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

Session Speakers

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 Mike Hill Senior Project Manager Sundt Construction, Inc. Tim Morrison, PE, PMP Program/Project Manager FAA Phoenix ADO

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Current Trends in Construction Delivery Methods

Renju Abraham, PE

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Various Project Delivery Methods

D-B-B Design-Build Design-Build-Operate-Maintain CM at Risk CM/Agent Job Order Contracting P3

Alternative Delivery

• Design-Bid-Build
• Design-Build
• DBFOM, DBOO, DBOOM
• Progressive D-B
• CM at Risk
• P3
• IPD
• Job Order Contracting
• CM/Agent (Multi-Prime)

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What is the best construction delivery method?

It depends on who you ask!

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The “MacLeamy” Curve

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

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Design-Bid-Build

Designer Contractor Owner QBS Competitive Bids Design Construction

Design Procurement Bidding & Value Engineering

The Lawsuit!

Method #2 Design Design-Build Build

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Design-Build

A/E Owner Best Value Design

Design-Build Procurement

Design-Builder Construction

Time Saved

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Design-Build Flavors Sprinkle in:

• Finance
• Finance-Operate-Maintain (DBFOM)
• Own-Operate (DBOO)
• Own-Operate-Maintain (DBOOM)
• Lease-Back

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Design- Build; Fast Track

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Why Design-Build?

• Sing

Single le Point

• int

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

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CM @ Risk

Designer CM at Risk Owner QBS Competitive Bids Trade Subs

Bond Bonds

Design Construction

Design Procurement Trade Subs Hired CM@R Hired

QBS

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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

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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)

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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

• b Order

der Contr Contracting acting (JOC) (JOC)

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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

Design

Design & CM Procurement

Construction

Time Saved

Designer CM-Agent Owner QBS Negotiated Trade Primes

Trade Contractor Procurement

Bid

Manage (Sometimes)

• No Guarantees on

Cost or Quality

Bonds No Bond

CM@Risk

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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

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Owner’s Perspective

Mike Smejkal, PE, AAE

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Owner’s Perspective

Design Bid Build

Design Bid Build

• Easily Defined

Phasing & Scope

• Mill & Overlay

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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

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Owner’s Perspective

CMAR

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

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Owner’s Perspective

CMAR

• Relocate/Expand Security Checkpoints
• Expand Concession Opportunities
• Upgrade 50 year old building infrastructure

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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

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Owner’s Perspective

Design Build

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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)
• n signoffs
• Airfield Civil/AIP funded – CMAR better than

Design Build

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Consultant’s Perspective

Sandy Kukla, AIA

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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

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2 1 3

Consultant Perspective - Design/Build

PHX Sky Harbor International Airport Terminal 3 Modernization 25 Gates $590 M Total Project 1.9 M Square Feet 11.2 Million Annual Pax

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Consultant Perspective - Design/Build

PHX Sky Harbor International Airport Terminal 3 Modernization

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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

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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?

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Consultant Perspective – CMAR/DDB/JOC

Tucson International Airport Terminal Optimization Project JOC / Design-Bid-Build CMAR

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Consultant Perspective – CMAR/DDB/JOC

Phoenix-Mesa Gateway Airport CMAR Design/Bid/Build JOC

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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

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Consultant Perspective – DBB/JOC/CMAR

Comparison of CMAR to DBB Comparison of CMAR to JOC

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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

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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

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Consultant Perspective – CMAR

Phoenix-Mesa Gateway Airport

• CMAR Selection Process
• CMAR Design Assist
• Team Project Goals
• Better Construction Staffing
• Project Start Preparation
• Quality

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Consultant Perspective – Lessons Learned

Laughlin/Bullhead Int’l Airport Aircraft Rescue Fire Fighting Station 1. Do an analysis 2. Establish your project criteria, vision and goals. 3. Understand your organization’s characteristics. 4. No One-size fits all

• 5. Set up your project for Success.

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Contractor’s Perspective

Mike Hill

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Contractor’s Perspective

Communication – Key to It All

Why Hard Bid a Project?

• Process is fixed, all decisions made
• Program criteria is clear
• Market is slowing or receding, reducing the cost of time
• There is ample time to design, test, challenge assumptions before going to

market

• Unemployment is up, labor available
• You have ample contingency if market response is not what was planned or

expected. Why Utilize an Alternative Delivery?

