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Paper presented at the 2004 NORDNET, Helsinki, Finland, September 2004.

Annette Kavaleff, Katja Koskelain and Marjaana Kousa

1. Abstract

Changes during a project are more of a rule than an exception. This is why everyone involved in project business should realize the importance of change management. In the global contracting environment where emphasis is placed on minimizing costs and maximizing performance, poorly managed changes are hazardous.

Change management has to be considered already when planning and negotiating a contract. Proactive contracting will strengthen project performance and eliminate communication difficulties among contracting parties. For a project, it is crucial to carefully define the scope and the other key contractual provisions, which should include a workable dispute resolving mechanism before signing a contract.

Contractors and employers often rely on standard terms and conditions (STCs) to govern their relationship. No doubt, these are helpful instruments, but they should be used with awareness and care. When STCs constitute a part of a contract, it is essential for the contracting parties to truly understand how they allocate costs and risks between the parties and what requirements they set for variations and the communication of claims, notifications, etc.

In this paper, the variations clauses of two STCs, namely Orgalime turnkey General Conditions 2003 and FIDIC Silver Book for EPC/turnkey projects, are examined in respect of the following three questions: Who is entitled to initiate variations? When and how is the variation established? Who bears the costs for the variation? The STCs are evaluated from both the employer’s and the contractor’s point of view and their main differences are discussed. Not surprisingly, the Orgalime turn key conditions seem to be more contractor friendly and the FIDIC Silver Book more employer friendly. Neither of them, unfortunately, seems to provide sufficient detailed change control procedures. Contracting parties should take this into account and address change control issues upfront in their negotiations.

An outline of change control procedure and issues to be addressed are presented in the last chapter. The task of such procedures is to provide efficient tools to agree on changes before they occur and to keep the project on track and within budgetary limits.

2. Keywords

Change management, FIDIC, Orgalime turnkey, variations, changes, standard terms and conditions (STCs), proactive contracting, claim, scope, change control procedures

3. Introduction

In any project there are likely to be changes to the original plan during the course of the project. This is true also for turn key projects, which are used as examples in this paper. Over the time of project implementation, new issues evolve. When negotiating a contract change management is often overlooked by the dealmakers. The acknowledgement of the mere fact that changes and variations are likely to occur may be seen as a weakness in the contracting process. The members of project teams should, however, not be “blue eyed”: On one hand, there are contractors who see an opportunity in changes: charging for changes may improve your results from the project. Employers should be aware of this when negotiating contracts and change clauses. On the other hand there are employers who take an uttermost restrictive view on changes and who will reserve the right to say the final word on a proposed change.

In contractual vocabulary, change is a wide concept. Usually thereby is meant changes to the contract for both external and project internal causes. Herein we use change for claims, variations etc. which lead to a change of the contract. By variations, we mean variation to the scope of works i.e. usually changes that arise during the course of the project from project internal reasons.

The parties may during the implementation of a contract have claims on each other. Claims may arise for a number of reasons e.g.: unforeseen conditions, acts by the authorities, variations, unsuccessful remedial work, delays, suspension, delayed payment, tests, insurances, force majeure, indemnities, termination etc. A claim may result in a change to the contract – but whether and how the claim impacts on the contract will depend on the content of the contract. In chapter 4, we stress the importance of proactive contracting in order to minimise changes and risks generally.

In chapter 5 below we focus on some key issues in relation to variations by giving some illustrative examples of change management clauses based on the FIDIC (the International Federation of Consulting Engineers) Silver Book and Orgalime turnkey General Conditions 2003 for EPC/turnkey projects.

Need of variations and project changes may arise as a consequence of poor initial planning, design errors, technical innovation, modernisation, emerging of new products, changed plans by the employer etc. Often variations creep into the scope and surface at a stage when the cost and time impact already is big. Variations may have been poorly dealt with in the contract or left to project management procedures to be established during the course of the project. In the absence of change procedures and when a variation later turns visible, project managers on both sides start reading the technical requirements, the scope, the functional requirements, which may have diverging contents at different priority levels of the contract (like the request for bid, the bid, other contractual appendices). It may emerge at such later time that the parties have a different perception of the intended end result of the project or delivery. The task to converge the parties’ opinions at this stage may be burdensome and collapse the project as has happened for example in many IT projects.

