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ABC: The Keys to Success from a Contractor’s Perspective

ABC: The Keys to Success from a Contractor’s Perspective. William G. Duguay J.D. Abrams, L.P. Here is the Mandate we share:. "Change the way we build highways. We need to build them faster, have them last longer, have them be safer and at a lesser cost. Be BOLD and AUDACIOUS in your thinking."

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ABC: The Keys to Success from a Contractor’s Perspective

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  1. ABC: The Keys to Success from a Contractor’s Perspective William G. Duguay J.D. Abrams, L.P.

  2. Here is the Mandate we share: • "Change the way we build highways. We need to build them faster, have them last longer, have them be safer and at a lesser cost. Be BOLD and AUDACIOUS in your thinking." • Michael P. JacksonFormer Deputy Secretary for DOT

  3. But, lots of us are Old School • How do we make what worked forever, work in a changing market

  4. Different Components • Accelerated Project Delivery or Financing • Accelerated Bridge Construction • Catastrophic Event • Embedded in a larger project • Incremental use of ABC techniques

  5. Provide the Contractor an opportunity to have a competitive edge • This can be through: • Means and methods • Available equipment • Time of year & current workload • Existing technology or availability of major supplies in the market place

  6. Efficiency defined by: • Simplicity of design and specifications • Cost/benefit in line with expectations • Aesthetics are appropriate for the location & use • Longevity & life cycle costs are met

  7. Share or Define Risk • Contractors perceived level of risk translates to dollars on bid day • May prevent interest in the project • Limit what's incidental, and what can’t be defined by specification or plans

  8. To be effective, it needs to be: • Achievable with acceptable risk • Predictable in a variety of applications • Satisfy the majority of, or at least the most important goals

  9. What’s to like about Prefab/Precast

  10. Lower risk from: • Uncertainty • Labor availability or quality • Access or site constraints • Weather

  11. Bulk of Man-hours spent in a controlled low risk environment, or subcontracted out for fixed pricing • Prefab can provide additional owner benefit if the GC is also the producer

  12. Repeatability • Multiple repetition's drives all contractors cost reporting • With multiple repetitions, cost can be improved upon over time • The fewer new operations that start on a project, the more time there is to spend refining on-going operations

  13. Specifications • Pre-cast specs are rarely ambiguous in their intent and are rarely contested • Erection or assembly of sub-components is typically well defined • Details tend to be clear cut and simple

  14. Clean simple details • Tend to: • Drive down costs • Be built to higher standards • Reduce inventories & speed replacements • Reduce overheads & distributed costs

  15. Priority projects can be profitable • Fast track projects can and should use incentive/damages clauses • Revenue can be turned quicker for the GC, and the facility put into operation sooner for the Owner • Assets may be better utilized across a company (assets that work tend to make money) • Be careful the plans and specs aren’t geared towards the GC spending an equivalent bonus amount to get it

  16. Successful really boils down to: • Developing an idea that meets your needs • Selling it for a price that, well, meets your needs • Getting it built in a time frame that meets your needs • Walking away from it at completion not wanting to change a thing because the project met your needs

  17. What Contractors don’t usually like

  18. Undue Risk or Schedule demands • Fast track needs to be reserved for when it is needed • Specs that unduly favor one party are ones that typically are faulty and are used to cover less than satisfactory plans and detailing

  19. Project Goals not effectively communicated • Can be Scope • Can be details, phasing requirements, schedule demands • If it is a new design that could be used for mass use or production pending successful testing, it needs to be communicated.

  20. “Perceived” • Contractors perception is reality on bid day. • Cost will be driven by the contractors perception of: • Undefined items of work, or method of payment • Restrictive specifications • Poorly crafted bid documents

  21. Sole Sourcing • Sole sourcing may be necessary due to approved lists from an agency, but they limit competitive advantages • If they are a necessity, develop ways for the GC to maintain an edge • Make sure the sole source will be able to meet the demands of the project prior to specification

  22. One of a kind designs • Limits re-use of • Technology • Equipment, forms, yards • Cost history • Personnel

  23. Differing perspectives on the same thing (understanding both sides)

  24. Owners Limit down time of asset Contractors Prefab minimizes hindrances to speed Weather impacts Labor availability Equipment troubles Material issues Site access issues Speed

  25. Owners Insure TQM Contractors Items built in a controlled environment are conductive to better QA/QC programs Quality

  26. Owners Seek to minimize traffic interruptions Limit road user costs Limit detours Limit public scrutiny Limit impacts to essential services Contractors Traffic closures are one of the most dangerous field operations Typically limit hours of work Frequently push work onto less productive shifts Have high costs of cancellation Traffic Disruptions

  27. Owners Include: Management/Procurement Design Construction Construction overheads Life cycle Intangibles Aesthetics Historical Research Contractors We are a business, and in the business of being profitable, by constructing for owners. Include: Manpower Equipment Home office expenses Materials (permanent & consumable) Taxes Investments Insurances Cash flow Profitability Cost

  28. Thoughts on Accelerated Project Delivery • Agreeing before, is easier than surprises after • Level playing fields invite participation • Copy other successful programs and adapt them to local conditions and regulations • Those made part of the solution beforehand, usually aren't part of the problem later

  29. Don’t let this statement define your organization

  30. You Speak Engineer, I Speak Contractor “Poor communication and collaboration is pervasive and impacts each phase of the construction process as well as everyone involved in the process… when all of the responses… were tabulated, we noted one overarching theme that stood at the top of the owner concerns, communication” • 2003 FMI/CMAA Fourth Annual Survey of Owners

  31. Solution: • Specify the different roles for participants • Assign responsibilities & authority to team participants • Define turn around times for information transfer • Ensure all participants are equal stake holders • Make sure your way of doing business matches the business you will be doing • Follow through with your objectives by critical evaluation • Understand what drives cost and minimize cost triggers

  32. Partner from Concept to Completion • Don’t let it be a catch phrase, but rather your primary tool to ensure the projects success. Properly used, it will bring all the benefits of ABC to your project.

  33. Once you have settled on an idea, embrace what drives the Price & Schedule process Repeatability Durability Reliability Adaptability Survivability of the idea Profitability

  34. Questions?

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