A GUIDE TO SELECTING THE BEST PROJECT DELIVERY METHOD FOR AIRPORTS Ali Touran, Ph.D., P.E., F. ASCE, Northeastern University Background This presentation is based on research conducted for the ACRPfunded project “A01-05: A Guidebook for Airport Capital Project Delivery.” Project Team Ali Touran, Northeastern Univ., P.I. Douglas D. Gransberg, Univ. of Oklahoma Keith R. Molenaar, Univ. of Colorado Payam Bakhshi, Northeastern Univ. Kamran Ghavamifar, Northeastern Univ. Outline Objective Project Delivery Methods • Interviews • Pertinent Issues • Selection System • System validation EXAMPLE APPLICATION Objective Develop a Guidebook for airports to help them make the project delivery method decision in a logical and systematic way. Project Delivery Method (PDM) is “the comprehensive process of assigning the contractual responsibilities for designing and constructing a project. A delivery method identifies the primary parties taking contractual responsibility for the performance of the work.” AGC’s Project Delivery Systems for Construction Delivery Methods Considered Design-Bid-Build (DBB) Construction Manager at Risk (CMR) or CM/General Contractor (CM/GC) Design-Build (DB) Interviewed Airports Outline Objective Project Delivery Methods Interviews ►Pertinent issues – Selection System – System validation Analysis & Critique of Pertinent Issues Framework for the PDM Selection System The framework for the Project Delivery Method Selection System consists of the following two tiers: Tier 1 – Analytical Approach; Tier 2 – Weighted Matrix Approach. Selection Framework Project Delivery Decision Report Weighted Criteria Decision Matrix Tier 2 Selection Tier 1 Selection Advantages/ Disadvantages Delivery Method Considered Project Goals Project Description Tier 1: Analytical Approach Advantages/ Disadvantages of the PDMs Tier 2: Weighted Matrix Approach Validation Testing the PDM selection system internally; Contact the interviewees for feedback; Panel members’ evaluation of the system; Applying the selection system to a real-life project. Project Example Tier 1. Analytical Approach Tier 2. Weighted Matrix Approach Project Example – Tier 1 Step 1. Create Project Description Step 2. Define Project Goals Step 3. Review Go/No-Go Decision Points Step 4. Review Advantages & Disadvantages Step 5. Choose Most Appropriate PDM Step 6. Document Results Project Example – Tier 1 Step 1. Create Project Description Project Name: Logan International Airport Central Parking Garage Renovation and Expansion Owner: Massachusetts Port Authority (Massport) Location: Logan International Airport, East Boston, MA Major Features of Work: • Add 3 new levels to the garage. New stair towers, new façade; • Install pin (mini) piles to support new structural elements; • Install three new vehicular bridges to existing west garage; • Associated utility relocations. Estimated Budget: $217,000,000 Estimated Project Delivery Period: 3 years Source(s) of Project Funding: Parking revenues (bonds secured by parking revenues) Project Example – Tier 1 Step 1. Create Project Description Major Challenges: • Maintaining traffic and pedestrian flow; • Safety – contractor and general public; • Construction phasing to maintain adequate temporary parking. Project Example – Tier 1 Step 2. Define Project Goals 1. Effectively renovate existing structure; 2. Provide more parking spaces; 3. Improve pedestrian and traffic flow in garage; 4. Deliver project on budget; 5. Deliver project on schedule; 6. Safe project. Project Example – Tier 1 Step 3. Review Go/No-Go Decision Points Project Example – Tier 1 Step 4. Review Project Delivery Method Advantages and Disadvantages – 19 Issues Project Level Issues 1. Project size 2. Schedule Compression 3. Schedule growth control 4. Early cost precision 5. Cost control 6. Risk management / allocation 7. Life cycle cost 8. Maintainability Agency Level Issues 9. Airport experience / staff capability 10. Airport control of project 11. Security 12. Control impact on passengers and operations 13. Third party stakeholder input to design and construction Public Policy/Regulatory Issues Other Issues 14. Competition and local talent 18. Adversarial Relationships 15. DBE/small business impact 19. Construction Claims 16. Legal and statutory constraints 17. Sustainability and LEED certification Step 4. Review PDM Advantages and Disadvantages Project Example – Tier 1 Step 4. Review PDM Advantages and Disadvantages Project Example – Tier 1 Project Example – Tier 1 Step 5. Choose the Most Appropriate PDM Project Example – Tier 1 Step 5. Choose the Most Appropriate PDM In light of Project Goals (from Step 2) and reviewing PDM advantages/disadvantages summary table: It is readily apparent that CMR is a more appropriate project delivery method than DBB. CMR is rated better than DBB for 14 of the 19 issues. Construction Manager at Risk Project Example – Tier 1 Step 6. Document Results Develop written report describing the thought processes and results for steps 1 through 5. Although the Tier 1 analysis resulted in a clear selection of CMR as the most appropriate PDM, the same example project is used in the Tier 2 analysis, in order to provide an example to follow. Project Example – Tier 2 Step Step Step Step Step 1. 2. 3. 4. 5. Define Selection Factors Weight Selection Factors Score Project Delivery Methods Choose Most Appropriate PDM Document Results Project Example – Tier 2 Step 1 & 2. Select & Weight Selection Factors Project Example – Tier 2 Step 3. Score Project Delivery Methods Project Example – Tier 2 Step 4. Choose Most Appropriate PDM Highest Weighted Score Construction Manager at Risk Project Example – Tier 2 Step 5. Document Results Project Delivery Decision Report Outline: • Safety of contractors & general public • Executive Summary • Project Description • Project Goals • Delivery Methods Considered • Selection Factors • Weight Selection Factors • Score Project Delivery Methods • Delivery Method Decision • Appendices Questions?