Matching Items (4)

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Innovative Delivery of Water Infrastructure Projects

Description

Water utilities across the United States are facing numerous challenges, such as limited funding and increasing project complexity, in constructing and upgrading their aging infrastructure. One innovative method to overcome

Water utilities across the United States are facing numerous challenges, such as limited funding and increasing project complexity, in constructing and upgrading their aging infrastructure. One innovative method to overcome these challenges is through the use of alternative project delivery methods (APDM), such as construction management at-risk (CMAR) and design-build (DB). Previous research has shown that APDM have the potential to deliver higher performing water infrastructure projects when compared to the traditional design-bid-build (DBB) method. However, there is a need to further examine APDM practices and develop tools that may support utilities in the delivery of their APDM water infrastructure projects. This study fills the knowledge gap by conducting several studies that may support public and private utilities in improving the delivery of their APDM water infrastructure projects. First, APDM implementation practices for water infrastructure projects are identified by assessing the state of practice, particularly during project procurement and execution. Second, DB project administration best practices are determined to support utilities seeking to add DB to their organization’s project delivery toolbox. Third, a pioneering web-based project delivery method decision-support tool was developed to aid utilities in selecting the appropriate delivery method for their water project. Finally, project-specific factors and attributes that impact project delivery performance are investigated through exploratory modeling and analysis. The study collected data on 75 completed treatment plant projects, conducted interviews with ten utilities that successfully deliver their water projects using DB, and worked closely with several industry experts through industry workshops and panels. Key findings related to water infrastructure project delivery revealed in this study included: (1) guaranteed maximum price (GMP) is the preferred compensation type for APDM projects; (2) utilities statistically having the lowest comfort level with delivering CMAR projects; (3) qualifications-based procurement is an effective DB project delivery practice; (4) the identification of 13 key project delivery method selection factors; and (5) the three highest predictors that impact unit cost performance are project complexity, project team chemistry and communication, and project size.

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Created

Date Created
  • 2020

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DB 2020: analyzing and forecasting DB market trends

Description

Over the last two decades, Alternative Project Delivery Methods (APDM), such as Design-Build (DB), have become more popular in the construction industry, specifically in the U.S., and the competition for

Over the last two decades, Alternative Project Delivery Methods (APDM), such as Design-Build (DB), have become more popular in the construction industry, specifically in the U.S., and the competition for APDM projects has risen among construction companies. The Engineering News Record (ENR) magazine analyzes DB firms and publishes the list of the top 100 every year. According to ENR articles and many scientific papers, the implementation of DB method has grown drastically over the last decade, however, information about growth trends depending on firm size and segment is lacking. Also missing is knowledge the future market trends over the next five years. Furthermore, public agencies and DB firms may be worried that DB projects do not distribute wealth equally among DB firms. Using the top 100 firms deemed representative of the DB market, the author has divided the market into volumes based on rankings to analyze the total DB market revenue growth. A comparison between international and domestic revenues indicated that the top five DB firms have 64% more involvement in the international market compared to the domestic market. Furthermore, while the research shows increasing market share only for the top five firms, the author has found that (1) a large portion of their market share is due to a large growth in their international market, and (2) revenues for all volumes of the DB market have increased. Moreover, regression and time series analyses allow for the forecasting of the DB market growth, which the author anticipate to move from about $100B to about $150B in 2020.

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Agent

Created

Date Created
  • 2014

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A national study on leveraging public infrastructure funds: project performance and financing source analysis for public-private partnerships (PPP) in the U.S. transportation sector

Description

Transportation systems in the U.S. are in a poor state of disrepair. A significant investment is needed to replace or rehabilitate current transportation infrastructure. Currently, transportation investments are lackluster with

Transportation systems in the U.S. are in a poor state of disrepair. A significant investment is needed to replace or rehabilitate current transportation infrastructure. Currently, transportation investments are lackluster with the recession of 2008 heavily impacting transportation spending, inciting deficits and budgetary cuts at state and federal government levels. As a result, policy makers and public officials are increasingly looking for innovative financing and alternative delivery methods to supplement traditional financing and delivery for transportation projects. Subsequently, the number of public-private partnerships (PPP or P3) has increased substantially over the last two decades.

