Agenda Item - 2022-10-04 - Number 06.1 - Resolution 22-33, Approving a Solicitation Procurement for WO 298 Blue Heron 2 Trunk 6.1
E4 COUNCIL REPORT
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Subject: Resolution 22-33, Approving a CM/GC (Construction Management/General
Contractor) Solicitation Procurement for WO 298 Blue Heron 2 Trunk Sanitary Sewer Project
and Adopting Findings.
Meeting Date: October 4, 2022 Staff Member: Stefan Broadus, PE,
Assistant City Engineer
Report Date: September 26, 2022
Heike Shipton, PE,
Senior Associate Engineer
Erica Rooney, PE,
Public Works Director/City Engineer
Department: Public Works
Action Required Advisory Board/Commission Recommendation
❑ Motion ❑ Approval
Z Public Hearing ❑ Denial
❑ Ordinance ❑ None Forwarded
Z Resolution ❑ Not Applicable
❑ Information Only Comments:
❑ Council Direction
❑ Consent Agenda
Staff Recommendation: Adopt Resolution 22-33.
Recommended Language for Motion: Move to adopt Resolution 22-33, adopting findings
and approving a CM/GC solicitation procurement for WO 298 Blue Heron 2 Trunk Sanitary
Sewer Project.
Project/ Issue Relates To:
Issue before Council (Highlight Policy Question):
❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑Not Applicable
Respect, Excellence. Trust. Service.
503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY
Page 2
ISSUE BEFORE COUNCIL
A request by the City Engineer to adopt findings supporting the use of an alternative project
delivery method —construction manager/general contractor(CM/GC) -- in lieu of the design-
bid-build method for the construction for the rehabilitation of the WO 298 Blue Heron 2 Trunk
(T-BH-2) Sanitary Sewer project.
BACKGROUND
T-BH-2 conveys wastewater from approximately 85 residential services, with 36 of the service
laterals connecting to main pipeline segments within the canal. The City's 2013 Wastewater
Master Plan Update (WWMP) and 2019 Amendment state that the T-BH-2 wastewater
conveyance system is reaching the end of its useful life and is due for rehabilitation or
replacement.T-BH-2 consists of 15 pipeline segments and 16 manholes. Of the 15 pipeline
segments, five are either in, behind the seawall of, or within easements near the Blue Heron
canal. The other 10 segments are in the Cardinal Drive right-of-way.
The WWMP also indicates the Blue Heron Wastewater Basin has a high rate of Inflow and
Infiltration (I/I) that can cause sewer overflows and basement backups if the pipes, pump
stations or treatment plant capacity are not adequate to convey the high flow. A 25% reduction
in I/I flows from tributary areas to the Lake Oswego Interceptor Sewer, including the Blue
Heron Basin, is recommended by the WWMP in order to reduce the likelihood of sanitary sewer
overflows. Overflows are currently prohibited by the United States Environmental Protection
Agency and the Oregon State Department of Environmental Quality.
The project will target completing in-canal construction work during the October to December
2023 lake drawdown. Project challenges anticipated for work in the canal include:
1) Contractor must install a bypass scheme that allows the sewer main to be replaced in its
same alignment and each lateral to be replaced without any contamination of the
lakebed.
2) The lakebed will be muddy and the actual volume of mud to be removed is unknown.
3) The locations of the laterals in the canal cannot be verified until exposed. The
Contractor will need to make field adjustments for the as-planned versus actual
locations.
4) Some of the proposed clean-out locations will be covered with decks, steps or other
landscaping improvements over the lateral. The Contractor will need to vary its
approach depending on these constraints.
5) Waterfront property owners use the lake-draw down to make improvements to their in-
water structures. The City's Contractor will need to coordinate with the contractors
working for the property owners.
Respect, Excellence. Trust. Service.
