Models for Management and Delivery of Capital Projects
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1 Models for Management and Delivery of Capital Projects Presented by Douglas Wiersig, P.E. Director Transportation and Public Works Department June 5,
2 Purpose Discuss Models to Manage capital delivery and continue accelerated delivery Discuss available models to deliver capital projects Present innovative techniques to further accelerate delivery and increase project value. 2
3 Delivery Process Primary Components Owner Program/Projects Project/Program Management Delivery Methods Design Bid Build DBB Construction Manager at Risk CMAR Design Build DB Design Build Finance DBF Design Build Finance Operate Maintain Transfer Privatize Supply Chain Designers Contractors Suppliers Services Financial 3
4 Defining the Terms Project/Program Management Mechanics by which design, construction and associated tasks are administered & supervised Delivery Methods Process of assigning contractual responsibilities for designing & constructing a project Delivery method identifies the primary parties taking contractual responsibility for the performance of the work 4
5 Project/Program Management Implementing capital delivery Fort Worth practice Project/Program Management Primarily in-house Some outsourcing Design Outsourced Construction Outsourced 5
6 Project/Program Management In-house staff Effective for base-reoccurring work loads On-going programs Assures greater institutional knowledge/history External consultant staff outsourcing Peaking in work loads Unique projects - delivery methods technical skills Start up programs short duration work efforts Combination of both Peak work loads, special work efforts, new components Training in-house staff Current model for Storm Water Project Delivery 6
7 Balancing City Staff and Outsourcing Workload Varies over Time Capital Project Workload Contract Support Contract Support Helps Meet Peak Staffing Needs City Project Managers & Delivery Support Staff Meet Baseline Staffing Needs Contract Support Time 7 7
8 Project/Program Management Transportation Capital Project Delivery June December M&C s Design, ROW, Construction $20+ million ($34 million/year) January to May M&C s Design, ROW, Construction $37+ million ($88 million/year) 8
9 Project/Program Management Projected Transportation Work Load next 24 months 50+ active projects $317+ million $82 M - debt cash $135 M debt to be sold $30 M active projects $30 M TxDOT & County funds $40 M Water Dept funds 9
10 Project/Program Management Pre-accelerated schedule - allocation of Management staff Work Load 7-9 Projects Active Projects In-house Staff Future Projects October mos 48 mos Work Load 7-9 Projects Completed Projects Active Projects In-house Staff Accelerated schedule - allocation of Management staff Work Load Projects Current Accelerated Active Projects Active Projects In-house Staff X Future Projects 10
11 Project/Program Management Accelerated schedule - allocation of Management staff Current Accelerated Active Projects Active Projects In-house Staff X Future Projects Extra Accelerated Active Projects Current Accelerated Active Projects Active Projects In-house Staff X X Outsourced Accelerated Active Projects Outsourced Accelerated Active Projects Active Projects In-house Staff X X 11
12 Management Resources Transportation Capital Projects Staff extension consulting services Jacobs Management of $50-60 million in peak project delivery Enhancement of delivery process and City staff skills Initiate implementation of alternative delivery methods & prepare City staff and supply chain partners for change process 24 month effort - $2.4 million Stormwater Capital Projects Continue staff extension consulting services CH2M Hill Management of $175 million in project delivery Continue to train City staff Final support period as City staff transitions into total management of base work load 17 month effort $2.1 million 12
13 Delivery Process Primary Components Owner Program/Projects Project/Program Management Delivery Methods Design Bid Build DBB Construction Manager at Risk CMAR Design Build DB Design Build Finance DBF Design Build Finance Operate Maintain Transfer Privatize Supply Chain Designers Contractors Suppliers Services Financial 13
14 Project Delivery Methods Every project is unique No one size fits all delivery method will achieve optimal value 14
15 Legislative Authority Home Rule City Implement alternative delivery methods through existing legislation SB nd Legislature PUBLIC AND PRIVATE FACILITIES AND INFRASTRUCTURE - 3P s. Primarily intended for government agencies that could not use existing legislation. Fort Worth does not gain value adopting provisions in SB
16 Project Delivery Methods Best Suited or Needed Conditions in General Project Conditions Delivery Models DBB CMAR DB DBF DBFOMT Privatize Standard Design X Little Risk Complex High X X Risk Elements Critical Phasing X X Time X X Constraints Large Project X X Costs Regulatory Issues X Special X X X Financing Local Supply Chain Familiarity X 16
17 Project Delivery Methods Owner & Vendor Control Risk Transfer risk to party Best able to carry the risk Existing Outsourcing Design & Construction Greater Value Delivery Models & Management Owner Control Vendor Risk & Control Owner Risk Owner Control Vendor Risk & Control Owner Risk 17
18 Delivery Model Innovation Design Delivery DBB Model Match level of design effort to project uniqueness and risk Standard drawings to match typical field applications Field engineering Full engineering design when project warrants Delivery Time Saving Management Savings Cost Savings 18
19 Delivery Model Innovation Construction Contracting Techniques DBB Model Greater use of Unit-Price contracts minimize number of individual project contracts Bundle projects reduce number of contracts Neighborhood Street Projects HMAC resurfacing contracts Concrete replacement Delivery time Savings Management Savings Cost Savings 19
20 Delivery Model Innovation Contractor Selection DBB Model Greater use of Best Value selection Transfer greater risk to contractor for: Quicker on-schedule completion Performance rating for selection on next job Delivery time savings Cost savings Greater customer satisfaction 20
21 Delivery Model Innovation Expand the use of Alternative Delivery Models Initiate deployment of CMR model Apply to appropriate current capital projects Prepare City & Delivery Partners for greater application in next Capital Program Initiate greater 3P opportunities Establish City Center for 3P s Place for vendor to present innovative ideas Develop City expertise to evaluate ideas Develop effective procurement procedures Cost Savings Risk Transfer Enhanced Service Delivery 21
22 Delivery Innovation Questions 22
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