Team Structures and Project Performance in the Design-Build / Integrated Project Delivery Marketplace

Mark E. Alpert, P.E., DBIA CH2M HILL

 Introduction Team Structure

Agenda

Engineer-lead Integrated design-build without self-performance Integrated design-build with self-performance Constructor-led Other markets

Owners Team Structure Preferences Implications for Companies Going Forward

Introduction: teams must have a design-build mindset

Engineer

Constructor

Engineer + Constructor

DESIGN-BUILD

Engineer + Constructor + Design-Build Mindset = DESIGN-BUILD

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OWNERS DELIVERY PREFERENCES

Typical Design-Build Team Structures

Engineer-lead Contractor-lead

Integrated design-build without

self-performance

Integrated design-build with

self-performance

Engineer-Lead
Will require clear division of responsibility between engineer and contractor Technical complexity
New/unproven/cutting edge technology

Stringent project requirements

Increased effluent quality, consent decree mandate

David Unique requirements L. Tippincommercial Water Treatment Facility, Tampa. FL 2002 DBIA Water Systems Quality Award Owner preference of approach in team structure
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Contractor-led
Will require clear division of responsibility between contractor and engineer Normal structure for transportation market Project risk is lower than a complex processing facility Greater site constraints/challenges Past experience with project owner Southern Delivery System Water Treatment Plant and Larger project bonding requirements? Finished Water Pump Station Legislation mandating self-performance Colorado Springs, Colorado

Integrated design-build without self-performance

Single firm with full project responsibility May or may not be schedule-driven Owner wants input into subcontractor/vendor selection Greater involvement from local market Legislation may not allow self-performance Simple team structure with single point of accountability Bonita Springs East Water Reclamation Facility, Bonita Springs, FL. Must meet security for performance requirements 2008 DBIA Excellence Award for Projects over $15 Million

Integrated design-build with self-performance

Technical and procurement expertise required Local or state legislation or policy mandates selfperformance Self-performance potentially cheaper than subcontracted work Must be able to manage all project risks successfully Project cost is critical Spokane County Regional Water Reclamation Facility, Spokane, WA Must meet security for performance 2012 DBIA National Water/Wastewater Award requirements

Planning

Market

Deliver

Implications for Practioners

Define what risk is acceptable to your firm Inform insurance companies and banks of different business approach What additional business infrastructure is needed to be successful

Decide what structure fits best for your firm Identify personnel who can be effective with selected structure and project requirements Define whats a good deal for your firm and how much are you willing to invest to win

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Planning

Market

Deliver

Get Smart on What Clients Expect

Transparency in pricing Design for design-build Project management add the right talent

Performance guarantees Cost of work Financial risk and margin expectations

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Planning

Market

Deliver Work and Refine Deliver from Lessons Learned

Accountability will be key in performance

Choose experienced DesignBuild Manager to lead firms team Commit core experienced resources to projects Establish pricing criteria that is market based and meets firms business goals Standardized systems and tools to control, cost, scope, and schedule

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Significant Opportunities for Design-Build Delivery

Tailor your business to the market and mandated delivery structures that match clients and opportunities. The future is bright for those firms that adapt to the changing marketplace.