innovative contracting construction management association of america seminar may 17, 2013...
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Innovative Contracting
Construction Management Association of America Seminar
May 17, 2013
California Department of Transportation
Traditional Project Delivery
Design-Bid-Build (DBB) Specified by Public Contract Code Design must be complete Awarded to the lowest responsible bidder
Why Use Innovative Methods?
Faster Delivery Cost Certainty Constructability Better Partnering Risk Transfer Innovation
Innovative Contracting Effort
Hired Trauner Consulting Services, Inc. to: Identify methods used by others Identify the pros and cons of each method Assist in developing policy, procedures, and
processes for selected methods Assist in developing training
Innovative Contracting Report
Identified 27 methods divided into the following categories:Project Delivery SystemsProcurement PracticesContract Management Methods
Project Delivery Systems
Caltrans Experience Design-Bid-Build Design-Sequencing
Additional Methods Indef. Delivery/
Indef.Quantity Agency-CM CM at-Risk Design-Build Early Contractor
Involvement Project Alliancing Contract Maintenance
Procurement Practices
Caltrans Experience Cost-Plus-Time (A+B)
Bidding Low Bid Lump Sum Bidding
Additional Methods Multi-Parameter
(A+B+C) Bidding Alternate Design Alternate Bid Additive Alternates Best-Value Reverse Auction Bid Averaging
Contract Management Methods
Caltrans Experience Incentive/Disincentive Lane Rental Flexible Notice to
Proceed Warranties
Additional Methods Liquidated Savings Active Management
Payment Mechanism No Excuse Incentives Shared-Risk
Contingency Fund
Design-Build
Design-Build
A delivery method where a contract for both the design and construction of a project is awarded to a single entity.
Design-Build
30% Design
RFQ
RFP
Design
RFC RFC
Construct Construct Construct
RFC
Award
Legislation – Senate Bill 4
Allows 15 design-build projects 10 Caltrans 5 Local
California Transportation Commission must authorize
Prequalification versus shortlisting
Allows “Low Bid” or “Best Value” awards
Sunsets January 1, 2014
Authorized Projects
Awarded Projects LA 10/110 – Express Lanes $ 72 million Mad 99 – Rehabilitate Roadway $ 23 million SM 101 – Install Ramp Metering System $ 11 million Fre 180 – Construct Braided Ramps $ 41 million LA 10/605 – Construct EB 10/SB 605 Connector $ 46 million SD 805 – I-805 North HOV/BRT $ 72 million LA 710 – Gerald Desmond Bridge $650 million SBd 15/215 – Devore Interchange $208 million Riv 91 – HOV Lanes $633 million
Projects Currently in Procurement Cajon Pass $140 million North Region Bridge Deck Rehabilitation $ 58 million
Why Use Design-Build?
Faster Delivery Cost Certainty Constructability Risk Transfer Innovation
Alternative Technical Concepts
Alternative Technical Concepts (ATC) are proposed changes to the Department’s supplied basic configurations, design criteria, or construction criteria which provide a solution that is equal to or better to the requirements in the Request for Proposals.
Alternative Technical Concepts (ATCs)
ATCs submitted – 206Value of ATCs submitted – $967 million
ATCs approved – 109Value of ATCs approved – $502 million
ATCs incorporated – 29
Value of ATCs incorporated – $142 million
Devore Interchange Project
Deliver project 18 months earlier Secured $108 M SHOPP funding for the
project Improved design, I-15 NB continuity Reduced right of way take (10 parcels) Reduced environmental impacts $40 M savings
Construction Manager-General Contractor
Construction Manager /
General Contractor (CM/GC)
A delivery method that allows an owner to engage a construction manager to provide input during the design process. At an agreed upon point, the owner and construction manager negotiate a price for construction of the project and the construction manager becomes the general contractor.
CM/GC Process
30% Design
RFQ
Award (Construction
Services)
Design
Negotiate Price
Construct
Award(Preconstruction
Services)
Preconstruction Services
Constructability Reviews Verify Quantities Estimate Alternatives Value Analysis Risk Analysis Construction Phasing Project Scheduling
Authority
Assembly Bill 2498 (Gordon) Signed September 2012 Added Section 6700 to Public Contract Code Authorizes up to 6 projects by Caltrans Must be administered by Caltrans 5 projects greater than $10 million Effective January 1, 2013 No sunset date
Why Use CM/GC?
Faster Delivery Cost Certainty Constructability Risk Mitigation Innovation
Next Steps
Develop processes and contract templates
Industry outreach
Project selection
Begin procurements
Useful Links
Innovative Procurement Practices Report:
http://www.dot.ca.gov/hq/oppd/contracting/InnovativeProcurementPractices.pdf
Alternative Procurement Guide:
http://www.dot.ca.gov/hq/oppd/contracting/AlternativeProcurementGuide.pdf
Useful Links
Design-Build Demonstration website:
http://www.dot.ca.gov/hq/oppd/designbuild/db.htm
FHWA’s Design-Build Effectiveness Study
http://www.fhwa.dot.gov/reports/designbuild/designbuild.pdf
Useful Links
CMGC Pilot Program website:
http://www.dot.ca.gov/hq/oppd/cmgc/
NCHRP Synthesis 402: Construction Manager-at-Risk Project Delivery for Highway Programs
http://onlinepubs.trb.org/onlinepubs/nchrp/nchrp_syn_402.pdf
For More Information Contact:
Raymond S. Tritt
Chief, Office of Special Projects
California Department of Transportation
(916) 653-3348