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Construction Delivery & Management Methods FOR AIRPORTS By Glenn M. Jardine, PE What’s Best for Your Project? It Depends… Success Criteria On/Under Budget Conforms to Expectations On Schedule What are Additional Goals? Large Number of Projects Quick Delivery

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Construction Delivery & Management Methods FOR AIRPORTS

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Construction Delivery & Management Methods

FOR AIRPORTS

By Glenn M. Jardine, PE


What’s Best for Your Project?

It Depends…

  • Success Criteria

    • On/Under Budget

    • Conforms to Expectations

    • On Schedule

      What are Additional Goals?

  • Large Number of Projects

  • Quick Delivery

  • Local/Minority Firm Participation

  • Risk Avoidance

  • Phasing and Security Concerns

  • Staff and Community Involvement


Evaluate:

  • How Much Risk are You Willing to Assume

  • Schedule and Budget Constraints

  • How Much Design Input by Staff

  • How Much Local Participation

  • How Much Minority Participation

  • Level of Quality Desired

  • How Much Flexibility

  • Ability to Tolerate Change Orders


Key Factors to the Decision:

  • Well Defined Scope

  • Shared Understanding

  • Legal Authority to use

  • Adequate Staffing & Knowledge

  • Established Budget

  • Established Completion Date

  • Availability of Contractors Providing Service

  • Multiple Projects

  • Cooperative A/E and Contractor Community

  • Need to Spread Work Around


Contract Strategy

CONTRACT STRATEGY

ONE

MANY

Turnkey

Design/

Build

Design/

Bid/Build

Design/

Pre-Order/Bid/

Build

Separate

Prime Contracts

Separate

Trade Contracts

CONTRACT TYPE

AGENCY

VENDOR

Negotiated

Fixed Price

Escalation

Clause

Bid Fixed

Price

Quantity

Survey

Target

Cost Plus

G.M.P.

OWNER’S RISK

GREATEST

LEAST

CONTRACTOR’S RISK

GREATEST

LEAST

OWNER’S CONTROL

LEAST

GREATEST

CONTRACTOR’S CONTROL

LEAST

GREATEST


Construction Method

CONSTRUCTIONMANAGEMENT

DESIGN - BID - BUILD

PM/CM

AGENCY

DESIGN - BUILD


Speed of Delivery

CONSTRUCTIONMANAGEMENT

DESIGN - BID - BUILD

FASTER

PM/CM

AGENCY

DESIGN - BUILD


Initial Cost Certainty

CONSTRUCTIONMANAGEMENT

DESIGN - BID - BUILD

HIGHER

PM/CM

AGENCY

DESIGN - BUILD


Owner’s Risk

CONSTRUCTIONMANAGEMENT

DESIGN - BID - BUILD

HIGHER

PM/CM

AGENCY

DESIGN - BUILD


Construction Method

CONSTRUCTIONMANAGEMENT

DESIGN - BID - BUILD

PM/CM

AGENCY

DESIGN - BUILD


select a/e

select cm

early bids

select a/e

GMP (CCAP)

CCAP

GMP (CCAP)

CCAP

DESIGN – BID – BUILD

select a/e

design

bid/award

build

DESIGN – BUILD

design

select d/b

design

build

CM AT RISK

design

build

PM/CM AGENCY

select a/e

design

select cm

early bids

build


Design – Bid – Build


Design – Bid – Build


Owner’s Responsibility

Security

Costs

Env

Prog

Legal

Finance

Soils

Site

TSA

Baggage

MBE

Tech

Airlines

Tenants


Owner’s Responsibility

Security

Costs

Env

Prog

Legal

Traditional

Who’s resp for errors

Finance

Soils

Site

TSA

Baggage

MBE

Tech

Airlines

Tenants

SUBCONTRACTORS

SUBCONSULTANTS


Design – Bid – Build

Advantages

  • Widely Understood and Legally Accepted Method

  • Owner’s Control/input Over Project

  • Completed Set of Documents When Bid

  • Competitive Pricing

  • Single Point of Contact for Warranty Issues

    Disadvantages

  • Don’t Know Price Until Bid Day

  • Additional Design Time

  • Owner Liable for Design Errors & Omissions

  • Can Create Adversarial Relationships

  • No Contractor Input During Design

  • Low Bidder Not Necessarily Most Qualified


Why Design – Bid – Build?

Works Best With:

  • Relatively Little Staff Experience Required

  • Cooperative A/E and Contractor Community

  • Restrictions on other Delivery Methods

  • Adequate Staff to Handle Multiple Projects

  • Time Not Restrictive

    OK if:

  • Willing to Accept Change Orders


Why Design – Bid – Build?

Does Not Work Well If:

  • You Don’t Want Claims

  • You Want Most Qualified Contractors

  • You Need Contractor Input During Design

  • Cooperative Attitude Does Not Exist

  • Mandated Minority Involvement


Construction Method

CONSTRUCTIONMANAGEMENT

DESIGN - BID - BUILD

PM/CM

AGENCY

DESIGN - BUILD


select a/e

select cm

early bids

select a/e

GMP (CCAP)

CCAP

GMP (CCAP)

CCAP

DESIGN – BID – BUILD

select a/e

design

bid/award

build

DESIGN – BUILD

design

select d/b

design

build

CM AT RISK

design

build

PM/CM AGENCY

select a/e

design

select cm

early bids

build


Design – Build


Design – Build - Two Phase (1 Project)

