City of Cape Coral Turns to Progressive Design-Build for Utility Expansion
Diane Jones — Aug 01, 2009
T
he City of Cape Coral, Fla., is a pre-platted community that previously had little infrastructure development in more than half of the city. When city officials decided to improve and upgrade the infrastructure to meet growing residential needs, it turned to MWH Constructors Inc., a member firm of the Water Design-Build Council, to provide progressive design-build services for Cape Coral’s Utility Expansion Program (UEP). The project has demonstrated how the progressive design-build method can deliver cost-effective, high-quality results.In 2002, MWH Constructors was retained, using a qualifications-based selection, to design and build the utility program elements. As Cape Coral’s utility infrastructure program progressed, the city expanded MWH’s scope to include water and wastewater treatment plant expansions under the same progressive design-build contract structure.
MWH’s work in this residential community has included the design and construction of more than 700 miles of utility piping with more than 240 miles of reconstructed residential roadways. In addition, the project required the provision of more than 200 miles of gravity sewer, 34 wastewater pump stations, 175 miles of potable water pipelines and 190 miles of reclaimed water pipelines. The UEP is composed primarily of new gravity sewer with associated pumping stations and forcemains, potable water and reclaimed water (irrigation) lines as well as other city infrastructure improvements, such as storm drainage improvements, road widening and sidewalk projects.
Benefits of Progressive Design-Build
Under the progressive design-build delivery method, project elements are designed to a certain point, followed by a period of competitive bidding on construction work packages, and development of a guaranteed maximum price (GMP) for the client. Similar to traditional design-build, the progressive design-build process features one entity being contracted for both the design portion of the project and the construction. Unlike traditional design-build, there is no lump sum price given at the beginning of the design. Progressive design-build offers maximum flexibility for owners and increased opportunities to collaborate on permitting and design. This method also provides more opportunity to utilize small and minority local subcontractors and consultants. Additionally, although not the most desirable outcome, it provides owners with an “escape hatch” if they are unable to agree on the GMP.
On the Cape Coral UEP, MWH delivered cost-certainty by achieving the most attractive GMP for each defined work scope package. MWH was able to provide more than $12 million in savings to the city over the past seven years of work through accountability of all expenditures and contingency use.
Progressive design-build reduces the complexity and cost of procurement. As illustrated by the Cape Coral UEP, this delivery method provides an effective contract vehicle for a client to select a design-builder and implement a variety of complex, inter-related projects. Benefits of progressive design-build include:
- Maximum flexibility for owners
- Increased opportunity for local subcontractor/consultant involvement
- Reduced complexity and cost of procurement
- Reduced time in selection of a design-builder
- Owners can use a third party to evaluate estimates and utilize their “escape hatch”
Maximum Flexibility for Owners
Construction estimating can start as early as 10 percent into the design process, allowing comparison of specific technical solutions. Progressive estimates keep the owner informed, which can influence scope adjustment decisions.
The Cape Coral UEP required the sequenced design and construction delivery for utility extension in defined residential areas. This contract vehicle allowed the city to evaluate the critical utility development areas in advance of the design and have an influence over the design progression at 30 percent, 50 percent, 75 percent and 90 percent design stages to modify the scope of work, as necessary. In 2003, the population growth and development in a particular section of the city expanded to such an accelerated extent, that the utility design was able to be re-directed by the city to effectively meet this unexpected growth.
Increased Opportunities for Local Subcontractor/Consultant Involvement
Since bidding is primarily qualifications-based, selection criteria can be focused to utilize local expertise. Also, minimal proposal investment is less costly for smaller firms; and local consultants with specialized expertise can participate without taking an at-risk position.
The Cape Coral UEP leveraged the local survey and geotechnical resources and expertise to deliver the pre-design to meet the UEP schedule. MWH’s local detailed design resources were supplemented with experienced local firms. During the pre-construction, MWH advertised for utility construction firms and connected with the local underground contractor’s association. MWH’s pre-qualification process screened the utility companies to match local firm expertise to appropriate work package sizes. MWH then “coached” the local firms to meet the expected standards for safety, quality and customer service. One prominent local utility contractor owner credited the progressive design-build approach with building his company expertise in safety and quality by stating, “We didn’t know what we didn’t know.”
Reduced Complexity and Cost of Procurement
At 30 percent design, the first fully detailed estimate can be used to establish a scope baseline and all estimating and competitive bidding is open book. This enables the owner to review the bids at any time. At various points in the design, when appropriate, the GMPs are developed, reducing risk and contingency and enabling the schedule to be met.
On the Cape Coral UEP, at the 30 percent design stage, a typical utility expansion area was fully defined with the gravity sewer layout prepared to establish critical sewer runs, maximum excavation depths and proposed pump station locations. With the support of geotechnical data, project staff completed an optimization of the “best” utility arrangement to deliver the minimum number of pump stations from an operation and maintenance perspective, compared with the expense of deep excavation in differing geotechnical conditions. In addition, staff evaluated the price fluctuations of key primary materials, as well as the local labor, equipment and fuel indices, to evaluate a detailed estimate of the construction cost.
Reduced Time in Selection of a Design-Builder
MWH was selected on a qualifications basis as the progressive design-builder. This selection on a qualifications basis matched the exact detailed requirements of the client to the best qualified firm, without a cost comparison to a non-defined scope of work. This allowed MWH to deliver the local resources and national expertise to meet the city’s requirements on an individual work package basis, maximizing efficiency for the city.
Owners Can Utilize “Escape Hatch”
When progressive design-build is used, owners can hire a third party to evaluate estimates and go the hard bid market themselves if they are unsuccessful at coming to agreement on the GMP. On the City of Cape Coral’s UEP, MWH developed the GMPs on an “open book” basis with pre-agreed labor rates and fees. This allowed city staff to influence the development of the draft GMP as the design progressed. Once the competitive bidding process had been completed, the GMP was finalized without the need for any further negotiation or review by the city staff.
Upon its expected completion in 2011, the UEP is expected to consist of more than 830 miles of underground pipeline. In 2004, the city launched a subsequent seven-year, $440 million facility expansion program (FEP) that includes further expansion of water, sewer and irrigation collection, distribution, transmission and treatment systems. This work, also performed using progressive design-build, includes the North Cape Reverse Osmosis Water Treatment Plant, the Southwest Water Reclamation Facility and the Everest Parkway Water Reclamation Facility, as well as a regional biosolids facility.
Overall, the progressive design-build delivery method has provided the City of Cape Coral with a single point of responsibility for critical infrastructure expansion and development with cost and schedule certainty. This has freed up City staff to develop the policies, procedures, strategy and schedule necessary for completing a successful complex and critical residential development program.
Diane Jones is Director of Marketing for MWH Constructors Inc. She has been in marketing and communications for 21 years, including public relations, advertising, strategic planning and proposal management, and has been with MWH since 2002.
