Project Management Plans

This collection of information is required to obtain or retain benefits 23 U.S.C. 106(h)(2), and will be used to prepare financial and project management
plans for major projects. Public reporting burden is estimated to average 40 hour per response, including the time for reviewing instructions searching
existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Please note that an agency
may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control
number. The OMB control number for this collection is 2125-XXXX. Send comments regarding this burden estimate or any other aspect of this
collection of information, including suggestions for reducing this burden to: Michael Howell, Information Collection Clearance Officer, Federal
Highway Administration, Michael.howell@dot.gov , 1200 New Jersey Avenue, SE, Washington, DC 20590.

PROJECT MANAGEMENT PLAN GUIDANCE
BACKGROUND
On August 10, 2005, the President signed into law the new surface transportation act, the
"Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users"
(SAFETEA-LU) (Pub.L. 109-59, 119 Stat. 1144). The requirement for the Project
Management Plan and an Annual Financial Plan are contained in section 1904(a) of
SAFETEA-LU. This provision amends 23 U.S.C. 106(h), as follows:
"(h) MAJOR PROJECTS."(1) IN GENERAL.-Notwithstanding any other provision of this section, a recipient of
Federal financial assistance for a project under this title with an estimated total cost of
$500,000,000 or more, and recipients for such other projects as may be identified by the
Secretary, shall submit to the Secretary for each project"(A) a project management plan; and
"(B) an annual financial plan.
"(2) PROJECT MANAGEMENT PLAN.-A project management plan shall document"(A) the procedures and processes that are in effect to provide timely information to the
project decision makers to effectively manage the scope, costs, schedules, and quality of,
and the Federal requirements applicable to, the project; and
"(B) the role of the agency leadership and management team in the delivery of the
project.
"(3) FINANCIAL PLAN.-A financial plan shall"(A) be based on detailed estimates of the cost to complete the project; and
"(B) provide for the annual submission of updates to the Secretary that are based on
reasonable assumptions, as determined by the Secretary, of future increases in the cost to
complete the project...."
This Project Management Plan guidance is to assist the recipient of Federal financial
assistance in the preparation of a Project Management Plan to meet the requirements of
SAFETEA-LU. The intent of this guidance is not to require a prescriptive format for the
Project Management Plan; but rather to provide a general framework in which
modifications can be made in order to produce a Project Management Plan that will most
effectively serve the State Transportation Agency (STA), the FHWA, and other
sponsoring agencies throughout the project continuum.

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GENERAL
Major projects are monitored from planning to operations. The Project Management Plan
will help the management team maintain a constant focus towards delivering the major
project in accordance with the customers’ needs, wants, and expectations. The
customers’ desired outcomes are defined through the project objectives and goals. Major
projects must be delivered in a manner that captures the public’s trust and confidence in
the State and Federal transportation agencies’ ability to effectively and efficiently deliver
a quality product. The public must perceive that the finished product was a wise
investment of the very substantial amount of public resources. In order to insure major
project success, it is imperative that good project management principles are used
beginning early in the planning stage of a project. As the major project becomes more
defined, the Project Management Plan will become the tool by which the project will be
effectively managed.
For most projects, the recipient of Federal financial assistance will be a State
Transportation Agency (STA). Therefore, the STA will prepare the Project Management
Plan. For some Public Private Partnership projects, there may be no Federal financial
assistance provided to a STA but the private entity delivering the project may secure a
Transportation Infrastructure Finance and Innovation Act (TIFIA) loan. TIFIA loans are
considered Federal financial assistance and Project Management Plans are required for
these projects, too. For these projects, the private entity receiving funds from a TIFIA
loan will prepare the Project Management Plan. This will only happen when the STA
does not receive any Federal financial assistance. If the STA receives any amount of
Federal financial assistance, then the STA will be responsible for submitting the Project
Management Plan. This guidance will constantly refer to a STA; however, for Public
Private Partnership projects receiving only TIFIA loans as Federal financial assistance,
the term STA refers to the private entity receiving the TIFIA loan.
A draft Project Management Plan must be submitted to the FHWA for review prior to
approval of the NEPA decision document. The FHWA will provide comments and the
STA must submit a Project Management Plan for approval within 90 days of the date of
the signed NEPA decision document.
For the first Project Management Plan, the FHWA Major Projects Team must provide
concurrence prior to the FHWA Division Office approval. After that, either the Division
or Headquarters Offices may request FHWA Headquarters review and concurrence prior
to the Division’s approval of subsequent Project Management Plan revisions. The
Project Management Plan is to be a living document in which revisions will be issued as
the project progresses in order to add, modify, or delete provisions that will result in the
most effectively managed project. At a minimum, the Project Management Plan should
be revised and approved prior to authorization of federal-aid funds for right of way
acquisition and prior to authorization of federal-aid funds for construction.
In the case of major projects funded jointly by FHWA and another modal agency such as
the Federal Transit Administration (FTA), it is expected that the STA will submit a single
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Project Management Plan meeting the requirements of both agencies. The timing of the
submission will also need to be coordinated, as FTA or other modal agency may have
different submission requirements.

PURPOSE
The Project Management Plan is the guide for implementing the major project and
documents assumptions and decisions regarding communication, management processes,
execution and overall project control. The ultimate purpose of the Project Management
Plan is to clearly define the roles, responsibilities, procedures and processes that will
result in the major project being managed such that it is completed:
 On-time,
 Within budget,
 With the highest degree of quality,
 In a safe manner for both the individuals working on the project and for the
traveling public, and
 In a manner in which the public trust, support, and confidence in the project will
be maintained.
The Project Management Plan addresses all phases of the major project life cycle, and
ensures that the project will be managed holistically and as a continuum, not
incrementally as the project progresses. It is essential that the Project Management Plan
establish the metrics by which the success of the project is defined. It is expected that all
sponsoring agencies will endorse the Project Management Plan.

