Project Management Manual

Version 4.0
June 2019
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TABLE OF CONTENTS

Disclaimer for Non-City Representatives

This Project Management Manual (Version 4) is prepared by the City of Winnipeg for its own
internal purposes and parties hired to represent the City in projects. The City of Winnipeg makes
no representations, warranties or guarantees as to the accuracy or sufficiency of this Project
Management Manual or the information contained herein.
Further, notwithstanding your use of this Project Management Manual or the information
contained herein, you have been engaged by the City to provide professional advice and services
and are expected to do so in accordance with your contract and all applicable professional and
industry standards.

The Asset Management System (AMS) is not fully developed and implemented
The AMS governance structure includes the Asset Management Policy, Administrative Standard,
Investment Planning Manual and this Project Management Manual. These governance
documents are at various stage of development and not all the documents including procedures
and templates have been finalized.
As you read the manual, you will notice some sections that are noted as “Future development or
under-development”. These elements will be incorporated and made available as finalized.

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Document Quality Information

Document
Revisions Date Released Released By
Revision No.

Draft v1.0 September 3, 2013 CH2MHILL

Draft v2.0 Revisions based on City review of V1.0 April 22, 2014 CH2MHILL
February 13, 2014

v3.0 Revisions based on City review of V2.0 February 2, 2015 J. Ruby

September 30, 2014

v4.0 Revisions based on numerous Audit June 26, 2019 J. Frizado

recommendations; Project Management
“How-To” Training feedback, and changes
within the organization since last revision.

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Contents
1 Introduction ......................................................................................................................1-1
1.1 Background ................................................................................................................................ 1-1
1.2 Purpose of the Project Management Manual ............................................................................ 1-1
1.3 Using the Project Management Manual .................................................................................... 1-3
1.4 Structure of the Project Management Manual ........................................................................... 1-4
1.5 Program or a Project? ................................................................................................................ 1-6
1.5.1 Assessing Project’s Level of Risk................................................................................... 1-7
1.5.2 Assessing Project’s Size ................................................................................................ 1-8
1.6 Relationship among Project, Program and Portfolio Management ........................................... 1-9
1.7 Other Key Disciplines Integrated within Project Management ................................................ 1-11
1.8 Integration with the Asset Management System ..................................................................... 1-11
1.9 Organizational Change Management ...................................................................................... 1-14
1.10 Public Engagement .................................................................................................................. 1-15
1.10.1 Is Public Engagement Required? ................................................................................. 1-15
2 Project Management Governance ...................................................................................2-1
2.1 Policies ....................................................................................................................................... 2-2
2.1.1 FI-011 Asset Management Policy .................................................................................. 2-2
2.1.2 FI-003 Materials Management Policy ............................................................................. 2-2
2.2 Administrative Standards ........................................................................................................... 2-2
2.2.1 FM-004 Asset Management Administrative Standard.................................................... 2-2
2.2.2 FM-002 Materials Management Administrative Standard .............................................. 2-3
2.3 Organizational Governance ....................................................................................................... 2-4
3 Project Delivery Framework ............................................................................................3-1
3.1 Project Delivery Processes ........................................................................................................ 3-1
3.2 “Go/No-Go” Decision Points ...................................................................................................... 3-4
3.3 Part 1: Definition – Feasibility .................................................................................................... 3-5
3.4 Part 2: Development – Preliminary Design ................................................................................ 3-6
3.5 Part 3: Implementation – Detailed Design ................................................................................. 3-8
3.6 Part 3: Implementation – Procurement ...................................................................................... 3-9
3.7 Part 3: Implementation – Construction .................................................................................... 3-10
3.8 Project Delivery Framework ..................................................................................................... 3-12
3.9 Project Delivery Framework Integration................................................................................... 3-13
3.10 Project Management Themes .................................................................................................. 3-15
4 Initiating Process Group ..................................................................................................4-1
4.1 Acquire Project or Phase Approval ............................................................................................ 4-1
4.1.1 How to Acquire Phase Gate Approval ............................................................................ 4-1
4.2 Identify Project Sponsor, Project Manager, and Other Key Stakeholders................................ 4-2
4.2.1 Assign Project Sponsor .................................................................................................. 4-2
4.2.1.1 How to Select and Assign a Project Sponsor .................................................. 4-2
4.2.2 Assign Project Manager ................................................................................................. 4-2
4.2.2.1 How to Select and Assign a Project Manager ................................................. 4-3
4.2.3 Assign Business Owner ................................................................................................. 4-3
4.3 Determine Committee Requirements ........................................................................................ 4-4
4.3.1 How to Establish the Major Capital Project Advisory Committee ................................... 4-5
4.3.2 How to Establish a Project Advisory Committee ............................................................ 4-5
4.4 Stakeholder Assessment ........................................................................................................... 4-6
4.4.1 How to Perform a Stakeholder Assessment .................................................................. 4-6
4.4.2 Update the Stakeholder Assessment ............................................................................. 4-6
4.5 Project Charter ........................................................................................................................... 4-7
4.5.1 How to Develop the Project Charter ............................................................................... 4-7
4.5.2 Endorse the Project Charter ........................................................................................... 4-7
4.6 Starting a New Phase of the Project .......................................................................................... 4-8
5 Planning Process Group..................................................................................................5-1