Change control procedures are discussed in chapter 6 below. Bearing in mind the impact on project costs, schedule and quality of results both parties will benefit from a carefully considered procedure for changes, which is documented and agreed in advance. Change control processes must be established before work starts. When changes start to creep into the scope, it may be too late. The process should, however, not encourage changes unduly. A change is always an exception and must be justified. Bureaucracy should be avoided and small changes with little impact should be dealt with at working level. As in all business, activity focus must be on issues, which are material for the result or bottom line. It is worthwhile investing some time in agreeing on good change management procedure since it may cost more to have a bad one. If this approach is taken, resources will be freed for the main task for project teams on both sides, which are the implementation of the project and the creation of value to the parties.

4. Minimise changes by contracting with care and foresight

Management of changes starts with drafting and negotiating the contract with care and foresight. It is crucial to know how the commercial heart of the contract and what rules governs it. It is not enough to pay attention only to the change control clause, since the basis for its application is some heavy contractual stuff allocating the business value and the risks. As highlighted in the introduction claims may arise for numerous reasons like delays, defects, omissions etc. It is important that those reasons are foreseen as far as possible and that the consequences are dealt with in the contract in order to minimise costs and conflicts. There will be surprises anyway and the resources should be spared to tackle those. The role of the lawyer is to be a member of the project team from the very beginning, because only then he or she can focus on proactive contracting and avoid disputes.

When looking at the causes for claims and variations it is advisable to start with the scope of the works. The scope must be carefully and clearly defined. As an employer, you must check that the bid responds to your bid request. As a contractor, you must make sure your changes to the scope proposed in your bid will be part of the contract. Both parties have a task to avoid contradictions or misunderstandings. Make sure your lawyer is familiar with the scope since it is the basis of the remedies clauses etc.

The negotiators and project team members must be aware what the price is supposed to include/cover and how it is structured. The general assumption is that the price agreed shall cover the scope described in the contract, unless otherwise agreed. Is the price defined as a lump sum or based on unit prices, or both? If the scope is defined in detail, missing details may lead to changes and have impact on the price. If the scope is defined functionally, by end results, there may be less risk for changes of the price. The contractual change mechanism is often placed in connection with the price clause providing unit prices etc. as a basis for changes to be agreed on.

Scope and price are essential, but you should not yet give up and leave the rest to your lawyer alone. There are many more clauses having a substantial impact on your business results. The contract is not only a legal document to be put in an archive after signing, but it shall also provide the guidelines for the project work and management in order to minimise conflicts.

For example, the documentation may enable the employer to apply for permits required by the authorities and to operate the delivery. Incomplete or faulty documentation can have a major impact on the results and delay the project. Claims and changes relating to the documentation must be foreseen and dealt with. The intellectual property rights to both the delivery and the documentation will have impact on how the results can be used (for example right to amend standard documentation in order to obtain permits).

Time is money and the delivery should happen on time. The delivery may be delayed for different reasons: contractor is delayed, contractor’s subcontractor is delayed, employer is delayed, force majeure, ground conditions, delays by the authorities (which may initially be caused by either of the parties) etc. These delays will have to be dealt with in the contract in different ways depending on the risk division agreed by the parties. Usually a party will have to bear the risks and costs of delays on his side. Attention must be paid to careful definition of the causes of delays and their consequences.

The delivery shall be tested against agreed criteria and be repaired or replaced should the criteria not be met. Passing of tests is usually a precondition for taking over the delivery. It is important for both parties to establish a procedure for how the test criteria shall be met. The payment schedule usually ties in with the progress of the delivery and a clear definition of the take over conditions is essential for both parties.

The remedies clauses must not be forgotten either. Consequences of delays, liquidated damages for failed performance, obligation to remedy and repair belong to this group of issues. Furthermore, if the project totally fails, the rejection and termination may come into the picture. The legal system to which the contract in question belongs must not be forgotten either since claims may arise on tort basis. For large projects the remedies provided by the law in the Nordic countries in case of termination are difficult: the performance on both sides should go back (it may be easy to give back monies, but how about a factory installed at a piece of land?). This is why there must be detailed provisions how to valuate the delivery and compensate the suffering party should the worst thing happen.

In contractual words, pay attention to clauses like Documentation, Intellectual Property Rights, Reporting, Schedule, Delays, Testing, Take Over, Guarantees, Indemnities, Liabilities, Insurances, Rejection, Termination etc. These clauses may give rise to claims and they are all linked with the scope, the price and the change or variations clauses.

