Alternative project delivery Gastonia s experience with CMAR. Presented by: Rusty Bost, City of Gastonia Keith Garbrick, LaBella Associates

Transcription

1 Alternative project delivery Gastonia s experience with CMAR Presented by: Rusty Bost, City of Gastonia Keith Garbrick, LaBella Associates

2 When we Last met

3 presentation preview: Review of the basics for how CMAR works, governing statutes and legal requirements. The City of Gastonia s Water Treatment Plant, basics of the project into lessons learned Up Next: FUSE (Franklin Urban Sports and Entertainment) project.

4 Construction manager at risk (cmar) Construction Manager is chosen by qualifications CMAR becomes part of the design team and provides Value Engineering input and estimates based on progress drawings (30%, 60% and 90%). CMAR provides owners with a Guaranteed Maximum Price (GMP) CMAR cannot self perform work*

5 Governing statutes NC General Statute , October 1, 2014 Allows Construction Manager At Risk Municipality has to have concluded that Construction Management at Risk service is in the best interest of the project and have to have compared to other delivery methods. NC General Statute , October 1, 2014 Allows prequalification of subcontractors

6 Selecting a construction manager at risk Qualifications Based Selection Standard RFQ process for Professional Services RFQ Suggestions: Litigation History GMP vs Actual cost history (possible payback) Bonding Capacity and grade of Bonding Agency Page limits are a must Short List Interview Suggestions: Time Limit Bring the Superintendent Limit number of representatives from applicant

7 Construction manager At risk contract Single contract for pre-construction services, with GMP added later. Separate contracts for Preconstruction Services and Construction.

8 Construction manager At risk fees Preconstruction Services 0.25% per pricing exercise or 1% of the cost of work General Conditions Includes costs associated with the project team - (Senior Project Manager, Superintendent, etc.) Includes items required to administer the project -(job trailer, storage trailer, etc.) Typically 8% of the cost of work

9 Construction manager At risk fees Construction Fee Typically in the range of 2.5% to 3% Includes profit and home office overhead (including the Project Executive, Accounting, etc.) Contingencies Preconstruction: Team Decision Construction Contingency: 3% Bonds and Insurance Typically 2% of the cost of work (P&P Bond/GL Insurance/Builders Risk)

10 pre-construction services Value Engineering CMAR Provides estimates at 30%, 60% and 90% Constructability review/input Materials/equipment reviews, field trips to other facilities Possible early bid package for long lead items

11 Construction CMAR cannot self perform All work is still competitively bid to 1 st Tier Subcontractors The CMAR has to prequalify all 1 st Tier Subs Minimum score method, with points awarded for experience, bonding capacity, references, staffing, etc. Changes in work Two separate contingencies Contractors contingency carried by CMAR in the GMP Owners contingency can be carried separately A CMAR is still a contractor At close out, CMAR carries the warranty. The subs may have to come back to repair/finish items; however, it is the CMAR s responsibility.

12 Close out Water Treatment Plant: Was under operation during the entire project, and was a phased approach with Temporary CO s being issued for parts throughout the project. CMAR may help with Soft Openings

13 Gastonia case studies Water Treatment Plant Renovations New 5 m.g. clearwell Membrane treatment of surface water $56 million dollar upgrade Very limited site (in downtown)

14 Gastonia case studies FUSE (Franklin Urban Sport & Entertainment) District $15 Million economic development investment Surrounding private redevelopment Lots of public attention

15 Contingency funds Gastonia (WTP) elected to not encumber an owners contingency within the GMP. Funds were held within existing enterprise fund accounts Contractors Contingency was established within the GMP for Scope Gap, used by the contractor with our advise, but not consent Split savings as motivator

16 Expect the unexpected Union issues with 3 rd tier subcontractor (you never know what will make the news) Claims from subcontractors City s risk (or CMAR)? Quality of Work how do issues get resolved? Responsiveness to schedule, and total cost to municipality

17 Team building and buy in Would we use cmaragain? Off ramp if GMP negotiations aren t working out, you still have options. Certainty of pricing open book. Pre construction services.

18 The future of cmar Owners going to design build, time = money, time savings (due to current market, general conditions cost) Changes to statutes self performing (where subs works needs correcting)