Construction Contract Construction Contract Delivery SystemsDelivery Systems
Mikal Nicholls, P.E.Mikal Nicholls, P.E.Senior DirectorSenior Director
3/11/09 2
““Tools” for Tools” for Construction DeliveryConstruction Delivery
• Many “tools” are available for construction delivery• Need to follow:
– Bid Limits• Public Contract Code 20111
– Public Works Contract definition• Public Contract Code 1102
– Design-Build• Education Code 17250
– Lease – Leaseback• Public Contract Code 20670• Education Code 17400
– Authority to Use• If specifically legislated for others, but not you, then you probably can’t use it• i.e. LAUSD is authorized to use JOC, but no other school district can
3/11/09 3
Contract Delivery “Tools”Contract Delivery “Tools”Owner’s RiskOwner’s Risk
• Construction Manager at Risk (CM at Risk)
• Design-Build (D-B)• Lease-Lease Back (L-LB)
• Construction Manager Multiprime (CM/Multiprime)
• Lump Sum General Contractor (GC)
• Construction Manager General Contractor (CM/GC)
Higher Higher RiskRisk
Lower Lower RiskRisk
CM Multiprime
CM at Risk
GC
D-B
L-LB w/design & financing
CM /GCL-LB w/o design
3/11/09 4
““Tools” Require Proper Tools” Require Proper Supervision and TrainingSupervision and Training
CM Multiprime Needs:– Sophisticated District project team
• Cost controls• Decision making• CPM schedule experts• Daily inspection reports w/photos• Disputes review• Change order specialists• Construction & Maintenance expertise
– District tolerant of mistakes and briefed on the potential risks
– Means to quickly give direction in the field• Force account• Field instructions• Ratify Board authority
– Internal staff augment for paperwork that is normally handled by General Contractor
– Insurance program to cover damage that “nobody” did
– Designed to delivery method– CM that
• Advises District but doesn’t control the work• Doesn’t overstep contract requirements• No means and methods• Tracks and reports to District for action
– Inspector (IOR) that looks for both DSA and potential problems for the District
General Contract Needs:– Average District project team
• Cost controls• Decision making• CPM schedule review capability• Daily inspection reports w/photos• Disputes review• Change order review capability• Construction & Maintenance expertise
– District briefed on:• Potential risks• Refereeing between designer and general
contractor• Understands
– Design errors– Design omissions– Unforeseen conditions– Contractor workmanship mistakes
– Means to quickly give direction in the field• Force account• Field instructions• Ratify Board authority
– Designed to delivery method– Inspector (IOR) that looks for both DSA and
potential problems for the District
3/11/09 5
““Tools” Require Proper Tools” Require Proper Supervision and Training (cont.)Supervision and Training (cont.)
CM at Risk Needs:– Sophisticated District project team
• To negotiate with Construction Manager• Understanding the changing roles of CM
– Pre-bid = professional consultant on Owner’s side
– Post-bid = “General Contractor” at risk to complete project on time and within budget
• Following to hold CM accountable– Cost controls– CPM schedule experts– Daily inspection reports w/photos– Disputes review– Change order specialists– Construction & Maintenance expertise
– District tolerant of mistakes and briefed on the potential risks
– Means to pay quickly after CM makes changes
• Ratify Board authority– Internal staff augment for paperwork that is
normally handled by General Contractor during bidding phase only
– Insurance program in CM contract to cover damage that “nobody” did
– Designed to delivery method– Inspector (IOR) that looks for both DSA and
potential problems for the District
CM General Contract Needs:– Average District project team
• Cost controls• Decision making• Construction Manager
– District briefed on:• Potential risks• Refereeing between designer and general
contractor• Understands
– Design errors– Design omissions– Unforeseen conditions– Contractor workmanship mistakes– Construction management mistakes
» Just an advisor
– Means to quickly give direction in the field• Force account• Field instructions• Ratify Board authority
– Designed to delivery method– CM that
• Advises District but doesn’t control the work• Doesn’t overstep contract requirements• No means and methods• Tracks and reports to District for action
– Inspector (IOR) that looks for both DSA and potential problems for the District
3/11/09 6
““Tools” Require Proper Tools” Require Proper Supervision and Training (cont.)Supervision and Training (cont.)
