delivering on maryland’s transportation...
TRANSCRIPT
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February, 2014
Delivering on Maryland’s
TRANSPORTATION
INVESTMENT Alternative Project Delivery: SHA’s Construction Management at Risk (CMAR) Pilot Jeffrey T. Folden, PE Maryland State Highway Administration
February, 2014
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February, 2014
Project Delivery Method
One Size Does not
Fit All…
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February, 2014
Project Delivery Method
Definition The process to design and construct the project
Types • Design-Bid-Build (DBB) • Design-Build (DB) • Indefinite Delivery/Indefinite Quantity (ID/IQ) • Public Private Partnerships (P3) • Construction Management at Risk (CMAR)
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February, 2014
Construction Management at Risk
Definition A project delivery method where the agency utilizes a two-phase construction contract with a General Contractor to:
1) Provide Preconstruction Services, which may include, but are not limited to, constructability analysis, value analysis, scheduling, site assessments, and cost estimating;
2) Construct the project based on final design plans (or design packages) based upon an agreed Guaranteed Maximum Price (GMP)
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February, 2014
Construction Management at Risk
Authority • State – Code of Maryland Regulations (COMAR)
21.05.10
• Federal – Moving Ahead for Progress in the 21st Century (MAP-21) – Construction Manager/General Contractor (CM/GC)
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February, 2014
Construction Management at Risk
Reasons for Choosing CMAR • Shorten Project Delivery
• Project Complexity
• Contractor Input During Design
• High Number of Potential Risks/Risk Allocation
• Scope Flexibility/Maximizing Dollars
• Cost Analysis of Multiple Design Options
• Informed Owner Decision Making
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February, 2014
7
Shortening Project Delivery
Design-Bid-Build
(DBB)
CMAR
Design-Build
(DB)
Preliminary Design
Detailed/Final Design
Bid Construction
Preliminary Design
Design-Build
Procurement
Detailed/Final Design
Construction
Preliminary Design
CMAR Procurement
Detailed/Final Design
Construction
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February, 2014
Risk Allocation
Contractor
Owner
DBB DB CMAR
RIS
K
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February, 2014
Construction Management at Risk
Expectations • Meet Project Goals
• Fair Market Price
• At or Below Proposed Price
• Improved Schedule
• Fewer Change Orders
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February, 2014
Construction Management at Risk
Benefits • Opportunity to bring on Contractor during design phase
to work as an integrated team to deliver most efficient and cost effective design
• Promotes innovation and collaboration/partnering
• Owner maintains the decision making authority
• Greater cost certainty through GMP and reduction in change orders
• Still allows phased construction similar to Design-Build
• Risk Identification and Management during design
• Owner gets upfront benefit from Value Analysis
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February, 2014
Construction Management at Risk
Potential Risks • Transparency – Technical Qualifications and
Approach are Main Elements for Selection
• Cost Validation – “Negotiated” vs. Bid
• Culture – New Process for All (SHA, Consultants, Contractor, Regulatory Agencies, Etc.)
• Risk – Limited Historical Usage for Heavy Highway Construction
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February, 2014
Construction Management at Risk
Procurement – COMAR 21.05.10.03
CMAR contracts shall be procured using the Competitive Sealed Proposals Procurement Method as defined in COMAR 21.05.03.
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February, 2014
CMAR Procurement
MD 24 Pilot Project • Potential Project Identified – January 2013 • Approved for CMAR – March 2013 • Development of CMAR procurement process/documents – April
2013 – August 2013 • Procurement Schedule
• Industry Informational Meeting Held – July 18, 2013 • Issued Request for Proposals – August 20, 2013 • Technical and Price Proposals Submitted – October 2,
2013 • Notification of Selection – October 23, 2013 • Award – November 22, 2013 • Notice to Proceed – December 23, 2013
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February, 2014
CMAR Procurement
MD 24 Pilot Project • One Step Procurement Process
• Request for Proposals (RFP)
• Technical Proposal
• Project Management Team/Capability of Proposer
• Project Approach
• Legal/Financial
• Price Proposal
• Preconstruction Fee (Lump Sum Price)
• Construction cost for only specific items identified
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February, 2014
CMAR Procurement
MD 24 Pilot Project • Separate Technical Proposal and Price Proposal
Evaluations
• Adjectival Rating Process
• Best-Value Process – Most Advantageous to State considering both technical factors and price
• Technical Proposal was significantly more important than the Price Proposal.
