CONSTRUCTION CM Multi-Prime DELIVERY METHODS November 12, 2019 - - PowerPoint PPT Presentation

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Design-Bid-Build CONSTRUCTION CM Multi-Prime DELIVERY METHODS November 12, 2019 Lease-Leaseback Design-Build Design-Bid-Build Under Design-Bid-Build, plans and specifications are completed by an architect and then advertised for bid.

SLIDE 1

November 12, 2019

CONSTRUCTION DELIVERY METHODS

Design-Bid-Build Design-Build Lease-Leaseback CM Multi-Prime

SLIDE 2

Under Design-Bid-Build, plans and specifications are completed by an architect and then advertised for bid. Contractors bid the project exactly as it is designed, and the project is awarded to the lowest responsive, responsible bidders. The design consultant team is selected separately and reports directly to the District. The District retains all of the contracts.

Design-Bid-Build

Design

Architect designs building in detail and produces complete set of bidding documents

Bid

District publically bids construction documents and awards to lowest responsive and responsible bidder

Build

General Contractor builds project based on construction documents. Errors and omissions are addressed by change order.

2 C O N S T R U C T I O N D E L I V E R Y M E T H O D S

SLIDE 3

Design-Bid-Build

Owner

Architect

Low-bid Sub Contractor Low-bid Sub Contractor Low-bid Sub Contractor

PROS

› Most common delivery method › Owner maintains control of project through Design › Sequential relationship between design, bidding, and construction can lengthen project schedule › Construction cost established after DSA approval › Cost overruns or schedule changes can create adversarial relationships between the owner, builder, and designer › Greatest risk of general/subcontractor failure › Greatest risk of schedule

verrun

General Contractor

CONTRACT STRUCTURE CONS

3 C O N S T R U C T I O N D E L I V E R Y M E T H O D S

Size Schedule Site Quality Control Small Large Complex Simple Complex Simple Landmark Standard High Low

SLIDE 4

CM Multi-Prime

CM Multi-Prime provides the District greater flexibility than Design/Bid/Build in selecting the firm which is ultimately responsible for delivering the project. During design, the District awards a contract to a construction management firm (CM), which is selected based on qualifications. The CM does not typically perform any construction work, but manages the project for the District. Under CMMP delivery, the District awards numerous contracts to specific trade contractors on a low-bid basis. The District retains all of the contracts.. Bid

District publically bids discrete scope packages and awards each package to lowest responsive and responsible bidder

Build

District or Construction Manager coordinates and oversees trade contractors.

Construction Oversight

CM provides constructability review & value engineering

Design

Architect designs building in detail and produces multiple sets

f bidding documents

for discrete construction scopes

4 C O N S T R U C T I O N D E L I V E R Y M E T H O D S

SLIDE 5

CM Multi-Prime

Architect

Sub Contractor Sub Contractor Sub Contractor

Owner

Construction Manager

CONTRACT STRUCTURE

› Efficient delivery method for small/simple projects › Owner controls project from design through construction › Owner may contract with a construction manager to

versee prime contractors

› Overhead costs can escalate, because each prime contractor has overhead that cannot be shared, i.e.: insurance premiums, trailers, scaffolding, etc. › Heavy administrative burden › Owner accepts risk of all contracts and construction coordination

PROS CONS

5 C O N S T R U C T I O N D E L I V E R Y M E T H O D S

Size Schedule Site Quality Control Small Large Complex Simple Complex Simple Landmark Standard High Low

SLIDE 6

CM Multi-Prime

IMPACT ON DISTRICT STAFF

C O N S T R U C T I O N D E L I V E R Y M E T H O D S

Procurement Contracts Accounting District Standards Simple Change Orders Close Out Contractual Control Complex D-B-B

SLIDE 7

Lease-Leaseback

Lease-leaseback projects allow Districts, without advertising for bids, to lease property currently owned by the District to any lease leaseback agent for a predetermined lease period, which must exceed the construction

duration. Selection is based on a best value selection, combining price and qualifications. After the lease period,

the buildings vest to the District. This statutory language requires that the District lease its property to a chosen design/build contractor.

1

CM builds facilities and leases them back to district for a specified time and cost

2 3

C O N S T R U C T I O N D E L I V E R Y M E T H O D S

SLIDE 8

Lease-Leaseback

Owner

Architect

Sub Contractor Sub Contractor Sub Contractor

CONTRACT STRUCTURE

› LLB Agent is chosen based on best value › LLB Agent provides design assist › Subcontractors selectively bid › LLB Agent maintains facility during the lease period › Subcontractors can be chosen for quality and reliability, rather than for lowest cost › Overall cost can be higher › Guaranteed Maximum Price (GMP) is negotiated after DSA approval LLB Agent

PROS CONS

8 C O N S T R U C T I O N D E L I V E R Y M E T H O D S

Size Schedule Site Quality Control Small Large Complex Simple Complex Simple Landmark Standard High Low

SLIDE 9

Lease-Leaseback

IMPACT ON DISTRICT STAFF

C O N S T R U C T I O N D E L I V E R Y M E T H O D S

Procurement Contracts Accounting District Standards Simple Change Orders Close Out Contractual Control Complex D-B-B

SLIDE 10

Design-Build

In a Design-Build project, the contractor and architect form a single entity (DBE) to deliver a complete project based on a conceptual plan provided by the District. This method allows for greater control over the schedule, quality of work, and the efficiency of the project as conflicts between design and construction are significantly

reduced. The District holds one contract with the DBE, and the DBE holds all subcontractor contracts.

