Copyrighted Materials Copyright C 2012 American Society of Civil Engineers (ASCE) Retrieved from www.knovel.com ASCE Manuals and Reports on Engineering Practice No. 45 and How to Select Work Effectively with Consulting Engineers: Getting the Best Project 2012 Edition Prepared by the Task Committee for the Update of Manual 45 of the Committee on Business Practices of the Committee on Professional Practice of the American Society of Civil Engineers ASCE AMERICAN SOCIETY OF CIVIL ENGINEERS Library of Congress Cataloging-in-Publication Data How to select and work effectively with consulting engineers: getting the best project/ prepared by the Task Committee for the Update of Manual 45 of the Committee on Professional Practice’s Constituent Committee on Business Practices.-2012 ed. p. cm.-(ASCE manuals and reports on engineering practice ;n o. 45) Rev. ed. of: How to work effectively with consulting engineers. 2003. Includes bibliographical references and index. ISBN 978-0-7844-1195-7 (pbk.)-ISBN 9784-7844-7645-1 (e-bwk) 1. Consulting engineers-Selection and appointment-Handbooks, manuals, etc. 2. Civil engineers-Handbooks, manuals, etc. I. American Society of Civil Engineers. Constituent Committee on Business Practices. Task Committee for the Update of Manual 45. 11. How to work effectively with consulting engineers. TA216.H69 2012 658.4‘6-dc23 2011034722 Published by American Society of Civil Engineers 1801 Alexander Bell Drive Reston, Virginia 20191 www.asce.org/pubs Any statements expressed in these materials are those of the individual authors and do not necessarily represent the views of ASCE, which takes no responsibility for any statement made herein. No reference made in this publication to any specific method, product, process, or service constitutes or implies an endorsement, recommendation, or warranty thereof by ASCE. The materials are for general information only and do not represent a standard of ASCE, nor are they intended as a reference in purchase specifications, contracts, regulations, statutes, or any other legal document. ASCE makes no representation or warranty of any kind, whether express or implied, concerning the accuracy, completeness, suitability, or utility of any information, apparatus, product, or process discussed in this publication, and assumes no liability therefor. This information should not be used without first securing competent advice with respect to its suitability for any general or specific application. Anyone utilizing this information assumes all liability arising from such use, including but not limited to infringement of any patent or patents. ASCE and American Society of Civil Engineers-Registered in US. Patent and Trade- mark Office. Photocopies and permissions. Permission to photocopy or reproduce material from AXE publications can be obtained by sending an e-mail to [email protected] r by locating a title in ASCEs online database (http:/ /cedb.asce.org) and using the “Permission to Reuse” link. Bulk reprints. Information regarding reprints of 100 or more copies is available at http:/ / www.asce.org/reprints. Copyright 0 2012 by the American Society of Civil Engineers. All Rights Reserved. ISBN 9784-7844-1195-7 (paper) ISBN 978-0-7844-7645-1 (ebook) Manufactured in the United States of America. 18 17 16 15 14 13 12 11 1 2 3 4 5 CONTENTS ............................................................................................... FOREWORD ix 1 THE PRACTICE OF ENGINEERING ............................................ 1 2 CLASSIFICATION OF ENGINEERING SERVICES .................. 9 3 SELECTING THE ENGINEER ........................................................ 19 4 METHODS OF CHARGING FOR CONSULTING SERVICES ............................................................................................. 35 5 TOTAL PROJECT COST ................................................................... 47 6 CONTRACTS FOR ENGINEERING SERVICES ........................ 57 APPENDIX 1 EJCDC CONTRACT DOCUMENTS .......................... 67 APPENDIX 2 ENGINEER SELECTION PROCESS: TYPICAL FORMS .................................................................................................. 69 APPENDIX 3 FREQUENTLY ASKED QUESTIONS ........................ 75 ................................................................................................. GLOSSARY 81 .......................................................................................................... INDEX 91 vii CHAPTER 1 THE PRACTICE OF ENGINEERING Over the next decade, public entities and private enterprise in America will allocate billions of dollars to improve infrastructure at the local, state, and federal levels in an effort to maintain current levels of services and to improve services in underserved areas. ASCE’s Report Cardfor America‘s Infrastructure’ estimates that trillions of dollars will be needed over the coming years to bring the nation’s infrastructure to an acceptable level of service. ASCE’s Infrastructure Investment Policy (PS 299)’ warns of the potential adverse effect on our quality of life and U.S.c ompetitiveness in world markets if our infrastructure is allowed to continue to deteriorate. Delaying infrastructure improvements until systems fail will result in even greater costs. ASCE is dedicated to advancing the highest standards in civil engineering to achieve quality-built projects that best utilize public and private funding sources. Many of these projects will be developed by government agencies and private owners working closely with consultants. Civil engineering consulting firms serve as an adjunct to public agen- cies and private corporations when engineering expertise is needed or extra staffing is required. These firms can often provide project owners with expertise for a wide array of projects that the owners may not be able to complete with current staff. Civil engineering firms vary in size and services offered. Some larger firms are able to provide a wide range of services covering all of the ASCE. (2010). Report curd for America‘s infrastructure, <http://www.infrast- turereportcard.org/> (Sept. 21,2011). ’ASCE. (2011). “AXE policy statements.” <http://www.asce.org/policystate- merits> (Sept. 21,2011). 