Getting the Biggest Bang for Your Building Bucks through Professional Construction Management Creating The Infrastructure For Tomorrow’s Education September

Getting the Biggest Bang for Your Building Bucks through Professional

Construction Management

Creating The Infrastructure For Tomorrow’s Education

September 20, 2014Kissimmee FL

Overview

What, Where & Why use Construction Management

The Challenge

School Building Process

Standards of Practice

Certified Construction Managers

Benefits of a CM

Proofs and Examples

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Non-profit formed in 1982 for the Construction Management industry.

12,500+ members: CM/PM practitioners Corporate members Owners: public and private Academic and associate members

2,300+ Certified Construction Managers. 29 regional chapters and 48 student chapters at colleges

and universities nationwide.

National experts in K-12 facility assessment, planning and program management

200 K-12 clients

60 large urban school clients

$30 billion in construction

#3 in Education (Engineering News Record)

K-12, By the Numbers

LAUSD Bond Program History Decades of Unmet School Needs

From 1980 to 2002, Enrollment Grew by More Than 200,000 Students.

Prior to 1997, the Last Local Bond Was in 1963 -- A 34 Year Gap

Overcrowding Was Addressed By: Placing Portable Classrooms At Schools –Reduced Playspace and Parking

Areas, Created Line-of-Site Challenges Instituting Multi-Track Calendars – Some Schools Had 17 Less Days Of

Instructiono 227 Multi-Track Schools in 2002-2003; 188 of Which Were Concept 6 Schools

Involuntarily Busing Students Across The District o 111 Schools Required Involuntary Busing in 2002-2003

Enrollment Increase Accelerated Deterioration of Aging School Infrastructure.

History of LAUSD Bond Program FundingFirst Phase of Program

Proposition BB - 1997 $2.4 Billion

Measure K - 2002 $3.35 Billion

Measure R - 2004 $3.87 Billion

Measure Y - 2005 $3.985 Billion

Leveraged ~$12 Billion of Local Funding Targeted for Projects Executed by the Facilities Services Division into a $19.5 Billion Program

Delivered So Far…First Phase of Program

130 new school projects and 372 additional projects within the New School Construction Program.

Provided more than 164,000 new K-12 seats. Approximately 23,000 Projects Completed under

Repair & Modernization Program. Eliminated Multi-Track Calendar Operations. Eliminated Involuntary Busing. Achieved implementation of full-day Kindergarten at

475 schools that contain a kindergarten curriculum. Completed 181 out of 184 charter facilities projects. Completed all 31 early education center expansion

projects.

Despite Nearly $20 Billion of Investments, Billions of Unmet Capital Needs Remain

For the Past 17 Years… We’ve Been Making Up for Decades of Neglect The Emphasis of the Bond Program Has Been on

New School Construction

However… Overcrowding has Severely Increased the Wear

and Tear of Buildings and Decreased Their Life Expectancy

Operational Funding for Deferred Maintenance Does Not Keep Up With Capital Need

The Vast Majority of Students Attend School in Legacy Schools

There Is Still More Work To Be DoneFirst Phase of Program

Initiating Next Phase of the Bond Program

2008 -- $7 Billion School Construction Bond, Measure Q Approved

Due to Nationwide Economic Downturn, Until Recently District was Unable To Initiate Next Phase of Bond Program

Constrained by an Inability to Issue Bonds, District Has Focused Efforts on Assessing the Conditions of our School Facilities

Completed Capital Needs Assessment and Planning Effort Facilities Condition Assessment in Progress

$7,852,970,000 Allocated to Support Development of New Projects Under “School Upgrade Program”

What is Construction Management?

A professional service that applies effective management techniques to the planning, design, and construction of a project from inception to completion for the purpose of controlling time, cost and quality.

Construction Management is a discipline and management system specifically created to promote the successful execution of capital projects for owners.

Why Use a Professional CM?

• Promote communication and understanding for everyone involved the project.

• Help bring projects in on schedule, within budget, environmentally compliant and at appropriate quality.

• Reconcile the scope of work to the budget.• Manage overall budget and schedule conformance.• Manage procurement and quality control for multiple projects.• Manage M/WBE participation program.• Coordinate technology program.

• Anticipate, avoid and resolve potential problems.


• Primary components of School Construction:– Determining the Need– Defining Projects– Acquiring Project Sites– CEQA/Environmental Assessment– Designing Projects– Construction & School Opening

Each of the require unique expertise and must be orchestrated diligently to achieve success, and maximize the contribution of state, local and federal funds.


The typical duration of a new school project ranges from four to six years


The Challenge Need Expert knowledge. Specific experience and trained professional is required. Workload is fluctuating . Scope of work is specific to a project or the program.

You are in the schools business, not the construction business.

Whether in-house or outsourced, professional construction management can help.

Most Common Approach

AEs hired and work begins

without first developing a comprehensive plan for entire program.

?

$

BrainStorming

Program

S i t e

• Scope Standards

• Design Standards

• Equity Standards

• Prototypes

• Scope to Budget Exercise

Opportunity Curve

Time

Sav

ings

Pot

ent i

al

Start Up Preconstruction Procurement Construction

Programming

and Start-up• Establish Baseline

Scope BudgetsSchedule

More than Construction

Getting it Right

Where CMs Add Value

Upfront Planning Financial/Funding

Strategies Community Outreach Program Controls Design

(Preconstruction) Procurement and

Delivery Construction Project Closeout O&M

Why Use Construction Management Firms? Expert knowledge is not present in the District. District recruitment process is not meeting the requirements:

Process takes too long District salary rates are not able to attract qualified candidates

Firms recruit nationwide for top candidates. Reductions in consultant staffing do not require long, tedious, and

detrimental must place process necessary for District employees. Avoids placing the fiscal burden on the District of permanent District

employees who will require funding for the length of their career. Consultants provide corporate level support and training at no additional

cost to District. Requirement is not long term or permanent (cyclical nature of the work). Tight budgets and funding requires innovation to maximize purchasing. Aggressive scheduling requires faster turnaround time. District requires assistance beyond design and construction help, e.g.

standards, FFE, move management, training of maintenance staff, etc.

