RFPs: Selecting the Design-Builder - Design-Build for Water and Wastewater Projects - page 194

Table 15-3. Risks to be add ressed in an RFP
Risk

Description

PermitAcquisition Identificationofthepartybearingtheresponsibilityfor

developmentofdocumentationandacquisitionof
mandatedpermitstoallowtheprojecttobebuiltand/or
operated

DesignCriteria Ifusingprescriptivecriteria,definewhatresponsibilitystays

withtheowneranditsadvisorsandwhatgoeswiththe
design-builder.Ifusingaperformance-basedcriteria,
definewhatifanyperformanceresponsibilitiesremain
withtheowner,asthemajorityoftheriskforperformance
normallyispassedtothedesign-builder(seealso
chapter 13).

FacilityPerformance Definewhatresponsibilitylieswiththeownerandwhat

withthedesign-builderforrisksotherthanbeyond
performanceandacceptancetesting

SiteAcquisitionand
Condition

Theresponsibilityforacquisitionandapprovalofasite
usuallyremainswiththeowner.Theissueofsubsurface
conditionriskmustbedefinedasitcanbeasource
ofdisagreementifnotclarifiedbothintheRFPand
agreement.

CostandSchedule Definewhethertheprojectcosttotheownerwillbein

theformofaguaranteedmaximumprice(GMP)ora
stipulatedsum(i.e.,lumpsum)
Definespecificdatesforsubstantialandfinalcompletionas
wellascompletionofacceptance(orperformance)testing

CommercialRisks Definedintheagreement(seealsochapter9)

RFP EVALUATION CONSIDERATIONS

The RFP should also disclose the methodology for evaluating and scoring proposals.
Chapter 17 provides a description of commonly used evaluation scoring methodologies
for DB proposals.
Price is usually one of the most important criteria used by owners to select a design-
builder. Early in the procurement process, owners must establish a method for evaluating
and comparing prices from competitive proposals. In addition, the owner must evaluate
price relative to the best overall value for the project where nonprice factors, such as proj-
ect quality, risk allocation, schedule, and qualifications, are balanced against price. Too
often, owners select design-builders by choosing the one with the lowest initial capital
cost; however, this selection method may not represent the best value to the owner on the
project.
While this selection initially looks favorable to ratepayers, owners may find that even
when the project is inexpensive to build, the operations cost is higher than anticipated. It
is recommended that owners consider both capital and operations costs to establish the