DESIGN-BUILD

Document Sample
DESIGN-BUILD Powered By Docstoc
					DESIGN-BUILD




               1
                        Delivery Methods
           Most Common Project Delivery Methods
            – Design-Bid-Build
            – Design-Build




                                                            2




•ALTHOUGH THERE ARE MANY DIFFERENT METHODS OF CONSTRUCTING THINGS,
THERE ARE TWO MAJOR PROJECT DELIVERY METHODS THAT ARE USED IN
CONSTRUCTION PROJECTS TODAY.
•THEY ARE DESIGN-BID-BUILD AND DESIGN-BUILD
•THERE ARE NUMEROUS VARIATIONS ON EACH OF THESE DELIVERY METHODS.
THE FOLLOWING SLIDES WILL DISCUSS THE FUNDAMENTAL DISTINCTIONS
BETWEEN THE TWO.




                                                                     2
                     D-B-B and D-B
Design- Bid-     (D-
Design-Bid-Build (D-B-B):
   An owner/agency contracts separately for design and
   construction
   After design is complete, a competitive bid process is used to
   select a contractor to construct the project
   D-B-B proceeds in a linear or sequential fashion; design is
   completed before bidding, and bidding is completed before
   construction
   Design errors are the owner/agency responsibility

Design-      (D-
Design-Build (D-B):
   The owner/agency holds a single contract with a single entity
   for both the design and construction of a project
                 non-
   Proceeds in a non-linear fashion; construction can start while
             on-
   design is on-going
                            D- contractor’
   Design errors are the D-B contractor’s responsibility.
                                                                3




                                                                    3
                         Design-Bid-Build


                      Design-Bid-Build Project
                        Team Relationship
         Contract                                     Contract
                              Owner or
                               Agency
                                No Contractual
              Designer           Relationship    Builder

                                                               4




•DESIGN-BID-BUILD IS THE TRADITIONAL PROJECT DELIVERY SYSTEM UNDER
WHICH THE OWNER OR AGENCY HAS ONE CONTRACT FOR DESIGN AND A
SEPARATE CONTRACT FOR CONSTRUCTION
•IN DESIGN-BID-BUILD, THE OWNER OR AGENCY IS RESPONSIBLE FOR
CONTRACTING FOR AND PREPARING COMPLETE, ERROR FREE DESIGN
DOCUMENTS
•THE DESIGN DOCUMENTS BECOME PART OF A SOLICITATION FOR BIDS TO
CONSTRUCT THE FACILITY
•BIDS ARE RECEIVED FROM MULTIPLE CONSTRUCTION CONTRACTORS AND
USUALLY THE LOW BIDDING CONTRACTOR IS SELECTED TO DO THE WORK
•THERE IS NO CONTRACTUAL RELATIONSHIP BETWEEN THE DESIGN
CONTRACTOR AND THE BUILDING CONTRACTOR
•THE OWNER OR AGENCY WARRANTS TO THE BUILDING CONTRACTOR THAT THE
DESIGN DOCUMENTS ARE COMPLETE AND ERROR-FREE
•SINCE ERROR FREE DOCUMENTS ARE IMPLAUSIBLE, CHANGES THAT ARISE
DURING CONSTRUCTION DUE TO ERRORS AND OMISSIONS IN THE DOCUMENTS
ARE THE OWNERS RESPONSIBILITY. THIS COMMONLY LEADS TO CHANGE
ORDERS AND SCHEDULE CHANGES THAT ADD COST AND TIME TO THE
CONSTRUCTION CONTRACT.




