A critical element of success for progressive design-build projects is cost savings. It is the design-builder’s job to make every penny of the guaranteed maximum price (GMP) count.
Allowances and contingencies are often confused with one another, but understanding their differences is crucial to successfully executing project contracts.
One of my typical roles as an owner advisor is to review proposed construction management at-risk (CMAR) and design-build contracts from a commercial perspective—i.e., what’s the likely marketplace reaction to the contract and is the contract consistent with the philosophy behind collaborative delivery? I am continually amazed by what I see.
As water/wastewater projects continue to increase in complexity, collaborative delivery methods for project execution are becoming increasingly favored among clients. As this shift gains momentum, clients need to be able to trust that their design-build contractor will help them realize the benefits of the collaborative delivery approach throughout the life of the project. The list below outlines several key qualities a water/wastewater client should expect from their design-build contractor.
The ongoing COVID-19 pandemic has had a significant impact on the continued development of critical infrastructure, creating growing uncertainty concerning financing opportunities and project delivery.
Most major construction projects in the water and wastewater industry have conventionally been delivered through a design-bid-build (DBB) method of delivery. However, collaborative project delivery (CPD) methods are being considered more frequently in the public sector because they can provide a variety of benefits over traditional delivery methods such as time and/or cost savings. It is important to recognize that these benefits sometimes come with trade-offs, such as reduced control or change in risk, so the pros and cons of each CPD method need to be weighed.
The idea of an integrated design management role for collaborative delivery projects is not a new one. For over 20 years, vertical commercial collaborative delivery projects have assigned an integrated design manager to drive seamless collaboration for overall project success. However, when describing this position in the water industry, the immediate response is, “What is an integrated design manager?”
The discussion on risk allocation and project contingency versus design-builder contingency has been well documented in several previous blogs. The WDBC Water and Wastewater Design-Build Handbook also provides excellent guidance on best practices for risk allocation. However, my recent experiences on current projects have led me to believe that, far too often, a project’s price, contingency, and schedule are adversely impacted by not addressing project risks with the right team members at the right time, and this topic is worthy of further discussion.
Today’s global infrastructure investment, estimated to be $2.5 trillion per year, falls short of the $3.3 trillion annual investment needed to keep pace with expected growth, not to mention renewal of existing aging infrastructure.
How a Hybrid Procurement Approach was Successfully Used for an $800 Million Regional Wastewater Treatment Program
The Capital Regional District (CRD), located in Victoria, British Columbia, Canada, is currently in the process of implementing a major wastewater treatment program that includes construction of a new 108 ML/d secondary wastewater treatment plant, two major pumping stations, two large diameter force mains, a 20 km residuals pipeline, a wet-weather attenuation tank, and biosolids resource recovery facility. This program culminates a five-year effort in which technical planning was completed by Stantec and district representatives.