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DESIGN-BUILDDONE RIGHTUniversally Applicable»» any project type»» any sector»» any sizeBEST DESIGN-BUILD PRACTICESDESIGN-BUILD DONE RIGHT 1v.2 - February 2014

DESIGN-BUILD DONE RIGHTBEST DESIGN-BUILD PRACTICESA DESIGN-BUILD INSTITUTE OF AMERICA PUBLICATIONThe practices identified in this document have two basic characteristics:1 They are written to be universal in applicability, spanning any type of design-build project: public or private vertical or horizontal large or small2 They are important enough to directly affect project performance.Stated differently, implementing these practices on any type of design-build project increases the probability of a successful project that meetsthe expectations of all stakeholders. If these practices are not implemented, there is an increased probability that the project’s performance willbe compromised and that some or all of the stakeholders will be disappointed.For ease of reference, this document is organized into three primary sections:(I) Procuring Design-Build Services(II) Contracting for Design-Build Services(III) Executing the Delivery of Design-Build ProjectsEach section contains overarching principles that represent the “best practice.” Each best practice is supplemented by several techniques thatprovide guidance on specific ways to implement the best practice – essentially “mini-best practices.” The combination of best practices andimplementing techniques are the basis for “design-build done right.”DBIA recognizes that there are real-world differences among design-build market sectors (e.g., water/wastewater, transportation, federalprojects), and that specific implementation techniques might differ slightly from one market sector to another. DBIA also recognizes that someowners and practitioners may want further explanation to fully appreciate the thought behind the principles in this document. Additionally,DBIA expects that many users of design-build would benefit from having more detailed guidance on how to put these best practices andimplementing techniques into use in different design-build market sectors. Given this, DBIA intends to continually update its portfolio ofpublications, tools and other resources so that design-build stakeholders will have access to leading-edge information that will allow them todo design-build “right” in accordance with the concepts expressed in this document.COVER PHOTO CREDITSTop Row, Left to Right:J. Paul Leonard Library and Sutro Library, San Francisco State University, Owner: California State University, 2012 National Design-Build Award Winner;San Antonio Public Safety Headquarters, Owner: City of San Antonio, 2013 National Design-Build Award Winner; Colonel James Nesmith Readiness Center,Owner: Oregon Military Department, 2013 National Design-Build Award WinnerBottom Row, Left to Right:Phase 4 Development of the President George Bush Turnpike - Western Extension Design-Build, Owners: North Texas Tollway Authority and HDREngineering, Inc. , 2013 National Design-Build Merit Award Winner; Los Angeles Mission College East Campus Complex, Owner: Los Angeles CommunityCollege District, 2013 National Design-Build Award Winner; Progressive Design-Build Project for the North Lee County Water Treatment Plant Expansion to10MGD, 2013 National Design-Build Award Winner, Owner: Lee County Utilities2 DESIGN-BUILD DONE RIGHTv.2 - February 2014

I. Procuring Design-Build ServicesAn owner’s choices of project delivery system and procurement approach strongly influence project results. These choices are among the firstdecisions an owner makes on a project, and they form the foundation for how the project will be developed, procured and executed, and how thekey project stakeholders communicate and relate to each other. In making these choices, it is critical for an owner to consider the particulars andcircumstances of each project, including the procurement options available to the owner. After thoroughly considering these issues, an owner shouldmake a strategic decision as to how to take full advantage of the many benefits that are inherent in the design-build process.DBIA considers the following as three (3) best practices for owners as they make their project delivery and procurement decisions.1. An owner should conduct a proactive and objective assessment of the unique characteristics ofits program/project and its organization before deciding to use design-build.In furtherance of this practice, the following implementing techniques apply:a. Owners should understand the potential benefits, limitations, and attributes of design-build and make an informed decision asto whether the use of design-build will benefit their program/project.b. Owners should create an organization that supports the successful procurement and execution of a design-build project,with key personnel (including those advising/representing the owner) educated and trained in, among other things: (a) theprocurement, contracting and execution of design-build projects; and (b) the importance of setting expectations and fostering acollaborative relationship among all members of the project team.c. Owners should identify and involve key project stakeholders at the early stages of project planning, as stakeholder goals,expectations, challenges, constraints, and priorities should guide all project planning and procurement activities, including thedetermination and implementation of design excellence and sustainability goals.d. Owners should involve senior leadership that is committed to the success of the design-build process, as this will foster ahealthy and trusting relationship among the entire project team.e. Owners should carefully research and assess current market conditions as they plan their design-build programs, as this willidentify potential risks and opportunities. Among the issues to be researched and assessed include: (a) procurement actionsthat could limit or expand competition; (b) projected labor, material and equipment availability; (c) lessons learned from similarprojects; and (d) realism of budget and schedule estimates.Left to Right:Mason Conservation StudiesProgram Residence Hall andDining Facility, Owner:George Mason University, 2013Design-Build Honor AwardNova Southeastern UniversityOcean Center of Excellencefor Coral Reef, Owner: NovaSoutheastern University, 2013National Design-Build AwardDESIGN-BUILD DONE RIGHT 3v.2 - February 2014

