Advantages of Progressive Design-Build as an Alternative Delivery Method

Advantages of Progressive Design-Build as an Alternative Delivery Method

What is Progressive Design-Build?

Progressive design-build is a delivery method in which a design-build team is selected based on its qualifications rather than price very early in the project. The procurement process is typically program-focused with RFP requirements centered around team culture, processes, and project approach. After selection, the owner works with this design-build team to gradually develop the design to an agreed-upon contract price at a set design milestone.

In contrast, traditional design-build delivery includes a builder and designer teaming in a design competition (typically up to a 100% schematic design) to meet the owner's program and design standards and provide a set price. Upon award, the design-build team is then at risk for completing the design and construction of the project for that project budget, without deviating from the owner's criteria or the submitted design. For these reasons, the selection process of a traditional design-build team is lengthier than progressive and limits the amount of owner engagement post award.

The progressive design-build approach offers a range of benefits that streamline the construction process and enhance project outcomes for the owner. This method fosters collaboration as the owner, designer and builder work closely together, aligning goals and improving communication throughout the entire process. In addition, the early involvement of the design-builder supports informed decision making throughout the project life cycle and allows the owner to continue adjusting their program and project requirements. The design and construction progress in conjunction with one another, resulting in greater flexibility, transparency, and budget alignment as the design evolves.

The solicitation process for progressive design-build begins with owners developing a request for qualifications/proposal (RFQ/RFP) suitable to procure a design-build team. The RFQ/RFP can be produced entirely by the owner or with the assistance of an executive architect, consultants, cost estimators, construction management professionals, and others. The RFQ/RFP can be single or multi-step submissions. If done separately, the RFQ is typically used to shortlist three potential design-builders.

Most RFPs are structured to select the design-build team primarily based on qualifications, such as depth of experience, past performance, project approach, safety record, and other qualitative factors important to the owner.

Proposals from the design-build teams typically include limited design concepts or none at all. The construction budget is also often omitted by the design-build team at this stage; however, a cost basis for preconstruction may be requested. Once chosen, the design-build team is then responsible for working with the owner in real-time to develop and execute both the design and construction phases.

The procurement of progressive design-build services typically involves a two phased approach.

Phase 1 - Preconstruction and Preliminary Design

During this phase, the design-builder partners with the owner through the design development. Stakeholders are engaged to validate the scope and baseline requirements toward a preliminary schedule and realistic budget. The deliverables from this phase often include completed design development drawings, design specifications, a narrative basis of design responding to the owner's project requirements, an updated schedule, and a project budget. The financial model by which cost commitment is achieved varies. Two common variations are Lump Sum and Guaranteed Maximum Price, each with unique considerations relative to owner involvement and associated risks.

Once a design is substantially or completely developed, the owner can choose to progress forward by:

1. Extending the original contract;
2. Creating a separate contract for construction services; or
3. Using an "off-ramp" option to terminate the design-builder relationship if the parties cannot agree on final project terms.

It is important to recognize the owner must have reserved rights to the design in the original agreement to bid out the construction phase separately.

Phase 2 - Final Design and Construction Phase

Once the contract terms are agreed upon, the project continues as a typical design-build project as it enters the construction phase. The design-build team, along with any potential trade partners who were onboarded early, utilize this time to complete the construction drawings aligning budget, scope and schedule.

Unique Features of Progressive Design-Build

Progressive design-build differs from other delivery methods in a variety of ways.

• Qualification-Based Selection: The design-build team is selected based on qualifications, not project pricing or design.
• Off-Ramp Option: The owner and design-builder can end the design-build relationship before construction if they are unable to agree to project terms.
• Contract: A single contract can be executed for both phases, or two separate but consecutive contracts may be issued - providing flexibility for the owner.
• Early Work: Separate contracts may be entered into before a design proposal is accepted to expedite project schedules.

Key Benefits

In summary, progressive design-build offers several advantages as a project delivery method. When considering if this delivery method would be appropriate for your next project consider these notable benefits:

1. Enhanced Collaboration: Progressive design-build fosters a collaborative environment where the owner, designer and builder work together from the project's inception. This close collaboration helps in aligning project goals, improving communication and ensuring all stakeholders are on the same page especially on complex or evolving projects.
2. Flexibility in Design and Construction: The progressive nature of this method allows for design and construction phases to overlap. This flexibility can help in identifying and addressing potential issues early, leading to a more efficient project timeline.
3. Cost Management: The budget is better understood during the design phase as compared to other project delivery models. The early alignment around the project scope and goals helps ensure proposed solutions stay within the budget and schedule parameters.
4. Risk Mitigation: Early involvement of the design-builder helps identify risks and develop mitigation strategies. This proactive approach can minimize unexpected issues and reduce the likelihood of costly changes or delays.
5. Speed of Delivery: By overlapping the design and construction phases, progressive design-build can significantly reduce the overall project timeline. This can be particularly beneficial for projects with tight deadlines.
6. Transparency: The progressive design-build process emphasizes transparency in pricing and scheduling, allowing the owner to track progress and make informed decisions throughout the project life cycle.

These advantages make progressive design-build an attractive option for many construction projects, providing a balanced approach to cost, quality and schedule management.

About the Author

Megan Fairley is Director of Design Integration for McCarthy's Southern Pacific Region. With 12 years of experience in both field operations and design phase services, Megan has successfully contributed to several significant healthcare and collaborative delivery projects for clients such as UCLA Health, UCI Health, St. Jude Medical Center Fullerton, and Children's Hospital Orange County. Most recently, Megan has been instrumental in the UCLA Neuropsychiatric Replacement Hospital, a progressive design-build behavioral health in the Mid-Wilshire area of Los Angeles. Megan's contributions to the industry have earned her recognition as a "Woman of Influence in Architecture, Construction & Design" by the LA Business Journal in both 2022 and 2023. She is also a certified DBIA Professional, underscoring her commitment to excellence in design-build practices

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