Metro - File #: 2023-0474

• File #: 2023-0474
• Type: Informational Report
• Status: Agenda Ready
• File created: 7/24/2023
• In control: Construction Committee
• On agenda: 10/19/2023
• Title: RECEIVE AND FILE Office of the Inspector General Review of Metro Construction Projects Quantitative Data.
• Indexes: Budgeting, Construction, Construction management, Construction safety, Contractors, Crenshaw/LAX Transit Corridor Project, Design build, Informational Report, Los Angeles International Airport, Metro Rail A Line, Metro Rail C Line, Metro Rail E Line, Metro Rail K Line, Program Management, Project, Project management, Regional Connector Transit Corridor Project, Safety, Statistics, Strategic planning, Variance

Meeting_Body
CONSTRUCTION COMMITTEE
OCTOBER 19, 2023
Subject
SUBJECT: REVIEW OF METRO CONSTRUCTION PROJECTS QUANTITATIVE DATA

Action
ACTION: RECEIVE AND FILE

Heading
RECOMMENDATION

Title
RECEIVE AND FILE Office of the Inspector General Review of Metro Construction Projects Quantitative Data.
Issue
ISSUE
The OIG has completed its Review of Metro Construction Projects Quantitative Data. This is a companion report to the 2023 OIG Construction Best Practices Report (Follow Up to the 2016 OIG Construction Best Practices Report).
Background
BACKGROUND

The Board queried the Office of Inspector General (OIG) whether, given all the checks and balances and systems and processes that appear to be in place, has the OIG seen any measurable results related to the number and amount of change orders showing, is Metro moving in the right direction. The OIG is responding to the Board's request by reviewing cost/budget escalation across 29 construction contracts, schedule compliance / extensions, and Metro's safety incident experiences at construction project locations.
Discussion
DISCUSSION
In the 2023 OIG Construction Best Practices Report found Metro to be in compliance with most of the recommended best practices over areas such as readiness, procurement, and management of construction projects. In this review analyzed quantitative data pertaining to three areas - Cost/Life of Project budgets, schedules, and safety management to evaluate the impact of the enhanced best practices. The cost/budget information includes Life of Project ("LOP") budgets escalation history and change order activity since 2013 across 29 construction contracts allowing for quantitative review.
LOP Budget - We reviewed data on the initial and revised LOP budgets presented to Metro's Board for authorization to commence and continue projects. We found the data suggests that to lessen LOP budgets revisions, Metro should strive for fixed and stable project definitions; enhance it...