PowerPoint Presentation

Getting the Biggest Bang for Your Building Bucks through Professional Construction Management

Creating The Infrastructure For Tomorrows Education

September 20, 2014Kissimmee FL1OverviewWhat, Where & Why use Construction ManagementThe ChallengeSchool Building ProcessStandards of PracticeCertified Construction ManagersBenefits of a CMProofs and Examples

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72Non-profit formed in 1982 for the Construction Management industry. 12,500+ members:CM/PM practitionersCorporate membersOwners: public and privateAcademic and associate members 2,300+ Certified Construction Managers.29 regional chapters and 48 student chapters at colleges and universities nationwide.

National experts in K-12 facility assessment, planning and program management 200 K-12 clients

60 large urban school clients

$30 billion in construction

#3 in Education (Engineering News Record)

K-12, By the Numbers

LAUSD Bond Program History Decades of Unmet School Needs From 1980 to 2002, Enrollment Grew by More Than 200,000 Students.Prior to 1997, the Last Local Bond Was in 1963 -- A 34 Year GapOvercrowding Was Addressed By:Placing Portable Classrooms At Schools Reduced Playspace and Parking Areas, Created Line-of-Site Challenges Instituting Multi-Track Calendars Some Schools Had 17 Less Days Of Instruction227 Multi-Track Schools in 2002-2003; 188 of Which Were Concept 6 Schools Involuntarily Busing Students Across The District 111 Schools Required Involuntary Busing in 2002-2003

Enrollment Increase Accelerated Deterioration of Aging School Infrastructure.

History of LAUSD Bond Program FundingFirst Phase of Program Proposition BB - 1997 $2.4 Billion

Measure K - 2002 $3.35 Billion

Measure R - 2004$3.87 Billion

Measure Y - 2005$3.985 Billion

Leveraged ~$12 Billion of Local Funding Targeted for Projects Executed by the Facilities Services Division into a $19.5 Billion Program

Delivered So FarFirst Phase of Program

130 new school projects and 372 additional projects within the New School Construction Program.Provided more than 164,000 new K-12 seats.Approximately 23,000 Projects Completed under Repair & Modernization Program.Eliminated Multi-Track Calendar Operations.Eliminated Involuntary Busing.Achieved implementation of full-day Kindergarten at 475 schools that contain a kindergarten curriculum.Completed 181 out of 184 charter facilities projects.Completed all 31 early education center expansion projects.

7Despite Nearly $20 Billion of Investments, Billions of Unmet Capital Needs RemainFor the Past 17 YearsWeve Been Making Up for Decades of NeglectThe Emphasis of the Bond Program Has Been on New School ConstructionHoweverOvercrowding has Severely Increased the Wear and Tear of Buildings and Decreased Their Life ExpectancyOperational Funding for Deferred Maintenance Does Not Keep Up With Capital NeedThe Vast Majority of Students Attend School in Legacy Schools

There Is Still More Work To Be DoneFirst Phase of Program8Initiating Next Phase of the Bond Program 2008 -- $7 Billion School Construction Bond, Measure Q ApprovedDue to Nationwide Economic Downturn, Until Recently District was Unable To Initiate Next Phase of Bond ProgramConstrained by an Inability to Issue Bonds, District Has Focused Efforts on Assessing the Conditions of our School Facilities

Completed Capital Needs Assessment and Planning EffortFacilities Condition Assessment in Progress

$7,852,970,000 Allocated to Support Development of New Projects Under School Upgrade Program

9What is Construction Management? A professional service that applies effective management techniques to the planning, design, and construction of a project from inception to completion for the purpose of controlling time, cost and quality.Construction Management is a discipline and management system specifically created to promote the successful execution of capital projects for owners.

Why Use a Professional CM?Promote communication and understanding for everyone involved the project.Help bring projects in on schedule, within budget, environmentally compliant and at appropriate quality.

