City Looks to Reform Capital Project Construction Process
DDC’s capital commitments have more than doubled in the last 10 years as its responsibilities have grown, to more than $2 billion in Fiscal Year 2018, according to city officials.
NEW YORK CITY—City officials announced on Thursday plans to overhaul its capital construction approval process at its chef construction management agency—the Department of Design and Construction.
The reforms were based on a plan created in conjunction with the Office of Deputy Mayor for Operations and input from elected officials, construction industry groups, sponsor agencies, local utilities and entities charged with oversight of DDC and the city capital budget, including the Office of Management and Budget, the Mayor’s Office of Contract Services and the Office of the Comptroller.
Two of the city’s top construction and building industry organizations came out in support of the reform measures for the DDC, which includes two distinct construction divisions—the Infrastructure Division and the Public Buildings Division. The Infrastructure Division works mostly with the New York City Department of Transportation and New York City Department of Environmental Protection to upgrade and expand streets and water and sewer systems. The Infrastructure Division also builds public plazas and oversees the city’s large coastal protection programs such as East Side Coastal Resiliency.
The Public Buildings Division works with agencies and non-profits funded by the city to renovate and create structures such as firehouses, police precincts, marine transfer stations, community health centers, courthouses, libraries, homeless shelters, museums and theaters.
The Department of Design and Construction employs more than1,300 workers and since it was created in 1996 has completed more than 4,000 capital projects valued at more than $20 billion. DDC’s capital commitments have more than doubled in the last 10 years as its responsibilities have grown, to more than $2 billion in Fiscal Year 2018, according to city officials.
“We are overhauling operations in order to deliver city capital projects more efficiently and within budget. “This plan will ensure critical infrastructure projects are finished faster and with less disruption to our neighborhoods,” said Mayor Bill de Blasio.
DDC Commissioner Lorraine Grillo noted, “The vast majority of DDC’s projects are completed on time and on budget, but delays are too common and we can address them. Our Strategic Blueprint gives us the tools to be better project planners and managers, to get more out of the outside services we pay for and better negotiate the city’s highly structured capital budget process and regulatory environment.”
Deputy Mayor Laura Anglin praised the work of the DDC team over the past 100 days to formulate the proposed reforms. “This bold interagency plan will streamline processes so that municipal projects can be built faster and better for all New Yorkers,” Anglin said.
Among some of the key recommendations from the new plan: include modernizing the procurement process by having DDC work with the Mayor’s Office of Contract Services to delegate more independent authority to DDC, propose rule changes to the Procurement Policy Board, and expand the efficient use of contractor pre-qualified lists. DDC will also create a new Business Development Unit to create more opportunities for M/WBE firms.
Another recommendation is to have the DDC to use innovative project delivery methods, such as CM-Build, CM-at-Risk and insurance reforms with the state legislature. The plan also calls for streamlining change order approvals and payments, getting projects approved and started faster, fostering methods to plan projects better and minimize mid-stream project scope changes and working with utilities more efficiently.
Other components of the plan call for the empowerment of DDC project managers with better training and more support to ensure professional development around the most innovative project delivery and management methods, to have the agency take a more proactive approach to community outreach and communication with project stakeholders and to have the DDC upgrade aging systems and create new tools to better manage projects including new mobile technology that gives staff access to project management information in the field.
“New York’s construction boom is still going strong, and with increases in public sector spending across the board, DDC’s strategic blueprint is welcome news to the building community,” said Carlo A. Scissura, president and CEO, New York Building Congress. “This plan will streamline the project delivery process, making it faster and more efficient, and provide real benefits across the five boroughs.”
“Commissioner Grillo’s proposals, if driven down through the project management ranks, will radically change the way things get built in New York City,” said General Contractors Association executive director Denise Richardson. “GCA members are always ready to build smarter, faster and less expensively. These initiatives will help us achieve those goals for the benefit of New York taxpayers.”