Team Structures and Project Performance in the Design-Build / Integrated Project Delivery Marketplace. Mark E. Alpert, P.E.

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1 Team Structures and Project Performance in the Design-Build / Integrated Project Delivery Marketplace Mark E. Alpert, P.E., DBIA CH2M HILL

2 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

3 Introduction: teams must have a design-build mindset Engineer Constructor Engineer + Constructor DESIGN-BUILD Engineer + Constructor + Design-Build Mindset = DESIGN-BUILD 3

4 OWNERS DELIVERY PREFERENCES

5 Typical Design-Build Team Structures Engineer-lead Contractor-lead Integrated design-build without self-performance Integrated design-build with self-performance 5

6 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 Unique commercial requirements David L. Tippin Water Treatment Facility, Tampa. FL 2002 DBIA Water Systems Quality Award Owner preference of approach in team structure 6

7 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 Larger Delivery project System Water bonding Treatment requirements? Plant and Finished Water Pump Station Legislation mandating Colorado Springs, self-performance Colorado

8 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 Must meet security for performance requirements Bonita Springs East Water Reclamation Facility, Bonita Springs, FL DBIA Excellence Award for Projects over $15 Million

9 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 Must meet 2012 DBIA security National Water/Wastewater for performance Award requirements Spokane County Regional Water Reclamation Facility, Spokane, WA

10 Planning Market Deliver Decide what structure fits best for your firm Identify personnel who can be effective with selected structure and project requirements Define what s a good deal for your firm and how much are you willing to invest to win 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 10

11 Planning Market Deliver Performance guarantees Cost of work Financial risk and margin expectations Get Smart on What Clients Expect Transparency in pricing Design for design-build Project management add the right talent 11

12 Planning Market Deliver Deliver Work and Refine from Lessons Learned Choose experienced Design- Build Manager to lead firm s team Commit core experienced resources to projects Establish pricing criteria that is market based and meets firm s business goals Standardized systems and tools to control, cost, scope, and schedule Accountability will be key in performance 12

13 Significant Opportunities for Design-Build Delivery

14 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.