db contract documents lane beougher state architect jerry kasai chief legal counsel, osfc
TRANSCRIPT
DB Contract Documents
Lane BeougherState Architect
Jerry KasaiChief Legal Counsel, OSFC
Design-Build Contracts Outline
• Basic Design-Build Concepts• Benefits of Design-Build?• State of Ohio contract v. industry
contracts?• The Public Authority’s team,
including the Criteria A/E, and their roles?
• The Design-Builder’s team and their roles?
The Design-Builder
• Single entity that integrates the design and construction of a construction project
• “Integration” of design and construction is key to success
Design-Build Law
• ORC 4703.182– (C)(2) “Design-build” means a project
delivery system for improvements to real property by which a person is solely responsible contractually as a contractor to an owner for both the design and construction of the improvement, which design and construction may include a performance-based specification established by the owner rather than a specific design as an improvement goal. (11-24-1985)
Design-Build Law
• ORC 4703.182– (A) Notwithstanding any other provision
of this chapter, any person who performs labor or who provides services pursuant to a construction contract may offer or provide architectural services in connection with the person’s own labor or services if all of the following apply:
Design-Build Law
• ORC 4703.182– (1) The architectural services are
provided and performed by an architect registered under this chapter or by a firm holding a certificate of authorization granted pursuant to this chapter through either direct employment or independent contract with the person contracting with the owner and offering the services.
Design-Build Law
• ORC 4703.182– (2) The architectural services are offered
by the person who intends to perform the actual construction of an improvement to real property as part of a design-build contract.
Design-Build Law
• ORC 4703.182– (3) The contractor, the architect
registered under this chapter, or the firm holding a certificate of authorization granted pursuant to this chapter meets the requirements of section 153.70 of the Revised Code when design-build services are provided to a public authority as defined in section 153.65 of the Revised Code.
Design-Build Law
• OAC 4703-3-12– (A) An architect may provide design
services in a design-build contractual relationship provided the architect:
– (1) Is an architect licensed to practice in the State of Ohio or represents an architectural firm authorized to provide architectural services in the State of Ohio, and
Design-Build Law
• OAC 4703-3-12– (2) Assures a written disclosure has
been given to the client by the entity identifying the architect or architectural firm engaged by and contractually responsible to, the entity offering design-build project services, and
Design-Build Law
• OAC 4703-3-12– (3) Assures the entity agrees that the
architect will have direct supervision of the architectural work and that the architect’s services will not be terminated on the project, without the immediate replacement by another architect.
Design-Build Law
• OAC 4703-3-12– (B) A design-build entity shall not offer to
provide or provide architectural services, unless the design-build entity is, or independently contracts with, an architect practicing as a sole proprietorship, an architectural firm holding a certificate of authorization to provide architectural services as set forth in Chapter 4703.18 of the Revised Code or employs one or more architects authorized to provide architectural services.
Basic Design-Build Concepts
• Pros– Single point of responsibility for owner– Faster completion than Design-Bid-Build– Good cost control– Early negotiation of guaranteed
maximum price– Good process for complex projects– Owner sees design concepts from
multiple teams
Basic Design-Build Concepts
• Cons– Less owner influence during design– Costly for unsuccessful Design-Build
teams– Less owner control after Design-Build
team selected
Benefits of Design-Build
Metric DB vs. D-B-B CMR vs. D-B-B DB vs. CMR
Unit Cost ($/SF) 6.1% lower 1.6% lower 4.5% lower
Construction Speed
12% faster 5.8% faster 7% faster
Delivery Speed 33.5% faster 13.3% faster 23.5% faster
Cost Growth 5.2% less 7.8% more 12.6% less
Schedule Growth
11.4% less 9.2% less 2.2% less
“Comparison of U.S. Project Delivery Systems,” Mark Konchar & Victor Sanvido, Journal of ConstructionEngineering and Management, Vol. 124, No. 6 (1998), pp. 435-444.
Comparison of U.S. Project Delivery Systems(Construction Industry Institute / Penn State University Study)
Benefits of Design-Build
How does Design-Build reduce cost?
• Design decisions are guided by the entity guaranteeing the price:– At preliminary stage, the builder is part
of the design process.– Price is now guaranteed by both
designer and builder.
Benefits of Design-Build
How does Design-Build reduce cost?
• Design decisions (cont’d)
– Builder has control over design to manage price.
– Designer has direct cost feedback, rather than simply depending on estimates.
Benefits of Design-Build
How does Design-Build shorten schedule?
• Design and construction happen concurrently:– No longer is design completed prior to
any construction activity, such as mobilization.
– Long lead items may be ordered in advance, while design integration takes place.
Benefits of Design-Build
How does Design-Build shorten schedule?
• Design and construction (cont’d)– Field decisions and coordination time is
reduced because of mutual incentives.– Project close-out activities are
concurrent rather than sequential.
Benefits of Design-Build
How does Design-Build improve quality?
• Risk and liability structure of the delivery contract is completely realigned:– No longer do you have two contracts,
there is only one contract with the Design-Builder.
Benefits of Design-Build
• Risk and liability structure (cont’d)– The Design-Builder is liable for design
negligence.– The Design-Builder is liable for means
and methods and construction negligence.
– The Design-Builder is responsible for operation and maintenance performance, warranties, and as-built documentation.
