Effective Utility Coordination Practices Using Alternative Contract Methods
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1 Effective Utility Coordination Practices Using Alternative Contract Methods Douglas D. Gransberg, PhD, PE, DBIA Gransberg & Associates, Inc. Norman, OK
2 NCHRP 20-07, Task 373 The objectives of NCHRP Project 20-07/Task 373: Utility Coordination Using Alternative Contracting Methods are as follows: Identify, analyze, and understand the current models for successful utility coordination risk management on projects delivered by alternative contracting methods (ACM). Compare the advantages and disadvantages and identify successful approaches to managing utility coordination in each ACM. Prepare a set of Guidelines for managing utility coordination on projects delivered using alternative methods for implementation on highway construction projects by public agencies.
3 Research Team Members Dr. Dominique Pittenger: Arbor Services, Inc. 10+ years paving contracting experience Research experience: Asset management 3-D design/cim Mr. Gary Chambers: Chambers Engr, LLC. 20+ years mechanical/utility design-build contracting experience Research experience: Airport utility operational planning Mr. Micheal Loulakis, DBIA: Capital Project Strategies, LLC 30+ years design-build/construction law experience Co-PI on NCHRP 24-44: Geotechnical Risk Management Guide for Design-build Projects.
4 The Salient Issue DOTs use alternative contracting methods (ACM) to accelerate project delivery. The design and construction of subsurface features of work is generally the earliest package in the sequence of work. Utility issues must typically be resolved before construction can commence. Therefore, the risk of delay due to utility coordination problems is always high on ACM projects.
5 The Opportunity ACM projects furnish the ability to gain high levels of integration between the designer, construction contractor, and affected third parties. As a result, DOTS are afforded a number of opportunities: Utility coordination responsibilities can be assigned to the CMGC contractor/design-builder/p3 developer. If the DOT chooses to retain these, ACMs can be used to obtain early contractor involvement in the design details to increase overall constructability. During procurement, the DOT is able to consider competing design alternatives for the utility work.
6 The Research Details Literature review SHRP2 utility products DOT utility coordination documents analysis of ACM procurement documents 73 RFQ/RFPs $15.2 billion worth of projects in 27 states DOT survey 29 DOTs +DC 58% response rate 7 case study projects
7 Survey, Analysis and Case Study Map
8 Case Study Project Synopsis State/ Agency Georgia/ GDOT Kentucky/ Indiana KYTC/INDOT Minnesota/ MnDOT Missouri/ MoDOT Pennsylvania/ PennDOT Texas/ TxDOT Washington/ WSDOT Project I-285/Ga. 400 Improvements Project Ohio River Bridges Delivery Method Value Project Type Rationale for Inclusion DBF (P3) $1.06 Interchange Project only includes private billion bridges,& finance with no postconstruction roadway maintenance. DB (Downtown Crossing) P3 (East End Crossing) $2.8 billion Hastings Bridge DB/ATCs $120 million Stan Musial Veterans DBB/ATC $230 Memorial Bridge million Rapid Bridge Replacement Project Horseshoe Interchange Project DBFM (P3) $1.7 billion DB $818 million Colman Dock CMGC $320 million Bridges Bridge Bridge 557 rural bridges Interchange bridges & roadway Ferry Terminal Schedule is highly aggressive. Urban setting with utilities that span two states and two different delivery methods. Project had large ATC that included utility aspects. Urban setting with utilities that span two states and had an ATC that included utility aspects. Massive number of small bridges with a variety of utility issues. Multiple jurisdictions with both overhead and underground utility issues. Multimodal facility utility coordination with 2 other active projects that abut the ROW.
9 Benchmark of the Practice Causes of inefficiency in the project development and delivery process. Delays due to utility coordination and location failures. Delays due to untimely actions by third party stakeholders and utility companies. Inefficiencies in the project delivery process due to failure to include salient utility issues in the procurement process. Lost opportunities to avoid utility conflicts. Claims due to utility-related differing site conditions Poor quality utility work
10 Implementing the Strategies Strategies typically address a specific problem and are formulated to address a problem s root cause The strategy is implemented through a method. A method is a means or manner of procedure, especially a regular and systematic way of accomplishing something A method is then implemented using a tool. A tool is something used in the performance of an operation (Anderson et al. 2006).
