Study Session –
Project Delivery Methods Overview
& Construction Market AnalysisJanuary 13, 2021
Cibola 700’s Building by CMAR – FF&E Direct Purchased and Installed by District
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Hauling Roof and site
drainageFencing
Soil
treatment
Windows, glass &
glazing Metal
fabricationsFood service
Structural
steelMechanical Skylights
Window
wallWindow
coverings
Architectural
woodworkSignage
Vacuum
systems Grading &
excavationLockersFlooring Network
wiring
Pools and
fountainsRoofing Electrical
StuccoGlass & glazingSecurity
systemsFirestopping Millwork Roof
hatchesPlumbing
Overhead
doors
Concrete
reinforcementBuilding
specilaties
Wall
coveringsHardware
Landscaping
and planting
Mold
controlPainting
Moisture
protectionStriping
Concrete
supply
Doors and
framesCounter
tops
Erosion
controlPaving
RO waterCleaningCarpeting Ductwork InsulationFlashing &
sheet metalOrnamental
Iron
Sealants &
caulking
Block and
brick
Control
wiringFlagpoles Metal wall &
roofing panels
Termite
control
Construction
Agent
UsersUsers
Users
Users
Users
Users
Users
Users
Design - Build
Contracts
Users
Users
Users
Users
Users
Users
Users
Users
UsersUsers
Users
Users
Users
Users
Users
Users
Users
Users
Users
Users
Users
Users
Users
Users
Administrators
Users
Users
Users
Users
Users
Users
Users Users
Design
architect
Telecommunicati
ons consultant
Audio Visual
consultant
Mechanical
Engineer
Electrical
engineerTesting and
Inspection
Life Safety
consultantCivil engineer
Graphics and
signage
consultant
Network
cabling
consultant
Code
consultant
Acoustical
consultantSanitary
engineer
Food service
consultantSecurity
consultant
Structural
engineer
Architect of
record
Acoustical
Consultant
Hardware
consultant
Lighting
consultant
SystemQuality
Control
Schedule
Control
ContractingCost Control
Project
ManagerConstruction
Compressors and
fan units
Rough
framing
Metal
fabrications
Site
sprinklers
Building
insulation ElevatorsTileDemolitionConcrete
formworkFire
protection
Toilet compartments
& accessories
Acoustical
ceilingsCasework Drywall
Clearing &
stripping
Diagram of
people &
companies that
work on a
project….
#1 Owner’s Goal:
Get what they
pay for…..and
they care a lot
about cost,
scope, quality,
safety and time
District
Architect
85% to 90%
Local SubsGeneral Contractor
Sub Contractors
Vendors
80% to 90%
Local Sub Contractors
Owner Trends and APDM Methods(Alternative Project Delivery Methods)
• The industry is always changing
• Construction is risky, complex and challenging
• Increased specialization of services
• Core competencies vs. outsources services
• Increased need for management and control
• Delays, changes, disputes, accidents cost more than ever
YUHSDBond Projects - Delivery Methods Available to District
Delivery Methods Authorized for Use by the District (ARS Enabling Legislation)
IFB – Invitation for Bid (Lowest Bid)
JOC – Job Order Contracting
CMAR – Construction Manager at Risk
D/B – Design Build
YUHSD BOND
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YUHSDBond Projects – Delivery Methods Used by the District
Delivery Methods Used by the District
IFB – Invitation for Bid (Lowest Bid) (12)
JOC – Job Order Contracting (3)
CMAR – Construction Manager at Risk (3)
D/B – Design Build (0)
YUHSD BOND
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YUHSDIFB – Invitation for Bid (Lowest Bid)
IFB – Invitation for Bid (Lowest Bid)
Pros:
• Lowest initial price
• Most often used for simple, low risk projects
Cons:
• Adversarial - less contractual risk management
• No pre-construction involvement by G/C
• Not qualifications or safety-based selection
• Opportunity for more change orders, delays, disputes & claims
YUHSD BOND
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YUHSDIFB – Invitation for Bid (Lowest Bid) Special Note
IFB – Special Note about Bid Coverage
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A Saylor Associates analysis of bid results revealed the following correlation between number of bidders and variance between the low bid and the pre-bid estimate:
1 bidder add 15% to 40%
2 to 3 bidders add 8% to 12%
4 to 5 bidders -4% to +4%
7 to 8 bidders deduct5% to 7%
YUHSDJOC – Job Order Contracting
JOC – Job Order Contracting
Pros:
• On Call Contracting (For projects under $1M or $2M)
• Qualifications based and useful for major maintenance projects
• Fast response, easy to administer & open book
• Added value: pre-construction, D/B and partnering
Cons:
• Potential for higher construction costs
