DEN Process: Project Closeout. David Mashburn, Director of Facility Services DENVER INTERNATIONAL AIRPORT February 8, 2017
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1 DEN Process: Project Closeout David Mashburn, Director of Facility Services DENVER INTERNATIONAL AIRPORT February 8, 2017
2 PRIMARY POINT(s) OF PROJECT CLOSEOUT Financial Re-capitalize funds to do more capital projects Collect Lessons learned library to reduce future risks Handing off of commissioned assets Maintaining a strong position with the City Auditor. Our AIM Processes have set up a Culture of Transparency and Accountability 2
3 PMG Moment: Project Lifecycle 0Lifecycle% pdf 3
4 PCA Replacement Concourse B Closeout Tollgate - SAMPLE JOSHUA SPOON, PROJECT MANAGER DENVER INTERNATIONAL AIRPORT 11/18/2016
5 AGENDA Overview Pictures Budget Overview Accomplishments Lessons Learned 5
6 Before Submitting to PowerPoint Review PROJECT OVERVIEW Replacement of existing PCA Units on all mainline gates on Concourse B for United Airlines Installed 38 new units 23 bridge mounted 15 stand mounted Removal and disposal of all excising units R-22 refrigerant was properly evacuated and recycled. Evacuation reports were submitted for project record. Installation of new pantographs on all bridges. Upgrade of electrical feeders and circuit breakers to support new units. Units were upsized to meet the need of a modern fleet mix. Existing units were 20 ton. New Units are 45, 60 and 90 ton. Installed new hose trollies on most bridges. 6
7 Before Submitting to PowerPoint Review PROJECT PICTURES 7
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10 BUDGET OVERVIEW Completed project with minimal additional costs Change orders were.83% of construction contract costs. Value engineering items Removal of B35 from scope Reuse of existing feeders, conduit and MCP panels that we slated to be replaced. Exceeded Construction Management and Quality Assurance (CM/QA) budget due to quality and performance issues with specified vendor. Addressed multiple issues to assist HVAC with maintenance life cycle costs. Lowered 3 existing units to meet new manufacturer s specification Addition of hail guards for all new and existing ground mounted PCA units. Addressed subpar single casters for hose trollies, vendor replaced them with new 3 wheel casters. 10
11 Before BUDGET Submitting OVERVIEW to PowerPoint Review Original Budget Actual Expense % of Budget Budget % of Const EAC Delta Design & Construction Admin 2.2% 226, % 198,800 (27,200) Construction 83.4% 8,484,774 8,555,248 70,474 Construction Management 2.5% 254, % 284,236 29,693 Contingency 8.3% 848, % 778,003* Permit 1.3% 127, % 50,879 (76,393) Commissioning 1.7% 169, % 110,762 (58,933) ROCIP 0.6% 60, % 60,321 Total Project Cost: 10,171,082 10,038,249 ($62,359) * Contingency to be returned 11
12 PROJECT SUCCESSES AND ACCOMPLISHMENTS Completed project with zero safety incidents. Successfully addressed and resolved major equipment performance issues with equipment vendor Twist Aero Discharge air temperatures Lack of vibration isolation in the refrigeration circuits. Faulty casters on hose trolleys Completed original scope 137 days ahead of schedule. Contract substantial completion date 2/17/2017 Actual substantial completion date 10/2/2016 Change order were held to.83% of original contract value 12
13 Before Submitting to PowerPoint Review LESSONS LEARNED Significant issues with PCA vendor Possible solutions Kick-off meeting with vendor on-sight staff to set expectation and communications protocols. Good Communication All gate closures were completed successfully One point of contact for United was efficient Clear and consistent communication with DEN Operations 13
14 KPIs 2016: Be Proud, start running 14 AIM - Facility Services All Objectives List of Activities Operational Excellence Key Performance Indicators Financial Performance Investing in Sustainability Inspiring Employees Winning Hearts of Customers Building Airport City Putting DIA on World Map nd Quarter 3 rd Quarter 4 th Quarter Goal (Target) April May June July AUG SEP OCT NOV DEC 2016 Deliver all approved projects within budget 80% X X X X X Deliver all approved projects on time 80% X X X X X Projects 80% Closeout on under time 90 days X X X X 0% 33% 39.6% Minimize Change Orders 15% X X X X 2.16% 2.10% 4.71% 3.8% 4.39% 3.82% 3.92% 4.12% 3.5% All employees will be provided personal protective equipment (PPE) necessary for their position Close to 100% 100% X X X 42.8% 98.1% 88.4% Respond to Requests for Information (RFIs) in less than 5 business days 95% X X 77.78% 85.04% 59.20% 83.8% 92.86% 88.51% 87.5% 74.73% 83.5% Respond to Contractor Submittals within 14 calendar days. 95% X X X 95.05% 92.04% 94.65% 93.8% 85.75% 81.57% 90.28% 87.39% 88.2% Monthly 1 x 1 100% X X X X X X 100% 95.50% 50% 100% 75% Close to 100% Excellent numbers for 2016 In 2017, Unifier should make this data more solid and less manual Developing KPI! in But this is an awesome start PPE, is the responsibility of the P. 1:1 s are a 2 way street
15 Who?: 15
16 Thank You for your participation David Mashburn, Director of Facility Services DENVER INTERNATIONAL AIRPORT February 8, 2017
17 PROJECT CLOSEOUT PROCESS & PROCEDURES MARY HENDERSON-REPS, CONTRACT ADMINISTRATOR DENVER INTERNATIONAL AIRPORT FEBRUARY, 2016
18 CLOSEOUT PROCESS - Closeout is defined as being The period that represents the time when the Project Manager reviews the Project, verifies that all the Contract Document requirements have been met and the systems or facility is functioning as intended. - The Closeout Process begins at the beginning of the Job. - Five Steps to the Process: - Step 1 Issuance of Closeout Checklist to Contractor - Step 2 Substantial Completion - Step 3 Final Completion - Step 4 Advertisement - Step 5 Retention Billing 2
