Owners Committee Presents:

CMAR and Progressive Design-Build

Progressive Design-Build (PDB) Project Delivery

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Presenter

Joe Abidin

Senior Vice President, Clark Construction Group, LLC

B.S., Civil Engineering, University of Virginia

33 Years of Construction Experience

Executive Leadership Experience on CMAR, Design-

Build and Progressive Design-Build Projects

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Institute of Peace, CM at Risk Delivery CSX Virginia Avenue Tunnel Reconstruction, Design-Build Delivery

• 110 years of experience, $4+ billion/year, Bethesda, Maryland

based general contractor and construction manager

• Build approximately 75 projects valued at $1.4 billion in the local

market each year

• Nearly 85% of annual volume is delivered via Collaborative

Project Delivery procurements

Clark Construction Group, LLC

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Content

Collaborative Project Delivery Methods

CMAR

Fixed-Price Design-Build

Progressive Design-Build (PDB)

Example of Successful Local PDB Project

PDB Best Practices

Questions

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Collaborative Project Delivery Methods

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Owner

Designer

Sub-

consultants

CMAR

Sub-

contractors

Owner: set plan and program, manage Designer,

procure CMAR, set price, manage construction,

manage maintenance and operations

Designer: SOQ selection, prepare construction

documents (specs and plans), construction

administration services

CMAR: SOQ selection, preconstruction, construction

management, commissioning, start-up and warranty

services

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CMAR / CM at Risk / CM-GC

CMAR Distinguishing Features

Two independent contracts with two

separate firms with selection based on

qualifications Design/Engineering firm

CMAR firm

Two phases in CMAR contract Preconstruction: design, schedule and price,

typically guaranteed maximum price (GMP)

between 60% and 90% design development

Construction: design review and completion,

purchasing, construction and commissioning

Owner has option to negotiate with other

CMAR firms at the end of preconstruction

CMAR firm provides design input for

constructability

Design and performance risk resides with

Owner and Designer

Owner is buyer and project integrator

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Owner

Design

Team

Design-

Build Entity

Sub-

contractors

Owner: set plan and performance requirements,

manage RFQ, RFP and Interview, select Design-

Builder, manage contract, manage maintenance

and operations

Design-Build Entity: best value selection on

qualifications, technical approach and price,

design, construction, commissioning, start-up and

warranty services

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Fixed-Price Design-Build (D-B)

Advisor

Fixed-Price Design-Build Distinguishing

Features

Procured through 2-step process Request for Qualifications (RFQ)

Request for Proposal (RFP) + Interview

Best value selection: qualifications + technical + price

One contract with Design-Build firm Design

Permitting

Construction

Testing and acceptance, close-out and

warranty services

Price is fixed at time of award

Most performance risk resides with

Design-Builder

Design-Build can expand services to

include programming, finance,

operation, etc.

Design-Build can be GC or Designer led;

most commonly it is GC led

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Owner

Design

Team

Design-

Build Entity

Sub-

contractors

Owner: set plan, manage RFQ, RFP and

Interview, price negotiation with Design-Build

Entity with option to off-ramp, manage contract,

manage maintenance and operations

Design-Build Entity: qualifications based

selection, design-build approach, progressive

design contract documents and estimates, design,

construction, commissioning, start-up and

warranty services

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Progressive Design-Build (PDB)

Advisor

Progressive Design-Build Distinguishing

Features

Selection is based exclusively on

qualifications, buy may include limited

pricing information

One contract with two phases Design-Builder with Owner develop

scope, design, initial permits, schedule

and price for Owner approval

Design-Builder completes design and

permits and performs construction,

testing, acceptance and close-out

Strong collaborative relationships

Owner involvement is higher than other

collaborative-delivery methods

Preferred when project lacks definition

Most performance risk resides with

Design-Builder

PDB can expand services to include

programming, finance, operation, etc.

Similar to Design-Build, PDB can be

GC or Designer led; most commonly it

is GC led

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CMAR

Fixed Price-Design-

Build Progressive D-B

Time to Cost Certainty At GMP, after award Upon bid At GMP, after award

Time to Create RFP/Bid

Documents Moderate Moderate Shortest

Construction Schedule Fast Tracking Fast Tracking Fast Tracking

Project Risk Shared, well managed Design Builder, well

managed Shared, best managed

Collaboration High Moderate Highest

Shared Savings Yes Possible Yes

Scope Creep Controlled Low Low

Owner Control High Least Moderate

Owner Resources /

Experience Strong Decision Maker Strong Program Criteria Strong Decision Maker

Best Value Best Value Best Value Best Value

Performance Incentives Possible Possible Yes

Likelihood of Litigation Low Low Low

Reliability, Operational

Flexibility & Innovation High Moderate High

COLLABORATIVE PROJECT DELIVERY METHODS

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Relevant Features

Example of Successful Local PDB Project

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CSX Virginia Avenue Tunnel (VAT) Reconstruction Project

