Design-Build P

PUBLISHED BY THE NATIONAL ENVIRONMENTAL SERVICES CENTER

By Zane Satterfield,Design-Build P. E., NESC Engineering Scientist

Summary Design-build is a method of construction where the design and construction tasks are contracted with a single entity known as the design-builder or design-build contractor. The design-build method is gaining popularity, with some projections indicating that more than half of all non-residential construction projects in the U.S. will be design-build by 2015. This Tech Brief discusses some of the aspects of the design-build method and how it might be used for water and wastewater projects.

What is Design-Build? / m o c . Design-build is a construction project delivery t o p s g

system where the design and construction o l b . 0

aspects are contracted with a single entity 2 3 s t known as the design-builder or design-build a n / / :

contractor. Design-build is more streamlined p t t h f

than the traditional method, often referred to as o y s e design-bid-build, where design and construction t r u o were clearly separated. c e g a m The design-builder is usually the general con- I tractor, but can also be the architect or engineer. By incorporating the designer and contractor, design-build minimizes the project risk for an owner and reduces the delivery schedule by overlapping the design phase and construction phase of a project. Rather than first bidding or engaging an architectural or engineering firm to design the project and then bidding out a contractor to build the project (i.e., the design-bid-build method), the design- build contractor packages the engineering design The Washington National's ballpark in the nation's capital is one of the best-known examples of a design-build project. Construction on the $630 services in with the construction. million stadium, which also adhered to green-certified building guidelines, was completed in less than two years. Historical Precedent The design-build delivery concept originates from For most of the 20th century, the concept of the master-builder model used in the construction design-build was classified as a non-traditional of structures such as cathedrals. Under the master- construction method in the U.S., which is one of builder approach, a central figure—usually the the last countries to embrace the standard of architect or engineer—held total project accounta- design-bid-build. However, design-build is rapidly bility. From inception to completion, the master becoming the preferred form of project delivery, builder was the key organizational figure and increasing from approximately five percent of the strictly liable to the owner for defects, delays, and non-residential development market in 1985 to 40 losses. The design-build system is a return to some percent today. By 2015, the Design Build Institute of the fundamentals of the master-builder concept. of America projects that this method will be used on at least 50 percent of all non-residential con- Download all of our struction projects in the U.S. at wwwTech.nesc.wvu.edu/techbrief Briefs .cfm DWFSOM137 two

PAGE OF FOUR Evaluation factorsinclude: contractor iscapableofcompletingtheproject. ifthe isdonetodetermine selection process not necessarilybasedonthelowestbid.A to finish.Thecontractororengineerchosenis neering fir financing, advertisesforacontractororengi- (water orsewersystem),afterarranging W oftheowner. istheresponsibility project ects carryaone-yearwarranty,afterwhichthe satisfied, too.Mostwaterandwastewaterproj- cation, andtheownersignsof The engineerisusuallyr been plannedwell. hasnot can becomeexpensiveiftheproject situations. They occur becauseofunforeseen neer andowner. almost always Changeorders theengi- from achangeorder changes require tasks. Fr tractors per If allowed,thechosencontractorhassubcon- thecontracttoconstruct theproject. awarded contractor withthelowestbidwouldtypicallybe tors, usuallyviaapublicadvertisement.The outforbidtocontrac- would puttheproject Next, theowner(occasionallyengineer) or sewerprimacyagency. state andlocalagencies,includingthewater thevarious through permits obtain theproper specifications, too.Theengineerwouldthen tions, andsometimesfundingagency tions, incorporatingstateandlocalregula- withtheowner’sspecifica- design theproject After beingselected,theengineerwould funding. also liningupproject while state andlocalpoliciesprocedures, would advertiseforanengineer, adheringto the owner(e.g.,awaterorsewersystem) With thetraditionaldesign-bid-buildmethod, Design-Build Differences betweenDesign-Bid-Buildand tractor hasdoneeverythingtopr complete, theengineerverifiesthatcon is Once theproject struction process. duringand after thecon- tion (qualitycontrol) ith thedesign-buildmethod,owner • factors,suchasinsur- Otherappropriate • Capabilitytoperform; • qualifications (specializedexperi- Technical • approach; Technical • • Bid amount. ance andbonding; and ence); major subcontractors); and orengineeringcontractor Past per om thesigningofcontracton,any m todotheentir for for m someoftheconstruction mance (boththear esponsible forinspec e project from start from e project f thattheyare oject specifi chitectural - - - warranty. andthe design, construction,inspection(qualitycontrol), for Theselectedcompanyissolelyresponsible required. struction mayoverlapdependingonthepermits Thedesignandcon- permits. have towaitfortheproper ished designdrawingssothatmajorconstructionwill basedonthefin- are Inmoststates,permits permits. supplies andmaterials,aslongitdoesnotrequire started. Someactivitymaybegin,suchaspurchasing designis isgivenandtheproject notice toproceed After thecontractisissuedtoselectedcompany,a is chosen,theyneedacontractorfortheconstruction. one subcontractedforthedesign.Ifanengineeringfirm or chosen, theymusthavealicensedengineeronstaff If,forexample,acontractoris complete theproject. theymusthavetheexpertiseto design-build project, a While eitheracontractororanengineercandirect six per costsby totalproject the design-buildmethodreduced associated withthedesign-buildmethod.Forinstance, Construction IndustryInstitutefoundseveralbenefits Pennsylvania StateUniversityinconjunctionwiththe by in37statesperformed A studycovering351projects Benefits ofDesign-Build Some keyaspectsofdesign-buildinclude: overdesign-bid-build. ment of33percent inanimprove- total deliverytimefordesign-buildresulted overdesign-bid-build.And, mostimportantly, thepercent runs orchange low wellsthat hadhighlevelsofnitrate. Beingcloseto onshal- relied supply. Thehomesandbusinesses there lar people about10milesnorthwest ofWichita, wasthe communities. Maize,Kansas, aruraltownof2,000 the media,thismethodis gainingpopularityinsmall havebeenpublicized in While large design-build projects gest communityinthestate withoutapublicwater T • Singular responsibility—one entityisaccountable Singular responsibility—one • • Fewer litigation claims—owners can reduce andeven Fewerlitigationclaims—ownerscanreduce • Potentialcostsavings—an integratedteamexecutes • focusison administrativeburden—the Decreased • Reducedownerrisk—adesign-builderassumesthe • • changesthatoccur Reducing changeorders—design • • e c for cost,schedule,andper eliminate litigationclaimsbyclosingwarrantygaps. andinnovativesolutions; efficient functions; asawhole,ratherthanonseparate the project risk todeliver; r needsratherthanminimumdesign formance Potential betterquality—adesign-buildmeetsper obstacles orsituations; because thedesigndidnotaccountforcertain completes workfasterwithpotentiallyfewerpr Faster delivery—collaborativepr h equir

