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MTA Capital Construction - Dispute Resolution Board Foundation

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<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong> <strong>Capital</strong> <strong>Construction</strong>use of<strong>Dispute</strong> Review <strong>Board</strong>sKen LewaineDirector, Procurement and AdministrationDRB Program Administrator<strong>MTA</strong> <strong>Capital</strong> <strong>Construction</strong>New York, NYDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong> <strong>Capital</strong> <strong>Construction</strong> Created by the <strong>MTA</strong> in July 2003Manage major capital expansion and lower Manhattantransit infrastructure projectsLargest transit expansion program in several generationsManage construction of <strong>MTA</strong>’s capital security programCurrently building projects totaling over $15 BDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>Our Projects … Expansion Projects2ND AVE.SUBWAYPHASE 1- East Side Access- Second Avenue Subway- #7 Subway Line ExtensionNo. 7 LineExtensionEAST SIDEACCESS Lower ManhattanRecovery Projects- Fulton Street Transit Center- South FerryTerminal Station (Completed)SouthFerryTerminalStationFultonStreetTransitCenterDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>East Side AccessDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>East Side AccessManhattan Active ContractsManhattan Tunnels& StructuresCM009/19Madison YardSite ClearanceCM008A44th St.Demolition &Construct FanPlant Structure &245 Park Ave.EntranceCM004MNR Traction PowerMODs & 13.2 kV LoopFM216GCTProtectionWorksCS790DRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>East Side Access<strong>Construction</strong> in ManhattanWye CavernsMetro-North RailroadPark Ave TunnelNYCT 60th Street Tunnel (N and R)New BoredLIRR TunnelsNew LIRR TunnelsNewMadisonConcourseCrossoverCavernNew LIRR TerminalCaverns Below GrandCentralTail TracksTo 38 th StreetDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>East Side AccessLIRR Concourse- 91,000 SF of public spaceDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>2 nd Ave. Subway Reduce congestion on the Lexington Ave. line Improve travel for both city and suburban commuters Provide better access to mass transit forresidents of the far east Sideof ManhattanPhase 2Phase 1Phase 4Phase 3DRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>2 nd Ave. SubwayPhase 1 Scope Connection to existing 63rd St and Broadway Lines Service between 96th St & Brooklyn via Broadway Line Tunnels from 92nd St to 62nd St 3 new ADA accessible stations 63rd St. station rehab Track & systems Project cost: 4.451 BExistingLexington Ave /63 rd St Station Completion: December 201672 nd Street Station86 th Street StationExisting tunnel96 th Street StationDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>2 nd Ave. SubwayTypical Station PlatformDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>#7 Subway Line ExtensionDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>34 th StreetStationDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>#7 Line subway extension<strong>Construction</strong>:TunnelProgressDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>#7 Line subway extension<strong>Construction</strong>: 34 th Street Station CavernDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>Fulton Street Transit CenterDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>Fulton Street Transit CenterUnderpass toPATH Train andWTCNew Dey StreetPassagewayTransit CenterBuilding UnderReviewImprovements toMezzanineConnectorWorld TradeCenter StationNew south entrancesto StationRehabilitationof StationCorbin BuildingRestorationRehabilitationof StationDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>Fulton Street Transit CenterScope Improve transit interconnectivity and access to LowerManhattan- 4 / 5, A / C, 2 / 3, J / Z, E, R / W- World Trade Center Site- PATH Train- World Financial Center and Ferries New Transit Center Building at Fulton Street Project Cost: $1.4 B Completion: June 2014DRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>Fulton Street Transit CenterDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>Fulton Street Transit CenterTransit Center foundation - concrete slab constructionDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>Fulton Street Transit CenterTransit Center <strong>Foundation</strong> - First structural columnDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>South FerryTerminal StationCompleted !DRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>South Ferry Terminal Station Key intermodal connection for buses, ferries andsubways Replacement of existing station to accommodate fullten-car trains, multiple access points and ADAaccessibilityDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>South Ferry Terminal StationDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>South Ferry Terminal StationStation ArtworkDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>South Ferry Terminal StationStation PlatformDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>In some