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PLAy It Again, Sam

By Dustin Steiner, Vice President Government & Industry Relations

Another week, another Project Labor Agreement. This one is heading to the Port of San Diego and it’s the standard fare, applying to projects over a million bucks and locking out open shop apprentices like the Black Contractors Association and AGC.

The meeting will be held at 1PM on Tuesday and here is how you can have your voice heard:

MEMBERS OF THE PUBLIC MAY VIEW THIS MEETING VIA LIVESTREAM at: https://www.portofsandiego.org/about-port-san-diego/board-meetings

PROVIDING PUBLIC COMMENT

Public comment is limited to 2 minutes per speaker on both agenda, and non-agenda items. The time allotted for speakers may be adjusted by the Board Chair at his or her discretion.

PUBLIC COMMENT IS AVAILABLE FOR THIS MEETING BY DOING ONE OF THE FOLLOWING NO LATER THAN THE TIME THE PUBLIC COMMENT PORTION FOR THE AGENDA ITEM IS CONCLUDED, HOWEVER THE PUBLIC IS STRONGLY ENCOURAGED TO DO SO PRIOR TO THE ITEM BEING CALLED.

In-Person Participation:

Complete and submit a Speaker Slip and give to the District Clerk

Remote Participation:

1. Call 619-736-2155 and leave a brief voicemail message that will be played during the meeting. A voicemail longer than the time allotted for public comment on that item will be stopped after that time has elapsed.
2. Email a request to provide live comment to PublicRecords@portofsandiego.org to receive a link to participate in the meeting to provide live comments.
3. Submit written comments to PublicRecords@portofsandiego.org which will be forwarded to the Board and included in the agenda-related materials record for the meeting.

It is item #10.

To read the draft, click here to download PDF.  

Progressive Design Build Expanded to Local Water Projects

By Mike McManus, Director of Engineering Construction and Industry Relations

California legislators have gradually expanded local agencies’ authority to procure construction projects over the last couple of decades by using various alternatives to the design-bid-build delivery method, which requires that contracts are awarded to the lowest responsible bidder. Recently, California took another step forward in this regard.

Last Fall, Governor Newsom signed into law SB 991, which expands the use of progressive design-build (PDB) project delivery in the public sector for certain water projects. This process has proven to be well-regarded by the construction industry for its balanced risk allocation, while simultaneously providing municipalities more flexibility in addressing challenges in replacement of aging and failing underground pipes.

Existing law, until January 1, 2025, authorizes local agencies to use the traditional design-build procurement process for specified public works with prescribed cost thresholds. This new legislation, authorizes local agencies to use the PDB process until January 1, 2029, for up to 15 public works projects in excess of $5 million for each project. The model in the legislation is a PDB process similar to the one in use by the California Department of General Services.

This new law applies to any city, county, city and county, or special district authorized by law to provide for the production, storage, supply, treatment or distribution of any water from any source. The bill requires a local agency that uses the PDB process to submit, no later than January 1, 2028, to the appropriate policy and fiscal committees of the Legislature, a report on the use of the PDB process containing specified information, including a description of the projects awarded using the PDB process.

The PDB process has become well known in recent years as a form of collaborative project development that can help the project stakeholders minimize some of the customary risks inherent in traditional design-build. This procurement method helps avoid unforeseen conditions and design changes by early collaboration between the contractor and the owner.

The PDB procurement model generally includes two phases. In the first phase, the awarding authority uses a “best value” process primarily focused on qualifications and experience to select a design-build entity. After selection of a design-build entity, the agency enters a contract for design and preconstruction services sufficient to establish a guaranteed maximum price. Notably, the overall project cost and schedule are not established at the time of the selection. This mitigates the issue of a design-build entity bidding on a project with incomplete plans and specifications.

In phase one, the design-build entity completes preliminary plans and preconstruction services necessary to provide a cost estimate and final design proposal. During this phase, the design-build entity collaborates with the awarding authority and with its own consultants to develop the project’s overall design and clearly define the programming and priorities. This process tends to be a collaborative work environment as opposed to the adversarial approach inherent in many traditional forms of contracting.

The project then progresses to the second phase where the awarding authority and design-build entity agree to a final design, cost, and schedule, with an open-book approach. At an agreed upon time, typically when the design is between 50 and 75 percent complete, the design-builder will present the awarding authority with a proposal to deliver the project in phase two, which is for the final design, construction, and commissioning.

