? Design/Build What do consultants think?

A piece of the puzzle D/B/O/FD/B/BC/M D/B/ODesign/BuildPM D/B/O/MOthers

ACEC Support Member of coalition in mid 1990s for design/build Federal legislation Supported two-step process

Two-Step Process Step 1 Predesign Step 2 Design/Build Design (advisor) oversight

ACEC Now Supports Value Based Delivery Systems (VBDS) Design/build Its a piece of the puzzle

A piece of the puzzle D/B/O/FD/B/BC/M D/B/ODesign/BuildPM D/B/O/MOthers

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 Management American 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 Infrastructur e Delivery Rehabilitation and Replacement Financial and Legal Impacts Social and EconomicImpacts Operations and Maintenance

Procurement Process Issues Competitive bids Competitive proposals Areas of Concern –Quality –Openness Scoping Report for NB US-23 Over Middle Branch Macon River Structure No. BO2-1 of Developing Bridge Repairs Alternatives (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/BD/BC/MD/B/O/FD/B/O/MOther Method 1 Method 2 Method 3 Selected Delivery Method Process Criteria VBDS Foundation Principles Project Characteristics STEP #3: Technical Advisor applies VBDS Foundation Principles. Identifies method that meets Owners 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