503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY
Page 3
DISCUSSION
OAR 137-049-0610(3) and OAR 137-049-0690 describe alternative contracting methods for
delivering public improvement contracts as an alternative to the traditional design-bid-build
construction contracting method. CM/GC means a contractor that provides both construction
management and general contractor services to a contracting agency under a public
improvement contract. The CM/GC is involved early with the design team to suggest changes in
the design that minimize potential errors, delays, unexpected costs and other problems during
construction.The goal is to improve the value and quality of the public improvement and
reduce the time necessary to complete the public improvement. In this form of construction
contracting, the CM/GC is functioning as a member of a project team that includes the
contracting agency, the architect or engineer that designs the public improvement (design
team) under a separate contract with the contracting agency and other contractors and
consultants. This approach is appropriate for construction projects that would benefit from a
collaborative team approach to achieve time savings and cost savings, and to address technical
complexities.
As staff began the process of developing plans and specifications for T-BH-2 and an approach to
procuring construction services, it became apparent that this project will require a cross-
functional team collaborating closely to address the project sequencing and project schedule
efficiently. For this reason, staff believe that the alternative approach to procuring the
construction services before the design is finalized could provide substantial public benefit to
schedule, cost, and quality relative to the more traditional design-bid-build method.
Resolution 22-33 adopts the City Engineer's findings supporting use of the CM/GC method of
contracting for construction of the T-BH-2 project. If this Resolution is approved, staff would
then draft a Request for Proposals to select the most qualified CM/GC contractor. The terms of
that Contract would then be presented to the Council for approval.
Pursuant to ORS 279C.335, notice of this public hearing was published on September 20, 2022.
RECOMMENDATION
Adopt Resolution 22-33, adopting findings and approving a CM/GC solicitation procurement
for WO 298 Blue Heron 2 Trunk.
ATTACHMENTS
1. Resolution 22-33, with Exhibit A, City Engineer's Findings
Respect, Excellence. Trust. Service.
503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY
ATTACHMENT 1
RESOLUTION 22-33
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO, ACTING AS THE LAKE
OSWEGO PUBLIC CONTRACTING REVIEW BOARD PURSUANT TO ORS 279A.060, ADOPTING
FINDINGS AND APPROVING A CM/GC (CONSTRUCTION MANAGEMENT/GENERAL
CONTRACTOR) SOLICITATION PROCUREMENT FOR WO 298 BLUE HERON 2 TRUNK SANITARY
SEWER PROJECT.
WHEREAS, the City owns, operates and is responsible for this portion of its sanitary sewer
system; and
WHEREAS, the City Council of the City of Lake Oswego ("City") acts as the local contract review
board for the City, and in that capacity has authority to exempt certain contracts from the
competitive bidding requirements of ORS Chapter 279C; and
WHEREAS, OAR 137-49-0610(6) and OAR 137-49-0690 describe the Construction Manager /
General Contractor (CMGC) method of performing public improvement contracts as an
alternative to traditional design-bid-build construction contracting methods; and
WHEREAS, draft findings ("Findings") address the criteria at ORS 279C.335(2)(a), (b), ORS
279C.330(2) and OAR 137-049-0630:
"(a)The exemption is unlikely to encourage favoritism in the awarding of public improvement
contracts or substantially diminish competition for public improvement contracts;" and
"(b) Awarding a public improvement contract under the exemption will likely result in
substantial cost savings and other substantial benefits to the contracting agency... or the
public." [In making this finding under subsection (b), the Board] shall consider the type, cost
and amount of the contract, and to the extent applicable... the following:
(A) How many persons are available to bid;
(B) The construction budget and the projected operating costs for the completed public
improvement;
(C) Public benefits that may result from granting the exemption;
(D) Whether value engineering techniques may decrease the cost of the public
improvement;
(E) The cost and availability of specialized expertise that is necessary for the public
improvement;
(F) Any likely increases in public safety;
(G) Whether granting the exemption may reduce risks to the contracting agency, the
state agency or the public that are related to the public improvement;
(H) Whether granting the exemption will affect the sources of funding for the public
improvement;
Page 1 of 2 - Resolution 22-33
(I) Whether granting the exemption will better enable the contracting agency to control
the impact that market conditions may have on the cost of and time necessary to
complete the public improvement;
(J) Whether granting the exemption will better enable the contracting agency to address
the size and technical complexity of the public improvement;
(K) Whether the public improvement involves new construction or renovates or
remodels an existing structure;
(L) Whether the public improvement will be occupied or unoccupied during
construction;
(M) Whether the public improvement will require a single phase of construction work or
multiple phases of construction work to address specific project conditions; and
(N) Whether the contracting agency or state agency has, or has retained under contract,
and will use contracting agency or state agency personnel, consultants and legal counsel
that have necessary expertise and substantial experience in alternative contracting
methods to assist in developing the alternative contracting method that the contracting
agency or state agency will use to award the public improvement contract and to help
negotiate, administer and enforce the terms of the public improvement contract."