                                                                     4
                                   Design-Bid-Build

     Project Start                                              Substantial Completion
         Owner/Agent
           Select Designer
                             Owner/Agent

                                 Design    Owner/Agent

                                           Select Builder
                                                            Builder

                                                            Build




                         Design-Bid-Build Timeline                             5




•SHOWN HERE IS THE TYPICAL SEQUENCE OF EVENTS FOR A DESIGN-BID-BUILD
CONTRACT.
•THE OWNER OR AGENT FIRST SELECTS AND CONTRACTS WITH A DESIGNER.
•FOR THE AIR FORCE, THE DESIGNER IS USUALLY PRE-QUALIFIED UNDER AN
INDEFINITE QUANTITY INDEFINITE DELIVERY TYPE CONTRACT SO A SEPARATE
SOLICITATION IS NOT REQUIRED
•THE DESIGNER THEN PREPARES THE DESIGN DOCUMENTS FOR THE FACILITY
•NEXT, THE OWNER OR AGENT MUST PREPARE A BID PACKAGE AND SOLICIT FOR
BIDS TO BUILD THE FACILITY
•SEVERAL CONTRACTORS MAY BID ON THE PROJECT AND THE OWNER OR AGENT
USUALLY SELECTS AND CONTRACTS WITH THE CONTRACTOR WITH THE LOWEST
BID.
•THE OWNER TAKES POSSESSION OF THE FACILITY UPON SUBSTANTIAL
COMPLETION (THE POINT OF COMPLETION OF A PROJECT AT WHICH THE OWNER
CAN OCCUPY THE FACILITY. USUALLY ONLY SMALL ITEMS NEED TO BE
COMPLETED, FOR EXAMPLE, A FEW FINISH WORK ITEMS OR LANDSCAPING)




                                                                                         5
                          Design-Build

                    Design-Build Project Team
                          Relationship

             Owner or        Contract
                                              Designer-
              Agency                           Builder

                                         Designer
                                        and Builder
                                         Bound by
                                         Contract              6




•DESIGN-BUILD IS THE PROJECT DELIVERY SYSTEM UNDER WHICH THE OWNER
OR AGENCY HAS A SINGLE CONTRACT WITH ONE ENTITY WHICH PERFORMS
BOTH DESIGN AND CONSTRUCTION
•CONTRACTUALLY, DESIGN-BUILD OFFERS THE OWNER A SINGLE POINT OF
RESPONSIBILITY FOR BOTH DESIGN AND CONSTRUCTION SERVICES
•IN DESIGN-BUILD, THE DESIGNER-BUILDER IS RESPONSIBLE FOR PREPARATION
AND THE QUALITY OF THE DESIGN
•THIS METHOD OF PROJECT DELIVERY HAS BEEN IN EXISTENCE SINCE THE
BUILDING OF THE GREAT PYRAMIDS




                                                                        6
                                 Design-Build

     Project Start                                                     Substantial Completion
          Owner/Agent
           Writes RFP

                        Owner/Agent
                        Use RFP to Contract
                        w/Designer-
                        w/Designer-Builder
                                              Designer/Builder
                                         Designs and Builds Facility




                        Design-Build Timeline                                         7




•SHOWN HERE IS A SEQUENCE OF EVENTS FOR A DESIGN-BUILD CONTRACT.
•THE OWNER OR AGENT FIRST WRITES A REQUEST FOR PROPOSALS OR R.F.P.
•THEN SELECTS AND CONTRACTS WITH A FIRM THAT PERFORMS BOTH DESIGN
AND CONSTRUCTION.
•THE DESIGN-BUILD FIRM WORKS WITH THE OWNER AND OTHER INTERESTED
AGENCIES TO PREPARE A PRELIMINARY DESIGN TO FIRM UP REQUIREMENTS
THEN CONTINUES PREPARING DESIGN FOR THE FACILITY
•THE BUILDER MAY START CONSTRUCTION BEFORE THE DESIGN IS 100%
COMPLETE
•FOR EXAMPLE, THE DESIGN-BUILD FIRM MAY PREPARE THE SITE DESIGN, SUCH
AS ROUGH GRADING, SITE UTILITIES, ETC FOR A NEW FACILITY
•WHEN THE SITE WORK DESIGN IS AT A LEVEL OF COMPLETION TO ALLOW START
OF CONSTRUCTION, THE BUILDER MIGHT BEGIN THAT PORTION OF
CONSTRUCTION
•THE DESIGNER CONTINUES DESIGN WHILE CONSTRUCTION IS ALREADY UNDER
WAY.
•THE OWNER TAKES POSSESSION OF THE FACILITY UPON SUBSTANTIAL
COMPLETION




