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Updates

Ongoing & Upcoming Changes of Alternative Project Delivery Eric Kahlig Division of Construction Management OTEC 2014. Updates. IQE Two-Step Low-Bid DB I/D Changes Under Consideration…. IQE. Previously used Independent Quality Firm (IQF) Cleveland Innerbelt 1 Cleveland Innerbelt 2

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Updates

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  1. Ongoing & Upcoming Changes of Alternative Project DeliveryEric KahligDivision of Construction ManagementOTEC 2014

  2. Updates • IQE • Two-Step Low-Bid DB • I/D Changes • Under Consideration…

  3. IQE • Previously used Independent Quality Firm (IQF) • Cleveland Innerbelt 1 • Cleveland Innerbelt 2 • Columbus Crossroads • DB Projects – IQF performing oversight of quality of design and construction

  4. IQE • The Contractor must employ an Independent Quality Firm(IQF) who will be responsible for verifying and documenting: A. All The Work related quality data, B. All construction processes, and C. All construction progress for the Department Follow ODOT MOP and Spec for inspection – if nothing, industry standard

  5. IQE • Piloting Concept – Independent Quality Engineer • LUC-275-04.33 – PID 93604 • Reconstruction of I-75 • Under construction • Minor name change– differentiator needed • IQE vs IQF (DBB vs DB)

  6. IQE Role • Be an independent firm and must not be owned by the Contractor • Be responsible for the quality reporting, progress reporting, materials management • Have the authority and requirement to stop construction work if quality requirements are not being met • Shall perform the role of Inspector as defined in C&MS and ODOT Construction Administration Manual of Procedures and as additional defined by this Special Provision. • The IQE shall verify and document quantities placed, perform quantity calculations used to calculate payments, and shall compare and report plan vs. placed quantity discrepancies to the Department

  7. IQE - Intent • Current surge in District in project • Turnpike • Staffing levels – augmentation “like” • Signing further Quality role to Contractor • Innovation to Inspection & Reporting

  8. Contractor Role • Quality of the Work • Process Quality Control as required in any applicable ODOT QC/QA specification • Notifying and coordinating with the IQE • Notifying the IQE and the Department in writing by Thursday noon of each week of planned construction activities • Identifying and resolving any non-conforming items found by its quality control processes, the IQE’s verification processes, or the Department’s Quality Assurance processes • The Contractor must allow the IQE to perform its Quality inspection, testing, and reporting role regardless of schedule and costs to the project. • The Contractor must allow the IQE to suspend construction work as per CMS 104.02C, and reject material as per CMS 106.07 if quality requirements are not being met, regardless of schedule or cost.

  9. ODOT Role • Quality Oversight to validate and document the Contractor's Quality Control and the IQE's Quality Assurance processes • Conduct Department Quality Oversight Acceptance testing and inspection at the frequency determined in paragraph C; or if no frequency is specified, at approximately 10% of the IQE Testing • Independent Assurance reviews • Off-site Quality Assurance Acceptance of precast, pre-stressed concrete elements, structural steel, asphalt

  10. Process • Quality Management Plan – no work until approved • Management • Administration • Construction Requirements • Environmental Monitoring and Compliance • Design Change Control • Quality Checkpoints (QCPs)

  11. QCPs • Earthwork • Structures • Paving • Structural Steel • MOT • SWPPP • Drainage

  12. Documentation • IQE performing information entry and providing • ODOT approving all SiteManager entries • Payment verification process of approx. 10% • Significant errors = rejection of entire payment request until complete recalculation

  13. ODOT Rights • Suspend Work • Removals of Quality Management Personnel • IQE Removal for Nonperformance • All Work shall be suspended. All payments shall be withheld until IQE is established • Re-establish a QMP and verify the Work in place • Any delay due to removal of the IQE shall be considered a Non-excusable Delay. • Removal of IQE Staff Members

  14. Payment • Lump Sum bid item • 5% at QMP approval • (IQE LS Amount) X (%Paid to Date of Pay Items) • 5% Finalization • IQE compensated 3.5% for extra work

  15. Follow-up • Independent Evaluation being performed • Value • $ • Project Impact • Process Implementation • ODOT • IQE • Contractor

  16. ODOT DB Program • Two current processes • Low-Bid DB • Value-Based DB • To date • 198 DB projects awarded • 192 awarded using Low-Bid • 3 Utilizing Value-Based Scoring • Cleveland Innerbelt 1 & 2 • Columbus Crossroads

  17. Two-Step Low-Bid Process • Process • Advertise a Request for Qualifications • Scope of Services and Conceptual Documents • Selection Criteria • initial project understanding • key DB Project team members • proposer’s capabilities

  18. Pilots • Pilots • Ham 71 3.81 - MLK Interchange • $82 Million • SUM IR 0271 12.62 (Interstate Lane Add/Rebuild) • $65 Million • FAI-22-23.88 • $8 Million

  19. General Scoring Process • Offerors Respond • Impartial comparative scoring process • Shortlisting to 3 bidders

  20. Two-Step Low-Bid Design Build • Intended Advantages • Reduced overall effort of bidders • ODOT has most qualified DBTs • Competitive bidding environment continues • Final selection being only on Price • Disadvantages • Shortlisting on Qualifications – potential challenges • ODOT’s manpower for evaluation • Additional time to deliver (6 weeks approx)

  21. Variations • ATCs • Change to the Scope which provides a technical solution equal to or better than required • Stipends • VECPs

  22. “Informal” Feedback • One-on-One Meetings as requested • Shortlisted – Positive • Non-shortlisted – “Not so positive” • Why aint I qualified? • Why this project? • Do you know you are losing out on bidders?

