Design-Build Effectiveness Study
As Required by TEA-21 Section 1307(f)
Final Report
Prepared for:
USDOT - Federal Highway Administration
January 2006
ALTERNATIVE CONTENT FOR IMAGES
Exhibit III.3
Number of Design-Build Projects by Major State in SEP-14
| | Florida | Michigan | Ohio | Pennsylvania |
|---|
| Road - New/Widen | 24 | 1 | 3 | 5 |
|---|
| Road - Rehabilitate/ Reconstruct | 0 | 1 | 9 | 7 |
|---|
| Road - Resurface/Renewal | 9 | 1 | 4 | 1 |
|---|
| Bridge/Tunnel | 16 | 16 | 32 | 34 |
|---|
| ITS | 7 | 1 | 0 | 0 |
|---|
| Other | 10 | 1 | 11 | 2 |
|---|
Exhibit III.4
Value of Design-Build Projects by Major State in SEP-14 (in millions of dollars) *
| | Florida | Michigan | Ohio | Pennsylvania |
|---|
| Road - New/Widen | 521.826413 | 14.9 | 83.38 | 30.3 |
|---|
| Road - Rehabilitate/ Reconstruct | 0 | 49.3 | 81.662203 | 39.7 |
|---|
| Road - Resurface/Renewal | 29.552053 | 7.6 | 23.694 | 2.6 |
|---|
| Bridge/Tunnel | 357.237393 | 31.47 | 105.713899 | 102.6 |
|---|
| ITS | 19.26452798 | 32.8 | 0 | 0 |
|---|
| Other | 73.06046 | 2.4 | 21.7336 | 0.2 |
|---|
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/Widen | 24 | 521.826413 | 1 | 14.9 | 3 | 83.38 | 5 | 30.3 |
|---|
| Road - Rehabilitate/ Reconstruct | 0 | 0 | 1 | 49.3 | 9 | 81.662203 | 7 | 39.7 |
|---|
| Road - Resurface/Renewal | 9 | 29.552053 | 1 | 7.6 | 4 | 23.694 | 1 | 2.6 |
|---|
| Bridge/Tunnel | 16 | 357.237393 | 16 | 31.47 | 32 | 105.713899 | 34 | 102.6 |
|---|
| ITS | 7 | 19.26452798 | 1 | 32.8 | 0 | 0 | 0 | 0 |
|---|
| Other | 10 | 73.06046 | 1 | 2.4 | 11 | 21.7336 | 2 | 0.2 |
|---|
Exhibit IV 1
Design-Build Projects as a Proportion of Total Projects
| New/Widen | 6.0% |
|---|
| Rehabilitate/Reconstruct | 1.5% |
|---|
| Resurface | 1.4% |
|---|
| Bridge/Tunnel | 4.0% |
|---|
| ITS | 8.6% |
|---|
| Total | 2.8% |
|---|
Exhibit IV 2
Design-Build Project Costs as a Proportion of Total Project Costs
| New/Widen | 32.0% |
|---|
| Rehabilitate/Reconstruct | 5.6% |
|---|
| Resurface | 4.3% |
|---|
| Bridge/Tunnel | 50.2% |
|---|
| ITS | 20.8% |
|---|
| Total | 25.5% |
|---|
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 CONTRACT | 84.4% |
|---|
| DBB WARRANTY CONTRACT | 3.4% |
|---|
| STANDARD DESIGN-BUILD CONTRACT | 9.1% |
|---|
| DESIGN-BUILD WARRANTY CONTRACT | 0.2% |
|---|
| DESIGN-BUILD-OPERATE-MAINTAIN CONTRACT | 0.0% |
|---|
| DESIGN-BUILD-OPERATE-MAINTAIN-FINANCE CONTRACT | 0.0% |
|---|
| PERFORMANCE-BASED ASSET MANAGEMENT CONTRACT | 0.0% |
|---|
| JOB ORDER CONTRACT (INDEFINITE QUANTITY) | 0.0% |
|---|
Exhibit IV 6
Procurement Methods Used for Design-Build Projects
| LOW BID | 56.0% |
|---|
| ALTERNATIVE BIDS/DESIGNS | 3.9% |
|---|
| MULTI-PARAMETER BIDDING | 2.2% |
|---|
| BEST-VALUE | 37.9% |
|---|
Exhibit IV 8
Payment Methods Used for Design-Build Projects
| Unit Price | 13.1% |
|---|
| Cost Plus | 0.0% |
