Lessons Learned: CM at Risk & Design Build

CM at Risk

• UC San Diego’s most used project delivery method is CM at Risk (CMAR).

• We have and continue to have great success with CMAR.

• Some examples follow…

CM at Risk – First CMAR project

Eleanor Roosevelt Housing and Dining

Considerations for prequalification should include:

Company’s experience with comparable projects (comparable projects defined by owner).

Company’s experience with CM at Risk. (i.e. providing preconstruction and construction services as a requirement of the contract).

Individual team member’s experience with comparable projects and CM at Risk.

CM at Risk

CallT2

Bidding Preconstruction and Construction Services

At UC San Diego we establish

the amount we will pay (lump

sum) for the specified

preconstruction services.

CM at Risk

Skaggs School of Pharmacology & Pharmaceutical Sciences

We Recommend that Bids for Construction Services Include:

• OH&P (fee), CM/Contractor’s General Conditions and CM/Contractor’s General Requirements.

• We recommend that the CM/Contractor’s bid NOT include General requirements for the project. These costs are to be included in sub trade bids or bid separately.

• Specify a generous minimum for field staff. Don’t be cheap! On a large project we require a Project Executive, a Sr. Project Manager, a Project Manager, three Project Engineers, a General Superintendent and two Superintendents (one structural and one for rough-in and finishes).

• The CM/Contractor’s bid shall include the costs of subcontractor’s payment & performance Bonds. Bonding subcontractors is the CM/Contractor’s option.

CM at RISK

Sulpizio Cardiovascular Center

CM at Risk Cautions

• Look out for “bundling” of bid packages (Hard bidders do it less often).

• Beware of “over” prequalification – Limited bid pool increases price.

• Make sure CM/Contractor gets at least 3 bids per bid package.

• Be aware that CM at Risk probably costs 1-2% more than hard bid on bid day, although the final costs may be about the same.

• Starting Construction Phase before entire job designed and bid.

CM at Risk

Health Sciences Biomedical Research Facility 2

Design Assist (DA) and Design Build (DB) subcontracting with CM at Risk Cautions

• CM/Contractor must be sophisticated and experienced with DA & DB subcontracting on public works.

• It is expensive! There is the cost of CM/Contractor’s preparation of DA & DB bid packages and the costs of the subcontractor’s work during the preconstruction phase.

• It is Expensive! Have a clear understanding of the costs and benefits/deliverables.

• In Design Assist the designer remains the Designer of Record and the DA subcontractors are the peer reviewers.

• In Design Build the designer becomes the peer reviewer and the subcontractor becomes the Designer of Record.

CM at Risk

Jacobs Medical Center

Design Build

First Design Build Housing Project - Miramar One Apartments

Design BuildAdvantages of Design Build

• Design Builder provides preconstruction services (like CM at Risk).

• Design Builder prequalifies subcontractors (like CM at Risk).

• Cost effective – the award is based on lowest cost per evaluation point.

• Overall quicker delivery – phasing / overlap of Design & Construction.

• Generally good relationships between owner, designer & builder.

Design Build

The Villages at Torrey Pines – Apartments

Design Build

DISADVANTAGES

• Design NOT completed when the project is bid.

• Exact project components loosely defined.

• May be more owner work involved than in other delivery methods.

• Changes cause havoc.

Design Build

Rita Atkinson Residences – Graduate Apartments

Design Build Cautions• Must identify owner requirements that are above code (Code +).• The program should be simple, i.e. Housing, Parking Garages

(Design Build Proponents disagree!).• A single, sophisticated client is preferred over multiple clients

advocating different needs.• Owner needs experienced staff and the time to review DB

Proposals – becomes contract document.• Owner needs experienced staff with the time to review design

submittals quickly.• Owner must realize that DB is just as much or more work than

other delivery methods.

Design Build

Ecoflats – Apartments

Comparison between CM at Risk and Design Build

CM at Risk Design Build

Prequalification of GC & Subs Yes YesCost Effective Yes YesEffective Scheduling Yes Yes/BetterGood Collaboration Yes YesComplete Design at Bid Yes/Maybe NoMultiple Clients Yes NoEffect of Changes Increased No Yes

Lessons Learned using CM at Risk & Design Build (Questions?)