Construction Contract Approaches Feb14
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Construction Contract Approaches Feb14

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overview of grant recipient contracting approaches in CWMTF stream restoration projects

overview of grant recipient contracting approaches in CWMTF stream restoration projects

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Construction Contract Approaches Feb14 Construction Contract Approaches Feb14 Presentation Transcript

  • Construction Contract Approaches
    Clean Water Management Trust Fund
    Board of Trustees Meeting
    February 14, 2010
    Construction Contract Approaches
    and Project Value
    Clean Water Management Trust Fund
    Board of Trustees Meeting
    February 14, 2010
  • Topics
    Grant recipients’ contracting approaches
    Comparing approaches
    Ensuring project value
  • Contracting approaches
    • Two basic approaches grant recipients use to
    contract for construction:
    - design-bid-build
    - design-build
    • Key difference is the “bid” part
    • Bidding:
    - obtaining pricing by competitive process
    - qualified contractor with lowest price is selected:
    “lowest qualified bidder”
  • Contracting approaches
    • Other differences:
    - when contractors get involved
    - how contractors are selected
    - how contractors price construction
    • GRs in two groups, differing purchasing reqs:
    - local govts and State agencies (by State law)
    - private nonprofits and SWCDs (no State law)
  • Contracting approaches
    DESIGN-BID-BUILD
    Engineer is selected
    (based on qualifications)
    grant application, award, and contract
    design and permit
    Constructor is selected (based on low bid)
    construct
  • Contracting approaches
    DESIGN-BID-BUILD
    grant application, award, and contract
    Engineer is selected
    (based on qualifications)
    design and permit
    Constructor is selected (based on low bid)
    construct
  • Contracting approaches
    DESIGN-BID-BUILD
    DESIGN-BUILD
    Engineer is hand-picked
    Constructor is hand-picked
    grant application, award, and contract
    grant application, award, and contract
    Engineer is selected (based on qualifications)
    design and permit
    design and permit
    Constructor is selected (based on low bid)
    construct
    construct
  • Comparing approaches
    DESIGN-BID-BUILD
    DESIGN-BUILD
    • GRs: private nonprofits and SWCDs
    • Constructor selection: GR’s preference;
    less process time/cost (established team)
    • Constructor pricing: negotiated
    • Construction observation/admin:less
    time/cost (more collaborative, flexible)
    • Construction quality: usually better
    • Final cost vs. budget: projects generally
    close out at budgeted cost (neither
    overrun nor revert)
    • GRs: local govts and State agencies
    • Constructor selection: competitive; more
    process time/cost (law-mandated)
    • Constructor pricing: bids
    • Construction observation/admin: more
    time/cost (more oversight needed)
    • Construction quality: usually good
    • Final cost vs. budget: CWMTF asked to
    fund overruns; underrun projects revert
    unneeded funds
  • Ensuring project value
    • Both contracting approaches widely accepted
    • Ensure water quality benefits at reasonable cost
    • Improve evaluation of applications
  • Discussion