4 th ANNUAL JOINT CSU/UC PSSOA CONFERENCE March 25-26, 2003 “Emerging Construction Methodologies in CSU – What Public Works Contract Specialists Should Know” Presented by: W. Anthony Fulton, Director Facilities Planning & Management San Diego State University

Emergence of New Methodologies for Capital Outlay Historical Background Master BuilderTrade Workers 1960’sEmergence of “fast track” 1980’sConstruction Management linked to GMP Trend: Less staff and capability in house “outsource” Minimize Risk & Claims CSU Experience: Decentralization of Contract Management Lump Sum Funding – Streamlined Projects

Methodologies Available: Design-Bid-Build (Low Bid) Design-Build “Pure” Design-Build “Bridging” Design-Build “Performance” Design Build Construction Manager at Risk with Guaranteed Maximum Price (CM at Risk) CM/GC Multiple Prime

Authority: The California State University has authority to procure it’s major capital outlay projects using Design-Build or CM at Risk method of Procurement under Public Code Section which states: “When, in the opinion of the trustees, the best interests of the California State University dictate, the trustees may enter into an agreement with a contractor to provide all significant portions of the design services and construction of a project under this chapter. The contractor shall design the project pursuant to the scope of services set forth in the request for proposals, build the project, and present the completed project to the trustees for their approval and acceptance. Work under this section shall be carried out by a contractor chosen by a competitive bidding process that employs selection criteria in addition to cost. Any design work performed pursuant to this section shall be prepared and signed by an architect certified pursuant to Chapter 3 (commencing with Section 5500) of Division 3 of the Business and Professions Code.”

CAMPUS A/E GENERAL CONTRACTOR SUB-CONTRACTOR TRADITIONAL DESIGN-BID-BUILD CM/PM PLANNINGBUDGETDESIGNCONSTRUCTIONEQUIPOCCUPYBID AGENT Vendor

ADVANTAGES: “BEST PRICE:” POTENTIAL DELIVERY SCHEDULE CLEARLY STATED IN CONTRACT 100% DESIGN COMPLETED PRIOR TO BID DISADVANTAGES: COST NOT FINAL UNTIL BID COST OVERRUNS MAY REQUIRE REDO AND REDESIGN BIDDERS GET “LOW” BY OMITTING WORK NOT SHOWN CHANGE ORDER RATE HIGH – 5% PLUS AGENTS (A/E, CM, & OTHERS) TAKE MINIMAL RESPONSIBILITY SCHEDULE CHANGES DIFFICULT TO IMPLEMENT

CAMPUS A/E SUB-CONTRACTOR CONSTRUCTION RISK CM/PM PLANNINGBUDGETDESIGN CONSTRUCTIONEQUIPOCCUPY AGENT RISK AGENT/VENDOR GMP CM

ADVANTAGES: RISK SELECTED ON QUALIFICATIONS, NOT PRICE RISK RESPONSIBLE FOR WORK SCHEDULE, MEANS & METHODS COST “GUARANTEED.” EARLY SAVINGS POSSIBLE RISK ACTS AS OWNER’S PARTNER FOR A FEE CONSTRUCTION CAN START EARLY DISADVANTAGES: COSTS MAY INCREASE DUE TO “DETAILS” NOT IN GMP CM MAY “EXPAND” BUDGET TO CREATE FUTURE SAVINGS SCHEDULE CHANGES DURING CONSTRUCITON DIFFICULT TO IMPLEMENT

CAMPUS A/E DESIGN - BUILDER SUB-CONTRACTOR DESIGN-BUILD CM/PM PLANNINGBUDGETDESIGNCONSTRUCTIONEQUIPOCCUPYRFP AGENT BUILDERS A/E AGENT/VENDOR

ADVANTAGES: EARLY COST GUARANTEED PRICE TENDS TO MATCH QUALITY PERFORMANCE BASED SELECTIONS POSSIBLE CONSTRUCTION STARTS VERY EARLY D-B MAY INCLUDE COMPLETE UPFRONT SERVICES “TURNKEY” MOST BENEFICIAL SCHEDULE ELIMINATES ERRORS & OMISSIONS DISADVANTAGES: FAIR PRICE COMPETITION DIFFICULT TO VERIFY COST IMPACT OF POINT SCALE MAY BE DIFFICULT TO EVALUATE OVER EMPHASIS ON PRICE MAY COMPROMISE QUALITY “BRIDGING” DOCUMENTS MAY EXTEND SCHEDULE STAFF/USERS NEED TO MAKE “QUICK” DECISIONS VAGUE INTERPRETATIONS OF RFP MAY OCCUR

WHERE DOES PROCUREMENT FIT IN EACH PROCESS?

