How to Hire A Construction Manager Handbook

HOW TO HIRE A

CONSTRUCTION MANAGERFor Your EnergyEfficiency Projects

HA

ND

BO

OK

P400-00-001E

Gray Davis, Governor

MAY 2000

CALIFORNIA ENERGY COMMISSION

STATE OF CALIFORNIA

ENERGY COMMISSION

20001975

Acknowledgements

This document, How to Hire a Construction Manager for Your Energy Efficiency Project,was prepared, edited and reviewed by the following Energy Commission staff: MariaKetcham, Matt Epps (no longer with the Energy Commission), Donald Kazama, VirginiaLew, Michael Magee (now with the Community Colleges – Chancellors Office), DarylMills, Michael Sloss, Frank Vargas (now with Natomas Unified School District) and RamVerma, P.E.

The Energy Commission staff is grateful for the thoughtful comments and suggestionsprovided by the following: Harry Franey, California Department of Corrections; Mike Sebak,Cerritos Community College District; Stephanie Dovichi, Turner/Vanir; Lynn Wiley andTonnie Baser, California Department of General Services; Thomas Mossinger, Suki Sandhuand Bill Fleming, Brown and Caldwell and Associates; Leslie Kramer, Brown, Vence andAssociates; Cal Coran, City of Palo Alto; and Tracy Lignon (formerly with the County ofSan Mateo).

The authors acknowledge Robert Schlichting, Jackie Goodwin and Elizabeth Parkhurst forassistance in editing the document; Eurlyne Geiszler and Merry Bronson for production andlayout; and Sue Foster for cover design.

This document is one of a series of publications contained in the Energy Commission’sEnergy Efficiency Project Management Handbook, which is designed to help localgovernments, schools and other public entities successfully implement energy efficiencyprojects in their facilities.

For information on how to obtain a copy of other publications, contact the NonresidentialBuildings Office at (916) 654-4008. All documents can be downloaded from the EnergyCommission’s Web page at:

www.energy.ca.gov/reports/efficiency_handbooks/index.html

How to Hire a ConstructionManager For Your EnergyEfficiency ProjectEnergy Efficiency Project Management Handbook

Contents

I. What is a Construction Manager? ........................................................................................ 1

II. Do You Need a Construction Manager?............................................................................... 4

III. How Do You Determine the Services You Need? ............................................................. 15

IV. How Do You Estimate Construction Manager Costs? ....................................................... 20

V. How Do You Prepare the Documents to Hire a Construction Manager? ........................... 22

VI. How Do You Choose the Right Construction Manager? ................................................... 31

Appendix A – Additional Information .......................................................................................A-1

Appendix B - Sample RFP/RFQ ................................................................................................ B-1

Appendix C - Recommendations for Scope of Work for the Construction Contractor.............. C-1

California Energy CommissionEnergy Efficiency Division

Once you have determined which energyefficiency measures will be implemented andyou have secured financing, the next step isto decide how to install your improvements.Will you use in-house staff or hire an outsideConstruction Manager to oversee the project?

This handbook will help to determine if youneed a Construction Manager. The decisionshould be addressed before preparing theenergy audit to ensure that the costs for amanager’s services are included in the budget.

If you are considering using an EnergyServices Company (ESCO), you may also findthis document useful — ESCOs typically serveas Construction Managers.

In this handbook, the term “owner” issynonymous with the organization that makesthe decisions for your facilities. Examples oforganizations include, school and collegedistricts, hospital boards, city or countygovernment or special districts.

I. WHAT IS A CONSTRUCTIONMANAGER?

A Construction Manager (otherwise known asa “CM”) is an individual or firm contracted byyour organization to oversee the constructionand installation of energy efficiency measuresin your buildings.

Hiring a Construction Manager allows you totransfer the duties of your energy project fromyour organization’s staff. It should beemphasized, however, that your organizationremains responsible for the project even if youhire a Construction Manager. If the projectfails or is left incomplete, it is your staff thatmay be held accountable. A project’s successor failure ultimately resides with yourorganization; responsibility cannot becontracted out.

A. Do you need a ConstructionManager?

No, not if you have a knowledgeable, trainedand available staff. Hiring a ConstructionManager, however, will expedite theconstruction and installation of your energyefficiency measures.

B. What Are the Duties of aConstruction Manager?

Typically, a Construction Manager will:

• Develop the project’s overall approach

• Assist in developing construction andcommissioning schedules

• Assist in developing constructiondrawings and technical specifications

• Manage the selection of contractors,including the bid process and the award

• Facilitate the writing of the constructioncontract

• Provide on-site construction managementand inspection services

• Control and monitor costs

• Develop or direct project testing,commissioning, and acceptancerequirements

• Ensure the project complies with allapplicable environmental, health andsafety rules and regulations, buildingstandards and codes, and other regulatoryrequirements

• Prepare and submit progress reports to theowner

• Ensure that the operation and maintenancestaff is properly trained

• Ensure that the owner receives operationand maintenance manuals, operation andmaintenance procedures and checklists,and recommended spare parts lists

• Submit “as-built” drawings and otherdocuments to the owner in a well-organized form

Section I - Construction Manager Page 1


C. How Does a Construction ManagerFit into my Project Team?

A typical project management team has fourparts with these responsibilities:

• In-house Staff

Your organization’s staff can includeadministration, maintenance, and others.Their duties include:

1. Identifying the tasks that theConstruction Manager is to accomplish,preparing bid documents for thoseservices, evaluating the bids, and thenselecting the winning bidder

2. Overseeing and directing theConstruction Manager

3. Resolving any contractual issues withthe Construction Manager, designer,and general contractor

• Construction Manager (CM)

Hired by your organization, the manageris responsible for planning, organizing,leading, staffing, and controlling theinstallation of your energy efficiencymeasures and hiring the designer,commissioning agent and others tocomplete your project.

• Designer

An engineering firm, hired by either yourorganization or by the ConstructionManager, produces the needed designdocuments and equipment specifications.

• General Contractor (GC)

Hired by your organization or theConstruction Manager, the contractorinstalls or constructs the energy efficiencymeasures to the specifications outlined inthe construction and contract documents.

D. What Are Typical ConstructionManager Contract Arrangements?

Unless it is specified in your bid documentsand the resulting contract, ConstructionManagement services do not include the costfor hiring such specialists as buildinginspectors or engineers. However, theConstruction Manager is often responsible foroverseeing the work of these specialists.

The project team can arrange contracts to workin several ways. Any of the followingarrangements will help to ensure the smoothcompletion of your energy project. Thefollowing is the key to the abbreviations usedin these arrangements:

A/E = Architectural engineering firmGC = General contractorSub = SubcontractorCM = Construction manager

• Architectural Engineering (A/E)Contract

An A/E firm provides the full range ofservices including project identification,analysis and design services. Some firmscan provide construction managementservices (such as field visitations), andcontract administration functions (likereviewing payment requests and reviewing

• Professional Construction ManagerContract

Your organization has separate contractswith the Construction Manager, theArchitectural Engineering firm and thegeneral contractor.

Professional ConstructionManager Contract

• Design-Build Contract

A single company under contract withyour organization handles all design,construction and constructionmanagement. The Construction Managerin this case may also be known as aCapital Expenditure Manager (CEM).

Design-Build Contract

shop drawings). Your organization hasa separate contract with the generalcontractor.

Architectural Engineering (A/E)Contract

• Design/Construction ManagerContract

This is similar to the traditionalArchitectural Engineering contract justdescribed, except the A/E firm alsoprovides Construction Managementservices such as scheduling, cost controland quality control. Your organizationhas a separate contract with the generalcontractor.

Design/CM Contract


A/E GC

Sub Sub SubCM

Owner

A/E GC

CM

Sub Sub Sub

Owner

A/E GC

Sub Sub Sub

Owner

Owner

A/E

Sub Sub Sub

GC

CM

Section II - Construction Manager Page 4

II. DO YOU NEED A CONSTRUCTIONMANAGER?

The answer to this question depends on theamount of money in your budget and theavailability, knowledge, and skills of yourstaff. This section will help you to evaluatethe need for a Construction Manager on yourproject.

A. Pros and Cons of Hiring aConstruction Manager

Advantages

• Because they are specialists, ConstructionManagers usually have more experienceand expertise than your staff. As a result,they may be able to expedite the designand construction of your project by doingevaluations more quickly and thoroughly.The sooner a project is finished, the sooneryou realize the benefits.

• Using a Construction Manager can free upyour staff to handle other responsibilities.

Disadvantages

• The cost of a Construction Manager istypically five to ten percent of the project’sconstruction budget. For large projects,this can be a lot of money.

• Hiring a Construction Manager will nottotally free up your staff, since they stillneed to prepare the competitive biddocuments, review proposals and prepareadministrative contracts. Once theConstruction Manager is hired, your staffmust manage him and be available to

answer questions, verify invoices andresolve conflicts.

• Your facility staff will not have detailedknowledge of design and constructionchanges, the reasons for the changes andthe resulting documentation.

B. Does Your Project Need aConstruction Manager?

At the end of this section is a worksheet tohelp you answer this question. These are thepoints you need to consider:

1. Is your schedule tight?

If you need to complete your energyefficiency measures by a certain date,hiring a Construction Manager may bebeneficial. Unanticipated problems willinvariably occur, and an experiencedManager can keep the project on schedule.

2. Can your staff implement the projectsthemselves?

That depends on the availability,knowledge and previous experience ofyour staff. It is common to assume thatpeople can always take on “a little morework.” Implementing energy efficiencymeasures, however, often involvessignificant time and effort. If your staff ismanaging an energy project, they may nothave time for their normal duties.Conversely, if the staff is tied up withroutine day-to-day tasks, the energy projectmay never be completed or may not beinstalled properly. That is why thecommitment of your staff’s time shouldnot be understated.

Some Construction Manager firmswillingly train your people to serve asproject managers. If you have staffavailable with some administrative andtechnical experience, training them canhave advantages such as lower projectcosts. It will also give you in-houseConstruction Managers for future projects.

3. How experienced and trained is yourstaff?

If members of your staff are to serve asyour project’s Construction Manager, theyshould be fully trained and experienced.Determine if they have the following:

• Previous Construction ManagerExperience

Keep in mind that practical on-the-jobexperience is preferable to formalizedtraining.

• Contract Administration Skills

Construction Managers overseedocuments such as contract forms,amendment forms, change orders,insurance documents, energycompliance forms and lien releases.They also should have knowledge ofinsurance, liability, bonding, and liens.

• Environmental, Health, and SafetyExperience

Installation of some energy efficiencymeasures requires the prior approval bycertain State and/or local regulatoryagencies. These agencies areresponsible for ensuring that equipment

is installed, operated and maintained ina manner that is not detrimental to theenvironment or affect the public’shealth and safety. ConstructionManagers must be experienced andfamiliar with the requirementsassociated with specific sectors such ashospitals and schools, or specificprojects such as energy generation.

• Construction Inspection andCommissioning Experience

Once energy efficiency measures areinstalled, they must be inspected,commissioned and monitored byspecially trained personnel. These taskstake considerable time and experiencein establishing and conductingappropriate performance tests. Thus,you should take these factors intoaccount before considering your stafffor these tasks. Typically, outsideinspectors and commissioning agentsare used.

