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Module IV: CMGC Pre-Construction Phase . Joe Elsen, Region 3 Benjamin Acimovic, Region 1. Topics. Importance of the Preconstruction Phase Partnering Active Project Management Risk Assessment and Risk Register Constructability and Written Reviews The Open Cost Model
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Module IV: CMGC Pre-Construction Phase Joe Elsen, Region 3 Benjamin Acimovic, Region 1
Topics • Importance of the Preconstruction Phase • Partnering • Active Project Management • Risk Assessment and Risk Register • Constructability and Written Reviews • The Open Cost Model • Environmental Clearances • Independent Cost Estimator • GMP Process and the D-B-B option
Importance of the Preconstruction Phase • The Preconstruction phase is where the ground work for the relationships, negotiations, models, and risk register that will make the project successful is performed. • The Preconstruction phase is where the partnering and communication is critical to the success of the project. • The contractor gets to fully understand the site constraints • The contractor gets several months of project exposure • There is an opportunity to shorten the project critical path • Managing scope, schedule, and budget is enhanced. • Managing relationships, people, and personalities
Partnering • Critical to the success of the project: • Establish organizational roles and responsibilities. • Establish lines of communication between all team members. • Set the culture that will continue throughout Pre-con and Construction Phases • “No blame, only solutions” (quote from FHWA Peer Exchange on CM/GC) • Builds the relationship foundation for: • Understanding schedules and assumptions • Creating an atmosphere where effective problem solving is rewarding • Minimizing disputes and fast tracking dispute resolution • Adding to overall success of the project.
Active Project Management • The role of the CDOT Project Manager and CDOT Team • Trust is vital • CDOT PM needs to lead the meetings and manages all communications, roles, and responsibilities. • Plays key role as facilitator and mediator for the team. • Empowered to manage and lead the project. • Project management team must be very involved in the project knowing design and construction aspects so that quick decisions can be made. • CDOT management team needs to have the resources and time
Active Project Management • The role of CDOT HQ and Region Specialty Groups • Backup the project management team. • Typical design-bid-build responsibilities • Design input and Review with team and the ICE • Attend Meetings and participate actively • Understand roles and responsibilities • Similar to D/B/B, with added collaboration • Engage in Risk Assessment and Mitigation
Active Project Management • The role of the contractor in design • Contractor acts as an advisory or subject matter expert in the area of construction, constructability, construction estimating, schedule, material choices, risk assessment. • The role of the designer (consultant or CDOT) in design • To design all aspects of the project – traffic, roadway, bridge, geotech, walls, hydraulics, etc. • Responsible for stamping the plans • Both are required to communicate and collaborate!
Active Project Management • What happens when:
Active Project Management • It’s up to the CDOT project manager to lead, mediate, and make the decisions if the team has collaboration issues. • Keep the partnering strong and document everything with emails and memos. • Know the project scope, budget, and schedule as well as anyone on the project.
Risk Assessment and Risk Register • Risk Assessment • CM/GC allows the team to jointly identify, discuss, and analyze risks • Assign that risk to the party best-suited to mitigate the cost or schedule impact • During preconstruction, risk can often be eliminated through design changes • Risk Register • Many risks are identified during Project Delivery Selection process • Contractors assess risk on virtually every job – contingency $ added • Joint use of the Risk Register allows good decisions to be made and limit contingencies • Allows the contractor to track and communicate the risk it sees as high, medium, and low.
Risk Assessment and Risk Register • Shared Risk Contingency Pool • Think of this as a Minor Contract Revisions (MCR) pool that is for risks that occur. • The Contractor’s pricing has the risk removed from unit prices. • Creates an incentive to avoid use of the Pool since it will be split 50/50 at the end • Range of approx 3 to 10% and will be negotiated on a project by project basis.
Constructability and Written Reviews • Constructability Reviews • Focus on project “means and methods” to build the work. • Are these plans and specifications able to be constructed effectively? • Example – determination of crane type and quantity to erect a bridge • Need to consider many factors including Context Sensitive Solutions (CSS) • Having the contractor at the table to give “real costs” is invaluable during this phase. • Crane charts for pad location and swing requirements are analyzed to predict time and cost. • Written Reviews • Critical to document decision-making process. • Able to track changes efficiently • Less “reinvention of the wheel”
Dotsero Preconstruction – Value Added ROLE OF THE CONTRACTOR
Dotsero Preconstruction – Value Added • Input from Kraemer on Early Design Work : • Beam Erection Analysis / Selection of Girders
2400V – Value Added • Input from Sturgeon Electric: • A one word mistake discovered by Sturgeon saved CDOT $1.4 million. Two Starter Two Winding Two Starter One Winding • Identified high risk in 35 year old cables and wires falling part during removal of cabinets. Replacement of cables was added to the project. • Long Lead Time Cabinet Switchgear ordered before construction phase began. Allowed teams to continue design and begin construction ahead of cabinet delivery.
The Open Cost Model • How much is this project really going to cost? • Costs can change from Scoping to FIR to FOR to Construction to Final Payment • How sure are you? • With D/B/B we mainly focus on historical numbers and market conditions. • Looking at Labor, Materials and Equipment • CM/GC allows actual contractor bidding info to be examined prior to finalizing design. • Transparency and documentation is critical. • Very important to reach agreement on quantities, units, assumptions, and specifications. • Importance of locking down the CM/GC Management Fee • Using “Best Value” we obtain this number during the procurement of CM/GC services. • Transparency is Key - be respectful of the Confidentiality Agreement!
Environmental Clearances • D-B-B Process • Very similar to D/B/B and processes that CDOT already has established. • The recently revised Design Bulletin offers greater latitude, pending FHWA approval, to advance design past preliminary stages prior to decision documents or top part 128 clearances. • Multiple Phases • The multiple GMP approach is beyond the scope of this training. • Each phase or bid package must be severable and able to advertise and complete without any other part of the project. • Each Package is cleared and taken to construction separately. • Examples are construction of a key haul road, detour, or bridge work, etc
Independent Cost Estimator • Role of the ICE • The ICE is an independent check for construction cost estimating • They are contracted directly by CDOT and cannot be contracted directly by the project design consultants or contractors. • They need to understand the assumptions that go into pricing the work. • When does an ICE come into play? • Typically at 30%, 60% & 90% plan reviews, to compare to the Contractor’s “Opinion of Probable Construction Cost” or OPCC • When an LLTP GMP proposal is submitted. • When a construction GMP is submitted. • How do we bring an ICE onboard? • By Task Order - CDOT will have a statewide NPS contract available in February (also appropriate to procure a Project Specific contract)
GMP Process and the D-B-B option • What is a GMP? • A Guaranteed Maximum Price, or GMP, is submitted by the Contractor as a proposal to CDOT. It is created from two parts: • Direct costs of completing the construction work in bid form • Construction Management Price Percentage – • Margin (Overhead, Profit, and General & Administrative costs) • It is essentially their bid for the work without Risk Contingency which is handled through negotiated F/A items and a shared risk contingency pool.
GMP Process and the D-B-B option • What happens if a GMP proposal is not accepted? • The GMP needs to be within 10% of ICE and EEMA estimates. • GMP proposals can fail. Our guidance is that GMP proposals can be submitted three times and the open cost model renegotiated in order to reach agreement. • If no agreement can be met, CDOT reserves the right to advertise the bid package to solicit low bids. • The CM/GC firm can NOT bid on the project as the general contractor.
CM/GC Preconstruction Questions?