By Collin K. Hirschfeld
Design-Bid-Build Model
The design-bid-build model is the one
with which most people have familiarity.
It is often referred to as the traditional
method and has been used for a good part
of the twentieth century as the project
delivery mode of choice. People are familiar with it and its roles and responsibilities,
which are well defined, both from a practical perspective and a legal perspective.
There are three main players in the
design-bid-build model: an owner, a
designer, and a contractor. An owner has
separate legal contracts with each of the
other two. An owner first initiates a relationship with a designer, who assists the
owner by producing a complete set of drawings and specifications for the project. Once
these tasks are complete, an owner puts the
project out to tender so that contractors can
CONSTRUCTION L AW
At-risk construction
management is particularly
suitable if a facility
needs to operate during
construction work.
Advantages of Design-Build
Under the design-build model, the construction people and the design people are
on the same team. This helps remove the
adversarial stances that people commonly
take in the design-bid-build model. The
parties are not involved in finger-pointing,
but rather focus on solving the problems
that arise. Because they are on the same
team, the construction team is motivated
to work with the design team to come up
with a design that focuses on constructability. The two teams can work together to find
ways to minimize construction costs without affecting function. Consensus on goals
and priorities is also easier to establish.
Because the designing and building steps
take place concurrently, this method allows the fast-tracking of projects. The Construction Industry Institute conducted a
study of more than 350 projects across the
United States and found that the design-
build model was 12 percent faster than the
design-bid-build model. David Bloxom,
Design-Build: Ready to Meet the Economic
Challenges of 2009, Texas Construction,
Apr. 2009. A contractor is selected before a
tender is even submitted, which allows early
mobilization and construction activity: all
project phases intersect. Because a contractor becomes involved early, the contractor
starts construction with an understanding
of how the design has progressed. An owner
only deals with one entity in a design-build
project, namely the design-builder, which
helps facilitate communication and streamlines it. It also allows the owner to allocate
the risk for design and for on-time and on-
budget performance to a single entity.
Resources Available
The following tools have been developed to assist individuals to choose among project delivery methods.
Canadian Design Build Institute Methodology Assessment Matrix
The Canadian Design Build Institute has prepared an assessment matrix to help assist in
evaluating a specific project against the various project delivery methods. A copy of the
matrix is included with this article as Appendix A (page 47). As noted in the preface to the
matrix, an owner should consider not only the individual criteria, but the sum of the same.
This list is not meant to be exhaustive, but it definitely covers the significant areas to consider and provides a useful tool.
Project Delivery Publications
Numerous publications provide guidance in choosing a project delivery option. The internet
obviously makes accessing these tools much easier than in the past. Information about two
follows:
1. Tim Mearig, Project Delivery Method Handbook (State of Alaska Department of Education and Early Development, 2004), http://www.eed.state.ak.us/facilities/publications/
project_delivery_handbook.pdf. This material provides a fairly thorough review of the
various methods and criteria to use in choosing one. The handbook discusses some
unique legislative criteria requirements of Alaska, but it still represents a very good tool to
help guide you through the thought process.
2. Charles Thomsen, Project Delivery Processes (3D/I, Apr. 2, 2006), http://web.
archive.org/web/20061015160052/http://www.3di.com/rnd/Files/Essays/
Project+Delivery+Strategy.pdf. This paper provides a very detailed review of the different project delivery methods available, including commentary on additional methods or
hybrids. Again, it has a lot of useful information and commentary on the methods, their
strengths and weaknesses, and considerations in making the choice.
In-House Defense Quarterly Summer 2010 45
n
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Some jurisdictions may have laws or regulations that prohibit or restrict the methods necessary to one of the project delivery
models. It is important to be familiar with
the laws of whichever jurisdiction that you
will work in prior to deciding on a project
delivery model.
Budget
before design to try to evaluate the feasibility of a project. Once the budget is set, an
owner will want a project completed for or
for close to that amount without excessive
cost overrun.
Design Function
Appendix A
CDBI Methodology Assessment Matrix
The descriptions of the project performance criteria are an expression of the level that can be achieved, noting that for each individual project the actual results may vary. The various criteria are interdependent, for example a highly qualified owners team will usually produce clear,
accurate and thorough user requirements, which in turn will result in higher quality contract documents. Higher quality contract documents will
generally result in better quality design, which in turn will likely produce better quality construction. The appropriate budget and time must be
allocated to achieve a high quality project. When an owner places restrictions on one of the criteria it will likely cause negative impact on other
criteria. When selecting the most suitable delivery method the owner should consider the sum of the criteria as well as the individual criteria.
Project Performance Criteria
For what project complexity is the delivery method best suited?
To what extent must user requirements be defined prior to tender?
What level of design quality is characteristically
achieved with the delivery method?
Which delivery method provides multiple design
proposals for owner consideration?
Design
How complex is the design review process for the owner?
To what extent can the delivery method accommodate
scope/design changes during construction phases?
To what extent does the delivery method inherently minimize changes?
To what degree do the owner and user have direct contact with
the designer and are they able to directly Influence the design?
To what extent can the delivery method achieve accelerated
delivery, or ensure delivery to specific schedule?
Schedule
Ability to accommodate early construction start?
Potential to obtain an early cost commitment?
To what extent does the method accommodate adjustments to
scope during construction to achieve final costs within budget?
To what ability can the delivery method reduce
Cost
claims/cost for changes and delays?
Ability to manage cash flow?
To what extent does the method permit the owner to influence systems,
materials and construction methods to minimize life cycle costs?
To what extent is the required design and construction
experience and knowledge available for the method?
Ability to prequalify the prime contractor on publicly funded projects?
Ability to prequalify the prime contractor on privately funded projects?
Contracting
To what extent does the method employ a simple
bid evaluation and selection system?
What level of construction quality can be achieved
with the applicable delivery method?
To what extent does the method permit the owner to transfer the
Risk
liability for design errors and omissions, delays, construction errors
and omissions and nonconformances to contract documents?
To what extent do owners have the experience and
General
knowledge required to employ the method?
Design-BidBuild
low to high
well defined
Construction
Management
Design-Build
low to moderate low to moderate
not fully defined well defined
high
high
high
no
possibly
yes
moderate
more complex
simplified
low
high
low
moderate
moderate
high
high
high
low
low
low
moderate
to high
high
moderate
moderate
to high
low to moderate
high
low
high
moderate
low
moderate
high
low
high
low
high
high
moderate
high
moderate
low
low
high
moderate
moderate
high
high
high
moderate
low
higher
higher
higher
low
low
high
high
low
low
low