PLANNING AND PRE-DESIGN THE CONSTRUCTION SPECIFICATIONS INSTITUTE 110 South Union Street, Suite 100 Alexandria, VA 22314-3351 www.csinet.org CDEP 1.0.1: 03-1 Copyright Materials This presentation is protected by US and International Copyright laws. Reproduction, distribution, display and use of the presentation without written permission of the speaker is prohibited. The s Specifications Institute 2009 CDEP 1.0.1: 03-2
Continuing This program is a registered educational program with the Specifications Institute of Alexandria, VA. The content within the program is not created or endorsed by CSI nor should the content be construed as an approval of any product, building method, or service. Information on the specific content can be addressed at the conclusion on the program, by the Registered Provider. CSI is a Registered Provider with the Specifications Institute Network (CEN). Credit earned for completing this program will automatically be submitted to the CSI CEN. Completion certificates can be obtained by contacting the Provider directly. This logo and statement identify Provider programs registered with CSI CEN and are limited to the educational program content. CDEP 1.0.1: 03-3 Continuing The Specifications Institute is a Registered Provider with The American Institute of Architects Continuing Systems. Credit earned on completion of this program will be reported to CES Records for AIA members. Certificates of Completion for non-aia members are available on request. This program is registered with the AIA/CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation. CDEP 1.0.1: 03-4
Learning Objectives 1. Learn how decisions about the project delivery method affect the relationships between participants on the project team and how the participants will work together to design and construct a facility. 2. Understand the benefits and limitations of each of the project delivery methods and the contractual relationships between each of the participants. 3. Project and the decisions and factors affecting services and documentation required including contract types, delivery methods, team selection, and commissioning. 4. Understand the basics of selecting team members and the documents used to evaluate qualifications. 5. Understand the scope of total project commissioning and how it is carried out. CDEP 1.0.1: 03-5 Session Outline Design-Bid-Build Design-Negotiate-Build Management Owner-Build Team Selection Process Commissioning Process CDEP 1.0.1: 03-6
Method Defines Participants Relationships Responsibilities PRM 3.4 CDEP 1.0.1: 03-7 PRM 3.4 Basic Design-Bid-Build Design-Negotiate-Build Management CMa: Manager Advisor CMc: Manager Contractor Owner-Build CDEP 1.0.1: 03-8
Design-Bid- Build PRM 3.4.1 Design-Bid-Build Traditional Method Linear Project Sequence Conception Design Bidding Design completed prior to Bidding Competitive Bidding Public Projects CDEP 1.0.1: 03-9 Design-Bid- Build Design-Bid-Build Roles A/E DESIGN/ PREPARE CD S/ ADMINISTER CONTRACT CONTRACT OWNER INITIATE/ FUND/ OPERATE PRM 3.4.1.2 CONSULTANTS Agreements Owner & A/E A/E & Consultants Owner & Contractor Contractor & subcontractors CONTRACT CONTRACTOR BUILD/SUBCONTRACT /PROCURE SUPPLIERS SUBCONTRACTORS CDEP 1.0.1: 03-10
Design-Bid- Build PRM 3.4.1.2 Design-Bid-Build Roles A/E DESIGN/ PREPARE CD S/ ADMINISTER CONTRACT CONSULTANTS CONTRACT THIRD PARTY OBLIGATIONS Contract is between Owner & Contractor Contract documents prepared by A/E are part of Contract OWNER INITIATE/ FUND/ OPERATE CONTRACT CONTRACTOR BUILD/SUBCONTRACT /PROCURE SUPPLIERS SUBCONTRACTORS CDEP 1.0.1: 03-11 Design-Bid- Build Design-Bid-Build Roles Owner Contracts with A/E Obtains Pricing Competitive Bid Negotiation Contracts with Contractor PRM 3.4.1.2.1 CDEP 1.0.1: 03-12
