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Delivering Successful Facility Projects It Starts and Ends with You!

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Presentation on theme: "Delivering Successful Facility Projects It Starts and Ends with You!"— Presentation transcript:

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!

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