UTILIZING CONSTRUCTION MANAGER AT RISK IN GREENSBORO, NORTH CAROLINA

INTRODUCTION Team Team  City of Greensboro  HDR Constructors  Garney Capital Improvement Needs Capital Improvement Needs  Townsend WTP  TZO WRF CMAR vs. Alternate Delivery Methods CMAR vs. Alternate Delivery Methods

PROJECT BACKGROUND Construction Manager at Risk (CMAR) in Greensboro Construction Manager at Risk (CMAR) in Greensboro  Owner Objectives / Goals  RFQ Process  CM Selection  Design and Partnering  Designer and CM  Pre-Construction Timeline

DESIGN-BID-BUILD DESIGN-BID-BUILD  Traditional Baseline for Project Delivery  Proven Procurement Solution DIFFERING DELIVERY METHODS PRELIMINARYDESIGN FINAL DESIGN BIDCONSTRUCTIONPROCESS

Design-Bid-Build ADVANTAGES Design-Bid-Build ADVANTAGES  Competitively Bid  Separate Contracts  Self-Performance Capabilities  Time-Tested Process / Used in All States  Maximizes Owner Input DIFFERING DELIVERY METHODS

Design-Bid-Build DISADVANTAGES Design-Bid-Build DISADVANTAGES  Limited Collaboration / Teamwork  Eliminates Qualifications-Based Selection  No Contractual Relationship  Adversarial Approach  Low Bid  Value Engineering  Design DIFFERING DELIVERY METHODS

DESIGN-BUILD DESIGN-BUILD  Design and Construction Fixed Price  Based on Concept Design and/or Description from Procurement Documents DIFFERING DELIVERY METHODS CONSTRUCTION PROCESS

Design-Build ADVANTAGES Design-Build ADVANTAGES  Team Qualifications-Based Selection  Accelerated Schedule  Public Acceptance for Lump-Sum Contract  Self-Performing Contractor Controls Schedule  Known Performance Criteria  Final GMP DIFFERING DELIVERY METHODS

Design-Build DISADVANTAGES Design-Build DISADVANTAGES  Longer Procurement Process  Eliminates or Reduces Participation in Procurement Process  Inefficient Use of Municipal Funds and Staff Time  Bidding Process DIFFERING DELIVERY METHODS

CMAR CMAR  Qualifications-Based Selection  Contractor Engaged Early in Design Phase  Two-Contract Relationship DIFFERING DELIVERY METHODS CONSTRUCTABILITY REVIEW CONSTRUCTION PROCESS

CMAR ADVANTAGES CMAR ADVANTAGES  Owner Control of Project Goals  Provides for Value Engineering (VE) and Constructability Reviews  Contractor-Led Estimates  Reduces Overall Risk  Schedule Acceleration  Competitive Selection DIFFERING DELIVERY METHODS

CMAR DISADVANTAGES CMAR DISADVANTAGES  Engineer’s Estimate for Initial Project Costs  Potential Cost Increase with VE and Constructability Review  Preconstruction Services Cost  Double-Bonding  Separate Contracts  Increased Design Duration DIFFERING DELIVERY METHODS

TZO WATER RECLAMATION FACILITY Retrofitting Existing Anthracite Media Filters with new Aqua-Aerobic Systems Diamond Cloth Filter Equipment Retrofitting Existing Anthracite Media Filters with new Aqua-Aerobic Systems Diamond Cloth Filter Equipment New Chlorine Contact Tank New Chlorine Contact Tank Chemical System Upgrades Chemical System Upgrades Site-Wide Stormwater Improvements Site-Wide Stormwater Improvements Electrical Improvements Electrical Improvements

PRECONSTRUCTION AT TZO Estimates at 90% Document Phase Estimates at 90% Document Phase Development of CPM Schedule Development of CPM Schedule Executed Mentor / Protégé Program with Local MBE, SRS Executed Mentor / Protégé Program with Local MBE, SRS M/WBE Work Packages M/WBE Work Packages

TZO CHALLENGES AND BENEFITS Challenges & Benefits Challenges & Benefits Dividing Competitive Work Packages Dividing Competitive Work Packages Flexibility with NCDEQ Flexibility with NCDEQ  Filter Construction Sequencing - Eliminating Option to Bypass Filters Increasing Minority Participation Increasing Minority Participation Constructability / Cost Review at 90% Constructability / Cost Review at 90%

TZO SCHEDULE Work Packages Work Packages Constraints of Existing Plant Operations Constraints of Existing Plant Operations  Minimal Shutdowns / Uninterrupted Access Effluent Filter Modifications Effluent Filter Modifications  One Bank of Filters Off-Line Per Time