• Certainty of outcome is paramount
• Date-Cost-Quality is critical
• Need is Dynamic, Morphing over time
• Costs escalating market place
• Unemployment is down
• Long lasting facility (Cost of construction is app. 20% of overall all cost of the

building)

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Contractor’s Perspective

Communication – Key to It All

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Airport Owners Know:

• Business
• Customers
• What they need
• How to run an airport

Contractor’s Perspective

Communication – Key to It All

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Designers Know:

• Efficiencies
• Aesthetics
• People flow
• Function

Contractor’s Perspective

Communication – Key to It All

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Contractors Know:

• Constructability
• Schedule
• Costs
• Material Lead Times

Having the right contractor makes all the difference.

Contractor’s Perspective

Communication – Key to It All

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Teamwork:

• Meet overall expectations
• High quality
• Fastest overall schedule
• Lowest cost consistent with quality and

performance objectives

• Design most effective
• Complies with technical specs
• Limits design changes cost
• Limit impacts to current operations
• Promotes innovation and VE
• Least confrontational
• Great Result for Customers
• Limits Construction Aggravation
• Limit claims for add’l costs
• Trusted Advisors
• Great Relationships

Contractor’s Perspective

Communication – Key to It All

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Out for Bid:

• Great Package out for bid
• Market Pricing
• Approx. 85% - Hard Bid
• Local Contractors
• Pre-selected Contractors
• DBE/SDB
• Pre-Qualified Contractors
• Great Result for Owners

Contractor’s Perspective

Communication – Key to It All

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Contractor’s Perspective

Communication – Key to It All

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Bad Communication:

• Owner requirements
• Local vs Corp
• 3 Owner Teams (10)
• Renegade Designer
• Custom details
• Custom structure
• Comp Design 50%
• Terminated
• Missed all deadlines
• Hired New Arch
• What Owner budget
• Accumulated Costs from all

Contractor’s Perspective

Communication – Key to It All

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FAA’s Perspective

Tim Morrison, PE, PMP

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FAA’s Perspective

AC 150/5100-14E, Change 1 – Architectural, Engineering, and Planning Consultant Services for Airport Grant Projects

Before undertaking alternative project delivery for an AIP funded project, the conditions for the project must be evaluated to determine if alternative delivery is more beneficial than the traditional design-bid-build method.................. Sponsors should follow all applicable State and local laws but must include the required Federal contract clauses and provisions in the procurement documents. See Title 2 CFR § 200.326.

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FAA’s Perspective

Who Benefits from Alternative Delivery?

• Scope / Schedule / Budget
• Scale
• Complexity

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FAA’s Perspective

Where a Sponsor decides to utilize an Alternative Project Delivery System (APDS) such as design-build (DB)

• r

construction manager-at-risk (CMAR), the Sponsor may use the competitive proposal approach (as defined in 2 CFR §200.320) for selection provided price and other factors such as qualifications, skill, experience, and design approach are considered when selecting a firm to perform this service. The selection of an A/E services firm is the only instance where prices must be excluded as a consideration under a competitive proposal selection.

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FAA’s Perspective

AIP Handbook – Order 5100.38E, Change 1 Mandatory ADO pre-review and concurrence with the sponsor’s use of design-build proposal for AIP funded projects is based on requirements found in 49 USC § 47142(a)(2). ADO pre-review and concurrence is also required by FAA policy for any AIP-funded project where construction manager-at-risk or

• ther competitive proposal methods that involve selection

based on factors other than price are proposed.

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FAA’s Perspective

Sponsor Requirements for Cost Reasonableness

• Engineer’s estimate
• A statement signed by the sponsor that the cost analysis was performed

that includes the sponsor’s recommendation that the FAA accept the statement and analysis as evidence of cost reasonableness.

• Bid tabulation (one bidder), proposal (sole source, design/build,

construction manager-at-risk), or winning quote (small purchase).

• Copy of the signed contract
• Any other support documentation requested by the ADO.

Questions?

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 Mike Hill Senior Project Manager Sundt Construction, Inc. Tim Morrison, PE, PMP Program/Project Manager FAA Phoenix ADO