Design-Build

Revision as of 08:57, 21 February 2021

WIP (citing and references not yet finalized)

Abstract

Design-Build is a project delivery system, mainly used in the construction industry. The method utilizes single source responsibility which differs from the more traditional dual or triple source responsibility format used in Design-Bid-Build. The responsibility is defined by contracts, where the contract in the Design-Build project binds the architect and the contractor under one contract with the project owner. One of the key reasons for doing so is to create a shared responsibility between the architect and the contractor, and thereby involve the architect in the construction phase, and the contractor in the design phase.

Design-Build projects can be further divided into two types; Architect-led Design-Build projects and Contractor-led Design-Build projects. In these cases the Design-Build entity is led either by the architect or the contractor, which affect the management structure and responsibilities in several ways with different pros and cons.

A project delivery system such as Design-Build is essential to project management in construction projects, and especially ties into project procurement management, where a clear definition of the project delivery method is needed. The defining of a project delivery method is a critical deliverable of the procurement strategy as it is defined in the PMI standards for project management. The procurement strategy should define a project delivery method, the contract payment types, and the procurement phases.

Design-Build as delivery method in construction projects enables the initiation of early on site construction, because the method facilitates overlap in the design and construction phases. Furthermore, the owner is able to minimize risks by assigning one contract to the Design-Build entity, however the owner must be willing to hand over some of the control and responsibility for design details. Technically complex projects can also benefit by integrating the contractor's expertise in the early design and development phases.

^[1].

Choosing the right project delivery method

Before choosing a project delivery method is is important that the owner of the project is aware of the different methods that are available, and thoroughly understand for which project types each method is the most applicable, as well as pros and cons for each method. Some of the most commonly used methods used in construction projects are listed below^[1]. The description are only of the most simple version, and hence the delivery methods are not extensively elaborated upon in this article.

The project owner should consider several aspects before deciding which delivery method should be used. Design-Build Institute of America (DBIA) has developed a document which acts as a guide for projects owners concerning this specific decision process. The main aspects of consideration include owner control, owner relationships, project budget, project schedule and owner risk. Link to the document can be found in the Annotated Bibliography. https://dbia.org/wp-content/uploads/2018/05/Primers-Choosing-Delivery-Method.pdf

Why choose Design-Build

https://www.pmi.org/learning/library/selecting-best-project-delivery-system-8910

Some of the pros of design build are presented below. https://www.levelset.com/blog/design-build/

Pros:

• One liable party: Because of single source responsibility managed by one contract, conflicts are easier to locate and resolve. The Design-Build entity are more motivated to resolve internal conflicts, instead of pointing fingers.
• Efficiency: Also related to the single source responsibility, improving communication efficiency as there are fewer external parties involved in the project. Project time can also be reduced due to the overlapping of design and construction phase.
• Collaboration: Collaborative synergies across expertises are more likely to be harvested, improving efficiency and reducing conflicts.
• Project costs: Especially related to the reduced project time of initiating the building phase befor the design phase is finalized. This can potentially also reduce costs by including construction expertise in the design phase to discover and discuss elements that might affect the building phase.
• Direct payment: Since the Design-Build entity keeps all payments and requests and approvals under one roof, this should be expected to perform more consistently, create fewer conflicts, and increase efficiency.

Management Structures

When describing project delivery methods in the construction sector, a few roles reappear across the different methodologies. The Design-Build methodology, like many other delivery methods, consists of owner, architect and contractor, but furthermore defines the 'role' of the Design-Build entity. This entity always consists of an architect and/or engineer as the designer, and a contractor as the builder. However the management structure of the Design-Build may vary, and is usually defined in one of the following ways https://www.levelset.com/blog/design-build/:

https://www.lorman.com/resources/possible-design-build-team-structures-15853

Architect-led Design-Build projects: The architect is the lead of the Design-Build entity. This is usually the case when the construction project concerns high-end residential construction, hospitals, museums and building alike, where aesthetics and architectural strengths are prioritized.

Contractor-led Design-Build projects: The contractor is the lead of the Design-Build entity. This is most common when the project is functionality based, such as infrastructure and industrial factories. Here the strengths of the contractor are prioritized.

Joint venture:

https://dbia.org/wp-content/uploads/2018/05/DBIA-Position-Statement-Organization-Design-Build-Team.pdf

Vertical or Horizontal Organization:

https://www.theaiatrust.com/whitepapers/design-build-teams/right-contractual-structure.php

Implementing and Succeeding with Design-Build

The following suggestions for implementing and succeeding with Design-Build projects is largely based on the publication "Design-Build Done Right - Best Design-Build Practices" created by the Design-Build Institute of America (DBIA) https://dbia.org/wp-content/uploads/2018/04/Best-Practices-Universally-Applicable.pdf. The publication acts as a guide for Design-Build projects from procurement through contracting and at last the execution and delivery of the project. The guidelines are created to suit most Design-Build projects, and are thus formulated generically. The guidelines for DBIA are further more supported by Design-Build practices from several other sources highlighted in the text.

Procurement

Prior to executing the procurement, the owner should thoroughly investigate wether Design-Build is suited for the project, as well as how well it fits the owners organization. If the owner fails to do so, the potential benefits of using Design-Build will not be realized. Some of the key best considerations can be found in the section "Choosing the right project delivery method". When the owner, organization and relevant stakeholders are committed Design-Build as project delivery method, the procurement process can commence.

