Construction Manager/General Contractor Pilot Program Construction Management Association of America February 18, 2016 California Department of Transportation

Traditional Project Delivery  Design-Bid-Build (DBB)  Specified by Public Contract Code  Design must be complete  Awarded to the lowest responsible bidder

Two-Phase Contract  PRE-CONSTRUCTION  CONSTRUCTION Preconstruction Services Construction Services Price Agreement Construction Manager General Contractor Cost Estimating Cost Estimating Subcontracting Plan Subcontracting Plan Scheduling Scheduling Material Procurement Material Procurement Utility Coordination Utility Coordination Construction Phasing Construction Phasing Constructability Review Constructability Review Risk Analysis Risk Analysis Quantity Verification Quantity Verification Third Party Negotiation Third Party Negotiation What is CMGC?

CMGC Authority  Assembly Bill 2498 (Gordon)  Signed September 2012  Added Section 6700 et seq. to Public Contract Code  Authorizes up to 6 projects by Caltrans  Must be administered by Caltrans  5 projects greater than $10 million  Effective January 1, 2013  No sunset date

Projects Awarded Projects (Preconstruction Services)  Fre 99 – Freeway realignment for High Speed Rail$111 million  Mpa 140 – Ferguson Slide Restoration$ 52 million  SF/Ala 80 – SFOBB Foundation Removal$ 86 million  SD 5 – Improve I-5, Rail, and Transit $606 million  SBd 215 – Reconstruct Barton Road Interchange$ 79 million  SBd 58 – Convert to 4-lane Freeway$158 million Awarded Projects (Construction)  Mpa 140 – Ferguson Slide Restoration (portion)$ 16 million  SF/Ala 80 – SFOBB Foundation Removal (portion)$ 15 million  Fre 99 – Freeway realignment for High Speed Rail (portion) $ 27 million

CMGC Process

Request for Qualifications Project Team provides evaluation criteria and weights  Past Performance  Key Personnel Requirements  Project Understanding

Cost Estimates  Open Book: Transparency, seeing the full estimate detail in base estimate format  Cost Based or Production Based Estimating: Bottom up estimate  Incremental Cost Estimates: Cost estimates at key milestones, commonly termed Opinion of Probable Construction Cost (OPCC)  Independent Cost Estimate

CMGC “Bid” Process When design of project or portion is complete: Three estimates: 1.Engineer’s Estimate 2.Construction Manager’s Cost Estimate 3.Independent Cost Estimate (ICE) Two Possible Outcomes: 1.Caltrans gets fair price – Proceed with build 2.Caltrans doesn’t get fair price – Proceed to bid

Why Use CMGC?  Faster Delivery  Cost Certainty  Constructability  Better Partnering  Risk Mitigation  Innovation

DBBDBCMGC Contractor Risk Owner Risk Risk Risk Management

0-30% Key CMGC Benefits 30-60% 60-90%  Owner Benefits  Most  Least >90% Design Price influence Risk Mgmt. Innovation Price influence Risk Mgmt. Innovation Price influence Risk Mgmt. Innovation Price Risk Mgmt. I nnovation Benefits of CMGC Over Time

Useful Links Innovative Procurement Practices Report: rocurementPractices.pdf Alternative Procurement Guide: rocurementGuide.pdf NCHRP Synthesis 402: Construction Manager-at-Risk Project Delivery for Highway Programs 02.pdf

Useful Links CMGC Pilot Program website:

Questions?