AASHTO SCoC 2007AASHTO SCoC 2007

Tools for Making Decisions in Project Selection and DeliveryTools for Making Decisions in Project Selection and Delivery

Sid Scott, P.E.Trauner Consulting Services, Inc.

Hosted by MDOTJuly 29 - August 2, 2007

Beau Rivage Resort, Biloxi, Mississippi

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OverviewOverview

TrendsCaltrans Innovative Procurement Program• Project Delivery Systems• Decision Drivers for Project Delivery• Selection Tools

Lessons LearnedResources

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DOT RealityDOT Reality

High attrition (loss of experience)Limited resources (changing environment)Growing funding gapChanging capital programsPublic expectations

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Project DeliveryProject Delivery

Overall process by which a project is:Designed, Constructed, and/orMaintained, Operated, Financed

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Project Delivery SystemsProject Delivery Systems

Design-Bid-Build (Traditional)Innovative Alternatives (Caltrans):• Design Sequencing• CM @ Risk • Design-Build

• Low Bid• Best-Value

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Project Delivery SystemsProject Delivery Systems

Design-Bid-Build ID/IQ

Design-Build

CM at-Risk

Public Sector Model: Private Sector Model:• Separation of Services for Design and Construction

• Owner retains risk of performance

• Single Entity provides Integrated Services

• Design• Construct• Operate• Maintain• Finance

• Contractor assumes greater risk of performance

AlliancingDesign-Sequencing

Public-Private PartnershipsAgency CM

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Decision Drivers for Alternative Project DeliveryDecision Drivers for Alternative Project Delivery

Accelerate DeliverySingle Point ResponsibilityReduce Owner StaffingEarly Cost CertaintyReallocate riskMinimize impacts to publicPotential for lower costs or lower maintenance (Life Cycle Cost)Increase qualityInnovate

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Design-Bid-BuildDesign-Bid-Build

Design must be 100% complete to begin constructionOwner can best manage risk (third party coordination, etc.)Prescriptive specifications

Well established and understoodClearly defined rolesSuitable for competitive biddingNo legal barriers in procurement

Owner

Designer Constructor

Advantages

Project Criteria

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Design SequencingDesign Sequencing

Linear projects or repetitive design featuresConcurrent design and construction possibleMinimal third party issues

Fast-tracking (early construction)

Owner

Designer Constructor

Advantages

Project Criteria

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CM at-RiskCM at-Risk

Complex projects with multiple phasesLimited time or funding constraintsProjects that are difficult to define or subject to change

Transfer construction cost/performance risks to CM (GC)Opportunity for fast-trackingGMP w/ shared savings provides incentive to control cost/time

Owner

Designer CM

Advantages

Project Criteria

Sub Sub Sub

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Design-Build (Low Bid)Design-Build (Low Bid)

Small to medium projectsMinimal third party (ROW, utility) complicationsTime sensitive (user impacts)Greater design detail (more prescriptive specifications)

Accelerate (fast-track) deliverySingle point responsibility for final design, construction, and other services

Owner

Design-Builder

Advantages

Project Criteria

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Design-Build (B-V)Design-Build (B-V)

Medium to large projectsOpportunity for innovation Time sensitive (user impacts)Less design detail (scope can be defined using performance requirements)More time/cost for procurement (two-step)

Accelerate (fast-track) deliveryEarlier cost and schedule certaintySingle point responsibilityMore risk allocated to D-BuilderPotential for innovation and reduced life-cycle $

Owner

Design Builder

Advantages

Project Criteria

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Project Selection Decision ToolProject Selection Decision Tool

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Project Selection Decision ToolProject Selection Decision Tool

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Worksheet 1Worksheet 1

Align project characteristics with project delivery objectives or drivers

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Project Scope ScorecardProject Scope Scorecard

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Project Selection Decision ToolProject Selection Decision Tool

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Worksheet 2Worksheet 2

Align project success criteria with project delivery objectives or drivers

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Success Criteria ScorecardSuccess Criteria Scorecard

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Project Selection Decision ToolProject Selection Decision Tool

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Lessons LearnedLessons Learned1. Alternative delivery methods not appropriate for

every project2. If used for the right project, alternative delivery

methods can help achieve project goals• Reduced Cost• Accelerated delivery• Innovation• Enhanced quality/performance

3. Systematic decision making improves potential for success

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Additional ResourcesAdditional ResourcesNHI Course No. 134058 – Alternative ContractingFHWA Websites:• Program Administration

• http://www.fhwa.dot.gov/programadmin/contracts/• Alternative Contracting Community of Practice

• http://knowledge.fhwa.dot.gov/cops/hcx.nsf/home?openform&Group=Alternative%20Contracting

• National Highway Specification Website• http://www.specs.fhwa.dot.gov

The Fifth Edition of the AASHTO Primer on Contracting for the 21st Century

• http://construction.transportationAASHTO D-B Taskforce website http://designbuild.transportation.org/?siteid=63

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Additional Resources (cont’d)Additional Resources (cont’d)

Caltrans Innovative Procurement project websitehttp://construction.colorado.edu/Caltrans-Ipp/Desktop.aspx?tabId=5

Representative alternative contracting websites

• Florida DOT http://www.dot.state.fl.us/construction/altcontract.htm

• North Carolina http://www.ncdot.org/doh/preconstruct/altern/design_build/default.html

• Oregon DOT http://www.oregon.gov/ODOT/HWY/OPD/DBprojects.shtml

• Virginia DOT http://www.virginiadot.org/business/design-build.asp

• Washington State DOT http://www.wsdot.wa.gov/Projects/delivery/alternative/

• Minnesota DOT www.dot.state.mn.us/const/tools/innovativecontract.html

• Arizona DOT http://www.azdot.gov/Highways/ConstGrp/DesignBuildGuide.asp

AASHTO SCoC 2007AASHTO SCoC 2007

Questions?

Sidney Scott, P.E.Trauner Consulting Services, Inc.sid.scott@traunerconsulting.com