5. Variations - Some key issues and how they are resolved in standard terms and conditions

Contractors and employers often rely on STCs to govern their relationship. No doubt these are helpful instruments, but they should be used with awareness and care. When STCs constitute a part of a contract, it is essential for the contracting parties to truly understand how the conditions allocate risks between the parties. The party is able to minimize his own risks and estimate properly the value of the contract only after he has identified the risks which he is about to agree to bear. This is especially true when the allocation of risks is not in equilibrium but rather one of the parties is to bear most of the risk.

FIDIC (the International Federation of Independent Consulting Engineers) Conditions of Contract for EPC/Turnkey Projects also known as the Silver Book contains, in addition to clauses governing the claims of the Contractor resp. Employer, a contract clause on variations (Clause 13 Variations and Adjustments). Orgalime (Liaison group of the European mechanical; electrical; electronic and metalworking industries) Turnkey Contract for Industrial Works consists of three integrated parts, the main Contract Document, the General Conditions and the Checklist. The General Conditions which contain a clause for variations (Clause 8 Variations).

For more information on these two above mentioned organizations see websites: www.fidic.org and www.orgalime.org.

The following issues highlight a just a few aspects of these standard conditions on variations, which should be taken into consideration by the parties:

Issue 1: Who is entitled to initiate variations?

Difference: It is clear under both standard conditions that the Employer/Purchaser has a general right to instruct or propose variations for whatever reasons, whereas the Contractor’s right is qualified by the interest of the Employer/Purchaser. The rights of the Employer are stronger under FIDIC Silver Book since the variation has to be executed by the Contractor on the mere instruction by the Employer. Under Orgalime Turn Key the risk that the works stops after a variation proposal should be taken into account. The value engineering under both standard conditions is in the control of the Contractor since it is restricted to his opinion on the matter.

Issue 2: When and how is the variation established?

Differences: The Contractor is obligated under FIDIC Silver Book to act on Employer’s instruction, whereas Orgalime Turn Key requires agreement of both parties or expert resolution to implement a variation. This is an important difference. Under FIDIC Silver Book the Contractor is very exposed to the Employer’s decision making and may have to wait to achieve justice, but under Orgalime Turn Key again there may be long delay to the project which may cost more than the dispute in question. Orgalime Turn Key also enables the Contractor to refuse variations not foreseen. In a long project, the need for a variation may not be foreseen.

Issue 3: Who bears the costs for the variation?

Difference 1: Under FIDIC Silver Book, the Contractor bears the costs of preparation in case of Value Engineering, whereas under Orgalime the Purchaser bears the costs if he proposes a variation. Both conditions leave room for interpretation and scope for more specific agreement, but in different matters.

Difference 2: FIDIC Silver Book gives some steering on the cost division which implies a faster resolution period if agreement cannot be reached than under Orgalime. Project management requires, however, in most cases more detailed guidelines and steering on cost/benefit division, especially in cases where variations are likely.

As is clear from this limited comparison, the process and cost/benefit sharing differ depending on the STCs we have chosen and negotiated. The examples show that the employer under FIDIC Silver Book is in control of the change process, whereas the employer under Orgalime Turn Key has less power to initiate and implement a variation.

The above comparison does not comprise all clauses relating to changes or variations of these STCs, but a more thorough examination shows that the change and variations clauses may not provide sufficient tools to manage changes as part of normal project management. This fact should be considered prior to signing the contract and a procedure be established as part of the contract documentation.

6. Change control procedure as part of project and contract management

Change control is an essential part of contract management and it should at least:

• facilitate the building of trust between the parties;
• help to avoid hidden or tacit changes like scope creep etc.;
• provide workable tools to agree on unavoidable and/ or useful changes before they are made;
• provide means to analyse the quality impact of proposed changes and
• assist in keeping the project on the track within budgetary limits.

As a minimum, a contract provides that changes are only valid if agreed upon by the parties. This is clear since in most jurisdictions a contract shall be implemented as it is written and a change would not automatically be accepted. It is, however, necessary to state that changes must be agreed in writing. The grey area often a cause for disputes is changes originating from insufficiently defined contractual clauses like scope, price etc. The example procedure shown below may seem detailed and burdensome, but the mission is to catch the issues upfront, in advance and have the rules clear when the project starts. If project managers only have to apply the rules, not to invent them, they are freed from the tensions relating to negotiations and conflicts.

