Design & Construction Models that may Save You · PDF fileDesign & Construction Models that may Save You Money Craig Piper Denver Zoological Foundation IAAPA 2009

Design & Construction Design & Construction Models that may Save You Models that may Save You

MoneyMoney

Craig PiperCraig PiperDenver Zoological FoundationDenver Zoological FoundationIAAPA 2009IAAPA 2009

Design & Construction ModelsDesign & Construction Models

TraditionalTraditional

Design Design –– Bid Bid –– BuildBuild

Negotiated Select TeamNegotiated Select Team

PrequalifiedPrequalified Design Design –– Bid Bid –– BuildBuild

Construction ManagerConstruction Manager

As AdvisorAs Advisor

As AgentAs Agent

As Constructor (at Risk)As Constructor (at Risk)

Design Design –– BuildBuild

Design Design –– Bid Bid -- BuildBuild

Traditional ModelTraditional Model

Bid/Hire Designer & Prepare Bid/Hire Designer & Prepare CDCD’’ss

Select Builder w/BidsSelect Builder w/Bids

AdvantagesAdvantages

Easy to Manage/Clear RolesEasy to Manage/Clear Roles

Designed Prior to Construction; Designed Prior to Construction; Design QualityDesign Quality

DisadvantagesDisadvantages

LengthyLengthy

Separation of Design & Separation of Design & Construction: Changes in Construction: Changes in Schedule & Cost More LikelySchedule & Cost More Likely

Owner

Designer Builder

Contract

Communication


Modified DesignModified Design--BidBid--BuildBuild

Hire Designer and Builder at or Hire Designer and Builder at or Near the Same Time Under Near the Same Time Under Separate ContractsSeparate Contracts

Usually Qualifications BasedUsually Qualifications Based


Cooperative Team ApproachCooperative Team Approach

Cost/Schedule/ Constructability Cost/Schedule/ Constructability Advice During DesignAdvice During Design


May Not Get Best Price if May Not Get Best Price if InexperiencedInexperienced

Often Not Allowed in Public Often Not Allowed in Public Sector ProjectsSector Projects

Owner

Designer Builder

Contract

Communication

PrequalifiedPrequalified Design Design –– Bid Bid -- BuildBuild


PrequalifyPrequalify Designers and/or Designers and/or BuildersBuilders

Designer Prepares CDDesigner Prepares CD’’ss

Select Builder w/Bids from Select Builder w/Bids from PrequalifiedPrequalified CandidatesCandidates


Narrows Field to Qualified FirmsNarrows Field to Qualified Firms

Better Schedule ControlBetter Schedule Control

Easy to Manage/Clear RolesEasy to Manage/Clear Roles

Designed Prior to ConstructionDesigned Prior to Construction

Sometimes Allowed in Public Sometimes Allowed in Public Sector ProjectsSector Projects


May Not Get Best PriceMay Not Get Best Price

Separation of Design & Separation of Design & Construction: Changes in Schedule Construction: Changes in Schedule & Cost More Likely& Cost More Likely

Sometimes Not Allowed in Public Sometimes Not Allowed in Public Sector ProjectsSector Projects

Owner

Designer Builder

Contract

Communication

Contract Communication

Construction Manager as AdvisorConstruction Manager as Advisor


CM Hired at Outset or Once Design CM Hired at Outset or Once Design is Completeis Complete

CDCD’’s Prepared, then Bid or s Prepared, then Bid or Negotiate for ConstructionNegotiate for Construction


Owner Contracts Directly with Owner Contracts Directly with Designer & Builder; Has Reduced Designer & Builder; Has Reduced Management DutiesManagement Duties

Expert Oversight if Not Available InExpert Oversight if Not Available In-- House; Good for Complicated House; Good for Complicated ProjectsProjects


Added Consultant FeeAdded Consultant Fee

Poor Cost/Schedule ControlPoor Cost/Schedule Control

Confusion of Roles & Confusion of Roles & CommunicationCommunication

Owner

Designer Builder

CM


Construction Manager as AgentConstruction Manager as Agent

CM Has Powers of OwnerCM Has Powers of Owner

CM Hired at Outset; CM Assumes CM Hired at Outset; CM Assumes Financial AuthorityFinancial Authority

Designer Hired by CMDesigner Hired by CM

CDCD’’s Prepared, then CM Bids or s Prepared, then CM Bids or Negotiates for ConstructionNegotiates for Construction


Single Point of Contact for OwnerSingle Point of Contact for Owner

Owner Able to Step Back; Expert Owner Able to Step Back; Expert Oversight if Not Available InOversight if Not Available In--HouseHouse


Added Consultant FeeAdded Consultant Fee

Communication Suppressed Communication Suppressed Between Owner & Designer or Between Owner & Designer or ContractorContractor

Confusing RolesConfusing Roles

Poor Cost/Schedule ControlPoor Cost/Schedule Control

Owner

Designer Builder

CM

Construction Manager as ConstructorConstruction Manager as Constructor (At Risk)(At Risk)

CM Assumes Liability & CM Assumes Liability & Responsibility of ContractorResponsibility of Contractor

CM Often Selected by Bid at 30% Design CM Often Selected by Bid at 30% Design DocumentsDocuments

CM Usually CM Usually RebidsRebids some Work when some Work when CDCD’’s completes complete

Contracts Similar to Traditional Design Contracts Similar to Traditional Design –– Bid Bid -- BuildBuild


Usually Acceptable for Public ProjectsUsually Acceptable for Public Projects

Initial Focus on DesignInitial Focus on Design

Construction Advice Early in ProcessConstruction Advice Early in Process

Oversight of Cost & Time/Ability to Fast Oversight of Cost & Time/Ability to Fast TrackTrack


Reduced Owner Quality Control; CM Reduced Owner Quality Control; CM controls contracts.controls contracts.