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5.1 Develop Project Delivery Plan ................................................................................................... 5-1

5.1.1 Project Delivery Approach .............................................................................................. 5-2
5.1.2 Project Delivery Plan and Project Execution Plan Relationship ..................................... 5-2
5.1.3 How to Prepare a Project Delivery Plan ......................................................................... 5-2
5.2 Plan Scope Management .......................................................................................................... 5-3
5.2.1 Plan Requirements Management (future to be developed) ........................................... 5-3
5.2.2 Define Scope .................................................................................................................. 5-3
5.2.2.1 How to Develop a Scope Statement ................................................................ 5-3
5.2.3 Plan Work ....................................................................................................................... 5-4
5.2.4 Work Breakdown Structure ............................................................................................ 5-5
5.2.4.1 Levels of a Work Breakdown Structure ........................................................... 5-7
5.2.4.2 Rolling Wave Planning Technique ................................................................... 5-8
5.2.4.3 How to Create a Work Breakdown Structure................................................... 5-8
5.2.4.4 How to Select Delivery Sub-phases .............................................................. 5-10
5.2.5 Develop a Work Breakdown Structure Dictionary ........................................................ 5-11
5.2.5.1 How to Develop a WBS Dictionary ................................................................ 5-11
5.3 Plan Schedule Management.................................................................................................... 5-11
5.3.1 GANTT Chart Schedule ............................................................................................... 5-12
5.3.1.1 How to Develop a Gantt Chart Schedule ....................................................... 5-12
5.4 Plan Cost Management ........................................................................................................... 5-13
5.4.1 Estimate Costs ............................................................................................................. 5-13
5.4.1.1 How to Classify Costs .................................................................................... 5-13
5.4.1.2 How to Estimate Costs .................................................................................. 5-15
5.4.1.3 Project Management Costs ........................................................................... 5-16
5.4.1.4 Land Acquisition and Expropriation Costs ..................................................... 5-16
5.4.1.5 Consulting Service Fees ................................................................................ 5-16
5.4.1.6 Product Cost .................................................................................................. 5-17
5.4.1.7 Other Incidental Costs and Fees ................................................................... 5-17
5.4.1.8 Cost Escalation .............................................................................................. 5-17
5.4.1.9 Contingency Allowances ................................................................................ 5-17
5.4.1.10 How to Apply Contingency Allowances ......................................................... 5-19
5.4.1.10.1 Estimating Contingency ............................................................. 5-20
5.4.1.10.2 Capital Cost Allowance .............................................................. 5-20
5.4.1.10.3 Risk Reserve Contingency ......................................................... 5-21
5.4.1.10.4 Management Reserve ................................................................ 5-21
5.4.2 Determine Budget ........................................................................................................ 5-21
5.4.2.1 How to Determine Budget.............................................................................. 5-21
5.4.2.1.1 Operational Costs ...................................................................... 5-22
5.4.2.1.2 Administrative Charges .............................................................. 5-22
5.4.2.2 Estimates roll-up to the Deliverable level per the WBS ................................. 5-22
5.4.3 Basis of Estimate .......................................................................................................... 5-23
5.4.4 Cost Sharing Projects (to be developed) ..................................................................... 5-23
5.5 Plan Quality Management ....................................................................................................... 5-24
5.5.1 Develop a Quality Management Plan ........................................................................... 5-24
5.5.2 Plan Quality Assurance and Plan Quality Control ........................................................ 5-24
5.5.2.1 How to Plan Quality Assurance ..................................................................... 5-25
5.5.2.2 How to Plan Quality Control........................................................................... 5-26
5.5.2.3 How to Develop a Product Quality Control Plan ............................................ 5-26
5.5.2.4 Example of Project Quality Management Plan .............................................. 5-27
5.5.3 Plan Value Engineering ................................................................................................ 5-27
5.5.3.1 How to Plan Value Engineering ..................................................................... 5-27
5.6 Plan Procurement Management .............................................................................................. 5-29
5.6.1 Review Project Delivery Methods for Major Capital Projects ....................................... 5-29
5.6.1.1 Process for Review of Project Delivery Methods for Major Capital Projects . 5-30
5.6.2 Review the Design-Bid-Build Delivery Option .............................................................. 5-30
5.6.2.1 Consultant Selection ...................................................................................... 5-31
5.6.2.2 Contractor Selection ...................................................................................... 5-32

