Cost Controls
Evaluate design options through breakout estimates to facilitate cost and schedule-driven decision-making
• Revised alignment: PDB – no schedule impact & marginal cost change; DB – 18-month delay & $350M change order
• Proactively identify and assign risks to relevant parties • Weights risks by likelihood of occurrence and potential cost & schedule impact • Focuses efforts on issues that pose most significant risk to timely completion of project within budget
Risk Workshops
Comprehensive cost savings workshops, resulting in $200M in savings
• Identified and evaluated 143 potential ideas • Implemented 37 ideas into the design
Pursuing cost reductions across all early work packages (EWP), establishing a culture of financial stewardship
• Each EWP estimated in an iterative manner, resulting in 16.7% in savings compared to initial PDB proposals • Maintains tough negotiating environment on each step leading to Binding Price Proposal (BPP)
Independent Cost Estimator (ICE) process provides comparison point for negotiations between MDTA and PDB
• ICE firm utilizes a contractor’s approach to develop bottoms up cost estimates – both EWP and BPP • MDTA is employing a second ICE firm as a “blind estimator” to provide external validation of overall costs
• Many materials are uniquely fabricated and are not off-the-shelf products • Reduces project risk through early procurement • Allows critical path to progress while design progresses
Early work packages provide cost and schedule certainty for critical materials and construction
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