Lessons Learned: CM at Risk & Design Build

CM at Risk UC San Diego’s most used project delivery method is CM at Risk (CMAR). We have and continue to have great success with CMAR. Some examples follow…

CM at Risk – First CMAR project Eleanor Roosevelt Housing and Dining

Considerations for prequalification should include: Company’s experience with comparable projects (comparable projects defined by owner). Company’s experience with CM at Risk. (i.e. providing preconstruction and construction services as a requirement of the contract). Individual team member’s experience with comparable projects and CM at Risk.

CM at Risk CallT2

Bidding Preconstruction and Construction Services At UC San Diego we establish the amount we will pay (lump sum) for the specified preconstruction services.

CM at Risk Skaggs School of Pharmacology & Pharmaceutical Sciences

We Recommend that Bids for Construction Services Include: OH&P (fee), CM/Contractor’s General Conditions and CM/Contractor’s General Requirements. We recommend that the CM/Contractor’s bid NOT include General requirements for the project. These costs are to be included in sub trade bids or bid separately. Specify a generous minimum for field staff. Don’t be cheap! On a large project we require a Project Executive, a Sr. Project Manager, a Project Manager, three Project Engineers, a General Superintendent and two Superintendents (one structural and one for rough-in and finishes). The CM/Contractor’s bid shall include the costs of subcontractor’s payment & performance Bonds. Bonding subcontractors is the CM/Contractor’s option.

CM at RISK Sulpizio Cardiovascular Center

CM at Risk Cautions Look out for “bundling” of bid packages (Hard bidders do it less often). Beware of “over” prequalification – Limited bid pool increases price. Make sure CM/Contractor gets at least 3 bids per bid package. Be aware that CM at Risk probably costs 1-2% more than hard bid on bid day, although the final costs may be about the same. Starting Construction Phase before entire job designed and bid.

CM at Risk Health Sciences Biomedical Research Facility 2

Design Assist (DA) and Design Build (DB) subcontracting with CM at Risk Cautions CM/Contractor must be sophisticated and experienced with DA & DB subcontracting on public works. It is expensive! There is the cost of CM/Contractor’s preparation of DA & DB bid packages and the costs of the subcontractor’s work during the preconstruction phase. It is Expensive! Have a clear understanding of the costs and benefits/deliverables. In Design Assist the designer remains the Designer of Record and the DA subcontractors are the peer reviewers. In Design Build the designer becomes the peer reviewer and the subcontractor becomes the Designer of Record.

CM at Risk Jacobs Medical Center

Design Build First Design Build Housing Project - Miramar One Apartments

Advantages of Design Build Design Builder provides preconstruction services (like CM at Risk). Design Builder prequalifies subcontractors (like CM at Risk). Cost effective – the award is based on lowest cost per evaluation point. Overall quicker delivery – phasing / overlap of Design & Construction. Generally good relationships between owner, designer & builder.

Design Build The Villages at Torrey Pines – Apartments

Design Build DISADVANTAGES Design NOT completed when the project is bid. Exact project components loosely defined. May be more owner work involved than in other delivery methods. Changes cause havoc.

Design Build Rita Atkinson Residences – Graduate Apartments

Design Build Cautions Must identify owner requirements that are above code (Code +). The program should be simple, i.e. Housing, Parking Garages (Design Build Proponents disagree!). A single, sophisticated client is preferred over multiple clients advocating different needs. Owner needs experienced staff and the time to review DB Proposals – becomes contract document. Owner needs experienced staff with the time to review design submittals quickly. Owner must realize that DB is just as much or more work than other delivery methods.

Design Build Ecoflats – Apartments

Comparison between CM at Risk and Design Build CM at Risk Design Build Prequalification of GC & Subs Yes Yes Cost Effective Yes Yes Effective Scheduling Yes Yes/Better Good Collaboration Yes Yes Complete Design at Bid Yes/Maybe No Multiple Clients Yes No Effect of Changes Increased No Yes

Lessons Learned using CM at Risk & Design Build (Questions?)