Transcript Project Delivery Systems - Civil Engineering Department

FACULTY OF ENGINEERING
DEPARTMENT OF CIVIL ENGINEERING
2014-2015 SPRING SEMESTER
CIVL 493 CONSTRUCTION MANAGEMENT
ASSOC.PROF.DR. İBRAHİM YİTMEN
PROJECT DELIVERY SYSTEMS
STRUCTURE
• Facility delivery process
• Planning
• Design
• Construction
• Startup and Commissioning
• Operation and Maintenance
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STRUCTURE
• Market Sector Versions of Facility Delivery Process
• Commercial
• Industrial
• Highway
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STRUCTURE
• Project delivery methods
• Design-Bid-Build
• Phased Construction
• Design-Bid-Build-Warranty
• Design-Build
• Engineer-Procure-Construct
• Indefinite Delivery/Indefinite Quantity
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STRUCTURE
• Commercial contract terms
• Lump Sum
• Cost-Plus-Fee
• Unit Price
• Alternate Methods for Contract Award
• A+B (Time + Cost, Multiparameter)
• Best Value (Price + Quality)
• Bid Averaging Method
• Optionally Combined Bidding
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STRUCTURE
• Examples
• Financing options
• Recommendations
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PROJECT DELIVERY SYSTEMS
• General characteristics
• Project-driven
• Participants include owner, designer/arch./engineer,
contractor, specialty contractors, vendors, and material
suppliers
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PARTIES TO A PROJECT
Vendors
Contractor’s Insurance
Designer Insurance
Owner’s Insurance
Suppliers
Owner
Permanent Lender
Architects
Engineers
PROJECT
Consultants
Interim Lender
National Government
Regional Government
Attorneys
Accountants
Unions
Local Government
Project Management
Specialty Contractors General Contractor
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GENERAL CHARACTERISTICS
• Different ways to organize participants, to assign
roles, responsibility, and risk  MANAGEMENT
• Timing of participation
• Relationships to other players
• Linked to construction industry trend of shorter life
cycles
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FACILITY DELIVERY PROCESS
• Process in which ideas are transformed into useful
facilities
• Every construction project is completed with a Facility
Delivery Process
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FACILITY DELIVERY PROCESS
Ability to Influence Cost
High
5-15%
Planning
2-20%
Design
65-93%
Construction
0.5-5%
Capital
Investment
Operation &
Maintenance
Startup &
Commissioning
Low
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Time
“LET ME SEE THOSE BLUEPRINTS AGAIN”
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FACILITY DELIVERY PROCESS
• Planning
• owner expresses a need for a new facility
• concepts are worked out
• feasibility studies are a must
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FACILITY DELIVERY PROCESS
• Design
• Where the majority of engineering takes place
• Detailed plans and specifications are developed
• Owner’s initial ideas are further refined
• Owner gives go-ahead
• Contract is bid and awarded
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“ALL WE DO IS PUT IT ON PAPER. IT’S
YOUR JOB TO BUILD IT.”
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There Comes A Time in The
History Of Every Project When
It Becomes Necessary to Shoot
the Engineers and Begin
Production
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DO YOU MEAN YOU WANT THE REVISED
REVISION OF THE ORIGINAL REVISED
REVISION REVISED?
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FACILITY DELIVERY PROCESS
• Construction
• Where the physical manifestation of the design
appears
• Design often continues through construction
• Startup and Commissioning
• Verifying whether the constructed facility operates as
designed
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FACILITY DELIVERY PROCESS
• Operation and Maintenance
• Owner accepts built facility
• Facility continues in O&M until it is renovated or
decommissioned
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COMMERCIAL BUILDING CONSTRUCTION
Design Phase
 Program or Conceptual Phase
 Pre-Schematic Phase
 Schematic Phase
 Design Development Phase
 Construction Document Phase
Phase
FACILITY DELIVERY PROCESS -
Planning Phase
 Strategic Plan
 Preliminary Feasibility
 Final Feasibility
Occupancy Phase
 Prior to Completion of
Contract Documents
 After Completion of Contract
Document
h
F-2
F-3
D-1
D-2
D-3
D-4
Fast
Track
Construction Phase
 Sitework
 Shell
 Interior
Procurement Phase
 Prior to Completion of
Contract Documents
 After Completion of Contract
Documents
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F-1
D-5
Fast Track
C-1
Fast Track
C-2
C-3
P-1
P-2
Phased
Procurement Plan
O-1
Special
Systems
Time
O-2
FACILITY DELIVERY PROCESS INDUSTRIAL CONSTRUCTION
Concepts and
Feasibility Phase
Phase
Process Design
Phase
Preliminary
Engineering Phase
Detailed Design and
Procurement Phase
Construction and
Installation Phase
Time
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FACILITY DELIVERY PROCESS HIGHWAY CONSTRUCTION
• Planning Phase
A. Feasibility and needs assessment
B. Scoping report
• Design Phase
A. Preliminary engineering
B. Plans, specifications and estimate
C. P.S. & E. review and approve
• Construction Phase
A. Pre-construction
B. Construction
C. Post construction
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PROJECT EXPENDITURES
+
+
Cost
Influence
Cost of
Change
Time
* Fixed Price
Traditional
SD
DD
CD
B
Construction
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METHODS OF DELIVERY
• Selecting a project delivery system depends on:
•
•
•
•
•
•
Complexity of the project
Owner's resources and risk management
Past experience
Corporate policy
Value of time
Value of innovation
• Owner assumes risk in selecting a project delivery
system: losses occur if need is not met
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DESIGN-BID-BUILD CONTRACT
• Also known as hard-money or competitively bid
contract
• Designer and contractor are usually different entities
• 3 distinct phases
• Cake mix analogy
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DESIGN-BID-BUILD CONTRACT
• Design Phase
• Arch./designer develops plans and specs to meet
owner's needs
• Engineers design building systems (structural,
mechanical, electrical, etc.)