|---|
| Lump Sum | 86.9% |
|---|
| Time & Material | 0.0% |
|---|
| Other | 0.0% |
|---|
Exhibit IV 10
Perceived Suitability of Design-Build Project Delivery
| | New/Widen | Rehab/Reconstruct | Resurface | Bridge/Tunnel | ITS |
|---|
| Micro | 2.3 | 2.2 | | 2.7 | |
|---|
| Small | 3.4 | 3.2 | 2.1 | 3.7 | 2.7 |
|---|
| Medium | 4.5 | 4.3 | 2.8 | 4.8 | 3.8 |
|---|
| Large | 5.0 | 4.7 | 3.5 | 5.1 | 4.3 |
|---|
| Mega | 5.4 | 5.1 | | 5.5 | |
|---|
Exhibit IV 11
Likely Future Use of Design-Build Project Delivery
(Scale: 1 - None; 6 - Significant)
| New/Widen | 3.7 |
|---|
| Rehab/Reconstruct | 3.1 |
|---|
| Resurface | 1.9 |
|---|
| Bridge/Tunnel | 2.8 |
|---|
| ITS | 2.9 |
|---|
Exhibit IV 20
Reported Changes in Design-Build Project Costs after Contract Execution
| Design-Builder Design Cost Changes | 6.7% |
|---|
| Design-Builder Construction Cost Changes | 5.1% |
|---|
| Agency Contract Administration and Inspection Cost Changes | -9.0% |
|---|
| Total Cost Changes | 3.2% |
|---|
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 Growth | D-B Contract Growth ((Final-Award)/Award) |
|---|
| Total Project Cost Changes | 4.3% | 6.0% |
|---|
| Agency Administrative Cost Changes | 6.9% | 0.4% |
|---|
| Construction Cost Changes | 4.3% | 8.1% |
|---|
| Design Cost Changes | -1.0% | 2.2% |
|---|
Exhibit IV 23
Causes of Cost Changes for Design-Build Projects
| Owner Required Additions or Subtractions | 3.2 |
|---|
| Design-Builder or Contractor Suggested Additions or Subtractions | 2.4 |
|---|
| Differing Site Conditions | 2.2 |
|---|
| Events Not Controllable by Sponsor or Contractor (weather, etc.) | 2 |
|---|
| Third Party Additions or Subtractions | 1.9 |
|---|
| Unit Price Adjustment Clauses | 1.8 |
|---|
| Third Party Delays | 1.8 |
|---|
| Sponsor Delays | 1.7 |
|---|
| Contractor Delays | 1.6 |
|---|
| Poor Design | 1.6 |
|---|
Exhibit IV 24
Causes of Cost Changes for Similar Design-Build and Design-Bid-Build Projects
| | Design-Build | Design-Bid-Build |
|---|
| Owner Required Additions or Subtractions | 3.6 | 3.8 |
|---|
| Design-Builder or Contractor Suggested Additions or Subtractions | 3.0 | 2.5 |
|---|
| Differing Site Conditions | 2.6 | 3.1 |
|---|
| Events Not Controllable by Sponsor or Contractor (Weather, etc.) | 2.3 | 1.9 |
|---|
| Third Party Additions or Subtractions | 2.3 | 1.6 |
|---|
| Unit Price Adjustment Clauses | 2.1 | 2.2 |
|---|
| Third Party Delays | 2.4 | 1.1 |
|---|
| Sponsor Delays | 1.6 | 1.2 |
|---|
| Contractor Delays | 1.9 | 1.3 |
|---|
| Poor Design | 1.6 | 2.2 |
|---|
Exhibit IV 28
Contracting Agency Satisfaction Ratings of Design-Build Projects
(Scale: 1 - Poor; 6 - Superior)
| Conformance with Standards/Specifications | 4.8 |
|---|
| Compliance with Warranty Provisions | 4.7 |
|---|
| Overall Sponsor Satisfaction | 4.7 |
|---|
