Wednesday, July 11, 2012

Alternative Project Delivery: The Problem of Metrics

Here is an interesting article written by David Gehrig and Lisa Dal Gallo (Hanson Bridgett, SF) surveying the status of design-build in California. 


The legislature first dipped its toe in to the design-build pool for public agencies in 2001 with the passage of AB 598, which authorized “transit operators” to award contracts for transit projects of at least $10 million on a design-build basis. Since then, a variety of statutes have been enacted expanding design-build authority to other agencies, lowering the dollar threshold for specific design-build legislation, and extending the date of applicable sunset provisions. Currently, the following public agencies have some form of design-build authority: 1) transit operators; 2) cities; 3) Sonoma County Health Care District; 4) school districts; 5) community college districts; 6) counties; 7) Director of General Services for the State of California; 8) Los Angeles County Metropolitan Transportation Authority; 9) select public agencies pursuing wastewater or solid waste facilites; and most recently 10) local tranportation agencies.
These enabling statutes have included requierments to provide information on design-build projects to the California Legislative Analyst's Office in order to keep some metrics of succes.  The Legislative Analyst's Office issued a report in January 2010   entitled "Counties and Design Build."  Here is the summary of this January 8, 2010 report. 

Summary

As part of legislation extending design-build authority to county governments, counties were required to report to our offi ce on construction projects that they completed with the design-build delivery method. This report provides a summary of the counties’ responses to our offi ce. Although it was diffi cult to draw conclusions from the reports received about the effectiveness of design-build compared to other project delivery methods, we do not think that the reports provide any evidence that would discourage the Legislature from granting design-build authority to local agencies on an ongoing basis. In doing so, however, we recommend the Legislature consider some changes such as creating uniform design-build statute, eliminating cost limitations, and requiring project cost to be a larger factor in awarding the design-build contract.
"Difficult to draw conclusions ..." is not exactly an overwhelming metric endorsement.  Notably Dal Gallo and Gehrig are unaware of any follow up to the LAO's report.  It would be nice if the LAO, or some other centralized body, could continue to gather reliable and objective metrics comparing the relative success of different project delivery models. 

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