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NMPPA NMPC Class

NMPPA NMPC Class. PUBLIC CONSTRUCTION CONTRACTING IN NM Las Cruces Southern Conference August 21, 2008. NMPPA New Mexico Procurement Certification Class. Presented by:. Dotty McKinney, CPPB PSFA Contracts Administrator. PLANNING DESIGN CONSTRUCTION. PLANNING.

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NMPPA NMPC Class

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  1. NMPPA NMPC Class PUBLIC CONSTRUCTION CONTRACTING IN NM Las Cruces Southern Conference August 21, 2008

  2. NMPPA New Mexico Procurement CertificationClass Presented by: Dotty McKinney, CPPB PSFA Contracts Administrator

  3. PLANNING DESIGN CONSTRUCTION

  4. PLANNING

  5. What makes a successful Project? Identify and engage all constituents in the construction activities - Planning - Execution and logistics of the construction project - Post construction occupancy

  6. What makes a successful Project? Public Sector Owners In planning a Public Works Project, it is wiser to “include” any and all constituents than to “exclude” them in the process. Internal Constituents External Constituents

  7. What makes a successful Project? Internal Constituents User Groups, especially - Building Managers - Maintenance/Operations - Security/Safety/Environmental - Information Technology - Parking/Logistics/Communications - Governing Board

  8. What makes a successful Project? External Constituents Neighborhood Associations Advocacy Groups Regional Planning Authorities Local Planning Authorities Compliance Authorities

  9. What makes a successful Project? A successful project minimizes the time, once planning and funding are in place, between the award and the project completion without sacrificing quality, compliance with laws and regulations, and being accountable to policymakers and the public. Timely WITH Quality, Compliance & Accountability

  10. “Keys” to a successful Project Good management - ●of the breadth of interests to be serviced ●of the time required to serve them Understanding you can’t please everyone – ●but listening to all sides of an issue even though the ●ultimate answer may be “no” ●using the best judgment possible ●being prepared to defend the logic behind decisions made ●informing rather than telling, being rational ●making it a “win-win” for everyone involved

  11. “Barriers” to a successful Project • There are a lot of unknowns in construction and success sometimes requires quick decisions to be made that can have costly and time consuming consequences. • Legal barriers • Physical barriers • Environmental barriers • Funding barriers TRANSLATION – “LACK OF PLANNING”

  12. CONSTRUCTION DOLLAR$ Project Funding How much funding is available When funding is available Schedule to expend funding Funding Sources From other public agencies Local or State appropriations Federal Or combination of the above

  13. CONSTRUCTION DOLLAR$ When Acquiring Funding “Players must be able to relate the request in a general, broad-brush-stroke of information involving the building and associated costs as well as understanding of timing and logistics of the project – simply and informatively”. The application for funding may take place long before design professional services are engaged. There are numerous sources for identifying “cost per SF” for various building types such as “Means for Construction Cost Estimating Guide”, and other agencies/entities having recently built similar facilities.

  14. CONSTRUCTION DOLLAR$ Funding Sources – Important Things to Know!!! Requirements that accompany funding - Appropriation language What funds may be spent on Time lines for expenditures Type of building and standards that apply Size of rooms, qualities of amenities Types of materials, Green/Leed - Federal & NM Davis Bacon wage rates

  15. CONSTRUCTION DOLLAR$ Once Funding is in place - ● Hire a design professional qualified to design the project based on the scope of work and the budget. • Assign staff to the Project that are knowledgeable in procurement methods and state requirements governing public works projects, and construction. • Ensure that both the design professional and construction contracts are followed and enforced – more commonly known as “Contract Administration”.

  16. DESIGN

  17. The Design Professional • NM Statutes you must know! 13-1-66.1 “Local public works project” means a project of a local public body which uses architectural or engineering services requiring professional services costing fifty thousand dollars ($50,000) or more, or landscape architectural and surveying services requiring professional services costing ten thousanddollars ($10,000) or more, excluding applicable state and local gross receipts taxes.

  18. The Design Professional • Statute 13-1-76 NMSA 1978 Definition; professional services. “Professional services” means the services of architects, archeologists, engineers, surveyors, landscape architects, medical arts practitioners, scientists, management and systems analysts, certified public accountants, registered public accountants, lawyers, psychologists, planners, researchers, construction managers and other persons or businesses providing similar professional services, which may be designated as such by a determination issued by the state purchasing agent or a central purchasing office.

