What is Design Build?

1
What is Design Build?

• Design-Build is a method of project delivery in
  which one entity (the design-builder) forges a
  single contract with the project owner to provide
  both architectural, engineering design services
  and construction services.
• Source Design-Build Institute of America

2
WELCOME TO DESIGN BUILD

• MIRACLE

• NIGHTMARE?

3
Design Build Panel

• Wayne Larsen Parsons Brinkerhoff
• Tom Loo Alberta Transportation
• Karen Stein Utah Department of Trans.
• ROUND TABLE DISCUSSION

4
U.S. R/W Perspective

• Ms. Karen Stein, SR/WA, R/W-RAC
• Deputy Director for the Utah Department of
  Transportation

5
Traditional Design Bid Build
Plan UDOT Staff or Consultant
Clear ROW UDOT Staff or Consultant
Design UDOT Staff or Consultant
Build UDOT Staff or Consultant
6
Design Build
Plan 30 Design UDOT Staff or Consultant
Design Design Build Consultant Team
Clear ROW Design Build Consultant Team
Build Design Build Consultant Team
7
When is Design Build a good idea?

• Projects where in-house resources are not
  sufficient
• Projects that can benefit from fast-tracking
• Projects with a high need for innovation
• Projects on an Interstate
• Risks known and transferable

8
With Design Bid Build(the traditional model)

• In DBB projects there is a balance between
• Scope
• Schedule
• Budget

9
With Design Build

• It is all about the Schedule!

10
Design Build from the U.S. Agencys perspective

• Benefits
• Identify and manage risk
• Reduce acquisition time line
• Encourage negotiated settlements
• Encourage design to mitigate damages
• Encourages use of effective scheduling methods
  and software
• Expands DOT resources for Acquisition/Relocation
  Process
• DB incentives help promote implementation of an
  effective Public involvement plan

11
Design Build from the ROW perspective

• Risks
• Increased overhead and direct acquisition and
  relocation costs
• Potential for coercive acquisition methods
• Increased number of condemnation cases admin
  settlements
• Potential for precedent setting practices which
  are out of compliance with URA and or UDOT ROW
  Policies and Procedures.
• Increased time for each ROW task due to increased
  hand offs between DB and Central DOT ROW
• Delay Claims if DOT fails to meet schedule
  requirements

12
Issues for ROW with Design Build

• The Selection Process
• Right of Way section of RFP must be sufficiently
  and accurately detailed
• Selection Team must include a ROW Staff person
• ROW component of the DB Proposals may not be
  sufficient to affect the overall selection of the
  DB team.

13
Design Build from the Engineering point of view

• Benefits
• Early known cost
• Reduce delivery time
• Reduce design errors
• Improve Constructability
• Identify and manage risk
• Encourage innovation
• Less detail required in design
• Expands UDOT resources

• Risks
• Proposal costs
• Innovation limited to contractor experience
• Third Party Delay

14
Canadian Perspective

• Mr. Tom Loo, P. E.
• Executive Director of Major Capital Projects for
  Alberta Transportation

15
Ring Roads

• The Premier and the Government of Alberta have
  made a commitment to complete the ring roads in
  a free flow condition around the cities of
  Edmonton and Calgary
• The majority of the land required for these major
  freeways were purchased by the province in the
  1970s

16
Current Status of Ring Roads

• Segments of Anthony Henday Drive in Edmonton and
  Stoney Trail in Calgary are currently open to
  traffic
• Planning, design, and construction is continuing
  on all remaining segments of the ring roads

17
Edmonton Ring Road
18
Calgary Ring Road
19
Project Delivery Mechanisms

• Traditional Design-Bid-Build
• Projects up to approximately 100 million
• Majority of projects delivered using this method
• Design/Build
• Projects approximately 100 to 300 million
• One project being delivered using this method
• Public Private Partnerships (P3) under a
  Design/Build/Finance/Operate (DBFO) agreement
• Projects approximately over 300 million
• Two projects designed, constructed and currently
  in operations
• Two other projects being delivered using this
  method

20
Anthony Henday Drive Stony Plain Road
Interchange

• Being delivered through Alberta Transportations
  first design/build contract
• Includes 50 lane km of new and rehabilitated
  roadway and seven bridge structures which will
  provide for a free flow systems interchange

21
Anthony Henday Drive Stony Plain Road
Interchange
22
Anthony Henday Drive Stony Plain Road
Interchange

• Design/Build Procurement commenced in summer 2008
• Issued RFQ in August 2008
• Short-listed to three proponents
• Issued RFP September 2008
• Executed agreement with preferred proponent
  February 2009
• Contract price of 168.6 million
• Construction commenced April 2009
• Traffic availability scheduled for October 15,
  2011

23
Design/Build Advantages

• Cost certainty
• Schedule certainty
• Compressed schedule (fast-track design and
  construction)
• Clearly defined project scope
• Risk transfer
• Opportunity for innovation

24
Design/Build Disadvantages

• Clearly defined project scope
• Design must be further advanced for accurate
  pricing
• Unknowns removed (geotechnical, etc.)
• Regulatory issues resolved in advance (risk not
  transferred)
• Less control by owner during
• design and construction

