1.040/1.401 project management - dspace@mit home€¦ · the owner: internal structure capital...

1.040/1.4011.040/1.401

Project ManagementProject ManagementSpring 2007Spring 2007

Project Organization Part IProject Organization Part IDelivery SystemsDelivery Systems

Dr. SangHyun Lee

Department of Civil and Environmental EngineeringDepartment of Civil and Environmental EngineeringMassachusetts Institute of Technology Massachusetts Institute of Technology

Project Management PhaseProject Management Phase

FEASIBILITY DEVELOPMENT CLOSEOUT OPERATIONS

Fin.&Eval.

RiskEstimating

Planning

DESIGNDESIGNPLANNING PLANNING

OrganizationOrganization

OutlineOutline

Project ParticipantsProject ParticipantsThe OwnerThe Owner

The Design TeamThe Design Team

The Construction TeamThe Construction Team

Project Delivery Systems (Most Common)Project Delivery Systems (Most Common)TraditionalTraditional

Pure Construction ManagementPure Construction Management

Construction Management at RiskConstruction Management at Risk

Design / BuildDesign / Build

Combination Combination –– Build / Operate / TransferBuild / Operate / Transfer

SummarySummary

The Owner: Internal StructureThe Owner: Internal Structure

Capital Projects Officer: Capital Projects Officer: Strategic PlanningStrategic PlanningFinancial Officer: Financial Officer: Financial PlanningFinancial PlanningOwnerOwner’’s Project Manager:s Project Manager: Tactical Level Supervision Tactical Level Supervision OwnerOwner’’s Inspector: s Inspector: Operational DecisionsOperational DecisionsEnd Users: End Users: Directly or Indirectly Represented Directly or Indirectly Represented

Source: Peña-Mora et al., 2004

Owner's Organization

CPO

Financial Officer

Owner's ProjectManager

Owner's Inspector

End Users

Figure by MIT OCW.

The OwnerThe Owner

Typical InterestTypical Interest

To achieve an efficient product delivery mechanism with a simpleTo achieve an efficient product delivery mechanism with a simplestructure of responsibility structure of responsibility

reduce schedule and cost, increase quality, reduce claims, increreduce schedule and cost, increase quality, reduce claims, increase ase innovation and constructability, and increase flexibility in botinnovation and constructability, and increase flexibility in both their h their capital investment and the construction process)capital investment and the construction process)

Perfect Owner?Perfect Owner?

The one whose only requirement is some respect for the budgetThe one whose only requirement is some respect for the budget

The one that knows exactly what needs to be done and howThe one that knows exactly what needs to be done and how

Public & Private OwnersPublic & Private Owners

Public OwnersPublic OwnersState, Municipal or Federal Government, State, Municipal or Federal Government, DoDDoD, , DoEDoEUsually Large ProjectsUsually Large ProjectsVery WellVery Well--Defined Procedures Defined Procedures Careful Project Financing (Political accountability)Careful Project Financing (Political accountability)

Private OwnersPrivate OwnersRanging from Real Estate Developers to OneRanging from Real Estate Developers to One--Time ProjectsTime ProjectsUsually Smaller Projects (occasionally Larger Projects also)Usually Smaller Projects (occasionally Larger Projects also)More Informal ProceduresMore Informal ProceduresUsually More Innovation, CostUsually More Innovation, Cost--Efficiency and FlexibilityEfficiency and Flexibility

PublicPublic--Private PartnershipsPrivate Partnerships

Hybrid Owner From ContractorHybrid Owner From Contractor’’s and Users and User’’s Viewpoints Viewpoint

Basic Modes (and Variations):Basic Modes (and Variations):

GovGov’’tt Contracts Operations & Maintenance of Existing Facility with Contracts Operations & Maintenance of Existing Facility with a Private Entitya Private Entity

GovGov’’tt Sells a Facility to the Private SectorSells a Facility to the Private Sector

GovGov’’tt Contracts a Company to BuildContracts a Company to Build--OperateOperate--Transfer a ProjectTransfer a Project

OutlineOutline









SummarySummary

The Design TeamThe Design TeamThe ArchitectThe Architect

11stst Contact of the OwnerContact of the OwnerUsually in Contract with the OwnerUsually in Contract with the OwnerSelected by Selected by ““CompetitionCompetition”” Based on Qualifications or Selected based Based on Qualifications or Selected based on Personal Preferenceson Personal PreferencesFiduciary Relationship in which one party, the owner, places speFiduciary Relationship in which one party, the owner, places special cial trust, confidence, and reliance in and is influenced by another trust, confidence, and reliance in and is influenced by another (the (the architect) & vice versaarchitect) & vice versa

