KYTC uses consultants when it lacks in-house resources and/or expertise to complete work. Collaborating with consultants helps the Cabinet deliver more projects on schedule and with greater technical expertise. Successful completion of projects is only possible if the Cabinet and consultants build partnerships founded on strong cooperation, robust communication, and mutual support, trust, and confidence. An understanding of how to effectively manage consultants helps KYTC Project Managers (PM) deliver projects.

This series of articles reviews key activities associated with consultant management, including:

• Differentiating PM responsibilities and consultant responsibilities to ensure the project purpose and need is met
• Determining the scope of work and understanding contract documents
• Advertising for professional services and selecting consultants
• Managing consultants as they deliver project requirements

Additional guidance can be found in the Professional Services Guidance Manual and the Highway Design Guidance Manual

The first and perhaps most important dimension of delivering a project is determining the scope of work and communicating the level of effort to deliver the scope to prospective consultants. This establishes expectations related to the project’s schedule and deliverables and is used to determine the approximate consultant fee.

Definition: The scope is the sum of the products, services, and results delivered by a project (Project Management Body of Knowledge, p. 561). The PM develops the scope. The following information should be included in a project scope (Highway Design Manual, HD-202.6.3):

• Project type, description, and limits
• Aspects of roadway performance that need improvement
• Draft purpose and need statement
• Roadway characteristics
• Options that may be considered
• Design criteria
• Proposed access control
• Project estimate, programmed budget, and possible funding types
• Potential environmental impacts and constraints
• Right-of-way requirement
• Utility impacts
• Constructability and maintenance of traffic
• Number and types of structures
• DNA Studies, Planning Studies, or other relevant Available Studies
• Necessary prequalification services
• Schedule of proposed deliverables and milestone dates
• Area map

Establishing a complete and clear scope of work before initiating a project ensures KYTC and the consultant understand expectations and can accomplish project goals under the expected timeline while reducing the potential for misunderstandings and conflicts.

The initial scope for most capital improvement projects is typically established in the Six-Year Highway Plan (SYP). The SYP outlines a project’s expectations, funding, schedule, and budget. A project in the SYP is commonly referred to as a promise.

On some projects the scope of work may support the use of single or multiple statewide contracts. Whether statewide contracts are used typically depends on the project schedule and budget. If the schedule is limited, statewide contracts let the PM issue notice to proceed for a consultant faster. However, there are limitations that must be considered as explained in the HKP article Utilizing Statewide Consultant Contracts.

The scope of work in the consultant advertisement elaborates on the SYP’s initial scope found. It typically details engineering services requested by KYTC. Examples of deliverables within a preliminary engineering and environmental services project may include:

• Preliminary Line and Grade plans
• Existing Ground Survey
• Conduct public involvement
• Traffic analysis
• Develop construction cost estimates
• Identify right of way and utility impacts
• NEPA documentation
• Develop Design Executive Summary
• Prepare Drainage Folder/Advanced Situation Folder

A best practice is to include a statement in the advertisement that indicates the project can be advanced to final design once preliminary engineering is finished via a contract modification. This affords the project development team (PDT) the flexibility to continue with the current consultant, perform work in-house, or advertise for a new consultant to deliver the final design deliverables.

Many sources of knowledge are needed to develop an initial scope. The PM must anticipate what types of expertise are required to deliver the final product. For example, on a typical roadway design project, a consultant specializing in roadway design is needed.  KYTC will also likely require expertise on geotechnical issues, environmental concerns, traffic, and structures to deliver all aspects of the project. The PM must communicate with different user divisions and subject-matter experts (SMEs) to determine if their expertise will be required.

In-house capacity and expertise dictate how KYTC completes the work. Options include:

• Performing the work in-house
• Utilizing a division’s on-call contracts (statewide contracts)
• Including work in the project advertisement

Some scope items may be included within the initial advertisement as contingent prequalifications. These prequalifications are not required within the initial proposal as it is uncertain as to the extent practicable if they are necessary. Should these services become necessary during the delivery of the project in this or future phases, the selected consultant team must obtain the required qualifications before providing those services or bring on a prequalified subconsultant at that time.

