Post by bennyp81 on Jun 15, 2005 10:42:00 GMT -8
Bart Reed
User ID: 1606604 Dec 6th 11:18 AM
Biz Ink: Friday, December 05, 2003
Contractor lands Muni deal with a new twist
BY RADHIKA KAUSHIK
Staff Writer
McCarthy Building Cos. Inc. recently snagged a portion of a $110 million project with San Fran-cisco Municipal Railway (Muni) to oversee the construction of a 13-acre maintenance, storage and
operations facility for 80 light rail cars. But the bidding process was less than conventional.
Because strained relationships between general contractors and public agencies often lead to work-related problems and, ultimately, litigation,
general contractors are increasingly being asked to hop aboard public projects even before the design has been finalized.
This so-called construction manager/general con-
tractor (CMGC) method was used in the Muni project. The process involves hiring a general contractor -- in this case, McCarthy -- upfront to oversee the project, which includes packages of work that subcontractors will bid on.
"Usually cities just had to wait until the design and contract was finished before going out to bid," explains Frances Choun, vice president of business development for McCarthy, which is based in St. Louis, but has an office in San Francisco.
"In Muni's case, the design was already finalized, but we were still brought in earlier to provide construction-management services for constructability, design review and to provide input."
The construction company's other CMGC delivery-based public project is the renovation of Stanley Hall on the University of California, Berkeley campus.
McCarthy was awarded the Muni contract because its bid for contractor fees and general costs was the lowest, according to Dennis Tsai, senior program manager for Muni.
At this point McCarthy will get $14 million for general fees and contractor costs, as a portion of the $110 million.
CMGC is new for Muni, which historically has bid projects on a lump-sum basis rather than allowing contractors to bid on portions of a project.
CMGC, which is increasingly being used on public projects in the Bay Area, is advantageous to Muni, McCarthy and the community, as it encourages local Disadvantaged Business Enterprises (DBE) to bid as subcontractors on construction-related portions of the project, Choun says.
DBEs are federal goals established for businesses whose growth receipts do not exceed more than $17.42 million annualy over the previous three fiscal years. These also are typically small businesses in which disadvantaged persons, such as minorities or women, own at least 51 percent.
McCarthy will be the construction manager on the Muni project; eventually 60 to 70 subcontractors also will be involved, explains Jim Stewart, McCarthy project director.
By contrast, the traditional method is to bid the entire contract out to a single contractor who meets the project's good-faith-based DBE goals by hiring subcontractors that it has worked with in the past.
"This [CMGC delivery method] is in response to community concerns for an equitable bid process wherein all subcontractors are treated equally," Tsai says. "Rather than have a single contract, multiple trade packages provide equal opportunity [for] subcontractors to bid."
The new Muni Metro East Light Rail Vehicle Maintenance and Operations Facility, which will be located between Illinois and 25th streets in San Francisco, is needed to relieve overcrowded conditions at Muni's other light-rail facilities.
Construction for the project will start two or three months after a formal notice of acceptance of the bid is delivered to McCarthy, slated for Jan. 1. The project will take 33 months from start to finish. The project is being funded by Proposition B, passed by San Francisco voters in 1989, Tsai says.
Radhika Kaushik is a Biz Ink reporter.
You can reach her at rkaushik@svbizink.com.
Þ--Þ--Þ
Bob Davis
User ID: 0240854 Aug 19th 12:21 AM
I was in MuniLand in June, and checked out the 3rd St. Project. A lot of the rail was in place; while I was there a crew was setting specialwork (switches) in Third St. for the south access to the MMELRVMOF (carbarn). I went to the carbarn site and found a weed-grown lot with an "ON THIS SITE" sign and not much else. Reminded me of a cartoon that showed such a sign reading: "ON THIS SITE a bunch of workmen will fool around for a few days---and leave." If the line will be running next year, McCarthy had been get a move on. (Anyone from The City with more info, please fill us in)
User ID: 1606604 Dec 6th 11:18 AM
Biz Ink: Friday, December 05, 2003
Contractor lands Muni deal with a new twist
BY RADHIKA KAUSHIK
Staff Writer
McCarthy Building Cos. Inc. recently snagged a portion of a $110 million project with San Fran-cisco Municipal Railway (Muni) to oversee the construction of a 13-acre maintenance, storage and
operations facility for 80 light rail cars. But the bidding process was less than conventional.
Because strained relationships between general contractors and public agencies often lead to work-related problems and, ultimately, litigation,
general contractors are increasingly being asked to hop aboard public projects even before the design has been finalized.
This so-called construction manager/general con-
tractor (CMGC) method was used in the Muni project. The process involves hiring a general contractor -- in this case, McCarthy -- upfront to oversee the project, which includes packages of work that subcontractors will bid on.
"Usually cities just had to wait until the design and contract was finished before going out to bid," explains Frances Choun, vice president of business development for McCarthy, which is based in St. Louis, but has an office in San Francisco.
"In Muni's case, the design was already finalized, but we were still brought in earlier to provide construction-management services for constructability, design review and to provide input."
The construction company's other CMGC delivery-based public project is the renovation of Stanley Hall on the University of California, Berkeley campus.
McCarthy was awarded the Muni contract because its bid for contractor fees and general costs was the lowest, according to Dennis Tsai, senior program manager for Muni.
At this point McCarthy will get $14 million for general fees and contractor costs, as a portion of the $110 million.
CMGC is new for Muni, which historically has bid projects on a lump-sum basis rather than allowing contractors to bid on portions of a project.
CMGC, which is increasingly being used on public projects in the Bay Area, is advantageous to Muni, McCarthy and the community, as it encourages local Disadvantaged Business Enterprises (DBE) to bid as subcontractors on construction-related portions of the project, Choun says.
DBEs are federal goals established for businesses whose growth receipts do not exceed more than $17.42 million annualy over the previous three fiscal years. These also are typically small businesses in which disadvantaged persons, such as minorities or women, own at least 51 percent.
McCarthy will be the construction manager on the Muni project; eventually 60 to 70 subcontractors also will be involved, explains Jim Stewart, McCarthy project director.
By contrast, the traditional method is to bid the entire contract out to a single contractor who meets the project's good-faith-based DBE goals by hiring subcontractors that it has worked with in the past.
"This [CMGC delivery method] is in response to community concerns for an equitable bid process wherein all subcontractors are treated equally," Tsai says. "Rather than have a single contract, multiple trade packages provide equal opportunity [for] subcontractors to bid."
The new Muni Metro East Light Rail Vehicle Maintenance and Operations Facility, which will be located between Illinois and 25th streets in San Francisco, is needed to relieve overcrowded conditions at Muni's other light-rail facilities.
Construction for the project will start two or three months after a formal notice of acceptance of the bid is delivered to McCarthy, slated for Jan. 1. The project will take 33 months from start to finish. The project is being funded by Proposition B, passed by San Francisco voters in 1989, Tsai says.
Radhika Kaushik is a Biz Ink reporter.
You can reach her at rkaushik@svbizink.com.
Þ--Þ--Þ
Bob Davis
User ID: 0240854 Aug 19th 12:21 AM
I was in MuniLand in June, and checked out the 3rd St. Project. A lot of the rail was in place; while I was there a crew was setting specialwork (switches) in Third St. for the south access to the MMELRVMOF (carbarn). I went to the carbarn site and found a weed-grown lot with an "ON THIS SITE" sign and not much else. Reminded me of a cartoon that showed such a sign reading: "ON THIS SITE a bunch of workmen will fool around for a few days---and leave." If the line will be running next year, McCarthy had been get a move on. (Anyone from The City with more info, please fill us in)