PRESENTATION MATERIALS November 18, 2015

FOSTER PEPPER PLLC 1111 Third Avenue, Suite 3400

Seattle, Washington 98101-3299 www.foster.com

Using GC/CM Contracting for Construction Projects

Table of Contents

Presentation Speaker Bio

Greg Guedel, Foster Pepper PLLC

Presented by:

Presentation

Using GC/CM Contracting for

Public Works Construction

Presented by W. Gregory Guedel guedw@foster.com 206.447.8931

• Low Price Does Not Always Equal Best Value

• Complex Projects Require Specialized Expertise

• Early Contractor Involvement Helps Reduce Constructability Issues

• Risk-Sharing With Contractor Improves Your Project’s Financial And Liability Profiles

Why Use GC/CM for Construction Projects?

• The GC/CM approach utilizes early-stage contractor involvement, and the GC/CM manages all facets of the construction effort including preconstruction services.

• During pre-construction the contractor provides design review and project planning services, and converts to GC after the guaranteed maximum price is decided upon.

• Ability for fast track/phased construction and early subcontracting.

• The GC/CM could subcontract work the Owner feels is suitable for

local hire such as specialty subcontracts (painting, insulation, HVAC, refractory, grading/paving and site development).

The GC/CM Approach Offers Several Advantages

• RCW 39.10 contracting is authorized for municipal agencies.

• Agencies must demonstrate broad competence/prior experience with GC/CM or that they have a solid project management team with specific GC/CM experience.

• Must receive either agency or project approval from CPARB’s Project Review Committee.

• Projects are good candidates under RCW 39.10 if they are: “highly specialized”, “complex”, “technical”, “historic”, and/or involve structures that will remain occupied during construction.

Authorization to Use GC/CM for Public Works Construction

Authorization Bodies for GC/CM Projects

• Capital Projects Advisory Review Board

• Membership comprised of diverse positions in the construction industry

• Approval authority delegated to Project Review Committees

• PRCs typically include representatives of: general/specialty contractors, organized labor, public owners, construction managers, and MWBE.

Capital Projects Advisory Review Board's Project Review Committee

http://www.ga.wa.gov/cparb/PRC/PRCMemberList.pdf

The GC/CM Approval Process

One Appeal

Only

FINAL!

Hearing with Presentation, Questions, Deliberation

PRC’s Decision Issued at Hearing

If Denied – Appeal or Resubmit

Written Application

Keys for GC/CM Project Approval

• Experienced personnel are crucial

• Good project management plan

• Funding, schedule, contingencies

• Respond directly and comprehensively to PRC’s written questions

Sample PRC Question/Answers Precon efforts seem to be scheduled in duration ‘spurts’ of 2 months allocated to each of the schools (except for the third, Lincoln, which for some reason indicates 3 months). Is this ‘start-stop’ depiction realistic?

• District and GC/CM to collaborate on appropriate scheduling of Preconstruction services once GC/CM is selected. • Preconstruction duration for Cascade (2nd year) and Lincoln (3rd year) will both likely be adjusted to be from three to four months each. • Preconstruction duration for Sunset View (1st year) will be two months due to schedule constraints. • Increased efficiencies incorporated into Cascade and Lincoln construction projects.

• Following PRC project approval, Owner conducts RFQ process to

identify qualified GC/CM contractors. • RFQ criteria are based on qualitative company experience and

capability factors, not on price. For finalists, percent fee and total general conditions cost are considered.

• Owner scores the RFQ responses and selects the best firm, then negotiates the GC/CM contract terms and MACC/TCC.

• If negotiations fail, Owner can negotiate with next-best company.

GC/CM Selection and Contracting Process

• Contract Price: MACC and TCC are negotiated at 90% design level. • Risk Contingency Required – Minimum 5%.

• Identify self-performed work, subcontract work, early subcontract

packages.

• Determine if subcontractor prequalification criteria will be used.

• Early completion/savings incentives up to 5% of MACC.

