Item No.: 7b_supp 
Date of Meeting: May 6, 2014 
International Arrivals Facility 
Project Delivery 


5/6/2014                                                                        1

Big Picture Issues 
Budget/Cost 
Budget Confidence / Certainty 
Cost Commitments / Risk 
Cost Control 
Fast Track 
i.e. overlap of design and construction phases 
Maintaining design quality using Design
Build 
5/6/2014                                                           2

Timeline / Process Questions 
Budget / Cost 
What is the progression of committed costs? 
What is the point of no return? Off ramps? 
When/how is the budget established? 
How are costs controlled? 
When is the actual cost known? 
When is the Design Builder engaged 
What is the contractual commitment? 
When is the point of no return? 
How far along will the design be when construction
starts? 
What are the commission authorization/decision
points? 
5/6/2014                                                           3

Project Delivery Methods 
Fundamentals of successful project
management are common to all delivery
methodologies. 
Challenges posed by the traditional Design-Bid-
Build method have led to interest in alternative
delivery methods . 
The industry shift to these alternatives,
including Design Build, is because they have
proven to be better solutions for Owners for
many types of projects. 
5/6/2014                                                           4

Design Build 
Design Build ("DB") is the consolidation of
design and construction under one contract. 
Benefits of DB include: 
Single point of accountability 
Ability to compress schedule 
Integrated holistic process 
Shift of risks from Owner to Design Builder
starts at beginning of design 

5/6/2014                                                           5

Lump Sum DB vs. Progressive DB 
Lump Sum Design-Build (LSDB) 
Contract is awarded on fixed price based on Owner
furnished partial design. 
Progressive Design Build (PDB) 
Design Builder and Owner collaborate to design to
Owner's validated budget. Guaranteed Maximum
Price (GMP) is established later in design process. 

5/6/2014                                                               6

Process Overview 

Translate        Develop 
Procure 
Initiate       Quantify Facility    Performance       Conceptual      Proceed with 
Subcontracts      Complete
Program     Performance    Requirements   Design Based on    Stages of 
& Start         Construction
Development    Requirements    into Project       Project        Design 
Construction
Process                   Definition      Definition     Development






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International Arrivals Facility (IAF) Program
General Program Timeline
Today
2014           2015           2016           2017           2018
Initiation
PProgram Definition/Requirementsrogram Definition/Requirements
Procurement
SSelect DBelect DB
DDB NegotiationB Negotiation
DB Award
Validation Phase
Design
Construction
Activation


Stakeholder Involvement
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International Arrivals Facility (IAF) Program
Procurement and Cost Control
Project Definition
POS Budget/Schedule Validation
RFQ Authorization
$$ 
RFQ Process
DB Shortlist
RFP Authorization
RFP Process
DB Selected
Contract Negotiated
Award Authorization
DB Concept Design and Cost/Schedule Validation
$$
Design/Construction Authorization
Design (to budget)
Progress      Progress   Progress Estimates
Estimate     Estimate
$ $ 
POS Managed Activities                                                                 GMP
Design-Builder Managed Activities                                                                 $$$ 
Jointly Managed Activities
Sub Trade     Sub Trade     Sub Trade     Sub Trade     Sub Trade   Sub Trade Packages
Package      Package      Package      Package      Package
$ DB Ongoing Cost & Schedule Verification Process
$$ Cost & Schedule Validation Checkpoints                                                                        Construction
$$$ GMP Cost & Schedule Validation
Commission Action

5/6/2014                                                           9

5/6/2014                                                          10

Qualifications Based Selection 
Best team is best route to successful project 
"Qualified" team brings to bear the skills, experience,
resources and capabilities needed to be successful 
Team alignment with Port's goals harnesses those
capabilities for the benefit of the project 
Port partners with Design Builder to achieve program
goals 
A talented and motivated team working in
alignment with and on behalf of the Port is the
formula for optimal outcome 
5/6/2014                                                          11

Design Builder Validation Phase 
Design Builder: 
Reviews Program Definition Documentation 
Conducts exhaustive site investigations 
Produces estimate and schedule based on
Program Definition and all other information
gathered 
Researches codes and regulatory requirements 
Takes ownership of Program Definition, Budget
and Schedule 
5/6/2014                                                          12

Guaranteed Maximum Price (GMP) 
GMP caps cost exposure, shifts risk
to Design Builder 
Reached by mutual agreement - 
open book" process 
Includes sub pricing, validated
estimates, business terms, GCs,
allowances and contingencies 
Timing varies - as early as possible
once scope has been defined. 
Construction schedule also a major
factor in timing of the GMP 
Savings revert to Port less any
performance incentives 
Design Builder responsible for GMP
overage 
Port may terminate contract if GMP
agreement not reached 
5/6/2014                                                               13

GMP Cost Distribution 
Design Builder's 
Cost Breakdown 



Trade Packages (Competitively Bid) 
Design Builder (GC's, Design, Fees, etc) 
Project Reserves 
5/6/2014                                                          14

Design Control 
Program Definition 
Structured review process 
Design Progress Reviews 
Construction Packages 
Alternates and Substitutions 
Mock-ups 
Focus on design intent and compliance with technical criteria 
Multiple specialized reviews 
Building Information Modeling / Focus Groups / 
IAF Decision Committee 
Design is monitored for adherence to comprehensive Program
Definition documents 

5/6/2014                                                          15

Quality Control 
The GMP will include mutually agreed upon assumptions
for quality. 
Design Quality Control Plan 
Construction Control Plan 
Work Plans 
Port verification of adherence to Plans 
Quality Approach can be scored in the RFP 
Design Builder's Quality Manager will report outside of the
project organization and will partner with the Port to
assure a quality product 

5/6/2014                                                          16

Recap 
Progressive Design Build is the right delivery
method for the IAF to achieve budget,
schedule and quality goals 
Early budget validation will provide a high
degree of confidence prior to major cost
commitments 
Schedule compression can be accomplished
with less risk to the Owner 
Quality results are achieved based on mutually
agreed upon performance standards 
5/6/2014                                                          17