project delivery strategies€¦ · • simplest to administer • allows for negotiations with...

TAHFM

Sid Sanders,

Sr. Vice President

Project Delivery Strategies April 8th 2013

Project Delivery Methods

• Design-Bid-Build

o Hard Bid

o Competitive Sealed Proposals CSP

• Construction Manager at Risk CMR

o Design Assist CMR-DA

• Construction Manager as Agent CMA

• Design/Build DB

o Design/ Build Bridging


Competitive Sealed Proposals

Owner

General

Contractor

Project

Manager

Subcontractor Subcontractor Subcontractor

A/E

• Allows selection to be

qualifications influenced

• Establishes clear market

price

• Simplest to administer

• Allows for negotiations with

best-value contractor

• No ability to fast track

• Limited ability to establish early

construction cost

• Limited ability for to perform

constructability and value engineer

• Potential for adversarial relationship


Construction Manager at Risk

Project

Manager

Construction

Manager A/E


Owner

• Complex buy-out process

• Requires significant fiduciary

oversight

• Risk of early start must be

mitigated with contingency in

GMP

• Allows for fast tracking and early

delivery

• Allows delayed decision making on

program elements

• Allows for Guarantee Max Price

(GMP)

• Allows for collaboration and

constructability


Construction Manager as Agent

Project

Manager

Construction

Manager

Subcontractor Subcontractor

Subcontractor

OWNER

Subcontractor

A/E

• Gives Owner considerable flexibility

and professional expertise

• Best used in large projects with clear

divisions of subcontractor responsibility

either by phase or scope

• Owner does not have a GMP with the CMA

• Lack of budgetary accountability can be disastrous on projects

requiring high level of subcontractor coordination

Project

Manager

Design/Build

Team

Owner



Design/Build

Bridging Architect

• Single source of all project delivery

• Allows for extreme fast tracking

• Industry has developed a number of

product type specialists

• Allows for high degree of

collaboration

• No independent contract with

design team

• Requires rapid decisions by

owner — “Collapsed Decision

Making”

• Early starts can result in unclear

quality/scope expectations

Selecting a Delivery Method

COMPLEXITY OF OWNER/DECISION MAKING

CMR

CSP

DB

Low Level

• Simple Decision

• Few User Inputs

High Level

• Multiple Decisions

Thru Life of Project

• Many Different User

Inputs


COMPLEXITY OF PROJECT

CMR

CSP

DB

Low Level

• Simple Bldg Technology

High Level

• Complex Bldg Systems

• Complex Functionality

• Large Scale

• Complex Phasing


SPEED OF PROJECT

CMR

CSP

DB

Slowest Fastest

Project

Manager

Design/Build

Team

Owner


Design/Build - Bridging

Bridging Architect

• 13,000 SF, Four OR, Ambulatory Surgery

Center

• $6.5 M TPC

• SD Bridging package began December 2011

• Bridging package issued January 2012

• D-B team selected February 2012

• Construction began May 2012

• Substantial Completion February 2012

DB-Bridging Example

Surgery Center

Surgery Center

• 1250 cars

• Connecting bridge

• Miscellaneous site improvements

• $12.6M TPC

• Bridging package began December 2011

• D-B team selected February 2012

• Construction began March 2012

• Opened February 2013

DB-Bridging Example

West Houston Garage

Competitive Sealed Proposals

Owner

General

Contractor

Project

Manager


A/E

• 166,000 SF, Medical Office Building

• Connecting bridge

• Miscellaneous site improvements

• $20M TPC

• Proposals taken October 2012

• Construction began February 2013

• Substantial Completion anticipated February

2013

CSP Example

West Houston MOB 2

CMR w/ Design Assist Subcontractors

Project

Management

Team

Construction

Manager A/E


Methodist

Project Life Cycle

PROGRAM

PRELIM. DESIGN

CONCEPT

PROJECT LIFE CYCLE

PR

OJ

EC

T

EX

PE

ND

ITU

RE

S

FINAL DESIGN

BUY-OUT

CONSTRUCTION

FURN./

COMM.

