Marketing is Everything

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Bowen Engineering Presentation on marketing in constructions

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Resourceful. Responsive. Results.

Steve Jobs

Harvard Business ReviewMarketing Is Everything

OWNER

ESCO

OWNER

ESCO

OWNER

ENGINEERING

Changes and Updates to the Marketing Model

• Engineer Maintains Control of Client

• Drove True Partnership Relationship

• Understand Perception of Board/Rate Payers/Voters

• Spoke to Alternative Procurement vs. Energy Savings

• Confidence in Contractor

• Faster Delivery

• Flexibility

• No Change Orders / Cost Control

• Open Book Pricing + Savings Back to Owner

• Pioneered Trust with the State Revolving Fund (SRF)

Past Marketing Experiences

OWNER

ENGINEERING

Harvard Business ReviewMarketing Is Everything

John Dettman

VP of Operations

Steve Nutt

Director of Performance

Contracting

Mark Cvetkovich

Project Manager

Jared Weber

Project Engineer

Chris Manges

Operations Manager

Teddy Deahl

Energy Engineer

Rob Morton

Lead Estimator

Matt Meyer

Project Engineer

REDUCING RISK FOR THE OWNER, ENGINEER AND CONTRACTOR BY UTILIZING A GUARANTEED SAVINGS CONSTRUCTION CONTRACT FOR COMPLEX CSO / STORMWATER PROJECTS IN MUNCIE

• ABOUT MUNCIE AND THE MUNCIE SANITARY DISTRICT (MSD)

• PROJECT OVERVIEW: Muncie Storm Water Conveyance Project

• AREAS OF RISK FOR THE Owner, Engineer & Contractor

• RISKS Avoided & SAVINGS UTILIZATION

• Guaranteed Savings Contract (GSC) Code

• CONSTRUCTION PHOTOS & POSITIVE PROJECT OUTCOMES

• Future of Underground GSCs in Indiana

WHAT WE’LL COVER

FOR TODAY…

www.munciesanitary.org

High Profile, URBAN, DIFFICULT, FAST-TRACKUNDERGROUND PROJECT

PROJECT OVERVIEW: MUNCIE STORMWATER CONVEYANCE PROJECT

MUNCIE SANITARY DISTRICT STORM WATER CONVEYANCE & CSO SEPARATION

A CHALLENGING PROJECT

Installation of piping and structures to convey stormwater from the ARC Hotel & Parking Structure, at Victor Street andcontinue along High Street / Franklin Street to Gilbert Street where it discharges into the White River.

Project also furthers compliance with IDEM-mandated CSO Separation.

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A CHALLENGING PROJECTMUNCIE SANITARY DISTRICT STORM WATER CONVEYANCE & CSO SEPARATION

MUNCIE SANITARY DISTRICT BOWENTHE OWNER THE CONTRACTOR

MUNCIE SANITARY DISTRICT STORM WATER CONVEYANCE & CSO SEPARATION

THE PROJECT TEAM

UNITED CONSULTINGTHE ENGINEER

LOCAL SUPPLIERSAND SUBCONTRACTORS

FOR THE OWNER, ENGINEER, CONTRACTOR

AREAS OF RISK

MUNCIE SANITARY DISTRICTTHE OWNER

MUNCIE SANITARY DISTRICT STORM WATER CONVEYANCE & CSO SEPARATION

OWNER PROJECT RISK

TOUGH TIMELINE

MANAGING PROJECT COST

PROJECT SAFETY

PUBLIC PERCEPTION

MUNCIE SANITARY DISTRICT STORM WATER CONVEYANCE & CSO SEPARATION

DESIGN ENGINEER PROJECT RISK

MANAGING OWNER’S AGGRESSIVE TIMELINE

PROJECT COST OVERAGES

DEALING WITH PROJECT UNKNOWNS

UNITED CONSULTINGTHE ENGINEER

SUCCESSFULLY EXECUTING DIFFICULT WORK

BOWENSELF-PERFORM CONTRACTOR

MUNCIE SANITARY DISTRICT STORM WATER CONVEYANCE & CSO SEPARATION

CONTRACTOR PROJECT RISK

SUCCESSFULLY EXECUTING DIFFICULT WORK

SAFETY

WEATHER/SOIL CONDITIONS

DEALING WITH PROJECT UNKNOWNS

LOCAL SUPPLIERSAND SUBCONTRACTORS

RISKS AVOIDED & SAVINGS UTILIZATION

STORMWATER GSC CSO

RISKS CONFRONTED AND AVOIDED

WEATHER DELAYS Unknown UTILITY LINES SCOPE CREEP PUBLIC CONCERNS CHANGE ORDERS

OPEN BOOK COST SAVINGS GENERATED

PLANNING / TRUST TIMING AND SCHEDULING MATERIALS SAVINGS PRODUCTION GAINS

$1.5M IN GSC SAVINGS UTILIZATION = VALUE ENGINEERING = COMMUNITY BENEFIT

PLANNING / TRUST TIMING AND SCHEDULING MATERIALS SAVINGS PRODUCTION GAINS

SS on Franklin, Sw Ps FM Outfall on Adams, Additional BMP Canal Features, Levee Piping Upgrades, CSO 001/004 Additional Neighborhood Features, CSO 028 Separation on SR-32

GUARANTEED SAVINGS CONTRACT (GSC) CODE

GUARANTEED SAVINGS STATUTE OVERVIEW (36-1-12.5)

PHOTO CAPTION

WHAT IS GSC?