TOPICS
The following topics form the basic contents for the Project Management Plan. Again,
the intent of the following sections is not to require a prescriptive format for the plan; but
rather to provide a general framework in which modifications can be made in order to
produce a Project Management Plan that will most effectively serve the STA, the FHWA,
and other sponsoring agencies throughout the project continuum. References to existing
STA documented processes may be used in the Project Management Plan.
1. Project Descriptions and Scope of Work. The complete description of the project
and the overall program, along with the history of its development and important
decisions should be documented in the Project Management Plan. A clearly defined
project scope should be included. This scope statement should include all the
requirements to be executed, verified and delivered. A clearly defined scope of work will
document which items of work have been dedicated in the baseline cost budget. This will
assist in controlling and minimizing future potential scope increases.
The Project Management Plan should clearly define the project scope of work, including
construction, environmental work, utilities, and right-of-way. A map of the defined
project can be included for added clarity.

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2. Goals and Objectives. The goals and objectives of the overall project should be
documented in the Project Management Plan. The degree to how the requirements and
commitments of the major project will be fulfilled should also be included in this section.
For example, one commitment may be to complete a project within a certain budget. The
extent of how this commitment will be met is a quality measure. Completing the project
at 10% under budget would be a possible outcome and would compare favorably to
completing the project at 1% under budget. This could be one measure of quality for the
project and must be used with other measurements. Quality measurements should cover
schedule, budget (including cost containment), quality, safety, scope control, public trust
and confidence, and federal requirements.
The quality of the project requirements should be stated upfront, such that all involved
and concerned parties are in full agreement with the basic management philosophies that
will be incorporated in order to meet these requirements. How quality will be measured
needs to be clear and specific and should include appropriate targets and tolerances.
3. Project Organizational Chart, Roles, and Responsibilities. The project
management team should be organized in such a way to achieve all of the stated project
objectives and goals, from a managerial, technical, oversight, and decision-making
perspective. A project organizational chart should be attached for clarity, with a brief
description of roles and responsibilities for each section or individual team. Normally, an
executive oversight committee (or steering committee) will be shown at the top of the
chart to provide overall project direction. The executive oversight committee would be
mostly made up of executive level Federal, STA, and local officials, and should meet on
a periodic basis. The day-to-day project management team is normally led by a Project
Director or Manager, which would support the executive oversight committee.
This section of the Project Management Plan should define the relationships between
public and private stakeholders and their organizational structures. Also, if the major
project is in multiple states, each State’s overall roles and responsibilities should be
spelled out.
In addition to technical and functional support teams such as right-of-way, utilities,
design, construction, project controls (scheduling, cost, document control), QA/QC, etc.,
consideration should be given to creating separate teams for media and public
information, civil rights, environmental monitoring and review, safety, and security.
The project team must have experienced key personnel dedicated to the success of the
major project, with the requisite technical, managerial, leadership, and communication
skills needed to proficiently perform the required tasks. Integrated project teams (mix of
consultant and STA personnel in the project management and functional/support teams),
as well as co-location of the project delivery team, have worked successfully on other
Major projects. However, the use of consultants must be carefully structured and
reviewed, to make sure that no conflicts of interest exist from a Government-Contractor
relationship aspect and to ensure that the proper STA oversight will still exist. For
example, no one consultant shall be responsible for both a design/construction role and an

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oversight role. Also, the STA should not fully contract out the oversight of any one team,
but should have at least one STA manager directly responsible and accountable for the
project management team and each functional/support team. It should always be kept in
mind that one of the most critical requirements of all key project personnel is to have the
highest standards of ethical integrity.
As noted earlier, a private entity in a Public Private Partnership project may be the
responsible party for a major project. In this case, the Project Management Plan should
document the necessary information and assistance provide by the STA to deliver the
project.
4. Project Phases. The Planning and Project Development process can include many
phases. The Project Management Plan should include a description of the individual
phases. Managing day-to-day activities of the project is necessary. In addition, the
project management team must understand the broader context of the project phases to
understand all potential influences on the project.
5. Procurement and Contract Management. How procurement and contract
management activities are to be conducted are to be documented in the Project
Management Plan. The management of all procurement and contract activities must be
formalized.
The section should include how procurement decisions are to be made including selection
of contractors and the types of contracts to be utilized. Consideration should be given to
the size and length of contracts as they relate to bonding capacity, the number of likely
bids, and other market conditions. It is also important to note that the strategy of multiple
contracts may introduce additional coordination and interface issues among separate
contracts.
This section should also include how the contracts are to be administered and should
cover performance reporting, payments, claims administration, and records management.
In addition, there should be a documented process for contract closeout, which includes
an analysis of the contract’s results.
6. Cost Budget and Schedule. Cost and schedule data are included in the project's
Finance Plan and Annual Updates, which are required for all major projects. The Initial
Finance Plan is required prior to the first federal authorization for construction funds. The
Project Management Plan should specifically reference these Finance Plan and Annual
Updates as an integral part of the Project Management Plan and include the process of
how cost estimates and schedules are validated and its frequency. For completeness, the
Project Management Plan should include the current cost and schedule information. This
information should be broken down into major cost elements and significant schedule
milestones. The initial financing arrangements, including any proposed loans and or
bonds, for the project should also be discussed. The financing for major projects will
always need to be consistent with any fiscally constrained plans, STIPs, TIPs, etc. The

