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Minnesota Design-Build Workshop “Evolution and Varieties of Design-Build” November 29 - 30, 2000 PowerPoint Presentation
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Minnesota Design-Build Workshop “Evolution and Varieties of Design-Build” November 29 - 30, 2000 Project Delivery & Procurement – Brief History 1420 – Cathedral at Florence 1852 – Founding of ASCE & A 1862 – Use of Master Builder for Wartime Projects

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slide1

Minnesota Design-Build Workshop

“Evolution and Varieties

of Design-Build”November 29 - 30, 2000

project delivery procurement brief history
Project Delivery & Procurement – Brief History

1420 – Cathedral at Florence

1852 – Founding of ASCE & A

1862 – Use of Master Builder for Wartime Projects

1878 – General Contractors Association

1917 – Wartime Integrated Project Delivery

1923 – Engineering and Production Contracts

history of integrated services continued
History of Integrated Services (continued)

1947 – Navy Housing

1962 – NASA Space Program

1972 – Brooks Act; Qualifications-Based Selection

1978 – AIA Revisits its Policy on Construction

1984 and 1996 – Federal Design-Build Procurement Laws

1999 – TEA 21 Design- Build Provision

design build institute of america
Design-Build Institute of America
  • Driven by market demand
  • 701 companies engaged in Design-Build
    • $46 billion in volume
    • 170,000 employees
  • Inclusive of all firms in Design-Build
  • Center of Expertise in Design-Build
  • Staff office in Washington, D.C.
design build overview
Design-Build Overview
  • Innovative approach to project delivery
  • Team of qualified design and construction professionals
  • Operating under a single contract
  • Single source accountability
  • At risk for cost, schedule, quality and management of the project (except where the owner retains responsibility)
design build advantages
Design-Build Advantages
  • Single point of responsibility for owner
  • More professional relationship with constructor
  • A/E and constructor on the same team providing unified recommendations to owner
  • Fastest delivery system
  • Design submission and pricing project at proposal stage possible
  • Earliest knowledge of firm costs
  • Allows most innovations / options for owner to select
  • Delivers high quality
  • Allows clearest definition of risks
  • Least claims and litigation
design build disadvantages
Design-Build Disadvantages
  • Owners pushed for earlier and timely decisions
  • New learning curve for owners
  • Different process in front end of project
  • Barriers in some states with procurement and licensing
  • Use of new insurance/bonding products
  • Resistance among those not familiar with approach
owner s decision tree
Owner’s Decision Tree
  • ACQUISITION PLANNING/ DELIVERY SYSTEM CHOICES

-- Overall Delivery Process

  • PROCUREMENT/PURCHASING CHOICES

-- How are we going to buy goods and services?

  • COMMERCIAL TERMS OF CONTRACTS CHOICES

-- Should our agreement be based solely on knowing costs up front or should we

emphasize performance and cost

reasonableness?

delivery systems options
Delivery Systems Options
  • Design-Bid-Build
  • Construction Management “At Risk”
  • Design-Build
  • Variations on above themes
procurement purchasing options
Sole Source/Strategic Alliance

Qualifications-Based Selection/RFQ

Source Selection with Discussions (Best Value)

Source Selection without Discussions (Best Value)

Fixed Budget/Best Technical Response

Weighted Criteria (Criteria are identified and proposal scored)

Adjusted Low Bid (Price Divided by Technical Score)

Low Bid (IFB)

Procurement/Purchasing Options
procurement selection spectrum

Subjective and Qualitative Factor(s)

Best Value: Subjective, Qualitative and Quantitative Factors

Price-Based Factor(s)

“Brooks”

A/E

Selection

Sole

Source

Negotiated

Source

Selection

Competitive

Negotiation

Weighted

Criteria

Fixed

Budget/

Best

Design

Adjusted

Low Bid

Two-Step

Sealed

Bidding

Low First

Cost

Bidding

Bilateral Discussions - Choice Based on Qualitative/ Subjective Factors

Formal Discussions - Choice Based on a Combination of Qualitative and Quantitative Factors

