Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods, Volume 2: Construction Manager–General Contractor Delivery (2020) / Chapter Skim
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This appendix contains descriptions of all the contract administration tools discussed in this guidebook. Tools may be used in one or more phases, as indicated in Table A.1.
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Contract Administration Tools 49 • Examples – The examples are real projects that have used the tools. They include text and tables that show how an agency used the tool on a recent project.
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50 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 1 Kickoff Meeting 1 Kickoff Meeting This meeting introduces the project participants to the project and to each other. Aspects relevant to a CM-GC project are discussed, including roles and responsibilities, quality management processes, review processes, schedule, schedule of values, and payment processes.
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Contract Administration Tools 51 1 Kickoff Meeting How to Use It? The agency and CM-GC project manager plan the 1-day workshop together.
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52 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 1 Kickoff Meeting Example 1 I-215 Barton Road Interchange Project, California Department of Transportation (Caltrans) Caltrans scheduled a project team kickoff meeting for the Barton Road project after the selection of the CM-GC.
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Contract Administration Tools 53 1 Kickoff Meeting Example 2 Winona Bridge Project, Minnesota Department of Transportation (Minnesota DOT) Minnesota DOT used a project team kickoff meeting (see following agenda)
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54 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 1 Kickoff Meeting ♦ Constraints Finding of No Significant Impact Environmental Permitting Design Package Preparation Risk Analysis OPCC and Guaranteed Maximum Price (GMP) Processes Severability 3.
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Contract Administration Tools 55 1 Kickoff Meeting Example 3 I-70 Vail Underpass Project, Colorado Department of Transportation (Colorado DOT) Colorado DOT used a project team kickoff meeting for the I-70 Vail Underpass Project.
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56 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 1 Kickoff Meeting 10. Cost Model a.
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Contract Administration Tools 57 2 Roles and Responsibilities 2 Roles and Responsibilities This tool is a description of roles and responsibilities for the CM-GC.
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58 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 2 Roles and Responsibilities Defining roles and responsibilities helps the contractor better quantify the level of effort and costs of work the contractor is responsible for. Similarly, it helps the agency identify tasks it will be undertaking for the project so it can plan for adequate resources to perform those tasks.
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Contract Administration Tools 59 2 Roles and Responsibilities 2 Roles and Responsibilities Contract Administration Phase Project Complexity Project Size A lig nm en t D es ig n P re co ns tr uc ti on C on st ru ct io n C lo se ou t N on co m pl ex M od er at el y C om pl ex C om pl ex $1 0 m ill io n $1 0 m ill io n– $5 0 m ill io n > $5 0 m ill io n Note: = Recommended; = Consider case by case; = Not recommended. Table A.3.
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60 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 2 Roles and Responsibilities Example 2 Colorado Department of Transportation CM-GC Manual Colorado DOT has created the following matrix -- included in Appendix A of their CM-GC manual -- that shows the roles and responsibilities of the parties involved during the preconstruction phase.
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Contract Administration Tools 61 2 Roles and Responsibilities References Colorado Department of Transportation. Innovative Contracting (Design–Build and CM/GC)
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62 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 3 Glossary of Terms 3 Glossary of Terms A glossary of terms provides definitions of terms related to alternative contracting method activities.
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Contract Administration Tools 63 3 Glossary of Terms Similarly, the glossary can be included in the preconstruction services contract and the construction contract. Synthesis of Examples Examples of terms that can be included in a CM-GC project glossary can be found in this guidebook's glossary, which follows References and Bibliography.
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64 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 4 External Stakeholder Coordination Plan 4 External Stakeholder Coordination Plan This table identifies which external stakeholders to involve at various project milestones. It ensures that accurate information is conveyed and that stakeholder concerns are considered.
