Design-Build or Construction Management process for Petroleum Tanks

[caluna]

Just wondering what experience anyone had with design-build or construction management petroleum tank farm construction jobs. We used to put our jobs out as regular design (by consultant) bid, build. Now it seems as some jobs may go out design build in an effort to speed things up. (Our experience with buildings on design-build has not proved this, no do we save any money or get better quality, so I am questioning why the mandate has come done to do this). For our petroleum tank projects, would fixed-fee construction management be better? One problem with tank farm design build is we would need a third party site inspector (which, in essence would be what construction manager would do).
I should say we are a govt dept in isolated area but we do have standard specs and details for petroluem tank farms.

Thanks.

 

[khardy]

My experience is that design build with a reputable tank construction company can be a more economical and faster option. When you have the engineering done by a consultant they have to charge full price so to speak. An erection company, with a contract to supply material and construction services, can spread the cost of design over the entire project. For them, engineering could be a “loss leader.” Also, I find many consultants don’t design with a view to “constructability.” For example, I had design (by a consultant) specify that a fire water line be run underground using fusion welded PE pipe. Fine, except that the length was only 150’ long and the job was in Belize. We had to rent and import the fusion welding machine at considerable cost. A construction company familiar with the site and area would know to look for a better way to do that.

On the other hand, it can be difficult to get meaningful quotations for a project without a design first. Different bidders could submit wildly different proposals based on their own particular interpretation of what you want. If you aren’t clear on the scope of supply many (most?) bidders will cut every corner they can to get the job only to charge you for it later.

And a lot depends on the level of engineering you want. If you want reams of paperwork and documentation, the construction company is likely to sub the design out to a consulting engineer anyway; no real savings here. But if you only want a simplified design, the construction company may be able to do it in house at considerable savings.

Good luck,

K. Hardy P.E.
Tampa Tank

 

[IFRs]

I've been involved in both design-build and traditional tank farm projects. For the design-build, the owner bought the designs, bid and bought most of the materials themselves and contracted for the erection. In other cases, the contractors bid various designs and the owner simply pushed the big red button. Both resulted in good projects. Design build can give the owner more control and cost savings if they are properly staffed and are interested and motivated. Getting the designs up front ensure that the owner gets what they want and need and tends to make the low cost provider more visible since design differences are washed out.

 

[caluna]

Thank you for the comments. Looks like we will be doing design-build for at least one project. However we will probably need a site inspector full time, third party-which is one reason I was wondering about the construction management method..We-the client (govt) are very poorly staffed-apart from ops staff we have one director, one project officer full time, soon to retire, who is great, several project officers only one of which works full time on tank farms jobs, and a couple of technical types (one is me) seconded periodically from Buildings ..We don't have enough of our staff to oversee projects, and many sites are fly-in so you can't just pop in and out daily. Although we have standard details and specs (almost like plug and play), due to consultant's other business and labour shortages we have had hard time with design consultants meeting deadlines. Because schedules are very inportant here (winter road and barge to remote communities) sticking to schedules is a good thing. Also pool of consultants and contractors is pretty small, so to some degree we are at mercy of their schedules.

By and large thinsg go pretty well overall, considering, but we would like to do better, hence the thought to go to other methods rather than design bid build.

 

[IFRs]

I know of several design and management consultants in the USA - is there any mileage in putting you in contact with them?

 

[caluna]

Thanks! I doubt our projects are big enough..I wonder? Also we have a northern 15% northern credit for any company bidding on project, which tends to discourage those from South and would apply also to the USA. We're in Northern Canada..