San Luis Obispo County Regional Airport Begins First-Ever Construction Manager At Risk Project

The San Luis Obispo County Regional Airport (SBP) has awarded its first contract for a Construction Manager at Risk (CMAR) project. Granite Construction Company (Granite) will serve as CMAR for the airport’s Runway 11-29 rehabilitation project.

CMAR is a collaborative construction delivery method where the construction manager is involved in developing the design with the designer. Rather than the traditional method of designing a project, then bidding for labor and materials, and then constructing the project, CMAR allows the constructor to participate in all those aspects for the benefit of the project. By joining in the process early, the CMAR is able to collaborate with the designer to determine the most efficient and cost-effective process.

The contract allows Granite to provide valuable input in the design of the Runway 11-29 rehabilitation project. In this phase, Granite will work closely with the project designer, Mead & Hunt, to develop the construction documents, prepare real time-cost estimates, and create construction schedules. As CMAR, Granite will also establish a Guaranteed Maximum Price (GMP) to construct the project when the design is complete. Once a GMP is approved by the owner, the airport project will not exceed that amount. This process serves to protect the airport’s budget and also to reduce late-stage changes to the project.

“It’s imperative that our runway rehabilitation be developed in a way that minimizes impacts on the traveling public,” said Kevin Bumen, A.A.E., C.A.E., Director of Airports. “By establishing a Construction Manager at Risk, we are ensuring that the construction team can coordinate logistics, timelines, and budgets in the most effective way possible.”

This award is the first CMAR project for the airport and also for the County of San Luis Obispo. The County Board of Supervisors authorized the airport to use CMAR as a pilot project in December 2019. The Federal Aviation Administration also weighed in, providing approval for its federal funds to be used in the CMAR process. The $1 million contract, approved by the County Board of Supervisors today, is limited to $50,000 for the initial preconstruction phase. The total Runway 11-29 rehabilitation project, including GMP, is currently estimated at $14 million.

The preconstruction phase of the runway rehabilitation project will begin immediately. The project is scheduled to be complete in summer 2021.

 ]