Program Management. APWA North Carolina Chapter. Design-Build: Will it Work for You? William Palmieri, P.E.

Transcription

1 APWA North Carolina Chapter Design-Build: Will it Work for You? Program Management William Palmieri, P.E. HDR Engineering, Inc. 695 Atlantic Avenue Boston, MA (512) (m) August 6, 2015

2 William Palmieri HDR Engineering, Inc. Program Management/Procurement Engineering Services Route 3 North Project, MassDOT (D-B) Legacy Parkway, UDOT (D-B) US183-A Project, CTRMA (D-B) SH130 Project, TxDOT (DBM) North Tarrant Express Project, TxDOT (P3) Downtown-Natomas-Airport MOS-1 Project, SRTD (D-B) Access Utah County Projects, UDOT (D-B) Memorial Bridge Replacement Project, NHDOT (D-B) Green Line Extension Project, MBTA (CM/GC) Integrated Premium Transit System Project, DDOT (DBOM) Design-Build Team Experience I-15 Corridor Expansion Project, UDOT (D-B) Eagle P3 Project, Denver RTD (P3)

3 What is Program Management? A program is a group of related projects managed in a coordinated manner in order to obtain benefits and control not available from managing them individually. Program management is the management of a program of projects/contracts, including coordination of project development, contracts, proposal requests, and establishing oversight of financial, technical, and scheduling goals.

4 Program Management D/B Program Development Process Design-Bid-Build Planning Programming Project Development Environmental Analysis Design Right-of-Way Construction Design-Build Planning Programming Project Development Environmental Analysis Design and Construction* *The ROW acquisition can be retained by the Owner or included in the D-B Contract.

5 Program Management D/B Owner Roles Project Development and Environmental Analysis (PDEA) D/B Procurement Design Oversight Construction Oversight and Acceptance Note: Owner s may contract certain general engineering and procurement services to assist the development process.

6 Program Management Project Development and Environmental Approval (PDEA) Perform Alternative and Environmental Analyzes to select a Preferred Alternative and obtain the necessary Environmental Approvals. Develop the Preferred Alternative to a Conceptual Design level, which will used as the Base Technical Concept in the D/B Request for Proposals (RFP). Identify the Project s environmental permitting, mitigation, commitments and requirements for inclusion in the D/B Contract Documents.

7 Program Management Risk Management Risk is the combination of the probability of an uncertain event and its consequences. Risk Management is the effort, processes, and tools that are directed towards: Effective management of risks Assistance in scoping and budgeting for the project, and Making decisions on risk. Risk Management goals are to: Maximizing the probability and consequences of positive risk events (opportunities). Minimizing the probability and consequences of negative risk events (threats). Avoiding unanticipated scope and unexpected construction costs.

8 D/B Procurement Risk Management Risk Management Plan: Risk Identification Qualitative Analysis Risk Response Strategy (and Risk Owner) Monitoring and Control Basic strategies to manage risk: Avoidance Mitigate (or reduce the risk) Transfer Accept

9 PROCUREMENT D/B Procurement DB Procurement Advisors

10 D/B Procurement D/B Procurement Process Procurement of a Design-Builder is usually preformed using a two-phase procurement process: Request for Qualifications (RFQ) - Shortlist Proposers based on their qualifications and experience on similar projects and their financial capability. Request for Proposals (RFP) - Select the Design-Builder based on evaluation of the Proposer s Technical and Price Proposals. o o Best-Value selection is based on ranking Proposers total scores, which combine the technical score with the price score. Low Bid Design-Build Price.

11 D/B Procurement RFP Procurement Documents Instructions to Proposers (ITP), which includes submittal information requirements and forms. Contract includes the Contract, General Conditions and Supplemental Conditions. Scope of Work/Technical Provisions, which specify the work requirements and design criteria for the project. Reference Information Documents (RIDs), including the Base Technical Concept and other available information to assist the Proposers in the development of their proposals and DB price.

12 D/B Procurement Base Technical Concept (BTC) Base Technical Concepts are Conceptual/Schematic/ Preliminary Designs, prepared to establish the box or constraints in the RFP for Design-Builder to work within. Provides the basic configuration of the Project. Is the basis of the Environmental Approvals. Provides the Owner with understanding of the major risks and items associated with the project, which are used when crafting and scoping RFP. Higher costs and delays if not prepared and provided to Proposers.

13 D/B Procurement Alternative Technical Concept (ATC) Pre-Proposal Alternative Technical Concepts allow Proposers, on a confidential basis, to suggest innovative modifications or deviations to technical requirements that would technically improve the project or reduce development costs. Proposers submit ATCs during the pre-proposal phase to obtain the Owner s approval of the deviation. If the Owner approves a Proposer s ATC, the Proposer may incorporate the ATC deviation in their Proposal and incorporate the cost savings into the DB price. If the Owner rejects the ATC, the Proposer must prepare their Proposal based on the Contract Provisions included in the RFP (e.g. BTC).

