Iowa League 17 Best Practices for Construction Projects
#Iowa. League 17 Best Practices for Construction Projects Tom Suckow, WORKSAFE Manager, Master Builders of Iowa David Harrison, Architect, Design Alliance, Inc Handouts and presentations are available through the event app and at www. iowaleague. org.
Agenda n Introductions n n n What Do State Laws Say about Construction Projects? n n n n n Design Bid Build Design Build Construction Management Integrated Project Delivery Project Safety n n n Design Phases Architect Selection Architectural Fees Project Delivery Methods n n Building Codes in Iowa Bidding and Advertising Requirements When is an Architect or Engineer Required? Sales Tax The Design Process n n David Harrison, AIA, LEED AP, Design Alliance, Inc. Tom Suckow, Master Builders of Iowa Why or Why Not Third Party Option Questions 2
Design Alliance n n Design Alliance – Founded by Jerry Purdy, 1992 Present Ownership – Four Principals Total Staff of 13 Listen – Understand – Perform 3
PROMOTING SAFETY w/o WORRYING YOUR INSURANCE CO. Presented by Tom Suckow Master Builders of Iowa
Who we are Association of Iowa building contractors and suppliers in existence for over 100 years. Chapter of Associated General Contractors of Amer. Tom Suckow has been a construction safety professional for 30 years.
Building Codes in Iowa n If Community has Building Code. n n Building to be Compliant with that Code If Community does not have Building Code. n Compliance with Iowa State Building Code Required if State Financed. 6
State Energy Code 7
State Bidding Requirements n n Iowa Code – Chapter 26 >$135, 000 for Vertical 8
Competitive Quotations n Iowa Code – Chapter 26. 14 n n If City >50, 000 applies $75, 000 to $135, 000. Vertical If City <50, 000 applies $55, 000 to $135, 000. Vertical 9
Advertising Requirements n Notice to Bidders n Effective July 1, 2016, publication of a Notice to Bidders in a newspaper of general circulation will no longer satisfy Iowa law. As of July 1, 2016, governmental entities must "post" their Notice to Bidders not less than thirteen (13) and not more than forty-five (45) days before the deadline for submission of bids in / on all three of the following: n n n Master Builders of Iowa (MBI) will post your Notice to Bidders with its Construction Update Network at no cost to the governmental entity. This will fulfill requirements 1 and 2 above. The Iowa League of Cities is expected to accept Notices to Bidders for posting on its website. This will fulfill requirement 3 above for cities if the city conducting the bidding process elects not to post the Notice to Bidders on its own internet site. Other statewide associations representing governmental entities may also elect to post the Notice to Bidders on their internet sites. Please note, however, if the governmental entity conducting the bidding process does not post its Notice to Bidders on an internet site sponsored by a statewide association that represents the governmental entity, then the governmental entity must post its Notice to Bidders on its own internet site in order to ensure compliance with requirement 3 above. The information required in the Notice to Bidders remains unchanged. It must adequately notify a potential bidder of a proposed bid and shall include the following items: n n n n The time and place for filing sealed proposals. The time and place sealed proposals will be opened and considered on behalf of the governmental entity. The general nature of the public improvement on which bids are requested. In general terms, when the work must be commenced and completed. That each bidder shall accompany the bid with a bid security as defined in section 26. 8 and as specified by the governmental entity. Any further information which the governmental entity deems pertinent. Notice of Public Hearing n n n in a relevant contractor plan room service with statewide circulation, and in a relevant construction lead generating service with statewide circulation, and either on an internet site sponsored by the governmental entity or a statewide association that represents the governmental entity. Governmental entities must still publish their Notice of Public Hearing on the plans, specifications, form of contract, and estimated total cost of their public improvement projects in a newspaper published at least once weekly and having general circulation in the city, not less than four (4) and not more than twenty (20) days before the public hearing. In addition to the subject matter of the hearing, and the time and location of the hearing, the Notice of Public Hearing must now also include a description of the public improvements being constructed and the location of those improvements. Postponed Bid Letting n If circumstances beyond the control of the governmental entity cause a scheduled bid letting to be postponed and there are no changes to the project's contract documents, a Notice to Bidders of the revised date shall be posted not less than four (4) and not more than forty-five (45) days before the revised date for filing bids in the same locations now required 10 for the initial posting.
