Construction Project Delivery Methods

Transcription

1 Construction Project Delivery Methods Purchasing Requirements and Applications 9/20/2012 1

2 General Purchasing Requirements 9/20/2012 2

3 Governmental Purchasing Requirements Law: Texas Education Code through * Purchasing Contracts Criminal Penalties Notification of Criminal History of Contractor Competitive Bidding* Competitive Sealed Proposals* Law: Texas Government Code Professional Services Law: Texas Government Code Construction * HB 628, 82 nd Legislative Session (2011) added/changed a number of items in the chapter. All are now located in TGC 2267, specifically ,.035,.036,.037,.038,.039,.040,.041 9/20/2012 3

4 Governmental Purchasing Requirements (cont.) District Policy CH (Legal, Local) Purchasing Acquisition CHE (Legal) Purchasing and Acquisition Vendor Relations CV (Legal, Local) Facilities Construction CVA (Legal) CVB (Legal) CVB (Local) Facilities Construction Competitive Bidding Facilities Construction Competitive Sealed Proposal Facilities Construction Competitive Sealed Proposal 9/20/2012 4

5 Governmental Purchasing Requirements (cont.) District Policy (cont.) CVC (Legal) Facilities Construction Construction Manager-Agent CVE (Legal) Facilities Construction Construction Managerat-Risk CVF (Legal) Facilities Construction Job Order Contracts CNB (Legal) Transportation Management District Vehicles 9/20/2012 5

6 Contracting/Hiring Requirements 9/20/2012 6

7 Requirements for Contracting With & Hiring of Professional Services (Architects / Engineers) 9/20/2012 7

8 Professional Services (Architects/Engineers) Texas Education Code (f) specifies that the District is to use Texas Government Code to select Architects / Engineers ( A/E ) The District shall select the most highly qualified based on a demonstrated competence and qualification The District will then attempt to negotiate contract with the selected A/E for a fair and reasonable price If unable to negotiate a contract, the District shall formally end negotiations with the first A/E and begin negotiations with the next A/E The District shall follow this process until a contract is negotiated and entered into 9/20/2012 8

9 Professional Services (Architects/Engineers) (cont.) RRISD Procurement Process The District will establish the criteria for the project The District Purchasing Office issues a Request for Qualifications ( RFQ ) RFQ delineates the evaluation criteria and ranking, and states other necessary steps may be used to determine most competent and qualified top candidate(s), which could include interviews or site visits RFQ responses are received by the District Purchasing Office 9/20/2012 9

10 Professional Services (Architects/Engineers) (cont.) RRISD Selection Criteria (examples): Responses are evaluated by District Evaluation Team to determine most qualified Negotiations between the District with the top candidate until a contract is signed Financial solvency of Architect/Engineer ( A/E ) firm A/E s understanding of role providing programming services, schematic design & design development services A/E s understanding of role in working with the General Contractor 9/20/

11 Professional Services (Architects/Engineers) (cont.) RRISD Selection Criteria (examples): Method(s) used by the A/E when working with the GC A/E s understanding of role providing the Contract Document phase services Design impact on the educational process for students in the 21st century Innovative designs or concepts that the firm would provide Other factors specific to the construction project 9/20/

12 Professional Services (Architects/Engineers) (cont.) RRISD Selection Criteria (example): 9/20/

13 Requirements for Contracting With and Hiring Contractors for Construction 9/20/

14 General Construction Requirements All construction procurements, no matter the method, must follow the guidelines in 2267: Rules The School District may adopt rules as necessary (policies) Notice Requirements Advertising / Publish notice of a project solicitation Delegation of Authority The Board of Trustees may delegate certain responsibilities to designees Criteria to Consider Used in the evaluation process (price, experience, reputation, etc.) Using other Method than Competitive Bid If not using the competitive bid process, the Board of Trustees or designee must approve the project delivery method prior to publication of the solicitation 9/20/