4. Do you have all the information youneed to undertake this project?

In some cases, the energy audit may notcontain sufficient detail to design orprepare bid specifications for your energyefficiency measures. Consider thesequestions:

• Do You Need an Engineer?

One may be required to developconstruction drawings andspecifications. The processes of hiringone, monitoring their progress andreviewing their work is an important


task that your organization may wantto hire out.

• Do You Need to Collect AdditionalInformation?

You may need to do additional researchor make measurements before and afteryou install your energy efficiencymeasures. For example, you might needto measure light levels before and afteryou change lamps to ensure that thelevels are still within thoserecommended by the IlluminatingEngineering Society. A ConstructionManager can oversee this datacollection. Appendix A containsinformation on technical guides thatmay help in your data collection.

For new construction projects, you mayneed assistance in having a computersimulation model developed on yourproposed buildings. These models willestimate building energy use based onyour proposed equipment and operatingschedule. A Construction Manager canhelp evaluate the modeling results toensure that the projected buildingenergy use will meet your specifiedrequirements.

• Does the Project’s Scope Need to beDeveloped?

When the scope of your project variessignificantly from that outlined in theenergy audit or when you need tochoose between several possibleapproaches, it may be worthwhile tohire someone to help evaluate the newprojects.

• Does Your Construction ScheduleRequire Precise Timing?

If so, someone must establish thecritical time line needed to meet yourschedule. Your organization may wantto delegate this task to an experiencedConstruction Manager.

• Do You Need to Develop TestingRequirements?

Standards must be established forassessing when a project is completedand if the installed equipment isworking properly. Assuring that thesestandards are met may warrant the useof a Construction Manager.

5. Will this project disrupt or compromiseyour facility’s operation?

Before you install your energyimprovements, consider ways to minimizethe disruption of your day-to-dayoperations:

• Is it Feasible and Economical toComplete the Project DuringNonoperating Hours?

In order to minimize interruptions, youmay want to make improvementsduring typical nonworking hours.Careful coordination is required,however, to accomplish this smoothly.You should, however, evaluate theeconomic impact of doing work duringnonoperating hours to determine if itwill result in higher construction costs.


• Will Work Require the Shutdown ofEssential Operations?

This question is especially importantwhere critical operations such ashospital life support systems, computercenters, police and fire departments, orlaboratories are involved. Keeping suchsystems in operation requires carefulmanagement and coordination.

• What Indirect Disruptions WillResult?

The shutdown of a building’s heating,ventilating and air conditioning(HVAC) equipment or electricalsystems are examples of directdisruptions that clearly could impactfacility operations. You also need toconsider other, indirect disruptions suchas noise, dust or impeded traffic flow.

• What Are the Impacts ofUnscheduled Disruptions?

In many cases, unscheduled disruptionsof a system like electric power wouldbe inconvenient but not serious. Athospitals, computer centers, researchlaboratories, jails and other facilities,however, such a disruption could bedisastrous. The consequences ofunscheduled disruptions should beconsidered early on.

6. Is this a complex project with regulatorycomplications?

If you are simply replacing fluorescentlamps and ballasts with energy efficientones in a few buildings, you may not need

a Construction Manager. Instead, a staffwith previous project managementexperience could hire an engineering firmto prepare the performance specifications,issue the bid to select the contractor,oversee the installation and do the finalinspection and commissioning.

On the other hand, you may want to hire aConstruction Manager to oversee a morecomplicated project that involvesnumerous permits, complex installationprocedures or involves several sites.Extensive modifications of the HVACsystems, for example, or installation of anenergy management system for buildingcomplexes covering 200,000 square feetare the sort of projects that can benefit fromthe services of a Construction Manager.Another example may be energy efficiencyretrofits encompassing an entire schooldistrict and affecting multiple schools.

7. Is there enough money to hire aConstruction Manager?

Hiring a Construction Manager typicallycosts five to ten percent of a project’sconstruction budget. If you determine thatyour project needs a ConstructionManager, the price of those services shouldbe included as part of the project costidentified in your engineering feasibilitystudy or energy audit.



WORKSHEET

Do You Need a Professional Construction Management Firm?

Instructions:

Step 1: Review the Criteria and Key Questions indicated in Worksheet A and add, delete or modifythe criteria and questions based on the specific needs of your organization. Assign weightingfactors (column A) based on how important that element is to your organization. Some criteria maybe more important than others depending on your circumstance. For instance, you may want toconsider having weighting criteria ranging from zero to five, with zero being an unimportant criteriaand five being a very important criteria to your organization.

Step 2: Assign points based on how strongly the key questions are true (column B). You can usea scale of one to ten. With ten being strongly in agreement and zero being not of concern or not inagreement.

Step 3: Multiply columns A and B to get the total points for that criteria.

Step 4: Total the points for all criteria by summing the “A x B” column and putting the total inSpace C.

Step 5: Determine the maximum number of possible points if you were in total agreement with allthe key questions. Multiply each of the weighting factors in column A by 10 and then summingthem to determine the total available scoring points. Put this total in Space D.

Step 6: Compare your total points with the maximum points available by dividing the number inSpace C by Space D and multiplying by 100. Put the result in Space E. The following is onemethod of analyzing the points:

• If your points are greater than 75 percent of the total points then there is strongrecommendation to hire a Construction Manager for your project

• If your points are between 50 and 75 percent of the total points then you may want toconsider a Construction Manager.

• If your points are less than 50 percent of the total points then there is not a strong need tohire a Construction Manager.

Worksheet B is an example of a completed worksheet.

Step 7: Note that there may be other issues unique to your organization, not addressed by thisworksheet, that should be considered as part of the final decision to hire a Construction Manager.


WORKSHEET ADo You Need a Professional Construction Management Firm?

A B (A x B)Criteria Key Questions Weight Points Point

(0-10) Total

• Does my project have a tight schedule?

• Is my staff unavailable and committedto other projects?

• Does my organization lack trained andexperienced staff with constructionmanagement, contract administrationand inspection experience?

• Does my project need to be betterdefined before we start? For example,do we need to develop constructiondrawings or specifications, collectproject data, take measurements ordevelop an overall project approach?

• Will this project require carefulcoordination and management tominimize disruption of my facility? Forexample, will we need to shutdownessential systems such as electricalsupplies, HVAC or computer centers?

• Will this project require carefulmanagement to minimize indirectdisruptions, such as noise, dust orimpeded traffic flow?

• Is this a complex energy project thatrequires resolution of regulatory issuesbefore we begin?

• Does my organization have funds tohire a CM?

1. Tight schedule

2. Staff unavailable

3. Lack of trained andexperienced staff

4. Lack of project definition

5. Need for careful projectcoordination

6. Need for careful projectmanagement

7. Complicated/multi-facilityproject

8. Available funds

E

C

D

TOTAL NUMBERS IN

EACH COLUMN

TOTAL MAXIMUM

POINTS

PERCENT OF TOTAL

POINTS


WORKSHEET B (completed sample)Do You Need a Professional Construction Management Firm?

A B (A x B)Criteria Key Questions Weight Points Point

(0-10) Total

• Does my project have a tight schedule?

• Is my staff unavailable and committedto other projects?

• Does my organization lack trained andexperienced staff with constructionmanagement, contract administrationand inspection experience?

• Does my project need to be betterdefined before we start? For example,do we need to develop constructiondrawings or specifications, collectproject data, take measurements ordevelop an overall project approach?

• Will this project require carefulcoordination and management tominimize disruption of my facility? Forexample, will we need to shutdownessential systems such as electricalsupplies, HVAC or computer centers?

• Will this project require carefulmanagement to minimize indirectdisruptions, such as noise, dust or

impeded traffic flow?

• Is this a complex energy project thatrequires resolution of regulatory issuesbefore we begin?

• Does my organization have funds to

hire a CM?

1. Tight schedule

2. Staff unavailable

3. Lack of trained andexperienced staff

4. Lack of project definition

5. Need for careful projectcoordination

6. Need for careful projectmanagement

7. Complicated/multi-facilityproject

8. Available funds

TOTAL NUMBERS IN

EACH COLUMN

TOTAL MAXIMUM

POINTS

PERCENT OF TOTAL

POINTS

Step 1 Step 2 Step 3

1 4 4

2 7 14

3 7 21

1 5 5

1 5 5

1 5 5

1 7 7

2 0 0

61

120

51%E

D

Step 4C

Step 5

Step 6

Section III - Construction Manager Page 11

III. HOW DO YOU DETERMINE THESERVICES YOU NEED?

If you decide to hire a Construction Manager,you must determine which services you wantthem to provide. This section lists availableservices and helps you decide which areappropriate for your project. They areorganized in three phases — pre-construction,construction, and post construction.

At the end of this section, a worksheet willassist you in determining the scope of servicesyour project requires.

For information on bid documents to hire aCM, refer to Section V. In addition, AppendixA contains a reference list that explains howto obtain copies of standard constructionmanagement contracts, such as thosepublished by the American Institute ofArchitects (AIA).

A. Pre-Construction Phase

Several tasks must be accomplished beforeconstruction begins.

1. Identify the Most Economical and MostReliable Way to Accomplish EachProject.

Different approaches may be needed tocomplete each part of your energy projectas inexpensively and reliably as possible.Consider these options for each energyefficiency measure:

• Use Your In-house Staff

Depending on their skills andavailability, using your employees forconstruction, inspection or start-upplanning may offer the most reliableapproach for the least cost.

• Use the Contractor

If you use a construction contractor,consider their role for each energyefficiency measure. Rather than havingthem do construction only, you mightconsider a turn-key approach in whichthe contractor is responsible forconstruction, testing and start-up.

• Use Owner-Supplied Equipment

It may be less expensive for you to buyequipment directly instead of relying onthe installing contractor. This isespecially true if your project involvestight scheduling, specialized equipmentor air quality permits. Keep in mind,however, that your ConstructionManager must be kept informed tosmoothly schedule the installation ofowner-supplied equipment.

2. Decide If You Need Engineers OrAdditional Consultants.

Many energy projects require detailedconstruction documents and specializedtests, both before and after installation.Identify those requirements early on, soyou can hire the specialists you need toaccomplish your project without delays.

3. Create a Project Installation Plan.

If your energy project is complicatedenough to include different improvementssuch as lighting and HVAC systems, youshould develop a plan that considers thefollowing:

• Specific Quantities and Locations

For projects like the replacement oflight fixtures, you must specify thenumber of fixtures to be changed andtheir exact locations. When locationsand quantities are already specified inthe energy audit, a ConstructionManager may only need to confirm theinformation. If the audit does notcontain this data, however, theConstruction Manager may need toconduct an on-site inspection to collectit.

• Access and Scheduling Constraints

Many energy efficiency measuresinvolve modifications to existingoperating systems. Determine whataccess or scheduling limitationsworking with these systems pose beforebeginning your project.

• Hazardous or Dangerous Conditions

Early on, identify special conditionssuch as dangerously tight spaces, thepresence of asbestos insulation ortransformers that containpolychlorinated biphenyls (PCBs). Ifyou suspect the presence of hazardousmaterials, you should investigate your

site and, if necessary, include aremediation plan as part of the project.

• Verification and CommissioningProcesses

Each part of an energy project will havespecific criteria by which itsperformance is assessed. Before finalacceptance is granted, it will benecessary to verify that each energyefficiency measure has been properlyinstalled and is operating according tothe design specifications.