TOWNSEND WATER TREATMENT PLANT Lime / PAC Facility Lime / PAC Facility Flocculation & Sedimentation Basins Flocculation & Sedimentation Basins Filter Upgrades Filter Upgrades Backwash Process Upgrades Backwash Process Upgrades MAY 16 – DEC 17 JAN 15 – DEC 15 PRECONSTRUCTION CONSTRUCTION

TOWNSEND PRECON METHODOLOGY Cost Models Cost Models  60% Documents  VE Early Project Schedule Development Early Project Schedule Development  Input from O&M Staff, Engineer and Subcontractors  Determines General Conditions Duration Subcontracting Packages Subcontracting Packages  Facilitate Area Market  Clear Scope Delineation

TOWNSEND CHALLENGES/BENEFITS - GMP Open Book Environment Open Book Environment Collaborative Preconstruction Workshops Collaborative Preconstruction Workshops Proactive Project Execution Planning - Plant Production Restrictions Proactive Project Execution Planning - Plant Production Restrictions Constructability and Value Analysis Constructability and Value Analysis Procurement (Buy-Out) Plan Procurement (Buy-Out) Plan Start-Up and Commissioning Plan Start-Up and Commissioning Plan

TOWNSEND CHALLENGES/BENEFITS – M/WBE Aspirational Goals Aspirational Goals Commitment to M/WBE Program Commitment to M/WBE Program Outreach and Communication with Interested Individuals Outreach and Communication with Interested Individuals Provide Guidance during Bidding, Contracting and Construction Phases Provide Guidance during Bidding, Contracting and Construction Phases Ensure Parties Follow City’s Guidelines for Implementation Ensure Parties Follow City’s Guidelines for Implementation

CMAR AT TOWNSEND WTP Qualifications-Based Selection Qualifications-Based Selection Better Control of Construction Better Control of Construction Implementation of M/WBE Program Implementation of M/WBE Program Collaborative and Team-Oriented Project Delivery Collaborative and Team-Oriented Project Delivery Less Adversarial Construction Environment Less Adversarial Construction Environment

TOWNSEND – ENGAGING THE CMAR EARLY 60% Design Documents 60% Design Documents Understand Project Budget Understand Project Budget Ability to Value Engineer Project Ability to Value Engineer Project Early Development of CPM Early Development of CPM

TOWNSEND – CHALLENGES/BENEFITS - MOPO Maintenance of Plant Operations (MOPO) Maintenance of Plant Operations (MOPO) Ability to Redesign Ability to Redesign Identify Schedule Constraints Identify Schedule Constraints Minimize Timeframe for Outages Minimize Timeframe for Outages Ability to Understand Construction Sequencing Ability to Understand Construction Sequencing

TOWNSEND PROJECT SCHEDULE Early Development of CPM Schedule Early Development of CPM Schedule Identified Sequencing Identified Sequencing Incorporated Peak Times Incorporated Peak Times Sequenced MOPOs Sequenced MOPOs

OWNER CHALLENGES - LEGAL Contract Vehicle Contract Vehicle  State Standard Contract vs. CMAA vs. AIA Prequalification Process Prequalification Process  State Statute Requirements  Criteria to Prequalify  Target Audience for the Process

OWNER CHALLENGES – M/WBE Disparity Study Disparity Study  Hispanic Participation - Goal Achievement Setting of Goals Setting of Goals  GMP Estimate or Trade Packages Bid Responsiveness Bid Responsiveness  Prequalification vs. Bids HUB Understanding of Formal Bid Process HUB Understanding of Formal Bid Process

OWNER CHALLENGES – M/WBE (CONT.) Mentor – Protégé Mentor – Protégé  City Procedure  Goal Achievement New Process for Evaluating Good Faith New Process for Evaluating Good Faith  CM Level and Sub-Tier Level Mandatory Prequalification Mandatory Prequalification  Participation Responsiveness  Education

OWNER CHALLENGES - DESIGN Design Completion Level Design Completion Level  60% Townsend vs. 90% TZO Self-Performance Self-Performance  State Statute Team Cohesiveness Team Cohesiveness  Experience  Receptiveness to Feedback Design Review Process Design Review Process  Constructability and VE

GMP Finalization / Sub-Contract Execution GMP Finalization / Sub-Contract Execution  Budgeting Value Engineering Construction Phase Construction Phase  NTP and Duration NEXT STEPS

M/WBE Understanding M/WBE Understanding Budgeting / Value Engineering Budgeting / Value Engineering Prequalification Process Prequalification Process Staff Understanding of CMAR Process Staff Understanding of CMAR Process  Educate Key Departments / Staff  Develop Procedures to Support Delivery Method KEY TAKEAWAYS

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