RECOMMENDED GUIDE FOR NEXT GENERATION …

1 georgia DOT RESEARCH PROJECT RP10-23 FINAL REPORT RECOMMENDED GUIDE FOR NEXT GENERATION of transportation DESIGN BUILD PROCUREMENT AND CONTRACTING IN THE STATE OF georgia GDOT Research Project No. RP10-23 Final Report RECOMMENDED GUIDE FOR NEXT GENERATION of transportation DESIGN BUILD PROCUREMENT AND CONTRACTING IN THE STATE OF georgia By Baabak Ashuri, , DBIA Hamed Kashani, georgia Institute of Technology Contract with georgia Tech Research Corporation September 2012 The contents of this report reflect the views of the author(s) who is (are) responsible for the facts and the accuracy of the data presented herein.

2 The contents do not necessarily reflect the official views or policies of the georgia Department of transportation or the Federal Highway Administration. This report does not constitute a standard, specification, or regulation. 1. Report No.: FHWA-GA-12-1023 2. Government Accession No.: 3. Recipient's Catalog No.: 4. Title and Subtitle: RECOMMENDED GUIDE for Next GENERATION of transportation Design Build Procurement and Contracting in the State of georgia 5. Report Date: September 2012 6. Performing Organization Code: 7.

3 Author(s): Baabak Ashuri, Ph. D., DBIA Hamed Kashani, 8. Performing Organ. Report No.: 9. Performing Organization Name and Address: Economics of Sustainable Built Environment (ESBE) Lab School of Building Construction georgia Institute of Technology 280 Ferst Drive, 1st Floor Atlanta, GA 30332-0680 10. Work Unit No.: 11. Contract or Grant No.: 0010223 (RP 10-23) 12. Sponsoring Agency Name and Address: georgia Department of transportation Office of Research 15 Kennedy Drive Forest Park, georgia 30297-2599 13. Type of Report and Period Covered: Final; September 2010 -September 2012 14.

4 Sponsoring Agency Code: 15. Supplementary Notes: 16. Abstract: The overall objective of this research project is to develop a systematic approach that evaluates the appropriateness of Design Build Project Delivery System for a transportation project. State DOTs can benefit from this systematic assessment approach and better implement the Design Build Project Delivery System in highway construction programs by selecting the projects that are the most appropriate candidates for Design Build. The authors initially analyzed and documented state of practice of Design Build across State DOTs in the United States.

5 Several structured interviews with representatives from three State DOTs (CDOT, VDOT, and FDOT) were also conducted to further enhance understanding about the state of practice in using Design Build Project Delivery System in these DOTs. The detailed interviews of these three State DOTs helped the research team understand that a systematic, transparent, and consistent approach towards the application of Design Build Project Delivery System is critical in the success of Design Build programs in State DOTs. The most pertinent findings of this research are: 1.

6 A systematic approach that evaluates the appropriateness of Design Build Project Delivery System for a transportation project; 2. A systematic high-level risk allocation for Design Build projects; 3. A systematic approach that evaluates the appropriateness of procurement methods for a Design Build project; and 4. A Design Build Guidebook that describes the process of evaluating the appropriateness of Design Build Project Delivery System, initial risk allocation in Design Build contracts, and assessment and selection of procurement methods for Design Build projects.

7 17. Key Words: Innovative Project Delivery Systems, Design Build, Procurement Method, Risk Management 18. Distribution Statement: Classification (of this report): Unclassified 20. Security Classification (of this page): Unclassified 21. Number of Pages: 275 22. Price: iv TABLE OF CONTENTS LIST OF V LIST OF VII LIST OF ABBREVIATIONS .. VIII ACKNOWLEDGMENTS .. XI CHAPTER 1 EXECUTIVE SUMMARY .. 1 CHAPTER 2 INTRODUCTION .. 6 CHAPTER 3 LITERATURE REVIEW .. 14 CHAPTER 4 STATE OF PRACTICE OF DESIGN BUILD IN COLORADO, FLORIDA, AND VIRGINIA DEPARTMENTS of transportation .

8 52 CHAPTER 5 A SYSTEMATIC APPROACH TO EVALUATE THE APPROPRIATENESS OF DESIGN BUILD PROJECT DELIVERY SYSTEM FOR A transportation PROJECT ..157 CHAPTER 6 A SYSTEMATIC APPROACH TO DEVELOP INITIAL RISK IDENTIFICATION, ASSESSMENT AND ALLOCATION MATRICES FOR transportation DESIGN BUILD PROJECTS ..179 CHAPTER 7 A SYSTEMATIC APPROACH TO EVALUATE THE APPROPRIATENESS OF PROCUREMENT METHODS FOR transportation DESIGN BUILD PROJECTS ..206 CHAPTER 8 CONCLUSIONS AND RECOMMENDATIONS FOR FUTURE RESEARCH .. 230 REFERENCES .. 238 APPENDIX I.

9 248 APPENDIX II .. 258 APPENDIX III .. 261 v LIST OF FIGURES FIGURE Design Build State Laws For transportation Project In 2005, 2010 And 2012 ..10 FIGURE Number Of Design Build Projects Completed, Active and Proposed By State Dots as of 2007..11 FIGURE Main Factors that Motivate State Dots to Select Design Build Project Delivery System ..24 FIGURE Project Delivery System Selection Flowchart Adopted from Gordon (1994) ..39 FIGURE Project Procurement System Selection Model Developed by Alhazmi and McCaffer (2000) .40 FIGURE Project Delivery System Selection Procedure Proposed by Oyetunji and Anderson (2001).

10 42 FIGURE Multi-criteria Project Procurement System Selection Model Developed by Ng and Cheung (2007)..45 FIGURE Conceptual Project Delivery System Selection Process Developed by Ibbs and Chih (2011) .46 FIGURE Overview of the Project Delivery Selection Process Proposed by Love et al. (2012) ..47 FIGURE Flowchart Describing the Project Delivery System Selection Process Proposed by Molenaar et al. (2012) ..48 FIGURE Example of the Forms That Can Be Used For the Analysis Opportunities and Obstacles (Top) as Well as the Evaluation Summary Form (Bottom).