A workable change control mechanism should address at least the following questions:

1. No change work is to be performed without a properly executed change order according to the procedure set out in the contract. Such a provision is needed in order to avoid scope creep and surprises.
2. Who has the right to instruct/propose changes? Is it only the customer or both the customer and the contractor? Are the reasons qualifying the right to propose specified? Should the contractor have an obligation to propose improvements to the project? The answer to these questions will depend on the project in question: is it a turnkey project based on proven design or an IT delivery to be developed during the project?
3. Format of and requirements on the change proposal. Will the change proposals be submitted through a computerised change management system or will they have to be physically signed and submitted to the other party? Does it have a standard content etc.?
4. Procedure to agree on minor changes. Small issues do not belong to a complicated change management procedure, but they should have their own easy procedure. Project managers of the parties should agree on minor changes and keep records (For example: update in a computerised change management system).
5. Costs of change proposal or response preparation work. The usual division of costs here is that each party bears his own costs, unless the other party by faulty performance or omission has caused the change proposal.
6. Details on the cost, timetable and other impact of the change on the project. Costs increases or reductions are easier to agree on if they are derived from agreed criteria, e.g. time based costs, agreed overheads. Extensions of the timetable and other impacts of the change may be more difficult to agree in advance, but the contractor should present his justified estimate of such impact for the customer’s approval.
7. How is the decision on the change made? From a project point of view, leaving costs and other impact aside, it is usually crucial that the decision can be made without any undue delays. This may in practise mean that the customer should have a right to instruct works to go ahead pending agreement or resolution. Such a provision may, however, in practise limit the contractor’s possibilities to impact on the change in question.
   Customer’s approval -> Acceptance, contract change order becomes an integral part of the Contract.
   Customer’s rejection -> Delivery to be continued as originally agreed or dispute resolution
   
8. The procedure should also give a steer on the Contractor’s obligation to perform according to original contract until change order agreed, unless otherwise instructed. There may be disagreement between the parties whether the proposed change is included in the scope of the contract or not and finally that may have to be left to dispute resolution. The customer should, however, have the right to give instructions on a requested/proposed change prior to agreement/resolution irrespectively of whether the change is included in the original scope or is a justified change. If the employer later turns out to be wrong, he may have to compensate the contractor for unnecessary work.
9. How are records kept on the changes? Records should be kept both on minor and changes requiring more substantial approval procedure. Project managers or assistants of both parties should be authorised to update and check the records.
10. Notices – agree on requirement on notices: format (electronic or physical), time limits etc. as part of the change management procedure.
11. A workable dispute resolution mechanism. There are various models for dispute resolution. Change management would generally benefit from a technical/economical and non-legal dispute resolution mechanism. The engineer institute in the Anglo-American contracting is instrumental in change management. The engineer is, however, not truly impartial and a dispute resolution mechanism is needed also in the cases where an engineer has been named by the customer. There is the Dispute Adjudication Board (DAB) under the FIDIC conditions and the ADR (Amicable Dispute Resolution) rules by ICC just to mention a couple of procedures. Nothing, however, prevents the parties from agreeing on a local procedure and naming the persons who shall act as adjudicators in advance.
12. Last but not least, do not forget to inform and train the project team in the change control procedure. This is essential especially in cases where the negotiation team is not continuing as the project team.
13. Note that the comments to the above list do not reflect the content of any particular STCs, but are merely based on experience from cases worked on. Careful attention should always be paid to standard clauses and change practises should be determined by the parties in the context of the project in question.

The above issues have been summarised in the following picture:

Bio Summaries:

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Klaus Pannenbäcker

The Four-Level-Certification (4-L-C) of IPMA is today in more than 30 Countries introduced. The Member Associations are responsible to run this Career System of project management personal. Most of the interested experts are experienced and successful project managers, but they are not able to explain “why”. It would be unfair, to enter into a certification process without any “refreshment” in basic knowledge. But this preparation should follow the level specific requirements of the four career levels. Due to this demand a Four-Level-Qualification (4-L-Q) is in the final development phase and should be presented to the distinguished audience during the 3rd SENET Conference.

Keywords: 4-L-C Programme, PM Qualification, PM Training

It is recognised, that Project Management is an additional profession to be successful in a basic profession.Examples:

• The engineer should be able to organise his and his team members` work, otherwise he is not profitable.
• The programmer can not adapt and implement a new program for his client without organising and controlling his own and his team members` job.

