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Presentation on theme: "KEN."— Presentation transcript:


2 Rona G. Rothenberg, FAIA, LEED Green Associate
Kenneth J. Harms Vice President Kitchell, CEM Rona G. Rothenberg, FAIA, LEED Green Associate Senior Manager, Design & Construction Services, Judicial Branch Capital Program Office Judicial Council of California-Administrative Office of the Courts KEN

3 Would you accept this deal?
Design a 103 story office building in 2 weeks Build a $500M project in less than 14 months KEN

4 Around for a Very Long time!
CMAR has Been Around for a Very Long time! Built in 1930 for $41M ($8M below budget) in 13 ½ months $500M in today’s dollars KEN

5 State and County Authority
SB 1732 – Trial Court Facilities Act of 2002 established the judicial branch authority for facilities, including funding and exemption from the Public Contract Code (PPC) SB 328 (2013) extends CMAR as a project delivery method to all. (Government Code Section 20146) RONA first bullet; KEN second bullet

6 Construction management at-risk is seen by many policy-makers and legislators as an innovative approach to public sector project delivery. The CM at risk delivery method is an alternative procurement process similar to long-standing private sector construction contracting. CM at-risk is a cost effective and time conscious alternative to the traditional design-bid-build process. KEN -AIA Washington DC, 2005

7 A project delivery method is fundamentally a people method because people remain the most valuable construction resource. The success or failure of any delivery method depends upon the performance, trust, and cooperation among the parties. -AGC, Project Delivery Methods for Construction, 2011 KEN

8 KEN CMAR Not Using Under Consideration

9 CMAR Public Owners in California
CALIFORNIA STATE UNIVERSITY 23 Locations UNIVERSITY OF CALIFORNIA 10 locations KEN Administrative Office of the Courts 58 Locations

10 CM at Risk Philosophy OWNER A/E CM Collaborative Team Approach
Respect the role & responsibility of each team member Develop trust & confidence based on performance Exceed expectations Collaborative Team Approach KEN A/E CM

11 Organization Procurement and contract structure functional much like a private sector model of the negotiated contract. Criteria for selection are qualifications based and include competitive bid with preconstruction services. Criteria for selection of the CMAR vary from one jurisdiction to another based on allowable and measurable factors. In Preconstruction services, the contractor works slid-by-side with architect and owner in the design phase to analyze and select materials equipment based on cost, benefits and availability KEN

12 CM at Risk vs. DBB/Lump Sum
Designer Involvement CM at Risk Low Bid Contractor involvement in Design Phase No Owner receives competitive pricing Performance and payment Bonds Ability to Re-bid individual trades Prequalify all subcontractors Field coordination control Commissioning/ Warranty Issues Price Guarantee √ * Contractor pays for scope gaps Contractor contingency available for E&O and unanticipated field conditions RONA *Low bid not always final price

13 California SB 1732 Trial Court Facilities Act of 2002
California Code of Regulations Government Code Sections et seq. Establishes statutory authority for the State of California Judicial Branch responsibility for court facilities including initial funding source Section provides an exemption from the Public Contracts Code, subject to appropriate contracting policies and procedures RONA

14 Trail Court Facilities Program 2002 - Present
Court projects: 46 authorized since 2004 Courtrooms: 1 to 71 Sizes: 6,500 – 704,000 bgsf Project Cost: $3M – $634M Estimated Total:$5.5B Funding: Cash, lease revenue bonds Project Status in 2014: 14 Completed 12 in construction 20 in design or site acquisition RONA

15 California Judicial Branch Capital Program
Court Facilities Contracting Policies and Procedures, Adopted by the Judicial Council of California on 12/7/07 established multiple construction delivery methods, procedures for procurements of goods and services Judicial Branch Contracting Manual, CA PCC Sections , became effective 10/1/2011 as an overriding contracting code with certain exemptions pertaining to capital facilities projects RONA