GC/CM Contract Terms and Contracting Options

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Speaker Bio

SEATTLE T 206.447.8931

F 206.749.2117 guedw@foster.com

SERVICES Litigation & Dispute Resolution Construction Employment & Labor Infrastructure Municipal Government Native American (Chair) Real Estate School Districts

PRACTICE OVERVIEW Greg serves as Chair of Foster Pepper's Native American practice, and his practice emphasizes complex construction, government contracting and business law. His litigation work includes all aspects of pre-trial, trial and appellate case management in state, federal and Tribal courts. He provides his clients with analysis, preparation, negotiation and resolution of contract claims, and drafts and interprets multi-party contracts. He regularly assists clients with business and construction planning and management, serving government, private and Tribal entities. Greg also serves as Editor of Foster Pepper's Native American legal blog: www.nativelegalupdate.com.

RECOGNITION − King County Bar Association, Young Lawyer Division Outstanding Mentor Award for

2008 − Army ROTC Scholarship − Distinguished Military Scholar and Graduate − American Legion Award − Army Reserve Officers’ Association Award − Golden Key National Honor Society

ACTIVITIES − American Bar Association

+ National Chair for Native American Concerns, 2010-present + Member 1996-present

− New Mexico Community Capital, Board Member − American Legion, Earl Weinhart Post 96

+ Member 2008-present − King County Bar Association, Member, 1996-present − Washington State Bar Association, Member, 1994-present

W. Gregory Guedel MEMBER

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W. Gregory Guedel MEMBER

SEATTLE T 206.447.8931 F 206.749.2117 guedw@foster.com

− Washington State Bar Association Committee for Legal Services to the Armed Forces + Member 1997-2002 + Chairman 1998-1999

− JAGC, United States Army, Washington Army National Guard, Captain,1996-2002

QUOTED − “6 Tips For Managing Tribal Infrastructure Projects,” Law360, November 2015 − “Gambling and poverty: Of slots and sloth,” The Economist, January 2015 − “This Tribe Wants to Kick Rich People Out of the Hamptons,” Vice, August 2014 − “Ogala Sioux Hope Bitcoin Alternative, Mazacoin, Will Change Economic Woes,” Newsweek, August 14, 2014 − “Your Legal Rights if Member of Office Pool that Purchases Winning Lottery Ticket,” Q13 News, April 2012 − “Greg Guedel on Native American Energy Summit,” Today's Inland Empire, October 2010 − “LAW: Questions for Greg Guedel, Chairman, Native American Legal Services Group,” Puget Sound Business

Journal, August 27-September 2, 2010 − “Tribes Trump City in Quest for Economic Development,” InMaricopa.com - August 11, 2010 − “Many Eyes Watching Foxwoods' Negotiations With Creditors,” The Hartford Courant, November 29, 2009 − “Chair Lift Helps American Legion Members in Snohomish,” Everett HeraldNet, February 16, 2009

PUBLICATIONS − “Native American Legal Update,” Editor, Foster Pepper's Native American legal blog, 2008-Present − “Strategies and Methods for Tribal Economic Development: Building Sustainable Prosperity in Native American

Communities,” Author, Thomson Reuters Aspatore Publishing, July 2013 − “Briefly About Me: Greg Guedel,” Washington State Bar News, April 2012 − “Coastal Tribes Scoring Export Win with Geoducks,” Author, Foster Pepper News, July 2011 − “Construction Contracts Should Have Performance Provisions,” Author, Daily Journal of Commerce, September 11,

2003 − “Ruling Extends Life of Construction Lawsuits,” Daily Journal of Commerce, September 2002 − “Bidders, Put Away Your Stopwatches: Court Declines ‘10-Second Rule’ For Late Bid Submissions,” Daily Journal of

Commerce, August 2002 − “The Crystal Ball Theory of Changed Conditions: Recent Court Decisions May Have Big Impact on Earthwork

Contractors,” Author, Daily Journal of Commerce, October 2001 − “Building Inspector Approval - No Guarantee of Quality,” Daily Journal of Commerce, April 2001 − “Background Checks Needed On Public School Jobs,” Daily Journal of Commerce, December 15, 2000 − “Don’t Overlook Lien Notice Requirements,” Daily Journal of Commerce, September 15, 2000 − “Researching Contract Forms On The Internet,” The Construction Lawyer (ABA’s Journal of the Forum on the