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/specifications | Compliance with warranty provisions | Overall sponsor satisfaction |
|---|
| Design-Build | 4.6 | 4.3 | 4.6 |
|---|
| Design-Bid-Build | 4.4 | 3.0 | 4.6 |
|---|
Exhibit IV 31
Perceived Experience among Stakeholder Groups for Design-Build Projects
(Scale: 1 - None; 6 - Significant Experience)
| Agency/Owner | 3.0 |
|---|
| Design-Builder | 3.0 |
|---|
| Designer | 3.3 |
|---|
| Builder/Contractor | 3.2 |
|---|
| 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/Owner | Design-Builder | Designer | Builder/Contractor | Subconsultant(s) | Subcontractor(s) | Finance (bond underwriter) | Insurance (Surety Vendor) |
|---|
| Design-Bid-Build | 5.8 | 4.7 | 4.7 | 5.5 | 4.9 | 4.5 | 5.4 | 5.4 |
|---|
| Design-Build | 2.9 | 3.1 | 3.1 | 3.2 | 2.6 | 2.4 | 3.9 | 4.0 |
|---|
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 Acquisition | 8 | 0 | 0 | 1 | 0 | 1 | 1 | 0 | 1 | 3 | 52 |
|---|
| Permit Clearance | 6 | 0 | 3 | 1 | 0 | 1 | 1 | 0 | 3 | 8 | 43 |
|---|
| Environmental Clearance | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 1 | 1 | 60 |
|---|
| Design | 7 | 14 | 8 | 24 | 5 | 2 | 4 | 1 | 2 | 1 | 0 |
|---|
Exhibit IV 35
Average Percent Completion of Selected Functions at Design-Build Project Award
| Design | 27% |
|---|
| Environmental (NEPA) Clearance | 99% |
|---|
| Permit Acquisition | 83% |
|---|
| ROW Acquisition | 89% |
|---|
Exhibit IV 36
Average Percent Completion of Selected Functions at Project Award for Similar Design-Build and Design-Bid-Build Projects
| | Design | Environmental Clearance | Permit Clearance | ROW Acquisition |
|---|
| Design-Build | 37% | 83% | 84% | 81% |
|---|
| Design-Bid-Build | 100% | 100% | 100% | 100% |
|---|
Exhibit IV 40
Prequalification Requirements for Design-Build Projects
| No | 0% |
|---|
| Yes, general or annual prequalification | 21% |
|---|
| Yes, one step, project specific prequalification | 17% |
|---|
| Yes, two step, project specific prequalification reduced to short list | 48% |
|---|
| Other | 14% |
|---|
Exhibit IV 42
Relative Importance of Factors Considered in Deciding Whether to Use Design-Build
(Scale: 1 - Unimportant; 6 - Extremely Important)
| Urgency of Project | 5.6 |
|---|
| Opportunity for Innovation | 4.6 |
|---|
| Opportunity for Risk Transfer | 4.2 |
|---|
| Cost of Project | 4.0 |
|---|
| Quality | 3.9 |
|---|
| State Program Initiatives | 3.9 |
|---|
| Lack of In-House Resources | 3.6 |
|---|
| Federal Program Initiatives | 3.0 |
|---|
Exhibit IV 43
Key Factors Considered in Awarding Design-Build Project Contracts
(Scale: 1 - Unimportant; 6 - Extremely Important)
| Cost Only | 5.1 |
|---|
| Cost & Duration | 4.8 |
|---|
| Duration Only | 4.6 |
|---|
| Team Reputation | 4.3 |
|---|
| Quality Management Plan | 4.3 |
|---|
Exhibit IV 44
Procurement Approach of Design-Build Projects
