DES ESIGN & CONSTRUCTION SER ERVICES November 29, 2017 1 - - PDF document

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Procurement Con Conference 2017

November 29, 2017

DES ESIGN & CONSTRUCTION SER ERVICES

November 29, 2017

NCDOA - State Construction Office

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Who is s SCO?

• Agency within the Department of Administration
• Staffed with 62 Architects, Engineers, Inspectors and

Admin

• Per Statute has the responsibility that can be

summarized as the overall coordination and management for implementation of the State’s Capital Improvement Program

State e Con

• nstr

tructio ion Offic ice

The only independent agency that conducts a broad- based comprehensive review of the entire project to ensure value for the public funds committed for the project and enhance the success of the project through compliance with statutory requirements. In addition, each project gains real-time benefit from other projects statewide – present and past.

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Offic ice e Organiz izatio ion

• FCAP SECTION
• CONTRACT SECTION
• DESIGN REVIEW SECTION
• CONSTRUCTION ADMIN SECTION
• CONSULTING SECTION

GS 143-341 Powers and Du Duties of

• f De

Department

(3)Architecture and Engineering

• a. To examine and approve all plans and specifications

for the construction or renovation of:

• 1. All State buildings* or buildings located on State

lands, except those buildings over which a local building code inspection department has and exercises jurisdiction; and *except does not apply to UNC projects < $2,000,000

• 2. All community college buildings requiring the

estimated expenditure of construction or repair work for which public bidding is required under G.S. 143-129 prior to the awarding of a contract for such work; and to examine and approve all changes in those plans and specifications made after the contract for such work has been awarded. (>$500,000)

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b. To assist, as necessary, all agencies in the preparation

• f requests for appropriations for the construction or

renovation of all State buildings

• b1. To certify that a statement of needs pursuant to

G.S. 143-6 is feasible. For purposes of this sub- division, “feasible” means that the proposed project is sufficiently defined in overall scope; building program; site development; detailed design, construction, and equipment budgets; and comprehensive project scheduling so as to reasonably ensure that it may be completed with the amount of funds requested. At the discretion of the General Assembly, advanced planning funds may be appropriated in support of this

• certification. This sub-division shall not apply to

requests for appropriations of less than one hundred thousand dollars ($100,000).

c. To supervise the letting of all contracts for the design, construction or renovation of all State buildings and all community college buildings whose plans and specifications must be examined and approved under a.2. of the subdivision. d. To supervise and inspect all work done and materials used in the construction or renovation

• f all State buildings and all community colleges

whose plans and specifications must be examined and approved under (a.2) of this subdivision; and so such work may be accepted by the State or by any State agency until it has been approved by the Department

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§ 143-345.11. Secretary's approval of plans for State buildings required.

• (a)

No agency or other person authorized or directed by law to select a plan and erect a building for the use of the State or any State institution shall receive and approve of the plan until it is submitted to and approved by the Secretary as to State construction standards and at a minimum as to the safety of the proposed building from fire, including the property's occupants or contents.

Owner ers

• Agencies (10)
• Administration, Agriculture, Cultural Resources,

Environmental Quality, Health & Human Services, Justice, Public Instruction, Public Safety, Transportation

• Universities (17)
• ASU, ECU, ECSU, FSU, NCA&T, NCCU, NCSU, UNCA, UNC-

CH, UNCC, UNCG, UNCP, UNCW, NCSA, WCU, WSSU, NCSSM

• Community Colleges (58)

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Ca Capital Im Improvement Process

• OC-25 PREPARATION (from FCAP report) – Owner, SCO
• APPROPRIATION OF FUND – General Assembly, OSBM
• DESIGNER SELECTION PROCESS – Owner , SCO
• PLAN REVIEW & APPROVAL – Regulatory Agencies , SCO
• AWARD OF CONSTRUCTION CONTRACT(S) – AG Office , SCO
• CONSTRUCTION ADMINISTRATION – Owner/Designer , SCO