1 2 HOW TO SELECT & WORK EFFECTIVELY WITH CONSULTING ENGINEERS engineering disciplines. Smaller firms, independently or in partnership with other firms, can also meet a project’s requirements and needs. In this manual, the terms civil engineer, consultant, and consulting firm all imply either a single firm or a project team of multiple firms in partnership. This manual was developed to help all project owners-from seasoned professionals to those responsible for supervising their first civil engineer- ing project. Understanding project scope, interacting with consultants, and knowing how to select and work effectively with consulting firms are just some of the many abilities needed to bring a project to successful fruition. This manual is intended for use primarily with traditional design- bid-build (DBB) projects for new construction or modifications to existing facilities. QUALITY This manual serves as a guide to procuring high-quality engineering services for a quality project. Quality service entails meeting the owner’s expectations as well as project specifications. Quality does not just happen; it must be proactively incorporated into every aspect of the project. This requires dedication, effort, and adequate time for investigation, planning, and innovation. To achieve this, the consultant must be competent and responsible, with appropriate authority and responsibility, while being compensated fairly to complete the project. Clear, unambiguous commu- nication between the owner and the consultant is required to understand both the owner’s needs and the consultant’s options in delivering or meeting those needs. Quality is the result of a team effort and is measured largely by the degree of satisfaction of all parties involved. This manual is dedicated to advancing the understanding and quality of practice in civil engineering as well as promoting the profession’s standard of care (see also AXE Manuals and Reports on Engineering Practice No. 73, Qualify in the Constructed Project: A Guide for Owners, Designers, and Constructors3). PROFESSIONAL RESPONSIBILITY Engineers typically are given project responsibilities that include studying, conceiving, designing, and managing the project through the design phase. They may also be charged with managing and observing 3ASCE Manuals and Reports of Engineering Practice No. 73. (2000). Quality in the constructed project: A guide for owners, designers, and constructors, 2nd Ed. AXE, Reston, VA. THE PRACTICE OF ENGINEERING 3 construction. These responsibilities are governed by state laws, regula- tions, and codes, and engineers are licensed professionals. Engineers are also asked to help establish operating and maintenance (O&M)s tandards for engineered works. The need for other services may arise as the project evolves. The health, safety, well-being, efficiency, and comfort of facility users, as well as the project’s ultimate cost, all depend on how well the engineering team members fulfill their contractual responsibilities. Thus, the engineer has an obligation as a trustee of the public interest, as well as of the private interests of owners. Successfully fulfilling these respon- sibilities requires candor, mutual trust, effective communication, and understanding between the consultant and the owner. The engineer should look to the ASCE Code of Ethics4a nd associated canons for accept- able practices worldwide. Only in this way can a professional relationship be established and the project completed successfully. OWNER-CONSULTANTR ELATIONSHIPS Many engineering works are conceived, designed, and constructed by practicing engineers who are employed in public agencies or private industry. Other engineering projects come to fruition through the efforts of an independent consulting firm engaged for a specific project or program. Many government entities and private companies rely on con- sultants to accomplish projects that require special expertise or when there is more work than their own staff can handle. The success of any project is heavily dependent on mutual trust and effective communication between the owner and the consultant. The owner’s level of engineering knowledge varies from project to project. Some owners are deeply involved and provide input at various project stages, while others allow the consultant to reach specific project mile- stones before providing input. Either method is acceptable when both the owner and the consultant understand each other’s expectations and roles, as documented in their contractual agreement. In addition, owners may use delivery methods such as program man- agement, design-build/turnkey, and design-build-operate-and-maintain (DBOM) to implement projects. With a clear understanding of the project needs, the owner and consultant can determine which delivery method is right for a particular project. Traditionally, the owner-consultant rela- tionship stipulates that the consultant is the agent responsible for design- ing the project for the owner. Delivery methods such as DBOM make the 4ASCE. (2011). ”Code of ethics.” <http://www.asce.org/Leadership-and- Management/Ethics/Code-of-Ethics/>(S ept. 21,2011). 