Lessons Learned: CM at Risk &
Design Build
CM at Risk
• UC San Diego’s most used project delivery
method is CM at Risk (CMAR).
• We have and continue to have great success
with CMAR.
• Some examples follow…
CM at Risk – First CMAR project
Eleanor Roosevelt Housing and Dining
Considerations for
prequalification should include:
 Company’s experience with comparable projects
(comparable projects defined by owner).
 Company’s experience with CM at Risk.
(i.e. providing preconstruction and construction
services as a requirement of the contract).
 Individual team member’s experience with
comparable projects and CM at Risk.
CM at Risk
CallT2
Bidding Preconstruction and
Construction Services
At UC San Diego we establish
the amount we will pay (lump
sum) for the specified
preconstruction services.
CM at Risk
Skaggs School of Pharmacology & Pharmaceutical Sciences
We Recommend that Bids for
Construction Services Include:
• OH&P (fee), CM/Contractor’s General Conditions and CM/Contractor’s
General Requirements.
• We recommend that the CM/Contractor’s bid NOT include General
requirements for the project. These costs are to be included in sub trade
bids or bid separately.
• Specify a generous minimum for field staff. Don’t be cheap! On a large
project we require a Project Executive, a Sr. Project Manager, a Project
Manager, three Project Engineers, a General Superintendent and two
Superintendents (one structural and one for rough-in and finishes).
• The CM/Contractor’s bid shall include the costs of subcontractor’s
payment & performance Bonds. Bonding subcontractors is the
CM/Contractor’s option.
CM at RISK
Sulpizio Cardiovascular Center
CM at Risk Cautions
•
•
•
•
•
Look out for “bundling” of bid packages (Hard bidders
do it less often).
Beware of “over” prequalification – Limited bid pool
increases price.
Make sure CM/Contractor gets at least 3 bids per bid
package.
Be aware that CM at Risk probably costs 1-2% more
than hard bid on bid day, although the final costs may
be about the same.
Starting Construction Phase before entire job designed
and bid.
CM at Risk
Health Sciences Biomedical Research Facility 2
Design Assist (DA) and Design Build (DB)
subcontracting with CM at Risk Cautions
• CM/Contractor must be sophisticated and experienced with DA &
DB subcontracting on public works.
• It is expensive! There is the cost of CM/Contractor’s preparation
of DA & DB bid packages and the costs of the subcontractor’s
work during the preconstruction phase.
• It is Expensive! Have a clear understanding of the costs and
benefits/deliverables.
• In Design Assist the designer remains the Designer of Record and
the DA subcontractors are the peer reviewers.
• In Design Build the designer becomes the peer reviewer and the
subcontractor becomes the Designer of Record.
CM at Risk
Jacobs Medical Center
Design Build
First Design Build Housing Project - Miramar One Apartments
Design Build
Advantages of Design Build
•
•
•
•
•
Design Builder provides preconstruction services
(like CM at Risk).
Design Builder prequalifies subcontractors (like
CM at Risk).
Cost effective – the award is based on lowest
cost per evaluation point.
Overall quicker delivery – phasing / overlap of
Design & Construction.
Generally good relationships between owner,
designer & builder.
Design Build
The Villages at Torrey Pines – Apartments
Design Build
DISADVANTAGES
•
Design NOT completed when the project is bid.
•
Exact project components loosely defined.
•
May be more owner work involved than in other delivery
methods.
•
Changes cause havoc.
Design Build
Rita Atkinson Residences – Graduate Apartments
Design Build Cautions
• Must identify owner requirements that are above code (Code +).
• The program should be simple, i.e. Housing, Parking Garages
(Design Build Proponents disagree!).
• A single, sophisticated client is preferred over multiple clients
advocating different needs.
• Owner needs experienced staff and the time to review DB
Proposals – becomes contract document.
• Owner needs experienced staff with the time to review design
submittals quickly.
• Owner must realize that DB is just as much or more work than
other delivery methods.
Design Build
Ecoflats – Apartments
Comparison between CM at Risk
and Design Build
CM at Risk
Prequalification of GC & Subs
Cost Effective
Effective Scheduling
Good Collaboration
Complete Design at Bid
Multiple Clients
Effect of Changes Increased
Yes
Yes
Yes
Yes
Yes/Maybe
Yes
No
Design Build
Yes
Yes
Yes/Better
Yes
No
No
Yes
Lessons Learned using CM at Risk
& Design Build (Questions?)