Natt McDougall Company
Newport International Terminal
What makes it interesting?
Environmental concerns forced a two-year delay to construction, and plans were revamped. The owner’s budget did not include the changes, and NMC saved the owner money by saving one ship originally slated for demolition and demolishing the other while it floated. NMC had to work within In-Water Work Periods. NMC’s complete remediation of both ships earned them the EPA Phoenix Award.
How HCSS Software assisted with this project
Because the expanded scope of the project increased estimated costs to well over the amount of initial funding the Port had secured, the entire project could not be priced and agreed to at one time as a single GMP contract. NMC adopted what came to be known as the “Rolling GMP.” Using this thinking, NMC provided pricing and agreed to perform select portions of the work which were dictated by permit requirements on several individual packages at a time. Savings realized on one package were applied to future work packages once it was clear they would result, even though that package might not be complete. This allowed the project to move ahead, piece by piece but always within available funding, until it eventually was completed.
A series of 29 contract amendments, each one estimated separately in HCSS, were executed to manage getting the work done using this “Rolling GMP” methodology.
Newport, Oregon, a community of 10,000 people, has had its port facility on Yaquina Bay since it sunk two surplus World War II concrete ships in 1948 for bulkheads to serve the fishing and timber industries. The ships, the SS Hennebique and the SS Pasley, were scuttled by blasting holes in the hulls and sinking them bow-to-bow, filling the compartments with sand to make the Newport International Terminal.
When the Pasley was sunk, it settled on an uneven bottom and listed towards the Bay. Over time, the listing became worse as the port refilled and bolstered the ship, continuing to load logs over the top of it. Eventually, the Pasley developed a major crack through its hull that resulted in an oil spill in 1996, shutting down timber shipping operations.
By 2004, the rest of the facility was in a poor state containing a dilapidated fishing dock, a condemned high dock, a white elephant roll-on/roll-off dock, and rundown buildings. This situation prompted the port to pass a bond measure in 2006 for the renovation of the terminal and the issuance of an RFP, which included no environmental cleanup or ship removal, for a Construction Manager-General Contractor. NMC was selected in late 2007.
During design, it became obvious the port did not have a clear understanding of what would be required to achieve its plans. Public outcry and environmental concerns forced a two-year delay to the start of construction, during which time plans were totally revamped to include environmental remediation of the ships, complete ship removal, and roll-on/roll-off dock replacement. The enlargement in scope, coupled with requirements that remediation and demolition be performed, indicated there would be a considerable funding shortfall from the previous bond measure.
Nonetheless, construction began late in 2010 with the installation of a cell around the Pasley that could only be installed during the In-Water Work Period of Nov. 1 – Feb. 15. Ship remediation and demolition were completed in 2011, the new cargo and fishing docks were completed in 2012, and a modified roll-on/roll-off dock was installed in early 2013.
NMC remained faithful even when it became clear the port was in trouble. Recognizing the client was unsure where to go with the situation; NMC extended its efforts, doing yeoman work on environmental and demolition work plans for use in obtaining permits, and they convinced the port that there was no valid reason to remove the Hennebique once clean despite public pressure, saving $1.4 million on the project.
With costs well exceeding what was expected, NMC delivered a Budget/Phase Layout which allocated estimated costs by objective to prioritize construction. NMC completely remediated both ships, earning the EPA Phoenix Award. NMC managed the work using contract amendments for select work where agreed to as funding became available. NMC refloated the Pasley within its sheet pile cell on September 14, 2011, and completely demolished it while it floated, realizing considerable savings.