Hidden Risk Topics in Construction Contracts – What You Don’t Know Can Hurt You

As discussed in the previous blog, the underlying principle of allocating and managing risk in projects using CMAR or design-build delivery methods is to embark upon a collaborative process between the owner and construction professionals with initial discussions on how to allocate specific risks to the party best positioned to manage and assume the risk. These decisions ultimately end up in the contract between the owner and construction professional. As part of the initial discussions when formulating a contract, the following additional areas are highlighted for your attention. In addition, WDBC’s 2018 education program now includes a specific module on contracts which also addresses the elements of risk.

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Topics: Risk Allocation, WDBC Admin.

Construction Contract Risk Allocation – What You Don’t Know Can Hurt You

The underlying principle of allocating and managing risk in projects using CMAR or design-build delivery methods is to embark upon a collaborative process between the owner and construction professionals with initial discussions on how to allocate specific risks to the party best positioned to manage and assume the risk. Chapter 3 of the WDBC Water and Wastewater Design-Build Handbook is an excellent resource on the subject of risk in collaborative-delivery projects. However, the purpose of providing this more specific commentary is to share some of the risk allocating scenarios observed during the contractual process.

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Topics: Risk Allocation.

Utilizing Design-Build Delivery to Provide Water Treatment Solutions on a Deadline

Owners often look to design-build delivery as a means to accelerate the overall schedule for their water or wastewater project. In fact, schedule advantage was cited as the #1 reason for selecting design-build delivery in a recent survey of owners conducted by the UNLV and Water Design-Build Council.

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Topics: Design-Build, Haskell.

Insights Into the Use of “Earned Performance Fees” in Design-Build Projects

One of the questions frequently asked by owners is how and when to use “earned performance fees” in water and wastewater design-build projects. In this context, earned performance fees are defined as monetary benefits established to attain a specific achievement or goal. The use of earned performance fees with any delivery method can be a powerful tool that helps both the owner and design-builder to better align accomplishing the project objectives. However, in a design-bid-build project, the intent of earned performance fees is often to drive innovation, collaboration, schedule, and cost savings, which are all hallmarks of design-build delivery. This begs the question: Why use earned performance fees for design-build delivery projects? One of the answers is: When earned performance fees are used with a design-build delivery project, it further stimulates maximizing innovation, collaboration, schedule, and cost savings – well beyond what can occur in the limited design-bid-build process, since much of the contractual arrangements are already locked in once the project goes out to bid.

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Topics: Design-Build, Earned Performance Fees, Goodwin Brothers.

Stephen R. Gates, PE, BCEE, Elected 2018 President of Water Design-Build Council Board of Directors

The Water Design-Build Council (WDBC) announced that Stephen R. Gates, PE, BCEE, Brown and Caldwell Senior Vice President, has been elected as its 2018 President of the Board, receiving the gavel from 2017 President John Doller in Dallas, TX. Transitioning from the role of the First Vice President/Treasurer, Gates chaired the Budget/Finance and Research Committees, and is in a leadership role on the Technical Practices Committee. He is responsible for development of Brown and Caldwell’s collaborative project delivery business, focusing on design-build, CMAR, and remediation services related to the environmental, water, wastewater, and energy markets provided to municipal, federal, and private organizations throughout North America.

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Topics: Uncategorized, WDBC Admin.

WDBC Announces 2018 Officers

At its annual meeting in Dallas, TX, on December 7, 2017, the WDBC Board of Directors elected its officers for 2018.

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Topics: WDBC Admin.

Early Supplier Involvement During The Development of the Response to a Design-Build RFP

In April 2016, the design-build team of Foley Company and Black & Veatch was awarded the Blue River WWTP Odor Control Phase 1 design-build contract for Kansas City, MO, Water Services Department. The proposal submitted contained two parts: 1) technical proposal and 2) lump sum fixed price with a 20-year life cycle cost analysis. The criteria for selecting the design-build team was a point system developed to evaluate the team’s technical background, experience, project approach, lump sum fixed-price construction and engineering work, and the life cycle operation and maintenance cost analysis.

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Topics: Design-Build, Enerfab, RFP.

Landmark Research Study Documents a Dramatic Increase in the Future Use of Design-Build Delivery for Water Infrastructure Projects – and Why It Is Preferred by Owners

The future for the use of design-build delivery methods for the water and wastewater infrastructure is a positive one – and one that will continue to grow through the years – likely at a minimum of 10%. The core factors driving the increased use of design-build are cost, risk, and schedule, resulting in increasing numbers and volume of design-build water and wastewater projects in utilities’ capital programs.

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Topics: Brown and Caldwell, Design-Build, Research.

Key Attributes of a Public-Private Partnership

Embracing collaboration, a key initiative promoted by the Water Design-Build Council, is much more than just a concept. Through the WDBC’s 12 years of existence, we have experienced a dramatic shift in delivery models. Whereas design-build and CMAR were considered “alternatives” just a few years ago, they are now the “go to” delivery tools for owners across the country. The reason? The benefits of true collaboration are showing how success can be achieved.

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Topics: Black & Veatch, Collaborative Delivery, P3.

What are the Differences Between Collaborative and Design-Bid-Build Delivery?

The water design-build industry defines collaborative-delivery methods as approaches to procuring and delivering a capital project that involve close collaboration among the owner, the designer, and the contractor—from design through completion. These include construction management at-risk(CMAR), both fixed-price and progressive design-build, design-build-operate (DBO), and public-private partnerships (P3).

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Topics: Collaborative Delivery, Design-Build, Education, WDBC Admin.