Design-Bid- Build PRM 3.4.1.2.2 Design-Bid-Build Roles Architect/Engineer (A/E) Selected by Owner Provides Design Services Assists Preparation of Bid Provides Administration Process Submittals Requests for Interpretation Payment Procedures Closeout CDEP 1.0.1: 03-13 Design-Bid- Build Design-Bid-Build Roles Contractor Submits Bid Selected by Owner Contracts with Owner Constructs Project PRM 3.4.1.2.3-5 CDEP 1.0.1: 03-14
Design-Bid- Build Design-Bid-Build Roles Subcontractor & Suppliers Submit Bids to Contractor Selected by Contractor Contracts with Contractor Provides Services PRM 3.4.1.2.3-5 CDEP 1.0.1: 03-15 Design-Bid- Build Design-Bid-Build Roles Product Representatives Resource for Owner A/E Contractors Subcontractors Suppliers PRM 3.4.1.2.3-5 CDEP 1.0.1: 03-16
Design-Bid-Build Design-Bid- Build PRM Fig. 3.4-A CDEP 1.0.1: 03-17 Design-Bid- Build PRM 3.4.1.3 Design-Bid-Build Benefits Industry Familiarity Roles & Responsibilities Established Project Schedule established in advance Owner Participates Design Owner has greatest Control Competitive Bidding provides best price CDEP 1.0.1: 03-18
Design-Bid- Build Design-Bid-Build Limitations Linear sequence extends Project Schedule Bids may exceed Budget Adversarial Relationships Low Bids may encourage change orders Little margin for errors PRM 3.4.1.4 CDEP 1.0.1: 03-19 Design-Bid- Build PRM 3.4.1 Design-Negotiate-Build Similar to Design-Bid-Negotiate Linear Project Sequence Conception Design Bidding Design completed prior to Bidding Contractor establishes Price & Negotiates with Owner CDEP 1.0.1: 03-20
Design-Bid- Build Design-Negotiate-Build Roles of Participants Tripartite Relationship Third Party Obligations PRM 3.4.1.2 CDEP 1.0.1: 03-21 Design-Bid- Build Design-Negotiate-Build Roles Owner Contracts with A/E Researches Contractors Selects Contractor(s) Negotiates Contract Contracts with Contractor PRM 3.4.1.2.1 CDEP 1.0.1: 03-22
Design-Bid- Build Design-Bid-Build Roles Architect/Engineer (A/E) Selected by Owner Provides Design Services Design Provides Value Engineering Provides CA Services PRM 3.4.1.2.3 Negotiated agreements may expand or limit responsibilities CDEP 1.0.1: 03-23 Design-Bid- Build PRM 3.4.2.2.2 Design-Negotiate-Build Roles Contractor Selected by Owner Negotiates Price/Contract Joins Team during Design Advises Design Team Details Constructability Schedule Costs Manages Establishes Means & CDEP 1.0.1: 03-24
Design-Bid- Build Design-Negotiate-Build Roles Subcontractor, Suppliers, Product Representatives Roles similar to Design-Bid-Build Potential Advisor Role during Design PRM 3.4.2.2.4 CDEP 1.0.1: 03-25 Design-Negotiate-Build Design- Negotiate-Build PRM Fig 3.4-B CDEP 1.0.1: 03-26
Design- Negotiate-Build PRM 3.4.2.3 Design-Negotiate-Build Benefits Contractor Selected for Experience Expertise Financial Capacity Reputation Cost not only Factor Contractor Participates in Design Refine Cost Estimates Value Analysis & evaluate Alternate Products Reduce Costs & Time Clarify ambiguities in CDEP 1.0.1: 03-27 Design- Negotiate-Build PRM 3.4.2.4 Design-Negotiate-Build Limitations Contract based on Partial Requires Modifications Unforeseen Circumstances Claims & Disputes Increased Cost Absence of Competition Negotiated Price based on Partial Owner Contracts without total Cost CDEP 1.0.1: 03-28
Management PRM 3.4.3 Management Hired by Owner Professional Management: Conception through Supplements Owner s Expertise: Cost Estimating Cost Management Scheduling Constructability Reviews Value Analysis Responsibilities Vary Typically utilized on Complex Projects CDEP 1.0.1: 03-29 Management Management Options CMa: Manager as Agent/Advisor CMc Manager as Contractor PRM 3.4.3 CDEP 1.0.1: 03-30
