Guide for Design Management on Design-Build and Construction Manager/General Contractor Projects (2014) / Chapter Skim
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Pages 47-78
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From page 47... ...
47 If the design phase of a CM/GC construction project could be perfectly executed, the construction phase would be completely free of the problems, challenges and difficult decisions so common in a traditional highway construction project, save force majeure and unforeseen conditions and human error. This statement cannot be made about any other system, and points to the importance of DM under CM/GC.
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From page 48... ...
48 Guide for Design management on Design-Build and Construction manager/General Contractor Projects possible, as quickly as possible. This was accomplished by co-locating all key parties to a contract, doing away with traditional sets of plans and designing the project through a seemingly constant series of meetings of the decision makers from all the parties around a large conference table.
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From page 49... ...
Design management under Construction manager/General Contractor 49 Such concerns have caused some transportation agencies to seek alternatives to DBB and D-B for project delivery. A promising alternative that generated initial interest around the turn of the century was CMR.
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From page 50... ...
50 Guide for Design management on Design-Build and Construction manager/General Contractor Projects the CM must manage and control construction costs to not exceed the GMP (AIA-MBA Joint Committee 2014)
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From page 51... ...
Design management under Construction manager/General Contractor 51 the design process changes in this scenario from traditional bid sets of plans to construction sets. The intensity of the design effort shifts from traditional plans production to team project planning -- that is, critical design decisions are made during regular meetings with all decision makers present.
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From page 52... ...
52 Guide for Design management on Design-Build and Construction manager/General Contractor Projects Culture In many cases CM/GC requires a significant and aggressive change in the culture and philosophies of the owners, CMs, and DPs from traditional DBB design projects. For instance, the standard design methods, schedules, and plan review stages that are frequently used in designing DBB projects may prove to be inadequate to realize the advantages of CM/GC.
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From page 53... ...
Design management under Construction manager/General Contractor 53 Standard items under the DP's oversight, such as utility coordination and permitting during design, partially transfer to the CM due to the need to accelerate utility relocations, advanceorder long lead items, have one "point" of responsibility with the utility companies, permitting agencies, etc. These shifts in responsibilities often are needed for the CM to take responsibility for the overall project schedule and budget.
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From page 54... ...
54 Guide for Design management on Design-Build and Construction manager/General Contractor Projects Recruit Team of Experienced Leaders CM/GC, unlike any other delivery method, enables an agency to build its own partnering team. It is essential that the agency capitalize on this opportunity and effectively "custom-build" its team to properly fit the specific needs and objectives of the project.
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From page 55... ...
Design management under Construction manager/General Contractor 55 consultants, CMs and subcontractors. Low-bid does not afford this opportunity and therefore should not be the primary criteria for choosing contractors and subcontractors.
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From page 56... ...
56 Guide for Design management on Design-Build and Construction manager/General Contractor Projects response including fees, organization charts, qualifications of key individuals, past construction experience, both CM/GC and otherwise, and of the company and of the key individuals, preliminary schedule, subcontracting plan, etc. A downside of this process is that there must be some preliminary design in place for the candidates to use in preparing prices/costs.
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Design management under Construction manager/General Contractor 57 must be made up through innovation produced as a result of the meetings. No one member dominates the team, although the PL facilitates the meetings.
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From page 58... ...
58 Guide for Design management on Design-Build and Construction manager/General Contractor Projects during the course of the project must be educated about the CM/GC culture and process. The only CM/GC project that could be classified as a bad project during the investigation leading to this Guidebook struggled for two main reasons that could have been avoided: (1)
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From page 59... ...
Design management under Construction manager/General Contractor 59 procurement. Permitting agencies and utility companies almost always respond more favorably and more quickly to a project team's requests and applications after the contractor is on board.
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60 Guide for Design management on Design-Build and Construction manager/General Contractor Projects Substantial Cost Savings are Available Lost in the amazing story of the project that just kept growing in size is the fact that to grow like that, the project had to experience substantial cost savings. In fact, Mountain View Project data shows a 27% reduction in expected cost over the design period of the project (see Mountain View Case Study)
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From page 61... ...
Design management under Construction manager/General Contractor 61 Contingencies and allowances are required to successfully cover the design and construction aspect of the project and to accelerate the entire process. Contingencies are the difference between success and failure on a CM/GC project as they enable real-time decisions to be made and paid for and the project to move forward rapidly.
