What is Design Build?

Design-Build is a method of project delivery in which one entity (the design-builder) forges a single contract with the project owner to provide both architectural, engineering design services and construction services.Source: Design-Build Institute of America

WELCOME TO

DESIGN BUILD

MIRACLE NIGHTMARE?

Design Build Panel

Wayne Larsen – Parsons Brinkerhoff

Tom Loo – Alberta Transportation

Karen Stein – Utah Department of Trans.

ROUND TABLE DISCUSSION

U.S. R/W Perspective

Ms. Karen Stein, SR/WA, R/W-RAC

Deputy Director for the Utah Department of Transportation

Traditional Design Bid Build

Plan

UDOT Staff or Consultant

Clear ROW

UDOT Staff or Consultant

Design

UDOT Staff or Consultant

Build

UDOT Staff or Consultant

Design Build

Plan + 30% Design

UDOT Staff or Consultant Design

Design BuildConsultant Team

Clear ROWDesign BuildConsultant Team

BuildDesign BuildConsultant Team

When is Design Build a good idea?

Projects where in-house resources are not sufficient

Projects that can benefit from fast-tracking Projects with a high need for innovation Projects on an Interstate Risks known and transferable

With Design Bid Build(the traditional model)

In DBB projects there is a balance between Scope Schedule Budget

With Design Build

It is all about the Schedule!

Design Build from the U.S. Agency’s perspective

Benefits

Identify and manage risk Reduce acquisition time line Encourage negotiated settlements Encourage design to mitigate “damages” Encourages use of effective scheduling methods and software Expands DOT resources for Acquisition/Relocation Process DB incentives help promote implementation of an effective Public

involvement plan

Design Build from the ROW perspective

Risks

Increased overhead and direct acquisition and relocation costs Potential for coercive acquisition methods Increased number of condemnation cases & admin settlements Potential for precedent setting practices which are out of compliance

with URA and or UDOT ROW Policies and Procedures. Increased time for each ROW task due to increased hand offs between

DB and Central DOT ROW Delay Claims if DOT fails to meet schedule requirements

Issues for ROW with Design Build

The Selection Process Right of Way section of RFP must be

sufficiently and accurately detailed Selection Team must include a ROW Staff

person ROW component of the DB Proposals may

not be sufficient to affect the overall selection of the DB team.

Design Build from the Engineering point of view

Benefits Early known cost Reduce delivery time Reduce design errors Improve Constructability Identify and manage risk Encourage innovation Less detail required in

design Expands UDOT resources

Risks• Proposal costs

• Innovation limited to contractor experience

• Third Party Delay

Canadian Perspective

Mr. Tom Loo, P. E.

Executive Director of Major Capital Projects for Alberta Transportation

Ring Roads

The Premier and the Government of Alberta have made a commitment to complete the ring roads in a free flow condition around the cities of Edmonton and Calgary

The majority of the land required for these major freeways were purchased by the province in the 1970’s

Current Status of Ring Roads

Segments of Anthony Henday Drive in Edmonton and Stoney Trail in Calgary are currently open to traffic

Planning, design, and construction is continuing on all remaining segments of the ring roads

Edmonton Ring Road

Calgary Ring Road

Project Delivery Mechanisms

Traditional Design-Bid-Build Projects up to approximately $100 million Majority of projects delivered using this method

Design/Build Projects approximately $100 to $300 million One project being delivered using this method

Public Private Partnerships (P3) under a Design/Build/Finance/Operate (DBFO) agreement

Projects approximately over $300 million Two projects designed, constructed and currently in operations Two other projects being delivered using this method

Anthony Henday Drive – Stony Plain Road Interchange

Being delivered through Alberta Transportation’s first design/build contract

Includes 50 lane km of new and rehabilitated roadway and seven bridge structures which will provide for a free flow systems interchange

Anthony Henday Drive – Stony Plain Road Interchange

Anthony Henday Drive – Stony Plain Road Interchange

Design/Build Procurement commenced in summer 2008 Issued RFQ in August 2008 Short-listed to three proponents Issued RFP September 2008 Executed agreement with preferred proponent February 2009

Contract price of $168.6 million

Construction commenced April 2009

Traffic availability scheduled for October 15, 2011

Design/Build Advantages

Cost certainty Schedule certainty Compressed schedule (fast-track design and

construction) Clearly defined project scope Risk transfer Opportunity for innovation

