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Your Deliver Method... …Pick it Early

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Presentation on theme: "Your Deliver Method... …Pick it Early"— Presentation transcript:

1 Your Deliver Method... …Pick it Early

2 Owner and General Contractor Responsible for ESH compliance

3 Owner and Multiple Primes option 1 A/E-Architect/Engineer CM- Construction Management Co PD-Project Development Each responsible for ESH compliance

4 Owner and Multiple Primes option 2 A/E-Architect/Engineer CM- Construction Management Co PD-Project Development Make 1 Prime contractor responsible for site ESH (lead)

5 Owner and Construction Mgmt Construction Manager Construction Manager Construction Mgmt CM is responsible for overall site ESH compliance

6 What is an Owner Controller Insurance Program or OCIP A centralized and controlled: Insurance Loss Control/Safety Claims Management program purchased by Owner covering all contractors and subcontractors of every tier Owner purchases the insurance for a specific construction project, as opposed to traditional method of contractors purchasing their own Coverage for that single project. Coverage includes: Project Professional Liability, General Liability, Excess Liability, Environmental Liability, Builder’s Risk Who’s covered? Owner, construction managers, general contractors, all subcontractors Benefits include: Reduced insurance costs Broader and tailored coverage Uniformity and adequacy of coverage for all contractors and subcontractors Remove barriers of insurance for smaller, DBE firms Higher limits of liability Insurance costs fixed for the term of the project

7 Overview Project Delivery Methods Design–Bid–Build CM At-Risk Multi-Prime (Trade Contracting) Design-Build Contractual Relationships Scope, Cost & Time Impacts Risk Pros & Cons

8 Project Elements SCOPE TIMECOST Project Success

9 Project Delivery Methods Design-Bid-Build CM At-Risk (CM/GC) Trade Contracting/Multiple Prime Design-Build

10 Traditional: Design-Bid-Build Ownership Management Primes Subs OWNER Designer Contractor Subcontractors ContractsCommunication

11 Traditional: Design-Bid-Build Ownership Management Primes Subs OWNER Designer Contractor Subcontractors CM ContractsCommunication

12 Traditional: Design-Bid-Build Three sequential phases Four prime players Owner Construction Manager Architect Contractor Three separate prime contracts DesignBidBuild

13 Traditional: Design-Bid-Build Process Owner selects CM & Architect Architect designs project CM provides management & support Owner, CM & Architect publicly bid a single prime contract Contract awarded to low bidder General Contractor constructs project General Contractor manages sub- contractors CM & Architect provide oversight

14 CM at Risk (CM/GC) Ownership Management Primes Subs OWNER Designer Subcontractors ContractsCommunication

15 CM at Risk (CM/GC) Three sequential phases Three prime players Owner Architect At-Risk CM (General Contractor) Two separate prime contracts Price Guarantee Point Varies DesignBidBuild

16 CM at Risk (CM/GC) Process Owner selects Architect & Architect designs project provides support At some point GMP defined (At-Risk relationship established) Owner & publicly bid multiple trade contracts (sub-contractors) Contracts awarded to lowest bidders Owner assigns contracts to manages construction Architect provides oversight

17 Multiple Prime (Trade Contracting) Ownership Management Primes Subs Designer CM Trade/Multiple Prime Contractors OWNER ContractsCommunication

18 Multiple Prime (Trade Contracting) Three sequential phases Three prime players Owner Architect Construction Manager Multiple Prime Contracts Architect & Construction Manager Prime Trade Contracts (Sub-Contractors) All contracts with Owner DesignBidBuild

19 Multiple Prime (Trade Contracting) Process Owner selects CM & Architect Architect designs project CM provides management & support Owner & CM publicly bid multiple trade contracts (sub-contractors) Contracts awarded to lowest bidders CM manages construction CM & Architect provide oversight

20 Design-Build Ownership Management Primes Subs OWNER Scoping Architect CM DesignerBuilder Design Build Entity ContractsCommunication

21 Design-Build Three continuous phases Four prime players Owner Construction Manager Scoping Architect Design- Build Contractor Three separate prime contracts Scoping Documents Select D/B DesignBuild

22 Design-Build Process Owner selects CM & Scoping Architect Owner, CM & Architect develop scoping documents (Bridging Documents) Selection of Design-Build Entity D/B completes design of project Owner approves design and authorizes construction D/B secures sub-contractors D/B manages construction CM provides oversight

23 Items for Consideration Change Orders Price Confirmation Risk for: Cost Time Quality Control of Cost Time Quality

24 Questions?

25 Traditional: Design-Bid-Build Pros Most common method Best understood Most well-established law Considered best design quality Considered lowest initial cost Fairest to bidders, level playing field Cons Low Bid Contractor Generally slowest method High change order costs High litigation

26 CM at Risk (CM/GC) Pros GC selected (as CM) on qualifications Design assistance reduces E&O GMP approach reduces COs Reduces claims Owner knows costs up front Cons Not time tested in Public projects Some jurisdictions not authorized CM has normal GC conflict of interest No CM advise during construction

27 Multiple Prime (Trade Contracting) Pros CM remains in fiduciary role More project control Fast track by major trades Clearly identifies sub costs Encourages small local contractors Reduces bid claim potential Cons Multiple contracts are burdensome Lacks a single point of responsibility More control = more liability

28 Design/Build Pros Single point responsibility Tends to be fastest method Avoids E&O liability issues Maximum transfer of risk Cons Requires increased owner sophistication No normal architect advocacy Design quality may be compromised Reduces design input by Owner

29 Your Deliver Method... …Pick it Early Doug Evans Vice President Vanir Construction Management


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