Is Your District Ready For the New Law?

Is Your District Ready For the New Law? Ben Pintabona Operations Manager Scaparotti Construction Group Craig Weise Construction Reform Program Director Ohio School Facilities Commission Sylvia Gillis, Esq. Partner Bricker & Eckler Gary Balog, AIA President and CEO Balog Steines Hendricks & Manchester

HOUSE BILL 153 HB 153 signed into law in June of 2011 changed how construction projects are purchased and delivered for public owners in Ohio Before HB 153 public projects followed Design, Bid and Build under a Multiple Prime Contracting Requirement

DESIGN / BID / BUILD Owner Architect Prime Prime Prime Prime Prime

DESIGN / BID / BUILD Owners hired an Architect Architect Designed the project Prepared the plans Managed the Bid Oversaw the construction process

AGENCY CM Construction Manager Owner Architect Prime Prime Prime Prime Prime

AGENCY CM Owners hired a Construction Manager Construction Manager Acted as Owner s Agent Planned, coordinated, managed all phases of project EXCEPT actually performing any of the construction

BEFORE HB 153 DBB and CMa projects had to be awarded to separate branches or classes of work Minimum of five Prime Contracts General Trades Plumbing Fire Protection HVAC Electrical

AFTER HB 153 Design, Bid, Build is STILL available to public Owners What does HB 153 offer public owners today? Single Prime Design/Build Construction Manager at Risk

SINGLE PRIME Owner Architect General Contactor

SINGLE PRIME One who manages the entire construction phase of the project Owner still hires a designer/architect and it is publically bid Work is awarded to a single contractor who actually constructs the building hires different trades and subcontractors buys materials and delivers the finish product under a lump sum bid

SINGLE PRIME What are the advantages? Simplifies risk to the Owner Simplifies the management of the project One contact, one phone call

DESIGN / BUILD Owner Design/Build Architect

DESIGN / BUILD Single person (firm) responsible to the Owner for the design and construction Owner hires a criteria architect Prepares conceptual plans and specifications and prepares design criteria brick veneer, standing seam metal roofs, geothermal HVAC and fully integrated lighting controls leading to LEED Silver Certification

DESIGN / BUILD Design/Build firm goes through a Best Value, two-step selection process Owner solicits requests for qualifications Similar project experience Financial Capacity Resources available to commit to project Past Performance

DESIGN / BUILD Top 3 firms are ranked based upon qualifications Firms given project details and asked to submit a proposal Pricing for design Pricing for preconstruction services Design/Build fee Firms ranked on pricing proposals Agreement is negotiated with the top-ranked firm

DESIGN / BUILD Design/Build process calls for a Guaranteed Maximum Price (GMP) Established about 2/3 through the design process Entire process can be managed open-book All bids, all buy-out, all information shared with Owner

DESIGN / BUILD What are the advantages? Single point of responsibility Early knowledge of what the full cost will be Several concepts to choose from Faster completion than traditional DBB process

CM AT RISK Owner Construction Manager Architect

CM AT RISK CM acts as Owner s Agent during design phase for Guaranteed Maximum Price

CM AT RISK CMAR is a three step process 1. Owner defines criteria for pricing and performance 2. Assembles Evaluation Committee to recommend CMAR based on Best Value to Owner and agreement is negotiated 3. CMAR prepares and Owner negotiates GMP

CM AT RISK What are the advantages? CMAR offers Owner preconstruction services: design review, scheduling, cost estimation Schedule is compressed open book GMP with an early price guarantee Risk management is more collaborative (Change Orders!)

HOUSE BILL 153 What project delivery method is right for you? What is your risk tolerance? What are your budget constraints? What is your management style?