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HomeMy WebLinkAboutAgenda - 10-17-2005-2ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: Qctober 17, 2005 Action Agenda Item No. ~_ SUBJECT: Potential Strategies to Expedite Construction Projects DEPARTMENT: Purchasing, ERCD PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Pam Jones, (919) 245-2652 List of Potential Measures to Expedite Dave Stancil, (919) 245•-2598 County Construction Projects PURPOSE: To discuss mechanisms that might be employed to streamline constn~ction project development. BACKGROUND: The Triangle area has seen significant growth in constnaction for the past decade. It is not uncommon to see construction projects for area local governments, State and University projects all competing for the same contractors and those contractors competing for the same sub-contractors. This leads to a difficult bidding market in the best of circumstances. Add to that, the potential migration of contractors and sub-contractors to the hurricane devastated gulf coast states and the bidding climate becomes more troublesome. Upon request of the Commissioners, staff has provided a list of potential ideas that could be employed to move upcoming County construction projects from design to completion more quickly and hopefully minimize the impact of any loss of contractor resources in our area, FINANCIAL IMPACT: No direct calculation of financial impact is available. However, cost of upcoming construction projects will surely be more costly if delayed. RECOMMENDATION(S): The Manager recommends that the Board consider the information presented and provide comments and direction to staff as may be appropriate. a Potential Measures to Expedite County Construction Projects This paper will attempt to outline the processes currently used for County construction projects, and offer a potential menu list of changes or strategies that might expedite the development of Ccunty construction projects. In so doing, staff is not necessarily advocating these possible changes ,but providing them for Board discussion and consideration. Before considering changes to the current process, it may be instructional to review it from start to finish. A County construction project taken from design through construction is likely to go through basically five phases: • Pre-Design • Project Design • Legislative Process • Bid Solicitation and • Ccnstruction and Regulatory Approvals Pre-construction Pre-Desiyn Phase This includes such activities as the notice to proceed with the design from the Board, the drafting and adoption of a charge ar~d mission statement to a project committee, appointments (including solicitation and public notice of same) to a committee, adoption of a Preliminary Concept Plan (which serves as a guiding framework for the upcornir~g design), topographic, biological, cultural/archaeological, stream identification and ether surveys needed for the design, and any regulatory approvals that are needed in advance of the design work. Project Design Many construction projects that are to provide important public functions (such as senior centers, government-service buildings and parks) operate with a Master Plan Committee appointed by the Board and including one to two Ccmmissioners. This phase includes a number of meetings with the planning committee, Commissioner representatives and staff to provide explanation of mission/charge, followed by meetings that include site analysis and exploration, design (sometimes including hands-on "charettes"), refinement of the design and eventual adoption of a proposed master plan. Legislative Process and Reyulatory Approvals Once the committee has completed a master plan, it is conveyed to the Board of Commissioners for consideration, and after needed revisions, approval. If the project is multi-phased, decisions about facilities to construct in the immediate phase would also be decided at this time, and related issues such as operation, maintenance and start-up costs are also deliberated. Upon approval of a master plan, an application must then be prepared and authorized for submittal by the Board to the planning jurisdiction in which the project is located for the required type of development permit. These applications can range from site plan approvals of 1-2 months made at staff level, to town Special Use Permits and Zoning Compliance Permits with substantial further analysis and requiring significant engineering work, construction detail and public hearings, which can take 18 months or longer. Pre-Constnaction and Award of Construction Bids In many cases, for more complicated projects, the regulatory approval process and the pre-construction process overlap (for example, some jurisdictions require construction drawing level of detail for SUP approval), Generally, this phase includes engineering and detailed design of the site with specific individual plans and maps for such components as grading, stormwater control, building elevations, road construction, planting, water and sewer extension, and others. Once regulatory approvals are received, construction documents (bid documents) must then be finalized that outline in detail the exact types of construction, materials, and specifications in both map/drawings and text form, The bid documents also specify the County's policies (High Performance Building Guidelines, for example) and procedures for construction and other expectations and information needed by prospective contractors who may be willing to bid the project, Since the bid climate in the Triangle area is one in which there are relatively few firms and many projects, having adequate bidders for a project is not a given. State law requires that all bids for construction that exceed $300,000 have a minimum of three bidders responding to the solicitation in order for them to be opened on the first date set for bid call. If insufficient interest is shown, then a second bid date must be advertised and a second bid date set. Since the first set of bid numbers remains unknown, one may only speculate that bids solicited twice may be higher in cost since contractors are now aware of their competition and the level of interest. In addition, an average of two additional weeks is tacked an to the already lengthy process because adequate bids are not received the first time. Further, it has been the County's experience that construction costs often exceed budgeted costs, which adds significant time for the value engineering items to be negotiated between owner, designer, the apparent low bid contractor and their sub contractors. Under the best of circumstances, it is likely that an advertised sealed bid for a sizable construction project will alone consume no less than 45 days from the time it is advertised until the time that it is calendared for Board approval. Construction The successful contractor is responsible for submitting the completed contract documents, along with bonds and proof of insurance and other documents that may be required by the bid within ten business days of the bid award. The documents are then reviewed by the staff and County