25
Design/Build Disadvantages

• Clearly defined project scope
• Design must be further advanced for accurate
  pricing
• Unknowns removed (geotechnical, etc.)
• Regulatory issues resolved in advance (risk not
  transferred)
• Less control by owner during design
• and construction

26
Design/Build Disadvantages

• Potential for quality issues
• Costly procurement process
• Not ideal for projects with
• Geotechnical unknowns
• Environmental issues
• Utility issues
• Any 3rd party which may add risk to contractor

27
Design/Build Procurement Process

• Detailed Technical Requirements
• Pass/Fail criteria for technical submissions by
  proponents
• Allow multiple runs at the gate to achieve pass
  within a set time period
• Must be compliant technical proposal (pass) to
  proceed to price submission
• Lowest price wins

28
Quality Management

• Quality is very important to the owner
• Quality Manager required and evaluated as part of
  RFQ
• Quality Management System must be ISO compliant
• Contractor responsible for overall Quality
  Control and Quality Assurance
• Owner has maintained rigorous quality management
  oversight

29
Elements of Design/Build

• Utility cost sharing threshold
• Progress payments during construction
• 10 holdback
• Late completion penalty of 10,000 per day
• 2-year warranty

30
Land Acquisition

• Owner best party to manage the risk of property
  acquisition
• In general, risks not properly allocated or
  mitigated will ultimately be transferred back to
  the owner through the bid price
• Ideally, all required land should be acquired
  prior to the start of the procurement process
• Majority of required land purchased by the
  provincein the 1970s

31
Land Acquisition

• Some slivers or small parcels required for design
  and construction
• Private contractors do not have the ability to
  expropriate property if required
• Property acquisition can be a lengthy process and
  negate the advanced schedule benefits of
  Design/Build

32
Land Acquisition

• Where the required sliver or parcel of land was
  not obtained prior to procurement, Design/Build
  agreement specifies when the required land will
  be available
• Provincial staff continued to work during
  procurement period and early construction period
  to secure required land
• Contractor required to mitigate impacts of not
  having required land at start of construction
• Process has worked reasonably well

33
Current Status of Design/Build Project

• Ahead of schedule
• On budget
• Good quality
• Good working relationship with contractor

34
DB Consultant Perspective

• C. Wayne Larsen, SR/WA, R/W-AC

35
FORBES RatesBest Worst Cities for Commuters

• Forbes ranked Salt Lake City the best city in the
  country for commuters (FEB 16, 2010)
• "One of the reasons we are ranked so high by
  Forbes is because we have such a comprehensive
  transportation system."
• "One of the biggest, most aggressive, and most
  successful rail expansion program in the country
  right now,"

36
UTA FRONTLINES 2015 PROGRAM

• FRONTRUNNER CRS
• MID-JORDAN LRT
• DRAPER LRT
• WEST VALLEY LRT
• AIRPORT LRT

37
UTA FRONTLINES 2015 PROGRAM

• 70 Miles in 7 Years (2015)
• Using a Design Build team approach
• 70 Miles in 5 Years (2013)

38
The Most Important Lessons Learned by UDOT ROW

• The RFP is your controlling document
• Write and re-write the RFP to make sure all
  expectations are clearly written
• A commitment to oversight is required by the DOT
• Dont underestimate the amount of time and
  number of resources this will require
• Hold the DB accountable, be assured that the DB
  will hold the DOT accountable
• Manage Risk wisely and make the DB retain the
  responsibility of clearing ROW after the NTP date
  as stipulated in the RFP

39
Additional Lessons Learned

• Monitor the QC/QA process to make sure it is
  adequate and effective
• Have a strong Public Information component of the
  DB team
• Make sure the DB carefully plans and conducts
  effective Community and Neighborhood focus
  meetings
• Identify and work with 3rd party stakeholders
  early in the process
• Include utility, outdoor advertizing signs, rail
  roads, local agency and or 3rd party agreements
  in the environmental document if possible.
• If, not in the environmental agreement, develop
  utility, local agency and or 3rd party agreements
  as early as possible

40
DESIGN BUILD

• ROUND TABLE DISCUSSION

41
Thank you

• kstein_at_utah.gov [phone]
• Tom.Loo_at_gov.ab.ca [phone]
• Larsen_at_pbworld.com [phone]

42
History of DB with ROW in Utah

• I-15 (prior to 2002 Olympics) Reconstruction
• UDOT cleared ROW for Residential properties, DB
  team cleared ROW for Non-Residential properties
• Under traditional DBB- 8 years estimated
• time to complete the construction
• Actual under DB completed in 4 years

43
Current DB ROW Projects

• Pioneer Crossing (I-15 Interchange) (Region 3)
• I-15 Core (Region 3)
• SR-68 Bangerter to Saratoga Springs (Region 3)
• 114th South (I-15 Interchange) (Region 2)
• Fort Lane Interchange (I-15 in Region 1)
• 6200 South CFI (SR-68) (Region 2)
• See UDOTs website for interactive video of these
  highly innovative projects www.udot.utah.gov
  (Under public/innovations)

