Design

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DesignBuild Contracts
Advantages of
During Turbulent Times
G. Hardy Acree Director of Airports Sacramento
County Airport System
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Agenda

• Collaborative Solutions/Tools for Controlling
  Cost
• Contract Pricing Based Upon 100 Documents
• GMP Establishes Target Budget for Project Team
• Deferred Encumbrance
• Owner Takes Advantage of Material Pricing
• Sufficient Competition to Qualify for FAA
  Funding
• Shared Risk

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Collaborative Solutions/Tools for Controlling
Cost

• Dewatering Volumes Exceeded Permit
• Teams Worked Together to Find Solutions With
  Minimal Impact to Cost
• and Schedule
• Tug Tunnel Phasing Cost
• Phasing Modification Was Agreed Upon
• Design Revision Saved 2,000,000.00
• Delete Hotel From Landside GMP

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Contract Pricing 30 100 Documents

• Opportunity to Incorporate VE Items Prior to
  Final Price
• Negotiations
• Contractor had Incentive to Identify VE Items
• DBC Accrues 25 of Savings
• Encumbrance Occurs when Packages are
  Authorized
• Budget Tracking by Work Package
• VE on Airfield Pavement Based on Field
  Information
• Changed from Base Assumption Based on Field
  Investigation
• Results 5,000,000.00 Reduction from BAFO
  (from GMP)

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GMP Establishes Target Budget

• GMP Became the Target Budget
• Owner Contingency Held in Reserve
• Contractor Had Incentive to Stay Within GMP
• Design Team Used GMP to Make Decisions
• The GMP Drove Value Engineering Decisions

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Deferred EncumbranceIntroduction

• Airside Deferred Encumbrance Schedule
• Landside Deferred Encumbrance Schedule
• Postponed Bond Issuance Until Market Improves

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• Landside
• Deferred
• Encumbrance
• Schedule

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• Airside
• Deferred
• Encumbrance
• Schedule

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Owner Takes Advantage of Material Prices

• Drop in Price of Stainless Steel
• 20 Cost Reduction for Landside Roof Material
• Drop in Price of Structural Steel
• 10 Cost Reduction for Landside Structural
  Steel
• Cost Reduction in Mechanical Electrical
  Equipment
• Landside Airside Savings Exceed 1,000,000.00

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Sufficient CompetitionQualifies for FAA
FundingOvercoming FAAs Resistance to
Design-Build

• Pre-Qualification of Prime Contractor
• Pre-Qualification of Sub-Contractor Associates
• Submittal of Initial Bid Included Pre-Qualified
  Prime Subs
• Scoping to Clarify Scope
• Best and Final Offer Price Proposal
• Final Selection Based Upon Qualification
  Price

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Shared Risk

• Contractor Submitted GMP Based Upon 30
  Documents
• Owner/Contractor Held Scoping Sessions to
  Clarify Scope
• Owner Negotiated a Contingency Amount in the
  DBC GMP
• To Protect the Contractor from Cost Increases
• To Cover Items Missed During GMP Preparation
• To Cover Design Development
• Use of Escrow Bid Documents to Confirm Pricing
  Assumption
• (Hotel is an example of where the County
  Benefits)
• Contractor Included Qualification in Contract
  Agreement
• (Allowed DBC to do this due to lack of
  clarity dewatering is an example)

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Questions?
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Thank You
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Delivery Method Options Stop 2 (with Selection
Types)
of CONTRACTS
Designer Contractor (2 separate contracts)
Design/Builder (1 combined contract)
SELECTION TYPES
Low Bid Total Construction Cost is sole criteria
for final selection
Best Value Bid Total Construction Cost and other
criteria are weighted factors in the final
selection
Qualifications Based Selection Total Construction
Costs are not a factor in the final selection
criteria