1 / 13

CMAA Water Summit Service Provider Executives Forum

CMAA Water Summit Service Provider Executives Forum. July 19, 2010 Richard D. Fox Chairman & Chief Executive Officer Camp Dresser & McKee Inc. Underfunded Investment Is Clear But No Obvious Way Forward. “More for Less”. Infrastructure Investment ($ billions). (Needed). (Needed).

halen
Download Presentation

CMAA Water Summit Service Provider Executives Forum

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CMAA Water SummitService Provider Executives Forum July 19, 2010 Richard D. Fox Chairman & Chief Executive Officer Camp Dresser & McKee Inc.

  2. Underfunded Investment Is Clear But No Obvious Way Forward “More for Less” Infrastructure Investment ($ billions) (Needed) (Needed) (Needed) (Actual) (Actual) (Actual) Water Resource Water Wastewater

  3. Opportunities • Better policies / regulations • More sustainable infrastructure • Technology advancement • Raising the Value of Water • Improving the Delivery of Assets

  4. Productivity of US construction versus productivity gain in non-farm industries 1964 70 75 80 85 90 95 00 Source: US Department of Labor

  5. Why? Design-Bid-Build (D-B-B) Master Plan Investment Phase Design Bid Construct Commission Operate/ Maintain

  6. Service Provider Opportunity Level of Investment 1 – 5 years 7 – 9 years 20 – 30 years Design-Bid-Build (D-B-B) Master Plan Investment Phase Design Bid Construct Commission Operate/ Maintain

  7. Seizing the Opportunity • Gain Productivity: • Eliminate interfaces • Lower LOE • Reduce re-work • Reduce schedule • Reduce change orders • Improve Owner Comfort: • Visualization • Transparency • Rationale Risk Transfer: • Procurement process • Knowledgeable advisor • Co-sponsored risk register Collaborative 4-D Design

  8. ≠ Traditional design build Owner Comfort • Rehab • Consistency • Aesthetics/Noise/Odor High levels ofdesign control – – – EPCM 65 % Design Negotiate Construct/Commission Procure

  9. Select Designer Design Bid Construct Commission Transparency Competitive Price Change Orders Market Criteria/Price Criteria/Price D-B-B Construction Manager Competitive Price / 10% Design Escalation D-B Procure Design / Construct / Commission Change Orders Criteria/Design EPCM Sub-bids 65 % Design Negotiate Construct/Commission Procure Target Price Firm Price

  10. Risk Transfer RISKS MEANS/METHODS PRICING • Errors/Omissions Professional Liability 0.1% - 0.3% • General Liability Insurance 0.1% - 0.2% • Worker Injury Workman’s Compensation 0.1% - 3.0% • Contractor Payment Bonds 0.5% - 1.0% • Contractor Performance-ScheduleLiquidated Damages 0% - 10%-Overall Contractual Transfer 0% - 7% • Force Majuere Contract Exclusion 0% - 0% • Facilities Performance Contract Transfer (warranty) 0% - 3% • Limits on Liability Contractual Terms Erratic/Exorbitant • Consequentials Contractual Terms Erratic/Exorbitant

  11. 4-D Design

  12. Orlando DB Center

  13. Summary • Global forces demand “More For Less” • Productivity of traditional delivery • Design Control = Modified D/B or EPCM • Transparency • A real, client specific issue • Discuss it / manage it • Risk Transfer • Rationale – Fair Pricing • Full – Exorbitant Pricing/No Responsible players

More Related