Definition
Design-build is a project delivery method that combines two, usually separate services into a single contract. With design-build procurements, owners execute a single, fixed- fee contract for both architectural/engineering services and construction. The design-build entity may be a single firm, a consortium, joint venture or other organization assembled for a particular project. |
| |
| Design-Build Enhancements with SAFETEA-LU |
Section 1503 of SAFETEA-LU eliminates the $50 million floor on the size of contracts that can use design-build contracting without special approval.
SAFETEA-LU also eliminates an obstacle contained in FHWA’s existing design-build rule, relating to the ability of transportation agencies to take certain preliminary actions prior to receipt of NEPA approval for a project. Specifically, the FHWA rule prohibited agencies from issuing requests for proposals and entering into contracts until after issuance of NEPA approval. This has been a particular problem for public-private partnerships where the expectation is that the private sector partner will be involved in the project definition process.
Section 1503 directs the Secretary to revise the regulations applicable to design-build contracts to permit transportation agencies to proceed with certain actions relating to design-build contracts, prior to receipt of final NEPA approval. Specifically, the regulations may not require compliance with section 102 of the National Environmental Policy Act of 1969 prior to any agency: (a) issuing requests for proposals; (b) proceeding with awards of design-build contracts; or (c) issuing notices to proceed with preliminary design work under design -build contracts.
FHWA posted a notice of proposed rulemaking (NPRM) and request for comments on its revised design-build contracting regulations in the May 25, 2006 issue of the Federal Register.
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=2006_register&docid=fr25my06-23
Comments were due on July 24, 2006. |
| |
Responsibilities
With design-build delivery, the design-builder assumes responsibility for the majority of the design work and all construction activities, together with the risks associated with providing these services for a fixed fee. When using design-build delivery, owners usually retain responsibility for financing, operating and maintaining the project. While design-build procurement has been more prevalent in private sector work, it is also gaining acceptance among many public sector transportation infrastructure owners. View Table (pdf) |
| |
Project Definition
With design-build procurement, the owner must complete a certain amount of preliminary engineering and project definition in order to be able to prepare bid documents. While the level of definition is not fixed, experience in the highway sector suggests that preliminary design efforts of 10 to 15 percent completion are usually adequate. A project that is too advanced (for example, fully designed) may be unattractive since there will be minimal opportunity for the private sector to apply innovative methods to reduce cost and schedule. A project that still is at a nebulous stage with unanswered questions regarding scale, alignment and other project features will be difficult to structure on a design-build basis because the potential private sector partner will be unable to reliably assess schedule and costs. |
| |
Procurement Practices
Customary practice with design-build procurements is to rely upon best value. This approach, which is encouraged by Federal guidelines, takes into account both the technical capabilities and qualifications of the design-build team, and cost. There is no universally accepted approach for determining best value, with the request for proposal usually specifying the relationship between technical factors and price. |
| |
| Resource Documents |
- ACEC Design-Build Handbook
- DBIA Publications
- FTA Guidance on Design-Build
- 50-State Survey of Transportation Agency Design-Build Authority
Prepared by Brandon Davis and Nancy Smith of Nossaman Guthner Knox & Elliott,LLP, this survey identifies legislation permitting agencies to enter into design-build contracts and exclusive development agreements to develop transportation infrastructure. The survey reflects legislative developments through April 2006 April 30, 2006.
- FHWA Design-Build Effectiveness Study Final Report
The final report to Congress on the Effectiveness of Design-Build project delivery was officially sent to Congress by Secretary Mineta in January 2006. This report was prepared in response to Section 1307 (f) of TEA-21. It is the first comprehensive assessment of the design-build approach to project delivery involving both program-level and project-specific data from a sample of projects developed under the SEP-14 Program. The report is intended to inform current and prospective users of alternative project delivery approaches about the relative merits of design-build versus the more traditional design-bid-build contracting process, and the challenges and opportunities associated with implementing a design-build program.
|
| Projects |
|
| Links |
|
|
|
|