• Project Award and Notice to Proceed – Design Phase
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February, 2014
MD 24 – Section A & Section G
Study in 2003
identified 7
distinct segments
of varying slope
failure. Section A
& Section G were
highest priorities.
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February, 2014
MD 24 – Section A & Section G Purpose and Need Improve safety along MD 24 and address roadside safety concerns associated with eroding slopes
Project Objectives • Avoidance and Minimization of impacts to Deer
Creek • Protecting historical, cultural, and endangered
species • Limit disturbance to or enhance rock features
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February, 2014
MD 24 – Section A & Section G
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February, 2014
MD 24 – Section A & Section G Alternates • Section A – Selected Alternate
• Maintain existing roadway alignment and construct imbricated stone walls
• Section G – Options
• Maintain existing roadway alignment w/ retaining walls
• Shift roadway alignment w/ and w/o retaining walls
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February, 2014
MD 24 – Section A & Section G Design Challenges • Stream diversion and dewatering for
construction area. • Temporary stream diversion
requirements/methods • Shortest duration • Height of system • Stability
• Mussel survey and translocation period
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February, 2014
CMAR Design Phase
Project Team • Owner – SHA
• Engineer under Contract with Owner – Johnson, Mirmiran & Thompson (JMT)
• Contractor under separate Contract with owner – Corman Construction
• Independent Cost Estimator (ICE) – Infrastructure Technologies (IT)
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February, 2014
CMAR Design Phase – Section A
Owner, Designer, and Contractor Collaboration • Project Kick-Off Meeting/Partnering
• Working Team Meetings – Weekly or Bi-Weekly
• Cost Model Development w/ ICE
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February, 2014
CMAR Design Phase – Section A
Project Kick-Off/Partnering • Kick-Off Meeting
• Owner, Engineer, Contractor, ICE • All SHA Offices/Divisions • Environmental Agencies (DNR, MDE, USACOE,
USFWS, EPA) • Partnering
• Partnering Keys to Success/Ground Rules • Issue Resolution Process • Action Items
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February, 2014
CMAR Design Phase – Section A
Working Team Meetings
• Discuss Issues Identified and Work Through Solutions
• “Over-the-Shoulder” Reviews
• Key Players Involved
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February, 2014
CMAR Design Phase – Section A
Cost Model Development w/ ICE • Develop Cost Model for Project
• Opinion of Probable Construction Cost (OPCC)
• Guaranteed Maximum Price (GMP)
• Elements of Cost Model
• Profit and Indirect Overhead Percentage
• Equipment Types and Rates
• Material Sources
• Subcontractor Items of Work
• Risk Agreement and Assignment
• Schedule
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February, 2014
CMAR Design Phase – Section A
Cost Model Development w/ ICE • OPCC
• To be submitted at 65% and 90% Design Completion
• Blind Estimate Comparison – ICE is not Revealed
• Report of Items Outside of Tolerance (>10%)
• Reconciliation Meeting to discuss differences in bidding assumptions
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February, 2014
CMAR Design Phase – Section A
Once Design is Complete
• Contract documents have been developed collaboratively by team
• Follow typical procedures • DBE goals established for construction
• 2008 Standard Specifications and current SP/SPIs
• GMP - Contractor and ICE will independently price project
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February, 2014
CMAR Bidding Phase – Section A
Once GMP is Submitted
• Owner will see both Contractor and ICE prices
• Price Reconciliation Meetings, as needed
• Up to 3 GMP Submittals allowed
• Accept GMP and Award Contract
• Terminate Contract and Bid Project as DBB
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February, 2014
CMAR Bidding Phase – Section A
Schedule
• OPCC Submittals – February and March 2014
• Issue Contract Documents – April 2014 • GMP Submittals – 1st Submittal in May
2014 • Pending approved GMP – NTP in July
2014 • Construction Completion Proposed Nov.
2014
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February, 2014
CMAR Future
Opportunities • SHA Project Delivery Selection Process –
developing structured approach to determine most appropriate delivery method
• Factors to consider • Delivery Schedule • Project Complexity & Innovation • Level of Design • Cost • Initial Risk Assessment • Industry Interest & Capacity
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February, 2014
CMAR Future
Considerations
• Procurement Process – 2 step vs. 1 step
• Price Proposal
• Preconstruction Fee
• CMAR Management Fee (Percentage)
• Specific Bid Items
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February, 2014
CMAR Future
Potential Obstacles
• Level of Design + Construction Funding
• Bring on Contractor pre-30% - Schedule may be dynamic
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February, 2014
Questions?
Remember…
One Size Does Not
Fit All…