Design-Build Contract Risk Allocation - Design-Build for Water and Wastewater Projects - page 106

design-builder to assume responsibility for the design and construction of the project; as a
result, the design-builder (not the owner) assumes ultimate responsibility for the adequacy
of the design, construction of the work consistent with the contract documents, and deliv-
ery of a project that meets the owner's requirements.
Second, owners have legislatively imposed funding constraints. It is critical that fund-
ing needs be established by a certain date. Once established, funding cannot easily, or if
at all, be expanded or overrun. Design-build contracting permits the parties to establish
the feasibility of the project much earlier in the process, because the entity responsible for
the design is at the same time estimating construction costs. Design-build contracting, if
done properly, often results in cost savings, because design and construction personnel
functioning as one team are better able to evaluate alternate designs, to engage in value
engineering, and to resolve construction issues as part of the design effort.
Third, water and wastewater projects are extremely time-sensitive. Owners of these
projects need to have them constructed as quickly as possible to meet legislatively imposed
requirements, which is no small feat given their size and complexity. Design-build con-
tracting permits the parties to fast-track the project so that they can procure materials and
equipment and commence construction before completion of the entire design and the
development of fully completed construction documents.
Fourth, DB contracting has the potential to foster a collaborative spirit between the
owner and the design-builder, so that the owner's specific requirements can be defined,
developed, and refined with the design-builder, the entity that can address design, con-
structability, and cost issues at the same time. This collaborative interplay increases the
likelihood that the completed project will be well conceived and offers the best project
for the owner's budget.
Fifth, unfortunately, the design and construction of a complex project, such as a
water or wastewater plant, contain all the ingredients for a dispute ready to happen. These
projects are time-sensitive and expensive. Design-build contracting offers the greatest
opportunity to minimize, if not eliminate, disputes. The design-builder is the single point
of responsibility for quality, costs, and timely completion. Because the design-builder,
rather than the owner, is responsible for design and construction conflicts, the likelihood
of a dispute between owner and design-builder is significantly reduced.
Although DB contracting offers advantages over more traditional project delivery
systems, it is important to recognize that DB contracting, in and of itself, is not a panacea
for eliminating all risks associated with the design and construction of a water and waste-
water project. The DB process also has certain limitations and presents certain challenges
that must first be understood and then managed if the project is to be a success.
The first challenge to be addressed is the owner's concern that it no longer has con-
trol over the design; the design is now under the design-builder's control, not the own-
er's. Many owners unfamiliar with the DB contracting fear that the design-builder will
cut corners in the design to reduce the overall cost of the project. This fear is exacer-
bated because the design-builder is asked to guarantee its price based on an incomplete
design. The second challenge presented by the DB process has to do with the DB team
itself. Design-build contracting completely alters the relationship between designer and
builder. Design-build teams that fail to understand the new relationship that has been
created and the strategies for structuring and managing the relationship are in for a rude
and costly awakening.