by Spokes On A Wheel I-35/Hwy 183 – Interchange Upgrade

Agenda Introduction Objectives Scope Contracts Financing Schedule Control Labor Possible Problems Questions and Comments

Before and After Project Proposal

Project Objective Setting OPERABILITY Improve traffic flow Reduce travel time Safety of road users COST Min. the cost of the project SAFETY Max. protection for the public & the workers SCHEDULE Meet or exceed milestones Finish complete project on time I-35 / Hwy 183 Interchange Upgrade DURABILITY Life span Low maintenance Maintainability PUBLIC RELATIONS Community support/involvement Aesthetics Min. environ. impact AVOID CLAIMS/ CHANGE ORDERS

Performance Index

Scope of Work FUNCTION Decrease travel time from 4 minutes to 45 seconds Decrease reportable accident rate ~ 50% SIZE 5 new overpasses Lane width – 15 ’ Shoulders – 6 ’ (expandability) LIFE SPAN Designed for 30 years COMMUNITY IMPACT Maintain traffic flow I-35 & 183 Interchange Project COST $120 million AESTHETICS Match existing structures and landscape ( “ fit in ” ) CAPACITY Handle ~ 40,000 cars/day SCHEDULE 3 years (including design and construction)

Feasibility & Financial Studies Financing From federal funding & gasoline tax proceeds Gasoline tax $0.40/gal Investment period: 33 years Cost Initial cost ~ $120 million Operation & periodic maintenance: $150k/yr Benefits Time saving : $78,000/day Safety saving : $750,000 / year I-35 & 183 Interchange Project

Cash Flow Diagram y0 y0 y5y5 y 10 y 15 y 20 y 25 y 30 Discount rate: 12% Benefit ~ $29.22 million / year Present value ~ $235.4 million Discount rate: 12% Outgo ~ $150k / year Present value ~ $1.21million Initial cost $120 million in three years Cost benefit ratio = Gross Benefit/Cost CBR = 1.94 Present value of project cost ~ $121.21million Present value of revenue ~ $235.4 million

Contracts Owner--Designer and Owner--QA/QC = negotiated Owner--Contractor = competitively bid Contractor--Subcontractors and Owner--Vendors = negotiated Owner & Contractor should also have contracts with Bonding Agencies (Performance Bonds), Insurance Co., and Legal Firms I-35 & 183 Interchange Project

Unit-Price Contract Allows some flexibility for variations in quantity of work Payments made on precise field measurements Price renegotiation if actual vs. estimated deviation of +/- 10% “ Unbalancing the bid ” Item NumberQuantityUnitDescription Unit Price Total Amount CYReg. Excav , LBReinf. Steel1.005, ACRESReg. Seed , HRSFlaggers10.005, I-35 & 183 Interchange Project

Owner - Contractor Contract awarded to lowest responsible bidder (Competitively Bid) - Technical Competence - Bonding Capacity - Previous Contracts - Work Underway - Claims History - Financial Position  Competitively Bid Contracts used for most public work  Based on complete plans and specifications Calendar Day – 730 from start date to traffic Incentives – Job finishes early = $500,000 bonus Penalty – Job finishes late = $10,000/day Disadvantage – Low Bidding I-35 & 183 Interchange Project

LEGEND: Task Duration Reviews & Approval Public Meetings/Hearings Completion Planning Schedule

Construction Schedule

Project Control SAFETY Safety Manager Investigate Accidents Alcohol and Drug Use Control COST Weekly and Monthly Reports Meetings (Owner, Contractor, and QA/QC Firm) Tool: CWB I-35 & 183 Interchange Project TRAFFIC Maintain Traffic at all Times Lane Shutdown QUALITY Material Testing Following Design, Specs QA/QC SCHEDULE Detailed Schedule (CPM) Tool: Primavera Daily Diaries

Labor Source I-35 & 183 Interchange Project SNLabor TypeNo.Sourcewhen Needed ActivityDuration 1Carpenters10Open ShopShuttering & Formwork sub structure and super structureM Concrete finishers20Open ShopPile cap, footing, Piers, Decks and other Concrete worksM Rod busters17Open ShopPile cap, footing, Piers, Decks and other RC worksM Electrical5UnionDecommissioning of Traffic Light, setting temporary controlM13, lights and Installing of new traffic Control lightsM37 5Equipment Operators8UnionAll through the Construction periodM Crane Operators2Union Decommissioning of existing structures & construction periodM Surveying3UnionSurveying through bridge deck constructionM Laborers10Open ShopThrough construction periodM Designers (Back up & site modifications)2Open ShopPeak construction periodM Asphalt workers (Pavers, operators and all)7Open ShopConstruction of Detour tracks and Final Road PavementM12, M36 11Flaggers3Open ShopThrough construction periodM Superintendent1Open ShopThrough construction periodM Plumbing and pipe fitters2Open ShopRequired to set drain pipes before casting bridge deckM Landscapers6Open ShopLandscaping ActivitiesM37 15Striping crew5Open ShopLane Markings, Traffic Line painting, Road edge marking M36-37 Total101

% Cumulative Labor utilization Estimated Labor Cumulative Labor 60 0

POSSIBLE PROBLEMS I-35 & 183 Interchange Project

ACTIONS TO PREVENT OR MITIGATE PROBLEMS Rain – Unusual Amount / Timing Implement a 4 days-10 hours W.D. Build effective drainage systems Overtime and double shifts Alcohol / Drug Abuse Background check Random testing Guidance/Education meetings Firing or Rehabilitation therapies Traffic Accidents (Interfering Const.) Maximize the distance between traffic flow and workers Permanent barriers Truck mounted attenuators I-35 & 183 Interchange Project Delay in Material Delivery More materials on site Larger lag time between delivery & use of mat. Identify alternative source Contractor Bankruptcy Bonding Pre-qualifications Specify time for new contractor

Questions and Comments