Abstract
Introduction: The design-build (DB) delivery method is used to deliver increasingly complex transportation infrastructure projects associated with higher uncertainty. As such, allocating risks in the contract between the owner and design-builder becomes challenging and often leads to higher initial bids, increased contingency, or claims. Learnings from implementation worldwide have underlined the need for improving risk allocation in DB contracts. Most existing studies address risk allocation mechanisms to manage contingency at the contract level. Other studies have recognized the need for owners to adapt their processes to better allocate risks in DB contracts. This study explored the influential factors for risk assessment and allocation for complex DB infrastructure projects, addressing the opportunity to improve transportation owners’ risk allocation processes before the design-builder is selected and the DB contract is awarded.Method: The objectives of this work were achieved by utilizing empirical data collected through 20 interviews with Texas Department of Transportation and private sector experts. The interview data were analyzed using inductive and axial coding. Inductive coding allowed themes to emerge without a pre-existing framework, identifying six influential factors and six pertinent risks on complex DB projects.Results: These factors include the (i) Quality of DB teams, (ii) Level of up-front investigation, (iii) Limitations on the timing of letting, (iv) Design optimization opportunities, (v) Project-specific requirements, and (vi) Relationships with third parties. Through axial coding, the interaction and frequency between the factors and risks were also examined. The coded interactions demonstrated how the identified factors influence allocation for six pertinent risks including right-of-way acquisition, stakeholder approval, site conditions, permits and third-party agreements, railroad interaction, and utility adjustments and coordination. Findings indicate that the evaluation of these interactions can shift the risk allocation from baseline norms established by an agency to correspond to project-specific needs.Contribution: In contributing to the infrastructure project management, this is the first study to examine the factors that influence risk allocation in complex DB projects and examine interactions with pertinent risks, setting the foundation for optimizing allocation based on project-specific needs. In practice, the findings presented in this study can guide owners in adapting their allocation practices, managing, and developing their strategic plan for delivering complex DB projects. The findings can also assist contractors in pricing risks more efficiently and increase competitive bidding.
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