An Overview of Design-Build

Transcription

1 CCFC Regional Workshops Breaking the Mold of Traditional Construction Delivery: Successfully Using Lease-Leaseback and Design-Build Friday, May 2, 2014 Coast CCD Costa Mesa, California An Overview of Design-Build Dave Umstot Umstot Project and Facilities Solutions, LLC COMMUNITY COLLEGE FACILITY COALITION 1130 K Street, Suite 210 Sacramento, CA Phone (916) Fax: (916) Handout materials are available online after the workshop. To download the materials, visit and click on the link labeled Workshop Handouts.

2 AN OVERVIEW OF DESIGN-BUILD Presented by: David Umstot, PE, CEM Umstot Project and Facilities Solutions, LLC (O) May 2, 2014 Design-Build Not a New Concept In California: Multiple statutes govern design-build procurement for public agencies For Community Colleges: Education Code Sections govern process 2 1

3 Where Is Design-Build Authorized for Public Entities? Source: DBIA 3 Why Do Owners Select Design-Build? Allows selection based on price and other factors (Best Value Selection) Fosters greater collaboration between the design team, specialty trade contractors and builder Enables involvement early-on with specialty trade contractors Single source of responsibility Better BIM Coordination Reduced change order experience Improved schedule performance (faster to construction) Perceived reduction of risk 4 2

4 Design-Build Versus Design-Bid-Build 5 Design-Build Growth ( Projected) Source: DBIA 6 3

5 Design-Build Definitions To Understand Best Value Selection Bridging Documents Performance Specification Prescriptive Specifications Qualifications-Based Selection Technical Proposal 1-Step vs. 2-Step Selection 7 Best Value Selection The Owner selects the design-builder on the basis of overall best value This includes price and other non-price factors Other factors may include technical expertise, past experience, proposed design, enhanced value relative to other proposals, life cycle cost considerations Typically the Request for Proposal clearly defines how the scoring will be evaluated and on what basis the award will be made 8 4

6 Bridging Documents The Owner provides a set of design documents prepared by a design team (excluded from the design-build competition) to be used as the basis for project definition Why do Owners do this? Because they feel that it gives them more control over the process. Generally, this is common among Owners just starting to use designbuild. What is my opinion? It makes the project a detail-build rather than design-build. Opportunities are lost to create value from builder and specialty trade input into the conceptual and schematic design where most of the costs are set with systems selection. 9 Performance vs. Prescriptive Specifications Performance Specifications define what the desired intent and performance of the requirements are (e.g., heat and cool the building to beat Title 24 by 25%). Prescriptive Specifications contain very specific requirements that the design-builder is expected to provide as part of the contract (e.g., provide 50-ton York chiller). Owner knows exactly what they will get. Allows for greater flexibility in system selection and potential greater value to owner. Leverages creativity of team Design-builder owns risk of performance Owner owns risk of performance based on specification selection Performance-Based x x x Prescriptive x x 10 5

7 Qualifications-Based Selection This means that the selection of the design-builder will be based on a review of qualifications, not price. Typical qualifications evaluation criteria include past experience on similar type and size projects, past performance on projects, experience of proposed team personnel, financial capacity 11 Technical Proposal The Technical Proposal captures on the elements required by a request for proposal other than price. Typical areas covered in the technical proposal include Past Firm, Team and Project Experience Proposed Team and Resumes Proposed Design Approach or Design Life Cycle Cost Analysis Considerations Management Plan Schedule Elements Safety Approach or Plan Quality Assurance Project Plan 12 6

8 Single Versus 2-Step Selection Process In a 1-step selection process, the design-builder is selected on the basis of the proposal submitted. In a 2-step process, firms are requested to submit qualification packages for review and a short list of qualified firms is developed to actually propose with a more fully developed design and price. This is often done as a design competition with price considerations a best value selection. 13 The Big 3 Design-Build Complaints from the Design Community 1. The Cost of Pursuit Beware the RFP that requires a hard price as part of the proposal. This necessitates significant design investment that places a disproportionate share of financial burden on the design firms. 2. Diminished Design Excellence Many architects have a sense that design excellence is potentially diminished when their contractual relationship is with the builder not the owner. 3. Qualifications-Based Selection Fully evaluate the selection criteria before moving forward. Some selections are made on the basis of personality and not qualifications. Understand how your customer views this and structures their selection process. 14 7

9 San Diego Community College District Overview The Second Largest Community College District in California Sixth Largest in Nation Three Colleges City, Mesa and Miramar Six Continuing Education Campuses District Square Footage 2,218,031 (and growing) SD City College Mesa College Miramar College Continuing Education San Diego Community College District Overview $1.555 billion construction bond program provides for 80+ projects at City, Mesa and Miramar Colleges, and six Continuing Education campuses: New facilities to meet Educational Master Plan needs Major renovations and modernizations Campus-wide infrastructure projects Green Building Policy $385M in Design/Build projects 8