Lease - Leaseback Needs:– Sophisticated District project team
• Lawyer to negotiate land, design and construction deal
• Cost controls• Decision making• Plus attributes of GC after DSA approval• More upfront effort, less in back end
– District briefed on:• Potential risks• Understands
– Design errors & omissions– Unforeseen conditions– Contractor workmanship mistakes– Contract is basically a GC after DSA approval
– Means to change contract if modifications need to be made
• Contingency/Force Account in contract?• Ratify Board authority
– Need to review design before final price agreement– Designer/Criteria Designer
• Experience in design-build and/or lease-leaseback method
• Avoid bridging documents• Prepares RFP for innovation from Lease-Leaseback
team• Fair evaluation criteria in RFQ and RFP• Uses available, approved resources
– District Construction Standards– Education Specifications
– Inspector (IOR) that looks for both DSA and potential problems for the District
Design-Build Contract Needs:– Project value >$10M– Sophisticated District project team pre-RFP
• Cost controls• Decision making• Plus attributes of GC after DSA approval• More upfront effort, less in back end
– District briefed on:• Potential risks• Understands
– Design errors & omissions– Unforeseen conditions– Contractor workmanship mistakes– Contract is basically a GC after DSA approval
– Means to pay quickly if changes are made• Contingency/Force Account in contract• Ratify Board authority
– Need to compare final design to RFP to make sure corners aren’t cut
– Criteria Designer• Experience in design-build method• Avoid bridging documents• Prepares RFP for innovation from Design Build Entity• Fair evaluation criteria in RFQ and RFP• Uses available, approved resources
– District Construction Standards– Education Specifications
– Value competition– Inspector (IOR) that looks for both DSA and potential
problems for the District
3/11/09 7
Roles Under Construction Management with Roles Under Construction Management with Multiple Prime ContractingMultiple Prime Contracting
DistrictDistrictProgram/ProjectProgram/Project
ManagerManager
DistrictDistrictProgram/ProjectProgram/Project
ManagerManager
Prime ContractorPaving
Prime ContractorPaving
Prime ContractorGrading
Prime ContractorGrading
Prime ContractorCarpentry
Prime ContractorCarpentry
Prime ContractorElectrical
Prime ContractorElectrical
Prime ContractorMechanical
Prime ContractorMechanical
Prime ContractorConcrete
Prime ContractorConcrete
Prime ContractorEtc….
Prime ContractorEtc….
DesignerDesigner DSA InspectorDSA Inspector
Soils Engineer(could be partof Designer)
Soils Engineer(could be partof Designer)
LawyerLawyer
ConstructionManager
ConstructionManager
• District has direct overall supervision for professional consultants, indirect supervision of one construction manager and direct supervision of all Multi-Prime Contractors (all in Bold).
• Construction Manager has an indirect supervision of the Multi-Prime Contractors (depending upon the District and the contract provisions).
• Construction Manager has no risk in this role.
Note: Professional Services contracts are above the red line
• Construction Manager can be hired during design period to provide construction perspective prior to bidding.
• All payment, change orders, and direction is supposed to come from the District.
• District has risk for unforeseen, design, disputes between Prime contractors, bid document coordination between CM and designer and scope gaps.
• Prime contractors have risk for construction in their trade only!
3/11/09 8
Roles Under General ContractingRoles Under General Contracting
DistrictDistrictProgram/ProjectProgram/Project
ManagerManager
DistrictDistrictProgram/ProjectProgram/Project
ManagerManager
General ContractorGeneral
Contractor
SubcontractorPaving
SubcontractorPaving
SubcontractorGrading
SubcontractorGrading
SubcontractorCarpentry
SubcontractorCarpentry
SubcontractorElectrical
SubcontractorElectrical
SubcontractorMechanical
SubcontractorMechanical
SubcontractorConcrete
SubcontractorConcrete
SubcontractorEtc….