4 HOW TO SELECT & WORK EFFECTIVELY WITH CONSULTING ENGINEERS consultant a shared owner. Explaining relationships between consultants and public and private owners is an important objective of this manual. ENGINEERING SERVICES The guidelines in this manual were developed specifically for the engagement of engineering services when the consultant serves the owner directly as the prime professional for the project. Some sections also apply when a consultant serves the owner indirectly as a subconsultant through another engineer or architect who is serving as the prime professional. Although the consultant might be a prime professional or joint venture partner on design-build (DB) or DBOM contracts, more often the consul- tant is a subconsultant to a construction contractor who serves as the prime professional. Independent engineering consulting firms can provide a host of impor- tant services to public and private owners. These services are explored in depth in Chapter 2 ("Classification of Engineering Services"). Typical services include Consultations and advice; Feasibility studies; Field investigations and engineering data collection; Environmental assessments and impact statements; Engineering reports; Development of opinions of probable construction cost; Preliminary and final designs, drawings, specifications, and con- struction bidding documents; Assistance in evaluating construction bids and awarding contracts; Construction administration and observation; Arrangement for and/or conducting of tests of materials and equipment; Assistance in start-up, assessment of capacityl and operation of facilities; O&M manuals preparation; Appraisals and rate studies; Value engineering; Expert testimony; Provision of supplemental temporary staff; Risk management; and Representation of projects to reviewing agencies. Consulting engineers also may serve as construction managers, program managers, or O&M managers and may employ other consultants and contractors as part of their services. Consulting civil engineers may THE PRACTICE OF ENGINEERING 5 also serve municipalities of limited size, serve as resources to city engi- neers, or act as resources to staff on an as-needed basis. Many consulting firms specialize in specific areas of engineering, for ’ example, field and photogrammetric surveying or geotechnical, struc- tural, civil, environmental, mechanical, or electrical engineering. Others may offer diversified services in several engineering disciplines. Consul- tants draw on the combined talents of economists, planners, engineers and designers, estimators, architects, scientists, technical analysts, speci- fication writers, field representatives, surveyors, and others. The consultant provides services that result in the owner committing financial resources for land and buildings, material or equipment pur- chase, construction, and O&M of a proposed project. Consulting services must be performed in a competent and efficient manner. Consultants must be highly professional and ethical and create an atmosphere of mutual respect and trust. The owner, who may be unfamiliar with the technical and engineering aspects of the project, must often rely on the representations of the consultant as to the suitability of the constructed project for its intended function. Therefore, it is vital that the consultant and the owner agree on the project scope and budget from the outset, with defined milestones and periodic updates as the project progresses. If the budget is insufficient to realistically meet the owner’s expectations, it is the consultant’s responsibility to resolve this matter with the owner. Although the consultant cannot guarantee final construction costs, the consultant makes decisions that affect the final costs and, therefore, must work closely with the owner to ensure that costs are in line with the owner’s expectations. PROJECT IMPLEMENTATION APPROACHES Project implementation has become increasingly complex, involving financial, environmental, regulatory, technical, and managerial matters. As a result, owners have opted to pursue a number of approaches to implementation. One commody used approach is progrum management. Owners typically utilize program management consultants when they recognize that, as owners, they do not have the expertise to pull together all the elements required to complete a group of similar projects. Therefore, an owner may retain a program manager to perform the specialized tasks necessary to develop specific projects and oversee their design and construction.M oreover, the owner may retain a program manager to have the lead responsibility for developing, defining, and overseeing the program; preparing budget esti- mates and schedules; evaluating and selecting team members; and providing periodic status reports. In other cases, the program manager’s staff serves as 6 HOW TO SELECT & WORK EFFECTIVELY WITH CONSULTING ENGINEERS an extension and augmentation of the owner’s staff throughout the life of the program. In most cases, the owner continues as the contracting agent and hires all members of the program team and the contractors. The program manager acts as the facilitator