Conference: Design-Build for Water/Wastewater Conference 2017 Paper/Presentation Title: Standard Form of Contract for Progressive Design-Build Authors: Stephen Gates, Brown and Caldwell/Water Design-Build Council, Board; Jason Sheck, Brown and Caldwell; Holly A. Streeter-Schaefer, Burns & McDonnell Engineering Co.; Mark Alpert, Integrated Delivery Solutions, Inc. Contact: Stephen Gates - SGates@BrwnCald.com

Abstract Standard Form of Contract for Progressive Design-Build As Progressive Design-Build (PDB) gains momentum; there is a greater need for standardized contract forms

to help guide the design and construction industry through the procurement process. DBIA and the Water

Design-Build Council (WDBC), through a collaborative partnership, have developed that much-needed form.

This session provided an overview of the new standard form and highlighted key areas.

DBIA Progressive Design-Build ContractMark E Alpert, Water Design-Build Council, Executive Director

Jason Scheck, Contracts Manager, Brown and Caldwell

Holly Streeter-Schaefer, Attorney, Burns & McDonnell

March 29 - 31, 2017

1. Several year effort in conjunction with DBIA and WDBC Strategic Alliance

2. Developed in cooperation with the Water Design-Build Council (WDBC)

3. Addresses two phased design-build services

4. Adopted by DBIA and WDBC Boards in November 2016

5. Presented at DBIA National Convention

DBIA Progressive Design-Build Agreement Form

Public and Private Sector Owners

Template with many choices for customization to meet Owners requirements

Drafted with intent to be used on Water and Wastewater projects, but applicable to all market sectors

Use of the Agreement

Procurement flow of activities and relationship of the Owner and PDB firm/team

DBIA Progressive Design-Build Primer

WDBC Model Procurement Documents

Progressive Design Build Resources

Progressive Design-Build (PDB)

PDB Procurement Considerations

6

1. Open book cost based on collaboratively developed scope and design2. Price agreement prior to construction3. May require separate approval, contract amendment, or second contract4. Owner has the off-ramp option

1. One- or Two-Step Procurement (two-step shown)

2. First Step is based on qualifications

3. Short list of up to three qualified firms

4. Second Step focuses on approach and fee

1. Evaluation based on quals approach, and fee %2. Interviews of short-list are typical

http://www.dbia.org/resource-center/Pages/Contracts.aspx

Modifications to instructions to account for phased services

Lump sum compensation added

Phase 1 Preconstruction Services including Design, Constructability reviews and planning, and progressive estimates leading to price proposal for Phase 2 costs

Phase 2 Cost of the Work and final design (GMP, Lump Sum, Cost Plus)

Specific Provisions

Proposal submitted at end of Phase 1 for Phase 2 services

If Phase 2 proceeds, Contract Price Amendment executed by parties

Proposal should be part of Contract Price Amendment

Agreement allows for parties to decide when design is sufficient for Phase 2 costs determination

Specific Provisions

Phase 1 Services

PHASE 1

PHASE 2

Phase 2 Services

The Off Ramp

PHASE 1

If accepted, parties execute Contract Price Amendment

Failure to accept proposal

Modify proposal

Owner authorizes DB to proceed on a reimbursable basis

Terminate for convenience

The Off Ramp

Proposal Acceptance

What If No Option Is Exercised?

DB can continue as if Owner elected to proceed and paid accordingly

DB can suspend performance

DB may give written notice to Owner that it considers the Agreement completed

If Owner fails to exercise option within ten days of DBs notice, Agreement deemed completed and

DB has no further liability or obligations

If No Option Is Exercised . . .

Phase 1 - Compensation

Compensation

$

Phase 2 Compensation

Lump Sum

GMP

Fee plus Cost of the Work

Compensation

Contingency terms:

1. Contemplates contingency for GMP

2. Exclusive use of Design-Builder

3. Allows for Owner to have separate contingency

As part of GMP or outside of the GMP

Owners use of savings before project completion

Contingency

Savings sharing is contemplated

Costs for defective /non-conforming work as a Cost of the Work

Savings and Costs for Defective Work

SAVINGS

Options for liquidated damages for substantial and final completion

Cap on liquidated damages

Early completion bonus

Liquidated damages

1. in lieu of any and all costs

2. for delay

Liquidated Damages

Article 13 added

New Provision in DBIA Document

Limitation of Liability

Limitation

LiabilityLiability

Liability

Thank you.

Questions?