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A single track, low clearance tunnel in Southeast DC

3,800 feet long / 112+ years old

A major bottleneck to east coast rail operations

CSX Virginia Avenue Tunnel (VAT)

Owner: CSX Transportation

Joint Venture of Clark and Parsons Transportation

Preconstruction – Technical support during NEPA process

Design and Construction - $250M new double stack/double track tunnel built in two phases

Two step contract :

Step 1 : NEPA Support – Qualification Based Selection

Step 2 : Design-Build – Negotiated GMP

Budget established prior to Step 2 award

Owner had the option to off-ramp Design-Builder team at the end of Step 1

Progressive Design-Build (PDB)

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CSX Virginia Avenue Tunnel (VAT) Reconstruction Project

Key Challenges that drove decision to use Progressive Design-Build (PDB)

Dense Urban Environment

Close proximity to residences, government offices, businesses and Interstate highway

Age, condition and material of existing tunnel

Complexity of existing public utilities

Maintain active rail traffic throughout construction

NEPA determination without schedule risk (no supplemental EIS)

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CSX Virginia Avenue Tunnel (VAT) Reconstruction Project

CSX Issued a Request for Qualifications (RFQ) to five pre-selected general contractors using a qualifications-based selection (QBS) process to:

Find the General Contractor (GC)-led Design-Build Partner that could best work with CSX and their NEPA consultant team through NEPA determination process

Select a constructible build alternate to provide double stack, double track clearance through the VAT project alignment that would not require a supplemental EIS evaluation

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CSX Virginia Avenue Tunnel (VAT) Reconstruction Project

Teams were evaluated on the following criteria:

Safety

Team Members

Experience with Project Type

Local Presence and Experience Working in DC

Knowledge on Permitting Processes

Capabilities and Depth of Available Resources

Tunnel Construction Experience

Work On/Around Class 1 Rail Corridors

Maintenance of Traffic in Urban Environments

Interview was required with CSX procurement team prior to submission of RFQ responses

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CSX Virginia Avenue Tunnel (VAT) Reconstruction Project

Upon PDB selection, CSX Team quickly developed a 2-Step

approach to the contract

Step 1: a Professional Services style contract that required

Design-Builder to provide preconstruction technical support

to CSX and their NEPA author

Step 2: a Guaranteed Maximum Price (GMP) Design-Build

contract to construct the preferred alternative from the

Record of Decision (ROD)

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CSX Virginia Avenue Tunnel (VAT) Reconstruction Project

Design-Builder’s Step 1 Scope of work included:

Alternative concept development

Preliminary scheduling and budgeting

Geotechnical and environmental field sampling

Extensive existing condition surveys

Preparation of numerous technical studies and reports such as traffic analysis, SOE schemes, environmental impact mitigation measures, etc.

Providing subject matter expertise support at public hearings and meetings with FHWA & DDOT

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CSX Virginia Avenue Tunnel (VAT) Reconstruction Project

During preparation of Final EIS, CSX and Design-Builder successfully negotiated the Step 2 GMP contract to start final design immediately upon receipt of ROD

This resulted in project’s expedited delivery, while efficiently addressing NEPA driven commitments and local permitting processes

Key features

Used DBIA’s Standard Form Contract Documents

Shared savings clause

Portion of DB fee is keyed to incentive payments tied to a quarterly evaluation of performance on key metrics

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CSX Virginia Avenue Tunnel (VAT) Reconstruction Project

Project began as an Environmental Assessment (EA) in early 2011 prior to selection of Design-Builder and was changed to an Environmental Impact Assessment (EIS) in May 2012

12 Initial concepts with 3 + no build retained in the EIS

Draft EIS- Published in July 2013

Final EIS w/ Preferred Alternative – June 2014

Record of Decision – Published in November 2014

Construction NTP Issued in May 2015 (6 months to first shovel in the ground)

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Working in Urban Neighborhood

23 Before During

CSX Virginia Avenue Tunnel (VAT) Reconstruction Project

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1st Double Stack Train through New Tunnel

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First Tunnel Running Double Stack Cars by December 23, 2016

Why Progressive Design-Build (PDB) for VAT

PDB was selected to leverage the strength of early contractor

involvement to optimize the efficiency of the NEPA process and

speed of project delivery

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PDB Best Practices

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Development of strong owner

program criteria

Success is based on trust and collaboration

Design-Build team is contractor

led

Commitment to Safety

Strong collaboration

Ongoing value engineering

Use of GMP contract with savings split

Don’t let issues linger, elevate timely

Prompt owner decision making

Co-location of critical team members

Single team focused on delivering on Best Value

Regular evaluation and feedback of Team performance from all team members

PDB Best Practices

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BEST VALUE: Work as a single team to find the proper balance of cost,

schedule, risk and certainty of outcome for all parties

Questions?

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