CPARB

1
CPARB

• Specialty Subcontractors
• Ed Kommers, P.E.
• Former President of University Mechanical
  Contractors, Inc.
• Director of Technical Services for the Mechanical
  Contractors Association of Western Washington

2
Specialty Contractors Summary

• Many subcontractors will not support the renewal
  of APW (GCCM) unless changes are made
• The project delivery system may not be maximizing
  the effectiveness of the project budget for
  taxpayers on many projects

3
Comments on GC/CM

• Waste or doubling up on services like cleanup,
  dumpsters and porta potties.
• Bid package subs work against each other rather
  than with each other under a strong leader
• Prefer not to bid GC/CM or will add higher margin
• Risk shifting down to subs

4
Previous support of GC/CM

• Minimized bid shopping because bids were
  delivered sealed and publicly opened
• Subcontractors had to obtain a bid bond providing
  a built-in eligibility and responsibility
• Oversight committee

5
JLARC Report

• Subcontractors who perform much of the work on
  GC/CM projects comments were somewhat
  marginalized in the report (App 4)
• GC/CM projects demonstrate characteristics that
  are a success except for the following that are
  inconclusive
• Risk (shared risk)
• Project Cost (impact on CO, claims litigation)
• Quality (whether GCCM produces better quality)

6
Mission of CPARB

• Evaluation of public capital projects
  construction processes
• Impact of contracting methods on project
  outcomes
• Advise on policies related to alternative
  public works delivery methods

7
Specialty Subs Priorities

• Develop standard subcontract terms
• Require timely change order responses
• Prohibit incentives paid out of MACC contingency
• Revise Eligibility

8
Standard Subcontract Terms

• Coordinate work and resolve sub disputes
• Allow recovery of costs due to delay
• Realistic overhead and profit on COs
• Require realistic lien waivers
• Standardize scopes
• Improve DRB process

9
How to standardize terms

• Agree on New Prime Contract Terms and Conditions
• Require subcontracts to be no more restrictive on
  specific clauses
• Develop standard subcontract terms and conditions
• Edit existing model contracts

10
General Public Works

• Retainage needs lots of work
• Responsibility criteria
• Provide logical relief from Johnson decision
• Restrict right to reject all bids to good cause

11
(No Transcript)