Innovative Contracting Practices
Special Experimental Project NO.14
Miami Intermodal Center
Construction Manager At Risk
Introduction
The Florida Department of Transportation (FDOT) proposes the use of Construction Management at Risk (CM@Risk ) type of contracting for transportation projects. This is a qualification-based selection contracting method.
CM@Risk may be defined as an integrated team approach applying modern management techniques to the planning, design and construction of a project in order to control time and cost, and to assure quality for the project owner. The team consists of the owner, the architect/engineer and the construction manager (CM). CM@Risk includes pre-construction and construction services. The CM is selected about the same time as the architect/engineer and in his role as the owner's agent; his task is to represent the interests of the owner in all phases of the project. The CM is selected using the standard Consultant Selection Process. Negotiations are based upon cost of staff assigned over the pre-construction time period plus profit and related expenses. The CM performs "value engineering or constructability reviews" for the owner during the pre-construction phase. Pre-construction services include CM cost estimates and budget recommendations, which may play a major role in cost containment, and requires CM review of contract documents preparation for constructability. The owner still has complete approval of all changes or design decisions. The CM, using the budget given buy the Owner, provides suggestions for alternatives for design, construction materials, and processes. His experience and skill provide a clearer picture to the owner of the cost of different alternatives/methods/materials. At about the 50% contract documents phase, the CM submits a Guaranteed Maximum Price (GMP) for acceptance to the owner. The CM warrants to the owner that the project will be built at a price not to exceed the GMP. The CM assumes the risk of meeting the GMP by holding all of the subcontracts.
Many governmental agencies have begun using CM@Risk as a standard contracting practice, such as Florida Department of Management Services, US General Services Administration and University of Florida. These agencies have reported that CM@Risk assists in achieving the goals of eliminating an adversarial environment, meeting budgets, reducing delivery time, and improving project quality. In addition, FDOT has been granted approval to use CM@Risk on the Miami Intermodal Center, a project estimated at $1.5 billion.
Purpose
The traditional linear approach to managing transportation projects has used the design-bid-build process. This system works well on conventional transportation projects that do not require innovative approaches to the design and construction phases of the projects. The majority of projects that a state department of transportation faces fall into this traditional category.
There are however certain types of projects that require a unique approach to construction management; projects that are better managed in a non-linear approach. These projects fall into several categories:
- Building type projects, where construction methods and specifications vary between professional groups (i.e. engineer/architect and construction trades).
- Innovative funding scenarios, where multiple owners may dictate final project criteria.
- Complex construction phases, where the actual contractors timely input is invaluable.
- Projects where limiting budgets threaten the delivery of the project and where CM alternatives can help to contain costs.
- Other projects where construction input are required during early phases of design.
Scope
This request is to provide authorization for the Florida Division to approve additional CM@Risk projects. The FDOT will provide project reports for the Miami Intermodal Center project. Thereafter, individual project milestones will be reported every time a GMP is completed. CM@Risk is authorized under Florida State Statutes 337.025 Innovative Contracting, which is limited to an annual cap. All projects administered under SS 337.025 require approval from the Central Office, Project Management, Research and Development. It is intended that FDOT use this technique on various project types to evaluate its effectiveness.
Construction of the Miami Intermodal Center (MIC), which is located in Miami-Dade County and bounded by Le Jeune Road to the west; NW 37th Avenue to the east; NW 21st Street to the south; and NW 25th Street to the north, includes the following components:
- Four (4) story Rental Car Facility, consisting of approximately 6,500 vehicles, fleet storage capacity (vehicles not in use) of approximately 3,500 vehicles, quick-turnaround fueling and washing) facilities and customer service facilities for commercial rental car transactions.
- The MIC Core, consisting of facilities to accommodate the bus depot, Tri-Rail, patron parking, MIC-Miami International Airport (MIA) connector station, Amtrak, Metro Rail, and employee services.
- Roadway improvements, including drainage, lighting, signalization at-grade and elevated pavement for the MIC internal roadways, as well as the MIC Terminal Access Roadways (MTAR).
The CM@Risk method fosters teamwork between the Architect/Engineer, Construction Manager and FDOT, which is expected to result in a better final product for the FDOT.
Schedule
The following is a construction schedule for the MIC project:
- GMP #1 (Sitework, Foundations, Pump Station, Water and Sewer)
June 16, 2003 - January 07, 2004 - GMP #2 (Tri-Rail/FPL Access Road and MIC Terminal Access Roadways)
September 29, 2003 - October 18, 2005 - GMP #3 (Rental Car Facility Structure and Mechanical Electrical Plumbing)
February 12, 2004 - April 25, 2005 - GMP #4 (Rental Car Facility Quick Turn Around Area and Tri-Rail)
May 17, 2004 - September 21, 2005 - GMP #5 (Lobby and MIC/MIA Station)
October 24, 2004 - October 23, 2006 - GMP #6 (Miami Intermodal Center Core)
July 05, 2006 - April 04, 2008
Measure
The performance of the CM@Risk contracting method will be measure by:
- Number of Supplemental Agreements for Errors & Omissions Items.
- Reduction in Cost Overruns.
- Reduction in Time Overruns.
- Reduction in Number of Request for Information (RFIs)
- Ease of Contract Administration (Subjective)
Each item above is quantifiable except Ease of Contract Administration. FDOT proposes use of a performance Evaluation of the Construction Manager to assess this area.
Reporting
Initial and final reports will be prepared for the MIC project for every GMP and for the entire project. The initial report will be prepared at the time of each GMP award. This report will discuss industry reaction and response and any identifiable effects on the bids received. A copy of the GMP will be submitted when negotiated. The final report will be submitted upon completion of each GMP, and will discuss overall evaluation of each GMP citing the successes and the areas of concern.