Airport Owner’s Guide Airport Owner’s Guide totoProject Delivery SystemsProject Delivery Systems

Prepared by:Prepared by:

The Joint Committee of ACI-NA, The Joint Committee of ACI-NA, ACC and AGCACC and AGC

www.acconline.orgwww.acconline.org

Four Stops to a Project Delivery Four Stops to a Project Delivery SystemSystem

Can you use an alternate method?Can you use an alternate method?

Are we talking the same language?Are we talking the same language?Defining PDS and their attributesDefining PDS and their attributes

How to select the right PDSHow to select the right PDS

Implementing the selected PDSImplementing the selected PDS

Ability to UseAbility to Use

State’s have been making changes to State’s have been making changes to local laws and codes to allow APDSlocal laws and codes to allow APDS

FAA AC 150/5100-14D provides for FAA AC 150/5100-14D provides for APDSAPDS

Defining PDS and their AttributesDefining PDS and their Attributes

– Comparing PDSComparing PDS

– PDS OverviewPDS Overview

Selecting the Right PDSSelecting the Right PDS

1.1. Factors for ConsiderationFactors for Consideration

2.2. Suggestions for SelectionSuggestions for Selection

3.3. Additional Reference MaterialAdditional Reference Material

Implementing the selected PDSImplementing the selected PDS

1.1. Contract Types and LanguageContract Types and Language

2.2. Management ExecutionManagement Execution

What are the Options?What are the Options?

Design Bid BuildDesign Bid Build Single Prime; Mulitple PrimeSingle Prime; Mulitple Prime Construction ManagerConstruction Manager Construction Manager at-RiskConstruction Manager at-Risk

aka CM/GC, CMR, CMcaka CM/GC, CMR, CMc Design BuildDesign Build Design Build Operate MaintainDesign Build Operate Maintain Design Build Operate TransferDesign Build Operate Transfer othersothers

OptionsOptions

Generally fall into 3 CategoriesGenerally fall into 3 Categories

– Design Bid BuildDesign Bid Build

– Construction management at RiskConstruction management at Risk

– Design BuildDesign Build

Options (continues)Options (continues)

Project Delivery includes Project Project Delivery includes Project ManagementManagement

In-HouseIn-House OutsourcedOutsourced

– Program ManagementProgram Management

– Construction Manager as Owners Agent Construction Manager as Owners Agent

Design Bid BuildDesign Bid Build

Owner holds contracts separately with Owner holds contracts separately with a designer and construction contractora designer and construction contractor

Design and Construction are sequentialDesign and Construction are sequential Significant owner involvement requiring Significant owner involvement requiring

owner decisions owner decisions Costs are known at construction awardCosts are known at construction award Responsibility for design is ownerResponsibility for design is owner

CM @ RiskCM @ Risk Transfer of responsibility and significant risk from Transfer of responsibility and significant risk from

the owner to the CM@R for the entire construction the owner to the CM@R for the entire construction effort, “performance risk”, including subcontract effort, “performance risk”, including subcontract administration and coordination, cost and schedule.administration and coordination, cost and schedule.

The CM@R is responsible to each construction The CM@R is responsible to each construction subcontractor for coordination, delay or impact on subcontractor for coordination, delay or impact on the overall construction effort.the overall construction effort.

The owner remains responsible to the builder for The owner remains responsible to the builder for design errors.design errors.

The owner retains control of design quality.The owner retains control of design quality.

CM @ Risk (continues)CM @ Risk (continues)

The owner retains control of design The owner retains control of design quality.quality.

The ability to gain the builder’s input to The ability to gain the builder’s input to design, phasing, logistics and value design, phasing, logistics and value management decisions is increased.management decisions is increased.

Daily Owner involvement, required Daily Owner involvement, required resources and control over the resources and control over the construction effort are less.construction effort are less.

The CM effort may add cost.The CM effort may add cost.

Design BuildDesign Build The owner holds a single contract with the The owner holds a single contract with the

DB entity for the delivery of the entire DB entity for the delivery of the entire project.project.

The design and construction often have The design and construction often have overlap where construction may begin overlap where construction may begin before design is 100% complete, similar to a before design is 100% complete, similar to a fast-tracked project.fast-tracked project.

Procurement may begin prior to Procurement may begin prior to construction.construction.

Specifications are performance-based Specifications are performance-based rather than prescriptive.rather than prescriptive.

DB (continues)DB (continues) Minimal daily Owner involvement, resources and Minimal daily Owner involvement, resources and

decisions are required as compared to DBB and decisions are required as compared to DBB and CM@R.CM@R.

Design and construction quality are primarily Design and construction quality are primarily controlled by the DB entity as the emphasis is on controlled by the DB entity as the emphasis is on cost and schedule control.cost and schedule control.

Dependent on contract conditions and form, Dependent on contract conditions and form, costs are generally known once the DB contract costs are generally known once the DB contract is awarded, and usually, though not always, are is awarded, and usually, though not always, are fixed no later than the midpoint of design when fixed no later than the midpoint of design when the scope is firm.the scope is firm.

DB (continues)DB (continues)

Transfer of responsibility and most risk Transfer of responsibility and most risk from the owner to the DB entity for the from the owner to the DB entity for the entire design and construction effort.entire design and construction effort.

The ability of the builder to influence The ability of the builder to influence design, planning, phasing and value design, planning, phasing and value management are maximized..management are maximized..

Number of qualified bidders and high bid Number of qualified bidders and high bid cost may limit competition.cost may limit competition.

Recommended Steps to Select an Recommended Steps to Select an APDSAPDS Identify and define what goals and Identify and define what goals and

objectives are most important to project objectives are most important to project success for your specific circumstances.success for your specific circumstances.

Identify and define the special or unique Identify and define the special or unique issues that must be addressed.issues that must be addressed.

Recognize the limits of resources and Recognize the limits of resources and expertise of your owner organization.expertise of your owner organization.

Select the PDS that most effectively can Select the PDS that most effectively can meet or achieve those requirements.meet or achieve those requirements.

Recognize and acknowledge the trade-offs Recognize and acknowledge the trade-offs made in your selection of a PDS.made in your selection of a PDS.

ImplementationImplementation ConsiderationsConsiderations

Contract TypeContract Type– Firm Fixed Price Firm Fixed Price – ReimbursableReimbursable– GMPGMP

Management ExecutionManagement Execution– How the owner carries out its responsibilities vs. How the owner carries out its responsibilities vs.

how design and construction firms carry out how design and construction firms carry out their collective responsibilitiestheir collective responsibilities

Additional Reference MaterialsAdditional Reference Materials

Construction Industry Institute's (CII) Research Construction Industry Institute's (CII) Research Summary 165 --1 titled Owners Tool for Project Summary 165 --1 titled Owners Tool for Project Delivery and Contract Strategy Selection dated Delivery and Contract Strategy Selection dated June 2001June 2001

CII Implementation Resource 165—2 titled Users CII Implementation Resource 165—2 titled Users Guide dated September 2001. Guide dated September 2001.

Design/Build Selector Tool found at the University Design/Build Selector Tool found at the University of Colorado civil engineering web site.of Colorado civil engineering web site.

Associated General Contractor’s booksAssociated General Contractor’s books– Project Delivery SystemsProject Delivery Systems– DB guides and checklistsDB guides and checklists

Four Steps to a Project Four Steps to a Project Delivery SystemDelivery System

– Ability to use Alternate MethodsAbility to use Alternate Methods

– Establishing Options for PDSEstablishing Options for PDS

– and PMand PM

– Selection MethodsSelection Methods