SubcontractorEtc….
DesignerDesigner DSA InspectorDSA Inspector
Soils Engineer(could be partof Designer)
Soils Engineer(could be partof Designer)
LawyerLawyer
• District has direct overall supervision for professional consultants and one construction contractor (all in Bold).
• General Contractor adjudicates all changes from subcontractors and presents as one issue to the District.
Note: Professional Services contracts are above the red line
• District has risk for the design and soils.
• General Contractor has risk for construction.
3/11/09 9
Roles Under Construction Management with Roles Under Construction Management with General ContractingGeneral Contracting
DistrictDistrictProgram/ProjectProgram/Project
ManagerManager
DistrictDistrictProgram/ProjectProgram/Project
ManagerManager
General ContractorGeneral
Contractor
SubcontractorPaving
SubcontractorPaving
SubcontractorGrading
SubcontractorGrading
SubcontractorCarpentry
SubcontractorCarpentry
SubcontractorElectrical
SubcontractorElectrical
SubcontractorMechanical
SubcontractorMechanical
SubcontractorConcrete
SubcontractorConcrete
SubcontractorEtc….
SubcontractorEtc….
DesignerDesigner DSA InspectorDSA Inspector
Soils Engineer(could be partof Designer)
Soils Engineer(could be partof Designer)
LawyerLawyer
ConstructionManager
ConstructionManager
• District has direct overall supervision for professional consultants and indirect supervision of one construction contractor (all in Bold).
• Construction Manager has indirect supervision of the General Contractor (depending upon the District and the contract provisions).
• Construction Manager can be hired during design period to provide construction perspective prior to bidding.
• Construction Manager provides advice to District on construction payments, change orders and direction.
• Construction Manager has no risk in this role.
Note: Professional Services contracts are above the red line
3/11/09 10
Roles Under Construction Roles Under Construction Management at RiskManagement at Risk
DistrictDistrictProgram/ProjectProgram/Project
ManagerManager
DistrictDistrictProgram/ProjectProgram/Project
ManagerManager
ConstructionManager
(afterAssignment)
ConstructionManager
(afterAssignment)
Prime Contractor
Paving
Prime Contractor
Paving
Prime Contractor
Grading
Prime Contractor
Grading
Prime ContractorCarpentry
Prime ContractorCarpentry
PrimeContractorElectrical
PrimeContractorElectrical
PrimeContractorMechanical
PrimeContractorMechanical
PrimeContractorConcrete
PrimeContractorConcrete
PrimeContractor
Etc….
PrimeContractor
Etc….
DesignerDesigner DSA InspectorDSA Inspector
Soils Engineer(could be partof Designer)
Soils Engineer(could be partof Designer)
LawyerLawyer
ConstructionManager
ConstructionManager
• District has direct overall supervision for professional consultants and initial direct supervision of all Multi-Prime construction contractors (all in Bold).
• Construction Manager is hired during design period to provide construction perspective prior to bidding.
• After bidding by the District, the Construction Manager is assigned responsibility for all District Prime Contracts including construction payments, change orders, direction and disputes (under the terms of the bid).
• Construction Manager has risk for construction schedule and costs after assignment of Prime Contractors.
• Construction Manager becomes “General Contractor” after assignment and is no longer Professional staff to the District. (this may not be legal)
• Warning: CM is privy to District “secrets” before bidding and potential adversary after bidding!
Note: Professional Services contracts are above the red line
3/11/09 11
Roles Under Design-Build ContractingRoles Under Design-Build Contracting
DistrictDistrictProgram/ProjectProgram/Project
ManagerManager
DistrictDistrictProgram/ProjectProgram/Project
ManagerManager
Design – BuildEntity
Design – BuildEntity
GeneralContractorGeneral
ContractorDesignerDesigner
CriteriaDesignerCriteria
DesignerDSA InspectorDSA Inspector
Soils Engineer(could be partof Designer)
Soils Engineer(could be partof Designer)
LawyerLawyer
SubcontractorGrading
SubcontractorGrading
SubcontractorElectrical
SubcontractorElectrical
SubcontractorMechanical
SubcontractorMechanical
SubcontractorLandscaping
SubcontractorLandscaping
SubcontractorEtc….
