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Geographic Information Systems (GIS) Also: Web-Based Project Management Tools
September 2001 • Issue No. 50 • Volume XVI • Number 2
Application/Advantages of Alternative Project Delivery Systems
Serving as Owner’s Engineer on Hungary’s M3 Motorway
By Joseph Edge, Budapest, Hungary 36-309-964-971, joedge@attglobal.net
The M3 Motorway project demonstrates that the role of owner’s engineer in international, design/build type projects can offer unique challenges and opportunities—challenges that were met by taking full advantage of PB’s international resources.

Hungary’s new M3 Motorway was delivered as a design/build, unit- priced, turnkey contract. M3 is a 113-km (68 mile) toll motorway extending from the capital, Budapest, to the eastern agricultural city of Fuzesabony. PB’s client and the facility owner, EKM Autopalya (EKMA), a 100 percent state-owned limited corporation, acted as the contracting agency. The project involved:
  • Upgrade of 65 km (39 miles) of existing untolled highway with six new interchanges and a nine-lane main toll barrier across the motorway proper (Section A)
  • Construction of 58 km (35 miles) of new four-lane motorway with four new interchanges connecting local highways (Section B)
  • Construction of a conventional closed-type toll system with toll plazas, barriers and full supporting telecommunication and ITS systems.
Bids on the project were based on a preliminary tender design developed to only about 5 percent completion. This included preliminary alignments, right-of-way and interchange locations with specifications and preliminary quantities of unit-priced items that outlined the functional requirements and design criteria. Bidders were required to submit detailed technical and financial proposals for the work.

The selected design/build contractor, MHK Konzorcium, a Hungarian- led international consortium of design and construction firms, was responsible for completing the design and constructing the works for takeover by EKMA. PB and joint venture (JV) partner, Utiber Kft., a Hungarian construction management firm, were selected by EKMA in a competitive bid to serve as the owner’s engineer (OE).

PB’s Role on Owner’s Engineer Team

As OE, we were involved in every stage of the project from planning and design to construction inspection. The primary duties of the JV team were to:
  • Ensure the quality of the contractor’s work, from design to construction
  • Issue design approvals and certificates of completion for the various work elements.
Specific duties were split between the JV partners. Utiber was responsible for the civil infrastructure while PB was responsible for the technology aspects of the toll and communication systems of the motorway. We provided a variety of services for ensuring the quality of the planning, design and implementation of these systems, which included the toll, telecommunication, video surveillance, weather information, traffic monitoring, emergency road phones, and internal communication networks (PABX telephone, radio). PB Farradyne specialists provided technical support including planning and design reviews of the various ITS systems, equipment procurement inspections and construction inspections. Much of the design review work was done in our Rockville, Maryland office.

Other services we provided included:
  • Monitoring and controlling project budgets
  • Assisting with program management for new toll implementation
  • Providing preliminary legal opinions regarding contractor claims
  • Preparing independent cost estimates for the technology works
  • Monitoring and controlling the overall project budget of about 30 B forints (US $150M).
The project management plan provided one PB project manager (PM) on-site to act as a day-to-day contact with the client and to monitor the contractor’s activities, schedules and invoices. PB Power staff in Newcastle, UK provided project administration services for our project office.

International Resources Help to Meet Expanded Work Scope

The tender design and functional specifications served as a basis for the contractor’s final designs, prepared in a three-phase progressive approach. Each phase was reviewed formally by the OE, EKMA and other jurisdictional entities. Project requirements were expanded during the design process, so the resulting conceptual plan refinements increased the limits of proposed work and added supplemental work. These changes were controlled by contractual variation order procedures, in which needs were defined and verified and proposed work and related costs were reviewed. Additional and supplemental work increased the project value correspondingly to 45 billion forints (US $214 million) and extended the project schedule by about six months.

The new work required appropriate review for technical performance, scheduling, costing, coordination and, ultimately, approval by the OE. Close coordination with PB experts abroad was essential for facilitating design reviews and extensive research for information on equipment and prices. Much research of state-of-the art equipment and systems was conducted on the Internet.

The project schedule required significant updating, as is the case on most design/build projects. Work program changes identified in the design impacted the project schedule, making it necessary for the OE to revise the scheduled engineering services. This change presented a physical challenge in providing the PB services with little notice to the experts abroad. While good network communications between our project office and main offices helped greatly, last-minute trips to Hungary from the U.S. were unavoidable and not uncommon.

A Job Well Done

The M3 Motorway opened to traffic on schedule on September 1, 1998. Tolling of the facility, started in mid January 1999.

Our success as the OE on this design/build project can be attributed to:
  • The firm’s many diverse, seasoned technical specialists and the flexible way their unique talents may be used.
  • Well-established PB communication networks that helped to facilitate efficient, cost-effective off-site production work that satisfied both project needs and PB project finance goals.
  • Excellent interoffice communication and coordination among the various PB offices around the world that were involved with the project.
  • The project management approach of one on-site PM proved effective and should be considered on similar projects. The PM had technical support provided on-site as needed, and off-site support readily available.
New design/build opportunities abound in the high growth markets of developing countries. PB’s ability to provide a full range of quality-oriented, specialized services in a cost-effective manner will promote the firm as the preferred provider of design/build engineering services worldwide.

Joe Edge is a professional civil engineer with experience in infrastructure and communication projects. He is PB’s project office manager in Budapest, Hungary.

Note: Other articles on the role and responsibilities of owners engineer are “Minimizing Risks in Design/Build Projects: An Owner’s Engineer’s View” by Darius Irani and “The Role of Owner’s Engineer,” also written by Joe Edge. See also PB Network #45, pp 45-47, 62, “Hungary’s M3 Motorway Opens with State-of-the-Art Communication Systems.”

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