Vincent M. LeMond Project Management & Construction Services University of TexasatAustin
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1 Job Order Contracting Update: Alternative Contracting Toolkit Course Number PP0799 Vincent M. LeMond Project Management & Construction Services University of TexasatAustin at 1
2 DEFINITION: (Unit Price Contracts {UPC}) A Fixed Pi Price, Competitive Sealed Proposal, Indefinite it Quantity Type Contract Governed by aperiod of time (term), guaranteed by a minimum project amount per term and established by a Unit Price Book (UPB) with an adjustment factor (coefficient) or an adjusted Unit Price Guide (UPG). Designed to accomplish small to medium, multi-trade, t maintenance, repair, renovation and minor new construction projects.
3 Job Order Contracting (JOC) Program Typical Procurement Process (Performed for all program contracts.) 0 days Competitive e Sealed Proposal Process Average Time for Solicitation = 60 to 90 Calendar Days Advertise Solicitation 21 days (State Requirement) Receive Proposals 45 days Recommendation and Execution of Award 80 days General Information Meeting 10 days HUB Opportunities Meeting 17 days Target Last Addendum to be issued 30 days Mandatory Pre- Proposal Meeting 25 days Proposal Evaluation Process 59 to 66 days Institution Approval 83 to 85 days Notice to Proceed and Pre-Work Conference 90 days 3
4 Identifying & Understanding different UPCs Three (3) types of Unit Price Contracting Job Order Contracting (JOC, DOC, AJOC, WOC, etc.) Indefinite Order/Delivery Contract (IDQ) Open-Order O Labor Contract t (OOL)
5 Identifying & Understanding different UPCs Job Order Contracting (JOC) A competitively sealed proposal, indefinite quantity contract t for accomplishing construction, ti alterations, ti repair work, modernization, rehabilitation, landscaping and other tasks for which Unit Prices have been established. Work shall be accomplished through the issuance of individual Job Orders against the Job Order Contract. Each Job Order issued under the Job Order Contract shall be a firmfixed priced order for accomplishing a specific construction, maintenance, or other task or project.
6 JOC Contractors Alpha Building Corporation General Coefficients Normal 1.189, Non Normal Normal th Option Year February 28, 2012 Warden Construction General Coefficients Normal 1.109, Non Normal Normal th Option Year February 28, 2012 JOC Specialty Contractors Mechanical & Process Systems, LLC Mechanical Coefficients Normal 1.18, Non Normal Normal st Option Year February 10, 2012 Port Enterprises, LTD Roofing Coefficients Normal 1.14, Non Normal Normal 1.17 Initial Base Year Otb October 6, 2011 Walker Engineering, Inc. Electrical Coefficients Normal 1.157, Non Normal Normal Initial Base Year August 23, 2011
7 Identifying & Understanding different UPCs Indefinite Order/Delivery Contract (IDQ) A competitively sealed proposal, indefinite quantity contract t for accomplishing construction, ti alterations, ti maintenance, landscaping/hardscapes and other tasks for which Unit Prices can be developed, via a Unit Price Guide (UPG). Work shall be accomplished through the issuance of individual Job Orders against the IDQ Contract. Each Job Order issued under the IDQ Contract shall be a firm-fixed priced order for accomplishing a specific construction, maintenance, or other task/project.
8 IDQ Contractors all use Unit Price Guide Intertech Flooring Flooring 2 nd Option Year June 30, 2011 Central Transportation Systems, Inc. Moving 1 st Option Year June 30, 2011 Austin Architectural Graphics, Inc. Wayfinding 1 st Option Year June 25, 2011 Custom Creation Wayfinding 1 st Option Year June 25, 2011
9 Identifying & Understanding different UPCs Open-Order Labor Contract (OOL) A competitively sealed proposal, indefinite quantity contract for accomplishing facilities shop labor support services for construction and maintenance for which Unit Prices have been established. Work shall be accomplished through the issuance of individual Not-To-Exceed (NTE) agreements per Job Order and/or individual Job Orders against the OOL Contract. Each Job Order issued under the OOL Contract shall be a NTE order for accomplishing a specific trade related service. Typically no material associated to contract.
10 OOL Contractors all use Unit Price Schedule 5 F Mechanical Group, Inc. Plumbing 4 th Option Year November 16, 2011 Albright InsulationCompany Insulation 1 st Option Year November 16, 2011 Elk Electric, Inc. Electrical 4 th Option Year October 16, 2011 Mechanical & Process Systems, LLC Mechanical 4 th Option Year November 16, 2011 Sisk Robb, Incorporated Abatement 1 st Option Year July 7, 2011
11 Determining which contract meets the Needs JbOd Job Order Contract Multiple Trade Construction and Maintenance Projects Indefinite i Delivery/Quantity i Contract Specific Trade or Task(s), Single Trade Construction and Maintenance Project Open Order Labor Single Trade Support, Multiple Tasks
12 Goals & Objectives Contractor Objectives 1) Rapid Mobilization after Contract Award and Job Order: Shorten the project development and procurement time Provide reliable and controlled construction performance schedules Meet or exceed the needs of the Customer(s) Faster response time(s) for project commencement
13 Goals & Objectives Contractor Objectives 2) High Level of QUALITY at a Firm, Fixed Price Performance satisfaction: Standardization on process and procedures, with consideration of interaction with the Institution Lessons Learned as a program and commitment to avoiding costly and repetitious mistakes
14 Goals & Objectives Contractor Objectives 3) Include a Large Number of Subcontractors: While maintaining a minimum of twenty-five percent (25%) Contractor self-performance Understanding responsibility of distribution of Work as issued by Job Order Potential for having to financially support subcontracting efforts (Typically, not an issue for OOL and ISC Contracts.)