Security

Costs

Well Defined Scope

Single Point of Resp

Informed staff

Env

Prog

Legal

Finance

Soils

Site

TSA

Baggage

MBE

Tech

Tenants

Airlines

SUBCONSULTANTS

SUBCONTRACTORS


Design – Build

Advantages

  • Single Responsible Entity for Design & Construction

  • Minimizes Design – Construction Risk

  • Potentially Less Time / Earlier Knowledge of Cost

  • Reduction in Disputes

  • Potential for Construction Methods Integrated into Design – Creative Solutions Through Collaboration


Design – Build

Disadvantages

  • Owner Must Carefully Define Program (Bridging Documents)

  • Contractor Control May Impact Quality Level

  • Changes Due to Late Program Alterations

  • Legal Issues with Use

  • Selection Process Can Delay Start

  • Potential Loss of Control During Design Process

  • Changes Can Happen Without Owner Involvement Which Owner May Not Desire

  • No Checks/Balances Between Architect/Contractor (Unless Separate A/E Engaged for Bridging and Oversight)


Evaluation

Works Best With:

  • Well-Defined Scope

  • Specifically Constructed D/B Contract

  • You Want Little Risk (all responsibility with Design/Builder)

  • You have No Legal Restrictions on Use


Evaluation

Does Not Work Well If:

  • You Want Input During Design

  • You want Local/Minority Participation (Sometimes)

  • There is Not a Shared Understanding

  • There is Not a Well-Defined Scope


Construction Method

CONSTRUCTIONMANAGEMENT

DESIGN - BID - BUILD

PM/CM

AGENCY

DESIGN - BUILD


select a/e

select cm

early bids

select a/e

GMP (CCAP)

CCAP

GMP (CCAP)

CCAP

DESIGN – BID – BUILD

select a/e

design

bid/award

build

DESIGN – BUILD

design

select d/b

design

build

CM AT RISK

design

build

PM/CM AGENCY

select a/e

design

select cm

early bids

build


Construction Management at Risk

Consultants

Suppliers


Construction Management at Risk

Security

Costs

Env

Prog

Legal

Finance

Soils

Site

Tenants

Baggage

MBE

Tech

Airlines

SUBCONTRACTORS

SUBCONSULTANTS


Construction Management at Risk

Advantages

  • Qualifications Based Selection (QBS)

  • Ability to Fast Track construction

  • One Point of Responsibility for Project Delivery

  • Advanced Input on Constructability and Costs

  • Budgeting Control with CM’s Input

  • Opportunities for Minority Participation Enhanced

    Disadvantages

  • CM Acting as Contractor

  • Importance of Selecting Right CM – Must be Good at Pre-con and Build

  • No Contract Between AE and CM

  • Changes – from Owner’s Contingency or CM Contingency?


Evaluation

Does Not Work Well If:

  • You Don’t Structure your Contracts Well as a “Family” of Contracts

  • You Don’t Know up Front Difference Between “Cost of Work” and Reimbursables and Fee

  • You Don’t Understand the Contractor’s Pricing Intimately

  • AE is Not Familiar with this Approach


Construction Method

CONSTRUCTIONMANAGEMENT

DESIGN - BID - BUILD

PM/CM

AGENCY

DESIGN - BUILD


select a/e

select cm

early bids

select a/e

GMP (CCAP)

CCAP

GMP (CCAP)

CCAP

DESIGN – BID – BUILD

select a/e

design

bid/award

build

DESIGN – BUILD

design

select d/b

design

build

CM AT RISK

design

build

PM/CM AGENCY

select a/e

design

select cm

early bids

build


PM/CM Agency


PM/CM Agency

SUBCONSULTANTS

TRADE or PACKAGE

CONTRACTORS


PM (Multiple Projects)

Security

Costs

Env

Legal

Finance

Soils

Site

Tenants

Baggage

Prog

MBE

Tech

Airlines

SUBCONTRACTORS

SUBCONSULTANTS


PM/CM Agency

Advantages

  • Ability to Use Multiple Delivery Methods

  • Ability to Fast Track Construction

  • Competitive Pricing on Smaller Packages

  • Minority Participation can be Encouraged if Bidding Done Properly

  • Ability to Budget for the “Total Costs” of Building Program

  • Facilitator

  • All Savings to Owner


PM/CM Agency

Disadvantages

  • Conflict from AEs and GCs who Feel the PM is Interfering with Their Relationship with Owner

  • Upfront Costs may Appear High

  • Misunderstanding of Roles/Responsibilities


Evaluation

Works Best When:

  • Local Participation is Important

  • Required Minority Participation

  • Need for Input During Design from Contractor

  • Shared Understanding of Project

  • Need to Extensively Check as Built Conditions

  • Cost Containment is Important

    OK if:

  • Staffing is Adequate to Handle Paperwork/Changes

  • You Need Design Input

  • Schedule Needs to be Accelerated


Evaluation

Does Not Work Well If:

  • You Don’t Want to Deal with Change Orders (risk)

  • Your Architect Does Not Understand Multiple Bid Packaging (May Add Fee)

  • You Want Guaranteed Cost

  • You Don’t Understand Ways Fees are Calculated


Conclusion

  • There is No “Right” or “Wrong” Way – All Methods have their Pros and Cons

  • Understand the Difference Between “Delivery Methods” and “Management Methods”

  • Understand the Existing Owner/AE/PM/CM Structure and their Concerns

  • Risk/Control/Reward must Balance

  • Relationships Rule the Day


Construction Delivery & Management Methods

FOR AIRPORTS

By Glenn M. Jardine, PE


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