Competition Requirements of the Design/Build, Construction Manager at Risk, and Public-Private Partnership Contracts—Seven Case Studies (2012) / Chapter Skim
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Pages 36-41
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From page 36... ...
The contract stated that the Reference Documents were for informational purposes only, so Rail Group had an obligation to assess, in particular, the accuracy of these documents relative to existing conditions during the bidding process. As NJ Transit's counsel, Philip White, commented, "[the contract]
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From page 37... ...
26 Start Finish Comments BART Extension to SFIA DB $530 1997 2003 Track work and systems portion of project was delayed and experienced cost escalation; this portion encountered undiscovered endangered species, had construction accidents, and difficult site conditions. Project inclusive of other contracts was 20 months late and 33 percent over budget.
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From page 38... ...
In one instance, however, the owner adopted more of a risksharing philosophy in the project whereas in the other the owner maintained a risk-transfer stance. Although these two issues are not unique to DBOM contracts, the real question is whether it was appropriate for the agencies to shift the risks of site conditions and defects in the design documents developed by the agency to the contractor.
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From page 39... ...
As project delivery options continue to open up for owners, new methods are being employed. In each of these cases, the projects involved substantial design development activities and community engagement.
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From page 40... ...
quality plan, and a preliminary critical path method schedule AirTrain JFK DBOM RFQ followed by short-listing; RFP with multiphase selection: Phase 1 -- evaluation of non-price proposal based on multiple qualitative criteria; Phase 2 -- evaluation of NPV of design, construction, and operations services; Phase 3 -- establishment of a competitive range; Phase 4 -- BAFO Southern New Jersey Light Rail System DBOM RFQ followed by short-listing; RFP with selection based on 300 points for technical proposal and 700 points for price (points awarded based upon percent of bid to low bid) Not surprisingly, price was a dominant or heavilyweighted selection factor in every case except the Dulles Metrorail.
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From page 41... ...
In the AirTrain JFK case, the Port Authority of New York and New Jersey chose to negotiate a contingency fund with its selected contractor to segregate elements of the project where potential risks forced escalation of the overall fixed price. In doing so, the Authority established a reimbursable payment scheme with a ceiling price for these items and provided the contractor incentive to minimize costs by sharing 40 percent of any savings below the ceiling with the contractor.
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