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Delivering School Construction Successfully. Regardless of the Delivery Method Presented by: Doug Sitton, PE, LEED AP Sitton Construction Group.

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delivering school construction successfully

Delivering School Construction Successfully

Regardless of the Delivery Method

Presented by:

Doug Sitton, PE, LEED AP

Sitton Construction Group

slide2

What if you could spend less time, reduce the overall cost, and eliminate most of the problems on your next construction project without reducing quantity or quality?

agenda
Agenda
  • Case Studies
  • Project Complexity
  • Bridging the Gaps
  • Keys to Success
  • Project Delivery
  • Additional Tips
projects that fell short
Projects That Fell Short

What did the following projects all have in common that caused them to fall short of expectations?

project 1
Project #1
  • New High School
  • Design/bid/build with CM as Advisor
  • $45 million new construction
  • 20-month original schedule
  • 12 months late
  • 14% delay claims/change orders
project 2
Project #2
  • University Student Rec Center
  • CM at Risk
  • $13 million new construction
  • 15-month original schedule
  • 12 months late
project 3
Project #3
  • University Student Center
  • Design/bid/build – multiple prime
  • $14 million addition/renovation
  • 18-month original schedule
  • 12 months late
project 4
Project #4
  • New College Classroom Building
  • Design/bid/build – multiple prime
  • $11 million new construction/addition
  • 21-month original schedule
  • 15 months late
  • 11% delay claims/change orders
what was the common cause
What Was The Common Cause?

What did each of these projects have in common?

A. Under-qualified contractor(s) or CM

B. Under-qualified architect/engineer

C. Wrong delivery method

D. Unusually complex

E. Other

the common cause
The Common Cause

What did each of these projects have in common?

The gaps that existed were not filled

Gaps are caused by complexity

successful case study 1
Successful Case Study #1
  • $60 million program
  • 2 new elementary schools
  • Various additions/renovations
  • Design/bid/build – single primes
  • Delivered in 16 months and under budget
successful case study 2
Successful Case Study #2
  • $6 million program
  • Renovations to elementary and high schools
  • D/B/B – single primes and PC
  • Saved $550,000 while adding in quantity and quality
project organizational chart
Project Organizational Chart

Thousands of exchanges of info in different languages

  • Owner
  • Funding sources
  • Design firms
  • Consultants
  • Contractors
  • Subcontractors
  • Utilities
  • Regulatory agencies
  • Manufacturers/vendors
  • Stakeholders
design construction complexity
Design/Construction Complexity

Organizations

X

People

X

Processes

X

Technical

X

External Forces

technical complexity
Technical Complexity
  • Systems:
    • Structural
    • MEP/FP
    • Security
    • Data/telecommunications
    • Furnishings and equipment
  • Codes, soils, environmental, etc.
  • Project delivery
  • LEED
  • BIM
the cost of complexity
The Cost of Complexity

U. of I. Sues over Dorm's Big Cost Overrun

Cost Overruns at Prairie State Energy

SCHOOL BOARD TO MEET ON SCHOOL COST OVERRUNS

MetroLink Files Damage Suit Against Four Companies

Big Dig Cost Explodes To $22 Billion from Original $2.6 Billion

slide20

Gaps

Why Complexity Often Wins

where are the gaps
Where Are The Gaps?

Between all project participants

  • Owner
  • Funding sources
  • Design firms
  • Consultants
  • Contractors
  • Subcontractors
  • Utilities
  • Regulatory agencies
  • Manufacturers/vendors
  • Stakeholders
what are the gaps
What are the Gaps?
  • Knowledge and experience
  • Priorities, goals and objectives
  • Roles, responsibilities and risk
  • Information and communication
  • Cultures and

personalities

  • Performance

and results

the owner s district s role
The Owner’s (District’s) Role

Build the bridges

Start with the 3 legs

The Owner is responsible for the

team of teams.

the owner s role
The Owner’s Role
  • Financing/budget/costs
  • Project delivery method
  • Requirements/program/operations/objectives
  • Property/surveys/utilities/environmental/soils
  • Existing conditions/testing
  • Schedule
  • Permits
  • Furniture/Fixtures/Equipment
  • Voice/Data/Security
  • Move management
  • Reviews/decisions
the owner s role1
The Owner’s Role
  • Procurement and performance
    • Architect/engineer
    • Consultants
    • Contractors
    • Construction manager
    • Performance contractor
  • Dispute resolution
the owner s required expertise
The Owner’s Required Expertise

Bridge building:

  • Improve all contracts
  • Manage and improve

everyone’s performance

  • Facilitate collaboration and teamwork
  • Streamline and improve the delivery of planning, design and construction
who wins when the owner has sufficient resources
Who Wins When The Owner Has Sufficient Resources?

Everyone!

Two Options: Win-Win or Lose-Lose

minimize the owner s role
Minimize the Owner’s Role?
  • Avoid paying for expertise?

