Transcript HEERY PROJECT MANAGEMENT TRAINING

Construction Delivery & Management Methods
FOR AIRPORTS
By Glenn M. Jardine, PE
What’s Best for Your Project?
It Depends…
 Success Criteria
 On/Under Budget
 Conforms to Expectations
 On Schedule
What are Additional Goals?
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Large Number of Projects
Quick Delivery
Local/Minority Firm Participation
Risk Avoidance
Phasing and Security Concerns
Staff and Community Involvement
Evaluate:
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How Much Risk are You Willing to Assume
Schedule and Budget Constraints
How Much Design Input by Staff
How Much Local Participation
How Much Minority Participation
Level of Quality Desired
How Much Flexibility
Ability to Tolerate Change Orders
Key Factors to the Decision:
 Well Defined Scope
 Shared Understanding
 Legal Authority to use
 Adequate Staffing & Knowledge
 Established Budget
 Established Completion Date
 Availability of Contractors Providing Service
 Multiple Projects
 Cooperative A/E and Contractor Community
 Need to Spread Work Around
Contract Strategy
CONTRACT STRATEGY
ONE
Turnkey
CONTRACT TYPE
Design/
Build
CONTRACTOR’S CONTROL
Design/
Pre-Order/Bid/
Build
Separate
Prime Contracts
Separate
Trade Contracts
AGENCY
Negotiated
Fixed Price
LEAST
CONTRACTOR’S RISK GREATEST
OWNER’S CONTROL
Design/
Bid/Build
VENDOR
Bid Fixed
Price
OWNER’S RISK
MANY
LEAST
GREATEST
Quantity
Survey
Escalation
Clause
G.M.P.
Target
Cost Plus
GREATEST
LEAST
GREATEST
LEAST
Construction Method
DESIGN - BID - BUILD
CONSTRUCTION
MANAGEMENT
DESIGN - BUILD
PM/CM
AGENCY
Speed of Delivery
CONSTRUCTION
MANAGEMENT
DESIGN - BID - BUILD
FASTER
DESIGN - BUILD
PM/CM
AGENCY
Initial Cost Certainty
DESIGN - BID - BUILD
CONSTRUCTION
MANAGEMENT
HIGHER
DESIGN - BUILD
PM/CM
AGENCY
Owner’s Risk
DESIGN - BID - BUILD
CONSTRUCTION
MANAGEMENT
HIGHER
DESIGN - BUILD
PM/CM
AGENCY
Construction Method
DESIGN - BID - BUILD
CONSTRUCTION
MANAGEMENT
DESIGN - BUILD
PM/CM
AGENCY
DESIGN – BID – BUILD
select a/e
design
CCAP
bid/award
build
DESIGN – BUILD
select a/e
design
select d/b
GMP (CCAP)
design
build
CM AT RISK
select a/e
design
select cm
early bids
GMP (CCAP)
build
PM/CM AGENCY
select a/e
design
select cm
CCAP
early bids
build
Design – Bid – Build
Owner
Architect/ Engineer
Contractor
Construction
Manager
(Agency)
Design – Bid – Build
Owner
Architect/ Engineer
Contractor
Construction
Manager
(Agency)
Owner’s Responsibility
Site
Prog
Legal
Finance
Security
Costs
Env
Soils
TSA
Baggage
Owner
MBE
Tech
Airlines
Tenants
Architect/ Engineer
Contractor
Owner’s Responsibility
Site
Prog
Legal
Finance
Security
Costs
Env
Traditional
Who’s resp for errors
Soils
TSA
Baggage
Owner
MBE
Tech
Airlines
Tenants
Architect/ Engineer
Contractor
SUBCONSULTANTS
SUBCONTRACTORS
Design – Bid – Build
Advantages
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Widely Understood and Legally Accepted Method
Owner’s Control/input Over Project
Completed Set of Documents When Bid
Competitive Pricing
Single Point of Contact for Warranty Issues
Disadvantages
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Don’t Know Price Until Bid Day
Additional Design Time
Owner Liable for Design Errors & Omissions
Can Create Adversarial Relationships
No Contractor Input During Design
Low Bidder Not Necessarily Most Qualified
Why Design – Bid – Build?
Works Best With:
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Relatively Little Staff Experience Required
Cooperative A/E and Contractor Community
Restrictions on other Delivery Methods
Adequate Staff to Handle Multiple Projects
Time Not Restrictive
OK if:
 Willing to Accept Change Orders
Why Design – Bid – Build?
