DESIGN BID BUILD CSD HDR Contractor Sub Sub Sub - PowerPoint PPT Presentation

DESIGN BID BUILD CSD HDR Contractor Sub Sub Sub

DESIGN-BID-BUILD  Most common approach in the US  Entirely sequential  Can be single-prime or multi-prime  District holds all contracts  Cost is the only criteria for selection (low bid process)

OWNERS IN DESIGN-BID-BUILD  Selects the Architect, Inspector, Project Manager  Serves as a single point of feedback during design  Awards contact to low bid contractor  Must oversee all contract relationships; active participation

ARCHITECT DESIGN-BID-BUILD  Prepares and interprets Plans and Specs  Manages bid process(if not by owner)  Provides some level of construction admin  Approves/verifies pay requests and change orders

GC IN DESIGN-BID-BUILD  Coordinates subcontractors  Delivers project at bid price  Completes building on time

PROS OF DESIGN-BID-BUILD  Best understood  Longest legal history  Can produce highly competitive pricing; bottom line costs  Auditors, attorneys, public officials are most comfortable with this method  Default method for government; need special permission to use other methods  Well suited to uncomplicated projects with straightforward objectives and adequate time; owner knows what they will get  Least personality driving of all the choices

CONS OF DESIGN-BID-BUILD  Inherently antagonistic  Can create significant legal issues where unforeseen problems arise  Lows bids can encourage high change orders  Can be difficult for inexperienced contractors in constrained environments  Owner liable for design errors and change orders  Delay claims and disputes are common  Guaranteed price late in process  Can be dangerous for inexperienced owners  Potential philosophical disconnect  The books are closed. Profitability is the goal for the Contractors to take advantage of “competitive process”

CONSTRUCTION MANAGER @ RISK SCHEDULE Design - Estimate Construction Value; Construction Review;Value 30% Design CM@R RFQ and Engineering; Prepare Trade 100% Design Trade Bidding & Award Trade Complete Begin Design Workshop Selection CM@R Award Bid Package Completion Award by CM@R Contracts Start Construction Construction 6/1/13 7/18/13 9/18/13 11/18/13 1/15/13 2/1/14 6/1/13

CONSTRUCTION MANAGER AT RISK CSD HDR CM@R Sub Sub Sub

CONSTRUCTION MANAGER @ RISK  The CM assumes the financial risk for construction in addition to consultation during design and construction  The selection is based on both cost and qualifications  CM is involved at onset of design  Separate bid packages and contracts for trades  Possible fast tracking  Ability to pre-purchase long lead items

OWNERS IN CM@RISK  Determines CM@R selection criteria and makes selection  Negotiates the Guaranteed Maximum Price and CM@R Incentives  Contracts with Building Trades

ARCHITECTS IN CM@RISK  Designs project according to Owner requirements  Provides participatory feedback  Prepares construction documents  Acts as owners rep during construction

CONSTRUCTION MANAGER@ RISK  Works as a team member consulting during design and construction  Keeps the architect informed on costs, schedule and implications of alternative designs, systems, and materials used  Bids Trade packages and recommends Trade contracts  Coordinates all work and completes project on time

PROS OF CM@RISK  Can work well for projects where early construction contractor participation is desirable for coordination among trades  Complex scheduling addressed early  Resolving challenging constructability issues early in the process  Provides more certainty to the owner than design/build  Clear schedule under control of CM@R  Explicit design geared for various trades  Suitable where facility must continue to operate during construction  Pricing and cost model are developed along with design  Owners gets to select designer and construction manager  Opportunities for fast tracking

CONS OF CM@RISK  Architect and CM@R still have separate contractual relationships with the owner and can be a source of conflict  Owner must invest equal degrees of control to both parties  Needs to have the right mesh of personalities  Project staff turnover can create problems  Owners needs to have sufficient expertise to manage both CM@R and Architect

DESIGN BUILD BID SCHEDULE 30% Design 100% Design Advertise for Award Complete Begin Design Workshop Completion Bids Open Bids Contract Start Construction Construction 6/1/13 7/18/13 9/1/13 9/15/13 10/15/13 11/20/13 1/1/14 5/1/13