Culture Change, CM at Risk (CMAR)

This survey is being sent to governmental owners, CMR general contactors (“CMs”), subcontractors, and A/Es, who have participated in CMR contracts.  The poll asks for your opinion or experiences regarding aspects of the CMR contracting process that may be different those traditional, design-bid-build (DBB) projects.  All the replies to this survey will be kept confidential; the data will be integrated so responses of individuals cannot be identified.  The results will be made available to all the participants. 

Most governmental CMR contracts have these features: The CM is selected based on chiefly or entirely on qualifications.  The owner employs the A/E.  The CM works with the owner and the A/E during the design phase providing “preconstruction services:” evaluating costs, estimating, providing value analysis, scheduling, and constructability advice.  The owner pays for these preconstruction services separately from the construction services.  If there are long lead procurements or certain construction items that must be fast-tracked, these are also paid separately during this preconstruction phase.  As the design nears completion, the owner and the CM negotiate a price or fee for the project.  This might be a lump sum price or a cost reimbursable contract with a fixed fee.  If the owner and CM cannot agree on the price, the CM is paid for the preconstruction services and the owner will seek a different contractor for construction.  A common fee arrangement is a “Guaranteed Maximum Price” (GMP).  The CMR will subcontract all or most of the work.  If the final cost is less than the GMP, the CM and the owner may split the savings by a pre-agreed formula.

All the questions have multiple choice or very brief fill-in responses.  Following several sections there is space if you would like to make a text comment, as well as space at the end for general comments – you do not need to make any text comments.

I. Demographics of respondent.
A. Which term best describes your employer’s relation to CMR projects?: 
[Check/X one]
___  Owner,
___  A/E,
___  CM or general contractor
___  Subcontractor.

B. How many years have you been in the facilities planning, design or construction field?
[Check/X one]
___  Less than 5 years,
___  5 to 10 years,
___  10 to 20 years,
___  More than 20 years.

C. How many CMR projects have you been involved with?  (For private work, to distinguish CMR from ordinary negotiated work, in CMR the owner hires the A/E and the contractor provides pre-construction services early in the design and guarantees schedule and GMP during the final design.)
[Check or put Xs in one or two columns]

II.  A/E and CM in Pre-construction
Ideally, the CM is selected and placed under contract shortly after the A/E is hired.  However this is not always possible.  How do you perceive the negative impact to the project, taken as a whole, if the CM is not hired until later in the design process?

Case A. CM hired immediately following completion of 10%/ schematics
Check/X one:
___  No negative impact,
___  Slight negative impact,
___  Moderate negative impact,
___  Severe negative impact,
___  Don’t know.

Case B.  CM hired immediately following completion of 35%/design development
___  No negative impact,
___  Slight negative impact,
___  Moderate negative impact,
___  Severe negative impact,
___  Don’t know.

Case C.  CM hired a immediately following completion of 65% / design review
___  No negative impact,
___  Slight negative impact,
___  Moderate negative impact,
___  Severe negative impact,
___  Don’t know.

Case D.  CM hired immediately following completion of 95%/ construction documents.
___  No negative impact,
___  Slight negative impact,
___  Moderate negative impact,
___  Severe negative impact,
___  Don’t know.

Comments on the A/E preconstruction questions?_____________________

III. Preconstruction services of subs
Some CMR-contracts do not allow hiring of subcontractors until later in the process, after the design is 95% complete.  This leads to questions about how the CMR will provide preconstruction services relating to specialties – mechanical, electrical, etc.  How do you feel about these statements?

A. “In my personal experience, this is not a problem because most CMs have sufficient specialties experience to provide preconstruction services in all the main specialties.”
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

B.   “In my personal experience, this has not been a problem because the CMR was able to bring appropriate specialty contractors into the preconstruction process, even though they were not under contract.”
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

C.  “In my opinion, if there were no legal, policy or political prohibitions, the subcontractors should be hired early in the design process based on qualifications, paid standard rates for preconstruction services, then fees negotiated after design is near completion.”
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

D.   In my opinion, ideally, the subcontractors should be hired early in the design process based on qualifications, paid standard rates for preconstruction services, then required to bid on the work with several other prequalified specialty contractors.
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

E.   If there were legal or policy prohibitions against negotiating subs rather than bidding, would you be willing to lobby for removing that prohibition?
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

Comments on the subcontractor questions?