Differences in Construction Reform
Design-Build & Private Industry• Process
–Pre-qualifications
Differences in Construction Reform
Design-Build & Private Industry• Process
–Best Value
Differences in Construction Reform
Design-Build & Private Industry• Process
–Guaranteed Maximum Price
Differences in Construction Reform
Design-Build & Private Industry• Process
–Criteria Architect
Criteria Architect
State of Ohio Design-Build Contract
• Agreement Form• Performance Bond Form• Payment Bond Form• GMP Amendment
State of Ohio Design-Build Contract
• Contracting Definitions• General Conditions• Supplementary Conditions• State of Ohio Subcontract Form
State of Ohio Design-Build Contract
• Based on CMR Contract except:–Design services scope for A/E of
Record (AOR)–DB secures plan approval and
storm water permit (documents sealed by AOR)
State of Ohio Design-Build Contract
• Based on CMR Contract except (cont’d)–Design services fee (separate from
preconstruction services fee)–Professional design liability
insurance required for A/E of Record
–Limited role of Criteria A/E during construction
Other Design-Build Contracts
• AIA Contract Documents (A141)–American Institute of Architects
• ConsensusDOCS (410)–ConsensusDOCS, LLC
(Primary Sponsor: AGC)
Other Design-Build Contracts
• DBIA Contract Documents (530 + 535)–Design-Build Institute of America
• EJCDC Contract Documents (D525 + D700)–Engineers Joint Contract
Documents Committee
Role of the Criteria A/E
• Public Authority’s Project Team– Project Manager (Contracting Authority)– Owner’s Representative (Owner)– Criteria Architect/Engineer (Criteria A/E)
• Retained by the Public Authority per ORC 153.65 through 153.70 (QBS) or is an employee thereof
Role of the Criteria A/E
• Preconstruction Services (Article 5)– Verify or Develop Program of
Requirements– Validate Project Scope, Budget, and
Schedule– Develop Project Definition and Criteria– Assist development of Request for
Qualifications– Ensure design is compliant with the
design criteria and owner requirements
Role of the Criteria A/E
• Construction and Closeout (Article 6)– Ensure construction is compliant with
the design criteria and owner requirements
– Certify payment requests are commensurate with extent of completed Work
– Manage quality testing and special inspections
– Provide analysis of claims– Assist the owner review the Design-
Builder’s punch list and perform final inspection
Construction Administration Roles
Section Topic CMR Contract*
DB Contract*
5.8.1 Secure Plan Approval A/E DB (AOR seals plans)
5.8.4 Secure Storm Water Permit
A/E DB (AOR seals plans)
6.9 Special Inspection (Ch. 17)
A/E (Cont. Auth.)
Cont. Auth. (Crit. A/E)
6.9 Structural Testing A/E (CMR) DB (Crit. A/E)
6.10.2 Request for Interpretations
A/E Cont. Auth. (Crit. A/E)
6.21 Review Action Submittals
A/E Cont. Auth. (Crit. A/E)
6.23 Direct Uncovering the Work
A/E Cont. Auth. (Crit. A/E)
6.27.2 Conduct Punchlist Review
A/E Cont. Auth. (Crit. A/E)
“Primary responsibility listed first with secondary responsibility listed in parentheses (if requested)
Construction Administration Roles
“Primary responsibility listed first with secondary responsibility listed in parentheses (if requested)
Section Topic CMR Contract*
DB Contract*
6.30 Certify Contract Completion
A/E Cont. Auth. (Crit. A/E)
7.2 Prepare Change Orders A/E Cont. Auth. (Crit. A/E)
7.3.1 Prepare Proposal Requests
A/E Cont. Auth. (Crit. A/E)
7.4 Prepare Change Directives
A/E (Cont. Auth.)
Cont. Auth. (Crit. A/E)
7.5 Direct Minor Changes A/E Cont. Auth. (Crit. A/E)
7.6 Review Differing Conditions
A/E Crit. A/E
8.8 Provide Analysis of Claims
A/E Crit. A/E
9.2.9.2 Certify Payment Requests
A/E Cont. Auth. (Crit. A/E)
The Design-Build Team
• Determining Team Members• Establishing Ground Rules• Intangibles
– Establishing trust– Getting the right people on the bus
The Design-Build Team
• Goal– Communication– Collaboration– Integration
Design-Build Team Structure
• Integrated firm– A firm with design and construction capability
• Joint venture– A/E and contractor form a legal partnership
• Contractor led team– Contractor engages A/E as design consultant
• Designer led team– A/E engages contractor to perform Work
Integrated FirmOWNER
DESIGN /BUILDERin-house design +construction staff
PROJECT MANAGER(in-house or subcontracted)
CONSULTING ENGINEERS
Various
SUPPLIERSSUBCONTRACTORS
Joint VentureOWNER
ARCHITECT/ENGINEER
CONSULTING ENGINEERS Various
SUPPLIERSSUBCONTRACTORS
JOINT VENTURE (A/E + Contractor)
CONTRACTOR
Contractor LedOWNER
DESIGN /BUILDER(Contractor)
ARCHITECT
CONSULTING ENGINEERS Various
SUBCONTRACTORS Various
Architect/Engineer LedOWNER
DESIGN /BUILDER (Architect/Engineer)
CONTRACTORCONSULTING ENGINEERS Various
SUBCONTRACTORS Various
SUPPLIERS Various
Design-Build Team Structure
1. Contractor Led: 49%2. Integrated Firm: 24%3. Designer Led: 24%4. Joint Ventures: 3%
2005 Study by the Design-Build Institute of America (DBIA)
DB Contract Documents
Questions:
Lane J. BeougherState Architect
Jerry KasaiChief Legal Counsel