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Finance Plan Annual Updates will then document all subsequent budget and financing
revisions.
Prior to the preparation of the initial Finance Plan, the Project Management Plan should
include a mechanism to report an annual update of the cost estimate.
Independent validations of the cost and schedule at significant milestones are important
to avoid sudden and unexpected cost overruns and schedule delays. Independent
validations should be performed by an unbiased team, which does not have a stake in the
outcome of the validation. The FHWA will conduct independent validations of the cost
estimate as appropriate at critical stages throughout the project continuum. These stages
may include prior to approval of the Final Environmental Impact Statement or
Environmental Assessment and again during the preparation of the Initial Finance Plan,
which will be prior to the initial FHWA construction authorization. In addition, the
FHWA may conduct cost estimate reviews anytime an Annual Update of the Finance
Plan shows a significant cost increase, schedule delay or scope change from the previous
Annual Update. Any other validations conducted by the STA should be verified by the
FHWA.
7. Project Reporting and Tracking. The actual project reporting and tracking
procedures to be incorporated into the major project should be included in the Project
Management Plan. The project reporting and tracking system is one of the key elements
in ensuring that the project budget and schedule will be maintained to the maximum
extent possible, that the project will be completed with the highest degree of quality, and
that compliance with Federal regulations will be met.
The project reporting and tracking system should be developed to collect, assess and
maintain project status information and data that is timely, independent, and accurate.
This system should provide current information on project prosecution, progress,
changes, and issues. This information should be used to identify trends and forecast
project performance and to identify and proactively address challenges to eliminate major
project surprises.
The need to continuously and accurately report cost increases; schedule changes;
deficient quality items; and the causes, impacts, and proposed measures to mitigate these
issues is paramount to effectively managing, administering, and protecting the public
investment in the major project. Any apparent reporting deficiencies or questionable data
should be completely resolved. Ultimately, the STA and FHWA must be fully aware of
the complete status of the major project, and therefore be in a position to take appropriate
action if necessary.
It is recommended that a monthly cost, schedule, and status report be produced by the
sponsoring STA, and that a monthly status meeting be held with the project management
team, STA, FHWA, and other applicable agencies in attendance. The monthly status
meetings should discuss the project costs, schedules, quality issues, compliance with
Federal requirements, and other status items in sufficient enough detail to allow all

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involved parties to be fully aware of the significant status issues and actions planned to
mitigate any adverse impacts. In addition, significant issues occurring between status
meetings must be communicated immediately without waiting for the next regularly
scheduled meeting, with any highly significant or sensitive issues elevated immediately
to the executive leadership.
The following is an example of a way to format the monthly status reports. The intent is
not to require a prescriptive format in which to report, but rather to provide an example of
a general outline in which modifications or additions can be made in order to produce a
monthly reporting format that will most effectively serve both the STA and the FHWA.
It is recognized that some major projects will have a more extensive monthly status than
others.


A. Executive Summary. The executive summary should be a clear and concise
summary of the current status of the project, including any major issues that have
an impact on the project's scope, budget, schedule, quality, or safety. It may be
done in a bulleted format for ease of briefing STA and FHWA upper
management. The following summary information is an example of items that
would be useful on a monthly basis:
o Current total project cost (forecast) vs. latest approved budget vs. baseline
budget. Reasons for any deviations from the approved budget.
o Current overall project completion percentage vs. latest approved plan
percentage.
o Any delays or exposures to milestone and final completion dates. Reasons
for the delays and exposures.
o Any Federal obligations and/or TIFIA disbursements occurring during the
month versus planned obligations or disbursements.
o Any significant contracts advertised, awarded, or completed.
o Any significant scope of work changes.
o Any significant items identified as having deficient quality.
o Any significant safety issues.
o Any significant Federal issues such as environmental compliance, Buy
America, DBE affirmative action requirements, etc.



B. Project Activities and Deliverables. The purpose of this section is to: (1)
highlight the project activities and deliverables occurring during the previous
month (reporting period), and (2) define the activities and deliverables planned for
the next two reporting periods. Activities and deliverables to be reported on
should include meetings, audits and other reviews, design packages submitted,
advertisements, awards, construction submittals, construction completion
milestones, financial plan submittals, media or Congressional inquiries, value
engineering/constructability reviews, and other items of significance. The twomonth "look ahead schedule" will enable FHWA and STA personnel to better
schedule their workloads to accommodate any activities requiring input or
assistance.

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

C. Action Items/Outstanding Issues. This section should draw attention to, and
track the progress of, highly significant or sensitive issues requiring action and
direction in order to resolve. In general, issues and administrative requirements
that could have a significant or adverse impact to the project's scope, budget,
schedule, quality, safety, and/or compliance with Federal requirements should be
included. Status, responsible person(s), and due dates should be included for each
action item/outstanding issue. Action items requiring action or direction that
month should be included in the monthly status meeting agenda. The action
items/outstanding issues may be dropped from this section upon full
implementation of the remedial action, and upon no further monitoring
anticipated.
The process of tracking action items, outstanding issues, proposed changes, etc.
should be documented in the Project Management Plan to ensure resolution.



