Overview of the Design Build Process

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Overview of the Design- Build Process
CEM 525 Project Delivery Systems

• By Mohammed Jalaluddin

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Qualifications-based selection
Qualifications-based selection refers to a
design-builder selection process, where one
design-builder is selected for the project, at
least conditionally, on the basis of its
reputation and qualifications typically in an
early phase of a project, and at once, without
actual phasing
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Qualifications-based selection

• The main steps of a typical process involving a
  qualifications-based selection procedure are the
  following

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1. Strategic Facility Planning.

• The owner identifies the prospective project in
  broad business terms
• Needs are established in terms of project area,
  population, technology content, performance
  criteria, etc.
• A site may or may not have been identified.
• The owner also determines that design-build,
  and this process specifically is the desirable
  mode of propagation for the project.

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2.Selection of Design Builder

• A few potential design-builders are identified
  based upon factors such as reputation, previous
  owner experience, capacity, pricing methods,
  fees, etc.
• The short listed design-builders are interviewed
  or requested to submit more detailed
  qualifications and, on these grounds, evaluated
  against criteria established by the owner. A
  single design-builder is preliminarily selected.

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3. Conclusion of First Part of Contract.

• Contract language and terms are negotiated and
  typically a contract is executed to authorize
  preliminary design, some design development and
  outline specifications, all sufficient to define
  the project conceptually, describe the
  performance of the intended building, and fix the
  price.

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4. Project Definition.

• The design-builder joins with the owner in the
  establishment of overall project objectives,
  requirements, and target budgets and schedules.
  Design is started by the design-build entity, and
  design decisions proceed along with consideration
  of construction factors. The work is carried out
  as defined in the contract.

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5. Design-Build Contract Award.

• Well before the drawings are complete, often as
  early as the concept phase, a lump sum price (or
  guaranteed maximum cost) is established by the
  design-build entity. This is typically done on an
  "open book" basis where competitive pricing is
  obtained from subcontractors and vendors in the
  marketplace. If the owner is content with the
  design and price proposal, the design-builder is
  contracted for the completion of design and
  construction.

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6. Construction Documents and Construction.

• Upon completion of the design documents for all
  elements or for specific phases of the project,
  construction commences. The review and approval
  process is structured (typically 30-60-90- 100
  design complete) to ensure that the owner has the
  say also in the subsequent design process. The
  process continues in the customary manner but is
  enhanced by the incorporation of design and
  construction responsibility.

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Two-stage selection

• DescriptionTwo-stage selection refers to a
  design-builder selection process where the first
  phase involves shortlisting of candidates on the
  basis of the qualification statements they
  supply, and the second phase involves final
  selection on the basis of technical and price
  proposals, etc. from the shortlisted offerors.

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1. Strategic Facility Planning.

• The owner identifies the prospective project in
  broad business terms needs are established in
  terms of project area, population, technology
  content, performance criteria, etc. A site may or
  may not have been identified. The owner also
  determines that design-build, and this process
  specifically is the desirable mode of propagation
  for the project.

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2. Project Definition.

• The owner establishes the project requirements
  in terms of facility size and performance
  criteria, finish requirements, quality standards,
  applicable codes, regulatory standards,
  occupants/ capacities, equipment requirements,
  etc. These requirements are defined and
  articulated either by in-house professional staff
  or by an outside consultant.

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3. Request for Qualifications (RFQ).

• Professional, financial and experiential
  requirements for offerors as well as general
  project parameters are articulated in an RFQ (see
  Table 10), either by in-house staff or by an
  outside professional consultant.
• 4. Qualifications Statements. The project is
  advertised, RFQ.s are supplied to interested
  design-builders, and qualification statements are
  received in response to RFQs. Generally three,
  never more than five, of the most qualified firms
  are shortlisted for the second stage.

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5. Request for Proposals (RFP).

