?Design/Build

What do consultants think?

A piece of the puzzle

D/B/O/F D/B/B C/M

D/B/O Design/BuildDesign/Build PM

D/B/O/M Others

ACEC Support

• Member of coalition in mid 1990s for design/build Federal legislation

• Supported two-step process

ACEC/Michigan

Two-Step Process

Step 1Predesign

Step 2Design/Build

Design (advisor) oversight

ACEC Now Supports

• Value Based Delivery Systems (VBDS)• Design/build

It’s a piece of the puzzle

A piece of the puzzle

D/B/O/F D/B/B C/M

D/B/O Design/BuildDesign/Build PM

D/B/O/M Others

Value Based Delivery System Concepts

• Select the most appropriate, not the best (there is no best)

• Multiple systems need to be available

Founding Principles of VBDS

• Communication• Responsiveness• Quality• Integrity

Look for best value

Broader View of Asset ManagementAmerican Infrastructure Consortium

• Infrastructure delivery• Operations and maintenance• Rehabilitation and replacement• Financial and legal impacts• Social and economic impacts

In this view, D/B is an element only, a piece of a bigger puzzle.

Asset Management Puzzle

InfrastructurInfrastructure Deliverye Delivery

Rehabilitation and Rehabilitation and ReplacementReplacement

Financial Financial and Legal and Legal ImpactsImpacts

Social and Social and Economic Economic ImpactsImpacts

Operations and Operations and MaintenanceMaintenance

Procurement Process Issues

• Competitive bids• Competitive proposals• Areas of Concern

– Quality– Openness

Scoping Report for NB US-23 OverMiddle Branch Macon RiverStructure No. BO2-1 of 58033

Developing Bridge RepairsAlternatives (Bridge Scoping)University Region - Seven Bridges

Michigan Department of Transportation

JN-M84216

October 13, 2000

American Bar Association Code for Design/Build• Allows both• Competitive proposals allows

negotiations based on ethical business practices, no auction

• Owners need technical advice through entire process

Design Requirements Needed per ABA Code

• Features, functions, characteristics, qualities and properties that are required by the State

• Anticipated schedule, including start, duration, and completion

• Estimated budgets (as applicable to the specific procurement) for design, construction, operation and maintenance

The design requirements may, but need not, include drawings and other documents illustrating the scale and relationship of the features, functions, and characteristics of the project.

Key Issues to be Considered

• Quality– Qualifications

based selection• Initial price• Life-cycle price• Schedule• Permitting• Financing

Advantages

• Single source of quality responsibility• Possibly less change orders• Shorter “in-service” time

Disadvantages

• Less control of details– Design– Construction– Materials and equipment– Design life

• Early commitment to total project• Owner changes can have bigger impact• Faster expenditure of funds• Variance of qualifications across a team

Threat of Substitute Products or

Services

Threat of New Entrants

Competitive Forces

Bargaining Power of Suppliers

Bargaining Power of Buyers

Advanced Technology

International Firms/Management Firms (D/B/F/O, D/B/O, D/B/O/M)

DOTs/Public Owners/Utilities/Private Owners

Design-Builders, CM, Program Managers

Rivalry Among Existing

Competitors

The VBDS Approach

D/B/B D/B C/M D/B/O/F

D/B/O/M

Other

Method 1

Method 2

Method3

Selected

Delivery

Method

Process Criteria

VBDS FoundationPrinciples

ProjectCharacteristics

STEP #3: Technical Advisor applies VBDS Foundation Principles. Identifies method that meets Owner’s Outcome/Best Value Goals.

STEP #2: Owner engages technical advisor to identify appropriate delivery method based on project characteristics.

STEP #1: Available Delivery Approaches

Design/Build Engineering Opportunities

• Design/builder (lead or member of a joint venture)

• Consultant to design/builder• Responsible for developing the project

design within budgetary constraints• Responsible for developing the

construction documents to be used by the design/build team

Design/Build Risks

• Liability will vary depending on the role of the engineer

• As a lead or member of joint venture, engineer may take on full responsibility and liability for the project

• As consultant to the Design/Builder, engineer may take on the same liability or less than under Design/Bid/Build

• If not lead, no direct commitment to owner

Design/Build Benefits

• Coordination between parties• Control over budget and schedule• Conflicts are internalized