Civil Engineering Reference
In-Depth Information
material bonds within the state of the project; (4) insurance in compliance with owner
requirements; (5) background and reference checks; (6) history of disputes and litiga-
tions; (7) description of relevant DB experience; and (8) qualifications and experience of
the design-builder including all subcontractor's resumes, particularly for each of the key
personnel committed to the project.
Another important consideration during the selection process is making the design-
builder aware of certain contractual issues, such as indemnification clauses, limitation of
liability provisions, and dispute resolution methods. If these are not discussed with the
design-builders, misunderstandings or disputes can occur.
Understanding Design Development in the Proposal Phase
The goal of the design-builder is to be selected. To achieve that goal, the design-builder
will work diligently to address the needs of the project with the most cost-effective design
and construction plans. Design-builders generate full proposals that are very competi-
tive on price as well as on all of the issues that are critically important to the success of
the project. Proposal development by the design-builder is very costly because designs
(the level of design varies) are generated, and these are uncompensated, time-consuming
efforts that must be submitted to the owner in response to the RFP.
Although having more competitors for a project is often viewed as beneficial, it can
sometimes be detrimental in the DB setting. Design-builders may choose to not pursue
the project if too many teams have been short-listed, or if they view their prospects of
being selected as low relative to the level of effort needed to submit a proposal. Some
owners choose to offer a monetary stipend to all of the short-listed teams that develop a
fully compliant proposal. This approach is an incentive to proposers to exert the effort to
enter the competition.
Prioritizing the Goals of the Project
The owner should base the selection of the delivery method on the owner's goals for the
project. In DBB, the cost of construction is the basis, with the low bid being selected. For
DB, the cost of the project is typically a goal, but other factors are often considered. This
flexibility in establishing project goals is one reason that DB is becoming more popular
with owners.
A comprehensive evaluation of the owner's goals is needed, and those goals are then
prioritized. Goals such as community awareness, public outreach, aesthetic and func-
tional design, construction at the lowest possible cost, reduction of operational costs,
maintenance costs, and life-cycle costs are only a few of the goals that a public agency
must evaluate and prioritize.
Establishing and prioritizing goals is important, because as the project progresses,
these goals can be the basis for decisions. For example, the owner is constantly being
presented with questions about whether to allocate funds during design to increase func-
tionality and decrease future life-cycle costs of the project, and this is contrasted with the
option to not proceed with this scope of work in the DB contract, which would maintain
the expected cost of the project. When these questions arise, owners can compare the
impact against the stated and prioritized goals for the project.
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