15 General Construction Requirements (cont.) Methods available for construction under TGC 2267 are: Competitive Bidding Construction project awarded based on price alone Competitive Sealed Proposal ( CSP ) Construction project awarded based on published criteria and price based on predefined points Construction Manager-Agent Hiring an agent / general contractor to act on the District s behalf throughout the construction process, District retains all liability for the project 9/20/

16 LINES OF CONTRACTING RESPONSIBILITY Competitive Bid or Competitive Sealed Proposal Owner A/E GC Subs Construction Manager - Agent Owner A/E CM Agent Subs 9/20/

17 General Construction Requirements (cont.) Methods available for construction under TGC 2267 are: Construction Manager-at-risk ( CMR ) Typically a general contractor, works in collaboration with the A/E to optimize design for cost and speed of construction Design-Build A single point of responsibility/risk contract that reduces the delivery schedule by overlapping the design phase and construction phase of a project Job Order Contract ( JOC ) Awarded as a term contract, used for maintenance, repair and alteration, renovation, remediation or minor construction 9/20/

18 LINES OF CONTRACTING RESPONSIBILITY Design / Build Construction Manager At Risk O/A A/E Owner Design Builder Subs A/E Owner CM@ Risk Subs 9/20/

19 Using Competitive Sealed Proposal ( CSP ) Method 9/20/

20 Competitive Sealed Proposal District is to follow the Competitive Sealed Proposal ( CSP ) requirements found in TGC for the procurement process of a General Contractor ( GC ) District is to select the most highly qualified A/E to prepare the construction documents prior to solicitation publication District is to contract with an independent inspection and testing services firm 9/20/

21 Competitive Sealed Proposal (cont.) CSP Selection Process ( ) District is to prepare RFCSP ( Request for Competitive Sealed Proposal ) providing the construction documents, selection criteria and the weighted value, estimated budget, project scope, estimated project completion date, and any additional information the Contractor may be required to respond to the request RFCSP delineates the evaluation criteria and ranking, and states other necessary steps may be used to determine most competent and qualified top candidate(s), which could include interviews and/or site visits 9/20/

22 Competitive Sealed Proposal (cont.) CSP Selection Process ( ) (cont.) District is to evaluate and rank within 45 days each proposal response based on the published selection criteria and ranking evaluation District is to select the offer that provides the best value to the District based on the published selection criteria and on the ranking evaluation District is to negotiate with the selected offeror until a contract is reached 9/20/

23 Competitive Sealed Proposal (cont.) RRISD Selection Criteria (examples) Financial solvency of company Number of years providing commercial construction services based on the scope and size of the project indicated within this RFCSP Number of commercial projects the company has performed equal to the scope and size of the project indicated within this RFCSP Past Project Experience 9/20/

24 Competitive Sealed Proposal (cont.) RRISD Selection Criteria (examples) 9/20/

25 Using Construction Manager-at-risk ( CMR ) Method 9/20/

26 Construction Manager at Risk District is to follow the requirements found in Texas Government Code ( TGC ) for the procurement process of a Construction Manager at Risk ( CMR ) CMR assumes the risk for construction of the project at the contracted price as the General Contractor District is to select the most highly qualified A/E before or concurrently with the CMR District is to contract with an independent inspection and testing services firm 9/20/

27 Construction Manager at Risk (cont.) CMR Selection Process ( ): Issue a Request for Proposal ( RFP ) stating that the selection process will be either a one-step (fee + criteria together) or two-step (criteria to determine qualifications in the 1 st step, fee only in the 2 nd step if offeror is qualified in the 1st) Provide the project site, project scope, schedule, selection criteria and weighted value, estimated budget, and time and place for receipt of the responses RFP delineates the evaluation criteria and ranking, and states other necessary steps may be used to determine most competent and qualified top candidate(s), which could include interviews and/or site visits 9/20/

28 Construction Manager at Risk (cont.) CMR Selection Process ( )(cont.) : Selection Criteria may include offeror s experience and reputation, past performance, quality of the offeror s goods or services, safety record, proposed personnel, financial capability, and/or any other appropriate factors (e.g. methodology) needed by the District If one-step process, response is to include proposed fees and prices for fulfilling the general conditions District is to evaluate and rank within 45 days each proposal response based on the published selection criteria and ranking evaluation District is to negotiate with the selected CMR until a contract is 9/20/2012 reached 28

