Measure L Program Implementation Management Considerations Report to the Board of Trustees San Joaquin Delta Community College District July 13, 2004

Areas of Discussion  I.Program Management  II.Project delivery options  III.Program Planning Process

Source: CMAA I. What is Program Management?  Program Management is the practice of professional construction management applied to a capital improvement program of one or more projects from inception to completion. Comprehensive construction management services are used to integrate the different facets of the construction process - planning, design, procurement, construction and activation - for the purpose of providing standardized technical and management expertise on each project.

I. What is Program Management? Major Program Elements Construction Design Cost Ed Specs Finance Risk O&M Safety Sites Master Plan Com- munity Schedule DSA Program Management Technology

Characteristics of Large Programs  Large and complex, focused on deferred needs Dozens to hundreds of simultaneous projects or activities Multifaceted client with multiple agenda  Administrators, teachers, students, community Complicated entitlement process  State Architect  Fire Marshall  Environmental compliance…

Program Management  Provides staff resources and management expertise Pre design planning & Programming Design mgmt. Schedule Control Quality oversight Web-enabled MIS Public Relations Vendor outreach Budget Control Procurement mgmt Const. Oversight Move management Startup and Commissioning

II.Project Delivery Methods  Traditional Design-Bid-Build  Multiple-Prime Contracting  At-Risk Const. Management  Design-Build  Design-Build with Bridging  Lease – Lease Back Many variations on each major theme No single delivery method is best under all circumstances Most methods can be tailored to fit local procurement laws GC selection thru Low Bid CM/GC selection thru QBS process

Written requirements Design drawings Construction Drawings Occupancy The cost of a change in a project increases by a significant factor each time the project changes its state. Construction The cost of making changes

City Planning EPA Agency Chamber of Commerce Department Streets & Highways Beautification Commission Unions OSHA Fire MarshallPublic Works Street and Highways ADAEPAHistorical Preservation The Information exchange process

Change Orders  Change orders are not a function of the delivery method.  Change orders are a function of: Clear and concise plans and specifications Early involvement and interaction between A/E and CM Pre-project planning: programming, logistics, scheduling, budget development, and design review

Design-Bid-Build

Source: CMAA Design-Bid-Build  Pros Easy to Manage Roles are clear Most common and widely understood methodology Greatest amount of control for Owner.  Cons Little designer-constructor collaboration Implicit warranty to contractor in plan content Greater risk to Owner for claims Contractor pursues a least-cost approach. No incentive for repeat business Defined: The Owner engages a designer to prepare the design of the complete facility, including construction drawings, specifications and contract packages.

Agency based Construction Management

Design-Build

Design-Build with Bridging

Design-Build  Pros One contract with both designer and builder. Construction practicality added to design process. Owner gets enforceable price sooner Time frame can be compressed.  Cons Less Owner Control as price is agreed upon prior to completion of final design documents. A Paradox:  It’s hard to define work to be done for an agreed upon price without design.  If design is done, it’s not Design-Build Solution = Bridging  Owner hires initial A/E to “scope” project prior to hiring Design-Build team. Note: Limited availability within CCC system. Defined: Following an extensive project definition phase, the Owner procures one contract for both design and construction.

Multi-Prime Contracting

Source: CMAA Multi-Prime Contracting  Pros more control over the project schedule CM hired thru QBS process. Greater local participation (thru individual trade contracts) Owner can realize savings by directly procuring major material items,  Cons final cost of the project is not known until the final prime contract is procured Areas of Risk:  absence of overall authority and coordination once construction is underway  Often results in delay issues arising. Defined: Owner holds separate contracts with contractors of various disciplines, such as general construction, structural, mechanical, and electrical. Owner, or its CM, manages the overall schedule and budget during the entire construction phase

At-Risk Construction Management

Source: CMAA At-Risk Construction Management  Pros Fosters collaboration between contractor and designer. CM carries Risk of Trade Contractor Performance Greater local participation (thru individual trade contracts)  Cons CM role evolves once construction is underway from Agency to Vendor role Interests and stake holding can become similar to the traditional design-bid-build system Defined: CM provides advisory professional management assistance to the owner during the project planning phase. CM then guarantees completion of the project for a fixed, negotiated price following completion of the design

Lease / Lease-Back Owner CMDeveloper DesignerBuilder

Lease / Lease-Back Defined: A project finance concept whereby the Public Entity leases the site to a contractor/developer and the contractor/developer leases the site back to the agency.  Pros  Contractor/Developer can be selected thru QBS  Can facilitate early contractor involvement in design  Agreement can carry a GMP  Can ease funding problems  Cons  Many Districts utilizing this method have sought Court validation  Some funding agencies may not allow capital funds to be used in lease type arrangement  Not widely used within CCC system.  Potential Public Policy issue Other: Trade Contractors can be privately bid

III. Program Planning Process

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