 10 %
• D/B teams submit a proposal Total 60 %
containing separate technical proposal
Compile Technical Score
and a price proposal at the same time
(separate envelopes); 6. Cost of the project 40 %
• the technical proposal is evaluated by Compile Price Score
the selection committee;
Table 1— Sample Selection/Evaluation Scenario
D provides opportunities
integration, innovation, and
efficient delivery of projects. While the
for 2003, 76th Technical Exhibition and
Conference, Los Angeles Calif.
Published by WEF, 601 Wythe Street, 8.
Engineering,
(March/April 1999).
Palaneeswarn,
ASCE
E., M.
15(2),
M.
Design/Build process is becoming more Va., 22314. (Oct. 11-15, 2003). Kumaraswamy, and P.W.M. Tam,
popular, the selection of a Design/Builder 2. Abi-Karam, T., (1999). Design/Build- Comparing Approaches to Contractor
remains a mysterious process. Is it an art? The Professional Services Race," Selection for Design/Build Projects,
Is it a science? Or is it a combination of Proceedings of 43rd Annual Meeting Proceeding, Joint Triennial
both? of AACE International, Denver, Co., Symposium on Customer Satisfaction:
There are many standard models for editor: Marvin Gelhausen, AACE A Focus for Research and Practice, P.
selecting a successful Design/Builder in International, Morgantown, WV, Bowen and R. Hindle, Eds, Vol 3,
the public works sector. The one-step (June 1999). (1999): 936-945.
method, the two-step method, and the 3. Design/Build Institute of America,
qualification-based method are all The Design/Build Process— ABOUT THE AUTHOR
established procedures in the marketplace. Utilizing Competitive Selection. A Talal Abi-Karam,PE CCE, is an
These methods focus on pre-qualifying of publication by the Design/Build associate with Hazen & Sawyer, PC, 4000
bidders and evaluating bids that provide Institute of America (DBIA), Hollywood, Blvd., Suite 750 North,
the best combination of costs and value for Washington, D,C. (DBIA 2003, a). Hollywood, Fla., 33021. He can be
the owner. 4. Design/Build Institute of America, contacted by sending e-mail to: tabi-
There are several standardized The Design/Build Process— karam@hazenandsawyer.com,
published evaluation techniques in the Utilizing Negotiated Selection. A
market. These statistical techniques publication by the Design/Build Technical Articles - Each month, Cost
involve formulae and equations that strive Institute of America (DBIA), Engineering journal publishes one or more peer-
to systematically search for best value. Washington, D.C. (DBIA 2003, b). reviewed technical articles. These articles go
through a blind peer review evaluation prior to
Also, the composition of the selection 5. Florida State Statutes, (1997). FS
publication. Experts in the subject area judge the
committee, the hidden agenda of its 287.055 Sec. 10 (c). Applicability to technical accuracy of the articles. They advise the
members, and the subjectivity of Design/Build Contract. authors on the strengths and weaknesses of their
participants, may taint the results. Owners submissions and what changes can be made to
improve the article.
INFORMATION:
Don Giegerich
E-mail: don_giegerich@URSCorp.com
T
capability of the involved parties to
one of the PMBOK Guide 2000 effective use of the human resources contribute individually, as well as an
knowledge areas that managers and involved with the project. It includes all increase of people capable of working as a
project teams have requested be given project stakeholders: sponsors, customers, team. Individual growth (managerial and
more attention [6]. individual contributors and others. The technical) is the basis required to develop
As reported in the Guide, human main processes include the following. the team. This becomes crucial to the
resources project management includes
Figure 1— Human Resources Management Processes Distributed Throughout the Project Phases.
success of projects and becomes a key for Equity Theory, people get motivated when
the organization to accomplish its goals. they are treated in an equitable, impartial,
According to J. Fitz-Enz, each and fair way [8].
organization and each project is led by a
combination of strengths and internal and Professional Compensation (Reward)
external factors. These factors are the ones Some of the main tools available to
that make the organization unique, increase performance are compensation
describing collectively how and why the and reward policies. These, according to
organizational processes PMI, are the formal actions that promote
influence
performance improvement. The internal or reinforce desired behavior [6]. To be
factors are the ones determined by an effective, such a system should make the
link between performance and reward
organization and its project goals, while the
clear, explicit, and achievable.
external objectives are those determined by
the external business environment in According to G. Parker, J. McAdams
which the company and projects are and D. Zielinski, the reward models are
inserted (See figure 2). designed to create a focus on specific goals Figure 4— Team and Individual Performance
According to S.W. Flanes and Ginger or to celebrate and reward individuals or Extent (Based on Shuster, [7])
Levin, performance problems that impede teams with diversified performance. To
be earned initially by an activity is the value
the team members to perform their them, the reward models should meet
budgeted for it. As each activity or task of a
individual, team and organization needs
activities successfully can be divided into
project is performed, the initial budgeted
the following. [5]. See the model shown in figure 3.
value for the activity starts to constitute the
H.D. Shuster, said the bonuses always
earned value of the project.
