1. Alternative Project Delivery: Lessons Learned and Yet to be Learned
Shivaji Deshmukh, executive Manager (Engr & Ops), West Basin MWD
Tim Busch, GM, Woodland Davis CWA
Neil Callahan, Director, Louis Berger US
Bob Siemak, Moderator, AGM, United Water CD

2. What is Alternative Project Delivery and Why Use it?
Delivering a project other than by the traditional project delivery method (i.e. design-bid-build)
ISSUE
TRADITIONAL
ALTERNATIVE
Control/Risk Sharing
Owner
DB/O/F entity
Time
Slower (Series)
Faster (Parallel)
Cost
Price (Low Bid)
Best Value
Complexity
Std Approach
Innovation

3. APD is all about control of various phase of a project: life cycle approach
Plan
Finance
Design
Build
Operate

4. Owner does it all Rare; Limited to large agencies MWD of SC LADWP
Plan
Finance
Design
Build
Operate
OWNER
Rare; Limited to large agencies
MWD of SC
LADWP
Projects are usually repair and replacement
Pipelines are most common facilities

5. Traditional Delivery (DBB)
Plan
Finance
Design
Build
Operate
OWNER
Design
Build
PARTNER
Owner has control but also most of the risk
Low Bidder

6. DBB structure Design/Builder finger pointing More detailed design
Owner
Designer
Builder
Design/Builder finger pointing
More detailed design
Longer time (series activities)
Cost established late

7. DBB variation – Construction Management at Risk (CMAR)
Owner
Designer
Builder
( or CMAR)
Quals-based Selection
More collaboration
Cost (GMP)at 60%

8. West Basin MWD Design Build (DB) Plan Finance Design Build Operate
OWNER
West Basin MWD
Design-Build Entity
PARTNER

9. BD Structure Who leads team Contractor Integrated Firm JV
Owner
Who leads team
Contractor
Integrated Firm JV
Performance vs. Prescriptive
Lump Sum or Progressive
DB Entity
Designer
Builder

10. Design Build Operate (DBO)
Plan
Finance
Design
Build
Operate
OWNER
Woodland Davis CWA
Design-Build-Operate Entity
PARTNER

11. DBO Structure Term is key 5 to 15 years Operator is guarantor
Limited No. of Ops firms
Owner
DBO Entity
Designer
Builder
Operator

12. DBO Structure Term is usually short (1-3 yrs)
Start-up, commissioning and validation
More competitive landscape
Like DB
Owner
DBO Entity
Designer
Builder
Operator

13. Design Build Finance Operate (DBFO)
Plan
Finance
Design
Build
Operate
OWNER
Carlsbad Ocean Desalination
DBFO Entity
PARTNER

14. DBOF Structure DBFO Entity is financially sophisticated Debt vs Equity
Investment Grade Debt
Owner
DBFO Entity
Financing Partner
Designer
Builder
Operator