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Caltrans Bridge Construction Forum 2007

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					     Caltrans Bridge Construction Forum
                    2007



              Structure Economics

Rich Hebert, C.C. Myers, Inc.   Ken Bocchicchio, Caltrans
So. Cal. Chief Engineer         Area Construction Manager




                                                      Slide 1
         GENERAL THEME


• Does the timeliness of payments
  significantly affect the cost of doing
  business with Caltrans?




                                       Slide 2
      $TRUCTURE ECONOMIC$


•   Estimates
•   Cash Flow
•   Partial Payments
•   CCO’S


                            Slide 3
      $TRUCTURE ECONOMIC$


•   Problems/Challenges/Complaints
•   Changes you would like to see.
•   Processes that work well.
•   What can be automated?




                                     Slide 4
    $TRUCTURE ECONOMIC$
• Estimates
  Have you experienced?
  – Pay items missed?
  – Lump sum change orders missed?
  – Supplemental estimates too much time and
    effort?
  – Payment withheld for QC issues in excess of
    fair value?

                                            Slide 5
    $TRUCTURE ECONOMIC$
• Estimates
  Suggestions?
  – Establish automated monthly pay request
    similar to EWB?
  – More Final Pay Q’s vs. Field Measured Q’s?




                                            Slide 6
    $TRUCTURE ECONOMIC$
• Cash Flow
  Are these significant?
  – Job delay or suspension?
  – Length of PFE process?
  – DRB decisions with CT rejection results in no
    payment until completion of claim process.




                                              Slide 7
    $TRUCTURE ECONOMIC$
• Partial Payments
  How can MOH process be simplified?
  – Falsework and shoring partial payments or
    schedule of values desired?
  – What other materials should be included?
  – Details of monthly partial payments shown on
    estimate?
  – State is owner of materials on hand

                                             Slide 8
    $TRUCTURE ECONOMIC$
• CCO’S
  Have you struggled with?
  – Recognition of changed conditions or work
  – Negotiation methods- Lack of knowledge
    regarding rules of entitlement/engagement
    • Entitlement first, dollars second
  – Electronic EWB processing working?
  – Signing tentative work agreements.

                                            Slide 9
     $TRUCTURE ECONOMIC$
• Other current Caltrans business practices,
  which if changed, would…
  – lower the cost of doing Caltrans work?
  – Result in lower bid prices?
  – Result in less risk?




                                             Slide 10
              Discussion?


•   Estimates
•   Cash Flow
•   Partial Payments
•   CCO’S



                            Slide 11
SOLUTIONS



    ?




            Slide 12

				
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