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

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. 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 Architect designs District publically bids General Contractor building in detail and construction documents builds project based on produces complete and awards to lowest construction documents. set of bidding responsive and Errors and omissions documents responsible bidder are addressed by change order. 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 2

PROS Design-Bid-Build CONTRACT STRUCTURE › Most common delivery method › Owner maintains control of project through Design Owner CONS › Sequential relationship between design, bidding, and General construction can lengthen Architect Contractor project schedule › Construction cost established after DSA approval Low-bid Low-bid Low-bid › Cost overruns or schedule Sub Sub Sub changes can create Contractor Contractor Contractor adversarial relationships between the owner, builder, and designer Small Large Size Simple Complex Schedule › Greatest risk of Simple Complex Site general/subcontractor failure Standard Landmark Quality › Greatest risk of schedule Low High Control overrun 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 3

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 Design Build Construction Architect designs District publically bids Oversight District or Construction building in detail and discrete scope Manager coordinates produces multiple sets CM provides packages and awards and oversees trade of bidding documents constructability each package to lowest contractors. for discrete review & value responsive and construction scopes engineering responsible bidder 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 4

PROS CM Multi-Prime CONTRACT STRUCTURE › Efficient delivery method for small/simple projects › Owner controls project from design through construction Owner › Owner may contract with a construction manager to oversee prime contractors Construction CONS Architect Manager › Overhead costs can escalate, because each prime contractor has overhead that cannot be Sub Sub Sub shared, i.e.: insurance Contractor Contractor Contractor premiums, trailers, scaffolding, etc. › Heavy administrative burden Small Large Size Simple Complex Schedule › Owner accepts risk of all Simple Complex Site contracts and construction coordination Standard Landmark Quality Low High Control 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 5

CM Multi-Prime IMPACT ON DISTRICT STAFF Procurement Contracts Accounting District Standards Change Orders Close Out Contractual Control Complex Simple D-B-B 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

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 3 CM builds facilities and 2 leases them back to district for a specified time and cost 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 7

PROS Lease-Leaseback CONTRACT STRUCTURE › LLB Agent is chosen based on best value › LLB Agent provides design assist Owner › Subcontractors selectively bid › LLB Agent maintains facility during the lease period › Subcontractors can be chosen Architect LLB Agent for quality and reliability, rather than for lowest cost CONS Sub Sub Sub Contractor Contractor Contractor › Overall cost can be higher › Guaranteed Maximum Price Small Large (GMP) is negotiated after DSA Size approval Simple Complex Schedule Simple Complex Site Standard Landmark Quality Low High Control 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 8

Lease-Leaseback IMPACT ON DISTRICT STAFF Procurement Contracts Accounting District Standards Change Orders Close Out Contractual Control Complex Simple D-B-B 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

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. Design Build Entity Programming & Detailed Design Project with Construction Requirements Constructability Oversight 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 10

PROS Design-Build CONTRACT STRUCTURE › Design-build entities can be chosen by design competition or chosen by qualifications Owner › 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 Contractor Architect › Collaborative relationship between contractor and architect CONS Sub Sub Sub Contractor Contractor Contractor › Complex contractual relationship › Architect is hired by the contractor, not the district Small Large Size › Some contracts allow the owner Simple Complex Schedule less design control Simple Complex Site Standard Landmark Quality Low High Control 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 11

Design-Build IMPACT ON DISTRICT STAFF Procurement Contracts Accounting District Standards Change Orders Close Out Contractual Control Complex Simple D-B-B 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

SJECCD Project Delivery Historic Record PROJECT LIST BY DELIVERY METHOD Design- CM Multi- Lease- Design- Bid-Build Prime Leaseback Build › District Office › EVC › SJCC Physical › EVC Acacia Automotive Building Tenant Education Phase II Technology Improvements Building Building › EVC Student › SJCC Multi- › EVC Acacia Services Disciplinary & › EVC South Phase I & III Welcome Arts Building Campus MS3 Center and Building Second Floor › Milpitas Campus › SJCC Library Extension Renovations

Project Recommendations CONSTRUCTION DELIVERY METHODS

EVC Project Delivery Recommendations STUDENT SERVICES BUILDING Project Schedule Site Quality Recommended Size Complexity Logistics Expectations Control Delivery Student 7 7 2 7 7 LLB Services 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 15

EVC Project Delivery Recommendations LANGUAGE ARTS BUILDING Project Schedule Site Quality Recommended Size Complexity Logistics Expectations Control Delivery Language 6 2 6 4 3 DB Arts 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 16

EVC Project Delivery Recommendations STUDENT ACTIVITIES Project Schedule Site Quality Recommended Size Complexity Logistics Expectations Control Delivery Student 3 2 6 5 7 DBB Activities 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 17

SJCC Project Delivery Recommendations MAINTENANCE & OPERATIONS BUILDING S Bascom Avenue Project Schedule Site Quality Design Recommended Size Complexity Logistics Expectations Control Delivery Maintenance & 2 2 1 3 4 DBB Operations 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 18

SJCC Project Delivery Recommendations CAREER EDUCATION COMPLEX (NEW BUILD + 200 RENO) Project Schedule Site Quality Design Recommended Size Complexity Logistics Expectations Control Delivery CE Complex 7 5 4 7 6 DB 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 19