Building Design & Construction 2006Building Design & Construction 2006

David O’Hearn, P.E.David O’Hearn, P.E.

Deputy CommissionerDeputy Commissioner

Presentation OutlinePresentation Outline

Motivation & CommunicationMotivation & Communication TopicsTopics

– QualityQuality– ScheduleSchedule– BudgetBudget– ClaimsClaims– Moving ForwardMoving Forward

Q&AQ&A

CommunicationCommunication

Web Site Re-designWeb Site Re-design– PublicationsPublications– Results for Bids & SelectionsResults for Bids & Selections– Services for state agencies Services for state agencies 

Participation in External EventsParticipation in External Events Professional PresenceProfessional Presence Industry Advisory CouncilIndustry Advisory Council

Industry Advisory Council (IAC)Industry Advisory Council (IAC)

ABC - Associated Builders & Contractors of CTABC - Associated Builders & Contractors of CTACEC - American Council of Engineering CompaniesACEC - American Council of Engineering CompaniesAGC - Associated General Contractors of AmericaAGC - Associated General Contractors of AmericaAIA - American Institute of ArchitectsAIA - American Institute of ArchitectsCBC - Connecticut Building CongressCBC - Connecticut Building CongressCMAA - Construction Management Association of AmericaCMAA - Construction Management Association of AmericaCSA - Connecticut Subcontractors AssociationCSA - Connecticut Subcontractors AssociationDPW - Department of Public WorksDPW - Department of Public Works

Industry Advisory Council (IAC)Industry Advisory Council (IAC)

Mission StatementMission Statement

Work collaboratively through Work collaboratively through communication, conceptualization, and communication, conceptualization, and implementation to provide efficient and implementation to provide efficient and effective solutions, which will produce effective solutions, which will produce high quality projects within schedule and high quality projects within schedule and budget, at a fair price. budget, at a fair price.

““The IAC has given the industry a true voice in the The IAC has given the industry a true voice in the policies and administration of DPW. For this, DPW policies and administration of DPW. For this, DPW

should be commended. This has been the most should be commended. This has been the most receptive the department has been to the industry in receptive the department has been to the industry in many, many years and AGC is hopeful this excellent many, many years and AGC is hopeful this excellent

progress will continue.”progress will continue.”

Total Employees Total Employees 6767

Licensed ProfessionalsLicensed Professionals– Licensed ArchitectsLicensed Architects 8 8

– Licensed Professional EngineersLicensed Professional Engineers 1010

– Licensed Building OfficialsLicensed Building Officials 9 9

– Licensed Landscape Architect Licensed Landscape Architect 1 1

– Licensed SurveyorLicensed Surveyor 1 1

Over 80%ofOver 80%of Staff – 10 Hr OSHA CertifiedStaff – 10 Hr OSHA Certified

DPWDPWDesign & Construction StaffDesign & Construction Staff

04/21/2304/21/23

Formal Construction Formal Construction ProjectsProjects

Total Formal Construction Contracts Awarded

$-

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

$160,000,000

$180,000,000

92-93

93-94

94-95

95-96

96-97

97-98

98-99

99-00

00-01

01-02

02-03

03-04

04-05

Fiscal Year

To

tal $

Project Management Institute (PMI®) –

"the application of knowledge, skills, tools and techniques to project activities to meet the project objectives."

Project ManagementProject Management

Project ManagementProject Management

There are three main points that are most important to a successful project:

A Project must:

• meet customer requirements. (quality) • be under budget. • be on time.

Construction Management is : a professional service that applies effective management techniques to the planning, design, and construction of a project from inception to completion for the purpose of controlling time, cost and quality.

Construction Project Construction Project ManagementManagement

Think Ahead/PlanThink Ahead/Plan

The Foam Test

• AFFF system at Ellsworth AFB

• Was only supposed to last a few seconds

• System wouldn't shut off…

• I’d hate to have to explain this.

