Design-Build Questions

Welcome to the new Design-Build frequently asked questions (FAQ) section.

The CDBI receive Design-Build questions from time to time and decided to post these so others could benefit from the answers.

Once a question is received it is then reviewed by our Council and then an answer is agreed upon. Since the council comprises of Owners, Consultants, Contractors, Trade Contractors, and Allied Services the answer must be fair to all parties.

Due to the need for consensus it is sometimes a timely process and even more so depending on the complexity or the type of question.

CDBI welcome your questions, but please allow sufficient time for them to be answered properly. You can submit your question directly to CDBI by using the following form:

Note: The personal information that you have provided to us to enable us to respond to your inquiry will only be used for that purpose. You will not be placed on any mailing lists, nor will your information be released to any third party, except as may be authorized by law. The authority for obtaining this information from you complies with section 38(2) of the Freedom of Information and Protection of Privacy Act.

Questions and Answers

Question (Part 1):
As part of my own research of construction project management I am trying to find people who I might be able to interview or read about and may be try to model. I am trying to find more info on how they got started in this design build industry what were there greatest accomplishments and hang ups. Where they are now, were they see them selves in the near future?

David Dhamoon
Manorpark Inc.

Answer (Part 1 response):
David,

Thank you for your query on the CDBI website. In order for me to help you get the answers you need, would you please expand on what specific areas of information you are looking for, including a bit of your own background. In that way, I can direct you to the appropriate individuals to help you with your questions.

Regards,

Neil J. McFarlane, P.Eng.
Chair
Standards of Practice Committee
Canadian Design Build Institute

Question (Part 2):
Well I have a Cadd Design Diploma from the international Academy of Design and a diploma for PM from Humber Collage, both in Toronto and I have recently opened my own company and I’m facing some questions on growth and expanding from simple reno work to full scale design-build my company doesn’t have much of a history but I have been asked to take on smaller design build projects which is the direction I would like to go in. However there is a sense of fear involved with taking on such a project. I would really appreciate some advice and insight.

Answer (Part 2 response):
David,

It is really not as daunting as it seems – especially if you are starting out with smaller projects. Ideally, it would be great if you were able to get some experience by working in a firm that practices design build, however since you have already opened your own design company, it is not likely that you would work for someone else at this time!

I sense that what you are looking for is how to construct what you have designed, and offer one complete package to your clients. You are performing what is referred to as “designer-led design build”. You meet with your client, figure out their design needs, prepare the design, and then you are responsible to get the project built. In your case, if you are a small, one-person company, it may be difficult for you to perform the construction side of the business yourself. I suggest that you link up with a few general contractors of the type and size suited to the projects you want to perform. You can then enter into construction contracts with them, and offer a complete design-build package to your clients.

I would be happy to expand on this further with you, and you can call me if you wish at 780-451-0101. I also suggest that you attend one of our conferences on design-build (The next one is coming up Sept 20-22 in Halifax). You would find the one day tutorial on design-build an excellent introduction to design-build, and to the other two days of the conference. As a participant in the conference, you receive a binder full of relevant material, the manual of practice, and contract forms. You also have the opportunity to network with many, many people experienced in design-build, willing to offer their experience to you.

You can also purchase material from the CDBI, and I believe that is listed on the website.

Please let me know if I can be of further help.

Regards,

Neil McFarlane

Question:
We have a new school project that may lend itself to a design-build project. There would be 3 or 4 distinct phases to be built over a period of approximately 5 years. I am looking for information to convince the provincial government that this might be a better way to go than separating the project into 3 or 4 separate projects. I am also looking for reference material that would clearly indicate what the responsibilities of the owner would be in this kind of project. Any information you can provide would be useful.

Answer:
The following information should help you get pointed in the right direction to start this project off. Thank you for coming to the Canadian Design-Build Institute for assistance, we are glad to help.

Reference Materials
Firstly, in order to get an understanding of Design-Build and the Owner's role in Design-Build, I suggest you obtain a copy of the Canadian Design-Build Practice Manual, available from your local Construction Association. The set includes:

Series 100 Introduction and General
Series 200 Procurement and Award
Document 210 RFP (Request for Proposal) Guide
Series 300 Responding to RFQ's and RFP's
Document 310 Conceptual Estimating

If you are not familiar with Design-Build, these documents will give you some insight into the process. They are also sold individually if you don't want the whole set.

Project Design Development
If treated as a Design-Build project, a 3 to 4 phase, 5-year project can easily be a single project, rather than broken out into several projects. The benefits are outlined below.

