Defining Best Value for Construction Manager/General Contractor Projects: The CMGC Learning Curve

Abstract

Construction manager/general contractor (CMGC) project delivery is rapidly being implemented to deliver the full gamut of highway projects across the United States. One issue that must be resolved before a public transportation agency can advertise a CMGC contract is whether or not to include price in the selection scheme, and if so, how much weight the price component will carry versus all other evaluation criteria. This paper discusses the results of research into this topic based on an analysis of the experience of 26 public transportation agencies on 36 CMGC projects in 14 U.S. states. The paper finds that there is a learning curve that can be mapped as the change in price factor weight over time as an agency gains experience with CMGC, and details that finding via a case study of the Utah Department of Transportation’s CMGC program. The paper concludes that non–price factors, such as the CMGC contractor’s approach to the preconstruction phase, are more important than price factors and should carry a greater weight in the evaluation plan. It also finds that weight accorded to price factors decreases as an agency gains CMGC experience. Finally, it recommends that agencies that are trying CMGC for the first time focus their selection scheme on factors that will reflect on a given contractor’s ability to collaborate with the owner and designer during the preconstruction phases of the project rather than on obtaining the lowest price.