Construction Contract Approaches Feb14

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overview of grant recipient contracting approaches in CWMTF stream restoration projects

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Construction Contract Approaches Feb14

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

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