SubcontractorEtc….
• District has direct overall supervision for most professional consultants (except Designer) and design-build entity (all in Bold).
• Design-Build Entity is responsible for design, DSA approval, and construction. It can also be responsible for soils conditions and meeting District milestones, if assigned in contract.
• District has risk for criteria and customer requested changes, and unforeseen conditions.
• Remaining risk is with the Design-Build Entity.
Note: Professional Services contracts are above the red line
3/11/09 12
Roles Under Lease – Lease Back Roles Under Lease – Lease Back ContractingContracting
DistrictDistrictProgram/ProjectProgram/Project
ManagerManager
DistrictDistrictProgram/ProjectProgram/Project
ManagerManager
Lease – LeaseBack Entity
Lease – LeaseBack Entity
GeneralContractorGeneral
Contractor
DSA InspectorDSA Inspector DesignerDesigner
LawyerLawyer
SubcontractorGrading
SubcontractorGrading
SubcontractorElectrical
SubcontractorElectrical
SubcontractorMechanical
SubcontractorMechanical
SubcontractorLandscaping
SubcontractorLandscaping
SubcontractorEtc….
SubcontractorEtc….
GeneralContractor(Precon)
GeneralContractor(Precon)
Financing Partner
Financing Partner
• District has direct overall supervision for professional consultants.
• Lease – Lease Back Entity is responsible for the property, design assistance and construction. It can also be responsible for financing, and meeting District milestones, if assigned in contract.
• District has risk for customer requested changes and unforeseen conditions with limited risk for E&O since designer and contractor collaborated on design. More limited if contract has GMP & GCD.
• May not be subject to 10% change order limitation (Public Contract Code 20118.4).
• Remaining risk is with the Lease – Lease Back Entity.
• An advantage over General Contracting is that the District can select the contractor through RFP. This is also a disadvantage since there is no price competition for the contract general conditions (3% – 15% of contract price).
Note: Professional Services contracts are above the red line
3/11/09 13
Owner’s ComparisonOwner’s Comparison
• General Contractor– One stop shopping– Most designers are
preparing construction documents for this delivery method
– One accountable party for construction
• Multiprime Contracting– Chaotic
• Need more District staff to handle the paperwork that can’t be delegated
• Need CM to watch over the work and direct contractors in the field
– Needs to design for this delivery method
– Owner gets to mediate problems between contractors
3/11/09 14
GC V. Multiprime (1 of 2)GC V. Multiprime (1 of 2)• Combo v. a-la-carte
– Combo buys economy of scale
– A-la-carte buys same items at stand alone cost
• GC– Owns scope gaps
• Cost risk if scope gaps occur– Fees based upon bidding
environment– Change orders based upon
project (contract) amount (10% law)
– Paperwork less• One bill each month• Subcontractor change orders
are summarized by GC into one
3/11/09 15
GC V. Multiprime (2 of 2)GC V. Multiprime (2 of 2)• Multiprime
– Owner owns scope gaps• May have to bid them out due to 10%
law• Little to no risk to CM if scope gaps
occur– Fees are based upon professional
services and billed hourly• Little control by District to keep fees and
hours in line– Change orders based upon individual
contract value• Often run up against 10% law (Public
Contract Code 20118.4)– More paperwork
• Contracting with up to 60 prime contractors
• 60 bills each month• Contractor’s changes can effect other
contractors• District in charge of backcharging
contractors– No usable construction cost data at the
end of the project (cost/sf)
3/11/09 16
Means and MethodsMeans and Methods
• CM without risk contracts:– Only an administrator?– Not responsible for means
and methods (M&M) of the contractors
– However,• CM prepares master
schedule (M&M)• Approves RFIs (M&M)• Signs off on payments
(M&M)• Directs contractor with
Field Instructions (M&M)• Prepares bid packages –
breaks up design and potentially takes designer off the hook (M&M)
• CM at risk contracts:– Paid as professional during
design period– Paid as a percentage of the
contract amount during construction
– Is assigned the construction contracts to administer after bidding by the District
– Responsible for the means and methods
– Not responsible for unforeseen conditions or owner directed changes
3/11/09 17
Professional ServicesProfessional Services
Indirect “Tools”Indirect “Tools”
3/11/09 18
Program/Project Manager & Program/Project Manager & Construction ManagerConstruction Manager
• Agent for Owner?• Split tasks?