For complex or large projects, hiring aCommissioning agent may beworthwhile. A commissioning agent isresponsible for establishing theperformance test to ensure that theinstalled energy efficiency equipmentis functioning according to theestablished design specifications.Information on availablecommissioning resources is containedin Appendix A.

4. Prepare Project Documents.

Before construction begins, either yourstaff or a Construction Manager must dealwith these documents:

• Pre-bid Documents and Contracts

Choosing an engineering consultant ora general construction contractor mayrequire competitive bids. The biddingprocess involves preparing formalRequest for Proposals/Request forQualifications documents referred to as


RFP and RFQs. To prepare the RFP/RFQ, selection criteria must first bedeveloped. Once proposals are receivedby your organization, they must beevaluated. Finally, costs and contractsmust be negotiated with the winningcontractor.

• Construction Documents

Technical specifications andconstruction plans must be prepared.Bid packages and other documents alsoneed to be created. Constructiondocuments should also containperformance specifications andcommissioning plans.

• Permits and Inspections

Some projects require permits andinspections by local buildingdepartments or other regulatoryagencies. An experienced ConstructionManager who has dealt with regulationscan expedite the process; a constructioncontractor can also hire a subcontractorto meet these needs.

• Budgets and Schedules

Complex projects with many activitieswill involve several budgets andschedules. Since the budget includeslabor and equipment, both need to beaccurately estimated.

• Project Team Meetings

The more complicated an energyproject, the more important it is tocommunicate with everyone involved.

Weekly project meetings are typical,although more involved projects mayrequire more frequent meetings.

5. Provide Health and Safety Orientation.

Before the start of construction, theConstruction Manager will explain healthand safety issues to the constructionpersonnel.

6. Ensure That All Contractors Meetthe Minimum Insurance/BondingRequirements.

Many public agencies require thatcontractors carry a minimum amount ofliability insurance and can obtain aperformance bond of a certain amount.The Construction Manager will ensure thatall contractors provide your organizationwith the required insurance/bondingdocuments.

B. Construction Phase

Once construction begins, typical ConstructionManager services include:

1. Construction Site Management

Depending on the level of activity, you willneed a manager on site at least part-time,and possibly full-time, duringconstruction. The following guidelineswill help you decide the degree ofmanagement you need.

• Cost

If construction management costsexceed 10 percent of the project budget,


you should consider a full-time, on-siteproject manager.

• Schedule

Work going on at several locationssimultaneously should be monitored bya full time, on-site ConstructionManager. If construction is intermittent,however, having a part-time sitemanager may suffice.

• Several Contractor

If more than two contractors orsubcontractors are working at one time,especially if the work is at severallocations, a full-time on-siteconstruction manager should beconsidered.

• Special Requirements or Conditions

Asbestos removal, work in trenches orconfined spaces, or modifications tocritical or essential systems typifiesunusual conditions that benefit fromhaving a full-time site manager.

2. Construction Inspection

Energy projects should be monitored toensure that the work complies with theconstruction documents.

• Inspection Management

Construction Managers generally takefull responsibility for the inspectionprocess. Exceptions: 1) if your facilityhas qualified construction inspectors; 2)

if inspection by a third party is specifiedin the contract with the engineer orarchitect; or 3) if a public agency isavailable to do the inspection.

• Inspection Personnel

If you have qualified in-house staff, theymay be able to do inspections.Otherwise, the Construction Managercan use his staff or hire subcontractors.If subcontractors are used, the Managershould provide you with verification ofthe subcontractor’s qualifications andpast performance.

3. Construction Support Services

Typical support services duringconstruction include:

• Submittal Review

Contractors are normally required tosubmit data on construction equipmentand materials they are using. Unlessyour staff prepared constructiondocuments, the Construction Manageris usually responsible for reviewing thisinformation. He will generallycoordinate this task with the projectdesigner/engineer.

• Manufacturing Inspection

Special equipment or materials —things that are owner-supplied, unique,or proprietary — may occasionallyrequire factory inspection. Unless yourfacility has qualified staff, this shouldbe the Construction Manager’sresponsibility.


• Change Orders

Your organization should have finalapproval on change orders, especiallythose involving major modifications inthe project’s scope or budget.Construction Managers are responsiblefor reviewing, processing andsubmitting all contractor invoices toyou for final approval.

• Schedule and Budget Updates

As construction progresses, either yourstaff or a Construction Manager needsto update schedules and budgets.

• Project Meetings

The construction team should holdweekly meetings to discuss the statusof the project, just as they did beforeconstruction began.

• Progress Reports

The Construction Manager shouldprepare periodic reports discussing theproject status, budget and schedule.Any problems should be discussedincluding the method of resolution.

4. Commissioning, Final Testing, andAcceptance

The project engineer working with acommissioning agent often develops thecriteria and performance tests used todetermine when your energyimprovements are correctly installed and

your design standards met. If thisinformation is not included in theconstruction contracts, developing criteriaand coordinating testing becomes theresponsibility of either the ConstructionManager or your facility. If yourorganization has established proceduresthat are applicable to all constructionprojects, the CM can ensure that yournewly installed energy efficiencymeasures meet these requirements.

C. Post-Construction Phase

Once construction is complete, these issueswill need to be addressed:

1. Operation and Maintenance Training

If the project involves installation ormodification of equipment unfamiliar toyour staff, the Construction Managershould ensure that facility staff are trained.This includes ensuring that the equipmentmanufacturer or supplier provides trainingand Operation and Maintenance (O&M)manuals for the installed equipment.Delivery of manuals and training shouldbe required by the contract yourorganization has with the equipmentmanufacturer or supplier.

If equipment was pre-purchased by yourorganization, preparation of the O&Mmanual and needed training may becontracted to one of the project’sconstruction team members. Thisresponsibility, too, must be established inthe appropriate team member’s contract.



2. As-built Drawings

If your project involves modifications toexisting systems or the installation of newequipment, the contractor should provideas-built drawings. The ConstructionManager should require the contractorprovide you with at least three sets —archival, working and plant drawings.

3. Contract Closeout

Before contracts are closed out, make surethe construction site is properly cleanedand restored and that constructionequipment is removed. All change ordersshould be finally resolved, along with thepayment of any remaining contractorinvoices. Coordination of these matterscould be a Construction Manager’sresponsibility.


WORKSHEET

Which Construction Manager Services Do You Need?

Instructions:

The following checklist will help you determine the Construction Manager services needed foryour project. Check the services that are and are not needed and indicate who will provide theservices. The list also will help you prepare bid documents to select a Construction Manager, asexplained in Section V.


WORKSHEET

Which Construction Manager Services Do You Need?

REQUIREMENTS Service is Service is Who will Needed Not provide the

Needed service?

A. Pre-Construction Phase

B. Construction Phase

1. Identify the most economic and reliable

way to accomplish each project

2. Do you need engineers or other

consultants

3. Create a project installation plan

4. Prepare project documents

• Prepare bid documents for contractor

• Evaluate and select winning contractor

• Coordinate contract negotiation and

preparation

• Manage the preparation of construction

documents

• Oversee permitting and other

regulatory activities

• Develop and monitor budgets and

schedules

• Conduct project meetings

• Provide health and safety orientation

• Ensure that all contractors meet the

minimum insurance/ bonding

requirements

1a Do you need a full-time on-site

construction manager, or

1b Do you need a part-time on-site

construction manager

2 Perform construction inspections

• Inspect mechanical systems and

components

• Inspect electrical systems and

components

• Inspect instrumentation and controls


REQUIREMENTS Service is Service is Who will Needed Not provide the Needed service?

C. Post Construction Phase

3. Provide construction support

• Review data on construction

equipment and materials

• Provide factory inspection of

special equipment

• Review change orders

• Update construction schedules and

budgets

• Conduct team meetings

• Prepare progress reports

4. Develop criteria for commissioning,

final testing and acceptance

1. Prepare operation and maintenance

manuals

2. Provide training

3. Require the preparation of as-built

equipment list or drawings

4. Close out construction contracts

Section IV - Construction Manager Page 20

IV. HOW DO YOU ESTIMATECONSTRUCTION MANAGEMENTCOSTS?

Construction management services generallycost between five and ten percent of a project’sbudget. Final costs may vary, however,according to the size, complexity and scheduleof the project and prevailing marketingconditions in the local area.

A. What Factors Can Affect the Cost?

Estimated Construction Manager costs varywhen:

• The project’s scope is limited and involvesexpensive equipment.

• The project is remote, away from yourheadquarters or your satellite offices.

• The project involves work in manylocations at one time.

• The project requires close coordinationwith the everyday functions of yourfacility.

• The project has flexible schedulingrequirements.

• Your facility has qualified staff who isavailable to assist the ConstructionManager.

• The project has complex regulatorypermitting requirements.

B. How Do I Estimate the Cost?

Construction Manager services typically rangebetween five and ten percent of a project’sestimated cost of construction. Compare thisestimate to the actual bids received from theprospective Construction Management Firms.Section VI contains information fordetermining the reasonableness of constructionmanagement costs.

Because of the laws of supply and demand,the actual cost may be higher than yourestimates if the demand for ConstructionManagers is high. On the other hand, if themarket for Construction Managers is weak,firms will compete more aggressively foravailable work. As a result, actual costs maybe lower than your estimates.

There are two components to a ConstructionManager’s price. The first is the level of effort,generally expressed in terms of labor hours.The second is the labor cost, generallyexpressed in dollars per hour.

• Level of Effort

This represents the number of labor hoursrequired to complete a task. The task maybe a specific one accomplished in arelatively short time, such as evaluatingcontractor proposals. It can also be anongoing effort, such as providing full-timesite management.

Each project has its own specific level ofeffort, based on the number of servicesrequired. Reference documents such, asMeans Building Construction Cost Data

Manual can provide estimates of the timeneeded to complete various tasks.Additional cost estimating guides andresources are listed in Appendix A.

• Labor Cost

Labor cost varies according to the type ofskills required and the location of theproject itself. Labor costs and regionaladjustment factors also can be obtainedfrom estimating guides like MeansBuilding Construction Cost Data Manual.

Categories for Construction manager laborinclude:

• Project/Construction Managers• Senior/Specialty Inspectors• Office Engineers• General Inspectors• Administrative Support Staff

Section IV - Construction Manager Page 21

V. HOW DO YOU PREPARE THEDOCUMENTS TO HIRE ACONSTRUCTION MANAGER?

Previous sections mentioned the need toprepare bid documents called Request forProposals (known as RFPs) and Request forQualifications (known as RFQs). This sectionexplains these documents; there is a sampleRFP/RFQ in Appendix B.

A. Defining RFP and RFQ

The terms “RFP” and “RFQ” vary from oneorganization to another. The main differenceis the role that price places in the selectionprocess. Here are definitions used in theconstruction industry:

• RFP

This document defines the services beingsought and, typically, the maximum pricean organization is willing to pay for thoseservices. The proposal requires companiesoffering bids to supply information on pastexperience and references. The winningbidder is the company most technicallyqualified who can do the work for thelowest price.

• RFQ

This document also defines the servicesbeing sought. Selection of the winning bidis based on technical qualifications and theprice is negotiated with the chosen firm.If a price is required as part of the RFQ,the bidder typically provides it in aseparate, sealed envelope. This price is notconsidered until after the technicalselection has been made.

An option that combines an RFP and an RFQis to issue an RFQ, develop a shortlist ofqualifying firms that meet the basicrequirements, and then issue an RFP only tothese firms.