15 Goals & Objectives Contractor Objectives 4) Retention of JOC Contractor Status: Remain in an active role in meeting the Institution s Good Faith Effort for Minority participation Develop and maintain a partnership relationship (non- adversarial) Participate and remain active in the Mentor/Protégé program with HUB certified Subcontractors Meet or exceed outlined and proposed performance criteria
16 Goals & Objectives Contractor Objectives 5) Proficiency in Computer Operations: Preparation of cost proposals using computer software Day-to-day contract administration Electronic transfer of data and drawings (i.e., As- Builts, shop drawings, etc.)
17 Goals & Objectives Contractor Objectives 6) Responsible for Project Budget Field verification of specific Drawings and Specifications, in order to develop cost for Job Orders, where Contractor is responsible for items they missed during proposal preparation Implementation of effective cost control methods Capable of assisting in value engineering
18 Goals & Objectives Contractor Objectives 7) Perform at a High Level of Quality: Provide an institution with high quality proposals from the UPB, UPG or NTE agreements using only legitimate scope-related items Provide high quality of construction
19 Goals & Objectives Contractor Objectives 8) Staff to Meet Job Order Execution Schedules: Full time and dedicated presence on-site at all times will be required Quick response to sudden increased workloads
20 Goals & Objectives Institutional Goals Success depends on the Skill and Knowledge of the Institution s Team: Facilities Management Support Personnel - Program/Project Manager, Inspectors/Project Coordinators (Fluctuating Capabilities), Administrative/Contract Support Equipment - Computers with Project Software, Cellular - phones/two-way way Radios, and Inspection/Safety Equipment Design Services (Optional), traditionally included as part of the JOC Services, if not allowed - Architecture & Engineering Department or A & E Consultants
21 Goals & Objectives Successful Contract Teamwork Goals Success depends on Communications, Commitment and Customer Service: 1) Merging of Institution s & Contractor s Performance Criteria 2) Non-Adversarial Commitment (Partnering) 3) Communications 4) Construction Knowledge (Solution-Based) 5) Negotiation Skills
22 Types of Negotiation Soft Negotiation Hard Negotiation Principled The Goal Reaching an Agreement Winning Mutuality: A Wise Outcome Participants Friends Adversaries Problem Solvers About the Make Concessions to Demand Concessions as a Relationships Cultivate t the Relationship Condition of it Separate People from the Problem Trust of Others You Do You Do Not Proceed Independent of Trust Your Position You Change You Dig In and Hold Focus on Interests, Not on Positions; Explore Interests Your Bottom Line You Disclose You Hide and Mislead About Avoid Having a Bottom Line To Reach Agreement You Accept One-sided Losses You Demand One-sided Gains Invent Options for Mutual Gain You Insist On Agreement Your Position Insist on Using Objective Criteria; Yield Only to Principle i Contest of Wills You Try to Avoid You Apply Pressure You Yield To You Apply The Architect s I ll Probably Lose I ll Endanger the Relationship Fear
23 0 days Standard Bid Timeline Using A/E Average Time to Start Project= 180 Calendar Days Prep Bid Documents 120 days Advertise 140 days Open Bids 160 days Start Design JOC Timeline Using A/E Average Time to Start Project= 115 Calendar Days Design Complete 90 days Evaluate Bids 163 days (2-3 days) Recommend Award 165 Days Institution Approval 180 days Notice to Proceed 185 days Start Design Design 90% Complete 75 days JOC Timeline Without t A/E Design Average Time to Start Project=38 Calendar Days JOC RFP JOC RFP 78 days 1st JOC Proposal 96 days Issue J.O. 35 days Issue J.O. 116 days Final JOC Proposal 110 Days 1st JOC Proposal 16 days Final Proposal 31 Days Execution Comparison 23
24 Job Order Costing (The Pricing Formula) 2010 Line Item(s) Cost Step 1 X 2011 Economic Adjustment Factor 2.4% (1.024) Step 2 X Austin 2010 City Cost Index (CCI) 79.6% (.796) Step 3 X Contractor Coefficient(Adjustment Factor) = Sub Total for ALL line Item(s) () Cost Step 4 + Non Pre Priced Items (NPPI or NPI) Step 5 X Contractor Coefficient(Adjustment Factor) = Total Construction Cost