• problems related to technical need to satisfy the individual and the team.
These concepts are based upon a 1997
competency; If team satisfaction is neglected to satisfy an
Earned Value Implementation Guide
• problems related to relationship and isolated individual, this process naturally
from the US Department of Defense
communication; and generates dissatisfaction and demotivation.
(DOD )[1] and on norm ANSI/EIA 748 of
• problems related to time management A higher reward can only be achieved
the American National Standards Institute.
and work habits [3]. when high team and individual
To formalize the concepts, a specific
performances are achieved, (see figure 4).
terminology was created. It is based on
Because of these problems, it is
forecasted and actual costs, as well as
fundamental to have an impartial and Earned Value Analysis
earned value. The basic three elements of
objective performance evaluation process Earned value is focused on the
the earned value analysis include the
that besides addressing the mentioned relationship between incurred actual cots
following.
problems, allows improvements in and the work performed on the project in a
individual skills, team behavior, and given time period. The focus is on
• BCWS (Budget cost of work
individual and team competencies. performance obtained in comparison to
scheduled)—is the value that indicates
This impartial model directly reduces what was spent to get it. [4]
the budget portion that should be
the subjectiveness of performance Earned value is the evaluation
spent, taking into account the activity
evaluation and increases the team between what was actually spent and what
budget base line cost, allocation, or
motivation. According to the Adam's was budgeted, proposing that the value to
resource. BCWS is calculated as the
Once these three parameters are Figure 5— BCWS, BCWP, and ACWP Graphic Example Throughout the Time for a Given
Project
determined, the outcome analysis is
obtained based on the correlation between earned values in the same period, (See index, while at the end of project occurs an
values found for each one in a given status equation 2). inversion in the participation of indexes,
date, (See figure 5). once the SPI tends to 1 (BCWP ? BCWS)
The correlation among BCWS, with the termination of the project.
BCWP, and ACWP values allows one to The resulting formula is shown in
rate project outcomes and to proceed with equation 3.
evaluations and future final cost forecasts.
To treat the ratio among BCWP and A CPI that equals 1, indicates that the HPI =%c x CPI + (1-%c) x SPI
BCWS and ACWP parameters, there are value spent by the project was completely (equation 3)
the following indexes. earned to the project (project in the
budget). A CPI lower than 1, indicates that Where CPI = Cost performance index
• SPI (Schedule Performance Index)— the project is spending more than SPI = Schedule performance index
Division between the earned value scheduled up to the moment. If the CPI is %C = Project complete physical percentage
(BCWP) and the budgeted base line cost higher than 1, this indicates that the
(BCWS). SPI shows the conversion rate of project is costing less than scheduled up to Figure 6 shows the participation of the
the budgeted value in the earned value, that moment. indexes in the HPI composition along the
(See equation 1). project.
Human Performance Index and From the creation of this index, it is
Professional Evaluation Models required to evaluate the HPI´s. This is for
In order to allow the team to do not only the individual work outcome, but
evaluation and for project professionalism, also the team work. It’s in the team work in
a new index, called human performance which the resource is an integral part of the
An SPI equal to 1, indicates that the index (HPI), was developed. This index project as a whole. Creating a final HPI
budgeted value was completely earned to consists of the relationship between the
the project. An SPI lower than 1, indicates CPI and SPI, allowing the creation of an
that the project is being performed at a index that evaluates the accomplishment of
conversion rate lower than scheduled. In the schedule and budget of the activities
other words, the financial amount executed by the resources simultaneously.
scheduled to be earned in the period was In developing this article, the author
not achieved and the project is late. An SPI studied several types of relationships
higher than 1, indicates that the project is between indexes (sum, average, product,
earning outcomes in a speed higher than etc.). However, because the nature of the
scheduled, i.e., it is advanced. two indexes differs from the complete
• CPI (Cost Performance Index)— percentage of the project, the composition
Division between the earned value of the indexes with complete percentages
(BCWP) and the actual cost and (ACWP). was chosen. The participation of schedule
CPI shows the conversion between the performance index in the beginning of the
actual values spent by the project and the project is higher than the cost performance Figure 6— Participation of the Indexes
According to Project Complete Percentage
Figure 9— Example of Data Collected for a Project With Determined BCWS, BCWP, and ACWP
Figure 12— Resource HPI Final for Each One of the Profiles of the Analysis Focus
damaged by a weak performance of subjective human aspects inside the team 8. Verma, V. K. Human Resource Skills
resources 1 and 3. Resources 4 and 5 had work. ◆ for the Project Manager, Vol. 2.
