2011 09 18 apwa annual congress and exposition 2understand and describe the distinctions between...
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9/18/2011
1
“The Value of CMGC as a Tool for “The Value of CMGC as a Tool for Infrastructure Project Delivery”Infrastructure Project Delivery”
Prepared for:Prepared for:
“International Public Works“International Public WorksInternational Public Works International Public Works Congress and Exposition”Congress and Exposition”
Prepared by:Prepared by:
September 18, 2011September 18, 20111
JMC Consulting
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Introduction
Learning Outcomes
APWA Peer Exchange
FHWA’s EDC Initiative
CMGC/CMAR D fi d
Discussion Road Map
2
CMGC/CMAR Defined
Osceola County Case Study
“Genuine leadership comes from the quality of your vision and your ability to spark others to extraordinary performance.”
— Jack Welch – Former GE Chairman and CEO70
Introduction
“Educational Consortium” Partners
JMC Consulting
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University of Florida Research Program
Accelerated Project Delivery Research
Dr. R. Edward Minchin Jr., P.E.
468
Understand and Describe the distinctions between CMGC and CMAR
Learn about the value of having CMGC/CMAR in your “project delivery tool box”
Learning Outcomes
5
Discover practical “lessons learned” from a successful program
67
What experience do you currently have with CMGC and/or CMAR?
What are you hearing from your peers regarding CMGC and/or CMAR?
APWA Peer Exchange
Wh t i N b 1
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What is your Number 1 Question or Concern about CMGC and/or CMAR?
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EDC Initiative
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“Good is the enemy of great.”
- Jim Collins61
EDC Initiative Primary Directives:
EDC Initiative
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1. Accelerating Technology and Innovation Deployment
2. Shortening Project Delivery
Design-Build
Construction Manager/General Contractor (CMGC)
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Preliminary Goals - By December of 2012…
EDC Initiative
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100 CMGC contracts executed on Federal-aid or Federal Lands projects (1% of Federal Aid Program)
25 state, local, or Federal Land agencies have used CMGC
Increase the number of DB contracts executed for Federal-aid or Federal Lands projects by 50%
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Research done in 2009 (NCHRP Synthesis 402)
• Five states were using CMGC/CMAR – AK, OR, UT, FL, AZ
• Six additional States have legislative authority
Who is Using CMGC/CMAR?
Quick look at current conditions (2011)
• Now Using CMGC/CMAR: MI, CO, CFL, MTO, ME, and NV
• EDC follow ups to EFL + 9 others
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Salt Lake City, Utah – June 27 – 29, 2011
Participants
West Coast Peer Exchange Highlights
• Central Federal Lands Highway Division
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• Western Federal Lands Highway Division
• Sundt Construction
• Stanton Cost Estimating
JMC Consulting
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East Coast Peer Exchange – Coming Soon!
December 7 – 8, 2011
Boston, MA
Purpose – to group Owners with experience in CMGC with inexperienced Owners and exchange information and strategies for accomplishing FHWA’s EDC Initiative
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g p g
Build on success of Salt Lake City, Utah event
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Project Delivery Method
• DBB; CMGC; DB
Procurement Procedure
The New Paradigm: The Right Tool for the Right Job
• Low Bid; Best Value; Qualifications-based; Sole Source
Contract Payment Provision
• Lump Sum; Guaranteed Maximum Price; Cost Plus Fee; Cost Reimbursable, Unit price
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A Project Team consisting of three components:
An Owner
A Contract with a Designer
What are CMGC & CMAR
Phase one – A “Construction Management” consulting contract to help with design
Phase two – A “General Contracting “ contract to build the project
14
g
A Two Phase Contract with a General contractor
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Design-Bid-Build CMGC/CMAR Design-Build
Contracting Types:FHWA’s EDC Project Delivery Initiatives
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Key Finding:
CMGC/CMAR project delivery “is a less radical shift in procurement culture than design-build…”
O t i t l f
CMGC Highlights
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Owner retains control of the design
Designer is true owner’s representative
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Transportation projects require a unique process – With CMGC:
Self-performance requirements are typical
Subcontractor procurement
CMGC is not CMAR
Subcontractor procurement process is different
CMGC relies on best-value selection
GMP timing
1747
With CMAR:
Negotiated prices vs. “BID”
Very little owner involvement during construction
CMGC is not CMAR
Contractor selection is QBS vs. Best Value
Focus is on Quality vs. Risk and Price
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CMGC/CMAR Contracting
Integrated team approach to the planning, design and construction of highway projects
1944
Risk Theory
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Schedule/Timeline Comparison
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Model to Implement Innovation
2239
Understanding the good and bad about Design-Bid-Build – 50 years of history
Generally, an understanding of Design-Build
What Leads Owners to CMGC/CMAR?
