Co-Sponsored by: Construction Management Committee (APWA WA) Contract Administration Subcommittee (APWA-WA) Government Affairs Committee (APWA-WA) Municipal Research and Services Center (MRSC) Contracting Summit II April 5 th , 2016 Vancouver Convention Center 8:30 a.m. to 4:00 p.m. AGENDA 8:30 a.m. to 9:00 a.m. Coffee, Meet and Greet 9:00 a.m. to 9:30 a.m. Introductions, Overview and Housekeeping: Sam Yaghmaie, Harris & Associates 9:30 am to 10:30 a.m. Session A: Risk Assessment Session Coordinator - Jim Rioux – City of Olympia Agency - Steve Nichols – Kitsap County Contractor - Mike Myette - MM Construction Consulting Consultant -K Adams – KBA BREAK 10:40 am to Noon Session B: Constructability Reviews Session Coordinator - Sam Yaghmaie – Harris and Associates Agency - Kathryn Neal, City of Port Angeles Contractor - Kevin Duffy, Walsh Pacific Consultant - Sam Yaghmaie – Harris & Associates Noon Lunch Break 1:00 p.m. to 2:10 p.m. Session C: Contractor/Consultant Evaluations Session Coordinator - Peter DeBoldt - Perteet Agency - Aleanna Kondelis – Seattle Agency - Ron Kessack - City of Bellevue Consultant -Peter DeBoldt – Perteet BREAK 2:25 p.m. to 3:50 p.m. Session D: Collaborative Contracting: The Vancouver/Clark County Experience Session Coordinator - Heath Henderson –Clark County Agency - Dan Swenson - City of Vancouver Agency - Heath Henderson - Clark County Contractor - Kevin Tapani - Tapani Underground 3:50 p.m. to 4:00 p.m. Wrap-up Sam Yaghmaie, Harris & Associates
Transcript
Co-Sponsored by: Construction Management Committee (APWA WA)
Contract Administration Subcommittee (APWA-WA) Government Affairs Committee (APWA-WA)
Municipal Research and Services Center (MRSC)
Contracting Summit II
April 5th, 2016 Vancouver Convention Center
8:30 a.m. to 4:00 p.m.
AGENDA 8:30 a.m. to 9:00 a.m. Coffee, Meet and Greet 9:00 a.m. to 9:30 a.m. Introductions, Overview and Housekeeping: Sam Yaghmaie, Harris & Associates 9:30 am to 10:30 a.m. Session A: Risk Assessment
Session Coordinator - Jim Rioux – City of Olympia Agency - Steve Nichols – Kitsap County Contractor - Mike Myette - MM Construction Consulting Consultant -K Adams – KBA
BREAK 10:40 am to Noon Session B: Constructability Reviews
Session Coordinator - Sam Yaghmaie – Harris and Associates Agency - Kathryn Neal, City of Port Angeles Contractor - Kevin Duffy, Walsh Pacific Consultant - Sam Yaghmaie – Harris & Associates
Session Coordinator - Peter DeBoldt - Perteet Agency - Aleanna Kondelis – Seattle Agency - Ron Kessack - City of Bellevue Consultant -Peter DeBoldt – Perteet
BREAK 2:25 p.m. to 3:50 p.m. Session D: Collaborative Contracting:
The Vancouver/Clark County Experience Session Coordinator - Heath Henderson –Clark County Agency - Dan Swenson - City of Vancouver Agency - Heath Henderson - Clark County Contractor - Kevin Tapani - Tapani Underground
3:50 p.m. to 4:00 p.m. Wrap-up Sam Yaghmaie, Harris & Associates
Government Affairs Committee (APWA‐WA) Municipal Research and Services Center (MRSC)
Contracting Summit II
April 5th, 2015 Vancouver Convention Center
8:30 a.m. to 4:00 p.m.
