Highlighter-Spring-2015

Mike Magahey - USACE Program Director The Design-Build Institute of America recently reported that in 2014, more than half of projects over $10M were Design-Build (D-B), with military projects having the highest market share at (81%) of projects delivered utilizing the D-B Methodology. That is a staggering number. Compare that to our Corps of Engineers Program last year, where 75% of our revenue was generated by DB projects. In the last two years, the Corps Program has been awarded three D-B projects with over $1M each. It is a large part of our business and something we execute successfully. The Future of Design-Build in the Federal Market Design-Build is part of the owner’s toolbox of delivery methods. It is a proven and efficient way to deliver the end product, saving both time and money for the owner. But recent rumblings have noted the federal government’s intention to move away from the D-B delivery method – and by move away, we mean work back towards the historical standard 60-70% of all projects over $10M. Know Your Partner The D-B relationship, by nature, can be filled with friction. D-B projects are a slippery slope of risk-reward for the team, but understand while the goal is the same, the risks are not. You must know your scope, your role, your liability and, most importantly, your partner. We have a great D-B partner in-house with Pond Constructors. I encourage everyone to know their capabilities and open a dialogue with Tim Crosby or Greg Swinks regarding Vertical D-B opportunities. For opportunities not a good fit for Pond Constructors, make sure you perform due diligence on your teaming partner. Conduct your own research such as checking the company’s financials, performing a Google search, and asking around the industry – your contacts and other persons in similar positions. Importance of Open Communication Communication with your potential partner is key throughout the D-B process. Dialogue concerning contract vehicle and how the team will execute a competitive Design-Build proposal are critical before you enter into a pursuit. It is the contractor’s goal to build the project, including the means and methods to do so. The designer is responsible for the technical elements of the design of the project. While we are teammates, there are regular disagreements between what is to be designed and what the contractor agreed to build (and the price at which to build it). Often, this is the point where communication becomes one-way and the performance on the project breaks down. Open and effective communication between a knowledgeable Design PM and Contractor PM can often work through these issues efficiently and keep the project moving towards successful completion. If one side buries its head in the sand, it’s a big problem that tends to generate bigger problems as the project progresses. We have an official D-B policy and guide documents for the different stages, including the award competition through project execution. So, before committing to any D-B relationships, please contact me at x 4871. n As a subconsultant to The Clement Group, Pond provided comprehensive A/E services for the renovation of six dormitory buildings at Fort Gordon, Georgia. This was a D-B project for USACE, Savannah District.