  19. The Design Professional • The statute for “professional services” does include architects. However, any services required of an engineer, landscape architect, surveyor, or construction manager means that a letter of determination justifying the District’s need for these or other types of services would become the first document in the procurement file.

  20. The Design Professional • The professional services for architects in definition 13-1-76 is appropriate for research reports, studies, evaluations, etc. that do not require “formal bidding documents including plans, specifications , professional liability insurance to cover any errors or omissions, that would require a standard Design Professional Agreement.

  21. The Design Professional • Statute 13-1-119 NMSA 1978. Competitive sealed qualifications-based proposals; architects; engineers; landscape architects; surveyors; additional requirements. • “In addition to compliance with the requirements of 13-1-112 through 13-1-114 and 13-1-116 through 13-1-118 NMSA 1978, a state agency or local public body, when procuring the services of architects, landscape architects, engineers or surveyors for state public works projects or local public works projects, shall comply with Section 13-1-120 through 13-1-124 NMSA 1978.

  22. The Design Professional • Qualifications based proposals have very definite criteria and rules for evaluation that are provided in the statutes referenced in Statute 13-1-119 NMSA 1978. These statutes define the method and procedures required to procure these services. • Cost is not a factor. The professional’s abilities, resources, technical competence, past record of performance, proximity to the project site, and volume of work previously or currently being performed for the entity are taken into consideration when awarding a contract.

  23. The Design Professional PUBLIC WORKS PROJECTS • Public Works Projects require RFP Selection Process for Design Professionals IF Design fees will be $50,000 or greater for Architects and Engineers, and $10,000 for Landscape Architects, and Surveyors

  24. The Design Professional QUESTION: What about Design Professional contracts that are less than $50,000 in fees and reimbursables, if applicable, but exclusive of GRT? Do I need to go out to RFP? ANSWER: No. Because the Design Professional fees and any applicable reimbursables, exclusive of GRT is less than $50,000, it is not a public works project and therefore the RFP process of procurement is not required.

  25. The Design Professional • Professional Technical Advisory Board • NMSA 13-117-2 – Required by Statute since 1979. • Purpose: To provide professional technical advisory services to local public bodies in the development of Scope of Work, RFP, ad the selection of professional services of architects, engineers, landscape architects and surveyor through the use of the “qualifications based selection process”.

  26. The Design Professional • In summary, qualified professional services have their own set of procurement guidelines and evaluation process that is required by the Procurement Code, in addition to the requirements for request for proposals. The professional services acquired to produce drawings, specifications, maps, etc., carry a certain liability to both the procuring entity and the professional, and require that the professional be properly licensed so that drawings, specifications, etc. meet all of the local and/or national laws, codes, local requirements, etc. necessary to provide a safe, complete environment.

  27. The Design Professional • Again, architects, engineers, landscape architects and surveyors can provide professional services, those that require evaluations, reports, investigations, etc. And they can provided qualified professional services that require drawings, specifications, maps., as well as the entity providing certificates of insurance in the event gross errors or omissions occur.

  28. The Design Professional PROJECT BUDGET MACC DESIGN FEES

  29. The Design Professional √It is important to understand the Project Budget (overall funding and funding sources) Maximum Allowable Construction Cost, and appropriate design fees for execution of your Project. √The Design Professional’s fees are based on the Maximum Allowable Construction Cost, not the Budget. √ The Budget includes the MACC (cost of construction) site work, design fees, FF&E, some consultants, and if appropriate, CM fees, a contingency amount for errors & omissions, administrative fee allowances and all NMGRT.

  30. Project Budget Probable Cost Estimate • Construction costs (bldg type, materials, special considerations) Professional Services • Design fees • Other design services (Landscaping, Interior Design) Indirect Costs • Owner Consultants • Testing (surveys, geo-tech, concrete & structural, TAB, Hazardous Material) • Legal Ad/Contract Document Printing Costs • Builders’ Risk Insurance • Commissioning Services • FF&E • Demolition

  31. MACC “Maximum Allowable Construction Cost” means the amount that is set by the Owner and represents the total sum available for the Cost of the Work, the CMAR Fee, and General Conditions, excluding gross receipts tax, but may include furnishings, fixtures and equipment. MACC shall not include professional fees, testing fees, Owner’s project contingency funds, acquisition costs or other soft costs.

  32. Design Fees 13-1- 124 NMSA 1978Architect rate schedule. The secretary shall adopt by regulation an architect rate schedule which shall set the highest permissible rates for each building-type group, which shall be defined in the regulations. The rate schedule shall be in effect upon the approval of the state board of finance and compliance with the State Rules Act and shall apply to all contracts between a state agency and an architect which are executed after the effective date of the architect rate schedule.”

