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KFUPM, Department of Construction Engineering and Management Summary of AN IMPLEMENTATION MODEL FOR DESIGN-BUILD (D-B) PROJECT DELIVERY SYSTEM BY : MOHAMMAD.

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Presentation on theme: "KFUPM, Department of Construction Engineering and Management Summary of AN IMPLEMENTATION MODEL FOR DESIGN-BUILD (D-B) PROJECT DELIVERY SYSTEM BY : MOHAMMAD."— Presentation transcript:

1 KFUPM, Department of Construction Engineering and Management Summary of AN IMPLEMENTATION MODEL FOR DESIGN-BUILD (D-B) PROJECT DELIVERY SYSTEM BY : MOHAMMAD RIAD JAWEED January 2004 Summarized by : KHALID L. ALSHAIR

2 INTRODUCTION The Design-Build project delivery method has been enjoying increasing acceptance in recent time. In a questionnaire survey carried out in Saudi Arabia, public clients selected Design-Built as the most appropriate procurement for their objects. The Design-Build project delivery method has been enjoying increasing acceptance in recent time. In a questionnaire survey carried out in Saudi Arabia, public clients selected Design-Built as the most appropriate procurement for their objects. The basic feature of the design build method is that it entails single responsibility for the entire object. Actually, it is an expansion of the Single-Contract System to include design as well as construction. The basic feature of the design build method is that it entails single responsibility for the entire object. Actually, it is an expansion of the Single-Contract System to include design as well as construction.

3 STATEMENT OF THE PROBLEM The engineering and construction industry faces formidable challenges. It suffers from low profit margin, persistent project overruns in schedule and budget, and it is plagued with claim and counter claims. Construction industry performance can be improved by use of an appropriate project delivery method.

4 SIGNIFICANCE OF THE STUDY The study aims at developing a model for Design-Build project delivery method implementation. It includes all the phases for implementing Design-Built from project identification to contract administration.

5 OBJECTIVES The objectives of the research are : The objectives of the research are : 1- To get a greater understanding of the Design- Build method. 2- To identify positive factors favoring the use of the Design-Build method. 3- To develop a Design-Build model.

6 LITERATURE ANALYSIS 1- Project Delivery Method 1- Project Delivery Method The term “ project delivery method “ means the approach used to organize the project so as to manage the entire designing and building process. The term “ project delivery method “ means the approach used to organize the project so as to manage the entire designing and building process. Following requirements fulfill the complete definition of project delivery : Following requirements fulfill the complete definition of project delivery : * For a project, its scope and requirements should be clearly stated. * For a project, its scope and requirements should be clearly stated. * Method of procedure, responsibilities and obligations should be * Method of procedure, responsibilities and obligations should be established. established. * Forming and documentation of agreement. * Forming and documentation of agreement. * Actual design and construction. * Actual design and construction. * Handing over the project to the owner. * Handing over the project to the owner.

7 2- Evolution of Project Delivery Method Obtaining a project within a predefined time, cost and quality is the ultimate goal of the clients. Also the need for more need of financial planning and fewer amount of contracts has increased the possibility of looking out for new construction procurement methods. These factors together with the need for a greater degree of financial planning and a lesser amount of contract administration have brought pressure to explore new option for construction procurement. Obtaining a project within a predefined time, cost and quality is the ultimate goal of the clients. Also the need for more need of financial planning and fewer amount of contracts has increased the possibility of looking out for new construction procurement methods. These factors together with the need for a greater degree of financial planning and a lesser amount of contract administration have brought pressure to explore new option for construction procurement.

8 3- Risk Assessment in Project Delivery 3- Risk Assessment in Project Delivery Method Selection : Method Selection : * Completion Risk. * Completion Risk. * Construction Cost Risk. * Construction Cost Risk. * Environmental Relation Risk. * Environmental Relation Risk. * Industrial Relation Risk. * Industrial Relation Risk. * Technological Risk. * Technological Risk. * Market Risk. * Market Risk. * Political Risk. * Political Risk.

9 The positive factors and problems with Design – Build Method The Positive Factors favoring the use of Design-Build : The Positive Factors favoring the use of Design-Build : Single point of Responsibility. Single point of Responsibility. All parties treated as professionals. All parties treated as professionals. Time Savings. Time Savings. Early knowledge of firm costs. Early knowledge of firm costs. Higher Quality. Higher Quality. Cost-effectiveness of Design-Build. Cost-effectiveness of Design-Build. Encourages Innovation. Encourages Innovation. Lower claims and litigation. Lower claims and litigation. Reduced Administration. Reduced Administration.

10 Problems with Design-Build Method * Unfamiliarity with process. * Unfamiliarity with process. * Communicating owner ’ s needs in * Communicating owner ’ s needs in Design-Build is different. Design-Build is different. * Barriers in procurement and licensing * Barriers in procurement and licensing laws. laws.

11 Development of Design Build Model The approach for model development is shown in figure. The approach for model development is shown in figure. DESIGN-BUILD MODEL DESIGN-BUILD MODEL PHASE 1 Identify facilities for DB PHASE 2 Program Definition PHASE 3 Prequalification PHASE 4 Proposal Evaluation Project characteristics Applicable Market sectors Owner Requirements Previously constructed /Design facilities Needs Legal Limitation Financial limitation Objectives Costs Market Organization and management plan Financial Capacity Qualification of key personnel Design-Build experience Weighted Criteria Adjusted low bid Equivalent design /low bid Meets Criteria/low bid

12 CONCLUSION The construction industry performs unsatisfactory and suffers from low profit margin and persistent project overruns in schedule and budget. The construction industry performs unsatisfactory and suffers from low profit margin and persistent project overruns in schedule and budget. The increased understanding of Design-Build project delivery will help in successful implementation of this fast growing project delivery method. The increased understanding of Design-Build project delivery will help in successful implementation of this fast growing project delivery method. The use of an appropriate project delivery method is one of the key area for the improvement of the industry. The use of an appropriate project delivery method is one of the key area for the improvement of the industry.

13 Recommendation The Design-Build method is gaining popularity as an attractive and desirable project delivery method for all types of projects. The Design-Build method is gaining popularity as an attractive and desirable project delivery method for all types of projects. Benefits to gained are a single source of responsibility, reduced cost, reduced time, innovation, established cost, reduced claims, improved quality, improved risk management and improved productivity. Benefits to gained are a single source of responsibility, reduced cost, reduced time, innovation, established cost, reduced claims, improved quality, improved risk management and improved productivity.

14 THANK YOU


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