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Bridging: the owner develops preliminary project design to the 30-50% level.
Turnkey: when the owner requires outside expertise and then allows the entity to turn over the keys at project completion.
Design-Build-Warranty (D-B-W): combines a warranty provision with Design-Build.
Design-Build-Maintain (D-B-M): combines maintenance provisions with Design-Build.
Privatization: when a private entity designs, builds, and maintains a section of roadway in turn for a toll or fee.

Introduction to the Design-Build Concept

Design-Build is an alternative to the traditional Design-Bid-Build system. The Design-Bid-Build system "is driven by the belief that a public entity, armed with a detailed set of previously purchased plans and specifications, can achieve the lowest cost for the public through open, competitive bidding and proper supervision of the low bidder" (Baltz and Morrissey). The Design-Build system challenges the traditional plan by saving the owner overall time for a project. This is accomplished by eliminating some of the conflict of having the designer and the builder compete for prospective funds, by combining the two entities it allows for timely communication and creates a point of singular responsibility.

The concept of having a designer and a builder under one roof has been around since the Renaissance Era. In that time a master builder (Design-Builder) oversaw both the design and construction of many of the great structures built. For many years' highway construction and design has been conducted by two separate entities. It was just recently that the implementation of the Special Experimental Project (SEP-14) has led agencies to bypass some federal and state laws and allowed them to hire firms under innovative contracting methods such as design-build.

Reason's for Pursuing Design-Build

Primarily, Design-Build is used when there is an opportunity for the owner or agency to save time by having construction begin before the final design has been completed. The traditional system of Design-Bid-Build has been used for many years. It is based on the assumption that the owner can have the design plans before bidding out the construction on a project to the lowest bidder. Many projects could be more cost-effective if they could be implemented faster, thus the evolution of Design-Build.

Primary Objective:

Time Savings.

Other Objectives:

Singular Responsibility.
Reduced administration and inspection costs.
Reduce or eliminate change orders and claims due to "errors and omissions."
Allow maximum contractor flexibility.
Provide additional expertise that may not have been available through conventional methods.
Allow for the factor in which innovation and new approaches will increase speed and final product quality.
D-B-W allows for a warranty provision that promotes quality/performance during warranty period.

Changes to Traditional Design-Bid-Build System

The selection process will be the largest change to the Design-Bid-Build system. It is a two phase process in which a Request for Proposals is sent out. Then, potential Design-Builders send in proposals that include only information on the technical approach and technical qualifications. A separate proposal having detailed design and cost or price information is used in phase II. The agency usually will provide the potential Design-Builders with information on how many firms will be able to participate in phase II (usually five or less). This allows the agency to evaluate the firms based only on their expertise and prior accomplishments. In the phase II process the shortlist of firms are then allowed to bid on the proposals and state how they are going to design, construct, and implement this in the project. The owner then can select the contractor based on low bid or adjusted low bid (usually adjusted for the time involved in the project).

The Framework for Implementing the Design-Build

Concept

In order to enact the Design-Build contracting procedure in the transportation industry it must be understood that there are several forms of the Design-Build process. This section will show some of the different types of formats that are used for implementation of Design-Build. As our information database grows it will allow us to bring best practices guide to full evolution. We have compiled some basic guidelines for three areas in which Design-Build can be used, also the ACEC guidelines for the implementation of Design-Build for all states. These are some preliminary descriptions of how the Design-Build is being used throughout the United States.

Low-End Design-Build Projects

These are overlay or basic reconstruction projects that have little or no room for innovative design, but have tight time constraints. Using Design-Build allows for the project to come of age faster. These can also be classified as time dependent projects. A low-end Design-Build Project is a project that is typically below five million dollars. These projects are usually routine construction or reconstruction in which the innovation for design and construction are limited. The potential for timesaving in the promulgation of the project is used to create the formula for the completion. These projects are usually emergency type projects that have many of the right-of-way, utility, and environmental issues are settled allowing for the Design-Builder to step in and complete the project. These projects usually contain a warranty provision or some kind of maintenance agreement.

Pre-qualification

The firms used in any Design-Build type need a form of pre-qualification in order to select a low number of firms that can then be allowed to bid or offer a proposal on a project (typically less than five). Many states have a set plan in how they obtain these firms. An optimal way of selecting these firms is by eliminating them first, by whether or not they can provide the services necessary to do the job. Then if more than the optimal numbers of firms are left, a rating system is used that is project specific and is developed by the owner. This selection process should be specific to each project and well defined in the Request for Qualifications (RFQ) in order to eliminate any legal problems in the selection of the Design-Build firm.

