Program Management
for School Construction
Pasadena Unified School District
Board of Education
Presented to:
Project Delivery Options
•
Design – Bid – Build
•
Design/Build
•
Construction Management At-Risk
•
Agency Construction Management
–
Multi-Prime
–
General Contractor
Design-Bid-Build
•
Definition
–
Architect completes design
–
Contractors submit sealed bids
Design-Bid-Build
• Three key parties involved
• Contracted directly to District
• Does not participate in design
• Responsible for means,
methods & sequence of work • Hired directly by the District
Design-Bid-Build
•
Advantages
–
Widespread use and familiarity
–
A
perceived
fairness in the process
–
Competitive construction number
Design-Bid-Build
• Disadvantages
– Subject to market demand/availability/cost escalation
– Lengthy process
– Potential adversarial relationship between District and contractor
– Cost unknown until bids finalized – no GMP (GMAX) – Low bidder potentially undesirable
– Intensifies the potential for change orders – Fast track option not available
Design/Build
•
Definition
–
A contractor, architect, hybrid, or other
Design/Build
DISTRICT
DESIGN/BUILD ENTITY
VENDORS SUBCONTRACTORS SUPPLIERS
• District contracts with
a single entity
• May be a single firm
• Can be joint venture or a contractor with A/E as sub
• Holds all contracts
• Responsible for means, methods, techniques and sequence of
Design/Build
• Advantages– Single source contract to complete both design and construction
– Early cost and schedule control of project
– Reduced overall project duration
– Reduced change order liability to District
– Fast track option available
– Potential to reduce complex claims exposure
Design/Build
• Disadvantages– Complexity of structure, especially in the Public Sector
– Either design or construction could suffer if the right team is not assembled
– Potential adversarial relationship
– Potential to limit District/Design Team communication
– Potential loss of District control over project
– Cost savings could erode quality of design
Design/Build
• Disadvantages– If bridging is used, continuity of design and additional costs could be a potential problem
– If bridging is used, many advantages of early-on quality, schedule and cost control are eliminated
Construction Management
At-Risk
•
Definition
Construction Management
At-Risk
DISTRICT
ARCHITECT-ENGINEER CONSTRUCTION MANAGER AT-RISK SUBCONTRACTORS• Assumes risk through GMAX
• Responsible for means, methods, techniques, and sequence of construction
• Holds all subcontracts
• All Construction monitoring
• District contracts separately with Architect and CM At-Risk
Construction Management
At-Risk
•
Advantages
–
District benefits by involving expertise
during most phases
–
Early knowledge of cost and schedule, and
control of same via a GMP/GMAX
Construction Management
At-Risk
• Disadvantages
– CM cost to District (similar or greater in cost to a GC) with no real CM advantages (potential
conflict of interest)
– Potential adversarial relationship between District and CM at-risk
– Reduced ability of District to control quality and limit change orders
Agency Construction Management
•
Definition
–
CM contracts with a District in a
relationship of trust to manage and
oversee the design and/or construction
process
–
CM holds no sub or prime contracts, and
manages either a general contractor or
multi-prime trade contractors
OWNER
District
TRADE TRADE CONTRACTOR(S) CONSTRUCTION MANAGER ARCHITECT -ENGINEER ARCHITECT -ENGINEERAgency Construction Management
• District contracts separately with Architect and CM
• All trade contract(s) are directly with District
• Has ultimate authority over trade contractor
• Acts as agent of District in a fiduciary role
• Provides team leadership during design and/or construction
• Loyalty only to District and project delivery
• Provides efficient business administration and superintendence during construction
• Recommends District action(s) as appropriate
• Main Source of project information • Responsible for means,
Agency Construction Management
•
Advantages
–
Affords design and construction expertise
to the District without conflict of interest
–
Multi-prime contracting option available
–
Cost and schedule control potential early in
the process
–
Eliminates or reduces certain fees in
completing the project (multi-prime)
Agency Construction Management
•
Disadvantages
–
Could duplicate in-house expertise
–
No guaranteed pricing (GMP) early in the
process
–
CM not driven by risk
Program Management
•
Definition
Program Manager contracts with a District that is
undertaking a multi-project (usually $100M plus) Capital Facilities Improvement Plan
Program Manager can assist District with funding
District
TRADE CONTRACTORS CONSTRUCTION MANAGER(S) DESIGN DISCIPLINESProgram Management
District• District contracts separately with Program Manager, Design
Disciplines, CMs, and Trade Contractors (CM services can be part of the Program Managers contract)
• District has ultimate authority over Trade Contractors
Program Manager
• Ties multi-projects and all
aspects of Program together to achieve a smooth and efficient process
• Could also be the CM,
however, CM often contracted separately by the District
Construction Manager (s)
• Acts as agent of District in a fiduciary capacity
Trade Contractors
• Responsible for means, methods, techniques and sequence of
construction
Program Management
•
Advantages
Enables District to view Program as a singular
process
to the ultimate cost, schedule and quality benefit of District Can provides the advantages of Agency
Construction Management (see previous section)
Extends and trains District staff without the
burden of hiring new full-time employees
Program budget and schedule determined early
in the process
Program Management
•
Disadvantages
Could duplicate some in-house expertise Same disadvantages as Agency CM
(see previous section)
Cost ineffectiveness could be an issue when in
