1
Delivering Heavy Construction Projects Through
Design-Build
American Bar Association Forum on the
Construction Industry
2007 Mid Winter Meeting

• John Carpenter
• Kiewit Corporation
• D. Peter Hughes
• CH2M Hill
• Michael C. Loulakis
• Akerman Senterfitt

2
What are the long-term prospects and issues
surrounding performance specifications?
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Performance Specifications

• Is it really a performance spec that is needed?
• Performance specifications are a double-edge
  sword that can result in owner liability.
• Consider remedies when drafting such
  specifications.
• Engage design-builder to provide potential
  solutions to owners considerations during
  pre-bid.

4
What are risk shifting considerations for Force
Majeure and differing site conditions in the
context of large design-build projects?
5
Force Majeure and Differing Site Conditions

• Provide certainty for the design-builder to
  obtain best price.
• Determine from bidders what they fear.
• Bidders need to tell owner what they view as
  risks.
• Owner in many situations may be in best position
  to shield project.

6
How are the concerns of multiple project
stakeholders addressed on large design-build
projects?
7
Third-Party Stakeholder Considerations

• Identify stakeholders.
• Owner and design-builder work together.
• Contractor utilizes designers skills for
  aesthetic concerns.
• Incentivize important concerns.
• Dont leave the design-builder hanging out,
  owners need to be proactive.

8
When is a large design-build project complete?
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Completion Issues

• Determine what is really necessary for completion
  to stop liquidated damages versus final
  acceptance.
• Consider utilizing liquidated damages and
  incentive bonuses for matters other than just for
  project completion.
• Maintain stakeholder expectations Project may
  be complete but design-builder will still be
  working.
• Break-up completion acceptance process into
  manageable pieces.

10
What are some of the issues surrounding
warranties on large design-build jobs?
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Warranties on Large Design-Build Project

• Warranties need to be workable.
• Direct contact with the party responsible works
  best. Use flow-down provisions so the owner can
  enforce the warranty.
• Longterm warranties are costly.
• Consider other mechanisms instead of long-term
  warranties such as standard specifications and
  vigilant construction oversight at front-end.

12
Closing Remarks
American Bar Association Forum on the
Construction Industry
2007 Mid Winter Meeting