Your facility may have certain legalrestrictions associated with selectingprofessional services based on price. Yourlegal counsel and contract administratorsshould be consulted as part of the decision touse an RFP or an RFQ.

B. Identifying Potential ConstructionManagers

Ensuring that potential CM candidates areincluded in your bid list is important. Failureto include the best-qualified firms as potentialcandidates could affect the success of yourproject.

Typical methods for identifying candidate CMfirms include:

• Advertising in newspapers or trademagazines, such as the Daily PacificBuilder or Engineering News-Record.

• Checking lists of interested companies onfile with your organization.

• Asking for references from otherorganizations that may have used similarservices.

C. Preparing the RFP/RFQ.

There is a sample RFP/RFQ in Appendix Bthat can be modified to meet the needs of yourspecific project. Instructions that follow willhelp you determine which sections should be

Section V - Construction Manager Page 22

added, removed or modified based oninformation you have developed so far in thisdocument.

The following lists the minimum sections tobe contained in an RFP/RFQ. A descriptionof the information in each of these sectionsfollows the list.

• Summary• Introduction• Description of project• Scope of Work• Proposal format• Contract terms and conditions (with

specific project exceptions noted)• Selection process• Closing

1. Summary

Provide a one-page summary that can besent to all companies on your mailing listto assess interest in receiving the detailedRFP/RFQ. The summary should providegeneral information about the RFP/RFQand include:

• Purpose

Indicate the goals and objectives of theRFP/RFQ.

• Budget

In an RFP, specify the amount of moneyyou have to work with, setting amaximum upper limit. The fundsavailable do not need to be indicated inthe RFQ, since the project’s cost willbe the subject of negotiations with thehighest technical scoring bidder.

• Due Date

Indicate the exact date and time youneed proposals returned, along with aspecific mailing or delivery address.Specify whether the time given refersto the post-marked date or the time theproposal is physically received in youroffice.

• Schedule for Selection

Explain your timetable for the selectionof a Construction Manager. This shouldinclude dates for the following:

! RFP/RFQ issuance

! Pre-bid meeting (or the site walk-through, if applicable)

! Proposal submittal deadline

! Notification of short list firms (ifapplicable)

! Selection of winning CM bid

! Project start

! Project complete

• Contact Person

Indicate who in your organization willbe responsible for responding toquestions on the RFP/RFQ.

2. Introduction

This brief section should:


• Discuss the Services Requested

Explain that you are requestingConstruction Management services andidentify the specific ones desired, asdetailed in Section III.

• Indicate the Location of YourOrganization and/or Project

Make it clearly understood if the projectsite is different from your organization’slocation. Also, specify if the project siteis available for inspection prior tosubmittal of the proposals.

• Summarize the RFP/RFQ

Define the project’s purpose, discuss theapproach to be taken, describe theschedule and, if the document is an RFP,the budget.

• Outline the Selection Method

Explain whether the selection of acontractor will be based on technicalqualifications alone (RFQ) or whetherit will also consider the lowest bid(RFP). Discuss if the cost of serviceswill be handled through negotiations ora separate cost proposal. Also, indicateif shortlisting will be used to eliminatelower-ranked proposals or if aninterview will be part of the selectionprocess.

• Specify Any Restrictive Conditions

Identify any small business, minority,women or disabled veteran business

enterprise requirements that areimposed by your organization.

3. Description of Project

To clarify the services required from theConstruction Manager, the followingdescriptions are usually included:

• Overall Project Description

In broad terms, describe the project andexplain if the work to be done is a newinstallation, equipment replacement orretrofit.

• Energy Efficiency Measures to beImplemented

Describe each measure in a brief, singlesentence, such as:

! Remove existing fluorescent lampsand ballasts and replace with T-8lamps and electronic ballasts.

! Install a direct digital energymanagement system to control theoperation of existing HVACequipment.

If an energy audit was completed thatdescribes the projects to beimplemented, it should be included aspart of your RFP/RFQ. This can eitherbe an attachment to your bid documentor made available upon request.

• Schedule

Discuss the timeline you plan to utilize,including start and finish dates for each


project phase. This should include anyknown scheduling constraints such as:

! Work that must be completed atnight or on weekends.

! Work in a certain area that must becompleted by a specific date.

! Work in a certain area that cannotbe started before a specific date.

• Project organization

Carefully explain the roles,responsibilities and relationshipsbetween your staff, the ConstructionManager, the engineering consultant (ifone is required) and any contractors.Designate the contractor’s respon-sibilities. Decide if engineering andcontractor contracts will be with theConstruction Manager or with yourfacility. Think about these questions:

! What are your staff’s respon-sibilities?

! Who will decide schedulingchanges and budget or legal issues?

! What will be the contractualarrangements?

• Site Plan

Include a plan if the work takes placein several buildings at the project site.

• Special Work Requirements

Identify special work requirementssuch as the presence of asbestos,polychlorinated biphenyls (PCBs) orother hazardous substances, anddangerous conditions such as confinedwork spaces. Spell out the exactlocations of these problems. It isimportant to note special requirementssince they could have major impactson costs and the responsibilitiesundertaken by the ConstructionManager.

4. Scope of Work

The scope of work or work statement is adescription of the services to be providedby the Construction Manager (see SampleRFP/RFP in Appendix B). It shouldinclude the following:

• List of Services You Require

Completing the worksheet at the endof Section III should give you theinformation required to compile a listof needed services. If price is aselection criteria — or if a fixed feecontract will be used with theConstruction Manager — descriptionsof required services must be specific.Note the differences between these twoexamples:

Specific Descriptions

CM shall conduct one project reviewmeeting each week.


CM shall provide an average of fourhours a week of regulatory complianceassistance.

Non-Specific Descriptions

CM shall conduct project reviewmeetings when requested.

CM shall provide regulatorycompliance assistance as required.

• List of required services, brokendown by project phase

This will help you evaluate proposalsand to monitor budgets and schedulesonce construction begins. Examples oftypical project phases include:

Development Phase

Decide whether you want aConstruction Manager to help youdevelop a project installation plan. If so,the CM can determine the need forconsultants and contractors, developbudgets or schedules, identify anypermit requirements and help to set theresponsibilities of your staff.

Design Phase

Indicate if construction drawings andspecifications by an engineeringconsultant are needed. ConstructionManagers will define the process forselecting consultants, clarify everyone’sresponsibilities and fine-tune the budgetand schedule.


Bid and Award Phase

If you are selecting a constructioncontractor by competitive bid, the CMwill prepare bid documents, arrangepre-bid meetings and site-walksthrough, evaluate bids and develop theconstruction contract.

Construction Phase

During construction, CMs usuallymonitor budgets and schedules to keepthe project on track. They also processchange orders, assist with permits andarrange for required inspections.

Project Completion Phase

Either the Construction Manager or hissubcontractors will be responsible forfinal testing, start-up and acceptance ofthe project, resolution of change ordersand contract disputes and preparationof as-built drawings and operation andmaintenance manuals.

5. Proposal Format

Clearly spell out the issues you wantprospective bidders to address. Beingprecise up front ensures that their proposalswill address the issues that are importantto you.

Having all bidders respond to a consistentset of questions also will help you choosebetween proposals, since the questions canform the basis for your final selectioncriteria.

Have each firm answer these questionsabout your project:

• Do They Understand It?

Ask prospective bidders to explainwhat they see as the scope andobjectives of your energy project.

• What’s Their Approach?

Have them outline how they willhandle the issues raised in your RFP/RFQ. Prospective firms can use thissection to highlight unique servicesthey offer, or make cost-savingsuggestions about materials orequipment.

• Who Will Do the Work?

Ask bidders to describe the people theyplan to use on the project. Have theminclude:

! An organization chart showingteam members and their role in theproject.

! Resumes for each team member.

! A brief description of eachmember’s experience and theirproposed role for your project.Identify those with engineering orcontractor licenses and give thelicense numbers.

! Their projections, by category andtask, of the number of hours oflabor needed to accomplish the

project.

! A commitment that key employeeswill remain on the project for itsduration.

! A breakdown, by percent, of anyminority, women and disabledveteran business enterprises theyplan to hire.

• What Are the Firm’s Qualifications?

Have prospective bidders explain theirfirm’s experience on similar projects.They should include:

! Brief descriptions of the servicesthey provided and the size andscope of the work. Have them listconstruction costs, dates and thenames of participating teammembers.

! A biography of the firm, includingyears in operation, office locations,total number of personnel as wellas the number of personnel in thelocal office.

! A list of projects the firm currentlyhas underway, including the dollarvalue and percent of completion.

! Financial references and a copy ofthe latest financial report.

! A description of insurancecoverage and limits. If the firm isbonded, they should include thename of the bonding firm.


! Identification of any real orperceived conflicts of interest. Sucha conflict could exist, for example,if a Construction Management firmwas affiliated with the supplier of aproduct you plan to install.

• Do They Have References?

When responding to an RFP/RFQ, afirm must include a list of references.These should include contact names,positions, addresses, phone numbers,and a brief description of the work thefirm provided them. A minimum of fivereferences from projects similar toyours is recommended. This last pointis important; a firm could haveperformed exceptionally on a freewayconstruction project but have noexperience with energy efficiencyproject installations.

• Are There Clarifications?

The responding firm should identifyany additions or deletions they feel arenecessary to the scope of work or yourorganization’s standard contract terms.Identifying these clarifications herehelps you to evaluate proposals anddevelop contracts.

• What Is the Cost?

Cost is addressed differently in an RFPthan in an RFQ.

! RFPs

Cost proposals are provided in aseparate, sealed envelope. The

proposal identifies the hourly ratesfor each member of a ConstructionManager’s staff who will beworking on the contract. It detailsthe number of hours to be spent oneach task, the firm’s generaladministrative expense, overheadand estimated direct expenses.

It is important that the individualsand amount of time committed toyour project are consistent betweenthe technical and cost proposals.The CM firm that meets theminimum technical score and hasthe lowest cost proposal is generallyawarded the work.

! RFQs

Here, the responding firm with thehighest technical rank is asked tosubmit its cost for the workdescribed. It may be helpful to havethe bidder with the highest technicalscore complete a form listing eachof their staff that will be workingon the project, the specific taskassigned, time commitment andtheir hourly rates. Again, it isimportant that there be consistencybetween the technical and costproposals.

Once this is done, your organizationcan negotiate cost with this firmuntil a mutually acceptable amountis reached. If agreement is notreached, your organization canbegin negotiations with the nexthighest ranking firm.


• Any Other Considerations?

It is often helpful to limit the numberof pages you will accept in a proposalto encourage succinctness.

Indicate the number of copies of theproposal you need and any unusualdelivery instructions. The number ofcopies is generally determined by thenumber of people in your organizationreviewing it.

6. Contract Terms and Conditions.

Clearly identify any revisions, additions,or deletions to your organization’sstandard terms and conditions that applyto your project.

Be sure to review your organization’sstandard contract terms and conditions toensure that issues specific to this projectare addressed. Any required changesshould be clearly identified in the RFP/RFQ.

It is essential that each potential CM firmhas the opportunity to review the standardor revised contract terms and conditionsthat apply to the planned project. Thishelps to avoid conflicts with firmsunwilling to comply with the contract. Italso puts your organization in a strongerbargaining position, since firms mustrespond to your terms and conditionsrather than proposing their own.

