Project Delivery Mechanisms, Part 1
Libraries for All
Preliminary Management Plan 11/24/98

1. Procure Architect/Engineering Services first, through RFP

Various evaluation criteria

Price is not an evaluation criterion

2. Prepare bid specs from design

3. Request bids for construction

• Lowest responsive bid wins

4. Manage change-orders

• This is where significant cost risks reside

1. Process to establish "alternative public works contracting procedure"

• Notice and public hearing
• Written reasons for using alternative procedure
• Public comment period
• Requires action by legislative body

2. Procure design-build team through RFP

• Evaluation factors to include:
• Price
• Competence of personnel
• Past performance
• Ability to meet time and budget requirements
• Performance bond
• Current work loads of firm(s)

4. Committee is impaneled and evaluates proposals

5. Committee evaluates proposals as "best and final offer;" no proposal may be considered if it greater than maximum allowable cost.

6. Public body begins negotiations with firm with best rated proposal. If unable to execute contract with this firm, then may go to next highest ranked.

7. If all firms are ok, then may choose firm with lowest price.

8. Must pay honoraria to all finalists (3-5)

Maximum allowable construction cost is laid out in RFP

1. Process to establish "alternative public works contracting procedure," just as for design/build.

• Must find that "(t)he involvement of the general contractor/construction manager during the design phase of the project is critical to the success of the project."

2. Procure Architect/Engineering services first, through RFP, as in the traditional method

• Various evaluation criteria
• Price is not an evaluation criterion

3.  Early in design phase, no later than completion of schematic design, procure services of a general contractor/construction manager, through an RFP.  RFP shall include certain stipulated parts of project description. Evaluation criteria are generally similar to those to be used for design/build, including maximum allowable construction cost. Committee is impaneled as in design/build and selects most qualified finalists.

4.  Finalists submit final proposals, including sealed bids for the fee to be earned by the GC/CM as overhead and profit.

5.  Public body chooses highest rated proposal, based on weighted criteria.

6.  Maximum allowable construction cost is negotiated with winning firm when design is far enough along to allow it. GC/CM guarantees this price, with performance bond. Guaranteed price includes construction cost, fee, and sales tax.

7. GC/CM competitively bids all subcontracts; bids are sealed bids.

8.  "When ciritical to the successful completion of a subcontractor bid package the owner and gc/cm may evaluate for bidding eligibility a subcontractor’s ability, time, budget, and specification requirements on the subcontractor’s of those items on previous projects."

9.  Otherwise, low bid wins.

10.  GC/CM may bid on subcontract work under certain circumstances. In those cases, the public body evaluates the bids.

11. Public body may include incentive clauses for savings of either time or cost.

12. Except for contractual change orders, cost overruns are responsibility of GC/CM.

30 November 1998