What is Design-Build

7/29/2019 What is Design-Build

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GABUNGAN JURUBINA SDN. BHD. (96387-M)(consulting engineers)Lot B, 12b-3a, Jalan Selaman 1, Dataran Palma,68000 Ampang, Jalan Ampang, Selangor Darul Ehsan

Tel : 03- 4270 2808 Fax : 03- 4270 6800e-mail : [email protected]

INTERNAL MEMO

DATE : Friday, 8 February 2002

TO : All Engineers

FROM : MNM

PROJECT : -

SUBJECT : Article on Design and Build Contract

For general reading. Thank you.

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What is Design-Build?

What is Design-Build?

When a single entity provides both design and construction through a single contract between theagency and the Design-Build contractor.

Variations to the Design-Build Concept:

- 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 thekeys 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 apublic entity, armed with a detailed set of previously purchased plans


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and specifications, can achieve the lowest cost for the publicthrough open, competitive bidding andproper supervision of the low bidder" (Baltz and Morrissey). The Design-Build systemchallenges thetraditional plan by saving the owner overall time for a project. This is accomplished by eliminatingsome of the conflict of having the designer and the builder compete for prospective funds, bycombining the two entities it allows for timely communication and creates a point of singularresponsibility.

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 andconstruction of many of the great structures built. For many years' highway construction and designhas been conducted by two separate entities. It was just recently that the implementation of theSpecialExperimental Project (SEP-14) has led agencies to bypass some federal and state laws andallowed them to hire firms underinnovative 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 byhaving construction beginbefore the final design has been completed. The traditional system ofDesign-Bid-Build has been used for many years. It is based on the assumption that the owner canhave the design plans before bidding out the construction on a project to the lowestbidder. Many

projects could be more cost-effective if they could be implemented faster, thus the evolution ofDesign-Build.

Primary Objective:

a) Time Savings.b) 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 andfinal product quality.

- D-B-W allows for a warranty provision that promotes quality/performance duringwarranty 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 phaseprocess in which a Request for Proposals is sent out. Then, potential Design-Builders send in

proposals that include only information on the technical approachand technical qualifications.A separate proposal having detailed design and cost or price information is used in phase II .Theagency usually will provide the potential Design-Builders with information on how many firms willbe able to participate in phase II(usually five or less). This allows the agency to evaluate the firmsbased only on their expertise and prior accomplishments. In thephase II process the shortlist of firmsare then allowed to bid on the proposals and state how they are going to design, construct, andimplement this in the project. The owner then can select the contractor based on low bid or adjustedlow bid (usually adjusted for the timeinvolved in the project).

The Framework for Implementing the Design-BuildConcept

In order to enact the Design-Build contracting procedure in the transportation industry it must be

understood that there are severalforms of the Design-Build process. This section will show some ofthe different types of formats that are used for implementationof Design-Build. As our informationdatabase grows it will allow us to bring best practices guide to full evolution. We have compiledsome


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basic guidelines for three areas in which Design-Build can be used, also the ACEC guidelines for theimplementation of Design-Build for all states. These are some preliminary descriptions of how theDesign-Build is being used throughout the UnitedStates.

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 projectthat is typically below five million US dollars. These projects are usually routine construction orreconstruction in which the innovation for design and construction are limited. The potential fortimesaving in the promulgation ofthe project is used to create the formula for the completion. Theseprojects are usually emergency type projects that have many of the right-of-way, utility, andenvironmental issues are settled allowing for the Design-Builder to step in and complete theproject. These projects usually contain a warranty provision or some kind of maintenanceagreement.

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 beallowed to bid or offer a proposal on a project (typically less thanfive). Many states have a set plan in how they obtain these firms.An optimal way of selecting thesefirms is by eliminating them first, by whether or not they can provide the services necessary to do thejob. Then if more than the optimal numbers of firms are left, a rating system is used that is projectspecific and is developed bythe owner. This selection process should be specific to each project andwell defined in the Request for Qualifications (RFQ) in order to eliminate any legal problems in theselection of the Design-Build firm.

