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Over the course of the Propositions S & N construction bond program, the District has utilized various construction delivery methods. Under Design/Bid/Build, plans and specifications are completed by an architect, and then advertised for bid. CMMP provides the District greater flexibility than Design/Bid/Build in selecting the firm which is ultimately responsible for delivering the project. In a Design/Build (D/B) project, the contractor and architect form a single entity to deliver a complete project based on a conceptual plan provided by the District. Lean Construction principles, a production management-based approach to project delivery where work is structured throughout the process to maximize value and reduce waste, are integrated into all projects.
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CMAA-San Diego Panel: Alt Delivery Methods
5/26/11
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CMAA Workshop May 26, 2011
Alternative Delivery Methods What do Public Owners Want?
CMAA Alternative Delivery Workshop
Bill Prey Principal Engineer San Diego Association of Governments (SANDAG))
37 years civil engineering experience - public and private SANDAG LOSSAN Corridor Director – Managing 21
major capital projects valued at over $800 million SANDAG Construction Engineer - Managed the
construction of seven major Light Rail Transit (LRT) with total value over $1 billion
CMAA-San Diego Panel: Alt Delivery Methods
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Presentation Overview
Alternative Delivery Methods
DBB – Design, Bid, Build
DB – Design Build
CMAR – CM at Risk
CMMP – CM Multiple Prime
IPD – Integrated Project Delivery
PPP – Public Private Partnerships
Presenters
CMAA-San Diego Panel: Alt Delivery Methods
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CMAA Alternative Delivery Workshop
21 years with Sundt 38 years in Alternate Project Delivery 17 years experience in Design/Build Design-Build Institute of America, Western Pacific
Region; Director and Legislative Committee Chair Associated General Contractors of America, San Diego
Chapter; Director
Jon Wald Senior Vice President Sundt Construction
Jim Gillie Director, Const. Services UCSD)
CMAA Alternative Delivery Workshop
UCSD Facility Design and Construction Department since 2000
Manages $2 billion design and construction work at main campus, east campus Health Sciences facilities, Hillcrest Hospital and Scripps Institution of Oceanography
22 years with Blake Construction Co.
CMAA-San Diego Panel: Alt Delivery Methods
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CMAA Alternative Delivery Workshop
Oversees $1.5 billion construction bond program, facilities services, and police functions
Executive Dir. of Facilities for SD Unified School District Implemented $1.51 billion Proposition MM capital
construction bond program and managed $131 million annual physical plant operations
David Umstot, PE Vice Chancellor, Facilities Mgmt. SD Community College Dist.
Manages Design Build and P3 pursuits for Flatiron in the West
19 years experience managing heavy civil projects in the Western U.S.
Pursuit Manager for Presidio Parkway Project, San Francisco – 1st Infrastructure P3 in Western US
CMAA Alternative Delivery Workshop
Darren Blume Business Development Mgr. Flatiron West, Inc.
CMAA-San Diego Panel: Alt Delivery Methods
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CMAA Alternative Delivery Workshop
Dan Fauchier Executive Vice President The ReAlignment Group)
35 years in design and construction project management and consulting
Lean Construction trainer and mentor to owners, designers and builders
Alignment Partnering / ReAlignment facilitator
Provocateurs
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CMAA Alternative Delivery Workshop
Afshin Oskoui, PE City Engineer City of San Diego
25 years civil engineering and construction experience in public works
Responsible for the oversight of the City’s Land Development Permit Process and 10-year $7.2 Billion Capital Improvement Program
Lead development of City’s first and most comprehensive Design-Build, and CM@R project delivery methods
CMAA Alternative Delivery Workshop
Mark G. Budwig Partner McKenna Long & Aldridge LLP
Practiced exclusively construction law for 25 years Public (Cal. & Federal) and Private Projects Drafted, arbitrated and litigated all forms of contract
delivery methods Former Licensed Civil Engineer (CA)
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Project Delivery Methods
Design-Bid-Build
Bill Prey SANDAG
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DDB Sequential Phases
OWNER
DESIGNER
OWNER
CM DESIGNER BUILDER
Construction Phase Design Phase
Summary of DBB
Construction
Time May take longer & cause late news on cost
Owner
GC
Designer
S U B S
Less Collaboration
CM
Design Bid
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DBB: What’s Working, What’s Not-Working
Working: Complete design – no surprises Less expensive on bid day Increased perception of fairness Avoids preferential awards
Not-Working: Comfort in mediocrity Risk for builders Provides less quality Detracts from relationship building
Jon Wald Sundt Construction
Design-Build
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Design-Build
Selection Process: Qualifications Only (QBS)
Requires no bridging documents Price Only
Requires extensive bridging documents Best Value (BV) Combination of Technical Score and Price
Requires limited bridging documents (primarily scope and program)
Design-Build
Qualifications Only (QBS) Requires no bridging documents Example: San Diego Airport Green Build Terminal
2 Expansion
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Design-Build
Price Only Requires extensive bridging documents Example: Most Federal Projects, Warriors in
Transition, Fort Bliss, TX
Design-Build
Best Value: Combination of Technical Score and Price Requires limited bridging documents (primarily
scope and program) Example: SD City College Math & Social
Sciences Building
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What it takes: Trust Collaboration Win-Win-Win Attitudes
Our experience: The greater trust, collaboration and win-win-win you have, the greater success you will experience.