WHEREAS, notice of the City Engineer's draft findings was published in the Daily Journal of
Commerce fourteen days in advance of this public hearing in accordance with ORS 279C.335(5);
and
WHEREAS, the City Council determines that the City of Lake Oswego's Blue Heron 2 Trunk
Sanitary Sewer Project should be delivered using the Alternate Contract Delivery method per
OAR 137-49-0670, known as Construction Manager/General Contractor;
NOW THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS;
1. The City Council adopts the Findings set forth in Exhibit A to this Resolution.
2. Based on the Findings, the City Council, acting as the Lake Oswego Public Contract
Review Board, concludes that using an alternative contract delivery method (CM/GC) will:
(a) neither encourage favoritism nor diminish competition, and
(b) likely result in substantial reductions in project costs to the City and public benefit.
3. The City Council approves use of the CM/GC alternative contract delivery method for
the Blue Heron 2 Trunk Sanitary Sewer Project.
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Page 2 of 2 - Resolution 22-33
This Resolution shall take effect upon adoption on the 4th day of October, 2022, by the City of
Lake Oswego City Council.
AYES:
NOES:
ABSTAIN:
EXCUSED:
Joseph M. Buck, Mayor
ATTEST:
Kari Linder, City Recorder
APPROVED AS TO FORM:
Evan Boone, City Attorney Pro Tern
Page 3 of 2 - Resolution 22-33
EXHIBIT A
DRAFT FINDINGS OF FACT AUTHORIZING A THE CONSTRUCTION
MANAGER/GENERAL CONTRACTOR SOLICITATION PROCUREMENT IN LIEU
OF COMPETITIVE BIDDING FOR THE CONSTRUCTION CONTRACT FOR WO 298
BLUE HERON 2 TRUNK SANITARY SERWER(SEPTEMBER 2022).
1. General
ORS 279C.335(2) and OAR 137-49-600, -0620, -0640 and -0690, permit the local
contract review board to exempt contracts from competitive bidding requirements upon approval
of findings of fact showing that an alternative contracting process is unlikely to encourage
favoritism or diminish competition and that the process will result in cost savings to the City of
Lake Oswego ("the City"). The City of Lake Oswego City Council acts as the Local Contract
Review Board ("LCRB") for the City.
ORS 279C.337 and OAR 137-49-0690 describe the Construction Manager/General
Contractor(CM/GC)method of solicitation and construction as an alternative to traditional
competitive bidding. The CM/GC approach is appropriate for construction projects that would
benefit from a collaborative team approach to achieve time savings and cost savings, and to
address technical complexities. The CM/GC process is appropriate when needed to address
issues such as operations of the facility during construction,public safety, Guaranteed Maximum
Price and projects requiring complex phasing or highly coordinated scheduling.
ORS 279C.330 defines "Findings" and identifies specific information to be provided as a
part of the contracting City justification. Under ORS 279C.335 (5) a public hearing must be held
before the findings are adopted, allowing an opportunity for interested parties to comment on the
draft findings.