Does Not Work Well If:
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You Don’t Want Claims
You Want Most Qualified Contractors
You Need Contractor Input During Design
Cooperative Attitude Does Not Exist
Mandated Minority Involvement
Construction Method
DESIGN - BID - BUILD
CONSTRUCTION
MANAGEMENT
DESIGN - BUILD
PM/CM
AGENCY
DESIGN – BID – BUILD
select a/e
design
CCAP
bid/award
build
DESIGN – BUILD
select a/e
design
select d/b
GMP (CCAP)
design
build
CM AT RISK
select a/e
design
select cm
early bids
GMP (CCAP)
build
PM/CM AGENCY
select a/e
design
select cm
CCAP
early bids
build
Design – Build
Owner
Construction
Manager
(Agency)
Architect/
Engineer
Sub-Contractor
Design-Build
Owner
Contractor
Sub-Contractor
Sub-Contractor
Design – Build - Two Phase (1 Project)
Site
Prog
Legal
Finance
Security
Costs
Env
Soils
TSA
Baggage
MBE
Owner
Tech
Airlines
Tenants
Design
Builder
SUBCONSULTANTS
SUBCONTRACTORS
Well Defined Scope
Single Point of Resp
Informed staff
Design – Build
Advantages
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Single Responsible Entity for Design & Construction
Minimizes Design – Construction Risk
Potentially Less Time / Earlier Knowledge of Cost
Reduction in Disputes
Potential for Construction Methods Integrated into
Design – Creative Solutions Through Collaboration
Design – Build
Disadvantages
 Owner Must Carefully Define Program (Bridging
Documents)
 Contractor Control May Impact Quality Level
 Changes Due to Late Program Alterations
 Legal Issues with Use
 Selection Process Can Delay Start
 Potential Loss of Control During Design Process
 Changes Can Happen Without Owner Involvement
Which Owner May Not Desire
 No Checks/Balances Between Architect/Contractor
(Unless Separate A/E Engaged for Bridging and
Oversight)
Evaluation
Works Best With:
 Well-Defined Scope
 Specifically Constructed D/B Contract
 You Want Little Risk (all responsibility with
Design/Builder)
 You have No Legal Restrictions on Use
Evaluation
Does Not Work Well If:
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You Want Input During Design
You want Local/Minority Participation (Sometimes)
There is Not a Shared Understanding
There is Not a Well-Defined Scope
Construction Method
DESIGN - BID - BUILD
CONSTRUCTION
MANAGEMENT
DESIGN - BUILD
PM/CM
AGENCY
DESIGN – BID – BUILD
select a/e
design
CCAP
bid/award
build
DESIGN – BUILD
select a/e
design
select d/b
GMP (CCAP)
design
build
CM AT RISK
select a/e
design
select cm
early bids
GMP (CCAP)
build
PM/CM AGENCY
select a/e
design
select cm
CCAP
early bids
build
Construction Management at Risk
Owner
Construction
Owner
Manager
Architect/
Engineer
Consultants
Sub
Sub
Suppliers
Sub
Construction Management at Risk
Prog
Legal
Finance
Site
TSA
Soils
Tenants
Baggage
Security
Costs
Env
Owner
MBE
Tech
Airlines
Architect/
Engineer
Construction
Manager
SUBCONSULTANTS
SUBCONTRACTORS
Construction Management at Risk
Advantages
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Qualifications Based Selection (QBS)
Ability to Fast Track construction
One Point of Responsibility for Project Delivery
Advanced Input on Constructability and Costs
Budgeting Control with CM’s Input
Opportunities for Minority Participation Enhanced
Disadvantages
 CM Acting as Contractor
 Importance of Selecting Right CM – Must be Good at
Pre-con and Build
 No Contract Between AE and CM
 Changes – from Owner’s Contingency or CM
Contingency?
Evaluation
Does Not Work Well If:
 You Don’t Structure your Contracts Well as a “Family”
of Contracts
 You Don’t Know up Front Difference Between “Cost of
Work” and Reimbursables and Fee
 You Don’t Understand the Contractor’s Pricing
Intimately
 AE is Not Familiar with this Approach
Construction Method
DESIGN - BID - BUILD
CONSTRUCTION
MANAGEMENT
DESIGN - BUILD
PM/CM
AGENCY
DESIGN – BID – BUILD
select a/e
design
CCAP
bid/award
build
DESIGN – BUILD
select a/e
design
select d/b
GMP (CCAP)
design
build
CM AT RISK
select a/e
design
select cm
early bids
GMP (CCAP)
build
PM/CM AGENCY
select a/e
design
select cm
CCAP
early bids
build
PM/CM Agency
Owner
Architect/
Engineer
Prime
Contractor
PM/CM Agency
Prime
Contractor
Sub-Contractor
PM/CM Agency
Owner
Architect/
Engineer
PM/CM Agency
SUBCONSULTANTS
TRADE or PACKAGE
CONTRACTORS
PM (Multiple Projects)
Security
Finance
Site
Tenants
Baggage
Costs
Env
MBE
Owner
Legal
Soils
TSA
Prog
Program
Owner
Manager
Tech
Airlines
Architect/
Engineer
Contractor
Construction
Manager
Design-Build
SUBCONSULTANTS
SUBCONTRACTORS
PM/CM Agency
Advantages
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Ability to Use Multiple Delivery Methods
Ability to Fast Track Construction
Competitive Pricing on Smaller Packages
Minority Participation can be Encouraged if Bidding
Done Properly
 Ability to Budget for the “Total Costs” of Building
Program
 Facilitator
 All Savings to Owner
PM/CM Agency
Disadvantages
 Conflict from AEs and GCs who Feel the PM is
Interfering with Their Relationship with Owner
 Upfront Costs may Appear High
 Misunderstanding of Roles/Responsibilities
Evaluation
Works Best When:
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Local Participation is Important
Required Minority Participation
Need for Input During Design from Contractor
Shared Understanding of Project
Need to Extensively Check as Built Conditions
Cost Containment is Important
OK if:
 Staffing is Adequate to Handle Paperwork/Changes
 You Need Design Input
 Schedule Needs to be Accelerated
Evaluation
Does Not Work Well If:
 You Don’t Want to Deal with Change Orders (risk)
 Your Architect Does Not Understand Multiple Bid
Packaging (May Add Fee)
 You Want Guaranteed Cost
 You Don’t Understand Ways Fees are Calculated
Conclusion
 There is No “Right” or “Wrong” Way – All
Methods have their Pros and Cons
 Understand the Difference Between “Delivery
Methods” and “Management Methods”
 Understand the Existing Owner/AE/PM/CM
Structure and their Concerns
 Risk/Control/Reward must Balance
 Relationships Rule the Day
Construction Delivery & Management Methods
FOR AIRPORTS
By Glenn M. Jardine, PE