Speaker Bios
Jim Rioux, Project Manager City of Olympia Jim has served as s Project Manager for the City of Olympia for the past 8 years. In that brief tenure Jim has successfully managed several large projects and has gained extensive experience in the areas in construction documentation on federally funded projects. Before joining the City of Olympia Jim worked for the Department of Health’s Drinking Water Program in the areas of water resource policy and management and water utility planning. Jim also has extensive experience in construction and maintenance. His resume includes serving as an operating engineer at sea for The University of Washington and the National Oceanic and Atmospheric Administration and overseeing the overhaul of nuclear powered naval vessels at Puget Sound Naval Shipyard in Bremerton, Washington. Jim has a Bachelor of Science in Marine Engineering; The United State Merchant Marine Academy, King’s Point, NY. 1984 and a Master of Environmental Studies, The Evergreen State College, Olympia WA 1997. He is the current chair of the APWA Washington Chapter, Government Affairs Committee. Steve Nichols, Construction Manager Kitsap County Steve has over 38+ years in the heavy civil construction field, and is currently the Construction Manger for Kitsap County Public Works Road and Stormwater groups. His department provides, inspection services, materials testing, design reviews, and contract administration for country projects. Over the course of his career Steve has worked for several local general contractors as a Project Manager/ Estimator managing large and small civil and environmental projects throughout the state. Steve spent 7 years working for the City of Tacoma as a Project Manager on several large infrastructure projects throughout the City including the Design Build Upgrade to their Central Treatment plant. He brings a wealth of knowledge regarding risk assessment having worked for both private contractors and public agencies during his career.. Mike Myette, President MM Construction Consulting LLC Mike is a registered Civil Engineer in the State of Washington. He is the President of MM Construction Consulting LLC a consulting firm in the Northwest that provides guidance and direction to public work agencies and contractors on design and construction issues in their everyday business. Mike has worked 20 years for two major civil contractors where he managed and bid public and private projects in excess of two hundred and fifty million dollars. These projects ranged in size from $25,000 to $250 million Mike spent 8 years with the Consulting Firm of Inca Engineers, a region leader in transportation and structural design projects where he developed and managed their Construction Services Department and also served as a design manager on various transportation projects.
Mike authored Inca’s Quality Control Manual and rose to an Associate Position during his stay at Inca. Mike while at Inca also provided guidance and direction to the design engineers on developing proper methods for estimates for their design work. Mike worked for 14 years for the Washington State Highway Department (WSDOT) where he reached the position of Project Engineer in 1975. at that time, his work with WSDOT involved managing Construction and Design Projects involving Interstate Highways, State Highways) and Urban Transportation Projects K. Wendell Adams, PE, Principal KBA K. Wendell Adams has over 30 years of experience with public works projects. As a Professional Engineer and successful City Engineer for much of his career, he has supervised and managed the construction, operations, and maintenance of complex city capital improvement projects. He has experience planning and building roads, bridges, water/wastewater treatment plants, utility systems, airport improvements, and general municipal projects. K. is an active member of APWA of Washington State and is deeply involved with the public works community. With his extensive industry background, local agencies look to him for advice on issues regarding project management, project funding, and construction management. Sam Yaghmaie, Marketing Director Harris and Associates Sam has 29 years of experience in design, QA Engineering, and Construction management of public and private projects managing design and construction of transportation, transit, public buildings, dams, tunnels, high rises, and water& wastewater infrastructures in WA. He has performed value engineering and biddabilty/ constructability reviews of many construction projects in order to minimize ambiguities that resulted in considerable controls of scope slippages and budget overruns. During his career, he has performed design, QA/QC Engineering, construction and project management on more than 45 projects in the State of WA including METRO KC Original Tunnel in Downtown Seattle, multiple transportation projects for SDOT; Sound Transit; WSDOT, Seattle Central Library, Brightwater WWTP, and WA State Convention and Trade Centers. Kathryn Neal, P.E., Civil Engineering Manager City of Port Angeles Kathryn has over 25 years’ experience in public works design and construction, in addition to five years’ experience as an engineering technician, passive solar building designer, and design manager on the private side. For Port Angeles, she manages a group that supports CIP and operations for the Water, Wastewater, Solid Waste, and Stormwater Utilities, as well as streets and facilities. She enjoys hiking, kayaking, reading, and imagining alternate realities. Kevin Duffy, Project Manager Walsh Pacific Kevin has 40 years of construction experience in both the private and public sectors, specializing in Project Management, Construction Management and Program Management. Kevin has experience in various areas of construction and contracting methods including: General Contractor Construction Manager (GCCM), Cost Plus Fixed Fee (CPFF) and Fixed Price Contracts. Kevin has assisted owners in the conceptual stage of a project to determine which type of contract best fits each circumstance. He has managed projects in various market sectors such as Healthcare, Education (K‐12) and Aerospace. Kevin is skilled at identifying key issues during construction and leading a project team that results in the highest quality construction with the best value for the client.