11 Preview of the Findings Six strategies identified Implement early contractor design involvement as appropriate for each given ACM project. Use ACMs to address utility company timeliness by involving third party stakeholders as early as practical in project development and delivery. Raise the visibility of utility-related issues in ACM projects to ensure competing contractor teams understand the level of criticality on each project. Promote utility avoidance as the preferred solution to utility conflicts. Avoid utility-related claims through enhanced contract mechanisms designed specifically for addressing utility issues. Promote an atmosphere of life cycle-based design and construction decision-making on ACM projects.
12 Methods and Tools The ACMs are the methods for implementing the strategies: DBB w/atcs CMGC DB and DB w/atcs P3 and P3 w/atcs 36 tools were identified Many apply to all methods Some are specific to a method Organized by strategy and method for implementation in the proposed guide.
13 Strategy: Contractor design involvement using ACM Alliancing Early Contractor Involvement Public Private Partnership CMGC Design-Build Design-Bid-Build w/atcs Planning Design Construction Maintenance Design-Bid-Build
14 Utility Coord. Tasks vs. ACM Timing INDOT UC Phase Pre-Letting 1. Utility Coordination Initiation Phase. 2. Utility Research Phase. 3. Utility Initial Notice Phase 8. Utility Construction Phase Project Delivery Method CMGC DB P3 3. Utility Initial Notice Phase DBB CMGC DB P3 Send letter Stage initial notice to each utility Procurement DBB Schedule initial coordination workshop Post-Award meeting with all utility representatives. 1 1 DOTDetermine DOTthe 2 1 Cont DOT 2 1 Cont DOT 2 Cont following as a minimum: DOT participation in obtaining easements. Basis for reimbursement for the utility, if any. Conceptual estimate for cost to relocate the utility facilities. Conceptual schedule to relocate utility if necessary Where utilities will be relocated if required. Potential to design to avoid each utility. Plan for completing the relocation work. Utility elevations for their facilities, if available. Need for sub-surface utility engineering (SUE). Receive written response to initial notice from each utility: Determine those in the project s Conceptual estimate for the cost of relocation. conceptual limits. Determine which are reimbursable and on what Determine designated 4. Utility Verification Phase basis. representative. Consolidate responses to initial notice Develop list of all reimbursable 5. Utility Conflict expenses and Analysis estimated Phase cost Review project funding for reimbursable relocations Review risk evaluation of utility coordination deliverables 6. Utility Work Plans Phase Notify appropriate agencies to have utility facilities marked in the field Notify owner of signals to have buried wires marked in the field Measure and record the location of field markings and facilities 7. Utility Agreement Phase Designer include utility facility information on plan sheets 1 DOT responsible for UC 2 CMGC/DB/P3 developer responsible for UC
15 Methods and Tools to Implement an Early Contractor Design Involvement Strategy ACM Tool Source ATCs Request of utility-related ATCs on DBB projects Utility-related information interaction during procurement (RFIs/Confidential meetings) Utility-related incentives/disincentives DB Request of utility-related ATCs Responsive utility PAE Assign contractor responsibility for utility coordination Evaluate utility avoidance approach in proposal Utility-related information interaction during procurement (RFIs/Confidential meetings) Utility-related incentives/disincentives CMGC Assign contractor responsibility for utility coordination Include contractor support to SUE and utility engineering effort in CMGC preconstruction contract Utility-related information interaction during procurement (RFIs/Confidential meetings) P3 Utility-related incentives/disincentives Requesting of utility-related ATCs Responsive utility PAE Leverage P3 contractor s pro forma financial analysis regarding utility risk Assign contractor responsibility for utility coordination Evaluate utility avoidance approach in proposal Utility-related information interaction during procurement (RFIs/Confidential meetings) Utility-related incentives/disincentives MoDOT WSDOT MnDOT TxDOT TxDOT WSDOT Lit GDOT MnDOT GDOT GDOT GDOT