LE

VE

L

of

INF

LU

EN

CE

Selection of Delivery Model

Cost

Curve

Influence

Curve

Project Delivery Selection

Problems with typical CM at Risk integration

More information is needed earlier in project conceptualization

Critical technical knowledge, cost and creativity exist in the Sub-contractor and Manufacturing firms

The procurement “below” the CM-R tends to become design-bid-build (slowest & least innovative procurement)

Key parts of project are redrawn in shop drawing process by selected Sub-contractor & Manufactures

Traditional Flows of Project Information

•Construction

Documents

•Technical

Bulletins

•RFIs

•Submittals

Project Life Cycle

PROGRAM

PRELIM. DESIGN

PROJECT LIFE CYCLE

PR

OJ

EC

T

EX

PE

ND

ITU

RE

S

FINAL DESIGN

BUY-OUT

CONSTRUCTION

FURN./

COMM.

LE

VE

L

of

INF

LU

EN

CE

Selection of

Construction Manager

Cost

Curve

Influence

Curve

Desired Point of Project Integration

CMR w/ Design Assist Subcontractors

Project

Management

Team

Construction

Manager A/E


Methodist

Goal: Move up key

subcontractors in

process as Design-

Assist agents

Project Delivery Method

CMR-DA Example

West Houston Hospital

• Green field site

• 193 bed, 465,000SF Hospital

• 20,000 SF Central Thermal Plant

• 160,000 Medical Office Building

• $325M TPC

• Master planned to double capacity over time

• Design team selected October 2007

• First Patient admitted December 2010

West Houston Hospital

OWNER

ARCH

ENG

SUB

SUB

CM

Collaborative team selection

Design-Assist Agents

HVAC

Plumbing

Electrical

Glazing/curtain-wall

Elevator

Medical Equipment

Fire Protection

Kitchen Equipment

Specialty

Management teams

Meets weekly to coordinate design

and documents

Team does clash detection

Design Assist Team Field Coordination Team

Meets weekly to plan and coordinate

work to be installed

Focus is on short term: 2 to 4 weeks

CM AE

Owner

PM

Global

Push scheduling

Granular

Pull scheduling

Design Assist Team

• Weekly work sessions with CMR, architect, engineers

and design assist subcontractors starting at Design

Development

• 3D modeling with collision detection managed by the

HVAC subcontractor incorporated structural frame and

all above ceiling items

• Design team developed documents to Issue For Permit

(IFP) status and handed off to Design Assist Sub

• Design Assist subcontractor then completed detailed

design for Final Design documents

• Final Design documents were modeled to resolve

conflicts, reviewed by design team and then sent to

procurement or fabrication.

Field Coordination Team

• Weekly work sessions with CMR, architect, engineers

and subcontractors starting at beginning of construction

• Focus on procurement and construction sequencing led

by the CMR

• Purpose was to insure resolution of systems in order to

maintain construction schedule

• Typically concentrated on items that would be required

for efficient sequencing of work

• Also focused on items needed for buy-out packaging

and for building permitting in a Just-in-Time manner

Design Assist Building Information Modeling

One-line duct layout

3D Modeling

Off-site Duct Fabrication from 3D Model

Prefabricated plumbing fixtures from 3D Model

Prefabricated Window Assemblies from 3D Model

CMR-DA Example

Build-out Sugar Land Hospital

• Build-out of a cold-shell bed floor

• Two nursing units of 28 beds each; total of 56

beds

• $9.8M TPC

• 39,500 SF

Design Assist Headwall

Risk transfer

Complete risk transfer

No collaboration No risk

No accountability

Risk transfer

Pro

ject

Perf

orm

an

ce

Shared and allocated

risks and rewards

Challenges of Design Assist Process

How to keep early selection Sub-contractor competitive

in final pricing

Design team and construction team naturally revert to

traditional roles

Reluctance to step out of traditional roles due to

unknown risk issues

Many Subcontractors do not have design assist

capability

Many CMRs and Subcontractors are reluctant to commit

to GMPs until construction documents are well

developed

How to define the appropriate Design Assist hand-off

point

Program Management 2.0 is available

from the CMAA bookstore at

www.cmaanet.org/cmaa-bookstore