29 Construction Manager at Risk (cont.) CMR Requirements during the Contract Period CMR is to publically advertise solicitations to trade contractors and subcontractors for major elements of work CMR may seek to perform portions of the work by submission of proposal response prior to the day of opening District and CMR are to review and select from the responses the trade contractors and subcontractors the CMR will place under contract to perform the work 9/20/

30 Construction Manager at Risk (cont.) RRISD Selection Criteria (examples) Financial solvency of company Personnel Information an organizational chart with resumes of the project team and key leaders. Organization's system approach to Project Management Control Organization's concept of pre-construction services 9/20/

31 Construction Manager at Risk (cont.) RRISD Selection Criteria (examples) (cont.) Organization's methods for in-house estimating construction costs during the design/documents phase, methods for scheduling during the design and contract documents phases Organization's process to handle Request for Information (RFI) and Change Orders Organization's process to develop the first Guaranteed Maximum Price ( GMP ) thru the final GMP and stay within the construction budget Organization's concept of contingencies / allowances during the design and construction phases of the project 9/20/

32 Construction Manager at Risk (cont.) RRISD Selection Criteria (examples) (cont.) Organization's concept for the disposition of contingency / allowances funds after the completion of the project Organization's methods to deal with warranty items, both in responding to and completing the warranty work Organization's experience in the use of the construction system Listing of Organization s projects within the last 5 years similar in size and complexity 9/20/

33 Construction Manager at Risk (cont.) Selection Criteria (examples) 9/20/

34 Project Delivery Methods When to Use Which Method? Pro s and Con s 9/20/

35 Delivery Methods - When to Use Competitive Bidding New projects that are not schedule sensitive nor subject to potential change and are non-negotiable Competitive Sealed Proposals New projects that are not schedule sensitive nor subject to potential change Construction Manager Agent Less complex projects that are not schedule sensitive, difficult to define, or subject to change (and only when the owner has adequate staff to manage the subcontractor contracts!) 9/20/

36 Delivery Methods - When to Use (cont.) Construction Manager-at-Risk New or renovation projects that are schedule sensitive, difficult to define, complex in nature or subject to change Design Build New projects that are easily definable and schedule sensitive Job Order Contracting Schedule sensitive, multi-trade, minor repair alteration or renovation projects 9/20/

37 Construction Elapsed Time Line (conceptual) Competitive Sealed Proposal Estimated Project Time Line Solicitation RFQ by District for Architect 2 Design Period by Architect 3 Solicitation RFP by District of RFCSP 4 Construction Period Construction Manager at Risk Estimated Project Time Line Solicitation RFQ for Architect and RFP for CMR by District 2 Design Period for GMP1 by Architect and CMR 3 Solicitation by CMR for GMP1 4 Construction Period for GMP1 5 Design Period for GMP2 by Architect and CMR 6 Solicitation by CMR for GMP2 7 Construction Period for GMP2 9/20/

38 Delivery Method Pros and Cons (cont.) Competitive Sealed Proposal Pros: Allows District to use best value criteria of which price is a component of the overall criteria GC qualifications may be used to determine best value District determines weight of the criteria to be used. Price typically high percentage of overall ranking Cost of construction is known prior to selecting GC Cons: A/E & GC may have more conflicts on interpretation of construction documents Slower delivery method start to finish than CMR Tendency for more change orders and schedule delays Price of GC s fee is not known. 9/20/

39 Delivery Method Pros and Cons Construction Manager-at-Risk Pros: Can accommodate a faster schedule A/E & CMR collaboration on design can help to optimize design for cost and speed of construction Cost estimates available throughout design process Sub solicitation more transparent to District Process allows more control over subcontractor selection Usually fewer change orders because construction documents more thorough CMR fee known Cons: CMR selection based more on qualifications rather than on fee which may be seen as more subjective Cost of construction not known at time of CMR s selection. 9/20/

40 Purchasing Requirements and Construction Delivery Methods Questions? 9/20/