Best Practices for Project Management, Design, and Construction of ...

Best Practices for Project Management, Design, and Construction of ... Best Practices for Project Management, Design, and Construction of ...

10.05.2014 Views

project and its potential impact. A draft EIR (DEIR) is prepared and published with a comment period deemed long enough by the local jurisdiction to ensure all concerned persons and organizations have a chance to comment. Comments and their responses are published in a final EIR (FEIR), the findings of which must be approved by the local jurisdiction along with any modifications to urban plans and a development agreement (if required). Because this is a discretionary land use issue, there is no guarantee that a proposed project will be approved to proceed to construction. Once approved, the local jurisdiction issues a Notice of Determination (NOD) which serves as the proof of entitlement to be provided to OSHPD and other permitting entities. The NOD is required by the local building department to release local permits as well. Other Permitting Entities Many locations in California have multiple layers of government which may have permitting authority. Most common are local air quality management districts that issue asbestos abatement and emergency generator permits. The local planning department or your legal counsel should assist you in determining which additional government bodies have influence over your project. California Department of Public Health (CDPH) Prior to commencement of operation of your new or remodeled facility, CDPH will survey the facility and its operational practice and readiness following field acceptance by OSHPD field staff. While this is fundamentally a step undertaken at project closeout, it is essential that the hospital have a plan in place during the project planning phase to ensure that the survey will be successful. Any service that the hospital intends to offer in a new or innovative way should be reviewed with the local CDPH office prior to design to reduce the likelihood of rejection following completion of construction. Best Practice 6: Determine your project scope and phasing Use your staff and consultants to fully define all of the project’s characteristics. Understand the type of approval required and the documentation needed for review. This is a more detailed function than Best Practice 1 and is a necessary precursor to Best Practice 7. Adding, deleting, or changing services to be included in the project will add cost and time. Best Practice 6a: Select the project approach and organization that is appropriate for the nature of the project and the hospital’s preferred construction contracting method Owners should keep control of the construction process throughout the length of the project. The manner in which the work is contracted should reflect the nature of the work and business approach of the owner. There are three fundamental contracting modes, with ample variation between them. Select the one that’s right for you. Design-Bid-Build Considered the traditional model of construction contracting, the design-bid-build model relies on designers who develop plans that are intended to guide the work of the contractor. The “design-intent” documents are less than complete, leaving many design decisions up to the bidding contractor to give them as much flexibility to determine means and methods and ultimately the bid price. Long thought to be the method that assures lowest cost, many owners (OSHPD Best Practices) Page 92 DRAFT FINAL, Sept. 2011

have discovered that bids only cover what is shown on the bid set, opening the door for multiple amended construction documents that are really completion of the initial design at a cost higher than the bid. Public entities are still required to use the design-bid-build method but the risk of cost overruns using this method is causing some owners to rethink its use. OSHPD only reviews plans for code compliance, not constructability. The design-bid-build method poses particular challenges for the OSHPD project due to its requirement that every element going into the construction of an OSHPD building must be reviewed and approved prior to installation; this requirement is the single largest barrier to continuous construction where the contractor is building from “design-intent” drawings that the contractor is completing design of in the field. Design-Build In this model, a contractor is hired to construct from plans that the contractor has taken responsibility for developing. The owner sets forth the requirements and the conditions of satisfaction but the contractor has the ultimate authority to determine how they are to be fulfilled. The design-build method produces a much higher level of certainty for adherence to budget but may not produce as satisfactory a result due to the extent the owner gives up control of design. Although design-build has many useful applications, it works to particular benefit for an OSHPD project focused on specific types of engineering systems. Integrated Project Delivery An Integrated Project Delivery Team (IPD) project is one in which all major design disciplines, the general contractor and trade partners are selected at the beginning of the project to work as a team. In a typical IPD contract, all major parties work from an open book and put their profit at risk, thereby ensuring that the success of the individual team member relies on the success of the team as a whole. The IPD team simultaneously designs the building and how it is going to be built, thereby minimizing amended construction documents and substantially improving adherence to budget. The time to initial permit may be longer than a traditional design-bid-build project but can be reviewed by with a greater certainty of constructability. While IPDs are becoming a more popular approach to major construction, it represents a totally new way to develop facilities. This approach works best where the owner is committed to a specific scope for the project that is not expected to vary. Some contractors are moving aggressively in the direction of heighted collaboration while others find it not to their liking. The owner who is seeking the control of the design and function of the built space along with the greater reliability of adherence to budget may still find it difficult to adopt IPD due to the large up-front investment in having the full project team engaged from the very beginning. However, more owners have embraced IPD in recent years because of the substantially greater likelihood of having the project come in on time and budget without sacrifice to program from unanticipated budget adjustments that result in “value engineering,” a process resulting in major redesign of architecture and engineering systems late in design phase used to bring projects back into budget. Best Practice 6b: Select the OSHPD process most appropriate for the nature of your project (OSHPD Best Practices) Page 93 DRAFT FINAL, Sept. 2011