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

2001 2002 2003 2004 2005 2006 (6mo)

Set Aside Compliance

Set-aside Goal (25%) Actual Set-aside Participation

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

2001 2002 2003 2004 2005 2006 (6mo)

MBE/WBE Compliance

MBE/WBE Goal (6.25%) Actual MBE/WBE Participation

Formal Construction

$-

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

$160,000,000

$180,000,000

FY 01 FY 02 FY 03 FY 04 FY 05

To

tal $

Completed Started

04/21/2304/21/23

Staffing vs. ProjectsStaffing vs. Projects

$-

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

$160,000,000

$180,000,000

94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05

Fiscal Year

0

20

40

60

80

100

120

140

Des

ign

& C

on

stru

ctio

n S

taff

ing

Formal Construction Awards D&C Staff

04/21/2304/21/23

Staffing vs. ProjectsStaffing vs. Projects

-

10

20

30

40

50

60

94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05

Fiscal Year

Nu

mb

er o

f P

roje

cts

0

20

40

60

80

100

120

140

Des

ign

& C

on

stru

ctio

n S

taff

ing

Formal Construction Projects D&C Staff

QualityQuality

Chief Architect signs all S/CChief Architect signs all S/C Better Documents - CoordinationBetter Documents - Coordination Constructability ReviewsConstructability Reviews More Thorough Pre-Con from CA’sMore Thorough Pre-Con from CA’s Pre-Bid ChecklistPre-Bid Checklist Close Out & Pre Occupancy Close Out & Pre Occupancy

ChecklistsChecklists EvaluationsEvaluations

ScheduleSchedule

New Schedule SpecificationNew Schedule Specification Reduce Change OrdersReduce Change Orders Bid Award TimelyBid Award Timely Set realistic SchedulesSet realistic Schedules Cash FlowCash Flow Coordinate PhasingCoordinate Phasing EvaluationsEvaluations

Substantial Completion +/- Days

0

20

40

60

80

100

120

140

FY

01

FY

02

FY

03

FY

04

FY

05

FY

06

Day

s

Substantial Completion +/- % of Time

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

FY

01

FY

02

FY

03

FY

04

FY

05

FY

06

Substantial CompletionSubstantial Completion

Post Substantial Completion Close Out

0

50

100

150

200

250

300

350

400

450

500F

Y 0

1

FY

02

FY

03

FY

04

FY

05

FY

06

Day

s

Project Close OutProject Close Out

BudgetBudget

Internal ReconciliationsInternal Reconciliations Award Contracts Within 90 DaysAward Contracts Within 90 Days Reduce Change OrdersReduce Change Orders Stay on ScheduleStay on Schedule Claims MitigationClaims Mitigation Increase Inflation MultipleIncrease Inflation Multiple

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

FY 01 FY 02 FY 03 FY 04 FY 05 FY 06

Total Change Orders

% Field Condition % Agency Requests % Document Deficiencies

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

FY 01 FY 02 FY 03 FY 04 FY 05 FY 06

Field Condition Change Orders

% Field Condition

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

FY 01 FY 02 FY 03 FY 04 FY 05 FY 06

Document Deficiency Change Orders

% Document Deficiencies

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

FY 01 FY 02 FY 03 FY 04 FY 05 FY 06

Agency Requested Change Orders

% Agency Requests

30 Year (Year to Year) Building Construction Inflation

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Year

% Change from Previous YR

Source: ENR (BCI) Building Cost Index History

10 Year Cumulative Building Construction Inflation

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Year

Ten Year Cumulative %

Source: ENR (BCI) Building Cost Index History

Building Construction InflationBuilding Construction Inflation

For Jan 05 to Jan 06 upFor Jan 05 to Jan 06 up 5.4%5.4%

For Jan 04 to Jan 05 upFor Jan 04 to Jan 05 up 9.2%9.2%

20 Year average from 1986-200520 Year average from 1986-2005 2.8%2.8%

10 Year average from 1996-200510 Year average from 1996-2005 3.1%3.1%

5 Year average from 2001-20055 Year average from 2001-2005 3.5%3.5%

Source: ENR (BCI) Building Cost Index History

ClaimsClaims

Deal With Issues As They OccurDeal With Issues As They Occur Dispute Resolution Boards (DRB’s)Dispute Resolution Boards (DRB’s) Better Quality DocumentsBetter Quality Documents

– Constructability ReviewConstructability Review– Scope ReviewScope Review

Qualified ContractorsQualified Contractors DocumentationDocumentation Certificates of AcceptanceCertificates of Acceptance Claims AdministrationClaims Administration

Moving ForwardMoving Forward

Project TrackingProject Tracking Div 0/1 (Includes retainage reduction)Div 0/1 (Includes retainage reduction) Past PerformancePast Performance 90 Day Close Out90 Day Close Out DRB’sDRB’s Lien WaiversLien Waivers Tighter Standards for CATighter Standards for CA Scope/Constructability ReviewsScope/Constructability Reviews PM ManualPM Manual Change Order ProcedureChange Order Procedure