10 Construction Productivity in the U.S. Construction and Non-farm Labor Productivity Index ( ) Source: U.S. Department of Commerce, Bureau of Labor Statistics 17 Construction Waste in the U.S. Current Manufacturing Current Construction Support Activity 12% Waste 26% Support Activity 33% Waste 57% Value Added 62% Source: Construction Industry Institute Value Added 10% 18 9

11 Total Cost of Ownership 50 year design life 100,000 square foot classroom building Design and construction cost $30 million Capital Renewal: 2% of current replacement value benchmark) (APPA O&M Budget $5.69/square foot Inflation: 3% 19 Total Cost of Ownership Total Cost of Ownership Save 5% in Cap. Renewal 36% 11% 53% Costs Savings D&C: $30M Total NPV Cap. R.: $101M $ 5M $1.1M O&M: $149M $15M $3.4M Total: $280M $20M $4.4M Save 10% in O&M 20 10

12 Design/Build Overview As of January 1, 2008, Community Colleges can use design build under SB614. Must be at least $2.5M in value Requires project specific Board resolution Need to evaluate the project based on five minimum criteria. Price (10%) Technical Experience (10%) Life cycle cost over 15 years (10%) Skilled Labor Force (10%) Safety Record (10%) SDCCD Design/Build Selection Criteria Price accounts for 20% (200 points) of total ranking. Non Price Factors will account for 80% (800 points) of the total ranking: Technical Expertise (20% 200 points) Design Excellence (20% 200 points) Life Cycle Costs (10% 100 points) Safety Record (10% 100 points) Skilled Labor Force Availability (10% 100 points) Subcontracting Outreach Plan (10% 100 points) 11

13 Target Costing Project Budget Development Space Programming Efficiency Targeted Cost Per Sq. Ft. 23 How to Discourage Pricing Gaming Target costing (e.g., design to budget and create value) Pricing elements to include design fees, preconstruction services, general conditions staffing costs, general requirements and OH&P on target project construction cost 12

14 Design/Build Proposal Ranking Methodology The ranking of Design/Build price proposals will be based on point totals. The highest point totals will be ranked most advantageous and the lowest point totals will be ranked the least advantageous in the following manner: Design Fees (including Preconstruction Services) + General Conditions Cost + (OH&P% x $43,000,000) = Proposer s Price 200 points = 1σ 190 points = 1σ 5σ 280 points = +/.5σ 170 points = 0.5 1σ 160 points = >+1σ MacLeamy Curve Integrated Early Design 13

15 How to Facilitate Design Excellence Foster collaborative behaviors of design/build team Provide high level programming needs Set building space efficiency targets Set-Based design or designing with Choosing by Advantages Set of District standards that are only truly standards that are needed Set-Based Design and Life Cycle Cost Analysis 14

16 How to Facilitate Design Excellence Establish BIM standards that are empowering not prescriptive Set sustainability goals Agree to GMP at completion of design submittal to permitting authority Facilitate end user input and facilities priorities into the design process without sacrificing design/build financial margins BIM Standards n.com/design/sdccd%20 %20Building%20Design%20Standards/SDCCD%20BIM%20Standards%20Version%202.pdf 30 15

17 SDCCD Completed Design/Build Projects Miramar College Police Station Project Budget: $17.9 million Construction Start: Summer 2010 Completion: October 2011 Project provided new headquarters for Miramar College Police and also provided new multi-level parking structure. The Police Station was certified LEED Platinum. SDCCD Completed Design/Build Projects Mesa College Central Plant Budget: $5.5 million Construction Start: March 2010 Completion: February 2011 The new Central Plant provides heating and cooling for five buildings. New sub-grade chilled and hot water piping extends from the facility to the western part of the campus. City College Central Plant Budget: $8 million Construction Start: December 2009 Completion: December 2011 The new Central Plant distributes chilled and heating hot water to the core campus as well as electrical power to campus. 16

18 SDCCD Completed Design/Build Projects City College Math & Social Sciences Project Budget: $80.9 million (incl. land acquisition) Construction Start: January 2011 Completion: August 2012 Project involved land acquisition and construction of new 72,000 sq. ft. classroom and laboratory building. It will include the District s Corporate Education Center, Military Education, a Family Health Center and a six story parking structure with 400+ stalls. LEED Silver. SDCCD Design/Build Projects in Construction Mesa College Social and Behavioral Sciences Building Budget: $36.9 million Construction Start: December 2012 Targeted Completion: July 2014 The Social and Behavioral Sciences building will consist of approximately 66,000 GSF of new laboratories and classrooms for the Behavioral Sciences and Social Sciences programs. The building will include labs for the Psychology and Speech programs. Tracking LEED Gold. 17

19 SDCCD Design/Build Projects in Design Miramar College - Fire Science/ EMT Training Facility Budget: $16.5 million Construction Start: July 2013 Targeted Completion: July 2014 This facility will consist of approximately 22,900 SF to serve as a classroom and active training center for the Fire Science and Emergency Medical Technician (EMT) programs. The facility will have labs, support space, equipment staging, classrooms, offices and an outdoor training area. Animation Miramar College Fire Science/EMT Complex 18