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Contract Administration Tools 65 4 External Stakeholder Coordination Plan Synthesis of Examples An external stakeholder is any outside entity with an interest in a project and who can either affect -- or by affected by -- the project's outcomes. External stakeholders include (but are not limited to)
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66 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 4 External Stakeholder Coordination Plan Milestone Action Unit or Person Responsible Meeting Attendees Goal Pre-Let 1. Start of study letter Send external scoping table to external stakeholders.
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Contract Administration Tools 67 4 External Stakeholder Coordination Plan Post-Let Milestone ActionPhase Unit or Person Responsible Meeting Attendees Goal 6. Technical proposal submittal Invite external stakeholders to review and comment on design elements and municipal agreement items shown in each team's technical proposal.
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68 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 5 Regulatory Agency Partnering 5 Regulatory Agency Partnering This tool improves communication between the project team and regulatory agencies, thus leading to a smoother permitting process.
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Contract Administration Tools 69 5 Regulatory Agency Partnering How to Use It? Agencies should first evaluate the contractor's ability and willingness to work directly with regulators to develop the optimal -- though not necessarily the lowest cost -- permitting solutions.
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70 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 5 Regulatory Agency Partnering References FHWA. Planning and Environmental Linkages Partnering Agreement.
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Contract Administration Tools 71 6 Co-Location of Key Personnel 6 Co-Location of Key Personnel This tool involves all key personnel being located at the same facility during specific phases of the project -- particularly, early phases -- or for the duration of the project.
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72 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 6 Co-Location of Key Personnel Synthesis of Examples When setting up expectations for co-location in the contract, an agency should consider • The location, which could be the agency's office, the project location, within a certain radius of the project, or in a designated region or metropolitan area; • The minimum number of key personnel expected to be co-located; • The phases when co-location is required, such as design or design and construction; and • The personnel responsible for providing, furnishing, and maintaining the space. Example 1 Trunk Highway (TH)
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Contract Administration Tools 73 6 Co-Location of Key Personnel References Connecticut Department of Transportation. Construction Manager/General Contractor Procurement Guidance Document for the Walk Bridge Project.
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74 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 7 Construction Manager–General Contractor Management Fee Table 7 Construction Manager–General Contractor Management Fee Table This table lists the costs that are excluded and that are included from the CM-GC management fee.
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Contract Administration Tools 75 7 Construction Manager–General Contractor Management Fee Table How to Use It? The table can be included in the owner's CM-GC manual and/or in the RFP to communicate to all potential CM-GC proposers what items are allowed in the CM-GC management fee.
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76 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 7 Construction Manager–General Contractor Management Fee Table References Colorado Department of Transportation. Construction Manager/General Contractor (CM/GC)
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Contract Administration Tools 77 8 Construction Manager–General Contractor–Specific Partnering 8 Construction Manager–General Contractor– Specific Partnering This tool allows team members and other stakeholders to collaborate to form alignment on CM-GC project goals, issues, roles, and processes to enhance the delivery of the project.
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78 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 8 Construction Manager–General Contractor–Specific Partnering phases. Partnering meetings and partnering assessments can be used throughout design and construction.
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Contract Administration Tools 79 8 Construction Manager–General Contractor–Specific Partnering References AASHTO. AASHTO Partnering Handbook, 2nd edition (draft)
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80 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 9 Continuity of Team Members 9 Continuity of Team Members The contractor and key team members from the agency must remain involved throughout the design and construction phases to enhance project understanding, consistency, and communication.
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Contract Administration Tools 81 9 Continuity of Team Members do not have history with the project, and they lack an understanding of how risks have been assigned and mitigated. Without this background knowledge, they may default to treating risk like they would for a D-B-B project instead of the way the CM-GC team has agreed to approach the risk.
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82 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 9 Continuity of Team Members wishes to change its organization form that [is] described in its Proposal, Proposer shall obtain written approval of the change from the Commissioner or designee.
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Contract Administration Tools 83 10 FHWA Involvement Overview 10 FHWA Involvement Overview This tool is a table or list that briefly describes the way a project interfaces with FHWA on a federally funded project. This interface is often determined based on FHWA local division interest defined in stewardship and oversight agreements.