Each project responsible person is therefore a leader, manager, controller, crisis manager. The more complex the project is, the more project management competencies are required.

This is the background for a career path, finally for the IPMA 4-Level-Certification Programme (4-L-C). IPMA developed this system and the IPMA National Associations are the local organiser. In about 28 of nearly 40 countries worldwide a growing number of project management responsibles in all four 4 Levels are certificated every year. Details are published in the IPMA Yearbook.

Most of the certificants asked before starting their certification process: “How and where can I prepare myself for my certification?”---

The GPM Deutsche Gesellschaft für Projektmanagement (in short GPM) therefore started the development of a

in order to fulfil this market requirement. This combined system follows the rules of EN 17024, the updated EN 45013. Generally and clearly explained

Due to this requirement IPMA recommended to its National Associations (NA) to set up the training activities as a division of the NA and to cerate an independent body for the certification objectives and processes. 1. Four – Level – Certification (4-L-C)

The well known figure is this pyramid. The higher the level, the smaller is the number of certificated individuals. This is the traditional hierarchy in each organisation. And it is also very traditionally that these levels can only be reached as career path with extraordinary competences.

The figure also shows, the higher the level that greater are the Competences = Knowledge + Experience + Personality

The IPMA Regulations and Guidelines (ICRG) explain compulsory the contents and processes of the whole certification system. Due to the fact that each NA follows this ICRG and IPMA checks latest after the 4th year of starting the certification in its country, each National Association can assure international recognition of its certificated project management personal.

The keyword “Qualification” does not mean in this connection to have reached a specific capability of doing something properly, in this sense is Qualification = Education + Training + Coaching

The figure shows in red colour from the bottom to the top the number as well as the type of qualification hours, the certificant needs for a successful certification. It seems to be logical that:

• Education increases the Knowledge;
• Training improves the Experience;
• Transfer assists the Personal Attitude.

The International Competence Baseline (ICB) defines the objectives of project management in practise. Therefore this document is and must be the same baseline for the:

• Assessor to certificate; and
• Trainer to train.

The gap between the blue and the red “world” will explain that each certificant can enter into the 4-L-C, without any previous conditions. The “bridge” between blue and red is the self assessment at the end of a qualification and at the beginning of the certification. Due to this requirement the new ICB includes the taxonomy of each PM element: exemplary cases describe the number of points to be given.

This combined “Q + C – System” of IPMA is able to start with a new generation of Qualifying and Certifying.

Using these two keywords we as member of IPMA through our National Association recognise that Project management as professional discipline is not so well accepted, because we have no common “language”.

Our “clients”, the individuals and their organisations, expect from us more clarification as well as global acceptance in wording and in processes.

The certification with four levels is on its best way to become worldwide recognition. Here we have to thank IPMA and the Assessors.

Now we have to increase our competences in an adequate Four - Level - Qualification Programme is a programme of:

• Training material for education, training and coaching
• Train and certificate the Trainer
• Train and accreditate the Assessor

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26 - 29 June 2005, New Orleans, LA, USA

Join AACE International in New Orleans, LA and expand your professional skills at the 49th Annual Meeting – June 26-29, 2005. AACE 2004 will challenge you to better manage, plan, schedule, and implement technology on your projects for more effective and efficient business operations.

New Orleans is a little bit of Europe & the Caribbean in the American South, where the history is as colorful as the local architecture & the food is the stuff of legend. Plan now to bring your family to explore all that this city has to offer.

Take a ride on a street car, visit the world-renowned D-Day Museum, tour the historic Garden District, take a stroll through the French Quarter and Jackson Square, enjoy cajun or creole cuisine, experience the sites and sounds of the birthplace of jazz -- it’s all waiting for you in New Orleans.

AACE's Annual Meeting Technical Program is a great way to add to your perspective and to provide ideas of how others are handling modern cost management projects using the latest techniques. A unique collection of new technical presentations about real world projects and problem solving will be presented by over 100 authors. Multiple meeting room tracks give participants many concurrent options to choose from which show leading edge technology in action. Participants will be able to download papers once they register that will enable you to design the best program for your needs.

