CONTACTS 
0201 - Golden Gateway Tennis Center       415 433 2936
020101 - Mr. Wayne Brouhard; Manager

SUBJECTS
Marketing, Proposals
Golden Gateway Tennis Club Improvements

0404 -    ..
0405 - Summary/Objective
0406 -
040601 - Followed up work at ref SDS 4 line 28, and letter ref DIP 2 line
040602 - 30 to Wayne, with copy of discussion with John Barsky at City of SF,
040603 - ref SDS 3 line 47.
040604 -
040605 - Wayne feels the current project cannot afford Communication Metrics
040606 - support.  We discussed options for further consideration, including a
040607 - demonstration of SDS.  Welch offered GGTC a reduced rate and maximum
040608 - cost, to encourage evaluation of this new service.  Wayne expects a
040609 - future project may be more amenable to using communication metrics.
040610 -
040611 -
040612 -
0407 -
0408 -
0409 - Discussion
0410 -
041001 - Project Scope
041002 -
041003 - Wayne said the current tennis club improvements entail two contracts.
041004 - One contract expands the main club house and upgrades the interior
041005 - finishes on the pool locker room.  The latter has some finish work to
041006 - give the exterior walls a new look.  The pool and deck will be done
041007 - under a separate contract.  Coordination is needed between the work
041008 - on the exterior locker room walls and the new pool deck.
041009 -
041010 -
041011 -
041012 - Budget and Schedule
041013 -
041014 - The two contracts together are approximately $500K in outlay, includ-
041015 - ing design, permitting and management.  All work is scheduled to be
041016 - complete in approximately 90 days, excluding adverse weather impacts.
041017 - Work on the clubhouse and locker room are less affected by weather.
041018 - There is about $3K remaining in the budget for contingencies. Much of
041019 - the contingency was applied prior to start of construction for design
041020 - modifications arising from the permit process.
041021 -
041022 -      Comment
041023 -
041024 -      Typically "communication metrics" avoids and minimizes extra
041025 -      cost from permitting.  New and obtuse scope requirements can be
041026 -      assuaged in the design and in negotiations with the contractor
041027 -      to achieve owner objectives with minimal or even reduced cost
041028 -      impact.
041029 -
041030 -      A minimum 10% budget contingency is needed at the start of
041031 -      construction, since work that entails below grade construction,
041032 -      as here, will likely encounter unknown conditions.  Since the
041033 -      contract amount is relatively small compared to the daily
041034 -      expenditure on a 90 day contract, the combination of adverse
041035 -      weather and latent condition contingencies, presents a high
041036 -      likelihood of extra expense solely for delay.
041037 -
041038 -
041039 -
041040 - Cost for Welch PM Support
041041 -
041042 - Wayne asked how much it would cost for the Club to have Welch provide
041043 - communication metrics?
041044 -
041045 -     The notes attached to the Welch letter submitted to Wayne on Mar
041046 -     15, show my regular rate is $75 per hour, see ref SDS 3 line 500.
041047 -     For this project I would be willing to reduce this to $40 per
041048 -     hour as a marketing premium.  Since the project is co-located
041049 -     with my office, there would no charge for a computer, telephone,
041050 -     etc.
041051 -
041052 -     Additionally, I would be willing to cap the total expenditure at
041053 -     $5K through the period of substantial completion, in order to
041054 -     allow the Club to evaluate the benefit of this new project man-
041055 -     agement service at minimal risk.
041056 -
041057 -
041058 -
041059 - Communication Metrics Implementation
041060 -
041061 - Wayne asked what Welch would do that is not now being done already
041062 - that would add value to the management process to insure success of
041063 - the project?
041064 -
041065 -     Initially the project plans and specs must be reviewed in
041066 -     relation to the contracts for the work; a CPM schedule has to be
041067 -     prepared, including budget review.  Cost and schedule should be
041068 -     integrated.  An SDS subject index is prepared to organize project
041069 -     information flow, and manage communications.
041070 -
041071 -     Communication metrics is explained in the materials submitted to
041072 -     Wayne in the Welch letter of Mar 15.  See for example lines:
041073 -
041074 -          041046 - covering use of SDS, ref SDS 3 line 107 to organ-
041075 -                   ize and integrate understandings from meetings,
041076 -                   calls, and documentation.  Welch would review all
041077 -                   formal correspondence, and can prepare same on
041078 -                   behalf of GGTC.
041079 -
041080 -          041122 - insure consistent application of the contract,
041081 -                   adherence to owner objectives and protect owner's
041082 -                   interests, ref SDS 3 line 183.
041083 -
041084 -     In sum, managing contracts and construction is complex because of
041085 -     the number of players, competing interests and regulations
041086 -     impacting performance.  The chance of mis-communication is high
041087 -     owing to this complexity.  Welch is a General Contractor and
041088 -     invented the SDS software program to automate and integrate the
041089 -     management process.  This combination of expertise gives good
041090 -     results.
041091 -
041092 -
041093 - Wayne asked if it would be necessary for Welch to attend every
041094 - meeting.
041095 -
041096 -     I suggested that progress meetings should occur in advance of
041097 -     every pay estimate.  Since on this job payments are being made
041098 -     twice a month, there should be a dedicated meeting with key
041099 -     players to discuss progress twice a month.
041100 -
041101 -     We should spend half an hour or so each day inspecting the work
041102 -     to anticipate problems and assist the contractor in avoiding
041103 -     expensive solutions.  Writing the record of daily progress and
041104 -     understandings is a key aspect of protecting GGTC interests,
041105 -     within the meaning of communication metrics.
041106 -
041107 -
041108 -
041109 - GGTC Defers use of Communication Metrics
041110 -
041111 - Wayne indicated there are three reasons for not using Welch on the
041112 - current project:
041113 -
041114 -     1.  There is no budget, because there is only $3K remaining in
041115 -         the contingency funds.
041116 -
041117 -     2.  The Club has done successful projects in the past without
041118 -         using communication metrics.
041119 -
041120 -     3.  Relations with the contractor, design and other stakeholders
041121 -         have been established and so should not be disrupted by
041122 -         introducing a new team player.
041123 -
041124 - I explained that most of the time thin budgets require greater atten-
041125 - tion to good management in order avoid errors that lead to costly
041126 - over-runs. Communication metrics is a pro-active methodology of
041127 - discovering misunderstandings before funds are expended that lead to
041128 - costly conflicts and losses.
041129 -
041130 - PG&E has done thousands of projects prior to using Welch to apply SDS
041131 - on several recent projects.  PG&E reported on Dec 30, 1994, that SDS
041132 - improved management more than any other measure they had tried in the
041133 - past 30 years, ref DRP 1 line 25.  This finding reflects a changing
041134 - market place.  The flow of information is increasing with more
041135 - regulations and faster tools (e.g. fax, cellular phones).  This new
041136 - and emerging environment places a premium on better communications.
041137 - Communication does not, however, take place in meetings phone calls
041138 - and documentation.  These methods convey information.  Communication
041139 - metrics sets out the connections that occur in the mind, to insure
041140 - common understandings.  It requires a tool like SDS and a skilled
041141 - practitioner like Welch to implement.  GGTC has an opportunity to
041142 - evaluate this theory, to see if its own management can benefit in the
041143 - way PG&E and others have.
041144 -
041145 - Relations on projects are critical to success.  Key to good working
041146 - relations are effective communications.  Welch is an expert in this
041147 - field.  Generally it is less costly to impact existing relations
041148 - early in a project than to allow misunderstandings to go undetected
041149 - until budgets are suddenly at risk, and there are no options but to
041150 - pay more, or fight.  Communication metrics discovers impending errors
041151 - before resources are expended.  This improves business relations.
041152 -
041153 -     CPM Schedule
041154 -
041155 -     A simple way to introduce Welch at this time would be to say he
041156 -     is preparing a CPM to show the GGTC the overall project.  This
041157 -     provides a basis for Welch to discuss the Bar Chart schedules
041158 -     which evidently have been submitted by the contractors.  What
041159 -     actually transpires is that the contractors and the design
041160 -     professionals are given the opportunity to think through more
041161 -     carefully the tasks and resources required to perform the work.
041162 -
041163 -
041164 -
041165 -
0412 -

