Design-Build Highway Projects: A Review of Practices and Experiences Final Report PRC 15-53 F Design-Build Highway Projects: A Review of Practices and Experiences Texas A&M Transportation Institute PRC 15-53 F November 2016 Authors Jeff Borowiec, Ph.D. Nick Norboge Brett Huntsman Cannon Schrank Wayne Beckerman 2 Table of Contents List of Figures ................................................................................................................................ 5 List of Tables ................................................................................................................................. 5 Executive Summary ...................................................................................................................... 6 Design-Build versus Design-Bid-Build ...................................................................................... 6 Summary of Literature Review ................................................................................................... 6 National Case Study Summary ................................................................................................... 7 Design-Build in Texas ................................................................................................................. 7 New Texas Legislation on Design-Build .................................................................................... 9 Introduction ................................................................................................................................. 10 Definition of Design-Build in Texas ......................................................................................... 10 Notable Facts about Design-Build ............................................................................................ 10 Location of Design-Build Projects in Texas ............................................................................. 11 Overview of Report ................................................................................................................... 12 Literature Review ....................................................................................................................... 13 Key Characteristics ................................................................................................................... 14 Definition of Project Delivery Methods .................................................................................... 15 Design-Bid-Build ................................................................................................................................................ 15 Design-Build ....................................................................................................................................................... 16 Design-Build Variations ..................................................................................................................................... 18 Construction Manager at Risk ............................................................................................................................ 19 Cost Savings .............................................................................................................................. 20 What Is Claimed ................................................................................................................................................. 20 What the Literature Shows ................................................................................................................................. 21 Time Savings ............................................................................................................................. 23 What Is Claimed ................................................................................................................................................. 23 What the Literature Shows ................................................................................................................................. 24 Quality Assurance ..................................................................................................................... 26 What Is Claimed ................................................................................................................................................. 26 What the Literature Shows ................................................................................................................................. 27 Summary of Literature Review Findings .................................................................................. 28 Cost Savings ....................................................................................................................................................... 28 Time Savings ...................................................................................................................................................... 28 Quality Assurance ............................................................................................................................................... 28 Trends ................................................................................................................................................................. 29 Design-Build Projects in Other States....................................................................................... 30 Case Study States ...................................................................................................................... 30 Key Findings ............................................................................................................................. 31 Unique Legislation .............................................................................................................................................. 31 Claimed Benefits ................................................................................................................................................ 33 Design-Build Projects in Texas .................................................................................................. 34 Legislative Authority ................................................................................................................. 35 Contrasting Design-Build and Comprehensive Development Agreement Legislation ............ 36 3 Evolution of Design-Build Legislation in Texas ....................................................................... 37 TxDOT Process for Determining Project Delivery Method ..................................................... 40 Design-Build Procurement in Texas ......................................................................................... 41 Process to Issue an RFQ ..................................................................................................................................... 41 Process to Issue an RFP ...................................................................................................................................... 43 Contract Format ......................................................................................................................... 44 Alternative Technical Concepts ................................................................................................ 45 Summary of Key Findings ......................................................................................................... 46 Cost Savings .............................................................................................................................. 46 Time Savings ............................................................................................................................. 47 Quality Assurance ..................................................................................................................... 47 Procurement Length .................................................................................................................. 47 Impacts on Small Businesses .................................................................................................... 47 Summary of Texas Highway Design-Build Projects ................................................................ 49 References .................................................................................................................................... 52 Appendix A: State Case Studies ................................................................................................ 54 Appendix B: Texas Project Summaries .................................................................................... 70 Appendix C: TxDOT Project Funding Sheets........................................................................ 102 4 List of Figures Figure 1. TxDOT Design-Build Project Contracts Executed in 2009–2015. ............................... 11 Figure 2. Project Delivery Method Risk and Control Comparison. ............................................. 13 Figure 3. Design-Bid-Build Project Delivery Method. ................................................................. 15 Figure 4. Design-Build Project Delivery Method. ........................................................................ 16 Figure 5. CMR Project Delivery Method. .................................................................................... 20 Figure 6. Total Cost Change Comparison of Design-Build versus Design-Bid-Build. ................ 23 Figure 7. Comparison of a Typical Design-Build