1. Delivering Successful Facility Projects It Starts and Ends with You!
Al Erdman - Central Texas College

2. Standard Disclaimers
This presentation is not intended to be a complete illustration of the design and construction process.
Rules and law governing many of the processes and procedures that will be discussed are governed under HB 628 (codified as Chapter 2267 of the Texas Government Code effective ), Chapter of the Texas Government Code, and TX Education Code Chapter 44. Please refer to these for more detail or clarification.

3. The Process Assembling the committee Assembling the team
Designing the project
Bidding the project
Construction
Post construction/warranty

4. Assembling the Committee
Someone has to take the lead –as the CFO you’re probably going to have to live with it
Multi-functional representation
Facilities IT
Faculty
Staff & administrators
Other occupant representative(s)
Set ground rules for communication
Compile, distribute and review minutes!
Establish what success looks like
Budget, function, schedule, appearance etc.

5. Assembling the Team Team is a critical concept
College committee
Consultants hired by college (2 step)
Architects
Materials testing
Roofing consultant
LEED consultant
Commissioning agent
Owner’s rep PM firm (optional)
Establish project delivery method early on – typically:
Construction Manager at Risk (CMAR) –early addition
Design-Build – early addition
Competitive (low) bid – late addition
Competitive Sealed Proposals –late addition

6. CMAR, Low Bid or CSP Relationship
Provide consultation during design phase and serve as general contractor during construction phase.

7. Key Concepts in Hiring AEs & CMs
Hire for chemistry not for reputation
Don’t fall for bait-and-switch
Ask for project list for last xx years
Everything is negotiable
Use your own contracts (modify AIA versions)
Price is only one factor – 40% guide
Watch out for lowball pricing
Listening is an overlooked skill
You are the boss!

8. Setting Direction is Important
Reconfirm what success looks like
Reconfirm rules
Establish preliminary schedule(s)
Establish budget
Construction
AE & consultant fees
Other (furniture & equipment, etc.)
Contingencies – 10 to 20%
Design
Owner

9. Early Program Definition Benefits
37%
Poor
Average
Good
A number of years ago some of our staff met Ed Merrill, President of Independent Project Analysis in Vienna Va. They are a construction industry think tank that specializes in petrochemical and pharmaceutical plants. They are a “go-to” company for benchmark statistics if you have a refinery or a pill factory to build somewhere in the world.
Mr. Merrill said that his data revealed that a well defined project cost 17% less than the average in his database. A poorly defined project cost 20% more. That’s a 37% swing.
We don’t know the details behind those statistics, but it makes sense to us. Does it to you?
Well-defined projects cost 17% less than the average
Poorly defined projects cost 20% more.
Edward Merrill Independent Project Analysis Corp. Reston, VA

10. Why are Contingencies Important?

11. Designing the Project Design phases
Schematic Design (SD)
Design Development (DD)
Construction Documents (CD)
Team MUST review plans & specs at end of each phase
Ensure that AE assembles and answers comments from team before progressing to next design phase
Do cost estimates at end of each phase to keep project within budget
Owner must approve use of contingency!

12. Why is Early Review Important?
Written requirements
Design drawings
The cost of changing something increases by a factor of about 10 each time the project changes its state.
Construction drawings
Construction
Occupancy

13. Bidding the Project
Make sure plans & specs are complete (include draft contract if possible)
Reach out to potential bidders
Hold a pre bid conference – issue addenda
Give bidders sufficient time to bid
Evaluate using published criteria
Select the bidder that represents “best value”
If CMAR, make rankings public within 7 days
Contract and issue Notice to Proceed (NTP)

14. Let’s Get Building! Ensure that Coordinate pre construction meeting
Contract is signed
P & P bonds and insurance are in place
Notice to Proceed is issued
Coordinate pre construction meeting
Team should attend along with key sub contractors
Reconfirm definition(s) of success for the project
Discuss college “rules”
Review project schedule
Review communication requirements
Emphasize safety
Contractor is responsible –site “belongs” to the CM

15. Construction Progress/Administration
Weekly meetings
Discuss major project issues
Schedule
Requests For Information (RFIs)
Change Orders (COs)
Safety – close calls and accidents
Attendance by critical sub consultants & contractors
Ensure that AE takes and distributes minutes!
Weekly project walks by Team
Team approach

16. Substantial Completion
Substantial completion – defined by the AIA
§ A Substantial Completion is the stage in the progress of the Work when the Work or designated portion thereof is sufficiently complete in accordance with the Contract Documents so that the Owner can occupy or use the Work or a portion thereof for its intended use.
Architect walks project (with Team), certifies, and develops/attaches punch list
Ownership of the project transfers to college (along with insurability!)
Generally owner occupies at Substantial
Warranty commences

17. Final Completion Final Completion
CM notifies AE project is complete in writing
AE walks project & certifies completion of punch list
CM submits final pay application to AE along with
Certifies that all bills have been paid from prior pmts.
Conditional lien waiver
Attestation that insurance will be kept in place through warranty period with cancellation notification
Consent of surety
Other documents required by contract
AE submits final pay application to owner

18. Warranty
Commences at substantial completion and usually runs for a year
Make sure warranty list is compiled by CM, updated, and reviewed monthly by Team
Conduct six and eleven month walks!
Look for reoccurring problems
If we’ve paid out the AE and CM how do we know they will work
Reputation and future work is the driver
Owner can also require a maintenance bond in contract

19. So What Have we Learned? Assembling the right college team is critical
Define success early on
Hire an architect that will listen to you
The project delivery method should be decided at the beginning the project
Contracts govern everything
Stay connected during construction
Don’t waffle on substantial completion
Drive the project through to final completion
Have fun!

20. Questions!