20 SDCCD Design/Build Projects in Construction Miramar College Science Building Expansion Budget: $31.7 million Construction Start: October 2013 Targeted Completion: November 2014 The new 50,000 SF addition includes new classrooms, faculty offices, and laboratories for chemistry, physics, astronomy, geology, microbiology, anatomy, marine biology, biology and lab preparation rooms. The roof level includes a greenhouse and observatory. Tracking LEED Silver. SDCCD Design/Build Projects in DSA Review Mesa College Fitness Center Budget: $10.4 million Estimated Construction Start: June 2014 Targeted Completion: June 2015 The Fitness Center will be an approximately 25,000 gross square feet facility to house Mesa College's Health Service program and Physical Conditioning program. 19

21 What happens when your design-builder goes out of business? Mesa College Cafeteria/Bookstore/Stockroom Budget: $45.7 million Estimated Construction Start: 2014 Targeted Completion: 2015 This 65,000 ASF building will house the campus s Food Services facilities, culinary arts program, bookstore and campus stockroom. SDCCD Renovation Design/Build Projects City College: M Building: $6.2M; 15k sq ft C Building: $20.1M; 31k sq ft A, D and T Buildings: $48M; more than 130k Sq. ft in 3 separate buildings 20

22 SDCCD Design/Build in CM Multiple Prime Mesa College Math + Science Complex Awarded design-build prime contracts to major specialty trades using bridging documents Mechanical/Plumbing/FP; Electrical/low voltage; framing/drywall; glazing; pre-cast concrete trades Approximately 60% of the project cost of $86M Proposal Evaluation Selecting the Right Team? Do you have an established relationship with the architect, builder and specialty trades for this type of project? What has been your past experience with the team members? Has the team completed a design-build project in the past? With DSA? On your campus? Is the team chemistry right? What is the level of BIM experience of the team members? Who will lead the BIM effort during design and construction? How will the team collaborate? 42 21

23 You Awarded the Project Now Execute (Design) Validate the project requirements with the internal customers Integrate key specialty trade contractors into the design process at the right time Validate the cost model is sustained as the design evolves; contemporaneous estimating is best Consider Total Cost of Ownership Don t be surprised Leverage BIM 43 Design-Build Institute of America (DBIA) DBIA educates owners as well as designers and builders on teamcentered approaches to design and construction

24 DBIA Design-Build Manual of Practice The Design-Build Manual of Practice is a comprehensive reference manual, which covers all aspects of designbuild project delivery for owners and practitioners. This guidebook is free for DBIA members and contains procedural guidance and best practices recommendations. 45 Design-Build Done Right Best Design-Build Practices Download free at

25 DBIA Certification DBIA Certification guarantees that we all work together understanding our roles in project delivery. It lets us leave silo thinking and the old us versus them mentality behind. Instead we can embrace in action the principles of an integrated team. Successful projects are born from high-functioning performance teams. There is no other way to succeed. Pat Nemeth, Vice President, Sharp Healthcare 47 DBIA Certification Core Courses DBIA's four "core courses" are the cornerstone of its educational program. 1. Fundamentals of Project Delivery. This course provides a general overview of the attributes of all the major project delivery systems, procurement methodologies and contracting 2. Principles of Design-Build Project Delivery. This course addresses the use of design-build as a project delivery method, focusing on essential concepts and characteristics, as well as critical elements of the RFQ/RFP process and overall project management. 3. Design-Build Contracts and Risk Management. This course focuses on applying effective contracting language as well as insurance, bonding and surety products and strategies to successful design-build project delivery. 4. Post-Award Design-Build. This course addresses the use of design-build as a project delivery method, focusing on essential concepts and characteristics, as well as critical elements of the RFQ/RFP process and overall project management

26 DBIA Resources for Owners 1. The DBIA Owner Hotline allows public agencies and private owners quick and direct access to information on design-build project delivery. 2. Owner scholarships are available for all DBIA conferences and may cover complimentary registration as well as offset all or a portion of an individual s travel costs. 3. Owner Boot Camp 4. Owners Council: The Western Pacific Region has developed an Owners Council to provide owners with the opportunity to meet with each other to share lessons learned and best practices in design-build. The Owners' Council is open to owners of private and/or public construction projects - vertical or horizontal. The Council gives owners a chance to network with their peers without pressure from industry practitioners. Tips for Success from a Former Owner Clearly define what you want as part of your RFP process. Place the risk with the party best prepared to manage it. Be prepared to Collaborate! Really collaborate!!! Owner engagement is critical to project success. Integrate your internal customers into the design process. Make design decisions at the appropriate time. Integrate specialty trade contractors early in the process. Leverage BIM

27 Contact Information: David Umstot, PE, CEM Umstot Project and Facilities Solutions, LLC Senior Vice President, DBIA Western Pacific Region LCI San Diego CoP Core Group Member (O) (M) 51 26