PHASE 2 CONSTRUCTION PHASE I DESIGN SERVICES ISSUE DESIGN-BUILD CONTRACTS DIFFERENCES: SUBCONTRACTOR LISTING (POST AWARD) VALUE ENGINEERING (CHANGE ORDER #1) MULTI-PHASE CONTRACT PLAN APPROVAL OCCURS (POST AWARD) ELIMINATES CHANGE ORDERS FOR ERRORS & OMISSIONS LEGAL

SOME RECENT EXAMPLES at San Diego State University

TRADITIONAL DESIGN-BID-BUILD Grade: D Science Lab Building Cost: $36 Million Size: 106,000 Square Feet Completion Date: June 2001 Issues: Change Orders = 8% 2 Years Late Claims High Lawsuits & Settlement w/Sub-Contractors

TRADITIONAL DESIGN-BID-BUILD C/G RENOVATION GRADE: A Completed: 6/03 Cost: $19.2 M Issues: Under Budget Change Orders 5% Scheduling Multiple Contracts

Ninety 1- & 2-BR Apartments Completed: 1986 Cost: $5.3 Million Grade: C- Issues: Low Quality Control Too Many Options Villa Alvarado Apartments “PURE” DESIGN-BUILD

2,100 Parking Spaces on 8 Stories Completed: 1994 Cost: $12 M Parking Structure 4 Grade: B+ Issues: Foundation Claims

“PURE” DESIGN-BUILD Parking Structure 5 / Aztrack 1,460 Parking Spaces -- 2 Stories Sports Deck - Soccer and Track & Field Completion: 2000 Cost: $19.5 M Grade: A Issues: Owner Project Management Team

RISK w/GMP East Commons Renovation Grade: A Issues: Scheduling/Operations

CM/GC Original Gateway Building Grade: B- 150,000 SF Mixed Use Office Completed: 1990 Cost: $16.5 M Issues: Quality Sacrificed

CM/GC Tony Gwynn Baseball Stadium Completed: 1998 Cost: $5.5 M Grade: A Issues: None

CM/GC Grade: B 127,000 SF Completed: 2001 Cost: $20.5 M Aztec Athletics Center Issues: Changing Program GMP Not Achieved/Redesign

Cogeneration Facility 14 Megawatt Generation 25,000 Lbs/Hour High Pressure Steam Completed: 12/02 Cost: $17.5 M “PERFORMANCE” DESIGN-BUILD Grade: A Issues: Complicated Criteria for Evaluation & Performance