Construction Industry), July 2000 − “Check Calendar When Filing Liens,” Daily Journal of Commerce, September 17, 1999 − “Getting Public Records For Construction Lawsuits,” Daily Journal of Commerce, April 23, 1999 − “Obtaining Information From The Government In Miller Act Lawsuits,” Daily Journal of Commerce, July 18, 1987

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W. Gregory Guedel MEMBER

SEATTLE T 206.447.8931 F 206.749.2117 guedw@foster.com

PRESENTATIONS − Foster Pepper Construction Webinar Series

+ “What Insurance Does My Construction Project Need?” Speaker, July 2015 + “How to Pick the Right Contractor for Your Construction Project,” Speaker, April 2015 + “How Long Can a Construction Claim Last?” Speaker, February 2015

− “Political Economy and Human Security in Native American Nations,” Speaker and Moderator, Sovereignty, Development and Human Security: A Colloquium on United States and Native American Relations, May 2015

− “Strategies for Managing Project Delays,” Program Co-Chair and Moderator, Construction Project Scheduling & Delay Claims, The Seminar Group, November 2014

− "Sovereignty, Economic Development, and Poverty Reduction in Indian Country: Legal Issues Related to Proven Strategies and Untapped Opportunities,” Speaker, ABA Annual Meeting - Section of Individual Rights and Responsibilities, August 2014

− Tribal Employment Rights & Law: Sovereignty, Jurisdiction and Best Practices, Program Co-Chair, July 2014 − “Construction Law,” 12th Annual CLE Bootcamp, December 2013 − "Strategic Planning for Tribal Economic and Community Development," Speaker, Tribal Sovereignty, Strategic

Planning and Economic Development, November 2013 − “School Construction Contracting: How to Get Best Value in an Uncertain Economy,” Co-Chair and Speaker, Foster

Pepper Client Briefing, November 2013 − “Contracting Strategies for Schedule Issues,” Co-Chair and Speaker, Construction: Project Scheduling & Delay

Claims, October 2013 − “Managing Schedule Delays and Claims on Complex Construction,” Co-Chair and Panelist, Construction: Project

Scheduling & Delay Claims, October 2013 − “Challenges and Opportunities for Tribal Economic Development,” Speaker and Moderator, Foster Pepper PLLC,

February 2013 − “Establishing Bidder Responsibility and Performance Capacity,” Moderator/Speaker, Public Works Contracting:

Success Strategies in Interesting Times, October 2012 − "Legal Tools For Construction Contracting" and "How to Avoid Expensive Surprises In Construction Projects,"

Speaker, The Washington Association of School Business Officials (WASBO) Workshops, May 2011 − “Construction: Contracting, Litigation; Procurement and CPARB,” Panelist, 2012 Association of Washington Housing

Authorities (AWHA) Meeting, April 2012 − “Using Sovereign Rights to Enhance Development Opportunities,” Speaker, 2012 Enhancing Sustainable

Development in Indian Country, March 2012 − “Construction Law,” Speaker, 10th Annual Washington CLE Bootcamp, December 2011 − “Bidder Responsibility in Public Works Contracting,” Speaker, AGC Education Foundation: Successful Contracting in

the Recession, November 2011 − “Federal Contracting Law,” Speaker, Tribal Governmental Business Law CLE Program for 2011-2012, September

2011 − “Serving the Legal Needs of Urban Native Americans,” Moderator, Native American Seminar, March 2011 − “Indian Law Career Panel,” Panelist, Indian Law Career Evening, University of Washington School of Law, March

2011 − “Native American Concerns,” Speaker, ABA Mid-Year Concerns, February 2011 − “Construction Law,” Speaker, 9th Annual Washington CLE Bootcamp, December 2010 − “Legal Tools for Effective Public Works Contracting,” Speaker, School District Public Works Seminar, November 2010 − “Cultural Awareness while Representing Native Americans,” Presenter, Nonprofit Law in Indian Country, March 2010

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W. Gregory Guedel MEMBER

SEATTLE T 206.447.8931 F 206.749.2117 guedw@foster.com

− “Labor and Employment Law Issues for Tribes,” Speaker, Indian Law Section of the Spokane County Bar Association, March 2010