high performance, increasing the Upper Darby: Project Management
performance of Team B. The project REFERENCES Institute, (1995).
performance was lower than the 4 and 5 1. DOD Earned Value Management
resources performance and Team B. This Implementation Guide. Washington: ABOUT THE AUTHOR
was because the members of Team A United States of America Department Ricardo Viana Vargas is a professor at
lowered the global performance by their of Defense, (1997). the Getulio Vargas Foundation in Brazil.
weak individual performances. 2. Fitz-Enz, J. The ROI of Human He is chair of the Grupo A&C in Brazil.
Capital: Measuring the Economic He can be contacted by sending e-mail to:
he main objective of this article was Value of Employee Performance. ricardo.vargas@uol.com.br or to: rvar-
A ing since 1976, and offer applicants who meet the eligibility
requirements the ability to successfully take a text and attain
certification through the Association. The Certified Cost Consultant
(CCC)/Certified Cost Engineer (CCE) programs are accredited by
the Council of Engineering Specialty Board (CESB) and the
International Cost Engineering Council (ICEC). In 2000, AACE
developed an interim certification program, Interim Cost
Consultants (ICC). The ICC certification program is accredited by
ICEC. In 2004, AACE began offering its first specialty certification,
Planning & Scheduling Professional (PSP) which has been met with
great interest.
With the first official examination scheduled for the Annual
Meeting in New Orleans, AACE International is gearing up to offer
its second specialty certification, Earned Value Professional (EVP).
Jennie Amos, Manager, Marketing and Meetings, repre-
senting the Cost Engineering journal, recently talked with Nick L.
Kellar, CCC, and Jonathan P. (Jon) Mihalic, CCC, Chair and Co- Earned Value Professional (EVP) Task Force Committee Members
Chair, respectively, of the Earned Value Professional task force to dis- (pictured from left to right, top to bottom)
cuss the process in which the task force has undergone to create the • Nicholas L. Kellar, CCC (Chair); Alyeska Pipeline Service Co.;
newest certification program. • Jonathan P. Mihalic, CCC (Co-Chair); Booz Allen Hamilton;
• Donald J. Cass, CCE, The Cass Group;
CE journal: This is a major undertaking—creating a valid certifica- • Ann Marie Cox, ARES Corporation;
tion program from the ground up. Tell us about the overall process • Dan J. Demangos, PSP; Booz Allen Hamilton;
for creating the EVP certification. • Michael B. Fisher, CCC; Parametrix, Inc.;
• Tia Okwesa; Booz Allen Hamilton;
Kellar: Our process followed a time line of creating a competency • Ruthanne Schulte, Welcom; and
model, writing and documenting each component of the competen- • Cheryl Johnson (not pictured); Booz Allen Hamilton.
cy model, and then writing a complete outline for each component
that described—a definition, how it is applied, what a professional
should know about the topic, what areas of competency that a candi- ment, large and small companies in most every type of business sec-
date must demonstrate specific knowledge, and finally, a matrix to tors [IT, consulting, research, oil and gas, construction, manufactur-
which questions in the database are tied to the topic. ing, etc.] we often found that we had different views on most topics.
This diversity, though, really became our strength and the key to a
CE journal: Can you expand on the actual creation of the exam? well developed exam that was not industry specific.
Probably the most challenging issue that the task force had
Kellar: Sure. After the competency model, we started question to over come was the structure of the competency model itself. In its
development. Then we compared questions to the competency early stages, the model followed AACE international's earlier out-
model to identify areas where more questions were needed. After the lines of project management components. The task force really strug-
initial questions were developed, we finalized the format of the exam gled with the first model and approach because we all knew that the
to coincide with AACE International's other certification exam struc- model would have to be one that was universally accepted. After
tures (a 4-part exam, each part lasting 1 hour, 45 minutes for a total much debate, a decision was made to follow the ANSI standard (748)
of a 7 hour exam.) for earned value. Once this decision was made, we knew we were on
the right track for this certification.
