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Business Partner June 2012, Copyright 2012, 4Clicks Solutions, LLC.

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Presentation on theme: "Business Partner June 2012, Copyright 2012, 4Clicks Solutions, LLC."— Presentation transcript:

1 Business Partner June 2012, Copyright 2012, 4Clicks Solutions, LLC

2 What is The BEST electronic presentation of RSMeans Cost Data Software Technology to efficiently deploy and manage Job Order Contracting (JOC) programs, SABER, IDIQ, SATOC, MATOC, MACC, POCA, BOA … 2

3 Who Uses Building Owners, Contractors, and AEs doing a lot of RSMeans-based line item cost estimating. Contractors, AEs working with and hoping to work with and/or improve work on DOD/non-DOD Federal Government, State/Local/County Government, Education, Healthcare, or Airport/Transportation - Renovation, Repair, Sustainability, and Minor New Construction Projects #1 #2 Anyone sharing or collaborating on RSMeans-based line item cost estimates #3 3 Over 80% of United States CONUS Air Bases, and rapidly growing numbers of other DOD and non-DOD Federal Real Property Owners. #4

4 Built to enable Collaboration among Owners, Contractors, Subs, & AEs. Enhanced 400,000 Line Item RSMeans Cost Data* Integrated Estimate, Project, Contract, & Document Management Automated Owner/Contractor Estimate Comparisons *Including Full Descriptions and Modifiers. References, Graphics, and Specifications are also electronically available. Exclusive Features of 4

5 Set Contract Coefficients Manage Multiple Projects with Multiple Coefficients Track and Report RSMeans Line Items and non-RSMeans Items (Priced and non-Priced) Specifications Linked to Cost Estimate (Summary and Detailed) Track Project Status – From Concept Through Warranty Additional e4Clicks Project Estimator Features 5

6 Software Overview 6

7 Rapid Implementation Easy-to-use, Single seat to Network/INTERNET deployment Consistent Usage Organizations JOC, SABER, etc. procedures embedded in software Transparency System-wide RSMeans-based UPB (North American Standard), or your own cost guide Collaboration Built-in estimate/project/document/contract management Performance Gains Estimate re-use, shorter project timelines Benefits of 7

8 e4Clicks BASIC Targets Sub-Contractors who estimate and dont require contract, document, or project management features. Includes the Basic Version of eTakeoff. e4Clicks PROFESSIONAL For General Contractors and Sub-Contractors who require multiple project management, document management, contract management, advanced estimating features, exporting to Adobe PDF and Microsoft Excel importing other external databases. Includes the Pro Version of eTakeoff. e4Clicks PREMIER For Owners to estimate and manage entire contracts or programs in a single product. Premier is used through-out the country on single and multiple award contracts (MACC, MATOC, JOC, SABER, BOA, etc). Estimate Comparison and Technical Evaluation features are included in this version. Includes the Premier Version of eTakeoff. Subscription Pricing Model Software Versions 8

9 Studies have readily demonstrated the errors and lack of productivity related to spreadsheets – date entry and formulae errors, costly data maintenance, lack of collaboration, and miscommunication. CostWorks and e4Clicks Project Estimator are NOT competitive. CostWorks delivers excellent electronic access to RSMeans Cost Books without modifiers, enhancements, etc. e4Clicks Project Estimator is an advanced and collaborative cost estimating, project management, contract management, document management package inclusive of visual estimating. Are you using SpreadSheets or CostWorks TM ? 9

10 e4Clicks Project Estimator Software – Subscription pricing models Custom Unit Price Book / Cost Data Engineering Services Software Training* - Owners, Contractors, and AEs Consulting and Marketing to Support JOC Programs * Regional, On-site, Virtual/Remote Full Product & Services Offerings 10

11 What is the cost of e4Clicks Project Estimator? The annual cost of e4Clicks ranges from approximately $850/year to $2500/year per concurrent users and is dependent upon the software version and RSMeans cost databases required. Can I create custom line items in addition to RSMeans line items? a. Custom line items can be created for the Owners UPB, or an entirely custom UPB. b. Once a UPB is created and the JOC program is running, and non-priced items are noted and appropriately handled. How often is are the UPB cost updated. This is entirely up to the Owner when establishing the JOC contract. We recommend annual price updates at a minimum, with quarterly updates via CCI available. FAQs 11 How long has JOC – Job Order Contracting been available? JOC was first deployed in the 1980s and is used to efficiently manage billions of dollars of project annually, with documented savings coming via more efficient procurement, shorter overall project timelines, and better/long term owner/contractor relationships.

