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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.

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Delivering School Construction Successfully

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

  2. 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?

  3. Agenda • Case Studies • Project Complexity • Bridging the Gaps • Keys to Success • Project Delivery • Additional Tips

  4. Projects That Fell Short What did the following projects all have in common that caused them to fall short of expectations?

  5. 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

  6. Project #2 • University Student Rec Center • CM at Risk • $13 million new construction • 15-month original schedule • 12 months late

  7. Project #3 • University Student Center • Design/bid/build – multiple prime • $14 million addition/renovation • 18-month original schedule • 12 months late

  8. 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

  9. 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

  10. The Common Cause What did each of these projects have in common? The gaps that existed were not filled Gaps are caused by complexity

  11. 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

  12. 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

  13. Project Complexity

  14. 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

  15. Design/Construction Complexity Organizations X People X Processes X Technical X External Forces

  16. Technical Complexity • Systems: • Structural • MEP/FP • Security • Data/telecommunications • Furnishings and equipment • Codes, soils, environmental, etc. • Project delivery • LEED • BIM

  17. 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

  18. Complexity = Change Orders

  19. Complexity = Change Orders

  20. Gaps Why Complexity Often Wins

  21. Where Are The Gaps? Between all project participants • Owner • Funding sources • Design firms • Consultants • Contractors • Subcontractors • Utilities • Regulatory agencies • Manufacturers/vendors • Stakeholders

  22. What are the Gaps? • Knowledge and experience • Priorities, goals and objectives • Roles, responsibilities and risk • Information and communication • Cultures and personalities • Performance and results

  23. Bridging the Gaps

  24. The Owner’s (District’s) Role Build the bridges Start with the 3 legs The Owner is responsible for the team of teams.

  25. 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

  26. The Owner’s Role • Procurement and performance • Architect/engineer • Consultants • Contractors • Construction manager • Performance contractor • Dispute resolution

  27. 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

  28. Who Wins When The Owner Has Sufficient Resources? Everyone! Two Options: Win-Win or Lose-Lose

  29. 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

  30. Keys to Success 10 Pieces to the Successful Project Puzzle

  31. 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

  32. Solve It at the Beginning .

  33. Project Delivery Methods and Myths

  34. Project Delivery Methods • Design/Bid/Build – Single Prime • Design/Bid/Build – Multiple Prime or CM • Construction Manager at Risk • Performance Contracting

  35. 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

  36. 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

  37. 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

  38. General Contractor as CM at Risk Same as GC as CMa except: • GC holds the contracts and is at risk

  39. Performance Contracting • Same as Design-Build except: • For energy savings improvements • ESCO provides: • Financing • Guaranteed energy savings

  40. 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

  41. 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

  42. 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

  43. 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

  44. Additional Tips for Success

  45. Minimizing Owner’s Time Invested • Have the right level of expertise • Invest the time early • Avoid gaps More time here

  46. 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

  47. 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.”

  48. 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

  49. Example Checklists • Facility appraisals • Facility assessments • Plan/spec reviews • Inter-disciplinary reviews • Scorecards

  50. eTools Examples • Building Information Modeling (BIM) • eProject Management • eDeliverables

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