Projects and Choosing the Best Project Delivery Method Ryan Toner - PowerPoint PPT Presentation

Session 4: Managing Projects and Choosing the Best Project Delivery Method Ryan Toner | Vice President | Dibble Engineering

Renju Abraham, PE PM / Associate Engineer Burns & McDonnell Mike Smejkal, PE, AAE VP of Planning & Engineering Tucson Airport Authority Sandy Kukla, AIA Executive Vice President DWL Architects + Planners Session Mike Hill Senior Project Manager Sundt Construction, Inc. Speakers Tim Morrison, PE, PMP Program/Project Manager FAA Phoenix ADO

Current Trends in SWAAAE Construction 2019 Delivery Methods Renju Abraham, PE

SWAAAE 2019 Various Project Delivery Methods • Design-Bid-Build Alternative • Design-Build Delivery • DBFOM, DBOO, DBOOM • Progressive D-B D-B-B Design-Build Design-Build-Operate-Maintain • CM at Risk CM at Risk • P3 CM/Agent Job Order Contracting • IPD P3 • Job Order Contracting • CM/Agent (Multi-Prime)

SWAAAE 2019 What is the best construction delivery method? It depends on who you ask!

SWAAAE 2019 The “ MacLeamy ” Curve

Method #1 Traditional Design Design-Bid Bid- Build Build

SWAAAE 2019 Design-Bid-Build Owner Competitive QBS Bids Designer Contractor The Lawsuit! Design Construction Design Bidding & Value Procurement Engineering

Method #2 Design Design-Build Build

SWAAAE 2019 Design-Build Owner Best Value Design-Builder A/E Time Saved Design Construction Design-Build Procurement

SWAAAE 2019 Design-Build Flavors Sprinkle in: • Finance • Finance-Operate-Maintain (DBFOM) • Own-Operate (DBOO) • Own-Operate-Maintain (DBOOM) • Lease-Back

SWAAAE 2019 Design- Build; Fast Track

SWAAAE 2019 Why Design-Build? • Sing Single le Point oint Respo esponsibil nsibility ity & & Accounta Accountabil bility ity • The he Numbe Number r 1 F 1 Fac actor tor • Faster aster • Chea Cheaper per

2018 Study: 212 Projects Found that Design-Build had: 1. Lower overall cost growth 2. No schedule growth 3. Faster delivery speed

Method #3 CM a CM at Ri t Risk sk

SWAAAE 2019 CM @ Risk Trade Subs Owner Bonds Competitive QBS Bids Designer CM at Risk Bond QBS CM@R Hired Design Construction Design Trade Subs Procurement Hired

SWAAAE 2019 CM@Risk • Normally involves hiring CM after design has started or in progress • CM does perform the work – guarantees price, schedule, and quality • Award usually made on a qualitative basis, and not strictly on price • On public work, CM bonds the entire contract

SWAAAE 2019 CM@Risk • Special Legislation needed for public projects because… • CM hired on qualifications, not low bid • Violates competitive bidding laws • Award to CM prior to knowing the Subs • Violates “subcontractor listing laws” in some states

Method # 4 Public Public-Priva Private te Par artner tnerships ships (P3) (P3)

SWAAAE 2019 P3 • Used commonly outside of the U.S., especially in the U.K. • Not really alternative project delivery method, as much as an alternative project funding mechanism for public works projects • Financial difficulties in many public agencies limit the funds available for public projects • This makes P3 a more enticing option • −>“Buy Now, Pay Later”

Method # 5 Job Or ob Order der Contr Contracting acting (JOC) (JOC)

SWAAAE 2019 Job Order Contracting • Also called “IDIQ” • Indefinite Delivery, Indefinite Quantity • Common for recurring but (often) relatively minor design or construction work • Scope and timing difficult to know in advance • Often involves repair, remodeling, or repetitive work • Sometimes used for larger, new projects

Method # 6 CM CM-Agent/ Agent/ Multi Multi-Prime Prime

Bonds CM@Risk Trade Primes Owner Bid Negotiated QBS No Designer CM-Agent Bond Manage • No Guarantees on (Sometimes) Cost or Quality Time Saved Design Construction Design & CM Trade Contractor Procurement Procurement

SWAAAE 2019 How do you select a method? • Owner shall determine the most important criteria/ objective of the project • Stakeholder/ community input is a key factor • Be considerate of funding sources and legislations • Flatwork versus vertical • Familiarity and past success at the airport may also be considered

Owner’s SWAAAE Perspective 2019 Mike Smejkal, PE, AAE

SWAAAE 2019 Owner’s Perspective Design Bid Build Design Bid Build • Easily Defined Phasing & Scope • Mill & Overlay