have discovered that bids only cover what is shown on the bid set, opening the door <strong>for</strong> multiple<br />

amended construction documents that are really completion <strong>of</strong> the initial design at a cost higher<br />

than the bid.<br />

Public entities are still required to use the design-bid-build method but the risk <strong>of</strong> cost overruns<br />

using this method is causing some owners to rethink its use. OSHPD only reviews plans <strong>for</strong> code<br />

compliance, not constructability. The design-bid-build method poses particular challenges <strong>for</strong> the<br />

OSHPD project due to its requirement that every element going into the construction <strong>of</strong> an<br />

OSHPD building must be reviewed <strong>and</strong> approved prior to installation; this requirement is the<br />

single largest barrier to continuous construction where the contractor is building from<br />

“design-intent” drawings that the contractor is completing design <strong>of</strong> in the field.<br />

<strong>Design</strong>-Build<br />

In this model, a contractor is hired to construct from plans that the contractor has taken<br />

responsibility <strong>for</strong> developing. The owner sets <strong>for</strong>th the requirements <strong>and</strong> the conditions <strong>of</strong><br />

satisfaction but the contractor has the ultimate authority to determine how they are to be fulfilled.<br />

The design-build method produces a much higher level <strong>of</strong> certainty <strong>for</strong> adherence to budget but<br />

may not produce as satisfactory a result due to the extent the owner gives up control <strong>of</strong> design.<br />

Although design-build has many useful applications, it works to particular benefit <strong>for</strong> an OSHPD<br />

project focused on specific types <strong>of</strong> engineering systems.<br />

Integrated <strong>Project</strong> Delivery<br />

An Integrated <strong>Project</strong> Delivery Team (IPD) project is one in which all major design disciplines, the<br />

general contractor <strong>and</strong> trade partners are selected at the beginning <strong>of</strong> the project to work as a<br />

team. In a typical IPD contract, all major parties work from an open book <strong>and</strong> put their pr<strong>of</strong>it at risk,<br />

thereby ensuring that the success <strong>of</strong> the individual team member relies on the success <strong>of</strong> the<br />

team as a whole. The IPD team simultaneously designs the building <strong>and</strong> how it is going to be built,<br />

thereby minimizing amended construction documents <strong>and</strong> substantially improving adherence to<br />

budget. The time to initial permit may be longer than a traditional design-bid-build project but can<br />

be reviewed by with a greater certainty <strong>of</strong> constructability.<br />

While IPDs are becoming a more popular approach to major construction, it represents a totally<br />

new way to develop facilities. This approach works best where the owner is committed to a<br />

specific scope <strong>for</strong> the project that is not expected to vary. Some contractors are moving<br />

aggressively in the direction <strong>of</strong> heighted collaboration while others find it not to their liking. The<br />

owner who is seeking the control <strong>of</strong> the design <strong>and</strong> function <strong>of</strong> the built space along with the<br />

greater reliability <strong>of</strong> adherence to budget may still find it difficult to adopt IPD due to the large<br />

up-front investment in having the full project team engaged from the very beginning. However,<br />

more owners have embraced IPD in recent years because <strong>of</strong> the substantially greater likelihood<br />

<strong>of</strong> having the project come in on time <strong>and</strong> budget without sacrifice to program from unanticipated<br />

budget adjustments that result in “value engineering,” a process resulting in major redesign <strong>of</strong><br />

architecture <strong>and</strong> engineering systems late in design phase used to bring projects back into<br />

budget.<br />

<strong>Best</strong> Practice 6b: Select the OSHPD process most appropriate <strong>for</strong> the nature <strong>of</strong> your<br />

project<br />

(OSHPD <strong>Best</strong> <strong>Practices</strong>) Page 93 DRAFT FINAL, Sept. 2011

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