The Good, The Bad, and The Ugly

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1 Locally Administered Transportation Design-Build The Good, The Bad, and The Ugly APWA Mid-Atlantic Chapter Annual Conference May 9, 2013

2 North Gayton Road Extension Project Overview First Locally-Administered Design-Build Transportation Project of its kind in the Commonwealth

3 Project Timeline Aggressive Schedule Henrico Board of Supervisors approved this PPTA Contract on September 25, % Citizens Information Meeting held in about 8 months later (June 4, 2008) 80% Citizens Information Meeting held in about 21 months (June 16, 2009) Public Hearing held in about 22 months (July 29, 2009) Completion open to traffic in about 5 years (October 6, 2012) Dedication Celebration the next month (November 15, 2012) From blank paper to completion in ~5 years 2

4 Project Financial Summary 100% County Funded Project No federal or state funds Total Project Cost approximately $48.4 million 3

5 Basic Project Features 2.1 miles of new 6 lane and 4 lane divided road New 6 lane bridge over I-64 Relocate approximately 1/2 mile of two lane frontage road Curb and gutter and related drainage facilities 5 new traffic signals and 1 modified signal Utilities improvements Approximately 1⅓ mile of new 16 waterline Approximately ½ mile of new 8 sanitary sewer Install Sanitary Sewer casing under I-64 4

6 Project Corridor Overview Diverse mixture of Construction Environments 5

7 Design-Bid-Build (DBB) vs. Design-Build (DB)

8 Design-Bid-Build (DBB) Traditional procurement and project delivery Owner responsible for design, construction, and quality for project Advantages Design complete before construction begins Design changes easily accommodated with established protocol and pricing Lowest cost alternative Engineer works directly for owner

9 Design-Bid-Build (DBB) Disadvantages Owner responsible for design, construction, and quality of project Increased administrative effort as multiple contracts to manage Increased owner project management as no single point of responsibility for project delivery No built-in construction VE during design with contractors Contractor is low-bid qualifications not considered Longer delivery time

10 Design-Build (DB) Selection of single DB Team to deliver project that includes consultant and contractor Advantages Selection of DB Team not low-bid, qualifications based Less owner expertise if willing to relinquish control Contractor involved during design, less construction surprises Transfer of design and construction risk from owner to DB Team Single point of contact for design & construction Fixed project cost (mostly) Shorter project delivery schedule

11 Disadvantages Design-Build (DB) Increased project cost as contractor bears risks for unknowns not yet designed Design changes after construction begins can be costly Requires more owner expertise If owner wants to maintain control Contract disputes can quickly become complicated because consultant works for contractor Contractor heavily involved in design and can prioritize contract cost-savings over other criteria in design decisions (such as owner long-term maintenance or asset costs)

12 Design-Build (DB) Disadvantages (continued) Consultant works for contractor No one representing owner s interests typically consultant in DBB Potential conflicting interests between consultant and contractor contractor wins

13 Overcoming Challenges to Administering Design-Build

14 General DB Challenges Owner needs to decide involvement up-front: Turn-key (sign contract and accept project at end) Maintain control very PM intensive Extremely dynamic project environment design still far from complete when construction begins e.g. permit Cannot over-emphasize the importance of a well crafted contract, including carefully prepared performance specifications

15 Example of Design Flexibility Pond #1 Designed multiple times due to property negotiations Needed to be drained to construct improvements Upgraded outlet structure through dam and outfall channel

16 Ex. Innovative Engineering Pond #2 Protect wetland forebay to Pond #2 used A-Jacks to slow velocities (by Contech) Significant boundary constraints due to early wetland delineations and site conditions

17 Example of Dynamic Design Env. Solution at each of two Floodplain crossings 16 x 8 Conspan Arch Structures with twin 48 overflow pipes

18 The Big 3 - Budget Schedule is so aggressive, no time to take a breath Settle payment schedules before you begin Before the project begins, establish internal practices on how to verify payment for work done Preemptively discuss and settle issues that may come up later in project e.g. payment for stored materials, third party contract arrangements (for relocation of private utilities), etc. Promptly pay your bills

19 Ex. Materials On-Hand Steel Beams Work zone and staging areas in median of I-64 Setting beams at night required detours off of I-64

20 Live the Contract The Big 3 - Scope Owner continual effort to educate all (internal and external) of contract specifics, likely different than typical practices on DBB projects, including standard practices and preferences Preemptively establish record keeping system for voluminous letters, s, and project documents Promptly process necessary change orders Document everything!

21 Example Scope Changes Bridge aesthetics: Stained rock façade, colored railing and decorative lights 10 wide shared use pedestrian / bike path

22 The Big 3 - Schedule Schedule is so aggressive concurrent runaway trains Establish realistic baseline schedule Keep up with schedule risks No substitute for frequent progress meetings and todo lists Understand roles - owner should assist in mitigating schedule risks, but DB Team is ultimately responsible Be careful of approving schedules if fixed dates, then DB contractor responsible to meet the target date

23 Schedule Unknown Public Participation Effective Public Involvement not only the right thing to do, but builds relationships with citizens that facilitate productive acquisitions, and patience and cooperation during construction Key is Trust Be consistent Say what you mean and mean what you say Be fiercely protective of your credibility! Preliminary contacts Two churches HOAs Strikers Soccer 11 fields 20% CIM 80% CIM Public Hearing Many, ongoing individual meetings

24 Schedule Risk - Property Acquisitions Historically Henrico obtained all of our own RW Contract did not allow negotiations between PPTA Team and citizens to begin prior to public hearing 70 acquisitions, including taking 4 houses Challenge How to promptly and predictably secure access for construction while ensuring our citizens are treated with high standards we expect Contract Solution Per contract - RW to be handled by DB Team with oversight by Henrico Real Property until condemnation then Henrico takes total control 23

25 Keys to Success

26 Design-Build Team Relationship Keys to Success 1. Regular meetings with decisionmakers 2. Small decision tree 3. PM has project authority 4. Open, honest, consistent, and productive dialog 5. Commitment to remain positive and cooperative 6. Willingness to address issues head-on 7. Understanding of all that there are different priorities and success criteria finding technical solutions to accommodate non-technical considerations

27 Additional Keys to Success Embrace the DB project as a unique challenge Much more than in DBB, delaying or avoiding issues can quickly multiply it into much larger problems Comfort in ambiguity ability to move forward while not knowing all the answers or sometimes even all the questions Detail oriented so no balls are dropped Single, consistent, decisive, authoritative voice (PM) to DB Team Actively manage internal and external expectations Contract Über Alles contract trumps all including your practices, preferences, and understandings

28 Questions? 27