First, you need to come up with a Statement of Requirements that allows the interested Design-Build teams to understand what you are wanting to achieve, like a master plan, so that your end point after 5 years is clearly defined. With this document, the Design-Builder can determine how they can design and deliver that end product to you. You may already have this Statement of Requirement information readily available. In any event, you should consider retaining the services of a Consultant experienced in Design-Build to assist you in preparing that document and in preparing the Request for Qualifications and Request for Proposal. The key is to state your requirements as clearly and succinctly as possible at this stage so there is no confusion later on.

Since this is a publicly-funded project, once you have received Proposals for your project, you will need to evaluate them in an objective manner (as much as possible). The evaluation criteria should be developed well in advance, so the evaluation process can proceed quickly, efficiently, and transparently. This will be required by the School Board and the provincial government to ratify your recommendation of the successful Design-Build Proponent.

Project Costs
In order to determine your project costs up front, you can request the Design Builders to provide a cost for the entire project or for each phase over the projected time frame, and when each phase will start and complete. The Design-Builder can take the risk of cost escalation over the life of the project, or the pricing for each phase can be given in current dollars with an agreed upon method of determining escalation of costs over the time span of the project. You can then analyze the impact on the school board's funding & project expenditures over the 5 year duration.

Conversely, you can spell out your budget allowances for each fiscal year to the Design-Build Proponents as part of your Statement of Requirements. This will allow the Design-Builder to fit the work to your budget and pace the work over the 5 years.

Design-Build Benefits
As far as the provincial government funding this project, the benefits of Design-Build are:

A 5-year development plan and design is determined early along withphasing
Project costs and a 5-year cashflow are determined early
The design can be done early and assessed throughout the 5 years to allow for design efficiencies and improvements over the life of the project.

I hope this is helpful to you. Please let me know if you have any further questions.

Neil J. McFarlane, P.Eng.
Chair, Standards of Practice Committee
Canadian Design-Build Institute

Question:
I am currently working towards my CMA (Certified Management Accounting) designation and have been given a case involving an architectural company. One of the issues is whether or not design-build is appropriate for construction within the healthcare industry. I was hoping you could provide me with some information on this issue or direct me to where I could find some.

This would be greatly appreciated. Thank you.

Monica Waggoner

Answer:
Monica:

Dianna Fournier at CCA passed your message on to me and hopefully the following will address the answer sufficiently for you:

Dunlop Architects, of which I am a Principal has been active in Health Care Design for the past forty years and are considered one of the leading design firms in Canada in Hospital Design. Our experience with Design-Build in Health Care has been varied ranging from straightforward Design-Build as the design leaders in a proponent team, through the intricacies of the P3 projects as both compliance consultants working for the Hospital and as members of a proponent team pursuing the Design-Build-Finance-Operate-Manage contract.

In our considered opinion Design-Build is a viable form of project delivery for Health Care projects provided design standards and design criteria are clearly established for the project, prior to the Request for Proposal being issued to proponents. Unfortunately at this time no Provincial or Federal standards as such exist. It therefore requires that the Hospital or Government body putting out the proposal call establish and document those standards in such a way and to such a level of detail that both the Hospital and the responding proponents are safeguarded. This however does take a considerable amount of time and financial expenditure and requires a dedicated, controlled and focused approach, all of which could be avoided if either Provincial or Federal standards were in place.

Where in the past such standards have not been clearly established then projects have either failed as Design-Build projects and have reverted to the traditional Design-Bid-Build process or the resultant proposals are not comparable.

Monica, I trust that this provides an answer to your question. Best wishes in your efforts to achieve your CMA.

Regards,

David Morgan
Principal
Dunlop Architects Inc.

Question:
Are there any regulations about releasing budget figures when issuing a design-build project?

We are working on a project where the owner is doing a design-build but has not made public the budget amount. Is this normal?

I would appreciate any information you could give me.

Sincerely,

Greg Leskew
Paul S. Leskew & Associates Inc.

Answer:
There is no regulatory requirement for the owner to provide the budget amount. Based on the RFP, bidders will provide a tender price and if accepted by the Owner it will become the contract amount independent of the budget. During bid preparation, bidders need to concentrate on a multitude of design issues, all within the context of the budget and schedule. Providing the budget will help the bidders focus on a design solution within the realities of the project. In addition, providing a realistic and achievable budget will be an asset in attracting experienced and competent Design Build teams. The provision of the budget should be considered as essential if it is in any way a factor in the evaluation process.

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