16 CM at Risk Comparison Least Suited Best Suited
Larger new or renovation projects In general projects greater than $7M Least Suited Smaller projects KEN

17 CM at Risk Lessons for Success
Owner involvement essential Need clear definition of CM & A/E’s roles Determines preferences for “Agency” vs. “At-Risk” contracts Inform and educate your staff and superiors Establish County internal processes to support CMAR Establish a fundamental attitude toward a collaborative or advocacy approach to the “open-book” type of contract administration, non-adversarial with a spirit of trust about scope, cost and time KEN/RONA

18 Benefits to the Owner Owner chooses their builder on QBS
Project team works in a collaborative atmosphere Greater schedule control/ flexibility Greater budget control including re-bid on individual trades if necessary Pre-qualify all trade contractors Minimum three bids in each trade Owner & Architect can participate in sub selection Lowers potential for future change orders Perceived as more friendly contracting approach by designers and subcontractors “Open Book” financial approach RONA

19 Benefits to the Architect
A/E maintains contractual relationship to Owner Selection of contractor based on qualifications Contract involvement during design phase GMP prior to construction RONA

20 Benefits to CMAR Firm Selected on Best Value not Low Price
Involved in Design Phase Collaboration vs. Confrontation Prequalification of Major Trades Manageable Risk Known Site Conditions Quality of Documents KEN

21 CMAR Selection Process

22 CM at Risk Selection Process: RFQ
Recommended Information Basic Company Data Firm History Local Office Primary Contact Licensing Information Form of Ownership Designer/County Internal Processes to Support CMAR KEN

23 CM at Risk Selection Process: RFQ’s
Recommended Information Insurance Requirements Limits of Coverage Company Rating Completeness of Coverage Bonding Capacity Single Project Limit Aggregate Letter from Agent KEN

24 CM at Risk Selection Process: RFQ’s
Recommended Information Safety Program EMR Safety Plan Training Quality Program Management Information Systems and Technology KEN

25 CM at Risk Selection Process: RFQ’s
Recommended Information Personnel Capability Consultants Experience in Delivery System and Project Type Safety Record Financial Information References

26 CM at Risk Selection Process: RFQ’s
Recommended Information Detailed Information on Select Relevant Project Information- at least 3 similar Team Organization Chart Resumes % of Time Commitment Management Plan Approach to Managing the Project -Phasing, Bid Package Strategy, Site Logistics Schedule KEN

27 CM at Risk Selection Process: Discussion/Interviews
Provide for Adequate Time 45 to 60 Minutes for Technical Presentation 15 to 30 Minutes for Questions & Answers Objective and Interested Selection Committee Well Defined Selection Criteria and Scoring Information- Share It! KEN

28 AOC Criteria for Contractor Selection and Short List, CMAR and Prequalified GC
Written SOQ’s which respond to specific requirements of the RFQ SOQ’s ranked based on published criteria Evaluations done by the PMS with Procurement team and Court, with architect as advisory All submissions must be in on time! RONA

29 Criteria for Contractor Selection
Criteria for Selection per RFQ: Financial Strength 20 points Demonstrated Experience of firm 30 points Demonstrated Experience and training of personnel Project Plan including Local Outreach Plan 5 points Total scoring 100 points RONA

30 AOC Contractor Selection Process
CMAR Selection and Prequalified GC Separate evaluation of RFQ and Interview per RFQ Criteria by point scoring CMAR Selection Sealed fee (including total of preconstruction services and fee based on direct cost of work) opened: $ Total price in dollars = Cost Per Unit of Quality Total quality points of Quality Lowest Cost per Unit of Quality is responsive RONA

31 CMAR Services

32 CM at Risk Design Phase Services
Management Plan Budget Estimates Value Engineering Constructability Review Bid Package Strategy Master Schedule Construction Schedule Logistics Planning RONA