                                                                                                7
                              D-B Phases

          Customer Concept         Write           Request for
           Document (CCD)      Performance        Proposal (RFP)
              With 1391         Specs (PS)      include CCD & PS



                     D-
              Select D-B                D-
                               Evaluate D-B                    D-
                                               Solicit RFP for D-B
              Contractor        Proposals            Contract


            D-B Conducts       D-B Facility        Beneficial
           Design Charrette    Construction        Occupancy


            Post Occupancy     Construction     Commission and
              Evaluation        Closeout        Train Operators      8




•CUSTOMER CONCEPT DOCUMENT – PREPARED BY THE CUSTOMER/AGENCY
WITH A DESIGN CHARRETTE; PURPOSE IS TO DEVELOP THE 1391 APPROVAL
DOCUMENT OUTLINING THE SCOPE AND COST OF THE PROJECT
•PERFORMANCE SPECS – WRITTEN BY IN-HOUSE RESOURCES OR (USUALLY) BY
A/E CONTRACT.
•RFP DEVELOPMENT – INCLUDES THE CCD WITH 1391 AND PERFORMANCE SPECS.
THE RFP IS USED TO OUTLINE FOR THE D-B PROPOSERS HOW THE FACILITY WILL
PERFORM AND WHAT THE CUSTOMER WANTS TO CONTROL IN THE DESIGN FOR
THE NEW FACILITY.
•CONTRACTING, PROJECT MANAGER & CUSTOMER REPRESENTATIVES EVALUATE
AND SCORE THE D-B PROPOSALS.
•SELECTED D-B CONTRACTOR CONDUCTS A DESIGN CHARRETTE WITH
CUSTOMER, DESIGN TEAM, CONSTRUCTION TEAM AND CUSTOMER
REPRESENTATIVES TO FIRM UP PROPOSAL AND DEVELOP CUSTOMER “BUY-IN”.
•D-B CONTRACTOR STARTS CONSTRUCTION. FOR FAST TRACK D-B,
CONSTRUCTION STARTS BEFORE DESIGN FOR THE ENTIRE FACILITY IS
COMPLETE.
•BENEFICIAL OCCUPANCY – WHEN THE FACILITY IS COMPLETE ENOUGH FOR THE
CUSTOMER TO MOVE IN AND BEGIN USING IT. FINAL PUNCH-LISTS MAY NOT HAVE
BEEN COMPLETED YET.
•EQUIPMENT COMMISSIONING – THE EQUIPMENT IS TUNED AND OPERATIONALLY
TESTED. FACILITY MAINTAINERS ATTEND CLASSES PROVIDED BY THE D-B
CONTRACTOR TO LEARN HOW TO OPERATE AND MAINTAIN THE FACILITY
SYSTEMS.
•CONSTRUCTION CLOSEOUT – CONSTRUCTION IS ENTIRELY COMPLETE, ALL
OUTSTANDING BILLS ARE PAID, TRAINING IS COMPLETE, ANY CLAIMS ARE
RESOLVED.
•POST OCCUPANCY EVALUATION – USUALLY CONDUCTED 12 MONTHS AFTER
BENEFICIAL OCCUPANCY TO EVALUATE UTILITY SYSTEMS PERFORMANCE AND
CUSTOMER SATISFACTION. LESSONS LEARNED APPLIED TO OTHER SIMILAR          8
                                        Trends
                       Market Penetration of Major Project Delivery Systems
              90%
                                                        DESIGN-BUILD
                         82%                            TRADITIONAL DESIGN BID BUILD
              80%

                                  72%
              70%
                                           65%
              60%
                                                    54%
              50%                                               50%                    50%
                                                                          45%
              40%                                               40%                    40%
                                                    35%
              30%
                                           25%
              20%
                                  15%
              10%
                         5%
              0%
                      1985     1990     1995     2000        2005      2010       2015

                    Projected Growth of Design-Build As Compared to Design-                  9
                                     Bid-Build (DBIA 2005)



