Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods, Volume 1: Design–Build Delivery (2020)

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    24    Research for this Guidebook found that agencies view 9 Continuity of key team members as a tool for project success rather than just a process. Continuity means that the agency and design-builder staff that worked on the project during procurement and alignment continue to work on the project during design. These staff members help ensure continuity so that issues that have been decided previously are not discussed again, and so the project understanding that was built during alignment allows the design to proceed smoothly. 5 Co-location of key personnel involves physically locating key team members from the agency and the D-B entity in a single location. Design can require significant interface between many disciplines, and having everyone physically nearby helps facilitate timely communication. As design issues are being discussed, decisions need to be made. 21 Delegation of authority is a tool that puts decision-making authority into the hands of the agency’s engineer in charge of the project. This brings confidence to the team that decisions will be made in a timely manner by people knowledgeable about the project. A number of tools serve to bring relevant team members together during the design process. A 14 Discipline task force brings together team members from both the agency and D-B entity to advance the design related to a specific discipline. 17 In-Progress design workshops bring together team members from different disciplines so multiple perspectives and factors can be taken into account during design. Whereas in-progress design workshops are meant to develop and discuss design options, 18 Over-the-shoulder reviews focus on obtaining review comments on a specific design option without directing design or formally approving a solution. To supplement agency labor and expertise, some agencies use 15 Independent party design reviews to help keep the design process moving forward in a timely manner. Another tool to streamline the design process is 12 Plan standards that focus on plans that contain content that the agency will need for as-built drawings rather than contract drawings required for bidding a project. One benefit of D-B is contractor input regarding constructability during design. These constructability reviews are a D-B task, so no agency tool is labeled constructability review. However, agencies do implement tools that help facilitate constructability input. For example, tools like 18 Over-the-shoulder reviews, 14 Discipline task force meetings, and 17 In-Progress design workshops help to ensure constructability input is occurring on projects during design development. Because D-B includes contractor input into design, D-B projects do not implement formal value engineering. Therefore, FHWA does not require value engineering on federally funded D-B projects (Federal Register VE 2014). Innovative ideas can be generated when designers and builders work together in the design phase. A 16 Cost savings matrix is a tool that helps the team document innovative ideas, and track their possible application on the project until a decision is made to use or not use the ideas. Continuity of team members should be viewed as a tool for success rather than just a goal or process. Schedule acceleration is perhaps the most common D-B project goal, so agencies must support an accelerated design process through team-oriented tools.

    25    Design phase tools are initiated in either the alignment or design phases. Tools for the design phase can help team members understand their roles during the design phase and encourage communication and collaboration. Some of the tools in this phase help move the design process forward while minimizing the need for iteration and rework. Tools to integrate feedback during design can facilitate project progress and provide a form of quality control. Tools that clarify how to handle deviations from plan standards and agency design standards can help keep the project team focused on project goals and contract requirements. Establishing patterns of strong communication and collaboration during design can support a strong construction phase. Table 5.1 lists the Design Phase tools. It also includes recommendations for tool use with different levels of project size and complexity. The tool descriptions in Appendix A elaborate on the tools and their applicability by project complexity and size.

    26    Table 5.1 Summary of D-B design phase tools Contract administration phase Project complexity Project size Tools for D-B contract administration A lig nm en t D es ig n Co ns tru ct io n Cl os eo ut N on -c om pl ex M od er at el y co m pl ex C om pl ex ≤ $1 0 M $1 0 M - $5 0 M > $5 0M Phase 2: Administer Design of D-B Project 5 Co-location of key personnel         6 Regulatory agency partnering         7 External stakeholder coordination plan         8 D-B specific partnering           9 Continuity of team members           10 FHWA involvement overview           11 Permit commitment database           12 Plan standards        13 Deviations from agency standards        14 Discipline task force        15 Independent party design review        16 Cost savings matrix        17 In-Progress design workshops        18 Over-the-shoulder reviews        19 Scope validation period         20 Public announcements          21 Delegation of authority           = Recommended;  = Consider Case-by-Case;  = Not Recommended  

    27    5.4 Summary The design phase of a project is a joint effort between the agency and the design-builder. This chapter highlights tools that agencies can use to administer design. Approximately half of the tools for this chapter were initiated in the alignment phase. Therefore, team members should already be familiar with using these tools. The agency will introduce the team to any new tools that begin in the design phase. The primary goal of these tools is to help project participants communicate, document, plan, and execute design efficiently. This list of tools may inspire agencies to develop new tools or adapt some of these tools based on the needs of a particular project or the organizational structure of their agency. Appendix A provides additional information on tools that were identified for this Guidebook by leading agencies.  