Design/Build Disadvantages

Clearly defined project scope Design must be further advanced for accurate pricing Unknowns removed (geotechnical, etc.) Regulatory issues resolved in advance (risk not

transferred) Less “control” by owner during

design and construction

Design/Build Disadvantages

Clearly defined project scope Design must be further advanced for accurate pricing Unknowns removed (geotechnical, etc.) Regulatory issues resolved in advance (risk not

transferred) Less “control” by owner during design

and construction

Design/Build Disadvantages

Potential for quality issues Costly procurement process Not ideal for projects with:

Geotechnical unknowns Environmental issues Utility issues Any 3rd party which may add risk to contractor

Design/Build Procurement Process

Detailed Technical Requirements Pass/Fail criteria for technical submissions by proponents Allow multiple runs at the gate to achieve pass within a set

time period Must be compliant technical proposal (pass) to proceed to

price submission Lowest price wins

Quality Management

Quality is very important to the owner Quality Manager required and evaluated as part of

RFQ Quality Management System must be ISO compliant Contractor responsible for overall Quality Control

and Quality Assurance Owner has maintained rigorous quality management

oversight

Elements of Design/Build

Utility cost sharing threshold Progress payments during construction 10% holdback Late completion penalty of $10,000 per day 2-year warranty

Land Acquisition

Owner best party to manage the risk of property acquisition

In general, risks not properly allocated or mitigated will ultimately be transferred back to the owner through the bid price

Ideally, all required land should be acquired prior to the start of the procurement process

Majority of required land purchased by the provincein the 1970’s

Land Acquisition

Some slivers or small parcels required for design and construction

Private contractors do not have the ability to expropriate property if required

Property acquisition can be a lengthy process and negate the advanced schedule benefits of Design/Build

Land Acquisition

Where the required sliver or parcel of land was not obtained prior to procurement, Design/Build agreement specifies when the required land will be available

Provincial staff continued to work during procurement period and early construction period to secure required land

Contractor required to mitigate impacts of not having required land at start of construction

Process has worked reasonably well

Current Status of Design/Build Project

Ahead of schedule

On budget

Good quality

Good working relationship with contractor

DB Consultant Perspective

C. Wayne Larsen, SR/WA, R/W-AC

FORBES RatesBest & Worst Cities for Commuters

Forbes ranked Salt Lake City the best city in the country for commuters (FEB 16, 2010)

"One of the reasons we are ranked so high by Forbes is because we have such a comprehensive transportation system."

"One of the biggest, most aggressive, and most successful rail expansion program in the country right now,"

UTA – FRONTLINES 2015 PROGRAM

FRONTRUNNER CRS

MID-JORDAN LRT

DRAPER LRT

WEST VALLEY LRT

AIRPORT LRT

UTA – FRONTLINES 2015 PROGRAM

70 Miles in 7 Years (2015) Using a Design Build team approach 70 Miles in 5 Years (2013)

The Most Important Lessons Learned by UDOT ROW

The RFP is your controlling document Write and re-write the RFP to make sure all expectations are

clearly written A commitment to oversight is required by the DOT

Don’t underestimate the amount of time and number of resources this will require

Hold the DB accountable, be assured that the DB will hold the DOT accountable

Manage Risk wisely and make the DB retain the responsibility of clearing ROW after the NTP date as stipulated in the RFP

Additional Lessons Learned

Monitor the QC/QA process to make sure it is adequate and effective

Have a strong Public Information component of the DB team

Make sure the DB carefully plans and conducts effective Community and Neighborhood focus meetings

Identify and work with 3rd party stakeholders early in the process

Include utility, outdoor advertizing signs, rail roads, local agency and or 3rd party agreements in the environmental document if possible.

If, not in the environmental agreement, develop utility, local agency and or 3rd party agreements as early as possible

DESIGN BUILD

ROUND TABLE DISCUSSION

Thank you

kstein@utah.gov (801) 965-4057

Tom.Loo@gov.ab.ca (780) 913-0330

Larsen@pbworld.com (801) 550-9259

History of DB with ROW in Utah

I-15 (prior to 2002 Olympics) Reconstruction UDOT cleared ROW for Residential

properties, DB team cleared ROW for Non-Residential properties

Under traditional DBB- 8 years estimated time to complete the construction

Actual under DB – completed in 4 years

Current DB ROW Projects

Pioneer Crossing * (I-15 Interchange) (Region 3) I-15 Core * (Region 3) SR-68; Bangerter to Saratoga Springs (Region 3) 114th South (I-15 Interchange) (Region 2) Fort Lane Interchange (I-15 in Region 1) 6200 South CFI (SR-68) (Region 2)

See UDOT’s website for interactive video of these highly innovative projects: www.udot.utah.gov (Under public/innovations)

Projects with specific innovative components

Pioneer Crossing -- Diverging Diamond Interchange (DDI) and Accelerated Bridge Construction (ABC)

S.R. 92 -- Commuter Lanes Express Lanes--I-15 Core Continuous Flow Interchange (CFI) SR-68

Details about each project can be found on the Udot website under public info/innovations and or under Projects.