PURPOSE OF THESE FINDINGS: The City of Lake Oswego City Council has held a
public hearing as required by ORS 279C. 335 and makes the following findings with
respect to the issue of whether the contract for the Blue Heron 2 Trunk Sanitary Sewer
("Project"), as defined herein, should be exempt from competitive bidding,by the use of
the CM/GC method of alternative contracting. The Findings of Facts apply to the CM/GC
method of public improvement projects described below,in accordance with ORS
279C.335 (2).
2. Background
The City's 2013 Wastewater Master Plan Update (WWMP) and 2019 Amendment state the Blue
Heron 2 Trunk(T-BH-2) wastewater conveyance system is reaching the end of its useful life and
is due for rehabilitation or replacement. This project includes rehabilitating the sewer in streets,
easements, and the Blue Heron canal upstream from Southshore Blvd. Work in the streets and
easements includes lining the main sewer, lining the laterals from the main sewer to the property
line, installing a clean out on each lateral at the property line, and replacing six-inch main line
sewer segments with eight-inch pipe. Work in the canal includes replacing the sewer with HDPE
pipe,replacing the laterals in the canal from the main sewer to the canal wall, and installing a
clean out on each lateral at the canal wall. In-canal construction has to occur during a lake draw
down period.
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The Project includes but is not limited to strategic planning and critical scheduling. This project
will be at a higher risk with a high level of complexity due to rehabilitating existing
infrastructure while still maintaining day-to-day operations. It will be governed by schedule
constraints, could require complex phasing, and could contain budget limitations that require
close monitoring. Therefore, it becomes critical to maintain both schedule and budget of this
project while maintaining essential sewer operations.
In consideration of these facts, an alternate method of construction other than design—bid—build
should be considered for this public improvement. The following findings support an exemption
from competitive bidding and support the use of the CM/GC method of construction contracting.
As the design progresses,the following goals will continue to guide decision making:
• This project will support the functional requirements of the City of Lake Oswego's
Wastewater Conveyance System.
• This project will reduce the likelihood of sanitary sewer overflows which are currently
prohibited by the United States Environmental Protection Agency (EPA) and the
Oregon State Depailment of Environmental Quality (DEQ).
• This project will require critical coordination with property owners for the in-canal
work.
• This design process allows for early selection process to recruit qualified firms for the
work and ensure the project objectives and timelines will be met.
• The project will allow for a risk management plan.
FINDINGS OF FACT
SUMMARY FINDINGS
Use of the CM/GC process for the Project complies with the criteria outlined in ORS 279C.335(2):
1. It is unlikely the exemption will encourage favoritism or substantially diminish
competition. The selection process will be fair and open to all interested proposers as
established within the findings below.
2. The exemption will likely result in substantial cost savings and other substantial benefits
to the City. ... [The board]shall "consider the type, cost and amount of the contract and,
to the extent applicable to the particular public improvement contract or class of public
improvement contracts, the following:
(A) How many persons are available to bid;
(B) The construction budget and the projected operating costs for the completed
public improvement;
(C) Public benefits that may result from granting the exemption;
(D) Whether value engineering techniques may decrease the cost of the public
improvement;
(E) The cost and availability of specialized expertise that is necessary for the
public improvement;
(F)Any likely increases in public safety;
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(G) Whether granting the exemption may reduce risks to the contracting agency,
the state agency or the public that are related to the public improvement;
(H) Whether granting the exemption will affect the sources of funding for the
public improvement;
(I) Whether granting the exemption will better enable the contracting agency to
control the impact that market conditions may have on the cost of and time
necessary to complete the public improvement;
(I) Whether granting the exemption will better enable the contracting agency to
address the size and technical complexity of the public improvement;
(K) Whether the public improvement involves new construction or renovates or
remodels an existing structure;
(L) Whether the public improvement will be occupied or unoccupied during
construction;
(M) Whether the public improvement will require a single phase of construction
work or multiple phases of construction work to address specific project
conditions; and
(N) Whether the contracting agency or state agency has, or has retained under
contract, and will use contracting agency or state agency personnel, consultants
and legal counsel that have necessary expertise and substantial experience in
alternative contracting methods to assist in developing the alternative
contracting method that the contracting agency or state agency will use to
award the public improvement contract and to help negotiate, administer and
enforce the terms of the public improvement contract.