• Decisions made about equipment, materials, and
methods
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DESIGN-BID-BUILD CONTRACT
• Bid Phase
• Several general contractors bid on design documents
• Owner receives firm price offers for work
• Contract normally goes to the lowest bidder
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DESIGN-BID-BUILD CONTRACT
• Build Phase
• A fixed price contract is signed by the owner and
contractor
• Contractor assumes financial risk of project
• Contractor wants to minimize costs and maximize profit
• No incentive to increase quality beyond minimum
standards
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ADVANTAGES OF DESIGN-BID-BUILD
• Very familiar to industry participants
• Large body of case law
• Model contracts
• Structures geared toward system
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DISADVANTAGES OF DESIGNBID-BUILD
• Incentives to build cheap
• Litigation: leads to cost and schedule overruns
• No incentive for innovation
• Owner assumes most of the risk beyond the contract
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“HE WAS THE LOWEST BIDDER”
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PHASED (FAST-TRACK)
CONSTRUCTION
• Form of design-build where all parties are brought in
at the beginning
• Stages of design and construction are overlapped
• Time from conception to use is substantially reduced
• A construction manager may be used to coordinate
between all parties
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PHASED CONSTRUCTION
• Design phase
• Owner, designer, engineers, general contractors, and
mechanical and electrical specialty contractors form a
team to develop design
• General contractor evaluates design's cost and time
implications
• This allows designer to maintain owner's goals within
budget, sometimes leads to major design changes which
could not be made later
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PHASED CONSTRUCTION
• Construction phase
• Project is being designed, bid, and built in stages
• Excavation, foundations, and structure are bid and
started before design work is finished
• Mechanical and electrical are bid and built while finding
and partition work are still being designed
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PHASED CONSTRUCTION
• A construction manager (CM) can coordinate between
parties in this arrangement
• A pure construction manager will not guarantee a budget or
schedule nor will they perform any work on site
• A construction manager at risk will guarantee and perform
work that is critical to control cost and schedule
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PROJECT DELIVERY SYSTEMS
+
+
Cost
Influence
Cost of
Change
Time
* Fixed Price
Traditional
Construction
Management
(Phased
Construction)
SD
DD
CD
B
SD
DD
CD B Construction
CD B Construction
CD
B
CD
Construction
Construction
B Construction
* Fixed Price
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DESIGN-BID-BUILDWARRANTY: DEFINITION
• Warranty:
A guarantee of the integrity of a
product and of the maker’s responsibility for the
repair or replacement of deficiencies. A warranty is an
absolute liability on the part of the Warrantor, and the
contract is void unless it is strictly and literally
performed. It usually is applied to manufactured
products and their qualities, although it could apply to
design and construction. Donn Hancher - NCHRP Synthesis of
Highway Practice 195 - “Use of Warranties in Road Construction”
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DISTRIBUTION OF THE COMPLETED
WARRANTY PROJECTS
PAVEMENT
MARKING
21%
ASPHALT
15%
MICROSURFACING
3%
BITUMINOUS
CRACK
TREATMENT
4%
BRIDGE
COMPONENTS
1%
CHIP SEALING
2%
BRIDGE
PAINTING
54%
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TYPICAL WARRANTY
SPECIFICATION
• Product
• Length of Warranty
• Award of Contract
• Bonds
• Maintenance
• Conflict Resolution Team
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TYPICAL WARRANTY
SPECIFICATION
• Contractor Rights & Responsibilities
• Owner Rights & Responsibilities
• Performance Indicators
• Requirements for Corrective Action
• Basis of Payment
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DESIGN-BUILD CONTRACT
• Designer and contractor can be separate entities or
same organization
• Top 100 Design-build firms generated $36.0B in 1995up from $32.2B generated by the ENR Top 400 in 1994
• ENR estimates Design-build firms shares 31-32% of the
non-residential market in 1997
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