Liability of Design-Builders for Design, Construction, and Acquisition Claims

Loulakis, Michael C.; Smith, N C; Brady, Donna; Rayl, Rick E; Gransberg, Douglas D.

doi:10.17226/22074

Cited by 6 publications

(4 citation statements)

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“…As the owner holds the design contract in CMGC, it is exposed to Spearin liability ( 15 ). However, depending on how much preliminary design was completed before selecting the design-builder in PDB, this liability is essentially minimized and can be eliminated if the design-builder is selected to complete the entire design effort ( 26 ).…”

Section: Pdb Compared To Cmgcmentioning

confidence: 99%

Critical Comparison of Progressive Design-Build and Construction Manager/General Contractor Project Delivery Methods

Gransberg¹,

Molenaar

2019

Transportation Research Record: Journal of the Transportation R

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Progressive design-build (PDB) is an emerging variation of alternative contracting methods (ACMs) in the highway construction industry. It is widely used in water/wastewater and airport projects, but it is new to federally-funded highway projects. A few state department of transportations (DOTs) have begun to experiment with the method, using their experience with qualification-based selection (QBS) and a subsequent negotiated construction price from construction manager/general contractor (CMGC) contracting. There has been little written that provides guidance to public highway agencies who are interested in implementing PDB. Therefore, the purpose of this paper is to first describe the mechanics of PDB project delivery to provide consistent foundation information from which DOTs can inform their decision as to when to use it. The paper also provides a comparative analysis of PDB with CMGC and finds that they are nearly identical with regard to format, differing only in whether the owner retains the design responsibility in CMGC or assigns it to the design-builder in PDB. It also finds that PDB is more appropriate than traditional design-build (DB) for projects in which the owner needs to engage the design-builder in the preliminary engineering and environmental permitting process.

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Section: Pdb Compared To Cmgcmentioning

confidence: 99%

Critical Comparison of Progressive Design-Build and Construction Manager/General Contractor Project Delivery Methods

Gransberg¹,

Molenaar

2019

Transportation Research Record: Journal of the Transportation R

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“…However, the fifthranked practice of offering stipends was reported by 26 DOTs and found in 21 DOT manuals. The practice was found to be effective in four research studies, thus making it both a superior practice and a benchmark (24)(25)(26)(27). After that, it becomes problematic to make an airtight case for the remaining set of effective practices to be classified as best practices.…”

Section: Results Of Analysismentioning

confidence: 99%

Framework for Objectively Determining Best Practices for Alternative Contracting Methods

Gransberg

Scheepbouwer

Puerto

2017

Transportation Research Record: Journal of the Transportation R

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Alternative contracting method (ACM) usage has grown to the point where the industry has sufficient experience to provide a definitive set of best practices both to promote consistency in the nation’s procurement system and to leverage the lessons learned by early ACM adopters. The barrier to achieving this goal is that there is no uniform agreement on the definition of what constitutes a best practice. Both an objective definition and a framework for identifying and analyzing ACM practices are proposed that have been found to be effective by peer-reviewed research to determine whether a given practice deserves to be termed as a best practice. The framework is based on a series of indexes that are used to rank candidate practices in order of their importance and their effectiveness. The 24 ACM practices evaluated were identified from six NCHRP Synthesis reports on ACM topics. It was found that only four of the 24 candidates met the objective criteria to be termed a best practice. These candidates were formalizing and institutionalizing agency ACM procedures, using two-step best-value award procedures, appointing an agency ACM champion, and offering stipends for unsuccessful competitors.

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“…This saves time and sends the message objectively, such an effective communication technique is a great advantage in any situation, especially for resolving a dispute or claim.IntroductionContractual allocation of geotechnical risk in a construction project has always been a challenge for owners. Many have major concerns over their liability for the accuracy of the information contained in procurement solicitations like design-bid-build (DBB) invitations for bids (IFB) or design-build (DB) requests for proposals (RFP)(Loulakis et al 2015). In US construction contract law, the Spearin Doctrine establishes the principle that the owner provides an express warranty that the construction documents are free from error furnishing proposers the right to rely on the information to develop their bid(Spearin 1918).…”

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confidence: 99%

“…Allowing contractor value engineering change proposals is a post-award version of contractor design involvement commonly used in DBB and DB projects(Smith 2012). However, from the owner's perspective, contractor design input via value engineering is only applicable after the prime contract is awarded, and while DB provides an opportunity for contractor design input during procurement, the majority of the contractor involvement occurs after award during actual design, leaving the owner liable for the accuracy of the geotechnical information furnished in the RFP(Loulakis et al 2015).This paper posits a collaborative solution to address the risk of differing geotechnical site conditions through ECI via the employment of alternative technical concepts (ATC) in the procurement process of projects delivered using all potential delivery methods. The Federal Highway Administration (FHWA) defines an ATC as "a request by a proposer to modify a contract requirement, specifically for that proposer's use in gaining competitive benefit during the bidding or proposal process…[and] must provide a solution that is equal to or better than the owner's base design requirements in the invitation for bid (IFB for DBB) or request for proposal (RFP for DB) document."…”

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confidence: 99%

Linear scheduling and procurement tools to manage geotechnical risk in design-build construction projects

Tapia¹

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The nature and unpredictability of geotechnical conditions on a construction project site is a major concern for designers and builders in almost every type of construction project. The risk of encountering conditions that differ from the information contained on the contract could potentially have very high impact on both the project's cost and schedule. This makes the parties want to protect themselves from the consequences of the risk. For example, some owners approach the issue by increasing the extent of pre-award studies included in the contract, others include less and incorporate risk-transferring clauses in the contract, while most contractors allocate this uncertainty in their price as a contingency. These conventional solutions to the problem often result in creating friction between the parties that can lead to legal disputes and additional costs to the project. This paper proposes an additional solution that integrates the efforts between the owner and the contractor to achieve a common goal of effectively mitigating the risk of differing geological site conditions by means of implementing contractual provisions for Alternative Technical Concepts (ATCs) in the procurement phase of the project.

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Liability of Design-Builders for Design, Construction, and Acquisition Claims

Cited by 6 publications

References 0 publications

Critical Comparison of Progressive Design-Build and Construction Manager/General Contractor Project Delivery Methods

Critical Comparison of Progressive Design-Build and Construction Manager/General Contractor Project Delivery Methods

Framework for Objectively Determining Best Practices for Alternative Contracting Methods

Linear scheduling and procurement tools to manage geotechnical risk in design-build construction projects

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