12 A Primer for Job Order Contracting (JOC) 12

13 A Primer for Job Order Contracting (JOC) (Source - Material adapted from worked done by Lisa Cooley, formerly with Centennial Contractors) Job Order Contracting (JOC) is a method of managing multiple details of renovation, rehabilitation, repair, and other construction projects on a predetermined set of pricing and standards. By using JOC customers take advantage of a process that is fast and responsive to their needs while providing excellent quality construction. --Center for Job Order Contracting Excellence ( 13

14 Contractor Definitions? Contractor: A gambler who never gets to shuffle, cut or deal. Bid Opening: A poker game in which the losing hand wins. Low Bidder: A contractor who is wondering what he left out. Engineer's Estimate: The cost of construction in Heaven. 14

15 Low-bid Contractor? 15

16 Smaller projects easily can take up to 1 year to procure Up to 22% of project costs are consumed in design and procurement Change orders can increase project costs by 50% Claims and litigation are the Status Quo Large backlogs and inefficiencies negatively impact an organization's mission. A World Without JOC 16

17 Federal Government Army Navy Air Force Veterans Administration GSA / Department of Homeland Security US Postal Service Higher Education University of New Mexico Northern Arizona University City Colleges of Chicago Georgia Tech Healthcare Harris County Hospital District University of Washington Hospital System Transportation Phoenix Metrorail DFW Airport State/County/Local Government State of Washington State of Arizona City of Phoenix City of Houston Baltimore Housing Authority Los Angeles County (DPW) K-12 Independent School Districts (IDSs) Hartford County Schools Loudon County Schools Dallas Public Schools Houston ISD Mesa Public Schools (AZ) Who is using JOC? (partial listing) 17

18 Faster project delivery (3-9 months less) Streamlined engineering and design Cost visibility/transparency Better contractor performance Integrated Team - Partnering/collaborative owner/contractor relationship More opportunities for local business Effective use of year-end funds Higher overall satisfaction* JOC Benefits / Results *Mulcahy, Francis S. The Effectiveness of Partnering and Source Selection in Job Order Contracting. Masters Thesis, University of Washington,

19 JOC / non-JOC Timeline Comparison 19

20 Long-term contracts foster a higher level of investment in making the working relationship yield successful results A JOC program not a project Allows for the development of a trusted partner JOC - Establishing a Fiscally Beneficial Relationship 20

21 Pricing structure relies on a Unit Price Book ( UPB ) For example - Standardized, but enhanced 400,000 line item RS Means Cost Data Custom and/or localized UPB and/or line items. Competitively-bid coefficient (multiplier, factor) establishes pricing at the outset of the contract. Coefficient includes all costs including materials, labor, overhead, profit, and sometimes bond and tax. Example: 1 SF Drywall $1.00 Coefficient Contractual Price $0.92 The Pricing of JOC Projects 21

22 Delivery orders are firm fixed price, lump sum UPB is an estimating tool Unit price proposals represent contractors committed priceit converts to lump sum Change orders rare, and with consistent pricing structure Brings IPD/CM advantages to smaller projects but in an efficient way with an at- risk incentive to perform. 22 JOC Delivery Order Pricing

23 Items not appearing in the Unit Price Book are considered Non Pre-priced Items (NPP) Typical NPP options: NPP coefficient serves as a markup on three transparent subcontractor bids NPP markup can be set per contract provisions Once a new unit price is negotiated it can be incorporated into the contract Some contracts will prohibit or limit NPP items as a percentage of delivery orders. Sample Contractor Bid: UPB Coefficient.92 applied to line items NPP Coefficient 1.18 applied to actual sub costs Non-priced Items 23

24 Either the Unit Price Book or the Coefficient is usually adjusted annually Dynamic cost databases generally maintain the same coefficient Customized price books typically adjust coefficient annually according to an industry benchmark (RSMeans City Cost Index-CCI), and/or add customer-specific unit price line items Goal is to help contractor and owner manage risk Dynamic vs. Static Costs 24

25 Change Orders are rare in JOC Owner-initiated Truly unforeseen conditions UPB governs original scope of work and scope added after Puts owners at an advantage when directing changes in the work Change Orders and JOC 25