The design-build entity would present a specific schedule along with a guaranteed maximum price (not to exceed). If the parties cannot agree on a fair value cost, then there is a contractual “off ramp” that the awarding authority can exercise in its discretion if it elects not to proceed. Even if the “off ramp” is used, the awarding authority still benefits from having the first phase work complete since it may then solicit competitive proposals to complete the project from other entities. This differs from traditional design-build project where the awarding authority contracts with a single entity to design and construct a project at a set price before design work begins in earnest and without a similar “off ramp.”

Thus far, the PDB delivery method has been well-received by contractors because it appropriately and reasonably allocates the risk for each party involved in a project. Poor risk allocation has been a frequent criticism of the traditional design-build approach. PDB also gives the agency/owner a high level of input and control while allowing the design-builder to seek out innovative approaches to handling complex construction problems. 

California is getting low grades for the state of its water infrastructure, SB 991 could provide an opportunity to assist local agencies in addressing the state’s critical water infrastructure needs.

AGC Supported SDSU Teams Compete at ASC Region 6 & 7 Competition

By Kellie Korhonen, Digital Communications and Technology Manager

This past weekend, 217 teams from 57 schools descended in Reno, Nevada, for one of the largest student construction competitions in the nation and in the crowd were 29 students from San Diego State University (SDSU).

Let me set the scene, a buzz of excitement is in the air as a crowd of over 1600 college students wait to enter the kick-off student dinner of the ASC Region 6 & 7 Competition. While excitement might have turned to stress during the competition the camaraderie between teams and schools was one of support throughout. This two-day competition puts student teams of six through a real-world construction problem based on each competition category. San Diego State University (SDSU) sent teams in Commercial, Preconstruction, Visual Design and Construction (VDC), and Electrical.

The SDSU students prepared for months with the help of AGC San Diego Construction Leadership Council (CLC), team sponsors, SDSU faculty advisors, and industry coaches. Thank you to our team sponsors!

• Electrical - Bergelectric Corporation
• Commercial - Clark Construction
• Preconstruction - Swinerton
• Visual Design and Construction (VDC) – Balfour Beatty

For some teams, the competition started the week prior, when they had to complete pre-competition tasks, but the real work started in Reno early Thursday morning. The students got to work in their “work rooms” each student focused to complete needed tasks for their team and competition problem. The teams are challenged throughout the day with updates to the problem including “change orders” or notification of supply chain issues all to see how the students adapt to real world scenarios.

What comes next, the deadline to turn in their proposals - and I witnessed the mad dash of students running the halls to make it in time to turn in their proposals and the relief that “part one” is done. Day two is the presentation to the problem sponsor, so the work for some teams is not done as they must practice and perfect their presentations.

Time to watch the SDSU teams - first up was the Commercial team at 7am to start the 18 presentations in that Region 7 competition. Next up were the three teams in the open-competition categories of VDC, Preconstruction, and Electrical. Most of the SDSU teams were new to the competition this year, with only one returning member, but all teams did well during the presentations and learned a lot during the competition.

A big shot out to SDSU faculty advisors Thais Alves and Nensi Lakrori for attending and supporting the student teams. The SDSU AGC Student Chapter, along with AGC’s support, organized the teams and coordinated the preparations for the competition. This year’s student chapter Reno lead, Jordan Farrell had a big hand in collaborating with all teams and coordinating with AGC for a successful student experience.

Finally, you should also give yourself a pat on the back - if you are reading this, you may have been a team coach or were a "Mock Problem" spectator this year to challenge and provide feedback to the teams to help get them ready for the competition. Thank you for your involvement and helping prepare the students compete in this competition and to graduate excellent future leaders of the industry.

Trucks Needed For Touch-A-Truck Lakeside on February 26

Calling all truck owners, businesses, & classic car owners! Bring your vehicle to Touch-A-Truck Lakeside Edition on Sunday, February 26 and share the love you have for your industry with the community. Kids will be thrilled to learn, feel, touch & experience a wide variety of trucks, equipment & cars to expose them to this fulfilling career.

Entry to bring your vehicle is FREE! CLICK HERE TO REGISTER

AGC Affiliate Mixer -

Thursday, March 30, 2023

By Pam Scholefield, AGC Affiliate Council Chairwoman

The AGC Affiliate Council is pleased to welcome members to the first mixer of the year. Join us on March 30, from 4:30 p.m. to 6:30 p.m., at Tom Ham’s Lighthouse on Harbor Island for the Affiliate Mixer!