– Different CM & P/PM
• CM with GC = CM & Multiprime?– Scope gaps– Professional services
payments
• Owner’s Supervision
3/11/09 19
DSA Approval = Complete DesignDSA Approval = Complete Design
• DSA regulatory review, approval and certification
• Make sure design is complete with MEP before going to DSA
• Constructability review by Project Manager
• DSA doesn’t review compatibility between trades
• Coordination between design consultants– Electrical v. civil drainage
issues
• Submittals indicate actual products to be used
• DSA allows limited “deferred approval”
3/11/09 20
Designer’s Contract (1 of 3)Designer’s Contract (1 of 3)
• Negotiate the fee• Don’t be fooled by CDE
“rule of thumb” percentages– There is a minimum
amount of time (and money) required for designer to prepare documents
– There is no maximum amount that they will charge for said documents
– Compare the costs:• $10M project at 5% =
$500,000 in design fee• $100M project at 5% =
$5,000,000 in design fee• Compare the work
required by both projects – Number of plan sheets– Amount of time to
prepare– Number of people hours– The work product one is
not 10 times that of the other
• Designer gets more money with every change order
3/11/09 21
Designer’s Contract (2 of 3)Designer’s Contract (2 of 3)
• Provide incentive/disincentive in contract for late delivery– Carrot and stick approach
is fair to both sides– Don’t include incentive for
early DSA approval• Design does not have to
be complete to go to DSA
– Don’t leave open-ended “additional services” section that can be exploited when base design goes over budget
• Suggest “one-stop shopping” design service contract– Includes all consultants
including soils/geotechnical designer
– Helps prevent finger pointing between design professionals since they all work for the prime designer
3/11/09 22
Designer’s Contract (3 of 3)Designer’s Contract (3 of 3)
• Provide Ed Specs and District Standards to designer– Excellent communication
tool– Provides benchmark for
level of design/construction expected for fee and construction price
– Keeps the designer from reducing the quality if the project bids are over the budget
• Designer needs to design to budget– Hold designer to budget
with clear language– Tie budget and delivery
schedule so designer doesn’t make District choose between quality and delivery time
3/11/09 23
Value Engineering (not!)Value Engineering (not!)
• District should get some value from decision• It is not just whacking scope from an over
budget project• Need to weigh changes against Ed Spec and
District Standards• Deletions always cost more to include later on!• Watch schedule – easy way to lose scope is to
let consultants run you out of time to make a decision.
