PM/CAM Training H. Jeff Moore May 11, 2009

AGENDA Overview CM at Risk Design (Completion) / Build Lunch Break / Discussion – 11:30 AM – 12:30 PM CM Agency

HECOM UPDATE POSTED

CONSTRUCTION Contract Administrators - Health Science Martin BestBill Martin

CONSTRUCTION Contract Administrators – Academic George CullenJulie Garmel

1995 – Trial Approval from DEB & Attorney General to Use CM Agency for Law School Renovation & Expansion

CM Agency Advantages VM & Constructability Savings Team Player vs. Adversarial Relationship Reduced Trade Contractor Claims & Litigation – Especially in Occupied Buildings with Unforeseen Building Conditions No Conflict of Interest Involvement During Design Phase Reduces Risk & Lowers Fees Flexibility to Adapt to Changing Conditions Establishment of “Real” Costs & Contingencies

CM Agency Advantages Full Disclosure on Project Cost Status Reducing Risk Respected/Efficient/Well-Managed CM Receives More Competitive Bids Elimination of Document Conflicts & Overlap Reduce Change Orders “Complete” Documents for Procurement Minimize Disruption to Clients Reduce Overall Design & Construction Duration Determine Requirements for Off-Hours Work Early Package Project for Best Trade Pricing

CM Agency Advantages Solicit & Generate More Interest in Each Trade Proactive Approach to Material & Equipment Procurement, Labor Issues, Potential Delays Full Disclosure of Project Schedule Status CM Expertise Provides “Hard” Figures on Project Cost Minimizing Potential For Trades Being Over Budget Protect the Reputation of Clients & Their Ability to Teach/Conduct Business/Earn Income

Contract Options for CMs/Contractors CM At Risk w/Design Phase – Multiple Contracts; > $5M Design (Completion) / Build CM Agency w/Design Phase; > $20M Competitive Negotiation Contractor – Fixed Price – Versions I (+$5M), II ($2 to $5M), & III (< $2M) - Trade Packages

Additional Options Competitive Sealed Bid – Construction Only Select Bidders for IFB On-Demand; < $5M Academic (16); Academic Research (8); Medical (7); Roofing (5) Special Projects (4) – Requires Rapid Construction Response; < $2M Sole Source Emergency

General Issues Current Advertisements – ConstructionAdvertise.htm RFPs vs. IFBs RFP process increases procurement workload (short- listing, interviews, etc.) Contract Admin. review & editing of RFPs Coordination w/ Legal (Steve Rosenberg) on Contract Documents & Bonding

Introduction to Process Basics Short-listing Licensed in Virginia; Bonding Capacity Firm Experience Schedule & Cost Control Similar Project Experience by Proposed Team SWaM HECOM /UVA Experience Firms May Request to be Added to List

Introduction to Process Basics Technical Proposal - Categories & Weighting Key Personnel, Experience & Qualifications – 30 to 35% Past Performance and Experience – 20 to 25% Management Capability/Project Plan/Schedule (Value Management) – 25 to 30% Value Management – 0 to 10% SWaM Firm Utilization – 10%

Introduction to Process Basics CM Price Proposal – Key Components Document Review, Procurement, & Construction Phase Services Home Office Overhead & Total Profit Field Office Staff Costs Field Office Staff General Conditions Other GC Fixed Price Risks/CM Contingency (At Risk)

Introduction to Process Basics Competitive Negotiation & Design/Build Price Proposal – Key Components Lump Sum Pricing with Options/Breakdown (i.e. Design Completion for D/B, Construction Packages) Unit Prices (i.e. Soils, Rock) Additive Price Items

Introduction to Process Basics Proposal Scoring 75% Technical / 25 % Price – CM At Risk & Agency with Design Phase Services 50% Technical / 50% Price – Design / Build & Competitive Negotiation (Significant Construction Component)

Introduction to Process Basics Document Review Phase Services Design Review Constructability Review Estimating Scheduling Phasing Value Management (VM) Trade Packaging LEED & Commissioning

Introduction to Process Basics Construction Phase – Pricing Proposals (Bids) Select Additive Price Items Evaluate / Negotiate VM Proposals Finalize Contract Amount Within Budget

AGENDA Overview CM at Risk Design (Completion) / Build Lunch Break / Discussion – 11:30 AM – 12:30 PM CM Agency