If a proposed Construction Managementfirm recommends modifications to yourstandard contract, have your legal staff


review and approve the revisions — thechanges will become part of a legallybinding contract.

7. Selection Process.

Section VI provides information onevaluating and ranking submissions.Modified, these can become the criteriaused to evaluate each proposal. Refer tothe sample RFP/RFQ in Appendix B forexamples of typical selection criteria.

In your considerations, make sure youinclude any requirements that bidders mustmeet to be eligible for selection, such asinsurance coverage and contractorlicenses.

8. Closing.

While Construction Management firms arepreparing responses to your RFP/RFQ, itis important that someone in yourorganization be available to answerquestions. Provide the name, address andtelephone number for your contact person.If their availability is limited, provide abackup name and telephone number.

If telephone calls or visits to your staffabout RFP/RFQ issues will be prohibitedor limited during the preparation period,clearly state these restrictions up front. Inlight of such limitations, you shouldarrange a pre-bid meeting or site walkthrough to allow prospective firms to askquestions.

D. Developing the Scope of Work

After selecting a construction manager, the nextstep is to develop a contract that contains theirscope of work. You can use the informationand checklists previously completed inSection III to help you identify the specifictasks and work requirements. These tasks mustbe tightly written to ensure that the workproducts are completed to your satisfaction andprovides your organization with flexibility tomake changes without compromising theproject. Appendix C contains recommenda-tions for developing a scope of work for theconstruction contractor.

Section VI - Construction Manager Page 30

• Awards for Doing Similar TypeProjects

If awarded for projects similar to yours,accolades can indicate the firm’sreputation for quality work.

• California Contractor’s License

If the prospective ConstructionManagement firm will do any of theconstruction work, it must have a validCalifornia Contractor’s License. Checkthat the license is current. See if anycomplaints have been registered withthe California State Licensing Board inSacramento. Verify that the licensetype is appropriate for the work to beperformed. Appendix A containsinformation on how to contact theCalifornia State Licensing Board.

B. Can The Firm Handle YourProject?

Determine whether the company ispresently able to take on your projects.Information that indicates the firm’scapacity includes:

• Number of Employees On StaffWho Have Done Similar Work

There should be an adequate numberof experienced staff who can beassigned to your project.

• Availability of Employees

The firm should be able to assign theright people to your job. Their


VI. HOW DO YOU CHOOSE THERIGHT CONSTRUCTIONMANAGER?

By this point, you should have defined theConstruction Management services you need,prepared and distributed an RFP/RFQ that asksall the appropriate questions of eligible CMfirms, and have received back their proposals.This section provides guidelines for evaluatingtheir responses and making your choice.

At the end of this section is a worksheet thatwill assist you in your selection. Save thecompleted worksheet to document yourdecisions.

These are the factors on which your choiceshould be based:

A. How Experienced Is the Firm?

This is the most fundamental selectioncriteria. Information that will indicate acompany’s level of experience includes:

• Number of Similar Projects

Projects should be of similar scope andcontract amount. Check to see if thiscompany has a proven track record withprojects like yours.

• Years of Experience

This will help indicate if the CM firmis a known, reputable company.

organization should be able to moveanother competent person to yourproject if the one assigned leaves or isnot performing satisfactorily.

• Commitment of Employees

It is important that a ConstructionManagement firm’s key staff becommitted for the duration of yourproject. A company’s assurances,combined with the number ofexperienced staff, help to determinetheir level of commitment.

• Status of Current Work

The dollar value and percent completeof a firm’s current projects will indicatewhether they can accommodate yourproject without affecting their ability todo a quality job.

• Financial Capacity

An annual financial report can indicateif a firm is financially solvent and willbe able to complete the project.

• Bonding Capacity

The Construction Manager may need tobe bonded to meet the performancerequirements of your project. Requesta statement of bonding capacity and thename of the bonding firm. A higherbonding capacity generally indicates astronger firm.

• Insurance Requirements

A firm must be able to obtain the typesand levels of insurance coveragerequired by your organization.

C. How Capable Is the Firm’s PresentStaff?

Experience of a Construction Managementfirm could be very different from theexperience of its employees, especially ifthere has been a high employee turnoveror if the company is relatively new. Checkon the following:

• Number of Employees with SimilarExperience

This total indicates the breadth ofexperience that the company has todraw upon to provide the services yourequire.

• Employees with Long-TermExperience

The number of staff members with 15years or more of relevant experience canhelp you gauge the depth of thecompany’s expertise.

• Number of Professional Registrationsor Licenses

The availability of employees holdingContractor’s Licenses or CaliforniaProfessional Engineer Registrationssuggests whether a firm cansuccessfully manage subcontractors andengineering firms who may have to


prepare construction documents.Appendix A contains information onhow to contact these organizations.

• Employees Proposed for Your Project

A prospective firm should supply a listof employee names and the roles theywill fill on your project. A sample ofsuch a list can be found in Appendix B.

Resumes for each proposed project staffmember should be furnished as well, toindicate the level of staff experiencebeing offered. It is especially importantto review carefully the credentials of theproposed on-site project manager.

D. How are the Firm’s References?

It is important to obtain an independentassessment of the firm’s past performanceand not to rely entirely on informationprovided in the proposal. A reference listshould include names, addresses, phonenumbers and position titles of each contactperson, plus a brief description of the workprovided by the firm. A minimum of fivereferences should be supplied fromcompanies that used the CM firm forprojects similar to yours. Contact eachreference to determine the following:

• Description and Completion Date ofthe Reference’s Project

This will help you determine if theexperience is relevant. Find out thenames of key CM staff who worked onthe project.

• Strengths and Weaknesses of the CMFirm

Ask about problems occurring duringthe project. Also inquire about the waysthe CM firm may have excelled in itsjob.

• Adhering to Schedule

Determine how successfully theConstruction Manager kept to theproject schedule.

• Adhering to Budget

Ask questions about change ordercharges and overall costs. This will helpto determine the firm’s ability to staywithin the budget.

• Achieving Quality

Inquire about overall performance. Didthe CM firm receive a quality productfrom the contractor and the productpleased the client?

• Recommendations of the Reference

A happy former client is the besttestament to a Construction Manager’sperformance.

E. What is the Firm’s Approach?

When a firm explains how it willaccomplish your project, it shows howwell it understands your requirements.Information to look for in a proposedproject approach includes:


• Proposed Staff

The size and makeup of the project’sstaff indicates how well the firmunderstands the scope and schedule ofyour job.

• Proposed Schedule

The timeline given in the firm’sproposal demonstrates its understandingof your projects’ complexities.

• Responsiveness to Special Issues

Make sure a firm’s proposal addressesyour project’s unique access orscheduling constraints, special workingconditions or other issues such as theinvolvement of your staff.

F. Are Costs Reasonable?

If the proposal includes the cost forConstruction Management, that figure andthe associated labor hours provide anotherindication of how well the firm understandsyour project. Information to look forincludes:

• Comparison of Prices

The initial energy audit should have costestimates. Compare these figures to theestimate offered by the CM firm.Construction Management servicesgenerally average five to ten percent ofthe project’s estimated cost. This

amount could be higher or lower,however, depending on your siteconditions and the scope of work to bedone.

• Comparison of Estimated Hours

Using estimated costs, you canapproximate the number of hours oflabor your project will take to complete.Contrast your projections with thehours anticipated by a prospective CMfirm. You can often obtain the bestassessment by comparing one proposalto another.

• Comparison of Average HourlyRates

Divide the total labor cost by the totalnumber of labor hours to obtain anaverage hourly rate. When youcompare this figure to the proposedbilling rate for the project manager andother senior staff, you can determinewhat level of staff will be supplyingmost of the labor on your job.

G. Does the Firm Meet Your PublicAgency Criteria?

Many public sector projects requireparticipation by small businesses and/orminority, women and disabled veteranbusiness enterprises (MBE/WBE/DVBE).In such cases, responding firms mustcomply with these rules in order to beeligible for consideration.



WORKSHEET

How to Choose the Right Construction Manager

Instructions:

This section contains a sample worksheet to help you select and evaluate proposals from constructionmanagement firms. Worksheet A is a blank worksheet and Worksheet B shows a completedworksheet following the instructions given in this section. These worksheets will help you selectthe construction manager who best meets the needs and requirements of your project. The criteriaindicated in the worksheet must be consistent with that listed in your RFP/RFQ. Refer to AppendixB for additional information on the RFP/RFQ, sample evaluation criteria and weighing factors.

Complete one Worksheet A for each bidder. The following are the steps to complete Worksheet A:

Step 1: In Space A, indicate the name of the bidder.

Step 2: In column B, lists the criteria to be used to evaluate each proposal. These criteria must beconsistent with those contained in your RFP/RFQ.

Step 3: In column C, indicate the weighing factors for each of the criteria. Weighing factors are anindication of the relative level of importance of each criteria to your organization. Criteria that arevery important are given a high weight. Less important criteria given a lower weight. For instance,you can use numbers from 0 (unimportant) to 10 (extremely important). These weighing factorsshould be the same as those contained in your RFP/RFQ.

Step 4: In column D, rank each firm’s proposal against the other proposals for each criteria.

a. Use numbers 1 through “X,” with “X” being the number of firms proposing. For example,if there are five proposals, the highest number would be “5.”

b. The firm with the highest rank for a criteria should be assigned the highest number, thelowest rank firm would be assigned number 1. If two or more firms are equivalent for a criterion,it is acceptable to assign the same ranking to the two firms. The highest score in this case wouldbe “X”-1 (with two firms ranked equal).

Step 5: Calculate the total score for each firm by multiplying the weighing factor in column Cwith the rank or points in column D.


Step 6: Add total points for each firm. The highest points equals the highest ranking. If you aredoing a RFQ, you can shortlist the highest ranking firms and proceed with interviews. After theinterviews, the highest rank firm will have the first opportunity to negotiate rates with yourorganization.

Step 7: Indicate any comments or reasons for the assigned points or rank. This could be helpfulwhen you debrief the unsuccessful bidders.

It should be emphasized that the previous method of evaluation and ranking is only one of severalavailable. Another method is to develop a score by ranking according to defined criteria, withoutcomparing each proposal to another. In this case, points would be awarded on a standard scale,such as:

• Exceptional (10 points): The response satisfies the requirements in a superior manner.

• Above Average (6-9 points): The response satisfies the requirement in an exemplary manner.

• Average (5 points): The response satisfies the requirements.

• Below Average (1-4 points): The response is minimally acceptable.

• Fail (0 points): The response is not in substantial accord with RFP/RFQ requirements.

These assigned points would be placed in column D, next to the appropriate selection criteria. Youwould then multiply the assigned points by the weighing factor as indicated in Step 5 and determinethe total score for each firm.


WORKSHEET A

Proposal Evaluation and Ranking

Bidder: _____________________________________________________________A

Selection Criteria Weighing Rank/ Score Comments (B) Factors Points (C) x (D)

(C) (D)

Total Points

Maximum Points *

* The maximum points are determined by multiplying each weighing factor (column C) bythe largest number of points possible for that category (column D).


