study session – project delivery methods overview

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

PROGRAM

DELIVERY

METHODS

TOOLBOX

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

PROGRAM

DELIVERY

METHODS

TOOLBOX

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

PROGRAM

DELIVERY

METHODS

TOOLBOX

YUHSDIFB – Invitation for Bid (Lowest Bid) Special Note

IFB – Special Note about Bid Coverage

YUHSD BOND

PROGRAM

DELIVERY

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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

PROGRAM

DELIVERY

METHODS

TOOLBOX

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

YUHSD BOND

PROGRAM

DELIVERY

METHODS

TOOLBOX

YUHSDCMAR – Construction Manager at Risk

YUHSD BOND

PROGRAM

DELIVERY

METHODS

TOOLBOX

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

YUHSD BOND

PROGRAM

DELIVERY

METHODS

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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

YUHSD BOND

PROGRAM

DELIVERY

METHODS

TOOLBOX

New K-12 Construction Market Analysis(In order of completion and/or bid 2020 to 2016 – scope varies)

YUHSD BOND

PROGRAM

DELIVERY

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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

YUHSD BOND

PROGRAM

DELIVERY

METHODS

TOOLBOX

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

YUHSD BOND

PROGRAM

DELIVERY

METHODS

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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

YUHSD BOND

PROGRAM

DELIVERY

METHODS

TOOLBOX

study session – project delivery methods overview

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