Potential for Adversarial RelationshipsPotential for Adversarial Relationships

Change Orders/Delay Claims from Prime Change Orders/Delay Claims from Prime Contractors or SubcontractorsContractors or Subcontractors

Owner

Designer CM/Builder


Multiple Prime Contracts


Design BuildDesign Build

Single Point of ResponsibilitySingle Point of Responsibility

May be Led by Designer or BuilderMay be Led by Designer or Builder

Early Commitment to GMPEarly Commitment to GMP


Single Point of Contact for OwnerSingle Point of Contact for Owner

Good for Fast Track Projects which Good for Fast Track Projects which are Well Defined at Outsetare Well Defined at Outset

Useful for Complex Projects which Useful for Complex Projects which Require Extensive CoordinationRequire Extensive Coordination

Reduced Change Orders & DelaysReduced Change Orders & Delays


Complex for Those without Complex for Those without ExperienceExperience

Potential Lack of Contact between Potential Lack of Contact between Owner and Designer.Owner and Designer.

Cost Savings Can Erode Design Cost Savings Can Erode Design and Construction Qualityand Construction Quality

Owner

Designer Builder

Design Build Entity

Design Build

Team

Which Model to Use?Which Model to Use?

TraditionalTraditional




Construction ManagerConstruction Manager

As AdvisorAs Advisor

As AgentAs Agent

As Constructor (at As Constructor (at Risk)Risk)

Design Design –– BuildBuild

It Depends on the ProjectIt Depends on the Project


When RequiredWhen Required

Political Reasons (Opportunity Political Reasons (Opportunity for All)for All)

Very Standard ProjectVery Standard Project

Inexperienced OwnerInexperienced Owner


When Owner Needs When Owner Needs Specialized SkillsSpecialized Skills

Owner Wants Continuity Over Owner Wants Continuity Over Several ProjectsSeveral Projects

Want High Quality for A Want High Quality for A Defined BudgetDefined Budget



To Gain Benefits of Negotiated To Gain Benefits of Negotiated Select Team Under Requirements Select Team Under Requirements of Traditional Design of Traditional Design –– Bid Bid -- BuildBuild


CM As AdvisorCM As Advisor

Complex ProjectsComplex Projects

Owner InexperiencedOwner Inexperienced

Lack InLack In--house Staffhouse Staff

Fast TrackingFast Tracking

Design Less Important than Design Less Important than Budget/EfficiencyBudget/Efficiency

Owner Wants to Hold ContractsOwner Wants to Hold Contracts

CM As AgentCM As Agent

Same as CM/Advisor Except Same as CM/Advisor Except Owner Wants to Delegate Owner Wants to Delegate Contracts (Less Owner Contracts (Less Owner Involvement)Involvement)


CM As Constructor (at Risk)CM As Constructor (at Risk)

Common among Experienced Common among Experienced Public & Private Owners. Allows Public & Private Owners. Allows Competition Required for Public Competition Required for Public ProjectsProjects

Complex Project Requiring Early Complex Project Requiring Early Construction Pricing ExpertiseConstruction Pricing Expertise



Design Design -- BuildBuild

Owner Wants Early Cost Owner Wants Early Cost Commitment Commitment –– Control RiskControl Risk

Complex Requiring Extensive Complex Requiring Extensive CoordinationCoordination

Project is Well Defined by Owner Project is Well Defined by Owner at Early Stageat Early Stage


Process Oriented ProjectProcess Oriented Project

Owner Wants to Hold Single Owner Wants to Hold Single ContractContract

Construction Cost GrowthConstruction Cost Growth

4.83

3.37

2.17

0

1

2

3

4

5 M

edia

n C

ost G

row

th (%

)

Design-Bid-Build CM at Risk Design Build

Cost Growth = [(Final Project Cost – Contract Award)/Contract Award] X 100

Source: Construction Industry Institute, Research Summary 133-1, 1997

Schedule GrowthSchedule Growth

4.4

0 0

0

1

2

3

4

5 M

edia

n S

ched

ule

Gro

wth

(%)


Schedule Growth (%) = [(Total Project Time – Total As Planned Time)/Total As Planned Time] X 100


Construction SpeedConstruction Speed

5135

8192

9091

0

2000

4000

6000

8000

10000


Construction Speed (sf/month) = [Area/(Construction as Built Time/30)]


Design & Construction SpeedDesign & Construction Speed

3250

4712

6842

0

1000

2000

3000

4000

5000

6000

7000


Design & Construction Speed (sf/month) = [Area/(Total Project Time/30)]


Common Knocks Against DesignCommon Knocks Against Design--BuildBuild

Quality of Design is Less Quality of Design is Less Important than Cost & Important than Cost & Schedule ControlSchedule Control

Quality of Construction is Quality of Construction is Less Important than Cost & Less Important than Cost & Schedule ControlSchedule Control

Focus on Low Initial Cost Focus on Low Initial Cost Leads to High Maintenance Leads to High Maintenance & Life Cycle Costs& Life Cycle Costs

Architects DonArchitects Don’’t Like t Like DesignDesign--Build MethodBuild Method

Construction QualityConstruction Quality

6

7.43 7.5

01

2

3

4

5

6

7

8


(Higher Number = Easier Commissioning)


Commissioning - Ease of Start-Up


7

8.1 7.9

0123456789


(Higher Number = Fewer Callbacks)


Commissioning – Number of Callbacks


5

5.75.4

0

1

2

3

4

5

6


(Higher Number = Better Meets Expectations)


System Performance (Envelope, Roof, Structure & Foundations)