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84 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 10 FHWA Involvement Overview members may be responsible for coordinating with FHWA, but all team members should be made aware of the project elements that FHWA needs to have input on. Time should be allotted in the project schedule for this coordination.
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Contract Administration Tools 85 10 FHWA Involvement Overview PRICE PROPOSAL PROCESS -- SECTION 6 6 Issue for Price Proposal Prepare6 Approve (14 Days) Prepare None 6 IFPP Addenda Prepare Review1 (3 Days)
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86 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 10 FHWA Involvement Overview Example 2 Colorado Department of Transportation CM-GC Manual The Colorado DOT CM-GC Manual includes the following description of FHWA oversight and requirements on federally funded projects: 4.5 FHWA Oversight and Requirements FHWA may provide project oversight if the CM/GC project includes federal funding. FHWA's level of involvement will depend on if FHWA determines the project to be a Project of Division Interest (PoDI)
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Contract Administration Tools 87 10 FHWA Involvement Overview If the project is not a PoDI, FHWA must still: • Approve FMIS action for General Contractor (this is the CM/GC Preconstruction Phase services authorization and is separate from the consultant designer) – Approve FMIS construction phase.
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88 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 11 Permit Commitment Database 11 Permit Commitment Database This database is a summary of all commitments included in the permits and agreements, which helps the project team keep track of all commitments.
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Contract Administration Tools 89 11 Permit Commitment Database Synthesis of Examples Good practice for this tool follow the points identified below: • The RFP summarizes the required permits, possibly as part of an appendix. • Conditions from each of the required permits are identified and summarized in a table that serves as a database throughout the project (Table A.13)
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90 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 11 Permit Commitment Database References Washington State Department of Transportation. I-405/NE 6th Street to I-5 Widening and Express Toll Lane Project, Request for Proposal.
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Contract Administration Tools 91 12 Discipline Task Force 12 Discipline Task Force A discipline task force is a group of individuals focused on one specific discipline. Discipline task forces are formed to ensure coordination across project disciplines.
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92 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 12 Discipline Task Force more than one discipline task force in order to ensure consistent cross-discipline coordination. Each discipline task force should have clear ground rules, scope, and deliverables; otherwise, there is a risk of getting out of alignment with the project goals.
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Contract Administration Tools 93 13 Independent Party Design Review 13 Independent Party Design Review This tool is a design review performed by a third-party consultant that the agency hires.
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94 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 13 Independent Party Design Review independent review team is needed, they conduct the reviews based on the process and requirements developed by the agency. This includes reviewing the design for all required quality aspects developed by the agency prior to starting design.
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Contract Administration Tools 95 14 Plan Standards 14 Plan Standards Plan standards are adapted to the goal of developing plans and specifications for building a project, rather than for bidding a project.
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96 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 14 Plan Standards How to Use It? As design plans are being developed, the project team discusses the best way to convey information for construction and the requirements for as-built drawings.
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Contract Administration Tools 97 14 Plan Standards References Florida Department of Transportation. Plans Preparation Manual, Volume 1: Design Criteria and Process.
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98 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 15 In-Progress Design Workshops 15 In-Progress Design Workshops These meetings between the designer, the contractor, and the agency take place throughout the design process to discuss and verify design progress.
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Contract Administration Tools 99 15 In-Progress Design Workshops recommended for all projects, though small projects may not receive as much benefit as there are typically fewer decisions and options to consider on small projects.
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100 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 15 In-Progress Design Workshops References California Department of Transportation. Preconstruction Services Contract Interstate 215 Barton Road Interchange Reconstruction Project, Construction Manager/General Contractor Services.
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Contract Administration Tools 101 16 Deviations from Agency Standards 16 Deviations from Agency Standards The agency allows deviations from standards on a specific project when it makes sense in the context of that project.
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102 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 16 Deviations from Agency Standards recommended for smaller, noncomplex projects, as it may not produce a big enough benefit to justify the time and expense of analyzing potential deviations from the standards.
