PROJECT DELIVERY METHODS

Transcription

1 Understanding the Construction Contract Project Delivery Methods ISBA April 7,2017 Copyright 2017 by K&L Gates LLP. All rights reserved. Design Bid Build Design Negotiate Build Construction Manager Advisor Construction Manager At Risk Design Build IPD klgates.com 2 4/6/17 1

2 Design Bid Build In some case a CM (Advisor) will be hired by the Owner either prior to or after retention of architect Owner A/E agreement Design is generally at least 90% Complete before selection of Contractor Begins Owner Contractor Agreement Generally competitively bid on the basis a lump sum, unit prices or combination of both lump sum and unit prices klgates.com 3 Design Negotiate Build A/E retained to complete design CM (At Risk) hired during design to assist brining design within cost parameters, provide scheduling support, and to provide expertise such as value engineering and constructability assistance Alternatively Contractor is hired when design is nearly complete and a VE/GMP proposal is prepared Contracts are usually negotiated with one Constructor usually on a cost plus basis and a guaranteed price klgates.com 4 4/6/17 2

3 D B/N B Buildings AIA, ConsensusDocs Engineered Projects EJCDC Water Waste Water Power Generation and Transmission Industrial Use Transportation Communications klgates.com 5 Construction Manager (Advisor) CMA A CMA is hired during design to provide consulting services relative to estimating, scheduling and value engineering. Following completion of Design there are two alternatives: 1) The CMA assists the Owner in selecting prime subcontractors that contract directly with the Owner, but who are managed by the CMA; 2) The CMA assists the Owner in selecting a prime contractor on either a bid or negotiated basis klgates.com 6 4/6/17 3

4 Construction Manager at Risk (CMAR) CMAR is usually hired during design for estimating, value engineering, scheduling and trade procurement Initially a cost plus fee contract is negotiated with in some cases a consulting fee prior to construction activities Depending upon permit requirements certain construction activities such as demo and foundation can occur prior to completion of design At certain point in the design the CMAR will provide a GMP, schedule and value engineering proposal klgates.com 7 CM AIA, CMAA, ConsensusDocs klgates.com 8 4/6/17 4

5 Design Build Single Contract Covering Design and Construction Contract will usually have two phases Design Fee Basis Construction - Cost Plus Fee When the design reaches a certain level of completion in many cases a design builder will be required to submit a GMP proposal If the Owner is not satisfied with the GMP, the Owner takes a license to the design and can terminate the agreement klgates.com 9 DB Forms Buildings AIA, ConsensusDocs Engineered Projects EJCDC Hybrid - DBIA klgates.com 10 4/6/17 5

6 Integrated Project Delivery (IPD) Based upon an integrated Form of Agreement (IFOA) A single agreement with the Owner, A/E and Contractor Various Prime subcontractors can also be parties to the agreement Additional architects, engineers, subcontractors and suppliers can be members of the Profit Pool klgates.com 11 IPD The intent of the agreement is to promote collaboration with decisions made by committee The team works towards a target value At some point an Estimated Maximum Price is set based upon an estimated cost, plus a contingency, plus a Profit Pool If the estimated cost is exceeded, the contingency is used. Once the contingency is exhausted, the Profit Pool pays for overruns until it is exhausted. klgates.com 12 4/6/17 6

7 IPD Forms ConsensusDocs AIA klgates.com 13 Public Private Partnership (P3) Design Build Finance Operate Maintain klgates.com 14 4/6/17 7

8 P3 Forms EJCDC klgates.com 15 ANY QUESTIONS Justin L Weisberg Partner K&L Gates LLP 70 West Madison Suite 3100 Chicago, Illinois Phone: Justin.weisberg@klgates.com klgates.com 16 4/6/17 8