No one reading this column can have overlooked the changes happening of late. Our global economy has descended into a troubled period of unknown duration. There was a tendency for many, myself included, to at first deny that the changes would really impact my business. But now we are past that point of denial; all thoughtful business people — particularly those of us at Ground Zero in Detroit — recognize the seriousness of the economic crisis.
Facing such challenges, we must adapt to survive, as the Darrow quotation reminds us. Fortunately, design-build lessons provide a blueprint (dare I say a 3-D model?) for how we can change our approach to achieve superior results. Consider these compelling examples:
- The new University Hospital at UC-Irvine was completed in 2008 four months early - design-build. (Kudos to campus architect and former DBIA Chair Rebekah Gladson and her team!) The Ronald Reagan UCLA Medical Center, on the other hand, opened in 2008 after hundreds of millions of dollars in overruns and years of delay — design-bid-build.
- The Nationals Park in Washington, D.C., opened for baseball in 2008 on time, on budget — design-build. The U.S. Capitol Visitors Center— still unfinished as of this writing — has had hundreds of millions of dollars in overruns, and construction is taking more than twice the time originally expected — design-bid-build with construction manager agent.
- The 10-lane I-35W St. Anthony Falls bridge replacement in Minnesota opened in 2008 three months early and $15 million under budget, and one year from contract to completion — design-build. The 10-lane Wakota bridge replacement, also in Minnesota, about 15 miles down the Mississippi, is now scheduled for completion no earlier than 2010 after eight years of construction, at twice the original budget — design-bid-build.
Of course, factors aside from the delivery model contribute to some of these stark differences in outcome. Regardless of these variables, ask yourself if continuing with design-bid-build is wise in view of the results that properly executed design-build delivery can provide.
In Darwinian fashion, industry participants must change if they hope to survive.
- Legislators must recognize that design-bid-build has burdened taxpayers with claims and overruns.
- Owners must venture outside their comfort zones, selecting the delivery model that best promotes collaboration and integration of service.
- Architects must learn to be the builders’ partner, not adversary.
- General contractors must embrace the owner’s project goals and see attainment of those goals, not preparation of claims, as the path to success (case in point: the $27 million incentive for early completion payable to the St. Anthony Falls design-build team).
- Specialty contractors must provide value-added estimating and design assistance during preconstruction.
- Educators must develop students ready for collaboration across professional disciplines.
- All participants must accept the risks they are best suited to manage, increase use of BIM and other collaborative technology and foster an environment of trust.
As 2009 chairman, I am honored and humbled to have the opportunity to lead, serve and help implement changes where needed. These include:
- Sending clear messages about how hot topics such as BIM, green building and integrated project delivery harmonize well with design-build.
- Communicating DBIA’s value proposition to retain current members and recruit new ones.
- Engaging the talents and energy of members through region and committee activities.
- Enhancing DBIA’s use of technology to support delivery of its educational offerings, publications and other products.
I look forward to working with many of you to further these goals in 2009.
Tom Porter, executive vice president of Barton Malow Company, is the DBIA chairman of the board.