CMAR Delivery Targets Effective Management of Risks in Achieving Water Supply Objectives - RETC2021

Loudoun Water is currently implementing a quarry to reservoir conversion that will improve water supply reliability in periods of drought and flexibility in water supply operations when turbidity in its Potomac River supplies are high. The Milestone Reservoir Project consists of an inter-tie to the existing Potomac River Pipeline; new pipeline and tunnel; and a pumped intake and outlet works. Planned construction involves significant risks due to underground conditions which includes hard, igneous rock and high groundwater at the creek crossing. In addition, the site is constrained by Goose Creek, an adjacent residence, active mining in a quarry next to the new reservoir, public use of adjacent park space, and the Washington and Old Dominion Trail. Working with these constraints will require close coordination with active mining operations and public and private property owners. Safety of personnel involved with construction also represents a concern with quarry high walls over 30 meters in height near the planned construction. In consideration of key projects risks, Loudoun Water determined that an innovative CMAR delivery approach provided the best opportunity to achieve its goals in quality, innovation, front-end cost and schedule certainty, and operational flexibility and reliability. What matters most to Loudoun Water is the value in having a builder participate in the design process where key decisions can be made based on consideration of risks, cost, schedule, quality, and operability and maintainability of the system. While a progressive design-build delivery model may have produced similar outcomes, Loudoun Water had already invested in substantial development of the design for the work, and ultimately, CMAR provided Loudoun Water the opportunity to retain the partnership with the design team while gaining valuable input from a contractor. Among the challenges with CMAR in the Commonwealth of Virginia is a substantial limitation on self-performance corresponding to 10 percent of the construction value of the work. A significant industry outreach program was initiated by Loudoun Water to encourage participation with incentives in contract terms that allowed for the CMAR Contractor to make a reasonable profit. This paper reviews the CMAR procurement process and discusses contract incentives that were adopted to promote the work within the constraints of contract law in Virginia.