1. AWWA IMS Leadership Forum Project Delivery Systems
June 9, 2016
Phil Sudol
Alan Domonoske

2. Project Delivery Timeline
The Master Builder
Project Delivery Timeline
Programing
Programming
Design
Design
Construction
Construction
Commissioning
Commissioning
Closeout
Regulatory
Agencies
Maintenance
End
Users
Finance
Council
Building
Department
Operations
Stakeholders
Owner
Master Builder
Stone Mason
Owner
Concrete
Electrical
Mechanical
Structural Steel
I&C
Yard piping
HVAC
Landscape
Architect
Electrical
Engineer
Mechanical
Civil Engineer
Structural
Life Safety
Consultant
Geo Tech
Master Builder
Trade
Contractors
Design
Consultants
Stone Mason

3. Collaboration & Communication Core Team Communication
Project Team
Collaboration & Communication
Core Team Communication
Stakeholders
End
Users
Regulatory
Agencies
Council
Finance
Building
Department
Maintenance
Operations
Owner
Concrete
Geo Tech
Builder
Designer
Structural Steel
Life Safety
Consultant
Subcontractors
Subconsultants
I&C
Landscape
Architect
Electrical
Structural
Engineer
Mechanical
Electrical
Engineer
Mechanical
Engineer
Yard Piping
Civil
Engineer
HVAC

4. Integrate the Collaboration
Collaboration & Integration
Collaboration is where individuals of the project team regardless of discipline shares information directly with another individual of the project team working toward a common set of project outcomes.
Integration is where an individual of the project team regardless of discipline can share the collaborative information in a way that the entire project team can utilize the same information toward a common set of project outcomes.
Owner
Builder
Designer
End
Users
Regulatory
Agencies
Council
Finance
Building
Department
Maintenance
Operations
Owner
Builder
Designer
Concrete
Geo Tech
Structural Steel
Exceptional Project
Outcome
Integrate the Collaboration
Life Safety
Consultant
I&C
Landscape
Architect
Electrical
Structural
Engineer
Mechanical
Electrical
Engineer
Mechanical
Engineer
Yard Piping
Project Team
Civil
Engineer
HVAC

5. Delivering an Exceptional Project
Quality
Cost

6. Delivering an Exceptional Project
Quality
Cost
Exceptional Project

7. Spectrum of Delivery Methods
Integrated Project Delivery (IPD)
Design-Bid-Build
Design-Build (DB)
DBO
DBFO
DBFOO
Public-Private-Partnership (P3)
CMAR

8. Industry Trends Suggest Continued Use of IPD

9. Average Value of New Contracts

10. Prevalence of Industry Contracts

11. Reasons Owners Choose Design/Build

12. Delivery Methods Intergated Delivery Methods Basic Delivery
Construction Management at Risk (CMAR)
“Progressive” Design-Build (GMP)
Fixed-Price Design-Build (FP)
Design-Build- Operate/ Finance, etc.
Design-Bid-Build (DBB)

13. Design-Bid-Build (DBB) Method
Legend
Working Relationship
Contractual Relationship
Owner
Alternate Terminology
Competitive Bidding
Pricing Structure
Fixed Bid Price (LS)

14. Cost Model Timeline - DBB
Contractor
Owner Engineer 0%
30%
60%
90%
100%
Cost Estimate
Cost Update
Bid Estimate
Lump Sum Bid
Design Definition

15. Construction Manager at Risk (CMAR)
Alternate Terminology
CM/GC
GC/CM
Pricing Structure
Negotiated GMP
Owner
Legend
Working Relationship
Contractual Relationship

16. Cost Model Timeline – CMAR
Owner Engineer 0%
30%
60%
90%
100%
Initial Cost Estimate
Design Definition
GMP
Cost Model Development

17. Design/Build (D/B) Method
Owner
Legend
Working Relationship
Contractual Relationship
Alternate Terminology
Fixed Price
Performance-Based
Prescriptive-Based
Progressive
Pricing Structure
Fixed Bid Price (LS) or GMP

18. Fixed-Price Design-Build
Owner
PM/OA
Design/Builder
Design Development and Construction
Design
Definition
Execution
Procurement
FIXED-PRICE

19. Progressive Design-Build
Owner
PM/OA
Design/Builder
Design Development and Construction
Design
Definition
100%
Phase 1
Phase 2
PRICE

20. Qualifications Based Selection
Project Definition
Pre-design
Final Design
Construction
Start-up
ADVANTAGES
Reduces procurement time and cost
Most qualified Design-Builder is selected
High degree of Owner control
Owner defines/negotiates scope, quality, price and schedule

21. Qualifications Based Selection
Project Definition
Pre-design
Final Design
Construction
Start-up
DISADVANTAGES
Is counter to “public low bid” psyche
Could be “tough sell”
May need to engage a procurement advisor

22. Price Based Selection ADVANTAGES
Project Definition
Pre-design
Final Design
Construction
Start-up
ADVANTAGES
Price certainty at time of proposal submission
Detailed technical information provided

23. Price Based Selection DISADVANTAGES
Project Definition
Pre-design
Final Design
Construction
Start-up
DISADVANTAGES
Large time investment in procurement
Greater effort to review proposals
Owner input only during procurement development
Life-cycle cost considerations limited

24. Price Based Selection INNOVATION CONTROL Performance Based
Pre-design
Final Design
Performance Based
Prescriptive Based