The Technical Program tracks will also feature a "Skills & Knowledge" track which is great for those who are new to the profession. These mini seminars will survey the scope of modern cost engineering and are also very useful for those who specialize in only one area, and who want to refresh their skills in other areas. Plus there will be a track on the latest software being used called the "Software Showcase" that will give users the chance to see what's new from key industry suppliers. The remaining tracks will feature papers on all aspects of cost estimating, project controls, planning and scheduling, project management, decision and risk management, cost engineering, global projects and many other topics relevant to today's professional.

The Annual Meeting Continuing Education Seminars are an excellent way to enhance your professional knowledge and growth.

As you are well aware, in today's recovering economic times, training budgets have been slashed and people's work commitments are such that non-billable time is hard to justify. One may simply think that 'There is no way to sell such an expenditure at this time!' AACE International’s Jim Zack (Vice President-Technical/Education/Certification) believes the opposite is the case. Zack implores you to consider his following points:

• Professional cost engineering training has been removed from budgets so long that the new generation of cost professionals needs to be taught the cost and schedule management skills necessary to become a key asset to their organization. AACE has a comprehensive package of professional seminars with instructors who have on average have more than 25 years of hands-on experience and expertise;
• AACE's seminar program is an exceptionally cost effective resource for companies needing employees with a fresh perspective and expertise across a broad range of cost engineering subjects;
• There is always room in a company's budget for training when it returns value. The key is to get management buy-in to the need for professional training within the normal budgeting cycle. This makes the training request an integral part of the budget and is not seen as a last minute, special request requiring budget shifts and special permission;
• Continual training brings big rewards to employers and employees. A well trained professional does their job better, is more productive and knows best how to manage cost and schedule to the advantage projects and their company. Likewise, employees have better feelings for themselves and their company. AACE's cost engineering training promotes a well run organization with quality employee; and
• Finally, ask yourself the following: 'What if we train them and they leave?' The correct question is: 'What if we don't and they stay!!!!'

AACE’s Annual Meeting Continuing Education Seminars cover a wide-range of topics for all levels of cost and management professionals. The seminar schedule includes the following:

W1 Certification Review Course & Examination

Improve your performance on the CCC/CCE examination by taking this course. Prior to your arrival, you should be fairly well prepared to sit for the examination. If you are taking this course, you should have read and worked some problems in Skills & Knowledge of Cost Engineering, 5th edition and Certification Study Guide, 2nd edition, to become relatively comfortable with their contents. You should also review college algebra (logarithms and exponents), business or engineering statistics, and engineering economy or finance. Each day’s 5.5-hour presentation covers subjects that are tested on the 2-hour CCC/CCE exam part given later that day. This allows you to focus on those particular subjects, be tested on your skills and knowledge of those limited subjects, and then move successively to other topics on later days. As soon as your registration is received and approved, you will be sent a copy of Skills & Knowledge of Cost Engineering, 5th edition and Certification Exam Study Guide, 2nd edition. If you already own either or both of these publications, let Headquarters know and the cost of the publications will be deducted from the registration fee. Instructor: Dr. Randy R. Rapp, PE CCE. 24 PDHs or 2.4 CEUs

W2 Planning & Scheduling Review

This course will help you review the principles and concepts of planning and scheduling in order to help you prepare for the Planning and Scheduling Professional (PSP) certification examination. Since the PSP was initiated in June 2004, we have frequently been asked questions relating to the level of experience and knowledge the PSP measures. While the PSP is designed to demonstrate that one is qualified to plan and schedule a project or endeavor using the equivalent of 8 years experience. It is not meant to be a measure of one’s ability to use a particular software tool, but rather the concepts of planning and scheduling that software helps by automating. Nor is the PSP designed to measure one’s ability to meet a particular company or organization’s standard practices. This course will not teach you the PSP examination, but the course will help you to prepare for it. Instructors: Donald F. McDonald, Jr. PE CCE PSP; Michael R. Nosbisch, CCC PSP. 14 PDHs or 1.4 CEUs

U1 Range Estimating

Range Estimating picks up where traditional estimating leaves off. This intensive one-day seminar is designed for engineers and managers who regularly face decisions involving multiple and diverse quantitative uncertainties such as those found in budget/conceptual/detailed cost and profit estimating, contingency analysis, competitive bidding, project control, and annual profit planning and who are users of Decision Sciences Corporation’s Range Estimating Program for personal computers (REP/PC). This seminar is a solid introduction to the theory and practical application of the Range Estimating methodology. In addition to learning the language of Range Estimating, you will learn where and when to use it, how to capitalize on its advantages, and how to correctly apply it over a broad spectrum of decision making problems. Instructor: Michael W. Curran. 14 PDHs or 1.4 CEUs

