DESIGN BID BUILD CSD HDR Contractor Sub Sub Sub - - PowerPoint PPT Presentation

DESIGN BID BUILD

CSD HDR Contractor Sub Sub Sub

DESIGN-BID-BUILD

 Most common approach in the US  Entirely sequential  Can be single-prime or multi-prime  District holds all contracts  Cost is the only criteria for selection (low bid process)

OWNERS IN DESIGN-BID-BUILD

 Selects the Architect, Inspector, Project Manager  Serves as a single point of feedback during design  Awards contact to low bid contractor  Must oversee all contract relationships; active participation

ARCHITECT DESIGN-BID-BUILD

 Prepares and interprets Plans and Specs  Manages bid process(if not by owner)  Provides some level of construction admin  Approves/verifies pay requests and change orders

GC IN DESIGN-BID-BUILD

 Coordinates subcontractors  Delivers project at bid price  Completes building on time

PROS OF DESIGN-BID-BUILD

 Best understood  Longest legal history  Can produce highly competitive pricing; bottom line costs  Auditors, attorneys, public officials are most comfortable

with this method

 Default method for government; need special permission

to use other methods

 Well suited to uncomplicated projects with straightforward

• bjectives and adequate time; owner knows what they will

get

 Least personality driving of all the choices

CONS OF DESIGN-BID-BUILD

 Inherently antagonistic  Can create significant legal issues where unforeseen problems arise  Lows bids can encourage high change orders  Can be difficult for inexperienced contractors in constrained

environments

 Owner liable for design errors and change orders  Delay claims and disputes are common  Guaranteed price late in process  Can be dangerous for inexperienced owners  Potential philosophical disconnect  The books are closed. Profitability is the goal for the Contractors to

take advantage of “competitive process”

CONSTRUCTION MANAGER @ RISK SCHEDULE

Begin Design 30% Design Workshop CM@R RFQ and Selection CM@R Award Design - Estimate Construction Value; Construction Review;Value Engineering; Prepare Trade Bid Package 100% Design Completion Trade Bidding & Award by CM@R Award Trade Contracts Start Construction Complete Construction 6/1/13 7/18/13 9/18/13 11/18/13 1/15/13 2/1/14 6/1/13

CONSTRUCTION MANAGER AT RISK

CSD HDR CM@R Sub Sub Sub

CONSTRUCTION MANAGER @ RISK

 The CM assumes the financial risk for construction in

addition to consultation during design and construction

 The selection is based on both cost and qualifications  CM is involved at onset of design  Separate bid packages and contracts for trades  Possible fast tracking  Ability to pre-purchase long lead items

OWNERS IN CM@RISK

 Determines CM@R selection criteria and makes selection  Negotiates the Guaranteed Maximum Price and CM@R

Incentives

 Contracts with Building Trades

ARCHITECTS IN CM@RISK

 Designs project according to Owner requirements  Provides participatory feedback  Prepares construction documents  Acts as owners rep during construction

CONSTRUCTION MANAGER@ RISK

 Works as a team member consulting during design and

construction

 Keeps the architect informed on costs, schedule and

implications of alternative designs, systems, and materials used

 Bids Trade packages and recommends Trade contracts  Coordinates all work and completes project on time

PROS OF CM@RISK

 Can work well for projects where early construction contractor

participation is desirable for coordination among trades

 Complex scheduling addressed early  Resolving challenging constructability issues early in the process  Provides more certainty to the owner than design/build  Clear schedule under control of CM@R  Explicit design geared for various trades  Suitable where facility must continue to operate during construction  Pricing and cost model are developed along with design  Owners gets to select designer and construction manager  Opportunities for fast tracking

CONS OF CM@RISK

 Architect and CM@R still have separate contractual relationships with

the owner and can be a source of conflict

 Owner must invest equal degrees of control to both parties  Needs to have the right mesh of personalities  Project staff turnover can create problems  Owners needs to have sufficient expertise to manage both CM@R and

Architect

DESIGN BUILD BID SCHEDULE

Begin Design 30% Design Workshop 100% Design Completion Advertise for Bids Open Bids Award Contract Start Construction Complete Construction 6/1/13 7/18/13 9/1/13 9/15/13 10/15/13 11/20/13 1/1/14 5/1/13