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Contract Administration Tools 103 16 Deviations from Agency Standards References Minnesota Department of Transportation. Benefits of the Construction Manager/General Contractor (CMGC)
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104 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 17 Over-the-Shoulder Reviews 17 Over-the-Shoulder Reviews Over-the-shoulder review meetings bring the designer and the agency together to look at and discuss design documents while these designs are progressing.
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Contract Administration Tools 105 17 Over-the-Shoulder Reviews the-shoulder meetings can be group meetings or one-on-one conversations. The designer should implement the feedback, but, generally, it is not required to provide written documentation of the feedback.
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106 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 17 Over-the-Shoulder Reviews was a complex D-B project. To facilitate communication about the project schedule and project quality, Caltrans offered to meet with the designer to review the design in progress before formal submittal.
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Contract Administration Tools 107 18 Open-Book Estimating 18 Open-Book Estimating The contractor's estimating records are open for the agency to review and audit to ensure that competitive pricing for the project is achieved.
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108 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 18 Open-Book Estimating • Policy regarding confidentiality of cost data, • Estimated time scheduled when cost estimates are to be provided, • Policy on how to address cost estimates that are deemed too expensive or greater than the project's budget, • Required documentation to support the cost estimate, • Expected content of the cost estimate, • Agency definitions that are applicable to the cost estimate, and • Format guidance (e.g., either an agency-specific format or industry referenced format)
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Contract Administration Tools 109 18 Open-Book Estimating right of way, or other costs [that] are the responsibility of the Department.
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110 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 18 Open-Book Estimating 4.3 Other Requirements The following are minimum requirements for the Construction Manager when communicating cost via the open-book estimating process: • The Construction Manager shall clearly delineate any services to be self-performed and any services to be subcontracted. – For self-performed work, overhead and profit percentages are to be identified, agreed upon, and applied to the total self-performed cost "below the line." This is opposed to allocating overhead and profit into individual direct cost items.
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Contract Administration Tools 111 18 Open-Book Estimating • Contingency that is applied to an estimate during the preconstruction phase is based on an assessment of risk at each design phase, and it may be divided into several categories: – Design development to cover relatively minor changes in details, specifications, quantities, [and so on] from early design to 100 percent construction documents; – Estimate contingency to cover potential variances from what was estimated for materials and subcontracts compared to what was the actual cost of said materials and subcontracts; – Allowances for known items that cannot specifically be quantified and/or priced until further progress in design; [and]
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112 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 18 Open-Book Estimating allows the Owner and his representatives to understand the basis of costs and cost development. The estimates shall be prepared in the CM/GC's cost estimating system in customary used by the CM/GC for other projects of similar nature.
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Contract Administration Tools 113 19 Public Announcements 19 Public Announcements Public Announcements -- such as through an agency newsletter -- explain to the public what a CM-GC is and the benefits it offers a specific project.
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114 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 19 Public Announcements (e.g., social media)
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Contract Administration Tools 115 19 Public Announcements
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116 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 19 Public Announcements
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Contract Administration Tools 117 19 Public Announcements Example 2 Arizona Department of Transportation (Arizona DOT) Blog Arizona DOT has used blogs to communicate information to constituents about CM-GC, also called construction manager at risk (CMAR)
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118 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 19 Public Announcements References Arizona Department of Transportation. CMAR Method Is Beneficial for Certain Projects.
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Contract Administration Tools 119 20 Delegation of Authority 20 Delegation of Authority This agency action empowers the agency engineer in charge of a project to make project decisions that can have an impact on the project budget.
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120 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 20 Delegation of Authority Example 1 Utah Department of Transportation Change Order Policy This policy provides guidelines for the conditions and dollar amounts of change order approval for the resident engineer (RE) , project manager, and regional director.
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Contract Administration Tools 121 20 Delegation of Authority References Utah Department of Transportation. Change Orders UDOT 08B-10.
