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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

ALTERNATIVE CONTENT FOR IMAGES

Exhibit III.3

Number of Design-Build Projects by Major State in SEP-14
 FloridaMichiganOhioPennsylvania
Road - New/Widen24135
Road - Rehabilitate/ Reconstruct0197
Road - Resurface/Renewal9141
Bridge/Tunnel16163234
ITS7100
Other101112

Exhibit III.4

Value of Design-Build Projects by Major State in SEP-14 (in millions of dollars) *
 FloridaMichiganOhioPennsylvania
Road - New/Widen521.82641314.983.3830.3
Road - Rehabilitate/ Reconstruct049.381.66220339.7
Road - Resurface/Renewal29.5520537.623.6942.6
Bridge/Tunnel357.23739331.47105.713899102.6
ITS19.2645279832.800
Other73.060462.421.73360.2

Exhibit III.5

Percentage of Projects by Number and Dollars Expended by Type of Project by Major State in SEP-14
 Florida - #Florida - $Michigan - #Michigan - $Ohio - #Ohio - $Pennsylvania - #Pennsylvania - $
Road - New/Widen24521.826413114.9383.38530.3
Road - Rehabilitate/ Reconstruct00149.3981.662203739.7
Road - Resurface/Renewal929.55205317.6423.69412.6
Bridge/Tunnel16357.2373931631.4732105.71389934102.6
ITS719.26452798132.80000
Other1073.0604612.41121.733620.2

Exhibit IV 1

Design-Build Projects as a Proportion of Total Projects
New/Widen6.0%
Rehabilitate/Reconstruct1.5%
Resurface1.4%
Bridge/Tunnel4.0%
ITS8.6%
Total2.8%

Exhibit IV 2

Design-Build Project Costs as a Proportion of Total Project Costs
New/Widen32.0%
Rehabilitate/Reconstruct5.6%
Resurface4.3%
Bridge/Tunnel50.2%
ITS20.8%
Total25.5%

Exhibit IV 3

Average Project Costs by Delivery Method
D-B Projects$27.7 M
Non-D-B Projects$2.4 M
All Projects$3.1 M

Exhibit IV 4

Contracting Methods Used for Agency Programs
IN-HOUSE (FORCE ACCOUNT)3.0%
DBB CONTRACT84.4%
DBB WARRANTY CONTRACT3.4%
STANDARD DESIGN-BUILD CONTRACT9.1%
DESIGN-BUILD WARRANTY CONTRACT0.2%
DESIGN-BUILD-OPERATE-MAINTAIN CONTRACT0.0%
DESIGN-BUILD-OPERATE-MAINTAIN-FINANCE CONTRACT0.0%
PERFORMANCE-BASED ASSET MANAGEMENT CONTRACT0.0%
JOB ORDER CONTRACT (INDEFINITE QUANTITY)0.0%

Exhibit IV 6

Procurement Methods Used for Design-Build Projects
LOW BID56.0%
ALTERNATIVE BIDS/DESIGNS3.9%
MULTI-PARAMETER BIDDING2.2%
BEST-VALUE37.9%

Exhibit IV 8

Payment Methods Used for Design-Build Projects
Unit Price13.1%
Cost Plus0.0%
Lump Sum86.9%
Time & Material0.0%
Other0.0%

Exhibit IV 10

Perceived Suitability of Design-Build Project Delivery
 New/WidenRehab/ReconstructResurfaceBridge/TunnelITS
Micro2.32.2 2.7 
Small3.43.22.13.72.7
Medium4.54.32.84.83.8
Large5.04.73.55.14.3
Mega5.45.1 5.5 

Exhibit IV 11

Likely Future Use of Design-Build Project Delivery
(Scale: 1 - None; 6 - Significant)
New/Widen3.7
Rehab/Reconstruct3.1
Resurface1.9
Bridge/Tunnel2.8
ITS2.9