SUBJECTS
Tape Recordings Inefficient Take a Lot of Time Expensive
Tape Feared by Those Who Complain SDS Inaccurate
Tape Recordings Can be Altered Transcribed Incorrectly
Shared Meaning Duty of Leadership
Tape Recording Less Useful than SDS, No Metrics, Meaning, Cannot Find

1208 -
120801 -  ..
120802 - Tape Recordings
120803 -
120804 - Wayne said the Club has not previously used anyone to support its
120805 - project management.  He asked why meetings cannot simply be tape
120806 - recorded to accomplish better management?
120807 -
120808 - We reviewed AAA policy to avoid tape recordings because they have
120809 - been shown to be easily altered.
120810 -
120811 -     I explained the purpose of communication metrics is to ensure
120812 -     understanding that occurs in the mind.  Usually this is broader
120813 -     than what is actually said as captured in a tape recording.  This
120814 -     means setting out the correlation between what is said today, and
120815 -     what has been previously committed to, and to contract provi-
120816 -     sions, schedule and budget targets.
120817 -
120818 -     There is no harm in tape recording dialog, though some team
120819 -     members object or are less than forthcoming.  A Perry Mason pall
120820 -     permeates discussion.  Tape recordings become just another piece
120821 -     of information buried in the project record along with other
120822 -     documents that are not consulted because they cannot be accessed
120823 -     in time to support decision making.
120824 -
120825 -     This record is an example of how a typical meeting is presented
120826 -     after the fact to forge common understanding, and to insure
120827 -     consistency with prior understandings, commitments and documenta-
120828 -     tion.  The information is organized in a way that it is instantly
120829 -     available for effective decision support.  SDS makes "cause and
120830 -     effect" instantly available.  A tape recording cannot do this.
120831 -
120832 -     Communication metrics means rolling over perceived understandings
120833 -     into scheduled controllable action items, and to follow up with
120834 -     effected team members so everyone stays on course.  A tape
120835 -     recoding cannot do this.  Communication metrics requires doing
120836 -     the hard work to discover what we think about what was said, and
120837 -     what it means relative to our objectives.  Tape recordings cannot
120838 -     do this.
120839 -
120840 -
120841 -
120842 - Future Opportunities
120843 -
120844 - Wayne said the Club may have a larger project in the future where
120845 - communication metrics can be better applied.
120846 -
120847 - I encouraged consideration of making a modest investment to evaluate
120848 - the prospects for such application.
120849 -
120850 -
120851 -
120852 - Follow Up
120853 -
120854 - Wayne said Club management has someone who provides project
120855 - management support. Perhaps a meeting would be helpful to demonstrate
120856 - SDS is applied to perform communication metrics, that is different
120857 - from using conventional computer and manual tools.
120858 -
120859 -
120860 -
120861 -
1209 -