Progressive Design-Build (PDB): The Right Solution?
Learning Objectives:
- Identify the challenges and concerns with conventional Design-Build and how PDB may address them.
- Assess the challenges and concerns in the implementation of PDB.
- Explain how PDB improves the availability and capacity of surety and project-specific professional liability insurance on infrastructure projects.
- Determine if PDB presents potential benefits on private projects and vertical construction, or if its utilization is limited primarily to heavy civil, horizontal projects.
Credits:
The traditional Design-Build project delivery method gave rise to significant problems on large projects – particularly heavy civil/infrastructure projects – where the design-builder was required to provide a GMP (Guaranteed Maximum Price) prior to the construction documents being past 30% completion. On many of these projects, that GMP was provided prior to a clearly defined scope or objectives being developed.
Predictably, many of those GMPs ended up being dramatically exceeded, with the design-builder often claiming that the cost overruns were attributable to negligent design. Eventually, the situation became chronic, and the impact of claims against design professionals caused the Project-Specific Professional Liability market to dramatically harden and shrink. The Surety market and bonding capacity was also impacted.
Progressive Design-Build (PDB) provides a much more collaborative delivery method involving the owner, design-builder and the design team itself working together in phases to come to agreement on a final budget, only after the construction documents are at or beyond 60% and the scope and objectives are better defined.
Photo courtesy of Getty Images (Licensed)
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David J. Hatem, is a nationally recognized attorney whose practice specializes in representing engineers and architects and advising professional liability insurance underwriters on project-specific insurance matters. David teaches Legal Aspects of Civil Engineering at Northeastern University Graduate School of Engineering and has continuously served as counsel for the American Council of Engineering Companies of Massachusetts (ACEC/MA) since 1988. He has authored and edited numerous articles and publications in his field. Most recently, he was a member of the writing committee for Geotechnical Baseline Reports Suggested Guidelines, ASCE Manuals and Reports on Engineering Practice No. 154 (R. Essex, 2022); and served as a legal reviewer/resource for Geotechnical Baseline Reports: A Guide to Good Practice (CIRIA C807, 2023). In Canada, David is a member of the Tunnelling Association of Canada and presented a paper entitled “Should Geotechnical Baseline Reports be the Universal and Exclusive Contractual Basis for Subsurface Conditions” at the October 2021 TAC Conference, as well as “Early Contractor Involvement: Rethinking and Recalibrating Delivery Methods for Subsurface Projects” at TAC’s September 2023 Conference. |
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Mike Johnson is the SVP of Infrastructure Markets and Strategy at Kiewit. Focused on integrated delivery, he brings more than 30 years of executive management experience in the industry to help lead this fast-growing, dynamic part of Kiewit’s business. Mike is Infrastructure’s business line manager where he works closely with clients, construction partners, and 3rd party engineering companies to secure new infrastructure-focused opportunities across North America. Before joining Kiewit in June 2019, Mike served as Vice Chairman and Chief Development Officer at Parsons Corporation, where he was responsible for implementing a global client development program. Prior to that, he was the President of Parsons Infrastructure. |
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Carl Munkel Senior Risk Advisor with Gresham Smith, and multiple prior positions since 1990, a full-service architecture/engineering firm with approximately 1200 employees in 26 offices primarily in the Southeast and Midwest. Key member of many fast-track project teams in the contractor, A/E and program management roles. Project experience includes public and private clients in the commercial, municipal, industrial and aviation markets. Current responsibilities include advising on the firm’s risk management processes, professional services agreements, claims management of legal issues working with out-of-house counsel, emphasis on construction problem resolution, in-house professional liability training programs. Former GS Board of Directors and Governance Committee Chair. Industry group memberships: ACEC Risk Management Committee Chair; ACEC Colorado; former Board member of Design Professionals Risk Control Group (DPRCG); AIA Large Firm Roundtable - Legal Committee; Bradley University Civil Engineering and Construction Advisory Board Member. |
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Donna Hunt, AIA, J.D., Over the past 35+ years, Donna has utilized her experience as a registered Architect and licensed Attorney working in the Professional Liability Insurance Industry, providing claims, underwriting and risk management services to architects, engineers and design-build insureds. Prior to joining Risk Strategies in 2024 as a Senior Professional Liability Specialist, Donna prepared policies and provided Risk Management Services for a new Designers and Contractors Professional Liability program and held various roles within an Architects & Engineers professional liability team ranging from Manager of the A&E Claims Group to Director of Professional Risk Management Services. Prior to Donna’s insurance roles, she actively practiced as an attorney representing contractors, subcontractors, architects and engineers for several years. Before becoming an attorney, Donna practiced as an architect in New York and Boston. |
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