S1 Managing Scheduling Acceleration

Are you faced with schedule acceleration – every contractor’s worst nightmare? Schedule acceleration costs money, lots of it, depletes cash reserves, disrupts normal operations, attracts a disproportionate amount of attention, causes individual stress, and destroys any semblance of a team approach. In some instances it forces companies into bankruptcy. Different management approaches, other than normal ones, are needed. What information may be available is scattered and fragmented. A systems view is not adopted. This void is addressed in part by this course. Instructor: Dr. H. Randolph Thomas. 8 PDHs or .8 CEUs

S2 Process Technology for Cost Engineering

Eighty percent of the cost of a process facility is committed by design decisions by process engineers, made in the conceptual phase. Large savings can - and will - be achieved when cost engineers are involved in process design at the earliest opportunity. It is of vital importance, however, that these cost engineers have a basic understanding of process technology, and develop a feeling for the motives and limitations of process engineers. This is a two-day course designed to teach the basic concepts and the language of process technology. Instructor: Dr. Martin S. A. Vrijland. 14 PDHs or 1.4 CEUs

S3 Complete Skills of Estimating, Cost Control and Scheduling

This new, important course, listing the top 20 cost control skills, has been developed and it allows you to measure their skills against this "base". This course provides an international body of knowledge for you to become more effective and successful as senior project cost professionals, possessing the latest skills & knowledge in the global workplace. The focus is on essential and advanced application skills that directly relate to all phases of a project, at both owner and contractor levels. When properly utilized, these skills and techniques can directly lead to cost savings or, at the very least, to risk mitigation, schedule stability and cost containment. Instructor: James A. Bent, ECCC. 14 PDHs or 1.4 CEUs

S4 Project Planning Techniques

Instructor: Dr. Parviz F. Rad, PE CCE

T1 Construction Claims 101

This two-day course is designed to take you through the basics of construction claims. You will learn the ten types of claims routinely available to a contractor in a typical North American contract. You will be taught the elements of proof needed for entitlement and cost recovery. You will also be provided a checklist of items necessary to document entitlement, causation and damages for each type of claim. The course also covers damages, analysis and resolution techniques and ends with a case study of an actual claim for a brief analysis by the participants. The course is designed to leave you with a good understanding of the need to manage project change and you should be better prepared to deal with claims situations when they arise. Instructor: James G. Zack, Jr. 16 PDHs or 1.6 CEUs

T2 Estimating A to Z (for the Process Industries)

Are you an estimating novice? Do you fully understand the differences between the contractor vs. owner points of view and issues? Do you ever need help in understanding the estimating problems of mega-projects? If you said yes to any of these questions, this is the course for you! This course is designed to provide comprehensive coverage of the fundamentals of estimating for the process industries, this seminar will cover many subtle and advanced estimating concepts as well. An emphasis will also be placed on examining the conceptual estimating methodologies that can assist in preparing accurate estimates at early design stages of a process industry project. Instructor: Larry R. Dysert, CCC. 16 PDHs or 1.6 CEUs

T3 Implementing Value Improvement Strategies…”The Easy Way”

The course will provide an introduction to the value improvement process, provide instruction on performing value improvement studies, and training for conducting own studies. While learning the value improvement job plan you will apply the knowledge to a “Live VE Lite” project. It is recommended that you bring your laptop with Excel, Word, Visio and PowerPoint, small project with cost estimate. You will perform the value improvements on your own project and take results back to your company for continued value improvement reference and applications. Instructor: Del L. Younker, CCC. 16 PDHs or 1.6 CEUs

T4 Creative Approaches for Estimating, Tracking & Projecting Project Cost

This course will help bring your into the real world of project management cost estimating/tracking. You will participate in creating realistic cost estimates for project management through course exercises. Other exercises will deal with using the cost plan for managing the project. Concepts and automated tools will be reviewed and a learning assessment exam will be given. Instructor: Lee R. Lambert. 14 PDHs or 1.4 CEUs

