SELECTION OF A DESIGN-BUILD COMPANY

Direct Selection

The design-builder is selected directly by the owner on the basis of factors as reputation, technical and managerial qualifications, past performance, and prior association. Direct selection is most commonly utilised by private owners.

Negotiated Selection

A number of design-builders are pre qualified or interviewed, with selection based upon the same criteria noted in direct selection plus additional factors such as preliminary design solutions, fees to be charged, recent comparable costs, personnel to be assigned to the project, and scheduling commitments. (The Ministry of Education utilises this selection method for new school projects)

Cost/Design Competitions

Expressions of interest are called for requesting design-builders to tender, with selection based upon the same criteria noted in direct selection. Selected design-builders are then requested to submit preliminary design concept, specifications and price based on the owner’s wish list. The owner reviews each proposal, price, and then makes selection based upon previously stated selection criteria.

Cost Competitions

This method of evaluation most closely resembles the design-bid-build process. Typically, specific design concepts are issued as a part of criteria package. The selected firm’s role in design is more that of a detailer than conceptualiser. Frequently, proposals are solicited only from pre-qualified design-builders. The proposals are evaluated, deemed to meet the base criteria, and ward is made to the low bidder. This process eliminates two of the most advantageous features of design-build competitions; multiple design solutions and innovations in material/systems.

Ahead Buildings recommends either the Negotiated or Cost/Design Competition method of selection. As both methods reduces the consultancy costs at the initial tendering stage which results in reducing the monetary risk carried by the BOT if the project /concept plans are beyond the budget.

The Direct selection process does not allow for any contestability, which is required when spending public money.

The Cost Competition has the following disadvantages:

• The BOT carries the monetary risk as the Concept plans maybe beyond their budgetary capability
• Additional cost to employ an architect to formulate the concept plans and specification details.
• That the specification details are different to the standard specification details of the design / build contractor, therefore costly and unnecessary duplication.
• The school is required at times to employ a quantity surveyor to estimate the cost of the concept plans, before tendering. This also adds additional consultancy fees.

Design and Build tendering process for schools

This process endeavours to follow the Property Management Handbook guidelines issued by the Ministry of Education for Single line of accountability (design build tender). To ensure that there is Contestability and Transparency in the procurement process.

It also is modelled on the Ministry’s design build tender process recently used in the Relocation of the Wanaka Primary school project.

1. Register on GETS for a Project auditor to facilitate and advise the BOT on the proposed design / build tender. (MOE requirement)

2. Discuss and evaluate the alternative approaches listed above in selecting a design / build tender process before submitting the tender on GETS

3. Register on GETS for a design-build tender requesting Registration of Interest for the proposed project. Providing a brief outlining of the proposed project. (MOE requirement) Eg Multi Purpose facility required for school. Meeting room/stage, foyer and kitchen included with a hall size of approximately 320m2. Indicative budget of approximately $......

4. Select 3-4 design-build company’s on the basis of reputation, technical and managerial qualifications, past performance, and prior association.

5. Request from each selected design-build company to submit a detailed proposal that matches the project brief. Proposal may include · indicative construction rates; · description of materials used; · list of personal and their credentials; · list of proposed suppliers and subcontractors; · specifications

6. Evaluate each proposal based on established criteria, and award the project to the most suitable design-build company.

Single line of accountability

   click to view a diagramme

Comment – This is a ‘design and build’ arrangement where project management and contracting services are offered as a package. All the risk is with the project manager, and the Board has only one party to pursue in a dispute. The independent project auditor is an advisor to the Board through the project control group. This person has skills and qualifications similar to the project manager’s or a quantity surveyor’s.

They are primarily responsible for:

• developing all procurement documentation
• liaising with contractors and consultants
• cost control
• performance monitoring
• contract management
• monitoring the calling of tenders
• ensuring all approvals and consents are obtained
• advising the Board on technical or contractual aspects of the project
• commenting on the adequacy of insurance taken by consultants and contractors for the project
• construction quality control
• monitoring timelines and providing an opinion on claims for extensions of time
• adjudicating on any claims for scope variations
• monitoring the rectification of defects
• organising handover
• reporting at the end of the project
• advising the Ministry on improvements to the procurement model.