•IN THE U.S. PUBLIC SECTOR, THE FEDERAL GOVERNMENT AND MANY STATES
AND LOCAL GOVERNMENTS EMPLOY DESIGN-BUILD CONTRACTING FOR A
SIGNIFICANT PERCENTAGE OF THEIR BUILDING PROGRAMS.
•IN THE SEVEN YEARS FROM 1986 TO 1992, TOTAL USE OF DESIGN BUILD IN THE
PUBLIC AND PRIVATE SECTORS GREW 172% ACCORDING TO ENGINEERING
NEWS-RECORD REPORT OF 1993.
•THIS CHART FROM THE DESIGN-BUILD ISTITUTE OF AMERICA SHOWS THE
PROJECTED TREND OF TRADITIONAL DESIGN-BID-BUILD AND DESIGN-BUILD
•THERE IS A STEADY DECLINE OF THE USE OF TRADITIONAL DESIGN-BID-BUILD
WHEN COMPARED TO DESIGN-BUILD
•BY 2010, IT HAS BEEN PREDICTED BY THE DESIGN BUILD INSTITUTE OF AMERICA
THAT THESE TWO PROJECT DELIVERY METHODS WILL BE EQUAL IN USE
•BY 2015, TRADITIONAL DESIGN-BID-BUILD IS PREDICTED TO BECOME LESS USED
THAN DESIGN-BUILD FOR PROJECT EXECUTION.
•ALSO SHOWN BUT NOT DISCUSSED TODAY IS CONSTRUCTION MANAGEMENT AT
RISK – A METHOD UTILIZED FOR ABOUT 10% (OR LESS) OF PROJECTS.




                                                                                                 9
                            Comparison

                                                 Design-Build vs
                                                 Design-Bid-Build

                         METRIC                   Design-Build is:
                          Unit Cost                      6.1% Lower
                     Construction Speed                  12% Faster

                       Delivery Speed                   33.5% Faster
                        Cost Growth                        5% Less
                      Schedule Growth                     11% Less


                           (Data Source: Project Delivery Institute, 1999)   10




•THE BOOKLET, ‘SELECTING PROJECT DELIVERY SYSTEMS’, PUBLISHED BY THE
PROJECT DELIVERY INSTITUTE COMPARES TRADITIONAL D-B-B WITH D-B.
•IN SUMMARY, THE BOOKLET SHOWS THAT ON AVERAGE, UNIT COSTS ARE ABOUT
6% LOWER FOR D-B VS D-B-B,
•D-B PROJECTS ARE CONSTRUCTED ABOUT 12% FASTER THAN D-B-B,
•D-B PROJECTS ARE DELIVERED APPROXIMATELY 33% FASTER THAN D-B-B.
•ADDITIONALLY, D-B PROJECTS HAVE ABOUT 5% LESS COST GROWTH AND ABOUT
11% LESS SCHEDULE GROWTH THAN TRADITIONAL D-B-B PROJECTS.




                                                                                  10
                           Performance

           D-B consistently provides better
           performance in these areas of concern:
            – Ease of startup, lack of call backs
            – Low operation and maintenance cost
            – Quality of envelope (roof, structure, and
              foundation)
            – Quality of interior space and layout and quality
              of process equipment and layout.

                      (Data Source: Project Delivery Institute, 1999)
                                                                        11




•IN TERMS OF QUALITY, D-B HAS BEEN SHOWN TO CONSISTENTLY PROVIDE
BETTER PERFORMANCE IN THESE AREAS OF CONCERN: EASE OF STARTUP, LACK
OF CALL BACKS, LOW OPERATION AND MAINTENANCE COST, QUALITY OF
ENVELOPE (ROOF, STRUCTURE, AND FOUNDATION), QUALITY OF INTERIOR SPACE
AND LAYOUT AND QUALITY OF PROCESS EQUIPMENT AND LAYOUT.