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122 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 21 Cost-Comparison Spreadsheet 21 Cost-Comparison Spreadsheet A cost-comparison spreadsheet can be used to compare the estimates by the independent cost estimator, the CM-GC, the design team, and/or the agency's estimating division. The cost- comparison spreadsheet provides a line item-by-line item view of the estimated cost.
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Contract Administration Tools 123 21 Cost-Comparison Spreadsheet How to Use It? The cost-comparison spreadsheet has a row for every line item being estimated and a column for each of the estimates prepared by the entities: the CM-GC, the independent cost estimator, the agency, and/or the designer.
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124 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 21 Cost-Comparison Spreadsheet Example 1 I-70 Vail Overpass Project, Colorado Department of Transportation Colorado DOT used a spreadsheet to compare the cost estimates prepared by the independent cost estimator and the CM-GC, as in the following excerpt. The "hide" columns are not shown to the CM-GC.
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Contract Administration Tools 125 21 Cost-Comparison Spreadsheet Example 3 Sr-108; Sr-127 to Sr-107 Project, Utah Department of Transportation This project utilized a cost-comparison spreadsheet to compare the CM-GC, the independent cost estimator, and the engineer's estimate. A portion of this template spreadsheet is shown below prior to the project values being documented.
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126 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 22 Cost-Modeling Approach 22 Cost-Modeling Approach This tool is a set of assumptions regarding construction means and methods that has been agreed to by the agency and the CM-GC. It is intended to produce uniformity in the estimating approach used by the CM-GC, the independent cost estimator, the agency, and the designer.
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Contract Administration Tools 127 22 Cost-Modeling Approach Synthesis of Examples It is important that an agency provide a CM-GC with a specification to describe multiple characteristics of the cost model, including the following: • Time schedule when the initial cost model should be provided to the agency; • Frequency as to when the cost model is to be updated, based on the project's progress; • Prescribed actions to be taken when the cost model exceeds the agency's budget; • Expected format and detail of the cost model; and • Expected documentation to be provided with the cost model to help justify the estimated costs, which can include unit costs per the agencies standard code of accounts, contractor quotes, and narratives to describe unique project circumstances influencing either estimated quantities and/or costs. $1 0 m ill io n $1 0 m ill io n– $5 0 m ill io n Note: = Recommended; = Consider case by case; = Not recommended.
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128 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 22 Cost-Modeling Approach 2) During the review period, the Cost Model will be compared with the estimate prepared by the Design and the Department estimate and/or ICE estimate.
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Contract Administration Tools 129 22 Cost-Modeling Approach Example 2 Colorado Department of Transportation CM-GC Manual The Colorado DOT CM-GC Manual emphasizes the importance of clarifying pricing assumptions so that all parties involved in producing project estimates will base their work on an agreed set of assumptions. Assumptions may be general, such as a uniform set of labor rates; or they may be specific, such as detailed notes for line items.
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130 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 22 Cost-Modeling Approach References California Department of Transportation. Preconstruction Services Contract Interstate 215 Barton Road Interchange Reconstruction Project, Construction Manager/General Contractor Services.
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Contract Administration Tools 131 23 Construction Manager–General Contractor Bid Validation 23 Construction Manager–General Contractor Bid Validation This tool is a process for checking the fairness of the CM-GC's bid proposal. Tools related to CM-GC bid validation include the independent cost estimator, the cost-modeling approach, the OPCC process, and the cost-comparison spreadsheet.
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132 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 23 Construction Manager–General Contractor Bid Validation estimate with the CM-GC estimate. Percentage range deviations between the estimates are noted.
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Contract Administration Tools 133 23 Construction Manager–General Contractor Bid Validation Example 1 Arizona Department of Transportation Construction Manager at Risk (CMAR) Process Guide GMP Proposal Review and Approval Arizona DOT asks the contractor for a GMP proposal.
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134 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 23 Construction Manager–General Contractor Bid Validation cost of construction and the CM-GC Management Price Percentage for a specific construction package. The total Contract Amount is the sum of the CAP and all established Risk Pools and Force Accounts.
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Contract Administration Tools 135 23 Construction Manager–General Contractor Bid Validation The decisions to accept a CAP Proposal is a collaborative decision between the [Colorado] DOT Project Manager, EEMA, and the established review team.
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136 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 23 Construction Manager–General Contractor Bid Validation References Arizona Department of Transportation. ADOT Construction Manager at Risk (CMAR)
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Contract Administration Tools 137 24 Independent Cost Estimator 24 Independent Cost Estimator The independent cost estimator is an independent consultant hired by the owner to prepare a project cost estimate. The independent cost estimator's cost estimate is considered a blind estimate because it is not revealed to the other estimators.
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138 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 24 Independent Cost Estimator The agency compares the independent cost estimator estimate with the CM-GC estimate and uses that information to discuss and negotiate the estimate with the CM-GC firm. The agency may have the independent cost estimator participate in cost estimate review meetings, where estimate differences are discussed and assumptions and quantities are reviewed with the aim of closing the gap between the estimates.
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Contract Administration Tools 139 24 Independent Cost Estimator ICE Estimate [Colorado] DOT contracts with an ICE who develops an Independent Cost Estimate for comparison with each of the Contractor's OPCC submittals.
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140 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 25 Cost–Savings Matrix 25 Cost–Savings Matrix This tool is a table listing the innovations or cost-saving measures developed by the project team to enhance the project in a variety of ways, such as cost and schedule.
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Contract Administration Tools 141 25 Cost–Savings Matrix the plan to implement it on a project. Agencies usually develop a standard table to document this information to help facilitate the decision about whether to implement the innovation.
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142 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 25 Cost–Savings Matrix Example 1 I-70 Vail Underpass Project, Colorado Department of Transportation For this project, the contractor developed an innovation matrix and kept the value engineering (VE) contributions updated.
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Contract Administration Tools 143 25 Cost–Savings Matrix Example 2 Winona Bridge Project, Minnesota Department of Transportation Minnesota DOT calls their innovation matrix a Cost and Schedule Savings Matrix. The individual concepts are summarized in a Cost and Schedule Savings Summary Log.
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144 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 25 Cost–Savings Matrix References Colorado Department of Transportation. Innovative Contracting (Design–Build and CM/GC)
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Contract Administration Tools 145 26 Opinion of Probable Construction Cost Process 26 Opinion of Probable Construction Cost Process This tool is an iterative process for monitoring the expected construction cost during development of the design packages. Tools related to the OPCC process include the independent cost estimator, the cost-comparison spreadsheet, the cost-modeling approach, and the CM-GC bid validation.
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146 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 26 Opinion of Probable Construction Cost Process may include the 30 percent, 60 percent, and 90 percent stages. At each stage, the contractor submits a nonbinding OPCC estimate.
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Contract Administration Tools 147 26 Opinion of Probable Construction Cost Process Example 1 Winona Bridge Project, Minnesota Department of Transportation Minnesota DOT used their OPCC process to establish interim cost estimates. This effort helped the project team clearly state assumptions and adjust the design to meet budget constraints better.
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148 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 26 Opinion of Probable Construction Cost Process each OPCC. A narrative summarizing the cost model is provided to [Minnesota]
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Contract Administration Tools 149 26 Opinion of Probable Construction Cost Process Task 6: Submit Estimates and OPCC The ICE and the CM-GC Contractor submit their estimate/OPCC for the work directly to the [Minnesota] DOT's Office of Project Management.
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150 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 26 Opinion of Probable Construction Cost Process project through some other method. If there are multiple work packages or contracts, the CM-GC Contractor is allowed to continue work on any contracts that were previously awarded.
