Delivering Successful Facility Projects It Starts and Ends with You!

1. Delivering Successful Facility Projects It Starts and Ends with You! Al Erdman - Central Texas College

2. Standard Disclaimers • This presentation is not intended to be a complete illustration of the design and construction process. • Rules and law governing many of the processes and procedures that will be discussed are governed under HB 628 (codified as Chapter 2267 of the Texas Government Code effective 9-1-11), Chapter 2254 of the Texas Government Code, and TX Education Code Chapter 44. Please refer to these for more detail or clarification.

3. The Process • Assembling the committee • Assembling the team • Designing the project • Bidding the project • Construction • Post construction/warranty

4. Assembling the Committee • Someone has to take the lead –as the CFO you’re probably going to have to live with it • Multi-functional representation • Facilities • IT • Faculty • Staff & administrators • Other occupant representative(s) • Set ground rules for communication • Compile, distribute and review minutes! • Establish what success looks like • Budget, function, schedule, appearance etc.

5. Assembling the Team • Team is a critical concept • College committee • Consultants hired by college (2 step) • Architects • Materials testing • Roofing consultant • LEED consultant • Commissioning agent • Owner’s rep PM firm (optional) • Establish project delivery method early on – typically: • Construction Manager at Risk (CMAR) –early addition • Design-Build – early addition • Competitive (low) bid – late addition • Competitive Sealed Proposals –late addition

6. CMAR, Low Bid or CSP Relationship Provide consultation during design phase and serve as general contractor during construction phase.

7. Key Concepts in Hiring AEs & CMs • Hire for chemistry not for reputation • Don’t fall for bait-and-switch • Ask for project list for last xx years • Everything is negotiable • Use your own contracts (modify AIA versions) • Price is only one factor – 40% guide • Watch out for lowball pricing • Listening is an overlooked skill • You are the boss!

8. Setting Direction is Important • Reconfirm what success looks like • Reconfirm rules • Establish preliminary schedule(s) • Establish budget • Construction • AE & consultant fees • Other (furniture & equipment, etc.) • Contingencies – 10 to 20% • Design • Construction • Owner

9. Poor Average Good Early Program Definition Benefits 37% • Well-defined projects cost 17% less than the average • Poorly defined projects cost 20% more. • Edward Merrill Independent Project Analysis Corp. Reston, VA

10. Why are Contingencies Important?

11. Designing the Project • Design phases • Schematic Design (SD) • Design Development (DD) • Construction Documents (CD) • Team MUST review plans & specs at end of each phase • Ensure that AE assembles and answers comments from team before progressing to next design phase • Do cost estimates at end of each phase to keep project within budget • Owner must approve use of contingency!

12. Written requirements Why is Early Review Important? Design drawings The cost of changing something increases by a factor of about 10 each time the project changes its state. Construction drawings Construction Occupancy

13. Bidding the Project • Make sure plans & specs are complete (include draft contract if possible) • Reach out to potential bidders • Hold a pre bid conference – issue addenda • Give bidders sufficient time to bid • Evaluate using published criteria • Select the bidder that represents “best value” • If CMAR, make rankings public within 7 days • Contract and issue Notice to Proceed (NTP)

14. Let’s Get Building! • Ensure that • Contract is signed • P & P bonds and insurance are in place • Notice to Proceed is issued • Coordinate pre construction meeting • Team should attend along with key sub contractors • Reconfirm definition(s) of success for the project • Discuss college “rules” • Review project schedule • Review communication requirements • Emphasize safety • Contractor is responsible –site “belongs” to the CM

15. Construction Progress/Administration • Weekly meetings • Discuss major project issues • Schedule • Requests For Information (RFIs) • Change Orders (COs) • Safety – close calls and accidents • Attendance by critical sub consultants & contractors • Ensure that AE takes and distributes minutes! • Weekly project walks by Team • Team approach

16. Substantial Completion • Substantial completion – defined by the AIA • § A.9.8.1 Substantial Completion is the stage in the progress of the Work when the Work or designated portion thereof is sufficiently complete in accordance with the Contract Documents so that the Owner can occupy or use the Work or a portion thereof for its intended use. • Architect walks project (with Team), certifies, and develops/attaches punch list • Ownership of the project transfers to college (along with insurability!) • Generally owner occupies at Substantial • Warranty commences

17. Final Completion • Final Completion • CM notifies AE project is complete in writing • AE walks project & certifies completion of punch list • CM submits final pay application to AE along with • Certifies that all bills have been paid from prior pmts. • Conditional lien waiver • Attestation that insurance will be kept in place through warranty period with cancellation notification • Consent of surety • Other documents required by contract • AE submits final pay application to owner

18. Warranty • Commences at substantial completion and usually runs for a year • Make sure warranty list is compiled by CM, updated, and reviewed monthly by Team • Conduct six and eleven month walks! • Look for reoccurring problems • If we’ve paid out the AE and CM how do we know they will work • Reputation and future work is the driver • Owner can also require a maintenance bond in contract

19. So What Have we Learned? • Assembling the right college team is critical • Define success early on • Hire an architect that will listen to you • The project delivery method should be decided at the beginning the project • Contracts govern everything • Stay connected during construction • Don’t waffle on substantial completion • Drive the project through to final completion • Have fun!

20. Questions!