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5.6.2.3 Third-Party Contracts ..................................................................................... 5-32

5.6.3 How to Plan Procurement ............................................................................................ 5-33
5.7 Plan Resource Management ................................................................................................... 5-35
5.7.1 Develop an Project Delivery Organizational Structure ................................................. 5-35
5.7.2 Identify Resource Requirements .................................................................................. 5-36
5.7.3 Roles, Responsibilities, and Authority .......................................................................... 5-36
5.7.4 Define Duties and Obligations ...................................................................................... 5-40
5.7.5 Create a Project Team Organization Structure ............................................................ 5-42
5.7.6 How to Develop a Project Delivery Organization Chart ............................................... 5-42
5.7.7 How to Develop a Resource Matrix .............................................................................. 5-42
5.8 Plan Communication Management.......................................................................................... 5-43
5.8.1 Develop a Stakeholder Assessment ............................................................................ 5-43
5.8.2 Develop a Communications Plan ................................................................................. 5-44
5.8.2.1 How to Develop a Communications Plan ...................................................... 5-44
5.8.3 Official Openings or Ground-Breaking Ceremonies ..................................................... 5-45
5.8.4 Public Engagement ...................................................................................................... 5-46
5.8.4.1 Supplementary Considerations...................................................................... 5-49
5.8.4.2 City of Winnipeg Universal Design Policy...................................................... 5-49
5.8.4.3 Plain Language .............................................................................................. 5-49
5.8.4.4 Manitoba Freedom of Information and Protection of Privacy Act .................. 5-50
5.8.4.5 Public Engagement Framework .................................................................... 5-50
5.8.5 Define Standard Project Performance Reports ............................................................ 5-50
5.8.6 Major Capital Projects Quarterly Project Status Report ............................................... 5-51
5.8.7 Plan Records Management .......................................................................................... 5-52
5.8.7.1 Identify Record Types .................................................................................... 5-52
5.8.7.2 Record Changes in the Project Record Index ............................................... 5-53
5.9 Plan Risk Management ............................................................................................................ 5-53
5.9.1 Develop a Risk Management Plan ............................................................................... 5-54
5.9.1.1 How to Prepare a Risk Management Plan .................................................... 5-55
5.9.2 Identify Risks ................................................................................................................ 5-55
5.9.2.1 Systemic Risks .............................................................................................. 5-56
5.9.2.2 Project Specific Risks .................................................................................... 5-56
5.9.3 Risk Statements ........................................................................................................... 5-56
5.9.4 How to Create a Risk Analysis and Evaluation Register ............................................. 5-56
5.9.5 How to Perform a Qualitative Risk Assessment........................................................... 5-57
5.9.6 How to Perform a Quantitative Risk Assessment ........................................................ 5-59
5.9.6.1 Single-Point Estimate .................................................................................... 5-59
5.9.6.2 Three-Point Range Estimate ......................................................................... 5-60
5.9.6.3 Monte Carlo Simulation Estimate Method ..................................................... 5-61
5.9.7 Risk Response Plan ..................................................................................................... 5-62
5.9.7.1 How to Develop Risk Responses .................................................................. 5-62
5.10 Plan Integrated Change Control Management ........................................................................ 5-63
5.11 Plan Health, Safety, Security, and Environmental Management ............................................. 5-64
5.11.1 Workplace Safety and Health ....................................................................................... 5-64
5.11.2 Contractor Safety & Health Program Evaluations ........................................................ 5-64
5.11.3 Safe Work Plans ........................................................................................................... 5-65
5.11.4 Security… ..................................................................................................................... 5-65
5.11.5 Environment ................................................................................................................. 5-66
5.12 Plan Commissioning ................................................................................................................ 5-66
5.13 Plan Close-out ......................................................................................................................... 5-66
5.14 Update Project Delivery Plan ................................................................................................... 5-67
5.15 Plan Tangible Capital Asset Updates ...................................................................................... 5-67
6 Executing Process Group................................................................................................6-1
6.1 Acquire Project Team ................................................................................................................ 6-1
6.2 Develop Team Charter .............................................................................................................. 6-2
6.2.1 How to Develop a Team Charter .................................................................................... 6-2
6.2.2 How to Hold a Team Chartering Session ....................................................................... 6-3