                                                                             11
                                     Trust
            The decision to use D-B-B or D-B requires:
             – A change in the level of trust between the
               Owner/Agent and the Contractor community
            D-B-B affords a large degree of control of the
            design to the owner and is a process that is
            familiar
             – Uses prescriptive specs and drawings
            D-B requires the Owner to relinquish much of
            that control and trust that the D-B contractor will
            provide a quality facility on time and in budget
             – Uses performance based specs and little or no
               drawings in the RFP
                                                               12




THE DECISION TO USE D-B-B VS D-B REQUIRES:
•A CHANGE IN THE LEVEL OF TRUST BETWEEN THE OWNER/AGENT AND THE
CONTRACTOR COMMUNITY
•D-B-B AFFORDS A LARGE DEGREE OF CONTROL OF THE DESIGN FOR THE
OWNER AND IS A PROCESS THAT IS FAMILIAR.
•D-B REQUIRES THE OWNER TO RELINQUISH MUCH OF THAT CONTROL AND
TRUST THAT THE D-B CONTRACTOR WILL PROVIDE A QUALITY FACILITY ON TIME
AND IN BUDGET.




                                                                        12
        Specs-Prescriptive vs
            Performance
Performance specifications FRAME the problem,
the design-builder SOLVES the problem
Performance specs shift risk to builder
Owner/Agent describes how the facility must
perform when completed
D-B contractor determines how to build it




                                          13




                                                13
                    Specs-Prescriptive vs
                        Performance
           Prescriptive Specifications:
            – Exterior Skin: ASTM C 216 modular face brick, Type
                         ladder-                   8”
              S mortar; ladder-type reinforcing at 8” vertically, ties
                 24”
              @ 24” o.c.
           Performance Specifications:
            – Exterior Walls:
                 Meet Installation Architectural Compatibility Standards
                         U-
                 Overall U-value: Minimum 0.12
                 Overall STC not less than 43
                 Withstand 35 psf pressure, max 1/360 deflection
                                                                           14




•WITH PRESCRIPTIVE SPECS, THE OWNER/AGENT DETAILS THE WALL
CONSTRUCTION FOR THE BUILDER.
•WITH PERFORMANCE SPECS, THE OWNER/AGENT TELLS HOW THE WALL IS
EXPECTED TO PERFORM AND LEAVES THE DETAILS OF CONSTRUCTION UP TO
THE BUILDER.




                                                                                14
                                Incentive

           What is D-B Contractor Incentive to deliver
           a quality facility, on time and in budget?
            – REPUTATION
            – REPEAT CUSTOMERS AND….




                                                               15




WHAT IS THE D-B CONTRACTORS’ INCENTIVE TO PROVIDE A QUALITY FACILITY ON
TIME AND IN BUDGET?
HIS REPUTATION IS ON THE LINE, HE WANTS YOUR REPEAT BUISNESS SO HE CAN
CONTINUE TO MAKE MORE MONEY!




                                                                          15
           Cost and Facility
              Program
In D-B, cost parameters of the project are
finalized during the RFP/D-B contract
process, NOT after the design process is
complete (as in design-bid-build)!
Program firmed up during Charrette after
contract award; cost is validated
Contractor may lead the design team
Architects and engineers treated as equals,
not as subcontractors
                                       16




                                              16
                                        Intense Design Effort
                                              Upfront
                                                                But,
                                                                 In D-B, cost is set.
                                                                  in D-B-B, cost and
                                                                D-B contractor firms
                                                                 design not finalized
                                                                up CCD parameters
            DESIGN EFFORT/$$



                                                                   until 100% design
                                                                 during a Charrette
                                                                       completion
                                                                                                DBB




                                                                                                    DB
                                              In D-B-B, CCD
                               DESIGN                                                   CONST START
                                             parameters also
                                           firmed up during a
                                                 Charrette
                                                                                               17




•IN DESIGN-BUILD, THE DB TEAM CONDUCTS A DESIGN CHARRETTE VERY SOON
AFTER THE CONTRACT IS AWARDED.
•THE FACILITY BUILDER EITHER LEADS THE DESIGN CHARRETTE OR
PARTICIPATES IN THE CHARRETTE
•THE FUNDAMENTAL DESIGN PARAMETERS ARE SET
•THE COST IS ALREADY SET BECAUSE THE DESIGN/BUILD TEAM BASED THEIR
COSTS FOR THE FACILITY ON THE PERFORMANCE SPECS AND CCD INCLUDED IN
THE RFP
•WITH DESIGN BID BUILD, THERE IS ALSO A DESIGN CHARRETTE, HOWEVER, THE
PROJECT COST IS NOT SET UNTIL THE DESIGN IS 100% COMPLETE AND THE
PROJECT IS READY TO ADVERTISE FOR CONSTRUCTION.