Exhibit IV 20

Reported Changes in Design-Build Project Costs after Contract Execution
Design-Builder Design Cost Changes6.7%
Design-Builder Construction Cost Changes5.1%
Agency Contract Administration and Inspection Cost Changes-9.0%
Total Cost Changes3.2%

Exhibit IV 22

Comparison of Actual Reported Changes in Project Costs after Contract Execution for Similar Design-Build and Design-Bid-Build Projects
 D-B-B Contract GrowthD-B Contract Growth ((Final-Award)/Award)
Total Project Cost Changes4.3%6.0%
Agency Administrative Cost Changes6.9%0.4%
Construction Cost Changes4.3%8.1%
Design Cost Changes-1.0%2.2%

Exhibit IV 23

Causes of Cost Changes for Design-Build Projects
Owner Required Additions or Subtractions3.2
Design-Builder or Contractor Suggested Additions or Subtractions2.4
Differing Site Conditions2.2
Events Not Controllable by Sponsor or Contractor (weather, etc.)2
Third Party Additions or Subtractions1.9
Unit Price Adjustment Clauses1.8
Third Party Delays1.8
Sponsor Delays1.7
Contractor Delays1.6
Poor Design1.6

Exhibit IV 24

Causes of Cost Changes for Similar Design-Build and Design-Bid-Build Projects
 Design-BuildDesign-Bid-Build
Owner Required Additions or Subtractions3.63.8
Design-Builder or Contractor Suggested Additions or Subtractions3.02.5
Differing Site Conditions2.63.1
Events Not Controllable by Sponsor or Contractor (Weather, etc.)2.31.9
Third Party Additions or Subtractions2.31.6
Unit Price Adjustment Clauses2.12.2
Third Party Delays2.41.1
Sponsor Delays1.61.2
Contractor Delays1.91.3
Poor Design1.62.2

Exhibit IV 28

Contracting Agency Satisfaction Ratings of Design-Build Projects
(Scale: 1 - Poor; 6 - Superior)
Conformance with Standards/Specifications4.8
Compliance with Warranty Provisions4.7
Overall Sponsor Satisfaction4.7

Exhibit IV 30

Comparison of Contracting Agency Satisfaction Ratings between Similar Design-Build Projects and Design-Bid-Build Projects
(Scale: 1 - Poor; 6 - Superior)
 Conformance with standards/specificationsCompliance with warranty provisionsOverall sponsor satisfaction
Design-Build4.64.34.6
Design-Bid-Build4.43.04.6

Exhibit IV 31

Perceived Experience among Stakeholder Groups for Design-Build Projects
(Scale: 1 - None; 6 - Significant Experience)
Agency/Owner3.0
Design-Builder3.0
Designer3.3
Builder/Contractor3.2
Subconsultant(s)2.4
Subcontractor(s)2.1
Finance (bond underwriter)3.8
Insurance (Surety Vendor)3.8

Exhibit IV 32

Perceived Experience among Stakeholder Groups for Similar Design-Build and Design-Bid-Build Projects
 Agency/OwnerDesign-BuilderDesignerBuilder/ContractorSubconsultant(s)Subcontractor(s)Finance (bond underwriter)Insurance (Surety Vendor)
Design-Bid-Build5.84.74.75.54.94.55.45.4
Design-Build2.93.13.13.22.62.43.94.0

Exhibit IV 34

Percent Completion of Selected Functions at Design-Build Project Award
 0%5%15%25%35%45%55%65%75%85%95%
ROW Acquisition800101101352
Permit Clearance603101103843
Environmental Clearance400000011160
Design7148245241210

Exhibit IV 35

Average Percent Completion of Selected Functions at Design-Build Project Award
Design27%
Environmental (NEPA) Clearance99%
Permit Acquisition83%
ROW Acquisition89%

Exhibit IV 36

Average Percent Completion of Selected Functions at Project Award for Similar Design-Build and Design-Bid-Build Projects
 DesignEnvironmental ClearancePermit ClearanceROW Acquisition
Design-Build37%83%84%81%
Design-Bid-Build100%100%100%100%

