Delivering Successful Facility Projects

It Starts and Ends with You!Al Erdman - Central Texas College

This presentation is not intended to be a complete illustration of the design and construction process.

Rules and law governing many of the processes and procedures that will be discussed are governed under HB 628 (codified as Chapter 2267 of the Texas Government Code effective 9-1-11), Chapter 2254 of the Texas Government Code, and TX Education Code Chapter 44. Please refer to these for more detail or clarification.

Standard Disclaimers

Assembling the committee Assembling the team Designing the project Bidding the project Construction Post construction/warranty

The Process

Someone has to take the lead –as the CFO you’re probably going to have to live with it

Multi-functional representation◦ Facilities◦ IT◦ Faculty◦ Staff & administrators◦ Other occupant representative(s)

Set ground rules for communication ◦ Compile, distribute and review minutes!

Establish what success looks like◦ Budget, function, schedule, appearance

etc.

Assembling the Committee

Team is a critical concept◦ College committee◦ Consultants hired by college (2 step)

Architects Materials testing Roofing consultant LEED consultant Commissioning agent Owner’s rep PM firm (optional)

Establish project delivery method early on – typically:◦ Construction Manager at Risk (CMAR) –early addition◦ Design-Build – early addition◦ Competitive (low) bid – late addition◦ Competitive Sealed Proposals –late addition

Assembling the Team

CMAR, Low Bid or CSP Relationship Provide consultation during design phase and serve as general contractor during construction phase.

Hire for chemistry not for reputation Don’t fall for bait-and-switch Ask for project list for last xx years Everything is negotiable Use your own contracts (modify AIA

versions) Price is only one factor – 40% guide Watch out for lowball pricing Listening is an overlooked skill You are the boss!

Key Concepts in Hiring AEs & CMs

Reconfirm what success looks like Reconfirm rules Establish preliminary schedule(s) Establish budget

◦ Construction◦ AE & consultant fees◦ Other (furniture & equipment, etc.)◦ Contingencies – 10 to 20%

Design Construction Owner

Setting Direction is Important

Average

Good

Poor

37%Early Program Definition Benefits

Well-defined projects cost 17% less than the average

Poorly defined projects cost 20% more.

Edward Merrill Independent Project Analysis Corp. Reston, VA

Why are Contingencies Important?

Time

Market Conditions

Core Inflation Rate

Bid Day Scope Reductions or Budget Overrun

Scope Increases

Design phases◦ Schematic Design (SD)◦ Design Development (DD)◦ Construction Documents (CD)

Team MUST review plans & specs at end of each phase

Ensure that AE assembles and answers comments from team before progressing to next design phase

Do cost estimates at end of each phase to keep project within budget

Owner must approve use of contingency!

Designing the Project

Written requirements

Design drawings

Construction drawings

Occupancy

The cost of changing something increases by a factor of about 10 each time the project changes its state.

Construction

Why is Early ReviewImportant?

Make sure plans & specs are complete (include draft contract if possible)

Reach out to potential bidders Hold a pre bid conference – issue addenda Give bidders sufficient time to bid Evaluate using published criteria Select the bidder that represents “best

value” If CMAR, make rankings public within 7 days Contract and issue Notice to Proceed (NTP)

Bidding the Project

Ensure that◦ Contract is signed◦ P & P bonds and insurance are in place◦ Notice to Proceed is issued

Coordinate pre construction meeting◦ Team should attend along with key sub

contractors◦ Reconfirm definition(s) of success for the project◦ Discuss college “rules”◦ Review project schedule◦ Review communication requirements◦ Emphasize safety

Contractor is responsible –site “belongs” to the CM

Let’s Get Building!

Weekly meetings◦ Discuss major project issues◦ Schedule◦ Requests For Information (RFIs)◦ Change Orders (COs)◦ Safety – close calls and accidents◦ Attendance by critical sub consultants &

contractors◦ Ensure that AE takes and distributes minutes!

Weekly project walks by Team Team approach

Construction Progress/Administration

Substantial completion – defined by the AIA◦ § A.9.8.1 Substantial Completion is the stage in the

progress of the Work when the Work or designated portion thereof is sufficiently complete in accordance with the Contract Documents so that the Owner can occupy or use the Work or a portion thereof for its intended use.

Architect walks project (with Team), certifies, and develops/attaches punch list

Ownership of the project transfers to college (along with insurability!)

Generally owner occupies at Substantial Warranty commences

Substantial Completion

Final Completion◦ CM notifies AE project is complete in writing◦ AE walks project & certifies completion of punch

list◦ CM submits final pay application to AE along with

Certifies that all bills have been paid from prior pmts. Conditional lien waiver Attestation that insurance will be kept in place

through warranty period with cancellation notification

Consent of surety Other documents required by contract

◦ AE submits final pay application to owner

Final Completion

Commences at substantial completion and usually runs for a year

Make sure warranty list is compiled by CM, updated, and reviewed monthly by Team

Conduct six and eleven month walks! Look for reoccurring problems If we’ve paid out the AE and CM how do we

know they will work◦ Reputation and future work is the driver◦ Owner can also require a maintenance bond in

contract

Warranty

Assembling the right college team is critical Define success early on Hire an architect that will listen to you The project delivery method should be

decided at the beginning the project Contracts govern everything Stay connected during construction Don’t waffle on substantial completion Drive the project through to final completion Have fun!

So What Have we Learned?

Questions!