MULTIPLE PACKAGES CM AT RISK CONTRACTING PROCEDURE
This process is used for CM at Risk contracts where the CM has been selected to perform Document Review
Phase, Procurement Phase and Construction Phase Services and the Construction Phase Services will be
contracted and performed in additional phases. For example the initial phase may be site work and utilities,
followed by excavation and shoring, foundations, core and shell, and interiors. The end result will be that the
CM holds two contracts; one for Document Review and Procurement Services and one for all of the Construction
Phase Services. The intent is to minimize the administrative burden placed on the project team that would result
from a separate contract being issued for each construction phase of the project.
Change Orders to the Document Review and Procurement Phases Contract, and the Construction Phase
Contract, would be kept separate to the appropriate contract and be sequentially numbered. One submittal and
RFI log would also be kept for each of the contracts.
This procedure as described below should be followed as additional Construction Phase packages are to be
awarded beyond the initial contract:
The process is initiated by a Memorandum of Negotiation (MoN). The approval routing of the MoN is similar to
the routing required for Board on Changes approval (FP&C Project Manager, FP&C Division Manager, Contract
Administration Manager, FP&C Director, and Chief Facilities Officer). Accompanying documents would be the
CM’s Proposal and any additional negotiation documents.
HECO-8s should be issued sequentially 001, 002, 003, etc. with each package for approval. HECO-8 construction
values for previous packages should be listed individually, but should be rolled up to reflect a cumulative
construction value as each is issued.
As additional packages are to be awarded, the CO-9 will be revised to list the additions and reflect the
cumulative contract amount. As revised CO-9s are issued, the “Original Contract” line item in the Schedule of
Values will be revised accordingly to reflect the cumulative construction value.
Bonding will be secured for the design-to construction amount at the time of the award of the second contract
(the Construction Phase contract award). If the final buy-out exceeds the design-to construction cost, the CM
fee for increased bonding will be adjusted accordingly by Change Order.
The CM Purchase Order will be adjusted by a “Purchase Order Change” procedure with each contract revision
based on the phased award amounts.
Change Orders will be processed as they occur and will be numbered sequentially during the life of the project.
The value of approved Change Orders will not be incorporated into Contract revisions as additional packages are
awarded. The value of approved change orders from work performed under previous versions of the CO-9 will
be carried forward on the Schedule of Values (HECO-12) under the “Approved Change Orders” line items.
Example:
Project
207-XXXXX-001
207-XXXXX-002
207-XXXXX-003
207-XXXXX-004
207-XXXXX-005
Package
Pkg Award
Description
Amount
Site Utilities
$5,000,000
Excavation & Shoring $1,000,000
Foundations
$2,000,000
Core & Shell
$10,000,000
Interiors
$10,000,000
CO-9 (Revised) Total Value of
Amount
Approved Changes
$5,000,000
$200,000
$6,000,000
$300,000
$8,000,000
$340,000
$18,000,000
$450,000
$28,000,000
$750,000
“Adjusted Contract
Total” HECO-12
$5,200,000
$6,300,000
$8,340,000
$18,450,000
$28,750,000