2009 is looking more and more like a milestone year for expansion of design-build project delivery. And with the passage of Alabama’s new design-build law, Rhode Island remains the only state that that prohibits all forms of design-build project delivery.
The 2009 legislative season witnessed passage of legislation giving Alabama’s newly created Toll Road, Bridge and Tunnel Authority full authority to enter into design-build, design-build-own, design-build-operate and design-build-own-operate-maintain contracts. These projects will be evaluated and awarded by the Authority based on qualifications, best-value or both, taking the best interests of the state into consideration.
Developments in Alabama reflected a general legislative trend this past year. New Mexico and North Dakota lifted bans on design-build transportation projects and passed design-build legislation that clears the way for a limited number of design-build projects.
Meanwhile, several states loosened restrictions on the number and kind of projects allowed to be procured as design-build. Missouri increased the number of design-build DOT projects from three annually to two percent of all transportation projects. In West Virginia, the DOT Design-Build Program was scheduled to sunset. In addition to extending the life of the program, the legislature acted to increase the projects allowed under the program from three to 10. Like West Virginia, Illinois had a design-build program slated to expire. Lawmakers not only repealed the sunset, but also expanded the use of design-build to include the North Shore Sanitary District.
Interestingly, the greatest increase in authorization of design-build was aimed at local governments. State legislatures in California, Kansas, Indiana, Minnesota, Louisiana and Illinois passed legislation expanding the authorization of design-build construction by local governments. Types of projects approved for design-build project delivery now include water and sewer, educational facilities, transportation and energy.
Louisiana has probably seen the greatest design-build transformation in recent years. Once a state known for its barriers to design-build, Louisiana now permits all state agencies to engage in design-build procurement as well as design-build-operate-maintain, design-build-operate and design-build-finance-operate and maintain.
In fact, the only setback so far this year was in Kentucky, where Governor Steven Beshear used his line-item-veto power to strike design-build projects from an emergency act relating to road projects.
Nine states remain in session. There is still time for pending legislation to pass and additional legislation to be introduced. Challenges remain for design-build advocates: seven states and the District of Columbia do not authorize design-build transportation projects and several states continue to limit design-build procurement options. DBIA has scheduled meetings with key leaders in these states.
There has never been a better time for design-build practitioners and owner-advocates. At DBIA we are enthusiastic about working with our regions and individual members to develop legislative strategies to break down the remaining barriers to this innovative project delivery system.
Richard Thomas is DBIA’s vice president of advocacy and external affairs.