The record number of design-build bills passed in 2009 bodes well for 2010. As I write in late March, rule revisions clarifying the level of design-build authorization in Rhode Island have made design-build an authorized project delivery method in all 50 states for the first time!
For many years, Rhode Island has been shaded “red” on the DBIA procurement map because the state had never passed legislation specifically authorizing the use of design-build. In 1989, the legislature authorized any form of contract in the best interest of the state. Since then, the law has seen revisions, but recent rules put in place clarify the intent of the law. The amended rules clearly state that design-build is authorized for all state agencies and several local governments.
The tide of change has reached Ohio, too. Although Ohio used design-build extensively on transportation projects, the building program had been shackled by an antiquated multi-prime system that has seen little reform over the last 100 years. This multi-prime system has proven to be both costly and inefficient.
Last year, Governor Strickland’s Construction Reform Panel recommended changes to Ohio’s construction procurement laws, but the Legislature failed to pass enabling design-build legislation. However, in the waning days of 2009, a compromise was reached allowing the Board of Regents to move forward with three demonstration projects using design-build, construction-manager-at-risk and design-bid-build without multi-prime. The projects will be the Emery Hall Renovations at the Central State University, Project One Core Phases at Ohio State University and the Bowman Oddy Laboratory Building and Wolfe Hall Renovations at the University of Toledo.
In state capitals across the nation, legislatures are passing design-build laws at a similar pace as 2009. Twelve states have already passed legislation expanding design-build authority and seven other states have passed legislation in either their House or Senate and it remains pending.
Trends that emerged in 2009 are continuing, with strong growth in transportation and local government sectors. To date, many states with design-build laws that expire or “sunset” on a specific date named in statute have either repealed the sunset altogether rather than extend it and no state has let design-build authority expire. DBIA hopes that California, Louisiana, Mississippi, Utah and West Virginia — states that face upcoming design-build sunsets — will continue the trend.
Despite all the good news, work remains to be done. Owners and design-build practitioners must continue to engage lawmakers if they want design-build to remain in the “toolbox.” Design-build legislative victories have been hard fought and hard won; continued success will be every bit as challenging.
The priint version of this story was illustrated with maps, available here.