Management Manager Advisor Owner Maintains Contractual Relationships Bears financial risk PRM 3.4.3.1 CMa Advises Owner Provides Expertise for Owners CDEP 1.0.1: 03-31 Management Manager Advisor Consultant Manager CCA CM Contract CCA Consultant Contracts A/E A/E Owner Design Contract Consultant Contracts Contractor Sub Sub Subcontracts Sub Contractor Sub Sub Contractor Sub Sub CDEP 1.0.1: 03-32
Manager Advisor Management PRM Fig. 3.4-C CDEP 1.0.1: 03-33 Management Manager Contractor Owner Contracts with A/E for Design Negotiates Contract with CMc PRM 3.4.3.1 CMc Executes as Contractor Bears Financial Risk Manager at Risk CDEP 1.0.1: 03-34
Manager Contractor Management PRM Fig. 3.4-D CDEP 1.0.1: 03-35 Management PRM 3.4.3.3 Management Roles Owner Establishes Budget Requirements Selects & Contracts A/E Manager Contract: CMa: Contractor CMc: Manager is Contractor Acts on CM Recommendations CDEP 1.0.1: 03-36
Management PRM 3.4.3.3.3 Management Roles A/E Similar to Design-Bid-Build Prepares Alternate Designs Provides Design Satisfying Owner s Requirements Meeting Applicable Codes & Ordinances Selects Materials Coordinates with CM for constructability and budget CDEP 1.0.1: 03-37 Management PRM 3.4.3.3.3 Management Roles A/E Role may Diminish during Responsibilities that may shift to CM Prequalification of Bidders Evaluating Change Orders On Site Representation Processing Submittals Processing Payment Applications Providing Interpretations Preparing Change Orders Resolving Claims Communicating with Owner CDEP 1.0.1: 03-38
Management PRM 3.4.3.3.2 Management Roles Manager Develops Management Plan Project Description Milestone Schedule Project Schedule Project Organizational Chart Establishes Participants Responsibilities Activities Bid Packaging, Contract Scoping & Strategy Site Mobilization & Use Plan Site Safety Verifies Completed Project meets Requirements CDEP 1.0.1: 03-39 Management PRM 3.4.3.4 Management Benefits CM Provides Additional Expertise Coordination Information Management Cost Management Time Management Quality Assurance Job-Site Safety CDEP 1.0.1: 03-40
Management Management Benefits Additional Expertise Assist Design Constructability Reviews More Effective Cost Management Early Purchase lowers Cost More Accurate Project Schedules Avoid Redesign PRM 3.4.3.4 CDEP 1.0.1: 03-41 Management PRM 3.4.3.5 Management Limitations Not suitable for small & simple projects Increased Professional Fees Additional Participants Increased communication/paperwork Reduced Efficiency Increased Costs Owner relies on advice of one party Owner Communications restricted with A/E and/or Contractor CMc reluctant to make decision that influences CMc s profitability. CDEP 1.0.1: 03-42
Management Management Considerations Type of Project Owner s Management Resources Legal Requirements Availability of Managers PRM 3.4.3.6 CDEP 1.0.1: 03-43 Owner: Contracts with single entity for Complete Design & Services PRM 3.4.4 Entity: Provides Complete Design & Services under single contract CDEP 1.0.1: 03-44
Types Architect Lead: Contracts with Owner Subcontracts with Contractor Contractor Lead: Contracts with Owner Subcontracts Design with Architect PRM 3.4.4 Joint Venture Single Company Contracts with Owner CDEP 1.0.1: 03-45 PRM 3.4.4 3.4.4.1.1 Role Owner: Prepares Project Description of Requirements Project Budget Request for Proposals (RFP) Evaluates RFP Selects Design Build Entity Negotiates Contract Oversees Design & Quality CDEP 1.0.1: 03-46
PRM 3.4.4 3.4.4.1.2 Role Design Builder: Evaluates RFP Creates Proposal Schematic Design Preliminary Price Provides Constructs Project Warrants Project meets Requirements CDEP 1.0.1: 03-47 PRM 3.4.4 3.4.4.1.3 Role A/E: Similar to Design-Bid-Build Review Project Description Determines Design Prepares: Alternative Designs Preliminary Design Verifies Design Compliance Applicable Codes Project Budget Selects Materials CDEP 1.0.1: 03-48