There is a growing need to quantify the project performance and financial benefits of PPP. This dissertation fills this gap in knowledge by performing a comprehensive quantitative analysis of PPP project performance and financial sources for transportation projects in the U.S. This study’s specific research objectives are:

(1) Develop a solid baseline for comparison, comprised of non-PPP projects;

(2) Quantify PPP project cost and schedule performance; and

(3) Quantify private versus public financing sources of PPP.

A thorough literature review led to the development of a structured data collection process for PPP and comparable non-PPP projects. Financing data was collected and verified for a total of 133 ongoing and completed projects; while performance data was verified for a subset of 81 completed projects. Data analysis included regression analysis, descriptive statistics, inferential statistics and non-parametric statistical tests.

The results provide benchmarks for PPP project performance and financing sources. For the performance results, non-PPP projects have an average cost change of 8.46 percent and an average schedule change of -0.22 percent. PPP projects have an average cost change of 3.04 percent and average schedule change of 1.38 percent. Statistical analysis showed cost change for PPP projects were superior to that of non-PPP; however, schedule change differences were not significant. For the financing results, private financing totaled 44.5 percent while public financing totaled 55.5 percent. This result shows private financing can be used to leverage public financing with close to a one-to-one ratio and that PPP has the potential to double the amount of infrastructure delivered to the public.

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Agent

Created

Date Created
  • 2016

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Contract Administration Functions and Tools for Design-Build and Construction Manager/General Contractor Project Delivery in U.S. Highway Construction

Description

The demand for new highway infrastructure, the need to repair aging infrastructure, and the drive to optimize public expenditures on infrastructure have led transportation agencies toward alternative contracting methods (ACMs)

The demand for new highway infrastructure, the need to repair aging infrastructure, and the drive to optimize public expenditures on infrastructure have led transportation agencies toward alternative contracting methods (ACMs) such as design-build (DB) and construction manager/general contractor (CM/GC). U.S. transportation agencies have substantial experience with traditional design-bid-build delivery. To promote ACMs, the Federal Highway Administration and the National Cooperative Highway Research Program (NCRHP) have published ACM guidance documents. However, the published material and research tend to focus on pre-award activities. The need for guidance on ACM post-award activities is confirmed in NCHRP’s request for a guidebook focusing on ACM contract administration (NCHRP 2016).

This dissertation fills the crucial knowledge gap in contract administration functions and tools for DB and CM/GC highway project delivery. First, this research identifies and models contract administration functions in DBB, CM/GC, and DB using integrated definition modeling (IDEF0). Second, this research identifies and analyzes DB and CM/GC tools for contract administration by conducting 30 ACM project case studies involving over 90 ACM practitioners. Recommendations on appropriate use regarding project phase, complexity, and size were gathered from 16 ACM practitioners. Third, the alternative technical concepts tool was studied. Data from 30 DB projects was analyzed to explore the timing of DB procurement and DB initial award performance in relation to the project influence curve. Types of innovations derived from ATCs are discussed. Considerable industry input at multiple stages grounds this research in professional practice.

Results indicate that the involvement of the contractor during the design phase for both DB and CM/GC delivery creates unique contract administration functions that need unique tools. Thirty-six DB and CM/GC tools for contract administration are identified with recommendations for effective implementation. While strong initial award performance is achievable in DB projects, initial award performance in this sample of projects is only loosely tied to the level of percent base design at procurement. Cost savings typically come from multiple ATCs, and innovations tend to be incremental rather than systemic, disruptive, or radical. Opportunity for innovation on DB highway projects is influenced by project characteristics and engaging the DB entity after pre-project planning.

Contributors

Agent

Created

Date Created
  • 2019