APRIL 3-6, 2013, LONG BEACH, CA
FAC11 - CONSTRUCTION 101:
WHERE THE RUBBER MEETS THE ROAD
These materials have been prepared by the CASBO Facilities Professional Council (or CASBO Associate Member).
They have not been reviewed by State CASBO for approval, so therefore are not an official statement of CASBO.
Outline
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Project Team Members & Roles
Project Delivery Methods
Construction Agreements
Pre-Construction Services
Bid Process & Contractor Selection
Construction Terminology
Project Phasing
Avoiding Change Orders/Claims
Project Closeout
Questions
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Presenters
Presider: David Miranda, Assistant Director,
Facilities, Planning & Operations, Tustin USD
Speaker: Brian Smith, Partner,
Bowie, Arneson, Wiles & Giannone
Speaker: Layne Arthur, Vice President,
Balfour Beatty Construction
Speaker: Char Yarnall, Principal,
PJHM Architects
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Key Project Team Members & Roles
• District Staff
• Architect
• Legal Counsel
• Contractor
• Construction/Project Manager
• Inspectors
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Project Team Members & Roles
District Staff
• Establishes expectations for project and team performance
• Contracts for construction inspectors and testing services
• Monitors progress of project, guides and controls other team
members
• Facilitates governing board approvals of changes, payments to
contractors, etc.
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Project Team Members & Roles
Architect
• Is in “general responsible charge” of the construction, “observes the
construction for general conformance to design requirements, and
provides status reports to the DSA
• Assists school district in preparing bidding and “front end” construction
documents
• Reviews and advises school district as to contractor claims, stop payment
notices, and other legal issues
• Assists school district with resolution of claims and litigation
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Project Team Members & Roles
Legal counsel
• Assists school district with:
– Legal requirements applicable to selected construction
delivery method
– Preparing bidding and “front end” construction documents
– Resolution of claims litigation
• For non-bid projects, assists school district in preparing preconstruction services agreements and construction agreements
• Reviews and advises school district as to contractor claims, stop
payment notices, and other legal issues
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Project Team Members & Roles
Contractor
• Responsible for constructing the project in accordance with all
design and contract requirements
• Prepares schedules of values, and submits pay applications in
conformance with the schedule of values
• Contracts with subcontractors, and schedules and coordinates all
subcontracted work
• Primarily responsible for compliance with prevailing wage and
other labor laws
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Project Team Members & Roles
Construction/ Project Manager
• School district’s representative for purposes of construction,
including providing expertise that district staff may not have
• Monitors construction and compliance with contract requirements,
and attempts to facilitate early identification and resolution of
issues
• Construction manager on multi-prime project takes on scheduling,
coordination, and similar duties that otherwise would be performed
by a general contractor
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Project Team Members & Roles
Inspectors
• “Project inspector” or “inspector of record” must be certified by
DSA – provides regular reports on project to DSA
• Inspects construction to confirm conformance with DSA-approved
plans code and requirements
• Reports deviations from plans and specifications
• Maintains set of project records (DSA-approved plans, change
orders, submittals, inspection reports, etc.)
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Project Delivery Methods
Available Construction Delivery Method
• Design-Bid-Build (Public Contract Code Section 20111 et seq.)
- Applies to public projects costing $15,000 or more
• Design-Build (Education Code Section 17250.10 et seq.)
- Applies when cost of design and construction of school facility
combined will exceed $2.5 million
• Lease-Leaseback (Education Code Section 17400 et seq.)
- Can use for projects of any size/cost
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Project Delivery Methods
Design-Bid-Build (“DBB”)
• Traditional and historically most-commonly used construction delivery
method
• District hires an Architect to design the project and obtain DSA approval
• District advertises for competitive bids as required by Public Contrast
Code §20111
• District awards contract to the responsive and responsible bidder with the
lowest bid, who then builds the facility
• District can award multiple “prime” contracts for various portions of the
work, using a construction manager to manage the work and the
contracts, or can award a single prime contract for all of the work to a
general contractor
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Project Delivery Methods
Design-Bid-Build (“DBB”)
Advantages
• Intended to help protect against misuse of public funds, favoritism,
fraud and corruption in the contracting process
• Provides all qualified contractors an opportunity to bid, thereby
helping to stimulate competition
• Can result in lower construction cost
Disadvantages
• Low bidder may have less than stellar qualifications and experience
• Low bidder may use change-order process and/or claims process in
an attempt to increase its compensation
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Project Delivery Methods
Design-Build (“DB”)
• District contracts with single entity that completes the design, builds the
project, and turns completed projects over to the district
• In order to use design-build on a project:
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Governing board must review design-build guidelines prepared by CDE, evaluate
both DBB and DB in a public meeting, determine that use of DB is in school
district’s best interest, make written findings, and adopt a resolution approving use
of DB for the project.
