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HomeMy WebLinkAboutDocumentation_Workshop_Tab 02_8/3/2020Agenda Item #2. Workshop STAFF MEMO Meeting: Workshop - Aug 03 2020 Staff Contact: Jeremy Allen, Village Manager Department: Manager J Discussion on Community Center Plan Design Phase III REG Consultants working on behalf of the Village is wrapping up Survey, Schematic Design and Site Plan Approval Phase. We will be authorizing REG to move into design development and Construction Document Phase. We will also be putting out an RFQ for Construction Manager services. 20-0727_VOT-CC_Preliminary Pricing Summary (002) Phases exec summary Page 5 of 55 > ; 2 { k 0.01 Agenda Item #2. "Task 1. J Architectural & Engineering Services Fees A. Survey, Schematic Design & Site Plan Approval Phase $59,950.00 B. Design Development $84,660.00 I C. Construction Document Phase $134,000.00 D. Bidding & Permitting Assistance Phase $ 17,600.00 E. Construction Administration & Special Inspection $ 56,450.00 Total for Task I. (A.-E.) J $ 352,660.00 Page 7 of 55 #2. C U T I V E S U M M A R Y When hiring a team to design and construct a building today, there are many different ways to structure the work. Within the building industry, conventional methods are being challenged by clients and consultants alike in attempts to save time, spend less money, reduce litigation, create less conflict or heighten the building's quality. While minor variations make each working arrangement unique, the major differences fall into one of three categories: traditional methods, construction management and design -build. Each of these project delivery options —that is, how the various individuals organize their participation and responsibilities to com- plete a building project —creates certain advantages and has potential limitations. In the case of each project, the relative merits of the employable delivery systems must be evaluated. The methods can be characterized by various means, most clear- ly by the number of central players: design -bid -build and negotiated select team have three, construction management three or four, design -build two, and bridging three. This executive summary outlines the key characteristics, phases, uses and relation- ships that distinguish one project delivery option from another and that are described extensively in the subsequent chapters of the Handbook on Project Delivery. For an overview of all delivery methods, please see the project delivery matrix on the last page of the executive summary. A. TRADITIONAL METHODS Most building projects follow a traditional model in which an owner hires an architect at the beginning of the process to develop a design and prepare the documents needed to build it. According to convention, the owner also hires a general contractor under a separate contract to construct the building. The owner has a separate contract with each of the two parties, who then act in the owner's interest. The architect is paid a fee proportional to the services delivered, while the contractor's compensation is typically built into the cost of construction. Because it is the most frequently employed option, design - bid -build begins the survey of project delivery and serves as a reference point for all other methods. Negotiated select team, on the other hand, has the same contractual relationships as design -bid -build, but the contractor comes on board much earlier in the project and the process is much less formal. A I . Design -Bid -Build The most common form of project delivery, design -bid -build, is characterized by its three phases, by its independent contracts between the architect and the owner and the contractor and the owner, and by the linear sequencing of the work. There are three prime players: owner, architect and contractor. ------ 1-416 contracts ------ communications Executive StPy946 8 of 55 Agenda Item #2. contracts ------ communications Process. The typical process involves three phases: First, the owner engages the architect to design and prepare construction documents for the project. Second, those documents are used for construction bidding, a contractor is selected and cost commitments made. Third, the owner hires the contractor to build the project. Use: This method is the conventional one, and is common to all types of undertak- ings, particularly those initiated by public clients with legal requirements to select a low -bidding contractor. Its principal advantages are: its widespread use and familiarity, the clear roles assigned to each party, the thorough determination of design prior to construction, and its linear process, which is easy for owners to manage. Disadvantages are related to the linear phasing: It is considered a lengthy process, the separation of design and construction restricts useful communication, and change orders and delay claims are more likely than in other methods. A2. Negotiated Select Team This delivery option, sometimes called design -assist, has evolved from design -bid - build in which there are separate contracts for design and construction. At the beginning of the project, the owner selects an architect and a contractor with whom fees are negotiated. The three prime players, owner, architect and contractor, work together cooperatively from very early on in the design process. Process: The negotiated select team process typically involves three phases. First, the owner informally selects an architect to design the project and a contractor to build it, each under separate contract. Design and documentation are completed by the architect with input from the contractor, who often provides scheduling, cost estimating, phasing and systems evaluation. Second, when design is complete, the final construction cost is negotiated through bids from subcontractors, and third, the contractor builds the project. Use: This method is common among private -sector projects, experienced owners and those owners, architects and contractors who work together regularly. Its principal advantages are: a cooperative team approach to the process, the availability of con- struction expertise during the design phase, a reduction in the inherent adversarial relationships between design and construction and less potential for litigation. The primary disadvantages of using a negotiated select team are related to its relative informality: Without competitive bidding from the general contractor, owners may question whether they have an economical construction price. Also, an ambiguity of roles, responsibilities and phasing can confuse the process. B. CONSTRUCTION MANAGEMENT Construction management is a broad term covering a variety of project delivery scenarios in which a construction manager is added to the building team to oversee such elements as schedule, cost, construction, project management or building tech- nology. A construction manager (CM) may be trained in that field or may be an architect, contractor, engineer or developer; however, construction management is not a licensed activity in most states. CMs can serve in different capacities with varying degrees of authority, depending upon how the project is structured. A fee is paid to the construction manager relative to the services to be performed, which range from advising during a particular phase of the building process to acting as the owner's agent in all matters. Construction management is appropriate for both public Executive Summary Page 9 of 55 Agenda Item #2. and private projects that are relatively complex, for which budget or schedule must be closely monitored, and those requiring extensive coordination of consultants or subcontractors. B 1. Construction Manager as Advisor This project delivery option is characterized by the additional consultant brought to the building team, a construction manager who acts as an advisor to the owner. The authority given the CM -advisor varies, but the architect and contractor generally maintain their conventional roles. There are four prime players with this method: owner, construction manager, architect and contractor. Process. The process typically involves four phases, adding the CM -advisor to the team either at the outset of the project or once design is complete. First, the owner contracts with an architect to prepare the design and construction documents. When hired in this phase, the CM -advisor will oversee design in terms of its implications for cost, schedule and constructability. Construction documents are then used for construction bidding or negotiation; a contractor is selected with the advice of the construction manager, and cost commitments are made. Finally, the owner hires the contractor to build the project. The construction manager stays on as advisor through the completion of construction. Use: Since this method adds a consultant and the associated fee, it is more appropri- ate for large, complex projects than those that are relatively small and simple. Public owners can select a CM -advisor based on qualifications. Private owners experienced in construction may use independent contracts with each of the primary parties to the building project. A CM -advisor is also appropriate for owners who want to hire an architect and contractor directly but who do not have the time or in-house exper- tise to oversee the building process. The principal advantages are the direct contractual relationships with the owner, careful monitoring of costs and schedule, and the continuous oversight throughout a linear process that is easy for owners to manage. Disadvantages include the added cost of an additional consultant, the con- fusion of traditional roles, the relatively lengthy process and more complex relationships. B2. Construction Manager as Agent This delivery option is characterized by the addition of a construction manager with powers of the owner, allowing the owner to step back from the project. Like advisory CMs, those acting as the owners agent are hired for their expertise in a construction, technology, costs, scheduling and constructability. Because CM -agents assume financial authority for the project, they must also have experience managing all fiscal aspects of a project. There are four prime players: owner, construction man- ager, architect and contractor. U m Process. The typical CM -agent process involves four phases. First, the construction manager is hired by the owner to act as his or her agent and to oversee all project activities through the completion of construction. Second, the architect is brought on board, and contracts through the construction manager. Design of the project and construction documentation occur. Third, the project is bid or negotiated to select a general contractor, who also contracts through the construction manager. Cost com- mitments are made at this stage. Fourth, the contractor builds the project. - contracts - - - - - - communications - contracts - - - - - - communications Executive 0age-"l 0 of 55 Agenda Item #2. multiple prime contractors contracts ------ communications Use: This method, while infrequently employed, is appropriate for absentee owners and private owners who do not intend to be involved in the day-to-day responsibili- ties of design and construction processes. Its principal advantage lies in giving such owners, as well as others working on the project, a single point of responsibility. Since the process is similar to the traditional design -bid -build, it is easy to track by owners, and the management expertise of the owner's agent can shorten the project time line. This method has certain disadvantages: direct communication is sup- pressed between owner and the architect or contractor, the added consultant represents an increase in costs and time in selection, and overlapping roles can be complicated. B3. Construction Manager as Constructor In this delivery method, the construction manager is hired prior to the completion of design to act as the project coordinator and general contractor. Compared to other options, this method is contractually similar to design -bid -build, has the advisory benefits of CM -advisor, and involves the early cost commitment characteristic of design -build. The CM -constructor may be hired by bid to deliver the building for a guaranteed maximum price or by creating multiple bid packages. In either case, the construction manager assumes all the liability and responsibility of the general con- tractor, which explains why the method is also known as construction manager at risk. There are three prime players: owner, architect and construction manager. Process: The typical CM -constructor process involves three phases. First, the owner contracts with the architect for the design of the project. When design is about 30 percent complete, scope -of -work documents are prepared. Second, based on those documents, the project is bid in order to select the CM -constructor. Third, the owner hires the CM -constructor to advise during preconstruction and to build the project. When construction documents are complete, the CM -constructor generally will rebid some or all of the construction to other contractors. Use: This method is common among owners for whom cost, schedule or construc- tion is expected to be complicated to manage, as when a project will be fast tracked. The principal advantages are the initial focus on design issues, construction advice during the design process, careful oversight of costs and schedule, early cost com- mitments, and opportunities to shorten the overall project schedule. Disadvantages include the potential for adversarial relationships, change orders and delay claims from low bidding prime or trade contractors and the reduced ability of the owner to control construction quality. C. DESIGN -BUILD Design -build is a form of project delivery in which owners contract with a single entity, the design -builder, to provide both design and construction services. The design -build entity may be a single firm, a consortium of experts or a joint -venture undertaking. Typically, the team includes an architect and a contractor, who may be partners in the undertaking or one a subcontractor to the other. Although contrac- tors more commonly head the design -build team, architects who maintain necessary bonds can also serve this function. Principal advantages of design -build are the sin- gle point of responsibility and the potential to collapse otherwise independent phases and therefore save valuable time. It should be noted that design -build is not legal for public work in some states. Executive Summary Page 11 of 55 Agenda Item #2. C 1. Design -Build Design -build is characterized by the single point of responsibility for the project. The design -build entity is responsible for both design and construction services under one contract, so there are just two prime players: the owner and the design - builder. This method is the most commonly employed form of design -build. Process: Once preselection materials have been prepared, the typical design -build process involves two key steps: design and construction. Design is completed by the architect who leads, contracts with, or is part of the design -build entity. Con- struction is also the responsibility of the design -builder. An early cost commitment generally is made during the design phase in the form of a guaranteed maximum price. Use: This method is common for projects that need to move swiftly. It is most effec- tive when the project is clearly defined at the outset but may be relatively complex, requiring extensive coordination of consultants and subcontractors. The principal advantages are that the single point of responsibility minimizes the owner's risk, reduces the likelihood of change orders and reduces construction delays. The pri- mary disadvantages are the method's complexity (particularly for owners with less experience), the lack of direct connection between the owner and the architect, and the potential for cost -saving strategies to erode design and construction quality. C2. Design -Build by Developer The design -build by developer delivery option incorporates the functions of design and construction, but in addition the design -build entity takes on some responsibili- ties of real estate development. Also known as turnkey construction or sale -lease back, this method is characterized by the legal transfer of title to real property. It is distinct from speculative development because an owner initiates the process and contracts for services with the DB-developer. There are two prime players: the owner who initiates the project and will purchase it upon completion, and the design -builder. Process. As with design -build, the typical process has two phases, design and build- ing. The owner prepares preselection materials and contracts with the DB-developer team. In many cases, the design -builder helps put the development deal together, acquires land, obtains financing and gains entitlements. The DB-developer then 0 designs the buildings and completes construction. Costs are managed throughout the process, and the predictability of project costs are very good since cost commit- ments are normally made early in the design phase. The design -builder maintains and operates the building long enough to ensure that all systems are functioning B properly, and then transfers legal title to its intended owner. kUse: This method is appropriate for public and private owners who do not intend to take financial responsibility for the project until it is complete, for firms taking an entrepreneurial stance in the building industry, and for projects that can be clearly defined at the outset and that need to be completed as quickly as possible. The princi- pal advantages are minimal financial and legal risk on the part of the owner, early guarantee of construction costs, single point of responsibility, and shortened overall schedule. Its principal disadvantages stem from the lack of direct owner participation, its complexity (particularly for less experienced owners), and the difficulty of prepar- ing adequate preselection materials, including quality and performance standards. Hm - Cliacl. C11111MI 1,51t 1 1, tm - contracts - - - - - - communications Executive Page of 55 Agenda Item #2. umuatt, ------ communications C3. Bridging Bridging is characterized by the merging of design -bid -build with design -build. With bridging, the owner hires an architect to define the preliminary design and performance specifications of the project, and serve as the owner's representative during the length of the project. After arriving at a well developed proposal, the documents are used to solicit bids from design -build entities to execute the project. The design -builder completes design documentation, acting as the architect of record, and after a final price review, construction begins. There are three prime players: the owner, owner's architect and, later, the design -builder. Process. There are four phases in the typical bridging process. First, the owner hires an architect for preliminary design of the project and to complete a bidable combina- tion of drawings and performance specifications called scope -of -work documents. Second, the project is bid or negotiated in order to select the design -build team that will complete design documents and construction. Cost commitments are estab- lished when the design -builder is brought on board. Third, the design -builder's architect completes the design and becomes the architect of record. Fourth, the design -builder's contractor builds the project. Use: This method is common among public and private owners who wish to main- tain the advantages of contracting with an architect while gaining advantages associated with design -build, and who also intend to engage in competitive bidding. Its principal advantages include: focused attention to design issues, competitive bid- ding and single point of responsibility during design documentation and construction. The disadvantages of bridging are its complexity, the need for more extensive management by the owner, possible conflicts between the owner's archi- tect and the design -builder, and the potential for short-term cost -saving strategies to outweigh building and construction quality. These descriptions briefly summarize eight basic options available to owners, architects, contractors and construction managers as they organize the work of undertaking a building project. The source for this material, the Handbook on Project Delivery (AIACC, 1996), includes extensive information that is organized to permit ready comparison between options. The choice of project delivery methods has become a significant factor in the build- ing industry; the handbook offers guidelines for making such choices. For more information on the ADAPT program or the Handbook on Project Delivery, please contact project director Julie Thompson: AIA California Council 1303 J Street, Suite 200 Sacramento, CA 95814 9161448-9082 916/442-5346 fax E-mail: AIACC@aol.com Executive Summary Page 13 of 55