Peter De Boldt, South Sound Director of Design Perteet, Inc. Peter has over 30‐years of experience delivering infrastructure projects throughout Washington State. He has an excellent track record of leading multidisciplinary teams from initial project development through construction. Peter’s work on projects is diverse and includes arterial and highway design, transit systems, airfield work, traffic analysis, pavement design, signal systems, channelization plans, cost estimates, construction sequencing, project management, and construction management. Projects Peter has worked on included the Low‐Level West Seattle Swing Bridge in Seattle, the I‐90 Island Crest Way interchange on Mercer Island, Light Rail feasibility studies between Federal Way and Tacoma, Paine Field Boulevard in Snohomish County, Newport/Maple Streets in Issaquah, the 28th/24th Street corridor in SeaTac, Argonne Road in Spokane, the North Renton arterial program, the Bellevue Transit Center, and the reconstruction of East Lake Sammamish Parkway in Sammamish. His broad range of experience includes more than $500 million of transportation improvements and being asked to serve on value engineering teams for some of the most challenging projects in the region. Peter’s educational background includes a BSCE from the University of Washington in 1983, followed with graduate work specializing in pavements from the UW. He has been active in APWA since his first fall conference in 1989. He served as the Washington Chapter’s APWA Transportation Committee Chairman from 2006‐2009, on the Board of Directors from 2010 to 2011, and is currently the Chapter’s Alternate Delegate to the national APWA Council of Chapters. Aleanna Kondelis, MPA City of Seattle, Construction Contracts Manager Aleanna has served as Construction Contracts Manager for the City of Seattle for the past 4 years. As manager, Aleanna oversees the administration of all public works contracts for the City, develops and maintains contracting programs and represents the City’s contracting authority. Part of her responsibilities include policy development and implementation, maintenance of Division 0 and 1 contract boilerplate and maintenance of the city alternative delivery programs. She chairs several business liaison committees for the City including ACEC and AGC. Aleanna has been with the City for 7 years, prior to coming to the City she worked in private commercial development where she was a Planning and Development Manager for a private consulting firm where her responsibilities included managing project management and engineering design professionals serving commercial construction across the State of Washington. Aleanna has a master’s in Public Administration and participates in a variety of special interest groups such as the Capital Projects Advisory Review Board, the Seattle Chapter of DBIA and the Public Owner’s Group (POG). Ron Kessack, Assistant Director City of Bellevue Transportation Department For the last 4 years of his 25+‐year City of Bellevue Transportation career, Ron has served as the Assistant Director of the Capital Program Services (CPS) Division. This division includes staff involved in design/project management, construction inspection, East Link project coordination and the pavement management program. With a 2015‐2021 capital budget of nearly $200 million, CPS staff have been very active in successfully delivering a number of local projects while working with partner agencies on regional projects such as East Link, the Mountains to Sound Greenway Trail through Bellevue and the SR‐520 Interim Regional Trail in addition to WSDOT projects on I‐405, I‐90 and SR‐520. Ron has a Bachelor of Science in Geo/GE from Washington State University. He also currently serves on the Board of a local non‐profit organization involved in community activities and is active in multiple community projects in Latin America.
Heath Henderson, PE, Public Works Director Clark County Heath has almost 20 years of engineering and senior management experience at both the county and municipal level. He currently leads a department with seven divisions, 250 employees and a biennial budget of almost $194 million. Heath earned a bachelor’s degree in civil engineering with distinction from the University of Maine in 1993. He began his professional career as an Associate Engineer with the City of Vancouver before transitioning to Clark County in 1998. Heath started as a Civil Engineer with Clark County Public Works and earned a series of promotions to Environmental Permitting Manager, Design Section Manager and Engineering and Construction Division Manager before assuming the department’s top post. Heath prides himself on providing strong leadership based on open communication and collaborative teamwork. He embraces continuous improvement and lean processes to eliminate waste and maximize service delivery within existing resources. He has been an active member of APWA for more than 10 years and serves on the awards committee for both the state and national associations. Earlier this year, he created an internal team to guide Clark County Public Works through the APWA accreditation process. Kevin Tapani, Vice President/CFO
Tapani Inc.
Kevin grew up working in the family owned business. He notes: “from pipe layer to truck driver, I’ve done it all”.
He has 33 years of experience, five as General Manager, six as President, and has been the Vice President and
CFO for the past four years. In his 33 years with Tapani, the company has grown from assets of $3000 and a
backhoe to a 100 million a year business with 350 employees.
Kevin is on the Columbia River Economic Development Council (CREDC) and Northwest National Utility
Contractors Association (NWNUCA) executive boards.
Daniel Swensen, PE. City Engineer
City of Vancouver
Pick and Choose what you’d like:
Dan is responsible for all engineering and project management functions within the City’s Public Works
Department including water, sewer, surface water, transportation, construction and survey as well as capital
project management for City‐owned facilities. He is a professional engineer, registered in Oregon and
Washington and graduated with a BSCE from Oregon State University in 1986. Career highlights include three
years as a project engineer for Kiewit Pacific in their Structures Division, three years as a designer and project
manager for Multnomah County’s Transportation Division, 18 years as the City of Vancouver’s
Construction/Survey Services Manager and 6 years as City of Vancouver’s City Engineer.
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Contracting Summit II
Session A: Risk Assessment
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April 2016
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The Presenters
Steve Nichols
Construction Manager - Kitsap County Public Works
K. Wendell Adams P.E.
Principal – KBA Construction Management
Mike Myette P.E.
President - MM Construction Consulting LLC
Jim Rioux
Session Coordinator - City of OlympiaApril 2016
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Risk Overview
Risk is anything that can delay a project or make it unsuccessful.
No construction project is risk free.
Risk can be managed, minimized, shared, transferred, or accepted.
o It CANNOT be ignored. If Risk is not managed properly, it
becomes a Change Order.
Risk is an ongoing process. Each project has its own unique risk(s). April 2016
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Technicalo Incomplete designo Inadequate site investigationo Project specific specifications
Collaboration with design staff during construction(i.e. project designer attend weekly meetings)
Complete Geotechnical Reports
Lessons learned from past projects
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Risk Cycle
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PROCESS
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“
”
Risk is assigned by the Owner, priced by the Contractor.
Risk should be assigned to the one best equipped to handle it. If all risk is assigned to the
Contractor, the Owner should have a very healthy contingency budget.
April 2016KBA, Inc.. Construction Management K. Wendell Adams, PE, Vice President
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Examples of Risk Assignment
• Franchise utilities should be handled by the Owner as a condition of their franchise agreements.
• Permits and Right-of-Ways (ROW) should be the responsibility of the Owner.
• Construction means and methods should be owned by the Contractor.• Safety is everyone’s responsibility, but the construction site is under the
Contractor’s control.• Known and specified conditions are the hardest to enforce, but the
Contractor is responsible.• Unknown or unspecified conditions are the Owner’s risk.
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KBA, Inc.. Construction Management K. Wendell Adams, PE, Vice President
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Unknown Risk - Do’s and Don’ts
Do - Specify and develop plans for known obstacles and difficult construction features. Don’t – Specify that “all” risk and issues are the responsibility of
the Contractor. (Judges have no humor for this type of risk management) Do – Have a cooperative attitude toward working together to
resolve issues that may arise. Don’t – Close communications and start blaming the Contractor
when unknown risk gets difficult. Do – Hold regular meetings to assess risk as they are encountered
and be collaborative in resolving them.
