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COALITION for ADEQUATE SCHOOL HOUSING Cost Containment Cookbook For Public School Construction
NOTES TO THE READER This document is intended to be a "cookbook" of elements which collectively influence the cost containment of school construction projects.
It is not intended to be a treatise on the entire school construction process nor to establish responsibilities between various members of the construction delivery team.
As such, each element is meant to indicate an action in the process that the District should pay attention to and ensure is properly accomplished.
Each element should be read as: "The District should . . . . Define use and scope" "The District should . . . . Ensure compliance with etc."
ELEMENTS INFLUENCING COST CONTAINMENT OF PUBLIC SCHOOL CONSTRUCTION TABLE OF CONTENTS The Elements Influencing Cost Containment of Public School Construction are presented in five categories, each representing one of the basic phases of a project. Each category is further subdivided into areas relating to the primary functions normally involved in the project. Thus, the major elements are presented in the following outline: PRE-DESIGN
DESIGN
BID & AWARD
CONSTRUCTION
OCCUPANCY
PRE-DESIGN PHASE I. OWNERSHIP related elements for consideration A. Identification of Project
B. Educational Specifications
C. Project Budget
D. Project Master Schedule
E. Owner’s Representation
F. Site Selection
G. Forms of Service Agreement
H. Risk Management
I. Project Delivery Method
PRE-DESIGN PHASE II. DESIGN related elements for consideration
DESIGN PHASE I. OWNERSHIP related elements for consideration
DESIGN PHASE II. DESIGN related elements for consideration
DESIGN PHASE III. CONSTRUCTION related elements for consideration
DESIGN PHASE IV. MANAGEMENT related elements for consideration
BID/AWARD PHASE I. OWNERSHIP related elements for consideration
BID/AWARD PHASE related elements for considerationA. Bid Alternates
B. Document Distribution
C. Bid Period
CONSTRUCTION PHASE I. OWNERSHIP related elements for consideration A. District Representative
B. Partnering
C. Timely Decisions
D. Furniture and Equipment
E. Project Closeout
CONSTRUCTION PHASE II. DESIGN related elements for consideration development of shop drawings and/or submittals. These documents can later be used for As Built Documentation D. Change Orders CONSTRUCTION PHASE III. CONSTRUCTION related elements for consideration A. Access to the Job Site/Mobilization
B. Job Site Issues
C. Schedule
CONSTRUCTION PHASE IV. MANAGEMENT related elements for consideration
OCCUPANCY PHASE I. OWNERSHIP related elements for consideration
Glossary of Terms and Definitions – Supplemental information issued after the initial distribution of the bidding documents, but prior to the receipt of bids. These should be minor in detail in order to avoid confusion and excessive cost as a result of their issuance. Clarifications and answers to pre-bid questions should be issued in the form of an addendum to all registered plan holders.
Allowances – Term used to describe a fixed amount or estimate that covers an element that cannot be readily defined or that needs to be included in a bid that the District has determined is required. The amount for an allowance is typically not contractually binding upon the party who may be assigned to carry the allowance amount.
American Institute of Architects (AIA) California Council’s Handbook on Project Delivery – Handbook which is available through the California AIA which describes the primary methods of delivering construction and the various forms of contracting.
As-Built Documents – A final set of documents that indicate the actual or "as-built" conditions of the construction for a project. These documents are particularly important when subsequent projects require utility connections and identifying locations. These can be produced in a number of different mediums such as hand-marked bluelines, re-plotted CAD drawings or CD-ROM. These can be produced by either the design team, a separate consultant or the contractor. Responsibilities for this work should be determined in advance of the architect selection and contracting. This varies by district standard and costs can vary greatly depending on the selected medium or party selected to produce the final documents. Subsequent modifications to facilities or sites should be clearly documented on these as built drawings.
Bidder Pre-Qualification – A process used by districts in an attempt to increase the quality of the bidding pool for their projects. This procedure can vary greatly from district to district and usually goes through a legal review prior to implementation.
Bid Marketing – The process whereby a district, the architect or the construction manager encourages bidders to participate in bidding their project. This may include but is not limited to additional placement of bidding documents in plan rooms, an organized telephone campaign of general contractors or trade subcontractors, and additional advertising in trade publications or other recognized sources that will generate additional bidder interest.
Bid Alternates – Term used to describe additive or deductive options or elements that may or may not be chosen to be a part of the final project.
Boiler Plate – A term to describe standardized language used in contracts and specifications. Items that usually fall into this category would include: standardized General Conditions language; bid forms and bidder instructions; standard forms of agreement; indemnification documents; and numerous other statutory forms and inclusions in various contract documents with the architect, contractors, consultants and vendors.
Change Orders – Term used to describe work that changes the original bid documents. These may include work that is minor or very substantial depending upon the circumstances of the project. Pricing rules for change orders are usually defined in the documents in order to expedite and fairly determine the value of the issued change. Change orders may also include "time" if circumstances associated with the change affect the schedule or delay progress which has been originally stipulated in the bid schedule or duration of the project.
