*

*ITE Intermountain Annual Meeting 2016

*Loran Frazier, PE, MBA, RSW (retired still working)

* lfrazier@wgmgroup.com

* (406)728-4611

*

*While at MDT, promoted Design/Build with Montana

Legislature

*Did a trial run with three projects for legislature

*Reported back to legislature and got D/B approved

*Used D/B for quick repairs on Beartooth Highway landslide

Retired from MDT and worked for Knik Arm Bridge and Toll

Authority

Got project ready, advertised and short listed

proposers for a $1.2 billion FDBOM project

Recently worked on a team that designed and constructed

three D/B projects in Montana.

* FDBOM: Finance Design/Build Operate

Maintain - A P3 Project

88,995 residents *

291,826 residents *

Mat-Su in top 1% of fastest

growing “counties” in U.S.

Municipality of Anchorage is

the largest city in Alaska

* April 2010 Census - US Census Bureau

Crossing

Location

*

41

*Project Alignment

42

*

*Point MacKenzie Road to A/C connector

*2-4 lane bridge with 4-lane foundation

*Cut-and-cover tunnel under Government Hill neighborhood

*4 years to construct (+/- 1 year)

Total Cost Estimate ≈ $716 million

43

*

*4-lane facility from Burma Road to Ingra/Gambell Connector

*New connection to Ingra-Gambell

*Needed by about 2030 based on recently updated traffic

forecast

Total Cost Estimate in 2011 dollars: ≈$375 million

*

*Arctic Environment

* Extreme Weather

* Short Construction Season

*Tides

*Active Seismic - Earthquakes

*Unexploded Ordnance

*Geotech

*Glacial

* Clay & Silt Layers

*Hazmat

*Permits - Mitigations - Work Shutdowns

*Costs

*Site Access

*Political & Funding

*

Build Project on Paper

For Permits and Concept and Risk Management

Construction Concept Team

*

*

Construction above -10 MLLW

requires alternative construction

methods involving:

*

Construction above -10 MLLW

requires alternative construction

methods involving:

• Temporary causeway

• Temporary trestle

• Temporary jack-up barge

• Temporary dredged channel

KAC and Beluga Whales

*

*Drilled shaft

*Temporary pile work in months with low beluga density

*Construction monitoring

*Acoustic monitoring

52

*

Knik Geologic Profile

53

54

*

Owner Private Partner

• ROW

• Permitting

• Haz Mat

• Construction

• Ops & Maint

• Traffic & Rev

Public-Private Partnership

Indicative Risk Transfer (Availability Payment)

55

Owner Private Partner

• ROW

• Permitting

• Haz Mat

• Construction

• Ops & Maint

• Traffic & Rev

Public-Private Partnership

Indicative Risk Transfer (Availability Payment)

56

*Keep competition fair

*Rate firms against pre-established rating criteria

only

*Don’t assign points by comparing proposals

against each other

*Can have confidential conversations with bidding

firms, but have witness or counsel present and

keep record

*Keep all proposal and SOQ information secure

*

*

*Advertise in the right places

*Stipend amount was key to getting competition

*Assess project risks

*Solve as many issues as possible

*Provide as much information as possible about

remaining issues to proposers

*Geotech, R/W, permits

*Be reasonable about shifting risks

*Good communications with proposers is

essential for good results

*

Design/Build: demolition of existing rest area buildings;

construction of two new facilities on either side of the

highway. Fully accessible (ADA), CMU block construction, site

lighting, roadway construction, landscaping, directional

drilling, level II septic system

Greycliff Rest Area

Sweet Grass County, Montana

Bearmouth Rest Area

Granite County, Montana

Design/Build: demolition of existing rest area buildings;

construction of two new facilities on either side of the

highway. Fully accessible, CMU block construction, site

lighting, roadway construction, landscaping, boring, level

II septic system.

Design/Build: demolition of existing rest area

building; construction of new facility. Fully

accessible (ADA), CMU block construction, site

lighting, milled/overlaid & treated new sections of

roadway, landscaping, directional drilling, level II

septic system, self closing gate, cattle guard

Raynolds Pass Rest Area

Madison County MT

Issues:

*Unknown soils

*New to team

*Quantities

*Domes

Comments:

*Great teamwork

*Good project

*Overall good data provided

*Minor field fitting

*

*

Issues:

*Role Expectations

*Unknown soils

*Water Table

*Communications among Owner Rep

*Floor shrink cracks

*Quantities

*Sub’s performance

*Contract Timeframe

Comments:

*Good Project

*Good Team

*Minor Field Fitting,

*Worked through issues

*Reasonableness and

Fairness Prevailed

*Good Design Data

Issues:

*Unknown conditions

encountered – clay seam

*Mapping issues – ground,

power pole

*Remote site – getting

road materials

*Weather

*Change of project

manager

Comments:

*Issues addressed fairly and

reasonably

*Minor design modifications

needed in field

*Field fit ground and lights

*Overall a good quality

project

*Great project; great team

*

*

• Risks

• Costs

• Partnerships

• Teams

• Results

*

*Cost of going after project

*Are proposal costs worth the risk for reward?

*$100K+ with no stipend

*$20K for potential $4K profit

*Quantities – accurate enough for bid

*Enough fee to cover work

*Liability

*Strategy to handle unknowns

*Owners decision process

*

*Project cost

*Get quality product

*Attract quality teams

*Finish job

*Timely completion

*Cost overruns

*Avoid legal challenges

*

*Get Competition

Advertise in the right places

Stipend

*Qualification Screening

*Define/communicate what is wanted

Features

Specifications

*Decision/Dispute Resolution Process

*

*Define selection process

Follow predetermined criteria

Score against criteria

*Identify and provide information for potential issues

Geotech

Site Access

Permits

Right-of-Way

*Courts have been ruling that unforeseen

conditions are treated the same as other

contracts

*Some specifications are so onerous that courts

have ruled against them

*Time frame limits design/build team – has to rely

on information provided by owner

*

*

*Non-delegable duties to properly design and

construct.

*Engineers held to standard of care for a design professional.

Builder for workmanship and quality. Can’t delegate

obligations to subs.

*Owner relies on design/build team for areas they

do not have expertise and can expect reasonable

workmanship.

*Failure to warn, assume liability. Can go both

ways.

*

*Define authority

*Do homework/minimize unknowns

*Confidential discussions

*Define requirements and expectations

*Fair selection

*Adequate stipend

*Communications with DB team

* Constructor and Engineer

*Realistic understanding

* Train staff of process

*Budget for unknowns

*Partnership with proposer

*Assess risks

*Communicate questions/

define assumptions

*Clarify project

communication roles

*Plan on field fitting

* Include some contingency

*Communicate – team &

owner

*Partnership with owner

OwnerDesign/Build Team

*

(How it goes depends on the partners.)

*Evolving Liability for Design-Build Contracts:

Joel B. Castro

*Design-Build Project Delivery in Practice:

Fasken Martineau

*Design-Build, Contracts, Law, and Risk

Management: J. Kent Holland Jr. PLLC

*Evan Caplicki and Fred Kessler, Nossaman LLP

*