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A Fairfax County, VA, publication

Department of Public Works and Environmental Services Working for You!

Fairfax County Government – Construction Management At Risk (CMAR)

Presented for: CMAA - Owner’s Committee

Presented by: Matt Doyle

Branch Chief, Wastewater Design and Construction Division

April 19, 2017

Construction Management At Risk (CMAR)

Presentation Objectives: To assist other Owners to understand and/or implement a CMAR project! 1. Introduction

2. Presentation Disclaimer

3. What is CMAR

4. Your authority to implement a CMAR

5. CMAR Relationship structure

6. The CMAR Process

7. What should an Owner expect

8. Owner’s Benefits for using CMAR

9. Owner’s disadvantages for using CMAR

10. CMAR Case Study

11. Lessons Learned

Introduction

• Matthew Doyle, PE – Branch Chief, Wastewater Design and Construction Division

– 25 years of Design and Construction Experience in the Mid-Atlantic

– Sole in the Water and Wastewater Industry

– Experience with various delivery methods

• Design Bid Built

• Design Built

• Job Order Contract

• Purchase Order

• Construction Management at Risk

• Multiple Award Task Order Contracts

Presentation Disclaimer

• Presentation Disclaimer – Too fully discuss CMAR it would talk several hours

– For more information about CMAR, check out the April 2017 edition of Public Works Magazine

– We will not be talking about

• CMAR Procurement Process

• GMP Development / Negotiation

• Bid Package Development

• Self Performance requirements

• GMP Gap items

• GMP Assumptions

• GMP Contingency

• Off-Ramps

• CMAR Fee

• Cost Sharing

What is CMAR?

• A project delivery method where it utilizes a two-part construction contract with a Construction Manager to: – PART 1: Provide Preconstruction Services which may include, but are not

limited to, constructability analysis, value analysis, scheduling, site assessments, and cost estimating;

– PART 2: Construct the project based on final design plans (or design packages) at an agreed Guaranteed Maximum Price (GMP)

• One Construction Contract – With “potential” amendments

– With Off-Ramp to D/B/B if needed

– The Contract may only have one PART.

What is CMAR?

• Construction Management At Risk (CMAR) – A project delivery

method in which the Construction Manager acts as a consultant to the owner in the development and design phases, but assumes the risk for construction performance as the equivalent of a general contractor holding all trade subcontracts during the construction phase.

• From the: – 2012 CMAA “Owner’s Guide to Project Delivery Methods”

https://cmaanet.org/files/Owners Guide to Project Delivery Methods Final.pdf



What authority do you have to use CMAR?

• Federal: – Moving Ahead for Progress in the 21stCentury (MAP-21) –Construction

Manager/General Contractor (CM/GC)

• Virginia: – Code of Virginia

• § 2.2-4306. Design-build or construction management contracts for Commonwealth authorized.

• Maryland: – Code of Maryland Regulations

• COMAR 21.05.10

What is the relationship structure of a CMAR?

Process of CMAR

Why CMAR?

• Owner’s reasons for selecting CMAR: – Project Complexity

– Tight schedule

– Increased quality

– Contractor Input During Design

– High Number of Potential Risks/Risk Allocation

– Scope Flexibility/Maximizing Dollar

– Cost Analysis of Multiple Design Options

– Informed Owner Decision Making

Risk Allocation for a CMAR

What should an Owner expect with a CMAR Contract?

• Typical Expectations: – A true partner you can trust (innovation & collaboration)

– No adversarial relationship

– Meet Project Goals

– Fair Market Price At or Below Proposed Price

– Improved Schedule

– Fewer Change Orders

Owner’s Benefits for using CMAR

• Opportunity to bring on a CM during the design phase to work as an integrated team with the owner and its consultant/engineer to deliver the most efficient, and cost effective design.

• Examples: – Stockpile

– Pipe Materials

– Sheeting and Shoring

– Installation Methods


• Promotes innovation & collaboration

• Unlike D-B the Owner maintains decision making authority


• Greater cost certainty through GMP and reduction in change orders – Too Expensive?

– Better quality or value is needed?

• Still allows phased construction similar to design-build resulting in accelerated completion times. Phases must be stand alone and severable.


• Risk identification & management during design phase and controlled by the team

• Owner gets up front benefit of value engineering

• Owner gets up front benefit of constructability reviews

• CMAR design documents are biddable packages, not necessarily full set of biddable contract documents

Owner’s concerns for using CMAR.

• Owner’s concerns for using CMAR – The Design team may not take input from CM during design

– The Design team may not like sharing the “Driver’s Seat” with the CM

– During the early stages of the project and before the GMP has been established, there is sometimes ambiguity concerning the scope of work

• Allowances

• Assumptions


• Owner’s concerns for using CMAR. – The misunderstanding associated with the GMP is that this maximum

price will never be exceeded.

• As with any delivery method, incomplete and/or inaccurate construction drawings will result in change orders.

