AGC met with the top two federal construction agencies, at their request, to give the contractors’ perspective on key issues facing the industry.
USACE HQ: Early Contractor Involvement
The U.S. Army Corps of Engineers (USACE) Headquarters recently invited AGC to participate in a discussion on project delivery, specifically focusing on early contractor involvement (ECI). USACE executed about a dozen projects via ECI delivery—similar to CM-at-Risk—in the 2000s. (For more USACE ECI background, click here). Looking for ways to improve cost estimates, USACE is again considering using ECI—whether a Federal Acquisition Regulation (FAR) equivalent of ECI or utilizing more constructability reviews concurrent with design.
AGC, along with several contractors, noted that the keys to effectively using ECI depends on the team—on the design, contractor and government-side—the partnership forged among those team members and clear delegation of risks. Representatives from the General Services Administration (GSA) and NAVFAC also participated in the meeting. GSA has used its version of ECI for nearly a decade and has reduced cost and schedule growth through its implementation. NAVFAC had an ECI pilot program several years ago involving two projects, but NAVFAC ultimately decided not to pursue further use of ECI after that pilot. The USACE Kansas City District has the most ECI experience in USACE and also participated via teleconference. AGC has a host of project delivery resources.
NAVFAC HQ: Cost & Schedule Growth
At the request of the Naval Facility Engineering Command (NAVFAC) Headquarters, AGC recently met with NAVFAC leaders in Washington, D.C., to discuss ways the agency could address cost and schedule growth on its projects. AGC presented a host of issues driving those problems, especially the need for timely NAVFAC project decisions, such as completing design reviews/modifications and change orders in a reasonable and time sensitive manner.
NAVFAC, like other federal owners, continues to face staffing challenges amid increasing retirements and flat budgets. A recent report notes that after a nearly two-year hiring freeze, NAVFAC is currently recruiting for about 3,000 positions, particularly in the engineering and procurement areas.
For more information, please contact Jimmy Christianson at 703-837-5325 orchristiansonj@agc.org. Return to Top