DBIA Progressive Design-Build Process Questions and Answers 2 — Questions and Answers
Question 1: What distinguishes progressive design-build (PDB) from traditional design-build?
- PDB is always cheaper than traditional design-build
- In PDB the design-builder is selected primarily on qualifications before design begins, then collaboratively develops the design and negotiates a price with the owner (Correct answer)
- PDB does not require licensed design professionals
- PDB skips the construction phase entirely
Correct answer: In PDB the design-builder is selected primarily on qualifications before design begins, then collaboratively develops the design and negotiates a price with the owner
PDB selects the design-builder early based on qualifications, then progressively develops design and price collaboratively.
Traditional design-build requires proposers to submit a price based on preliminary design concepts. PDB separates selection from pricing. The design-builder is selected on qualifications, then collaboratively develops design and cost through open-book pricing until parties agree on a GMP.
Question 2: What is 'open-book pricing' in progressive design-build?
- Publishing the final project cost publicly
- A transparent cost estimation process where the design-builder shares all cost details with the owner during price negotiation (Correct answer)
- Allowing the public to bid on project components
- A pricing method where the design-builder sets the price unilaterally
Correct answer: A transparent cost estimation process where the design-builder shares all cost details with the owner during price negotiation
Open-book pricing provides full transparency into costs including subcontractor quotes, labor rates, and contingency.
The design-builder shares detailed cost breakdowns with the owner. This transparency enables productive negotiation of a fair GMP and allows the team to collaboratively identify value engineering opportunities when costs trend above budget.
Question 3: What happens if the owner and design-builder cannot agree on a GMP during the PDB validation phase?
- The project is automatically cancelled
- The owner can terminate the design-builder's contract, compensate them for work performed, and use the developed design to select a new design-builder (Correct answer)
- The design-builder can set the price unilaterally
- The project must convert to design-bid-build
Correct answer: The owner can terminate the design-builder's contract, compensate them for work performed, and use the developed design to select a new design-builder
PDB contracts include an 'off-ramp' allowing the owner to terminate if price negotiations fail, paying for services rendered.
The off-ramp provision allows orderly termination. The owner compensates the design-builder for Phase 1 services and retains the right to use the design documents. The owner can then solicit proposals from other design-builders or convert to a different delivery method.
Question 4: Why is progressive design-build particularly suited for water and wastewater infrastructure projects?
- Water projects are always simple enough for any delivery method
- These projects involve complex existing conditions, regulatory requirements, and operational constraints that benefit from early design-builder involvement (Correct answer)
- Federal law requires PDB for all water projects
- Water projects do not require environmental permits
Correct answer: These projects involve complex existing conditions, regulatory requirements, and operational constraints that benefit from early design-builder involvement
Water/wastewater projects frequently involve complex existing infrastructure, strict regulations, and operational constraints that must be maintained during construction.
Water and wastewater projects have characteristics well-suited to PDB: existing facilities that must remain operational, difficult-to-predict subsurface conditions, complex regulatory frameworks, process engineering requiring specialized expertise, and long equipment lead times.
Question 5: What role does the 'validation period' serve in progressive design-build?
- It validates the owner's financing
- It is the collaborative phase where the design-builder investigates conditions, develops design, refines costs, and both parties validate feasibility within budget and schedule (Correct answer)
- It is a waiting period required by building codes
- It only validates insurance coverage
Correct answer: It is the collaborative phase where the design-builder investigates conditions, develops design, refines costs, and both parties validate feasibility within budget and schedule
The validation period allows both parties to develop design, investigate conditions, refine estimates, and validate that the scope can be achieved within constraints.
Lasting 3-12 months, the validation phase involves detailed site investigations, design development, progressive cost estimates, risk identification, subcontractor engagement, and schedule development. It culminates in the establishment of a mutually agreed GMP.
Question 6: How does progressive design-build handle early construction activities before the GMP is finalized?
- No construction can begin until the GMP is set
- The contract can authorize limited early work packages at negotiated prices while design and GMP negotiation continue (Correct answer)
- The design-builder performs construction at their own risk
- Early construction is prohibited in progressive design-build
Correct answer: The contract can authorize limited early work packages at negotiated prices while design and GMP negotiation continue
PDB contracts often include provisions for early work packages that proceed at negotiated prices while the full GMP is developed.
Common early work includes demolition, site preparation, utility relocation, and long-lead equipment procurement. Each early work package has its own negotiated scope, price, and schedule, later incorporated into the overall GMP.
DBIA Progressive Design-Build Process Questions and Answers 2
What distinguishes progressive design-build (PDB) from traditional design-build?