Project ReAlignment Successes

Project: State Mental Hospital - Legal Offenders Unit

Project Size: $ 72 Million

Participants:

Owner - State
Designer - Architect
Contractor - Large General Contractor
1 Major Sub - Electrical


Total Claim Potential: $ 2 to 6 Million in Claims - (Mostly unprocessed Change Orders)

Delay to Project: Project Completed - Looking at 2 + years for litigation

Battle Costs: $ 1.5 Million

Scenario: Owner's Team:

• Building too be proud of - workmanship was excellent
  
• Contractor and Subs - willingness to put resources on project
  
• Weather the first year - challenging
  
• Lots of young talent - they stepped up to the plate - learned a lot
  
• Everyone worked together - to make the process work - agreed to disagree and take care of issues at the end of the project
  
• Commissioning went extremely well
  
• Don't want to ruin relationships - want to work together again!
  
  
Scenario: Contractor Team

• Systems worked well
  
• Attractive building
  
• Design and Contractor Teams stayed professional during difficult times
  
• People really tried to resolve issues
  
• Building will serve Public well for many years to come
  
• Proud of what we did
  
  
Scenario: Major Sub

• Worked well with General Contractor
  
• Subs were cooperative with each other
  
• Safety was number 1 - excellent record - even through earthquake
  
• Quality building
  
• Closeout went well
  
• Professionalism - had heated arguments but kept on a professional level
  
• Owner team worked with us to try and keep Change Order Process working - just got bogged down with all the changes
  
• Reputation is important - don't want to get it hurt with Owner/Contractor
  
  
Major Issues:

• Contractor Team asking for 95 days delay
  
• Seems to be a major difference is work performed and pricing of that work
  
• Existing/Unforeseen/Differing Site Conditions
  
• Limited knowledge of many electrical/mechanical systems
  
• Entitlement issues - contractual
  
  
Duration of process:

Started process on 4/18
Finished Change Order Negotiations - 6/20


ReAlignment Process Players:

ReAlignment Facilitator
TAS - Schedule Expert / Review of Logs (RFI, FA, PCO, CO, NCR, Impact Notice,etc.) Site reports -
IPA - Huge participation - entitlement of issues - difficult to resolve


Resolution Solution: $ 500 K

Issue Analysis: The contractors felt like there were a lot of site conditions that weren't called out in the contract. The other big issue was the owner felt that one of the major subs had highly inflated their prices.