“Design-Build: The Good, The Bad, The Not So Beautiful” September 13, 2005

Mark E. Filanc, P.E., DBIA

The Good – Steps to Assuring a “Good” Design-Build Project

1) Partnering. Formal partnering sessions, implemented at the start of every

project:

a. Allows all stakeholders to have input on the final project

b. Assists in meeting owner concerns and expectations for design-build

project delivery

c. Facilitates understanding and managing philosophical differences

between a construction enterprise and a professional services

organization

2) Value engineering reviews of design by constructor to increase value of the

project

a. Provide assurance that all design criteria are met cost-effectively, as well

as any constructability issues are identified and addressed

b. Check for reliability, durability, ease of operation, functionality and

comparative costs

3) Get buy-in from Client for fast-track possibilities

a. Can take advantage of not waiting until project fully designed to begin

building “packages”

b. Does not guarantee time savings – the right team, working together, will

set the stage

4) Quality players on the team:

a. Will provide for quality product

b. Will provide for better odds for success

c. Will provide for a more respectful and quality process resulting in more job

satisfaction and thus more project satisfaction

“Design-Build: The Good, The Bad, The Not So Beautiful” September 13, 2005

Mark E. Filanc, P.E., DBIA

The Bad and Not-So-Beautiful – Risks with Design-Build Delivery

1) Unreasonable risk allocation

a. Owners who expect design-builder to carry entire risk burden. This

unreasonable risk shift will result in much higher costs and will probably

eliminate some of the more sophisticated competition.

2) Incompatible D-B Team

a. Doomed for failure. D-B teams must carefully examine their respective

cultures to ensure “a good fit”. A competent engineer teamed with a

competent contractor does not necessarily provide for a successful team.

Examine and compare factors such as experience, conceptual estimating

abilities, mutual respect, corporate culture, and willingness of all partners

to “listen” for a good teaming relationship.

3) Over control by owner

a. Owners that want to have a hand in everything create risk for a poor

performing D-B project. Solve with a communication protocol that works

for all project stakeholders and allows owner a voice in what they want

and to remain in the loop.

4) Unreasonable Expectations

a. Unreasonable expectations by any stakeholder in a D-B project will likely

result in a “no-so-beautiful” project.

1. Example: owner allows insufficient time to design and

construct a project, placing considerable strain on all

stakeholders, creating an atmosphere of conflict.

2. Example: contractor expects immediate answers from D-B

engineering partner. Thoughtful answers cannot be given

when no time for consideration is allowed.

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Projects in Development - $1.1B

Research Laboratories & Vivariums - $ 210 MParking & Transportation, Step 6 - $ 35 MOffice Buildings - $ 130 MStudent Center Expansion - $ 60 MSouthern Radial Road - $10 MCentral Plant Chiller Expansion & Co-Gen - $ 60 MSeismic Improvements & Additions - $ 30 MStudent Housing - $190 MUCIMC Replacement Hospital - $375 M

Projects in Development - $1.1B

2

UCIMC Hospital Project Progress

Site demo completeShoring and mass excavation in progressOSHPD Permit for Foundation & FrameOther drawing packages submitted to OSHPDCompletion New Hospital Building 2009

Additional site development work to followGreat Team

UCI Future Projects

Student Housing ExpansionSocial & Behavioral Sciences BuildingParking & Transportation, Step 7Irvine Biomedical Research Facility, Phase 4Ophthalmology BuildingArts Building Anteater Recreation Center ExpansionSteinhaus Hall Renovations & Seismic ImprovementsHewitt Hall Basement Build-outSocial Sciences Quad Surge SpaceSprague Hall Basement Build-out

“What do you need to manage the Design-Build Process?”

Rebekah G. Gladson, AIA, AUAAssociate Vice Chancellor

Campus Architect

3

Why Use Design-Build? Are the Claims True?

Partnership with D-B Team vs.potential adversarial low bid relationshipTime Is Money - escalation 4-5%/yearTrack record of cost savingsExperience with Design-Build processesTrack record of no claimsContractor included in entire project processTransfer Risk

Depending on Owner some or all may be applicable

Cultures & Philosophies

Transfer Risk

Owners Contractors Design Professionals

Calculated Risk

Profit Motivated Risk Adverse

Risk$

Cost/Quality/Risk Assessment

GreaterOpportunity

Less Opportunity

SchematicDesign

DesignDevelopment

Drawing Development

ConceptDrawings

Flexibility/RiskSharing

ContractDocuments

Cost

Innovation OptionsMeans & Methods

MoreDevelopment

Preliminary Design(Really great DesignDevelopment Docs)

4

Bridged Design-Build Process

InitialConcept

Programming PreliminaryDesign

Construction Drawings &

Construction

Schematic Design Development

GMP BID/PROPOSAL

Design-Build Criteria Competition Process

Owner DevelopProgram

AwardPart 2

AwardPart 1

ProposalPhase

EvaluationProcess

Pre-qualifyD-B Teams

GMP BID/Proposal

Completion of Design

DevelopmentDrawings

ConstructionDrawing &

Construction

Programming Preliminaries

Schedule Comparison

Traditional Delivery

Bridged Design-Build

25% Reduction

Design-Build Criteria Competition

30-35%Reduction

5

Areas of Readiness

Goals – What are you trying to accomplish?

Management Structure

Staff

Communication

Processes

Design-Build Teams

Ability to Change

GoalsAs a Design-Builder, what do you want to accomplish?

Experience with D-BNew RelationshipsMarket OpportunitiesNew profit opportunities

What does the Owner want from the project and D-B?Fast & Cheap Quality??

Business Practices – Same / Different?Increased value Efficiencies Relationships

&

Management StructureOrganizational Structure & Functional Structure

Decision making Who makes what decisions

How information is processedUnderstand the other’s structure

Communication – How is information shared?

Quality ComponentBoth owner/design-build team

Financial & Contractual Accountability

6

Staff

Availability –Do you have adequate staffing?

In-House or Out-source

Experience?Experience level on projectsAre they the “Right” people

Why are they doing it?Financial, recognition, promotion, personal satisfaction or … it’s just a job!

Do they have time to do the job?Other responsibilities

Communication Abilities/Processes

Style vs. PhilosophyMatrix or HierarchalDon’t assumeWhat is importantTiming – urgent: Yes/NoWhat is effective?

Verbal or Written

TerminologyDiffering perspectives

Contractor / Design Professional / Owner

Processes

Knowledge: D-B vs. other delivery methodsRoles of GC, Design Professionals, Sub Contractors, SuppliersDevelop a planContract

Who does what:What is your job vs. my jobDesign vs. constructionQuality assurance & processHardwire processes

Tracking informationDesign Issues, RFI, Bulletins, CO’s, etc…

7

ProcessesEstablish a budget for creating & responding to proposal

Resources, hours, staff, etc…You choose to exceed the budget or notDon’t just let it happen…

Who keeps “official records”Common/shared or individualApproval & review of records

Design-Build Teams

Who is managing the team?

What is the “Right” team membership?Experience and/or creativity for winning?Member responsibility Concern about other membersRole of owner

Design-Build TeamsAttitude

Collaborative vs. DictatorialWritten vs. Verbal

Can the team embrace the owners goals?

Can owner embrace the D-B Team goals?

Clear RolesDesign ProfessionalsContractorSub-ContractorsOwner

8

Ability to ChangeMarket Conditions

Material CostCan alternate systems or materials be used?What approval is required?

Labor AvailabilityDesign professionalsContractor & Sub ContractorCan someone else do the job?

ExperienceTraining, mentorship, shared development

Ability to Change

Process EvolutionContracts

LiabilityManagement ResponsibilitiesBAFO

Resolution of IssuesAssumed in the Proposal or BAFOConflict

Redefine Roles & ResponsibilitiesConstruction Engineer to Manager of Design Professionals

Check ListGoals

Complete project program/descriptionClear expectations

Budget/Schedule/Risk

Management processes and decision-makingUnderstandable processes

Knowledge of owner and / or DB Team

Appropriate contracts

Adequate staffing