Purpose
The purpose of this procedure is to define the design/build (DB) project delivery method. Design/Build is an alternative form of project delivery method which has a single contract for both design and construction. Forms of the DB methodology have been used in certain situations by the Bureau of Engineering (BOE).
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RESPONSIBILITIES
Project Manager: The Project Manager (PM) is responsible for determining the most efficient project delivery method for the project. When selecting the design/build method, the PM must consult with the Program Manager and obtain concurrence.
PROCEDURE
DB is an alternative delivery method used to offer greater flexibility in both the final design and the construction of a project. With a single contract for both design and construction, DB allows a contractor and design team to finalize the design of a project and determine through the design process the best means and methods for construction.
The basic principle of the DB methodology is to place full or partial responsibility for both design and construction on a single entity consisting of a construction contractor that brings on a design firm or a joint collaboration between a construction firm and a design firm. Some of the larger design firms have formed construction departments that specialize in the DB approach.
The level of design undertaken by the Owner/Client can vary from essentially none to perhaps 75% design with only design details left to the DB contractor. On one extreme, some performance based DB contracts provide essentially no design and instead specify only the performance to be achieved by the final facility. An example would be an agency that desires to build a new wastewater treatment plant and issues performance based DB documents that specify the flow characteristics and final effluent standards that must be met. The DB contractor is flexible to design and build to these performance standards. Obviously, the Owner’s risk increases substantially unless Manuals of Practice or other design standards can be enforced along with maximum limits on long-term Operations and Maintenance (O&M) costs. On the other extreme, the Owner/Client could prepare 50% to 75% design documents and only require that the DB contractor provide the final details along with construction. The point is that there are many variations on the DB methodology.
In the most typical use of the DB methodology, the Owner/Client prepares plans and specifications for the facility to about the 25% to 30% level. This is sometimes called a “bridging” design. The bridging design is sufficient to show the basic elements of the desired facility and may also contain some performance based aspects.
Often stated advantages of the DB method include reduced project delivery time, a single point of accountability for the project, possible savings on total project cost due to reduced delivery time, earlier detection and correction of design problems, and the fostering of innovative solutions. Reduction in project delivery time seems to be a real advantage that can be quantified.
The disadvantages of the DB process are limited design input by the Owner/Client and potential conflicts of interest driven by the cost-saving measures. This is a very important aspect to consider if there are specific design criteria required by the Owner/Client. As the contractor is responsible for design and construction of the project, the PM needs to fully engage and collaborate with the contractor throughout the design process. The Owner/Client must understand that the design changes cannot be made typically past 75% and the lack of direct design involvement is to gain other advantages offered by the DB methodology.
Historically, the BOE used the DB methodology in situations where the Bureau prepared plans and worked with in-house construction forces, such as General Services, Sanitation, or Street Services, to construct the project. However, as times advanced, the BOE began to utilize the DB method in the more standard format where a DB entity was sought through the Request for Bids (RFB) process and then a contractor, in conjunction with the design firm, would complete the design and ultimately construct the given design of early elements, such as foundations, while design continued on later elements. Thus, design and construction could overlap which provided the schedule benefits of the DB methodology. Some of the Bureau’s specialty contracts, such as the Cisco contract described in Chapter 23, have also used the DB methodology.
The general DB Standards for the BOE will follow the steps listed below. However, this is by no means the only DB procedure that can be utilized. It is always the PM’s responsibility to determine the best DB method on a project-by-project basis. For most projects that will utilize the DB project delivery method, the contract will be established using a two-phase design-build selection procedure:
1. The first phase of the process is the Request for Qualifications (RFQ) to solicit qualifications in the form of a Statement of Qualifications (SOQ). The RFQ provides the information necessary to prepare and submit qualifications for consideration and initial ranking by the City. Based on the initial ranking, the City will select the highest ranked qualified respondents to enter the second phase of the process. This first phase of the process does not include any dollar amount as part of the SOQ. This portion of the process is only based on the qualifications of the DB entities.
2. The second phase of the process is the Request for Bids (RFB). The pre-qualified respondents from the first phase will be requested to submit bid proposals to the City based on 30% (typically) bridging documents prepared by the City. A single design-build contract will be awarded to the lowest responsible, responsive bidder for all design and construction work. The design and construction effort for this contract will be all-inclusive, based on the design criteria developed by the City as provided in the RFQ and the RFB.
It is critical, when utilizing the DB method, that extensive and thorough evaluation is performed by the PM and the selection team in qualifying and ranking the SOQs to ensure that the selected respondents are capable of completing the project within the established budget and schedule.
Once the bidder is selected, the City is responsible for overseeing all aspects of the project from design through construction, monitoring the schedule and budget closely, and coordinating with the project team to ensure that the final design meets the city requirements and policies.
City Charter Section 371(e) states that,
“Consistent with competitive bidding requirements, design-build or other appropriate project delivery systems may be used when justified by the type of project and approved by the contracting authority.”
For awards to DB contractors following an RFP/competitive sealed proposal, then qualitative best-value like consideration may be part of the evaluation process. Award to a DB contractor may be made pursuant to this alternative method to a proposer whose final proposal is higher as to the ultimate cost to the City.
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