Any expertise should more than pay for itself

  • Hand it off to the Architect, CM or PC?

Time, focus, qualifications, conflicts

keys to success

Keys to Success

10 Pieces to the Successful Project Puzzle

10 pieces to the project puzzle
10 Pieces to the Project Puzzle
  • Identify Owner’s Expertise
  • Establish Goals and Objectives
  • Maximize Competition for Selection
  • Negotiate Effective Contracts
  • Place Right People in Right Roles
  • Plan Ahead
  • Establish Effective Processes
  • Set Performance Metrics
  • Apply Cost-Effective Technology
  • Lead and Manage Proactively
project delivery

Project Delivery

Methods and Myths

project delivery methods
Project Delivery Methods
  • Design/Bid/Build – Single Prime
  • Design/Bid/Build – Multiple Prime or CM
  • Construction Manager at Risk
  • Performance Contracting
design bid build single prime
Design/Bid/Build – Single Prime
  • Owner contracts with a design team
  • Design team provides design and produces bid/construction documents
  • Project is bid to single general contractor
  • Low responsive, responsible bidder selected
design bid build multiple prime
Design/Bid/Build – Multiple Prime

Same as Single Prime except:

  • Project is bid in multiple packages
  • Low responsive, responsible bidders selected
  • Multiple primes “assigned” to general contractor as coordinating contractor
general contractor as cma
General Contractor as CMa

Same as Multiple Prime except:

  • Owner contracts with a CM
  • CM participates in design phase
  • Owner is at risk and holds all contracts – no “assignments”
  • Typically many more contracts
general contractor as cm at risk
General Contractor as CM at Risk

Same as GC as CMa except:

  • GC holds the contracts and is at risk
performance contracting
Performance Contracting
  • Same as Design-Build except:
  • For energy savings improvements
  • ESCO provides:
    • Financing
    • Guaranteed energy savings
which method
Which Method . . .

Can be completed in the least amount of time?

Requires the least amount of District time to oversee?

Takes the least amount of District expertise to manage?

Has the fewest change orders?

Involves the least risk for the District?

Provides the highest overall value for the District?

  • Design/Bid/Build – single prime
  • Design/Bid/Build – multiple prime or CMa
  • Construction Manager at Risk
  • Performance Contracting
  • It depends
which method1
Which Method . . .

Can be completed in the least amount of time?

Requires the least amount of District time to oversee?

Takes the least amount of District expertise to manage?

Has the fewest change orders?

Involves the least risk for the District?

Provides the highest overall value for the District?

  • Design/Bid/Build – single prime
  • Design/Bid/Build – multiple prime or CMa
  • Construction Manager at Risk
  • Performance Contracting
  • It depends
it depends
It Depends
  • Every method:
    • Has positives and negatives, has succeeded and failed
    • Is complex, just in a different way
    • Can be fast-tracked
    • Should never be used “as is”
    • Should be tailored to the specific client, project, and local/current market
  • Customization and management matter most, not the method
selecting project delivery
Selecting Project Delivery

Consider:

  • Most common, best understood
  • Experience and knowledge of: architect, engineers, contractors

Don’t consider:

  • Time – overall or District’s
  • Change orders
  • Risk

These are customization considerations

minimizing owner s time invested
Minimizing Owner’s Time Invested
  • Have the right level of expertise
  • Invest the time early
  • Avoid gaps

More time here

pick any two
Pick Any Two
  • The Project

Management

Triangle

  • Why not have all three?
  • Low quality often adds cost and time
  • Quality design can reduce overall cost
  • “Too” slow and “too” fast both cost more
  • Effective Owner management improves all three
improving all three q b s
Improving All Three – Q/B/S

“Avoidable failures are common and persistent . . . the volume and complexity of what we know has exceeded our individual ability to deliver its benefits correctly, safely, or reliably.”

“We need a new strategy . . . and there is such a strategy. It is a checklist.”

getting things right
Getting Things Right
  • Ninety-second checklist
  • Complex world of surgery
  • Eight hospitals around the world
  • All kinds of operations
  • Reduced deaths and complications by one-third
  • No cost
example checklists
Example Checklists
  • Facility appraisals
  • Facility assessments
  • Plan/spec reviews
  • Inter-disciplinary reviews
  • Scorecards
etools examples
eTools Examples
  • Building Information Modeling (BIM)
  • eProject Management
  • eDeliverables
summarizing success
Summarizing Success
  • Understand the complexity
  • Identify expertise necessary for the District’s “Owner” role
  • Identify/predict the gaps
  • Bridge the gaps
  • Use checklists!
equal understanding is key
Equal Understanding is Key

“Armed with the most the most powerful weapon in anyone’s business arsenal – understanding – you will have a fighting chance to get the building you want, when you want it, for the price you originally agreed upon.”

Broken Buildings, Busted Budgets

by Barry LePatner