places, there are no constraints …DRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>But that’s not where we build !DRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>The ChallengesofWorking in New YorkDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>ChallengesExperienceCostGeotechnicalCompeting InfrastructureUtilitiesDense Urban AreaCommunity ImpactsAnd …DRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>ChallengesExperience Competing for Workers Worldwide Tunneling work in New York and around the world- <strong>MTA</strong> System Expansion- DEP Water Tunnel- NJ Transit ARC Project- DEP Siphon Project- London – Crossrail- Hong Kong – Major System Expansion- Istanbul – Metro & Water Projects Limited pool of contractorsDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>ChallengesExperience Availability of skilled labor and management Not an educated customer- Hire consultants / Project Mgrs for specialty work such as tunneling- Historically, very few tunneling projects for <strong>MTA</strong> in New York- Last <strong>MTA</strong> tunneling project was the 63rd Street tunnel in 1970s- Institutional knowledge is gone by the time the next major projectcomes aroundDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>ChallengesCostTunneling is more expensive in New YorkProjectSecond Avenue Subway (New York)Cost per Mile$ 253 M7 Line Extension (New York) $ 357 MDüsseldorf (Germany)Lausanne Metro (Switzerland)XX (Berlin)Turin Metro (Italy)$ 99 M$ 73 M$ 55 M$ 45 MDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>ChallengesGeotechnical Abrasive New York rock tests the limits of machines Reliability of TBMs getting better, BUT!- Long delivery times- Expensive- Time to assemble Tough call: drill & blast vs. TBM for short drivesDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>Competing Infrastructure Tunneling in Queens – East Side Access:▪ Amtrak and LIRR:▪ Others:- Railroad tracks, switches, catenary power- Buildings- Sensitive structures- Utilities- Utilities- BridgesDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>Challenges Tunneling in Queens – East Side Access:- Tunneling under the busiest rail yard in the country- Maintaining LIRR, NJT and Amtrak service for over 740trains through Harold InterlockingDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>ChallengesCompeting InfrastructureDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>DRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>ChallengesCoordinating Utility Work Utilities are a nightmare for any construction:- Water and sewer, gas and steam, electric power, telephone, fiber opticnetwork cables, park irrigation water lines Need a DEP permit for tunneling / FDNY permit for blasting Major electrical power requirements for TBMs- Con Ed system stretched to capacity- Expensive Need to schedule work around planned “GOs” Moral of the story is that you need to plan in advanceDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>ChallengesUtilitiesNever know what you’ll find!DRBF Conference, Charleston, SC October 3, 2010


PARKAVENUE<strong>Capital</strong> <strong>Construction</strong>ChallengesDense Urban Areas37 thStreetDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>ChallengesThere’s more than“A Chorus Line”On Broadway …DRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>Sometimes, there’s also a line of secant piles !DRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>Secant piles on 2 nd Avenue“Lean on Me … “DRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>Rebar Cage Lift – 2 nd Ave. SubwayDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>ChallengesCommunity Impacts Traffic / pedestrian impacts – MPT plans Impacts on merchants Removal of construction debris Impacts on adjacent property owners- Ventilation facilities- Entrances Noise and vibration during construction Real estate acquisition and commercial / residential relocations NIMBYDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>Community ImpactsDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>50 th St. Vent Facility – view from the Palace HotelExisting Site ConditionProposed 50 th Street FacilityDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>ChallengesAnd if that’s not enough …DRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>ChallengesArchaeological FindingsPre-1880’s WellDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>ChallengesArcheological FindingsBattery WallDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>So ….Could <strong>MTA</strong> benefit from the use of DRBs?DRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong>’s use of DRBsDoes Charlie Daniels play a mean fiddle?Is Ed “Too Tall” Jones too tall?DRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong>’s use of DRBs<strong>MTA</strong>CC’s use of DRBs Used on some of <strong>MTA</strong>CC’s major construction projects Requested by the construction industryNot previously used by the <strong>MTA</strong> Paradigm shift away from “Authority of the Project Manager” We’ve experienced some “growing pains”DRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong>’s use of DRBsWhere