|
project design . During construction , the Town would maintain the authority over whether monies from the Construction Contingency fund are expended .
• yCompanies that offer CMAR project delivery are generally concerned about their reputation since most CMAR ’ s are selected on a qualifications basis . They are significantly motivated to perform well to uphold their reputation .
• yThe CMAR is far less likely to develop an adversarial relationship with the Town during the course of the project . This results in a construction team that is motivated to perform well for the Town , resolve issues quickly and cost effectively , and maintain a positive working relationship so they can continue working with the Town on future projects . In this manner , risk is better managed and claims / lawsuits are often fewer .
• yThe CMAR process offers the Town “ open book ” transparency on how the construction price is developed . All of the sub-contractor bid proposals , CMAR overhead , project management , profit , and contingencies are clearly identified , shared with the Town , and agreed upon before the work begins . This also allows the Town to know the full budget for the project , unlike the DBB method where budget issues may not be discovered until well into the construction process .
|
• yBecause the CMAR is ultimately responsible for the schedule and budget , they generally will bid the work to qualified , bondable subcontractors who the CMAR has confidence will construct their scopes of work successfully .
• yThe direct purchase of materials can be streamlined through use of the CMAR procurement method . The CMAR can request bids from material suppliers , coordinate and remain responsible for the quantities , material deliveries , and storage , and assist the Town ’ s purchasing department in issuing Purchase Orders directly to the suppliers to realize the tax savings . This saves an enormous amount of coordination time and relieves the Town of the responsibility of material deliveries and timing , storage , supplier delays , shop drawing approvals , etc .
• yThe Town ’ s history with this delivery method has been positive with projects being completed on-time or ahead of schedule and under the negotiated GMP . When the cost of the project is less than the GMP , the contingency funds are returned to the Town .
Disadvantages : y • To provide the best value to the Town , the proper selection of the CMAR is critical . This is a “ people ” business and
|
getting the right combination of skills and expertise is essential for project success .
• yBecause the CMAR provides a GMP for the project , the CMAR is in an “ at-risk ” position during construction . Depending on what challenges are faced during construction , the contingencies developed during the GMP negotiation may not be sufficient to cover the costs of dealing with those challenges . Because the CMAR provided a GMP , they are responsible for overcoming the challenge regardless of the cost . This can put them in an adversarial role with the Town if this situation develops .
• yDespite the fact that the CMAR will find it very difficult to pursue change orders from plan ambiguities because they were involved in the design process , they may become very aggressive on change orders due to changed conditions ( increase in scope ) or adverse weather impacts .
7.2.2.1 CMAR Contracting and Procurement Methods
CMAR is a two-step procurement process ; pre-construction services and then construction services . A Request for Qualifications / Proposal ( RFQ / RFP ) to select the CMAR is the first part of the two-step process . Based on the qualifications submitted , the Town narrows the pool of potential contractors to a short list . The Town can then either select from the short
|
list or invite the short listed CMAR ’ s to make a presentation . The Town can then select the contractor based on who made the best presentation . A modified method is being considered by the Town that scores the CMAR ’ s based on a combination of their pre-construction services pricing , general conditions , and construction fee , combined with their qualifications .
Once the CMAR is selected , an initial agreement on a fixed fee for pre-Construction services is negotiated ( unless this was part of the selection process ). Pre-Construction services can include the following :
• yPerformance of quantity surveys .
• yValue engineering .
• ySuggestions regarding constructability and methods .
• yDevelopment of a detailed construction schedule .
• ySuggestions regarding cost reductions .
• yParticipation in public outreach .
• yDevelopment of an initial Opinion of Construction Cost .
• yDevelopment of the final GMP after completion of the 90 % construction documents that includes the subcontractor bidding process .
|