Civil Engineering Reference
In-Depth Information
the actual bid price, because economic factors, such as competition, commodity pricing,
and subcontractor pricing will impact costs. In the event that the contractor's bid price
is higher than the engineer's estimate, there could be a redesign, followed by rebidding.
When using the DB process, the owner has more options. The owner can issue RFP
and/or RFQ documents that describe the necessary performance parameters and the
maximum price that the owner is willing to pay for the completed facility. Bidders will
respond with a design that meets the stated requirements at the required price, if it is
possible.
The owner can issue conceptual documentation that describes the necessary perfor-
mance parameters and receive feedback, in the form of a bid, about the actual price of
the work before the expense of detailed design has been incurred. While it not recom-
mended that the DB bid be used to check previous estimates, it does allow the owner the
opportunity to re-examine the project elements prior to beginning substantial amounts
of work. The owner can also work with the DB professionals to adjust the cost, schedule,
performance, and quality parameters until an acceptable project is developed.
Gap Analysis—Is the Whole Project Covered?
A gap analysis is not unique to the DB process, and it should be performed on every proj-
ect to make certain that the whole project is being handled and that gaps in the delivery
process do not exist. The roles of the various parties involved in a DB effort are differ-
ent than in a traditional approach, and it is important that the project be reviewed and
discussed thoroughly so that all activities are identified and assigned. Particular atten-
tion should be paid to transitional activities between the owner, stakeholder agencies, the
conceptual designer, and the detailed designer (i.e., design-builder). For example, permits
that would typically be obtained by the owner or designer in a traditional approach may
have to be obtained by the design-builder once design is sufficiently complete.
Risk Management
In traditional design, risks are identified during the planning and preliminary design
stages. The designer and the owner make decisions as to how these risks will be managed.
If a risk is mitigated by design, the contractor is only obligated to build what was designed
and is not responsible for the success of the solution. If risk is handled through allow-
ances, the contractor will be paid for extra effort to deal with the problem as directed by
the owner. If the risk is monitored and insured, the contractor will not be responsible in
the event of an occurrence (e.g., flood or earthquake).
In a DB project, the design-builder needs to be an active participant in dealing with
risks. It is very important that the owner accurately and honestly convey information
related to any identified and potential risks to the design-builder so it can accommodate
these risks in its design, construction approach, and bid cost. Example risks include avail-
ability of water for startup, schedules for tie-ins with other infrastructure, unknown sub-
surface risk, and unknown water quality.
A risk register is one tool for monitoring risks and recording proposed mitigation
approaches. A risk register can be included in the RFP and/or RFQ documentation to
record the risk information that is collected prior to bidding.
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