AIPWP Presentation - Idaho's New CM/GC Statute - What does it mean for local governments?
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Transcript of AIPWP Presentation - Idaho's New CM/GC Statute - What does it mean for local governments?
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Idaho’s New CM/GC statute – What does it mean for local governments?
Presented to the Association of Idaho Public Works Professionals Fall 2014 Meeting
Chad W. LamerPartner, Spink Butler LLP
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Introduction
Chad W. Lamer, AICP, LEED AP
(208) 388-0245
Twitter @chadlamer
www.linkedin.com/in/chadlamer/
The Idaho Land Law Blog
www.Idaholandlaw.com
![Page 3: AIPWP Presentation - Idaho's New CM/GC Statute - What does it mean for local governments?](https://reader033.fdocuments.us/reader033/viewer/2022042602/559cd1df1a28ab5a7f8b466a/html5/thumbnails/3.jpg)
Discussion Points
• New CM/GC Legislation
• Changes in Delivery Methods
• CM Representative vs. CM/GC
• Benefits of CM/GC
• Process for CM/GC Selection
• Practice Tips in Selection Process
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CM/GC Legislation
• Amendment to the Public Works Construction Management Licensing Act of 1998.
• Idaho Code Section 54-4511.
• Adds definition of Construction Manager Representative (CM).
• Adds definition of Construction Manager/General Contractor (CM/GC).
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CM/GC Legislation
• CM/GC statutes similar to Idaho’s approved in the following states:– Arizona– Colorado– Connecticut– Georgia – Kansas– Massachusetts – Nevada– North Carolina– North Dakota– Ohio– Utah– Washington– Wisconsin– Wyoming
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Typical CM Project
Public Owner
Construction Representative
A/E Design Professional
General Contractor
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Construction Manager Representative
• Licensed Construction Manager.
• Provides construction management services to public owner:
– Preconstruction and Construction.
• Cannot provide equipment or construction services on the project.
• May provide design services if licensed as architect or engineer.
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Typical CM/GC Project
Public owner
Construction Manager/General
Contractor
Subcontractor
Subcontractor
A/E Design Professional
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Construction Manager/General Contactor
• Licensed Construction Manager.
• Licensed Public Works Contractor.
• Consultant to public owner during both design phase and construction phase.
• Guaranteed Maximum Price Contract.
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Differences between CM and CM/GC
• Traditional CM
– Does not hold trade contracts or contractual responsibility for performance of work.
– Selected based on qualifications (same for CM/GC).
– Paid for services rendered with no risk for design or construction overruns.
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Differences between CM and CM/GC
• CM/GC
– Selected based on qualifications (same for CM).
– Provides preconstruction services such as budgeting, scheduling, and contract procurement.
– Works with A/E design professionals during design process and construction.
– Manages the competitive bidding process and may submit bids for construction services.
– “At Risk” – assumes risk for construction delivery based on Guaranteed Maximum Price (GMP) contract.
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CM/GC Selection: How does it work?
• Selected based on qualifications.
• Selection controlled by Idaho Code Section 67-2320.– Make sure you have criteria available to public.
– Rank applicants in order of preference.
– Negotiate with highest rank (terminate negotiations if cannot reach agreement).
– May request rates, overhead, and multipliers but cannot be used for the ranking of preference.
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CM/GC Project Delivery
Challenges Benefits
Increased accountability of CM on budget and
scheduling
Concurrent input from A/E and CM/GC during design
Selection of prime contractor based on
qualifications
Minimizes owner’s risk of cost overruns
Determining what constitutes a change order?
Overcoming appearances of limited competition
Determining when CM/GC will provide GMP for project
Determining GMP
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Best Practice CM/GC Selection
• Select the CM/CG early in process.
• Possibly before the A/E design professionals.
• Reasoning:
– CM/GC involved from beginning of design may decrease costs and increase communication between A/E and CM/GC
– Owner benefits from support of budget development, schedule management, and constructability reviews.
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Current Projects
• Twin Falls School District
– CM/CG for construction of two new elementary schools, middle school, remodel of one high school.
– $73 Million Dollar Bond
• City of Boise
– Dixie Drain Phosphorous Removal CM/CG Services.
– Awarded to McAlvain Construction, Inc.
– RFQ
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Example - City of Boise’s RFQ
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Example - City of Boise’s RFQ
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Example - City of Boise’s RFQ
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Example - City of Boise’s RFQ
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Example - City of Boise’s RFQ
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Resources
• Association of General Contractors – CM/GC Guidelines for Public Owners
– http://www.agc.org/galleries/events/CM_GC_Guidelines.pdf
• American Institute of Architects –Construction Manager as Constructor Family
– http://www.aia.org/contractdocs/referencematerial/aiab099121
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Questions
Chad W. Lamer, AICP, LEED AP
(208) 388-0245
Twitter @chadlamer
www.linkedin.com/in/chadlamer/
The Idaho Land Law Blog
www.Idaholandlaw.com