Design Bid Build

Method 1:

"Multiple Prime Contracting:

 

Method 2:

"General Contracting: This delivery method follows the design‐bid‐build process, which involves the general contractor (GC) providing a bid from a completed set of design documents from an architect or engineer. The GC provides a lump sum bid to the owner and holds all trade contracts during construction. Important elements of this delivery method include:

1. The contracting authority obtains professional design services through a qualification based selection (QBS) process and completes the design of the project.

2. The contracting authority may obtain Construction Manager‐as‐Agent preconstruction services to assist in estimating and providing constructability reviews of the design documents.

3. Once the design documents are completed, the project is competitively bid and opened in public. All GCs submitting bids are pre‐qualified for the specific project
through the state and agency. Award of trade contracts are based on the lowest responsive bid (responsibility already having been determined through the prequalification process).

4. The GC is required at time of bid opening to identify mechanical, electrical and plumbing subcontractors by company name to the contracting authority. It is the
requirement that these identified sub‐contractors will be used during construction to complete the project. Exceptions to this include the failure or default of a subcontractor. This provides protection from bid shopping for the major trade subcontractors. In addition, the GC is to provide a 100% payment and performance bond
for the construction.

5. Payments during construction are based on progress of the work according to the approved Schedule of Values. In addition, prompt payment and other contractual
protections should be incorporated in the general conditions and apply to all major trades and sub‐trades."

 

Method 3:

"Construction Manager as Advisor:

 

Method 4:

"Construction Manager at Risk: In this delivery method the construction manager performs preconstruction services during the design phase, provides a guaranteed maximum price (GMP) for the construction before the design is complete, and holds all the trade contracts during construction.
Important elements of this delivery method include:

1. An agency or institution desiring to use this method must be pre‐authorized. The State Architect’s Office would develop and administer a certification program for agencies and institutions that includes training on the proper use and implementation of this approach. A certification program should be modeled similarly to SAO’s existing certification program for local administration at universities.

2. The contracting authority obtains professional design services through a qualification based selection (QBS) process and begins design of the project.

3. The contracting authority selects a CM early in the project, before conclusion of schematic design, through a QBS process that is similar to the design professional
selection. CMs are requested to respond to a published request for qualifications (RFQ). The selection committee short lists qualified CMs to be interviewed and the
short listed CMs submit a technical proposal for review and consideration. The CMs technical proposal may include a breakdown of their fee, general conditions and
contingency amounts. The fee can be broken down further to detail the risk components of providing a GMP to the owner. The selection committee can select a
CM based on best value; a weighted combination of qualifications and price.

4. The selected CM can perform pre‐construction services for the owner during the design phase, similar to CM as agent.

5. Once the design has been approximately 75% (60%‐100%) completed, the CM develops a GMP proposal for negotiation with the owner. If no agreement can be
reached on the GMP between the owner and the CM, the contracting authority can either seek the next most qualified CM to complete the project at an acceptable GMP,
or continue with the original CM as an owner agent (less the risk component of their fee for not providing a GMP). If the delivery method is transitioned to CM as an owneragent, the standard design‐bid‐build processes for bidding and construction with multiple primes would be followed.

6. If there is agreement between the CM and owner on a GMP, the mechanical, electrical and plumbing trades (MEP) are competitively bid based upon complete design
documents and opened publicly. The MEP contractors submitting bids are prequalified for the specific project through the state, agency and CM. Parties interested
in submitting a bid need to verify with the CM that they are certified and approved to bid. If they are not pre‐qualified, an expedited appeal process should be provided to those companies.

7. Award of MEP contracts are based on the lowest responsive bid (responsibility already having been determined through the pre‐qualification process). This provides
protection for the MEP contractors from bid shopping. If all the MEP bids exceed the CMs estimate for that scope of work, the CM has two options to proceed. Either the CM can utilize a portion of the contingency to cover these additional costs, or revise the scope of work and rebid. In addition, the CM is to provide a 100% payment and
performance bond for the construction.

8. The CM can self perform any portion of the work, provided it has previously demonstrated to the owner its qualifications to perform such work, submits a
separate bid to the owner to perform such work for the price required within its GMP prior to accepting sealed bids from others which shall be publicly opened by the
owner. Such work shall be awarded to the CM only if no competing bid is received from a qualified contractor for a number that is less than the established GMP line
item number for such work. In addition, contingency funds cannot be used by the CM on self performed work.

9. Progress payments during construction are based on actual costs, up to the GMP, and all of the CMs project accounting is open to the owner for review. In addition, prompt payment and other contractual protections, including expedited dispute resolution process, should be incorporated in the general conditions and apply to all major trades and sub‐trades. The form of subcontract will be provided by the state and require the creation of an escrow for payment of amounts due to such subcontractors.

10. If the project exceeds the GMP, the owner’s cost is capped at the GMP price, and the CM is fully responsible for those extra costs. If the project is completed with
contingency dollars remaining in the project fund, the owner and CM may share in the savings in accordance to the original agreement. Other positive and negative
incentives (R #6) can also be incorporated in the agreement to align the CMs interests with the owner’s goals and objectives.