− “Contracting for Alternative Delivery Projects,” Speaker, CMAA Annual Seminar: Alternative Project Delivery of Capital Projects, February 2010

− “Employment/Labor Law for Tribes and Tribal Businesses,” Speaker, NHRMA 71st Annual Conference & Tradeshow, September 30-October 2, 2009

− “Tribal Leaders Roundtable: The Impact of President Obama’s Administration,” Co-Chair/Moderator, Third Annual Native American Economic Development Conference, September 2009

− Northwest Native American Economic Development Conference, Co-Chair, June 2009 − “Utilizing Alternative Procurement Methods Such As GC/CM And Design-Build For Energy And Environmental

Infrastructure Projects,” Speaker, Community Energy Roadmap: Pacific Northwest Summit & Workshop, May 13-14, 2009

− “Advocating for Children in the Dependency System,” Speaker, Advocacy For The Native American Child – Honoring The Spirit And Intent Of The Indian Child Welfare Act, November 2008

− “Developing Infrastructure Under Washington's New Alternative Procurement Statutes,” Speaker, Managing Infrastructure: Planning, Development and Maintenance in Washington, November 2008

− “Public-Private Cooperative Development of Infrastructure,” Speaker, Approval and Funding of Infrastructure in Washington, May 2008

− “Tribal Court Jurisdiction,” Speaker, Key Tribal Issues Seminar, October 26, 2007 − “Utilities Coordination on Public Works Projects - Who's Your Daddy?” Speaker, Construction Law and Risk

Management for Municipalities — Latest Traps & Strategies, February 28, 2007 − “Pursuing Contractor Claims Against Owners,” Featured Speaker, 12th Annual Conference on Washington

Construction Law & Dispute Resolution, September 23, 2005 − “Construction Law Issues For Housing Authorities,” Featured Speaker, Association of Washington Housing

Authorities Conference, September 8, 2005 − “Construction Claims, Litigation, And Alternative Dispute Resolution,” Featured Speaker, Lorman Education Services

professional seminar, August 24, 2005 − “Claims Between Contractors and Owners,” Featured Speaker, 11th Annual Conference on Washington Construction

Law & Dispute Resolution, September 25, 2004 − “Contracting With and Managing Design Professionals,” Featured Speaker, Association of Washington Housing

Authorities Conference, September 9, 2004 − “Construction Contracting With Public Entities in Washington,” Featured Speaker, Lorman Education Services

professional seminar, August 20, 2004 − “Contracting With Local Government,” Featured Speaker, Law Seminars International professional seminar, August

12, 2004 − “Pursuing Contractors Claims Against Owners,” Featured Speaker, 10th Annual Conference on Washington

Construction Law & Dispute Resolution, September 19, 2003 − “Preparing for and Preventing Contractor Claims,” Featured Speaker, Association of Washington Housing Authorities

Conference, September 4, 2003 − “Contract Law for Construction Managers,” Featured Speaker, The Construction Management Association's Pacific

Northwest Chapter, February 19, 2003

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W. Gregory Guedel MEMBER

SEATTLE T 206.447.8931 F 206.749.2117 guedw@foster.com

EXPERIENCE − Foster Pepper PLLC

+ Member, 2003-Present + Associate, 2001-2003

− Snohomish City Council, Elected Councilmember, 2010-Present − Oles Morrison Rinker & Baker LLP (Seattle, WA), Attorney, 1996-2000 − United States Army, Office of the Staff Judge Advocate, 2D Armored Division/4th Division Infantry, Fort Hood, Texas,

+ Administrative Law Attorney, 1995-1996

BAR ADMISSIONS − Washington, 1994 − U.S. District Court, Western District of Washington, 1997 − U.S. Court of Federal Claims, 1998 − Tribal Court of the Cow Creek Band of Umpqua Tribe of Indians, 2008 − Tulalip Tribal Court Bar, 2008

EDUCATION

− The London School of Economics and Political Science, Diploma for Graduates (With Merit) – International Relations, 2006

− United States Army Judge Advocate General Corps Officer Course, 1998 − United States Army Corps of Engineers Office Course, Distinguished Graduate, 1995 − J.D., University of Washington, 1994 − B.S., University of Southern California, 1991

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