Exhibit IV 40

Prequalification Requirements for Design-Build Projects
No0%
Yes, general or annual prequalification21%
Yes, one step, project specific prequalification17%
Yes, two step, project specific prequalification reduced to short list48%
Other14%

Exhibit IV 42

Relative Importance of Factors Considered in Deciding Whether to Use Design-Build
(Scale: 1 - Unimportant; 6 - Extremely Important)
Urgency of Project5.6
Opportunity for Innovation4.6
Opportunity for Risk Transfer4.2
Cost of Project4.0
Quality3.9
State Program Initiatives3.9
Lack of In-House Resources3.6
Federal Program Initiatives3.0

Exhibit IV 43

Key Factors Considered in Awarding Design-Build Project Contracts
(Scale: 1 - Unimportant; 6 - Extremely Important)
Cost Only5.1
Cost & Duration4.8
Duration Only4.6
Team Reputation4.3
Quality Management Plan4.3

Exhibit IV 44

Procurement Approach of Design-Build Projects
Low Bid54%
Multi-Parameter4%
Best-Value42%

Exhibit IV 45

Best Value Procurement Evaluation Methods for Design-Build Projects
Low Bid-Meets Tech. Criteria3%
Adjusted Bid41%
Adjusted Score14%
Weighted Criteria28%
Cost-Technical Tradeoff7%
Fixed Price-Best Design7%

Exhibit IV 46

Contract Pricing Methods for Design-Build Projects
Fixed Price - Lump Sum67%
Unit Price26%
Other7%

Exhibit D-1

Distribution of the Number of SEP-14 Design-Build Projects Surveyed and Completed design-build and Design-Bid-Build Surveys
N=282
SEP-14 Projects for Completion after 2002142
Total SEP-14 Projects Completed by End of 2002140
N=140
Surveyed SEP-14 Projects without Completed Surveys17
Unsurveyed SEP-14 Projects54
Completed Surveys69
N=69
Completed Design-Build Surveys only52
Completed D-B and D-B-B Surveys17

Exhibit D-2

Distribution of the Cost of SEP-14 Design-Build Projects Surveyed and Completed design-build and Design-Bid-Build Surveys
N=282, $13.9B
SEP-14 Projects for Completion after 2002$8,425.4M
Total SEP-14 Projects Completed by End of 2002$5,526.2M
N=140, $5.5B
Surveyed SEP-14 Projects without Completed Surveys$733.9M
Unsurveyed SEP-14 Projects$347.3M
Surveyed SEP-14 Projects with Completed Surveys$4,445.0M
N=69, $4.4B
Completed D-B and D-B-B Surveys$315.3M
Completed Design-Build Surveys Only$4,129.7M

Exhibit D 3a (A series of tables rendered from a series of pie charts)

All SEP-14 Projects by Type (Percentage of Number of Projects) N=282
Bridge/Tunnel38%
Road Resurface/Renewal6%
Road Rehabilitate/Reconstruct12%
Road New/Widen28%
ITS4%
Other12%
SEP-14 Projects Completed by End of 2002 by Type (Percentage of Number of Projects) N=140
Bridge/Tunnel49%
Road Resurface/Renewal5%
Road Rehabilitate/Reconstruct18%
Road New/Widen16%
ITS4%
Other8%
SEP-14 Projects Included in Survey Sample by Type (Percentage of Number of Projects) N=86
Bridge/Tunnel36%
Road Resurface/Renewal6%
Road Rehabilitate/Reconstruct20%
Road New/Widen26%
ITS6%
Other6%
SEP-14 Projects with Completed Design-Build Surveys by Type (Percentage of Number of Projects) N=69
Bridge/Tunnel38%
Road Resurface/Renewal6%
Road Rehabilitate/Reconstruct16%
Road New/Widen29%
ITS4%
Other7%
SEP-14 Projects with Completed Design-Bid-Build Surveys by Type (Percentage of Number of Projects) N=17
Bridge/Tunnel24%
Road Resurface/Renewal6%
Road Rehabilitate/Reconstruct29%
Road New/Widen35%
Other6%

