Presented by CALTRANS

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Innovative Contracting
Construction Management Association of America Seminar
May 17, 2013
California Department of Transportation
Traditional Project Delivery
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Design-Bid-Build (DBB)
Specified by Public Contract Code
Design must be complete
Awarded to the lowest responsible bidder
Why Use Innovative Methods?
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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
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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
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Additional Methods
Multi-Parameter
(A+B+C) Bidding
Alternate Design
Alternate Bid
Additive Alternates
Best-Value
Reverse Auction
Bid Averaging
Contract Management Methods
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Caltrans Experience
Incentive/Disincentive
Lane Rental
Flexible Notice to
Proceed
Warranties
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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
[email protected]
[email protected]
[email protected]
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