There were many text comments and a meta analysis of subcontrator issues.

IV.  CMR selection.
1.  If the general project scope and budget is known, it would be practical to have the CM propose fees along with qualifications in a two envelope procurement – qualifications evaluated first, then fee.  If the state law did not preclude it, what weight should the fee be given in a two envelop selection of a CMR:
___  None/fees should not be a factor in selection
___  Small weight 10 to 20 % of selection points
___  Moderate weight 30 to 40 % of selection points;
___  None of these – the system should be arranged to require bidding by qualified CMs.

Comments CMR selection _____________________

V.  Teamwork and Partnering
Let us define “teamwork” here to mean “excellence of communications and cooperation that expedites achieving joint goals.”

A. “From my perspective, regarding governmental projects, teamwork is much better on CMR contracts than design-bid-build.”
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

B.  From my perspective, regarding governmental projects, teamwork improves with the number of CMR projects the team members have completed.
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

C.  Partnering:  Have you participated in a formal (outside moderator) partnering lasting at least a day for any major project – CMR or non-CMR
Check/X one:
___  Yes
___  No

D.  “In general, for a major project (CMR or non-CMR), a formal partnering session is worth the time and expense.”
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

E.  Do you believe that formal partnering for your first or second CMR project was/would have been helpful?  (Leave blank if you have not done a partnering.)
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

F.    Do you believe formal partnering for your later CMR projects, after the first two, would have been helpful?
Check/X one
___  I’m still on first or second, 
___  Should have significant partnering for all major projects
___  Somewhat less important for me, but may be good for others in the project
___  Waste of time.

G.   Do you feel meeting/socialization of all major project participants early in the project – a meeting/socialization less formal partnering but more than routine progress meeting, for example, a picnic or catered lunch, is a benefit to the project?
___  No real benefit/probably a waste of time,
___  Perhaps some benefit,
___  Probably beneficial,
___  Good idea/I’d recommend it.

Comments on teamwork and partnering? ___________________

VII.  Areas of Tension.  Following asks your opinion about potential for tension between the parties.  Following this, you will be asked if there are other areas of tension.

A/E design.  First some general comments: The CM will review the A/E’s design and make suggestions about cost savings and constructability.  Some of these may affect the A/E’s design concept.  Of course there is always a trade-off between aesthetics/utility/maintainability on one hand and cost/constructability on the other hand. 

A. In my opinion, regarding tension between the A/E and the CM:
Check/X one
___  This is seldom a problem
___  This is a likely problem, but the owner often sorts it out (i.e., need a strong competent owner’s rep)
___  This is a likely problem, but the team usually sorts it out (i.e., A/E and contractor generally handle without too much owner involvement)
___  This is often a problem.

B.  There may be a tension, if the A/E believes the CM is trying to reduce scope to make the CM’s job easier and/or the CM believes the A/E is trying to embellish the project and pass the risk on to the CM.
Check/X one
___  This is seldom a problem
___  This is a likely problem, but the owner often sorts it out (i.e., need a strong competent owner’s rep)
___  This is a likely problem, but the team usually sorts it out (i.e., A/E and contractor generally handle without too much owner involvement)
___  This is often a problem.

C.  Regarding the above, what is your opinion regarding a competent independent estimator is hired by the owner
Check/X one:
___  The situation is improved with a competent independent estimator working for the owner.
___  The owner’s estimator is unlikely to improve the situation, just another opinion in the mix
___  The owner’s estimator is likely to make the situation worse

D.  Do A/Es feel their designs are constrained – less opportunity for aesthetic improvements and innovations by CMR project deliver systems than DBB? (If you are not an A/E, please give your impressions anyway.)
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

E.  Some CMR contracts, and some owners by policy, require the A/Es estimate and the CM’s estimate to be within 5% of each other at the conclusion of each design phase (10, 35, 65% ) in order to progress to the next phase.  Do you feel:
Check/X one
___  This is a good policy, if it is rigidly enforced
___  This is a good policy if it is not too rigidly enforced, i.e., 10 or 15% is OK in early phases.
___  Not very good policy, it gives a false sense of security
___  Not very good policy, wastes time
___  Not a very good policy, for other reasons.

