CON 2001 CVE 4070 Construction Engineering Disaster Recovery Prof. Ralph V. Locurcio, PE

Look ahead…

Disaster Recovery  Special form of construction  Public welfare is primary objective  Speed of response is essential Life safety Public services  Requires public & private cooperation  Special contracting rules apply

Disaster Scenarios…  Natural disasters Hurricane Floods – Tidal wave - Tsunami Earthquake Fire  Man-made disasters Building collapse Fire Terrorist attack Unknowns… train wreck, hazmat spill, etc.

Key Systems  Infrastructure is essential for modern life as we know it  Life safety a priority  Sanitary systems  Hospitals, schools, & social systems

Electrical systems…

Water systems…

Debris…

Key Facilities…

Roads & Bridges…

Ports & Harbors…

Fire damage…

Terrorist actions…

Unknowns…

Recovery Operations…  Speed is essential  Projects are spread out over wide area  Work sites not well defined  No plans & specs  Organization and prioritization are key  Scope limited to restore minimum operations  Quality judged on speed & quantity  Safety is paramount  Logistics may be very complicated  Contracts not well defined

Recovery Operations… Phase I: Emergency Operations Phase II: Reconstruction

Damage survey reports = design  Engineering analysis  Structural integrity  Mechanical, electrical & plumbing operations  Hard surfaces, paving & grounds  Architectural features  Construction take off  Cost & schedule estimating

Organization for recovery…

Report from Gulf Oil Spill…  Centralized control is essential Numerous gov’t agencies involved Numerous non-govt agencies involved  Projects must be organized  Projects must be prioritized  Budget control is essential  Speed is essential  Media coverage increases pressures

Project Prioritization…

Construction Goals Differ…  Life saving & emergency operations first Remove obstacles & hazards to life Enable key government functions Operate hospitals & schools  Restore utilities; elec, water, sewer Restore transportation; roads, bridges, rail Enable logistical functions; food, fuel, ice  Clear debris Restore normal operations Restore public safety & confidence

“Traditional” Contracts Contracting operations…  Letter contracts  Cost plus contracts  Unit price contracts  Indefinite quantity contracts  Design-build contracts  Design contracts  Fixed price contracts

Construction contracts…  Lump-sum  Unit-price (pre negociated)  Fixed-price with incentives  Cost-reimbursable  Time & materials (T&M)  Cost-plus-fixed-fee (CPFF)  Cost-plus-incentive fee  Guaranteed Maximum Price (GMP) Fixed Price Cost Plus

Fixed price contracts

Pre-negotiated unit-price…  Modified form of “fixed-price” contract.  Based on “measurable” construction units.  Unit prices for tasks are fixed.  Contract scope is the total list of tasks.  Specifications govern quality.  Unspecified tasks must be negotiated.  Used for pipelines, roadways, tunneling, etc.  Quantities purchased may be not be limited.  Called “Indefinite Quantity” or IDQ contracts  Used when total scope is unknown.

How do you measure?

Porta-potty method… 3 ft 10 ft 1 PP = 90 cu ft

May add incentives…  Profit is based on performance  Incentive formula must be clearly specified in contract documents  May have price ceiling  Requires a performance “rating”  Requires close supervision to ensure contractor hits performance target

Cost-reimbursable contracts…

Time & materials contracts…  Contractor is paid his actual costs for labor & materials plus a 15% + mark-up for overhead  Contract documents define eligible costs such as labor categories, travel, rentals, permits, fees, other expenses…  Contractor must supply invoices for all expenses and certified time sheets for labor  Audit of costs & invoices is essential  Profit is specified 10% + mark-up of costs +

Time & materials contracts…  Used when scope is completely unknown and there is no time to design  Owner assumes all of the risk  Easy to write; difficult to administer  End price is unknown  Sometimes includes “upset” amount  Contractor can make substantial profit

Example of T&M contract… Materials cost$40,000 (invoices) Labor cost $60,000 (time sheets) Sub-total $100,000 Overhead 15% $15,000 (in contract) Sub-total $115,000 Profit/Fee 10% $11,500 (in contract) Grand total $126,500

Cost-plus-fixed-fee…  Actual costs paid for labor & materials  Overhead rate generally fixed  Fee is a “fixed” dollar amount that is specified in contract documents  Generally used when scope of work is known but no time to design  Contractor shares some risk  Provides owner some control

Cost-plus-incentive-fee…  Similar to cost-plus-fixed-fee  Contractor is paid an additional fee or bonus if certain specified conditions are met, such as time, cost or satisfaction of user  No bonus if conditions not met  Incentive minimizes risk to owner  Intent is to “motivate” the contractor

Project controls…  Contracts are limited  Increased supervision  Increased accounting  Decisions & finances will be audited

Contract inspection & supervision…  Verify quantity & time of operations Manpower & equipment use Material quality & quantity  Engineering sufficiency of work  Quality of work  Deviations from damage survey  Negotiate claims for additional work  Certification for occupancy

Roles for civil engineers…  Public works… public safety & critical facility operations Utilities operation & safety: water, elec, sewer, trash Public & critical infrastructure buildings Transportation: roads, hiways, bridges, rail Landfill & environmental operations Contract organization, operations & control Public liaison & information  Damage assessment – design firms  Construction operations – construction firms Estimators & schedulers Equipment & trades operation & direction Material & construction supplies  Records, documentation & funds control

Skills you will need…  Engineering analysis  Construction take off & estimating  Work scheduling  Ordering & receiving  Negotiating  Common sense  Supervision & leadership

See you Thursday…