Alternative Delivery for Municipal Water & Wastewater Projects in 2012

Transcription

1 Alternative Delivery for Municipal Water & Wastewater Projects in 2012 a OWEA 2012 Making a Pass at Going Green Looking Towards the Future June 20, 2012 Dennis Tinkler, P.E.

2 Agenda Ohio s Methods of Performing Public Construction Ohio Construction Reform (OCR) Alternative Project Delivery Methods Is a Work in Progress Chartered Cities vs. Other Jurisdictions Single-Prime Design/Bid/Build (D/B/B) Design/Build (D/B) project delivery Construction Manager at Risk (CMR) delivery Making a Pass at Going Green ($) Looking Towards the Future General Contractor Led D/B Actions to Move Us Forward 2

3 Ohio Construction Reform (OCR) June 2011: OCR HB 153 signed by Governor Alternative Project Delivery Methods: Retains multiple-prime Design/Bid/Build (D/B/B) project delivery (not recommended) Retains Construction Manager (CM) as agent delivery Allows Single-Prime D/B/B* Allows Construction Manager at Risk (CMR)* Allows Design/Build (D/B)* Allows for open-book Guaranteed Maximum Price (GMP), design-assist, and subcontractor prequalification within D/B and CMR delivery methods *To be discussed further today First changes in Ohio s method of performing public construction in over 134 years! 3

4 2012: Ohio Construction Reform Work in Progress Check this website for updates on Ohio Construction Reform: Allows Single-Prime D/B/B CMR documents final in February 2012 D/B documents final in April 2012 CMR and D/B Standard Requirements for Public Facility documents are a Work in Progress and are expected to be updated for Water/Wastewater projects Go To: to sign up for updates, make comments, learn, etc. 4

5 OCR: Chartered Cities vs. Other Jurisdictions Alternative Delivery Requirements for Ohio Public Water/Wastewater Facilities Chartered Cities OCR not Applicable Ohio Administrative Rules Apply Much flexibility to select best value of Numerous Alternative Delivery Methods Jurisdictions including Non-Chartered Cities, Villages, Townships, Etc. OCR Applies OCR Developed for State Work BUSINESS! Jacob Marley OCR is a Work in Progress and did not generally consider Water/Wastewater Projects 5

6 OCR: Single-Prime D/B/B Owner Advantages All Parties are Familiar Time-Tested Process Allows Thorough Collaboration/ Input between Owner and Design Engineer Owner Disadvantages Takes Time Linear Process Min. Collaboration between Engineer & Contractor Risks to Owner Relies on Engineer s Estimates Errors and Omissions result in Change Orders (but much less than Multi-Prime) Workable Project Engineer Owner GC Trade Subcontractors Contractual Relationships Working Relationships 6

7 OCR: CMR ( D/B Lite ) Owner Advantages CMR Pre-Construction Services: Improved Constructability, Pricing, and Possibly Schedule Price Guaranteed Maximum Price (GMP) During Design Engineer Owner Reduces Project Risk, Contingency, Design Omissions thereby less potential of Change Order Prequalification of Subcontractors may Increase Quality Owner Disadvantages No Single Responsible Party Separate Design/Construction Contracts CMR Engineer and CMR forced marriage Relies on Criteria Engineer for Initial Estimates Trade Subcontractors Complex GMP Process Risk of Agreement Added Costs for CMR Pre-Con Services Contractual Relationships Working Relationships 7

8 OCR: Design/Build Government does not solve problems; it subsidizes them. Ronald Reagan Owner Advantages Single Point of Contact and Single Contract for Performance and Guarantees Owner Disadvantages (Just for Starts) Subcontracting Process is Burdensome: Project Cost Unknown until final Subcontract Packages are designed, bid, and awarded Public Owners will need significant staff to review Subcontract Packages Higher Design Costs Will Delay Project and Add Administrative Costs; Project at Risk to Proceed unless all Sub Packages are designed, bid, and awarded Key Subcontractors are not Members of D/B Team and; therefore, do not provide meaningful innovation Criteria Engineer Owner Design/Builder Trade Subcontractors Contractual Relationships Working Relationships 8

9 Looking Toward the Future General Contractor Led Design/Build Owner Disadvantages Procurement can be Complex (Evaluated Bid) Criteria Engineer City Limited to Predict what will be Proposed (if Minimal Criteria Design for Complex Project) Price may include Significant Costs to offset Risk (if Minimal Criteria Design for Complex Project) Design/Builder Possible Limited Owner and D/B Team Collaboration Trade Subcontractors Contractual Relationships Working Relationships 9

10 Looking Toward the Future Most D/B Projects in US are General Contractor Led Design/Build Why Select GC Led Design/Build? Single-Point of Responsibility D/B Team (GC, Engineer, Subs) is Highly Collaborative with Owner Deliver Project Quickly - Problem Solved Costs: Earliest GMP (Lump Sum with Proposal) Low Procurement Costs Competition: Minimize Design/Construction Costs Potential for Maximum Innovation No Contractor Led Change Order Evaluate Proposals: What s Important to Customers? Source: The Water Design/Build Council 10

11 Looking Toward the Future General Contractor Led Design/Build Delaware, Ohio Upper Olentangy Water Reclamation Center For Example, we ran into Changes in Site Conditions Rather than going to Our own separate Corners and then arguing, delaying, sending letters, holding meetings we solved the problems together as a Team with No Project Delay. As a Team, we completed Value Engineering and Constructability Review to: Improve Facility Operations, Safety, and Reliability Improve Odor Control Design to Reduce Both Construction and Lifecycle Costs Later, Kokosing D/B Team was selected for $10M Sewer D/B Project (Repeat Business) The Team developed Trust and, as a result, delivered more Value for the same Cost to the City 11

12 Looking Toward the Future Actions to Move Us Forward Take Advantage of Ohio Construction Reform (OCR) After 134 Years, Stop the Craziness Get Rid of Multi-Prime Design/Bid/Build Owners Use Alternative Project Delivery that is most Advantageous to Your Customers Invest Time, Training, and Resources to Learn about all Alternative Delivery Methods Understand Advantages and Disadvantages of Each Alternative Project Delivery Method Recognize that any Alternative Delivery Method can Work with Proper Planning, Execution, and the Right Team Recognize that Owner must have strong leader to follow through with new Alternatives Encourage Ohio Department of Administrative Service to Update D/B Subcontractor Rules Go to and submit comments Source: The Water Design/Build Council 12

13 Questions & Answers a 13

14 a OWEA 2012 Making a Pass at Going Green Looking Towards the Future June 20, 2012