Facilities Excellence Project Delivery Methods Board of Trustees April 12, 2005

Facilities ExcellenceFacilities Excellence

Project Delivery Methods

Board of TrusteesBoard of Trustees April 12, 2005 April 12, 2005


Agenda Phases of a ProjectPhases of a Project Overview of Project Delivery ModelsOverview of Project Delivery Models

– Design/Bid/BuildDesign/Bid/Build– Design-BuildDesign-Build– Multiple-primeMultiple-prime

Keys to SuccessKeys to Success Next StepsNext Steps


Three Phases of Design & Construction

Project / Scope DefinitionProject / Scope Definition – project requirements – project requirements & constraints, estimate of cost & time for & constraints, estimate of cost & time for delivering itdelivering it

Design Design – schematic design; design development, – schematic design; design development, construction drawings & specificationsconstruction drawings & specifications

Construction Construction – procurement, shop drawings, – procurement, shop drawings, fabrication, site construction & project close-fabrication, site construction & project close-outout

PD Design Construction


Architects and Engineers Architects and Engineers are are PERFECTPERFECT

Common Misconceptions


The cost of The cost of construction construction

in heavenin heaven

Engineer’s Estimate


A gambler A gambler who never gets who never gets to shuffle, cut, to shuffle, cut, or dealor deal

Contractor


A wild guess A wild guess carried out to carried out to two decimal two decimal placesplaces

Bid


A contractor A contractor who is who is wondering what wondering what he left outhe left out

Low Bidder



Design-Bid-Build

CM Multi-prime

Design-Build


Selection Criteria

Owner’s cultureOwner’s culture Project / Scope complexityProject / Scope complexity Budget / cash flowBudget / cash flow Time availableTime available Special user needsSpecial user needs Risk distributionRisk distribution


CM A / E

Owner

General

Contractor

Sub Sub Sub Sub Sub

Design-Bid-Build


Design-Bid-Build Pros:

Competitive bidding process.Competitive bidding process. Easy to manage, universally understood.Easy to manage, universally understood. The Owner has a defined, fully designed The Owner has a defined, fully designed

project prior to bid. project prior to bid. The CM’s responsibility is to protect the The CM’s responsibility is to protect the

interest of the owner.interest of the owner.


Design-Bid-Build Cons:

Contractors take advantage of “competitive Contractors take advantage of “competitive process”.process”.

The process is linearThe process is linear Design does not benefit from direct Design does not benefit from direct

contractor and subcontractors involvement.contractor and subcontractors involvement. Changes orders are common.Changes orders are common. Owner has full exposure to change orders.Owner has full exposure to change orders. Delay claims and disputes are common.Delay claims and disputes are common.


Design-Bid-Build:Project Delivery Timelines


Prequalified General ContractorPrequalified General Contractor Experienced GC StaffExperienced GC Staff Experienced Owner StaffExperienced Owner Staff Experienced Design TeamExperienced Design Team Complete Bid DocumentsComplete Bid Documents Fair and equitable contractFair and equitable contract

Design-Bid-Build Keys to SuccessKeys to Success


CM A / E

Owner

Prime

Contractor

Prime

Contractor

Prime

Contractor

CM Multi-Prime


Economy of scaleEconomy of scale Cut out the “middle man” (General Contractor)Cut out the “middle man” (General Contractor) Closer relationship between Owner and each Closer relationship between Owner and each

trade/contractortrade/contractor No GC mark-ups on trade contractsNo GC mark-ups on trade contracts Hands-on all aspects of projectHands-on all aspects of project The CM’s fiduciary responsibility is to the OwnerThe CM’s fiduciary responsibility is to the Owner

CM Multiple Prime Pros:


Not suitable for complex or custom projects.Not suitable for complex or custom projects. Multiple contracts will impact administrative Multiple contracts will impact administrative

staff workload.staff workload. Owner acts as GC responsible for coordination Owner acts as GC responsible for coordination

of trades during constructionof trades during construction Owner liability in the event one prime trade Owner liability in the event one prime trade

contractor damages another.contractor damages another. Lack of a single, guaranteed, bonded price for Lack of a single, guaranteed, bonded price for

the total projectthe total project

CM Multiple Prime Cons:


CM Multiple Prime Cons:


