CMGC Pre-Construction Phase

solesudaneseUrban and Civil

Nov 25, 2013 (3 years and 11 months ago)

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Module IV:

CMGC
Pre
-
Construction Phase


Joe Elsen, Region 3

Benjamin Acimovic, Region 1

Topics


Importance of the Preconstruction Phase


Partnering


Active Project Management


Risk Assessment and Risk Register


Constructability and Written Reviews


The Open Cost Model


Environmental Clearances


Independent Cost Estimator


GMP Process and the D
-
B
-
B option




Importance of the Preconstruction Phase


The Preconstruction phase is where the ground work for the
relationships, negotiations, models, and risk register that will
make the project successful is performed.


The Preconstruction phase is where the partnering and
communication is critical to the success of the project.


The contractor gets to fully understand the site constraints


The contractor gets several months of project exposure


There is an opportunity to shorten the project critical path


Managing
scope, schedule, and budget is
enhanced.


Managing relationships, people, and
personalities









Partnering


Critical to the success of the project:


Establish organizational roles and responsibilities.


Establish lines of communication between all team members.


Set the culture that will continue throughout Pre
-
con and Construction Phases


“No blame, only solutions” (quote from FHWA Peer Exchange on CM/GC)


Builds the relationship foundation for:


Understanding schedules and assumptions


Creating an atmosphere where effective problem solving is rewarding


Minimizing disputes and fast tracking dispute resolution


Adding to overall success of the project.





Active Project Management


The role of the CDOT Project Manager and CDOT Team


Trust is vital


CDOT PM needs to lead the meetings and manages all communications,
roles, and responsibilities.


Plays key role as facilitator and mediator for the team.


Empowered to manage and lead the project.


Project management team must be very involved in the project knowing
design and construction aspects so that quick decisions can be made.


CDOT management team needs to have the resources and time




Active Project Management


The role of CDOT HQ and Region Specialty Groups


Backup the project management team.


Typical design
-
bid
-
build responsibilities


Design input and Review with team and the ICE


Attend Meetings and participate actively


Understand roles and responsibilities


Similar to D/B/B, with added collaboration


Engage in Risk Assessment and Mitigation




Active Project Management


The role of the contractor in design


Contractor acts as an advisory or subject matter expert in the area of
construction, constructability, construction estimating, schedule, material
choices, risk assessment.


The role of the designer (consultant or CDOT) in design


To design all aspects of the project


traffic, roadway, bridge,
geotech
,
walls, hydraulics, etc.


Responsible for stamping the plans


Both are required to communicate and collaborate!






Active Project Management


What happens when:






Active Project Management


It’s up to the CDOT project manager to lead, mediate, and make
the decisions if the team has collaboration issues.


Keep the partnering strong and document everything with emails
and memos.


Know the project scope, budget, and schedule as well as anyone
on the project.






Risk Assessment and Risk Register


Risk Assessment


CM/GC allows the team to
jointly

identify, discuss, and analyze risks


Assign that risk to the party
best
-
suited

to mitigate the cost or schedule impact


During preconstruction, risk can often be eliminated through design changes



Risk Register


Many risks are identified during Project Delivery Selection process


Contractors assess risk on virtually every job


contingency $ added


Joint use of the Risk Register allows good decisions to be made and limit contingencies


Allows the contractor to track and communicate the risk it sees as high, medium, and low.


Risk Assessment and Risk Register


Shared Risk Contingency Pool


Think of this as a Minor Contract Revisions (MCR) pool that is for risks that occur.


The Contractor’s pricing has the risk removed from unit prices.


Creates an incentive to avoid use of the Pool since it will be split 50/50 at the end


Range of approx 3 to 10% and will be negotiated on a project by project basis.


Constructability and Written Reviews


Constructability Reviews


Focus on project “means and methods” to build the work.


Are these plans and specifications able to be constructed effectively?


Example


determination of crane type and quantity to erect a bridge


Need to consider many factors including Context Sensitive Solutions (CSS)


Having the contractor at the table to give “real costs” is invaluable during this phase.


Crane charts for pad location and swing requirements are analyzed to predict time and cost
.


Written Reviews


Critical to document decision
-
making process.


Able to track changes efficiently


Less “reinvention of the wheel”




ROLE OF THE CONTRACTOR


Dotsero

Preconstruction


Value Added



Dotsero

Preconstruction


Value Added


Input from Kraemer on Early Design Work :

o
Beam Erection Analysis / Selection of Girders



2400V


Value Added


Input from Sturgeon Electric:

o
A one word mistake discovered by Sturgeon saved CDOT $1.4 million.
Two Starter Two Winding


Two Starter One Winding

o
Identified high risk in 35 year old cables and wires falling part during
removal of cabinets. Replacement of cables was added to the
project.

o
Long Lead Time Cabinet Switchgear ordered before construction
phase began. Allowed teams to continue design and begin
construction ahead of cabinet delivery.


The Open Cost Model


How much is this project really going to cost?


Costs can change from Scoping to FIR to FOR to Construction to Final Payment


How sure are you?


With D/B/B we mainly focus on historical numbers and market conditions.


Looking at Labor, Materials and Equipment


CM/GC allows actual contractor bidding info to be examined prior to finalizing design.


Transparency and documentation is critical.


Very important to reach agreement on quantities, units, assumptions, and specifications.


Importance of locking down the CM/GC Management Fee


Using “Best Value” we obtain this number during the procurement of CM/GC services.


Transparency is Key
-

be respectful of the Confidentiality Agreement!

Environmental Clearances


D
-
B
-
B Process


Very similar to D/B/B and processes that CDOT already has established.


The recently revised Design Bulletin offers greater latitude, pending FHWA
approval, to advance design past preliminary stages prior to decision
documents or top part 128 clearances.


Multiple Phases


The multiple GMP approach is beyond the scope of this training.


Each phase or bid package must be severable and able to advertise and
complete without any other part of the project.


Each Package is cleared and taken to construction separately.


Examples are construction of a key haul road, detour, or bridge work, etc

Independent Cost Estimator


Role of the ICE


The ICE is an independent check for construction cost estimating


They are contracted directly by CDOT and cannot be contracted directly by
the project design consultants or contractors.


They need to understand the assumptions that go into pricing the work.


When does an ICE come into play?


Typically at 30%, 60% & 90% plan reviews, to compare to the Contractor’s
“Opinion of Probable Construction Cost” or OPCC


When an LLTP GMP proposal is submitted.


When a construction GMP is submitted.


How do we bring an ICE onboard?


By Task Order
-

CDOT will have a statewide NPS contract available in
February (also appropriate to procure a Project Specific contract)


GMP Process and the D
-
B
-
B option


What is a GMP?


A Guaranteed Maximum Price, or GMP, is submitted by the Contractor as a
proposal to CDOT. It is created from two parts:


Direct costs of completing the construction work in bid form


Construction Management Price Percentage




Margin (Overhead, Profit, and General & Administrative costs)


It is essentially their bid for the work without Risk Contingency which is
handled through negotiated F/A items and a shared risk contingency pool.




GMP Process and the D
-
B
-
B option


What happens if a GMP proposal is not accepted?


The GMP needs to be within 10% of ICE and EEMA estimates.


GMP proposals can fail. Our guidance is that GMP proposals can be
submitted three times and the open cost model renegotiated in order to
reach agreement.


If no agreement can be met, CDOT reserves the right to advertise the bid
package to solicit low bids.


The CM/GC firm can NOT bid on the project as the general contractor.




CM/GC Preconstruction

Questions?