Complex Procurements Panel AGC Conference on Surety Bonding and Construction Risk Management January 2019

Transcription

1 American Global Complex Procurements Panel AGC Conference on Surety Bonding and Construction Risk Management January 2019 OLIVEIRA Contracting Inc. TT

2 Moderator and Panel Members Overview: Ed Reilly (Moderator), Senior VP American Global, LLC Chris Murphy, Chief UW Officer Travelers Bond & Specialty Ins. Dave McVicker, Senior VP Zurich Surety Geoff Delisio, Senior VP Berkshire Hathaway Specialty Ins. 2

3 Complex Projects in the US Construction & Operations Central 70 I-75 Modernization Michigan Freeway Lighting Purple Line Colorado ($958 million) Michigan ($725 million) Michigan ($49 million) Maryland ($2,306 million) Transform I-66 Virginia ($3,685 million) LAX CONRAC California ($1,000 million) LAX APM California ($2,748 million) Angels Flight California (<$5 million) SH 288 Toll Lanes Texas ($1,063 million) 3 adjusted by American Global (as of Oct 2018)

4 Major Design-Build and Gap Finance Projects in the US Construction & Operations This map is focusing on current, major Design-Build and Gap Finance Projects Washington Design-Build SR 99 Alaskan Way 1,350 Million WSDOT Highway 520 DB Project 455 Million KENTUCKY Design-Build Downtown Crossing 860 Million NY DOT Rt 17 Diamond Interchange at Woodbury Common Project 150 Million CALIFORNIA Design-Bid-Build Presido Parkway (Phase 1) 496 Million NEW YORK Design-Build Tappan Zee 3,140 Million VADOT I66/Rt 15 Diamond Interchange Project 39 Million Utah Design-Build I-15 CORE 1,100 Million FDOT Wekiva Parkway Project 1.6 Billion in several DB contracts TEXAS Design-Build Grand Parkway F-1, F-2 & G 1,048 Million TXDOT SH 2249 DB Project 550 Million FLORIDA Design-Build-Finance I-395/I Million 4

5 Major P3 Projects in the US Potential Pipeline This map is focusing on major potential transportation P3 projects. CALIFORNIA LA Streetcar West Santa Ana Branch LRT (UP) LA Convention Center Sepulveda Corridor I-710 North I-710 South High Desert Corridor (Other UPs that have already been submitted) ILLINOIS ORD Express I-55 Managed Lanes Illiana Expressway KENTUCKY Brent Spence Bridge OHIO Brent Spence Bridge Columbus Crossroads Cleveland Innerbelt MASSACHUSETTS LED Lighting P3 Route 3 North Sagamore Bridge NEW YORK Gateway Project PENNSYLVANIA I-95 Improvements Mon-Fayette Expressway COLORADO Jefferson Parkway I-70 West Potential managed lanes projects MARYLAND I-495 & I-270 Managed Lanes VIRGINIA TBD NORTH CAROLINA Mid-Currituck Bridge I-77 South Managed Lanes NC 540, US 74 ARIZONA LED Lighting P3 Capitol/I-10W LRT I-17/I-10 Spine Improvements HAWAII Honolulu Rail Transit Honolulu Civic Center TEXAS TX Bullet Train TBD I-94 Corridor Improvements Honolulu Transit Center ALABAMA I-10 Mobile River Bridge FLORIDA Tampa Bay Next I-4 Beyond the Ultimate 5

6 Complexity in Construction Projects Least Complex to Most Complex as follows: Design-Bid-Build Design-Build D-B Finance/Gap Finance P3 Sophistication of Owners, Design Professionals, Builders and Subs needs to grow along with the complexity 6

7 Overview of our Goals for this Panel Discussion 7 We hope you leave this presentation with a better feel for the following: In general, how have complex projects performed in recent years as their number has greatly increased in the last five years? What is the current view in the surety market of more complex procurements? What lessoned have been learned in recent years about the risk profile of these jobs? What are the areas of particular concern today about these projects?

8 Panel Discussion How prepared are Owners and Contractors to deal with complex procurements? 8

9 Panel Discussion What are the most challenging characteristics of these procurements: Size? Duration? Design? Risk Allocation Other? 9

10 Panel Discussion How are Contractors and their Sureties Reacting to their Experience with these procurements? Contractors Sureties 10

11 Conclusion Questions? 11