State Aid Design-Build Project
Delivery for Minnesota Cities and
Counties
Outline
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“Snapshot in Time”
Design-Build Delivery
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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 Delivery
Design-Build Pilot Program Process
Design-Build Delivery
State-Aid Low-Bid Design-Build Process
Design-Build Delivery
Design-Build Delivery
What are the Advantages and Disadvantages of Design-Bid-Build?
Advantages
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Long history of acceptance
Open competition
Distinct roles are clear
Easy to bid
Disadvantages
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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
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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
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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:
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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.)
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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
Design-Build Roles and
Responsibilities
Owner / Agency
• Environmental Approvals
• Preliminary Design
• Design Oversight
• Right-of-Way
• Construction Oversight
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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 lowbid
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
Questions?