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DESIGN-BUILD FOR LOCAL PUBLIC AGENCIES

 

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INTRODUCTION
EXISTING LAW
LEGISLATION

OTHER RESOURCES

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INTRODUCTION

The design-build delivery system is characterized by the design and construction of a project by a "single" entity.  Rather than working with an architect prior to contracting with a contractor (i.e., design-bid-build), the owner chooses an architect and a contractor in one process.  It has been favored for many years in the private sector, and is utilized heavily by the Federal government and frequently by the State of California.

The advantages of design-build are a shortened delivery period and the potential for an improved product and cost savings.  With design-build, the design and construction phases overlap, rather than running sequentially.  (How much they overlap depends upon the degree of control other agencies have over the local public agency's design decisions.  School and community college districts, for instance, must reach the point where the Division of the State Architect will approve at least partial plans before construction can begin.) 

Since the architect and contractor are chosen at the same time, they work together to develop and refine the design, with constructability and cost efficiency in mind.  This should minimize the disputes that occur during construction regarding the interpretation of the plans.  Even if the disputes arise, the responsibility for any unexpected costs almost always rests with the design-build team, rather than the owner.  

Owners should keep in mind, however, that mid-project changes and unexpected site conditions can lead to increased owner costs and that the level of autonomy granted to the design-build team will affect the owner's ability to disclaim responsibility for any defects in the plans and specifications.

Ideally for owners, the architect would be an employee of the contractor or the architectural and contracting firms would be joined in a partnership or joint venture.  More frequently, however, a looser arrangement exists between these entities.  In part, this is because insurance companies are still developing coverage products that address these projects' unique needs.

The formalized selection processes that apply to certain local public agencies are discussed in Existing Law, below.  Even those public agencies that do not have express legislation authorizing the design-build delivery method should be able to utilize a system that allows a "construction manager" to work with the architect, oversee a bid process for subcontractor packages that will cover all aspects of the construction, and then become, in essence, a "general contractor" after bids are received and contracts are awarded and then assigned to it.

EXISTING LAW

The numbers of local public agencies that have statutory authority to utilize design-build methods are still relatively few.  The existing explicit authority can be found at:

  • Education Code §§17250.10 et seq. - School districts

  • Education Code §81700 et seq. - Certain community college districts

  • Public Contract Code §20133 - Counties of Alameda, Contra Costa, Sacramento, Santa Clara, Solano and Tulare

  • Public Contract Code §20175 - Cities of West Sacramento and Davis

  • Public Contract Code §§20209.5 et seq. - various transit districts and operators

  • Public Contract Code §20301.5 - Santa Clara Valley Transportation Authority

LEGISLATION

New bills will be summarized as they are introduced in the Legislature.


ARTICLES AND OTHER RESOURCES

The American Institute of Architects and the Association of General Contractors have each developed model contracts for design-build contracts, although they would need to be adapted for use on public projects.

The Design-Build Institute of America maintains extensive information and resources on this delivery method, and provides frequent educational seminars.

DesignBuild Magazine

The National Society of Professional Engineers has a lengthy and very informative discussion of design-build in the public arena.

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This web site and its contents are provided solely for informational purposes and should not be construed as legal advice.  In order to give legal advice, PubliConstructionLaw must be made aware of all facts which relate to the question being asked, and to establish an attorney-client relationship with the entity asking the question.

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