• Design and cost proposals are solicited from the
  shortlisted design-build teams in a Request for
  Proposal (RFP). Among the items found in a
  typical RFP are project design criteria, site
  information, contract requirements, selection
  procedure and proposal requirements. (see Table
  11).
• 6.Pre-Proposal Conference. This meeting of all
  shortlisted proposers early in the proposal
  preparation period is held by many owners to
  allow proposers to ask questions and request
  clarifications. Outside the meeting, only written
  questions and answers are allowed in order to
  treat all competitors equally.

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7. Proposal Submission and Evaluation.

• Once received, proposals are evaluated on the
  basis of quality of design, price and other
  predetermined factors related to definition of
  best value. Before the final award is made,
  proposers may be asked to make inperson
  presentations to the owners selection panel.
• 8. Contract Award. The selected proposer enters
  into contract with the owner, which incorporates
  both the owners requirements and the
  design-builders proposal.

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9. Construction Documents and Construction.

• Upon completion of the design documents for all
  elements or for specific phases of the project,
  construction commences. The review and approval
  process is structured (typically 30-60-90- 100
  design complete) to ensure that the owner has the
  say also in the subsequent design process. The
  process continues in the customary manner but is
  enhanced by the incorporation of design and
  construction responsibility.

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HANORARIUM

• An honorarium or a stipend is a certain sum
  sometimes paid to offerors in consideration for
  the cost of preparing a design-build proposal.
  When should an honorarium be paid, how much
  should it be, and what else should be taken into
  account when contemplating honorariums in a
  project? The payment of an honorarium is,
  however, up to the owner and in many cases no
  stipend is paid to unsuccessful teams. In such
  situations the construction firm, operating in
  accordance with a design-build teaming agreement,
  may pay its design team partner for preparing
  most of the proposal, thus partially compensating
  the A/E partner for its considerable effort in
  preparing the design-build proposal. Moreover,
  winning design teams of design-build projects
  should demand and expect a higher than normal fee
  for the balance of its services on the project in
  the proposal phase.

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Bridging-type selection

• Description
• Bridging-type selection refers to a process
  where a firm price contract is made based on the
  owner's preliminary design and candidates' price
  offers, followed by the design-builder's
  completion of design including possible
  modifications on design and price, their review
  and acceptation, and subsequently construction.

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1. Strategic Facility Planning.

• The owner identifies the prospective project in
  broad business terms needs are established in
  terms of project area, population, technology
  content, performance criteria, etc. A site may or
  may not have been identified. The owner also
  determines that design-build, and this process
  specifically is the desirable mode of propagation
  for the project.

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2. Involvement of an Architect.

• The owner hires an architect to complete
  preliminary design of the project. These
  .scope-of-work. documents define the functional
  and aesthetic aspects of the project, while the
  details of construction technology are left for
  the design-build team to define. The owners
  architect remains a consultant to the owner
  throughout the design and construction.

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3. Selection of Design-Builder.

• The owners consultant prepares an extensive
  Request for Proposal and, subsequently, bids are
  solicited from (or negotiations are initiated
  with) design-build entities. The design-builder
  is usually selected on the basis of a price
  offer, possibly supplemented by qualification
  criteria. No technical proposal is needed in this
  stage.
• 4.Conclusion of Contract. Typically, a firm price
  contract is completed. While the price covers all
  design and construction, the contract commonly
  authorizes the design-build entity to complete
  the design and construction documents only, so
  that thereafter the parties have a check point on
  the modifications.

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5. Completion of the Project Documents.

• The design-build entity executes design
  sufficient to define the project, describe the
  performance of the intended building, and price
  the possible changes. The owner and his
  consultant review the construction documents for
  compliance with the design intent and conducts a
  price review with the contractor. Normally,
  notice to proceed with construction is given.

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6. Construction Documents and Construction.

• Upon completion of the design documents for all
  elements or for specific phases of the project,
  construction commences. The review and approval
  process is structured (typically 30-60-90- 100
  design complete) to ensure that the owner has the
  say also in the subsequent design process. The
  process continues in the customary manner but is
  enhanced by the incorporation of design and
  construction responsibility.

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Direct design-build

• Description
• Direct design-build refers to the practice,
  where the design-builder becomes involved in the
  project prior to the start of the actual design
  phase on the basis of the owner's predesign
  information such as feasibility studies or maybe
  a project program.

