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

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

2. 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

3. “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.

4. 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

5. 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

6. 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

7. 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

8. Design-Build Delivery Design-Build Pilot Program Process

9. Design-Build Delivery State-Aid Low-Bid Design-Build Process

10. Design-Build Delivery

11. 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

12. 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

13. 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

14. 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.)

15. 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

16. Pilot Projects • Anoka County / CR 14 – Doug Fischer • Rochester / 2nd Street SE from South Broadway to Civic Center Drive SE – Richard Freese

17. 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.) Contractor • Construction • Safety Contract • Owner/Agency provides the plans and specs in the form of a proposal • Contractor with the low-bid is awarded the contract

18. Design-Build Roles and Responsibilities Owner / Agency • Environmental Approvals • Preliminary Design • Design Oversight • Right-of-Way • Construction Oversight Contractor • Final Design • Utilities and Permits • Construction • Quality Control / Assurance • Inspection/Testing • Safety Contract • Owner / Agency issues RFP • Contractor submits proposal • Contractor awarded by “best value” or low-bid

19. Who should you contact for more Information? Rick Kjonaas, PE Mn/DOT Deputy State-Aid Engineer Rick.kjonaas@state.mn.us Gary Thompson, PE URS Program Delivery Manager Gary_thompson@urscorp.com

20. Questions? ?