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KBA, Inc.. Construction Management K. Wendell Adams, PE, Vice President
Owner’s Responsibility
Provide contractors with window into project. Do not be secretive about missing parts Be transparent Same goals Uncertainty of estimates
April 2016MM Construction Consulting LLC Mike Myette President
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Experience with risk assessment Accuracy, Budget, Trust Risk identification Risks must be prioritized Risk management
April 2016MM Construction Consulting LLC Mike Myette President
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Risk Process/Analysis
The Challenge Bids are projects of their own Outcome in terms of timelines vs. cost are hard to predict Clients want aggressive time line and low cost It is important to understand risk and uncertainties to achieve
to client wishes If you don’t understand risk and uncertainties involved, you are
walking into the bid blind
April 2016MM Construction Consulting LLC Mike Myette President
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Risk Process/Analysis
The solution Have a coherent view of the impacts and uncertainties of the
project’s deliverables The biggest risk is the uncertainty of the estimates Uncertainty has a bigger impact on the project deliverables
than riskso Can we meet the schedule o Pricing variableso Look at other projectso Managing risk and uncertainties through out the project
April 2016MM Construction Consulting LLC Mike Myette President
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Factors That Affect Bidding Decisions
Project size and value Regional market conditions Current and projected work load of the bidding
company Type of client Type of project
April 2016MM Construction Consulting LLC Mike Myette President
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Markups (Overhead/Profit) - The Bid
How do we price the risk ? Understanding the bid process The place holders
o Overheado Profito Equipment
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The Final Number
• Adjustments to final numbero Equipmento Labor o Overhead o Profit
April 2016MM Construction Consulting LLC Mike Myette President
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Risk Assessment
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Contracting Summit II
Session B: Value Engineering and Biddability/Constructability Reviews
3/31/2016
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Methods That Save Time and Money
VALUE ENGINEERING AND BIDDABILITY/CONSTRUCTABILITY REVIEWS
Presented By: Sam Yaghmaie, PE, LEED® AP
WHAT IS VALUE ENGINEERING (VE)?
• To validate that the design meets functional requirements.
• Even the best design team may “miss the forest through the trees.”
• VE team can go beyond scope limitations and find “the forest.”
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WHAT IS VALUE ENGINEERING (VE)?
To present potential cost savings measures that will not affect the delivery of the proposed system.
• What is it?
• What does it do?
• What does it cost?
• What is it worth?
• What other equipment or method could be used, doing the same job?
• What would the alternative cost be?
• Should the alternative be used?
VALUE ENGINEERING AT CONCEPTUAL STAGE
• Milton Keynes, UK
• Tram or monorail line option
• 40 Driverless Pod cars by 2018!
• Huge Cost difference
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BENEFITS
• Construction projects, highway and transportation departments saved U.S. taxpayers $1 billion in 2000 by applying VE.
• U.S. Office of Management & Budget Circular A‐131 requires use of VE for WWTP projects that cost more than $10 million.
• Benefit to cost 15:1
• 2 – 25% cost savings
WHEN AND HOW SHOULD VE BE DONE?
• Dilemma
• More complete design
• Change cost‐increase
• Design Completion
• 10‐30%
• 50‐60%(2nd VE for complex projects)
• 40 Hour Meeting
VE Process (SAVE Guidelines)1. Pre‐Study Preparation
(preview, team selection)
2. Information(designer present, stakeholders, site visit)
• A tool to provide feedback for continued improvement
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How might evaluations be used?
For Consultants Provides feedback to
consultants on areas for improvement Can be used in QBS
Selection Process
For Contract Awards
Provides Contractors feedback on areas for improvement
If a systemic pattern of poor performance, can be basis for disqualification as not a responsible bidder
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Determining Responsive vs. Responsible Contractor
Responsive = Relates to the form of the actual bid• Incomplete submittals, unsigned bids, late bids, etc…
Responsible = Bidders demonstration of past experience and performance to satisfactorily perform the work
• Defined in RCW 34.04.350 and can include supplemental criteria
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Responsible Bidder Criteria
MandatoryRCW 39.04.350(1)Applies to Subcontractors
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Supplemental Bidder Criteria
Not mandatory If using, statutory requirements owners and bidders must
follow Relevant and measurable, deliberate, documentable,
defensible Capital Projects Advisory Review Board (CPARB) has
Suggested Guidelines for Bidder Responsibility
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Relevancy of Criteria
Clear nexus between owners concerns and criteriaWhat areas of project pose significant risk? Relevant experience, training and/or certification
requirements or qualifications Same for subs, suppliers or employees who will
performing specific work
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Information required in bidding documents (per RCW)
Criteria relevant to specific project – use Pass/Fail criteria Basis for evaluation Deadline for submitting documentation Appeal deadline
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Why do we use supplemental criteria?