Commissioning – A term used to describe the process of final completion and startup of building systems and equipment. This process will usually include the training, final testing, certification, operational demonstration, balancing, tuning, final cleaning, etc. The details of this process are usually defined by the design team in the construction documents and may vary greatly with the size of the project.
Constructability Review – Process performed by an experienced construction person or staff which identifies problematic details, difficulties in assembly which may affect overall performance or quality, missing elements of design, design inconsistencies, improvements of details which would assist or expedite the construction process, enhancements that would improve the delivery of quality, discontinued or non-(locally) available building components, etc. This review should be performed in schematic design, and again prior to the completion of the design documents to avoid delays and additional design costs.
Construction Phasing – Term used to describe various stages of a construction schedule which are separate or unique to work activities that may logically tie together. Phases can be logically tied together where critical elements may affect or be predecessors to subsequent work activities in the overall construction process. Phasing can be generally described as separations of work and are typically staggered over the duration of the project’s overall construction period.
Contingency – A term used to describe a component of the budgeting or contracting process that covers items which are unknown or not anticipated in the detailed assembly of the budget. These items or circumstances can come up unexpectedly during the course of the project and are not the direct responsibility of any contracted party to the project.
Deliverables – Term used to define products of a consultants agreement with a district which might include but is not limited to progress drawings, specifications, budget estimates, schedules, models, renderings, presentation graphics for school board or public meetings, color/sample boards, structural frame analysis/calculations, written reports or studies, etc. These are usually defined in the agreement with the consultant as basic service items or as additional service items.
Design Contingency – Term used to describe a fund or budget item intended to cover the cost of implementing construction or design enhancement items which are not a part of the initial documents or design, and may be necessary to complete the project.
District Facilities Master Plan – A comprehensive plan for the development, modernization and/or repair of school facilities throughout a district. The plan could include but is not limited to demographic studies, existing facility surveys, budget/cost analysis, facility augmentation, needs assessments, timeline/schedules, identified sources of funding and possible bond election measure requirements.
District Standards – Similar to Ed Specs, this term is used to describe the standard elements, layout, levels of quality, materials of use, proprietary systems, etc. that the design team and facility planning groups coordinate to develop the final construction documents.
Document Control System – A term used to describe a system which organizes, tracks, distributes, and makes available defined documents that are important to the communication procedures of the construction team. Standard formats are typically developed on a selected computer platform in advance of the project startup. Documents can be stored and retrieved in an efficient manner by the manager of the document control system.
Ed Specs - Term used to describe the Educational Specifications of a school district. These are the basic elements of a new facility or modernization project which are used by the design team in development of a project’s construction documents. These are normally developed in coordination with the specific teaching and facility standards as set forth by the district during the initial planning stages of a project or program. Development of the ed specs are completed in coordination with the users of the facility in meeting the requirements of the school staff administration and the Department of Education.
Estimates – Summaries of estimated cost based upon current and/or historical cost data. Types of estimates and their frequency of production should be determined during the pre-design stage of the process. Details and organization may vary at each stage and by the producers of the estimate. Estimates may be a direct measurement of the elements of the design with extended unit costs or simply a measurement of the areas with an applied square footage value which is based upon the intended use of the space.
Fixed Fee – Term used to describe a fee which has a specific stipulated, established or settled amount and that would typically occur as a lump sum dollar value. This type of fee contrasts with the percentage (%) fee which is calculated on the value of some other element such as the construction cost.
Front End Requirements – Term used to describe various procedural measures or requirements of a project that are used by the bidder in preparation of a bid. They also describe various administrative and logistical requirements such as progress reporting, local community factors, payment procedures, scheduling, etc. which are required for the specific project.
General Conditions - Term used to describe various costs of essential elements of the construction process that are not directly incorporated into the final project, such as temporary fencing, power, toilets for workers, safety items, temporary roadways, lighting, security guards, etc. This would also include the costs of administering and supervising the actual construction process such as staffing costs, trailers, copying, blueprinting, telephones and computers for the construction staff, schedule updates, etc.
Guaranteed Maximum Price (GMP) Contract – Type of contract where the initial value of the contract is based upon an estimate of costs during the design stages plus a stipulated value for contingencies that may be necessary; or an accumulation of all bids for the completed documents plus an estimated general conditions value and established contingency for elements that were not covered during the bidding process or anticipated during the initial budgeting of the project.
Hard Costs – Term used to describe the direct costs associated with "construction" components of a new facility or modernization. These costs would include the bids of the general contractor, subcontractors, and elements that are a visible product of the construction process. This may include but is not limited to direct land purchase, site development, site utilities, buildings, furnishings, equipment, etc. Some districts may include (as a hard cost) the fees and general conditions costs of a construction manager who might be directly overseeing the construction process if hired as a separate consultant. Cost of in-house staff that perform management functions are traditionally classified as soft costs.
Inspector of Record (IOR) – Consultant hired by the district to generally oversee the assembly of the components of the construction in accordance with the contract documents and codes affecting their assembly. Specific duties and responsibilities of the IOR may vary depending upon the use of a separate construction manager or available district staff.
