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?Design/Build
What do consultants think?
A piece of the puzzle
D/B/O/F D/B/B C/M
D/B/O Design/BuildDesign/Build PM
D/B/O/M Others
ACEC Support
• Member of coalition in mid 1990s for design/build Federal legislation
• Supported two-step process
ACEC/Michigan
Two-Step Process
Step 1Predesign
Step 2Design/Build
Design (advisor) oversight
ACEC Now Supports
• Value Based Delivery Systems (VBDS)• Design/build
It’s a piece of the puzzle
A piece of the puzzle
D/B/O/F D/B/B C/M
D/B/O Design/BuildDesign/Build PM
D/B/O/M Others
Value Based Delivery System Concepts
• Select the most appropriate, not the best (there is no best)
• Multiple systems need to be available
Founding Principles of VBDS
• Communication• Responsiveness• Quality• Integrity
Look for best value
Broader View of Asset ManagementAmerican Infrastructure Consortium
• Infrastructure delivery• Operations and maintenance• Rehabilitation and replacement• Financial and legal impacts• Social and economic impacts
In this view, D/B is an element only, a piece of a bigger puzzle.
Asset Management Puzzle
InfrastructurInfrastructure Deliverye Delivery
Rehabilitation and Rehabilitation and ReplacementReplacement
Financial Financial and Legal and Legal ImpactsImpacts
Social and Social and Economic Economic ImpactsImpacts
Operations and Operations and MaintenanceMaintenance
Procurement Process Issues
• Competitive bids• Competitive proposals• Areas of Concern
– Quality– Openness
Scoping Report for NB US-23 OverMiddle Branch Macon RiverStructure No. BO2-1 of 58033
Developing Bridge RepairsAlternatives (Bridge Scoping)University Region - Seven Bridges
Michigan Department of Transportation
JN-M84216
October 13, 2000
American Bar Association Code for Design/Build• Allows both• Competitive proposals allows
negotiations based on ethical business practices, no auction
• Owners need technical advice through entire process
Design Requirements Needed per ABA Code
• Features, functions, characteristics, qualities and properties that are required by the State
• Anticipated schedule, including start, duration, and completion
• Estimated budgets (as applicable to the specific procurement) for design, construction, operation and maintenance
The design requirements may, but need not, include drawings and other documents illustrating the scale and relationship of the features, functions, and characteristics of the project.
Key Issues to be Considered
• Quality– Qualifications
based selection• Initial price• Life-cycle price• Schedule• Permitting• Financing
Advantages
• Single source of quality responsibility• Possibly less change orders• Shorter “in-service” time
Disadvantages
• Less control of details– Design– Construction– Materials and equipment– Design life
• Early commitment to total project• Owner changes can have bigger impact• Faster expenditure of funds• Variance of qualifications across a team
Threat of Substitute Products or
Services
Threat of New Entrants
Competitive Forces
Bargaining Power of Suppliers
Bargaining Power of Buyers
Advanced Technology
International Firms/Management Firms (D/B/F/O, D/B/O, D/B/O/M)
DOTs/Public Owners/Utilities/Private Owners
Design-Builders, CM, Program Managers
Rivalry Among Existing
Competitors
The VBDS Approach
D/B/B D/B C/M D/B/O/F
D/B/O/M
Other
Method 1
Method 2
Method3
Selected
Delivery
Method
Process Criteria
VBDS FoundationPrinciples
ProjectCharacteristics
STEP #3: Technical Advisor applies VBDS Foundation Principles. Identifies method that meets Owner’s Outcome/Best Value Goals.
STEP #2: Owner engages technical advisor to identify appropriate delivery method based on project characteristics.
STEP #1: Available Delivery Approaches
Design/Build Engineering Opportunities
• Design/builder (lead or member of a joint venture)
• Consultant to design/builder• Responsible for developing the project
design within budgetary constraints• Responsible for developing the
construction documents to be used by the design/build team
Design/Build Risks
• Liability will vary depending on the role of the engineer
• As a lead or member of joint venture, engineer may take on full responsibility and liability for the project
• As consultant to the Design/Builder, engineer may take on the same liability or less than under Design/Bid/Build
• If not lead, no direct commitment to owner
Design/Build Benefits
• Coordination between parties• Control over budget and schedule• Conflicts are internalized
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