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PROCESS FOR OR CAP CAPITAL PROJECT CT AUTH THORIZATI TION

INITIAL PROJECT CONCEPT

• FCAP Reports
• Occupant and Program

Needs FURTHER PROJECT DEVELOPMENT

• Detail Project Scope
• Prepare Cost Estimate
• Prepare Advance Planning

for Large or Complex Projects COST CERTIFICATION PROCESS

• Agency Prepares and

Submits Cost Estimate Form OC-25 to State Construction Office

• State Construction Office

Reviews and Approves OC-25 CAPITAL BUDGET REQUEST PROCESS

• Agency Prepares Capital and R&R

Budget Request

• Agency Submits to OSBM
• OSBM Seeks General Assembly

Approval

• Upon General Assembly Approval,

OSBM Notifies Agency of Project Authorizations

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PROCESS FOR OR CAP CAPITAL PROJECT CT IMP MPLEMENTATION

DESIGN PHASE

• Designer Selection
• Advertisement

Interviews and Recommendations (SCO & Owner)

• Approval by SBC
• Design Contract Negotiation

(SCO)

• Plan Review and Approval

(SCO, Owner, Other Regulatory Agencies) BIDDING PHASE

• Advertisement through IPS
• Prepare Contract Award

Letter (SCO)

• Verify Funding, Insurance,

Contract Documents (SCO, OSBM, AG’s Office) CLOSE-OUT PHASE

• Participate in Final

Inspection and Provide Final Acceptance

• Verify Completeness of

Close-Out Documents

• Address Construction

Claims, if any CONSTRUCTION PHASE

• Coordinate Construction

Progress

• Inspect Progress and Quality of

Work

• Final Approval of Change Orders
• Dispute Resolution with Goal to

Avoid Formal Claims

• Monitor to Ensure Adherence to

contract documents

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FCA CAP

• Responsible for reviewing the condition of state-owned facilities and the

preparation of a Facility Condition Assessment Report with prioritized recommendations and estimated costs for the correction of deficiencies.

• Basis of OC-25 used by Owners.
• State’s facility inventory consists of approximately 12,000 total buildings. The

smallest building is the Sentry Post at Tryon Palace at 9 sf. The largest is at the Global Transpark listed at 600,000 sf. The inventory of facilities comprises 118,145,712 total sf. The approximate insurable value, as listed by the State Property Office, is $25.6 billion dollars.

• FCAP assesses all state-owned property of 3,000 gross sf & larger, which

constitutes a total of 4,336 buildings out of the total 12,000 state facilities. This represents 36% of the facilities that the state owns. However, the square footage of the buildings assessed totals approximately 111,436,870 sf which represents 94 % of the total gross sf and 95% of the total insurable value of all state-owned facilities.

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Des Desig ign Con Contracts ts

• Advertisement for Design Services
• Designer Interviews
• Presentation to the SBC for Design selection
• Creating contract document between Owner and Designer.
• Fees Negotiation of Design Contract
• Other types of Design Contract: Advance Planning, Design

amendment, Commissioning, Special inspections…

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Des Desig ign Reviews

• Compliance with the State Construction Manual
• Contractual Issues - Budget, Design and Construction Contracts
• Statutory requirements for Public Work – MBE, 133-3, 143-128

&129, etc.

• Procedural Issues - State Building Commission
• SCO Standard Forms and Documents
• SCO Technical Guidelines for State Facilities
• Electrical, Roofing, Metal Building, Masonry, Modular, etc.
• Flood Plain Permit
• Appropriate use of materials and methods of construction
• Ease of maintenance (50 year buildings)
• Economy of design and materials
• Clear and sufficient bid documents
• Reduce errors and omissions
• Industry Standards - UL, FM, ACI, ASTM, AISC, etc.
• Insurability
• State Building Code – General, Electrical, Plumbing,

Mechanical, ADA, Energy

• Code Data Summary Sheet
• Occupancy Classification (Business, Assembly,

Institutional, etc.)