cent ascompar B r i e f

ements; • Design-Build ders onthepr ed todesign-bid-build.Costover , Summer 2009,Vol. 9, Issue2 for ojects improved by5.2 ojects improved mance; oject management oblems; - - DESIGN-BUILD n o i t

Select a r t

Concept Preliminary Final Design & s Design/ i n Planning Design Builder Project Clearances Construction i m d A

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Design-Build- y s

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Associated Time Savings t r

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Concept Select Preliminary Final Design & Select Planning Engineer Design Project Clearances Contractor Construction

Minimal Contractor Input Extensive Contractor Input

Wichita, Maize was poised for development, but the lack The Relationship and Loyalties Among Parties of a reliable public water system hindered the town’s The design professional is not the owner’s con- potential. To encourage development and provide a safe, sultant but the contractor’s teammate. Design dependable supply of potable water, the community set professionals have contractual incentives to out to construct a complete water system. The commu- perform their services so as to further the nity and its design-build partner brought the system design-build team’s goals, which are not online in just 18 months. always in line with those of the owner. To counter this, employ a designer-led design- Considerations build, in which the engineer or architect is the Before considering a design-build approach, be sure lead member of the team. that your state allows it and that whatever funding source you use endorses it, too. The Design Professional’s Standard of Care Ordinarily, an engineer (or architect) is only The most common objection to design-build is the fear held responsible for exercising the degree of that the owner will lose control by delegating too much skill or care that the average design profes- or suffer from compromises between design and con- sional would use, and does not usually war- struction. The owner’s role simply changes from one of rant or guarantee a successful outcome for his mediating problems between disciplines (design engineer or her services. The rule for a contractor is dif- and contractor) to exploring and analyzing options to ferent, in that contractors do implicitly war- improve value for the user. Ultimately, with good per- rant that the result of services will be formance specifications, the design-build team (instead successful, provided that the design and other of the owner) becomes responsible for the success of factors over which they may have little to no the project. control is sufficient. The design-build relationship allows a change in the designer’s stan- If the owner is afraid that the quality assurance and dard of care. In the design-build concept, quality control will suffer, an independent inspection unless written into the contract, the design team can be specified for the project. Also, if a problem engineer is held to the same implied warranty is perceived, the funding agency may be able to help. as a design-bid-build contractor. Remember: whoever holds the purse strings has consid- P A erable pull. G E

Performance Warranties

According to Friedlander’s article “Design-Build—Legal In a traditional construction contract, the con- O three F

Obstacles and Solutions,” there are legal considerations tractor is asked to warrant the results of their F O with design-build construction, including the relation- work, but not the overall success of the project. U R ships and loyalties among parties, the design profes- This is because there are many other factors— sional’s standard of care, performance warranties, change primarily design—over which the contractor orders, licensing problems, insurance and bonding prob- has no control that may determine the success lems, and conflicts with competitive bidding laws.

