1. State Aid Design-Build Project Delivery for Minnesota Cities and Counties

2. Outline “Snapshot in Time” Design-Build Delivery –What is Design-Build? –What does the Statute Say? –Design-Build Pilot Program Process –State-Aid Low-Bid Design-Build Process –Comparing Design-Build to the Traditional Design-Bid-Build Process –What are the Advantages and Disadvantages of Design-Bid-Build? –What are the Advantages and Disadvantages of Design-Build? –When do you use Design-Build? –Types of Pilot Program Example Projects Examples of Smaller Design-Build Projects Pilot Projects Design-Bid-Build Roles and Responsibilities Design-Build Roles and Responsibilities Contacts Questions & Answers

3. “ Snapshot in Time ” Agencies have concerns over budgets and the quality of projects being delivered The Customer (Public) is demanding faster delivery of projects Revenue streams are insufficient, unpredictable and in some cases are drying up –Gas tax collections are down –Motor vehicle sales taxes are up and down –Officials are desperately looking for new revenue streams (mileage or wheelage taxes, tolls, etc.) FHWA through their new initiative “Everyday Counts” is recommending that States make innovative contracting practices the standard way of doing business.

4. Design-Build Delivery What is Design-Build? A project delivery method that overlaps the design and construction phases Phases are concurrent rather than sequential like traditional Design-Bid-Build methods New project and quality management approach New roles and responsibilities for Owners and Contractors

5. Design-Build Delivery What the Statute Says: 2009 Legislature 3 Year pilot for cities and counties Transportation projects State-Aid system Expires October 1, 2012 or upon completion of 9 projects Selection by Design-Build Project Selection Council Incorporates educational component for owners and design-builders Can be either best-value or low-bid

6. Design-Build Delivery What the Statute Says / Best Value 2 Phase (RFQ/RFP) 2-Step review process Awarded to firm with lowest adjusted score (price ÷ technical score) 0.2% Stipend, based on Engineer’s Estimate for design and construction. Stipend awarded to firm(s) that provided a responsive but unsuccessful proposal

7. Design-Build Delivery What the Statute Says / Low-Bid Requires a minimum of RFP with separate technical and price proposals 2-Step review process Awarded to firm with lowest bid that met the technical requirements of the RFP Stipend may be paid only if RFQ and short-listing required

8. Design-Build Delivery Design-Build Pilot Program Process

9. Design-Build Delivery State-Aid Low-Bid Design-Build Process

10. Design-Build Delivery

11. What are the Advantages and Disadvantages of Design-Bid-Build? Advantages Long history of acceptance Open competition Distinct roles are clear Easy to bid Disadvantages Innovations not optimized Cost overruns Disputes between parties Owner retains most risks Usually low bid; incentive for change orders Owner responsible for errors and omissions Linear project delivery process

12. Design-Build Delivery What are the Advantages and Disadvantages of Design-Build? Advantages Shorter delivery time Reduce user costs Innovation by contractor, designer and owner Allows flexibility in design Innovative material selection and construction methods Contractor selection process can be based on technical and financial proposal evaluation Minimizes the impacts on residents and businesses Disadvantages New method; unfamiliar process Owner needs to make quicker decisions Not for every job Bid processes can be more expensive

13. Design-Build Delivery When do you use Design-Build? Project that need to be “fast tracked” because of safety, emergency, funding or political reasons Projects that allow for innovation in the design and construction Packaged projects (several smaller combined into one larger project) Projects with complex designs, staging and traffic control Projects where in-house staffing cannot meet the project demands

14. Design-Build Delivery Types of Pilot Program Example Projects: Large box culvert projects Bundled bridge projects Mill and overlays Intersection upgrades (signals, paving, curb and gutter, etc.)

15. Examples of Smaller Design-Build Projects Mn/DOT District 4 (Detroit Lakes) District-Wide Sign Replacement and Sign Inventory TH 10 / TH 32 Interchange in Hawley, MN TH 2 Bridge Replacement with Box Culvert

16. Pilot Projects Anoka County / CR 14 – Doug Fischer Rochester / 2 nd Street SE from South Broadway to Civic Center Drive SE – Richard Freese

17. Design-Bid-Build Roles and Responsibilities Owner / Agency Environmental Approvals Complete Design (Plans and Specs) Right-of-Way Contract Administration / Construction Management (inspection, testing, etc.) Contract Owner/Agency provides the plans and specs in the form of a proposal Contractor with the low-bid is awarded the contract Contractor Construction Safety

18. Design-Build Roles and Responsibilities Owner / Agency Environmental Approvals Preliminary Design Design Oversight Right-of-Way Construction Oversight Contract Owner / Agency issues RFP Contractor submits proposal Contractor awarded by “best value” or low- bid Contractor Final Design Utilities and Permits Construction Quality Control / Assurance Inspection/Testing Safety

19. Who should you contact for more Information? Rick Kjonaas, PE Mn/DOT Deputy State-Aid Engineer Rick.kjonaas@state.mn.us Gary Thompson, PE URS Program Delivery Manager Gary_thompson@urscorp.com

20. Questions? ?