25 Job Order Costing (The Pricing Formula) 2010 Line Item(s) Cost $10, Step 1 X 2011 Economic Adjustment Factor 2.4% (1.024) $10, Step 2 X Austin 2010 City Cost Index (CCI) 79.6% (.796) $ 8, Step 3 X Contractor Coefficient(Adjustment Factor) = Sub Total for ALL line Item(s) Cost $ 9, Step 4 + Non Pre Priced Items (NPPI or NPI) $ 5, Step 5 X Contractor Coefficient(Adjustment Factor) = Total Construction Cost $14,054.99
26 Job Order Costing (The Pricing Formula) 2010 Line Item(s) Cost $10, Step 1 X 2011 Economic Adjustment Factor 2.4% (1.024) + $ Step 2 X Austin 2010 City Cost Index (CCI) 79.6% (.796) $2, Step 3 X Contractor Coefficient(Adjustment Factor) $ = Sub Total lfor ALL line Item(s) Cost $ 9, Step 4 + Non Pre Priced Items (NPPI or NPI) $ 5, Step 5 X Contractor Coefficient(Adjustment Factor) $ = Total Construction Cost $14,609.49
27 The Life of a JOC Project SOP Refresher
28 10 Easy Steps: 1. Request for Proposal (RFP) Issued 2. Pre Proposal Meeting 3. Preliminary Proposal 4. Negotiation of Proposal 5. Job Order Issued 6. Pre Construction Meeting 7. Pay Applications 8. Change Orders 9. Punch Walk 10. Final Inspection 28
29 Step 1: RFP Issued 3 Types of RFPs Constructability Review Joint Scope With Drawings Remember: RFP Questionnaire! 29
30 Step 1: RFP Issued (cont d) *Once RFP Issued, Project will appear on JOC Status Report* 30
31 Step 2: Pre Proposal Meeting After the Pre-Proposal Meeting is held, the Pricing Clock begins; the Proposal is due in 5 Days: $50k & Under 10 Days: $50k - $100k 15 Days: $100k & Over Mandatory Attendees = Project Manager Construction Coordinator Client PSP (if applicable) 31
32 Step 3: Preliminary Proposal Contractor submits Proposal Step 4: Proposal Negotiation Project Manager will Review Proposal - PM will make edits / comments - Contractor will review / revise - Sign & Date Final Proposal Approved as Written
33 Step 5: Job Order Issued Price Recommendation Form *Funding must be in Place* Should include Contract Dates (Notice to Proceed Date & Proposed Completion Date) Copy of Approved Proposal (signed / dated by PM) Remember: Price Rec Form!
34 Step 6: Pre Construction Meeting Project Manager, Construction Coordinator, PSP, Client Handover of Jobsite to Contractor After Pre-Con Meeting is held, the Contractor has 7 days to submit: - Subcontractors List - Project Schedule - Schedule of Values
35 Step 7: Pay Applications Contractors Submit Pay Applications to SPAC Contract Specialist for logging and routing PM, CC, and Contract Administrator required for signature (PSP optional) 30 Days Prompt Payment Act
36 Step 8: Change Orders -CPR Questionnaire -Change Proposal Request (CPR) Issued - Contractor Submits Change Order Proposal - Proposal Negotiated Remember: CPR Questionnaire!
37 Step 8: Change Orders (cont d) Change Order Issued when PM submits the following: Change Order Request (Checklist) Attach Approved copy of Change Order Proposal Contingency Funds v. Free Balance Remember: Change Order Request Checklist!
38 Step 9: Punch Walk Contractor will request a Punch walk when all work is complete PM to schedule Punch Inspection Meeting At this point, project is Substantially Complete (97%) Certificate of Substantial Completion! Punchlist is Created (PM or PSP) and issued to Contractor Copy of punchlist sent to JOC Contract Specialist for CoSC Creation
39 Step 10: Final Inspection Contractor has 30 days to complete Punch Items (usually) When all punch items complete, Contractor to Request a Final Inspection Final Inspection held; PM verifies all work and punchitems complete Contractor then submits Final Pay Application along with All Required Closeout Documentation
40 The Unit Price Estimate The Importance of Construction Knowledge Conceptual Estimating Understanding the Unit Prices Assemblies vs. Line items What does a line item contain? Develop list of common Unit Price Standardization Legitimate Line Items Understand ALL the Coefficient Components
41 Good may not be the proper term for your Contractor Trust..but VERIFY Checks and Balance Independent d Estimates Field Verifications Work with Contractor ONLY Avoid Subcontractor Involvement Maintain the Contract Standards Remember the Auditor!!!
42 Are you ready for the CHALLENGE? Questions & Answers ( still no Guarantees) Thank you for your time, and participation!!! Contact Information: Vincent M. LeMond TEL: (512) vml@mail.utexas.edu More Insight.. Less Anxiety
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