does <strong>MTA</strong> use DRBs? EAST SIDE ACCESS- CQ026 / Queens Open-Cut Excavation at Existing Bellmouth- CQ027 / Construct Arch Street Yard & Shop Facility- CM009 / Manhattan Tunnels Excavation and Tunnel Lining- CM019 / Manhattan Structures Part I- CQ031 / Queens Bored Tunnels and Structures- CQ039 / Northern Boulevard Crossing- CM013 / 50 th Street Vent Plant Facility SOUTH FERRY TERMINAL STATION- A-35976 / <strong>Construction</strong> of Structural BoxDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong>’s use of DRBsWhere does <strong>MTA</strong> use DRBs? FULTON STREET TRANSIT CENTER- A-36025 / <strong>Construction</strong> of Dey St. Concourse Structural Box 2 nd AVENUE SUBWAY- C-26002 / Launch Box and TBM Tunnels92 nd Street to 63 rd Street- C-26007 / 72 nd Street Station Complex #7 SUBWAY WEST EXTENSION- C-26503 / Running Tunnels and34 th St. Station Cavern / 10th Avenue Station ShellDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong>’s use of DRBsWhat’s the value of DRBs?DRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong>’s use of DRBsDifficult to quantify dollars savedValue applied by contractors in calculating bids / proposalsNegotiated valueValue of litigation avoidedWe can only quantify DRB expenses- Regularly scheduled activities- Cost of <strong>Dispute</strong> HearingsDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong>’s use of DRBsWhy does <strong>MTA</strong> use DRBs? The DRB is required by the contract !When given a chance, DRBs are effective DRBs can reduce high cost of claims / disputes /litigationDRBs can justify high value AWOs requiring<strong>MTA</strong> <strong>Board</strong> approvalDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong>’s use of DRBsHoware<strong>MTA</strong>CC’s DRBsSelected ?DRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong>’s use of DRBsVery carefully!Creation of <strong>MTA</strong>CC candidate listDRB Request for Qualifications solicitations- ESA RFQ, 2002- <strong>MTA</strong>CC RFQ, 2007Presentation of candidates to the Contractor- Resume Review- Meetings with ContractorIdentification of candidates from other sources Collaborative selection process - follow contractprovisions if we can’t agreeDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong>’s use of DRBsTypical <strong>MTA</strong>CC Contract Provision(it varies!)<strong>MTA</strong>CC suggests four candidates; contractor selects oneContractor suggests four candidates; <strong>MTA</strong>CC selects oneThe two members selected choose a third Chairman selection- Made by first two members- Made by all three members- Made jointly by <strong>MTA</strong>CC and contractorDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong>’s use of DRBsDRB Selection ProcessStart the Process Early!Discussion of potential candidatesResume reviewContractor / <strong>MTA</strong>CC interviewReference checksDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong>’s use of DRBsThe DRB process is governed by: Contract provisions (Article 8.03A or Chapter 12.02)Three-Party AgreementDRB ProceduresDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong>’s use of DRBsTheThree – Party AgreementDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong>’s use of DRBsOne Agreement for each DRB Member- General technical overview- Membership / composition- Contract <strong>Dispute</strong>s provision governs- Contractor and <strong>MTA</strong>CC Project Managers- The DRB Administrator- Meetings and Site Tours- Compensation and reimbursement (Member vs. Chair)- Billing and invoice review / approval- Reimbursement rates / Federal GSADRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong>’s use of DRBsLegal Status of the DRB Member- Independent Contractor- Continuing obligation to disclose potential conflicts- Termination- Limitations of liability- “Quasi-Judicial Immunity”DRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong>’s use of DRBsDRB Procedures Substantially set forth in the Contract DRB charged with establishing operating rules Rules cannot conflict with Contract provisions No rewriting of the Contract by the DRB ! Approved by the Contractor, <strong>MTA</strong>CC and the DRBDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong>’s use of DRBs<strong>MTA</strong>’s DRB ProcessDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong>’s use of DRBsRegularly scheduled DRB meetingsMutually Approved AgendaAttended by Contractor and <strong>MTA</strong>CC staff- Project Managers and administrators- DRB Administrator- Schedulers, Estimators, etc.- Claims and Changes ManagersProject update presentations- Contractor discussion- <strong>MTA</strong>CC discussion- DRB questionsDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong><strong>MTA</strong>’s use of DRBsProject Site Tour Conducted jointly by <strong>MTA</strong>CC and Contractor Helps enhance DRB familiarity with the players Provides the DRB project insightDRBF Conference, Charleston, SC October 3, 2010


<strong>Capital</strong> <strong>Construction</strong>Thank YouDRBF Conference, Charleston, SC October 3, 2010

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