The

Managed by Construction Manager Certification Institute (CMCI), an affiliate of CMAA, the leading organization for certifying professional CM/PM.

Accredited by American National Standards Institute (ANSI) under the International Standard Organization‘s (ISO) 17024 standard.

Endorsed by the Construction Industry Institute (CII), University of Texas: “A value adding credential for those in responsible charge of major phases of capital projects.”

Currently +2,200 CCMs, with roster growing rapidly.

Program

Certified Construction Managers

Have demonstrated mastery of the Construction Management Association’s (CMAA) Standards of Practice and the Construction Industry Institute’s (CII) Best Practices Guide.

Proven their leadership and competency through responsible-in-charge experience.

Must keep their skills and knowledge fresh through recertification.

Deliver the benefits of industry-standard services on every job.

Provides owners with an objective assurance of knowledge skill and abilities.

Project Management Cost Management Time Management Quality Management Contract Administration Professional Practice Safety & Risk Management Also includes the

Best Practices (IR166-3)

Standards of Practice

Beyond the Standards

CCMs are also tested and expected to maintain knowledge in:

Infrastructure

Sustainability Reducing environmental impact Optimizing economic viability

Building Information Modeling

(BIM)

Scope-to-budget verification and why it is important?

Assisting in site selection.

Developing phasing plans for working in occupied space.

1. Upfront Planning:

The Right Start for a Successful Finish

Project Timeline

Dec

isio

n Im

pact

Decisions

Costs

Decision Cost Curve

The Later the Decision, the Higher the Cost!

CONSTRUCTIONPLANNING DESIGN

Benefits of CM, Step by Step

2. Financial/Funding Strategies Budget validation – what’s missing? Cost modeling of total project hard and

soft costs. Financial analysis/scenario

development. Assistance with State Funding

Applications or Matching Grants.


3. Community Outreach Assistance in consensus building. Manage communications plan:

Project web site Town Hall meetings Regular updates to principals, staff and

business and community leadership Development of local and minority

businesses.

Good Communication Builds Trust – Public Trust Helps Win the Next Bond Campaign


4. Program Controls Using project

control systems for more than cost and document tracking.

Web-based capabilities for broad-based progress and status communications.


5. Design (Preconstruction)

Design Reviews/Quality Assurance. Constructability/ Phasing. Design to Budget. Stakeholder Alignment.

BetterDesign

Documents

FewerConstruction

Issues

LowerProjectCosts= =


6. Procurement and Delivery Labor agreements and Labor relations. Permitting and Plan check support. Bundling and bulk purchasing. Outreach to develop market interest.

Grows Resource Base and Assures Quality Delivery of Projects


7. Construction Safety & Risk Management

Child Safety Programs CIP Education/Training Pro-active Management

Alternative delivery methods for specific projects

Design/Build At-Risk or Turnkey Delivery Job Order Contracting (JOCs)

Pro-Active Site Management Project “first” with respect to issue resolution Maintain clear communications between all stakeholders Incentive $$ based resolution programs – rewards “zero” claims


8. Project Closeout

Enhancing Project Closeout Start planning closeout strategy before

design starts Requiring a detailed schedule of closeout

tasks Breakout detailed schedule for each

closeout activity Maintain a dynamic, cost-loaded

Incomplete Work List from start of construction

Smooth Transition to District Maintenance


9. Commissioning

Assistance with placement of staff Providing interim staff Training for O&M personnel Extended OEM warranties

and service agreements


Testimonial

Raju Kaval, CCM, DBIADirector of Program Support Services Los Angeles Unified School District

“The $26 billion new school construction and modernization program of Los Angeles Unified School District (LAUSD) is the largest school construction program in the nation’s history. Since 1997, LAUSD has been utilizing Construction Management (CM) Firms to augment District staff to support this School Construction Bond Program. The timely access to industry expertise through the CM firms has proven to be crucial and essential for the operation of this program. CM firms have been supplementing the LAUSD staff with expert CM professionals for continued success of this program. More than 100 CM Firms participate in LAUSD’s Bond Program. CM contracts have been re-procured several times over the course of the Bond Program. In the recent re-procurement of CM contracts the criteria used to evaluate the proposals included CM Firms commitment to achieve Certified Construction Manager (CCM) credentials for their employees. The RFP also required the firms to list the number of candidates with CCM credential that the firms have provided to other public agencies during the last two years. LAUSD requires a valid CCM credential for many positions filled by CM firms and also allows candidates with valid CCM credential to substitute the certification for minimum education qualification i.e. bachelor’s degree in engineering or construction management required for applying for positions filled using District employees. LAUSD strongly agrees that the value of certification shows the independent assessment of candidate’s knowledge and skills and assurance of competency and adherence to ethical standards. LAUSD believes that the construction managers with CCM credentials, protects the interests of the project and the owner.”

Example Request For Proposal

Example Request For Qualifications

Committing to the Future

Having a Certified Construction Manager lead your project increases the chances for:

Reduced RiskIncreased SustainabilityKeep on ScheduleStay on BudgetAdditional Resources

Look for the CCM. Hire A CCM.

For More Information:

CMAA7926 Jones Branch Dr.

Suite 800McLean, VA 22102 Tel: 703-356-2622

[email protected]

Nick SotoVice President of Certification

[email protected]

www.CMCertification.org

mailto:[email protected]

http://www.cmcertification.org/