Construction Manager-at-Risk Project Delivery for Highway Programs (2010) / Chapter Skim
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Pages 50-63
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From page 50... ...
DESIGN-RELATED PRECONSTRUCTION SERVICES One issue found in this study regarding the implementation of CMR project delivery has nothing to do with the agency or the contractor; it is concerned with the willingness of the designer to actively and willingly participate in realizing the method's potential benefits for the owner. Perhaps the most significant lesson learned in this study is the agency's need to ensure that the designer has an opportunity to appropriately price its work by modifying the design contract to reflect the change in effort that CMR project delivery entails (Memphis case study)
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From page 51... ...
; (Lee 2008) 6 Prepare project estimates 1,2,3,4,5,6,8,9,10 4,6,7,8,9,10,11,13,14,15 36 Cost engineering reviews 2,3,4,5,6,8,9,10 4,6,7,8,9,10,11,13,14,15 0 Early award of critical bid packages 2,4,5,6,8,9 1,3,4,5,6,8,9,10,11,15 11 Life-cycle cost analysis 2,6,10 (DeWitt et al.
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From page 52... ...
Coordination of design packages with construction bid packages 6 Joint coordination with third parties during design 6 Facilitate CMR design reviews 5 Joint value engineering with CMR 5 Design milestones specified to match preconstruction services 4 Mandatory budget review points 3 Requirement to respond to CMR comments and incorporate as appropriate 2 Requirement to notify CMR of major design changes 2 Allow the CMR to assist in material selection decisions based on market surveys 2 Design in accordance with CMR designated means and methods 2 Pass design changes through CMR for cost/schedule impact validation 1 Over-the-shoulder review of construction submittals with trade subs 1 Expedited review of construction submittals at CMR's request 1 Design fee at risk for design quality 1 Collaborate with CMR on cost model development 1 Participate in joint scheduling conference 1 Collaborate with CMR to define required right-of-way 1 Provide CMR design products to facilitate CMR-obtained permitting 1 Furnish graphic design support to CMR public relations effort 1 Joint planning and participation in public outreach meetings 1 TABLE 27 DESIGN CONTRACT MODIFICATIONS TO ACCOMMODATE CMR PROJECT DELIVERY
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From page 53... ...
, as well as codified design milestones, budget review points, a requirement to coordinate the design work with the construction work packages, and mandated joint coordination with third parties. This created a different environment where the consultant saw the CMR reviews as another layer of design QC and the cooperation required to successfully complete the CMR project happened.
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From page 54... ...
Design Validation Versus Design Review Design validation is a term that came out of CMR project delivery in the building sector (Carlisle 2006)
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From page 55... ...
The advantage is realized through three categories of cost-related services: • Cost estimating, • Cost analysis, and • Cost–risk identification and mitigation. Cost Estimating in Preconstruction The major reason for selecting CMR project delivery is to gain access to the contractor's real-time construction pricing data and to have it available throughout the design process to assist in making cost-driven design decisions on the basis of the best possible information rather than on the basis of the engineer or owner's conjecture (Van Winkle 2007)
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From page 56... ...
includes the third form of preconstruction cost analysis, life-cycle cost analysis, which was cited in two of the solicitation documents. When the case study interviewees were asked to rate the value of various preconstruction services, they rated life-cycle cost analysis as the least valuable among the cost-related services, indicating that life-cycle cost analysis does not appear to play a significant part in decisions made on CMR projects.
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From page 57... ...
"Where there are construction materials and equipment that have relatively long delivery requirements, the construction manager may be asked to purchase or assist the owner in purchasing long lead items" (Martinez et al.
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Guaranteed Maximum Price Internal Procurement The next administrative preconstruction services are the tasks required for the CMR to advertise and award the subcontractor work packages. These consist primarily of breaking down the project scope of work into bid packages and reviewing the design documents that go with each package to ensure that sufficient information is contained in them to draw competitive pricing (Martinez et al.
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From page 59... ...
Therefore, those agencies that are considering implementing CMR project delivery may consider a provision in their regulations/enabling legislation to accommodate a future requirement to certify a project's sustainability. PRECONSTRUCTION FEES AND DESIGN COST IMPACT The first question most upper managers in transportation agencies ask when considering a change to their procurement program is: How much is it going cost?
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From page 60... ...
. The DBB project delivery method does not typically involve the construction contractor until the design is complete.
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"Reduced design costs, construction, and construction engineering inspection costs" (Anderson and Damnjanovic 2008) is typical of the way authors in the literature described the advantages of implementing CMR.
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From page 62... ...
Conclusions The main conclusion is that preconstruction services are a distinct benefit to the project's cost, schedule, and ultimate quality. "The City of Portland reported that the contractor's early involvement with design review, value engineering, and risk analysis prior to design completion contributed to significant cost and schedule savings on the West Willamette River project" (Gribbon et al.
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From page 63... ...
Phase I and the first contract will include the preconstruction services and the preparation and submission of the GMP. Phase II and the second contract will include complete construction services for the construction project.
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