Metropolitan Transit Authority Background You have been asked to provide project Delivery advice to the Metropolis Transit Authority’s (MTA) Assistant General Manager on a new initiative. You have been advised that you can recommend any delivery system, contracting methodology or procurement approach that makes sense. Assume the following information. Project Description MTA has, for the past 25 years, Provided surface parking adjacent to its stations. Because of increased demand, MTA is about to embark on a major construction program to build parking garages on some of these lots. It is anticipated that ten garages will be constructed over the first three years of the program. However, if the passenger traffic increases as MTA expects, there is a possibility that five additional garages will be added to the program after the first year. MTA would like to have the entire program, including additional garages completed within the three year period. Project Drivers You know that MTA is experiencing Political pressure to meet the growing demand, provide better quality of service and to avoid fare increases. Its primary project goal is to complete as many garages as quickly as possible, while keeping its total design and construction costs for the program within what everyone acknowledges is a tight budget. MTA is concerned about the potential liability that could come from operating garages. It also fears that any cost or schedule surprises which develop once the project starts will be difficult to deal with, given the political environment. Finally, MTA expects that it will be in the market for design and construction services for future projects. It wants to make sure that at the end of the three year period, the project will be a success and that the design and construction community will find working with MTRA to be a relatively enjoyable process. Owner Characteristics MTA has not handled any new construction projects for several years. However, it developed a bad reputation among construction contractors for disputes that occurred during the subway construction program completed over five years ago. It does not currently own or operate any parking garages, nor does it have anyone on its staff that has ever built, owned or operated one. MTA’s internal staff has substantial design and construction experience that was gained during the subway construction program. MTA used design-bid-build for all its previous projects, did not prequalify bidders and selected general contractors based on the low bid. MTA’s Assistant General Manager, who has first line responsibility for this program, is innovative and has shown interest in trying a new process. He was not employed by MTA during the subway construction. He reports to Board that is fairly conservative, politically motivated and inexperienced with the construction Process. Marketplace Considerations The commercial construction projects In this particular metropolitan area have used at-risk construction management as a primary delivery system. Public sector work has been performed through lump sum general contractors. There are no integrated designbuild organizations in town, although seveal architects and contractors have teamed on design build work. There are also several nationally renowned Agency-CMs and Program Managers in the area.
Assignment Provide a recommendation on the most appropriate project delivery approach for this garage program. Give your reasoning for choosing this approach using the facts from above. Discuss any issues and risks that are associated with choosing the particular type of delivery. Provide detail on how you would mitigate those issues and risks to ensure that the project is successful. To obtain full points your response must be a one page minimum double spaced.