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Media Advisory
For Immediate Release:
7/3/2012 10:00 AM
Richard Thomas
Vice President, Legislative Affairs
rthomas@dbia.org
202-682-0110
Transportation Reauthorization Bill Highlights Value of Design-Build

Design-Builders Will Benefit from Several Aspects of the Transportation Reauthorization Bill

 
The new two-year, $105 billion surface transportation reauthorization, Moving Ahead for Progress in the 21st Century (MAP-21), contains key provisions that should further boost the use of design-build project delivery by state departments of transportation (DOTs). Rex Huffman, DBIA, Chair of the Design-Build Institute of America’s (DBIA) Transportation Committee, heralded the legislation, saying, “The number of transportation projects delivered through design-build project delivery continues to increase as more and more states enact legislation enabling innovative project delivery rules and procedures. Now, MAP-21 will help maintain the rise in innovative project delivery through increased Federal sharing for projects utilizing design-build delivery, incentive payments for early completions and expanded support for P3s.”
 
In addition to authorizing the funding of surface transportation through FY 2014 at inflation-adjusted current levels of spending, MAP-21 singled out design-build as an innovative contracting method, making design-build projects eligible for increased federal dollars. At the discretion of the Secretary of Transportation, design-build projects may receive federal share payable up to 100 percent. The law also promotes the use of contract incentive payments for early completion of projects, as long as incentives are accounted for in the financial plan of the project.
 
“Each of these provisions is supported by the Design-Build Institute of America,” Huffman went on to say. “DBIA applauds the efforts by the House and Senate to include these most important innovative project delivery provisions in the Transportation Reauthorization Bill.”
 
Another sign of the growing acceptance of design-build: Performance-based contracts, like design-build, under which a contractor is paid to assume a certain risk allocation and payment is generally made on a lump-sum basis, will no longer require unit price payment for positive protection devices.
The most important provision related to design-build and P3s is expansion of the Transportation Infrastructure Finance and Innovation Act (TIFIA) program. Funding for the program was increased to $1 billion and the types of projects eligible for the program are expanded. In addition, the federal share percentage is increased from 33 percent to 49 percent. This will increases states’ ability to engage in public-private partnerships.
 
“Both practitioners and procurement officials working in the transportation sector will welcome passage of the reauthorization bill and the provisions related to design-build and public private partnerships,” said Lisa Washington, CAE, DBIA’s executive director. “MAP-21 addresses some of the key concerns highlighted last April at the 2012 Design-Build in Transportation Conference. Fortunately, DBIA is already developing education and coursework specifically for owners working in the infrastructure sector. We look forward to helping state DOTs learn and implement the best practices that will enhance design-build project delivery under MAP-21.”
 
Established in 1993, the Design-Build Institute of America (DBIA) is the only organization that defines, teaches, and promotes best practices in design-build project delivery. Design-build is an integrated approach that delivers design and construction services under one contract with a single point of responsibility. Owners select design-build to achieve best value while meeting schedule, cost and quality goals. Learn more about design-build and DBIA’s certification and other programs at www.DBIA.org.