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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