  23. Overall ODOT View • Process Worked • Project Types Critical • Project Type over Size • ATC process effective • Time Consuming • Will be selectively used again

  24. Incentive / Disincentive • Per OAC 5501:2-7-1 “INCENTIVE/DISINCENTIVE CLAUSE" - is a contract provision which compensates the contractor a fixed amount of money for each day identified critical work is completed ahead of schedule and assesses a deduction for each day the contractor overruns the time allotted for the completion of identified critical work.”

  25. Incentive / Disincentive • PN121 • Daily Rate paid for time completed early • Daily Rate taken for completing late • “Intended to motivate the Contractor to complete the work or a critical portion of the work on or ahead of schedule”

  26. Incentive / Disincentive • In OAC • “Extensions of time will be for calendar days and calculated in accordance with C&MS 108.06 except…inclement weather…” • Buys Weather

  27. Incentive / Disincentive - CHANGE • OAC revised 8/31/14 • That no extensions of time be granted…for inclement weather unless the number of days lost due to weather conditions exceeds that which is normally anticipated for the contract period. • Duration must consider weather. • No longer buys ALL weather.

  28. Under Consideration

  29. CMGC in OHIO What is CMGC? • A Project Team consisting of three components: • An Owner • A Contract with a Designer • A Two Phase Contract with a General contractor • Phase one – “Construction Management” consulting contract to help with design • Phase two – “General Contracting “ contract to build the project

  30. CMGC in OHIO • Two Phase contracting method: • Part one –Construction Management • Part two –General Contractor • Part one: • Work with Owner, and Designer to design Project • Provide advice on Constructability, Schedule, Materials, Budget • When ready “Price the project” • Part two: Construction Contract – Build Project

  31. CMGC in OHIO • Contractor selected on qualifications • Pricing only with the one contractor • If pricing processes unsuccessful, then open bidding • Introduced 2014-2015 budget • Pulled • Resubmitted for pilots 2015-2016

  32. CMGC in OHIO Every Day Counts and MAP-21 • No longer requiring Special Experimental Project (SEP-14) consideration • Still considered Innovative – therefore allowed to be 100% federally funded per MAP21

  33. CMGC in OHIO Preliminary Legislative Highlights • Single pilot project • CMGC for preconstruction fee-based services • Negotiated fixed price, fixed unit prices, or guaranteed maximum price • All estimates within 10% to award construction • Out for bid if negotiated pricing not reached

  34. ATC

  35. ATC Definition A proposed change, submitted by the Bidder and approved by the Department prior to submission of a Bid, to the Project which provides a solution that is equal to or better than what is required by the Contract, as determined by the Department.”

  36. Comparison: DB w/ATCs versus D-B-B DESIGN-BUILD RFQ/RFP Stage Proposal Development Phase Design/Construction Stage Alternate Technical Concepts (ATCs) Shortlist Selection DESIGN-BID-BUILD Design Stage 4 – 6 weeks advertisement Construction Stage Value Engineering Change Proposals (VECPs) Advertise Bid/Award

  37. Objective • ATCs spur creativity, innovation and cost savings in design-build procurements • Introduce contractor innovation and cost savings to D-B-B, prior to the bid • ATCs are a FHWA Everyday Counts Initiative “Think a biddable VECP”

  38. ATCs in a D-B-B Procurement DESIGN-BID-BUILD Design Stage 6 – 8 weeks advertisement Construction Stage Value Engineering Change Proposals (VECPs) Alternate Technical Concepts (ATCs) Advertise Bid/Award

  39. How would it work? • During advertisement phase, contractor(s) propose(s) ATC(s) • Like DB, ATC is confidential • ODOT meets with contractor and rejects or approves ATC • If approved, contractor submits bid which reflects base bid price, minus a lump sum deduction for each ATC

  40. Accounting for ATC at Bid Stage As per the filed plans Base Bid (-) ATC(s) = Adjusted Bid Lump sum deduct, but with itemized and new quantities Contract awarded on the Adjusted Bid

  41. ATC in a D-B-B Procurement DESIGN-BID-BUILD Advertise Bid/Award Design Stage 6 – 8 weeks advertisement Construction Stage Award to Contractor with ATC ATC(s) accepted by ODOT Initiate Change Order to reflect ATC/quantity changes

  42. Issues to Resolve • Project Type • Timeframe • How much longer will this take? • Limitations on allowed types • Per VECP Policy? Or further limit? • Level of Detail needed to approve • No Stipend (probably) • Who owns the Intellectual Property? • Horsepower • Contractor’s/Designers and ODOT • How is it incorporated • THE BIG ONE!!!

  43. Pros / Cons

  44. Not Going Forward…. at this time.

  45. Under Consideration Design Build • Right of Way needs not fully known at bid • Amount of ROW impact depends on final design • Owner estimates needs • Owner acquires based on assumed design

  46. Under Consideration • Time = Money • Money = R.O.W • Time = R.O.W. • A+B Bidding • “B” = Time • “B” = ROW?

  47. DB + Property • Require the DBT to balance the value of ROW with the Cost of Construction • Project Award: • Overall Construction Costs + ROW = Lowest Bid • Result – More project costs are balanced by competitive bid process

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