19 Step 1 Closeout Checklist to Contractor The Closeout Checklist should be reviewed by the DIA Project Manager (PM) and Contract Administrator (CA) and edited for any Non-Applicable Items. The CA issues the Closeout Checklist (CM-75) within the Bid Documentation. The purpose of this change is to begin the Closeout Process at the beginning of the Project. Contractor reviews and provides a Serial Letter stating which Items they believe are Non-Applicable or can be closed and why. Contractor provides required Closeout documentation throughout the Project or Task. Originals must be provided for the Consent of Surety and all Subcontractor Lien Releases. 3
20 Step 2 Substantial Completion The City & County of Denver General Conditions (Yellow Book) defines Substantial Completion as the Work has progressed to the point that the City can take beneficial occupancy or utilize the Work for the purpose that is intended, and the Work complies with all applicable coded and regulations, including if required, issuance of a Certificate of Occupancy, or certificate of suitability for use from appropriate governmental agencies, as determined by the Manager in his sole discretion. Contractor will request Substantial Completion on their company s letterhead accompanied by the Punch List (CM-74) prepared during the Walk-thru with the Project Managers, Designer of Record, and Quality Assurance Inspector (QA). CA will fill out the Request for Substantial Completion to be routed for signatures. 4
21 Step 3 Final Completion Final Completion will be issued when the following criteria have been met: Contractors portion of the Closeout Checklist is complete. All Original Subcontractor Final Lien Releases have been provided by the Contractor. All RFI s have been answered and Submittals have been provided, accepted and the Logs have been closed. All NCR s and Deficiencies have been addressed, remediated, and accepted by QA and DIA s PM. All Contractors Change Requests and Change Orders have been issued and executed, including the Final Reconciliation Change Order if applicable. Deductions have been made for liquidated damages or work not provided if applicable. Final Completion inspection has been made and there are no open items on the Final Punch List. Final Punch List has been signed off by the PM, DOR, and QA. Disposition of all failing tests have been agreed to or remediated and signed off. All Permits have been signed off, closed and provided to the Project Management Team (PMT). All Owner training has been completed to DIA s end user satisfaction. All Spare Parts and O & M Manuals have been turned over to DIA if applicable. 5
22 Step 4 Project Advertisement When Final Completion and Acceptance has been issued and executed, the CA will Request Advertisement from Business Management Services (BMS). Contractors Consent of Surety from their Bond Issuance company must be included. This can be attained with the executed Substantial Completion document. Advertisement will be scheduled and run for 21 consecutive days giving any parties with claims to the Project an opportunity to file for Claim. A Notice of Settlement is issued by BMS and notification sent to the PMT. 6
23 Step 5 Retention Billing Final Billing or Retention billing may be requested by the Contractor when the following criteria have been met: Executed Final Completion. Contractor s Settlement Publication Advertisement has expired. Sales Tax Exemption Certificate has been provided. Original Final Lien Releases have been provided. Completed Closeout Checklist. Original Consent of Surety has been provided. Contractors Affidavit of Completion has been provided. Statement of Accounting from the Contractor has been provided. Billing for Retention is essentially the same as all other billings, but must be billed separately from all other Tasks or billings. Once Retention has been billed and paid, other than any Warranty work that arises, the Project is considered closed. 7
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25 Project Closeout: Legal Issue Max Taylor, Assistant City Attorney DENVER INTERNATIONAL AIRPORT Tuesday, February 08, 2017
26 Legal Overview of CCD - DIA Denver is a Home Rule City Rules and Regulations Bond Ordinance Yellow Book 2
27 3 Yellow Book General Conditions
28 Title 12 Contract Claims for Adjustment and Disputes 4
29 Title 13 Disputes GC 1301 Disputes D.R.M.C Subcontractors Verified Statement of Claim C.R.S Final Settlement & Publication Bonding Over/Around C.R.S
30 Title 15 Performance and Payment Bonds 1502 Performance Bond 1503 Payment Bonds 6
31 Title 16 Insurance and Indemnification 1601 Insurance 1602 Defense and Indemnification 7
32 Title 17 Inspection and Defects 1701 Construction Inspection by the City 1702 Authority of Inspectors 1703 Observable Defects 1704 Defects Uncovering Work 1705 Latent Defects 1706 Removal of Defective Materials and Work 8
33 Title 18 Warranties, Guarantees and Corrective Work 1801 Contractor s Warranties, Guarantees and Correction of Work 1802 Performance During Warranty Period 9
34 Title 19 Substantial Completion of the Work 1901 Contractor s Notice of Substantial Completion 1902 Inspection and Punch List 1903 Certificate of Substantial Completion 1904 Right of Early Occupancy or Use 10
35 Title 20 Final Completion and Acceptance of the Work 2001 Clean-Up Upon Completion 2002 Final Completion and Acceptance of the Work 2003 Final Settlement 11
36 Project Goals DSBO - Denver Small Business Office SBE - Small Business Enterprise MWBE - Minority / Women Owned Business Goods and Services DBE - Disadvantaged Business Enterprise ACDBE - Airport Concession Disadvantaged Business Enterprise Navigating Legal Issues
37 Prevailing Wage D.R.M.C , et seq D.R.M.C & Yellow Book Title 10 Contract Exhibit Failure to Pay: YB 1005 Practical Information: LCP Tracker Online submittals Weekly payroll System verifies classifications Contact: (720)
38 Max Taylor, Assistant City Attorney
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