D. Project Schedule. An updated master program schedule reflecting the current
status of the program activities should be included in this section. A Gantt (bar)
type chart is probably the most appropriate for monthly reporting purposes, with
the ultimate format to be agreed upon between the STA and FHWA. It is
imperative that the master program schedule be integrated, i.e., the individual
contract milestones tied to each other, such that any delays occurring in one
activity will be reflected throughout the entire program schedule, with a realistic
completion date being reported.
Narratives, tables, and/or graphs should accompany the updated master program
schedule, basically detailing the current schedule status, delays and potential
exposures, and recovery efforts. The following information would be beneficial:
o Current overall project completion percentage vs. latest approved plan
percentage.
o Completion percentages vs. latest approved plan percentages for major
activities such as right-of-way, major or critical design contracts, major or
critical construction contracts, and significant force accounts or task
orders. A schedule status description should also be included for each of
these major or critical elements.
o Any delays or potential exposures to milestone and final completion dates.
The delays and exposures should be quantified, and overall schedule
impacts assessed. The reasons for the delays and exposures should be
explained, and initiatives being analyzed or implemented in order to
recover the schedule should be detailed.
o Project Schedule. An updated master program schedule reflecting the
current



E. Project Cost. An updated cost spreadsheet reflecting the current forecasted
cost vs. the latest approved budget vs. the baseline budget should be included in
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Project Management Plan Guidance – January 2009
this section. One way to track project cost is to show: (1) Baseline Budget, (2)
Latest Approved Budget, (3) Current Forecasted Cost Estimate, (4) Expenditures
or Commitments To Date, and (5) Variance between Current Forecasted Cost and
Latest Approved Budget. Line items should include all significant cost centers,
such as prior costs, right-of-way, preliminary engineering, environmental
mitigation, general engineering consultant, section design contracts, construction
administration, utilities, construction packages, force accounts/task orders, wrapup insurance, construction contingencies, management contingencies, and other
contingencies. The line items can be broken-up in enough detail such that specific
areas of cost change can be sufficiently tracked, and future improvements made to
the overall cost estimating methodology. A Program Total line should be
included at the bottom of the spreadsheet.
Narratives, tables, and/or graphs should accompany the updated cost spreadsheet,
basically detailing the current cost status, reasons for cost deviations, impacts of
cost overruns, and efforts to mitigate cost overruns. The following information
would be beneficial:
o Reasons for each line item deviation from the approved budget, impacts
resulting from the deviations, and initiatives being analyzed or
implemented in order to recover any cost overruns.
o Transfer of costs to and from contingency line items, and reasons
supporting the transfers.
o Speculative cost changes that potentially may develop in the future, a
quantified dollar range for each potential cost change, and the current
status of the speculative change. Also, a comparison analysis to the
available contingency amounts should be included, showing that
reasonable and sufficient amounts of contingency remain to keep the
project within the latest approved budget.
o Detailed cost breakdown of the general engineering consultant (GEC)
services, including such line items as contract amounts, task orders issued
(amounts), balance remaining for tasks, and accrued (billable) costs.
o Federal obligations and/or TIFIA disbursements for the project, compared
to planned obligations and disbursements.
A vigorous process should be implemented to enhance the monthly project
reporting and tracking. Non-integrated cost and schedule reporting normally just
compares the actual expenditures (contractor payments, invoices, right-of-way
expenditures, etc.) to the planned expenditures. Non-integrated reporting does not
take schedule slippage into account; therefore, if the project is behind schedule,
the actual expenditures will naturally be less than the planned expenditures and
the comparison could provide a misleading status as to whether or not the project
is within budget.
One example of a project management methodology that integrates the cost and
schedule progress reporting is Earned Value Management. Earned Value

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Project Management Plan Guidance – January 2009
Management reporting, takes the schedule slippage into account when comparing
actual versus planned expenditures, and provides an early and more accurate
indication of whether or not the project will be completed within budget. If the
Earned Value reporting indicates that the project is trending to be over-budget,
early action can be taken to reverse the trend, plan for contingency use, and/or
dedicate additional resources to the project.


F. Project Quality. The purpose of this section is to: (1) summarize the QA/QC
activities during the previous month (reporting period), and (2) highlight any
significant items identified as being deficient in quality. Deficient items noted
should be accompanied by reasons and specifics concerning the deficiencies, and
corrective actions taken or planned. In addition, the agency or firm responsible
for the corrective action should be documented. Planned corrective actions
should then be included as Action Items/Outstanding Issues.



G. Other Status Reports. The STA and FHWA may agree that other reports
may be beneficial in ensuring that project status issues are fully and openly
communicated.
Such reports may include contractor safety performance (as compared to the
National average or other benchmark), wrap-up insurance payments and reserves,
and/or DBE actual utilization versus goals. Other reports may be more
appropriate to include on a semi-annual or annual basis, such as the public
relations plan, value engineering and constructability review plan, environmental
compliance report, and/or compliance with the Buy America requirements.

8. Internal and Stakeholder Communications. In addition to the formal reporting and
tracking of the project discussed above. The internal communications and stakeholder
communications is integral to a successful major project. A discussion should be
included in the Project Management Plan to address communications between project
team members and stakeholders that cover how informal and formal communications will
be conducted and managed.
9. Project Management Controls (Scope, Cost, Schedule, Claims, etc.) A project
controls functional team will normally help manage the scope, total cost and overall
master schedule for the project, in order for the entire project delivery team to meet the
stated objectives of the project being completed on time and within budget. The project
controls functional team will also produce project reports, including quantifying schedule
delays and cost increases, and initiatives being analyzed to recover. This section includes
project management controls that should be used on most major projects.