3/11/09 24
Design to Delivery MethodDesign to Delivery Method
• Identify key assemblies that can’t be broken up into smaller pieces
• Make sure designer knows your intended delivery method and designs to it
• Need good as-builts from previous work at site
• If multiprime:– Designer should identify
bid packages not CM– Scope gaps belong to
designer
• If design-build or lease-lease back:– Hire criteria designer that
has design-build/lease-lease back experience
– Prepare District standard specifications to establish quality of construction
– Include geotechnical design in design-build/lease-lease back entity’s scope of work
• If general contractor– Include geotechnical
design in designer’s scope of work
3/11/09 25
Additional TipsAdditional Tips
(Learned (Learned through Hard through Hard
Lessons)Lessons)
3/11/09 26
Choose Delivery Method CarefullyChoose Delivery Method Carefully
Defects caused in part by delivery method
• Window assemblies failure• Cracked and moving
sidewalk
3/11/09 27
Educational SpecificationEducational Specification
• Becoming important to Districts to match CDE education requirements to projects not vice versa, in order to obtain grant funding– Include Technology
upgrades– Include new Physical
Education requirements
• Need to start early to get this “team” together
3/11/09 28
District Construction StandardsDistrict Construction Standards
• Work with maintenance department to see what works for them
• Provide incentives for maintenance to participate like service contracts as part of the construction contract
• Make standards a living document– See water districts for
samples
• Standardize as much as possible without being proprietary
• Sole source where necessary– HVAC controls– Lock sets– Fire alarm systems
• CYA with Board approval of standards
• Reference: PCC 3400 (b)
3/11/09 29
Other Cost/Time Saving TipsOther Cost/Time Saving Tips• Reuse plans from previous projects
– Pick from successful past construction– May have to update to new code, but costs
should be far less then new design– With previously built plans Districts should be
able to budget for total life cycle as you already know maintenance and energy costs
• Use California Multiple Awards Schedule (CMAS)
– Meets State’s public contract code– May have to split procurements due to public
works limitations, but you will know the quality and price for product being installed
– Good for:• Stadium artificial turf and track• Playground structures and surfaces• Classroom FF&E• Maintenance equipment and small vehicles (Gator)• Goal posts, soccer goals, wrestling mats, track and
field accessories• Overhead projectors• Signage
• Insert Caltrans Labor Surcharge and Equipment Rental Rates book as a reference in construction contracts
– Sets standard prices for equipment and labor surcharges across state
– Standardizes change order and force account negotiations
• Use offsite or shop fabrication construction practices
– Saves on prevailing wages– Shops or offsite fabrications are usually uniform
in construction means and methods resulting in predictable quality
• Use alternate construction practices– Tilt-up concrete construction shaves up to a year
off of gymnasium construction– Used by Francis Parker School and L.A. Fitness
• Use same type of construction throughout project
– Don’t switch from split-face to smooth blocks, then to colored blocks, etc.
– Every change of material costs in material and labor inefficiencies
• Add maintenance service contracts to construction contracts
– Used as a tool for maintenance department to keep up with warranty requirements
• Use DSA P.C. (pre-checked) assemblies– DSA pre-checks items such as:
• Relocatable buildings, • Shade structures,• Marquees
– These items still need to be site adapted through DSA, but the process takes less time and the bulk of the work is already approved
3/11/09 30
MaintenanceMaintenance• Make sure design isn’t beyond
your maintenance budget to fix• Train staff during construction
period• Make sure O&M manuals are
delivered to maintenance with as-builts
• As-builts should include:– Plans– Specifications– Shop drawings– Submittals– RFIs
• Provide warranty info in binder with POC list
• Provide extended warranty items (longer than the one or two years listed in the contract) that are provided in manufacturers’ submittals like:
– Motors– HVAC equipment– Roofing– Paint– Synthetic turf and track
• Provide recommended maintenance schedule so that warranty is not lost
– Commonly forgotten maintenance schedule items include:
• Sealant/caulking inspection• Lock and hinge greasing
3/11/09 31
Owner Controlled Insurance Owner Controlled Insurance Program (OCIP)Program (OCIP)
• Safety guys– Insurance and CM– GC
• No fault insurance– Problems if defects
occur– Should have plan to
tap into when “nobody” broke something
• Potential problems:– Owner premium
escalation if contractor(s) not vigilant with material security or safety
– Claims payments on jobs with defects
• Shouldn’t be required if using GC type contract
3/11/09 32
Change OrdersChange Orders• Inevitable• Need to manage number and
costs• Can minimize by:
– Limiting direction to construction team to those responsible for budget