The procurement route of a Design-Build project will vary from project to project, depending on management structure as well as the specific project. The following illustrates a generic example of steps required by the owner in the Design-Build procurement process. The steps are based on material from LORMAN https://www.lorman.com/resources/design-build-procurement-process-15875, and backed up by the guidelines from DBIA. The procurement plan should reflect the values of Design-Build, and the reasons why the owner chose the delivery method for the project.

1. Strategic Facility Planning: Analysis of facility requirements to establish facility development plan.
   • bla bla
2. Program Definition: Establishment of project requirements. This might include definitions of facility dimensions, performance requirements, standards that must be followed etc.
   • bla bla
3. Request for Qualifications (RFQ): The defining of the qualifications needed by the Design-Build entity to execute the project. This can be anything form skill and experience to price and quality.
   • bla bla
4. Qualifications Statement: The advertising of the developed RQF to several Design-Build firms who then replies with qualification statements. The owner now chooses a few firms (normally three to five) who fulfill the RQF the best.
   • bla bla
5. Request for Proposals (RFP): The owner now communicate the requirements for the project to the selected firms. This is sent in the format of an RPF which contains e.g. design criteria, contract requirements and other information needed in order for the Design-Build firms to reply with a proposal which fits the requirements.
   • bla bla
6. Pre-Proposal Conference: Optional meeting where the chosen firms can ask further questions regarding the project, before submitting their proposal to the owner.
   • bla bla
7. Proposal Submission and Evaluation: Evaluation of the submitted proposals. This is based of predetermined factors e.g. price or design, but usually a combination og several. This step is critical for the owner, since it will determine the ultimate outcome of the project.
   • bla bla
8. Contract Award: Contracts between owner and the chosen Design-Build entity are formulated and signed.
   • bla bla
9. Documents/Construction: Design and construction phases are initiated and overlap as specified.
   • bla bla

Contracting

When formulating the contracts for a Design-Build project, DBIA promotes fair, clear and balanced contracts promoting collaboration among the participants. This is of course applicable to most contracts, but collaboration should especially be highlighted in Design-Build contracts, since the project phases of design and build are intended to overlap and benefit from this. It is further more important that the owner not only addresses the nature of the contract between owner and Design-Builder. But also the contracts between Design-Builder and other involved parties. DBIA recommends:

1. Contracts between owner and Design-Build entity should reflect Design-Build values
2. Contracts between Design-Build entity and the team members, subconsultants and subcontractors, should reflect Design-Build values

The Design-Build values as well as the reasons for choosing Design-Build as delivery method should be imbedded in procurement strategy, and thus also into the contracts between also parties in order for the project to benefit from the methodology.

Free examples of Design-Build contracts can be downloaded at consensusdocs.org https://www.consensusdocs.org/contract_category/designbuild/.

Execution and Delivery

1. All members of the Design-Build entity should be educated in the methodology and be aware of main differences from other delivery methods.
2. The project participants should be able to work under the same roof as much as possible to ensure collaboration.
3. The project team including owner, main stakeholders and key members of the Design-Build entity should establish processes to facilitate collaboration and communication throughout the project.
4. Focus from the project team on aligning the execution of processes across design and commissioning/turnover, in order to ensure transparency and quick decision making if necessary.

Team Mentality

https://www.constructiondive.com/news/the-pros-and-cons-of-design-build/573254/

Limitations

Cons of Design-Build

Some of the cons of design build are presented below. https://www.levelset.com/blog/design-build/

Cons:

• Conflicts of interest: Depending on the contract, conflicts of interest might arise e.g. between the owner and the contractor. The owner might in interested in the highest possible quality, whereas the contractor wants to reduce the costs. This risk can be reduced by establishing a budget which is realistic in concern to the interest of the involved parties.
• Less innovative design: By including contractors in the design phase, it must be expected that the contractor is more interested in working with methods and designs known to be the most efficient. This might influence the designers, as well as the owners who might aspire for the project to be innovative.
• Requires more engagement from the owner: The owner must be careful, and hold significantly more responsibility, when signing the Design-Build contract, and ensure that the entity has the skill and ability to deliver the project.
• No bidding restricts access for subs: Subcontractors might have a harder time getting work since the bidding phase does not exist in Design-Build. The subcontractors are often chosen based on experience or different preselected parameter.
• Increased liability: The contractor, depending on the contract, might be liable to more parts of the project than usual.

What not to expect from Design-Build

bla bla bla

Annotated Bibliography

• 2014. Design-Build Done Right - Best Design-Build Practices. 2nd ed. [pdf] Design-Build Institute of America. Available at: <https://dbia.org/wp-content/uploads/2018/04/Best-Practices-Universally-Applicable.pdf> [Accessed 20 February 2021]. Document developed by the Design-Build Institute of America containing containing best practices for procurement, contracting and delivery of Design-Build projects. For each best practice, a series of implementing techniques are also described. The document is not focused on any specific sector nor project type, but highlights best practices and implementing techniques of generic nature essential to succeed with the Design-Build methodology.

• Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th Edition). Project Management Institute, Inc. (PMI), pp. 459-501 Book providing best practices and standards for project management. The given pages refers to chapter 12 "Project Procurement Management" including the choice of project delivery system.

• Book text

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References

1. ↑ ^{1.0 1.1} Design and build procurement route. (2021). Retrieved 21 February 2021, from https://www.designingbuildings.co.uk/wiki/Design_and_build_procurement_route