Construction Management at Risk

Transcription

1 Construction Management at Risk Implementation and Lessons Learned Virginia Water Environment Association Webinar Janelle Wright Okorie Director, Engineering and Technology Programs 21 October 2015

2 Alexandria Renew Enterprises Formerly Alexandria Sanitation Authority Created in 1952, we are one of the most advanced water resource recovery facilities in the United States. We clean about 13 billion gallons of dirty water each year for the City of Alexandria and a portion of Fairfax County.

3 CMAR Project Scope Integrated Set of Projects 1 2B Nutrient Management Facility Connector Deck 2A Environmental Center

4 Procurement Options Traditional and alternative procurement options were considered Design Bid Build Design Build CMAR Other Alternatives?

5 Procurement Options Scope, requirements, and risks were vetted This is a complex job, with multiple projects The construction footprint is less than 5 acres. There s some risk in relying on more than one contractor. Transparency in subcontracting and financial management is important to us. It s also important to the state; eligible components of the NMF receive Virginia WQIF funds. The NMF is integral to our ability to meet stricter TN effluent limits. It has to be delivered on time. We need to review the sequence of construction. When should piles for the Connector be driven? Environmental remediation is a big part of the scope. Our site is entered into a Voluntary Remediation Program. We need a team with experience.

6 Key Drivers for CMAR Selection What was important to AlexRenew? Qualifications-based selection Allows CMAR and subcontractor input during design Reduced schedule risk by shifting responsibility for subcontractor bidding to CMAR Open book approach to cost

7 Contract Overview as Two-phase process: Pre-construction and Construction Separate Contracts Professional Service Agreement for Pre- Construction Construction Service Agreement Schedule: December 2012 January 2016 Original Cost: $150M Incentives and Shared Savings: Early Completion Value Engineering Final Completion under the GMP

8 Implementation Approach Phased GMPs were developed to maintain schedule Design and permitting CMAR procurement, selection, and contract award NMF Preconstruction NMF GMP 1 ( Early Start for Piles and Foundation) NMF Construction NMF GMP 2 (Balance of Work) Determine method for compliance with new state regulation and AlexRenew procedures for use of CMAR Value Engineering starts Environmental Center and Connector Preconstruction Environmental Center and Connector GMP 3 ( Early Start for Piles and Foundation) Environmental Center and Connector Construction Environmental Center and Connector GMP 4,5 (Balance of Work)

9 Implementation Approach Project Team Structure Nutrient Management Facility Environmental Center and Connector Engineer Owner Architect Structural Engineer Owner s Representative Owner s Representative LEED CxA Agent CMAR Project Manager Site Superintendent Principal Steering Committee Senior Site Superintendent Project Manager Site Superintendent Precast Concrete Sub-contractor Trades Sub-contractor Trades

10 Implementation Approach Collaboration Quarterly Principal Steering Committee meetings Quarterly Partnering meetings All team members Team member evaluation and scorecard Tracked performance as the project evolved Collective celebration of team milestones NMF: Last pile driven Environmental Center: Concrete top out

11 Implementation Approach Key Elements Value Engineering Guaranteed Maximum Price (GMP) Ongoing, Stakeholder Education Fig. Nutrient Management Facility Central Gallery

12 Value Engineering (VE) Improves schedule performance; reduces construction costs and risks Key component of preconstruction services Requires extensive collaboration among all parties Owner Engineer/Architect CMAR Subcontractor Trades Fig. Nutrient Management Facility Precast Panel

13 Value Engineering (VE) Improves schedule performance; reduces construction costs and risks Value Engineering Proposal Accepted: NMF Precast Panels and Precast Piles 3 months Schedule Contingency 1,800 precast piles 1,800 precast panels $6M Owner Savings VE Change Proposal Description of the change and its benefits List of affected contract requirements Cost Estimates VE change Affected portions of contract Other owner costs Schedule impacts

14 Value Engineering (VE) Lessons Learned Initiate VE review early in pre-construction phase to accrue the greatest benefits Establish clear criteria for vetting VE change proposals; know what brings value to the project Include subcontractors in VE discussions CMAR-Owner Incentive vs. Team Incentive Engineer/Architect? Subcontractor?

15 Guaranteed Maximum Price Submittal Package Components Cover Letter Work Description (incl. drawings and specs) Subcontractor Bid Summary Exclusions, Assumptions, and Clarifications Allowances and Contingencies Cost Summary

16 Guaranteed Maximum Price Submittal Package Subcontractor Bid Summary CMAR Adherence to Owner Procurement Guidelines Competition (minimum of 3 contractors per trade) Subcontractor Willingness to Meet All Requirements Volume Discounts for Combined Bids CMAR Self-Performance MBE/WBE/Local Business Participation

17 Guaranteed Maximum Price Submittal Package Exclusions, Assumptions, and Clarifications Subject to negotiation Ensure consistency with CMAR contract Should not include responses to RFIs addressed during the subcontractor bid process Review special warranty provisions carefully

18 Guaranteed Maximum Price Submittal Package Allowances and Contingencies Allowances Funds undetermined scopes of work Should not be used to pad contingency Credited back to the Owner, if not used Contingencies Should fund re-work due to ambiguities in construction documents; or other uses, as approved by Owner Should be held at the CMAR-level Subcontractors should not carry allowances or contingencies in their bids

19 Guaranteed Maximum Price Submittal Package Cost Summary GMP Cost Summary Entity Unit Unit Cost Core Project Management Team CMAR Item Cost MBE/WBE/Local Participation Insurance, Bonds, Other Indirect Miscellaneous GCs Direct cost Bid Package 1 Site Demo Bid Package 2 SOE and Dewatering Bid Package 3 Piles Allowances Contingency CMAR Fee Subtotal Shared Savings Disbursement Total GMP ABC Earthworks DEF Shoring Specialist GHI Construction Identify subcontractor trades for easy reference Owners should work with the CMAR to format the GMP cost summary according to their needs. This is particularly important if work needs to be tracked by funding source (e.g., work eligible for state reimbursement vs. non-eligible). This format can be easily adapted to serve as the Schedule of Values (SOV) and included in payment applications

20 Ongoing, Stakeholder Education Early Engagement is Essential If your organization is considering CMAR, engage permitting agencies early and often Standard forms and checklists used by permitting agencies were often developed around a design bid build delivery model May need to be adapted for alternative project delivery methods

21 Construction Management at Risk Summary Viable option, particularly for large, complex projects Collaboration and partnership with the CMAR can help the Owner obtain significant value Key provisions of CMAR contracts can help establish clear expectations on the part of the Owner and CMAR

22 Construction Management at Risk Nutrient Management Facility and Environmental Center Questions? Janelle Wright Okorie Director, Engineering and Technology Programs Phone: (703) ext Follow us! WEB: FACEBOOK: Alexandria Renew Enterprises

23 Family FieldFest Alexandria, Virginia October 24, :00 am 4:00 pm Help us celebrate the opening of the new, multi-purpose athletic field on top of our Nutrient Management Facility! Connector Deck