doi:10.3850/978-981-08-7920-4_S1-C04-cd

ABSTRACT

This article describes the methodology and experience from an owner’s perspective regarding the utilization of a Construction Manager at Risk (CM@R) project delivery approach for a $186M Airport Terminal Expansion Program at the Oakland International Airport (OAK) in Oakland, California, USA. The context of the article is a comparison of the CM@R project delivery approach to the Design-Bid-Build project delivery approach, which is the traditional and commonly used project delivery approach at OAK. The content of the article includes a brief description of OAK and the projects that comprise the Airport Terminal Expansion Program. A summary of the main objectives for utilizing the CM@R project delivery approach is presented. An overview of Port’s experience is provided and key contract features are pointed out together with the associated results. The article concludes with a summary of what the owner believes were the most advantageous aspects of this project delivery approach. These include the potential for change order avoidance due to the pre-construction responsibilities of the CM@R including existing conditions investigations and constructability/coordination reviews of the design. Also, the CM@R’s ability to analyze the subcontractor bids for missed scope, exclusions and assumptions and account for any cost impacts was also an important aspect of the project delivery approach. The concept of including adjustments within the Guaranteed Maximum Price Proposal (GMP) as a means of risk sharing is discussed as is the idea of sharing savings between the CM@R and the owner to provide an incentive for efficiency and value engineering.

Keywords: Construction Manager @ Risk, Guaranteed maximum price, Prime builder contract, Local business utilization, Shared savings.

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