Indiana recently took a major step forward in utilizing the design-build project delivery method by passing Public Law 74. Recently signed by Governor Mitch Daniels, the law takes effect July 1, 2005. Passage will now allow localities, public education, and state agencies (except transportation) to utilize the design-build project delivery method. This broad based law is especially significant considering that Indiana previously was one of only seven states without any design-build authority.
Public Law 74 also:
- Requires a resolution approving design-build and identifying members of a Technical Review Committee, composed of architects, engineers, and qualified contractors. The Committee establishes and evaluates proposals.
- Provides a two-step best value selection process to select a design-builder. Bidders (typically three) are first pre-qualified and then a combination of price and qualifications determine the lowest adjusted price.
- Allows payment of stipends to unsuccessful bidders.
Public projects can now be accomplished faster, at better value, with more innovation and less litigation for Indiana taxpayers. Potential design-build projects include Indiana’s public schools, with an annual budget of $833 million in 2003, and state public works, which account for $70 million annually on more than 1,000 design and construction projects.
A broad coalition of public owners helped produce this legislative success. Indiana Senate Majority Leader David Long and Representative Randy Borror sponsored and championed the bill. Former DBIA Chairman Mark Shambaugh of Shambaugh & Sons worked tirelessly over the past four years to promote this legislation. Representatives from DBIA National and the Great Lakes Chapter testified on behalf of the bill and arranged for testimony by renowned architect Shalom Baranes. Mr. Baranes, the architect for the Pentagon Renovation, testified that he was initially opposed to design-build but became a strong advocate once he started using the design-build approach.
DBIA is now making a coordinated effort to reach out to public owners and practitioners to implement this new authority successfully. Awareness by public owners is critical. Equally important, practitioners must know how to perform design-build successfully. Many Indiana firms have design-build experience from their private sector work. To aid on this front, DBIA uses educational courses, newsletters, and publications to teach owners and practitioners how to implement design-build successfully.
When DBIA was formed in 1993, only nine states possessed any design-build authority, and that authority was generally limited. With the success in Indiana, 44 states, the District of Columbia, and the federal government all have some degree of design-build authority. Design-build authority and its use continue to increase across the country but progress is still needed. According to the 2005 Design-Build Survey by ZweigWhite, 57 percent of design-builders report that procurement laws effectively shut them out from potential public sector work. DBIA will continue to advocate for allowing design-build as an option in all markets in all jurisdictions.
DBIA and the DBIA Political Action Committee (PAC) expended significant resources for lobbying efforts in Indiana. Similar to the upfront efforts needed to make a design-build project work best, the expenditures in Indiana were well worth it. The legislative success translates into hundreds of millions of dollars in potential design-build projects in the Hoosier State every year. Coordinated lobbying efforts are important to the continued expansion of design-build authority and utilization across the county. Please visit our Advocacy section for more information.
Note that this article is not a solicitation by the DBIA PAC. Any contribution received from non-eligible donors will be returned.