DBIA Progressive Design-Build Process 5 — Questions and Answers
Question 1: What does 'target value design' mean in the context of Progressive Design-Build?
- A process where design decisions are driven by cost targets established with the owner, aligning design with budget throughout (Correct answer)
- A method for setting a maximum contract value before any design begins
- A post-construction value engineering review to reduce project costs
- A tool for ranking design alternatives by aesthetic value only
Correct answer: A process where design decisions are driven by cost targets established with the owner, aligning design with budget throughout
Target value design integrates cost targets into design decision-making throughout the process, ensuring design choices remain aligned with the owner's budget in PDB.
Question 2: Why is early involvement of the design-build team advantageous for schedule in a Progressive Design-Build project?
- It eliminates the need for any design review or permitting
- Preconstruction collaboration allows long-lead items to be identified and procurement started before design is complete (Correct answer)
- The design-build team can begin construction before the owner approves any design documents
- Early involvement automatically shortens the permitting timeline by law
Correct answer: Preconstruction collaboration allows long-lead items to be identified and procurement started before design is complete
In PDB, early team involvement allows identification and procurement of long-lead materials and equipment during design, compressing the overall project schedule.
Question 3: Which contract standard is most commonly referenced for Progressive Design-Build projects in the United States?
- AIA A101 Stipulated Sum Agreement
- DBIA Document No. 540 Progressive Design-Build Contract (Correct answer)
- ConsensusDocs 410 Standard Design-Build Agreement (Lump Sum)
- FAR Part 36 Government Construction Contracts
Correct answer: DBIA Document No. 540 Progressive Design-Build Contract
DBIA Document No. 540 is the standard contract document specifically developed for Progressive Design-Build projects in the US.
Question 4: How does Progressive Design-Build address the challenge of scope creep during design development?
- By prohibiting any changes to the project program after the design-build team is selected
- Through ongoing cost transparency and owner-team dialogue that flags scope additions and their cost impact in real time (Correct answer)
- By transferring all scope change risk to the design-build team at contract signing
- Scope creep is not a relevant concern in Progressive Design-Build
Correct answer: Through ongoing cost transparency and owner-team dialogue that flags scope additions and their cost impact in real time
PDB's open-book, collaborative structure surfaces scope additions and their cost impact immediately, allowing the owner to make informed decisions during design.
Question 5: In a public-sector Progressive Design-Build project, what procurement law consideration is MOST critical to address?
- Ensuring all subcontractors are union-affiliated
- Confirming that applicable statutes authorize qualifications-based selection without a fixed-price bid (Correct answer)
- Requiring the design-build team to use only locally sourced materials
- Mandating that the owner's architect of record remains the design lead throughout
Correct answer: Confirming that applicable statutes authorize qualifications-based selection without a fixed-price bid
Public owners must confirm their jurisdiction's laws permit qualifications-based team selection without requiring a fixed-price bid at procurement, which is essential to PDB.
Question 6: What is the significance of the 'concept of sufficient design' in establishing the GMP in Progressive Design-Build?
- It refers to the minimum design quality acceptable for occupancy permit issuance
- It means the design has reached a level of completeness that supports a reliable, defensible cost estimate for GMP agreement (Correct answer)
- Sufficient design indicates all construction documents are 100% complete and permitted
- It is a legal standard for determining when the design-build team's liability begins
Correct answer: It means the design has reached a level of completeness that supports a reliable, defensible cost estimate for GMP agreement
Sufficient design means enough design detail exists to allow the team and owner to agree on a reliable GMP, even if full construction documents are not yet complete.
Question 7: Which best describes the owner's financial exposure if a Progressive Design-Build project is terminated after the preconstruction phase but before a GMP is executed?
- The owner owes nothing; all preconstruction costs are borne by the design-build team at-risk
- The owner is liable for the agreed preconstruction fee and reimbursable costs incurred up to termination (Correct answer)
- The owner must pay the full estimated construction cost as a termination penalty
- Financial exposure depends on which party initiated the design-build team's formation
Correct answer: The owner is liable for the agreed preconstruction fee and reimbursable costs incurred up to termination
Upon termination before GMP, the owner typically owes the negotiated preconstruction fee and any reimbursable costs incurred, but not future construction costs.
DBIA Progressive Design-Build Process 5
What does 'target value design' mean in the context of Progressive Design-Build?