Progressive DesignBuild Approach to Texas Shovel Ready Fort

Progressive Design-Build Approach to Texas Shovel Ready Fort Worth Dallas EL Paso Austi n Houston San Antonio Corpus Christi

Texas Progressive Design-Build in 7 Steps l l l l 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

Design-Build RFQ Phase 1 l l l Use typical engineering RFQ criteria 4 Past Performance 4 Understanding 4 Staff/Organization 4 Capacity 4 Experience 4 Approach Evaluate proposals/determine short list (Handout sample RFQ)

Design-Build RFP Phase 2 l l 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

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

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

Progressive Model Permits Optimization of Construction Pricing l l l 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 4 Convert project to DBB 4 Design-Builder completes 100% design and helps owner bid out project

Schedule for Progressive Design. Build to Full Scope/Requirement Issue RFQ 1 ½ Months factors Shortlist Issue RFP 1 ½ Months Council Approval of DB Award on price 1 Month month 60% Design 4 -6 months Set Target Price Subcont. bids 1 9 to 11 Months to Construction Award at Target Price

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 month Scope/Price Subcont. bids 1 Finalize 4 Months to Construction Award at Target price ASSUME TARGET PRICE SET AT 85 -90% of FIXED BUDGET

Progressive Design-Build Benefits l l l l 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