Role Contractor: Design Phase Cost Estimating Logistics Project Management Advises on Systems & Material Selections Verifies Project meets Requirements PRM 3.4.4 3.4.4.1.3 CDEP 1.0.1: 03-49 PRM 3.4.4 3.4.4.1.3 Role Contractor: Phase Provides Materials Labor Equipment Determines Means, & Techniques Project Management Supervises CDEP 1.0.1: 03-50
Roles Product Representatives Provide: Information Alternative/Options Products meeting Requirements PRM 3.4.4.1.5 CDEP 1.0.1: 03-51 Roles Owner Design & Contract Consultant Subcontractor Consultant Contracts Consultant Design/Builder A/E -- Contractor Subcontracts Subcontractor CDEP 1.0.1: 03-52
PRM Fig. 3.4-E CDEP 1.0.1: 03-53 PRM 3.4.4.2 Benefits Single entity responsibility Greater control over project schedule and costs Applicability of Fast-Tracking Save time Reduce Costs Design and more Coordinated Better Product/System Selection Simpler Save Time Reduced Costs CDEP 1.0.1: 03-54
PRM 3.4.4.3 Limitations Owner lacks expertise to prepare project requirements A/E does represent Owner s interests Items Not Required Owner review may not be provided Product Data Samples Material Selections Specifications Shop Drawings Owner lacks Advisor Owner involved less in Design CDEP 1.0.1: 03-55 PRM 3.4.4.3 Limitations Active Owner management required for verification of : Submittal Review Site Observations Payment Application Review Dispute resolution may require more Owner s Time Expanded roles increases er Liability: Design & Cost Increases Schedule Extensions Contract Document Errors CDEP 1.0.1: 03-56
PRM 3.4.4.3 Project Considerations Project Type: Predictable Project Requirements Owner Ability to provide Project Requirements Legal Requirements Availability of Qualified Teams CDEP 1.0.1: 03-57 Owner-Build Consultant Consultant Contracts A/E Consultant Design Contract Subcontractor Owner-Builder Subcontractor Subcontractor Subcontracts Subcontracts Subcontractor CDEP 1.0.1: 03-58
Owner-Build Owner-Build PRM Fig. 3.4-F CDEP 1.0.1: 03-59 Owner-Build Owner-Build Owner Acts as Contractor Contracts with Subcontractors Similar to CMa PRM 3.4.5 CDEP 1.0.1: 03-60
Owner-Build PRM 3.4.5.1.1 Owner-Build Roles Owner Owner is Contractor In-House Capabilities Design Services Project Management Contract Administration Materials Purchasing Contract for Local A/E Services Typically: Large Scale Developers CDEP 1.0.1: 03-61 Owner-Build Owner-Build Roles A/E Varies with Owners Capabilities Reduces services: Procurement Administration PRM 3.4.5.1.2 CDEP 1.0.1: 03-62
Owner-Build Owner-Build Roles Subcontractor Subcontractors are Prime Contractors to Owner Selected by Owner Owner s limitations may Expand Subcontractor s Role PRM 3.4.5.1.3 CDEP 1.0.1: 03-63 Owner-Build PRM 3.4.5.1.4 Owner-Build Roles Product Representatives Direct relationship with Owner-Builder Potential Long Term Ongoing Relationship with Owner Provide Product Data Budget Information Availability CDEP 1.0.1: 03-64
Owner-Build Owner-Build Benefits More Flexibility over Project Outcome Cost Savings: Self-Perform Contractor Duties Greater Control of Project Cost & Time during PRM 3.4.5.2 CDEP 1.0.1: 03-65 Owner-Build PRM 3.4.5.3 Owner-Build Limitations Owner assumes Greater Risk No Performance & Payment Bond for Owner s Work No Recourse for In-House Design Errors, Discrepancies & Omissions Less direct labor and equipment than contractor requires more of subcontractors CDEP 1.0.1: 03-66
Owner-Build Owner-Build Considerations: Typically Large Corporate Entities Ability to take Associated Risks Usually Experienced & Engaged in similar projects PRM 3.4.5.4 CDEP 1.0.1: 03-67 Team Selection Team Selection Process Team Participant Requirements vary: Project Method Project Concept and Mission Project Requirements Project Type PRM 3.5.1 CDEP 1.0.1: 03-68