Attorney and released for signature by the Chair to the Board, after which the Notice to Proceed for the project may be issued. Thus begins the construction project. Contractors are generally interested in carrying out the work in a timely manner because their profitability on the project depends on their ability to complete the project within the contract period upon which the bid was based. Pre-construction meetings during which responsibilities and expectations are outlined are generally held soon after the Notice to Proceed is issued. If the contractor, sub-contractors, designers and owners maintain open and frequent communication the project is more likely to be completed on time and within budget. Strong project management and construction oversight is a key to ensure success on this front. Possible Alternative Strategies for Expediting the Process Given the current process, some of the activities are required or needed to ensure that the project is constructed as designed and to the standards and expectations of the County. However, it may be possible to modify or eliminate some steps and maintain the intent of the outcome, while streamlining the process and reducing the amount of time and effort expended. As noted earlier, staff is not advocating these measures but rather providing a menu list of possibilities for discussion as requested: Siting the Project Alternatives to consider: If multiple sites for a project are available, and if sites are equal as it respects the appropriateness for the project in question, site the project in areas where regulatory approvals can be attained in a shorter timeframe. Plannincr Committees While public input is highly desirable, the very nature of committees requires time considerations when scheduling meetings, preparing agendas and follow up reports and in general, managing the educational process for committee members to learn about the project. In a planning group of 15-20 people, as is often the case with County projects, the process of trying to coordinate multiple schedules in an attempt to find an acceptable date/time for a single meeting may consume weeks of a schedule. Alternatives to consider: • Utilize ad hoc committees, not specifically appointed by the BOCC to eliminate tt~e need for public notice and meeting minute requirements; Consider alternative methods of idea gathering from the public at large to gain broad based information that can then become a basis of discussion for the planning group (surveys distributed to known interested parties, community meetings, charettes, etc) • Couple the broader based public information with the formation of smaller planning groups. Benefits here may be found in the time needed to agree upon an acceptable date/time for meetings, administrative time needed to schedule meetings and potentially to improve the expediency in which the work is completed. Board approvals-Design and Construction Phases Board approval is currently required for: • All projects requiring the expenditure of funds in excess of $20,000; and Ail architect and engineering contracts, regardless of the dollar amount. Alternatives to consider: • Additional authorization for the Manager and Purchasing Director to award informal bids. Award of a bid can be delayed up to four weeks, depending upon the bid date vs. the next available BOCC meeting. While formal advertised bids (those that exceed $300,000) far construction are mandated by State law for BOCC approval, informal bids are not. Is there a level higher than the current $20,000 authorized for Purchasing Director approval that could expedite smaller projects? The most recent example is the Smith Middle School/Efland Cheeks Lighting Project, in which the bid was under $300,000 and within the budgeted amount. The purchase order could've been cut within 24 hours of the receipt of bids, but was rather delayed by at least two weeks pending BOCG approval. Increasing authorization limits could be conditioned upon factors at the Board's discretion, For example: • No award within the prescribed authorization limits could be made without BOCC approval unless it was within the appropriated project budget; and • The Board would receive monthly updates of all awards for construction projects made by staff within the authorization level. Additional authorization for the Manager to approve professional services contracts. The County Manager can now authorize professional services contracts up to $5,000, with the exception of architect and engineering contracts, which require first dollar approval by the BOCC. Authorization far the Manager to sign contracts far professional services at a higher level and including architect and engineering services could cut 2-4 weeks off of the approval process, since it would not require BOCC action. Awards of this type could also be reported to the BOCC monthly. Board Participation in Project Planning Alternatives to consider: • Listening/Sharing sessions with one or two Board rnerrrbers could be scheduled at key points in a project to share the status of the project and solicit their comments. Multiple sessions would be set up to share the same information so Board members could select the session most convenient to their schedule. This more thorough review could facilitate project design and ensure that all Board members have a strong knowledge-base about all aspects of the project at such tune it is presented for final approval in formal session. Consultants Alternatives to consider: • In instances where the scope of a project has similar design requirements, consider hiring consultants for multiple projects. If project elements are similar, some may be transferable between projects and therefore reduce design time. Working with Contractors • Consider alternative methods of contracting that are now available to local governments. For example, the Beard will soon consider utilizing the "Construction Manager at Risk" method of contracting for construction with the Central Orange Senior Center/Sportsplex project. The County would contract with an architect and with a general contracting firm who would collaborate on the design of the project and establish an amount for which the project can be built. The contractor would guarantee the construction of the building at that cost as long as the scope of work remained intact. Generally speaking, this method of contracting should allow the project design and construction to move more quickly. Consider offering incentives to contractors for early completion of a project. Resource Allocation Alternatives to consider: Carefully consider the resources available to carry out the projects. While one project/construction manager may handle several projects, the project quality and time for completion may be adversely affected by the sheer magnitude of the work at hand if too many projects are assigned to the same individual. These represent a few ideas that might be worthy of discussion. It is not to be construed as a comprehensive list, however. Staff will be prepared to follow up on additional ideas that may be raised during the worksession discussion.