                                                                                                         17
                                  Late Decisions Cost!

           $$ COST OF CHANGE $$




                                  Finalize decisions
                                        HERE!




                   RFP             DESIGN          CONST       COMPL
                                                       PHASE     18




•DESIGN DECISIONS NEED TO BE MADE DURING PREPARATION OF THE RFP AND
THEN DURING THE DESIGN CHARRETTE AFTER THE DESIGN-BUILD CONTRACT
HAS STARTED- NOT LATER!
•COSTS ESCALATE DRAMATICALLY FOR DECISIONS AFTER START OF
CONSTRUCTION




                                                                       18
                    Some Keys To Success
                      For Design-Build
           Create a collaborative working environment early
           in the project
           Work with pre-qualified Contractors with pre-
           qualified project teams
           Foster good owner-agent/project team
           communication
           Bring builder in early, even before design starts
           Solidify the Program, Determine Performance
           Criteria and MAKE DECISIONS EARLY!
                                                              19




•CREATE A COLLABORATIVE WORK ENVIRONMENT: RESEARCH AND PRACTICAL
EXPERIENCE SHOWS THAT GOOD COMMUNICATION AND CHEMISTRY AMONG KEY
TEAM PLAYERS HAS AN INFLUENCE ON HOW THEY INTERACT THROUGHOUT THE
LIFE OF THE PROJECT. WORK WITH THE DESIGNERS AND BUILDERS TO DEVELOP
A SOLID PROGRAM THAT IS WELL UNDERSTOOD BY ALL PARTIES INVOLVED IN
THE PROJECT.
•WORKING WITH PRE-QUALIFIED CONTRACTORS WHO HAVE PREVIOUS
EXPERIENCE WITH SIMILAR FACILITY TYPES IS IMPORTANT. THE CONTRACTOR’S
EXPERIENCE WORKING WITH THE OWNER/AGENCY, CONTRACTOR’S
GEOGRAPHIC LOCATION AND PROVEN ABILITY TO PROVIDE GOOD DESIGN AND
CONSTRUCTION ARE IMPORTANT FACTORS.
•AS WITH ANY DESIGN AND CONSTRUCTION PROJECT, COMMUNICATION IS
CRITICAL TO TEAM PERFORMANCE. WHEN THERE ARE DESIGN CHARRETTES AND
MEETINGS, THE AGENT OR AGENT REPRESENTATIVES NEED TO ASSURE THAT
OTHER BASE LEVEL ORGANIZATIONS THAT ARE INVOLVED IN THE PROJECT
ATTEND. COMM, SECURITY FORCES, ANTI-TERRORISM/FORCE PROTECTION
EXPERTISE, WEAPONS SAFETY, GROUNDS SAFETY ARE JUST A FEW OF THE
EXAMPLES OF IMPORTANT ENTITIES TO PARTICIPATE IN DEVELOPING THE
PROJECT.
•BRING THE BUILDER INTO THE PROCESS AS EARLY AS POSSIBLE, PREFERABLY
BEFORE ANY DESIGN HAS BEEN DONE ON THE PROJECT. THE BUILDER SHOULD
BE EXPECTED TO PARTICIPATE IN THE PRELIMINARY DESIGN CHARRETTE.
•SOLIDIFY THE PROGRAM: THE OWNER/AGENT SHOULD USE A DESIGN
CHARRETTE TO WORK WITH THE DESIGNER-BUILDER TO DEVELOP A
PRELIMINARY DESIGN. THE DD FORM 1391 IS THE PRIMARY SOURCE OF DATA
FOR PROJECT COST AND SCOPE. THE CHARRETTE WILL FURTHER SOLIDIFY THE
SCOPE AND COST FOR THE PROJECT. MAKE DESIGN DECISIONS EARLY
STARTING WITH THE CCD, RFP AND CHARRETTE. BE PREPARED TO LIVE WITH
THOSE DECISIONS.

                                                                        19
Questions?




             20




                  20