progressive design build what is it an update from … · advantages disadvantages competitive...

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Moderator: Praful Kulkarni, AIAPresident/CEO of gkkworksNational Chairman of DBIA

Presenters: Geoffrey Neumayr, SEChief Development OfficerSan Francisco International Airport

Chris Strugar-Fritsch, DBIA

Director of Capital ProjectsSan Mateo County Community College District

PROGRESSIVE DESIGN‐BUILDWHAT IS IT? – AN UPDATE

FROM LAST YEAR

PRAFUL KULKARNI, AIAgkkworks President and CEONational Chairman of DBIA

• M. Architecture, Illinois Institute of Technology, Chicago, IL• B. Architecture, Indian Institute of Technology, Kharagpur, India• MBA, Pepperdine University, Malibu, CA• Honorary Doctorate, Anaheim University, Anaheim, CA• Registered Architect, California

Education and Certifications:Education and Certifications:

• 35+ years of expertise in project management, planning and design coordination of complex facilities. Praful founded gkkworks in 1991. Since the beginning, gkkworks’ vision has been to design and build buildings with a uniquely integrated services/customized solutions approach.

Years of Experience:

35+


35+

• DBIA - National Board Chairman and National Executive Board Member• President Emeritus, DBIA Western Pacific Region• Fellow, Rockefeller Foundation

Affiliations: Affiliations:

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ADVANTAGES/DISADVANTAGES

DESIGN BID BUILD (HARD BID)The traditional project delivery method, which customarily involves three sequential project phases:Design, Procurement, and Construction

Advantages Disadvantages

Competitive bidding,based on Low Resp.price

Quality/Qualifications

More Owner Control Change Orders/Delays

Familiar & Established Adversarial

A/E of Record Services as Owner Liaison

Lump-Sum/Closed Book, No Early Involvement

OWNER

A/E

GC

SUBS

CM MULTI-PRIMEAn important variation of Design-Bid-Build is multiple prime contracting, in which the Owner holds separate contracts with contractors of various construction work disciplines, such as general construction, earthwork, structural, mechanical, and electrical. In this system, the Owner, or its CM, manages the overall schedule and budget.


Competitive Prime Trades, Early involvement from CM for cost and schedule controls

Administrative difficulty; Direct trade and A / E conflicts

Eliminates GC premiumsLack of single risk bonded price, higher risk with subs.

CM is on owners side

Lump Sum / Closed book, potential overlap or gaps in scope of work.

OWNER

A/E

P

CM

P P


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CM AT RISK (CMAR)A project delivery method in which the Construction Manager acts as a consultant to the Owner in the development and design phases, but assumes the risk for construction performance as the equivalent of a constructor.


Qualifications BasedLack of Subcontractor Transparency since Based on Lump Sum

Risk is on CM, Subs Assigned to CM

Legal Authorization for Delivery Method

Pre-Construction Work, Early Involvement with Procurement, Schedule, Budget, etc.

No Common Standards for Methodology

OWNER

SUBS

CMAR/GC

A/E


DESIGN BUILDA project delivery method that combines architectural and engineering design services with construction performance under one contract.


Qualifications BasedNewer Form of Delivery

Risk with Design/Builder

Team/Integrated Approach/ Creative Solutions

Potential Lack of Design Control

Minimal Change Orders, Early Budget and Design Estimates, Scope Controls

Higher Learning Curve for Delivery Method

Best Value Award

OWNER

A/E D/B SUBS

D/B ENTITY

PROJECT DELIVERY SUPPORT


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GEOFFREY NEUMAYR, SE, CCMSan Francisco International AirportChief Development Officer

• BS Architectural Engineering, California Polytechnic State University, San Luis Obispo

• Registered Civil Engineer• Registered Structural Engineer


• Over 33 years of experience as a Provider in AEC as a Project Manager and Vice President of Operations. He is currently Chief Development Officer at San Francisco International Airport since 2011.


