Alternative Project Delivery Methods

Governor Schwarzenegger recently signed three bills which will expand the ability of cities, transit operators and the Sonoma Valley Health Care District to award projects on a design-build basis.  Each of these agencies is generally constrained by public bidding requirements to award construction contracts separately from contracts for professional design services.  These agencies will now have a greater ability to take advantage of a useful project delivery alternative for some projects.  The three bills are summarized below:   


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A new bill authored by Doris Wolk would expand the authority to award projects on a design-build basis to all cities, as well as to projects by any “qualified entity” for local or regional wastewater facilities, solid waste management facilities, or water recycling facilities. The bill, AB 642, has passed both the state assembly and state senate, but still awaits the signature of Governor Schwarzenegger. Assuming he signs the bill, the expanded design-build authority would go in to effect on January 1, 2009.    


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Governor Schwarzenegger recently announced a plan to promote public-private partnerships in order to meet California’s long-term infrastructure needs. (See Los Angeles Times article.) Public-private partnerships are contractual agreements which are formed between public agencies and one or more private companies whereby the private company finances, builds and manages public facilities for a specified period of time.


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Earlier this month, the American Institute of Architects California Council ("AIACC") and the American Institute of Architects ("AIA") jointly published a comprehensive new guide to Integrated Project Delivery methods.  The document is entitled "Integrated Project Delivery: A Guide," and can be downloaded here.  The Guide marks an exciting step forward in the development of Integrated Project Delivery concepts and making IPD a viable alternative for the construction industry.   


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At the AIA National Convention in San Antonio on May 2, the AIA California Council issued an intriguing working definition of "Integrated Project Delivery."  The goal of Integrated Project Delivery is to approach construction projects in a more collaborative way, taking advantage of technological tools such as Building Information Modeling.  Click here to view the document published by the AIACC. 


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The National Institute of Building Sciences (NIBS) recently issued the version 1.0 draft of the National Building Information Modeling Standard (National BIM Standard).  The National BIM Standard has been in the works for over four years, and is a collaboration between over 30 subject matter experts throughout the capital facilities industry.  An industry review and comment period is now in effect until May 21, 2007.  


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Building Information Modeling (BIM) utilizes computer technology to represent building structures and systems in terms of functional, as well as graphical attributes.  This technology may some day change the nature of collaboration between design professionals and contractors on construction projects.  This article examines the benefits and challenges of implementing Building Information Modeling.  Click here for the full

Pursuant to three separate bills, the state legislature expanded existing statutory authority to award construction contracts on a design-build basis to apply to more cities and counties as of January 1, 2006. In each case, the duration of the statutory design-build authority was extended to the year 2011, and the dollar threshold was lowered to $2.5 million per project for counties. Following is a short summary of the bills:

·        AB 1329 (Wolk): This bill added section 20175 to the Public Contract Code, and authorizes cities in the counties of Solano and Yolo to award construction contracts on a design-build basis. The authority only applies to buildings and directly related improvements, and does not apply to streets, highways, public rail transit, or water resources facilities and infrastructure. The statute has a sunset provision for the year 2011.


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http://www.bart.gov/about/projects/oacnews.asp

On February 13, 2006, the San Francisco Bay Area Rapid Transit District (“BART”) issued an advanced notice of a Request for Qualifications for the design, build, finance, operation and maintenance of a three-mile connector railway between the existing Coliseum BART station to the Oakland International Airport.


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