Assessing the Performance of Two-Step Design-Build Procurement

Abstract

Design-Build (DB) is an alternative project delivery system that is distinguished by a DB team acting as the single point of responsibility for a project where the design and construction phases overlap. There are two main methods used to procure DB services: single-step procurement and two-step procurement. This paper focuses on quantifying the resource expenditures of two-step DB projects through investigating both pre-award and post-award metrics. The pre-award metrics include the costs related to the request for qualification (RFQ) and request for proposal (RFP) phases, while the post-award metrics focus specifically on overall project performance (e.g. project cost, delivery schedule, etc.) The authors developed a detailed survey to collect data from public building projects procured using twostep design-build procurement methods. This paper presents preliminary results, specifically the data stemming from six two-step DB projects completed after 2005 and with total project costs ranging from $20.5 million to $299 million. Results of the analysis show the total cost to industry to develop full proposals is about one percent of the total project cost. Additionally, the total proposal cost to DB teams was reduced significantly due to stipend incentives offered by the owners. BACKGROUND The design-build (DB) alternative project delivery method has become increasingly common in the architecture, engineering, and construction (AEC) industry. DB is distinguished by a single point of responsibility for the design and construction of a facility. There are two main methods used to procure DB services: single-step procurement and two-step procurement. There is a lack of information comparing the performance of these two main DB procurement methods. Additionally, major stakeholders in the AEC industry are concerned that the singlestep DB process might be placing an unfair burden on the industry, particularly because it typically requires a large number of DB teams to develop costly proposals (ECB 2012). As a result, the Design-Build Institute of America (DBIA) and its partner organizations organized a research effort to study and compare the resource expenditures of single-step and two-step DB procurement. This paper focuses specifically on providing a performance analysis of the two-step DB procurement