AMERICAN SOCIETY OF PROFESSIONAL ESTIMATORS ESTIMATING T ODAY MAY/JUNE 2019 Simply Preconstruction Estimating, or Is It? How to Estimate the Cost of Solar Water Heaters Bidding Mistakes – Part 3 Annual Summit ASPE BOARD OF DIRECTORS 2018-2019 CONTENTS President Marcene N. Taylor, CPE [email protected] First Vice President ASPE National President 3 Bruce E. Schlesier, CPE [email protected] Simply Preconstruction Estimating, or is it? 4 Second Vice President New CPE's + AEP's 6 Mel D. Cowen, CPE [email protected] New Members 7 Bidding Mistakes – Part 3 8 Immediate Past President Doyle T. Phillips, FCPE Faces of ASPE: Trip McGrath, CPE 9 [email protected] ConsensusDocs 305- New Tool to Treasurer (Appointed) Contract for Lean Projects 10 M. Chris Morton, FCPE HTETCO Solar Water Heaters 14 [email protected] ASPE Kansas City Summit 24 Northwest Governor Specifications and Estimating: A New Stacie Flynn [email protected] Vision for Better Outcomes 26 Southwest Governor Faces of ASPE: Estel Taylor 31 Larry Hendrick, CPE Kalwall 32 [email protected] Critical Calendar 35 Central Plains Governor Chapter Meetings 36 A. Keith Parker, CPE [email protected] Southeast Governor Carolyn Morones, CPE [email protected] 2525 Perimeter Place Drive, Suite 103 Northeast Governor Nashville, Tennessee 37214 Greg Williamson, CPE 615.316.9200 • ASPEnational.org [email protected] CONTACT THE ASPE BUSINESS OFFICE INDUSTRY DIRECTORS Tina Cooke Allan Hauck, Ph.D., CPC [email protected] • Standards Committee • Website • Accounting Department Head + Professor Cinder McDonald Construction Management [email protected] • Certification Committee & Program California Polytechnic State University Ann Ludwig, MPP Consultant ASPE Message from the President his is the last time I will write an article as President of ASPE. In the past three years, we have worked diligently and invested in building a strong foundation for growth of the organization. We updated our Core Values and Purpose and completed a strategic plan. We ensured that the Society was properly incorporated, insured, and has the appropriate Tnon-profit tax exemptions. We invested in staff to support the membership and the mission of the Society. We returned to printed and delivered editions of Estimating Today and the Membership Directory. We have developed Corporate Memberships and the Associate Estimating Professional (AEP) program. With this foundation in place, we are now poised for growth. At this point, we need the input of our membership. We have made investments to ensure that the Society is solid, but have not yet seen growth in membership. Less than seven Marcene N. Taylor, CPE percent of our members voted in the recent Board election. Fewer than half of the Chapters have registered a representative for this year’s Summit in Kansas ASPE National President City. So, my question for you as a member is “does this Society need to exist; 2016-2019 and if so, what does the Society need to provide to make it relevant and attractive for you as a member?” My belief is that the Society needs to exist for the good of the construction industry. No other organization is concerned with the development of estimators at exactly the time when the industry is relying more on estimators to be an integral part of the preconstruction process. However, if the Society does not have revenue from dues, Certification, educational programs, Summit, and sponsorships, ASPE will be unable to develop and produce the educational programs that are needed. Like all organizations, ASPE can only provide programs if resources are available. We are ready to launch an online learning system and a mentoring program, but current resources do not allow for implementation. I encourage you to think about why you are a member of ASPE. What do you value in your membership? What would cause you to encourage your coworkers, employers, employees, and colleagues to join ASPE and be involved? Help us shape the industry and live up to the Society’s purpose of being the construction industry’s leader and recognized authority in professional estimating Connect at: through excellence in education, certification, and standardization. [email protected] Marcene Taylor Inc. Chapter 90 – NW MAL Marcene N. Taylor, CPE Estimating Today • 2019 May/June 3 Simply Preconstruction Estimating, or Is It? The perspective of many is that Preconstruction is simply estimating, the quantity take-off of a drawing and reaching out to subcontractors for bids to finalize the estimate. Today, preconstruc- tion estimating, services, planning, etc. is much more than just quantity take-offs. The range of possible tasks runs the gamut of typical estimating to the unthinkable type of tasks requested by any agency associated