• Building Construction Type (I, II, II, etc.) Steel,

Concrete, Wood

• Fire Protection Ratings (1-hr, 2-hr, NC, etc.)
• Life Safety: Egress, Sprinkler, Fire and Smoke Alarm

standards

• Accessibility and ADA

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Imp Importance of

• f a

a Goo Good Review

• Design professionals demand a review. Check, double

check and triple check

• Peer review improves quality of finished product
• Saves time and money
• Prevents mistakes that have to be corrected during the

construction and post construction

• Eliminates Life Safety Issues
• Complete thorough Reviews are crucial to a successful

Inspection

• Many Building Code concerns are not an issue at inspection

because many code “violations” are resolved during the Design Review

Con Construction Co Contr tract

• Responsible for ensuring design has been approved prior

to bidding

• Monitor bid openings for General Statute requirements
• Address and resolve any bid disputes
• Issue Contract Award Letter and work with OSBM to

confirm adequate funding is in place, including construction contingency funds

• Verify insurance documents, MBE documents, bonds, and

contracts for accuracy and completeness, prior to releasing executed contracts

• Execute contract through the AG Office

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Con Construction Admin inis istrati tion

• Assign project monitor to participate in the preconstruction meeting
• Establish schedule, verify safety procedures and establish inspection

milestones

• Conduct as minimum monthly progress meetings to be attended by all

parties, contractors, owner, designer and SCO monitor

• Administer and approve Proposed Change Orders
• Verify compliance with contract documents
• Preside over potential disputes to avoid construction claims
• Conduct inspections of work, including all life safety inspections
• Perform the final inspection for acceptance into the State system
• Review and approve close-out documents
• Assist in Claim Resolutions

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DESIGNER

SCO

Owner Owner

B I D S

CONTRACTOR

SCO

DESIGNER

CHANGE = $ ERROR = $ OMISSION= $ ADDITION = $ CHANGE = $

$ $

AGENCIES

Construction Design & Review Process

Compliance with: Codes Statutes Regulations Procedures Contract Program Budget Codes Errors Omissions Guidelines Consistency Standards

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Ins Inspect t for

• r .

. . . .

• Plan and Specification Compliance
• Progress of Construction
• Performance
• System Operation
• Code Compliance
• Good Workmanship and Quality

Inspection Areas

• Fire Doors, Fire/Smoke Dampers, Fire Rated Corridors, Wall

Penetrations, Fire Rated Shafts, Fire Alarm System, and Emergency Generator

• Facility Egress & ADA Accessibility
• Roofs
• Waterproofing
• HVAC System Operation
• Electrical
• Finishes

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The TEAM shall only have one underlying focus:

Absolutely nothing is more important than the safety of the general public, state employees, students and residents using State owned facilities.

Construction Questions! Formal vs. Informal What should I Know?

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Formal vs Informal Contract

• Formal or Informal is really whether the owner

publicly has to advertise or not

• G.S. 143-129 has requirements for any project with

an estimated expenditure of public money >= $500,000

• Therefore, a project >= $500,000 of public money =

Formal

Formal Project Requirements

• Must be publicly advertised in a newspaper with

general circulation in NC

• 21 full days must elapse between date of advertisement

and opening of bids

• Proposals shall be sealed
• Proposals shall be opened in public
• No proposal can be considered if not accompanied by a

5% bid security (cash, cashier’s check, certified check, bid bond)

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• Minimum of 3 proposals must be received to open

after 1st advertisement

• If 3 bids not received then owner must re-advertise

for a minimum of 7 days

• On second bid opening, owner can open if less

than 3 bids are received

• Bids must be opened within a state facility, it can

not be opened in a private facility

• It has to comply with MBE requirements

Informal Project Requirements

• Does not require advertisement in the newspaper
• Does not require the receipt of 3 bids to open at the 1st

bid opening

• If owner desires, bids may be received electronically
• Does not require bid security or performance and

payment bonds – Owner may require

• But it does have to comply with MBE requirements

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Delivery Methods in NC

Prior to 8/23/2013

1. Separate Prime Bidding (Multiprime) 2. Single Prime Bidding 3. Dual Bidding 4. Construction Manager at Risk 5. Alternative Contracting Methods

Additional Delivery Methods for NC

As of 8/23/2013

• 1. Design Build
• 2. Design Build Bridging
• 3. Public Private Partnership

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Design Build Process

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Owner Needs

Governmental entity shall establish in writing the criteria used for determining the circumstances under which this is the appropriate method and this criteria shall address, at a minimum, all of the following:

• Extent to which the project requirements can adequately and

thoroughly define the project requirements

• Delivery time constraints
• Ability to ensure a quality project can be delivered
• Capability of owner to manage and oversee the project, including

the availability of staff or outside consultants who are experienced

• A good faith effort per 143-128.2 and to recruit and select small

business entities

• Criteria used by owner, including a cost & benefit comparison of

using design-build in lieu of separate prime, single prime, or CMR

State Owners Need Money

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RF RFQ

• Public Notice (Advertisement – 15 days)
• Project Site
• Project Scope
• Anticipated Project Budget
• Project Schedule
• Selection Criteria and the Weighting of Criteria
• Notice of any special rules, ordinances or goals
• Other Information
• Statement telling design builder he shall submit with

response an explanation of its project team selection, which shall consist of either

• List of licensed contractors, subcontractors and design

professionals on the team

• Outline of the strategy the design-builder plans to use for open

contractor and subcontractor selection based on Art. 8 of GS 143

Evalu luatio ion

• Follow Designer & CMR Selection Procedures
• Committee reviews responses
• Committee interviews 4-6 firms
• Firms are ranked in order of qualifications
• SBC or BOT will approve order
• Negotiations with the #1 firm commences
• If a fair price cannot be negotiated with #1, negotiations

will move to #2, etc.

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Design Build Bridging Process

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Ow Owner Nee eeds

Governmental entity shall establish in writing the criteria used for determining the circumstances under which this is the appropriate method and this criteria shall address, at a minimum, all of the following:

• Extent to which the project requirements can adequately and

thoroughly define the project requirements

• Delivery time constraints
• Ability to ensure a quality project can be delivered
• Capability of owner to manage and oversee the project,

including the availability of staff or outside consultants who are experienced

• A good faith effort per 143-128.2 and to recruit and select

small business entities

• Criteria used by owner, including a cost & benefit comparison
• f using design-build in lieu of separate prime, single prime, or

CMR

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State Owners Need Money

Des Desig ign Crit Criteria Des Desig ign Professio ional - Brid Bridging

• Will be selected to provide 35% drawings
• Follow Designer & CMR Selection Procedures
• Committee reviews responses
• Committee interviews 4-6 firms
• Firms are ranked in order of qualifications
• SBC or BOT will approve order
• Negotiations with the #1 firm commences
• If a fair price cannot be negotiated with #1, negotiations

will move to #2, etc.

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Des Desig ign Crit Criteria Package

• Why?
• Includes what?
• Programmatic needs, interior space requirements,

intended space utilization

• Physical site characteristics such as topo survey
• Material quality standards or performance criteria
• Special material requirements
• Provisions for utilities
• Parking requirements
• Type, size and location of adjacent structures
• Preliminary drawings and specs sufficient in detail to allow

design-builder to make proposal

• Notice of any rules, ordinances or goals of the owner

Evalu luatio ion – Des Design Buil Builder

• Follow Designer & CMR Selection Procedures
• Committee reviews responses
• Committee interviews 4-6 firms
• Top three firms are grouped without ordinal ranking
• Owner will then open sealed envelopes of those 3

and the lowest responsive bidder will be selected based on cumulative amount of design-builder’s general conditions, design-builder’s fee for general construction services and design-builder’s fee for design services.

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Aft fter Sele Selecti tion

Design Builder shall accept bids from all first tier subcontractors per Article 8. (All the same rules that the State has to follow on Single prime bids)

Prequalif ificati tion

• Not required on separate, single or dual prime
• bidding. Owner’s choice
• CMR 1st tier subs are required to be prequalified.

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Bi Bid Wit ithdrawal

• You have the right to withdraw your bid, without

penalty, if you made a substantial mistake, you can document it, and you request to withdraw within 72 hours of bid opening

• Owner will convene a hearing to determine if your bid

security is released

• Once you withdraw you can have absolutely nothing to

do with that project

We Have A Contract!

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Now! Let’s plan for a successful project!

Let’s built what we agreed on?

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Accept Responsibility

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Questions? Thank you!

Latif Kaid, P.E. Latif.kaid@doa.nc.gov (919) 807-4100 http://www.nc-sco.com/