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District prepares a request for qualifications to pre-qualify DB entities
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District prepares a request for proposals, specifying, among other things, the
method or rating scheme that will be used to select the DB entity
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Governing Board may select DB entity based on lowest bid or on best value, but
must issue a written decision supporting its determination
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Project Delivery Methods
Design-Build(“DB”)
Advantages
• Can result in shifting responsibility and liability for design and unknown
site conditions from school district to DB entity
• Can result in collaborative design and construction process, thereby
reducing cost of project
Disadvantages
• Will need to be comprehensive in describing project attributes because, if
omit will be an extra cost
• Numerous and relatively complex procedural requirements
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Project Delivery Methods
Lease-Leaseback (“LLB”)
• Being used more frequently; used almost exclusively by some
school districts
• District obtains DSA approval of plans, then leases project site to
contractor
• Contractor constructs the facility while leasing the project site and
facility back to the school district
• At end of lease term, after school district has paid all required
lease payments, the school district owns the facility
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Project Delivery Methods
Lease-Leaseback(“LLB”)
Advantages
• Competitive bidding not required - can contract with the contractor
having known qualifications and experience
• Can bring contractor on board during design phase, which can
result in collaborative design and construction process
• Collaborative process can result in more accurate pricing and
reduce the potential for increased costs due to change orders
Disadvantages
• Governing board may get pressure from members of the public not
to approve contracts without competitive bidding
• Additional school district staff or consultant time may be needed to
determine if the costs of the project are appropriate and reasonable
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Construction Agreements
Design-Bid-Build
• Agreement Form incorporates other documents
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Notice Inviting Bids
Instructions to Bidders
General Provisions
Special Provisions
Plans and specifications
Other
Design-Build
• Usually a modification of DBB documents, but without biddingrelated aspects
Lease-Leaseback
• Site Lease, Leaseback Agreement, and Construction Services
Agreement
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Construction Agreement Considerations
• Keep current with changes in laws and court decisions
• Keep current with what’s happening in the field
• Thoroughly describe things that are important to the school
district, such as scope of work, time for completion, insurance
requirements, etc.
• Eliminate ambiguities that can serve as the basis for claims
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Pre-Construction Services
Benefits:
• Manage Design to District Budget
• Build Master Project Schedule
• Contractor Outreach – LOCAL
• Preparation of Bid Documents
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Bid Process and Contractor Selection
• Prequalification of Bidders?
• Pre-bid Conferences
• Review and Recommend Bid Addenda
• Conduct Bid
• Review Bids and Recommend Awards
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Construction Terminology
• BIM & FIM
• SD / DD / CD Phases
• Constructability
• Document Control
• Project Closeout vs. Warranty
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Project Phasing
• Develop Master Schedule Based on District Needs
• Does it Make Sense to Phase the Project?
• Single Bid or Phased ?
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Change Orders
• Complexities of Construction and/or Design Requirements
• Low Bid Contractor: “ Luck of the Draw”
• Contractor Initiated Change Orders
• The Economy and the Bid Environment
• Site Conditions & Unforeseen Conditions
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Avoiding Change Orders/Claims
• Avoiding Low Bid Contractors and “ Luck of the Draw” Approach
• Enhance the Chances to Avoid Construction Claims
• Increase the Chances of a Cooperative Construction Team
• Increase the chances to Minimize Change Orders
• Provide a More Predictable Construction Phase
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Avoiding Change Orders/Claims
• Constructability Reviews
• Regularity of Plan Reviews
• District Standards
• Re-Use of Prior Plans and Details
• Change Order Managed Via Contingencies and Allowances
• Alternative Project Delivery
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Project Completion
• Substantial Completion
• Beneficial Occupancy
• Notice of Completion
• Final Completion
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Project Closeout
• Addressing Claims
- Contractor Claims
- District Claims
- Stop Notice
• Project Records
• Managing the Punch List
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DSA Closeout
What is DSA Closeout?
• Liability Of District & Board Members
• Impact to future projects if “Closed without Certification”
• Lightning Rod Topic for DSA
Closeout Starts on First Day of Construction
Who is Responsible for Closeout:
• Architect
• District
• Contractor
• Inspector & Testing Labs
2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO
Questions
Presider: David Miranda, Assistant Director,
Facilities, Planning & Operations, Tustin USD
Speaker: Brian Smith, Partner,
Bowie, Arneson, Wiles & Giannone
Speaker: Layne Arthur, Vice President,
Balfour Beatty Construction
Speaker: Char Yarnall, Principal,
PJHM Architects
2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO