Construction Manager at Risk Delivery Method

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1 County of Alameda Board of Supervisors Transportation and Planning Committee May 4, 2015 Caroline Judy, Acting Director Construction Manager at Risk Delivery Method Briefing and Discussion

2 Purpose Briefing about utilizing Construction Manager at Risk as an alternative construction delivery method Proposal to utilize CMAR for the Cherryland Community Center

3 Construction Contact Delivery for Counties Under Public Contracts Code (PCC), traditionally Board must award construction contracts to the lowest responsible bidder Under PCC Board authority has included Design-Bid-Build and Job Order Contracting (award to lowest responsible bidder) PCC allows the Board to approve alternative delivery to the lowest responsible bidder or for best value for projects > $2.5M Starting after 2000, PCC authority for some jurisdictionsincluding Alameda, allowed for Design-Build alternative delivery award based on qualifications and bid, or best value for projects over $10M

4 Construction Contract Delivery for Counties Effective 1/1/14, PCC amendments allowed County Boards to approve alternative delivery using Construction Manager at Risk (CMAR) Authority sunsets in 1/1/18 Projects must be over $1M CMAR can include awards based on lowest responsible bidder and/or best value, i.e. qualifications; and competitively bid sub-contracts

DBB, DB & CM At-Risk Design-Bid-Build (DBB) is the traditional delivery method for public work Alternative Project Delivery Methods include: Design Build (DB) and CM@Risk (CMAR), as well as job order

5 DBB, DB & CM At-Risk Design-Bid-Build (DBB) is the traditional delivery method for public work Alternative Project Delivery Methods include: Design Build (DB) and (CMAR), as well as job order contracting (JOC) for smaller works Key difference : DBB is based on lowest responsible bids DB and CMAR are both based on best value including qualifications and fee with subcontracts competitively bid

6 CM At-Risk 1998 Penn State study on average, compared to DBB: DB was 33% faster in project delivery speed than DBB CMAR was 13% faster and 9% less schedule growth than DBB 2013 SB78 report: Judicial Council of CA report on favorable results of CMAR for cost management and time of delivery compared to DBB 2014 McGraw Hill Construction Project Delivery Systems Report: Owners Architects Contractors Client Satisfaction CMAR Split DB Cost CMAR DBB DB Schedule DB DB DB CMAR = CM At-Risk DB = Design-Build DBB = Design-Bid-Build Split = Split vote

7 CMAR Case Studies 2004-Present CA State Univ, UC, Judicial Council have delivered multiple projects with CMAR 2002 City of Oakland Fire Station #8: 8,000 sf, 16 months for design through construction 2007 Contra Costa County Public Works Building: 12,000 sf, 22 months design through construction 2012 Contra Costa County West County Health Center: 53,000 sf Medical Office Building, 120,000 parking structure, 3 acres full development, 26 months design-construction 2015 County of San Diego proposed to utilize CMAR (pending in bid) of San Diego proposed to utilize CMAR

CM At-Risk: Pros and Cons Pros: Potential for faster project delivery Lower trend for CO s and claims due to early involvement Contactor owns the drawings Best value selection include qualifications

8 CM At-Risk: Pros and Cons Pros: Potential for faster project delivery Lower trend for CO s and claims due to early involvement Contactor owns the drawings Best value selection include qualifications and fee Subs are bid competitively to preserve local bid req ts for SLEB and ECOB Cons: Budget needs to include a CMAR contingency-3% proposed New method with a county learning curve Risk of challenges or formal protects are unknown

9 CM At-Risk Other characteristics and advantages of CMAR: More certainty up-front on schedule and costs. Commonly used in hospitality, pharmaceutical, hospital, and hi-tech sectors. Successfully used by California State University system; University of California; Judicial Council of California Commonly used by the public sector in the States of Washington, Oregon, Utah and Colorado.

10 CMAR is initially contracted for preconstruction services CM At-Risk Contract is amended for the General Contract for construction following competitive sub-bids for the direct cost of work by subcontractors

The CMAR has responsibility for delivering the project for an agreed cost, or Guaranteed Maximum Price (GMP) which is set in the bid package as a Not-to-Exceed fee CMAR is committed to deliver within

11 The CMAR has responsibility for delivering the project for an agreed cost, or Guaranteed Maximum Price (GMP) which is set in the bid package as a Not-to-Exceed fee CMAR is committed to deliver within the GMP and time CMAR manages a proposed 3% contingency within the contract with County approval. Savings are returned to the Owner CMAR provides detail of all costs throughout the project and in the progress billings CM At-Risk

12 CM At-Risk: of note RFQ/RFP format using County templates docs Points-based qualifications selection with sealed fee $Fee/Qualifications points = Best value Fee breakdown includes assumed General Conditions Contract amount based on a set GMP Guaranteed Maximum Price

13 Next Steps Prepare Board Letter for CMAR for Cherryland Community Center Project on a trial basis to develop for alternative delivery June, 2015 projected Anticipate the contract in two stages: Award of Preconstruction Services July, 2015 projected Award of Contract for Construction Services (early 2016, date TBD) Assess success of CMAR following completion of trial project

(HARD) Schedule milestones June 2015 Request to Advertise using CMAR July 2015 Award of CMAR /

14 CHERRYLAND COMMUNITY CENTER 18,500 Square foot facility in Cherryland area of Hayward $22 million Project Budget Built and financed by County Operated and maintained by Hayward Area Recreation and Park Dept (HARD) Schedule milestones June 2015 Request to Advertise using CMAR July 2015 Award of CMAR / Professional Services contract Early 2016 Award of Const. Contract, based on GMP by CMAR Summer 2017 Construction complete

satellite library facility by AC Library Pre-K Activity Room Garden connection to

15 CHERRYLAND COMMUNITY CENTER 3 multipurpose rooms Large events/community room Table seating for 250 Conference Seating for 350 Adjoining Courtyard Reading Room with satellite library facility by AC Library Pre-K Activity Room Garden connection to nearby Meek Estate County s first Zero Net Energy (ZNE) Building Targeting for LEED Gold

16 Questions Thank you

Design Process 101. Michael Barnard, AIA, NCARB. animalsheltering.org/expo #AnimalCareExpo. Copyright

Design Process 101. Michael Barnard, AIA, NCARB. animalsheltering.org/expo #AnimalCareExpo. Copyright Design Process 101 Michael Barnard, AIA, NCARB animalsheltering.org/expo #AnimalCareExpo Copyright 1 Design and Construction Process Needs Assessment Conceptual Design Schematic Design Design Development