• It is important to understand that the GMP is based on the plans and specifications at the time of the GMP with some reasonable assumptions made and a reasonable contingency included.

• Major changes in scope will result in a change order, which increases the GMP contract.

• Any Owner changes will require a change order.


• The CM at risk will also present some issues that might be worthwhile to discuss. – The owner’s familiarity with the construction process and level of in-

house management capability

– An owner must make an assessment of its ability to properly perform under the various delivery methods.

– It takes the Owner more time to process a CMAR than a D/B/B

CMAR Case Study

• Fairfax County DPWES: Disinfection Facilities Upgrade – $70.0 Million Dollar Wastewater UV Disinfection Facility

– 7 year Project Duration

– Multiple Buildings

– Building and Utility Relocations

– New Ultraviolet Disinfection Technology

– Needed to be fast tracked

– Complex Hydraulics

– Complex Instrumentation

– Complex Existing Site Conditions

CMAR Case Study

• Fairfax County DPWES: Disinfection Facilities Upgrade – 2013 Hired an Engineer to complete a Preliminarily Engineering Report

– 2014 Hired the same Engineer to complete the detailed design

– 2015 Determined we needed pre-select the UV Equipment to customize the design.

• This put us behind schedule by 8 months

• The design was stalled

CMAR Case Study

• Fairfax County DPWES: Disinfection Facilities Upgrade – 2015

• Learned about CMAR from CMAA and other Professionals

• Started doing some research about the CMAR Process

• Realized we could use CMAR (Code of Virginia § 2.2-4306)

• We also realized Fairfax County has never done a CMAR before

• Reached out to another Owner “Charleston Water System, SC”

• We also realized we needed to “sell” this procurement method to all internal parties. (GET BUY-IN)

– End-Users

– Legal staff

– Upper Management

– Procurement Department

– The Designer

– Board of Supervisors

CMAR Case Study


• Once we got buy-in by all parties we also realized…we didn’t have any standards to follow.

– Starting with the Standard CMAA CMAR Documents

» Developed a Request for Qualifications

» Developed a Request for Proposal

» Develop a CMAR SOW for Pre Construction Services

» Develop a CMAR Contract

» Develop CMAR General Conditions

• We needed to redirect the design engineer

– Two design packages (Early start Package)

– Revise the designers SOW

MMM, Yeah, If you can get that CMAR to

me by the 35% design THAT’D BE GREAT

CMAR Case Study


• Issued the RFQ and received multiple qualified responses

• Issued an RFP to three qualified CM firms

• Negotiated with the top two CM firms

• Selected the CM firm

• Signed a CMAR Contract (before the 35% detail design submission)

CMAR Case Study


• Pre-construction services included but not limited to…

– Value Engineering

– Construability Reviews

– Building Information Modeling

– Virtual and Augmented Reality

– Cost Estimates

– Schedule

– Identification of Long Lead Equipment

– Sub-Contractor Planning

– Safety Plans

– Risk Registers

– Development of GMP

– Development of Bid Packages

– Permit Support

CMAR Case Study


• The CM presented the GMP Amendment #1 (GMP #1)

– Removal of utilities

– Demolition

– Site Preparations

– E&SC

– Mobilization

– Two small buildings

– Major Excavations

– Major piping

• The GMP #1 was negotiated with the CM

– $18.0 Million

• The GMP #1 was approved last week

• We gave NTP for GMP #1 on 4/18/2017

CMAR Case Study

• Fairfax County DPWES: Disinfection Facilities Upgrade – 2017 (future)

• We are working towards developing GMP #2

– $40.0 Million

• We are currently tracking 12 months ahead of schedule

CMAR Case Study

• Fairfax County DPWES: Disinfection Facilities Upgrade – We have currently saved nearly $4.0 million dollars in CM value

engineering,

– We are back on schedule

– We are getting quality sub-contractors to do the work

– We are getting quality equipment

– We have developed positive work environment

– We have developed a real partnership with the CM.

– We have a happy end-user

CMAR Case Study

• Fairfax County DPWES: Disinfection Facilities Upgrade – Lessons Learned (not in order)

• Permitting needs to be done very early

• Standard A/E contracts and SOW will need to be edited for CMAR

• Hire your CMAR as early as possible

• Don’t let you’re A/E amend your GMP documents to near 100%

• Develop a GMP at 70% (+/-)

CMAR Case Study

• Fairfax County DPWES: Disinfection Facilities Upgrade – Lessons Learned (not in order)

• Get full buy-in by all parties

• Seek out another Owner for advice

• Construction Firms are now preforming

• Believe in the true partner concept with your CM.

• Construction Manager acts as a consultant to the owner (Important to remember for all Owners)

• Your design Engineer may be threatened by a A/E firm with a Construction Division

• Develop Design Documents as Bid Packages,

Fairfax County - CMAR

Questions?