Design-Build Effectiveness Study

As Required by TEA-21 Section 1307(f)
Final Report
Prepared for:
USDOT - Federal Highway Administration
January 2006

TABLE OF CONTENTS

1. INTRODUCTION
   1. Background
   2. Purpose and Objectives
   3. Scope
   4. Approach
   5. Design-Build Program and Project Surveys
      1. Design-Build Program Survey
      2. Design-Build Project Survey
      3. Comparable Design-Bid-Build Project Survey
      4. Survey Distribution and Response Rates by States Participating in the SEP-14 Program
   6. Analysis Methodologies
   7. Research Team
   8. Report Outline
2. DESIGN-BUILD PROJECT DELIVERY
   1. Definition of Design-Build Project Delivery
   2. Historical Perspective on Infrastructure Project Delivery
   3. Re-Emergence of Design-Build Project Delivery
   4. Design-Build Issues
      1. Proclaimed Advantages of Design-Build Project Delivery
      2. Proclaimed Disadvantages of Design-Build Project Delivery
   5. Evaluation Criteria for Assessing Design-Build Project Delivery
   6. Results of Prior Studies
   7. Design-Build Contracting Final Rule
   8. Section 1503 of Safe, Accountable, Flexible Efficient, Transportation Equity Act: A Legacy for Users
3. SPECIAL EXPERIMENTAL PROJECT NUMBER 14 INNOVATIVE CONTRACTING
   1. SEP Program Background
   2. SEP Program Descriptions
   3. SEP-14 Design-Build Program Overview
      1. Distribution of SEP-14 Projects by Type and Size
      2. Distribution of SEP-14 Projects by State and Timeframe
      3. Major SEP-14 Design-Build Program States
4. FINDINGS
   1. Overview of SEP-14 Design-Build Program
      1. Extent of Design-Build Program
      2. Contracting Methods Used by States with Design-Build Programs
      3. Procurement Methods Used for Design-Build Projects
      4. Payment Methods Used by States with Design-Build Programs
      5. Suitability of Design-Build Project Delivery
      6. Legislative and Policy Requirements
      7. Adequacy of Design-Build Procurement and Contract Administration Procedures
   2. Effects of Design-Build Contracting on Project Duration, Cost, and Quality
   3. Effects of Design-Build Contracting on Project Duration
      1. Estimated Impacts of Design-Build on Project Duration
      2. Planned Versus Actual Project Duration
      3. Design-Build Versus Design-Bid-Build Project Duration
   4. Effects of Design-Build Contracting on Project Costs
      1. Estimated Impacts of Design-Build on Project Cost
      2. Reported Impacts of Design-Build on Project Cost
      3. Comparison of Reported Project Cost Change between Design-Build and Design-Bid-Build Project Delivery
      4. Causes of Project Cost Changes
      5. Change Orders and Claims
   5. Effect of Design-Build Contracting on Project Quality
      1. Estimated Impacts of Design-Build on Project Quality
      2. Contracting Agency Satisfaction
      3. Experience of the Project Delivery Team
      4. Other Project Delivery Success Criteria
   6. Appropriate Level of Preliminary Design for Design-Build Procurements
   7. Impact of Design-Build Contracting on Small Businesses
      1. Size of Prime Contractors and Subcontractors for Design-Build versus Design-Bid-Build Projects
      2. Limits on the Extent of Design-Build Contract Value Held by Prime Contractor
      3. Use of Direct Hire Versus Subcontractor Resources for Design-Build Contracts
      4. Prequalification Requirements
      5. Extent of Competition for Design-Build Projects versus Design-Bid-Build Projects
   8. Assessment of Subjectivity Used in Design-Build Contracting
      1. Design-Build Project Designation Criteria
      2. Design-Build Contract Award Criteria
   9. Other Design-Build Contract Features
      1. Design-Build Contract Pricing Approaches
      2. Design-Build Contract Specifications
      3. Design-Build Contract Incentives and Disincentives
      4. Extended Warranties in Design-Build Contracts
5. CONCLUSIONS AND RECOMMENDATIONS
   1. Agency Suggestions for Improving Design-Build Programs
      1. Design-Build Program Lessons Learned Based on Project Surveys
      2. Design-Build Program Improvements Based on Program Surveys
   2. Conclusions
      1. Impacts on Project Timeliness
      2. Impacts on Project Cost
      3. Impacts on Project Quality
      4. Level of Design Completed Prior to Design-Build Contract
      5. Impacts on Small Business
      6. Subjectivity of Design-Build Contracting
      7. Other Considerations
   3. Recommendations
   4. Closing Remarks

APPENDICES

1. GLOSSARY OF TERMS
2. PARTICIPATING SEP-14 PROGRAM AGENCIES AND CONTACT INFORMATION
3. SEP-14 PROJECTS
   1. List of Total and Surveyed SEP-14 Projects
   2. List of Design-Bid-Build Comparable Projects
4. DISTRIBUTION OF SEP-14 PROJECTS INCLUDED IN STUDY
5. SURVEY INSTRUMENTS AND RELATED DOCUMENTATION
   1. Email Cover Letter
   2. Letter of Assistance
   3. Survey Instructions
   4. Survey Introduction
   5. Program Survey
   6. Project Survey
6. REVIEW OF COMPLETED SEP-14 PROJECT EVALUATION REPORTS
   1. Preliminary Results
   2. Conclusions
   3. List of SEP-14 Project Evaluation Reports
7. BIBLIOGRAPHY