T5 Business Success Through Excellence in Project Management and TCM

Industry benchmarking has shown that the difference in cost and schedule between best and worst projects can be as much as 30% and the total cost of ownership over the life of the asset can be astronomical. In today’s competitive business environment, this can mean a difference between a profitable company versus the one that becomes a takeover target. This course will address the management of limited and scarce capital resources for consistent Pacesetter Project Performance. Value Improving and Best Practices which help to optimize cost, schedule, performance and safety aspects of any project will also be presented. Practical workshops and interactive discussions are vital elements of the course. Participants will be assigned to teams and will work on real life case studies. Instructor: Dr. Nick J. Lavingia, PE. 16 PDHs or 1.6 CEUs

T6 Planning & Scheduling Basic to Advanced

This course is a thorough presentation of the principles used in planning and scheduling, which results in effective management of projects in order to remain competitive and successful in today’s economy. The first portion of the course is intended as a refresher course if you do not engage in these practices full-time or as an introduction if you have little or no background in the subject. The second portion of the course moves from schedule development into schedule usage as a management tool. This session presents intensive training of intermediate and advanced schedule techniques including earned value, schedule and cost performance indices for managing projects, the differences between status, progress, and performance measurement, calculations, and reporting will be explained. You will also be exposed to cost and time relationships for evaluations of crashing or stretching work plans and the use of schedules in a multiple project environment. Instructors: Anthony J. Werderitsch, PE CCE; James E. Krebs, PE CCE. 15 PDHs or 1.5 CEUs

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13-16 November 2005, New Delhi, India

IPMA invites you to come to India this November. The opportunity is twofold: the 19th IPMA World Congress scheduled between 13-16 November 2005 and the chance to visit incredible !ndia – at her festive best in November. For the first time in the last 40 years, this flagship IPMA event will be held outside Europe in a location that entrances the world as a tourist paradise , and simultaneously offers a dynamic business opportunity besides being a splendid venue for international conferences and conventions.

The congress has received unprecedented support from all quarters including 7 key central government ministries, 8 international partners including ICEC and 38 Indian industry associations.

Featuring a special invited address by Prof Ervin Laszlo - one of the foremost exponents of systems philosophy, besides 6 keynote presentations by top-notch speakers from all over the world and 60 paper presentations from over 40 countries.

We invite you to be part of this unique congress and join us in Delhi for the four days that promise the right mix of business and pleasure. A power-packed technical session. Four major streams with 25 sections

• Stream 1: PM for Economic Transformation:
  • Infrastructure (Power & Construction;
  • Telecommunication;
  • Transportation (Road, Railways, Aviation & Shipping);
  • Energy (Oil, Gas & Coal);
  • Chemical and Petrochemicals; and
  • Poverty Alleviation.
• Stream 2: Best Practices in PM/ Lessons Learned:
• Manufacturing;
• Research;
• Pharmaceutical & Health Care;
• Biotechnology;
• IT & ITES;
• Banking & Insurance; and
• Quantity Surveying & Cost Engineering.
• Stream 3: New Frontiers in Project Management:
• Managing global project teams;
• Competency measurements;
• Certification & Qualification;
• Project & program management balance score card;
• Organisation project management maturity; and
• Project mindset.
• Stream 4: Project Management in Government:
• Federal/central bodies;
• State/provincial bodies;
• NGOs;
• International financial institutions;
• International development agencies; and
• Global Institutions.

For more information contact the 19th IPMA World Congress Secretariat:

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26 – 28 October 2005, Copenhagen, Denmark

NORDNET 2005 will take place at “Mehldals Smede” near the harbour and the new opera of Copenhagen. The theme of the symposium will be the new “National Competence Baseline for Scandinavia”.

• Four plenary sessions with key note speakers;
• Twelve half-day workshops with coordinated speeches;
• Two open streams of sessions with paper presentations; and
• Eight project presentations in companies.

The main language is Scandinavian (Danish, Norwegian and Swedish). Two plenary sessions and one paper session stream are planned to be in English.

The preliminary titles/themes of the four half-day modules of the English lanaguage stream are:

1. Lead project management through planning and evaluating the management effort and organising the management phases such as preparation, start-up and close-down;
2. Perform project management which include both the overall definition of frames for the project and the ongoing management of the project execution;
3. Manage corporate project processes including handling the project oriented management functions such as PMO, the project portfolio and programs; and
4. Perform appropriate leadership behaviour which integrate the project process, promote the project performance and stimulate the co-operation between participants and parties.

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Foreningen for Dansk Projektledelse (FDP)