state aid design-build project delivery for minnesota cities and counties

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State Aid Design-Build Project Delivery for Minnesota Cities and Counties

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State Aid Design-Build Project Delivery for Minnesota Cities and Counties. Outline. “Snapshot in Time” Design-Build Delivery What is Design-Build? What does the Statute Say? Design-Build Pilot Program Process State-Aid Low-Bid Design-Build Process - PowerPoint PPT Presentation

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State Aid Design-Build Project Delivery for Minnesota Cities

and Counties

Outline• “Snapshot in Time” • Design-Build Delivery

– What is Design-Build?– What does the Statute Say?– Design-Build Pilot Program Process– State-Aid Low-Bid Design-Build Process– Comparing Design-Build to the Traditional Design-Bid-Build Process– What are the Advantages and Disadvantages of Design-Bid-Build?– What are the Advantages and Disadvantages of Design-Build?– When do you use Design-Build?– Types of Pilot Program Example Projects

• Examples of Smaller Design-Build Projects• Pilot Projects• Design-Bid-Build Roles and Responsibilities• Design-Build Roles and Responsibilities• Contacts• Questions & Answers

“Snapshot in Time”

• Agencies have concerns over budgets and the quality of projects being delivered

• The Customer (Public) is demanding faster delivery of projects• Revenue streams are insufficient, unpredictable and in some cases

are drying up– Gas tax collections are down– Motor vehicle sales taxes are up and down– Officials are desperately looking for new revenue streams (mileage or

wheelage taxes, tolls, etc.)• FHWA through their new initiative “Everyday Counts” is

recommending that States make innovative contracting practices the standard way of doing business.

Design-Build Delivery

What is Design-Build?• A project delivery method that overlaps the design

and construction phases• Phases are concurrent rather than sequential like

traditional Design-Bid-Build methods• New project and quality management approach• New roles and responsibilities for Owners and

Contractors

Design-Build Delivery

What the Statute Says:• 2009 Legislature• 3 Year pilot for cities and counties• Transportation projects• State-Aid system• Expires October 1, 2012 or upon completion of 9

projects• Selection by Design-Build Project Selection Council• Incorporates educational component for owners and

design-builders• Can be either best-value or low-bid

Design-Build Delivery

What the Statute Says / Best Value

• 2 Phase (RFQ/RFP)

• 2-Step review process

• Awarded to firm with lowest adjusted score (price ÷ technical score)

• 0.2% Stipend, based on Engineer’s Estimate for design and construction. Stipend awarded to firm(s) that provided a responsive but unsuccessful proposal

Design-Build Delivery

What the Statute Says / Low-Bid

• Requires a minimum of RFP with separate technical and price proposals

• 2-Step review process

• Awarded to firm with lowest bid that met the technical requirements of the RFP

• Stipend may be paid only if RFQ and short-listing required

Design-Build DeliveryDesign-Build Pilot Program Process

Design-Build DeliveryState-Aid Low-Bid Design-Build Process

Design-Build Delivery

Design-Build Delivery

What are the Advantages and Disadvantages of Design-Bid-Build?

Advantages• Long history of acceptance• Open competition• Distinct roles are clear• Easy to bid

Disadvantages• Innovations not optimized• Cost overruns• Disputes between parties• Owner retains most risks• Usually low bid; incentive for change orders• Owner responsible for errors and omissions• Linear project delivery process

Design-Build Delivery

What are the Advantages and Disadvantages of Design-Build?

Advantages• Shorter delivery time• Reduce user costs• Innovation by contractor, designer and owner• Allows flexibility in design• Innovative material selection and construction methods• Contractor selection process can be based on technical and financial

proposal evaluation• Minimizes the impacts on residents and businesses

Disadvantages• New method; unfamiliar process• Owner needs to make quicker decisions• Not for every job• Bid processes can be more expensive

Design-Build Delivery

When do you use Design-Build?• Project that need to be “fast tracked” because of

safety, emergency, funding or political reasons• Projects that allow for innovation in the design

and construction• Packaged projects (several smaller combined

into one larger project)• Projects with complex designs, staging and

traffic control• Projects where in-house staffing cannot meet

the project demands

Design-Build Delivery

Types of Pilot Program Example Projects:

• Large box culvert projects

• Bundled bridge projects

• Mill and overlays

• Intersection upgrades (signals, paving, curb and gutter, etc.)

Examples of Smaller Design-Build Projects

• Mn/DOT District 4 (Detroit Lakes) District-Wide Sign Replacement and Sign Inventory

• TH 10 / TH 32 Interchange in Hawley, MN• TH 2 Bridge Replacement with Box Culvert

Pilot Projects

• Anoka County / CR 14 – Doug Fischer

• Rochester / 2nd Street SE from South Broadway to Civic Center Drive SE – Richard Freese

Design-Bid-Build Roles and Responsibilities

Owner / Agency

• Environmental Approvals

• Complete Design (Plans and Specs)

• Right-of-Way

• Contract Administration / Construction Management (inspection, testing, etc.)

Contract

• Owner/Agency provides the plans and specs in the form of a proposal

• Contractor with the low-bid is awarded the contract

Contractor

• Construction

• Safety

Design-Build Roles and Responsibilities

Owner / Agency• Environmental Approvals• Preliminary Design• Design Oversight• Right-of-Way• Construction Oversight

Contract

• Owner / Agency issues RFP

• Contractor submits proposal

• Contractor awarded by “best value” or low-bid

Contractor

• Final Design

• Utilities and Permits

• Construction

• Quality Control / Assurance

• Inspection/Testing

• Safety

Who should you contact for more Information?

Rick Kjonaas, PEMn/DOT Deputy State-Aid Engineer

[email protected]

Gary Thompson, PEURS Program Delivery [email protected]

Questions?

?