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Module IV: CMGC Pre-Construction Phase Joe Elsen, Region 3 Benjamin Acimovic, Region 1.

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Presentation on theme: "Module IV: CMGC Pre-Construction Phase Joe Elsen, Region 3 Benjamin Acimovic, Region 1."— Presentation transcript:

1 Module IV: CMGC Pre-Construction Phase Joe Elsen, Region 3 Benjamin Acimovic, Region 1

2 Topics Importance of the Preconstruction Phase Partnering Active Project Management Risk Assessment and Risk Register Constructability and Written Reviews The Open Cost Model Environmental Clearances Independent Cost Estimator GMP Process and the D-B-B option

3 Importance of the Preconstruction Phase The Preconstruction phase is where the ground work for the relationships, negotiations, models, and risk register that will make the project successful is performed. The Preconstruction phase is where the partnering and communication is critical to the success of the project. The contractor gets to fully understand the site constraints The contractor gets several months of project exposure There is an opportunity to shorten the project critical path Managing scope, schedule, and budget is enhanced. Managing relationships, people, and personalities

4 Partnering Critical to the success of the project: Establish organizational roles and responsibilities. Establish lines of communication between all team members. Set the culture that will continue throughout Pre-con and Construction Phases No blame, only solutions (quote from FHWA Peer Exchange on CM/GC) Builds the relationship foundation for: Understanding schedules and assumptions Creating an atmosphere where effective problem solving is rewarding Minimizing disputes and fast tracking dispute resolution Adding to overall success of the project.

5 Active Project Management The role of the CDOT Project Manager and CDOT Team Trust is vital CDOT PM needs to lead the meetings and manages all communications, roles, and responsibilities. Plays key role as facilitator and mediator for the team. Empowered to manage and lead the project. Project management team must be very involved in the project knowing design and construction aspects so that quick decisions can be made. CDOT management team needs to have the resources and time

6 Active Project Management The role of CDOT HQ and Region Specialty Groups Backup the project management team. Typical design-bid-build responsibilities Design input and Review with team and the ICE Attend Meetings and participate actively Understand roles and responsibilities Similar to D/B/B, with added collaboration Engage in Risk Assessment and Mitigation

7 Active Project Management The role of the contractor in design Contractor acts as an advisory or subject matter expert in the area of construction, constructability, construction estimating, schedule, material choices, risk assessment. The role of the designer (consultant or CDOT) in design To design all aspects of the project – traffic, roadway, bridge, geotech, walls, hydraulics, etc. Responsible for stamping the plans Both are required to communicate and collaborate!

8 Active Project Management What happens when:

9 Active Project Management Its up to the CDOT project manager to lead, mediate, and make the decisions if the team has collaboration issues. Keep the partnering strong and document everything with emails and memos. Know the project scope, budget, and schedule as well as anyone on the project.

10 Risk Assessment and Risk Register Risk Assessment CM/GC allows the team to jointly identify, discuss, and analyze risks Assign that risk to the party best-suited to mitigate the cost or schedule impact During preconstruction, risk can often be eliminated through design changes Risk Register Many risks are identified during Project Delivery Selection process Contractors assess risk on virtually every job – contingency $ added Joint use of the Risk Register allows good decisions to be made and limit contingencies Allows the contractor to track and communicate the risk it sees as high, medium, and low.

11 Risk Assessment and Risk Register Shared Risk Contingency Pool Think of this as a Minor Contract Revisions (MCR) pool that is for risks that occur. The Contractors pricing has the risk removed from unit prices. Creates an incentive to avoid use of the Pool since it will be split 50/50 at the end Range of approx 3 to 10% and will be negotiated on a project by project basis.

12 Constructability and Written Reviews Constructability Reviews Focus on project means and methods to build the work. Are these plans and specifications able to be constructed effectively? Example – determination of crane type and quantity to erect a bridge Need to consider many factors including Context Sensitive Solutions (CSS) Having the contractor at the table to give real costs is invaluable during this phase. Crane charts for pad location and swing requirements are analyzed to predict time and cost. Written Reviews Critical to document decision-making process. Able to track changes efficiently Less reinvention of the wheel

13 ROLE OF THE CONTRACTOR Dotsero Preconstruction – Value Added

14 Input from Kraemer on Early Design Work : o Beam Erection Analysis / Selection of Girders

15 2400V – Value Added Input from Sturgeon Electric: o A one word mistake discovered by Sturgeon saved CDOT $1.4 million. Two Starter Two Winding Two Starter One Winding o Identified high risk in 35 year old cables and wires falling part during removal of cabinets. Replacement of cables was added to the project. o Long Lead Time Cabinet Switchgear ordered before construction phase began. Allowed teams to continue design and begin construction ahead of cabinet delivery.

16 The Open Cost Model How much is this project really going to cost? Costs can change from Scoping to FIR to FOR to Construction to Final Payment How sure are you? With D/B/B we mainly focus on historical numbers and market conditions. Looking at Labor, Materials and Equipment CM/GC allows actual contractor bidding info to be examined prior to finalizing design. Transparency and documentation is critical. Very important to reach agreement on quantities, units, assumptions, and specifications. Importance of locking down the CM/GC Management Fee Using Best Value we obtain this number during the procurement of CM/GC services. Transparency is Key - be respectful of the Confidentiality Agreement!

17 Environmental Clearances D-B-B Process Very similar to D/B/B and processes that CDOT already has established. The recently revised Design Bulletin offers greater latitude, pending FHWA approval, to advance design past preliminary stages prior to decision documents or top part 128 clearances. Multiple Phases The multiple GMP approach is beyond the scope of this training. Each phase or bid package must be severable and able to advertise and complete without any other part of the project. Each Package is cleared and taken to construction separately. Examples are construction of a key haul road, detour, or bridge work, etc

18 Independent Cost Estimator Role of the ICE The ICE is an independent check for construction cost estimating They are contracted directly by CDOT and cannot be contracted directly by the project design consultants or contractors. They need to understand the assumptions that go into pricing the work. When does an ICE come into play? Typically at 30%, 60% & 90% plan reviews, to compare to the Contractors Opinion of Probable Construction Cost or OPCC When an LLTP GMP proposal is submitted. When a construction GMP is submitted. How do we bring an ICE onboard? By Task Order - CDOT will have a statewide NPS contract available in February (also appropriate to procure a Project Specific contract)

19 GMP Process and the D-B-B option What is a GMP? A Guaranteed Maximum Price, or GMP, is submitted by the Contractor as a proposal to CDOT. It is created from two parts: Direct costs of completing the construction work in bid form Construction Management Price Percentage – Margin (Overhead, Profit, and General & Administrative costs) It is essentially their bid for the work without Risk Contingency which is handled through negotiated F/A items and a shared risk contingency pool.

20 GMP Process and the D-B-B option What happens if a GMP proposal is not accepted? The GMP needs to be within 10% of ICE and EEMA estimates. GMP proposals can fail. Our guidance is that GMP proposals can be submitted three times and the open cost model renegotiated in order to reach agreement. If no agreement can be met, CDOT reserves the right to advertise the bid package to solicit low bids. The CM/GC firm can NOT bid on the project as the general contractor.

21 CM/GC Preconstruction Questions?

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