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Choosing the firm and process to ensure successful public works projects

Making the call:. Choosing the firm and process to ensure successful public works projects. ACEC Kansas Kansas Contractors Association APWA Kansas. Presentation Developed By:. Chip Corcoran, Olsson Associates, ACEC Patricia Gentrup, Olsson Associates, ACEC

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Choosing the firm and process to ensure successful public works projects

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  1. Making the call: Choosing the firm and process to ensure successful public works projects ACEC Kansas Kansas Contractors Association APWA Kansas

  2. Presentation Developed By: • Chip Corcoran, Olsson Associates, ACEC • Patricia Gentrup, Olsson Associates, ACEC • Clarence Munsch, George Butler Associates, ACEC • Mac Andrew, Director of Infrastructure and Transportation, Johnson County, KS, APWA • John Walters, Walters Morgan, KCA • Bill Brungardt, Brungardt Honomichl, ACEC KS • Alan Farrington, Sherwood Construction, KCA • Scott Erickson, Smoky Hill Construction, KCA • Scott Heidner, Executive Director, ACEC

  3. Project Delivery Systems University of Kansas ACEC/KCA Class for MPA Program March 6, 2006

  4. Definition • A project delivery system is a comprehensive process by which a project is designed and constructed, it includes: • Definition of scope and requirements • Contractual requirements, obligations, and responsibilities of the parties • Interrelationships among the participants • Mechanisms for managing time, cost, safety and quality • Forms of agreement and documentation of activity • Actual execution of design and construction • Closeout of the project and start-up of the new facility

  5. Types of Project Delivery Systems • Traditional (Design/Bid/Build) • Fixed Price (Unit Price or Lump Sum) • Cost Plus • Design/Build (D/B) • Multiple variations, including operating, maintaining, owning and turn-over • Construction Manager at Risk • Variations include varying degrees of management responsibilities

  6. TraditionalDesign/Bid/Build • Contract documents are fully developed prior to construction • Competitive bidding – no choice, the low bid wins • Potential for adversarial relationships • No “Guaranteed Maximum Price”

  7. Design/Build • Performs both design and construction under one contract between an owner and design build team • Owner has the ability to hand pick the design-build team • Single point accountability • Conducive to “fast track” construction • Reduces pre-construction services (i.e. cost control, value engineering, sub contractor control, constructability review)

  8. Design/Build • Guaranteed Cost • Reduces owner involvement beyond program definition • Shifts project risk from owner to D/B team

  9. Traditional Owner bears risk of constructability and design Designers not accountable for construction cost Owner is responsible for interfaces Owner is responsible for QA/QC Design/Build D/B bears risk of constructability and design Designers are accountable for cost D/B is responsible for interfaces D/B is responsible for QA/QC Project Risks

  10. Construction Manager at Risk • Where the Construction Manager is also the constructor • Allows the Owner, Construction Manager and Architect/Engineer to work as a unified team. • Based upon an Owner’s agreement with a qualified construction firm to provide • Leadership • Administration • Management throughout a project, within a defined scope of services.

  11. Construction Manager at Risk • Services may include: • Advising on all aspects of planning • Managing the design and construction phases • Establishing quality, cost and time parameters • Providing engineering suggestions & costs • Preparing conceptual and detailed estimates • Preparing bid packages • Preparing overall project schedule and updates • Guaranteeing the construction cost • Serving as the General Contractor • Qualification based selection process • Guaranteed maximum price option • Conducive to fast track • Reduces Pre-construction services

  12. Project Delivery System Box • Usual approach - designer and contractor • Value added delivery system • Financing • Material and equipment suppliers • Community relations experts • Others

  13. Poor Good Best If… Scope, quality, and O&M criteria cannot be finalized early in the process: DB CMR DBB

  14. Poor Good Best If the Owner is… Concerned that regulatory and other issues may change as the project evolves DB DBB - CMR

  15. Poor Good Best If the Owner must… Have review and approval authority over every step of the process DB DBB - CMR

  16. Poor Good Best If the Owner must… Have review and approval authority over every step of the process DB CMR DBB

  17. Poor Good Best If the Owner will… Manage the elements of the project with independent departments. DB CMR DBB

  18. Poor Good Best If the Owner’s goal is… To achieve the lowest total cost project. CMR - DBB DB

  19. Poor Good Best If the Owner’s goal is… To establish the total cost prior to significant funds being expended DBB CMR DB

  20. Poor Good Best If the Owner’s goal is… That a single entity should be responsible for the entire project DBB CMR DB

  21. Poor Good Best If the Owner is… Not well suited to accept the project risk DBB CMR DB

  22. Poor Good Best If the Owner’s goal is… To maximize the potential for innovative solutions DBB CMR DB

  23. Poor Good Best If the Owner does not… Have the resources to plan and manage the project DBB CMR DB

  24. Poor Good Best If the Owner’s goal is… To involve the operations staff throughout the planning, design, and construction of the project DBB CMR DB

