Implementing a Construction Strategy – Playbook Review Part 7
In part six, we discussed the various elements of an effective communication strategy when implementing a resilience program. Now, we will explore how to implement a construction strategy. This step is discussed in chapter five of PDi2’s Utility Infrastructure Resiliency Playbook.
Ideally, defining program scope, assessing resourcing implications, and contracting strategy should be discussed in the planning phases. Internal or contractor scope of work would normally be defined when the program or project concept is defined. The project concept then becomes the lens through which the resourcing strategy, contracting strategy, sourcing strategy, and project delivery tactics are selected.
Once the resiliency program is defined and the phasing pace identified, an assessment of needed resources can take place. Key among these resources are construction labor and supervision. Many electric utilities maintain significant internal construction and crew resources and utilize contractors when peak capacity warrants. As the resource needs are defined, a later decision on the use and application of internal crews versus contractor crews is required.
The first steps of a contracting strategy should be setting a sourcing strategy for the design, right of way acquisition, and construction services associated with the resiliency program. Next comes the selection of project delivery tactics, followed by making an insourcing versus outsourcing decision (discussed more fully in the next post). One of the drivers of the insourcing versus outsourcing decision is an estimate of resources needed and the implications of the utility to building or hiring this workforce.
A sourcing strategy involves first deciding whether the owner prefers a more arms-length or collaborative/integrated relationship with service providers to execute the resiliency program. A more arms-length approach or traditional approach is easier to implement and understand. A collaborative or integrated sourcing strategy offers the potential for lower long-term cost, risk reduction, and process improvement. Given the visibility of these types of programs, the long-term nature of them, the opportunity for process refinement or improvement, and the regulatory oversight, a sourcing strategy offering risk reduction may prove beneficial.
Project Delivery Tactics
Once a decision is made on a sourcing strategy, the next major decision is to select a project delivery system for the resiliency program. The project delivery system defines how individual projects or bundles of work will be undertaken. There are three tactical decisions to answer and the combination of all three of these decisions equals a project delivery system.
- What contract vehicle or method will you use to select a price?
- How will you manage the design/construction process?
- How will you build the job?
Download the Playbook
Once the various strategies are in place, the next part of resiliency program implementation involves insourcing vs outsourcing tactics, field productivity reporting, and implementing program KPIs. For a deeper look at the nuances of developing a resiliency program and relevant case studies, download a free copy of PDi2’s Utility Infrastructure Resiliency Playbook.