Presentation on theme: "Click here to add text The Single Prime Contractor Delivery Method Ohio School Facilities Commission Ohio Construction Reform."— Presentation transcript:
Click here to add text The Single Prime Contractor Delivery Method Ohio School Facilities Commission Ohio Construction Reform
What is Single Prime Contracting? A Design—Bid—Build Method Public Bid process with Lowest, Responsive, Responsible Bidder. One Contractor responsible for all the Work in the Bid Documents. One Contractor responsible for managing the Schedule of the Work.
Why Select Single Prime Contracting? Reduction in Administrative expenses Fewer contracts to administer (payment is easier, EDGE is easier) No “scope gap” issues No confusion on accountability when incidents occur or issues arise. “Coordination issues” eliminated One warranty/guarantee contact Schedule review by Owner’s agent, not schedule management
Why Select Single Prime Contracting? Reduction in Project expenses* Greatly reduced occurrence of claims Fewer change orders Reduced general conditions due to potential to share job sites costs. Reduced perceived risk for the Prime results in less “protection” for potential issues included in bid (no “forced marriages”). *Single vs. Multiple Prime Contracting, Electric International, The Foundation of Electrical Construction, Inc., Dr. Eddy M. Rojas, 2007 *Impact of the Wick’s Law on Public Construction in New York City, Ashenfleter & Ashmore, 1994
Challenges? Potential of Increased Construction Costs due to Subcontractor Mark-up A difficult/incompetent contractor can mean increased administrative costs. Smaller, local contractors can get left out Bid Shopping These challenges can be managed with proper planning by your team.
Roles Current Primary Players Architect Construction Manager Prime Contractors (HVAC, Plumbing, Electrical, General Trades, Fire Suppression) New Roles for Single Prime Model Prime Contractor Program Manager aka Owner’s Rep. CM “Lite” Architect “Heavy”
Responsibilities Current Model Roles and Responsibilities Matrix Current Model.docRoles and Responsibilities Matrix Current Model.doc Single Prime Model Possible Option 1 Roles and Responsibilities Matrix Single Prime CM Lite.docRoles and Responsibilities Matrix Single Prime CM Lite.doc Single Prime Model Possible Option 2 Roles and Responsibilities Matrix Single Prime AE Heavy.docRoles and Responsibilities Matrix Single Prime AE Heavy.doc Single Prime Model Possible Option 3 Roles and Responsibilities Matrix Single Prime Program Manager.docRoles and Responsibilities Matrix Single Prime Program Manager.doc
Single Prime Contract Changes General Thoughts The contract revisions are fluid (i.e, not complete) The initial revisions contain more CM responsibilities Future modifications will likely lesson the CM role and allow OSFC consultant flexibility (i.e. CM Lite, Program Manager, Owners Rep, Cxing Agent, etc.) Future modifications likely more in line with current SAO single prime PAs need to study and understand contract changes
Multi-Prime vs. Single Prime Contracts Risk shifted from Owner to Contractor MP Article 4 schedule and coordination role now shifted to general contractor (new Article 5) Architect is primary party for scheduling progress meetings (where CM involved, it is through CM). 72 Hour Notice is returned to the general conditions (Article 2.3)
Multi-Prime vs. Single Prime Contracts Subcontractors (New Article 4) GC must use State of Ohio Subcontract Form GC form incorporates requirements from the Subcontractor Form Rule GC can supplement with its own non- conflicting terms and conditions Owners get right to reject subcontractors
Characteristics of a Candidate for Single Prime Delivery Model Owner Characteristics: Experience with < 6 major projects Staff available 2-8 hours per week Willing to share moderate level of risk Moderate involvement in project details Project Characteristics: Small to medium size <$20 M Simple to moderately complex construction Typical schedule expectations
Single Prime Delivery Model Examples Things to consider: Size of project Owner’s Experience (including Treasurer) Availability of Contractors in the area with appropriate bonding capacity. Schedule issues? Multiple Buildings? Community concerns? (i.e. track record of contractors, other Districts’ issues, etc.)