PowerPoint Presentation

Team Structures and Project Performance in the Design-Build / Integrated Project Delivery MarketplaceMark E. Alpert, P.E., DBIA CH2M HILLAgendaIntroductionTeam StructureEngineer-leadIntegrated design-build without self-performanceIntegrated design-build with self-performanceConstructor-ledOther marketsOwners Team Structure PreferencesImplications for Companies Going ForwardIntroduction: teams must have a design-build mindset3

Engineer+Constructor+Design-Build Mindset=DESIGN-BUILDEngineer+ConstructorDESIGN-BUILD

EngineerConstructorOwners delivery preferences

5Typical Design-Build Team StructuresEngineer-leadIntegrated design-build without self-performanceIntegrated design-build with self-performance

Contractor-lead

Prime/Sub or Joint VentureUsually single firm with team subcontractorsUsually single firm without team subcontractorsEngineer subconsultant to contractor5Engineer-LeadWill require clear division of responsibility between engineer and contractorTechnical complexityNew/unproven/cutting edge technologyStringent project requirementsIncreased effluent quality, consent decree mandateUnique commercial requirementsOwner preference of approach in team structure6

David L. Tippin Water Treatment Facility, Tampa. FL2002 DBIA Water Systems Quality AwardDavid L. Tippin Water Treatment Facility, Tampa. FL2002 DBIA Water Systems Quality Award6Contractor-ledWill require clear division of responsibility between contractor and engineerNormal structure for transportation marketProject risk is lower than a complex processing facilityGreater site constraints/challengesPast experience with project ownerLarger project bonding requirements?Legislation mandating self-performance

Southern Delivery System Water Treatment Plant and Finished Water Pump StationColorado Springs, ColoradoSingle firm with full project responsibilityMay or may not be schedule-drivenOwner wants input into subcontractor/vendor selectionGreater involvement from local market Legislation may not allow self-performanceSimple team structure with single point of accountabilityMust meet security for performance requirements

Integrated design-build without self-performance

Bonita Springs East Water Reclamation Facility, Bonita Springs, FL. 2008 DBIA Excellence Award for Projects over $15 MillionBonita Springs East Water Reclamation Facility, Bonita Springs, FL. 2008 DBIA Excellence Award for Projects over $15 Million8Technical and procurement expertise requiredLocal or state legislation or policy mandates self-performanceSelf-performance potentially cheaper than subcontracted workMust be able to manage all project risks successfully Project cost is criticalMust meet security for performance requirements

Integrated design-build with self-performance

Spokane County Regional Water Reclamation Facility, Spokane, WA2012 DBIA National Water/Wastewater AwardSpokane County Regional Water Reclamation Facility, Spokane, WA2012 DBIA National Water/Wastewater Award9Implications for PractionersDecide what structure fits best for your firmIdentify personnel who can be effective with selected structure and project requirementsDefine whats a good deal for your firm and how much are you willing to invest to win

Define what risk is acceptable to your firmInform insurance companies and banks of different business approachWhat additional business infrastructure is needed to be successful 10Get Smart on What Clients ExpectPerformance guaranteesCost of workFinancial risk and margin expectationsTransparency in pricingDesign for design-buildProject management add the right talent 11

11Deliver Work and Refine from Lessons LearnedChoose experienced Design-Build Manager to lead firms teamCommit core experienced resources to projectsEstablish pricing criteria that is market based and meets firms business goalsStandardized systems and tools to control, cost, scope, and scheduleAccountability will be key in performance12

Significant Opportunities for Design-Build Delivery

Tailor your business to the market and mandated delivery structures that match clients and opportunities. The future is bright for those firms that adapt to the changing marketplace.