Design-Build
Design-Build
Advantages (owner perspective): Cost control Schedule control Not responsible for design Disadvantages (owner perspective): Loss of direct design relationship Need for early, comprehensive project definition Re-training of staff
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DB: What’s Working, What’s Not-Working
Working: Trade contractors involved in construction drawings Design changes are within budget Schedule advantages Owners must be disciplined about change
Not-Working: Owner’s perceived loss of design control Cost overruns Unclear bid documents Potential public skepticism Some CA Public agencies do not allow qualifications-based
selection of Design-Build team
Jim Gillie University of California, San Diego
Construction Manager at Risk
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CM/GC Method
OWNER
DESIGNER BUILDER (CM/GC)
DESIGN & CONSTRUCTION PHASE
CM at Risk at UCSD
CA Department of Industrial Relations – Prequalification: a convenient coincidence?
Prequalification is a key to the success of all our projects AND is required for alternate delivery methods
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CM at Risk at UCSD
Eleanor Roosevelt College UCSD’S First CM at Risk Project
Prequalification: 3-Step Process
Level 1 Step 1: Advertisement
RFQ Mandatory Meeting Submit Qualifications
Step 2: Invitation to interview Interview Requirements
Level 2 Step 3: Prequalification Acceptance letter
RFP Bid
What exactly is being bid?
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Prequalification: Criteria
Certification (Pass/Fail) Attendance at mandatory meeting – (Pass/Fail) Surety Declaration*** - (Pass/Fail) Insurance Declaration*** - (Pass/Fail) Construction Experience – MAJOR
DETERMINING FACTOR! 3 – 5 comparable projects in last 10 years
Staff Experience – MAJOR DETERMINING FACTOR! Minimum Staff Requirements – (Basis of Bid)
Prequalification: Criteria (cont.)
Safety Program Quality Control Program Business Construction Revenue – (Formula) Mediation, Arbitration, Litigation, Disciplinary
Record Preconstruction Services Requirements
And non-scored estimate of Precon. Services
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Preconstruction Services
Estimates – DD, 50% CD, & 100% CD Preliminary Schedule – for sub-Bids also Constructability Review Bid package strategy Bidding sub-trades General Requirements
Approval for Construction
CM @ Risk Contract: A Two-Part Contract
Part 1 – CM (Consulting) Contract
Part 2 – Construction Contract
Cal IT²
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The CM @ Risk Contract
The CM @ Risk Contract: Part 1 Consulting agreement to perform the specified
preconstruction services
The CM @ Risk Contract: Part 2 General construction contract Plans and specs
Computer Science Engineering Building
CM @ Risk
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Basis of Award of CM @ Risk Contract
Prequalified firms bid the Fee & GC to manage the construction
This includes every cost the firm will incur to schedule, coordinate, manage, and administer the construction contract, i.e.: All field and office overhead & profit, staff, and
whatever supplies, materials, equipment, and utilities needed by general contractor to perform its work.
Basis of Award of CM @ Risk Contract
The bids do not include the following costs: The cost of the actual construction work. The General Requirements needed by the project
or the trade contractors
Examples: Do include in bid general contractor’s trailer Do not include project fence or dumpsters Do include all utility costs for GC’s trailer Do not include utility costs for project
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Transition from CM to Construction Contract
If the sum of the general contractor’s bid Fee & GC plus the sum of the trade bids plus the cost of General Requirements is within the budget and the project is scheduled to complete within the Contract Time, then…..
The construction “option” in the agreement is exercised, the costs of the trade bids and General Requirements are added to the agreement by Contract Amendment, (the Fee and GC bid amount are specified in the agreement) and the general contractor has a complete contract.