Proposal Selection

The recommended proposal selection process in this time dependent project should be to first lookat the firms technical proposal and time allocation for the project. Then, after weighting aproposal based on the technical issues and time the price proposalsshould be rated and factoredin. In these type of projects in which the type of design and construction are routine the lowestresponsive bid is typically selected. Therefore the other weightings of the technical and time proposalswill not impact the overallbid 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 ownerallowing for the needed interaction in the Design-Build project between the owner and the Design-Builder. The checks needed by the owner to insure theproject development they intended for can beaccomplished by allowing for the owner to conduct the QC. The Design-Builder willthen be responsible for all Quality Assurance checks. Also, all project management issues andtimetables should be provided inthe proposal by the Design-Builder.

Warranty and Maintenance

Provisions should be addressed in the Request for Proposal (RFP) for the intended life of the projectand the requirements for any maintenance orwarranty. In these reconstruction projects the life of theproject usually is the reasoning for implementing the Design-Build concept so there is generally amaintenance or warranty provision. These projects are usually to extend the life of a highway for a fewmoreyears until a major reconstruction or rebuild project can be done. In the implementation of awarranty or maintenance they should be patiently worded in order to leave no room formisinterpretation 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


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technology to implement the projectfaster than if the owner had to hire out the design becausethey 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 USdollars. These projects are usually bridge reconstruction or Intelligent Transportation System (ITS)where there is a high incentive for innovation. The potential fortimesaving in the promulgation of theproject 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, andenvironmental issues are settledallowing for the Design-Builder to step in and complete the project.These projects usually contain a warranty provision or somekind of maintenance agreement.

Pre-qualification

The firms used in any Design-Build type need a form of pre-qualification in order to select a lownumber of firms that can then beallowed to bid or offer a proposal on a project (typically less thanfive). Many states have a set plan in how they obtain these firms.An optimal way of selecting thesefirms is by eliminating them first, by whether or not they can provide the services necessary to do thejob. Then, if more than the optimal numbers of firms are left, a rating system is used that is projectspecific and is developed bythe owner. This selection process should be specific to each project andwell 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 firmstechnical proposal and timeallocation for the project. Then, after weighing a proposal based on thetechnical issues and time, the price proposals should berated and factored. In these projects in whichthe type of design and construction can be complicated, the final selection is usually based on aweighted rating scale in which other factors such as previous experience, time, technology, andamount of consumer burden during the project are used in selecting the bid. This type of biddingprocedure is termed as adjusted cost bidding. These projects are not necessarily granted to thelowest bidder.


For these Design-Build projects the QC is usually conducted by the ownerallowing for the neededinteraction in the Design-Build project between the owner and the Design-Builder. The checksneeded by the owner to insure the project development theyintended for can be accomplished byallowing for the owner to conduct the QC. The Design-Builder will then be responsible for allQAchecks. Also, all project management issues and timetables should be provided in the proposal bytheDesign-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 veryintricate 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 currentprocess would not allow forfunding mechanisms or current infrastructure needs to accomplish theproject. In the past, Mega projects would have to be done bybreaking the project into many smallprojects because the funding and resources would not allow for them all to be done at once. Usingthe Design-Build innovative contracting technique allows for the owner to fund the project through theDesign-Builder, and to usethe resources of the Design-Builder to supplement some of its staff so thatthey are available for other projects. These projectstend to be time-dependent and very complex in

design. These projects use the Bridging Design-Build concept in which some level of design isdone and all other issues like right-of-way, environmental, and utility issues are resolved by the


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owner. In Utah, USA ithas been found that this technique will enable the Design-Builder to designand construct a project in 4.5 years when it would havetaken 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 lownumber of firms that can then beallowed 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 byeliminating them first, by whether or not they can provide the services necessary to do the job. If morethan the optimal number of firms are left, then some rating system that has been previously developedby the owner for theproject can be used. This selection process should be specific to each projectand well defined in the Request for Qualifications (RFQ) in order to eliminate any legal problems inthe selection of the Design-Build firm.