WORKSHEET BProposal Evaluation and Ranking (Completed Sample)

Bidder: XYZ Company A

Selection Criteria Weighing Rank/ Score Comments (B) Factors Points (C) x (D)

(C) (1-10) (D)

Understanding project needs 10 8 80-- Proposed project staff-- Proposed schedule-- Responsiveness to project issuesIdentification of innovative approaches 7 5 35and ideasFirm experience 8 7 56-- Number of similar type projects-- Years of experience-- Number of awards for doing similar

type projects-- California Contractor’s Licenses,

type and standing-- Other licensesCommitment to your project 8 8 64-- Number of employees who have

done similar work-- Availability of key CM staff-- Dollar value and status of current

projects (e.g.,% complete)Personnel experience 8 7 56-- Number of employees with similar

CM experience-- Number of employees with more

than 15 years of similar experience-- Number of employees with

California Professional Engineerregistration

Financial status 8 7 56-- Financial capacity-- Bonding capacity-- Insurance coverageReferences 8 7 56Quality of proposed project team 7 7 49

Total Points 452Maximum Points * 640

* The maximum points are determined by multiplying each weighing factor (column C) by the largestnumber of points possible for that category (column D).

Step 5Step 1 Step 3 Step 4

Step 7Step 2

Step 6

- Construction Manager

APPENDIX AADDITIONAL INFORMATION

Information on Construction Managers

Construction Management Association of America7918 Jones Branch Drive, Suite 540McLean, VA 22102-3307Telephone: 703-356-2622www.cmaanet.org/cmaa_main.htmThis organization has information about construction management and how to identify qualifiedConstruction Manager professionals for current and future projects.

Contract Samples

• The American Institute of Architects (AIA)1735 New York Avenue, N.W.Washington, D.C. 20006Telephone: (202) 626-7300Fax: (202) 626-7424www.aiaonline.com

Cost Estimating Guides

• Means Building Construction Cost Data ManualMeans Electrical Cost Data ManualMeans Mechanical Cost Data ManualR.S. Means Company, Inc.Construction Publishers and ConsultantsConstruction Plaza, 63 Smiths LaneKingston, MA 02364-0800(800) 334-3509www.rsmeans.com

• Dodge Cost Guides, Dodge Unit Cost Guide, Dodge Electrical Cost Guide and Dodge Repairand Remodel Cost Guide.Marshall and Swift911 Wilshire Boulevard, Suite 1600Los Angeles, CA 90017-34091-800- 421-8042www.marshallswift.com

Appendix A Page A-1


• General Prevailing Wage DeterminationsState of California, Department of Industrial RelationsP. O. Box 420603San Francisco, CA 94142-0603(415) 703-4780www.dir.ca.gov/dlsr/statistics_research.html

Technical Information

• Lighting Handbook, Reference and ApplicationIlluminating Engineering Society ofNorth America, Publications Department120 Wall Street, 17th FloorNew York, New York, 10005(212) 248-5500www.iesna.org/

• Advanced Lighting GuidelinesCalifornia Energy Commission, Publications1516 Ninth Street, MS-13Sacramento, CA 95814(916) 654-5200www.newbuildings.orgThe 1993 version is currently out of print but it can be downloaded at <www.newbuildings.org>.The 1993 guidebook is currently being revised and a new version should be available in late2000.

• Non-Residential Manual for Compliance with 1998 Energy Efficiency Standards(#400-98-005)California Energy Commission, Publications1516 9th Street, MS-13Sacramento, CA 95814(916) 654-5200The standards may be obtained through the Publications Office or downloaded at:<www.energy.ca.gov/title24/index.html>

Appendix A Page A-2


• ASHRAE Handbook1997 Fundamentals1996 HVAC Systems and Equipment1999 HVAC Applications1998 RefrigerationAmerican Society of Heating, Refrigerating and Air Conditioning Engineers1791 Tullie Circle, N.E.Atlanta, GA 30329(404) 636-8400www.ashrae.org

Commissioning and Operation and Maintenance Resources

• Model Commission Plan and Guide SpecificationsPECI921 SW Washington Street, Suite 312Portland, Oregon(503) 248-4636www.peci.org/cx/This web site by the Portland Energy Conservation Incorporated contains information onbuilding commissioning, operation and maintenance strategies and links to other organizationsthat have developed commissioning plans and specifications.

Project Management Handbooks

The Energy Commission has developed a series of handbooks designed to help public agencies andothers implement energy efficiency projects. The following handbooks are currently available:

• How to Hire an Energy Services Company• How to Hire an Energy Auditor to Identify Energy Efficiency Projects• How to Finance Public Sector Energy Efficiency Projects• Energy Accounting: A Key Tool in Managing Energy Costs• Guide to Preparing Feasibility Studies for Energy Efficiency Projects• How to Procure Electricity and Natural Gas in a Competitive Market Environment

(available Summer 2000)

These documents can be downloaded through the Energy Commissions Web Site at<www.energy.ca.gov/efficiency/reports/html> or contact the Energy Commission at the followingaddress for a copy:

Appendix A Page A-3


California Energy CommissionEnergy Efficiency DivisionNonresidential Buildings Office1516 Ninth Street, MS-26Sacramento, CA 95814Telephone: 916-654-4008Fax: 916-654-4304e-mail: [email protected]

Equipment Specifications

• Building Specifications for Energy Efficient EquipmentAs a contractor in the Energy Commissions Public Interest Energy Research Program, EleyAssociates is developing equipment specifications for energy efficient equipment. A draftversion of the specifications will be available in late 2000. Information on the specificationswill be posted on the Eley Associates Web Site.www.eley.com

• Master SpecificationsVeterans Administrationwww.va.gov/facmgt/standard/spec_idx.htmThis site contains over 300 master specifications for construction projects such as medical,office and utility buildings.

• The Construction Specifications Institute (CSI)99 Canal Center Plaza, Suite 300Alexandria, VA 22314(800) 689-2900, (703) 684-0300www.csinet.org

• Federal Energy Management SystemMaster Specification for lightingwww.erendoe.gov/fem/resources/masterspec.html

Appendix A Page A-4


Licensing Boards

• California Board for Professional Engineers and Land SurveyorsMailing Address: Post Office Box 349002, Sacramento CA 95834-9002Street Address: 2535 Capitol Oaks Drive, Suite 300, Sacramento CA 95833-2944Telephone: (916) 263-2222www.dca.ca.gov/pels

• California Contractors State License BoardMailing Address: Post Office Box 26000, Sacramento, CA 95826Street Address: 9821 Business Park Drive, Sacramento, CAInformation Technicians: (916) 255-390024 Hour Licensing & Consumer Information: 1-800-321-CSLB (2752)www.cslb.ca.gov

Appendix A Page A-5

- Construction ManagerAppendix A Page A-6

- Construction ManagerAppendix B Page B-1

APPENDIX B

SAMPLE REQUEST FOR PROPOSALS (RFP)/REQUEST FOR QUALIFICATIONS (RFQ) FORCONSTRUCTION MANAGEMENT SERVICES

This appendix contains a sample RFP/RFQ for procuring construction management services. Thoughwe have attempted to produce an RFP/RFQ that would be broadly applicable to most situations,you should still tailor this document to meet your specific needs.


SUMMARY

City of _______________________Construction Management Services for Energy Efficiency Projects

Purpose

The purpose of this Request for Proposal (RFP) is to select a contractor to provide constructionmanagement services. The City of ________________has completed an energy audit of its buildings.The audit identified many cost-effective energy efficiency projects for the Administration Buildingand Annex. The City is interested in hiring a construction manager to expedite the installation ofthese projects. The projects include installation of energy efficient fluorescent lamps and ballasts,chiller, variable speed drive pumps, and an energy management system. The total project cost isestimated at $1.5 million. The projects are to be installed in the Administration Building andAnnex, which total 700,000 square feet. The projects must be installed by __________________in order to take advantage of utility incentives.

Budgeted Funds

There is a total maximum of $__________ available. This is an hourly rate plus cost reimbursementcontract with a ceiling on the total contract amount.

Proposal Due Date

Deliver ______ typed copies to the City of ____________________, Contracts Office,_____________________, no later than ______________________, at _______p.m.

Tentative Schedule

____________ RFP Released____________ Pre-bid Meeting or Site Walk-Through____________ Proposals due no later than ________p.m.____________ Notification of shortlist firms____________ Interviews____________ Contractor Selected____________ Contract Start Date____________ Project Completion Date

Request for Proposals

To get a complete copy of the Request for Proposal, please contact ________________________.

Appendix B Page B-2


INTRODUCTION

City of ______________________Construction Management Services for Energy Efficiency Projects

Purpose

The purpose of this Request for Proposal (RFP) is to select a contractor to provide constructionmanagement services to expedite the installation of several energy efficiency projects in the CityAdministration Building and Annex, which are located at __________________________________________. A site walk of these facilities is scheduled for _______________________.

Requested Services

The specific construction management services desired are _______________________ (refer toSection III).

RFP Summary

State the purpose, objective, approach, expected result, schedule and budget.

Selection Process

State how each proposal will be evaluated and the minimum technical score required for passing.Indicate whether a shortlist of candidates will be developed from the highest ranked proposals andwhether interviews will be part of the selection process. Discuss how cost of services will beevaluated in the selection process.

Restrictive Conditions

State any small business, minority, women and/or disabled veteran business enterprise requirements.

Appendix B Page B-3


DESCRIPTION OF THE PROJECT

The selected construction manager will expedite the implementation of the following energyefficiency measures (EEMs) at :

(specify project location)

1. Replace existing incandescent exit signs with ones using light emitting diodes (LED).2. Retrofit existing ceiling mounted and recessed fluorescent fixtures with ones using T-8

fluorescent lamps and electronic ballasts.3. Install occupancy sensors in selected rooms.4. Install high efficiency chiller.5. Install variable speed drive pumps.6. Install an energy management system.

The projects are described more fully in Attachment A-Energy Audit (not in this sample RFP).

Project Schedule

Start Finish

Project Design __________ 2000 __________ 2000Bid and Award __________ 2000 __________ 2000Construct (___ months) __________ 2000 __________ 2002

We plan to bid the design and construction as one contract (design-build). Proposers can suggestother bid options, indicate their advantages and disadvantages and submit it in the Approach toProject Section. The selected CM will assist in deciding on the best installation path.

Project Organization(note: client = legal name of your organization)

The Client wishes to form a management team consisting of the Client staff, the ConstructionManager and during construction, the Contractor. The Construction Manager will assume the leadin program and design matters, and during construction, in cost and schedule matters. The Clientwill provide management direction and will make all financial and legal decisions.

Site Plan

A site plan identifying the buildings to be retrofitted is contained in Attachment ____.

Special Work Requirements

There are no known asbestos or polychlorinated biphenyls (PCBs) in the identified buildings.

