DBIA Owner Engagement 5 — Questions and Answers
Question 1: What is the significance of the owner defining 'best value' criteria before issuing a design-build RFP?
- It allows the owner to change evaluation criteria after proposals are received
- It ensures proposers understand how proposals will be scored and reduces protest risk (Correct answer)
- It requires the owner to select the lowest-cost proposer regardless of technical quality
- It eliminates the need for a technical proposal from design-build teams
Correct answer: It ensures proposers understand how proposals will be scored and reduces protest risk
Pre-defined best value criteria create a transparent evaluation framework, align proposals with owner priorities, and reduce the risk of procurement protests.
Question 2: How does an owner's failure to make timely decisions impact a design-build project?
- It has no impact because the design-builder can proceed independently
- It can delay the project schedule and entitle the design-builder to time extensions and additional compensation (Correct answer)
- It automatically transfers schedule risk to the owner's insurer
- It voids the design-builder's performance guarantees
Correct answer: It can delay the project schedule and entitle the design-builder to time extensions and additional compensation
Late owner decisions create schedule delays and, under most DBIA contracts, entitle the design-builder to seek equitable adjustments for time and cost impacts caused by owner-controlled delays.
Question 3: What is the owner's responsibility regarding environmental permits on a typical design-build project?
- The design-builder obtains all environmental permits as part of its fixed-price contract
- The owner typically obtains major environmental permits before project award, while the design-builder handles construction permits (Correct answer)
- The design-builder and owner share equal responsibility for all permits without distinction
- Environmental permits are the responsibility of the local jurisdiction and neither party
Correct answer: The owner typically obtains major environmental permits before project award, while the design-builder handles construction permits
Owners typically secure major environmental permits (NEPA, wetlands, etc.) pre-procurement to reduce RFP uncertainty, while design-builders obtain construction-phase permits.
Question 4: Why is it important for an owner to establish a project controls system that interfaces with the design-builder's reporting?
- To allow the owner to override the design-builder's schedule at any time
- To maintain independent visibility into cost and schedule status for informed decision-making throughout the project (Correct answer)
- To replace the design-builder's internal project management systems
- To satisfy insurance requirements for project completion bonds
Correct answer: To maintain independent visibility into cost and schedule status for informed decision-making throughout the project
An integrated project controls interface gives the owner objective cost and schedule data, enabling proactive decision-making rather than relying solely on the design-builder's reporting.
Question 5: What is the most appropriate owner action when a design-builder's preliminary design significantly exceeds the project budget?
- Immediately terminate the contract for default
- Engage collaboratively with the design-builder to identify scope reductions or value engineering solutions that align with the budget (Correct answer)
- Accept the budget overrun and fund the difference
- Issue a unilateral change order reducing the design-builder's fee
Correct answer: Engage collaboratively with the design-builder to identify scope reductions or value engineering solutions that align with the budget
DBIA's collaborative model calls for owner and design-builder to jointly solve budget challenges through scope adjustment or value engineering rather than adversarial responses.
Question 6: Which characteristic of an owner's organization most supports successful design-build project delivery?
- A large internal design staff that can independently verify every design calculation
- Decision-making authority vested in the owner's project representative to enable timely approvals (Correct answer)
- A procurement department that evaluates design-build proposals on price alone
- A policy requiring all changes to be reviewed by the full owner board before proceeding
Correct answer: Decision-making authority vested in the owner's project representative to enable timely approvals
Empowering the owner's project representative with decision-making authority enables timely responses to design-builder requests, maintaining project momentum and preventing owner-caused delays.
Question 7: How should an owner structure its commissioning requirements in a design-build RFP to optimize project outcomes?
- Omit commissioning requirements from the RFP and address them after construction is complete
- Include commissioning requirements in the OPR and RFP so the design-builder can integrate commissioning into design and construction planning (Correct answer)
- Hire a separate commissioning agent independently of the design-builder without informing them during procurement
- Require the design-builder to use the owner's in-house commissioning team regardless of design decisions
Correct answer: Include commissioning requirements in the OPR and RFP so the design-builder can integrate commissioning into design and construction planning
Including commissioning requirements in the RFP allows the design-builder to plan for testing and verification from project inception, reducing startup issues and ensuring systems meet OPR performance standards.
DBIA Owner Engagement 5
What is the significance of the owner defining 'best value' criteria before issuing a design-build RFP?