Talking Stick - March/April 2016 - 33

could be replaced by less costly chairs
and key access doors. It's not an ideal
solution, and sometimes people are
forced to use value engineering even
when they have a contingency plan, but
"compromises have to be made," Sisco
and Combs say.
At The University of Tennessee,
management had to quickly turn
to value engineering when they
found themselves millions of dollars
over budget. When they began the
development and design phase of their
two housing projects, compensation
had to be made for the loss of so much
money. The project managers decided
to remove card access for everything
but the student room doors, scale back
design on an exterior plaza, and change
from copper piping to PEX piping.
They also had to use less expensive
light fixtures and cut the budgets for
furniture, fixtures, and equipment.
These changes alone saved them
$1,400,000.
Value engineering is not the only
strategic way to keep your project
on track. The project head also has
to decide what type of bid to choose
for the project. There are four types
of bids, and each serves a different
purpose: design/bid/build, design/
build, construction management-at risk,
and construction management not at
risk. Design/bid/build is a traditional
method that uses separate entities for
the design and construction of a project,
with one phase being completed before
the other begins. The design/build
method utilizes a single organization
for both phases. In the construction
management-at risk method, the
construction manager accepts the risks
associated with delivering the project
on time and within the Guaranteed
Maximum Price (GMP), while the
manager of a construction management
not at risk bid does not need to operate
within a GMP. Sisco and Combs note
that, from their experience, if you
are short on time, design/build and
construction management-at risk

are the two best options. Also, if the
economy is very strong and there is not
much competition, design/bid/build is
your best choice. It is also a good option
when time is not an issue and when
you are working with an exceptional
designer. "There is no one best way
to do a project; each project must be
evaluated on existing conditions," say
Sisco and Combs. "We have done them
as design/bid/build and construction
management-at risk and had successes
and failures with both options."
North Dakota State University in
Fargo decided that it was appropriate to
use the design/bid/build model when
approaching new construction projects,
specifically their work on Bison Court
and the expansion of Niskanen Hall.
When talking about what the experience
is like, Rian Nostrum, director of
residence life, and Bill Frazier, senior
associate director of residence life
facilities, say, "It has varied with each
and every project. When we have
worked with the same architect and
general contractor, it has brought
some familiarity to the project and the
process. In the state of North Dakota
we work with three prime contracts
(general, electrical, mechanical) and end
up having to work with the low bidder
with each portion of a project. While
in theory this allows more contractors
to bid on the project it doesn't always

end up that way. Depending on the
time of year and the bidding climate,
we may either end up with a great
set of numbers and contractors or
end up with very few contractors
and higher numbers than we would
like. The three prime contracts create
interesting dynamics where each
contractor can blame the others
for delays." The benefit of working
with familiar contractors is that your
previous projects will help you develop
an understanding of how to approach
current developments. In other words,
you and your contractor will know
what each other's priorities are and will
act accordingly. Roles will be defined,
and expectations will already be set.
However, this will not be the case with
subcontractors, who may sometimes
fail to be productive, which can
jeopardize your deadline or negatively
impact the quality of the work.
North Dakota currently is working
with a construction management-at risk
bid for their Churchill Hall remodel.
They felt they could benefit from this
type of bid in several different ways.
First, it will allow the university to more
effectively minimize the downtime of
the facility. Second, it will allow them
to consistently control the costs of the
overall project. "By using this process,
we are hoping that it will take some
of the pressure off our staff having to
A new lounge
welcomes students
at Tennessee.

PHOTO COURTESY OF CONTRACT FURNITURE ALLIANCE

MARCH + APRIL 2016

33
Talking Stick - March/April 2016

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