Programming & Project Requirements Detailed Design with Constructability Oversight Design Build Entity Construction

10 C O N S T R U C T I O N D E L I V E R Y M E T H O D S

SLIDE 11

Design-Build

CONTRACT STRUCTURE Owner

Architect

Sub Contractor Sub Contractor Sub Contractor

Contractor

› Design-build entities can be chosen by design competition or chosen by qualifications › Guaranteed Maximum Price (GMP) determined prior to construction › Risk can be transferred to the design-build entity earlier in design › Current legislation requires 60% skilled labor › Collaborative relationship between contractor and architect › Complex contractual relationship › Architect is hired by the contractor, not the district › Some contracts allow the owner less design control

PROS CONS

11 C O N S T R U C T I O N D E L I V E R Y M E T H O D S

Size Schedule Site Quality Control Small Large Complex Simple Complex Simple Landmark Standard High Low

SLIDE 12

Design-Build

IMPACT ON DISTRICT STAFF

C O N S T R U C T I O N D E L I V E R Y M E T H O D S

Procurement Contracts Accounting District Standards Simple Change Orders Close Out Complex D-B-B Contractual Control

SLIDE 13

SJECCD Project Delivery Historic Record

Design- Bid-Build CM Multi- Prime

› SJCC Physical Education Building › EVC Acacia Phase I & III › EVC Acacia Phase II › EVC Student Services Welcome Center and Second Floor › SJCC Library Renovations › EVC Automotive Technology Building › EVC South Campus MS3 Building › District Office Building Tenant Improvements › SJCC Multi- Disciplinary & Arts Building › Milpitas Campus Extension

Lease- Leaseback Design- Build

PROJECT LIST BY DELIVERY METHOD

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Project Recommendations

CONSTRUCTION DELIVERY METHODS

SLIDE 15

15 C O N S T R U C T I O N D E L I V E R Y M E T H O D S

EVC Project Delivery Recommendations

STUDENT SERVICES BUILDING

Project Size Schedule Complexity Site Logistics Quality Expectations Control Recommended Delivery

Student Services 7 7 2 7 7 LLB

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16 C O N S T R U C T I O N D E L I V E R Y M E T H O D S

EVC Project Delivery Recommendations

LANGUAGE ARTS BUILDING

Project Size Schedule Complexity Site Logistics Quality Expectations Control Recommended Delivery

Language Arts 6 2 6 4 3 DB

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17 C O N S T R U C T I O N D E L I V E R Y M E T H O D S

EVC Project Delivery Recommendations

STUDENT ACTIVITIES

Project Size Schedule Complexity Site Logistics Quality Expectations Control Recommended Delivery

Student Activities 3 2 6 5 7 DBB

SLIDE 18

18 C O N S T R U C T I O N D E L I V E R Y M E T H O D S

SJCC Project Delivery Recommendations

MAINTENANCE & OPERATIONS BUILDING

S Bascom Avenue

Project Size Schedule Complexity Site Logistics Quality Expectations Design Control Recommended Delivery

Maintenance & Operations 2 2 1 3 4 DBB

SLIDE 19

19 C O N S T R U C T I O N D E L I V E R Y M E T H O D S

SJCC Project Delivery Recommendations

CAREER EDUCATION COMPLEX (NEW BUILD + 200 RENO)

Project Size Schedule Complexity Site Logistics Quality Expectations Design Control Recommended Delivery

CE Complex 7 5 4 7 6 DB

SLIDE 20

Project Delivery Recommendations

EVERGREEN VALLEY COLLEGE

Project Size Schedule Complexity Site Logistics Quality Expectations Design Control Recommended Delivery

Student Services 7 7 2 7 7 LLB Language Arts 6 2 6 4 3 DB Student Activities 3 2 6 5 7 DBB

SAN JOSE CITY COLLEGE

*All criteria rated on a scale from 0-7 with 0 being smallest magnitude, 7 being largest magnitude.

C O N S T R U C T I O N D E L I V E R Y M E T H O D S

Project Size Schedule Complexity Site Logistics Quality Expectations Design Control Recommended Delivery

Maintenance & Operations 2 2 1 3 4 DBB Career Education 7 5 4 7 6 DB