Looking for a model that takes advantage of the good in both methods
Not looking for a replacement – looking for an additional tool
“The Right Tool for the Right Job”
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CMGC/CMAR Process
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Design Team Selection Phase
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Designer – regular consultant selection process –Qualifications Based Selection (QBS)
General Contractor Options:
• QBS
How is the Team Selected?
• Best Value = Technical evaluation + price
FHWA allows any fair and transparent selection method to be evaluated under SEP-14. Most CMGC projects trend to Best Value.
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Transition to Construction –Negotiation or Bid
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Two possible outcomes of “bid”
Owner gets acceptable price - Proceed with build
Owner doesn’t get acceptable price
k
CMGC/CMAR Bid Process
• Re-Scope, More Design, Risk Apportionment –Rebid
• Convert to Design-Bid-Build
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Better Designs –
Challenging to Quantify – Contractor satisfaction with plans
Reduced Change Orders
What Does an Owner Get From CMGC/CMAR
Faster, more accurate schedules –Exceeded expectations
Lower costs
Savings in design
Savings in constructability and innovation
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Theory Vs. Reality
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Largest volume of highway projects started at one time using CMGC/CMAR
Most accelerated program in the nation to date
Osceola County, FL Case Study
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nation to date
11 major roadways started in 1-year
$350 Million
~11 times the previous productionNarcoossee Rd.
Phase I21
Introduction – Success Story
“Top 25 Newsmakers of 2009…. Veteran Engineer Revives Road Program” 3219
CMAR will not work in cases where:
A. All right-of-way has not been obtained
B. Permits are not in place
C. Utilities are not coordinated
Group Question
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D. Plans are already 100% complete
E. None of the above
F. All of the above
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CMAR will not work in cases where:
A. All right-of-way has not been obtained
B. Permits are not in place
C. Utilities are not coordinated
Group Question
34
D. Plans are already 100% complete
E. None of the above
F. All of the above
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CMAR not a viable method for roadway projects
CMAR adds costs
Local contractor perception of being “left-out”
Industry Misnomers
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CMAR process is just “brokering out the work” for a fee
CMAR projects have built-in soft costs
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True Costs
36John Young Parkway Ground Breaking
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County Manager was tasked with $700M Program
Aggressive Impact Fee Ordinance
18 projects behind schedule – various stages of design (need for contractor input)
The Challenge….The Opportunity!
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Required 9 projects under construction in 1st year (need for different procurement process)
Poinciana BoulevardPhase II
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Lack of key Stakeholder buy-in
Right-of-Way acquisition process
The Challenge….The Opportunity!
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Designs were over budget
Required Owner to function as “Project Leader”
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Board had no tolerance for projects taking 5 to 7 years to go to construction
Board had no tolerance for change orders
Board had no tolerance for “out of town” contractors
The Challenge….The Opportunity!
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Board mandated operating budget reductions
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Program SummaryProgram Summary
""A good plan, violently executed now, is better than a A good plan, violently executed now, is better than a perfect plan next week."perfect plan next week."
General George S. Patton
402
Understand and Describe the distinctions between CMGC and CMAR
Learn about the value of having CMGC/CMAR in your “project delivery tool box”
Revisit Learning Outcomes
41
Discover practical “lessons learned” from a successful program
0
International Public Works Congress and Exposition
42
Kenneth E. Atkins, P.E.katkins@strategicsolutionspartners.net
Bringing Innovative Solutions to Government
P.O. Box 423487Kissimmee, FL 34742-3487
863.875.5777 • fax 863.875.5778
Gregg A. Hostetler, P.E.ghostetler@strategicsolutionspartners.net
James C. McMinimee, P.E.jmcminimee@msn.com
585 East North Hills DriveSalt Lake City, UT 84103
801.633.6220
JMC Consulting
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