Design–Build Contracts G. Hardy Acree Director of Airports Sacramento County Airport System Advantages of of During Turbulent Times

 Collaborative Solutions/Tools for Controlling Cost  Contract Pricing Based Upon 100% Documents  GMP Establishes Target Budget for Project Team  Deferred Encumbrance  Owner Takes Advantage of Material Pricing  Sufficient Competition to Qualify for FAA Funding  Shared Risk Agenda

 Dewatering Volumes Exceeded Permit   Teams Worked Together to Find Solutions With Minimal Impact to Cost and Schedule  Tug Tunnel Phasing & Cost   Phasing Modification Was Agreed Upon  Design Revision Saved $2,000,  Delete Hotel From Landside GMP Collaborative Solutions/Tools for Controlling Cost

 Opportunity to Incorporate VE Items Prior to Final Price Negotiations Negotiations  Contractor had Incentive to Identify VE Items   DBC Accrues 25% of Savings  Encumbrance Occurs when Packages are Authorized  Budget Tracking by Work Package  VE on Airfield Pavement Based on Field Information   Changed from Base Assumption Based on Field Investigation  Results:  Results: $5,000, Reduction from BAFO (from GMP) Contract Pricing 30 – 100% Documents

u GMP Became the Target Budget u Owner Contingency Held in Reserve u Contractor Had Incentive to Stay Within GMP u Design Team Used GMP to Make Decisions u The GMP Drove Value Engineering Decisions GMP Establishes Target Budget

u Airside Deferred Encumbrance Schedule u Landside Deferred Encumbrance Schedule u Postponed Bond Issuance Until Market Improves Deferred Encumbrance Introduction

LandsideDeferredEncumbranceSchedule

AirsideDeferredEncumbranceSchedule

u Drop in Price of Stainless Steel   20% Cost Reduction for Landside Roof Material u Drop in Price of Structural Steel   10% Cost Reduction for Landside Structural Steel u Cost Reduction in Mechanical & Electrical Equipment   Landside & Airside Savings Exceed $1,000, Owner Takes Advantage of Material Prices

u Pre-Qualification of Prime Contractor u Pre-Qualification of Sub-Contractor Associates u Submittal of Initial Bid Included Pre-Qualified Prime & Subs u Scoping to Clarify Scope u Best and Final Offer Price Proposal u Final Selection Based Upon Qualification & Price Sufficient Competition Qualifies for FAA Funding Sufficient Competition Qualifies for FAA Funding Overcoming FAA’s Resistance to Design-Build

Contractor Submitted GMP Based Upon 30% Documents u Contractor Submitted GMP Based Upon 30% Documents u Owner/Contractor Held Scoping Sessions to Clarify Scope u Owner Negotiated a Contingency Amount in the DBC GMP  To Protect the Contractor from Cost Increases  To Cover Items Missed During GMP Preparation  To Cover Design Development Use of Escrow Bid Documents to Confirm Pricing Assumption u Use of Escrow Bid Documents to Confirm Pricing Assumption (Hotel is an example of where the County Benefits) Contractor Included Qualification in Contract Agreement u Contractor Included Qualification in Contract Agreement (Allowed DBC to do this due to lack of clarity – dewatering is an example) Shared Risk

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Designer & Contractor (2 separate contracts) Design/Builder (1 combined contract) Low Bid Total Construction Cost is sole criteria for final selection Best Value Bid Total Construction Cost and other criteria are weighted factors in the final selection Qualifications Based Selection Total Construction Costs are not a factor in the final selection criteria # of CONTRACTS SELECTION TYPES Delivery Method Options – Stop 2 (with Selection Types)