26 Analyzing potential JOC volume Review historic project data (2-3 years) and reconcile with budget projections. Segregate projects by size, location, type, etc. What will your JOC bandwidth be? All-inclusive, or selective? As defined by scope, or urgency. Size limits? Consider in-house capabilities, other contract vehicles, and political influences Define contract footprint, including potential regionalization Single or multiple award Numbers to consider. $3Mminimum annual volume for standalone JOC program $6Mmaximum efficiencies are achieved, allowing addition of support staff Many owners with less volume can access JOC through purchasing cooperatives Owners Preparing for JOC 26

27 Assess in-house capabilities Project Management Capacity Skillsets Line-item estimating, or ability to review estimates, Proactive definition of scope, In-house maintenance crews Training Plan How will JOC interface with your design professionals? Flowcharting how JOC process will interface with purchasing, management and board approvals One Owners Management Plan: Each PM manages projects simultaneously, up to 50 per year Owners Preparing for JOC 27

28 Company culture of high performance needed to succeed in JOC? Ability and capacity to create productive teams? Proactive rather than reactive? Line item estimating capabilities? Contractors Preparing for JOC 28

29 Considerations that drive the coefficient: Contract volume (higher volume = ) Geographic dispersion of projects (further apart = ) Type of work Average size and size range of delivery orders Three Ss: Supervision, Security, Safety Contract Administration Cost For RS Means, Division 1 provisions and column used (Bare Costs vs. O&P column) UPB used Marketing costs Look at historic coefficients, but beware of changes that can impact the coefficient! Contractors Preparing for JOC 29

30 Bidding the Coefficient: Historic Costs Reconcile 2-3 historic projects where final costs are known against a line item estimate generated from UPB Focus on Divisions 2, 9, Mechanical and Electrical? Program Costs Calculate total personnel and overhead costs to manage the program, reconcile with typical project costs and then reconcile unit costs with select line items Contractors Preparing for JOC 30

31 Once a JOC Program is in place, client project demands/requests happen over the contract term. This starts the JOC Process: The JOC Process 31

32 Scope Variability - Detail of Owner scope preparation varies according to: Owner preference and skillset Owner people resources available When in planning cycle project was identified for JOC Owner Provides: Project Need, Target Budget Owner Provides: Defined Scope Document Owner Provides: Complete Bid Documents More turnkey, contractor led More proactive owner involvement Range of Owner Participation The JOC Process - SCOPE 32

33 Typically within days Collaborative Process Goal of capturing every necessary component of work Site Visits 33

34 Demo / dispose of 3 existing lights Reuse existing circuit for new lights. Remove & replace 2 existing HVAC grilles Install gyp ceiling at 8' 8" with 4 new surface mounted explosion proof lights. Relocate existing smoke detector to new ceiling Demo CMU for 42" opening min. (exist opening +/- 36") Demo & dispose of existing metal partitions and replace with new 4" CMU covered completely with ceramic tile, with one block scupper at bottom of each Remove and reinstall existing 3 urinals and 2 commodes Demo ceramic tile, floors and walls, (exist ceramic on walls is approx. 8'-0" high) Owner/Contractor-Joint Scope Development /Documentation 34

35 Performed in- house Included in coefficient Will engage design professional when needed Major building system engineering Structural Life-safety Targeted or Incidental Design 35

36 Presented to owner for approval Important confirmation step for aligning vision and expectations prior to proceeding with labor-intensive line item proposal Scope and Work Plan Submitted to Owner 36

37 The JOC Process - PROPOSAL 37

38 Generation of the line item estimate Assurance of a fair price: – Are the line items appropriate? – Are the quantities correct? Owner has to understand the process and have faith that it provides competitive value Proposal Format 38

39 39

40 Project Execution 40

41 The Program First used JOC through a cooperative, then solicited their own contract Sophisticated owner that uses JOC in a targeted way RSMeans UPB The Value Badged and screened contractor and subcontractors who understand the security logistics of working in an airport environment A contractor who will go the extra mile to meet ambitious schedules Faster, Faster, Faster! Case Study – DFW Airport (Dallas/Fort Worth) 41

42 JOC is a form of IPD – Integrated Project Delivery Emphasis on Pricing Transparency Integration Across the Building Lifecycle JOC of the Future Blog Technology Changes: – Link to Building Information Modeling – Cost Databases and Estimating Approaches will further evolve to reveal lifecycle costs Greater Good goals – Small and disadvantaged business utilization – Sustainability The Future of JOC 42

43 Center for Job Order Contracting Excellence RS MeansUnit Price Books, Training, JOC Consulting 4clicksEstimating/Management software for JOC programs Kosten-Technik InternationalJOC estimating services for owners and contractors Job Order Contracting - RESOURCES 43

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