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Contract Administration Tools 151 26 Opinion of Probable Construction Cost Process CM-GC interim pricing (OPCC) milestone process (Source: Minnesota Department of Transportation)
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152 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 26 Opinion of Probable Construction Cost Process Example 2 Colorado Department of Transportation CM/GC Manual The Colorado DOT CM-GC manuals explain that cost-estimating guidelines and assumptions are agreed to in advance. Cost estimates are required to be in detail in order to support development of budgets, schedules, specifications, and risk pools (see 27 Risk Pools)
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Contract Administration Tools 153 27 Risk Pools 27 Risk Pools A risk pool is a fund set aside to cover risks that may occur on a project.
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154 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 27 Risk Pools How to Use It? The project team identifies, analyzes, and assigns risks to the party best able to manage those risks.
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Contract Administration Tools 155 27 Risk Pools [Colorado] DOT develop risk pools for risks that need to be addressed through the [Colorado]
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156 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 27 Risk Pools or total amount of the pool, the [Colorado] DOT Project Manager may decide to accept the risk entirely into the [Colorado]
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Contract Administration Tools 157 27 Risk Pools References Arizona Department of Transportation. ADOT Construction Manager at Risk (CMAR)
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158 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 28 Contractor-Controlled Quality Control Testing 28 Contractor-Controlled Quality Control Testing This tool allows contractors to perform their own QC testing.
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Contract Administration Tools 159 28 Contractor-Controlled Quality Control Testing programs with process and checks on quality to assure that agency quality standards are being met with this tool. This tool can be used with projects of all sizes and complexities (Table A.31)
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160 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 28 Contractor-Controlled Quality Control Testing References California Department of Transportation. Quality Control Manual for Hot Mix Asphalt for the Quality Control Quality Assurance Process.
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Contract Administration Tools 161 29 Contractor Involvement in Establishing Quality Control Standards 29 Contractor Involvement in Establishing Quality Control Standards This tool allows for changes to QC standards, which may result in more efficient QM programs.
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162 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 29 Contractor Involvement in Establishing Quality Control Standards Synthesis of Examples QC standards should be in alignment with the intended function of the constructed facility. In the park path project example that follows, the agency allowed modified quality standards for an asphalt bike path.
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Contract Administration Tools 163 30 Real-Time Electronic Quality Management Information 30 Real-Time Electronic Quality Management Information Real-time electronic management of QM information -- and other project documents -- provides an organized system to record and access information.
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164 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 30 Real-Time Electronic Quality Management Information How to Use It? The implementation of some form of electronic QM information system will require varying levels of commitment from an agency's staff, depending on the types of information to be captured and the level of functionality required.
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Contract Administration Tools 165 30 Real-Time Electronic Quality Management Information References Jie, Y., C
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166 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 31 Witness and Hold Points 31 Witness and Hold Points During construction, there are certain stages -- or points -- when inspection, testing, and verification may need to take place. This work is done at critical points where specific aspects -- such as checking technical quality requirements and safety requirements -- have taken place so that the next activity or activities can proceed.
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Contract Administration Tools 167 31 Witness and Hold Points procedure that both parties agree to use during construction. Once all specific points are identified, each has to be defined as either a witness point or a hold point.
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168 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 31 Witness and Hold Points References Chung, H
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Contract Administration Tools 169 32 Payment Checklist 32 Payment Checklist The payment checklist is a list of tasks related to payment for construction and specifies which payment tasks are performed by the contractor and which are performed by the agency.
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170 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 32 Payment Checklist How to Use It? The checklist is created based on the agency requirements and the payment requirements included in the RFP.
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Contract Administration Tools 171 32 Payment Checklist Example I-405, NE 6th Street to I-5 Widening and Express Toll Lanes Project, Washington State Department of Transportation Although this is a D-B project, the example payment checklist provides a useful template that can be used with CM-GC projects. In this project, Washington State DOT created a payment checklist to guide the contractor in preparing construction invoices and to guide Washington State DOT in reviewing contractor invoices.
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Key Terms
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information on Chapter Skim is available.