16 Methods and Tools to Implement Address Utility Company Timeliness Strategy ACM Tool Source ATCs DB CMGC P3 Stakeholder panels led by the CMGC/DB/P3 contractor to facilitate a utility coordination after award Corridor-level master utility conflict matrix Utility-related incentives/disincentives Leverage existing contractor-utility relationships Stakeholder panels led by the CMGC/DB/P3 contractor to facilitate a utility coordination after award Contractor authority to pay for utility adjustments Corridor-level master utility conflict matrix Utility-related incentives/disincentives Leverage existing contractor-utility relationships Stakeholder panels led by the CMGC/DB/P3 contractor to facilitate a utility coordination after award Contractor authority to pay for utility adjustments Corridor-level master utility conflict matrix Utility-related incentives/disincentives Leverage existing contractor-utility relationships Stakeholder panels led by the CMGC/DB/P3 contractor to facilitate a utility coordination after award Contractor authority to pay for utility adjustments Corridor-level master utility conflict matrix Leverage existing contractor-utility relationships MnDOT WSDOT /Survey MnDOT /Survey MnDOT /Survey MnDOT WSDOT /Survey /Survey
17 Methods and Tools to Implement Raised Visibility of Utility-related Issues Strategy ACM Tool Source ATCs DB CMGC P3 Request utility-related ATCs on DBB projects Corridor-level master utility conflict matrix Utility-related information interaction during procurement (RFIs/Confidential mtgs) Utility-related incentives/disincentives Include statement of utility strategy intent in solicitation Request utility-related ATCs Utility-related information interaction during procurement (RFIs/Confidential mtgs) Responsive utility PAE Weighted utility-related evaluation criteria Corridor-level master utility conflict matrix Utility-related incentives/disincentives Include statement of utility strategy intent in solicitation Request utility-related info in interview questions Weighted utility-related evaluation criteria Corridor-level master utility conflict matrix Utility-related incentives/disincentives Include statement of utility strategy intent in solicitation Assign CMGC contractor responsibility to secure final utility agreements Request utility-related ATCs Utility-related information interaction during procurement (RFIs/Confidential mtgs) Responsive utility PAE Weighted utility-related evaluation criteria Corridor-level master utility conflict matrix Utility-related incentives/disincentives Include statement of utility strategy intent in solicitation MoDOT WSDOT Survey Lit/content MnDOT /KYTC WSDOT Survey Lit/content /KYTC WSDOT Survey Survey Lit/content MnDOT /KYTC WSDOT Survey
18 Methods and Tools to Implement Utility Avoidance Strategy ACM Tool Source ATCs Include necessary utility data in ACM solicitation Utility-related incentives/disincentives /KYTC DB Weighted utility-related evaluation criteria Include necessary utility data in ACM solicitation documents Utility-related incentives/disincentives Include statement of utility strategy intent in solicitation CMGC Weighted utility-related evaluation criteria Include necessary utility data in ACM solicitation Utility-related incentives/disincentives Include statement of utility strategy intent in solicitation P3 Weighted utility-related evaluation criteria Include necessary utility data in ACM solicitation Corridor-level master utility conflict matrix Utility-related incentives/disincentives Include statement of utility strategy intent in solicitation /KYTC Survey /KYTC Survey /KYTC WSDOT Survey Survey
19 Methods and Tools to Implement Utility- Related Claims Avoidance Strategy ACM Tool Source ATCs Weighted utility-related evaluation criteria KYTC Use a standard utility information report prepared during planning as a contract document MN, TX, & WSDOT Definition of utility-related differing site condition DB Use a standard utility information report prepared during planning as a contract document MN, TX, & WSDOT Definition of utility-related differing site condition CMGC Weighted utility-related evaluation criteria /KYTC Use a standard utility information report prepared during planning as a contract document MN, TX, &WSDOT Definition of utility-related differing site condition P3 Use a standard utility information report prepared during planning as a contract document MN, TX, &WSDOT Definition of utility-related differing site condition
20 Methods and Tools to Implement Life Cycle-based ACM Decision-making Strategy ACM Tool Source ATCs Require LCC info on ATCs MoDOT Include statement of utility strategy intent in solicitation Survey DB Require LCC info on ATCs Lit/ Include statement of utility strategy intent in solicitation Survey CMGC Include statement of utility strategy intent in solicitation Survey P3 Include post-construction maintenance Require LCC info on ATCs Include statement of utility strategy intent in solicitation GDOT Lit// TxDOT Survey
21 UC Guidelines Chapter 1 Chapter/ Section 1 Title Executive Summary Introduction to ACM Utility Coordination 1.1 The Business Case 1.2 Generic Project Development Process ACM Selection 1.3 Decision 1.4 Utility ACM Strategies The ACM Utility 1.5 Coordination Strategy Workshop How to use the 1.6 Guidelines A concise review of the important concepts and the business case Brief reference to previous SHRP2-related products. Purpose of the guidelines; Target audience; Definitions of key terminology; Brief description of each ACM Brief summary of utility coordination issues in the ACM context; Proactive utility coordination strategies found in the research One or two examples of benefits realized on case study project Brief overview of a typical federal-aid project s development process Utility issues that influence design decision at each stage in the project development process. Graphic of project life cycle timeline showing utility milestones Utility issues that influence the decision to not use traditional DBB ACM selection rationale referencing Colorado ACM decision tool Utility issues that must be included in the ACM decision. Utility red flags that indicate reconsidering or dropping ACM delivery Discussion of the development of utility strategies in ACM projects Review of the 6 strategies found in the research Explanation of relating ACMs and related tools to a given strategy Explanation of the workshop s purpose Reference to workshop template in Appendix D General instructions for planning and executing the workshop Reference to specific instruction is each ACM chapter List and short explanation of the various components of the guidelines Instructions on how to access supporting SHRP2 products
22 UC Guidelines Design-Build Utility Coordination Flow Chart Pre-Award Activities YES One chapter for each specific ACM Chapter on ACM contract administration ACM Utility Identification, Location, and Coordination Contract Components ACM Design Phase Contract Components ACM Construction Phase Contract Components ACM P3 Maintenance Phase Contract Components ACM Dispute Avoidance and Resolution Procurement Stage Pre-Letting Stage Design-Build Utility Coordination Flow Chart (continued) Post-Award Stage Select DB Project Delivery Develop the DB RFQ/RFP Project RFQ Short-List? Utility Coordination Qualifications Project RFP Utility Coordination Technical Req ts ATCs? YES Utility ATCs Project Proposals Evaluate Utility ATCs Evaluate Proposals Approved ATCs Preliminary Engineering Final Engineering Construction From Procurement Stage Conduct Postaward Utility Coordination Workshop Updated Utility Risks w/design- Builder SUE QL-B Validation Final Project Utility Strategy Project Scope of Work Develop Utility Coordination Scope Pre-Work Conferences Proposal Validation; Partnering; Etc. Post-Award Risk Management Conference Updated Project Risk Register w/ Design-builder Input Initial Post- Award Design Conference Project Risk Register Identified Utility Risks SUE QL-B Overlay on Conceptual Plans Utility Relocation Plans YES Utilities Risk a Driver? YES Utilities High Risk? Utility-Related Administrative Documents Utility Coordination Plan SUE QL-A Test Holes, as req d SUE/Utility Impact Analysis Develop SUE/ Utility Impact Assessment NO NO NO YES NO Complete Project Design Effort Request Utility Permits Eligible Utility Reimbursements ID Eligible Reimbursements Pre-Let Utility Risk Mitigation Plan Conduct Initial Utility Coordination Workshop with Utility Owners Draft Utility MOUs Assess Utility ATC Impact on Proposed Strategy This line blurs in DB if work is packaged Assign Utility Coord to Designbuilder? Pre- Procurement Administrative Tasks Complete Project Construction Construction Utility Tasks Design-Builder Coordination Meetings w/ Utility Owners as req d Select Designbuilder Proposed DB Project Utility Strategy Develop Utility Input to Procurement Documents Award DB Contract Proceed to Post- Award Stage Design-Build Project Closeout Reimburse Eligible Utility Owners Update SUE/ Utility Inventory Project As- Builts Project Complete
23 Questions???
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