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Progressive Design-Build Approach to Texas Shovel Ready

Progressive Design-Build Approach to Texas Shovel Ready. Fort Worth. Dallas. EL Paso. Austin. Houston. San Antonio. Corpus Christi. Texas Progressive Design-Build in 7 Steps. Issue Design-Build RFQ Establish a Short List Issue Design-Build RFP with cost/price factors

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Progressive Design-Build Approach to Texas Shovel Ready

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  1. Progressive Design-Build Approach to Texas Shovel Ready Fort Worth Dallas EL Paso Austin Houston San Antonio Corpus Christi

  2. Texas Progressive Design-Build in 7 Steps • Issue Design-Build RFQ • Establish a Short List • Issue Design-Build RFP with cost/price factors • Select a Design-Build contractor • Council/Board Approval for Award • “Progressively” determine scope/price during design • Award construction phase of contract These 7 steps will take less than 1 year on most projects

  3. Design-Build RFQ Phase 1 • Use typical engineering RFQ criteria • Past Performance • Understanding • Staff/Organization • Capacity • Experience • Approach • Evaluate proposals/determine short list • (Handout sample RFQ)

  4. Design-Build RFP Phase 2 • Evaluation Criteria: • Design-Build methodology • Health/Safety/Quality Plans • Preconstruction Services Project Mgmt, Engr./Design, Constructability/VE, Cost Estimating Project Controls, Material/Equipment procurement • Construction Services • Staff/Organization, Fees on construction, Cost documentation, Bonds/Insurance • Target Price/Cost Factor Proposal • Comments on draft Terms & Conditions • (Handout sample RFP) • Best Value Selection: Qualifications and price factors

  5. Target Price Model All overruns above cap to D-B contractor Actual Cost above target CAP Up to 15% Shared overrun Target PriceTarget Price Up to 20% Shared savings Actual Cost below target CAP All Savings to owner below cap

  6. Owner Remains Involved in Progressive Design Process 10% Design 30% Design 60% Design • Progressive Detailed open-book estimates • Constructability/VE Reviews • Construction Planning/Sequencing • Procurement/Subcontracting • Risk Evaluation

  7. Progressive Model Permits Optimization of Construction Pricing • Progressive price reviews during design • Verify construction cost estimate thru subcontractor bids • Finalize the scope with owner approval • Understand risks and who will hold risk • Lock in construction schedule • Provide owner an off-ramp if subcontractor bids not acceptable • Convert project to DBB • Design-Builder completes 100% design and helps owner bid out project

  8. Schedule for Progressive Design-Build to Full Scope/Requirement Issue RFQ 1 ½ Months Shortlist Issue RFP 1 ½ Months Council Approval of DB Award on price factors 1 Month 60% Design 4-6 months Set Target Price Subcont. bids 1 month 9 to11 Months to Construction Award at Target Price

  9. Schedule for Progressive Design-Build to Fixed Budget Issue RFQ 1 1/2 Months Shortlist Issue RFP 1 1/2 Months Council Approves/Award at Target Price 1 Month 60% Design 4-6 months Subcont. bids 1 month Finalize Scope/Price 4 Months to Construction Award at Target price ASSUME TARGET PRICE SET AT 85-90% of FIXED BUDGET

  10. Progressive Design-Build Benefits • Shovel Ready and awarded in less than a year---as quickly as 4 months under DB to Budget model • Eliminate Change Orders---except for changed conditions/owner scope changes • Deliver with open book and complete transparency • Shared savings • Reduced risk premiums thru target pricing • Collaborative relationships make changes easier • Owner is assured performance---one company responsible for both design and construction

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