Team Selection Selecting A/E Evaluate Project & Determine Criteria: Experience Skills Reputation PRM 3.5.1 CDEP 1.0.1: 03-69 Team Selection Selecting A/E : Direct Selection/Negotiation Request for Proposal Design Competition PRM 3.5.2 CDEP 1.0.1: 03-70
Team Selection PRM 3.5.2.1 Selecting A/E Direct Selection/Negotiation Criteria: Prior Relationship Experience & Expertise Reputation Discussions & Negotiations Saves Time & Money Owner A/E CDEP 1.0.1: 03-71 Team Selection Selecting A/E Request for Proposal (RFP) Phone Call Letter Advertisement Government Agencies & Institutions Standard Forms PRM 3.5.2.2 CDEP 1.0.1: 03-72
Selecting A/E Team Selection PRM Fig 3.5-C CDEP 1.0.1: 03-73 Team Selection PRM 3.5.2.3 Selecting A/E Design Competitions Team Selection: Qualifications Proposed Solution Cost Schedule Requires Specific Requirements Allows: Unique & Holistic Solutions Requires Significant Work & Cost CDEP 1.0.1: 03-74
Team Selection Selecting Contractor : Competitive Bidding: Multiple Contractor Negotiating: Single Contractor Public Agencies Restrictions Typically at Procurement Stage PRM 3.5.3.1 Early Selection pending Method CDEP 1.0.1: 03-75 Team Selection PRM 3.5.3. Selecting Contractor Criteria Price Physical Capability Financial Capability Experience Project Quality Associations: Standard Forms Quality: Difficult to Document Contact References Visit Projects CDEP 1.0.1: 03-76
Team Selection Selecting Manager : Direct Selection/Negotiation Request for Proposal PRM 3.5.4 CDEP 1.0.1: 03-77 Team Selection Selecting Manager Criteria: Skills Required: Per Method Project Requirements Experience PRM 3.5.4 CDEP 1.0.1: 03-78
Team Selection Selecting er Clearly Convey Project Requirement: : Direct Selection/Negotiation Competitive Bidding PRM 3.5.5 CDEP 1.0.1: 03-79 Team Selection PRM 3.5.5 Selecting er Selection Criteria: Experience Design Capability Financial Condition Price CDEP 1.0.1: 03-80
Team Selection Selecting er Process: Request for Qualifications (RFQ): Format & Criteria for Qualification Submittal Prequalifies Bidders to receive RFP Narrows Bidder Field Issued with, or prior to RFQ PRM 3.5.5.1 CDEP 1.0.1: 03-81 Team Selection Selecting er Request for Qualifications Criteria: PRM 3.5.5.1 Licensing Experience Similar Projects Method Specific Experience Bonding Capacity Financial Statements Project Team Members Team Member s Experience Team Resources Organizational Participation MBE/DBE/WOB Project Records: Timely Completion Project Budget Change Orders Substitutions CDEP 1.0.1: 03-82
Team Selection Selecting er Process: Request for Proposals (RFP): Format & Criteria for Proposal Submittal Approved or Qualified Bidders Outlines Bidders Proposal Requirements PRM 3.5.5.1 CDEP 1.0.1: 03-83 Commissioning Total Project Commissioning Improve Quality of Process For all Project Systems & Components Throughout Facility Life Cycle PRM 3.5.7 CDEP 1.0.1: 03-84
Commissioning PRM 2.2.7 Commissioning Traditional Commissioning Validates Specific System HVAC Plumbing Electrical Total Project Commissioning Entire project or building Begins during project conception owner s project requirements Verifies achievement of requirements CDEP 1.0.1: 03-85 Commissioning Commissioning Engages Commissioning Agent Verifies Project Quality Independent Entity Hired by Owner PRM 3.5.7 CDEP 1.0.1: 03-86
Commissioning PRM 3.5.7 Commissioning Process Facility Life Cycle Stages Project Conception: Document Project Requirements Each Stage: Monitor Requirements Incorporated Verify Achievable Results Facility Management: Verify Achievement of Requirements Verify Proper Operation CDEP 1.0.1: 03-87 Session Outline Design-Bid-Build Design-Negotiate-Build Management Owner-Build Team Selection Process Commissioning Process CDEP 1.0.1: 03-88
This concludes the program for The Specifications Institute Network and The American Institute of Architects Continuing Systems and Session 3 of CSI CDEP CDEP 1.0.1: 03-89