44
Projects with specific innovative components

• Pioneer Crossing -- Diverging Diamond Interchange
  (DDI) and Accelerated Bridge Construction (ABC)
• S.R. 92 -- Commuter Lanes
• Express Lanes--I-15 Core
• Continuous Flow Interchange (CFI) SR-68
• Details about each project can be found on the
  Udot website under public info/innovations and or
  under Projects.
• Home page is www.udot.utah.gov
• Video overview of UDOTs program with emphasis on
  innovations is available on this website

45
RFP must describe the specific Scope of Work

• Prepare list of parcels with high priority
• Determine clear scope of work for the ROW Design
• Prioritize 3rd party entities and all utilities
• Provide the DB with a list of properties already
  acquired or which will be acquired by the DOT
• Determine whether the DB will be responsible for
  the Closings and if so, will they provide Title
  Insurance
• Detail who will have signature authority for
  every step of the process
• Just Compensation
• Pre-Approval of Admin. Settlement amounts
• Contracts and or Settlement Authority for
  Mediations, Arbitrations and Condemnations.
• Relocation Claims
• Develop a negotiated Flow Chart with the DB
• Meet and discuss status on a weekly basis
• Track all hand offs to and from the agency (using
  a shared system if available) IE using our in
  house EPM system, or the DBs tracking system.
  Agree on the method to be used to track the
  process, status and deliverable

46
Best Practice RE Scope of Work

• Based on UDOT DB Projects
• DOT should begin early acquisition process (total
  acquisitions complex acquisitions or 3rd party
  involvement)) as soon as possible once the
  project has Environmental Clearance
• Purchase based on 30 design for the widest
  estimated footprint to include all potential
  easements
• Transfer the responsibility of clearing ROW and
  the Risk as of the Notice to Proceed (NTP) Date.

47
Appraisal/Valuation Issues

• Consistency in methodology and use of comparable
  sales data
• Out of state appraisers and review appraisers are
  not recommended, out of necessity out of state
  reviewer may be ok but not ideal.
• Single review appraiser or at least one reviewer
  per identified segment of the project for
  consistency purposes

48
Acquisition Issues

• Monitor to ensure that policies and RFP are
  followed
• Require good faith negotiations
• Do not allow DB to use Right of Entry (ROE)
  unless other means to acquire have been exhausted
• Use Right of Occupancy Agreement (ROO)
  responsibly and only if owner is willing to
  negotiate and or mediate differences of value
• If ROO is obtained DB must follow up to acquire
  or condemn based on negotiated time line
  (negotiated with property owner) with
  authorization of the DOT
• Condemnation Resolutions prepared timely
• Condemnations may only be withdrawn by the
  Director of ROW

49
Relocation Issues

• Ensure that proper notices are prepared and
  issued
• Ensure that advisory assistance is appropriate
  and timely given
• Make sure that DOT pre-authorizes studies and
  notices of eligibility before DB issues them
• DB to keep log current and available to the DOT
  after each contact with property owner or
  displaced person
• Sky is not the limit for relocations!
• Rush to clear should not result in super adequate
  and or inappropriate relocation benefits offered
• DB must insure that agents employed on the DB
  project meet or exceed minimum qualifications as
  if they were working directly for the DOT
• Agents employed by the DB must be familiar with
  the subject area to ensure that what is thought
  to be comparable for replacement property is in
  fact comparable
• Agents employed by the DB must remember that they
  are the face of the DOT and must conduct
  themselves accordingly

50
Property Management Issues

• Salvage rights
• Lease agreements
• Terms of assumed leases
• Walk through and release of security or key
  deposits
• Security issues
• Demolitions
• Surplus Property
• Staging Areas

51
12300 South

• 360 ownerships (over 1000 parcels)
• DB project completed in 3 years vs. 9 years
  projected under DBB.
• Higher administrative settlement frequency due to
  aggressive schedule cost pass through

52
114th South

• Special complexities
• New Bridge over Jordan River
• Relocation of a power substation
• New I-15 Interchange
• 270 ownerships plus Utility easements
• Current status Construction is 61 complete
• Acquisitions and Relocations in progress
  approximately 67 of needed ROW is cleared

53
Access Utah Projects and I-15 Core (Innovation)

• Pioneer Crossing, a new, five-lane urban arterial
  from Redwood Road in Saratoga Springs to 300 East
  in Lehi.
• Innovative Components
• A new diverging diamond interchange (DDI) at I-15
  and American Fork Main Street, which will replace
  the existing diamond interchange.
• Includes an Express Lane in each direction
  through the interchange (to tie in to the
  upcoming I-15 widening project).
• ABC Bridge Construction (American Fork Bridge)
• Estimated completion in 2 years
• Construction is Currently 62 Complete
• Managed as part of the Access Utah group of 5
  separate projects.
• Central ROW provides oversight and helps to
  direct, train and oversee the ROW firms hired to
  clear the right of way.