A. Risk Management Plan. A systematic process to identify, analyze, and
respond to project risk throughout all phases of the project should be documented
in the Project Management Plan. This plan should result in maximizing the
probability and consequence of positive events and minimizing the probability

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and consequences of adverse events. This process should be evaluated throughout
the project’s life cycle.


B. Scope Management Plan. The Project Management Plan should document
the philosophy regarding scope management. The discussion should include the
processes for approving scope changes and for verifying that the planned scope of
work is actually completed.



C. Scheduling Software. The Project Management Plan should include the
scheduling software to be used for the project. Consideration should be given to
requiring the same software package for all schedules to be generated by the
project controls functional team, the design consultants, and the contractors, in
order to ensure uniformity and compatibility for the overall master schedule. The
frequency and the detailed process of reviewing and validating schedules should
be also included.



D. Cost Tracking Software. The software to be used to track and report costs
should be included. The frequency and the detailed process of reviewing and
validating cost estimates should be also included.



E. Project Metrics. Appropriate project metrics by which success of the project
are essential and should be documented in the Project Management Plan. These
metrics should be developed such that appropriate analyses can be conducted to
identify trends and forecast project performance. The metrics should be used to
identify and proactively address challenges to eliminate surprises. Metrics for
cost, schedule, and public opinion should be considered. Reports on project
metrics should be incorporated into the Project Reporting and Tracking
procedures outlined above.



F. New and Innovative Contracting Strategies. Management processes for
new and innovative acquisition strategies to be incorporated into the project
should be included in this section. These could include Design-Build or PublicPrivate-Partnerships.
Any use of cost-plus-time bidding, lane rental, and bid options (simultaneous
procurements of similar scopes with options to award) should be included.



G. Value Engineering, Value Analyses, and Constructability Reviews. The
decision as to when (i.e., what design stage completion) to perform value
engineering, value analyses, and constructability reviews should be made during
the early design stage and included in the Project Management Plan, with funding
for each review set up and included in the project budget.
Also, if contractor-initiated value engineering change proposals (VECP) are used,
this should be included in the Project Management Plan with a discussion on how
savings will shared.
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Project Management Plan Guidance – January 2009

Procedures should be established for reviewing each of the Value Engineering,
Value Analyses, and Constructability reviews at the completion of the studies;
such as documenting the acceptance or rejection of the individual proposals,
documenting potential cost savings, and approvals for the actions taken.


H. Contractor Outreach Meetings. If contractors are to be consulted during the
early design process, this should be included in the Project Management Plan.
The level of involvement by contractors should be discussed along with any
procurement restrictions on contractors involved in the outreach meetings.



I. Partnering. Successful projects usually depend on the development of mutual
confidence and respect between the project delivery team and the contractors.
Therefore, the project delivery team should develop a documented process to
enhance working relationships in its contract administration activities with the
contractors. This can be done through a formalized partnering process.
The Project Management Plan should document the level of organizational
involvement and the professional facilitation for the key partnering processes,
including any partnership development and team-building workshops.



J. Change Order and Extra Work Order Procedures. The Project
Management Plan should define the procedures for addressing change orders and
extra work orders during the project execution. These procedures should: (1)
ensure that each order is adequately reviewed by all parties affected by the
change, (2) provide for efficient processing, and (3) ensure that the order is
consistent with the Project Objectives. A graphical flowchart (and possibly a
narrative) showing the change order procedure, parties involved, approval
authorities, and maximum time frames allowed per activity, should be included in
the Project Management Plan. These procedures should also include the process
for accommodating work outside of the defined scope.
Checks and balances should be included in the change order procedure to ensure
that a comprehensive, yet timely, review of the proposed change has been
accomplished prior to execution. A few of the key elements in the proper
management of change orders and extra work orders are:
o The full scope must be identified and understood as soon as possible,
including assessing whether a change exists by comparing the contract
documents and language to the alleged change.
o Viable alternatives should be fully considered and evaluated, including
resultant impacts to the project scope, budget, schedule, and coordination
requirements, with the goal of minimizing the impact of the change.

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Project Management Plan Guidance – January 2009
o Independent cost estimate reviews should be performed by the project
delivery team to verify the reasonableness of the contractor/consultant’s
price. Contractors/consultants should be required to submit detailed cost
and pricing data for each element of their cost estimate. Negotiations of
quantities, unit prices, and other direct charges should be undertaken when
determined to be in the best interests of the Government, in order to obtain
a fair and reasonable price.
o An Error and Omissions process should be included as part of the overall
change order procedure, to determine if there is any design consultant
liability associated with the change that can possibly be recovered.
o Timely response to a change, from both the contractor/consultant and the
project delivery team, should be implemented within the predetermined
allowable time frames set up in the procedures. .
o Detailed records, correspondence, photographs, etc. of all pertinent aspects
of the change order must be maintained.
Significant change order and extra work order reports should be incorporated into
the Project Reporting and Tracking procedures outlined above.


K. Claims Management Procedure. The Project Management Plan should also
define the claims review and management process to be followed in cases of
contractor claims. Usually contract articles and specifications require the
contractor to exhaust all possible administrative remedies, prior to seeking
judicial relief in connection with a matter to be resolved, which would also be in
concert with the partnering objectives. The roles and responsibilities of those
reviewing and approving the claims, including legal reviews must be documented.
A graphical flowchart (and possibly a narrative) showing the claims review and
management procedure, parties involved, and approval authorities should be
included in the Project Management Plan.
Status of significant claims should be incorporated into the Project Reporting and
Tracking procedures outlined above.



