How to Estimate and Bid Design Build Projects September 13, 2016

Transcription

1 How to Estimate and Bid Design Build Projects September 13, 2016

2 Agenda Description of Central 70 Project Who are Kiewit-Meridiam Partners Description and benefits of the Design-Build Delivery Method Guiding principles, tools and processes for estimating Group exercise - mock estimate/bid Bid results Bidding strategies and philosophies Design Management / Review Process KMP process moving forward 2

3 Description of Central 70 Project 3

4 Central 70 Project Restripe Lowered Section Full Reconstruct Widening w/ mill and overlay O&M Limits Beyond Construction I-25 to Brighton ~1.25 Miles Brighton to Colorado ~1.5 Miles Colorado to Quebec ~2 Miles Quebec to Chambers ~5 Miles Chambers to Tower ~2.2 Miles 4

5 Who are Kiewit-Meridiam Partners 5

6 Team Organization Project Agreement Developer Equity Members 60% 40% DB Contract O&M Contract Self-Perform Lead Contractor Interface Agreement Lead Operator Life cycle responsibilities Design Contract Lead Engineer Design Sub 6

7 Who is meridiam? Meridiam: A global investor and asset manager Has a business model built exclusively on equity financing of projects Meridiam develops, finances, builds and manages various types of projects: Transport infrastructure Social infrastructure Public buildings Utility networks and services 7

8 Who are PB, Jacobs and Jorgensen 8

9 Who is Kiewit? One of North America s largest and most admired engineering and construction companies Consistently among the top 10 of Engineering News-Record s Top 400 Contractors FORTUNE 500 company with revenues over $9 billion 9

10 International Presence but Locally Centered Central District Heavy Civil Mass grading Drainage Bridge construction Paving Rail Current Local Projects I-225 Rail Line Denver VA Medical Center US 34 Permanent Repairs WISE Water Treatment RiNo IC Contract Kiewit Building Group Commercial Buildings Medical Office Buildings Special Use Facilities Higher Education Office Current Local Projects I-225 Rail Line Denver VA Medical Center Olde Town Transit Hub SCL Hospital Aurora SCL Hospital Northglenn UCCS Mass Electric Transit /Light Rail Signal, overhead contact systems (catenary) Traction power Communications systems Current Local Projects I-225 Light Rail RTD On Call Services 10

11 Description and Benefits of the Design- Build Delivery Method 11

12 Why Do a Workshop? Market is trending towards Design-Build Project Delivery Method 87% of Kiewit s current backlog of work are Design- Build Projects We need subs/suppliers to work with us on these projects We want to provide training to help small subcontractors build capacity to become more competitive We have received feedback that subs/suppliers are not comfortable with Design-Build estimating Goal - Understand the Design-Build estimating and bid process 12

13 What is a DBFOM? Overview DBFOM: Design Build Finance Operate and Maintain CDOT maintains ownership of the Project All aspects of procurement are transferred to the private sector During Construction, the Developer is paid milestone payments for a portion of construction costs Over the remaining life of the Project, the Developer is paid performance payments (i.e. fixed yearly fee) 13

14 What is a DBFOM? Benefits Single point of procurement Budget certainty for the State: CDOT knows exactly how much the payments are for the life of the Project Workforce Opportunities: The Developer will utilize many services from local businesses and provides hundreds of jobs over the 30 year term Cost Certainty: The Developer has increased responsibilities for design, construction, maintenance, and rehabilitation limiting the risk of cost overrun 14

15 Team Organization Project Agreement Developer Equity Members 60% 40% DB Contract O&M Contract Self-Perform Lead Contractor Interface Agreement Lead Operator Life cycle responsibilities Design Contract Lead Engineer Design Sub 15

16 Types of Project Delivery Methods - DBB Traditional - Design Bid Build Separate design and construction firms Projects are fully designed before released for bid Bids are on known scope of work Construction schedule already determined 16

17 Types of Project Delivery Methods DB Design-Build Design-Build: a single entity is responsible for both designing and building the project Projects are designed to initial levels usually 30% Bids are made on projected design Construction schedule determined as design is developed 17

18 Why Do Owners Use Design Build? Traditional Design- Bid-Build Benefits Orderly progression of work Multiple, competitive procurements Substantial design control by Owner Risk/Disadvantage Increased project delivery time Final total cost uncertainty Multiple contracts managed by Owner Design- Build Faster completion schedule Project risks assumed by designbuilder Innovation through designer / constructor cooperation Cost savings - constructability and value engineering Improved Quality and Project Performance schedule and budget 18 Limited design control by Owner Fixed project definition early

19 Guiding Principles, Tools and Processes for Estimating 19

20 Design-Build Estimate Tools / Processes Know what you are estimating Have the plans and a clear understanding of the scope Have your estimating data ready Direct labor costs / labor escalation Staff / overhead / office storage Insurance / contingency / bonding Material pricing / escalation / sales tax Risk analysis Equipment pricing / taxes Fuel / taxes Other subcontractors 20

21 Group Exercise 21

22 Estimating / Bid Exercise Estimating Wall at 30% Design As a team develop estimate Drawings and takeoffs provided Pre-Bid Meeting after 15 minutes Use provided sample estimating reference information Submit Bid in 55 minutes! 22

23 Estimating / Bid Exercise 23

24 Bid Results 24

25 RFC Drawing Review / Estimate Review What additional/different questions would you have asked at the pre-bid conference? Did you miss something? Did you include items you did not need? Did you include the appropriate amounts for Contingency Escalation Profit 25

26 Bidding Strategies and Philosophies 26

27 Bidding Strategies / Philosophies Bid from accurate past costs Best value vs. low price Risk sharing Escalation tied to applicable indexes Early procurement of materials or equipment Knowing the market How much fee to apply How many other bidders there are Who is your competition Bring your Resume sell yourself Safety record Quality program Schedule performance history Tenure of team Level of commitment to job 27

28 Design Management / Review Process 28

29 Design Management / Review Process Post Bid Design review process Constructability reviews Attend pre-bid meetings and open houses Attend task force meetings with Designer+Owner+City+GC Provide input that will facilitate your work Provide comments on drawings and specification progress packages at 60% and 90% Review quantity takeoff of drawings to ensure design growth is controlled Review specified products to ensure you budgeted for them Provide pricing for change orders 29

30 KMP process moving forward 30

31 CDOT s Current Project Schedule Fourth Draft RFP, October 2016 ROD, January 2017 Final RFP, March 2017 Technical Proposal Due, May 2017 Financial Proposals Due, July

32 KMP s Projected Timeline 32