March 31, 2015 Design/Build & Design/Build/Operate Comparative Approach and Future Development Timothy E. Heffernan Christopher Wright 8405 Greensboro Drive Suite 100 McLean, Virginia 22102 [email protected] 1215 Fourth Avenue Suite 2210 Seattle, Washington 98161 [email protected] Current Members of GcilA 2 3 Design-Build Family Key Attributes • Owner enters into a contract with a single entity Design• • • • Builder Design-Builder is then obligated to both design and construct the project Owner may also hire a Consultant to assist Owner in working with Design-Builder Design-Builder then enters into contracts with Architect and/or Construction Contractor(s), if necessary Design-Builder may be: • a Developer or Single Purpose Entity (design and construction in one shop) • an Architect-led organization • a Contractor-led organization (most often the case) 4 Design-Build Family Contract Relationships DOCUMENTS: AIA Documents A141"4, Owner/Design-Builder Agreement; A142Tr", Design-Builder/Contractor Agreement; A441'", Contractor/Subcontractor Agreement for a Design-Build Project; B143Tr", Design-Builder/Architect Agreement; C141'", Owner/Consultant Agreement for a Design-Build Project; and C441Tr", Architect/Consultant Agreement for a Design-Build Project 5 Fully Integrated Design-Builder Key Attributes • Owner enters into a contract with a single entity Design- Builder • Design-Builder is then obligated to both design and construct the project • Design-Builder performs all design and construction "inhouse 6 Fully Integrated Design-Builder Contract Relationships 7 Design-Builder Without In-House Design Key Attributes • Owner enters into a contract with a single entity Design• • • • 8 Builder Design-Builder is then obligated to both design and construct the project Design-Builder performs all construction "in-house" without hiring a general contractor or trade contractors Design-Builder contracts with a separate Architect to provide design services Architect hires design consultants as necessary Design-Builder Without In-House Design Contract Relationships 9 Design-Builder Without In-House Design or Construction – Key Attributes • Owner enters into a contract with a single entity Design• • • • • • 10 Builder Design-Builder is then obligated to both design and construct the project Design-Builder has no in-house design or construction capabilities Design-Builder contracts with a separate Architect to provide design services Architect hires design consultants as necessary Design-Builder contracts with a general contractor or separate trade contractors for construction General contractor or trade contractors hire subcontractors as necessary Design-Builder Without In-House Design or Construction – Contract Relationships 11 Design-Builder Without In-House Construction Key Attributes • Owner enters into a contract with a single entity Design• • • • • 12 Builder Design-Builder is then obligated to both design and construct the project Design-Builder performs al design "in-house" Design-Builder has no in-house construction capabilities Design-Builder contracts with a general contractor or separate trade contractors for construction General contractor or trade contractors hire subcontractors as necessary Design-Builder Without In-House Construction Contract Relationships 13 Available at www.watttieder.com Resource: 50 State Analysis of Key Issues Related to Construction & Engineering Contracts 14 Available at www.watttieder.com 50 State Analysis: Search by Topic 15 Available at www.watttieder.com 50 State Analysis: Search by State 16 Available at www.watttieder.com 50 State Analysis: Summary – All States/All Topics 17 Increases in Use of Design-Build in the U.S. • Increasingly the project delivery method of choice for • • • • 18 Infrastructure, Healthcare, Education, DOT, and Military Market Share expected to continue to grow Currently over 50% of all projects over $10 million USD use DB Expected increase in spending for DOT and Infrastructure Projects Expected increase of PPP Overall USA Market Share (Excluding Residential) 19 2013 Design-Build Holds at 39% of All Projects 20 2010 – 2013: Over 50% of Projects > $10 Mil. USD are DB/DBO 21 Design-Build Market Share by Category for 2013 22 Total Dollar Value of Design Build Projects In America: 2005 – 2013: 60 Billion to 160+ Billion In 9 Years 23 Current Trends • Highest use of DB/DBO Delivery Method Across all Project Categories is on the West Coast (California, Oregon, Washington), but spreading everywhere • Government Projects (State and Federal) are increasingly using DB/DBO Delivery Method • Recent Proposals by U.S. Government indicate more funding and further increases in DB/DBO Infrastructure Projects • Over $475 Billion on Surface Transportation over next 6 years • TIGER Grant Program made permanent and available for DOT Projects (Program has traditionally involved high % of DB) • Increased support for PPP: America Fast Forward Bond Program and increased access to States/Municipalities 24
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