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March 31, 2015
Design/Build &
Design/Build/Operate
Comparative Approach and Future Development
Timothy E. Heffernan
Christopher Wright
8405 Greensboro Drive
Suite 100
McLean, Virginia 22102
theffernan@watttieder.com
1215 Fourth Avenue
Suite 2210
Seattle, Washington 98161
cwright@watttieder.com
Current Members of GcilA
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Design-Build Family
Key Attributes
• Owner enters into a contract with a single entity Design•
•
•
•
Builder
Design-Builder is then obligated to both design and
construct the project
Owner may also hire a Consultant to assist Owner in
working with Design-Builder
Design-Builder then enters into contracts with Architect
and/or Construction Contractor(s), if necessary
Design-Builder may be:
• a Developer or Single Purpose Entity (design and construction in one shop)
• an Architect-led organization
• a Contractor-led organization (most often the case)
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Design-Build Family
Contract Relationships
DOCUMENTS: AIA Documents A141"4, Owner/Design-Builder Agreement; A142Tr", Design-Builder/Contractor Agreement; A441'",
Contractor/Subcontractor Agreement for a Design-Build Project; B143Tr", Design-Builder/Architect Agreement; C141'",
Owner/Consultant Agreement for a Design-Build Project; and C441Tr", Architect/Consultant Agreement for a Design-Build Project
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Fully Integrated Design-Builder
Key Attributes
• Owner enters into a contract with a single entity Design-
Builder
• Design-Builder is then obligated to both design and
construct the project
• Design-Builder performs all design and construction "inhouse
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Fully Integrated Design-Builder
Contract Relationships
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Design-Builder Without In-House Design
Key Attributes
• Owner enters into a contract with a single entity Design•
•
•
•
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Builder
Design-Builder is then obligated to both design and
construct the project
Design-Builder performs all construction "in-house" without
hiring a general contractor or trade contractors
Design-Builder contracts with a separate Architect to provide
design services
Architect hires design consultants as necessary
Design-Builder Without In-House Design
Contract Relationships
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Design-Builder Without In-House Design or
Construction – Key Attributes
• Owner enters into a contract with a single entity Design•
•
•
•
•
•
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Builder
Design-Builder is then obligated to both design and
construct the project
Design-Builder has no in-house design or construction
capabilities
Design-Builder contracts with a separate Architect to provide
design services
Architect hires design consultants as necessary
Design-Builder contracts with a general contractor or
separate trade contractors for construction
General contractor or trade contractors hire subcontractors
as necessary
Design-Builder Without In-House Design or
Construction – Contract Relationships
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Design-Builder Without In-House Construction
Key Attributes
• Owner enters into a contract with a single entity Design•
•
•
•
•
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Builder
Design-Builder is then obligated to both design and
construct the project
Design-Builder performs al design "in-house"
Design-Builder has no in-house construction capabilities
Design-Builder contracts with a general contractor or
separate trade contractors for construction
General contractor or trade contractors hire subcontractors
as necessary
Design-Builder Without In-House Construction
Contract Relationships
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Available at www.watttieder.com
Resource: 50 State Analysis of Key Issues
Related to Construction & Engineering Contracts
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Available at www.watttieder.com
50 State Analysis: Search by Topic
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Available at www.watttieder.com
50 State Analysis: Search by State
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Available at www.watttieder.com
50 State Analysis: Summary – All States/All Topics
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Increases in Use of Design-Build in the U.S.
• Increasingly the project delivery method of choice for
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Infrastructure, Healthcare, Education, DOT, and Military
Market Share expected to continue to grow
Currently over 50% of all projects over $10 million USD use
DB
Expected increase in spending for DOT and Infrastructure
Projects
Expected increase of PPP
Overall USA Market Share (Excluding Residential)
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2013 Design-Build Holds at 39% of All Projects
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2010 – 2013: Over 50% of Projects > $10 Mil.
USD are DB/DBO
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Design-Build Market Share by Category for 2013
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Total Dollar Value of Design Build Projects In
America: 2005 – 2013: 60 Billion to 160+ Billion In 9 Years
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Current Trends
• Highest use of DB/DBO Delivery Method Across all Project
Categories is on the West Coast (California, Oregon,
Washington), but spreading everywhere
• Government Projects (State and Federal) are increasingly using
DB/DBO Delivery Method
• Recent Proposals by U.S. Government indicate more
funding and further increases in DB/DBO Infrastructure
Projects
• Over $475 Billion on Surface Transportation over next 6 years
• TIGER Grant Program made permanent and available for DOT
Projects (Program has traditionally involved high % of DB)
• Increased support for PPP: America Fast Forward Bond Program and
increased access to States/Municipalities
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