The Engineering TeamThe Engineering TeamStructural / Transportation / Geotechnical Engineer Structural / Transportation / Geotechnical Engineer Usually Subcontracts (or Houses)Usually Subcontracts (or Houses)

Environmental EngineersEnvironmental EngineersMechanical EngineersMechanical EngineersElectrical EngineersElectrical Engineers

The Architect The Architect -- ExampleExample

Cesar Cesar PelliPelli & Associates Architects& Associates ArchitectsEstablished in 1977Established in 1977Estimated number of employees: 80 Estimated number of employees: 80 Works with corporate, governmental & Works with corporate, governmental & private clientsprivate clientsDesigns public spaces, museums, airports, Designs public spaces, museums, airports, laboratories, performing art centers, laboratories, performing art centers, academic buildings, hotels, office & academic buildings, hotels, office & residential towersresidential towersAwardsAwards

AIA 1989 Firm AwardAIA 1989 Firm AwardAIA 1995 Gold Medal AwardAIA 1995 Gold Medal Award

Signature projectsSignature projectsPetronasPetronas Towers Towers –– Kuala Lumpur, Kuala Lumpur, MalysiaMalysiaCitiCiti Group Tower Group Tower –– London, UKLondon, UKVisit website on Visit website on www.cesarwww.cesar--pelli.compelli.com for for complete list of projectscomplete list of projects

Source: www.cesar-pelli.com

Petronas TowersAmong tallest buildings in the world452 m Above Street Level

Photograph removed due to copyright restrictions.

http://www.cesar-pelli.com/

The Engineering Team The Engineering Team -- ExampleExampleParsonsParsons

Established in 1944Established in 1944100 % employee owned engineering & 100 % employee owned engineering & construction companyconstruction companyEstimated number of employees: 9,000Estimated number of employees: 9,000Delivers designDelivers design--build projects to governmental build projects to governmental & private clients& private clientsSpecializes in: Aviation, bridges & tunnels, Specializes in: Aviation, bridges & tunnels, commercial & industrial facilities, education & commercial & industrial facilities, education & healthcare buildings, environmental structures, healthcare buildings, environmental structures, roads & highways, rails & transitroads & highways, rails & transitLandmark projectsLandmark projects

BaiyunBaiyun International Airport International Airport –– Guangzhou, Guangzhou, ChinaChinaPierce County Tacoma Narrows Bridge Pierce County Tacoma Narrows Bridge ––Washington, USAWashington, USADominican Republic National Strategic Master Dominican Republic National Strategic Master Plan for ConstructionPlan for Construction–– Dominican RepublicDominican RepublicVisit website on Visit website on www.parsons.comwww.parsons.com for complete for complete list of projectslist of projects

Source: www.parsons.com

Baiyun International Airport-Covering 13.5 square km (8.38 square miles)-Capable of handling 25 million passengers and 186,000 aircraft operations annually

Photographs removed due to copyright restrictions.

http://www.parsons.com/

OutlineOutline









SummarySummary

The Construction Team: The Construction Team: The ContractorThe Contractor’’s Project Managers Project Manager

Oversees Entire Project but Mainly Deals with:Oversees Entire Project but Mainly Deals with:

Owner RelationsOwner Relations

ScheduleSchedule

ClaimsClaims

Cost and Budget IssuesCost and Budget Issues

Major Engineering Issues related to ConstructionMajor Engineering Issues related to Construction

Subcontractor IssuesSubcontractor Issues

SafetySafety

Quality ControlQuality Control

The Construction Team: The Construction Team: EstimatorEstimator

Quantity Take OffQuantity Take Off

Item Description Drawings Dimension 1 Dimension 2 Units Total SFCA1 SF 2119

1 B1Bottom Forms S-04, S-12 (40'0") 4 18" SF 240Side Forms S-04, S-12 (40'0") 4 28" SF 373




First Floor Level

Formwork For Beams

Error & Omissions are typical in quantity takeError & Omissions are typical in quantity take--offoff’’s, but they cost real moneys, but they cost real money

The Construction Team: The Construction Team: SchedulerScheduler

Produces and Maintains Job Schedule with the Help of the Produces and Maintains Job Schedule with the Help of the Engineers and SuperintendentsEngineers and Superintendents

Early Involvement in the ProjectEarly Involvement in the Project

Dealing with Multiple Interfaces (Owner, Designer, Dealing with Multiple Interfaces (Owner, Designer, Superintendents)Superintendents)

Excellent Understanding of the Construction Technology Excellent Understanding of the Construction Technology and Technique Behind the Scheduleand Technique Behind the Schedule

Continuously Modifying the Schedule Continuously Modifying the Schedule

The Construction Team: The Construction Team: Scheduler Work ProductScheduler Work Product

Screenshot removed due to copyright restrictions.

The Construction Team: The Construction Team: SuperintendentSuperintendent

General SuperintendentGeneral Superintendent

Oversees All Operations of Building the ProjectOversees All Operations of Building the Project

Coordinates Subcontractors and Various Field SuperintendentsCoordinates Subcontractors and Various Field Superintendents

Deals with Craft UnionsDeals with Craft Unions

The Construction Team: The Construction Team: SuperintendentSuperintendent

Field (i.e., Assistant) SuperintendentField (i.e., Assistant) SuperintendentOversee Their Specific Field (i.e., expertise) Operations (e.g.,Oversee Their Specific Field (i.e., expertise) Operations (e.g.,Utility, Earth Support, Concrete, Mechanical, Equipment)Utility, Earth Support, Concrete, Mechanical, Equipment)

Direct the Crews that Work in This AreaDirect the Crews that Work in This Area

In Charge of:In Charge of:Time SheetsTime Sheets

SchedulingScheduling

PlanningPlanning

SafetySafety

Quality ControlQuality Control

SubcontractorsSubcontractors

The Construction Team: The Construction Team: EngineerEngineer

Project EngineerProject Engineer

Oversee All Engineering and Administration Functions of the ProjOversee All Engineering and Administration Functions of the Projectect

Work closely together with project managerWork closely together with project manager

In Charge of:In Charge of:

Owner RelationsOwner Relations

Submittals, Submittals, RFIRFI’’ss, Changes, Changes

Leads problem identification, definition, analysis, solution genLeads problem identification, definition, analysis, solution generation, solution eration, solution implementation and pay requirementsimplementation and pay requirements

ClaimsClaims

Cost ControlCost Control

SubcontractorsSubcontractors


Field EngineerField Engineer

Daily Reports of ActivitiesDaily Reports of Activities

Measure Quantities of Work CompletedMeasure Quantities of Work Completed

Help Superintendents with Planning and Ordering Permanent Help Superintendents with Planning and Ordering Permanent MaterialsMaterials


Resident EngineerResident Engineer

The Owners Representative on the Job SiteThe Owners Representative on the Job Site

Makes the Decisions for the Owner and the Owners EngineerMakes the Decisions for the Owner and the Owners Engineer

The Construction Team: The Construction Team: SubcontractorSubcontractor

The term refers only to the contractual arrangement not to the The term refers only to the contractual arrangement not to the scope of workscope of work

Company X performs 2 contracts; one for Owner A and the other foCompany X performs 2 contracts; one for Owner A and the other for r Contractor BContractor B

Contractual obligation to the original contractor not the ownerContractual obligation to the original contractor not the owner

Responsibility ChartResponsibility Chart

Source: Clough et al., 2005

BOARD OF DIRECTORS

PRESIDENT

B. Blank

Executive

SECRETARY - TREASURER

S.Smith

Insurance Surety BondsCollections Tax Returns

SECRETARY - TREASURER

K.Lee

Owner Relations Labor RelationsContract Negotiations Safety

EXPEDITORW. White

Shop Drawings Delivers

ASSISTANT PURCHASE AGENT

M. Millar

Invoices Stores and Inventory

PURCHASING AGENTB. Brown

Purchase Orders Subcontractors

COST CLERKM. Moore

Project Costs Cost Records

PAYMASTERJ. JonesPayroll

Personnel Records

ACCOUNTANTJ. Johnson

Board of Accounts Disbursements

WAREHOUSEW. Wright

Material InventorySmall Tools

EQUIPMENT SUPTG. Green

Repair Shop Parts Inventory

PROJECT MANAGERM. Millar

Time and Cost Control Project Pay Requests

OPERATIONS MANAGERW. Williams

Project CoordinationEquipment Scheduling

TAKEOFFS. Strong

Quantity TakeoffBid Invitations

COST ESTIMATORD. DavisCosting

Price Quotations

CHIEF ESTIMATORK. King

Bid Bonds Proposals

Responsibility MatrixResponsibility Matrix

Source: Clough et al., 2005

Position

Pres

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Acco

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Expe

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Take

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War

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FunctionEstimatingDecision to BidPre-Bid ConferenceQuantity TakeoffPricingMarkupBid SecurityProposalPurchasingBill of MaterialsSubcontractsExpediting

A R

R

R

R

RR

R - Must review

A

A

AAA

AA- Must approve

l

l l

lO

O

O

OOO

OO

OO

O - Originator; does the work

l

l l l

l - Must be informed or advised

l

Figure by MIT OCW.

OutlineOutline









SummarySummary

TraditionalTraditional Design Design BidBid BuildBuild

Owner

General Contractor

Subcontractor Subcontractor Subcontractor

A/E

Contractual RelationshipCommunicational Relationship


Traditional Design Bid BuildTraditional Design Bid Build

Hire a Design Professional in Charge of the Preparation of Hire a Design Professional in Charge of the Preparation of the Design and Contract Documentsthe Design and Contract Documents

Usually Competitive Bid or Negotiation with ContractorsUsually Competitive Bid or Negotiation with Contractors

Contractor in Charge of the Delivery of the Completed Contractor in Charge of the Delivery of the Completed Project (May Decide to Subcontract)Project (May Decide to Subcontract)

The Contractor is the Only One Responsible of the The Contractor is the Only One Responsible of the Execution of the WorkExecution of the Work

TraditionalTraditional Design Design BidBid BuildBuild

Sequential Construction Process Sequential Construction Process

Lump Sum Bid Commonly Adopted whereby Owner assigns Lump Sum Bid Commonly Adopted whereby Owner assigns Project Risks to the Contractor: builtProject Risks to the Contractor: built--in adversarial relationshipin adversarial relationship

TrustTrust--based Collaborative Relationship between A/E (Chosen on based Collaborative Relationship between A/E (Chosen on Qualification Basis) and OwnerQualification Basis) and Owner

Different ParticipantsDifferent Participants’’ Interests:Interests:

Owner: Quality and Value Product, Delivery Schedule, Site SafetyOwner: Quality and Value Product, Delivery Schedule, Site Safety

Contractor: Profit, Construction Time, Relationships, ReputationContractor: Profit, Construction Time, Relationships, Reputation

A/E: Profit, Aesthetics, Relationships, Quality, RecognitionA/E: Profit, Aesthetics, Relationships, Quality, Recognition

Advantages of the Traditional MethodAdvantages of the Traditional Method

Well Known MethodWell Known Method

Cost Already DefinedCost Already Defined

Good Contractual Protection for the OwnerGood Contractual Protection for the Owner

Owner Not too Involved in the actual Construction ProcessOwner Not too Involved in the actual Construction Process

Disadvantages of the Traditional MethodDisadvantages of the Traditional Method

Generally, Design not Reviewed for Constructability Before Generally, Design not Reviewed for Constructability Before Construction (i.e., contractorConstruction (i.e., contractor’’s small role in the design phase)s small role in the design phase)

Sequential and Linear Process which Prevents Task Overlapping Sequential and Linear Process which Prevents Task Overlapping and Implementation of Time & Money Saving Strategiesand Implementation of Time & Money Saving Strategies

Few Interactions among the ParticipantsFew Interactions among the Participants

Construction canConstruction can’’t Start until Design is Completet Start until Design is Complete

Campus Recreation Center East, UIUCCampus Recreation Center East, UIUC

Source: http://www.acta.org

GroundbreakingGroundbreaking : : OctoberOctober 20032003FacilityFacility OpenedOpened: March, 2005 : March, 2005 Architect: VOA Associates Inc.Architect: VOA Associates Inc.General General ContractorContractor: William : William BrothersBrothersConstruction, Inc.Construction, Inc.CostCost : $22 million: $22 millionNew additions and New additions and renovationsrenovations includeinclude110,000 sq. 110,000 sq. FtFt of of activityactivity spacespaceAquaticAquatic center center withwith temp. temp. controlledcontrolledpool, pool, waterslidewaterslide and and waterfallwaterfall3 court gymnasium3 court gymnasium1/8 1/8 thth mile, 3 mile, 3 lanelane tracktrack

Photographs removed due to copyright restrictions.

Campus Recreation Center East, UIUCCampus Recreation Center East, UIUC


OwnerUniversity of Illinois Board of

Trustees

Architect of RecordVOA Inc. of Chicago

(Illinois)

General ContractorWilliams Brothers Construction Inc.

(Peoria, IL)

Design ArchitectHughes Sterling Group Associates

(Virginia)

SubcontractorsMechanical, Electrical, Fireproofing,

Painting

Owner’s Representative/CMUI Facilities & Services

User GroupDivision of Campus Recreation

CommunicationContractual

OutlineOutline




Project Delivery SystemsProject Delivery SystemsTraditionalTraditional





SummarySummary


Owner

Trade contractor

C/M

Trade contractor

Trade contractor


A/E



The Owner hires, based on qualifications, both a Design Firm The Owner hires, based on qualifications, both a Design Firm and a Construction Management Firm before the beginning of and a Construction Management Firm before the beginning of the construction of the Projectthe construction of the Project


Owner in Fiduciary Relationship with the PCMOwner in Fiduciary Relationship with the PCM

PCM as Facilitator/Mediator in Conflicts PCM as Facilitator/Mediator in Conflicts

PCM Generally Paid a Fixed FeePCM Generally Paid a Fixed Fee

Advantages of Pure CMAdvantages of Pure CM

One Trusted Common Reference Point for Construction: The CM One Trusted Common Reference Point for Construction: The CM

Great Flexibility in the ScheduleGreat Flexibility in the Schedule

Great Flexibility for ChangesGreat Flexibility for Changes

Small Financial Risks for PCMSmall Financial Risks for PCM

Disadvantages of Pure CMDisadvantages of Pure CM

Participants Must All Be Cooperative and have Open CommunicationParticipants Must All Be Cooperative and have Open Communication

All Parties Must Be Committed from the BeginningAll Parties Must Be Committed from the Beginning

Small Incentive for CM (they get paid anyway)Small Incentive for CM (they get paid anyway)

High Risk of Loss of ReputationHigh Risk of Loss of Reputation

Central Artery / Big DigCentral Artery / Big Dig

Source: http://www.bigdig.com

Photograph of elevated Central Artery removed due to copyright restrictions.

Central Artery / Big DigCentral Artery / Big DigMost Complex Highway Project in American HistoryMost Complex Highway Project in American History at at thatthat timetime

The Project Consists of Building 161 Lane Miles of Urban HighwayThe Project Consists of Building 161 Lane Miles of Urban Highway –– About About Half Underground in a 7.5Half Underground in a 7.5--Mile CorridorMile Corridor

Planning for the Central Artery/Tunnel Project Began in 1982Planning for the Central Artery/Tunnel Project Began in 1982

Congress Approved Funding and the Project's Basic Scope in AprilCongress Approved Funding and the Project's Basic Scope in April 19871987

Construction Schedule: 1991 Construction Schedule: 1991 -- 20062006

Estimated Cost: $14.624 BillionEstimated Cost: $14.624 Billion

Section Design consultants: 100Section Design consultants: 100

The CA/T Consists of 118 Separate Construction Projects & 26 GeoThe CA/T Consists of 118 Separate Construction Projects & 26 Geotechnical technical Drilling ContractsDrilling Contracts

During Peak of Construction (1999During Peak of Construction (1999--2002):2002):

Work Completed per Day: $ 3 Million Work Completed per Day: $ 3 Million

Workers on Job Site: 5,000Workers on Job Site: 5,000Source: http://www.bigdig.com

Central Artery / Big DigCentral Artery / Big Dig

Source: http://www.bigdig.com

MTA MTA -- Massachusetts Turnpike AuthorityMassachusetts Turnpike AuthorityB/PB B/PB –– Joint venture of Bechtel & Parsons BrinkerhoffJoint venture of Bechtel & Parsons Brinkerhoff

OwnerMTA

C/MB / PB

Trade Contractors


Section Design Consultants

OutlineOutline









SummarySummary


Owner

Trade contractor

C/M

Trade contractor

Trade contractor


A/E



Contractual Relationships between CM and Trade ContractorsContractual Relationships between CM and Trade Contractors

CM usually Guaranteeing Maximum Price (GMP) to Give the CM usually Guaranteeing Maximum Price (GMP) to Give the Owner Security that the Project Will Be Built within BudgetOwner Security that the Project Will Be Built within Budget

Advantages CM at RiskAdvantages CM at Risk

Reduced OwnerReduced Owner’’s Risk for Constructions Risk for Construction

Disadvantages CM at RiskDisadvantages CM at Risk

Owner takes responsibility for design defects / omissionsOwner takes responsibility for design defects / omissions

Owner may not have full control on contract changes as desiredOwner may not have full control on contract changes as desired

The GMP is A Defined Price for An Undefined ProductThe GMP is A Defined Price for An Undefined Product

Source: CII., 1997

Albert and Barrie Albert and Barrie ZesigerZesiger Sports and Sports and Fitness Center, MITFitness Center, MIT

GroundbreakingGroundbreaking : : OctoberOctober 20002000OccupancyOccupancy : 2002 : 2002 DesignedDesigned by the Architectural by the Architectural FirmsFirmsof Roche & of Roche & DinkelooDinkeloo and and SasakiSasakiAssociates Associates CM @ CM @ RiskRisk: Turner Construction Co.: Turner Construction Co.CostCost : $45 million: $45 millionOlympicOlympic--class 50class 50--meter pool meter pool An 11,000An 11,000--squaresquare--foot Fitness Centerfoot Fitness Center

Source: http://web.mit.edu/evolving/projects/zesiger

Photograph removed due to copyright restrictions.

Albert and Barrie Albert and Barrie ZesigerZesiger Sports and Sports and Fitness Center, MITFitness Center, MIT

Source: http://web.mit.edu/evolving/projects/zesiger

OwnerMIT

Trade Contractor

A/EKevin Roche-John

Dinkeloo & Associates

Trade Contractor

Trade Contractor


CM @ RiskTurner Construction

OutlineOutline









SummarySummary

DesignDesign--BuildBuild

Owner

Sub contractor

Sub contractor

Sub contractor

Contractual RelationshipCommunicational RelationshipInternal Relationship

Construction Function

Design Function

D/B Entity



The Owner hires a Design/Build Firm that will complete The Owner hires a Design/Build Firm that will complete both Design and Constructionboth Design and Construction

This firm can be a Design/Build Firm but also a JointThis firm can be a Design/Build Firm but also a Joint--Venture Firm of a Design Firm & Construction Firm for this Venture Firm of a Design Firm & Construction Firm for this specific projectspecific project

The Design/Build Firm hires subcontractorsThe Design/Build Firm hires subcontractors


One Contractual Team Responsible for Design and Construction One Contractual Team Responsible for Design and Construction FunctionFunction

Owners put More Emphasis on Schedule Owners put More Emphasis on Schedule

Owner with Enough Knowledge about Design and Construction Owner with Enough Knowledge about Design and Construction to Establish the Initial Parameters, Review Proposals and Monitoto Establish the Initial Parameters, Review Proposals and Monitor r the Processthe Process

Advantages of DBAdvantages of DB

Allows fast tracking Allows fast tracking

Good interactions among Design & Construction participants Good interactions among Design & Construction participants

Easier incorporation of changes in most casesEasier incorporation of changes in most cases

Good for complex projectsGood for complex projects

Disadvantages of DBDisadvantages of DB

Pricing isnPricing isn’’t possible at the beginningt possible at the beginning

Risk of sacrificing quality to protect profitRisk of sacrificing quality to protect profit

May take a direction that the Owner does not really wantMay take a direction that the Owner does not really want

Lack of checks and balancesLack of checks and balances

Alameda CorridorAlameda Corridor

A 20A 20--mile mile RailroadRailroad ExpresslineExpressline thatthatConnectsConnects the Ports of Los Angeles the Ports of Los Angeles and Long Beach, CAand Long Beach, CA

Construction Schedule: 1997Construction Schedule: 1997--20022002

EstimatedEstimated CostCost: $2.4 Billion : $2.4 Billion

Alameda Corridor Transportation Alameda Corridor Transportation AuthorityAuthority GoverningGoverning BoardBoardConstitutedConstituted of of SevenSeven MembersMembers

The Alameda Corridor The Alameda Corridor ConsistsConsists of of 25 Construction 25 Construction ProjectsProjects


Map and photograph removed due to copyright restrictions.

Alameda CorridorAlameda Corridor


OWNERAlameda Corridor

Transportation Authority (ACTA)

Program ManagerAlameda Corridor Engineering Team

Retondo Junction

Design EngineerHDR, Inc. &F.R.Harris

Construction Manager Lim & Nascimento Eng’g

Corporation

ContractorShimmick Construction Inc.

& Obayashi Corporation

Mid Corridor

Design EngineerParsons Transportation

Group - HNTB

Contractor Tutor – SalibaCorporation

Henry Ford Avenue

Design EngineerParsons Transportation

Group - HNTB

Construction Manager Parsons Brinkeroff

Construction

ContractorShimmick Construction Inc.

& Obayashi Corporation

Contractual Relationship

Communicational Relationship

Modified CM Design/Build:Modified CM Design/Build:Design SubcontractedDesign Subcontracted

OWNER

CMDESIGN/BUILDER

ARCHITECT/ENGINEER

SUB-CONTRACTOR

SUB-CONTRACTOR

SUB-CONTRACTOR

SUB-CONTRACTOR

Modified CM Design/Build(CM Serves as Design/Builder and Subcontract Design)

Source: Potter, 1995

CM Oversight Design/BuildCM Oversight Design/Build

CM Oversight Design/Build(CM Provides Agency Oversight on Owner’s Behalf)

OWNER

DESIGN/BUILDCONTRACTOR CM

SUB-CONTRACTOR

SUB-CONTRACTOR

SUB-CONTRACTOR

SUB-CONTRACTOR

Source: Potter, 1995

OutlineOutline









SummarySummary

CombinationCombination––Build/Operate/TransferBuild/Operate/Transfer

Facility financed, designed, built, and operated by a private Facility financed, designed, built, and operated by a private developerdeveloperLegal way to Legal way to ““leaselease”” to a concessionaire for a fixed time period to a concessionaire for a fixed time period governmentgovernment--owned/ governmentowned/ government--built facilitiesbuilt facilitiesConcession that at the completion of the concession period, the Concession that at the completion of the concession period, the facility is facility is ““returnedreturned”” to the original owner (government agency)to the original owner (government agency)The government may guarantee a level of service & pay if it is The government may guarantee a level of service & pay if it is shortshortEither agreedEither agreed--upon price or as payment for the concessionupon price or as payment for the concessionDesigned to take advantage of lower cost or Designed to take advantage of lower cost or ““tax freetax free”” funding funding provided by governmentsprovided by governments

The Channel Tunnel, England-France

A 50 Km undersea / underground tunnel connecting England to FranceInfrastructure consists of two main tunnels and one service tunnel (located in the center) Construction Schedule: 1987-1994Estimated Cost (1987 Dollars): $9.1 Billion Actual Cost on Completion (1994 Dollars): $21 Billion Eurotunnel, a consortium of Channel Tunnel Group (British Contractor) and France Manche (French Contractor) is the owner and operator of the channelThe English Channel Consists of Multiple Construction Projects

Source: Winch, 1998 Figures by MIT OCW.

Sea

Seabed

Westbound Tunnel Piston Relief Ducts

Service Tunnel

Eastbound Tunnel

English Channel

England

France

London

Folkestone Coquelles

Paris

The Channel Tunnel, EnglandThe Channel Tunnel, England--FranceFrance

Source: Winch, 1998

FranceTreaty

Channel Tunnel

Usage Agreement

Tunnellier Suppliers

Direct Labor

Engineering Services

Fixed Equipment

Sub-Contractors

Bombardier

Brush

FIAT/BREDA

ConstructionContract

United Kingdom

OperatorBelgian

Railways

GeneralContractor

TML

EuroShuttle Direct WorksTradeContractors

OwnerEurotunnel

ProjectManagerMdO **

ConcessionAgreementGov't

SupervisorIGC *

CommunicationalRelationship

ContractualRelationship

Inter-GovernmentalCommission

Maitre d' Oeuvre

*

**

Figure by MIT OCW.

OutlineOutline









SummarySummary

Four Main Delivery Systems: Four Main Delivery Systems: Relationships Between ParticipantsRelationships Between Participants

Design-Build

Owner

General Contractor

Subcontractor Subcontractor Subcontractor

A/E

Traditional Design-Bid-Build

Owner

Trade contractor

C/M

Trade contractor

Trade contractor

A/E

Pure or Agency Construction Management

Owner

Trade contractor

C/M

Trade contractor

Trade contractor

A/E

Construction Management at Risk

Owner

Sub contractor

Sub contractor

Sub contractor

Construction Function

Design Function

D/B Entity


Internal Relationship


Advantages of the 3 Most Common Advantages of the 3 Most Common Delivery MethodsDelivery Methods

Type of contracts Trad

itio

nal

App

roac

h

Des

ign

Build

Cons

truc

tion

M

anag

emen

t

AdvantagesLegal and contractual precedent XCost determined before contract commitment XFast-tracked construction allowed X XMinimum owner involvement X XCost benefit from competition X XNegotiation with quality contractor for unique expertise X XAllow adjustment to new conditions without changing agreement X XSingle firm control of design/construct process X

Adapted from: Gould & Joyce, 2003

Disadvantages of the 3 Most Common Disadvantages of the 3 Most Common Delivery MethodsDelivery Methods

Type of contracts Trad

itio

nal

App

roac

h

Des

ign

Build

Cons

truc

tion

M

anag

emen

t

DisadvantagesDesign does not benefit from construction expertise XDesign construction time is the longest XAdversarial relationship owner/designer vs contractor XContract agreement affected by changes XFew checks and balances XCost control occurs late in project XContract amount may be complicated by continual contractor negotiations XContract agreement affected by unforeseen conditions X

~x~x

~x~x

Adapted from: Gould & Joyce, 2003

CM @ Risk, DB, & DBB CM @ Risk, DB, & DBB -- ComparisonComparison

Adapted from: CII, 1997

Study Study conductedconducted by CII (Construction Industry Institute) on 350 by CII (Construction Industry Institute) on 350 construction projectsconstruction projectsProvides industry with considerations to aid in delivery method Provides industry with considerations to aid in delivery method selectionselectionKey project data for projects under a certain delivery system weKey project data for projects under a certain delivery system were re collected. These include:collected. These include:

Design & construction cost growthDesign & construction cost growthDesign & construction schedule growthDesign & construction schedule growthConstruction Speed (Sq. Ft./Month)Construction Speed (Sq. Ft./Month)Quality / Turnover: startup difficulty, call backs, operations &Quality / Turnover: startup difficulty, call backs, operations & maintenancemaintenance



Design & construction cost growth = 100 * (Final Project Cost – Contract Award Cost)/ Contract Award Cost

DBB has highest cost growth at 4.83 percent

DB has lowest cost growth at 2.17 percent

Design & construction schedule growth = 100 * (Total As Built Time – Total As Planned Time)/ Total As Planned Time

DBB has highest schedule growth at 4.4 percent

DB & CM@R have zero schedule growth

0 1 2 3 4 5

3.37

2.17

4.83DBB

DB

CM@R

Median Cost Growth (%)

Design and Construction Cost Growth

0 1 2 3 4 5

0

0

4.4DBB

DB

CM@R

Median Design & ConstructionSchedule Growth (%)

Design and Construction Schedule Growth

Figure by MIT OCW.



Construction Speed (Sq. Ft./Month) = [Area / (Total As Built TimConstruction Speed (Sq. Ft./Month) = [Area / (Total As Built Time in Days/30)] e in Days/30)] DB & CM@R have median in 8,000 to 9,000 square feet per monthDB & CM@R have median in 8,000 to 9,000 square feet per monthDBB has median in 5,000 to 5,500 square feet per monthDBB has median in 5,000 to 5,500 square feet per month

0 2 4 6 8 10

8192

9091

5135DBB

DB

CM@R

Median Construction Speed(1000s of Square Feet/Month)

Construction Speed

Figure by MIT OCW.



Quality / Turnover (after construction): startup Quality / Turnover (after construction): startup difficulty, call backs, operations & maintenancedifficulty, call backs, operations & maintenance

Responses are sought with great objectivityResponses are sought with great objectivity

Reponses are from facility ownersReponses are from facility owners

Quality is represented on a scale of 1 to 10 Quality is represented on a scale of 1 to 10

Higher scores represent lower difficulty in startHigher scores represent lower difficulty in start--up & fewer call backsup & fewer call backs

DBB provides least quality levelDBB provides least quality level

DBB DB CM@R

6 7.5 7.43

Low

Medium

High02468

10

Quality - Turnover, Start-up Difficulty

DBB DB CM@R

7 7.9 8.1

Low

Medium

High02468

10

Quality - Turnover, Call Backs

DBB DB CM@R

6.9 7.7 6.7

Low

Medium

High024

68

10

Quality - Turnover, Operations and Maintenance

Figure by MIT OCW.