The amount paid for preconstruction services is established by UCSD and known by the General Contractors prior to bidding the Fee & GC
This amount is fixed and will not change unless the scope of the preconstruction services are changed by the University
If the established amount is insufficient then bidder should consider increasing Fee & GC bid to cover it
Preconstruction Cost Formula
Payment for Preconstruction Services
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CM @ Risk
Moores Cancer Center
CMAR: What’s Working, What’s Not-Working
Working: Qualifications-based selection allows contractor to
collaborate with subs Assembles team of experts Owner maintains control over design True cost known up front
Not-Working: Doesn’t guarantee project completed within budget Requires owner discipline
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Dave Umstot, PE San Diego Community College District
CM Multi-Prime
Owner retains CM based on qualifications to act as builder
Owner holds all trade contracts
Typically 20-40 trade contracts
The CM coordinates with project manager, superintendent and provides General Conditions
CMMP – What is it?
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Match builder to project
Factor past performance into selection
Select best management team available
Reduce redundant management costs
CM fee is typically equal to GC OH&P at bid
Change order rates typically trend 50% lower than traditional delivery
CMMP – Why Do It?
Program Level Sum of Contract Sum of Approved Changes Percentage
CM Mul&-‐Prime $ 125,859,889 $ 2,683,649
2.13%
Hard Bid $ 125,976,590 $ 10,575,169 8.39%
Change Orders by Delivery Method
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Consider delivery of complicated MEP or skin systems via design/build as part of larger projects
Integrate shop and fabrication drawings into the final design
Resolve any spatial conflicts in model prior to construction
Design/Build of Systems with CMMP
City College Mesa College Miramar College Con;nuing Ed. Career Technology Center Rudolph & SleAen $55.7M (Completed)
Science Building Rudolph & SleAen $47.6M
Arts/Humani;es and Business Tech Bldgs. Turner Construc;on $78.3M
Allied Health Educa;on & Training Facility McCarthy Builders $24.9M (Completed)
Student Services Center PCL Construc;on $38.5M
Math and Science Building McCarthy Builders $105.2M
Humani;es & Arts and Math & Business Buildings Sundt Construc;on $29.4M (Completed)
Library Learning Resource Center Sundt Construc;on $33.9M
Cafeteria/Bookstore & Student Services Center CW Driver $30.5M
Linda Vista Campus PCL Construc;on $16.9M
Cesar Chavez Campus Rudolph & SleAen $38M
North City Campus Barnhart Balfour BeaAy $21.3M
Educa;onal Cultural Complex Wing Expansion CW Driver $14.5M
$520 Million in CMMP Hard Cost Budgets
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50,000 SF, three-‐story building,
cer&fied LEED Gold. Awarded
CMAA 2010 Project of the Year
Project Budget: $27.4 million
Comple&on Date: Sept. 2009
Change Order Rate: 8.8% (included owner-‐requested coffee kiosk)
Completed CMMP Projects: Allied Health Building
88,000 SF, five-‐story building, cer&fied
LEED Gold. Includes parking structure with
approximately 700 spaces. Winner of CA
Higher Educa&on Sustainability Conference
award for Best Overall Sustainable Design.
Project Budget: $63.1 million
Comple&on Date: April 2010
Change Order Rate: 0.6%
Completed CMMP Projects: Career Tech Center
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Humani&es & Arts provides 45,000 sq. b. of new classroom and laboratory space.
Math & Business provides 45,000 sq. b. of new classrooms, computer labs, and a mathema&cs research center.
The dual classroom building project was named CMAA 2011 Project of the Year.
Project Budget: $32.8 million
Comple&on: December 2010
Change Order Rate: 3.7%
Humanities & Arts and Math & Business Bldgs.
CM Multi-Prime: What’s Working, What’s Not-Working
Working: Allows owner to bid out smaller components Provides flexibility to owners Several school districts seem to like it
Not-Working: Larger owner administrative burden Potential lack of single overall project manager Multiple primes must be scheduled and coordinated Loss of efficiency due to lack of coordination
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Dave Umstot, PE San Diego Community College District
Integrated Project Delivery
•hAp://www.aia.org/ipdg
Owner’s Perspective: IPD
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IPD: What is it?
Project delivery approach that integrates people, systems, business structures, and prac&ces to op&mize project results, increase value to the owner, reduce waste and maximize efficiency of project delivery.
Dis&nguished by highly effec&ve collabora&on among the owner, prime designer and prime constructor commencing at early design through project comple&on.
Waste in Construction
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BIM! BIM! BIM!
