N.Y.C. DDC to Pre-Select CMs for Small Projects

The department seeks construction managers for all building jobs under $25 million. Also, work on a New Jersey auto racing facility could start this year.

New CM Selection Process for DDC

The New York City Department of Design and Construction announced earlier this year that it will use pre-selected construction management firms for all non-infrastructure projects valued at less than $25 million.

The agency issued a Request for Proposals seeking eight construction management firms to handle all projects under that dollar threshold in the agency's structures division. The vast majority of the division's projects would fall under the new framework.

DDC received 29 responses to the RFP and will select the eight winners this spring, says an agency spokesman. Those firms would negotiate two-year, renewable contracts.

DDC proposed a quality-based selection process with weight given to firm experience, key personnel, and organizational capability. DDC refined the schedule and fee agreements after a meeting this year with the Construction Management Association of America.

The new program allows DDC, which manages capital projects on behalf of other city agencies, to reduce the amount of time and resources spent on the selection and assignment process, says David Resnick, the agency's deputy commissioner of structures.

"The idea underlying all of this is that we are the agency responsible for matchmaking, which is our primary responsibility," he adds. "I think this process gives us the flexibility to do it successfully."

New York's Building Trades Employers' Association welcomes the change because it gives contractors more control over construction progress and avoids confusing layers of responsibility found in many publicly bid projects, says Lou Coletti, the group's president.

"It's a way to better manage from a project management standpoint and a financial standpoint," he adds.

But others say the new initiative expands an already questionable construction management program. Henry Goldberg, managing partner of Goldberg & Connolly of Rockville Centre, N.Y., a construction and government contracting law firm, says DDC is "relying more extensively on a program that has serious legal concerns," referring to the use of "CM-Build" contracts.

Goldberg says that program violates both the state's Wicks Law, which requires four separate prime contractors on most public projects, and Section 137 of the State Finance Law with regard to project bonding. He says the new DDC program may have similar aspects that circumvent true competitive bidding.

Projects exceeding $25 million will still go through the agency's stand-alone procurement process, as will projects in the agency's infrastructure division, which accounts for half of its work. The eight construction managers locked into the task-order arrangement will also have an opportunity to bid on the infrastructure projects.

N.J. Embraces Motorsports Park

New Jersey Gov. Jon Corzine recently signed legislation that should pave the way for a planned auto racing facility to be built later this year in the southern part of the state.

The Sports and Entertainment District Urban Revitalization Act is expected to launch the construction of the New Jersey Motorsports Park, which will be built on 707 acres in Millville. The $100 million project aims to emulate the famed Virginia International Raceway and will feature a 3.98-mi road circuit raceway as well as antique automotive clubs, specialty car galleries, a country club, hotels, and restaurants.

The park will be built in three phases with the completion of the first phase, the opening of Thunderbolt Raceway, set for spring 2008. The estimated completion of the entire project, which is expected to create about 1,520 jobs, is 2015, according to Corzine's office.

New Jersey Motorsports LLC will develop, own, and operate the park's resort facility. That entity will team with Harvey Siegel - owner of the Virginia International Raceway, the Virginia International Country Club and Resort, and the Virginia International Raceway Raceplex Industrial Park - and Lee Brahin of Brahin Properties to develop, manage, and finance the commercial properties of the project.

N.Y.C. Targets Certification Abuse

New York City Mayor Michael Bloomberg recently signed two bills that target abuse of the self-certification process for professional engineers and registered architects.

The first new law requires the city's Department of Buildings to conduct full examination of all plans and applications that are submitted by any engineer or architect whom the State Board of Regents has placed on probation, which effectively suspends their professional self-certification privileges for the duration of their probation term.

The other new law requires the buildings department to suspend or revoke the self-certification privileges of any professional engineer or registered architect who "knowingly or negligently" certifies false or noncompliant building applications or plans.

The second law will also require individuals on probation to attend courses about compliance with the city's building code and related laws. The law also punishes those who file noncompliant plans while on probation by allowing permanent cancellation of their self-certification privileges.

The buildings department will keep a database of all professional engineers and registered architects whose privileges have been revoked, suspended, or limited.

Site Supervision Rule Proposed

The New York City Department of Buildings has proposed a new rule that requires registration for all construction site superintendents.

The proposed "Construction Superintendent Rule," or Rule 48, will require supervisors to have appropriate knowledge of construction and risk prevention, according to the agency. The rule would allow superintendents to supervise as many as 25 construction sites at a time.

If Rule 48 goes into effect, superintendents will have to acquire three-year permits. Their responsibilities will include always being available to the buildings department, cooperating in any investigation, and answering any questions from the department or other city or law enforcement agencies.

The rule would also require superintendents to report injuries and maintain a safe construction site. Failure to meet the guidelines could result in fines, suspensions, or permit revocation.

Citigroup Expansion Spurs Project

The Empire State Development Corporation recently announced that a Citigroup plan to expand in Upstate New York will entail construction of a 150,000-sq-ft office building adjacent to the company's new facilities in Amherst, which is 8 mi north of Buffalo.

The company's expected expansion in the Crosspoint Business Park would accommodate plans to create about 700 new jobs in finance, capital markets, banking operations, risk, compliance, and global transaction services over the next three years.

Citigroup accepted a $1.75 million package from the development corporation's Jobs NOW program as an incentive, with $1.5 million going toward the construction effort. In addition, Citigroup will receive another $250,000 if it adds 150 jobs by 2012.