Presented by CALTRANS
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Transcript Presented by CALTRANS
Innovative Contracting
Construction Management Association of America Seminar
May 17, 2013
California Department of Transportation
Traditional Project Delivery
Design-Bid-Build (DBB)
Specified by Public Contract Code
Design must be complete
Awarded to the lowest responsible bidder
Why Use Innovative Methods?
Faster Delivery
Cost Certainty
Constructability
Better Partnering
Risk Transfer
Innovation
Innovative Contracting Effort
Hired Trauner Consulting Services, Inc. to:
Identify methods used by others
Identify the pros and cons of each method
Assist in developing policy, procedures, and
processes for selected methods
Assist in developing training
Innovative Contracting Report
Identified 27 methods divided into the
following categories:
Project Delivery Systems
Procurement Practices
Contract Management Methods
Project Delivery Systems
Caltrans Experience
Design-Bid-Build
Design-Sequencing
Additional Methods
Indef. Delivery/
Indef.Quantity
Agency-CM
CM at-Risk
Design-Build
Early Contractor
Involvement
Project Alliancing
Contract Maintenance
Procurement Practices
Caltrans Experience
Cost-Plus-Time (A+B)
Bidding
Low Bid
Lump Sum Bidding
Additional Methods
Multi-Parameter
(A+B+C) Bidding
Alternate Design
Alternate Bid
Additive Alternates
Best-Value
Reverse Auction
Bid Averaging
Contract Management Methods
Caltrans Experience
Incentive/Disincentive
Lane Rental
Flexible Notice to
Proceed
Warranties
Additional Methods
Liquidated Savings
Active Management
Payment Mechanism
No Excuse Incentives
Shared-Risk
Contingency Fund
Design-Build
Design-Build
A delivery method where a contract for both
the design and construction of a project is
awarded to a single entity.
Design-Build
30% Design
RFQ
RFP
Award
Design
RFC
RFC
RFC
Construct
Construct
Construct
Legislation – Senate Bill 4
Allows 15 design-build projects
10 Caltrans
5 Local
California Transportation Commission must
authorize
Prequalification versus shortlisting
Allows “Low Bid” or “Best Value” awards
Sunsets January 1, 2014
Authorized Projects
Awarded Projects
LA 10/110 – Express Lanes
Mad 99 – Rehabilitate Roadway
SM 101 – Install Ramp Metering System
Fre 180 – Construct Braided Ramps
LA 10/605 – Construct EB 10/SB 605 Connector
SD 805 – I-805 North HOV/BRT
LA 710 – Gerald Desmond Bridge
SBd 15/215 – Devore Interchange
Riv 91 – HOV Lanes
$ 72 million
$ 23 million
$ 11 million
$ 41 million
$ 46 million
$ 72 million
$650 million
$208 million
$633 million
Projects Currently in Procurement
Cajon Pass
North Region Bridge Deck Rehabilitation
$140 million
$ 58 million
Why Use Design-Build?
Faster Delivery
Cost Certainty
Constructability
Risk Transfer
Innovation
Alternative Technical Concepts
Alternative Technical Concepts (ATC) are
proposed changes to the Department’s supplied
basic configurations, design criteria, or
construction criteria which provide a solution
that is equal to or better to the requirements in
the Request for Proposals.
Alternative Technical Concepts (ATCs)
ATCs submitted – 206
Value of ATCs submitted – $967 million
ATCs approved – 109
Value of ATCs approved – $502 million
ATCs incorporated – 29
Value of ATCs incorporated – $142 million
Devore Interchange Project
Deliver project 18 months earlier
Secured $108 M SHOPP funding for the
project
Improved design, I-15 NB continuity
Reduced right of way take (10 parcels)
Reduced environmental impacts
$40 M savings
Construction Manager-General Contractor
Construction Manager /
General Contractor (CM/GC)
A delivery method that allows an owner to
engage a construction manager to provide
input during the design process. At an agreed
upon point, the owner and construction
manager negotiate a price for construction of
the project and the construction manager
becomes the general contractor.
CM/GC Process
30% Design
RFQ
Award
(Preconstruction
Services)
Design
Negotiate Price
Award
(Construction
Services)
Construct
Preconstruction Services
Constructability Reviews
Verify Quantities
Estimate Alternatives
Value Analysis
Risk Analysis
Construction Phasing
Project Scheduling
Authority
Assembly Bill 2498 (Gordon)
Signed September 2012
Added Section 6700 to Public Contract Code
Authorizes up to 6 projects by Caltrans
Must be administered by Caltrans
5 projects greater than $10 million
Effective January 1, 2013
No sunset date
Why Use CM/GC?
Faster Delivery
Cost Certainty
Constructability
Risk Mitigation
Innovation
Next Steps
Develop processes and contract templates
Industry outreach
Project selection
Begin procurements
Useful Links
Innovative Procurement Practices Report:
http://www.dot.ca.gov/hq/oppd/contracting/InnovativeP
rocurementPractices.pdf
Alternative Procurement Guide:
http://www.dot.ca.gov/hq/oppd/contracting/AlternativeP
rocurementGuide.pdf
Useful Links
Design-Build Demonstration website:
http://www.dot.ca.gov/hq/oppd/designbuild/db.htm
FHWA’s Design-Build Effectiveness Study
http://www.fhwa.dot.gov/reports/designbuild/designbuil
d.pdf
Useful Links
CMGC Pilot Program website:
http://www.dot.ca.gov/hq/oppd/cmgc/
NCHRP Synthesis 402: Construction Manager-at-Risk
Project Delivery for Highway Programs
http://onlinepubs.trb.org/onlinepubs/nchrp/nchrp_syn_4
02.pdf
For More Information Contact:
Raymond S. Tritt
Chief, Office of Special Projects
California Department of Transportation
(916) 653-3348
[email protected]
[email protected]
[email protected]