Appendix B Page B-4


SCOPE OF WORK

The Construction Manager will provide the following services:

1. Project Management Assistance

A. Plan and track project budgets and actual costsB. Maintain project schedulesC. Prepare and maintain cash flow projectionsD. Research and prepare reports on special issuesE. Attend and assist Client in project meetingsF. Provide other support and assistance to Client staff on requestG. Assist Client in communication and coordination with local, state and federal agencies

involved in the project, such as ____________________

2. Project Development Phase

A. Develop project approach, budget and scheduleB. Determine the need for contractors and regulatory permits requiredC. Identify implementation concerns and recommend solutions

3. Design Phase

A. Prepare a management plan that will address contracting strategy, schedule, bid packagingand project/equipment commissioning

B. Assist Client in the development of an RFP/RFQ to hire a contractor to install the energyefficiency projects

C. Analyze cost estimates and funding optionsD. Perform construction review, cost and value analysisE. Set up and maintain project accounting of budgets, commitments and paymentsF. Prepare and update cash flow projectionsG. Coordinate and monitor services of other specialty consultants to the ClientH. Secure permits not included in the Consultants or Contractor’s work

4. Bid and Award Phases

A. Assist Client in reviewing bidsB. Manage bid and award activities

Appendix B Page B-5


5. Construction Phase

A. Administer construction contractB. Plan and manage procurement processC. Establish coordination proceduresD. Conduct job meetingsE. Maintain project documentationF. Establish a status reporting systemG. Process changesH. Work with public regulatory agenciesI. Monitor contractor compliance with labor and payroll lawsJ Establish and implement a quality control and commissioning program

1. Provide inspection2.. Oversee pre-functional testing

K. Track Project Cost1. Review contractor cost breakdown2. Estimate change order costs

L. Provide Construction Scheduling1. Review contractor’s schedule2. Monitor contractor’s schedule progress3. Review time extensions and change orders

M. Process Progress Payment Requests1. Verify invoices to justify expenditures and project milestones2. Handle contractor disputes

6. Project Completion Phase

A. Review and recommend release of contractor/subcontractor retentions1. Resolve change orders and contract disputes2. Handle progress payment requests

B. Complete project/equipment commissioning and conduct final testing and recommendfinal project acceptance1. Oversee functional test2. Verify that test results show that design intent has been met

C. Ensure facility staff has been trained1. Obtain Operation and Maintenance Manuals

D. Complete final administrative activities1. Prepare or have subcontractor prepare final project documents (e.g., blue prints,

operation and maintenance manuals)2. Record documents3. Prepare final report

Appendix B Page B-6


PROPOSAL REQUIREMENTS

The contract shall be awarded to the one who meets the minimum technical proposal score andprovides the lowest cost proposal (if RFP) or the highest technical proposal score with acceptablecost (if RFQ). Each proposer will respond to the following areas:

1. Understanding of the project: Discuss your understanding of the project scope andobjectives.

2. Approach: Discuss your approach, with specific references to the services requested in theRFP/RFQ. Highlight unique services and management tools, such as value engineering.Indicate the benefits of your approach. Suggest additional services to those requested inthe RFP/RFQ and indicate their benefits to the Client.

3. Organization: Define project team and organization and include:

A. Organization chart

B. Team member resumes and identification of those with California ProfessionalEngineering registration and/or California Contractor’s Licenses and specify numbers

C. Description of relevant experience of each team member

D. Indicate labor categories to be used for each task in the Work Scope

E. Indicate percentage commitment of key staff in each phase. Any staffing changes duringthe project will be subject to Client approval in writing.

F. Discuss percentage and type of work to be done by minority, women, and/or disabledveteran business enterprises.

G. Complete Table 1, page B-10 This table lists the CM team members in a format thatcan be used to also verify consistency with the Cost Proposal. The following is adescription of the table contents:

1. Work Classification: Specifies the work classifications of the CM team, such asproject manager, specialty inspector, engineering, general inspector andadministrative support.

2. Percent Work Classification Used on the Contract: Indicates the percentage of timethat a particular work classification will be working on your project.

Appendix B Page B-7


3. Name: Identifies the individual CM team member.

4. Academic Degrees: Indicates the degrees held by CM team members.

5. Professional Registration/Contractors Licenses: Indicates the engineering orcontractor’s licenses held by team members.

6. Percent available for CM Work: Identifies the percentage of time the team memberwill be available to do work on the project.

7. Contract Responsibilities: Specifies the work to be performed by a particular teammember.

4. Firm Qualifications: Provide a brief description of past CM work:

A. Describe the CM services provided on similar projects including construction cost anddates and names of team members who worked on the project

B. Describe the firm, including:

1. Years in operation2. Office locations3. Number of personnel4. Number of personnel in local office

C. Discuss current jobs including dollar value and percent completion

D. Describe financial capabilities and provide references and latest audited report

E. Discuss insurance coverage types and limits ($1,000,000 professional liability coverageis required)

F. Identify any perceived or real conflicts of interest that may affect job performance

5. Client References: Provide client references including the contact name, position, address,phone number and a brief description of the work provided by the CM. Provide a minimumof 5 references. References must be of those that have had projects similar to the clients.

6. Exceptions and Clarifications: Indicate any exceptions or clarifications associated withyour proposal.

Appendix B Page B-8


7. CM Cost: If the selection is being made through the RFP process, prepare separate costproposal. This cost proposal will contain the names of individuals who will be working onthe project, their classification, the time they will be spending on various tasks, and theirloaded hourly rate (loaded hourly rate = base hourly rate+overhead and general administrativecost percentage+profit percent). The loaded rate could include all direct expenses anticipatedwith your project (e.g., copying, mailing). Pages B-12 to B-16 contain worksheets forlisting individuals, tasks and hourly rates.

If an RFQ is used to select a CM, the proposer with the highest technical rank can completea worksheet similar to pages B-12 to B-16. The information on the worksheet can then beused to negotiate the final costs.

8. Other Information: Make your responses concise and specific. Include supporting materialssuch as work samples in an appendix.

Appendix B Page B-9


Wor

k%

Wor

kN

ame

Aca

dem

icP

rofe

ssio

nal

% A

vail

able

for

Con

trac

tC

lass

ific

atio

n*

Cla

ssif

icat

ion

Deg

rees

Reg

istr

atio

n o

rC

M W

ork

Res

pon

sib

ilit

ies

Use

d o

nC

ontr

acto

rsC

ontr

act

Lic

ense

(in

clu

de

(bas

ed o

nn

um

ber

)h

ours

)**

Dev

elop

app

roac

h,P

roje

ct M

anag

er10

%J.

Sm

ith

BS

ME

PE

(M

--19

99)

20%

sche

dule

and

bud

get

B. B

row

nB

SM

E, M

BA

Spe

cial

ty10

%P

. Wil

lsB

SE

EIn

spec

tor

D. S

mit

hB

S

Off

ice

50%

M. S

mit

hB

AE

ngin

eeri

ngT

. Ski

erB

S, M

S

Gen

eral

Ins

pect

or20

%A

. Pea

rson

PH

D

J. D

oeB

S, M

S

Adm

inis

trat

ive

10%

K. T

hom

pson

AA

K. D

ougl

as B

A

*T

ypic

al w

ork

clas

sifi

cati

ons:

PM

= P

roje

ct/C

onst

ruct

ion

Man

ager

OE

= O

ffic

e E

ngin

eer

AS

=

Adm

inis

trat

ive

Sup

port

SI

=

Sen

ior/

Spe

cial

ty I

nspe

ctor

GI

= G

ener

al I

nspe

ctor

**T

his

colu

mn

shou

ld t

otal

up

to 1

00%

.

Tab

le 1

Lis

t o

f C

om

pa

ny

CM

Te

ch

nic

al

Pe

rso

nn

el

As

sig

ne

d(C

om

ple

te o

ne

fo

rm f

or

ea

ch

co

mp

an

y o

n t

he

CM

te

am

)

CM

Fir

m:

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

Sub

cont

ract

or (

if a

ppli

cabl

e):

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____


Table 2Loaded Hourly Rates for Assigned CM Staff

Work Classification (Table 1) CM Staff Names Loaded Hourly

Rate*

PM = Project/Construction Manager

SI = Senior/Specialty Inspector

OE = Office Engineering

GI = General Inspector

AS = Administrative Support

* Use these Loaded Hourly Rates in the Table 3 Worksheet.


Estimating CM Cost

(Instructions for completing Table 3)

Instructions: Each bidder will complete Table 3 as part of the Cost Proposal (RFP). For RFQs,this table could be submitted by bidders with the highest technical score as part of the RFQ.

Step 1: Identify the specific work classifications and the corresponding average hourly rates foreach Task. Use the work classifications from Table 1 and the loaded hourly rates for eachclassification from Table 2.

Step 2: Estimate the number of hours worked by each classification in the tasks specified in theWorksheet.

Step 3: Multiply hours by the hourly rate to get the cost for each task and work class.

Step 4: Add the total hours and dollars for each work class and project phase. Add all projectphase costs to obtain the total project cost.

Step 5: Verify that the total classification percents match those in the technical proposal (Table 1).If the classification percents vary, then it could be the basis for disqualifying the proposal.

Step 6: The winning bidder is the one with the lowest cost if selection is based on the RFP process.

Appendix B Page B-12


Tab

le 3

(P

age 1

of

4)

Wo

rksh

eet

for

Est

imat

ing

CM

Co

st

Tas

kP

MS

IO

EG

IA

S

hrs

$/hr

$hr

s$/

hr$

hrs

$/hr

$hr

s$/

hr$

hrs

$/hr

$

Pre

con

stru

ctio

n P

has

e

Det

erm

ine

appr

oach

Cre

ate

proj

ect

inst

alla

tion

pla

n

Pre

pare

RF

P/R

FQ

Pre

pare

tech

nica

l

spec

ific

atio

ns a

nd

cons

truc

tion

pla

ns

Sec

ure

perm

its

and

mee

t reg

ulat

ory

requ

irem

ents

Dev

elop

pro

ject

budg

et a

nd

sche

dule

Hol

d pr

ojec

t

team

mee

ting

s

Ph

ase

Tot

al123456123456123456123456123456123456123456123456

123456123456123456123456123456123456123456123456

123456123456123456123456123456123456123456123456123456

123456123456123456123456123456123456123456123456

123456123456123456123456123456123456123456123456


Tab

le 3

(P

age 2

of

4)

Wo

rksh

eet

for

Est

imat

ing

CM

Co

st

Tas

kP

MS

IO

EG

IA

S

hrs

$/hr

$hr

s$/

hr$

hrs

$/hr

$hr

s$/

hr$

hrs

$/hr

$

Con

stru

ctio

n P

has

e

Con

stru

ctio

n si

te

man

agem

ent

Con

stru

ctio

n

insp

ecti

on s

ervi

ces

Rev

iew

cons

truc

tion

equi

pmen

t &

mat

eria

ls

Rev

iew

cha

nge

orde

rs

Upd

ate

cons

truc

tion

budg

et &

sch

edul

e

Hol

d pr

ojec

t

team

mee

ting

s

Dev

elop

O&

M

man

uals

& tr

aini

ng

Con

duct

fin

al

test

ing

& d

evel

op

acce

ptan

ce c

rite

ria

Ph

ase

Tot

al12345671234567123456712345671234567123456712345671234567

123456712345671234567123456712345671234567123456712345671234567

12345671234567123456712345671234567123456712345671234567

123456712345671234567123456712345671234567123456712345671234567

123456712345671234567123456712345671234567123456712345671234567


Tab

le 3

(P

age 3

of

4)

Wo

rksh

eet

for

Est

imat

ing

CM

Co

st

Tas

kP

MS

IO

EG

IA

S

hrs

$/hr

$hr

s$/

hr$

hrs

$/hr

$hr

s$/

hr$

hrs

$/hr

$

Pos

t C

onst

ruct

ion

Ph

ase

Sec

ure

as-b

uilt

draw

ings

Fin

aliz

e

cons

truc

tion

cont

ract

doc

umen

ts

Ph

ase

Tot

al

123456123456123456123456123456123456123456123456

123456123456123456123456123456123456123456123456123456

123456123456123456123456123456123456123456123456

123456123456123456123456123456123456123456123456123456

123456123456123456123456123456123456123456123456


Tab

le 3

(P

age 4

of

4)

Wo

rksh

eet

for

Est

imat

ing

CM

Co

st

Tas

kP

MS

IO

EG

IA

S

hrs

$hr

s$

hrs

$hr

s$

hrs

$

Pro

ject

Tot

als

Pre

-con

stru

ctio

n

Con

stru

ctio

n

Pos

t-co

nstr

ucti

on

Tot

als

by

Wor

k

Cla

ssif

icat

ion

Cla

ssif

icat

ion

Per

cen

t (B

ased

on H

ours

)*

*T

hese

per

cent

s sh

ould

mat

ch th

ose

iden

tifi

ed in

Tab

le 1

, Per

cent

Wor

k C

lass

ific

atio

ns U

sed

on C

ontr

act C

olum

n.W

ork

clas

s ho

urs/

Tot

al h

ours

for

all

wor

k cl

asse

s.

