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Design-Build Model

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by

Lisa DeMarco

on 17 March 2016

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Transcript of Design-Build Model

Key Players
Owner Developer Team
Design-Build Team
Project
Manager
Construction
Manager
Development
Consultants
Builder
Architect
Mechanical
Engineer
The Program
List of Expectations
Architectural
Style
Unit Sizes
& Mix
Spec Levels
Community
space needs
Open space
needs
Green building
expectations
The parameters established
by the Developer which set
forth the intent and requirements
of the finished project.
Phases of the
Design-Build Process

STEP 1: FEASIBILITY
Site Identification
Concept
Program Outline
Concept Massing
Study
Concept
Budget
Outreach
STEP 2: CONCEPT REFINEMENT
Program
determined
Architectural concept
developed
Civil concept
developed
Preliminary Agreement Reached between
Design-Build Team and Developer
Landscape concept
developed
Budget presented
to Developer
All project elements are determined by the Program


Ongoing adjustments are made through the cooperative efforts of the Developer and Design-Build Team to reflect findings of the budget and entitlement processes.
STEP 4: DESIGN DEVELOPMENT
Architectural
design continues
Civil design
& planning
continues
Landscape design
& planning
continues
Project budget
regularly updated
Fast-track construction documents through plan check
Why Design-Build?
Short lead time before construction must begin leads to rushed and potentially incomplete plans.

Permit plans are sufficient for construction.
They do not need to be as in-depth and
complete as Bid-Build contract plans.
Permitting is fast-tracked.

Both cost and
time are saved.

Budget uncertainty as the plans evolve.

The budget is updated regularly and is finalized before construction drawings are complete.

If the contract plans are not completed and error-free prior to project start, the Owner has vulnerability to change orders during construction.

Any plan issues identified during construction will be resolved by the
ΩDesign-Build team.
Heightened administration effort and cost necessary to defend the intent of the project.

The duty of the Design-Build Team
to execute the Program results in reduced confusion and disputes.

The Developer
has more
time for other
projects.

Late delivery of the plans reduces or eliminates time available for value engineering efforts.

Within the parameters of the Program, value engineering efforts are dynamic and ongoing, even after the project breaks ground, giving the Design-Build team flexibility to meet budgets established earlier
in the process. This effort does
not need to be completed
prior to contract
execution and risk shift.

As the contract sum has been established well in advance of the funding deadline and the plan completion, contract qualifications should be minimal.

Risk associated with variables
will be borne by the
Design-Build Team.

Entering into a GC contract which has qualifications and unknowns causes unpredictability for the Developer.
Potential Impacts on the Project Price
Developer
Changes the
Program

The Municipality
changes its
requirements

Hidden conditions
are discovered

Issues are
identified outside
the scope

How is The Project Quality Protected?
The specific requirements of the Program will be the benchmark for expectations for both the Design-Build team and the Owner
Where the Program is silent, construction standards will meet or exceed applicable Codes and standard industry practices
Additional Assurances
Design-Build
Surety Bond

Experience & Reputation
of the Design-Build
Team

Summary of Benefits
Faster Process
Shorter Design Time
Fast-track Ability
Single Point of
Responsibility
& Warranty
Cost Savings &
Budget Control
Reduction of
Change Orders,
Tension & Disputes
Shift of Risk to
Design-Build team
Cleaner
Contractual Lines
Time Savings
Firm Price
Fixed Earlier
Each concept established consistent
with the Developer's Program.
Typical Developer Risk
Risk Mitigation
with Design-Build
Typical Developer Risk
Typical Developer Risk
Typical Developer Risk
Typical Developer Risk
Typical Developer Risk
Other
Developer Requirements
THE
PROGRAM
Risk Mitigation
with Design-Build

Risk Mitigation
with Design-Build

Risk Mitigation
with Design-Build

Risk Mitigation
with Design-Build

Risk Mitigation
with Design-Build

Innovation by the Design-Build team for the benefit of the project is encouraged.


Landscape
Architect
Civil
Engineer
STEP 3: OWNER SECURES ENTITLEMENTS AND FUNDING
STEP 4: FUNDING OBTAINED
STEP 5: CONSTRUCTION DOCUMENTATION
Permit documents finalized
Project budget
finalized
The Risk Difference
In a traditional Design-Bid-Build relationship, the Owner carries the burden of risk through the end of the construction phase.
In the Design-Build model, the Design-Build team takes on the burden of the project risk, typically at some mutually agreed-upon point during plan development.
Risk Shift Flow Chart
One of the most valuable Owner benefits of the Design-Build process is the shift of risk and responsibility earlier in the process.
STEP 1
Feasibility
STEP 2
Entitlement
Prep
STEP 3
Entitlement
STEP 4
Funding
Obtained
STEP 5
Design
Development
STEP 6
Construction
Docs
STEP 7
Construction
Period
Electrical
Engineer
Structural
Engineer
Title 24
Consultant
Funding
obtained
We have
to break ground
in 180 days!
Lots of
work to do!
Full transcript