Caltrans reveals innovative strategy to tackle complex projects
August 14, 2024 | Transportation Commission, Agencies under Office of the Governor, Executive, California
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In a recent government meeting, officials provided an in-depth overview of the Construction Manager General Contractor (CMGC) delivery method, a project management approach authorized for use by Caltrans since 2012. The CMGC method allows for a collaborative relationship between the construction manager and the department during both the design and construction phases, aimed at optimizing project costs and schedules.
The presentation highlighted the legislative background that led to the CMGC's implementation, including several assembly bills that expanded its use for Caltrans projects. Since its inception, Caltrans has procured 35 CMGC projects, with 20 currently in the construction phase.
Key advantages of the CMGC process include early contractor involvement, which fosters a partnership that can reduce claims and litigation costs. Data from the International Partnering Institute indicates that every dollar spent on partnering can save an average of $114 in project costs. The CMGC method also emphasizes risk management, with contractors collaborating to identify and mitigate project risks, thereby shifting some of the risk away from the state.
However, the meeting also addressed challenges associated with the CMGC approach. These include higher support costs during the design phase and the need for experienced independent cost estimate (ICE) consultants. Misconceptions about the applicability of the CMGC method to all projects were also discussed, emphasizing that it is best suited for complex projects with significant constructability and permitting challenges.
As the CMGC process continues to evolve, officials expressed a commitment to ongoing training and collaboration with industry partners to refine the approach and improve outcomes for future projects. The meeting concluded with a call for further evaluation of the CMGC method's effectiveness as more projects are completed, aiming to confirm whether the anticipated reductions in risk and costs are realized.
The presentation highlighted the legislative background that led to the CMGC's implementation, including several assembly bills that expanded its use for Caltrans projects. Since its inception, Caltrans has procured 35 CMGC projects, with 20 currently in the construction phase.
Key advantages of the CMGC process include early contractor involvement, which fosters a partnership that can reduce claims and litigation costs. Data from the International Partnering Institute indicates that every dollar spent on partnering can save an average of $114 in project costs. The CMGC method also emphasizes risk management, with contractors collaborating to identify and mitigate project risks, thereby shifting some of the risk away from the state.
However, the meeting also addressed challenges associated with the CMGC approach. These include higher support costs during the design phase and the need for experienced independent cost estimate (ICE) consultants. Misconceptions about the applicability of the CMGC method to all projects were also discussed, emphasizing that it is best suited for complex projects with significant constructability and permitting challenges.
As the CMGC process continues to evolve, officials expressed a commitment to ongoing training and collaboration with industry partners to refine the approach and improve outcomes for future projects. The meeting concluded with a call for further evaluation of the CMGC method's effectiveness as more projects are completed, aiming to confirm whether the anticipated reductions in risk and costs are realized.
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