BUDGETING PRE-PLANNING PHASE PRE-PROJECT CONTRACTS: FEASIBILITY CEQA OTHER PROJECT SCOPE BUDGET AND SCHEDULE DEFINED PROCUREMENT PROCESSES SERVICE AGREEMENT FINANCIAL PLAN PROJECT FUNDED BY STATE OR NON-STATE SOURCES NON-STATE ONLY CPDC – STATE T & F – NON-STATE LEGAL

ALLOCATION ORDER ISSUED ACCOUNT ESTAB. P.O. #’s ISSUED CONTRACT # ISSUED METHODOLOGY SELECTED BEGIN PROJECT TRADITIONAL DESIGN-BID-BUILD RISK or CM/GC w/GMP DESIGN-BUILD

DESIGN PHASE [ Traditional & Design-Build] INTERVIEW & SELECT ARCHITECT PRESCREEN EXEC. ARCHITECT FROM CSU LIST Keep file on Selection process Send Appointment letter Address Protest Select Consultant

PREPARE SCOPE OF WORK & A/E AGREEMENT PROCUREMENT PROCESSES AGREEMENT LEGAL CSU FEE CURVE CSU DB AGREE- MENT CSU STANDARD A/E AGREE- MENT OR

PREPARE SCOPE OF WORK & SERVICE AGREEMENT PROCUREMENT PROCESSES AGREEMENT LEGAL SELECT CONSULTANT ISSUE RFP FOR OTHER SERVICES: IF NO LOCAL LIST ADVERTISE CIVIL MATERIALS TESTING SOILS PLAN CHECK ADA COMPLIANCE SEISMIC PEER REVIEW CONSTRUCTABILITY REVIEW BID SET REPRODUCTION IF BLANKET CONTRACTS EXIST PURCHASE ORDER

DESIGN PHASE [For Risk] REVIEW PROPOSALS & SELECT BUILDER ISSUE RFP FOR RISK BUILDER AT SCHEMATIC DESIGN PHASE LEGAL ISSUE SERVICE ORDER FOR PRECONSTRUCTION SERVICES ADVERTISE TO ALL

BID PHASE ( Traditional) AWARD CONTRACT TO LOW BIDDER PROCUREMENT PROCESSES AGREEMENT LEGAL OPEN BIDS PREPARE & ISSUE BID DOCUMENTS ADVERTISE TO ALL CSU PREQUALIFIES CONTRACTORS

BID PHASE RISK) BID PACKAGES CM AGREES TO GMP PROCUREMENT PROCESSES GMP AGREEMENT CM BIDS MULTIPLE PACKAGES LEGAL CM AWARDS SUB-CONTRACT CM AWARDS SUB-CONTRACT CM AWARDS SUB-CONTRACT ADV CM + + = GMP DIFFERENCES: CM CONTROLS BIDS/OWNER OBSERVES CM PARTNERS W/OWNER FOR A FEE

BID PHASE (Design-Build Selection Phase) ISSUE RFP TO CONTRACTORS SELECTED PROCUREMENT ISSUES PROPOSAL NUMBERS TO CONTRACTORS SELECT CONTRACTORS ISSUE RFQ FOR CONTRACTOR PREQUAL ADVERTISE TO ALL KEEP FILE ON SELECTION PROCESS SEND SELECTION LETTER ADDRESS PROTEST LIMITED LISTED PERFORMANCE REQUIREMENT

RECEIVE COST PROPOSALS COST POINTS QUALITY SELECTION EVALUATE TECHNICAL PROPOSALS ASSIGN POINTS RECEIVE TECHNICAL PROPOSALS = KEEP FILE ON SELECTION PROCESS QUALITYENHANCEMENT PERFORMANCE CRITERIA