| Low Bid | 54% |
|---|
| Multi-Parameter | 4% |
|---|
| Best-Value | 42% |
|---|
Exhibit IV 45
Best Value Procurement Evaluation Methods for Design-Build Projects
| Low Bid-Meets Tech. Criteria | 3% |
|---|
| Adjusted Bid | 41% |
|---|
| Adjusted Score | 14% |
|---|
| Weighted Criteria | 28% |
|---|
| Cost-Technical Tradeoff | 7% |
|---|
| Fixed Price-Best Design | 7% |
|---|
Exhibit IV 46
Contract Pricing Methods for Design-Build Projects
| Fixed Price - Lump Sum | 67% |
|---|
| Unit Price | 26% |
|---|
| Other | 7% |
|---|
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 2002 | 142 |
|---|
| Total SEP-14 Projects Completed by End of 2002 | 140 |
|---|
N=140
| Surveyed SEP-14 Projects without Completed Surveys | 17 |
|---|
| Unsurveyed SEP-14 Projects | 54 |
|---|
| Completed Surveys | 69 |
|---|
N=69
| Completed Design-Build Surveys only | 52 |
|---|
| Completed D-B and D-B-B Surveys | 17 |
|---|
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/Tunnel | 38% |
|---|
| Road Resurface/Renewal | 6% |
|---|
| Road Rehabilitate/Reconstruct | 12% |
|---|
| Road New/Widen | 28% |
|---|
| ITS | 4% |
|---|
| Other | 12% |
|---|
SEP-14 Projects Completed by End of 2002 by Type (Percentage of Number of Projects) N=140
| Bridge/Tunnel | 49% |
|---|
| Road Resurface/Renewal | 5% |
|---|
| Road Rehabilitate/Reconstruct | 18% |
|---|
| Road New/Widen | 16% |
|---|
| ITS | 4% |
|---|
| Other | 8% |
|---|
SEP-14 Projects Included in Survey Sample by Type (Percentage of Number of Projects) N=86
| Bridge/Tunnel | 36% |
|---|
| Road Resurface/Renewal | 6% |
|---|
| Road Rehabilitate/Reconstruct | 20% |
|---|
| Road New/Widen | 26% |
|---|
| ITS | 6% |
|---|
| Other | 6% |
|---|
SEP-14 Projects with Completed Design-Build Surveys by Type (Percentage of Number of Projects) N=69
| Bridge/Tunnel | 38% |
|---|
| Road Resurface/Renewal | 6% |
|---|
| Road Rehabilitate/Reconstruct | 16% |
|---|
| Road New/Widen | 29% |
|---|
| ITS | 4% |
|---|
| Other | 7% |
|---|
SEP-14 Projects with Completed Design-Bid-Build Surveys by Type (Percentage of Number of Projects) N=17
| Bridge/Tunnel | 24% |
|---|
| Road Resurface/Renewal | 6% |
|---|
| Road Rehabilitate/Reconstruct | 29% |
|---|
| Road New/Widen | 35% |
|---|
| Other | 6% |
|---|
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
| <$2M | 27% |
|---|
| $2-10M | 34% |
|---|
| $10-50M | 23% |
|---|
| $50-100M | 9% |
|---|
| >$100M | 7% |
|---|
SEP-14 Projects Completed by End of 2002 by Size (Percentage of Number of Projects) N=140
| <$2M | 33% |
|---|
| $2-10M | 34% |
|---|
| $10-50M | 23% |
|---|
| $50-100M | 6% |
|---|
| >$100M | 4% |
|---|
SEP-14 Projects Included in Survey Sample by Size (Percentage of Number of Projects) N=86
| <$2M | 19% |
|---|
| $2-10M | 39% |
|---|
| $10-50M | 28% |
|---|
| $50-100M | 7% |
|---|
| >$100M | 7% |
|---|
