What is Progressive Design-Build? A Collaborative Approach to Construction
Progressive Design-Build is a project delivery method where the owner selects a design-build team based on qualifications and cultural fit and then works collaboratively with them to develop the design and pricing before committing to a firm, fixed construction price. This allows for greater flexibility, collaboration, and ultimately, potentially better project outcomes.
The Evolving Landscape of Project Delivery
The construction industry is constantly evolving, seeking more efficient and effective ways to deliver projects. Traditional methods like design-bid-build, while still prevalent, often suffer from adversarial relationships and limited collaboration. Progressive Design-Build (PDB) emerges as a compelling alternative, prioritizing partnership and transparency from the outset.
Core Principles of Progressive Design-Build
PDB is built on several key principles that distinguish it from other project delivery approaches:
- Early Collaboration: The owner, designer, and contractor are involved from the project’s initial stages, fostering a shared understanding of goals and challenges.
- Qualifications-Based Selection: Selection is based on qualifications, experience, and cultural fit, rather than solely on price. This allows for the best possible team.
- Phased Approach: The project unfolds in distinct phases, allowing for iterative design and cost development.
- Open-Book Accounting: All costs are transparently shared between the owner and the design-build team.
- Risk Sharing: Risks are identified and allocated collaboratively, fostering a sense of shared responsibility.
The Progressive Design-Build Process: A Step-by-Step Guide
The PDB process typically involves the following steps:
- Owner Selection of Design-Build Team: The owner issues a Request for Qualifications (RFQ) and selects a team based on their expertise, experience, and proposed approach.
- Pre-Construction Phase (Phase 1): The owner and design-build team work collaboratively to develop the design, scope, and budget. This phase may involve multiple iterations.
- Guaranteed Maximum Price (GMP) Development: Once the design is sufficiently developed, the design-build team proposes a GMP based on the agreed-upon scope.
- Owner Acceptance of GMP: The owner reviews the GMP and, if acceptable, approves it.
- Construction Phase (Phase 2): The design-build team proceeds with construction according to the approved design and GMP.
- Project Closeout: Final project documentation is completed, and the project is handed over to the owner.
Advantages of Progressive Design-Build
Choosing PDB can offer several key benefits:
- Increased Collaboration: Fosters a collaborative environment between the owner, designer, and contractor.
- Improved Communication: Open communication channels minimize misunderstandings and delays.
- Enhanced Innovation: Encourages creative problem-solving and innovative solutions.
- Reduced Risk: Collaborative risk management mitigates potential issues.
- Greater Transparency: Open-book accounting provides full visibility into project costs.
- Potential Cost Savings: Early involvement of the contractor can identify potential cost-saving opportunities.
Potential Challenges of Progressive Design-Build
While PDB offers numerous benefits, it’s important to be aware of potential challenges:
- Requires Trust: The success of PDB relies on trust and a strong working relationship between all parties.
- Demands Owner Involvement: Requires significant owner engagement and active participation in the design and decision-making processes.
- May Require More Time Upfront: The pre-construction phase can be more time-consuming than traditional methods.
- Potential for Disputes: Disagreements can still arise, even in a collaborative environment.
Common Mistakes to Avoid in Progressive Design-Build
Avoiding these mistakes can significantly increase the likelihood of a successful PDB project:
- Lack of Clear Communication: Establishing clear communication protocols is essential.
- Inadequate Due Diligence: Thoroughly vetting potential design-build teams is crucial.
- Unrealistic Expectations: Maintaining realistic expectations about budget, schedule, and potential challenges is important.
- Insufficient Owner Involvement: The owner must be actively involved throughout the process.
- Failure to Document Agreements: All agreements and decisions should be documented in writing.