– Don’t multiprime design or construction
– Establish standards of construction
– Constructability review of documents
– Limit unknowns during design phase
– Make quick decisions during construction
• Changes cost more during construction when people are waiting for decisions
• Type code as they occur so that you can explain and/or recover costs
• Typical coding:– Unforeseen conditions– Insurance– Customer requested– Errors
• Designer (may list each separately)
• Construction manager– Omissions (scope gaps)
• Designer (may list each separately)
• Construction manager– Backcharges
3/11/09 33
Schedule & Timing (1 of 2)Schedule & Timing (1 of 2)• Most schools work schedule backwards from required delivery date• Most project schedules are “fit” to schedule “budget” instead of designed to
meet requirements• Districts need to document projects independently of hired professionals
and contractors using project inspector(s)– Track schedule activities on daily reports– Include equipment on site on daily reports– Project photos– Letters – E-mails– Two way communication is better than unilateral
• i.e. meeting minutes are self serving by drafter
• Public notice of anticipated start and completion dates gives contractors at cost advantage during negotiations
• Design professionals and construction contractors do this for a living– They are better at this than we are– Districts need on staff professionals equal in talent to team delivering the product
3/11/09 34
Schedule & Timing (2 of 2)Schedule & Timing (2 of 2)• Require contract team to provide schedule updates with monthly progress payments
– Get contractor to provide hardware and software for electronic updates– Look for embedded constraints– Pay with cost loaded schedule, if possible
• Have a schedule specification section– Note that no one owns the project float– Cost loaded, if possible– Only finish-start activities allowed– Only one critical path– Has to include:
• Submittal review• Material procurement & delivery• Built-in Construction delays like concrete cure time• DSA and regulatory inspection
– Add time to non-critical activities as part of change orders– Only add project time to critical path activities
• Understand that the critical path may change multiple times during a project– Document all activities against current schedule– Compare with contractor monthly
3/11/09 35
Plan for Two BidsPlan for Two Bids
• Get Board approval for bid and rebid at same time
• Don’t need CM estimate– CM estimate costs money– Costs are going to be what they are bid– CM estimate isn’t bonded, so of little use
• If bid is high– Have designer redesign to budget and rebid
• If bid is ok then award
3/11/09 36
Labor ComplianceLabor Compliance
• Labor Code section 1771.5• Many ways to accomplish
– Other Municipalities do it with • in-house clerk (collecting and verifying contractor
submitted certified payrolls)• IOR (performing interviews as work progresses)
– by Consultant
• Not difficult to do– Paperwork intensive
3/11/09 37
Cost Savings - SummaryCost Savings - Summary• Prepare District Standards
– Ed specs– District/Maintenance
• Reuse Plan - Regional standards– Use DSA PCs– Use good designs from other districts
and colleges– EFSG collects and distributes biannually
• Choose least risky delivery method• Practice defect avoidance
– Get and maintain performance bonds– Ensure bid packages are by assembly– No multi prime contracting or designs
• Get as-builts and warranties– Don’t forget product warranties in
submittals and product boxes– Get contractor, consultant and/or
designer to catalog and make accessible to staff
• Watch the building details – Door & building heights– Material and texture changes
• Evaluate all firms– During and at completion– Make policy to reuse only good firms
• Designers & Consultants– Compete before and during projects
• Task orders• Multiple awards
– Make policy to select only those that get DSA certification
– Don’t sign consultant contracts– Make sure contract doesn’t include fee
based upon % of construction contract• Take and maintain record of project
photos• Get DSA certification the 1st time• Shift costs as much as possible
– LLB with financing– Alternative energy projects– Prop 39 bonds for project staff
• Hire in-house staff
3/11/09 38
If You Sell the “Kool Aid”, You If You Sell the “Kool Aid”, You Need to Drink the “Kool Aid”Need to Drink the “Kool Aid”
3/11/09 39
In C
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Con
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3/11/09 40
Tha
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Name Department PhoneSally AnsonPlanning Analyst
Facility Planning (858) 292-3598
Joanne BranchCoordinator
Facility Planning (858) 292-3833
John BrownCoordinator
Extension of StaffSweetwater USD
(619) 691-5553
Reba HindAdministrative Assistant II
Facility Planning (858) 292-3735
Mikal NichollsSenior Director
Facility Planning (858) 292-3680
Dana PerrinProgram Business Specialist I
Facility Planning (858) 292-3883
Larry ScottCoordinator
Extension of StaffCoronado USD
(619) 522-8900 x1079
Thomas SilvaCoordinator
Extension of StaffSan Ysidro SD
(619) 428-4476 x3042