Experienced Owner acts as General ContractorExperienced Owner acts as General Contractor Experienced CMExperienced CM Properly structured Construction ContractProperly structured Construction Contract

Multiple-PrimeKeys to Success


CM

Owner

Subs Subs Subs Subs Subs

DBE

A / E

Design-Build


AB 1000

Enacted in September 2002Enacted in September 2002Allows Design-Build to be used by the following:Allows Design-Build to be used by the following:

Los Angeles Community College DistrictLos Angeles Community College DistrictSan Jose-Evergreen Community College DistrictSan Jose-Evergreen Community College DistrictSan Mateo County Community College DistrictSan Mateo County Community College DistrictState Chancellor’s Office to select as many as five State Chancellor’s Office to select as many as five

individual projects from other community individual projects from other community

college districtscollege districts


Design-Build Pros

Simplified contractingSimplified contracting Reduction of adversarial relationshipsReduction of adversarial relationships Cost containmentCost containment Speed of deliverySpeed of delivery Shifting of riskShifting of risk Early involvement of the builderEarly involvement of the builder Validate another project delivery Validate another project delivery

method for community college districtsmethod for community college districts


Design-Build ConsSignificant up-front investment of timeSignificant up-front investment of timePotential lack of experience in local communityPotential lack of experience in local communityPotentially less control over designPotentially less control over designMay be more difficult to compare proposalsMay be more difficult to compare proposalsInstitutional capabilitiesInstitutional capabilitiesApproval agency capabilitiesApproval agency capabilities

- Local Fire MarshalLocal Fire Marshal- Division of the State ArchitectDivision of the State Architect- State Chancellor’s OfficeState Chancellor’s Office- Department of FinanceDepartment of Finance- Legislative Analyst OfficeLegislative Analyst Office

Intensity of effort required for implementationIntensity of effort required for implementation


Design-Build:Project Delivery Timelines


Design-Build Key To SuccessKey To Success:

Clear and articulate Request for ProposalClear and articulate Request for Proposal– Project ProgramProject Program– Design ParametersDesign Parameters– Campus StandardsCampus Standards– Proposal RequirementsProposal Requirements– Limited, but sufficientLimited, but sufficient

Ability of the Owner to “let go”Ability of the Owner to “let go”


In Physics, e = mc²In Construction, t = m


Which Method is Right for COM?

Design-Bid-Build ExamplesDesign-Bid-Build Examples– KTD Harlan CenterKTD Harlan Center– KTD Fine ArtsKTD Fine Arts– KTD FusselmanKTD Fusselman– IVC Capital PreservationIVC Capital Preservation

Design-Build ExamplesDesign-Build Examples– New Construction x2New Construction x2– Energy EfficiencyEnergy Efficiency

CM Multiple-Prime CM Multiple-Prime Examples Examples (Districtwide and/or (Districtwide and/or Campuswide)Campuswide)– Restroom UpgradesRestroom Upgrades– Exterior PaintingExterior Painting– RoofingRoofing– CarpetCarpet– Vinyl Floor TileVinyl Floor Tile– AsphaltAsphalt


Project DeliveryKeys to Success

Early identification of project goalsEarly identification of project goals Realistically assess capabilitiesRealistically assess capabilities Choose a project delivery model to meetChoose a project delivery model to meet

project goals and leverage Team capabilitiesproject goals and leverage Team capabilities


Next Steps

Ed Plan – Road map to futureEd Plan – Road map to future Space Inventory Space Inventory District Architect (Design /Bldg standards)District Architect (Design /Bldg standards) District Surveys (CEQA/Civil/Geo/ Energy)District Surveys (CEQA/Civil/Geo/ Energy) Program DefinitionProgram Definition

– Scope / Schedule / BudgetScope / Schedule / Budget



QUESTIONS & ANSWERSQUESTIONS & ANSWERS

José D. NuñezJosé D. Nuñez

Jeff GeeJeff Gee

Dave KirnDave Kirn

Measure C Executive Director, College of MarinMeasure C Executive Director, College of [email protected](650) 574-6512(650) 574-6512

Program Executive, Swinerton Management & ConsultingProgram Executive, Swinerton Management & [email protected](415) 421-2980(415) 421-2980

Program Manager, Swinerton Management & ConsultingProgram Manager, Swinerton Management & [email protected](415) 710-2248 (415) 710-2248