33 CM at Risk Bid Process Pre-Qualify Subcontractors Advertise to Bid
Invitation/ Instructions to Bidders Scope of Work Sheets Pre-Bid Meeting Public Bid Opening Evaluate Bids Owner Assigns Bids to CM at Risk KEN

34 What is a GMP A Guaranteed Maximum Price (GMP) is the amount that the CM at Risk firm guarantees (the sum of the cost of the work and the CM’s fee) it will not exceed. The maximum is subject to additions and deductions, due to changes in the scope of work. All costs which exceed the GMP and are not approved by change order are paid by the CM. KEN

35 CM at Risk-Preparation of the Preliminary GMP
Total Direct Cost of Work $ CMAR Fee $ CMAR GC’s $ Project Contingency $ Allowances $ Total GMP $

36 Terms and Requirements which Affect the GMP
DVBE, MBE and related goals or requirements OCIP or CCIP Self Performance and terms of procurement Labor agreements Local outreach goals or requirements Subcontractor listing Deductive and additive alternates Terms for administration of the retention

37 (GC’s + Fee + Precon Cost) + Subcontractors Bids = GMP
CM at Risk - GMP Changes to the GMP CM at Risk Cost (GC’s + Fee + Precon Cost) Subcontractors Bids = GMP + Contingency (3% controlled by CM) Errors & Omissions Change of Scope Unforeseen Conditions Including Force Majaeur KEN

38 CM at Risk Services Construction Phase
Field Management Safety Program Field Engineering Quality Control Program Field inspection Administration Commissioning Services Project Close Out Process Warranty Period Service RONA

39 Construction Phase Construction of building and site features
Furniture installation Quality Assurance Inspections Site visits by A&E and AOC OCCM Team Commissioning of building systems RONA

40 Occupancy Court responsible for telephone and data equipment and servers Court responsible for staff move-in AOC post occupancy evaluation Survey building users Lessons learned LEED “Silver” certification by the United States Green Building Council RONA

41 New Hollister Courthouse Superior Court of San Benito County
RONA Status: Bid Phase Construction Cost: $34M Architect: SmithGroup Contractor: Kitchell

42 Lessons Learned from AOC in CMAR
Careful consideration of qualifications Meticulous checking of references and background Unimpeachable qualification of low bids Establish a basis to evaluate the preconstruction services as a condition for the construction contract Watch out for the “lump sum low bid in disguise” delivered by some CMAR’s RONA

43 Lessons Learned from CM’s
When is GMP Established? Establishing the GC’s as a baseline allowance in the initial fee proposal Ownership of Design Errors/ Omissions Shared Savings Clauses Contingency Ownership Self-Perform Work – Yes or No? KEN

44 Contract Key Features CMAR
Scope of work in preconstruction Contractual obligation for the content of the architects’ documents Appropriate development of bid packages and prequalification of the subs Administration of the contractor’s contingency Administration of the GMAX as an open book process Re-qualification of the GC’s, consideration of supplemental conditions if needed Proper field staffing and administration of field documentation RONA

45 What’s Important to AOC
Compliance with design standards which anticipate well-designed, well-constructed buildings that consider long-term ownership costs and needs Strong partnerships with our architects and contractors which are collaborative advocacies Good service by you to us and the Courts That you succeed and are profitable in giving us these things RONA

46 CMAR Projects in California
Cal Berkeley Memorial Stadium Fullerton State Steven Mihaylo Hall Fresno State Library Cal Poly Recreation Center Jacobs Medical Center KEN AOC, Hollister Courthouse Marian Medical Center Cal Poly Recreation Center

47 Questions & Answers KEN

48 SUMMARY For more information: KEN

49 Contact Kenneth J. Harms Vice President
Kenneth J. Harms Vice President 2750 Gateway Oaks Drive, Suite 300 Sacramento, CA 95833 O: / C: Follow us: Facebook | Twitter | LinkedIn |

50 For Information Judicial Branch Building Program

51 Thank you!

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