  33. Design Fees are based on a percentage of the MACC, taking into consideration the complexity of the Project. Typically, the greater the MACC for a building type, the lesser the percent fee. EXAMPLE: MACC = $1,000,000 DESIGN FEE% = 6.0% FEES (not incl. GRT) += $60,000

  34. The Design Professional RFP STEPS • Committee & Duties • Legal Notice • Pre-Proposal Conference • Receipt of Proposals • Evaluations/Short List Ranking • Notices/Interviews • Award • Contract negotiations

  35. The Design Professional The Selection Process – What you need to know! Do not rush the process Do ensure proposed schedules are realistic Do not make your decision on a “design” that you like, it may not fit your project Do consider the “design team” and their abilities and their availability to manage your project

  36. The Design Professional Negotiating a Contract √Complexity of the Project and Budget dictate the fees that can be charged by the DP √ Remodels, Renovations and Additions may require additional work and coordination, and may warrant an additional ½ to 1% in fees √Additional costs may be required for difficult site conditions

  37. The Design Professional √Landscaping, interior design, etc. may are specialty or “additional services” as well that warrant extra fees. √Although fees are negotiable, the rates set forth by the State are fair and reasonable. √Always require professional liability insurance of the design professional for design services.

  38. The Design Professional BUZZ WORD PROJECT DELIVERY METHODS When you interview the design professionals, you may want to explore their knowledge and experience in working with different methods of construction contracting such as -

  39. Project Delivery Methods PROCUREMENT OPTIONS • DBB Design/Bid/Build – 13-1-102 • DB Design/Build – 13-1-119.1 • RFP Request for Proposal - 13-1-111 for Construction & Maintenance Services • CMS Construction Management Services – Not at Risk 13-1-40.1 • CMAREducational Facility Construction Manager AT RISK 13-1-124.1 (HB303)

  40. Project Delivery DELIVERY METHODS • PER THE PROCUREMENT CODE • DEFINITIONS ARE KEY • SOME DELIVERY METHODS HAVE RULES (REGULATIONS) THAT DESCRIBE HOW TO PROCURE IN DETAIL (Available on SPD website at www.state.nm/spd)

  41. Which Method To Use? What to consider when making your decision • STAFF KNOWLEDGE of different methods available • UNDERSTANDING various project delivery methods • SELECTION of appropriate method • IMPLEMENTATION of chosen project delivery method

  42. Which Method To Use? * What is allowed by law * Who on your staff is available * When is the Project to be ready Other factors - What Benefits (not Obstacles) are evident in the Project circumstances Which Method? The one that fits BEST!

  43. Fast-Tracking Process Planning Design Bid Construction Occupancy The Four Phases(every project goes through) NEED Recognized Traditional Linear Process Planning Design Bid Construction Occupancy

  44. DESIGN / BID / BUILD Low Bid

  45. DBB - Design / Bid / Build LOW BID • Traditional method of procurement • Owner selects designer to design building • Contract awarded to Lowest Responsible Bidder • Owner holds Design/Construction Contracts • Subcontracts held by General Contractor

  46. DBB - Design / Bid / Build LOW BID Considerations: √ Separate contracts for design & construction √ Final selection based 100% on total cost

  47. DBB - Design / Bid / Build LOW BID PROS: *Process intends to stimulate price competition *Process understood by owners & public *Process has established legal & procedural guidelines *Fairness of the process allows qualified contractors to compete on an equal basis *Owner has an expectation of finished product prior to construction based upon design & price

  48. DBB - Design / Bid / Build LOW BID CONS: √ Process may require considerable time √ No guarantee that bid won’t exceed budget leading to delays to re-bidding or canceling project √ Adversarial relationships can develop Owner – wants best possible building at lowest cost Architect – wants to satisfy Owner & meet design elements Contractor – must complete job within time & price √ Differences in interpretation of contracts √ Differences may result in claims/delays to be resolved

  49. DESIGN / BUILD Request for Proposal Negotiated Price

  50. DB – Design Build • 13-1-119.1 NMSA 1978 Definition: “means a procurement process by which a using agency contracts with one firm who has responsibility for the design, construction and delivery of a project under a single contract with the agency”. 1. Procured using the RFP method Qualifications based Evaluation criteria same as DP 2. Regulations – NMAC 1.5.7 Guides you step-by-step

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