with the owner or design team. Gransberg and Shane (2010) concluded that preconstruction tasks consists of four main types of services – design, cost, schedule, and administrative. Table 1 below lists the main types of services. The list is only the common tasks required and not inclusive of the full gamut where expectations of a preconstruction estimator extends to “filling in the blanks, defining the scopes of work, assessing alternative materials, systems or methods, and managing the intent of the design team and desires of the owner” (Kuhn 2007). How do we keep up? Table 1: Preconstruction Services (adapted from Gransberg and Shane 2010) Rachel Hotter Design Related: Chapter 5 - Denver Schedule Related: * Validate Agency / Consultant Design [email protected] * Validate Agency / Consultant Schedules * Assist / Input to Agency / Consultant Design * Prepare Project Schedules * Design Reviews * Develop Sequence of Design Work * Design Charrettes * Construction Phasing * Constructability Reviews Three basic project * Schedule Risk Analysis / Control * Operability Reviews delivery methods used * Regulatory Reviews are the Design Bid * Market Surveys for Design Decisions Administrative Related: Build (DBB), Design * Verify Take-Off Quantities * Coordinate Contract Documents * Assistance Shaping Scope of Work Build (DB), and the * Coordinate with 3rd Party Stakeholders * Feasibility Studies * Public Information / Public Relations Construction Manager * Encourage Innovation * Attend Public Meetings / General Contractor * Bid-Ability Reviews (CMGC or GCCM). Cost Related: * Subcontractor Bid Packaging * Validate Agency / Consultant Estimates * Prequalifying Subcontractors * Prepare Project Estimates * Assist in Right-Of Way Acquisition * Cost Engineering Review * Assist in Permitting Actions * Early Award of Critical Bid Packages * Study Labor Availability / Conditions * Life Cycle Cost Analysis * Prepare Sustainability Certification Application * Value Analysis / Engineering * Follow Environmental Commitments * Material Cost Forecasting * Follow Terms of Federal Grant * Cost Risk Analysis * Coordinate Site Visits for Subcontractors * Cash Flow Projections / Cost Control * Teamwork / Partnering Meetings / Sessions * Shape the Project Scope to Meet the Budget At each design milestone, communication between As construction has evolved to rapidly escalating cost of construction, lack of resources, saturated market, subcontractor manpower, preconstruction planning is a vital part of the construction pro- the design team and cess and has been claimed to be a determinant for project success (Laufer et al. 1993; Douglas 2004). preconstruction leads to During the preconstruction process, the production phase is planned to achieve a smooth transition design input where each from inception to completion. Project success can be achieved by calculating risks that may occur in phase of drawings is the project and how to approach risks during the project lifetime (Mintzberg 1981). Preconstruction planning is also where the budget and the schedule is developed (Hendrickson 1998). By planning provided with more detail. in the early phases of construction, contractors can account for uncertainties and situations, where one is able to be proactive rather than reactive to hurdles in the construction phase (Award et al. 2010). Four variables, that should be taken into consideration when planning a project is time, cost, quality and scope. The role of the preconstruction estimator is to evaluate those four variables with the help of their designated project teams. Once drawings are established, there are different phases of design in which the preconstruction process begins. However, there are different project delivery methods 4 American Society of Professional Estimators • ASPEnational.org Simply Preconstruction Estimating, or Is It? ... Continued General Contractors are bound to that determine the approach of preconstruction services. Three basic project delivery methods used are the Design Bid Build (DBB), Design Build (DB), and the Construction Manager / General Contractor (CMGC or GCCM). Understanding the different delivery methods determines the approach for preconstruction planning and services. The DBB delivery method is established by the owner completing a project design with an in-house designer or consultant. The owner is responsible for any errors and omissions in the design due to the “Spearin Doctrine” (Mitchell 2008). An Invitation to Bid (ITB) is issued after the completion of the design, and award of the project is presented on a low-bid basis. Two separate contracts for the designer and gen- eral contractor are maintained by the owner, where the designer and builder have no contractual