Page 14 - REI Corporate Newsletter (Q2_2018)

do not
what you
completely control
All projects have to start somewhere. While Design+Build delivery
offers substantial benefits, the starting point is Design. Design+Build
is a series of processes that transports a client from intention to
realization on their projects. It sounds easy. . . and it often is.
Let's start with the definition of the project, the
Design Phase, and keys to success for defining,
designing, and coordinating the design with
the modeling and subsequent construction
effort. There are no magic tricks here – just
communication, cooperation, and a good
process.
Often, Design+Build is the adopted project
delivery model due to speed or perceived risk.
Dismissing risk, Design+Build can look frantic,
14 The Feeder | Issue 2, 2018
of training or expertise, managing design has all the
By Bill Mazzetti, Senior VP of Engineering
unorganized, and risky when placed under the
microscope of a highly compressed schedule.
But this can be said about any project.
In the Design Phase, there are three discrete
activities – Definition, Design, and Coordination.
Regardless of the project or delivery method,
these three activities are ALWAYS present (key
control points for cost, constructibility, schedule,
and coordination will be touched on throughout
this article). While this may not be your basis
are typical construction risks, a faulty design can and
same mechanics as managing any aspect of the
will be fixed by the processes and habits suggested
work. The one condition; however, is realizing that the
below. A well-documented, agreed-to design that is
signed off by the Owner eliminates most of this risk.
activities in the Design Phase are alien to most of the
other work when running projects.
Design is often quoted as a single activity – we design
First, we address risk in Design+Build through a it once. If you change it, you pay to have it redone.
raw view. This is not a harbinger of bad things that Based on our experience, design changes average
will happen in a Design+Build delivery; but, rather a 5-10% of the total cost, this is not including job delays.
forecast of what lies ahead in order to plan, contract, However, this is not unlike any other activity we
and manage accordingly. undertake in construction. Change is change. What
we do about change, vis a vis cost or extension, is
Builders will often express that having outside where we financially make or break a job.
engineers on projects transfers risk to the consultant.
Design cannot be consumed as a product.
Design is a process and defines the work
build for the cost and schedule we expect.
we intend to build. Design enables the
This is obvious, but flawed for E&O situations and is The first phase of design is Definition. Definition
often used to contain cost or to secure services that provides enough detail and intention to provide an
are not in-house. Several misconceptions come along estimated cost of construction, schedule, and direction
with this. for the final design. In short, Definition directs where
the Design needs to go.
In signing a Design+Build contract, the contractor During the bid process, we often receive preliminary
bears 100% of the design risk -- regardless if it is
an internal or external engineering organization. engineering documents such as single lines, layouts,
Most consultants offer very low liability coverage, specs, or a basis of design that defines where the
design should start; and sometimes we provide it.
or lack adequate insurance for large Design+Build
projects. Even with a CCIP or OCIP program in place, Regardless, the preliminary work in the Definition
negligence can, and will be, clawed back along the Phase is usually the same, regardless of the building
contracting lines. Any liability will flow through the type or trade. If it is not there, be cautious.
General Contractor and subconsultant first, then to
the outside engineer. Any excess claim, above the A mistake often made is not analyzing and
limits we contracted for (often limited to the fees paid determining where the gaps may be in these
on the project), would fall to the contractor. While you documents. The first activity in the Definition Phase
think you are transferring risk and cost to the outside of design is to discover where the gaps or conflicts
engineer, you are actually limiting their liability. So are in these documents. While these set out the
how do you get into trouble on a Design+Build job? design intent, they do not dictate the final design. Our
Design will accomplish that. There is the freedom
There are three ways trouble arises: 1. it does not of Design+Build to deliver a project that honors the
work, 2. it is late, 3. it is broken. While the latter two Definition of the work, but is cast in a manner that
Issue 2, 2018 | The Feeder 15