Responsible just as important as responsiveHelps bidder provide a more accurate bid and know what the important issues are
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Best Practices
Criteria should be relevant and measureable but not so restrictive as to exclude
Use third parties certifications if possible
Request demonstration of experience
Avoid terms such as “successfully completed” “recent experience” or “similar work” be more specific
Use language that allows bidders to materially meet the criteria at the Owner’s interpretation and avoid rigid criteria
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Best Practices
How does your agency approach public works contracts Past experience Risk tolerance of agency Procedurally, is your agency set up for the
documentation/tracking? Development and evaluation may add additional time to
project schedule Don’t make criteria so restrictive you exclude qualified
bidders
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Examples and Discussion 17
Risk Assessment
April 2016
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Contracting Summit II
Session D: Collaborative Contracting
3/31/2016
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The City of Vancouver/Clark County Experience
April 5, 2016 12016 APWA Spring Conference – Contracting Summit
Kevin Tapani, Vice President/CFO, Tapani Underground, Inc. of Battle Ground, WA.
• 33 years in family company• Pipe layer to truck driver to Vice President, he has done it all.
Heath Henderson, P.E., Public Works Director/County Engineer, Clark County• 21 years in SW Washington• Development review, grant administration, design, permitting, project management, construction
management, etc.
Dan Swensen, P.E., City Engineer, City of Vancouver• 30 years – Kiewit, Pacific Structures, Multnomah County Transportation, City of Vancouver
Construction/Survey Manager and City Engineer.
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Collaborative Contracting…What the ?Clark County ExperienceCity of Vancouver ExperienceWhat really happens…. Contractor Experience….Questions?
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Ancient history - Adversarial – Claims, Lawsuits, etc.
In the last decades, reality sets in: “Hey, we need each other…”
Set positive tone early anddevelop relationships; recognize needs
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Acknowledge that both have reasonable goals:• County needs to deliver quality projects, on-time, at a reasonable price.
• Contractor needs to make a profit
Work towards meeting those goals• Agree early to work together, solve problems, avoid claims
• Establish project team roles
• Discuss any plans/spec issues and/or intent before construction starts
• Build trust
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No claims for several years Better communication and problem solvingCelebration of accomplishmentsCollaborative relationship vs. adversarial – working
together to improve the community while providing family wage jobs
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Some resistance by staff and contractorLow bidder may not be familiar with the concept – more
resistanceContractor or agency may have to “give” a little to
maintain collaborative atmosphere.Takes more time up front.
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Contractors add “agency multipliers” to their bids – based upon agency history with the “gray” in contract documents.
MOST contractors want to do it right, do it once, and get paid for it.
Contractors need to make a profit in order to survive to help us another day.
ONE contractor claim in the last 30 years.
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Our interpretation history of “gray” gets us better bids through lower multipliers
Our attitude of cooperation working through problems makes Vancouver a “good owner” to contractors = lower bids.
We usually get more bidders on projects than we anticipate.
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Working in the “gray” successfully requires large amounts of trust from City leaders and Program Managers.
Have to balance future relationships with current project budgets and needs.
Maintaining trusting relationships with contractors takes the ability to understand both view points of a problem and solve it considering all needs.
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Public Agencies that work together with Contractors receive many benefits.
Working in the “gray” successfully requires large amounts of trust from both Contractor Project Teams and Public Agencies.
Our experience is “Time is money”.
Everyone -“Public Agencies, Contractors, and the Community” suffer in many ways with slower resolution times while managing change.
Public Agencies and Ports who run projects like a “For Profit” business always realize a better product at a lower price.
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Our employees want to build quality work on time and under budget = higher morale amongst our employees = more enjoyable experience.
Higher quality of work performed.Faster completion times which lowers the price of bids.More profitable.
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Employees dissatisfied (both sides at inspector and field worker level feel the disrespect).
Additional time and cost (legal cost, standby time, inefficiency cost).
Higher bids for public agencies who don’t manage “gray” areas well.
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Challenges to work on: • 1. Utility coordination: How to leverage them? • 2. Erosion control: How to protect the environment together? • 3. Liquidated damages and early completion: How to reward
contractor for early completion?
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Contractor and agencies agree this is a better way to do business, even though any project has its challenges with ups and downs.
Changing the overall philosophy of the relationship can only benefit the end result.
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