SPECIFIC FINDINGS which substantiate the summary findings are as follows:
1. The CM/GC contractor will be selected through a competitive process in accordance
with the Request for Proposal (RFP) selection process. Therefore, it is unlikely that
the awarding of the construction contract for the Project will encourage favoritism
or substantially diminish competition. This finding is supported by the following:
A. SOLICITATION PROCESS: Pursuant to ORS 279C.360, the CM/GC solicitation
will be advertised at least once in the Daily Journal of Commerce, and in as many
additional publications as the City may determine, including the City of Lake Oswego
website. The City will also seek to identify and solicit from at least two qualified firms
listed on the database of the Oregon Department of Administrative Services'
Certification Office for Business Inclusion and Diversity (COBID).
B. FULL DISCLOSURE: To ensure full disclosure of all information, the Request for
Proposals solicitation package will include:
1. Detailed Description of the Project
2. Contractual Terms and Conditions
3. Evaluation Criteria, including General Conditions.
4. Role of Evaluation Committee
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5. Selection Process
6. Provisions for Comments
7. Complaint Process and Remedies Available
C. COMPETITION: As outlined below,the City will follow processes that maintain
competition in the procurement of a CM/GC Contractor.
1. The City anticipates that competition for this contract will be similar to that
experienced in other CM/GC projects of this type. The competition will be open to
all qualifying proposers.
2. The City anticipates communicating with the construction contracting community
through the Request for Proposal.
3. The solicitation and evaluation process will be open and impartial. Selection will
be made on the basis of final proposal scores and other components,which expand
the ground of competition to include experience, quality, innovation factors, etc.
4. The competitive process used to award subcontracts for all competitively-bid
construction work will be specified in the CM/GC contract and will be monitored
by the City. The City will designate in the CM/GC contract the percentage of
construction work that must be subcontracted.
D. SELECTION PROCESS: Other highlights of the selection process will include:
1. A non-mandatory pre-proposal conference will be announced and held to inform
potential proposers of the Project. This conference will be open to all interested
parties. During this pre-proposal conference, as well as any time prior to ten (10)
days before the close of the solicitation, interested parties will be able to ask
questions, request clarifications and suggest changes in the solicitation documents
if such parties believe that the terms and conditions of the solicitation are unclear,
inconsistent with industry standards, or unfair and unnecessarily restrictive of
competition.
2. The evaluation process will determine whether each proposer and its proposal are
qualified and responsive to the minimum requirements of the RFP, and will weigh
the responses relative to the criteria. The following process will be used:
• Proposers will be evaluated for compliance with the minimum qualifications
for selection. Qualified Proposers' Proposals will be evaluated for completeness
and compliance with the requirements of the RFP. Those proposals that are
materially incomplete or non-responsive will be rejected.
• Proposals will be independently scored by the voting members of the
Evaluation Committee. Scores will then be combined and assigned to the
proposals.
• The Evaluation Committee will convene to select the highest-scoring proposers
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(the Competitive Range) for formal interviews.
• Competing proposers will be notified in writing of exclusion of the Proposer
from the Competitive Range, and excluded Proposers will be given seven (7)
calendar days after receipt of the notice to review the RFP file and evaluation
report. Any questions, concerns, or protests about the selection process for
selection of the Competitive Range will be subject to the requirements of the
OAR 137-049-0450, must be in writing, and must be delivered to the City of
Lake Oswego Public Works Director or designee within seven(7)calendar days
after receipt of the selection notice. No protest of the selection of the
Competitive Range will be considered after this time period.
