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Home My WebLink AboutAgenda Packet - EVWD Board of Directors - 07/19/2018SPEC IA L BO A RD MEET IN G J uly 19, 2018 at 5:30 PM 31111 Greenspot Road Highland, C A 92346 AGE N D A C A LL TO O RD ER PLED G E O F A LLEG IA N C E RO LL C A LL O F BO A RD MEMBERS PUBLIC C O MMEN T S Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the D istrict C lerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of C alifornia Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. T he matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. 1.Design-Build Training REPO RT S 2.General Manager/C EO 3.Legal C ounsel Report 4.Board of Directors' C omments A D J O URN P urs uant to G overnment C o d e S ec tio n 54954.2(a), any reques t for a d is ab ility-related modific ation or ac commodation, inc luding auxiliary aid s o r s ervic es , that is s o ught in order to p artic ip ate in the above agendized public meeting should be direc ted to the District C lerk at (909) 885-4900. July 19, 2018 Progressive Design Build Ash Dhingra P.E.,S.E “TRADITIONAL PROCUREMENT” Design-Bid-Build (DBB) •Design to 100%, procurement (bid), and construction proceed sequentially •Construction contract awarded to lowest bidder based on completed plans and specifications Designer and Contractor are two separate entities Owner holds separate contracts with each Owner Designer Contractor Subcontractors DRAWBACKS OF TRADITIONAL DELIVERY •Owner holds all contracts –Owner in the middle of all disputes •Low bid can lead to contentious environment or low quality •Harder to attract qualified bidders in tight construction market “ALTERNATIVE” DELIVERY •Also known as integrated project delivery •Design-Build (DB) •Design-Builder is both engineer and general contractor •Typically design to 60% and begin construction •Contract pricing is set very early in project Owner holds single contract with one entity responsible for design and construction Designer and Contractor are one contractual entity Owner Design-Builder Subcontractors WHY DESIGN-BUILD? •Single point of responsibility •Eliminates conflict between designer and contractor •DB entity responsible for performance guarantees •Simpler and shorter best value procurement process •Encourages innovation in design and construction •Control of final construction cost, known upfront OWNER GETS OUT OF THE MIDDLE One Entity Guarantees Cost Savings •Price •Schedule •Quality •Performance •Benefits of true integration •Less design •Less construction administration MULTIPLE VARIATIONS OF DESIGN/BUILD Design Build Lump Sum/ Bid 2 Step/ Phased/ GMP/ Progressive COMPARING SEQUENCE OF A DBB VS DB PROJECT DBB Design Bid & Award Construction Construction Bid Price Unknown Until full design completion and Bid DB Pre-Design & Procurement Design Construction (begins as soon as GMP Fixed) Guaranteed Maximum Price (GMP) Fixed Earlyduring early design development True Construction Cost Unknown until change orders done and warranty issues resolved KEY FEATURES -PROGRESSIVE DESIGN BUILD •Planned early communication of schedule and budget restraints •Design to Price approach –set a firm budget for GMP. •“Off -Ramp” available to change to Design-Bid-Build •3rd party Owner’s Advisor ROLE OF A PROGRAM MANAGER •Impartial Expert •Technical Advisor •Complete Project Overview TWO STEP SELECTION PROCESS •In accordance with Assembly Bill 642 •RFQ •RFP •Selection Criteria •Best Value •Refinement of Scope of Work •Best and Final Offer SELECTION PROCESS FOR BEST DESIGN-BUILDER STEP 1 STEP 2 Release Request for Qualifications Release Request for Proposals Receive Statement of Qualifications (SOQ) Receive Proposals Review and Evaluate SOQ’s Review and Evaluate Proposals Interview Design-Builder Interview Design Builders Shortlist Design=Builders to Receive Request for Proposals Select Design Builder and Recommend for Contract Award Progressive Design-Build (PDB) •PDB relies on a collaboration between the Owner and Design-Builder with constant communications •Risks associated with the project are defined, assigned and controlled by the party having most control on that risk, some may be mutually shared •A Risk register is created for the project •Design-Builder bids project in packages to subcontractors or by trade and similarly bids for equipment from suppliers Owner Design/Builder Subcontractors ADVANTAGES OF PROGRESSIVE DESIGN-BUILD •Simple and inexpensive procurement process can be completed in a short timeframe •Project can be implemented in phases or task orders to save time or keep the project moving •Maximizes owner flexibility, involvement and control of the project PROGRESSIVE DESIGN-BUILD BENEFITS TO OWNER OTHER CONSIDERATIONS •Allows more effective owner input into the scope, features, and operational aspects of the design. •Shorter procurement process. •Potential for more bids. •Flexibility to complete work design to budget based on (available funding). •Better chance of adhering designing to budget. •Cost and schedule for construction are not fixed at the time of initial contract signing. •Procurement of long-lead equipment will be delayed until GMP agreement. PDB EXPEDITES SCHEDULE How does it happen? •Early equipment selection •Designing around specifics •Early work packages •Procuring while designing •Integrated team (design, construction and operations) •Reduced conflicts and interferences •Early stakeholder involvement •Owning the schedule DESIGN BUILDER BIDS PACKAGES •Clear & Grubbing and Mass Grading of Site •Long lead equipment packages •Pipelines •Concrete and Rebar •Mechanical and equipment •Electrical and Instrumentation & Controls •Civil and Sitework, fencing etc. •Buildings •Landscaping •Other Specialty Work WHAT’S IN A GUARANTEED MAXIMUM PRICE(GMP)? GMP is open book completely accessible to Owner Design Engineering Services to develop design to 60% level to develop a GMP Phase I Design Engineering Services to complete design to 100% and Engineering Services during construction Subcontracted work and equipment packages including long lead time items Project and Construction Management & Supervision, QC General Conditions based on construction duration Contingency & escalation to mid point of construction GUARANTEED MAXIMUM PRICE DELIVERY METHOD Savings Allocation Cost Overruns Overruns Allocation Cost Savings While the owner keeps most of the savings, a portion is reserved for the design-build team as an incentive. If the DB actors share the overruns, an upper limit normally exists for the A/E’s cost liability. Constructor e.g. 90% A/E e.g. 10% Owner Constructor Architect/Engineer SUMMARY •Progressive Design-Build was recommended •Single point of responsibility •Promotes greatest level of innovation with the schedule benefits of design-build •Greater staff involvement in process and equipment selection as well as operational controls •Control of budget and collaboration to achieve best value RECENT WATER DESIGN BUILD COUNCIL MARKET STUDY •The median schedule growth after contract award for DB projects is half as large as the schedule growth for DBB projects •DB projects finish on or below contract price twice as often as DBB projects •Contracts using guaranteed maximum prices (GMPs) are more likely to have no schedule or cost growth as compared to projects with lump-sum contracts •There is no significant difference in constructed quality between design-build and design-bid-build projects For more information: www.waterdesignbuild.org