Proposal Selection

The selection of proposals will consist of evaluating the firms based on technical merits, previousexperience, and time. These factors will be applied to the price proposal for selection. Theweightings should be project specific although anoverall format can be used. The cost of such aproposal 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 importantin aMega Design-Build project. The owner will resolve any problems and conduct meetings in orderto make sure that the potentialDesign-Builders are all on the same page. Once the proposal hasbeen selected, a meeting to discuss reasons for the decision is held. This was used on the Utah I-15project and was found to be effective. The contractors were there to critique the Utah Department ofTransportation (UDOT) on theirhandling of the whole process and they were able to hear the reasonsfor selection or non-selection.


Mega Design-Build projects usually leave the Design-Builder in charge of the QA in day to daywork, while the owner providesquality control (QC) checks. Here is a list of QC checks that NewMexico 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 beincluded in the RFP and addressthese 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


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- 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. Definitions3. Public Policy4. 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 Factors6. Solicitation of Proposals7. Proposals8. Acceptance of Proposals9. 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 performancerequirements. The project should be free from complicated issues such as utility conflicts, right-of-way acquisition, hazardous materials, wetlands and environmentalconcerns, or other issuesthat could affect the project that are known.The project must be non-controversial in nature (i.e., nounresolved 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 significantdesign effort, with a potential to save cost and time in the design effort . The project requiresexpertise 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 ScienceFoundation, University of Colorado, and Georgia Institute ofTechnology. It is called the Design BuildSelector and it is a tool intended to aid owners or agencies in choosing projects that are appropriatefor Design-BuildContracting. It takes an overall score and compares it to other projects that weretaken through the same questions. We at the T2 would like to try this selector forcompleted projectsand other projects. So if you are interested in testing this tool, T2 is the place where it can be found:

Design Build Selector (DBS)

Related Documents On Design-Build

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

Please check a topic that interests you...ACEC Legislative and Regulatory ReportZweig White and Associates, 'Design-Build Survey'Zweig White and Associates, 'Is Design-Build Unstoppable?'Pioneer Builders, Inc., 'Design-Build Construction'Shaw,Pittman,Potts,and Trowbridge, 'Procuring Design Build Construction Services'

The Complete Design-BuilderArizona's Legislation
http://www.colorado.edu/engineering/civil/Design-Build/DBS/http://www.colorado.edu/engineering/civil/Design-Build/DBS/http://www.acec.org/programs/istea2.htmhttp://www.zwa.com/SURVEYS/desbuild.htmhttp://www.zwa.com/PRESS/970710.htmhttp://www.pioneerbuilders.com/design.htmhttp://www.shawpittman.com/baltz4.htmlhttp://www.design-builder.com/http://www.design-builder.com/http://www.azleg.state.az.us/legtext/42leg/2r/bills/sb1253p.htmhttp://www.colorado.edu/engineering/civil/Design-Build/DBS/http://www.acec.org/programs/istea2.htmhttp://www.zwa.com/SURVEYS/desbuild.htmhttp://www.zwa.com/PRESS/970710.htmhttp://www.pioneerbuilders.com/design.htmhttp://www.shawpittman.com/baltz4.htmlhttp://www.design-builder.com/http://www.azleg.state.az.us/legtext/42leg/2r/bills/sb1253p.htm


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Trauner and Associates, 'Contract Management Techniques for Improving Construction Quality'
http://www.tfhrc.gov/pavement/rd97_079.htmhttp://www.tfhrc.gov/pavement/rd97_079.htmhttp://www.tfhrc.gov/pavement/rd97_079.htm

What is Design-Build

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