L. Other Programs. The Project Management Plan should include how other
unique programs are to be managed. These may include:


Owner Controlled Insurance Programs (OCIPs)



Transportation Infrastructure Finance and Innovation Act (TIFIA) loan
program

10. Design Quality Assurance/Quality Control (QA/QC). The Project Management
Plan should set up the general requirements for Quality Assurance/Quality Control

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Project Management Plan Guidance – January 2009
(QA/QC) to be used during the design phase. A reference to standard design QA/QC
documents may be appropriate, plus any enhanced QA/QC procedures to be incorporated
due to the complexity and visibility of the Major project. It is suggested that, at a
minimum, design QA/QC procedures include the following:


An overall Design QA/QC Plan.



Design standards to be adhered to.



Design criteria specific to the individual project.



Procedures for preparing and checking individual plans, specifications, estimates,
calculations, and other submittal items.



Procedures for preparing and checking any unique or highly specialized designs.



Procedures for coordinating work performed by different persons for related
tasks, to ensure that conflicts, omissions, or errors do not occur between drawings
or between drawings and other design documents.



Procedures for coordinating and obtaining permits from permitting agencies,
utility companies, and railroad companies. This should include procedures for
ensuring that all permitting, utility, and railroad requirements are incorporated
into the design of the project; and procedures for coordinating submittals and
agency reviews such that the overall project schedule is not delayed.



Level, frequency, and methods of review of the adequacy of the total project
design. Methods by which all final design documents will be independently
reviewed; verified for constructability, completeness, clarity, and accuracy; and
back-checked.



Level and frequency of audit and oversight design reviews (concerning QA/QC
and validity of consultant payments) to be performed by the STA, FHWA,
independent consultants, and/or other agencies.



Procedures for reviewing and checking design drawings and documents required
during construction.



Qualifications for all key design personnel.



Documentation and submission procedures to ensure that the established design
QA/QC procedures have been followed.

11. Construction Quality Assurance/Quality Control (QA/QC). The Project
Management Plan should also set up the general requirements for Quality
Assurance/Quality Control (QA/QC) to be used during the construction phase. A
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Project Management Plan Guidance – January 2009
reference to standard construction QA/QC documents may be appropriate, plus any
enhanced QA/QC procedures to be incorporated due to the complexity and visibility of
the major project. It is suggested that, at a minimum, construction QA/QC procedures
include the following:


An overall Construction QA/QC Plan.



Construction standards to be adhered to for performing construction inspection.
Documents to be used that will define materials to be certified, materials to be
tested, sampling procedures, testing procedures, record keeping and reporting
procedures, and nonconformance plan.



Agency or party responsible for QA and QC, i.e., responsibilities of the contractor
versus the STA for sampling, testing, monitoring, and reporting test results.



Frequency and agency involvement for construction coordination (progress)
and/or partnering meetings.



Procedures for coordinating with permitting agencies, utility companies, and
railroad companies during construction to ensure that all requirements are
incorporated into the project such that the overall project schedule is not delayed.



Level and frequency of inspections to identify and correct any deficiencies in the
project construction that do not meet the requirements of the plans, specifications,
and other binding documents.



Level and frequency of audit and oversight construction reviews (concerning
QA/QC and validity of contractor payments) to be performed by the STA,
FHWA, independent consultants, and/or other agencies.



Qualifications for all key construction personnel.



Documentation and submission procedures to ensure that the established
construction QA/QC procedures have been followed.

12. Environmental Monitoring. The final NEPA decision document and other
agreements can define required mitigation for the major project. In addition,
environmental permits may be obtained during the design of the project, which will
specify additional requirements to be adhered to during construction. The Project
Management Plan should set up the general requirements to ensure that all environmental
commitments are included in the design and construction of the project, and that a
proactive approach will be used for overseeing and inspecting environmental work during
construction to help guard against cost overruns and schedule delays. In addition, many
Records of Decision require environmental compliance after a facility is open to traffic
on an ongoing basis (e.g. stormwater management or wetlands performance). It is

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Project Management Plan Guidance – January 2009
suggested that, for Major projects with a substantial amount of sensitive environmental
issues, environmental monitoring procedures include some or all of the following:


An overall Environmental Monitoring Plan to verify that the scope of
environmental commitments from the NEPA document, environmental permits,
and other environmental approvals are implemented.



Roles and responsibilities of the environmental monitoring staff.



Any strategic stationing or positioning of staff members to maintain constant
contact with resource agencies and a working knowledge of the project’s
environmental issues to ensure that all FEIS and permit commitments are
followed through.



Any planned proactive coordination with the resource agencies during the project
design and construction, in order to ensure early and constant communications of
issues and requirements.



Any fluctuating work schedules among the environmental monitoring staff
members to ensure constant coverage of key contractor schedules and activities
that may affect the environment.



Coordination of environmental monitoring staff members’ daily activities with the
project management and construction management teams, in order to monitor and
observe critical contractor activities.



Record keeping and reporting procedures.



Noncompliance and violations procedures.



Permit modification procedures related to construction activities, including
strategies for guarding against cost overruns and schedule delays while still acting
as a good steward to the environment.



Post-construction environmental performance for wetlands, stormwater,
vegetation, wildlife crossings, endangered species, etc.

