Progressive Design-Build: A Better Way?

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Progressive Design-Build A Better Way?

• Mark Alpert, PE

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Progressive Design-Build A Better Way?

• Discussion Topics
• Brief Overview of Alternative Project Delivery
  Options
• The WDBCs Three Key Delivery Options
• Focus on Progressive Design-Build
• What is it? How Does it Work?
• Investment in Projects, not Procurements
• Schedule Advantages
• Building Owner Comfort and Project Success with
  Progressive Estimates
• Better opportunities for local consultant support

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Brief Overview of Alternative Project Delivery
Options

• Is there an ideal delivery method?

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Key Points Delivery Options

• Within 1886, there are multiple forms of
  allowable alternative delivery formats
• Each form has strengths and weaknesses
• Pick the best approach for individual project
  needs

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Project Delivery Options
Construction Management at Risk (CM_at_Risk)
Lump SumDesign-Build (LS)
ProgressiveDesign-Build (GMP)
Design-Build- Operate/Finance, etc.
Design-Bid-Build(DBB)
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Traditional Design-Bid Build Delivery
Construction Management at Risk (CM_at_Risk)

• Defined, proven process
• Distinct milestones to ensure expected results
• Manages to known challenges (unknowns change
  orders)
• Traditional cast of participants
• But does not always meet Owners needs for
  collaboration, innovation, and accountability

Lump SumDesign-Build (LS)
ProgressiveDesign-Build (GMP)
Design-Build- Operate/Finance, etc.
Design-Bid-Build(DBB)
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Construction Management At Risk
Construction Management at Risk (CM_at_Risk)
Lump SumDesign-Build (LS)
ProgressiveDesign-Build (GMP)
Design-Build- Operate/Finance, etc.

• Design-Build Lite
• Promotes early collaboration between designer and
  constructor
• Allows selection of a Contractor based on
  qualifications and fee (but not a full bid)
• But still relies on separate contracts,
  resulting in a forced marriage

Design-Bid-Build(DBB)
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True Design-Build Delivery Options
Construction Management at Risk (CM_at_Risk)
Lump SumDesign-Build (LS)
ProgressiveDesign-Build (GMP)
Design-Build- Operate/Finance, etc.

• True single contract design-build models
• Offers Owners a wide variety of evaluation
  options, ranging from almost all
  qualifications-focused to best value with a
  lump sum price

Design-Bid-Build(DBB)
Lump Sum Design-Build Performance-based
orPrescriptive
Progressive Design-Build Maximum flexibility for
Owners
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Progressive Design-Build A Better Way?
ProgressiveDesign-Build (GMP)

• Key Advantages
• Investment in Projects, not Procurements
• Schedule
• Progressive estimates address Owners challenges
• Better opportunities for local consultant support

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Progressive Design-Build Procurement Model

• Progressive model complies with 1886 as long as
  some form of price/cost-related criteria is
  included in selection
• Offers owners maximum flexibility/opportunity to
  collaborate on permitting/design
• Owners have an off-ramp in case of permitting
  issues or if GMP cant be negotiated
• Very successful evolving model

LC
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Invest in the Project, not the Procurement

• Progressive Design-Build reduces the complexity
  and cost of the procurement process
• Owners staff time and additional technical
  support for procurement
• Stipends for multiple unsuccessful proposers
• Industry investment in design for proposal
• Additional risk included in ultimate project cost
  (more unknowns higher contingency)

LC
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Shorten the Procurement Schedule

• Progressive Design-Build reduces the time it
  takes to select a Design-Builder
• Timing can procurement process start before all
  basis of permits are certain?
• Duration does proposal period need to allow time
  for design/detailed pricing?
• Potential for delay how many issues/technical
  questions might arise?

months
year
LC
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Schedule Comparison Design-Build Procurements
RFQ 30 days
Shortlist 30 days
RFP 60 days
Evaluate 30 days
Contract 30 days
Issue RFQ
SOQs Submitted
Issue Shortlist
Submit Proposals
Award
NTP
RFQ Response Period
Evaluate Qualifications
RFP Response Period
Evaluate Proposals
Contract
Months
6
Typical Progressive Design-Build Procurement
Months
3-4
Fast-Track Progressive Design-Build Procurement
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Schedule Comparison Design-Build Procurements
Years
1
Lump Sum Design-Build Procurements
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Progressive Estimates Address Owners Challanges
Construction estimating can start very early in
design, allowing comparison of specific technical
solutions.
Progressive estimates keep Owners informed and
support informed scope adjustment decisions.
0
100
30
60
Level of Design Completion
First fully detailed estimate can be used to
establish a scope baseline. Estimating process
is open book.
Owners can use third-parties to verify
cost...and go to the hard-bid market if needed
(the off-ramp).
Guaranteed Maximum Price established at the right
time risk and contingency reduced, schedule
needs met.
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Progressive Design-Build Supports Smaller Firms

• Selection methodology focuses on traditional
  evaluation criteria
• Primarily qualifications based
• Selection criteria can be tailored to support
  local expertise/capabilities
• Proposal preparation significantly less costly
• Limited design effort to be performed on spec
• Smaller firms can support larger teams with
  minimal proposal investment
• More flexibility to use subconsultants after
  design-builder selection
• Owner can provide input on preferred specialty
  firms
• Design packages can be developed after the
  procurement
• Does not require as much at-risk capability
• Subconsultants can participate without taking an
  at-risk position

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Water Design-Build Council

• www.waterdesignbuild.org