Achieving Success with a Capital Project Effective Management of Your Staff and Consultants

1. Achieving Success with a Capital ProjectEffective Management of Your Staff and Consultants Tom Manning, Nancy Lager, & Emily Chen HRSA REGION II CONFERENCE 2010Atlantic City, NJJune 2, 2010

2. About PCDC • Founded in 1993 • Mission: To expand and enhance access to primary care in underserved communities • Three Key Strategies to Achieve Mission: • Investing in primary care facilities • Strengthening service delivery • Leading policy initiatives

3. About PCDC – A Primary Care Funder • One of the few Community Development Financial Institutions providing primary care financing • To-date, leveraged over $250 million to finance 77 health center projects in NYS • > 2,200 permanent jobs • 630,000 square feet developed • Capacity for 550,000 New Yorkers & 1.7 million visits • Coordinator for HRSA Loan Guarantee Program

4. Today’s Topics • Understanding Facility Development • Understanding the Owner’s Role • Understanding the Consultants’ Role

5. Understanding Facility Development3 Iron-Clad Rules of Facilities Development • No one cares more about your project than you • No one understands your business like you do • YOU will live with the finished building – for better or worse…

6. Understanding Facility Development(continued) What Does This Mean for YOU as the Owner? You must: • Understand the development process • Understand who should participate & what roles they each play – internal & external team members • Pay close attention throughout the process

7. Understanding Facility Development(continued)Development Process Stages

8. Understanding the Owner’s Role • Set Project Parameters • Form the Project Development Team • Make Decisions • Develop & Maintain Goodwill • Communicate with Stakeholders • Manage the Flow of Funds

9. Understanding the Owner’s Role(continued) Set Project Parameters Create the “Project Box” • Establish program and project goals • Set the budget – what you can afford to build to your goals • Set the development timeframe Set up Monitoring Processes & Procedures • Set development milestones • Schedule routine, mandatory project meetings • Implement minutes & task responsibility monitoring forms • Implement development & cash flow monitoring tools

10. Understanding the Owner’s Role(continued) Form Your Team – Internal Initially • Name an internal project lead • Bring together BOTH operating & clinical experts Ongoing • Maintain consistent team membership • Free-up staff from some day-to-day activities • Support the lead & team

11. Understanding the Owner’s Role(continued) Form Your Team – External • Consultants do: • Supply experience, expertise & effort • Ground your dreams in reality • Consultants don’t: • Substitute for your decision-making

12. Understanding the Owner’s Role(continued) Form Your Team – External • Select the best consultants you can afford • Select through a considered, arms-length process • Engage them at the earliest appropriate time • Engage the Project Manager first • Understand what’s in a name: Project Manager v. Owner’s Representative v. Construction Manager

13. Project Manager Manage the Budget Manage the Schedule Ensure Other Consultants Produce & in a Timely Way Maintain Communication-Flow & Decision-Making Other Consultants Provide Technical Information Make Informed Recommendations to Owner Produce “the Work” Understanding the Owner’s Role(continued) The Role of External Team Members

14. When to Engage Consultants(as relevant)

15. Understanding the Owner’s Role (continued) Direct Your Team – Make Decisions • Get the information you need • Admit when you need help • Expect answers/results • Make timely project-related decisions • Enforce deadlines – especially those that apply to you • Stick to decisions made

16. The What & When of Owner’s Decision-Making

17. Understanding the Owner’s Role(continued) Develop & Maintain Goodwill • Maintain good team dynamics – Happy people do good things • Establish clear lines of responsibility • Be consistent • Shoulder your own risk

18. Understanding the Owner’s Role(continued) Communicate with Stakeholders • Engage Stakeholders BEFORE You Need to Ask for Money • Keep Them Well Informed About Your Progress • They can help you develop solutions

19. Understanding the Owner’s Role(continued) Manage the Flow of Funds • Fundraise, fundraise, fundraise • Line-up funding before moving to the next development phase • Understand funders’ requirements & restrictions to align your budget & funding sources • Pay your consultants throughout development

20. Understanding the Owner’s Role(continued) Remember This Anticipate & Recognize Roadblocks By: • Understanding the development process & engaging experts early • Establishing clear expectations & responsibilities to make sure everyone does their job, even YOU • Getting real progress info & acting on “problems”

21. Understanding the Owner’s Role (continued) Remember This, Too Be bold, but be apprehensive! • Delegate the work, but not the Project • Monitor, monitor, monitor • Don’t Waffle – particularly in resolving problems • Keep options finite – endless analysis causes delays • Delays increase costs • Stick to decisions made – changes at later stages increase costs

22. The Cost Impact of Owner’s Changes

23. Q & A

24. For More Information Emily Chen Project Finance Manager P: (212) 437-3918 E: echen@pcdcny.org Nancy Lager Director of Project Planning P: (212) 437-3922 E: nlager@pcdcny.org Tom Manning Director of Capital Access P: (212) 437-3920 E: tmanning@pcdcny.org Cover Photos: Addabbo Family Health Center – Initial & Replacement Main Center

25. Excellent Healthcare in Every Neighborhood 22 Cortlandt Street, 12th FloorNew York, NY 10007 P: (212) 437-3900 l www.pcdcny.org