Proposal Selection

The recommended proposal selection process in this time dependent project should be to first look at the firm’s technical proposal and time allocation for the project. Then, after weighting a proposal based on the technical issues and time the price proposals should be rated and factored in. In these type of projects in which the type of design and construction are routine the lowest
responsive bid is typically selected. Therefore the other weightings of the technical and time proposals will not impact the overall bid unless the prices are similar.

Quality Control and Quality Assurance (QA and QC)

For these time-dependent routine reconstruction projects the QC is usually conducted by the owner allowing for the needed interaction in the Design-Build project between the owner and the Design-Builder. The checks needed by the owner to insure the project development they intended for can be accomplished by allowing for the owner to conduct the QC. The Design-Builder will
then be responsible for all Quality Assurance checks. Also, all project management issues and timetables should be provided in the proposal by the Design-Builder.

Warranty and Maintenance

Provisions should be addressed in the Request for Proposal (RFP) for the intended life of the project and the requirements for any maintenance or warranty. In these reconstruction projects the life of the project usually is the reasoning for implementing the Design-Build concept so there is generally a maintenance or warranty provision. These projects are usually to extend the life of a highway for a few more years until a major reconstruction or rebuild project can be done. In the implementation of a warranty or maintenance they should be patiently worded in order to leave no room for misinterpretation and allow for the project to last for its intended time.

Mid-Level Design-Build Projects

Mid-Level Design-Build refers to projects that use the Design-Build concept to bring in new technology to implement the project faster than if the owner had to hire out the design because they do not have the expertise to handle it in house. These projects typically use Turnkey Design-Build concepts.

A mid-level Design-Build Project is a project that is typically between five and twenty million dollars. These projects are usually bridge reconstruction or Intelligent Transportation System (ITS) where there is a high incentive for innovation. The potential for timesaving in the promulgation of the project and also the need for outside expertise make these projects ideal for Design-Build. These projects are usually emergency type projects that have many of the right-of-way, utility, and environmental issues are settled allowing for the Design-Builder to step in and complete the project. These projects usually contain a warranty provision or some kind of maintenance agreement.

Pre-qualification

The firms used in any Design-Build type need a form of pre-qualification in order to select a low number of firms that can then be allowed to bid or offer a proposal on a project (typically less than five). Many states have a set plan in how they obtain these firms. An optimal way of selecting these firms is by eliminating them first, by whether or not they can provide the services necessary to do the job. Then, if more than the optimal numbers of firms are left, a rating system is used that is project specific and is developed by the owner. This selection process should be specific to each project and well defined in the Request for Qualifications (RFQ) in order to eliminate any legal problems in the selection of the Design-Build firm.

Proposal Selection

The recommended proposal selection process in this type of project should be to first look at the firm’s technical proposal and time allocation for the project. Then, after weighing a proposal based on the technical issues and time, the price proposals should be rated and factored. In these projects in which the type of design and construction can be complicated, the final selection is usually based on a weighted rating scale in which other factors such as previous experience, time, technology, and amount of consumer burden during the project are used in selecting the bid. This type of bidding procedure is termed as adjusted cost bidding. These projects are not necessarily granted to the lowest bidder.

Quality Control and Quality Assurance (QA and QC)

For these Design-Build projects the QC is usually conducted by the owner allowing for the needed interaction in the Design-Build project between the owner and the Design-Builder. The checks needed by the owner to insure the project development they intended for can be accomplished by allowing for the owner to conduct the QC. The Design-Builder will then be responsible for all QA checks. Also, all project management issues and timetables should be provided in the proposal by the Design-Builder.

Warranty and Maintenance

Mid-Level Design-Build projects are usually warranted by assuring that any innovative or new technique will indeed work for the intended purpose outlined in the RFP. This may require very intricate working on the part of the owner in the RFP to allow for no misinterpretation.

Mega Design-Build Projects

Mega Design-Build projects are those projects that use the Design-Build concept because the current process would not allow for funding mechanisms or current infrastructure needs to accomplish the project. In the past, Mega projects would have to be done by breaking the project into many small projects because the funding and resources would not allow for them all to be done at once. Using the Design-Build innovative contracting technique allows for the owner to fund the project through the Design-Builder, and to use the resources of the Design-Builder to supplement some of its staff so that they are available for other projects. These projects tend to be time-dependent and very complex in design. These projects use the Bridging Design-Build concept in which some level of design is done and all other issues like right-of-way, environmental, and utility issues are resolved by the owner. In Utah it has been found that this technique will enable the Design-Builder to design and construct a project in 4.5 years when it would have taken 10 years under the traditional Design-Bid-Build Process.