F.  In general, do you believe issues related to design changes and A/E fees are: (If you are not an A/E, please give your impressions anyway.)

___  Are often an important impediment to teaming
___  might be an impediment to teaming;
___  not usually an impediment to teaming;
___  have not been an impediment to teaming;
___  don’t know

G.  Relative to DBB, there are far fewer design errors problems in CMR.
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

H.  During pre-construction, how often should there be formal meetings (minutes taken and distributed) between the owner, A/E, and CM
___  Seldom or only if special circumstances warrant
___  Only when the A/E finished a phase, typically 10, 35, 65, and 95% design
___  Certainly, at the conclusion of the design phases, but also approximately Weekly
___  [Same] Biweekly
___  [Same] Monthly

Comments about pre-construction phase?__________

VIII. Construction phase

A.  Some owners report that on CMR projects the contractors are more “cooperative” during construction activities.  “Cooperative” is difficult to define, but let’s assume it means willingness to accommodate small changes (example: “ give up one of your parking spaces for a few weeks”), willingness to attend unscheduled and scheduled meetings, willingness to provide extra data and reports, prompt attention to owner requests (example: “repair the hole in the fence”).
Do you feel that CM on the job site of CMR contracts is more cooperative than comparable DBB projects?
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

B.  Do you believe, a superintendent who was generally successful on DBB projects might not be as successful on CMR projects?
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

C.  Do you believe CMs use less qualified managers and superintendents on CMR work than DBB work?
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

D.  Since the CM site staff are generally reimbursable, do you believe they use higher priced staff or more people than they would on similar DBB work.
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

The next two questions involve activities of the owner other than inspection/QA/QC

E.  A prudent owner should have a middle-management level manager on the job at least part of each day because there are important issues of coordination with other activities of the owner, scheduling and phases, inherent complexity of the project, myriad other issue with the users, there are often many coordination issues.
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

F.   “The job goes smoothest if the owner’s manager only visits the job as occasion warrants and leaves all the day-to-day jobsite oversight to the CM.”
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

The next two questions involve the overall QA/QC, [We combine G. and H. in the analysis] meaning the entity that hired the inspectors, reviewed the inspection reports, maintained the records, granted or refused minor exceptions.

G.  On the CMR jobs you have worked, who was responsible for the overall QA/QC?  Since jobs may have different organizations, average your experiences and answer by dividing 100% among the following choices
______%  A/E who designed the facility
______%  Owner with his own forces
______%  Owner with contractors/consultant not affiliated with CM
______%  CM with contractors/consultants
______%  Building code authority (other than the owner)

H.  In your opinion, for future jobs, how would you prefer the overall QA/QC be handled?
Again, divide 100% among the following choices
______%  A/E who designed the facility
______%  Owner with his own forces
______%  Owner with contractors/consultant not affiliated with CM
______%  CM with contractors/consultants
______%  Building code authority (other than the owner)

Comments on QA/QC?_____________

I.  If the costs of a design error were taken from the contractor’s contingency under the GMP, it could cost the CM if they were receiving a percentage of cost savings and/or it will reduce the CM’s contingency that might be needed for other risks. 
Which do you think is fair?
___  Take it out of the owner’s contingency, since the error is not the CM’s. 
___  Take it out of the contractor’s contingency, since the CM reviewed the design and is in the best position to control the cost increase.

J.  In general, do you feel the CM will “eat” minor cost increases due to design, or third party coordination issues that total less than 1% of cost and may decrease the CM’s contingency slightly, in order to, improve his chances of future work with the owner or recommendations to other owners?
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

K.  In general, do you feel the subs will “eat” minor cost increases due to design errors, that total less than 1% of their contracts, which decrease their fee slightly in order to improve there chances of future work with the owner or CM?
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

L.  One advantage of CMR to public owners is the ability to fast track construction phases or procure long lead equipment under an existing (the CMR) contract. 
Do you believe that owners in CMR utilize that ability sufficiently?
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

M.  Regarding the percentage of work self-performed by the CM, i.e., not subcontracted, do you believe, in general, self-performance by the CMR should be discouraged, other than minor site cleanup and safety.
Score 1-5, where 1 means strongly agree and 5 means strongly disagree.
____________Score

Any other comments? [Many good construction phase comments]

END of Survey.  Thanks.