    28    Chapter 6. Construction Phase Administration 6.1 Introduction The purpose of this chapter is to discuss agency administration of the D-B construction phase and present tools that contribute to successful construction administration. This chapter addresses:  D-B Construction Process Overview.  Construction Phase Contract Administration Tools. Due to their participation in the design phase, the D-B firm has in-depth knowledge of the design and the design intent. The agency’s construction phase administration ensures that the team is making adequate construction progress and achieving all quality requirements. Other tasks include dispute resolution and the measurement and payment for work. D-B projects are often fast- tracked, so the agency should staff accordingly, with adequate assignment of internal or consultant staff, to participate in contract administration activities during construction. For example, with the changing roles and responsibilities for D-B projects, the agency should ensure that agency staff understand when they are performing quality acceptance versus quality verification. 6.2 D-B Construction Process Overview D-B construction administration shares many similarities with traditional D-B-B construction administration. Ultimately, the same technical requirements are met using the same basic materials in both delivery methods. Key differences revolve around risk allocation and the shifting of roles and responsibilities. Specifically, the agency can choose to shift some traditional QA/QC roles to the D-B firm. On small, non-complex D-B projects, the process can closely resemble D-B-B. On large, complex D- B projects where much of the design and construction risk has been assigned to the design-builder, the roles and responsibilities for control and inspection of work shift to the design-builder and the agency takes an assurance and compliance role. In almost all D-B projects, the method of payment changes from unit-price to lump sum with a schedule of values. Another primary difference in D-B construction administration revolves around the use of discrete work packages to facilitate faster construction. Administration of these work packages can be more demanding and resource intensive than D-B-B processes. Key activities for the construction phase include:  Manage Legal Relations  Manage Public Relations  Manage Materials o Sample and Verify Materials o Test Materials o Certify Materials

    29     Control and Inspect Work o Inspect Work for Conformance to Plans and Specifications o Review Completion of Punchlist Items o Document the Daily Work, Compliance, and Quality o Manage the RFI Process o Manage the Submittal Process o Monitor D-B QA/QC o Manage Non-Conformances o Review Non-Conformance Design Solutions  Execute Supplemental Agreements o Receive Change Orders o Estimate Cost and Time Adjustments o Negotiate Cost and Time Adjustments at Site Level o Review Change Orders o Execute Change Orders  Resolve Disputes  Measure Progress and Pay Contractor o Receive Contractor Invoices o Review Payment Invoices o Execute Payments  Acquire Project Completion Documentation  Ensure As-Builts are Being Developed by Design-Builder 6.3 Construction Phase Contract Administration Tools In this phase the agency facilitates construction progress. The D-B firm should have a thorough understanding of the project, from design through execution. A significant portion of innovative ideas should have been vetted by the agency via ATC during procurement and during the design phase. However, additional innovation can still originate from subcontractors and suppliers who propose on, and build, portions of work. A key goal of the construction phase is ensuring quality. The agency can encourage quality construction through using tools such as electronic management of quality data and quality-based incentives. The D-B entity has responsibility for both the design and construction; thus, design issues that arise during construction are the responsibility of the D- B firm. Some tools from previous phases can add value to construction. For example, 8 D-B specific partnering strengthens relationships and builds communication channels that can help the agency and D-B entity work through issues that arise during construction. 9 Continuity of team members carry forward project knowledge from the design phase to the construction phase. 11 Permit commitment database is a tool that records commitments the project team made during the design phase to help ensure that permit commitments are not forgotten or violated during construction. D-B projects frequently take advantage of more contractor involvement in QC.

    30    The tool 21 Delegation of authority facilitates timely decision-making so construction can proceed without unnecessary delay. Typically, the public is not familiar with the D-B process and potential benefits, so 20 Public announcements can help inform the public about the benefits D- B is bringing to this particular project. A number of tools specifically relate to promoting quality during construction. Many agencies are able to use their standard QA/QC processes on D-B projects, especially small non-complex D-B projects. However, a number of tools have been developed to take advantage of opportunities that D-B delivery offers. For example, a 24 Incentive/disincentive program for superior quality allows the agency and D-B entity to agree on construction tasks prone to rework and establish a quality incentive program to exceed quality requirements for these agreed upon areas. In addition to incentivizing quality, this tool helps reduce rework and can have a significant impact on project schedule. Incentives can also be established for other performance metrics, such as superior safety, access, or cost performance. The three tools (22, 23, 26) provide for more timely QC processes during construction without the loss of quality in the constructed project. Agencies can adjust their standard D-B-B quality program to the context of a specific project using the tool 23 Contractor involvement in establishing QC standards. Additionally, the tool 22 Contractor controlled QC testing puts the responsibility for quality control testing into the hands of the D-B entity (or a third party that the D-B contracts with) instead of the agency itself. This added responsibility can keep the D-B entity more alert to quality control requirements and test results so construction processes can adjust more quickly to quality needs. The tool 26 Dual construction engineering inspector roles adds quality control to the D-B entity’s responsibilities and allows the agency to perform quality control checks. These tools keep both the agency and the D-B alert to quality matters during construction. Construction projects generate a substantial amount of data and paperwork, especially relating to quality. The tool 25 Real-time electronic quality management information can be used for efficient quality data management and record tracking. 27 Witness and hold points is another quality tool that helps the team avoid construction errors or rework by bringing team members together at critical points to witness the work completed up until those points before continuing with the work. Meeting or exceeding construction quality is an important task for a D-B entity. Any of the aforementioned tools that address quality should be part of a broader quality program. Additional guidance on quality programs can be found in NCHRP Report 808 (Molenaar, Gransberg, and Sillars 2015). Throughout construction the D-B entity will be submitting invoices for completed work. Having a structured pay request process helps the agency receive the necessary information in the appropriate format for efficient reviews, and helps the D-B entity get paid promptly. The tool 28

    31    Payment checklist is used to identify which party is responsible for each task in the payment process. Some of the tools used by the agency in the construction phase are initiated in the alignment or design phases, while other tools are intended for the construction phase only. Many of these tools focus on achieving quality requirements. Table 6.1 summarizes the construction phase tools that can help the project team work collaboratively and efficiently. It also includes recommendations for tool use with different levels of project size and complexity. The tool descriptions in Appendix A elaborate on the tools and their applicability by project complexity and size.