Pre-qualification

The firms used in any Design-Build type need a form of pre-qualification in order to select a low number of firms that can then be allowed to bid or offer a proposal on a project (typically less than five). Many states have a way to obtain these firms. An optimal way of achieving these firms is by eliminating them first, by whether or not they can provide the services necessary to do the job. If more than the optimal number of firms are left, then some rating system that has been previously developed by the owner for the project can be used. This selection process should be specific to each project and well defined in the Request for Qualifications (RFQ) in order to eliminate any legal problems in the selection of the Design-Build firm.

Proposal Selection

The selection of proposals will consist of evaluating the firms based on technical merits, previous experience, and time. These factors will be applied to the price proposal for selection. The weightings should be project specific although an overall format can be used. The cost of such a proposal is very high for potential firms therefore initialing a need to buy the
proposals whether they are selected or not. This is why the initial shortlisting and re-qualification of firms becomes important in a Mega Design-Build project. The owner will resolve any problems and conduct meetings in order to make sure that the potential Design-Builders are all on the same page. Once the proposal has been selected, a meeting to discuss reasons for the decision is held. This was used on the Utah I-15 project and was found to be effective. The contractors were there to critique the Utah Department of Transportation (UDOT) on their handling of the whole process and they were able to hear the reasons for selection or non-selection.

Quality Control and Quality Assurance (QA and QC)

Mega Design-Build projects usually leave the Design-Builder in charge of the QA in day to day work, while the owner provides quality control checks. Here is a list of QC checks that New Mexico proposed for their Highway 44 expansion.

The state will provide:

    Approval authority consistent with law.
    Review and approval of designs..
    Periodic testing and acceptance.
    Final acceptance and completed construction.

Warranty and Maintenance

The states that are currently doing Mega-projects have warranties in place. A warranty should be included in the RFP and address these general areas:

    Scope of warranty and maintenance.
    Scheduling and limits of warranty and preventative maintenance after construction.
    Pricing the warranty after construction (extensions and other provisions).
    Insurance and bonding.
    Material Requirements.
    Equipment.
    Warranty Performance criteria
        Pavement distress
        Pavement roughness
        Pavement rutting
        Surface friction (skid)
        Performance thresholds
        Remedial action
        Bridges
        Erosion Control
    Remedial work procedures
    Warranty exemptions
    Dispute resolution.

ACEC Model State Design-Build

This is the generic guideline for implementing the Design-Build concept developed by ACEC.
1. Short Title
2. Definitions
3. Public Policy
4. Procedures

-Phase1 (design to a certain percentage)
-Phase2 (two part selection process)
-Based on qualifications
-Based on design concepts, subfactors, cost, and price.

5. Development of Evaluation Factors
6. Solicitation of Proposals
7. Proposals
8. Acceptance of Proposals
9. Withdrawal of Proposals
10. Public Access or Information Requirements.

(ACEC proposal for ISTEA II)

Selecting Design-Build as Your Contracting Procedure

The project must have a clearly defined scope of work, design basis, and performance requirements.
The project should be free from complicated issues such as utility conflicts, right-of-way acquisition, hazardous materials, wetlands and environmental concerns, or other issues that could affect the project that are known. The project must be non-controversial in nature (i.e., no unresolved political issues). The project has room for innovation in the Design-Build effort. The project is an emergency project or has tight time constraints. The project involves a significant design effort, with a potential to save cost and time in the design effort. The project requires expertise not available in-house. To balance the program agencies should leave enough Design-Bid-Build projects in the program to provide work for the smaller firms or those uninvolved in Design-Build.

A preliminary evaluation for projects using Design-Build is available through the National Science Foundation, University of Colorado, and Georgia Institute of Technology. It is called the Design Build Selector and it is a tool intended to aid owners or agencies in choosing projects that are appropriate for Design-Build Contracting. It takes an overall score and compares it to other projects that were taken through the same questions. We at the T2 would like to try this selector for completed projects and other projects. So if you are interested in testing this tool, T2 is the place where it can be found:

Click here for access to DBS:

Design Build Selector (DBS)

Related Documents On Design-Build
These are documents available on the Internet. Many of these documents along with state DOT's input have brought this Design-Build management system together.

Please click on a topic that interests you...

Pioneer Builders, Inc., 'Design-Build Construction'
Arizona's Legislation