INSTRUCTOR: Nghi M. Nguyen, Ph.D., P.E., PMP, M.ASCE

Purpose and Background

The management of subcontractors' activities in construction projects is becoming increasingly more important as project management professionals realize the importance of this process in any project's progress and success. Too often, project objectives are not accomplished on time, within approved budget and with client's satisfaction . Many times, it is because of unsuccessful management of what subcontractors are to deliver, i.e., their abilities to successfully deliver the materials or services within their budgets and time commitments . In today's competitive business environment, companies manage the challenges and exploit the opportunities by implementing effective and efficient subcontractor controls system to major subcontractors, to keeping their projects on schedule and within approved budget to meet  client's needs, requirements and  expectation. The development of such a system consisting of processes performed to monitor and control the project execution of subcontractors and measure their performances to ensure that corrective actions for identified potential problems, when necessary, can be taken in a timely manner before cost overruns and schedule delays occur uncontrollably, is an important part of project management. An effective subcontractor management controls system ensures activities necessary to meet subcontract scope, quality, schedule and cost objectives, aiming to achieve the project mission. It must be designed to meet the agreed-upon targets associated with resources consumption in terms of cost and schedule as well as project deliverables in terms of quality and functionality. This course is designed to cover the essentials of a project controls system for subcontractors management in the construction industry which is focusing on understanding, optimizing, communicating, forecasting and constructively influencing the cost and schedule outcomes of a subcontractor performance while maintaining acceptable levels of quality and risks as well as the scope of the deliverables for the duration of the subcontractor work in order to assist effective and efficient decision making process in project management.

Seminar Benefits

• Learn the basic concepts of subcontractor management and control as a key project management function .
• Identify subcontractor  project requirements.
• Establish an effective WBS reflecting your project strategy to manage subcontractor contract in order to accomplish your project objectives.
• Develop subcontractor's project works cope.
• Plan and schedule subcontractor project activities.
• Estimate and establish the subcontract budget
• Establish subcontractor  Performance  Measurement Baseline (PMB).
• Evaluate subcontractor performance against its PMB.
• Understand  how to  use early-warning signals to  pro-actively  manage subcontractor works.
• Manage effectively potential subcontractor work scope changes.
• Effectively integrate risks in the subcontractor PMB.
• Forecast the final subcontractor work cost and schedule trends.

Learning Outcomes

Aligned with the Project Management Institute (PMI®) Guide to the Project Management Body of Knowledge (PMBOK® Guide}, this course provides participants with the knowledge and skills of subcontractor management and control processes associated with integration of the contractor's contract work scope , schedule and cost objectives; establishment of a performance measurement baseline for accomplishment of its project objectives; and use of project controls techniques for performance measurement during the implementation of its contract. Working through practical and real-work exercises, participants will interact with colleagues to learn and apply the methodologies and best practices of an effective subcontractor project planning and controls system.

Assessment of Learning Outcomes

The instructor will utilize a combination of lecture, case studies, answering questions, and refreshing the discussion through a short post-seminar exam.

Who Should Attend

This seminar is designed for all personnel whose work directly or indirectly involved project controls functions in the management of subcontractors' performance affecting project success as well as those who can improve the effectiveness and efficiency of their day-to-day work with subcontractors by applying effective subcontractor project control concepts and methods in the construction industry. These include project managers, program and portfolio managers, key project team members, project management professionals and members of the Project Management Office (PMO), among others.

Seminar Outline

TIME: 8:00 a.m. - 5:00 p.m.

DAY l

Introduction to Subcontractor Management

• What is Subcontractor Management?
• Subcontract  Categories
• Planning for the Procurement of Subcontractor Work Scope
• Subcontractor Risk Management
• Subcontract Types Selection
• The Subcontract Procurement Management Plan
• Solicitation Planning
• Legal Aspects of Subcontractor Management
• Solicitation of Seller Work Proposals
• Source Selection and Subcontract Award
• Subcontractor Administration
• Subcontract  Closure
• Typical Subcontractor Documents
• The Objectives of Subcontractor Project Controls
• Characteristics of an Effective Subcontract Control System

DAY 2

The Earned Value Management (EVM): An Effective Subcontractor Controls System Approach

• EVM Simple Example for Subcontractor Management
• An EVM-Focused Approach Provides Better Subcontract Controls
• EVM Subcontractor  Planning
• The Performance Measurement  Baseline (PMB) Establishment
• The PMB Characteristics
• Integrate Subcontract Work Scope with Cost & Schedule
• Earned Value Control Account Plans (CAPs)
• Cost Estimates and Budgets
• Management Reserve (MR)
• Determine Measurement Methods for CAPs
• Establish the Subcontract PMB
• EV Cost & Schedule Variances
• Typical PMB Subcontract Measurement
• Cost & Schedule Results Methodology
• EV Data Elements Interpretation
• Cost Performance Index (CPI) versus Schedule Performance Index (SPI)
• Estimate At Completion (EAC)
• To Go and To Complete CPls
• Predict the Subcontract Time Duration
• Typical Subcontractor Control Questions for Subcontract Performance
• Combining Earned Value SPI and CPM (Float) Analysis Approach
• Integrated Cost/Schedule Performance Report
• Cost/Schedule Status Report (C/SSR)
• EVM Subcontractor Summary Report

EVMS Exercises, Video Presentation and Reading References

About Face-to-Face Seminars

Hilton St. Louis Downtown at The Arch
400 Olive St
Saint Louis, MO 63102-2718
(314)436-0002