  25. Summary • Illustrated different types of Project Delivery Systems • The strengths and weaknesses of each • Methods to select a Project Delivery System that fits your project needs

  26. Outline for Merits of QBS in Choosing Design Professionals

  27. Procurement Process • Qualifications based selection • Selection based on low bid • Selection based on qualifications and low bid

  28. History and Status of QBS • In use since the Civil War • Public law 95-582 (Brooks Bill) required in federal procurement • Public law 100-464 reaffirms the Brooks Bill • Kansas statute 75-5801 required in state procurement • Missouri law RSMo Section 8.285 – 8.291 requires QBS

  29. History and Status of QBS(continued) • Both the American Bar Association and the American Public Works Association have policies encouraging the use of QBS • The majority of U.S. state require QBS in state procurement of design professionals • Cities and Counties are free to use selection process of their choice, unless state or federal dollars are being used

  30. What Steps are Involved in QBS? • Owner has project and drafts basic scope of services required • Owner sends out Request for Proposals (RFP) or Request for Qualifications (RFQ) to design professionals • Responses are reviewed and the top three firms are interviewed • Firms are ranked after interviews • Negotiations begin with top-ranked firm • A full scope of services is produced by the owner and design firm • A reasonable fee is negotiated, appropriate for the complete scope of services • If negotiations fail in either capacity, the Owner may terminate negotiations with the top-ranked firm and begin negotiations with the second highest-ranked firm

  31. Why Use QBS? • It’s all about the scope • RFPs and RFQs almost never contain enough detail • Cannot offer an accurate bid • Unforeseen difficulties • RFQ/RFP’s almost never spell out issues such as right-of-way, public involvement, historical preservation, landmark, and environmental issues • Ingenuity and skill of design professionals are the best assets to address project complexities • Including all life-cycle costs of a project, design work is about a very low percentage of a projects budget • A mistake during the design phase could result in enormous additional costs

  32. Factors in Selecting a Firm • Expertise and training of design professionals • Experience with specific types of projects • Owner’s experience with firms on previous projects • Current workload of firms • Comfort in communication with firms

  33. Other Procurement ProcessesPros and Cons… Asking for cost and taking the low bid • The fastest selection method • Often the cheapest initial cost • Yields the poorest quality work • Many design firms will refuse to participate • Often results in more change orders as design progresses Asking for and weighting both cost and qualifications • Allows owner flexibility • Weight of different party (price, qualifications, etc.) can be tailored Once price is a component, it tends to become the component, especially in public sector projects

  34. Problems using QBS • Elected Officials • Term in office is shorter than city staff • Savings today is more important than long-term value • Public • Difficult to explain why low bids should not be requested and used as decision maker • Little experience with design matters

  35. Project Management Presented by: Joe Johnson, P.E. - Leawood Public Works Director, APWA KC Chapter President Chip Corcoran - Olsson Associates

  36. Project Management • Managing a project is like sailing a ship • You must know where you are, how far you have left to go, and what direction you are headed • To not know this, will result in failure to make your port • Project managers must actively steer their ship to port

  37. Why Project Management? • To meet the owner’s goals and objectives of the project • To meet the project schedule • To meet the project budget • To provide for quality assurance/control • To maximize utilization of scarce resources • To maximize the profit potential of a project (private sector) • To obtain future work based upon project management performance (private sector)

  38. Who are Project Managers? • Any individual charged with championing a project and carrying responsibility for achieving some or all of a project’s goals and objectives. • Project Manager’s may include one or more of the following: • Owner (Public or Private) • Owner’s Representative (in-house or contracted) • Professional Consultant • Sub Consultants • Contractors • Sub Contractors • Material Suppliers • Utility Companies • Attorneys Note: Large projects may include deputy or sub-task project managers

  39. Seven Basic Keys to Successful Management • Know what the owner understands • Plan your work, work your plan • Establish project team buy-in on owner expectations • Know where you are and where you are going • Always have a Plan B • Lead, don’t manage • Develop a relationship and maintain communication with the owner

  40. Project Management Tools • Project Contact List • Work Break Down • Budgeting by Task • Scheduling By Task • Critical Path Analysis

  41. Sample Project Contact List

  42. Sample GBA Work Break Down Structure

  43. Sample GBA Work Break Down Structure

  44. Sample GBA Work Break Down Structure

  45. Sample GBA Work Break Down Structure

  46. Sample GBA Work Break Down Structure

  47. Sample MS Project Schedule

  48. Project Management Reporting • The status of a project should be evaluated on a recurring interval consistent with the overall project schedule. Project reports should include the following: • Project Manager • Task Manager(s) • Budgeted Cost – by task • Actual Cost – by task • Measured Progress – by task • Planned Progress – by task • Forecast CostScope Definition and Variance • Cost and Schedule Variances

  49. Project Management Role Play

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