Architect or Engineer Required? n 193 B – 5. 4(544 A) n 11
Sales Tax on Project n Sales Tax Exemption n n Tax ID numbers provided to Contractors and Subcontractors Sales Tax Reimbursement n Special Forms are required to be Completed and Submitted 12
Architectural Design Process n n n Schematic Design (20%) Design Development (20%) Construction Document (35%) Bidding (5%) Construction Administration (20%) 13
Architect Selection n Can Select a Known Architect n n n or Send out RFP – Receive Proposals Narrow to 3 or 4 “Shortlisted” Firms 60 Minute Interviews with 5 or 6 Stakeholders Make Selection Establish Final Agreement Terms with Selected Firm 14
American Institute of Architect Standard Forms n n In Continuous Use for > 100 Years Consensus – based and Endorsed Integrated Requirements of Parties 180 Different Contracts and Forms n n n Owner Architect Agreement Owner Contractor Agreement General Conditions Bond Forms Construction Forms 15
Project Delivery Methods n n Design Bid Build Design Build Construction Manager (Advisor) Integrated Project Delivery Copyright 2017 Design Alliance, Inc. 16
Design – Bid – Build n n n Traditional Approach Architect Prepares Design and Construction Documents which Describe Work in Detail. Owner Architect is Responsible to Keep Project on Schedule and Budget Contractor(s) Bid on Work Contractor(s) Build the Project General Architect Contractor Other Subcontractor Owner Mechanical Subcontractor Architect General Contractor Mechanical Contractor Electrical Subcontractor Other Subcontractor Multiple Prime Electrical Contractors Contractor Copyright 2017 Design Alliance, Inc. Single Prime Contractor 17
Design – Bid – Build n Advantages to Owner n n Traditional, Proven Approach Single Point of Responsibility for Construction (with single prime) Competition Due to Open Bid Process Disadvantages to Owner n Some Architects have Ignored Budget and Schedule Copyright 2017 Design Alliance, Inc. 18
Design Build n n Newer Approach Owner Has Contract with Contractor to Provide Design and Construction Architect is Consultant to Contractor and Prepares Design and Construction Documents which Describe Work Contractor Builds the Project Owner Design Build Contractor Architect Other Subcontractor Mechanical Subcontractor Copyright 2017 Design Alliance, Inc. Electrical Subcontractor Other Subcontractor 19
Design Build n Advantages to Owner n n Truly One Point of Responsibility for Design and Construction Disadvantages to Owner n n n Architect is Sub of Contractor and May Not Hold Interest of Owner to Highest Level Lack of Competition? Not Legal for Public Owners in Iowa Copyright 2017 Design Alliance, Inc. 20
Construction Management (Advisor) n n n Newer Approach Owner Architect Prepares Design and Construction Documents which Describe Construction Architect Manager Work in Detail Construction Manager(CM) Prepares Cost Information as Design and Construction Document Preparation Progresses Other Subcontractor CM Prepares Numerous “Bid Packages” Subcontractor Mechanical Electrical Subcontractor Numerous Contractors, Subcontractors, Suppliers Bid Work to Owner and have Other Contracts with Owner Subcontractor Other Subcontractor Numerous Contractors(s) Build the Subcontractor Project Copyright 2017 Design Alliance, Inc. 21
Construction Management (Advisor) n Advantages to Owner n n n Competition Among Subs, Suppliers Sometimes Able to Use Smaller, Local Entities Disadvantages to Owner n n n Numerous Construction Contracts with Coordination Difficulties Increased Complexity and Paperwork No Single Point of Construction Contractual Responsibility Perhaps a Lack of Competition? Cost? Copyright 2017 Design Alliance, Inc. 22
Integrated Project Delivery (IPD) n n n Newer, Less Defined, Approach Collabrative Approach IPD Contractor works with Owner to select Architect Prepares Design and Construction Documents which Describe Work IPD Contractor facilitates project bidding. Contractor(s) Build the Project Copyright 2017 Design Alliance, Inc. 23
Integrated Project Delivery (IPD) n Advantages to Owner n n IPD Contractor is Known Entity. Disadvantages to Owner n n Architect is distanced from Owner. Cost? Copyright 2017 Design Alliance, Inc. 24
AMPLIFY YOUR VALUE Ask yourself what level of jobsite safety should be in practice on your construction sites? What can your city do? Design the project with safety in mind. Promote safe construction practices Why should I care about construction safety?
WHY CARE ABOUT SAFETY? The construction industry kills more of its own than any other, as a purchaser of construction, you are party to it. Construction industry has a small % of total US workforce but largest % of deaths. In 2015 937 deaths occurred in const. No Owner wants an incident to occur on its project.
Distribution of leading causes of death in construction 2010 Other -- 6% Exposure – 15% Falls -- 39. 0% Contact w/objects— 20% Transportation –
Reasons you should be involved. In 2005 --construction companies size 38% employed 1 -19 workers 34% employed 20 -99 27% employed 100+ In 2005—deaths in construction companies 55% occurred in the 1 -19 size 24% occurred in the 20 -99 size 21 % occurred in the 100+ size
REASONS NOT TO BE INVOLVED? General Conditions say General Contractor (GC) responsible for safety of persons and property and must comply with regulations. Your Liability insurance carrier says safety is part of “means and methods” of construction so you should stay away. Don’t know the rules so won’t say anything.
