Post on 28-Feb-2022
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Agenda
Description of Central 70 Project Who are Kiewit-Meridiam Partners Description and benefits of the Design-Build Delivery
Method Guiding principles, tools and processes for estimating Group exercise - mock estimate/bid Bid results Bidding strategies and philosophies Design Management / Review Process KMP process moving forward
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Central 70 Project
Wideningw/ mill and overlay
Quebec to Chambers~5 Miles
Colorado to Quebec~2 Miles
Brighton to
Colorado~1.5 Miles
I-25 toBrighton
~1.25 Miles
Full ReconstructLowered SectionRestripe
O&M Limits Beyond
Construction
Chambers to Tower~2.2 Miles
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Team Organization
Equity MembersDeveloper
Project Agreement
Lead Contractor
Lead Engineer
Lead Operator
DB Contract O&M Contract
Interface Agreement
Design Sub
Life cycle responsibilities
60%
40%
Self-Perform
Design Contract
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Who is meridiam?
Meridiam: A global investor and asset manager Has a business model built exclusively on
equity financing of projects Meridiam develops, finances, builds and
manages various types of projects:• Transport infrastructure• Social infrastructure• Public buildings• Utility networks and services
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Who are PB, Jacobs and Jorgensen
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Who is Kiewit?
One of North America’s largest and most admired engineering and construction companies
Consistently among the top 10 of Engineering News-Record’s Top 400 Contractors
FORTUNE 500 company with revenues over $9billion
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International Presence but Locally Centered
Central District
Heavy Civil• Mass grading• Drainage• Bridge construction• Paving• Rail
Current Local Projects• I-225 Rail Line• Denver VA Medical Center• US 34 Permanent Repairs• WISE Water Treatment• RiNo IC Contract
Kiewit Building Group
Commercial Buildings• Medical Office Buildings• Special Use Facilities• Higher Education• Office
Current Local Projects• I-225 Rail Line• Denver VA Medical Center• Olde Town Transit Hub• SCL Hospital Aurora• SCL Hospital Northglenn• UCCS
Mass Electric
Transit /Light Rail • Signal, overhead contact
systems (catenary)• Traction power• Communications systems
Current Local Projects• I-225 Light Rail• RTD On Call Services
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Why Do a Workshop?
Market is trending towards Design-Build Project Delivery Method
87% of Kiewit’s current backlog of work are Design-Build Projects
We need subs/suppliers to work with us on these projects
We want to provide training to help small subcontractors build capacity to become more competitive
We have received feedback that subs/suppliers are not comfortable with Design-Build estimating
Goal - Understand the Design-Build estimating and bid process
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What is a DBFOM?
Overview• DBFOM: Design Build Finance Operate and Maintain • CDOT maintains ownership of the Project
• All aspects of procurement are transferred to the private sector
• During Construction, the Developer is paid milestone payments for a portion of construction costs
• Over the remaining life of the Project, the Developer is paid performance payments (i.e. fixed yearly fee)
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What is a DBFOM?
Benefits• Single point of procurement• Budget certainty for the State: CDOT knows exactly how
much the payments are for the life of the Project • Workforce Opportunities: The Developer will utilize many
services from local businesses and provides hundreds of jobs over the 30 year term
• Cost Certainty: The Developer has increased responsibilities for design, construction, maintenance, and rehabilitation limiting the risk of cost overrun
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Team Organization
Equity MembersDeveloper
Project Agreement
Lead Contractor
Lead Engineer
Lead Operator
DB Contract O&M Contract
Interface Agreement
Design Sub
Life cycle responsibilities
60%
40%
Self-Perform
Design Contract
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Types of Project Delivery Methods - DBB
Traditional - Design Bid Build• Separate design and construction firms• Projects are fully designed before released for bid• Bids are on known scope of work• Construction schedule already determined
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Types of Project Delivery Methods – DB
Design-Build• Design-Build: a single entity is responsible for both designing
and building the project• Projects are designed to initial levels usually 30%• Bids are made on projected design• Construction schedule determined as design is developed
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Why Do Owners Use Design Build?
Benefits Risk/DisadvantageTraditional Design-Bid-Build
• Orderly progression of work• Multiple, competitive procurements• Substantial design control by Owner
• Increased project delivery time• Final total cost uncertainty• Multiple contracts managed by Owner
Design-Build
• Faster completion schedule• Project risks assumed by design-
builder • Innovation through designer /
constructor cooperation•Cost savings - constructability and
value engineering• Improved Quality and Project
Performance – schedule and budget
• Limited design control by Owner• Fixed project definition early
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Design-Build Estimate – Tools / Processes
Know what you are estimating Have the plans and a clear understanding of the scope Have your estimating data ready
• Direct labor costs / labor escalation• Staff / overhead / office – storage • Insurance / contingency / bonding• Material pricing / escalation / sales tax• Risk analysis• Equipment pricing / taxes• Fuel / taxes• Other subcontractors
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Estimating / Bid Exercise
Estimating Wall at 30% Design• As a team develop estimate• Drawings and takeoffs provided• Pre-Bid Meeting after 15 minutes• Use provided sample estimating reference information• Submit Bid in 55 minutes!
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Estimating / Bid Exercise
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RFC Drawing Review / Estimate Review
What additional/different questions would you have asked at the pre-bid conference?
Did you miss something?Did you include items you did not need?Did you include the appropriate amounts for
• Contingency• Escalation• Profit
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Bidding Strategies / Philosophies
Bid from accurate past costs Best value vs. low price Risk sharing Escalation – tied to applicable indexes Early procurement of materials or equipment Knowing the market
• How much fee to apply• How many other bidders there are• Who is your competition
Bring your Resume – sell yourself• Safety record• Quality program• Schedule performance history• Tenure of team• Level of commitment to job
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Design Management / Review Process – Post Bid
Design review process Constructability reviews Attend pre-bid meetings and open houses Attend task force meetings with Designer+Owner+City+GC
• Provide input that will facilitate your work Provide comments on drawings and specification
progress packages at 60% and 90% Review quantity takeoff of drawings to ensure design
growth is controlled Review specified products to ensure you budgeted for
them Provide pricing for change orders
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CDOT’s Current Project Schedule
Financial Proposals Due, July 2017
Technical Proposal Due, May 2017
Final RFP, March 2017
ROD, January 2017
Fourth Draft RFP,October 2016