33+


33+

• Incoming Board Member, DBIA National• Member, American Association of Airport Executives (AAAE)• Advisory Board of California Polytechnic State University, San Luis Obispo

Architectural Engineering Department


CONFLICT GAME ON

THE CONFLICT IN THE LAW

Spearin DoctrineUnited States v. Spearin (248 U.S. 132), also referred to as the Spearindoctrine is a 1918 United States Supreme Court decision. It remains one of the landmark construction law cases. The owner impliedly warrants the information, plans and specifications which an owner provides to a general contractor. The contractor will not be liable to the owner for loss or damage which results solely from insufficiencies or defects in such information, plans and specifications.

Standard of CareThe common law standard of care for performance of design professional services is generally defined as the ordinary and reasonable care usually exercised by one in that profession, on the same type of project, at the same time and in the same place, under similar circumstances and conditions. Perfect performance is not required by the common law.

Builder can assume contract is error freewith no omissions.

Designer is accountable to a reasonable standard of care,therefore Errors and Omission are acceptable within a limit.

The Airport

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LOSS OF PRODUCTIVITY

Dictated Requirements

• Lowest Bid Wins• Qualifications are not

Considered

• Critical Path or Push Scheduling• Fixed Cost Based on Low Bid

• Organization Structure is Hierarchical

• Blame is Assigned to Party Based on Contract Requirements

• Project Alliance is Built on Common Purpose

• Partnered Approach to Issue Identification and Resolution

• Terms of Cost, Scope and Schedule is Co-Created Prior to Finalizing

• Qualifications are Considered

Co-Created Requirements

• Pull Planning to Promote Improvement• Target Value Budgeting

Commercial Terms: You will get the behavior you contract for – what is the contractual relationship?

Organization Behavior: The project individual team members behavior will depend on the leadership style - How is the participant control structure organized?

Operating Management: Behavior will reflect the way the project is managed –how is the project management plan created?

DOMAINS OF PROJECT DELIVERY

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PERCEIVED PROJECT RISK

thinks the builder will:

thinks the designer will:• only be concerned with the

own ego• be over budget• not be what is wanted or

needed• miss program elements

• never do what we want• pursue change orders and

additional cost • never finish on time• cut corners to save money

thinks the Airport will

• deviate from the design• look for errors and ask to

many RFI’s• always say it is not

constructible and drawings are deficient

• never make a decision• keep changing the design• blame the design for change

orders• always want additional

design services for free

thinks the designer will:

• never be satisfied with the quality of the work

• not pay for changes • never acknowledge schedule

delays

• provide incomplete unconstructable drawings

• claim the drawings are perfectly understandable

• always fault the contractors for missing things in their bid

thinks the builder will: thinks the Airport will:

Vision Risk• Budget expectations• Funding expectations• Schedule expectations• Scope expectations• Project outcome expectations• Sharing vision with team

• Interpret vision• Communicate design• Develop Project Program• Develop project contract

drawings• Develop project specifications

• Build project in accordance with contract documents

• Build project within approved budget

• Build project within approved schedule

Design Risk Construction RiskVision Risk• Budget expectations• Funding expectations• Schedule expectations• Scope expectations• Project outcome expectations• Sharing vision with team

• Interpret vision• Communicate design• Develop Project Program• Develop project contract

drawings• Develop project specifications

Design Risk• Build project in accordance with

contract documents• Build project within approved

budget• Build project within approved

schedule

Construction RiskRisk Will Always Stay With the Responsible Organization

Focus On Aligning ExpectationsNot Assigning Risk

PROJECT RISK REALITY

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The Project Team The Project

ALIGNED PROJECT DELIVERY

Contractual RelationshipLines of Communication

Collaborate

CHRIS STRUGAR‐FRITSCH, DBIASan Mateo County Community College International AirportDirector of Capital Projects

• Master of Science, Administration, Central Michigan University• Bachelor, Business Administration, Summa Cum Laude, Northwood University• Associate Degree, Lansing Community College• Journeyman Carpenter, U.S. Department of Labor, Bureau of Apprenticeship and Training


• Director of Capital Projects for San Mateo County Community College District rresponsible for development and management of all capital projects at the District’s three colleges and District Office. Executive leader in higher education capital outlay projects, administrative services, facilities management, and operations for multiple campuses, leadership and management in commercial and industrial project development, planning, and construction implementation with various delivery methods: design/bid/build, GC GMP, integrated project delivery, and construction management services.