I. Procuring Design-Build Services (Cont.)f. Owners should use a rigorous and equitably-balanced project risk assessment process early in the procurement process andupdate/refine the risk assessment as the project proceeds from procurement through project execution.g. Owners should understand all procurement constraints imposed or flexibilities afforded by their legislative, regulatory, orinternal requirements.h. Owners should make an early determination of their programmatic position on conflicts-of-interest policy for design-buildprocurements and promptly disclose this policy to the marketplace that will likely pursue these design-build procurements.i. Owners should make an early determination about their expectations for the design-builder’s role in the start-up,commissioning and operations of the project and reflect expectations in their procurement approach.2. An owner should implement a procurement plan that enhances collaboration and other benefitsof design-build and is in harmony with the reasons that the owner chose the design-build deliverysystem.In furtherance of this practice, the following implementing techniques apply:a. Owners should use a procurement process that: (a) focuses heavily on the qualifications of the design-builder and its key teammembers rather than price; and (b) rewards design-build teams that have a demonstrated history of successfully collaborating ondesign-build projects.b. Owners should use a procurement process that encourages the early participation of key trade contractors.c. Owners should develop their design-build procurement with the goal of minimizing the use of prescriptive requirements andmaximizing the use of performance-based requirements, which will allow the design-build team to meet or exceed the owner’sneeds through innovation and creativity.d. Owners should develop realistic project budgets, and provide clarity in their procurement documents about their budgets,including, as applicable: (a) identifying “hard” contract cost/budget ceilings; (b) stating whether target budgets can be exceeded ifproposed solutions enhance overall value; and (c) stating whether the owner expects proposers to develop technical proposals thatwill encompass the entire target budget.e. Owners should consider the level of effort required by proposers to develop responsive proposals, and should limit thedeliverables sought from proposers to only those needed to differentiate among proposers during the selection process.f. Owners who require project-specific technical submittals (e.g., preliminary designs) for evaluating and selecting the designbuilder should: (a) use a two-phase procurement process; and (b) limit the requirement for such submittals to the second phase,where the list of proposers has been reduced.3. An owner using a competitive design-build procurement that seeks price and technicalproposals should: (a) establish clear evaluation and selection processes; (b) ensure that the processis fair, open and transparent; and (c) value both technical concepts and price in the selectionprocess. In furtherance of this practice:a. Owners should perform appropriate front-end tasks (e.g., geotechnical/environmental investigations and permit acquisitions)to enable the owner to: (a) develop a realistic understanding of the project’s scope and budget; and (b) furnish proposers withinformation that they can reasonably rely upon in establishing their price and other commercial decisions.b. Owners should appropriately shortlist the number of proposers invited to submit proposals, as this will, among other things,provide the best opportunity for obtaining high quality competition.4 DESIGN-BUILD DONE RIGHTv.2 - February 2014

c. Owners should provide shortlisted proposers with a draft design-build contract at the outset of the second phase ofprocurement, which: (a) provides proposers with an opportunity to suggest modifications during the proposal process; and (b)enables proposers to base their proposals on the final version of the contract.d. Owners should conduct confidential meetings with shortlisted proposers prior to the submission of technical and priceproposals, as this encourages the open and candid exchange of concepts, concerns, and ideas.e. Owners should protect the intellectual property of all proposers and should not disclose such information during the proposalprocess.f. Owners should offer a reasonable stipend to unsuccessful shortlisted proposers when the proposal preparation requires asignificant level of effort.g. Owners should ensure that their technical and cost proposal evaluation team members are: (a) trained on the particulars of theprocurement process; (b) unbiased; and (c) undertake their reviews and evaluations in a manner consistent with the philosophyand methodology described in the procurement documents.h. Owners should ensure that technical review teams do not have access to financial/price proposals until after completion of thescoring of the technical proposals.i. Owners should provide unsuccessful proposers with an opportunity to participate in an informative debriefing session.Counter-Clockwise from Top:Cargill Grain Transfer Facility, Owner:Cargill, Inc., 2013 Design-Build HonorAwardI-15 Corridor Expansion I-15CORE, Owner: Utah Department ofTransportation, 2013 NationalDesign-Build AwardFederal Center South Building 1202Redevelopment, Owner: U.S. GeneralServices Administration, AcquisitionSolutions Branch, 2013 NationalDesign-Build AwardPierce College Maintenance andOperations Facility and Net-ZeroPlant, Owner: Los Angeles CommunityCollege District (LACCD) and PierceCollege, 2012 Design-Build Merit AwardDESIGN-BUILD DONE RIGHT 5v.2 - February 2014