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PAGE OF FOUR mor require a competitive process tochooseacon- acompetitiveprocess require fundedwithpublicmoneyusually Projects Conflict withCompetitive BiddingLaws impact. Onesolutionisappr thisdisparate contractual abilitytoredress thatlimittheparties’ construction projects Certain stateshaveanti-indemnitylawsfor services. bility policiesexcludeprofessional struction servicesandcontractors’generallia- omissions insuranceusuallyexcludescon and errors build parties.Designprofessionals’ betweenthedesign- therelationship affect Issues r Insurance/Bonding Pr or subcontractingwithadesignprofessional. services byjoining neering andarchitectural design-build contractorsusuallypr Therefore, licensed asdesignprofessionals. these r design-build contractorsdonotmeetallof Most different. and eachstate’slawsare engineering andarchitecture, of professional Every stateintheU.S.r Licensing Pr tives ar sometimes thespecifications,hisorherincen- forthedesignplans and fessional isresponsible category doesnot.Becausethedesign-buildpr butthethird inchangeorders, may stillresult thefirsttwocategories In design-buildprojects, any ofthesesituationsoccur: if tractor isusuallyentitledtoachangeorder constructioncontracts,thecon- In standard Entitlement toChangeOrders fessional maynotbefullyinsurable. bythedesignpro- liabilityborne professional ofthe andthenature professional, considered bythecontractormaybe of theliabilityborne Some performance. tor towarranttheproject’s thecontrac- that itbecomesfeasibletorequire forsomuchoftheproject tractor isresponsible Thedesign-buildcon- the situationisreversed. Inmostdesign-buildprojects, of theproject. the contractorsupported bythedesignpr and withthedesignprofessional agreements wanttomaintainsomecontrol. may, therefore, price.Theowner fortheproject receiving are sional’s err • Design problems (errors, omissions). (errors, Designproblems • Changedconditions(unknownsubsur- • Impactscausedbytheowner(scope • e likelytoleantowar Published byThe National Envir face obstacles);or changes, disruptionsbyowner); equir e topr elating toinsuranceandbonding ors andomissionsinsurance. ements andar oblems ofit fr om theconstructionandar oblems d howmuchvaluethey egulates thepractice e notthemselves onmental Services CenteratW opriate cr ovide engi- oss- ofes - e o - - est V Carter, William C.2006.“Design-Build:AnInnovativeApproach projects andmaybedownloaded at projects discusses oversightofdrinkingwaterandwastewater Loulakis, MichaelC.andMarkFriedlander. 2002.“Design- Loulakis, MichaelC.2002.“Design-BuildforthePublicSector Friedlander www.dbia.org Design-Build InstituteofAmerica’sWeb siteat aboutdesign-buildconstruction,visitthe more learn To For MoreInformation water utilitiestoundertakeconstructionprojects. afaster,offers wayforwaterandwaste- lessexpensive work togetherasateam.Iffollowedcorrectly, design-build owners,designers,andcontractorsmust process, entire the design-bid-build. Throughout from away shift cultural a The successfulimplementationofdesign-buildrequires Closing Thoughts for design-buildprojects. bidding onthebasisofprice,whichcouldposeaproblem competitive require levels. Somestatutesandregulations existatthestateandlocal restrictions difficult more Insomecases, tractor evenindesign-buildprojects. Beck, Peter. 2009.“WhyDesignBuild?”Accessed at References Smith, Gray.2009.“Design-BuildConceptExpands.”Accessed SOM81.pdf pdf/dw/publications/ontap/2009_tb/quality_contr The (800) 624-8301orbysendingandemailto you mayor may download website atwww.nesc.wvu.edu/techbrief.cfm. You [email protected]. For acompletelistof to Pr Kansas, Story.” group.com/alt_package/article.pdf Build—Legal ObstaclesandSolutions.”Accessedat Construction LawLibrary.AspenPublishers Schif Assistance Partnership. at www.schiffhardin.com Solutions.” ir T ginia University,P e Tech Brief Tech c www.gsoexpert.com/designbuild.htm h

oject DeliveryforRuralCommunities,TheMaize B f Hardin. r i e , MarkC.2002.“Design-Build—LegalObstaclesand f

. • licensed professional engineerand alicensed water NESC Engineering ScientistNESC Engineering Jour Design-Build der themforanominalcostbycalling prtr andpreviously for worked the West operator, . “Quality Control inConstructionProjects” “Quality Control .O. Box 6064, Morgantown, WV 26506-6064 .O. Box6064,Morgantown, nal ofManagementandEngineering Rural Matters T Virginia Bureau ofPublicVirginia Health, ech Briefs Environmental Division. Engineering . , Summer 2009,Vol. 9, Issue2 T ech Briefs An EqualOpportunity/AffirmativeActionInstitution for fr (Fall). RuralCommunity . ee fr Zane Satterfield Zane www.nesc.wvu.edu/ , visittheNESC . om thesiteor www.beck- . Chicago: is a ol_DWF .”