Contract Options Overview

PM/CAM TrainingH. Jeff MooreMay 11, 2009

AGENDAOverviewCM at RiskDesign (Completion) / BuildLunch Break / Discussion – 11:30 AM – 12:30 PM

CM Agency

HECOM UPDATE POSTED

CONSTRUCTIONContract Administrators - Health Science

Martin Best Bill Martin

CONSTRUCTIONContract Administrators – Academic

George Cullen Julie Garmel

1995 – Trial Approval from DEB & Attorney General to Use CM Agency for Law School Renovation & Expansion

CM Agency AdvantagesVM & Constructability SavingsTeam Player vs. Adversarial RelationshipReduced Trade Contractor Claims & Litigation

– Especially in Occupied Buildings with Unforeseen Building Conditions

No Conflict of InterestInvolvement During Design Phase Reduces

Risk & Lowers FeesFlexibility to Adapt to Changing ConditionsEstablishment of “Real” Costs & Contingencies

CM Agency AdvantagesFull Disclosure on Project Cost Status

Reducing RiskRespected/Efficient/Well-Managed CM

Receives More Competitive BidsElimination of Document Conflicts & Overlap

Reduce Change Orders“Complete” Documents for ProcurementMinimize Disruption to ClientsReduce Overall Design & Construction

DurationDetermine Requirements for Off-Hours Work

EarlyPackage Project for Best Trade Pricing

CM Agency AdvantagesSolicit & Generate More Interest in Each TradeProactive Approach to Material & Equipment

Procurement, Labor Issues, Potential DelaysFull Disclosure of Project Schedule StatusCM Expertise Provides “Hard” Figures on

Project Cost Minimizing Potential For Trades Being Over Budget

Protect the Reputation of Clients & Their Ability to Teach/Conduct Business/Earn Income

Contract Options for CMs/Contractors CM At Risk w/Design Phase –

Multiple Contracts; > $5M Design (Completion) / Build CM Agency w/Design Phase; >

$20M Competitive Negotiation

Contractor – Fixed Price – Versions I (+$5M), II ($2 to $5M), & III (< $2M) - Trade Packages

Additional OptionsCompetitive Sealed Bid – Construction OnlySelect Bidders for IFBOn-Demand; < $5M

Academic (16); Academic Research (8); Medical (7); Roofing (5)

Special Projects (4) – Requires Rapid Construction Response; < $2M

Sole SourceEmergency

General IssuesCurrent Advertisements –

http://www.fm.virginia.edu/fpc/ContractAdmin/ConstructionAdvertise.htmRFPs vs. IFBs

RFP process increases procurement workload (short-listing, interviews, etc.)

Contract Admin. review & editing of RFPsCoordination w/ Legal (Steve Rosenberg) on

Contract Documents & Bonding

Introduction to Process BasicsShort-listing

Licensed in Virginia; Bonding Capacity

Firm Experience

Schedule & Cost Control

Similar Project Experience by Proposed Team

SWaM

HECOM /UVA Experience

Firms May Request to be Added to List

Introduction to Process BasicsTechnical Proposal - Categories & Weighting

Key Personnel, Experience & Qualifications – 30 to 35%

Past Performance and Experience – 20 to 25%Management Capability/Project Plan/Schedule

(Value Management) – 25 to 30%Value Management – 0 to 10%SWaM Firm Utilization – 10%

Introduction to Process BasicsCM Price Proposal – Key Components

Document Review, Procurement, & Construction

Phase Services

Home Office Overhead & Total Profit

Field Office Staff Costs

Field Office Staff General Conditions

Other GC Fixed Price Risks/CM Contingency (At

Risk)

Introduction to Process BasicsCompetitive Negotiation & Design/Build

Price Proposal – Key Components

Lump Sum Pricing with Options/Breakdown

(i.e. Design Completion for D/B, Construction

Packages)

Unit Prices (i.e. Soils, Rock)

Additive Price Items

Introduction to Process BasicsProposal Scoring

75% Technical / 25 % Price – CM At Risk & Agency with Design Phase Services

50% Technical / 50% Price – Design / Build & Competitive Negotiation (Significant Construction Component)

Introduction to Process BasicsDocument Review Phase Services

Design ReviewConstructability ReviewEstimatingSchedulingPhasingValue Management (VM)Trade PackagingLEED & Commissioning

Introduction to Process BasicsConstruction Phase – Pricing

Proposals (Bids)Select Additive Price ItemsEvaluate / Negotiate VM ProposalsFinalize Contract Amount Within Budget

AGENDAOverviewCM at RiskDesign (Completion) / BuildLunch Break / Discussion – 11:30 AM – 12:30 PM

CM Agency