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6.2.3 Endorse the Team Charter ............................................................................................. 6-3

6.2.4 Update the Team Charter ............................................................................................... 6-3
6.3 Manage Project Team ............................................................................................................... 6-3
6.3.1 How to Manage the Project Team .................................................................................. 6-4
6.4 Conduct Procurement ................................................................................................................ 6-4
6.4.1 Prepare Request for Proposal ........................................................................................ 6-4
6.4.1.1 How to Prepare a Request for Proposals ........................................................ 6-5
6.4.2 How to Make a Single Source Procurement .................................................................. 6-7
6.4.3 Evaluate Proposals and Award Contracts ...................................................................... 6-7
6.4.3.1 How to Evaluate Proposals and Make Awards................................................ 6-7
6.4.4 Prepare Bid Opportunities .............................................................................................. 6-8
6.4.4.1 Forms and Documents Used in the Bidding Process ...................................... 6-8
6.4.4.2 How to Select the Type of Pricing for a Bid Opportunity ................................. 6-9
6.4.4.2.1 Lump Sum Contracts ................................................................... 6-9
6.4.4.2.2 Unit Price Contracts ................................................................... 6-10
6.4.4.3 How to Prepare Bid Opportunities ................................................................. 6-11
6.4.5 Cardinal Rules for Bid Opportunity Preparation ........................................................... 6-11
6.4.6 How to Specify Insurance ............................................................................................. 6-14
6.4.7 Liability Insurance Policies in Construction .................................................................. 6-15
6.4.7.1 Comprehensive or Commercial General Liability Policies (‘CGL Policies’) ... 6-15
6.4.7.2 Automobile Liability Policies .......................................................................... 6-15
6.4.7.3 Professional Liability Insurance Policies (Errors and Omissions) ................. 6-15
6.4.7.4 Wrap-Up Policies ........................................................................................... 6-15
6.4.8 Property Insurance Policies in Construction ................................................................ 6-16
6.4.8.1 Course of Construction Insurance Policies (also known as Builders Risk
Insurance Policies) ........................................................................................ 6-16
6.4.8.2 Installation Floater Insurance Policies ........................................................... 6-16
6.4.8.3 Contractor’s Equipment Insurance Policies ................................................... 6-16
6.4.9 How to Specify Bid and Contract Security ................................................................... 6-17
6.4.10 How to Specify Liquidated Damages ........................................................................... 6-17
6.4.10.1 Determination of Liquidated Damages Amount ............................................. 6-18
6.4.11 How to Specify Training ............................................................................................... 6-18
6.4.13 How to Solicit and Receive Bids ................................................................................... 6-19
6.4.14 The Bid Solicitation Process......................................................................................... 6-21
6.4.14.1 Bid Opportunity Enquiries .............................................................................. 6-22
6.4.14.2 Addendum Issuance ...................................................................................... 6-22
6.4.14.3 Bid Opportunity Opening ............................................................................... 6-22
6.4.14.4 Bid Opportunity Submission Document Disposition ...................................... 6-22
6.4.14.5 How to Determine Whether a Bid is Responsive........................................... 6-22
6.4.14.6 How to Determine Whether a Bidder is Responsible .................................... 6-23
6.4.15 Evaluate Bids and Award Contracts ............................................................................. 6-24
6.4.15.1 How to Evaluate Bids and Recommend Award ............................................. 6-24
6.4.15.2 Bid Mistakes................................................................................................... 6-25
6.4.15.3 Procedure to Follow When Bidder Advises of Bid Mistake ........................... 6-25
6.4.15.4 Withdrawal of Bids prior to the Award of Contract ......................................... 6-26
6.4.15.5 Contract Administrator’s Recommendation of Award .................................... 6-26
6.4.15.6 Pre-Award Meeting with Lowest Evaluated Responsive Bidder.................... 6-26
6.4.16 Contract Administrator’s Final Recommendation of Award ......................................... 6-27
6.4.16.1 How to Award Contracts ................................................................................ 6-27
6.4.16.2 Prepare the Award Report ............................................................................. 6-29
6.4.16.2.1 History/Discussion ...................................................................... 6-29
6.4.16.2.2 Legal Services, Materials Management, and Controller Approvals
……………………………………………………………………….6-29
6.4.17 Award Process ............................................................................................................. 6-30
6.4.17.1 How to Form a Contract................................................................................. 6-30
6.5 Direct and Manage Work ......................................................................................................... 6-32
6.5.1 Manage the Project Delivery Plan ................................................................................ 6-32

