Project Case Studies

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Optimization of the Design Process

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Best Value Impact:

  • Quicker response time for client and designer interactions
  • Improved interactive agreement for design direction
  • Real time risk tracking during design development

 

Type: Design

Architect: Stantec

Location: Edmonton, Canada

 

Contract: $3,550,000

 

Start Date: March 2012

Completion Date: February 2013

Design for Redevelopment of an Iconic Building on Campus

The Best Value Procurement Model was used to select a design team for redevelopment of a 330k SF historical building. A Phased Selection process was used to assemble design team in 3 components to achieve the most advantageous team:

  • Architectural, Structural, Envelop
  • Mechanical
  • Electrical

The Owner and Vendor have seen Best Value optimize the design process in many ways:

  • Increased efficiency has been achieved via a faster response time for interactions between Client and Vendor.
  • Risk-focused performance measurement has aided the team in identifying key risks, collaboratively establishing mitigation strategies, and transparently tracking progress throughout design development.
  • Design Reports have been on time, met requirements, and had high Client satisfaction.
REFERENCE: Hugh Warren, Executive Director of Operations & Maintenance | hugh.warren@ualberta.ca | 780-492-6405

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Risk Management Process Reduces Costs

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Schedule Delay: 0%
Cost Impacts: 1%

Contractor Change Orders: 0%

Satisfaction: 10 out of 10 vendor

risk rating by Client PM

 

Type: Construction (CMAR)

Contractor: Mortenson

Construction

Location: Minneapolis, MN

 

Contract: $51,000,000

 

Start Date: November 2011

Completion Date: November 2013

Physics & Nanotechnology Building (CMAR)

The experimental physics and nanotechnology advancement building will provide modern and highly flexible physics laboratory and laboratory support space, and nanotechnology space (including a 5,000-square-foot clean room). All told, the facility will contain 40 new research laboratories.

ASU helped implement the Best Value Model for risk management during project planning and delivery with successful; results. Adhering to this model has allowed the awarded contractor to limit overall cost increases to less than 1% of their planned cost, which was well below the allotted contingency budget. The Best Value performance measurement system has facilitated the ability of the project to stay on schedule for a planned completion date of November 2013, even though the project has seen a down economy and a State Government shutdown in 2011.

REFERENCE:  Mike Perkins, Associate VP of Capital Planning (Retired) | michael.perkins57@yahoo.com |612-877-0430

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Pre-Planning Enables Facility Optimization

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Cost Savings: 35%
Schedule: 60% reduction

Contractor Change Orders: 0%

Type: Design Build Construction

Contractor: Stuart Olson Dominion Construction, LLC

Location: Edmonton, Canada

 

Contract: $21,000,000

 

Start Date: October 2011

Completion Date: December 2012

Design Build for High Tech Research Space

The University of Alberta redeveloped existing research space into a hot lab with a cyclotron particle accelerator. For this extremely complex project, the University used the Best Value Model for selection, pre-planning, and performance measurement.

The Best Value pre-planning process resulted in significant savings and optimization of facility operation.  As a result of the pre-planning process, the contractor identified & minimized unforeseen design and constructability risks before the project began.

“Best Value saved 14-18 months in schedule and $8-12M in cost when compared with traditional processes that would have resulted in change orders during construction” – Hugh Warren, Dir. Facilities & Operations

Using Best Value IPD, the project will be completed in approximately 18 months at $28M, whereas owner estimates of using a traditional delivery model would place the project at 48 months and $44 – 48M.

REFERENCE: Hugh Warren, Executive Director of Operations & Maintenance | hugh.warren@ualberta.ca | 780-492-6405

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Best Value Minimizes Cost in Services

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Cost Savings:

  • $500,000 per year in upfront costs
  • $400,000 additional internal savings
  • Reassigned 3 FTEs to different work

 

Type: Custodial Services

Vendor: Bee-Clean Building
Maintenance

Location: Edmonton, Canada

 

Contract: $18,000,000

 

Start Date:  August 2011

Campus-Wide Custodial Services

The owner used ASU to apply Best Value to deliver custodial services for its main campus. The risk and value focused procurement approach realized an initial contract savings of $500,000 annually.

ASU provided pre-planning support to the selected vendor to address client concerns and facilitate risk identification, mitigation and documentation.

Highlights:

  • $400k internal savings during the initial year of implementation.
  • Vendor adoption of full QA/QC responsibilities, allowing the Client to internally reassign 3 FTEs to different work on a full time basis (indirect savings of $180k)
  • Satisfaction Rating: 10 out of 10 Rating of Vendor Performance by Client PM

“This process gave Bee-Clean the freedom to find solutions that work for them as well as us, rather than us dictating…they are now coming to us with solutions rather than problems” – George Thomlison, Client PM.

REFERENCE: Brian Stewart, Director of Procurement | brian.stewart@ualberta.ca | 780-492-2775

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Vendor-Generated Solution Maximizes Cost Model

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Schedule: 0% Transition Delays
Cost Impact: $3.5M guaranteed revenue generation per year

 

Type: Services

Vendor:  Follett Higher Education

Location: Tempe, AZ

 

Contract: $35,000,000

 

Start Date:  May 2011

Duration: 10 Years

Campus Book Stores

The University turned to our group to outsource campus book store services. Although satisfied with their in-house operations, the University felt pressure to seek vendor expertise for long-term solutions due to rapidly evolving market conditions in the book industry.

Our group facilitated an RFI process to define market capabilities and identify current performance levels of in-house book store operations. A Best Value RFP was released, including an option for vendor-created cost model proposals. This innovative RFP approach resulted in an awarded contract which guaranteed the University minimum commissions of $3.5M per year, $2M in capital improvements, plus additional percent commissions. This was a huge financial success, especially when compared to the cost-based in-house model being utilized prior to outsourcing.

As the awarded vendor participated in the Best Value pre-planning process to seamlessly transition into full operation and management responsibilities before the start of the ensuing semester, all with 0% schedule impacts.

REFERENCE:  Sam Wheeler,  Executive Director of Business Services | sam.wheeler@asu.edu

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