• Limited to $1M or $2M (based on rules)
• Raises the threshold for contractor entry
YUHSD BOND
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YUHSDCMAR – Construction Manager at Risk
CMAR – Construction Manager at Risk
Pros:
• Qualifications Based
• Early integration of general contractor into design processo Open book – fully auditableo Increased owner control to achieve project objectiveso Construction sequencing, logistics & cost modeling
• Guaranteed Maximum Price (GMP)o Sub-contractor bidding (qualifications/price)o Risk management, no-surprises – demand best value
Cons:
• Potential for higher construction costs
• Raises the threshold for contractor entry
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YUHSDCMAR – Construction Manager at Risk
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Important CMAR Aspects
• During pre-construction (design phase), CMAR acts as a consultant to the owner
• When the construction GMP is established, the CMAR becomes the equivalent of a general contractor
• A separate contract is issued for pre-construction (design phase services) and another for construction phase services
• If an acceptable Construction GMP is not agreed upon, then relationship is severed
ASU Dissertation- 2015
GMP
YUHSDCMAR – Construction Manager at Risk - Typical Scope of Work
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Prior to GMP, CMAR provides Pre-Construction Services:
• Estimating
• Scheduling/Phasing/Sequencing (Early Release Construction)
• Design assistance and constructability reviews
If Owner accepts the GMP for Construction…
• CMAR assumes role of general contractor
• CMAR is responsible for cost of the project
• CMAR must bid sub-contractor work
• Project team concept is maintained
Yuma K-12 Construction Market Analysis
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New K-12 Construction Market Analysis(In order of completion and/or bid 2020 to 2016 – scope varies)
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Somerton Elementary (IFB) $245.62 Sq.Ft. (includes site work & food service equipment) (Bid only) (New Build) (Initial Price) May 2020
Dorothy Hall Elementary (CMAR) $219.23 Sq.Ft. (includes site work, no FF&E) (New Build) Open 2019
Kofa Building 4 (CMAR) $181.96 Sq.Ft. (site work and FF&E outside GMP) (New Build/Existing Campus) GMP 2018
Kofa Auxiliary Gym (CMAR) $165.09 Sq.Ft. (site work and FF&E outside GMP) (New Build/Existing Campus) GMP 2018
Vista High (CMAR) $174.17 Sq.Ft. (includes site work and limited FF&E) (New Build) GMP 2017
District Admin & Professional Dev Bldg. (CMAR) $201.59 Sq.Ft. (Includes site work, Elevator and limited FF&E) (New Build) GMP 2017
Cibola 700 Bldg. (CMAR) $168.45 (site work and FF&E outside GMP) (New Build/Existing Campus) GMP 2016
EXPECTED OUTCOMES FOR SOMERTON H.S.
• Time - Ability to manage schedule, including early release construction packages (Multiple GMP’s) – Schedule acceleration to meet academic calendar & control
• Cost - Stay on-budget with the ability to control the use of 5-funding sources. Open book transparency, assure best value with competitive sub-contractor bidding
• Scope - Manage risk, quality and achieve academic objectives & quality community spaces
• Safety - Continue delivering projects safely
YUHSD – Somerton H.S. SpecificCMAR – Construction Manager at Risk – Expected Outcomes
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Q/A
SOMERTON HIGH SCHOOL CMAR QUALIFICATIONS CRITERIA
1. FIRM INFORMATION (50 POINTS) - LICENSES-BONDING CAPACITY-SAFETY RATING-TEAM MEMBERS
2. CURRENT WORKLOAD (50 POINTS) – CAPACITY TO COMPLETE WORK ON SCHEDULE
3. APPROACH TO PROVIDING PHASED CONSTRUCTION SERVICES FOR A NEW GROUND UP FACILITY INCLUDING PHASED OFF-SITE IMPROVEMENTS, EXPERTISE IN COST CONTROL, COST EFFECTIVE APPROACHES AND DEMONSTRATING BEST VALUE TO THE SCHOOL DISTRICT (300 POINTS)
YUHSD – Further InformationCMAR – Somerton High School CMAR Qualifications Criteria
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SOMERTON HIGH SCHOOL CMAR QUALIFICATIONS CRITERIA – CONTINUED
4. RELATIVE WORK EXPERIENCE (250 POINTS) –COMPARABLE PROJECTS-DELIVERY METHOD-KEY STAFF THAT WORKED ON THOSE PROJECTS-PAST CLIENT CONTACTS
5. EXPERIENCE OF KEY PERSONNEL FOR PROJECTS (250 POINTS)
6. REFERENCES AND OVERALL EVALUATION OF FIRM’S PERCEIVED ABILITY TO PROVIDE SERVICES (100 POINTS)
YUHSD – Further InformationCMAR – Somerton High School CMAR Qualifications Criteria –
Continued
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