Joint Use – Term used to describe an agreement between a district and another public or private entity where facilities, land, utilities, or other common element are shared between two or more parties.
Joint Powers Authority – Term used to describe a government entity created under state law that allows two or more government agencies to combine forces by "jointly" exercising their powers with respect to a specific purpose or set of objectives.
Lump Sum Contract – Stipulated or set value type of contract for the work defined by the agreement for consultants or the construction drawings and specifications for a contractor.
Master Schedule – A schedule that typically defines the major elements of the entire project or program from its initial planning stages and completely through the design, construction and eventual occupancy stages. This timeline will be used by the entire team to properly plan and strategize each discipline of the overall process. Critical milestone dates are identified in the Master Schedule which will directly or indirectly affect the ability of each discipline to meets its obligations and completion dates.
Mobilization – The process of project set up in preparation of the actual construction work. This may include but is not limited to: installation of temporary fencing; set up of construction trailers; major construction equipment delivery (cranes, scrapers, bulldozers, forklift, etc.); and any temporary provisions such as power, water, phone, signage, roadways, erosion control, etc.
Notice of Completion – The official notice or document that is statutorily required to be filed at the conclusion of the project when all work has been completed by the construction team and signed off by the district, its inspector, and the design team. This notice is filed with the county recorder in the county in which the project is located. It will also normally initiate the start of the warranty period(s) for the project as well as other statutory periods for lien filings or claims.
Owner Controlled Insurance Program (OCIP) – Insurance program that is controlled by the district in lieu of each party to the project. This overall program can vary in its coverage but typically covers all liability insurances of the designer, contractors, the district and property owners (if different from the district). These programs are usually pursued on larger projects where economies of scale for one large policy may be collectively organized in a cost savings manner versus the numerous individual policies which may have much higher rates individually.
Partnering – Term developed in recent years and used to describe a (typically) non-binding process where all stakeholders to a construction project agree to a methodology or plan for resolving problems in order to avoid formalized dispute resolution procedures. A third party facilitator is usually hired to organize and oversee the set up of the meeting which is used to develop an informal but written partnering agreement.
Plan Rooms – Also known as builder exchanges where bidding documents are placed (including all addenda) for review and use typically by second or lower tier subcontractors and vendors in preparation of a bid to the general contractor or directly to the district or construction manager if trade bidding is the selected method of receiving bids.
Pre-Bid Conference – The meeting that is held in advance of the bidding process, but typically after the bidding documents have been made available to the potential bidding community. This conference will typically give a general definition to the scope of the project as well as any special considerations that may not be readily apparent to the bidders, but necessary in preparing an acceptable bid. Schedule, levels of quality, inspection procedures, bonding, bid form requirements, site walk, and numerous other elements are important for a complete pre-bid conference. These conferences may or may not be mandatory, depending upon the policy of the district.
Quality Assurance Program – Term used to describe a program(s) which are developed by the district, the designer, the construction manager or the contractor in order to insure that the quality levels established for the project are maintained.
Request for Information (RFI) – A term used to describe a format by which a question is asked by a contractor to the design team for clarification. These may or may not be minor in nature, and may or may not generate subsequent requirements for change orders to be issued.
Soft Costs – Term used to describe elements such as, but not limited to, consulting or planning services, design fees, site evaluations, appraisals, testing & inspections, studies, attorney fees, financing costs, state plan check fees, local capacity fees, etc. These costs can be highly variable from project to project.
Submittals - Term used to describe shop drawings, manufacturers data, material samples, coordination drawings, system schematics, etc. that more descriptively define the actual components to be used by the contractor on the project as generally defined in the design documents. These submittals are typically more highly detailed in their definition of the final product that will be produced or provided.
Substitutions – Term used to define alternatives proposed by the contractor to the design team or district which vary from the specified products or materials in the original design documents. The review period and rules for consideration of substitutions should be clearly defined in the documents in order to avoid delays or additional costs.
Time and Materials Contract – Type of contract where the costs associated with the actual time for labor is accumulated and the actual material invoices and costs are tracked throughout the entire period of the agreement. The final total of costs is tabulated at the end of the process or may be tabulated along the way in order to appropriately compensate the T&M performer.
Value Engineering (VE) – Term used to describe the process or analysis of a project’s design where cost savings measures are necessary or desired by the district without major changes to the overall quality or program requirements of the Educational Specifications or District Standards. VE items will typically include alternative systems or equipment selections, identified methods of assembly which may be more efficient than originally defined by the document details, use of standardized design details throughout the project, identified reductions in appearance quality for non-visible elements of the project, unnecessary proprietary items, etc.
Value System – Term used to describe a system developed by the district to evaluate and prioritize components of the construction process and their overall value to the project. This system defines what the "most important" factors are in the project in case a problem arises and changes are necessary. Time, quality and budget are the primary categories of a value system that need to be defined to the entire project team when making decisions throughout the entire project |
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