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GFOAz Spring Training 2006

GFOAz Spring Training 2006. Alternative Delivery Methods A Procurement Process Presented by Dan Zenko Herman Koebergen. Agenda. History Project Preparation The Procurement Methods Q & A. Arizona History. Prior to August 15, 2000 Low Bid Construction QB for A&E After August 15, 2000

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GFOAz Spring Training 2006

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  1. GFOAz Spring Training 2006 Alternative Delivery Methods A Procurement Process Presented by Dan Zenko Herman Koebergen

  2. Agenda • History • Project Preparation • The Procurement Methods • Q & A

  3. Arizona History • Prior to August 15, 2000 • Low Bid Construction • QB for A&E • After August 15, 2000 • Added • Design-Build (D/B) • Construction Manager at Risk (CM@R) • Job Order Contracting (JOC)

  4. Arizona History • Revisions • 2003 • Minor clean up • 2005 • Limits • Addressed horizontal construction • Subcontractors • Reporting eliminated

  5. Delivery Methods • Design-Bid-Build • Design-Build • Construction Manager @ Risk • Job Order Contracting

  6. Before You Start • Define Scope/Budget/Program • Project approval • Decide early on delivery method • Identify potential project delays • Procurement limitations by funding source

  7. Ability to fast track Open book approach Ability to pre-qualify Contractors involved early Collaborative approach Focus on project’s best interest Early cost feedback Rewards performance Higher quality Better risk mgmt Fewer disputes/claims Based on trust Potential savings Customer oriented No or reduced change orders Alternate Delivery Method?

  8. Peoria’s Drivers of Change • Speed to market demands • Reduced owner resources • Transference of risk • Less tolerance for conflicts • Cost control

  9. Peoria’s Expectations

  10. Disclaimer This is for information purposes only, please seek advise from your legal council before using the processes described in this presentation

  11. Design-Bid-Build

  12. Design-Bid-Build • Traditional method • Separate, sequential contracts • No formal relationship between A/E & GC Owner Designer

  13. Architects & Engineers • Architect/Engineer hired using Qualification Based Selection (QBS) • Direct Select • Statement of Interest & Qualifications • No pricing allowed

  14. A&E: Direct Select < $500,000 Engineer < $250,000 Architect • Negotiate Scope of Work and Fees Caution on usage

  15. Caution on usage • Use sparingly • Adjacency • Small dollar

  16. A&E: SIQ

  17. Construction Services • Contractor hired using Price Based Selection

  18. Priced Based • Fixed Price • Fixed unit cost • Estimated quantities • Lump Sum • Limited Schedule of Values

  19. Break

  20. Design-Build

  21. Design-Build • Single point of contact for design & construction • Flexible sequencing Owner

  22. A&E: Design/Build

  23. Negotiation StepsSeparate or Sequential • Pre-Construction Services • Guaranteed Maximum Price (GMP)

  24. Negotiation StepsSeparate or Sequential • Preconstruction Services • Design & Programming • Mitigation of Unknowns • Schedule • Determine GMP

  25. Negotiation StepsSeparate or Sequential • Guaranteed Maximum Price (GMP) • Construction costs • Overhead/fees • FF&E • Contingency Owner/Contractor

  26. Construction Manager @ Risk

  27. CM@R • Separate Contracts • Design & Construction Sequential or Concurrent • Transfer Risk Owner Designer

  28. CM@R

  29. Negotiation StepsSeparate • Preconstruction Services • Design & Programming • Mitigation of Unknowns • Schedule • Determine GMP • Guaranteed Maximum Price (GMP) • Construction costs • Overhead/fees • FF&E • Contingency Owner/Contractor

  30. Break

  31. Job Order Contracting

  32. JOC • Standby Construction Contract • Work performed as job orders issued • May include • design • pre-construction • operations • maintenance Owner

  33. JOC

  34. Pricing • Cost Index Services (i.e. RS Means) • % discount • Request Pricing • Compare to historical costs

  35. Contractual Considerations

  36. Contractual Considerations • Required • Federal grant requirements • Bonds • Insurance • Cancellation • Right to Audit • Open Book

  37. Contractual Considerations • Type of Contract • Design • Construction • Both • Transfer Risk • Substantial /Final Completion • Schedule • Monitoring • Approval as to Form

  38. Contractual Documents • Construction Owners Association of America • www.coaa.org • The American Institute of Architects • www.aia.org • The Associated General Contractors of America • www.agc.org • The American Council of Engineering Companies • www.acec.org

  39. Q & A

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