Design-Build Procurement Approaches - Design-Build for Water and Wastewater Projects - page 76

Table 7-4. Advantages and disadvantages for direct negotiation selection
Advantages

Disadvantages

Quick procurement process May not be permissible under state law,

except for emergency situations

Negotiated cost that owner determines to
be a competitive market price

“Blank check” issue; no assurance the price
is the best or in line with competitive
marketplace

Prior successful experience with
design-builder

No competition, thus has appearance of
impropriety

“Make it or break it” negotiations Design-builder may not have the experience

and knowledge for the project (if prior
experience was a different scope, etc.)

Table 7-5. Advantages and disadvantages for qualifications-based selection (QBS)
Advantages Disadvantages

Maintains the required competitive process
(competitive bidding can be achieved)

May not be legally permissible

Substantially reduces procurement time and
cost

Competitive price proposal not provided

The most-qualified design-builder is selected
for project

Detailed technical information not provided

Owner negotiates final scope, project
quality, price, and schedule

Is counter to “public low bid” psyche
and desire to receive prices through
competitive bidding

Life-cycle cost considerations can be
included in design very easily; owner
can make scope and pricing decisions
based on life-cycle costing and ease of
maintenance and operability

Could be a “tough sell” politically even
though legally permissible

Integrated collaborative approach
maximized

Potentially new procurement territory for
owner; thus a steep learning curve

Higher quality (e.g., constructability, owner
preferences, and subcontractor screening)

May need to engage a procurement
advisor, which adds to the project's cost

Owner has high degree of control in design
process with regard to decisions on
scope, project quality, price, and schedule

High level of involvement of owner's staff
during design thus diverting staff from
other responsibilities

Virtually all change orders are eliminated