II. Contracting for Design-Build ServicesThe use of fair and clear contracts is fundamental to any delivery process. Because there are some important differences between design-buildcontracts and those for other delivery systems, it is particularly important for the individuals who administer the design-build procurement andexecution to understand the contract’s language and its practical application. DBIA also recognizes that the construction industry currently tends tofocus on the contract between the owner and design-builder. For design-build to succeed, however, the principles must also be incorporated into thecontracts of those subconsultants, subcontractors and major suppliers working within the design-build team.DBIA considers the following as three (3) best practices in design-build contracting.1. Contracts used on design-build projects should be fair, balanced and clear, and should promotethe collaborative aspects inherent in the design-build process.In furtherance of this practice, the following implementing techniques apply:a. Contracting parties should proactively and cooperatively identify significant project-specific risks and clearly identify in thecontract how such risks will be handled.b. Contracts should reasonably allocate risks to the party that is best capable of addressing and mitigating the risk.c. Contracts should use language that is understandable to those personnel who are administering the project.d. Contracts should encourage, rather than hinder, communications among project stakeholders.e. Contracts should contain a fair process that facilitates and expedites the review and resolution of potential changes to thecontract and adjustments in the contract price and time.f. Contracts should contain a dispute resolution process that promotes the prompt identification and resolution of disputes at thelowest possible level of hierarchy within the parties’ organizations.Left to Right:Colonel James Nesmith ReadinessCenter, Owner: Oregon MilitaryDepartment, 2013 National DesignBuild AwardStockton Delta Water SupplyProject, Owner: City of Stockton,2013 Design-Build Merit Award6 DESIGN-BUILD DONE RIGHTv.2 - February 2014

II. Contracting for Design-Build Services(Cont.)2. The contract between the owner and design-builder should address the unique aspects of thedesign-build process, including expected standards of care for design services.In furtherance of this practice, the following implementing techniques apply:a. Owners should, consistent with their overall procurement strategy, evaluate and use appropriate contractual incentives thatfacilitate the alignment of the performance of their design-build teams with the owner’s project goals.b. If the design-builder is expected to meet performance guarantees, the contract should clearly identify such guarantees, andthe guarantees should be capable of being measured and reasonably achievable by a design-builder performing its work in acommercially reasonable fashion.c. The contract should clearly specify the owner’s role during project execution, particularly relative to: (a) the process for thedesign-builder reporting to and communicating/meeting with the owner; (b) the owner’s role in acting upon design and otherrequired submittals; and (c) the owner’s role, if any, in QA/QC.d. The contract should clearly define the role of the designer(s)-of-record and how it/they will communicate with the owner.e. The contract should clearly define the commissioning and project closeout processes, including documentation associated withsuch processes.f. The contract should clearly define requirements for achieving project milestones, inclusive of substantial completion, finalcompletion and final payment.3. The contracts between the design-builder and its team members should address the uniqueaspects of the design-build process.In furtherance of this practice, the following implementing techniques apply:a. During the proposal phase, the design-builder should use written teaming agreements with each team member to develop andcapture an understanding of their relationship and key commercial aspects of their relationship.b. The design-builder and its designer(s) should develop an understanding, at the outset of their relationship, of the keycommercial aspects of their relationship, including: (a) the designer’s compensation, if any, during the proposal period; (b) thedesigner’s role in reviewing/approving the proposal; (c) the contractual liability of the designer for problems, including delays,during execution; and (d) the designer’s right to use project contingency for its execution-related problems, and capture theseunderstandings in the written teaming agreement.c. The contract should reflect that designer(s)-of-record are regularly and actively involved throughout the project’s execution.d. The contract should establish the role and primary responsibilities that each party has relative to the design process.e. The contract should ensure that there is a clear understanding as to how the team members will communicate with each otherand with the owner, including meetings that each party is expected to attend.f. The contract should have a clear and commercially-appropriate “flow-down” of obligations from the prime design-buildcontract.DESIGN-BUILD DONE RIGHT 7v.2 - February 2014

III. Executing the Delivery of Design-BuildProjectsDBIA recognizes that the best practices associated with the execution of a design-build project are similar to those projects delivered underother systems. It is not the intent of this document to focus on identifying general best practices associated with design, construction or projectmanagement. Rather, this document’s best practices for project execution focus on unique features of the design-build process, where successfulexecution is based upon relationships built upon trust, transparency and team integration. Individuals not only need to be competent in their specificareas of responsibility, but they also must understand the design-build process and that success is directly dependent upon the ability of the entireteam to work together collaboratively.DBIA considers the following as four (4) best practices in the execution of a design-build project.1. All design-build team members should be educated and trained in the design-build process,and be knowledgeable of the differences between design-build and other delivery systems.In furtherance of this practice, the following implementing techniques apply:a. All members of the design-build team must understand that the project’s success is dependent on the ability of the teammembers to work collaboratively and to trust that each member is committed to working in the best interests of the project.b. Projects should be staffed with individuals that are educated and experienced in the implementation of design-build bestpractices, and whose personalities are well-suited to the collaborative nature of the design-build process.c. All project teams should have senior leadership committed to the success of their projects and actively supportive of designbuild best practices.d. The design-builder should recognize the benefit of including experienced design-build trade contractors on its team.2. The project team should establish logistics and infrastructure to support integrated projectdelivery.In furtherance of this practice, the following implementing techniques apply:a. Owners and the appropriate members of the design-builder’s team should co-locate when justified by project characteristics(e.g., project’s complexity and volume of design submittals.b. Design-builders should strive to have their design and construction teams working in the same place as often as possible,including co-location if practical.c. Owners and design-builders should ensure that the administra