• The Evaluation Committee will conduct the interviews.
• The Evaluation Committee will use the interview to confirm the Evaluation
Committee's understanding of the proposal, and the processes and procedures
that will be used by the Proposer to construct the Project in an efficient, cost-
effective, and timely manner. Based upon the revised scoring, the Evaluation
Committee will rank the proposers, and provide an award recommendation.
• The City of Lake Oswego City Engineer or designee will negotiate a contract
with the top-ranked firm. If an agreement cannot be reached,the City will have
the option to terminate negotiations with that proposer, and then negotiate an
agreement with the second-ranked firm, and so forth.
• Proposers within the Competitive Range will be notified in writing of the
selected proposer and will be given seven (7) calendar days after receipt of the
notice to review the RFP file and evaluation report. Any questions, concerns,
or protests about the selection process will be subject to the requirements of
OAR 125-049-0450, must be in writing, and must be delivered to the City of
Lake Oswego City Engineer or designee within seven (7) calendar days after
receipt of the selection notice. No protest of the award selection will be
considered after this time period.
3. The CM/GC contract achieved through this process will require the Contractor to
use an open, competitive selection process to bid all work to be performed by
subcontractors.
2. Awarding the construction contract for the Project using the CM/GC method will
likely result in cost savings to the City. This finding is supported by the following
information required by ORS 279C.335 (2) (b) and ORS 279C.330.
A. OPERATIONAL,BUDGET,FINANCIAL DATA
1. BUDGET: The City has a limited budget available for the Project that will create
challenges if exceeded. The limiting in-water work window requires a prompt
completion date which is in the best interest of the Lake Oswego. Early
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consultation provided by the CM/GC contractor during the design phase will
reduce the potential for time delays due to later discovery of consequent changes
of direction that would result in higher-than-anticipated costs. The CM/GC
alternative contracting procedures will allow the City to work with the selected
CM/GC contractor to use value engineering to keep the Project within the budget.
2. LONG TERM COSTS: The Project will require expertise regarding the
constructability and long-term cost/benefit analysis of innovative design. That
knowledge is best obtained directly from the construction industry. Many
decisions will be required during the design process that call for immediate
feedback on constructability and pricing. Under the traditional design-bid-build
process,there is a high risk of increased change orders and schedule impacts for a
project of this size and complexity. Since there would likely be significant costs
associated with a delay of the completion of the Project, time is of the essence.
The CM/GC process will assist in providing a scope of work and constructible
design that best meet the requirements of the Project with significantly lower risk
to the project costs and time for construction. Involving the CM/GC contractor
during design will allow project risks to be addressed early. Teamwork between
the City and the CM/GC contractor's team will minimize those risks.
3. FEWER CHANGE ORDERS: When the CM/GC contractor participates in the
design process, fewer change orders occur during project construction. This is
due to the CM/GC contractor's better understanding of the owner's needs and
constraints. As a result, the project is more likely to be completed on time and
within budget. In addition, fewer change orders reduce the administrative costs of
project management for both the City and the contractor.
4. SAVINGS: If actual costs are less than the GMP,the entire savings will be
realized by the City.
B. PUBLIC BENEFITS
1. TIME SAVINGS: The CM/GC method allows construction work to commence
relatively rapidly on some portions of the work while design continues on the
remaining portions. This will shorten the duration of the construction and allow
timely completion of the project. Use of CM/GC will result in a better coordinated
project and speedy completion, in addition to minimizing disruption to the City's
sanitary sewer system.
2. COST SAVINGS: The Project will benefit from the active involvement of the
CM/GC contractor during the design process in the following ways:
• The contractor's input regarding the constructability and cost-effectiveness of
various alternatives will guide the design toward the most cost-effective
choice.
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• Knowing the specific equipment available to the contractor allows creation of
a design that best utilizes the capacity of that equipment.
• The contractor will be able to provide current and reliable information
regarding the cost of materials that are experiencing price volatility and the
availability of scarce materials.