SU

M O

F A

LL

LA

BO

R C

AT

EG

OR

IES

TO

TA

L H

OU

RS

:

TO

TA

L C

OS

TS

:

(L

ow c

ost w

ins

for

RF

P, c

osts

can

be

nego

tiat

ed f

or R

FQ

)


TECHNICAL SELECTION CRITERIA AND EVALUATION PROCESS

Selection Criteria

The Client will evaluate and rank proposals and interview based on the following criteria andweighing factors:

Criteria Weighing Factors

• Understanding of Client’s project needs- Proposed project staff- Proposed schedule- Responsiveness to project issues

• Identification of innovative approaches and ideas

• Firm experience- Number of similar type projects- Years of experience- Number of awards for doing similar type projects- California Contractor’s Licenses, type and standing

• Commitment to your project- Number of employees who have done similar work- Availability of key CM staff- Dollar value and percent complete of current CM projects

• Personnel experience- Number of employees with similar CM experience- Number of employees with more than 15 years of similar experience- Number of employees with California Professional Engineer registration

• Financial status of the bidder- Financial capacity- Bonding capacity

- Insurance coverage

• References

• Quality of proposed project team

Total Points Possible

Minimum Points Required for Passing


Evaluation Process

1. The evaluation team will consist of staff of the client.

2. Proposals will be ranked according to the selection criteria and weighing factors identifiedin the table on page B-17.

3. The three highest ranking proposals will be interviewed and the final technical score willbe tabulated.

IF RFQ:The Client will negotiate cost with the top ranked firm. If a mutually satisfactory cost cannot bereached, the Client will negotiate with the next highest ranked firm and continue this process untilreaching an agreement.

IF RFP:The Client intends to select the firm that meets the minimum technical score and has the lowestcost proposal.

Right to Reject Any or All Proposals

The Client reserves the right to award the contract to any firm or to cancel or postpone the selectionat any time if necessary. A pre-proposal conference is scheduled for Time at Location.Representatives of the Client will attend to discuss the project and answer questions.

Appendix B Page B-18


WORKSHEET - RFP/RFQ PREPARATIONSummary of Required Items

This worksheet serves as a checklist of important issues when preparing a project-specificRFP/RFQ. If a requested response does not apply, write N/A.

RFP Versus RFQ YES NO

• Do legal restrictions relating to the use of price as a selectioncriteria apply?

• Will price be used as a selection criteria?

• The document is an RFP (refer to page 22).

• The document is an RFQ (refer to page 22).

Use of Small, Minority Owned, Women Owned, or DisabledVeterans Owned Business Enterprises YES NO

• Do requirements for the use of small, minority-owned,women-owned, or disabled veteran-owned businesses applyfor this project?

• If yes, indicate the minimum percentage for the following: Percent

– Small Businesses

– Minority Owned Businesses

– Women Owned Businesses

– Disabled Veteran Owned Businesses

Identification of Potential CM Candidates YES NO

• Is there a list of potential CM candidates?

• If yes, specify list to be used:

• If no, specify how list will be generated:


Introduction YES NO

• Are the contact names, addresses and telephone numbers ofpotential proposers correct?

• Types of CM services requested (refer to pages 11-19):

• Sections to be included in RFP/RFQ (refer to pages 22-29): YES NO

– Introduction

– Description of Project

– Scope of Work

– Proposal Requirements

– Selection Criteria and Process

– Closing

– Other

• Location of Project:

• What are the restrictive conditions that apply to this project?


Description of Project YES NO

• Have descriptions been prepared on the following projectcategories?

– Lighting

– Controls

– HVAC

– Other

• Is the energy audit included as an attachment to this RFQ/RFP?

Planned Project Implementation Phases Start End date date

– Phase 1: Preconstruction

– Phase 2: Construction

– Phase 3: Post Construction

– Phase 4: Other

– Phase 5: Other

Scheduling Constraints YES NO

• Are there known scheduling constraints?

• List of scheduling constraints:


Project Responsibilities Owner CM

• Who is responsible for coordinating the project schedule with thefacility operation schedule?

• Who is responsible for contracting with consultants or contractors?

• Who is responsible for establishing performance standards andcommissioning testing?

Site Information YES NO

• Is a site plan included?

• Are there any special work conditions?

– Presence of hazardous materials?

– Hazardous work locations?

– Other?

Scope of Work YES NO

• Has the list of CM services been identified?

Proposal Requirements YES NO

• Will a separate cost proposal be required?

• Will cost be negotiated with the highest ranked firms?

• Will the following proposal sections be required? YES NO

– Understanding of Need

– Approach and Services

– Staffing and Organization

– Firm Qualifications and Experience

– Exceptions and Clarifications


Selection Criteria YES NO

• Has the selection criteria been established?

• The selection criteria for this project is (refer to page 30-37):

Evaluation and Selection YES NO

• Will a shortlist of the highest ranked proposals be developed?

• Will interviews be part of the selection process?

• Will access for inspection of site be granted to the proposers?

Proposal Schedule

• The proposal will be due on:

• Issue date of RFP/RFQ:

• Pre-bid meeting date:

• Notification date for shortlist firms:

• Notification of interview schedule:

• Contract preparation period:

• Start work date:


Evaluation Team Members:

Closing Address Phone

• Name of contact for your organization concerningthis RFP/RFQ:

Contacts YES NO

• Will access to owner’ staff be restricted during the proposalperiod?

– Telephone calls permitted?

– Visits permitted?

- Construction ManagerAppendix C Page C-1

APPENDIX CRECOMMENDATIONS FOR SCOPE OF WORK FOR THE

CONSTRUCTION CONTRACTOR

This appendix contains recommended areas to be included in the contract with your selectedconstruction contractor and the role of your construction manager in ensuring that theenergy efficiency measures are properly installed, commissioned, and tested.

- Construction ManagerAppendix C Page C- 2

RECOMMENDATIONS FOR SCOPE OF WORK FOR THE CONSTRUCTIONCONTRACTOR

The contractor shall work with the construction manager and other design team membersto complete the assigned work.

For buildings with energy efficiency projects, the contractor’s assignment shall include,but not be limited to, the following:

• Kick-off Meeting

After the construction contract is signed, the contractor shall have a kick-off meeting with theconstruction manager, architect, mechanical engineer, electrical engineer, and other designteam members as specified by the facility. The purpose of this meeting is to: a) introducevarious parties, b) discuss the responsibilities and roles of each party involved, c) discuss apreliminary time schedule, and 4) discuss any site-specific requirements for that facility.

• Schedule

The contractor shall prepare a detailed schedule for construction, installation, inspection,commissioning, trial run, performance inspection, waste disposal, cleaning, training of operationand maintenance personnel, and equipment/system turnover. The contractor shall submitthis schedule to the construction manager for approval.

• Reporting

The contractor shall submit reports at a predetermined time interval, as determined by theconstruction manager. The reports shall include, but not be limited to, the following:

! Construction progress reports

! Installation reports

! Inspection reports

! Waste disposal reports

! Commissioning reports

! Trial run reports

! Performance test reports


• Change Orders

The construction, installation, equipment specifications, inspections, commissioning, and testingshall be according to the design document. Any change or deviation from the design documentmust be pre-approved by the construction manager and engineer or architect.

• Construction and Installation

Construction and installation shall be according to the applicable codes and standards. Whereapplicable, the work shall be performed by certified personnel. The construction manager orhis designee can inspect any material, equipment, procedure, or method used at any time.

• Inspection and Testing

The contractor shall assist the owner’s inspector to conduct equipment, material, constructionand installation inspection. It is the responsibility of the contractor to ensure that the inspectionand testing is completed as specified in the contract and according to the project schedule.Construction and installation shall not be deemed complete unless the required inspection andtesting is completed. At the direction of the construction manager, the contractor will be requiredto conduct an inspection or testing and submit a report to the construction manager.

• Commissioning

The construction manager may hire an independent commissioning agent depending on thecomplexity of the project. If commissioning is the responsibility of the contractor, the contractorshall prepare a commissioning plan and schedule and submit them to the construction managerfor approval. The contractor shall provide all the instrumentation and tools required forcommissioning. The construction manager or its designee shall supervise the commissioningprocess and the pre-functional and functional tests for the specified energy efficiency equipment.The contractor shall prepare a commissioning report and shall submit it to the constructionmanager for review and approval.

• Training

During the commissioning process the contractor shall start training the operations andmaintenance personnel. The training shall consist of classroom training, a facility walk through,and actual staff involvement during commissioning, performance inspection and trial run. Thecontractor shall ensure that the staff is capable of properly operating, maintaining, and handlingemergency situations in an efficient and safe manner.

• Trial Run

The contractor shall complete the trial run as specified in the design document or asrecommended by the equipment manufacturers. The operating staff shall be involved duringthis process but the contractor shall be responsible for any malfunction or operating errors.


The contractor shall take readings of the operating parameters, as recommended by themanufacturers, and shall submit these readings to the construction manager for review andapproval.

• Performance Testing

The construction manager may hire an independent agent for this process, depending on thecomplexity of the project. If the contractor is to conduct testing, the contractor shall provide allthe instrumentation and tools required for performance testing. The contractor shall prepare atest plan and schedule and provide these to the construction manager for review and approval.The construction manager or its designee shall supervise the performance testing process.The contractor shall prepare a performance test report and shall submit it to the constructionmanager for review. The contractor shall discuss the results of the tests with the constructionmanager.

The contractor shall ensure that the equipment and the building perform according to thespecifications written in the design document. If the equipment and the building fail to meetthe performance standards, the contractor shall recommission the equipment, modify or changeany equipment with the pre-approval of the construction manager. The construction manageror its designee will make the final determination of whether the equipment meets the designedperformance standards.

• Documentation

The contractor shall submit all the required documents to the construction manager. Thedocuments to be submitted include, but not be limited to, the following:

! Operating procedures

! Maintenance procedures

! Operation check lists

! Maintenance check lists

! Operation and maintenance manuals

! Lists of recommended spare parts

! Contact information for any questions

! As-built drawings


! Construction and installation reports

! Construction and installation inspection reports

! Commissioning reports including set points

! Performance test reports including test and balance reports

! Trial run reports including operating parameter readings

! Waste disposal reports

! Material safety data sheets

How to Hire A Construction Manager Handbook

Documents

Transcript of How to Hire A Construction Manager Handbook