Unilateral Choice, Based on Qualitative and Quantitative Factors

Unilateral Choice, Based on a Single Quantitative Factor

Procurement/Selection Spectrum
commercial terms of contracts
Commercial Termsof Contracts
  • Cost Reimbursable
  • Cost Plus Fee
  • Guaranteed Maximum Price
  • Fixed Price/Lump Sum
  • Unit Price
design build structural variations
Design-Build Structural Variations
  • Joint Venture
  • Integrated Firm
  • Constructor-Led
  • Designer-Led
  • Developer-Led
  • Owner-Led
design build operational variations
Design-Build Operational Variations
  • Direct Design-Build
  • Design Criteria Design-Build
  • Preliminary Design Design-Build
percentage of design as included in or required by design build rfp
Percentage of Design (As included in or required by Design-Build RFP)

Usually Best Value or

Qualifications-Based Procurement

Typically Low Bid-Based Procurement

Direct Design-Build

-10% to 10%

Design Criteria

Design-Build

5% to 25%

Preliminary Engineering Design-Build 20% to 35%

Design Draw-Build

35% Design or Greater

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

Pre-Design

knowledge of price

“Classical” Project

Delivery

(Design-Builder warrants to Owner

that design documents are complete

and free from error)

“Traditional” Project

Delivery

(Owner warrants to Contractor

that design documents are complete

and free from error)

Program

Program

Program

Program

Point at which firm project costs become known

Negotiation

Competitive Proposals/ Evaluations

Design

Working Drawings/ Specs

Bids

Design

Working Drawings/ Specs

Budgets

Contract Cost

Contract Cost

Design-Build Project Delivery

Design-Build Project Delivery

Contract Cost

Subcontract Bids

Negotiated Selection Design-Build

Construct

Construct

Competitive Selection Design-Build

Contract Cost

Design-Bid-Build

Fee-Type Const. Management

Knowledge of Price
construction industry institute study
Construction Industry Institute Study
  • 351 Projects
  • 5K to 2.5M SF
  • Various types / Industry sectors
  • Compared performance between DBB, CM@R, & DB
  • Performance evaluated Cost, Schedule, Quality areas
construction industry institute study19
Construction Industry Institute Study
  • Design-Build Performance compared to Design/Bid /Build
    • Unit Cost - 6% less
    • Construction Time - 12% faster
    • Project Time (design & const)- 33% faster
  • Quality on a 10 point scale -
    • Start-up; Call Backs; O&M; Exterior & Structure; Interior; Environmental; Equipment
    • DB outperformed D/B/Bin every category
construction industry institute study20
Construction Industry Institute Study
  • Best performing projects-
    • Owner decision making
    • Good scope definition
    • Excellent team communication
    • Qualified contractors
  • Worst performing projects-
    • Constructor engaged late in design
    • Limited team experience
    • Onerous contract clauses
    • Poor decision making process
    • No pre-qualification process
db and the public sector
Federal focus on implementation

Two Phase Selection

TEA 21 authorization

Agency Adoption

States’ use expanding

DB allowed - 28

DB restricted - 14

DB not allowed - 8

DB and the Public Sector
the future of integrated services delivery
The Future of Integrated Services Delivery
  • Ascendancy of Facility Asset Firms and Specialty Design-Construct Firms
  • More Cross-Disciplinary Teams Solving Customer Problems
  • Multi-Skilling at the Professional

and Trade Levels

  • Linked Technology

– Labor, Materials and Equipment, Prices and Schedule in the heart of the project

- Performances, Geometries, Costs and Milestones at Inception and Operation

jeffrey l beard design build institute of america ph 202 682 0110 jbeard@dbia org www dbia org
Jeffrey L. Beard

Design Build Institute of America

Ph. (202) 682-0110

jbeard@dbia.org

www.dbia.org