• The contractor will also be able to order materials while design is being
completed in order to avoid inflationary price increases and provide the lead-
time that may be required for scarce materials.
• The contractor will be able to help develop design documents to reflect the
best work plan that accommodates the City,the design team, and contractor
within the project schedule;
• The contractor will have early involvement in the specification of materials and
work phasing, allowing:
o The contractor to schedule the best grouping of the subcontractor bid
packages that will help insure optimum subcontractor work coverage;
o The most efficient construction staging area at the project work sites;
and
o Adjustment of the work plan when the needs change along the way that
has as minimal impact upon price and schedule as possible.
This cannot be addressed by the usual design/bid/build method of construction. All
of the above results in a better coordinated project with less cost and change orders.
3. GUARANTEED MAXIMUM PRICE (GMP): By participating in the
construction document phase,the contractor will be able to obtain a complete
understanding of the City's needs, the design intent, the scope of the project, and
the operational needs of the City, and will be able to offer suggestions for
improvement and cost-reduction. The contractor will also be able to better
calculate an appropriate GMP, a price within which the CM/GC contractor is
contractually bound to implement the final project design. The CM/GC contractor
is able to guarantee the maximum price to complete the project because the
CM/GC contractor was involved in the design process, identification of the
specifications for the work,preparation of the construction schedule, and
establishment of the sequence of work.
C. VALUE ENGINEERING(VE)
1. WITH THE DESIGN-BID-BUILD PROCESS: If the City were to utilize the
design-bid-build method,the contractor would not participate in value engineering.
Instead, a value engineering consultant would be hired to participate in the design
and cost evaluation process. This adds costs and administrative complications,
without providing the same benefits of early contractor participation.
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2. WITH CM/GC: The CM/GC process offers a unique opportunity for value
engineering that is not possible through the design-bid-build process. VE is done
most effectively by a team consisting of the owner, engineer, consultants, and the
contractor. When the contractor participates, the team can render the most
comprehensive evaluation of all factors that affect the cost, quality, and schedule
of the project.
D. SPECIALIZED EXPERTISE: The construction project is highly complex because it
involves specifying, procuring, and installing components to fit within the constraints of
the existing site. Early selection of the CM/GC contractor and inclusion of the CM/GC
contractor's expertise with the other members of the project team creates more informed,
better quality decision-making. A more efficient project team saves the City money.
E. MARKET CONDITIONS: As well as the multitude of construction market factors that
exist today in Oregon (e.g., competition of other projects, environmental issues that limit
construction materials, variable bid market, unemployment, etc.), the difficulty in
establishing the best work sequence complicates the City's ability to accurately estimate
the cost of this project. Alternative contracting methods will be more likely to result in a
more experienced and better suited contractor for the particular project. The complexities
which need to be addressed to accomplish the tasks are not well served by the usual
competitive procurement. CM/GC ensures the City can select the best contractor for the
most beneficial reasons for the project outside of having to select based upon lowest
responsive and responsible bid.
G. TECHNICAL COMPLEXITY: Technical expertise will be required for environmental
management, quality management, scheduling, estimating, meeting sustainable
construction standards and guidelines. The complexity and scheduling issues discussed in
the Background section above will require special expertise. However, the Project will
draw upon existing skills and capabilities available in the construction community.
Specialized skills will be required of the contractor to negotiate and price multiple options
and schedule complex tasks. A high level of coordination among the private homeowners,
City depailments, the design entity, and the contractor and subcontractors is required and
facilitated by the CM/GC contractor's approach.
3. OTHER INFORMATION
A. FUNDING SOURCES: The City intends to fund the Project from the Wastewater
Fund for a total estimated project budget of$4,425,670.
B. PUBLIC SAFETY: All work must be coordinated to avoid safety risks while ensuring
efficiency in construction. The coordination between the City, designer, and contractor
will assure coordination of work and consideration for the safety of workers and
citizens near the Project.
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