13. Right of Way. This discussion should include policies to be adhered to and
processes for appraisals, acquisitions, relocations, demolitions, construction/utility
easements, scheduling, and reporting.
14. Safety and Security. This section should define the requirements to be incorporated
into the project in order to complete the project is a safe and secure environment for all
individuals working on the project. The prevention of accidents during execution of a
Major project should be a primary concern of all participants, and should be the

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Project Management Plan Guidance – January 2009
responsibility of all levels of management. Safety should never be sacrificed for
production, but should be considered an integral part of an efficient and quality project.
It is suggested that safety and security procedures include the following:


Safety and health standards to be adhered to.



Roles and responsibilities of the safety/security staff.



Contractors (meaning prime contractors and subcontractors combined) having a
Safety Director and an approved safety manual (or plan) available to all
employees.



Contractors holding periodic on-site safety meetings.



Contractors conducting periodic on-site safety inspections.



Contractors providing safety training for all new employees, and refresher
training for all employees.



Contractors conducting drug screening for all new hires.



Contractors establishing daily housekeeping and clean-up procedures.



Possible employee sharing of accident prevention savings.



Having first-aid and medical kits readily available.



Having a site security plan, possibly including such items as restricted parking
near vulnerable structures, physical barriers (fences, barricades, etc.), coordinated
efforts with local law enforcement officials during heightened threat levels, video
surveillance, alarm systems, emergency telephones, etc.



Having an emergency preparedness and incident management plan, including
roles and responsibilities, emergency evacuations, communications, first
responder awareness training, and field drills.



Establishment of an employee identification (ID) system.



Level and frequency of audit and oversight safety/security reviews to be
performed by the STA, FHWA, independent consultants, and/or other agencies.



Safety and security periodic reporting (normally monthly).

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Project Management Plan Guidance – January 2009
In addition, appropriate threat and vulnerability assessments should be made and taken
into consideration thought the project’s life cycle. The transportation elements of a
Major project could have a significant impact on regional safety and security plans.
15. Traffic Management. This section of the Project Management Plan should define
the requirements for providing monitoring and oversight of the contractors’ day-to-day
Maintenance of Traffic (MOT) operations, in order to complete the project in the most
safe and efficient manner for the traveling public. It is suggested that traffic management
procedures include the following:


Maintenance of Traffic (MOT) standards to be adhered to.



Roles and responsibilities of the traffic management staff.



Reviewing MOT plans and proposals at various design reviews, for conformance
with approved standards and familiarity with traffic phasing, traffic shifts, and
lane closures proposed during construction.



Coordinating with local agencies during design and construction regarding
placements of temporary signing and traffic control devices within their
jurisdictions.



Coordinating with local agencies during design and construction regarding
restrictions and management of special events.



Coordinating with all local emergency agencies during design and construction, to
ensure adequate passage of emergency vehicles through the construction zones.



Coordinating traffic maintenance among multiple contractors, in order to integrate
temporary signing and traffic control devices among various contracts.



Coordinating with contractors concerning the specific wordings to be placed on
variable message signs during construction.



Conducting periodic MOT reviews during construction (including nighttime
inspections), for conformance with plans, specifications, and approved standards;
and to ensure that all traffic control devices are functioning properly.



Having an incident management plan for accidents occurring within the project
limits, including accident prevention strategies, emergency procedures, reporting
requirements, and mitigation strategies.



Coordinating and assisting the Media and Public Information team and local news
media concerning traffic pattern changes, periods of lane closures, traffic delays,
alternate routes available, work zone accidents, etc.

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Project Management Plan Guidance – January 2009


Level and frequency of audit and oversight traffic management reviews to be
performed by the STA, FHWA, independent consultants, and/or other agencies.



Traffic management periodic reporting (normally monthly).

16. Project Communications (Media and Public Information). A critical objective for
all Major projects is to maintain the trust, support, and confidence of the media and
public throughout the life of the project. A critical component to successfully meet this
objective is a Media and Public Information Plan that will provide proactive, effective,
and responsive project communications. All external project communications should be
documented in the Project Management Plan. Some key strategies that should be
included in the plan are to:


Set up a public information team or office responsible for all media and public
information efforts for the project, in which all external information will flow
through. Such a team or office will allow the project delivery team to effectively
speak with “one voice”.



Proactively convey current project status information to the media and public,
including scheduled milestone completion dates; significant contacts advertised,
awarded, or completed; and total cost projections.



Proactively convey updated commuter and traffic information, including traffic
pattern changes, periods of lane closures, traffic delays, work zone accidents,
alternate routes available, and alternate forms of transportation available
(including benefits and possible subsidies).



Proactively convey and mitigate, to the greatest extent possible, construction
impacts to the local residents and businesses.



Respond timely to media and public questions and requests for information.



Assist the community and other stakeholders in developing ownership and pride
in the Major project, by building awareness and helping them understand the
benefits of the project.

