Construction Manager-at-Risk Project Delivery for Highway Programs (2010) / Chapter Skim
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Pages 64-75
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From page 64... ...
. In Figure 18, the least complicated GMP would have the following elements: • Project direct costs – Subcontract work package costs – CMR self-performed work package costs • Indirect costs: CMR's general conditions/overhead costs • Profit: Percentage mark-up or lump sum fee • CMR project contingency.
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From page 65... ...
66 Construction Manager-at-Risk Subcontracting Issues Three issues regarding subcontracting were found in the case study analysis. The issues are postulated as the following questions that an agency would answer when it selects CMR project delivery: • Is the CMR allowed to self-perform a portion of the work?
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From page 66... ...
. Therefore, if the perception of unfairness was indeed a real danger to competition, then the city of Phoenix would have been unable to attract competent CMRs and would have probably abandoned the project delivery method altogether.
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From page 67... ...
This policy also exists in Arizona and Florida. One Arizona RFQ contained the following statement: "The CMR may also compete to self perform portions of the work." Therefore, to put this in perspective, the urge to require the CMR to select subcontractors on a low-bid basis and/or restrict subcontractor prequalification is motivated by the desire to "preserve" competitive pricing for most of the project's work packages because the GC is now selected on a basis of qualifications.
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From page 68... ...
X Set work package plans X Analyze subcontractor bids X X Contract Document Coordination Review for constructability X Coordinate design packages with work packages X Review of proper phasing X X Quality Control Prepare QC plan X Arrange QC testing and inspections X Independent verification testing X Acceptance testing X Insurance, Bonds, and Permits Builder's risk X Utility development fees X X State DEQ general permit X Job Site Facilities and Services Temporary field office X Project signs X Temporary Facilities Temporary telephone X Final clean-up X X Project Work Package #1 -- Sitework Utility relocations X Earthwork -- drainage X Project Work Package #2 -- Bridge A Drill piers X Precast concrete installation X After "CM/GC Fee Structure Sample," Grand County, Colorado (2007)
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From page 69... ...
It will also require that the preconstruction services contract be well-coordinated with the design contract. Seven of ten case study projects modified their design contracts to require the engineer to coordinate the design work packages to fit the construction bid packages.
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From page 70... ...
It requires the CMR to roll this into the unit prices that it furnishes. It also requires competing CMRs to propose unit prices for four to five major pay items as part of the selection process.
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From page 71... ...
This may include a separate escalation component that is reduced, as shown in Figure 19, as material pricing and subcontractor work packages are finalized (Spata and Kutilek 2006; Trauner 2007; Ladino et al.
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From page 72... ...
A CMR project was nearing design completion and the CMR informed the owner that it could commit to a GMP that was substantially lower than originally estimated. Therefore, there appeared to be no need to use the project's management reserve.
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From page 73... ...
. Looking deeper, a study of $6.6 billion worth of CMR projects built by the state of Washington found that half the projects included shared savings incentives.
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From page 74... ...
More importantly, the contractors on those projects expressed the view that a shared savings clause took more time to administer and verify than it was worth. One contractor stated that the owner was paying them a preconstruction services fee to find ways to save.
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From page 75... ...
• An open books approach to contingency calculation and allocation enhances the spirit of trust between the owner and the CMR. • Those projects where the agency wants to mitigate material cost escalation risk can include an early work package to allow the CMR to procure volatile construction materials as early as design progress allows.
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