Reconcile the scope of work to the budget.Manage overall budget and schedule conformance.Manage procurement and quality control for multiple projects.Manage M/WBE participation program.Coordinate technology program.

Anticipate, avoid and resolve potential problems.School Building ProcessPrimary components of School Construction: Determining the NeedDefining ProjectsAcquiring Project SitesCEQA/Environmental AssessmentDesigning ProjectsConstruction & School Opening

Each of the require unique expertise and must be orchestrated diligently to achieve success, and maximize the contribution of state, local and federal funds.

School Building ProcessThe typical duration of a new school project ranges from four to six years

School Building ProcessThe ChallengeNeed Expert knowledge.Specific experience and trained professional is required.Workload is fluctuating .Scope of work is specific to a project or the program.You are in the schools business, not the construction business.

Whether in-house or outsourced, professional construction management can help.

Most Common ApproachAEs hired and work beginswithout first developing a comprehensive plan for entire program.?$BrainStormingProgramS i t eScope StandardsDesign StandardsEquity StandardsPrototypesScope to Budget Exercise16Opportunity CurveTimeSavingsPotentialStart Up PreconstructionProcurementConstructionProgramming and Start-upEstablish BaselineScope BudgetsSchedule

More than ConstructionGetting it Right 17Where CMs Add ValueUpfront PlanningFinancial/Funding StrategiesCommunity Outreach Program ControlsDesign (Preconstruction)Procurement and DeliveryConstructionProject CloseoutO&M

Why Use Construction Management Firms? Expert knowledge is not present in the District.District recruitment process is not meeting the requirements:Process takes too longDistrict salary rates are not able to attract qualified candidatesFirms recruit nationwide for top candidates.Reductions in consultant staffing do not require long, tedious, and detrimental must place process necessary for District employees.Avoids placing the fiscal burden on the District of permanent District employees who will require funding for the length of their career.Consultants provide corporate level support and training at no additional cost to District.Requirement is not long term or permanent (cyclical nature of the work).Tight budgets and funding requires innovation to maximize purchasing.Aggressive scheduling requires faster turnaround time.District requires assistance beyond design and construction help, e.g. standards, FFE, move management, training of maintenance staff, etc.19TheManaged by Construction Manager Certification Institute (CMCI), an affiliate of CMAA, the leading organization for certifying professional CM/PM.Accredited by American National Standards Institute (ANSI) under the International Standard Organizations (ISO) 17024 standard.Endorsed by the Construction Industry Institute (CII), University of Texas: A value adding credential for those in responsible charge of major phases of capital projects.Currently +2,200 CCMs, with roster growing rapidly.

Program

Certified Construction Managers

Have demonstrated mastery of the Construction Management Associations (CMAA) Standards of Practice and the Construction Industry Institutes (CII) Best Practices Guide.Proven their leadership and competency through responsible-in-charge experience.Must keep their skills and knowledge fresh through recertification.Deliver the benefits of industry-standard services on every job.Provides owners with an objective assurance of knowledge skill and abilities.

Project ManagementCost Management Time ManagementQuality Management Contract Administration Professional PracticeSafety & Risk ManagementAlso includes the Best Practices (IR166-3)

Standards of Practice

22So what does the exam cover? The eight topics above.Beyond the StandardsCCMs are also tested and expected to maintain knowledge in:Infrastructure SustainabilityReducing environmental impactOptimizing economic viabilityBuilding Information Modeling (BIM)

Scope-to-budget verification and why it is important?Assisting in site selection.Developing phasing plans for working in occupied space.

1. Upfront Planning:The Right Start for a Successful FinishProject Timeline Decision ImpactDecisionsCostsDecision Cost CurveThe Later the Decision, the Higher the Cost!CONSTRUCTIONPLANNINGDESIGNBenefits of CM, Step by Step2. Financial/Funding StrategiesBudget validation whats missing?Cost modeling of total project hard and soft costs.Financial analysis/scenario development.Assistance with State Funding Applications or Matching Grants.