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6.5.2 Manage Design-Bid-Build Projects............................................................................... 6-33

6.5.2.1 How to Manage Consultants.......................................................................... 6-35
6.5.3 Manage Design-Bid-Build Construction Contract......................................................... 6-36
6.5.3.1 How to perform Contract Administration ........................................................ 6-37
6.5.4 Manage In-House Projects ........................................................................................... 6-37
6.5.5 Design Management .................................................................................................... 6-37
6.6 Manage Quality ........................................................................................................................ 6-38
6.6.1 Perform Quality Control ................................................................................................ 6-38
6.6.2 Perform Quality Assurance .......................................................................................... 6-39
6.7 Manage Communications ........................................................................................................ 6-39
6.7.1 Distribute Information ................................................................................................... 6-39
6.7.2 How to Manage Consultant Communications .............................................................. 6-40
6.7.3 Manage Stakeholder Expectations............................................................................... 6-42
7 Monitoring and Controlling Process Group ...................................................................7-1
7.1 Monitor and Control ................................................................................................................... 7-2
7.1.1 Monitor and Control Scope ............................................................................................. 7-3
7.1.1.1 How to Verify Scope ........................................................................................ 7-4
7.1.2 Monitor and Control Costs .............................................................................................. 7-4
7.1.2.1 How to Perform EVM Calculations .................................................................. 7-6
7.1.2.2 When to Prepare a Recovery Plan .................................................................. 7-7
7.1.3 Monitor and Control Schedule ........................................................................................ 7-7
7.1.4 Monitor and Control Quality............................................................................................ 7-8
7.2 Perform Integrated Change Control Process ............................................................................ 7-8
7.2.1 Change Classification Codes ....................................................................................... 7-10
7.2.2 How to Perform Integrated Change Control ................................................................. 7-10
7.2.2.1 Change Control Process – Program/Project Level ........................................ 7-10
7.2.2.1.1 Identification Stage ..................................................................... 7-10
7.2.2.1.2 Evaluation Stage ........................................................................ 7-10
7.2.2.1.3 Approval Stage ........................................................................... 7-11
7.2.2.1.4 Implementation Stage ................................................................ 7-12
7.2.2.2 Change Control Process—Contract Level ..................................................... 7-12
7.2.2.2.1 Identification Stage ..................................................................... 7-12
7.2.2.2.2 Evaluation Stage ........................................................................ 7-13
7.2.2.2.3 Approval and Implementation Stage .......................................... 7-14
7.2.3 Contract and Program/Project Level Change Examples ............................................. 7-18
7.2.3.1 Example 1: Change to project initiated by City, no Contracts affected. ........ 7-18
7.2.3.2 Example 2: Change to project initiated during performance of a Contract .... 7-18
7.2.3.3 Example 3: Cost saving credit on deleted Contract work .............................. 7-19
7.3 Manage Contingencies ............................................................................................................ 7-20
7.3.1 How to Manage Contingencies .................................................................................... 7-20
7.3.2 Contract Over-Expenditure Procedures ....................................................................... 7-22
7.3.3 Funding Over-Expenditures ......................................................................................... 7-24
7.4 Manage Risks .......................................................................................................................... 7-24
7.5 Report Performance................................................................................................................. 7-24
8 Closing Process Group ...................................................................................................8-1
8.1 Update Business Case .............................................................................................................. 8-1
8.1.1 How to Update the Business Case................................................................................. 8-2
8.2 Close Project Phase .................................................................................................................. 8-2
8.2.1 How to Close Project Phase........................................................................................... 8-2
8.2.2 How to Terminate a Project ............................................................................................ 8-3
8.3 Commission and Transfer .......................................................................................................... 8-3
8.4 Review Consultant Performance ............................................................................................... 8-4
8.4.1 How to Complete a Consultant Standard Performance Review .................................... 8-4
8.5 Close Project.............................................................................................................................. 8-5
8.5.1 How to Close the Project ................................................................................................ 8-5
8.6 Conduct Lessons Learned ......................................................................................................... 8-6

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8.6.1 How to Prepare Lessons Learned .................................................................................. 8-6