and assumes whatever responsibilities and authority the owner wishes to delegate to achieve a successful project. Other approaches include design-build (DB) and design-build-operate- and-maintain (DBOM). Design-build is a turnkey approach in which the owner provides a concept for the desired project; then a team of engineers, architects, and builders combine to design and construct the entire project and turn it over to the owner upon completion (hence, ready to turn the key). Under DBOM, the design-builder takes on the additional responsi- bilities of O&M for a specified period of time. DBOM can be employed when an owner lacks readily available capital resources to initially fund the project and is therefore interested in having the DBOM team finance all or a portion of the project in exchange for payments over an extended period of time (i.e., the period of O&M). Selecting a Consulting Engineer Selecting a consultant is one of the most important decisions in the project development process. The owner’s ability to meet the project objectives-including the effective use of financial resources, soundness of design, sustainable solutions, and suitability of the proposed project for its intended function-depends on the experience, organization, skill, integrity, and judgment of the consultant. The consultant’s recommenda- tions affect life-cycle costs and, thereby, influence the project’s economic feasibility. Engaging the most qualified and reputable consulting firm available is in the owner’s best interest. It is usually best for the owner to select a consultant who can support the project from conception through design, construction, and project start-up. Continuous partnership and interac- tion between the consultant and the owner during the project builds a solid relationship and helps lead to a successful outcome. The fully engaged consultant has design insights that may prove useful in resolving issues that develop during construction or start-up phases. Qualifications, experience, reputation, and quality of service are criti- cally important in selecting a consultant. Selectionb ased primarily on cost of services, with only limited consideration of competence or expertise, can result in unsatisfactory project delivery to the owner and higher overall project costs. The consultant’s competence in specialty fields, per- formance on similar projects, interrelationship with project team members, proposed personnel, provision for independent reviews, and quality assurance influence not only the construction cost but also the O&M cost of the project over its life cycle. THE PRACTICE OF ENGINEERING 7 AXE recommends that the owner engage a consultant in two steps. (A detailed discussion of methods for selecting engineers is included in Chapter 3, “Selecting the Engineer.”) The first step is a selection based on qualifications vital to the project. Because selecting an engineer based on quality and expertise is somewhat subjective, screening should be per- formed by individuals in the owner’s organization best suited to the task. The first stage is typically accomplished through a request for qualifica- tions (RFQ) that provides the owner with an overview of qualifications from several consultants. This is typically followed by a request for pro- posals (RFP) from a smaller number of consultants, which are then typi- cally evaluated by both written proposals and oral presentations. The RFP should be as detailed as possible so that consultant qualifications required for a specific project may be easily compared. The owner should be aware that consultants incur costs in providing statements of qualifications and detailed proposals for specific projects and that these costs raise their overall operating expense and ultimately the cost to the owner to hire them. Owners may choose to engage an engineer on a sole-sourceb asis, without qualifications-based selection. This can be a timely and cost-effective approach, but it must be executed with care to avoid potentially unlawful exclusion of competition, restrictions imposed by funding sources, appearances of conflicts of interest, or select- ing a consultant that is not truly the most qualified. Once a consultant is selected, the next step is to define the scope and expectations of the engineering services to be provided. Often the process begins with the owner documenting and clarifymg the project goals. The consultant then responds with a detailed scope ofservices describing how those objectives will be met. This process must be completed before nego- tiating a fee for services. A clearly defined scope of services greatly reduces the potential for misunderstandingso r confusion that can later evolve into project delays and claims for additional compensation. A detailed scope of services protects the interests of both the owner and the consultant. AXE supports procedures such as those specified by the Brooks Act (P.L. 92-582) and the American Bar Association’s Model Procurement Code for State and Local Governments for the engagement of engineering services. In applying these procedures, the selection, procurement, and administration of engineering services should be the responsibility of the owner. Design Competition In a design competition, a consultant is selected based on an innovative approach to meeting the owner’s needs. All competing consultants should be awarded a stipend to participate in the competition and to provide compensation toward their costs. Design competitionsu sually are reserved