Benefits of CM, Step by Step3. Community OutreachAssistance in consensus building.Manage communications plan:Project web siteTown Hall meetingsRegular updates to principals, staff and business and community leadershipDevelopment of local and minority businesses.Good Communication Builds Trust Public Trust Helps Win the Next Bond CampaignBenefits of CM, Step by Step

4. Program ControlsUsing project control systems for more than cost and document tracking.Web-based capabilities for broad-based progress and status communications.

Benefits of CM, Step by Step5. Design (Preconstruction)Design Reviews/Quality Assurance.Constructability/ Phasing.Design to Budget.Stakeholder Alignment.BetterDesignDocumentsFewerConstructionIssuesLowerProjectCosts==Benefits of CM, Step by Step6. Procurement and DeliveryLabor agreements and Labor relations.Permitting and Plan check support.Bundling and bulk purchasing.Outreach to develop market interest.

Grows Resource Base and Assures Quality Delivery of ProjectsBenefits of CM, Step by Step

7. ConstructionSafety & Risk ManagementChild Safety ProgramsCIPEducation/TrainingPro-active ManagementAlternative delivery methods for specific projectsDesign/BuildAt-Risk or Turnkey DeliveryJob Order Contracting (JOCs)Pro-Active Site ManagementProject first with respect to issue resolutionMaintain clear communications between all stakeholdersIncentive $$ based resolution programs rewards zero claims

Benefits of CM, Step by Step8. Project CloseoutEnhancing Project CloseoutStart planning closeout strategy before design startsRequiring a detailed schedule of closeout tasksBreakout detailed schedule for each closeout activityMaintain a dynamic, cost-loaded Incomplete Work List from start of constructionSmooth Transition to District MaintenanceBenefits of CM, Step by Step

9. CommissioningAssistance with placement of staffProviding interim staffTraining for O&M personnelExtended OEM warranties and service agreements

Benefits of CM, Step by StepTestimonial

Raju Kaval, CCM, DBIADirector of Program Support Services Los Angeles Unified School DistrictThe $26 billion new school construction and modernization program of Los Angeles Unified School District (LAUSD) is the largest school construction program in the nations history. Since 1997, LAUSD has been utilizing Construction Management (CM) Firms to augment District staff to support this School Construction Bond Program. The timely access to industry expertise through the CM firms has proven to be crucial and essential for the operation of this program. CM firms have been supplementing the LAUSD staff with expert CM professionals for continued success of this program. More than 100 CM Firms participate in LAUSDs Bond Program. CM contracts have been re-procured several times over the course of the Bond Program. In the recent re-procurement of CM contracts the criteria used to evaluate the proposals included CM Firms commitment to achieve Certified Construction Manager (CCM) credentials for their employees. The RFP also required the firms to list the number of candidates with CCM credential that the firms have provided to other public agencies during the last two years. LAUSD requires a valid CCM credential for many positions filled by CM firms and also allows candidates with valid CCM credential to substitute the certification for minimum education qualification i.e. bachelors degree in engineering or construction management required for applying for positions filled using District employees. LAUSD strongly agrees that the value of certification shows the independent assessment of candidates knowledge and skills and assurance of competency and adherence to ethical standards. LAUSD believes that the construction managers with CCM credentials, protects the interests of the project and the owner.Example Request For Proposal

Example Request For Qualifications

Committing to the FutureHaving a Certified Construction Manager lead your project increases the chances for:

Reduced RiskIncreased SustainabilityKeep on ScheduleStay on BudgetAdditional Resources

Look for the CCM. Hire A CCM.For More Information:CMAA7926 Jones Branch Dr. Suite 800McLean, VA 22102 Tel: 703-356-2622Certification@CMAAnet.org

Nick SotoVice President of CertificationNSoto@CMAAnet.org

www.CMCertification.org37