Home page is www.udot.utah.govVideo overview of UDOT’s program with emphasis on innovations is available on

this website:

RFP must describe the specific Scope of Work

1. Prepare list of parcels with high priority 2. Determine clear scope of work for the ROW Design3. Prioritize 3rd party entities and all utilities4. Provide the DB with a list of properties already acquired or which

will be acquired by the DOT 5. Determine whether the DB will be responsible for the Closings and

if so, will they provide Title Insurance 6. Detail who will have signature authority for every step of the

process Just Compensation Pre-Approval of Admin. Settlement amounts Contracts and or Settlement Authority for Mediations, Arbitrations and

Condemnations. Relocation Claims

7. Develop a negotiated Flow Chart with the DB 8. Meet and discuss status on a weekly basis9. Track all hand offs to and from the agency (using a shared system if

available) IE using our in house EPM system, or the DB’s tracking system. Agree on the method to be used to track the process, status and deliverable

Best Practice RE: Scope of Work

Based on UDOT DB Projects

DOT should begin early acquisition process (total acquisitions & complex acquisitions or 3rd party involvement)) as soon as possible once the project has Environmental Clearance

Purchase based on 30% design for the widest estimated footprint to include all potential easements

Transfer the responsibility of clearing ROW and the Risk as of the Notice to Proceed (NTP) Date.

Appraisal/Valuation Issues

Consistency in methodology and use of comparable sales data

Out of state appraisers and review appraisers are not recommended, out of necessity out of state reviewer may be ok but not ideal.

Single review appraiser or at least one reviewer per identified segment of the project for consistency purposes

Acquisition Issues

Monitor to ensure that policies and RFP are followed Require good faith negotiations Do not allow DB to use Right of Entry (ROE) unless other means to acquire

have been exhausted Use Right of Occupancy Agreement (ROO) responsibly and only if owner is

willing to negotiate and or mediate differences of value If ROO is obtained DB must follow up to acquire or condemn based on

negotiated time line (negotiated with property owner) with authorization of the DOT

Condemnation Resolutions prepared timely Condemnations may only be withdrawn by the Director of ROW

Relocation Issues

Ensure that proper notices are prepared and issued Ensure that advisory assistance is appropriate and timely given Make sure that DOT pre-authorizes studies and notices of eligibility before DB

issues them DB to keep log current and available to the DOT after each contact with

property owner or displaced person Sky is not the limit for relocations! Rush to clear should not result in super adequate and or inappropriate relocation

benefits offered DB must insure that agents employed on the DB project meet or exceed

minimum qualifications as if they were working directly for the DOT Agents employed by the DB must be familiar with the subject area to ensure that

what is thought to be comparable for replacement property is in fact comparable Agents employed by the DB must remember that they are the face of the DOT

and must conduct themselves accordingly

Property Management Issues

Salvage rights Lease agreements Terms of assumed leases Walk through and release of security or key

deposits Security issues Demolitions Surplus Property Staging Areas

12300 South

360 ownerships (over 1000 parcels) DB project completed in 3 years vs. 9 years

projected under DBB. Higher administrative settlement frequency due to

aggressive schedule & cost pass through

114th South

Special complexities New Bridge over Jordan River Relocation of a power substation New I-15 Interchange 270 ownerships plus Utility easements Current status: Construction is 61% complete Acquisitions and Relocations in progress

approximately 67% of needed ROW is cleared

Access Utah Projects and I-15 Core (Innovation)

Pioneer Crossing, a new, five-lane urban arterial from Redwood Road in Saratoga Springs to 300 East in Lehi.

Innovative Components A new diverging diamond interchange (DDI) at I-15 and American Fork Main Street, which

will replace the existing diamond interchange. Includes an Express Lane in each direction through the interchange (to tie in to the upcoming I-15

widening project). ABC Bridge Construction (American Fork Bridge)

Estimated completion in 2 years Construction is Currently 62% Complete Managed as part of the “Access Utah”: group of 5 separate projects. Central ROW provides oversight and helps to direct, train and oversee the ROW firms

hired to clear the right of way.