Evaluating Project Delivery Options

Transcription

1 Evaluating Project Delivery Options Scot A. Bini Vice President, URS August 24, 2004 Design-Bid-Build Overview Design Build Construction Management at Risk Owner Representation

2 Terminology Project Manager Program Management CM Agency v. CM-at-Risk Fast Tracking Bridging Bidding Options Competitive sealed bid Competitive sealed proposal Competitive cost proposal Competitive qualifications proposal Design-Bid-Build Most common approach in the US Entirely sequential Can be single-prime or multi-prime District holds all contracts Cost is the only criteria for selection (low bid process)

3 Design-Bid-Build Flow Chart Design-Bid-Build Stakeholders

4 Owners in Design-Bid-Build Selects planner for Ed Specs Selects the Architect Serves as a single point of feedback during design Awards contract to low bid contractor Must oversee all contract relationships; active participation Architects in Design-Bid-Build Interprets and designs per Ed Specs Provides participatory feedback opportunities Prepares construction documents Manages bid process Provides some level of Construction Administration Approves pay applications and CO s

5 GC in Design-Bid-Build Coordinates subcontractors Delivers project at bid price Completes building on time Pros of Design-Bid-Build Everyone is familiar with this process. The owner has considerable control. It is low bid and that clearly defines the cost at the outset.

6 Cons of Design-Bid-Build Process is entirely sequential. If the bids come in over budget, considerable time is lost. There are no constructability reviews. The books are closed. Profitability is the goal for the GC. Construction Management at Risk The CM assumes the financial risk for construction in addition to consultation during design and construction. The selection is based on both cost and qualifications. CM is involved at onset of design.

7 CM-at-Risk Flow Chart CM-at-Risk Stakeholders

8 Owners in CM-at-Risk Selects planner for Ed. Spec. Selects architect. Determines CM-at-Risk selection criteria and makes selection. Negotiates the price. Architects in CM-at-Risk Designs project according to ED Spec. Provides participatory feedback Prepares construction documents Acts as owners rep during construction

9 CM-at-Risk Coordinates with subs and submits proposal (often a GMP). Works as a team member consulting during design and construction. Keeps the architect informed on costs, schedule and implications of alternative designs, systems, and materials used. Coordinates all work and completes building on time. Pros of CM-at-Risk Provides Owner greater control in selecting the CM through pre-qualifications Constructability reviews avoid delays. Management of change is more effective with team approach. Single point of responsibility during construction. Opportunities for fast tracking.

10 Cons of CM-at-Risk Potential exists for an adversarial relationship between Architect and CM. Owner must invest equal degrees of control to both parties. Design Build Owners contract with a single entity for both design and construction. Entity may be one company or a joint venture between architect and contractor. Design Builder may also perform general conditions and subcontract to a designer and builder.

11 Design Build Process Owner prepares design requirements. Owner issues a request for proposal. Selection is made and negotiations start. Project can be fast tracked. DB may self perform the work or only provide general conditions. Costs in DB Stipulated Sum A lump sum price to provide all design and to deliver a completed building to the owner. Cost-Plus Fee Cost is computed as the actual expense of design and construction plus a fee for overhead and profit. GMP Cost is computed the same as Cost-Plus Fee, but there is a stated maximum price. Shared savings below that maximum is an option.

12 Stakeholders in DB Roles in DB Owner Prepares project requirements in detail Issues RFP and negotiates costs Design/Builder Responds to RFP Works with, or is, the Architect and Contractor

13 Pros of DB Owner has great flexibility in selecting the DB that provides the best value and cost. One point of contact. Positive impact from team approach. The relationship between Architect and Contractor is not adversarial since they are the same entity. Cons of DB Since Architect and Contractor work under the same umbrella the checks and balances are lost. Program must be clearly defined by the owner prior to start. Owners should have extensive experience in construction.

14 Project/Program Management Useful when Owners do not have the expertise or staff to handle the management of a capital program. Provides a eyes and ears for owners that can concentrate on other responsibilities. Experts in Program Controls; cost, time, quality, safety, and change management Selecting a Delivery Method Time Quality Cost Risk Owner s Expertise

15 Delivery Method Options Delivery Method Options

16 Scot A. Bini URS Construction Services Vice President, Education Principal Office: Cell: Fax: