PROVING OUR PROFESSIONALISM

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1 PROVING OUR PROFESSIONALISM 49 TH ANNUAL CONFERENCE MAY 22-25, 2016 ORLANDO, FLORIDA DESIGN-BUILD 101 Joanne Flick, CPPO, CPPB

2 TODAY S TOPICS Project Delivery Overview Comparing Project Delivery Methods The Nitty Gritty, CCNA & Design-Build Solicitation Strategies

3 PROJECT DELIVERY OVERVIEW

4 PROJECT DELIVERY OVERVIEW A COMPREHENSIVE PROCESS NECESSARY FOR ORGANIZING, EXECUTING AND COMPLETING A BUILDING, FACILITY OR PROJECT. Design-Bid-Build Construction Manager at Risk (CM@R or CMAR) Design-Build

5 DESIGN-BID-BUILD Traditional Construction Project Delivery Low Bid Two contracts Linear Sequential Responsive & Responsible

6 PROJECT DELIVERY SYSTEMS I. Design-Bid-Build A/E prepares plans and specifications Low dollar bid from general contractor Separate contracts for design and construction OWNER ARCHITECT/ ENGINEER DESIGN SUBS BUILDER/GC SUBS & SUPPLIERS

7 PROJECT DELIVERY SYSTEMS CONSTRUCTION MANAGER AT RISK Competitive Selection Negotiated Contract Two contracts Design Construction GMP Contingencies Possible fast track Spearin Doctrine

8 PROJECT DELIVERY SYSTEMS II. Construction Management Select Designer Select CM Based on Qualifications Two separate Companies under Contract CM Responsible for Delivery of Construction Services OWNER ARCHITECT/ ENGINEER DESIGN SUBS CM SUBS & SUPPLIERS

9 PROJECT DELIVERY SYSTEMS DESIGN-BUILD Negotiated Contract One contract Single point of responsibility Faster to Contract Award Concurrent Design/Construction Fast track Total Cost Known earlier No Spearin Doctrine (if done right!)

10 PROJECT DELIVERY SYSTEMS Design-Build Design and construction under a single contract Project may begin before design is complete OWNER DESIGN-BUILDER ARCHITECT/ ENGINEER BUILDER/GC

11 COMPARING PROJECT DELIVERY METHODS

12 COMPARING PROJECT DELIVERY METHODS Design-Bid-Build Owner Selects Designer Design by A/E Owner Warrant Plans Construction Bid after Plans Complete Construction Starts after Construction Contract Awarded Design-Build Owner Selects DB Designer Part of DB Team Design by DB DB Warrants Plans RFP for Design and Construction Construction may Start upon Contract Award

13 COMPARING PROJECT DELIVERY METHODS Construction Manager at Risk Owner Selects Designer 2 Contracts Design by A/E Owner Warrants Plans CM Input GMP may be Negotiated Before Plans Complete Construction Starts after CM@R Contract Awarded Design-Build Owner Selects DB Designer Part of DB Team 1 Contract=Single Responsibility Design by DB DB Warrants Plans Builder input Design + Construction Cost Proposed & Negotiated Construction may Start upon Contract Award

14 DESIGN-BID-BUILD Determine Need Define Scope of Work Solicit Designer Award Designer Design Project Solicit Contractor Award Contractor Construct Project Project Completion

15 DESIGN-BUILD Determine Need Develop Design Criteria Solicit Design- Builder Award Design- Build Complete Design Construct Project Project Completion

16 DESIGN-BID-BUILD Advantages Familiar process, established procedure Suitable for many projects Checks & balances Legal precedent No legal barriers to procurement & licensing Insurance and Bonding Disadvantages Lowest bidder not always most qualified Owner is referee Spearin Doctrine Slower No innovation Total cost known at end of project

17 DESIGN-BUILD Advantages Single point of responsibility Faster to award Less conflict No Spearin Doctrine (if done right!) Quality & Innovation Cost savings potential Schedule Early knowledge of cost Fast Track Construction Disadvantages New territory, different roles & risks Complex process Designer not under owner s control Design-Criteria Package Best value vs. Lowest price

18 CONSTRUCTION INDUSTRY INSTITUTE STUDY 351 Projects Various types/industry sectors Compared performance between D-B-B, CM at Risk, and D-B Performance evaluated Cost, Schedule, Quality areas

19 CONSTRUCTION INDUSTRY INSTITUTE STUDY Design-Build Performance compared to Design-Bid-Build Unit Cost - 6% less Construction Time - 12% faster Project Time (design and construction) - 33% faster

20 CONSTRUCTION INDUSTRY INSTITUTE STUDY Quality on a 10-point scale - Start-up; Call Backs; O&M; Exterior and Structure; Interior; Environmental; Equipment D-B outperformed D-B-B in every category

21 THE NITTY-GRITTY CCNA FS

22 CCNA AND DESIGN-BUILD CCNA FS Competitive Proposals (Best Value) Qualification-Based Selection (Progressive Designbuild) Defines: design-build firm design-build contract design criteria package design criteria professional design-build

23 CCNA DEFINITIONS Design Build Firm Certified or Registered General Contractor, OR Certified or Registered Building Contractor, OR Engineering firm, OR Architecture firm, OR Landscape Architecture firm.

24 CCNA DEFINITIONS Design-Build Contract One contract for design AND construction of public project Design Criteria Professional Architect, LA, or Engineer Employed by or under contract with agency Prepares Design Criteria Package

25 CCNA DEFINITIONS Design Criteria Package Concise Performance-oriented drawings Performance-oriented specifications Sufficient to permit DB firms to submit a proposal, OR Sufficient to permit negotiations with a DB Not specifications!

26 CCNA - APPLICABILITY TO DESIGN-BUILD CONTRACTS Design Criteria package prepared by Design Criteria Professional Design Criteria Professional not eligible to render services under the design-build contract Non-State agencies must adopt own rules for award of Design-Build contracts

27 CCNA - APPLICABILITY TO DESIGN-BUILD CONTRACTS 2 Selection Processes Competitive Proposal Selection aka Best Value Qualifications Based Selection aka Progressive Design-Build

28 COMPETITIVE PROPOSALS/BEST VALUE Design Criteria Package Short listing based on qualifications Weighted Evaluation Criteria published Competitive technical & price proposals from short listed firms Evaluation of technical and price proposals by design criteria professional

29 COMPETITIVE PROPOSALS/BEST VALUE 3 proposals from each firm Qualifications Statement Technical Proposal Price Proposal

30 SOLICITATION STRATEGIES

31 COMPETITIVE PROPOSALS - OPTIONS One Step Qualifications, Technical & Price Proposal from each firm Two Step Qualifications proposals received and firms short listed Short listed firms submit Technical and Price Proposals

32 COMPETITIVE PROPOSALS A WAR STORY Temporary Jail Housing One Step Design Criteria limiting Form follows Function

33 QUALIFICATION-BASED SELECTION Same announcement and qualifications procedures as A/E selection Same competitive selection as A/E Same Competitive Negotiation requirements as A/E Owner must retain or employ licensed designer to serve as Owner s rep Design criteria package required to negotiate GMP & guaranteed completion time

34 QUALIFICATION-BASED SELECTION/PROGRESSIVE DESIGN-BUILD Evaluation Criteria Specific to Project Capabilities Adequacy of Personnel Past Record Experience of Firm Experience of Key personnel Design of similar projects Construction of similar projects Prior Design-Build experience Same team? Project Approach MWBE standing / participation

35 QUALIFICATION-BASED SELECTION Negotiate Contract Bids from Trades Use of contingency; Owner s/design-builder s Owner Direct Purchases Award Contract Negotiate GMP Open Book Pre-GMP Costs General Conditions Design Cost Cost of the Work Contingencies Negotiate Guaranteed Completion Date

36 SUMMARY

37 DESIGN-BUILD SUMMARY Review of 3 Project Delivery Methods Each has advantages/disadvantages Design-Build CII Study Faster Cheaper Better Quality CCNA Application to Design-Build Solicitation Strategies Best Value Selection Progressive Design-Build

38 QUESTIONS??

39 THANK YOU ALL! Joanne Flick, CPPO, CPPB Purchasing Agent City of Daytona Beach

AVIATION AUTHORITY POLICY

AVIATION AUTHORITY POLICY PURPOSE: To establish a policy for the selection of development related professional services firms, including design-build firms for professional services and the Consulting Engineer, pursuant to the