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2013 Louisiana Transportation Conference
Baton Rouge, LAFebruary 20, 2013
John L. HaynesResearch & Innovation Program Manager
FHWA - Utah Division
Innovative Contracting Methods:Understanding the Benefits of Construction
Manager/General Contractor
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ALTERNATIVECONTRACTINGMETHODS
CONSTRUCTION MANAGER/
GENERAL CONTRACTOR CONTRACTING
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Agenda
CM/GC Overview
The Benefits of CM/GC
The CM/GC Process
Case Examples
Keys to Success Additional Resources
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CM/GC Overview
Construction Manager/General Contractor
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Contract with
Designer
Two Phase Contractwith contractor
Phase I Construction
Management
Phase IIGeneral
Contracting
What is CM/GC?
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Owner
ConstructionManager
Design
Subs
Trade
Subs
Designer-of-Record
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MAP-21 - Key Provisions
Section 1303
Allows for the use of CM/GC contracting
SEP-14 approval no longer required after
October 1, 2012.
Section 1304
Allows for up to 100% Federal share forinnovative contracting methods.
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States with Enabling
Legislation for CM/GC
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States with
CM/GC Experience
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Why Use CM/GC?
The CM/GC contracting method is a goodoption on certain transportation projects,
where unique challenges call forspecial qualifications and extraordinary
contractor cooperation for the
success of the project.
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The Benefits
CM/GC Project Delivery
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Improved Cost Control
Risk reduction & allocation
Improved design quality
Schedule optimization
Collaboration
Model to implement innovation
Benefits of CM/GC?
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D-B-B D-B CM/GC
Contractor
Owner Risk
Risk($)
Risk Allocation
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Collaboration Leads to
Innovation Implementation
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The Process
CM/GC Project Delivery
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CM/GC Process
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Bid Explain Agree
DESIGN
OWNER
Design
ConsultantConstruction
Manager
GENERAL CONTRACTOR BID-BUILD (Market)
Plan Owner
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Designerregular consultant selection process
Construction Manager
Best Value Selection Includes Technical score
Includes Price*
* UDOT model
other models existincluding qualifications based.
How to select the Team?*
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*RFP evaluation criteria includes the following: Team
Approach Approach to price
Unit prices on a few select items
Innovations
*UDOT modelother models existincluding qualifications based.
Construction Manager/
General Contractor RFP
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ProvideconstructabilityFeedback
Identity andmitigate risks
Develop a cost
model *Periodicallysubmit Opinionsof ProbableConstructionCost (OPCC)
Bid on project
Phase 1: DesignOnce we have selected CM/GC and Designer
:
Phase 2: Construction
*UDOT Model
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CM/GC Bid Process
Owner asks CM/GC to bid jobTwo estimates:
1. Designer-furnished Engineers Estimate
2. Independent Cost Estimate (ICE)
Two Possible Outcomes:1. Owner gets acceptable price - Proceed with build
2. Owner doesnt get acceptable price:
Discuss contractor assumptions on risk Refine the design package Rebid project Convert to Design-Bid-Build
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CM/GC Project Delivery
Case Examples
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CM/GC on Large Projects
Replacement of seven structures along I-80 Moved to location using SPMTs
$2M savings in construction
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Sellwood Bridge
Replacement,
Multnomah County, Oregon
CM/GC on Large Projects
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CM/GC on Medium Size Projects
Gateway City to Zion
National Park
Additional lanes addedin each direction.
Third Party Issues =
utilities, driveway access,
businesses, and public
concerns.
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State Route 9 -- Hurricane City, UT
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Contractor assisted
with a 3-D utility map
and relocation plan.
During design phase
contractor developed
utility phasing plan and
construction schedule
CM/GC on Medium Size Projects
State Route 9 -- Hurricane City, UT
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Smaller CM/GC Projects
Virgin River Trail
Construction Manager helped
determine trail alignment Contractor input eliminated
blasting and minimizedexcavation
Saved $200,000 dollars
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Bitter Creek Bridge Originally slated for full
replacement . Resulted in simple bridge
girder repair.
Total construction cost:
$400,000 dollars
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CM/GC Project Delivery
Keys to Success
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Keys to Success
1. Give DOTs a solid business case forimplementing a CM/GC program.
2. Contractor selection process must be
transparent to local industry.
3. DOTs and contractor industry must have amature partnering environment.
4. Dedicated staff and a champion dedicated to
CM/GC deployment.
5. Initiate CM/GC deployment on smaller less
complex projects.
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CM/GC Project Delivery
Wrapping Up
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Recap of CM/GC Benefits
This method offers significant advantagesand benefits on unique projects: Better designs = value engineering on the front end.
Increased opportunities for time and cost savings
Increased innovation
Owner control of the design
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Questions?
John Haynes
Research/Innovations Program Manager
FHWA - Utah Division OfficePhone: (801) 955-3526
E-mail: [email protected]
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