25. Performance vs. Prescriptive
Performance Based
Prescriptive Based
ADVANTAGES
Maximum potential for cost savings through innovation
Maximum transfer of design-related performance risk
Relatively low costs to prepare RFP / Proposal
Substantial control over project design and O&M costs
Proposal selection can emphasize project design build costs
High level of project definition at time contract is signed
Performance Based
Prescriptive Based
INNOVATION
CONTROL
Pre-dsign
Final Design

26. Performance vs. Prescriptive
Performance Based
Prescriptive Based
DISADVANTAGES
May result in higher O&M costs
Proposal evaluation and selection is more complex
Potential for decreased participation due to higher preparation costs
Limited Owner input into design after proposal is accepted
Procurement duration is longer
RFP preparation is more costly due to high level of design
Design risk not clearly assumed by the Design-Builder
Performance Based
Prescriptive Based
INNOVATION
CONTROL
Pre-design
Final Design

27. Best Value Selection ADVANTAGES
Cost
Qualifications
Best Value Selection
ADVANTAGES
Price certainty at time of proposal submission (maybe)
Detailed technical/qualifications information provided
Depending upon cost component – collaboration can still exist

28. Best Value Selection DISADVANTAGES
Cost
Qualifications
Best Value Selection
DISADVANTAGES
Large time investment in procurement
Greater effort to review proposals
Life-cycle cost considerations limited

29. Overview of Selection Process
1. Identify Project Goals/Drivers
2. Determine Suitable Delivery Methods
3. Define Criteria and Assign Weighting
4. Evaluate
SELECT DELIVERY METHOD

30. Step 1: Identification of Project Package Drivers and Goals
Typical Questions to Ask to Understand Drivers/Goals
Does schedule need to be accelerated?
Allocation of design risk to contractor?
When is cost certainty required?
Qualifications-based selection of contractor?
Contractor involvement during design a benefit?
Project complexity and level of unknowns?
Low-bid required/desired?
Operations contract?
Financial return on investment potential (investor interest)?
Early equipment procurement required?
Would project benefit from contractor flexibility/innovation?

31. Step 2: Determine Suitable Delivery Methods
Suitable Delivery Methods to Evaluate
DBO
DBB
PD/B
D/B
Drivers
Schedule
Risk Allocation Control
Cost Certainty
Qualifications-Based Selection
Improved Efficiency
Collaborative Design Development
Minimization of Change Orders
Early Equipment Identification
Contractor Flexibility/Innovation

32. Step 3a: Define Evaluation Criteria
Delivery Method
Level of Control
Cost
Risk Allocation
Schedule

33. Step 3b: Obtain Stakeholder Input to Determine Relative Importance of Evaluation Criteria
Level of
Control %
Level of Control/Innovation 24
Schedule 26
Cost 30
Risk Allocation 20
TOTAL
100
Risk Allocation
Schedule
Cost

34. Step 4: Utilization of Evaluation Matrix to Select Preferred Delivery Approach
Weighting
DBB
CM/GC
D/B
PD/B
Factor
Rank
Score
LEVEL OF CONTROL 24 4 96 3 72
SCHEDULE 26 2 52
104 5
130
COST 30 90
120
RISK ALLOCATION 20 40 60 80
100
Total Points
278
380
402
420
1 = Least Favorable; 2 = Less Favorable; 3 = Neutral; 4 = Favorable; 5 = Most Favorable OR
Weighting
DBB
CM/GC
D/B
PD/B
Factor
Rank
Score
LEVEL OF CONTROL 24 --
O&M Considerations
4.8 5 25 4 20 2 10
Sustainability 3 15
Level of City Control
Project Quality
City Resources
SCHEDULE 26
COST 28
RISK ALLOCATION 22
Total Points
100
278
380
402
420
1 = Least Favorable; 2 = Less Favorable; 3 = Neutral; 4 = Favorable; 5 = Most Favorable

35. Metro Wastewater Reclamation District Northern Treatment Plant
$450M Total Program Costs
7-mile gravity interceptor (DBB)
Treatment plant site restoration (PDB)
24 mgd treatment plant (PDB)
Northern Treatment Plant Project
Largest PDB (W & WW) to-date; largest new WWTP currently in U.S.
“Greenfield” satellite facility (60 mgd build-out)
Intricate regulatory conditions; advanced treatment
Daily TIN < 10 mg/L, Total P < 0.1 mgd, high-level disinfection
Community amenities (e.g., visitor’s center, effluent wetlands/ponds, odor control)
Complex project with high public + political visibility
Carollo/Jacobs Serving as Owner’s Advisor (Years 2010 to 2016)

36. Benefits Realized by the District Using PDB Approach
Best Value Selection of Suppliers, Subcontractors
Competitive (market) pricing + other best value criteria
Early Cost Certainty with High-Level Design Control
Owner involvement in design progression
Interim milestones: 30%, 50%, 70%
Flexibility to make mid-stream adjustments to meet budget
Early bidding of suppliers, subs (50% design)
Negotiated Stipulated Price at 70%
Open Book Cost Model
Provided accounting of all costs
Ensured self-performance competitiveness via 3rd party validation (concrete, mechanical, yard piping, I&C)
Reduced risk and escalation contingencies

37. NTP Facilities Cost Trending History (Total Project Cost)
19% Reduction
$311,000,000