SWAAAE 2019 Owner’s Perspective CMAR Sample Projects • Terminal Apron Reconstruction Project (AIP Funded) • Complicated Phasing • Multiple Grant Years w/ complex systems (400 Hz & Fueling System) • FAA reviews design (for standards/eligibility) prior to GMP development • Terminal Optimization Project (PFC Funded) • Complicated Phasing • Complicated cutover of critical systems. Scoring CMAR • Approach to Teaming, Describe competitive proposal process • AZ – Fee not allowed in

SWAAAE 2019 Owner’s Perspective CMAR • 2 Gates Closed at a time New 16” PCC on Recycled PCC Base • • Started August 2013 New Trench Drain System • • 18-20 month total duration Hydrant Fueling & 400 Hz Modifications • • $45-50M Budget

SWAAAE 2019 Owner’s Perspective CMAR - Relocate/Expand Security Checkpoints - Expand Concession Opportunities - Upgrade 50 year old building infrastructure

SWAAAE 2019 Owner’s Perspective Design Build Design Build • TAA’s Solar Phase 1 (AIP Funded) • No FAA Standards to follow • Basic Requirements (1MW of Power) over area in parking lot (min. # of stalls must be maintained) • Need a detailed requirements document for RFP Scoring • SOQ – Shortlist • Technical Proposal Scored based on shortlist • Teaming & Approach is heavily weighted • After Technical Proposal is scored open sealed costs

SWAAAE 2019 Owner’s Perspective Design Build

SWAAAE 2019 Owner’s Perspective Summary • Choose Best Method for each project • Relationship is different with A/E & Contractor for each method • Clearly communicate with FAA & State (FSL or SL) on signoffs • Airfield Civil/AIP funded – CMAR better than Design Build

Consultant’s SWAAAE Perspective 2019 Sandy Kukla, AIA

SWAAAE 2019 Consultant’s Perspective PHX Sky Harbor International Airport Terminal 3 Modernization Design/Build PHX Terminal 3 Modernization CMAR/Design-Bid-Build/JOC TUS Terminal Optimization Project AZA West Terminal Expansion Lessons Learned

SWAAAE 2019 Consultant Perspective - Design/Build PHX Sky Harbor International Airport Terminal 3 Modernization 25 Gates $590 M Total Project 3 1.9 M Square Feet 11.2 Million Annual Pax 1 2

SWAAAE 2019 Consultant Perspective - Design/Build PHX Sky Harbor International Airport Terminal 3 Modernization

SWAAAE 2019 Consultant Perspective - Design/Build PHX Sky Harbor International Airport Terminal 3 Modernization Complex Project • Scale • Active Campus • Toughest Part Came First • Phasing – Funding and Constructability • Multiple Stakeholders - 10 Airlines • Unique Design

SWAAAE 2019 Consultant Perspective - Design/Build PHX Sky Harbor International Airport Terminal 3 Modernization D/B Considerations • Is a Project Definition Manual Required? • How does communication occur between the owner and designer? • Who is the client?

SWAAAE 2019 Consultant Perspective – CMAR/DDB/JOC Tucson International Airport Terminal Optimization Project JOC / Design-Bid-Build CMAR

SWAAAE 2019 Consultant Perspective – CMAR/DDB/JOC Phoenix-Mesa Gateway Airport Design/Bid/Build CMAR JOC

SWAAAE 2019 Consultant Perspective – DBB Phoenix-Mesa Gateway Airport • Dependent on market • Phasing by Designer • Defined Scope • Detailed documents • Contractor input is voluntary • Based on Bid – Who is your Contractor? • Phasing by Designer

SWAAAE 2019 Consultant Perspective – DBB/JOC/CMAR Comparison of CMAR to DBB Comparison of CMAR to JOC

SWAAAE 2019 Consultant Perspective – JOC Tucson International Airport Authority Department Relocations (Demo) • Small Scale • Demolition/Unknown Conditions • On-call Contractor • Minimal Documents • Reduced Permit Requirements • Contractor may be unfamiliar with typical process

SWAAAE 2019 Consultant Perspective – CMAR Tucson International Airport Terminal Optimization Project • Continuous Operations • Complex Phasing • Early Document Packages • Time between Design Phases for CMAR Review • Time for Value Engineering/ Scope Reduction

SWAAAE 2019 Consultant Perspective – CMAR Phoenix-Mesa Gateway Airport • CMAR Selection Process • Better Construction Staffing • CMAR Design Assist • Project Start Preparation • Team Project Goals • Quality

SWAAAE 2019 Consultant Perspective – Lessons Learned Laughlin/Bullhead Int’l Airport Aircraft Rescue Fire Fighting Station 1. Do an analysis 3. Understand your organization’s 2. Establish your project criteria, characteristics. vision and goals. 4. No One-size fits all 5. Set up your project for Success.