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Chapter 9

- The engineering and construction contracting strategies have been

established.

- The timing of environmental and construction permits has been firmed

up with the pertinent agencies. However,thepreparationofexecutionplans is abootstrapoperation,wherea preliminary plan must first be developed to make the execution decisions, which in turnmayimpacttheoriginaldataanddeterminethefirmexecutionplan.The information required to prepare a preliminary project execution plan is essentially the same as that required forthe initial planofactiondiscussed in Chapter 5, except that it is now based on more accurate data. Whereas the latter is based on conceptual data and educated guesses, the preliminary execution plan must reflect, at least, a Phase 0 design and a preliminary or conceptual cost estimate. The annotated equipment list developed in the Phase 0 design (see equipment list and cost estimate in Appendix L) will permit the Project Manager to prepare, as indicated in Section 19.1 a conceptual cost estimate including:
- Equipment cost. - Engineering cost and hours.

- Total direct construction hours broken down

activities.

by major construction

Such an estimate, for the case study, is illustrated in Table 9.1 It must be noted at this point that Fig. 5.1 is based on total field hours, direct andindirect,andthattheconstructionhoursshown in theestimatesmustbe adjusted before being used to determine project durations. The direct hours must be adjusted by adding 15% to account for supervision and miscellaneous indirect craft labor plus the contingency or growth factor included in the estimate. Project durations and peak engineering and construction staffing can now be estimated with the aidof Fig. 5.1 and the pertinent rules of thumb in Section 5.1. With this information on hand the Project Manager can check the Validity of the conceptual data developed at the project onset with the Order of Magnitude (OOM) estimate.