Build it in model space before you build it in real space
Reduce conflicts using Revit and NavisWorks clash detec&on
Energy efficiency evalua&on
Walk the end user through the space
With schedule integra&on, a 4-‐D model can be developed
With cost es&mates, a 5-‐D model can be developed
Builder’s Perspective: Internal Clash Survey
Building Construction Mechanical piping hits cable tray and fire protection piping in ceiling space
Survey Average Results Man-hour Savings = 61 Delay Savings = 3 Days Cost Savings = $30,349
Number of Clashes Shown in Example = 9 Savings per Clash Resolved = $3,372
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Early Attitudes Towards Lean Construction
We’ve tried that.
We already do that.
We don’t need it. It won’t work here. We don’t build cars.
We’re different.
The other guy needs it, not me.
We’re doing well, so why change?
RFI Value Stream Mapping
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Cont. Education: Major Projects 2010-11
Key Points
Reducing workflow variability Improves total system performance Makes project outcomes more predictable Simplifies coordination Reveals new opportunities for improvement
Point speed and productivity of a single operation doesn’t matter – throughput does
Strategy: Reduce variation then go for speed to increase throughput.
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Local Optimization
Playing the Capacity Utilization Game Workflow losses are real, lead to adversarial rela&ons and can not be demonstrated by delay claims, so…
Trade contractors protect themselves by adding con&ngency and holding back labor to keep u&liza&on high
This further reduces workflow predictability and increases project risk
By their/our ac&ons, we shib that risk along.
Why Pull Planning
Without Pull Planning: Only half the tasks on weekly work plans are
completed as planned So called “project control” is after-the-fact
identification of variances, not proactive steering toward objectives
Projects are a commitment-free zone; promises are neither requested nor made
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Darren Blume Flatiron West, Inc.
Public - Private Partnership
P3 Legal Structure
P3 Delivery Model:
Owner
Designer- Builder
Operations & Maintenance
Concessionaire/ SPC
Debt Provider
Equity Provider
DBFO Contract
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Payments
Payment from Owner to Concessionaire:
25,30,50,90 year payment periods (monthly, yearly, milestones, etc.)
Two Primary payment mechanisms….
Availability type payments (i.e. mortgage)….only if it is “available”
Usage/Traffic Risk (who takes the risk of ridership?)….Toll or Shadow toll
Payments (cont.)
Any combination of the above
Incentives/Disincentives payments…. QA/QC
Lane Rental
Safety performance
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Cost Structure
PPP: What’s Working, What’s Not-Working
Working: Owner doesn’t need large initial investment Maximizes innovation and creativity Schedule Savings Allows the US to play catch up All the same advantages of Design-Build
Not-Working: Understanding of Revenue risk and that risk transfer Must be careful about the residual value of asset after transition to
owner’s possession Procurement documents are complicated, understanding of how to
get what you want Requires more sophisticated owner’s representation on the legal and
commercial side
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Project Delivery Methods
Summary
Advantages and Disadvantages
Advantages Disadvantages CM at Risk CM provides preconstruction
services Design completed prior to
State funding excludes preconstruction services
bidding Costs more on bid day Sub trades prequalified Good Owner-Architect-Contractor
relationship
Design/Build D/B provides preconstruction services
Design NOT completed prior to bid
Sub trades prequalified Cost Effective - Awarded on
Cost/ Point basis
Exact project components loosely defined
Good Owner-Architect-Contractor relationship
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Advantages and Disadvantages
Advantages Disadvantages Bid-Build Design completed prior to bidding No preconstruction
services Lowest cost on bid day Sub trades NOT
prequalified Owner-Architect-
Contractor relationship may be stressed
CM/ Multi-Prime
CM provides preconstruction services
Owner at greater risk
Sub trades prequalified CM Selected
Advantages and Disadvantages
Advantages Disadvantages Public Private Partnerships
A vehicle to fund projects now Added pursuit costs (.5 to 1%)
Schedule Savings Owner control is decreased
Sole Source of Finance, Design Construct and Operate (1 stop shop)
Complicated procurement documents, defining scope at bid time
Claims reduced; Design Conflicts
Lack of Legal precedence
Major Project Efficiencies Potential for High Risk – High Reward
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Where Do We Go From Here?
Educate ourselves on relative benefits, uses and proven “track record” of alternate delivery methods
Educate the broader community about benefits, uses and track record
Explore legislation to provide all public agency owners flexibility to select which method works best for each project
Continue to educate public agencies, designers, builders in how best to collaborate on projects for the best benefit of the public
Dan Fauchier, Facilitator
Discussion