DBIA Owner Engagement 3 — Questions and Answers
Question 1: When should an owner engage its legal counsel during the design-build procurement process?
- Only after a dispute arises with the design-builder
- Early in procurement to review contract terms, RFP language, and risk allocation provisions (Correct answer)
- Only during contract closeout to review final payment applications
- After the design-builder has submitted its final design for approval
Correct answer: Early in procurement to review contract terms, RFP language, and risk allocation provisions
Early legal review of RFP documents and contract terms helps owners avoid ambiguous risk allocations that can lead to disputes and claims during project execution.
Question 2: How does owner-imposed prescriptive specifications affect design-build project outcomes?
- They improve outcomes by giving the design-builder clear technical direction
- They can undermine design-build benefits by restricting the design-builder's innovation and efficiency (Correct answer)
- They are required by DBIA standards on all public projects
- They transfer design liability back to the owner
Correct answer: They can undermine design-build benefits by restricting the design-builder's innovation and efficiency
Excessive prescriptive specifications limit the design-builder's ability to optimize design and construction, reducing the cost and schedule advantages that define design-build delivery.
Question 3: What is the owner's role during the Concept Design phase in a progressive design-build contract?
- The owner has no role until a Guaranteed Maximum Price is established
- The owner collaborates with the design-builder to develop and validate project concepts before establishing the GMP (Correct answer)
- The owner must issue a Notice to Proceed before any concept work begins
- The owner delegates all concept decisions to the design-builder's lead architect
Correct answer: The owner collaborates with the design-builder to develop and validate project concepts before establishing the GMP
In progressive design-build, the owner and design-builder collaborate iteratively during concept development to align design direction before the GMP is locked.
Question 4: Which metric is most appropriate for an owner to use when evaluating design-build team performance on an ongoing basis?
- Number of design submittals issued per week
- Key performance indicators tied to safety, schedule, quality, and cost defined in the contract (Correct answer)
- Volume of change orders submitted by the design-builder
- Number of subcontractors used on the project
Correct answer: Key performance indicators tied to safety, schedule, quality, and cost defined in the contract
KPIs aligned to contract requirements give owners objective, measurable data to assess design-builder performance across safety, schedule, quality, and budget dimensions.
Question 5: What is the risk to an owner who makes frequent scope changes after the design-builder has established its Guaranteed Maximum Price?
- The design-builder may refuse to perform any additional work
- Scope changes after GMP can increase costs, extend schedule, and erode the owner's original budget certainty (Correct answer)
- The owner forfeits the right to conduct final inspections
- The design-builder is automatically entitled to terminate the contract
Correct answer: Scope changes after GMP can increase costs, extend schedule, and erode the owner's original budget certainty
Post-GMP scope changes require contract modifications that add cost and time, undermining the budget and schedule certainty that is a primary benefit of the design-build delivery method.
Question 6: In a design-build project, who is responsible for coordinating owner-furnished equipment integration into the design?
- The design-builder has no obligation to coordinate owner-furnished equipment
- The owner is solely responsible, with no design-builder involvement required
- The owner must provide equipment specifications early so the design-builder can incorporate them into the design (Correct answer)
- The general contractor selected by the design-builder handles all equipment coordination
Correct answer: The owner must provide equipment specifications early so the design-builder can incorporate them into the design
Timely provision of owner-furnished equipment specifications allows the design-builder to integrate them into the design, avoiding costly redesign or field modifications during construction.
Question 7: What is the DBIA-recommended approach when an owner's stakeholder group cannot reach consensus on project requirements?
- Proceed with the RFP using ambiguous requirements to allow design-builder flexibility
- Delay procurement until the owner resolves internal alignment on project goals and priorities (Correct answer)
- Allow the design-builder to determine the requirements after award
- Issue the RFP with multiple conflicting options for the design-builder to choose from
Correct answer: Delay procurement until the owner resolves internal alignment on project goals and priorities
DBIA recommends resolving internal owner alignment before issuing an RFP because unresolved stakeholder conflicts lead to scope changes, disputes, and project delays after award.
DBIA Owner Engagement 3
When should an owner engage its legal counsel during the design-build procurement process?