Underlying the media and public communications process is the need for all team
members to be as accurate and forthright as possible, and to respond in a professional and
timely manner. These characteristics will help to create the high-level of information
communication needed to successfully maintain the media and public trust, support, and
confidence.
The Media and Public Information Plan should identify all potential media and public
stakeholders, normally consisting of businesses along the project corridor, communities
along the corridor and others impacted by the project, all forms of media, governmental
agencies (elected/appointed officials and their staffs), and civic associations and citizen
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Project Management Plan Guidance – January 2009
groups. Most Major projects have developed a project web site as one component of
their communications plan to provide a central and easily accessible location for all
stakeholders. The web site can allow for real-time project information including
construction progress photos, traffic updates, trip planning, project maps, project history,
new technological accomplishments, and contact information. Some web sites contain
the latest monthly cost, schedule, and status report and/or latest Financial Plan Annual
Update to allow all stakeholders the benefit of viewing total cost projections, revenue
streams, scheduled milestones, and other status issues.
Other media and public information vehicles can include establishment of a staffed public
information center, brochures, displays, computer-simulated videos showing a completed
project drive-through, project newsletters, press releases, media briefings,
groundbreaking and ribbon cutting ceremonies, project tours, and public information and
citizens’ advisory meetings.
In order to have an effective Media and Public Information Plan, an internal
communications strategy should also be developed among the project delivery team
members. The internal communications network should provide for open lines of
communication and support between all project and functional teams, but allow for all
external communication to flow through the public information team or office. It is
important to identify major interfaces that exist between the project and functional teams,
and to establish responsibilities, authorities, and communication procedures (meetings,
memorandums, authorizations, reviews, etc.) at each of those identified interfaces.
A process for routinely surveying the stakeholders, and for providing opportunities for
input and feedback into the media and public information process, may also be
incorporated into the project to determine if the objectives are being met. A proactive
and responsive approach should then be taken to remedy any reasonable issues or
concerns that are expressed, and a system developed for documenting and responding
back to the stakeholders with the proposed/incorporated resolution.
17. Civil Rights Program. The STA, FHWA, and other sponsoring agencies should
make a commitment to provide a strong civil rights program for the Major project,
meeting the needs of each of the sponsoring agencies. This section of the Project
Management Plan should outline the specific goals and requirements related to
Disadvantaged Business Enterprises (DBE), Small Business Enterprises (SBE), Equal
Employment Opportunity (EEO), and other civil rights programs; for contractors,
consultants, and the project delivery team itself. A separate civil rights team or office
may be set up specifically for the project, to be responsible for the administration and
oversight of the entire civil rights program.
Periodic (normally monthly) civil rights reporting requirements should be set up. Review
and audit procedures should also be put into place. Prompt handling procedures of
negative findings and complaints regarding the program should also be defined, including
the use of appropriate sanctions should they become necessary.

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Project Management Plan Guidance – January 2009
The civil rights team/office should interface with the public information team/office to
ensure that disadvantaged communities are included in the public outreach programs.
Another vehicle used on some Major projects is for the project delivery team to conduct
DBE outreach sessions, which bring DBEs and prime contractors together in “one-onone” sessions to discuss large, upcoming contracts to be advertised in the near future.
These DBE outreach sessions have shown positive results in helping to meet or exceed
DBE goals.
18. Closeout Plan. A Closeout Plan consisting of the requirements to provide a
coordinated transition from construction to operations along with the roles and
responsibilities of various agencies and offices should be included in the Project
Management Plan.
19. Project Documentation. A procedure to describe how project records will be kept
should be included in the Project Management Plan. This includes defining the document
control and tracking systems and possible use of a web site for search and retrieval of
project documents. Also, at the end of the project, a final report should be prepared to
document final project data and lessons learned.
20. Other Possible Sections. Other possible sections in the Project Management Plan
could include:


Human Resources Management. The Project Management Plan could include
management of project teams. The discussion could include how roles and
responsibilities for the project team are managed, project team performance
assessment, and other human resource issues.



Any other project functions that the project sponsors feel would be beneficial to
include in the Project Management Plan to ultimately help in meeting the Project
Objectives.

21. Appendices. Appendices to the Project Management Plan could include any prior
interagency agreements or other applicable documents that will aid the users of the
Project Management Plan in understanding prior commitments and previously
established roles.
22. Executive Leadership Endorsement. It is suggested that the executive leadership of
the STA, the FHWA, and other agencies sponsoring the project endorse the Project
Management Plan via a briefing and a signature page. Executive leadership endorsement
will further the commitment of achieving the project objectives and will officially initiate
the procedures and requirements as set forth in the Project Management Plan. It should
be noted on the signature page that the effectiveness of the Project Management Plan will
be continuously evaluated, and that revisions will be issued as the project progresses in
order to generate the most effectively managed project meeting the project objectives.

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Project Management Plan Guidance – January 2009
PROJECT MANAGEMENT PLAN CHECKLIST: How have the following factors
been considered during the preparation of the Project Management Plan? Compare the
Project Management Plan with the FWHA guidance and identify critical issues and risks
for the following sections:
1. Project Description and Scope of Work
2. Goals and Objectives
3. Project Organizational Chart, Roles, and Responsibilities
4. Project Phases
5. Procurement and Contract Management
6. Cost Budget and Schedule
7. Project Reporting and Tracking
Executive Summary
Project Activities and Deliverables
Action Items/Outstanding Issues
Project Schedule
Project Cost
Project Quality
Other Status Reports
8. Internal and Stakeholder Communications
9. Project Management Controls (Scope, Cost, Schedule, Claims, etc.)
Risk Management Plan
Scope Management Plan
Scheduling Software
Cost Tracking Software
Project Metrics
New and Innovative Contracting Strategies
Value Engineering, Value Analyses, and Constructability Reviews
Contractor Outreach Meetings
Partnering
Change Order and Extra Work Order Procedures
Claims Management Procedures
Other Programs
10. Design Quality Assurance/Quality Control (QA/QC)
11. Construction Quality Assurance/Quality Control (QA/QC)
12. Environmental Monitoring
13. Right-of-Way
14. Safety and Security
15. Traffic Management
16. Project Communications (Media and Public Information)
17. Civil Rights Program
18. Closeout Plan
19. Project Documentation
20. Other Possible Sections (if appropriate)
21. Appendices
22. Executive Leadership Endorsement
Other items may be added depending on the project’s characteristics.

22