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• Society for College and University Planning Institute: Certified Planner; Integrated Planning • Member City of Lansing/Ingham County Bike Share Feasibility Committee• Mayoral & Lansing City Council appointment Saginaw Street Corridor Improvement Authority• Licensed Builder, State of Michigan # 2101063025• Standardized Emergency Management Systems (SEMS) – FEMA Certification• National Incident Management Systems (NIMS) – FEMA Certification• Design Build Institute of America (DBIA) – Design Build Professional


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San Mateo County Community College Migration to Progressive Design Build

PRESENTER

Chris Strugar-Fritsch, DBIA

Director of Capital Projects

Cañada College B1N – Kinesiology & Wellness [Blach/ELS]

SMCCCDHistory with Design Build

• SMCCD first California CCD to use Design-Build• AB 1000: Enacted in September 2002. Allowed Design-

Build to be used by five CCDs as pilot programs until December 2007

• José Nuñez, SMCCD Vice Chancellor for Facilities and Jeff Gee, Swinerton Management Consultants lobbied legislature to approve AB 1000

• Current California Education Code 81700 – 81708 allows CCDs to use Design-Build for project > $2.5M through 2020

• SMCCD two previous Bond Measure Programs has constructed ~$400M of capital projects using Design-Build

• Current Bond Measure Program using Design-Build ~$250M

Cañada College B1N – Kinesiology & Wellness [Blach/ELS]

Progressive Design‐Build

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Past • Architect Develops Bridging Documents• RFSOQ and RFP Process to Select Design-

Build-Entity• Design Competition• Guaranteed Maximum Price (GMP)

Established at Contract Award

SMCCCD PRACTICES

Current • RFP Qualifications/Best Value Selection

Process• No Bridging Documents• No Design Competition – Design Completed

with College/District Input• GMP Established After Design is Fully

Developed, Agencies Permit Processes and Buyout Completed

Skyline B1N – Social Sciences & Creative Arts [Turner/Snohetta/DLR Group]


DESIGN BUILD PROCUREMENT PROCESS

• Three highest ranked Design-Build Entities are invited to participate• Employs objective evaluation criteria as required per Education Code

81700; price, technical expertise, life cycle costs, skilled labor force availability, and acceptable safety record

• Allows for price or costs to be considered with qualifications

• Employs evaluation criteria traditionally used for qualifications-based selection along with a prequalification questionnaire based on the Department of Industrial Relations’ guidelines

• Allows for a larger pool of qualified firms to participate

“Best Value”Qualifications + Cost

Request for Statementof Qualifications

Request for Proposals

Cañada College B23N – Math, Science & Technology [McCarthy/HGA]


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• District Has More Influence on Design After Contract Award• District Can Hire DBE Team that is Best Fit for College• Improved Integrated Design Process• Leverage IPD and Lean Construction Practices• Improved Speed to Market• Open Book/Transparent Cost Management• Improved Competition

REASONS FOR IMPLEMENTING CURRENT PRACTICE

Skyline B12N – Environnemental Science [XL Construction / DES Architects]


PRESENTER

CONTACT

INFORMATION

Praful Kulkarni, AIAPresident/CEO | gkkworks | National Chairman of DBIA |[email protected] | (949) 249‐2500

Geoffrey Neumayr, SEChief Development Officer | San Francisco International Airport |[email protected] | phone number

Chris Strugar‐Fritch, DBIADirector of Capital Projects | San Mateo County Community College District| [email protected] | 650‐378‐7342

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QUESTIONS?