Exhibit D 3b (A series of tables rendered from a series of pie charts)

All SEP-14 Projects by Size (Percentage of Number of Projects) N=282
<$2M27%
$2-10M34%
$10-50M23%
$50-100M9%
>$100M7%
SEP-14 Projects Completed by End of 2002 by Size (Percentage of Number of Projects) N=140
<$2M33%
$2-10M34%
$10-50M23%
$50-100M6%
>$100M4%
SEP-14 Projects Included in Survey Sample by Size (Percentage of Number of Projects) N=86
<$2M19%
$2-10M39%
$10-50M28%
$50-100M7%
>$100M7%
SEP-14 Projects with Completed Design-Build Surveys by Size (Percentage of Number of Projects) N=69
<$2M17%
$2-10M44%
$10-50M26%
$50-100M6%
>$100M7%
SEP-14 Projects with Completed Design-Bid-Build Surveys by Size (Percentage of Number of Projects) N=17
<$2M12%
$2-10M24%
$10-50M58%
>$100M6%

Exhibit D 4a (A series of tables rendered from a series of pie charts)

All SEP-14 Projects by Type (Percentage of Dollars Expended) N=282/$14.0 Billion
Bridge/Tunnel10%
Road Resurface/Renewal1%
Road Rehabilitate/Reconstruct18%
Road New/Widen66%
ITS1%
Other4%
SEP-14 Projects Completed by End of 2002 by Type (Percentage of Dollars Expended) N=140/$5.5 Billion
Bridge/Tunnel8%
Road Resurface/Renewal1%
Road Rehabilitate/Reconstruct33%
Road New/Widen54%
ITS1%
Other3%
SEP-14 Projects Included in Survey Sample by Type (Percentage of Dollars Expended) N=86/$5.2 Billion
Bridge/Tunnel7%
Road Resurface/Renewal0%
Road Rehabilitate/Reconstruct34%
Road New/Widen58%
ITS1%
Other0%
SEP-14 Projects with Completed Design-Build Surveys by Type (Percentage of Dollars Expended) N=69/$4.5 Billion
Bridge/Tunnel6%
Road Resurface/Renewal0%
Road Rehabilitate/Reconstruct34%
Road New/Widen59%
ITS1%
Other0%
SEP-14 Projects with Completed Design-Bid-Build Surveys by Type (Percentage of Dollars Expended) N=17/$0.3 Billion
Bridge/Tunnel52%
Road Resurface/Renewal1%
Road Rehabilitate/Reconstruct24%
Road New/Widen23%
ITS0%
Other0%

Exhibit D 4b (A series of tables rendered from a series of pie charts)

All SEP-14 Projects by Size (Percentage of Dollars Expended) N=282/$14.0 Billion
<$2M1%
$2-10M3%
$10-50M11%
$50-100M12%
>$100M73%
SEP-14 Projects Completed by End of 2002 by Size (Percentage of Dollars Expended) N=140/$5.5 Billion
<$2M1%
$2-10M4%
$10-50M14%
$50-100M10%
>$100M71%
SEP-14 Projects Included in Survey Sample by Size (Percentage of Dollars Expended) N=86/$5.2 Billion
<$2M0%
$2-10M3%
$10-50M12%
$50-100M8%
>$100M77%
SEP-14 Projects with Completed Design-Build Surveys by Size (Percentage of Dollars Expended) N=69/$4.5 Billion
<$2M0%
$2-10M3%
$10-50M10%
$50-100M6%
>$100M81%
SEP-14 Projects with Completed Design-Bid-Build Surveys by Size (Percentage of Dollars Expended) N=17/$0.3 Billion
<$2M1%
$2-10M6%
$10-50M47%
$50-100M0%
>$100M46%

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