As project complexity and difficulty increases, PMs should consider whether to retain other types of professionals. Decisions about what forms of expertise are needed should be made in consultation with user divisions and SMEs. For example, communication with the public is critical on many projects. If the PDT decides a project warrants special attention to communication (e.g., social media, outreach), KYTC should consider using public involvement and/or communication professionals to leverage the power and reach of different media outlets. Advertisements must describe all the specialized engineering resources needed (e.g., traffic modeling and simulation, visualization techniques, tolling expertise). Any prequalified service which is not included within the advertisement will not be permitted on the contract.

Once the KYTC PM and the PDT are in place and a consultant has received a notice to proceed, KYTC’s foremost goal is delivering the project. The PM is responsible for delivering the overall project. Consultants are team members who deliver the scope of work agreed upon in their contract and must appease the PM. A PM should not ask consultants to deliver more effort than they are obligated to under the terms of their contract. A good consultant provides deliverables on the schedule at the level of quality that has been agreed to in the contract.

Clear and consistent communication between the PM, PDT (including all various aspects, i.e., environmental, structural, planning, traffic, etc.), and consultant is imperative for ensuring all parties deliver products on schedule and meet project milestones. Managing milestones is a key part of delivering projects.

Definition: A milestone is a marker in a project that signifies a change or stage in development. Milestones are powerful components in project management because they show key events and map forward movement in your project plan. (Source: teamgantt.com)

Milestones for preliminary roadway design include:

1. Submission of Preliminary Line and Grade Plans (PL&G)
2. Hold PL&G meeting
3. Submission of PL&G report
4. Submission of critical cross sections to Geotech
5. Submission of Design Executive Summary
6. Submission of Preliminary R/W plans
7. Approval of NEPA document

PMs can use one of the milestone lists KYTC has developed, but they also have the flexibility to add/subtract specific milestones. However, PMs should use project time management tools (e.g., Gantt charts) to schedule and track project development. Consult the HKP Knowledge Book, Time Management for Highway Project Development, for information on the critical path method (CPM). The CPM helps PMs direct resources toward particular work activities and report progress to the PDT and KYTC management. For more information, see Project Time Management: Build Your Team.

A good resource for managing consultants and milestones is the Consultant Monthly Report (CMR).  Consultants submit this report each month, and it is attached to all pay estimate submissions. The first CMR for a project must include a milestone page which lists all milestones specified in the consultant’s contract along with departmental obligations and other items on the project’s critical path (e.g., timeframes for outside review). A milestone page should also be included in the CMR when milestone dates are changed or have been met. Milestones must specify a date, unless the milestone is not required — in which case, indicate the date is not required (NR).

The consultant provides statements that report progress and mentions actions required of KYTC (e.g., Conceptual Design Report submitted June 10 – awaiting approval.) PMs must issue a response to this information within one week of receiving it and indicate actions the consultant needs to perform. A chronological order of events should be provided in the History and Project Documentation listing at the back of the CMR. If necessary, the consultant or the PM can include attachments on additional pages. Once both parties address outstanding items, the PM approves the CMR and sends copies to the consultant, location engineer, and relevant KYTC divisions and branches (e.g., submit the discussion of environmental issues to the Division of Environmental Analysis).

The Cabinet PM must prioritize building a strong relationship with the consultant PM. A good relationship — combined with direct and routine communication — is just as valuable as a CMR for managing consultants. Maintaining good communication is critical for ensuring progress is made, hitting milestones on schedule, and determining whether KYTC staff are meeting their responsibilities.

Cabinet PMs simultaneously oversee many projects, which makes it challenging for them to provide the level of attention individual projects need. Making the consultant responsible for as much of the project as possible is an advantageous strategy. However, this may not be possible if KYTC needs to use in-house resources. A reliable consultant PM facilitates the Cabinet PM’s job and works to ensure projects are delivered on time, within budget, and at the expected quality as promised. The consultant PM must understand their responsibilities and demonstrate they can deliver on their obligations. The Qualifications Based Selection (QBS) process helps ensure this occurs. For more information, see Section 6, Consultant Evaluations, below.

The consultant routinely submits pay estimates as progress is made (typically every month) using the Engineering and Engineering Related Services Pay Estimate (TC 40-408) form. The Personal Service Contract (PSC) invoice form must be submitted with each invoice. Specific pay estimate instructions can be found on the Division of Professional Services website.

