Substantial Public Works Projects and the General Contractor

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. Moderators. Dan Chandler, PEPrincipalOlympic Associates Company. Mark Henderson, AIAAssociate Principal, Health Care Practice Callison Architecture. John Lynch, PEAssistant DirectorWashington State Department of General Administration Division of Engineering and Architectural Services. Dick GoldsmithDirector, Legal Services and Health Policy Association of Washington Public Hospital Districts

Presentation Transcript

Slide 1

Vast Public Works Projects and the General Contractor/Construction Manager (GC/CM) Procedure: A New Way to Save Money, Time and Aggravation

Slide 2

Presenters Dan Chandler, PE Principal Olympic Associates Company Mark Henderson, AIA Associate Principal, Health Care Practice Callison Architecture John Lynch, PE Assistant Director Washington State Department of General Administration Division of Engineering and Architectural Services Dick Goldsmith Director, Legal Services and Health Policy Association of Washington Public Hospital Districts

Slide 3

Topics Setting the stage Traditional and option contracting techniques The GC/CM handle Statutory prerequisites Contractual courses of action Contracting steps The Public Hospital District (PHD) Project Review Board " The great, the awful & the revolting" Panel points of view

Slide 4

Setting the Stage Traditional strategy: "Outline, Bid, Build" Alternative strategy: GC/CM methodology

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Statutory Requirements Determine if the venture fits the bill for GC/CM system Value: over $10 million Complex booking; or Operation of existing office amid development; or Critical inclusion of GC/CM amid configuration stage Value: between $5 million and $10 million Authority for 10 showing ventures

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Statutory Requirements (cont.) Submit application to Public Hospital District (PHD) Project Review Board for endorsement Obtain preparatory and last assurance from PHD Commissioners (RCW 39.10.030) Public audit and remark

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Contractual Arrangements Public Hospital District Designer GC/CM Sub-temporary workers

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Responsibilities GC/CM Pre-development administrations Bidding the work Construction administrations PHD Design Project organization Financing

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Selecting the GC/CM Timing (ahead of schedule all the while) Designing and arranging Request for capabilities (RFQ) Pricing General conditions Fee just

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Setting the Price Guaranteed Contract Cost (GCC) Specified general conditions Maximum Allowable development cost (MACC) % charge X MACC GC/CM possibility Sales assess GCC bars Architect/Engineer (An/E) expense Furnishings, apparatuses and gear (FF&E) costs Other expenses commonly borne by Owner

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Bidding the Job GC/CM offers out all work Can offer in stages Can self-perform up to 30% of MACC Low offer Work usually performed Bid opening oversaw by PHD Notice of purpose to offer in broad daylight sales

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Changing the Work and Owning the Risk Change Order Owner's possibility Increases GCC "Group Change" Funds GC/CM possibility GCC unaltered

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Rewarding Good Work Incentive Clauses Up to 5% of the MACC (normally much lower than 5%) Paid out of possibilities at end Based on great administration by GC/CM

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PHD Project Review Board Approval Composition of load up Duties Determinations Policies and strategies

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Application Information Current venture add up to spending plan including Estimated development Costs for expert administrations, hardware, and outfitting costs Off-site costs Contract organization costs Other related venture costs Anticipated venture plan and development plan Summary of PHD's development movement for as far back as six years

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Application Information (cont.) Detailed clarification of why the PHD trusts the utilization of the GC/CM methodology is in people in general premium Detailed clarification of why the PHD is fit the bill to utilize the GC/CM technique, including a rundown of the important experience of the PHD's administration group

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An Owner's Perspective Likes Qualified contractual workers Pre-development administrations Guaranteed MACC Team approach Management of venture possibilities GC/CM's budgetary stake Dislikes Higher proprietor overhead costs More administration staff than with "Outline, Bid, Build" Higher An/E costs Management of venture dangers

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A Project Manager's Perspective Likes Method and venture coordinated Necessary administration aptitudes got RFQ and contract done effectively Value of GC/CM in pre-development administrations amplified Risks and possibilities oversaw Dislikes Incentives can be unsafe Advantages lost if not done well

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An Architect's Perspective Likes Qualified contract based workers Real incentive in pre-development administrations Teamwork diminishes question Dislikes Some expansion in An/E workload "Disparity" among GC/CMs

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Resources Washington Health Care Facilities Authority John Van Gorkom, Executive Director P.O. Box 40935 Olympia, WA 98504-0935 (360)753-6185 of the Superintendent of Public Instruction

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Legal Sources Contracting process for GC/CM – RCW 39.10.061 Composition, obligations, judgments and use of PHD Project Review Board – RCW 39.10.117 Authorization of showing activities – RCW 39.10.068(1)(b)

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Legal Sources Public survey after PHD Public Review Board endorsement – RCW 39.10.030 Other open works prerequisites include: Licensed or enlisted temporary workers – RCW Chapter 39.06 Bonded contractual workers – RCW Chapter 39.08 Payment of winning wages – RCW Chapter 39.12 Contract retainage – RCW 60.28.011

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Dan Chandler, PE 206-674-6103 Mark Henderson, AIA (206) 623-4646 John Lynch, PE (360) 902-7227 Dick Goldsmith (206) 216-2528 Questions ? Remarks?