8.7 Celebrate Project Success ........................................................................................................ 8-6
9 Contract Administration ..................................................................................................9-1
9.1 Records and Reporting .............................................................................................................. 9-2
9.1.1 Records.. ........................................................................................................................ 9-2
9.1.1.1 Contract Records ............................................................................................. 9-2
9.1.2 Reporting ........................................................................................................................ 9-3
9.1.2.1 Monthly Construction Status Reports .............................................................. 9-4
9.1.2.2 Contract Reports .............................................................................................. 9-5
9.1.2.2.1 Cost Control Reports .................................................................... 9-5
9.1.2.2.2 Quality of Work Reports ............................................................... 9-5
9.1.2.2.3 Progress and Level of Effort Reports ........................................... 9-6
9.2 Meetings .................................................................................................................................... 9-6
9.2.1 Minutes of Meetings ....................................................................................................... 9-6
9.2.2 Pre-Award Meeting ......................................................................................................... 9-7
9.2.3 Pre-Construction Meeting ............................................................................................... 9-8
9.2.4 Site Meetings ................................................................................................................ 9-12
9.3 Contractor Submittals .............................................................................................................. 9-14
9.3.1 Shop Drawings and Product Data ................................................................................ 9-14
9.3.2 Samples........................................................................................................................ 9-15
9.3.3 Operations and Maintenance Manuals ........................................................................ 9-15
9.3.4 Training Materials ......................................................................................................... 9-15
9.3.5 Spare Parts ................................................................................................................... 9-15
9.4 Health, Safety, Security and Environment ............................................................................... 9-16
9.4.1 Health and Safety ......................................................................................................... 9-16
9.4.2 Site Health and Safety Orientation ............................................................................... 9-16
9.4.3 Hazard Communication ................................................................................................ 9-16
9.4.4 Monitoring Contractor Safety........................................................................................ 9-16
9.4.5 Responding to Safety Concerns and Follow-up ........................................................... 9-17
9.4.6 Health and Safety Reporting ........................................................................................ 9-17
9.4.7 Investigations................................................................................................................ 9-17
9.4.8 Security.. ....................................................................................................................... 9-17
9.4.8.1 Visitors...........................................................................................................9-17
9.4.8.2 Plant Access .................................................................................................. 9-18
9.4.8.3 Criminal Record Search................................................................................. 9-18
9.4.9 Permitting ..................................................................................................................... 9-18
9.4.10 Environmental............................................................................................................... 9-18
9.5 Schedule of Work..................................................................................................................... 9-19
9.5.1 Revisions to the Schedule ............................................................................................ 9-19
9.5.2 Delays in Completing Work .......................................................................................... 9-20
9.6 Owner Supplied Equipment ..................................................................................................... 9-20
9.6.1 Vendor Submittals ........................................................................................................ 9-20
9.6.2 Factory Acceptance Testing ......................................................................................... 9-21
9.6.3 Delivery and Receipt of Goods..................................................................................... 9-21
9.6.4 Installation .................................................................................................................... 9-21
9.6.5 Pre-Commissioning ...................................................................................................... 9-21
9.6.6 Commissioning ............................................................................................................. 9-21
9.7 Construction Inspection and Testing ....................................................................................... 9-22
9.7.1 Inspection and Test Plans ............................................................................................ 9-22
9.7.2 Inspection ..................................................................................................................... 9-23
9.7.3 Preconstruction Inspections ......................................................................................... 9-23
9.7.4 Testing… ...................................................................................................................... 9-24
9.7.5 Defects… ...................................................................................................................... 9-24
9.8 Progress Monitoring and Control ............................................................................................. 9-25
9.8.1 Daily Construction Reports (DCR) ............................................................................... 9-25
9.8.2 Request for Information (RFI)....................................................................................... 9-25
9.8.3 Contract Changes ........................................................................................................ 9-25

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9.8.4 Change Order (CO) ...................................................................................................... 9-26

9.8.4.1 Change Work Order (CWO) .......................................................................... 9-26
9.8.4.2 Change in Scope of Services (CSS) ............................................................. 9-26
9.8.5 Field Instructions (FI) .................................................................................................... 9-27
9.8.6 Cost Control.................................................................................................................. 9-27
9.8.7 Over-Expenditure Analysis ........................................................................................... 9-27
9.8.8 Contractual Disputes .................................................................................................... 9-27
9.8.9 Claims Resulting From Extra Work or Diminution of Work (Non Insurance Related) . 9-28
9.9 Claims and Damages (Contractual – Non Insurance Related) ............................................... 9-29
9.9.1 Claims… ....................................................................................................................... 9-29
9.9.2 Damages ...................................................................................................................... 9-29
9.9.3 Delay Damages ............................................................................................................ 9-29
9.9.4 Default by Contractor during Construction ................................................................... 9-30
9.9.5 Default by Contractor during Warranty Period ............................................................. 9-31
9.10 Claims and Damages (Insurance Related) .............................................................................. 9-32
9.10.1 Third Party Bodily Injury or Property Damage Claims.................................................. 9-32
9.10.2 Third Party Claims Reporting Process Narrative ......................................................... 9-33
9.10.3 First Party Property Damage Claims ............................................................................ 9-34
9.10.4 First Party Claims Reporting Process .......................................................................... 9-34
9.11 Manage Contract Risks ........................................................................................................... 9-36
9.11.1 Managing Risk from an Insurance Perspective ............................................................ 9-36
9.11.2 Liability Insurance Policies ........................................................................................... 9-36
9.11.3 Professional Liability Insurance Policies (Errors and Omissions) ................................ 9-36
9.11.4 Construction Property Insurance Policies .................................................................... 9-37
9.11.5 Contractor’s Equipment and Automobile Insurance Policies ....................................... 9-37
9.11.6 How to Preserve the Claim against the Surety ............................................................ 9-37
9.11.7 Material Variation in the Terms of the Contract............................................................ 9-38
9.11.8 Laches… ...................................................................................................................... 9-38
9.11.9 Protecting the City’s Claim against the Surety ............................................................. 9-38
9.12 Liquidated Damages ................................................................................................................ 9-39
9.13 Start Up, Commissioning and Transfer.................................................................................... 9-39
9.14 Operation and Maintenance Manuals ...................................................................................... 9-39
9.15 Training .................................................................................................................................... 9-39
9.16 Operation between Substantial and Total Performance .......................................................... 9-40
9.17 As-built Drawings ..................................................................................................................... 9-40
9.17.1 As-built Drawings in Commissioning Plan .................................................................... 9-40
9.18 Final Construction Report ........................................................................................................ 9-41
9.19 Progress Payments.................................................................................................................. 9-41
9.20 Substantial Performance ......................................................................................................... 9-42
9.20.1 Builders’ Liens Act ........................................................................................................ 9-42
9.20.2 “Substantial Performance” on a Subcontract ............................................................... 9-43
9.20.3 Determining Substantial Performance ......................................................................... 9-43
9.20.4 Certificate of Substantial Performance ......................................................................... 9-44
9.21 Total Performance ................................................................................................................... 9-44
9.21.1 Certificate of Total Performance................................................................................... 9-44
9.22 Warranty .................................................................................................................................. 9-45
9.22.1 Warranty Defects .......................................................................................................... 9-45
9.23 Acceptance .............................................................................................................................. 9-46
9.23.1 Certificate of Acceptance ............................................................................................. 9-46

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Tables

Table 1-1. Project Level of Risk Definitions ......................................................................................... 1-7

Table 1-2. Project Size Categories ...................................................................................................... 1-8
Table 1-3. Project Scaling Decision Matrix – Project Level of Risk / Project Size .............................. 1-8
Table 2-1. List of the City’s Project Delivery Governance Documents................................................ 2-1
Table 3-1. Project Management Framework Themes ....................................................................... 3-15
Table 4-1. Summary Committee Requirements based on Project Size and Level of Risk ................. 4-4
Table 4-2. Guidelines for Committee Requirements ........................................................................... 4-5
Table 5-1. Work Breakdown Structure levels ...................................................................................... 5-7
Table 5-2. Example WBS Outline View for Deliver a Capital Project ................................................ 5-10
Table 5-3. WBS Dictionary example.................................................................................................. 5-11
Table 5-4. Types of Contingency Allowances ................................................................................... 5-18
Table 5-5. Comparison of Quality Assurance and Quality Control .................................................... 5-25
Table 5-6. Integration of Quality – Requirements, Assurance, and Control ...................................... 5-27
Table 5-7. Project Roles, Responsibilities, and Authority ................................................................. 5-37
Table 5-8. Duties and Obligations of the Project Team .................................................................... 5-40
Table 5-9. Example Resource Matrix ................................................................................................ 5-43
Table 5-10. Example Stakeholder Assessment ................................................................................ 5-44
Table 5-11. Example Communications Plan ..................................................................................... 5-45
Table 5-12. Spectrum of Public Participation .................................................................................... 5-47
Table 5-13. Public Engagement Framework ..................................................................................... 5-48
Table 5-14. Standard Project Performance Reports ........................................................................ 5-50
Table 5-15. Record Types ................................................................................................................. 5-52
Table 5-16. Examples of Systemic and Project-Specific Risks ......................................................... 5-55
Table 5-17. Example Risk Event Identification for Risk Analysis and Evaluation Register ............... 5-57
Table 5-18. Risk Probability Scale..................................................................................................... 5-57
Table 5-19. Risk Consequences (or Impact) Scale ........................................................................... 5-58
Table 5-20. Risk Severity Information integrated into the Risk Analysis and Evaluation Register .. 5-59
Table 5-21. Qualitative Risk Information integrated in the Risk Analysis and Evaluation Register .. 5-62
Table 5-22. High Level Risk Response Plans integrated in the Risk Analysis and Evaluation Register5-63
Table 6-1. Example Evaluation Criteria and their Weights from the Request for Proposal Template 6-6
Table 7-1. Example of an Earned Value Management (EVM) Calculation ......................................... 7-6
Table 7-2. Summary of Over-Expenditure Approval Levels .............................................................. 7-23
Table 9-1. Third Party Claims Reporting Process description .......................................................... 9-33
Table 9-2. First Party Claims Reporting Process (for City-owned property) description ................... 9-35

