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Selecting the Best Value for the Lowest Cost

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Contractor Change Orders: 0%
Cost Impacts: 2.8%
Satisfaction: 10 out of 10 vendor risk rating by Client PM

 

Type: Best Value (PIPS)

 

Contractor: J.E. Dunn Construction

Designer: TSP, Inc.

Location: New Hope, MN

Contract: $26,000,000

Start Date:  March 2011

Completion Date: August 2012

North Education Center, New Hope MN

Intermediate School District 287 partnered with our group to implement the Best Value Model on the construction of a new classroom facility. Best Value procurement identified the selected contractor as being both the most qualified proposer and the lowest cost.

The risk- and value-focused procurement model clearly identified the best value contractor among the nine competing contractors. Best Value evaluations demonstrated that the awarded contractor understood the project needs and risks, as their Risk Assessment submittal and project team interviews both received the highest score.

North Education Center was completed with an overall 2.8% cost increase (0% contractor change orders) in August, 2012. The project was awarded the 2013 Minnesota Construction Association Choice Award, which honors one project that was completed through resourceful blending of construction techniques and professionalism.

District 287’s Facilities Director, Tom Shultz, identified the Best Value method for their success:
“If I’m the owner, I’m not the expert [in construction],” Shultz said. “I’m asking the experts to tell me how much it’s going to cost, and where the risks are in the building. The process doesn’t focus solely on price: it focuses on finding the best contractor to give you the best building.”

REFERENCE:  Tom Shultz,  Director of Facilities | twshultz@district287.org | 763-550-7120

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Cost Savings on School Renovations

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Percent Awards Below Budget: 20%
Contractor Change Orders: 0%

Contractor Schedule Delays: 0%

Satisfaction: 10 out of 10

Total # of projects: 18

 

Type: School Renovation / IAQ

Location: Rochester, MN

 

Contract: $18,003,000 (total)

 

Start Date: April 2009

Finish Date: August 2013

School Upgrades for Indoor Air Quality (IAQ)

Rochester Public Schools ISD #535 serves approximately 16,400 students in 16 elementary schools, four middle schools, and three comprehensive high schools. In April 2009, the first Best Value tests were conducted on John Adams Middle School for general renovation and air quality control upgrade project.

The District was very satisfied with the performance, and continued with 17 additional projects utilizing the Best Value delivery system. All of the projects were completed during the schools’ very limited summer construction timeframe (approximately three months). The client stated, “Using best value allowed us to see solutions from the contractors before the projects begin, which saves time in our tight schedule.”

REFERENCE:  Jim Kelly, Design & Construction Services | jakelly@rochester.k12.mn.us | 507-328-4506

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