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Under a direct design-build arrangement, there
are two typical ways to proceed

• Firstly, it is not unusual for the initial
  program definition services to be performed on
  the basis of an oral understanding or a simple
  letter of agreement ?a more complete contract is
  developed once the project is better defined.
  Thus, after the first contact and discussions on
  the project, the design-builder works for project
  planning with the understanding that if the owner
  is happy with the design-builder.s proposal, the
  design-builder will be engaged to do subsequent
  design and construction. The proposal work is
  generally part of the marketing of the
  design-builder which is not properly compensated
  for by the owner.

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• Alternatively, the owner may enter into contract
  with the design-builder relatively promptly
  instead of negotiating about the design-builders
  evolving proposal. Typically the agreement
  authorizes the design-build entity to do
  preliminary design and outline specifications
  only to provide the owner a checkpoint before
  committing himself to completing the project. New
  negotiations are then needed on the basis of the
  design-builders proposal. Since the work is
  based on a contract, the deliverable by the
  design-builder in the initial phase may be
  considered to be more complete than that made on
  the basis of the negotiated approach.

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Design criteria method

• Description
• Design criteria-type design-build refers to the
  practice, where the design-builder becomes
  involved in the project on the basis of the
  owner's design criteria that define the owners
  requirements and wishes and direct the subsequent
  design process, but do not dictate the
  architectural and technical solutions.

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• In a design-build project according to the
  design criteria method, the owner prepares a
  statement of facility requirements that directs
  the design-builders. subsequent proposal design
  and is comprehensive enough to assure compliance
  by the offerors, but avoids restrictive details
  that would inhibit creative solutions. This means
  that the owners design professional improves the
  general project scope definitions and space
  itemization from the programming phase which
  results in the owners design criteria package.

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The design criteria package consists typically
of

• site plan and information
• space program including a schedule of rooms
  with their type/use, number and area
• room-specific criteria for finishes, fixtures
  and fittings, services and environment
• outline specification for components to be used
• diagrammatic floor or space plans, or schematic
  design, and
• other pertinent criteria.

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• The completed criteria package is incorporated
  into the owners business elements as regards the
  project. In competitive design-builder selection
  the combination forms the Request for Proposals
  (RFP). Correspondingly, business elements include
  contractual terms and conditions, time and place
  for receipt of proposals, schedule requirements,
  bid and contract bond requirements, and basis for
  evaluation and selection.55 A framework for an
  entire RFP was given above in Table 11 (p. 51) in
  the context of competitive two-stage
  design-builder selection. Table 21, again,
  details an actual RFP which includes the design
  criteria of Table 20 referred to earlier.

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Preliminary engineering method

• Description
• Preliminary engineering-type design-build refers
  to the practice, where the design-builder becomes
  involved in the project on the basis of a
  preliminary design solution, which defines the
  shape, massing and layout of the prospective
  building, and may give strict guidelines or
  solutions for many technical components of the
  project.

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• The design-build RFP specifications often
  combine elements of design and performance while
  the owners consultants often carry out the
  schematic design phase and continue into the
  design development phase, and maybe even
  partially into the construction document phase.
  Design development as a phase refers, again, to
  evolution of design that defines the functional
  and aesthetic aspects of the project and the
  building systems that satisfy them.

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Therefore, in addition to documents of earlier
design phases, also the following elements are
often completed before the design-builders
involvement

• architectural drawings that include floor
  plans, elevations and sections.
• technical design where the structural,
  mechanical, and electrical systems are developed
  by selecting the type of systems, etc.
• Additionally, many details can be designed and
  many materials specified (cf. Table 23).
  Naturally, the primary aim is still that the
  building is defined in terms of performance
  specifications that merely set forth the
  operational characteristics or end result
  desired, without saying how that result has to be
  achieved or the product constructed. It may be,
  however, that the owner designs the systems and
  components that are critical to him but leaves
  the others alone. Thus, the preliminary
  engineering method does not mean that the owner
  would progress in all design areas and
  disciplines equally although some of the design
  aspects of the building were closed.

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