Figures

Figure 1-1. Standard PMM Project Phases and PMBOK Process Groups ......................................... 1-5
Figure 1-2. Capital Budget Authorization: Program or Project? .......................................................... 1-6
Figure 1-3. Portfolio, Program, and Project Disciplines..................................................................... 1-10
Figure 1-4. Product lifecycle vs. Project lifecycle .............................................................................. 1-12
Figure 1-5. City of Winnipeg Asset Management System ................................................................. 1-13
Figure 2-1. City of Winnipeg Corporate and Departmental Governance Framework ......................... 2-4
Figure 3-1. Major Capital Project Delivery Processes (Design-Bid-Build) .......................................... 3-3
Figure 3-2. Project Delivery Framework: Project Phases ................................................................. 3-12

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Figure 3-3. Project Delivery Framework Component Integration ...................................................... 3-14

Figure 4-1. Initiating Process Group .................................................................................................... 4-1
Figure 5-1. Planning Process Group ................................................................................................... 5-1
Figure 5-2. Task Components Integrated into the Project Management Approach ............................ 5-4
Figure 5-3. WBS Tree Structure organized by Project Phases ........................................................... 5-6
Figure 5-4. Example Microsoft Project Gantt Chart........................................................................... 5-12
Figure 5-5. Cost Estimate Classification System applied to Project Delivery Framework ................ 5-15
Figure 5-6. Application of Contingency Allowances through Project Phases ................................... 5-20
Figure 5-7. Design-Bid-Build (DBB) Contractual Relationships ........................................................ 5-31
Figure 5-8. Procurement: Decision Process for Procurement Planning............................................ 5-34
Figure 5-9. Project Delivery Generic Organization Chart .................................................................. 5-36
Figure 5-10. Example of a Qualitative Risk Matrix (Illustrating a Planned Risk Response).............. 5-58
Figure 5-11. Probability Distribution based on the Three-Point Estimate Method. ........................... 5-60
Figure 5-12. Three-Point Range Estimate with Project-Specific Risks ............................................. 5-61
Figure 6-1. Executing Process Group ................................................................................................. 6-1
Figure 6-2. Procurement: Bid Preparation, Bid Solicitation, Receipt of Bids Processes................... 6-20
Figure 6-3. Procurement: Contract Award Process........................................................................... 6-28
Figure 6-4. Procurement: Contract Commencement Process .......................................................... 6-31
Figure 7-1. Monitoring and Controlling Process Group ....................................................................... 7-1
Figure 7-2. Change Control Process Main Components .................................................................... 7-2
Figure 7-3. Example Earned Value Management (EVM) Report ........................................................ 7-5
Figure 7-4. Change Approval Hierarchy ............................................................................................ 7-11
Figure 7-5. Integrated Change Control - Program/Project Level Change Control Process Chart .... 7-15
Figure 7-6. Integrated Change Control - Contract Level Change Control Process ........................... 7-17
Figure 7-7. Example of an Earned Value Management (EVM) Report for a Project Contingency
Account .......................................................................................................................... 7-21
Figure 8-1. Closing Process Group ..................................................................................................... 8-1
Figure 9-1. Third Party Claims Reporting Process ............................................................................ 9-32
Figure 9-2. First Party Claims Reporting Process for City-owned property ...................................... 9-34

Appendices

Appendix A: Design-Bid-Build (DBB) Process Charts

Appendix B: Project Management Templates
Appendix C: Alternative Project Delivery Methodology Analysis
Appendix D: Organizational Change Management
Appendix E: Record Management
Appendix F: Claims Management Process
Appendix G: Gating Process
Appendix H: Glossary

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