San Francisco Bay Bridge - Project Management Issues

Group #9

Bay BridgeEric ChanJolene KuoHuiting TangLele Zheng

Contents

Introduction

Modeling, Data gathering and Analysis

Conclusions and Recommendations4

Executive Summary1

2

3

Executive Summary

In the following paper we focus on two of the challenges that arose at different

times in the project’s life cycle. Our focus:

In the following paper we focus on two of the challenges that arose at different

times in the project’s life cycle. Our focus:

1

22

3

4

The importance and the uniqueness of

these two problems

The conflicts that were caused by the limited resources

Their scopes and interdependence

The project management processes that were

used to manage them

What comes to mind?

The “Other” Bridge

The “Other” Bridge

What’s the difference?

The “Other” Bridge

Loma Prieta Earthquake of 1989

Loma Prieta Earthquake of 1989

Problems

Initial ProblemInitial Problem Further problemsFurther problems

Overrun Costs

• Address the significant overrun costs that occurred, causing a complete halt to the construction.

Retrofitting the existing east span to be more seismically safe

Construct a new seismically safe structure all together

Problem 1

Seismic Issue

Seismic Issue

• Portion of Bay Bridge collapsed in 1989 due to earthquake• Bay Bridge lies within 10 miles of 2 earthquake fault lines• Caltrans investigated and suggested either retrofit or rebuild of

the bridge• Rebuilding the bridge would last up to 100 years rather than 30• Started building in 2002. Built to withstand 8.5 magnitude

earthquake and set to SEE (This is defined as an earthquake that generates the largest motions expected to occur at the bridge site once every 1,500 years )

• As of now, major components in place. Should open by September 2013

Timeline- Main Points

• 1989 Loma Prieta earthquake• Dec. 1996 Caltrans recommends rebuilding• 1997 budget estimated at $1.5 billion• 2001 Caltrans releases new budget of $2.1 billion• 2002 construction begins• 2003 Caltrans revises cost at $2.95 billion• 2004 Caltrans reveals cost of $5.1 billion• 2008 foundation laid, however labor disputes arise and costs rise to

$5.7 billion• 2013 bridge expected to be completed

East Span construction

The NEW East Span

Problem 2

Cost Issue

Overrun Costs

California ran out of money

Raw Material Cost Increase

9/ 11 increased the cost of bonds for construction

Overrun costs = ???

Top down budgeting was not working Resource usage changed

Contingency fund was not enough

Budgeting Management

Involved engineers and outside resources

Governor Office had the right to audit Bridge finances

Bottom up Bottom up

Fiscal Responsibility

Fiscal Responsibility

Change Resources Change

ResourcesLower raw materials cost

Solutions

Budgeting Management

Involved engineers and outside resources Bottom up Bottom up

Divide the project into 13 smaller projects to obtain competitive bids

“Buy America” Clause

Budgeting Management

Governor Office had the right to audit Bridge finances

Fiscal Responsibility

Fiscal Responsibility

California Legislation eased bond requirements so Caltrans could obtain bonds for the overrun cost.

California would cover 43% of the overrun cost.

Caltrans traded federal funding with state funding

Budgeting Management

Change Resources Change

ResourcesLower raw materials cost

“Buy America” Clause

Caltrans traded federal funding with state funding

Able to use foreign steels and other raw materials Outsource the building to China, Japan, Korea, and England

Conclusion

Conclusions & Recommendations

RecommendationsRecommendations

Recourse Leveling

Planning-monitoring-controlling process

May help avoid lagging the project and finish it before the deadline of 2q013.

May help foresee any causes that could either delay the project or produce extra overrun costs

ConclusionsConclusions

The first issue Reflects the application of risk

planning and budgeting in project management.

However, the construction is still underway.

The second issue Relates to cost estimating in

project management. The cost estimating process

may be the main factor of the overrun costs.

The Bay Lights