Innovative Contracting Construction Management Association of America Seminar May 17, 2013 California Department of Transportation Traditional Project Delivery Design-Bid-Build (DBB) Specified by Public Contract Code Design must be complete Awarded to the lowest responsible bidder Why Use Innovative Methods? Faster Delivery Cost Certainty Constructability Better Partnering Risk Transfer Innovation Innovative Contracting Effort Hired Trauner Consulting Services, Inc. to: Identify methods used by others Identify the pros and cons of each method Assist in developing policy, procedures, and processes for selected methods Assist in developing training Innovative Contracting Report Identified 27 methods divided into the following categories: Project Delivery Systems Procurement Practices Contract Management Methods Project Delivery Systems Caltrans Experience Design-Bid-Build Design-Sequencing Additional Methods Indef. Delivery/ Indef.Quantity Agency-CM CM at-Risk Design-Build Early Contractor Involvement Project Alliancing Contract Maintenance Procurement Practices Caltrans Experience Cost-Plus-Time (A+B) Bidding Low Bid Lump Sum Bidding Additional Methods Multi-Parameter (A+B+C) Bidding Alternate Design Alternate Bid Additive Alternates Best-Value Reverse Auction Bid Averaging Contract Management Methods Caltrans Experience Incentive/Disincentive Lane Rental Flexible Notice to Proceed Warranties Additional Methods Liquidated Savings Active Management Payment Mechanism No Excuse Incentives Shared-Risk Contingency Fund Design-Build Design-Build A delivery method where a contract for both the design and construction of a project is awarded to a single entity. Design-Build 30% Design RFQ RFP Award Design RFC RFC RFC Construct Construct Construct Legislation – Senate Bill 4 Allows 15 design-build projects 10 Caltrans 5 Local California Transportation Commission must authorize Prequalification versus shortlisting Allows “Low Bid” or “Best Value” awards Sunsets January 1, 2014 Authorized Projects Awarded Projects LA 10/110 – Express Lanes Mad 99 – Rehabilitate Roadway SM 101 – Install Ramp Metering System Fre 180 – Construct Braided Ramps LA 10/605 – Construct EB 10/SB 605 Connector SD 805 – I-805 North HOV/BRT LA 710 – Gerald Desmond Bridge SBd 15/215 – Devore Interchange Riv 91 – HOV Lanes $ 72 million $ 23 million $ 11 million $ 41 million $ 46 million $ 72 million $650 million $208 million $633 million Projects Currently in Procurement Cajon Pass North Region Bridge Deck Rehabilitation $140 million $ 58 million Why Use Design-Build? Faster Delivery Cost Certainty Constructability Risk Transfer Innovation Alternative Technical Concepts Alternative Technical Concepts (ATC) are proposed changes to the Department’s supplied basic configurations, design criteria, or construction criteria which provide a solution that is equal to or better to the requirements in the Request for Proposals. Alternative Technical Concepts (ATCs) ATCs submitted – 206 Value of ATCs submitted – $967 million ATCs approved – 109 Value of ATCs approved – $502 million ATCs incorporated – 29 Value of ATCs incorporated – $142 million Devore Interchange Project Deliver project 18 months earlier Secured $108 M SHOPP funding for the project Improved design, I-15 NB continuity Reduced right of way take (10 parcels) Reduced environmental impacts $40 M savings Construction Manager-General Contractor Construction Manager / General Contractor (CM/GC) A delivery method that allows an owner to engage a construction manager to provide input during the design process. At an agreed upon point, the owner and construction manager negotiate a price for construction of the project and the construction manager becomes the general contractor. CM/GC Process 30% Design RFQ Award (Preconstruction Services) Design Negotiate Price Award (Construction Services) Construct Preconstruction Services Constructability Reviews Verify Quantities Estimate Alternatives Value Analysis Risk Analysis Construction Phasing Project Scheduling Authority Assembly Bill 2498 (Gordon) Signed September 2012 Added Section 6700 to Public Contract Code Authorizes up to 6 projects by Caltrans Must be administered by Caltrans 5 projects greater than $10 million Effective January 1, 2013 No sunset date Why Use CM/GC? Faster Delivery Cost Certainty Constructability Risk Mitigation Innovation Next Steps Develop processes and contract templates Industry outreach Project selection Begin procurements Useful Links Innovative Procurement Practices Report: http://www.dot.ca.gov/hq/oppd/contracting/InnovativeP rocurementPractices.pdf Alternative Procurement Guide: http://www.dot.ca.gov/hq/oppd/contracting/AlternativeP rocurementGuide.pdf Useful Links Design-Build Demonstration website: http://www.dot.ca.gov/hq/oppd/designbuild/db.htm FHWA’s Design-Build Effectiveness Study http://www.fhwa.dot.gov/reports/designbuild/designbuil d.pdf Useful Links CMGC Pilot Program website: http://www.dot.ca.gov/hq/oppd/cmgc/ NCHRP Synthesis 402: Construction Manager-at-Risk Project Delivery for Highway Programs http://onlinepubs.trb.org/onlinepubs/nchrp/nchrp_syn_4 02.pdf For More Information Contact: Raymond S. Tritt Chief, Office of Special Projects California Department of Transportation (916) 653-3348 rtritt@dot.ca.gov DBProgram@dot.ca.gov CMGC@dot.ca.gov