REBUTTAL! Given General Conditions statement, who makes sure it’s followed? A/E doesn’t want to get into means & methods Owner doesn’t know construction safety rules OSHA can’t get to all sites across the state You don’t want to call them to a site as production will slow way down or even come to a halt, but the same could happen with an accident.
REBUTTAL CONT’D. Liability insurers would view your discussions about safety as a positive. You are doing what a prudent Public Owner should do Being involved w/safety will set your projects apart. It may attract better bidders.
ASK YOURSELF In competitive bid scenario do you get what you pay for?
CHANGING TIMES Iowa law makes certain contract language unlawful. Owner can no longer pass its negligence on to contractor. Owner and General share liability to same % as they are found liable. Contractors are as busy as they ever have. Safety may not be as important as getting the job done quickly.
WHAT SHOULD YOU DO? Hire 3 rd party for safety consultation just like you do for soils consultation Include in spec, sample language for 3 rd party bid paid for by low contractor Hire 3 rd party before bids are taken so bidders know they must comply.
WHAT OTHERS HAVE DONE Iowa Board of Regents Cities of Des Moines & Dubuque Specify low bidder enroll the project in WORKSAFE is product of a an alliance between IA OSHA Consultation and Master Builders of Iowa. WORKSAFE enhances the contractors own safety measures through consultation and site surveys.
WHAT ELSE? Adopt “Pt. D” (Prevention through Design) as a value for you city The consideration of construction site safety in the design of a construction project. Specifically, this could include: modifications to the permanent features of the construction project in such a way that construction site safety is considered; attention during the preparation of plans and specifications in such a way that construction site safety is considered; the utilization of specific design for construction safety suggestions; and the communication of risks regarding the design in relation to the site and the work to be performed.
QUESTIONS? What do you see as barriers to these approaches to construction safety? How can you influence the safety and health of construction workers? Are you Amplifying your value? Thank you
Questions and Answers 38
Recent Municipal Experience n n n n n Washington Fire Station $2 M Addition Waukee Public Works $6. 2 M New Johnston Public Safety Projects $10. 8 M Two New Buildings Bondurant Public Safety Building $789 K New Waverly Public Services Facility $4. 4 M New West Des Moines Police Remodeling Four Projects Osceola Recreation Center Analysis Story City Community Recreation Center $2. 4 M Addition West Des Moines Public Safety Station #19 $4. 1 M New Clarke County Fine Arts and Recreation Complex $5. 3 M New Decorah Recreation Center Analysis Winterset Storm Shelter Study Waverly Recycling Facility $750 K New Adel Library $2. 1 M New Adel City Hall $660, 000 Remodeling Adel Police / Fire Station $419, 000 Remodeling Waukee Safety Building $2. 6 M New Dallas County Public Works $2 M New Marshalltown Maintenance Facility $2. 4 M New Story City Fire Station $440, 000 New
Sustainable Design – LEED n n Leadership in Energy & Environmental Design n Developed by U. S. Green Building Council Levels of Certification n LEED Certified (40 points) n Silver Level (50 points) n Gold Level (60 points) n Platinum Level (80+ points) 40
LEED n The LEED Rating System allocates points to incentivize building project teams to comply with requirements that best address the social, environmental, and economic outcomes identified by USGBC. n n n Location and Transport Sustainable Sites Water Efficiency Energy and Atmosphere Materials and Resources Indoor Environmental Quality 41
LEED Benefits n n Benefits of Green Design n Reduces negative impact on our environment n Life cycle cost savings n Enhances occupied environment Benefits of Certification n Third Party Verification that Building is Green n Possible qualification for state or local incentives (grants) n LEED certification plaque to mount on building n Exposure through USGBC web site, case studies & media coverage. 42
LEED Down Sides n n Unconventional and Unproven Technologies n Material Selections n Water Retention and Reuse Cost n Contractor Uncertainty n IAQ Potentially Requires More Complicated Systems n Lighting Control Systems n Additional Paperwork n Commissioning n Material Recycling n 5% - 8% increase possible 43
Energy Company Incentive Programs 44
“Commercial New Construction Program” n n Weidt Group as a Consultant Administers the Program Incentives for Owners Fees for Architects and Engineers 45
Commercial New Building Process n n Analysis of Code Base Building Investigation of “Betterments” with Payback Analysis and Incentives. Bundles Verification n Documents Field Incentive Payments 46
Typical Short Payback Items n n n n Low E Glazing Occupancy Sensors Multilevel and Strategic Switching Efficient Lighting Ground Coupled Heat Pump Systems High Efficiency Pumps Heat Recovery Ventilators 47
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