Table: Comparing Traditional Design-Bid-Build vs. Progressive Design-Build
| Feature | Design-Bid-Build (DBB) | Progressive Design-Build (PDB) |
|---|---|---|
| Team Selection | Primarily based on low bid | Based on qualifications, experience, and cultural fit |
| Collaboration | Limited until construction phase | High collaboration from the project’s initial stages |
| Risk Allocation | Primarily borne by the contractor | Shared between the owner, designer, and contractor |
| Pricing | Firm, fixed price based on completed design | Collaboratively developed GMP based on an evolving design |
| Owner Involvement | Lower during design, higher during construction | Higher throughout the entire project lifecycle |
| Flexibility | Limited design changes after bid acceptance | Greater flexibility to adapt to changing needs and incorporate innovative solutions |
Frequently Asked Questions (FAQs)
What type of projects are best suited for Progressive Design-Build?
PDB is particularly well-suited for complex projects with significant uncertainties, projects requiring innovative solutions, and projects where collaboration and risk sharing are important. Examples include healthcare facilities, research laboratories, and large-scale infrastructure projects. Projects requiring quick turnaround times might not be ideal due to the expanded pre-construction phase.
How is the Design-Build team selected in a Progressive Design-Build project?
The owner typically issues a Request for Qualifications (RFQ) and evaluates potential teams based on their experience, qualifications, technical expertise, proposed approach, and cultural fit. Price is not the primary factor in the initial selection process. Interviews and presentations are often used to further assess the teams.
What is the role of the owner in Progressive Design-Build?
The owner plays a critical role in PDB, acting as a collaborative partner throughout the project. They are involved in decision-making, provide input on design and scope, and actively participate in risk management. Effective communication and a willingness to collaborate are essential for the owner’s success.
How is the Guaranteed Maximum Price (GMP) determined in Progressive Design-Build?
The GMP is developed collaboratively between the owner and the design-build team during the pre-construction phase. It’s based on a defined scope of work and a detailed cost estimate. The GMP includes all direct costs, indirect costs, fees, and a contingency to cover unforeseen expenses.
What happens if the project costs exceed the GMP?
If the project costs exceed the GMP due to factors within the design-build team’s control, the design-build team is responsible for covering the additional costs. However, if the cost overruns are due to unforeseen circumstances or changes in scope requested by the owner, the GMP may be adjusted accordingly.
What happens if the project costs are lower than the GMP?
Typically, any cost savings realized below the GMP are shared between the owner and the design-build team. The specific sharing arrangement is defined in the contract. This incentivizes the design-build team to find cost-effective solutions and manage the project efficiently.
How is risk managed in a Progressive Design-Build project?
Risk management is a collaborative process in PDB. The owner and design-build team work together to identify potential risks, assess their impact, and develop mitigation strategies. Risk is allocated based on which party is best positioned to manage it.
What are the key contract documents used in Progressive Design-Build?
Key contract documents typically include a Pre-Construction Services Agreement (PCSA) that governs the initial phase of the project, and a Design-Build Agreement that covers the construction phase. These agreements outline the roles and responsibilities of each party, the payment terms, and the risk allocation framework.
How does Progressive Design-Build promote innovation?
PDB encourages innovation by fostering a collaborative environment where ideas are freely exchanged and evaluated. The early involvement of the contractor allows for constructability reviews and value engineering suggestions that can lead to innovative design solutions and cost-saving opportunities.
What are the disadvantages of using Progressive Design-Build?
Potential disadvantages include the need for a high level of trust and collaboration, the requirement for significant owner involvement, and the potentially longer pre-construction phase compared to traditional methods. It’s crucial to carefully assess whether PDB is the right approach for a specific project.
What is Integrated Project Delivery (IPD) and how does it relate to Progressive Design-Build?
Integrated Project Delivery (IPD) is another collaborative project delivery method that shares many similarities with PDB. Both emphasize collaboration, transparency, and shared risk. However, IPD typically involves a more formal and integrated contractual structure, often using a multi-party agreement that binds the owner, designer, and contractor together.
How can an owner ensure a successful Progressive Design-Build project?
To ensure success, an owner should carefully select a qualified and experienced design-build team, establish clear communication protocols, actively participate in the design and decision-making process, foster a collaborative environment, and maintain realistic expectations throughout the project. Due diligence is vital.