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From page 62... ...
62 Guide for Design management on Design-Build and Construction manager/General Contractor Projects costs as well, as the overall project budget and schedules should be specifically broken into design, construction, survey, permitting, and ROW. Identify clearly all targets.
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From page 63... ...
Design management under Construction manager/General Contractor 63 strongly encouraged to work with them. Preferably, the ICE should engage the CM's estimators throughout this process.
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From page 64... ...
64 Guide for Design management on Design-Build and Construction manager/General Contractor Projects to various challenges, gathered by the research team from previous experience and previous research. Please note that no distinction is made in this list between programs that have different idiosyncrasies or utilize different minor procedures or use different terminology.
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From page 65... ...
Design management under Construction manager/General Contractor 65 • The manner in which the owner procures services can have a major impact on the team members' ability to work together and, consequently, on the project's potential success. • The most important aspect of a successful CM/GC program is transparency.
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From page 66... ...
66 Guide for Design management on Design-Build and Construction manager/General Contractor Projects • Everyone has to buy in. • Owner PMs will work longer hours, put in more work, and put in more effort than with other delivery methods.
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From page 67... ...
Design management under Construction manager/General Contractor 67 • Everyone must understand the meaning of partnership and Partnering. • Experience with CM/GC can be a deciding factor when hiring DPs.
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68 Guide for Design management on Design-Build and Construction manager/General Contractor Projects Designs are taken to "105%" in that there is more up-front work to ensure that the prices and plan are correct. Over time, UDOT has learned that the design effort must be intensified on CM/GC projects to reduce cost.
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From page 69... ...
Design management under Construction manager/General Contractor 69 approach used by the City of Phoenix would better fit under the CM/GC label even if the city titles it CMR. It has all the classic characteristics of CM/GC: (1)
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From page 70... ...
70 Guide for Design management on Design-Build and Construction manager/General Contractor Projects environmental clearance. This is earlier than with the DBB delivery system.
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From page 71... ...
Design management under Construction manager/General Contractor 71 costs and making up for coordination costs and the CM's overall fees. CM meeting attendance also is crucial to obtaining the benefits of CM/GC pertaining to reduced costs; without this, the advantage of bringing CMs on board is reduced or eliminated altogether.
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From page 72... ...
72 Guide for Design management on Design-Build and Construction manager/General Contractor Projects Tremendous money and time are saved, and changes are avoided when the CM firms and DPs work together to produce the plans and phasings for the projects. Utility relocation preferably was handled with the entire team during the production meetings, with the relevant utility companies present during early project scoping.
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From page 73... ...
Design management under Construction manager/General Contractor 73 Shared savings and leveraged relationships help build this, especially trusting that the contractor is not going to overcharge the owner. Reverse incentives have also proven helpful.
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From page 74... ...
74 Guide for Design management on Design-Build and Construction manager/General Contractor Projects (4) Issues addressed quickly with the railroad.
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From page 75... ...
Design management under Construction manager/General Contractor 75 CM/GC designs typically come in under budget, and factors that most significantly contribute to this include constructability reviews provided by the CM/GC, which have saved ODOT substantial funds on CM/GC projects. Additional fees are not included for the DPs' coordination with the CM/GC (and vice versa)
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From page 76... ...
76 Guide for Design management on Design-Build and Construction manager/General Contractor Projects Figure 9 shows an example of the curves where the project had a 50% probability of finishing with a cost of $307 million and a 90% probability of finishing at $350 million. Therefore, the budget was set at $350 million, with a 90% confidence level of finishing the project within budget.
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From page 77... ...
Design management under Construction manager/General Contractor 77 The DP's responsibility for cost containment focused on monitoring its own budget and making sure the design budget was not overrun, and delivering a responsible design that could be built within the budget. Coming up with the innovations to help make this happen was the role of the whole team.
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From page 78... ...
78 Guide for Design management on Design-Build and Construction manager/General Contractor Projects Review risks every quarter that included Risk Registers, DART, risk assignment, and risk retirement allowed UDOT to save and set aside about $117 million. All of this money was used to extend the contract and ultimately, the 15-mile project became a 17.5-mile project.
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