ALTERNATIVE TO PUBLIC WORKS STATUTE

SAVINGS > COST OF THE PROJECT OVER 20 YEARS

CONTRACTOR MUST BE A QUALIFIED PROVIDER

QUALIFICATION-BASED SELECTION (37 DAY PROCESS)

SAVINGS ARE REPORTED TO THE dlgf

SAVINGS INCLUDE:

ENERGY WATER/WASTEWATER

PARTS/MAINT.

s

CAPITAL COST EXP.

TRADITIONAL v. GUARANTEED SAVINGS CONTRACT

TRADITIONAL GSC

LUMP SUM PRICECHANGE ORDERS

LOW BID CONTRACTORLOW BID SUBCONTRACTORS

LIQUIDATED DAMAGES60-DAY BID

FIXED SCOPENO CONSTRUCTION SAVINGS

SRFENGINEER WORKS FOR OWNER

GMP (OPEN BOOK PRICING)NO CHANGE ORDERSGUARANTEED BOWEN QUALITYPREFERRED SUBCONTRACTORS (LOCAL)LIQUIDATED DAMAGESSELECTION COMPLETEDFIXED SCOPE + WISH LIST ITEMSCONSTRUCTION SAVINGSCOMPLIMENTS SRF (8 + GPR) ENGINEER CAN WORK FOR OWNER

REDUCING RISK

‣Scope‣Standards‣Financing‣Completion Date‣Function

‣Project Schedule‣Production‣Value Engineering‣Quality Control‣Safety

‣Permitting‣Design Concept‣Eng. Cost Control‣Project Function‣Eng. Schedule

SuccessfulProjectOutcome

Engineer

OWNER

CONTRACTOR

EARLY CONTRACTOR INVOLVEMENT INCREASES VALUE

CONSTRUCTION PHOTOS & POSITIVE PROJECT OUTCOMES

B O O K E R I N F O

PROJECT HIGHTLIGHTS

PHOTO CAPTION

B O O K E R I N F O

PROJECT HIGHTLIGHTS

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B O O K E R I N F O

PROJECT HIGHTLIGHTS

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B O O K E R I N F O

PROJECT HIGHTLIGHTS

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B O O K E R I N F O

PROJECT HIGHTLIGHTS

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B O O K E R I N F O

PROJECT HIGHTLIGHTS

PHOTO CAPTION

B O O K E R I N F O

PROJECT HIGHTLIGHTS

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B O O K E R I N F O

PROJECT HIGHTLIGHTS

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B O O K E R I N F O

PROJECT HIGHTLIGHTS

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B O O K E R I N F O

PROJECT HIGHTLIGHTS

PHOTO CAPTION

ARC Under construction down High Street

HIGHLIGHTSCOMPLETED ON TIME

CONSTRUCTION COST SAVINGS

LOCAL BUSINESSES INVOLVED

COLLABORATIVE TEAM SPIRIT

WISH LIST ITEMS INCLUDED

(BMP) CANAL SOLUTION

MUNCIE SANITARY DISTRICTTHE OWNER

MUNCIE SANITARY DISTRICT STORM WATER CONVEYANCE & CSO SEPARATION

PROJECT RISKS MANAGED WITH OPTIMAL OUTCOME

THIS HAS BEEN THE BEST CONSTRUCTION PROJECT THAT I HAVE BEEN ASSOCIATED WITH DURING MY TIME AS DISTRICT ADMINSTRATOR.

“”NiKKI GRIGSBY

DISTRICT ADMINISTRATORMUNCIE SANITARY DISTRICT

2015 Top NOTCH AWARDS

B O O K E R I N F O

PROJECT HIGHTLIGHTS

PHOTO CAPTION

18 of 47 (38%) BOWEN HAVE UNDERGROUND COMPONENT

UNDERGROUND GSC PROJECTS

West Lafayette-$2,115,000Lafayette-$4,600,000Lafayette-$950,000Lafayette-$898,000Lafayette-$2,515,000Lafayette-$9,380,000Lafayette-$7,040,000Lafayette-$2,190,000Lafayette-$12,653,000Lafayette-$4,637,000Lebanon-$1,770,000Lebanon-$1,240,000Plainfield-$7,290,000Plainfield-$4,260,000Plainfield-$3,700,000Plainfield-$472,000Plainfield-$390,000Plainfield-$3,980,000Plainfield-$1,351,500Plainfield-$4,376,000Plainfield-$4,123,350Brazil-$790,000Hobart-$266,000

Valparaiso-$606,950Valparaiso-$2,135,007Valparaiso-$14,532,000Bremen-$2,086,000Goshen-$3,300,000Butler-$687,000Butler-$950,635Butler-$1,098,646Butler-$1,403,000Garrett-$3,390,000Huntington-$10,370,000Winchester-$490,000Battle Ground-$2,790,000Russiaville-$826,000Tipton-$5,539,000Yorktown-$1,277,000Muncie-$10,587,000Muncie-$1,700,000Westfield-$3,900,000Fishers-$1,960,000Fishers-$1,244,000Greenfield-$700,000Columbus-$2,600,000Bloomington-$1,512,000

WHAT iS THE NEXT GSC FORMUNCIE SANITARY DISTRICT?

STEVE NUTTSNUTT@BOWENENGINEERING.COM

QUESTIONS? MICHAEL CLINE, P.E. MCLINE@b-L-N.COM