Enjoy the view of the San Diego skyline at this free afternoon networking event. We encourage our member firms to stay connected, and invite their PM’s, PE’s, estimating and scheduling staff, and anyone else in their firm that would benefit from socializing with others in the industry. AGC San Diego networking events are a great way for you and your employees to meet the general contractors, superintendents and project managers working on San Diego’s biggest construction projects.

This is a member-only event and pre-registration is required! CLICK HERE TO REGISTER ONLINE!

SPONSORSHIP OPPORTUNITIES

All member companies are welcome to sponsor an exhibitor table at the event to reach out to the membership and grow their business. Yes, that means General Contractors, Subcontractors, and Affiliates can set up a table to promote and market your services to the membership.

Join our Sponsors below in supporting this event to ensure all AGC members are invited to attend at no charge.

Platinum:

Gold Sponsors:        

Kelar Pacific

Silver Sponsors:     

Coastal Sign Plus                     

Teague Insurance (New AGC Member)

The Affiliate Mixer will have an EXPO type atmosphere with sponsors receiving a table to market your company and give out promotional materials.

• Exhibitors can display product samples, promotional materials, etc.
• Sponsoring company names will be prominently displayed on a sign in the room.
• Platinum level sponsors will be given choice placement by the entrance and bar areas.
• A running slide show will display AGC event photos and sponsor logos and ads depending on their level of sponsorship:
• Silver sponsor’s logos will be displayed on the screen with other Silver Sponsors (6 companies per screen)
• Gold sponsors will share "screen time” with another Gold Sponsor (2 companies per screen)
• Platinum sponsors receive “full screen” ads

Click here for the Sponsor Form!

Contact Rae Krushensky at raek@agcsd.org with any questions.

“Call for Entries” for the 2023 AGC Build San Diego Awards

By Rae Krushensky, Director of Meetings & Events and Member Services

It’s time to start working on your entries for the prestigious AGC Build San Diego Awards Program. The awards recognize San Diego’s most impressive construction projects, ranging across the building, highway & transportation, underground & utility infrastructure, and heavy division categories.

The event is scheduled for November 14, 2023.

We are very honored to have Hawthorne Cat  and Torrey Pines Bank, back as our Title Sponsors this year!

Hawthorne Cat and Torrey Pines Bank have been supporting this vital construction industry event for many years. They make a great team and AGC San Diego partner. 

Entries in the Build San Diego Awards program are open to all General Contractor, Contractor, and Specialty Contractor members who worked as the “prime” on the job they are submitting for, and who are in good standing with The Associated General Contractors of America, San Diego Chapter, Inc. 

By entering the awards program, you are providing your project team with a fantastic opportunity to showcase their achievements to our panel of exceptional and influential judges, and to the industry.

Recipients of a coveted Build San Diego Award in the following categories will have demonstrated the very best when it comes to building a better San Diego:

• Building Construction - Public Work
• Building Construction - Private Work
• Heavy / Highway
• Underground / Utilities
• Unique Small Project - Public Work, not to exceed $6 million
• Unique Small Project - Private Work, not to exceed $6 million
• Unique Special Project
• Sustainable Project

To be eligible, projects must have been completed between September 1, 2021 and August 31, 2023.

ENTRY DEADLINE: Any time before August 31, 2023 @ 12:00 NOON

AWARDS ENTRY FORM LINK

AWARDS INFO PDF

AGC BUILD SAN DIEGO WEBSITE PAGE

Questions? Please contact Rae Krushensky, (619) 592-4525.

March 13-16, 2023 - AGC ANNUAL CONVENTION - Las Vegas @ Wynn

March 30, 2023 - Affiliate Mixer - Tom Ham's Lighthouse

FEBRUARY MEETINGS

Feb. 15 - 4:00 PM - Construction Leadership Council (CLC) @ Hazard Construction

Feb. 16 - 12:00 PM - Meetings & Events - Lakeside

Feb. 21 - 12:00 PM - Affiliate Council - Lakeside

Feb. 23 - 11:00 AM - Union Signatory Contractors Committee - Lakeside

About Monday Morning Quarterback

AGC San Diego Chapter's Monday Morning Quarterback is a "hot off the press" and to the point Monday morning briefing on the important issues facing San Diego's construction industry. It is prepared by AGC Chief Executive Officer, Eddie Sprecco, and Vice President Government & Industry Relations, Dustin Steiner.

Please contact Eddie Sprecco or Dustin Steiner with your comments, or with information that should be conveyed to the industry through this service. Well over 3,000 individuals employed by AGC member firms are part of this system.

AGC San Diego Chapter, Inc.

The VOICE of Construction

(858) 558-7444

agcsd.org

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