The Consultant Monthly Report is attached to the pay estimate. The original contract and any subsequent contract modifications specify maximum payment percentages at corresponding project milestones. The PM is responsible for determining if the pay estimate is consistent with progress described in the report and project milestones. If the monthly report notes outstanding issues, the pay estimate can be approved based on the work completed if the work pending (per the monthly report) is not reflected in the consultant’s pay estimate. If the pay estimate is consistent with the CMR and PSC, the PM emails the pay estimate and supporting documentation with appropriate signatures and statements of approval to KYTC’s consultant estimate accounts group for further payment processing.

Throughout project development PMs should communicate performance-related concerns or issues to the consultant. This gives the consultant the opportunity to adjust and improve. PMs formally evaluate consultant performance at designated milestones (e.g., conceptual design approval, joint inspection approval, contract plan submittal). To facilitate this continual communication and evaluation, PMs may reasonably expect to receive partial products and intermediate design details in formats that allow timely review and facilitate feedback. Each division has its own methods for evaluating consultants. The location engineer and PM, possibly with input from the SMEs, complete independent evaluations for consultants working in different disciplines and at various stages of project development. When completing evaluations consider items such as consultant pay estimates and monthly reports, the Design Executive Summary, Value Engineering Studies, quality and timeliness of required submittals within the project budget, and meeting documentation. Evaluation forms and instructions are available on the Division of Highway Design’s intranet website.

The evaluation’s comments section offers a place for the PM to justify and contextualize their scores (e.g., degree of project complexity). Once the consultant receives the evaluation, if they disagree with the assessment, they may request an appeal within 30 days through the director of the Division of Highway Design. The director then discusses the evaluation with the PM, location engineer, and/or appropriate SMEs to determine whether a reevaluation is warranted. If applicable, the director communicates reevaluation results to the consultant.

Performance evaluations are also submitted for statewide contracts. Depending on the type of contract, they may be completed at the conclusion of each Letter Agreement or at the conclusion of the project. These scores can provide valuable feedback to the consultant and greatly assist a future selection committee by demonstrating the strength of incumbent consultant(s) currently providing services on the identical contract

For projects with construction lettings, the closeout process may begin when the construction contract is awarded. On projects with different final deliverables (e.g., bridge inspections), the closeout process begins with the agreed-upon final submittal.

Some contracts may automatically close based on their end date within the eMARS accounting system which is one year beyond the final milestone. Contracts will also close each fiscal year if the remaining balance in eMARS is less than $1000.

Once the project is complete, the PM submits final pay estimates with documentation to the Location Engineer so that the LE can complete the Consultant Closeout Form. Through this form they are checking that all deliverables have been submitted and that all necessary approved documents (Final Drainage folder and Pavement Design folder) are located within ProjectWise. The LE reviews and submits the final pay estimate to the Division of Professional Services for final closeout.

If remaining encumbrances are not spent, the consultant should send a letter that states all work is complete and that no additional charges will be made. This may not apply to most lump sum contracts but is more frequent in cost-plus a fixed fee, estimated unit price, or specific rate of compensation contracts. For example, if a project’s geotechnical work is not billed at 100 percent in a lump sum contract, a copy of the final geotechnical project charges and work performed should be submitted with the letter.

If the budget has a negative balance the PM must submit a funding request to the Division of Program Management before the final payment can be made. The funding request should be enough to cover the negative amount. This situation typically arises due to in-house charges because the consultant contract had funding encumbered when contract was signed.  For more information, refer to the HKP article Project Cost Management, Section 4.1 Project Cost Management and the Role of Budgets.

Upon receipt of the final pay estimate, the PM and/or location engineer must submit final consultant evaluations. For project-specific highway design contracts, the consultant’s final rating is the average of PM and location engineer’s scores. The Final Consultant Evaluation is sent to the Consultant along with a letter noting the average rating by the TEBM of the Roadway Design Branch.

The Roadway Design branch also notifies the Division of Professional Services of the scores, that the consultant has completed all project work, and that no further charges are needed. Each statewide letter agreement is reimbursed, although statewide master agreement contracts are not closed until all assignments under the contract are complete. When applicable, PMs should request that the design phase program be closed once payment is made. Before cost plus contracts are closed out, the Division of Professional Services must advise the Office of Audits External Audits Branch Manager to audit the contract for any necessary cost adjustments. Although not required, the Office of Audits also currently provides audits for each lump sum contract. These post-audits help understand trends across the Cabinet and for specific firms, provide a sense of accuracy of previous negotiations, and help negotiate future services. The Division of Professional Services provides specific pay estimate instructions on its website.

Use the following checklist to close out a consultant contract.