CE journal: So everything went smoothly with the task force in the
creation of the exam? CE journal: You held a beta exam, right? Can you explain how this
Kellar: When ever you bring together a group with this much talent helped the overall process in creating the EVP exam?
and experience, your going have a few exciting times. But I think that
the thing that impressed me the most was the professionalism and a Kellar: We didn't hold a beta exam—we held beta one in four dif-
commitment that this task force maintained toward the earned value ferent locations on the weekend of March 5, with a total of 20 par-
project and the goals that AACE International has for this certifica- ticipants. Beta one used a lot of open ended questions to have the
tion. Because the backgrounds of the task force ranged from govern- beta testers write their answers and rational. After Beta one, we
CE journal: So aside from the great distance and time zone issues Kellar: We'll finalize the exam after it is given in New Orleans, and
faced by the Task Force (Nick lives and works in Alaska, Jon in then turn it over to the Certification Board. ◆
McLean, Virginia, just outside of Washington, D.C.—other Task
Force members in California, Texas, and Washington) what were the
other differences in the make up of the Task Force.
Mihalic: The team members also include skill sets and experience
ranging for true implementer of EV systems to experts in analysis.
ABSTRACT: Traditionally, a successful project was seen as one in which the triad of time, budg-
et, and specification was complied with at a profit. Current project literature places more
emphasis on customer satisfaction as a fourth important success parameter. This article discuss- Figure 2— Contractual Relationships [3]
es project management services and focuses on what constitutes project success. This type of However, as far as project success is
project is named the new project in this article and a set of new project rules is arrived at. The
concerned, it is traditionally accepted that
article also takes a services marketing view and examines the customer's motivation in appoint-
ing a project manager. a project that is completed on time, on
budget, and to specifications is a success.
KEY WORDS: Customers, deliverables, financial, profit, project management, scope, and value Although true in the majority of instances,
if a more market-oriented view is taken, the
converse can, and should be, true as is
rofessional project management has
Registraistopen
ion
Photo courtesy of the New Orleans CVB & Richard Nowitz
Keynote Speaker
Joel M. Koppelman, CEO,
Primavera Systems, Inc.
These courses are available to start any time – These 10-week courses start on June 27, 2005:
An Applied Framework for Project Management • Construction Blueprint Reading (CEI)
Fundamental Skills and Knowledge of Cost Engineering • Oral and Written Communications for Construction
Writing for Results Supervisors (CEI)
Handling Personal Interactions • Contract Documents and Construction Law (CEI)
Working in Teams • Planning and Scheduling (CEI)
Communicating on the Job
• Estimating and Bidding 2 (CEI)
Presenting Ideas
Being an Effective Leader Learn more about these courses at:
Finding the First Job www.aacei.org/education/distancelearning
Finding the Next Job
Entrepreneurial Cost Engineer
Introduction to Construction Estimating Complete information on all courses can be accessed
at: w w w.aacei.org/education/distancelearning
Chinook-Calgary Section
About 150 Chinook-Calgary and PMI members and guests
heard Jamie Cool of Kildrummy do a presentation at the Telus
Convention Centre in March on using standardization to assist in
training new participants in cost estimating, scheduling and proj-
ect management reporting. Such new participants will be better
able to continue in cost engineering as the current 48- 50 year old
experienced workers reach retirement age.
Submitted photo
Two Chinook-Calgary
Submitted photo scholarship winners
Guest speaker, Les Brown, above left, HR Director for CH2M HILL IDC, were recently honored.
is shown with Cascade Section Vice-President, Greg Baker at the March Shown at left are
dinner meeting of the Cascade Section. The program featured a presenta- Yashie Sukhu (recipi-
tion on the water infrastructure rebuilding program in Iraq. ent), Cindy Striekland
(Scholarship Director),
and Sushil Peres-da-
Silva (recipient.)
Submitted photo
On April 13, Zartab Z.
Quraishi, PE CCE, shown
left, presented the first pro-
gram at the newly formed
South Central California
Section. Mr. Quraishi is a
director with C.A. Rasmussen,
Inc. of Simi Valley, CA.
Submitted photo
To celebrate the first formal
meeting of the newly formed
South Central California
Section, a drawing was con-
ducted for a copy of the newly
revised ‘Skills and Knowledge
of Cost Engineering.’ Meeting
facilitator Daniela Andrade is
shown presenting the prize to
winner Melvin Earley.
Manager, Finance
Carol Sue Rogers
e-mail: crogers@aacei.org
AACE International, 209 Prairie Avenue, Suite 100, Morgantown, WV 26501 USA phone: 304-296-8444
fax: 304-291-5728 e-mail: mgelhausen@aacei.org or nkinderknecht@aacei.org website: www.aacei.org