BATON ROUGE - Commissioner of Administration Paul Rainwater announced today that the state has selected the Skanska-MAPP team to serve as Construction Manager at Risk for the new University Medical Center in New Orleans.
The announcement is the culmination of a contract procurement process initiated by the state’s Office of Facility Planning and Control in December, and follows the opening of sealed cost proposals by the two finalist groups Tuesday afternoon, which showed a Skanska-MAPP cost proposal of $38.2 million, the lower of the two proposals by almost $17 million.
"This is another important step in our mission to build a state-of-the-art medical facility and bring world-class health care services and medical training to the New Orleans area," said Commissioner Rainwater.
A Construction Manager at Risk (CM@R) is tasked with delivering the construction project within a specified budget and timeframe. In the case of the University Medical Center, the CM@R will be responsible for the procurement of all trade contractors and subcontractors who will actually build the project. The CM@R will coordinate and schedule the activities of the subcontractors, monitor their performance against key metrics such as time, cost, and quality, and have overall responsibility for the safety of the project site.
One of Skanska-MAPP's initial responsibilities, working with the Office of Facility Planning and Control, will be to develop a subcontract procurement strategy to maximize opportunities for Louisiana-based contractors. They will also work with the Office of Facility Planning and Control, the Program Manager, and the Design Team to help troubleshoot any obstacles that may arise during construction.
Lastly, the CM@R is required to submit a Guaranteed Maximum Price (GMP) proposal, which becomes part of the contract. The CM@R thereby assumes the financial risk if the project overruns the cost stipulated in the GMP, and if the project cost comes in under the GMP, those savings revert back to the Office of Facility Planning and Control and the State of Louisiana.
The preliminary evaluation process consisted of criteria that included reviewing the business organization and financial condition of the proposing firms, qualifications and experience of key personnel, project approach and methodology, and past performance on similar projects. This was followed by interviews to evaluate team compatibility, creative thinking, responsiveness to questions, and ability to elaborate and further articulate specific plans within the proposal, and resulted in a review of the cost proposals submitted by the two finalist teams.
The Skanska-MAPP joint venture is comprised of Skanska USA Building Inc. and MAPP Construction, LLC. Skanska is a 120-year-old international construction company, whose largest market segment consists of health care projects. MAPP Construction, LLC, is a Louisiana-based General Contractor with 19 years of preconstruction and construction management at risk experience with clients throughout the Gulf States.