14 D/B Procurement Procurement A/E Documents Level of design completion for D/B procurement How much design is enough? Too little design Too much design Strike the balance - too little vs. too much Provide common engineering data Value the Proposer s time

15 D/B Procurement Procurement A/E Documents Too little design Too Little Preliminary Engineering Risk shifted to DB Unanticipated results Unknown Owner risks that could impact scope, schedule & budget Added DB proposal cost

16 D/B Procurement Procurement A/E Documents Too Much Preliminary Engineering Higher design costs for Owner Throw away design work Restricts innovation Requires more time by Design-Builder to review and verify Owner s work products. Too much design

17 D/B Procurement Risk Management Owner vs. D/B Balance Risk with Form of Alternative Delivery RISK ALLOCATION ITEM Owner Design/Builder Design ROW Geotechnical Environmental Utilities Schedule Construction High Low High

18 D/B Procurement Scope of Work / Technical Provisions The type of contract delivery will usually determine the level of specificity for the project requirements. Prescriptive requirements specify exactly how something is to be done or the desired product(s). Owners establish design criteria, controls, and requirements. Prescriptive requirements are common on DB contracts. Performance requirements specify or outline the required level of performance. Performance specifications may also capture elements that were not acceptable or conditionally approved. Owners relinquish control to the Designer to determine how this is achieved. Performance requirements are common on DBOM and P3.

19 D/B Procurement Scope of Work / Technical Provisions Specify the Scope of Work Elements and Design Criteria Take care when specifying the minimum acceptable design criteria. Design-Builders may interpret absolute minimum values as acceptable. Specify the criteria requirements, rather than guidelines that may be subject to interpretation. Consider the quality of materials and design life for various elements. (e.g. bridges to be designed to last 100-years) Pre-approve design deviations, waivers, or exceptions when possible. Otherwise, the risk of design exceptions is on the Proposer/Design-Builder. Design-Builders will want to provide the least cost product that meets the criteria. Be prescriptive to get what you want.

20 D/B Procurement Reference Information Documents Provide common engineering and reference data to all proposers in RFP. o Reduce proposal costs and redundancy. o Engineering Data must be accurate and the Owner will stand behind. o Reference data proposers must verify before using. Examples of common engineering data includes: o Environmental documents o Existing engineering reports (geotechnical, utilities, safety records, etc.) o Existing as-built information o Field survey and base maps o Utility maps, survey, and prior rights determination

21 D/B Management Project Management Plan (PMP) The Design-Builder s Project Management Plan (PMP) is an umbrella document that will describe the Design-Builder s managerial approach, strategy, and quality procedures to achieve all requirements of the D-B Contract Documents. The PMP shall include the following accompanying documents: Project Administration Quality Management Plan (including DQMP and CQMP) Comprehensive Environmental Protection Plan (CEPP) Public Information and Communication Plan (PICP) Health and Safety Plan (HASP) ROW Acquisition Plan (if needed)

22 D/B Management Project Controls - Schedule The Design-Builder will submit a Project Baseline Schedule to the Owner for approval. The schedule is usually a cost and resource loaded CPM schedule. The Progress Schedule is often used: to monitor monthly progress for partial payment compensation.

23 D/B Design Phase Owner s Design Oversight The Design-Builder shall design the Project in compliance with Contract Documents. Owners participate in informal Over-the-Shoulder (OTS) Reviews, which are opportunities for Design-Builder s to obtain feedback prior to formal design submittals. Owner provides design oversight and reviews of the following design submittals: Preliminary Design Submittal (similar to proposal submittal) Intermediate Design Submittal (e.g. 60% Submittal) Final Design Submittal (e.g. 100% Submittal)

24 Owners need to assess: D/B Design Phase Owner Resources available resources necessary to perform reviews within allotted review periods ( 2-4 weeks) with consideration for other on-going projects. the Owner s technical expertise (for the reviews. Owners may retain the services of Design Consultants to supplement their resources and/or provide subject matter experts.

25 D/B Construction Phase Construction Oversight The Owner is responsible for the overall Construction Quality Assurance (QA), assuring project quality. The Owner s responsibility for acceptance does not change when using the DB delivery method. The Owner retains responsibility for verifying compliance with the Contract Document plans and specifications. Final Acceptance cannot be assigned to the Design-Builder. A Construction QA Program consists of the following: Contractor QC Owner Acceptance Independent Assurance (IA) Dispute Resolution Personnel Qualifications Laboratory accreditation/qualifications

26 D/B Construction Phase Construction Oversight All acceptance activities must be carried out by the Owner or their designated agent (i.e., consultant under direct contract with the Owner), independent of the Design-Builder. The Design-Builder QC sampling and testing may be included in the acceptance decision, provided the QC data are validated by the Owner s independently obtained verification data obtained through: Owner Verification Inspection (OVI) Owner Verification Testing (OVT) Owners need to assess available CE&I resources necessary to meet the Design-Builder s production rates, with consideration for other on-going projects. After final acceptance, the owner s rights against the contractor are limited to its warranty rights and rights to demand correction of latent defects.

27 After Contract Award Design and Construction Phase Greg Kempf, PE Risk Management HDR Corporate Experience

28 After Contract Award Design and Construction Phase Risks Investment Schedule Cost Insurance Unknown Payment Third party Public utility owners Private utility owners Railroad Permitting agencies Right of way acquisition

29 After Contract Award Design and Construction Phase Why do we do it? For profit corporations Return on investment Ability to innovate Where the industry is going

30 After Contract Award Design and Construction Phase Process Teaming Marketing Proposal phase Permitting Design Execution

31 After Contract Award Design and Construction Phase Owner Concerns Minimally compliant design Change order negotiation Budgeting concerns Loss of control Third party schedule impacts Public communication

32 Questions and Answers