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(1)

iowa school construction

best practices

(2)

WHAT IS A DELIVERY METHOD?

carl a. nelson and company

A delivery method is a way of

assigning authority and responsibility

to move a project from an idea to a

(3)

DELIVERY EVOLVING OVER TIME

• Master builder until early 20th century • Technology and specialization lead to

design-bid-build

• Perceived corruption in public sector leads to laws

• No sharing of information or collaboration during design between design and construction professionals

• 1980’s: Owners demanded alternatives to the design-bid-build method

(4)

DELIVERY METHODS

• Design-Bid-Build

• Construction Manager Agency

• Construction Manager at Risk

• Design-Build

(5)

IOWA LAW FOR PUBLIC ENTITIES

NOT ALLOWED

• Design-Build

• Construction Management at Risk

ALLOWED

• Design-Bid-Build

• Construction Management Agency

(6)

DELIVERY METHODS

Owner

General Contractor Designer Subcontractors

Design-Bid-Build Construction Management Agent

Owner

Trade Contractors Construction Manager Designer

Owner

Design-Build

Design-Builder

Subcontractors Designer

Owner

Construction Manager Designer Subcontractors

Construction Manager at Risk

(7)

TYPICAL DIVISION OF PROJECT ACTIVITIES FOR PUBLIC PROJECTS

Design-Bid-Build General

Contractor Construction Manager ContractorsTrade Qualification Based Competitive Bidding

Solicit, Receive & Evaluate Contractor Bids & Make Recommendations

Coordinate & Manage Development of O&M Manuals and As-Built Drawings Construction Manager Agent

Activity Selection Method Available

Preconstruction Services

Program Management Designer Selection

Develop & Manage Project Budget Develop & Manage Time Schedule Value Engineering Analysis

Constructability Review & Input Develop Bid Packages

Construction Services

Project Management

Manage Project Budget Including Change Order Management Manage Time Schedule

Organize & Manage Project Information Flow Document Construction Process

General Site Safety Management

Review & Coordinate Trade Contractor Shop Drawings Obtain Building & Occupancy Permits

General Construction Supervision

Direct & Coordinate Construction Activities Provide General Construction Requirements

Provide Construction Equipment Craft Labor

Monitor & Manage Quality of Work

Coordinate Independent Testing & Inspection Trade Supervision

Purchase Materials

(8)

WHAT DELIVERY METHOD IS BEST?

Cost 6.1% lower 1.6% lower 99%

Construction Speed 12% faster 5.8% faster 89%

Delivery Speed 33.5% faster 13.3% faster 88%

Metric vs.Design-Bid-BuildDesign-Build Design-Bid-BuildCM vs. Level of Certainty

Copyright 1999, Dr. Victor Sanvido and Dr. Mark Koncer The Project Delivery Institiute

Penn State University

(9)

WHAT DELIVERY METHOD IS BEST?

• Collaboration results in optimal design

• Early team creation allow maximum cost influence

• Constructability reviews - less changes

• Fast track of design and construction

(10)

WHAT WE CAN DO...

Since Design-Build is not allowed on public projects in Iowa, the goal

should be to replicate the Design-Build delivery method with the Construction Management Agency process.

Benefits

• Lower Cost

• Schedule Control • Reduced Risk

• Maximum Local Contractor Participation

(11)

CONSTRUCTION MANAGEMENT BENEFITS

• Lower Cost

− Works with the designer to produce best design and construction solutions

− Provide cost information during

design process for Owner

confidence in decisions

− Constructability review during design

− Cost savings due to design collaboration

− Reduction in change orders

(12)

CONSTRUCTION MANAGEMENT BENEFITS

Pre-construction Services Impact on Project Cost

(13)

CONSTRUCTION MANAGEMENT BENEFITS

WATER-COOLED

CHILLER AIR-COOLEDCHILLER

ORIGINAL DESIGN CARL A. NELSON

RECOMMENDATION

carl a. nelson and company

CAPITAL SAVINGS: $140,000

ESTIMATED OPERATIONAL SAVINGS:

(14)

CONSTRUCTION MANAGEMENT BENEFITS

services

BUDGET VS. BID EXPERIENCE: AVERAGE 2.9% BELOW BUDGET

BID VS. ESTIMATE $-$5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 Wash ington Coun ty Hos pital Jeffer son C ounty Hos pital Commu nity H ealth Cente r - W B Wash ington Public Librar y Wash ington C ommu nity H igh Sc hool Commu nity H ealth Cente r - CJ Davis Coun ty Hosp ital Deca tur Co unty H ospita l Henry Count y Hea lth Ce nter JCH MOB Addit ion Regio nal M edica l Cen ter Fairfie ld CSD High Scho ol Add ition Wash ington CSD A udito rium Wash ington P resch ool/C hildc are PROJECT Estimate Bid

(15)

CONSTRUCTION MANAGEMENT BENEFITS

• Schedule Control

− Overall schedule for project

∙ Design

∙ Owner review

∙ Permitting

∙ Long lead times

∙ Construction

∙ Building commissioning

∙ Owner move-in

(16)

CONSTRUCTION MANAGEMENT BENEFITS

• Reduce Risk

− The best people produce the best results

∙ Specific people who will manage the

project

∙ Track record for successful projects

∙ Schedule performance, cost control,

quality control

∙ Partnering skills

∙ Safety performance

− The construction manager is accountable to the Owner only - no competing interest

(17)

CONSTRUCTION MANAGEMENT BENEFITS

• Get maximum local participation − Tailor packages to suit local capacity and capabilities

∙ Local contractors will

take pride in the work

∙ Will buy locally

∙ Use local labor

(18)

carl a. nelson and company

(19)

carl a. nelson and company

Dan Culp

Director of Business Development, Project Executive

B.S. Construction Engineering, Iowa State University 27 Years Total Construction Experience

21 Years with Carl A. Nelson & Company Contact Information:

dculp@carlanelsonco.com office: 319-754-8415

direct dial: 319-753-8784

References

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