Utility Company Finds Solution to Limit Risks and Cost Exposure of Construction Litigation
The Client
- Engineering and Construction Services group of a large utility company
- Planned to invest approximately $8 billion in Scrubber construction projects over the next 10 years to support environmental compliance
What the Client Wanted
- A project information management system (PIMS) that would limit the risk and cost exposure of construction litigation
Background
Major construction projects inevitably end up in litigation due to the sheer size of the projects and financial exposure of all parties involved (contractors, vendors, etc.). The client’s “off the shelf” hosted project management solution did not allow for the specific record keeping and reporting necessary to effectively track construction contracts in a manner that minimized risk of litigation. And, as a hosted solution, it carried significant recurring costs.
Challenges
- Client could not find an off the shelf solution that would meet their needs
- Urgency – projects were ramping up and time was of the essence to deploy a solution that could start to track construction efforts
- Lack of a central data repository in which to create reports to monitor and manage contract compliance and progress across multiple construction projects
- Poor productivity due to lack of synchronization across teams (the company itself, vendors, contractors)
- Security concerns – any solution would require that vendors and contractors enter information into a central system; security had to be successfully addressed as part of the solution
LÛCRUM’s Role
- Conducted an Envisioning Workshop to align all stakeholders (Business and IT)
- Issued technology recommendation that would utilize SharePoint
- Established business and workflow analysis and requirements
- Led solution architecture and deployment
LÛCRUM’s Approach
- Focused on people and business needs first, and technology second
- First, focused on gaining alignment of the vision for the PIMS and of expected business results among all stakeholders
- Next, determined the right application of technology to drive the solution
Timeline
- Initial discovery phase: two months
- Project scoping and requirements phase: three months
- Development; adoption of SharePoint as company standard: three months
- Live at one plant: three months later
- Live and supporting all projects: two months later
From discovery to full implementation… less than one year!
The Benefits
- Increased project control, tracking and monitoring
- Reduced risk in litigation
- Improved project documentation and information retention
- Manage information and documents used for lawsuits, SOX, SEC, reporting, etc.
- Manage disparate information: pictures, drawings, forms, documents
- Improved communications
- Improved productivity/reduced costs
- Enhanced asset management
- Reduced material and travel costs
“Claims and litigation seem to be an inevitable part of construction projects, but this does not mean that nothing can be done to reduce the risks, or at least limit delays, disruptions and expenses, caused by conflicts on construction projects.”
-American Bar Association
