Project Example – Tier 1

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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
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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

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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
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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
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Tier 1. Analytical Approach
Tier 2. Weighted Matrix Approach
Project Example – Tier 1
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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
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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
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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?
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