In a legislative season burgeoning with design-build successes, no state has seen as much activity as California. Five bills expanding design-build authority passed the California legislature this year, an unprecedented number for any state. This string of victories started with passage of legislation authorizing Caltrans and regional transportation agencies to enter into design-build Public-Private Partnerships (P3s). P3s are an important tool for cash-strapped transportation authorities with needs that surpass existing funding streams. The new law also permits the Director of General Services, Department of Corrections and Rehabilitation and the Judicial Council to use design-build for construction of up to five offices, prisons and court facilities. This bill will sunset in 2014.
Governor Schwarzenegger signed AB 729 into law. This bill extends the design-build repeal date for transit operators from June of 2011 to 2015.
The biggest growth in the use of design-build has been at the local government level. All California counties have design-build authority to construct buildings and related improvements, as well as wastewater facilities costing more than $2.5 million. Similarly, all cities can use design-build for building and related improvements on projects with budgets in excess of $1 million. A pilot program also permits cities, counties and special districts to use design-build on local wastewater treatment plants.
During the 2009 legislative session, four local design-build bills were introduced, with two passing. SB 43 authorizes the city of Santa Clara and its redevelopment agency to enter into a design-build contract for construction of a football stadium and AB 958 authorizes metropolitan water districts to use design-build for solar energy projects. Both bills passed the legislature. AB 405 and AB 263, which authorized design-build for local healthcare and transportation projects respectively, stalled in the State Assembly.
Design-build authority often begins with state authorization and trickles down. In California design-build has percolated up. As local governments gained limited authority to use design-build, they have taken full advantage of it and successful projects have resulted. Did these projects fuel greater interest in design-build, pressuring lawmakers in Sacramento to broaden design-build authority?
Robert Hartung, DBIA, of Alternative Delivery Solutions of Laguna Niquel, Calif., thinks so. “Public owners in California have clearly shown more interest in design-build delivery,” he says. “I believe this is due to broadened legislative authority, word-of-mouth reports of successful design-build projects and pent-up demand. At industry workshops, integrated project delivery and design-build for all kinds of public projects are common topics.”
California’s battle has been won incrementally. Lack of statewide design-build authority means that DBIA will continue to chip away at design-build barriers until full authority is a reality. Fortunately, California’s DBIA members are not resting on their laurels.
“Although California has had legislative successes, we still have a long way to go until every public owner in the state is included in this authorization,” Hartung told me. “There are too many sunset provisions, pilot programs and other limiting factors that prevent broad utilization of design-build on public projects. Design-build should no longer have to prove its merits, when its best practices are followed; it has been shown to work very well for any project.”
Richard Thomas is DBIA’s vice president of advocacy and external affairs. Email him at rthomas@dbia.org.