SEP-14 Projects with Completed Design-Build Surveys by Size (Percentage of Number of Projects) N=69
| <$2M | 17% |
|---|
| $2-10M | 44% |
|---|
| $10-50M | 26% |
|---|
| $50-100M | 6% |
|---|
| >$100M | 7% |
|---|
SEP-14 Projects with Completed Design-Bid-Build Surveys by Size (Percentage of Number of Projects) N=17
| <$2M | 12% |
|---|
| $2-10M | 24% |
|---|
| $10-50M | 58% |
|---|
| >$100M | 6% |
|---|
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/Tunnel | 10% |
|---|
| Road Resurface/Renewal | 1% |
|---|
| Road Rehabilitate/Reconstruct | 18% |
|---|
| Road New/Widen | 66% |
|---|
| ITS | 1% |
|---|
| Other | 4% |
|---|
SEP-14 Projects Completed by End of 2002 by Type (Percentage of Dollars Expended) N=140/$5.5 Billion
| Bridge/Tunnel | 8% |
|---|
| Road Resurface/Renewal | 1% |
|---|
| Road Rehabilitate/Reconstruct | 33% |
|---|
| Road New/Widen | 54% |
|---|
| ITS | 1% |
|---|
| Other | 3% |
|---|
SEP-14 Projects Included in Survey Sample by Type (Percentage of Dollars Expended) N=86/$5.2 Billion
| Bridge/Tunnel | 7% |
|---|
| Road Resurface/Renewal | 0% |
|---|
| Road Rehabilitate/Reconstruct | 34% |
|---|
| Road New/Widen | 58% |
|---|
| ITS | 1% |
|---|
| Other | 0% |
|---|
SEP-14 Projects with Completed Design-Build Surveys by Type (Percentage of Dollars Expended) N=69/$4.5 Billion
| Bridge/Tunnel | 6% |
|---|
| Road Resurface/Renewal | 0% |
|---|
| Road Rehabilitate/Reconstruct | 34% |
|---|
| Road New/Widen | 59% |
|---|
| ITS | 1% |
|---|
| Other | 0% |
|---|
SEP-14 Projects with Completed Design-Bid-Build Surveys by Type (Percentage of Dollars Expended) N=17/$0.3 Billion
| Bridge/Tunnel | 52% |
|---|
| Road Resurface/Renewal | 1% |
|---|
| Road Rehabilitate/Reconstruct | 24% |
|---|
| Road New/Widen | 23% |
|---|
| ITS | 0% |
|---|
| Other | 0% |
|---|
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
| <$2M | 1% |
|---|
| $2-10M | 3% |
|---|
| $10-50M | 11% |
|---|
| $50-100M | 12% |
|---|
| >$100M | 73% |
|---|
SEP-14 Projects Completed by End of 2002 by Size (Percentage of Dollars Expended) N=140/$5.5 Billion
| <$2M | 1% |
|---|
| $2-10M | 4% |
|---|
| $10-50M | 14% |
|---|
| $50-100M | 10% |
|---|
| >$100M | 71% |
|---|
SEP-14 Projects Included in Survey Sample by Size (Percentage of Dollars Expended) N=86/$5.2 Billion
| <$2M | 0% |
|---|
| $2-10M | 3% |
|---|
| $10-50M | 12% |
|---|
| $50-100M | 8% |
|---|
| >$100M | 77% |
|---|
SEP-14 Projects with Completed Design-Build Surveys by Size (Percentage of Dollars Expended) N=69/$4.5 Billion
| <$2M | 0% |
|---|
| $2-10M | 3% |
|---|
| $10-50M | 10% |
|---|
| $50-100M | 6% |
|---|
| >$100M | 81% |
|---|
SEP-14 Projects with Completed Design-Bid-Build Surveys by Size (Percentage of Dollars Expended) N=17/$0.3 Billion
| <$2M | 1% |
|---|
| $2-10M | 6% |
|---|
| $10-50M | 47% |
|---|
| $50-100M | 0% |
|---|
| >$100M | 46% |
|---|
