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________________________________________________________________________________________
American Council of
Engineering Companies
(formerly the American
Consulting Engineers
Council)
Volume XXII,
Number 11
June 8, 2001
1015 15th Street, NW
Washington, DC 20005
202-347-7474
Fax
202-898-0068
www.acec.org
E-mail acec@acec.org
Francis George, Editor
___________________
ACEC
Means
Business
How Much Preliminary Design is Enough?
The honest answer to this question is "it depends." In many cases, owners can take their preliminary design efforts too far. With two recent large highway design-build projects, 30 percent preliminary designs were prepared as part of the tender process. In retrospect both owners would limit their preliminary designs to 10 to 15 percent completion, in order to give the design-builder more opportunity and incentive for the type of innovation that the design-build process is meant to encourage.
Innovation begins early in the process and involves close collaboration between the design and construction teams. In the case of one of these projects, the winning design-builder developed a different design approach from the one that the owner had suggested and in the end much of the owner’s 30 percent design was not used. Backing down from the 30 percent preliminary design standard meant that the agency has had to allow changes and modifications to many of its standards. While this was a difficult decision for the owners, in the end the design-build team’s freedom to explore new materials and ideas using a less well defined conceptual design eventually brought more benefit back to the owner on the project.
In another example, on one large transit design-build project, the owner included a 95 percent complete design as part of its design-build tender process. While this may seem unusual, by procuring the project on a design-build basis the owner was able to qualify for additional federal funding that was being made available for three pilot demonstration projects. The design-builder was given the freedom to rework some of the design. However, this was the owner’s first design-build procurement and the agency had detailed standards that left little room for innovation in design. As a result it was comfortable taking the "belt and suspenders" approach.
When dealing with design-build procurement for a vertical project (a building), preliminary design does not have as much meaning. Proposals are often prepared in response to a building program that will only identify the location, size, and other project specifications that the proposer must meet. The design-builder, as part of the procurement process, must develop schematic designs that meet the criteria, thus providing the opportunity for innovations and an integrated approach.
Any percentage of design can be deceiving. Using such standards can either decrease innovation or shift undue risk. Design level must be looked at on an individual line item basis. Here are three criteria that can be used to assess the design issue:
• If the item can be described through a performance specification, then do not design it.
• If the item of work cannot be quantified for pricing, then it must be further designed.
• If the owner cannot live with a substitute (i.e., standardized mechanical equipment or an esthetic standard) then design it to 100%.
With a highway project, for example, an owner may need to design erosion control mechanisms to the 100 percent level in order to obtain environmental approvals or explore geotechnical elements to the 100 percent level in order to obtain an accurate price. However, traffic management elements may not need to be designed in advance if clear performance specifications can be provided.
Excerpted from Multiple Delivery Systems Handbook on Design-Build Project Delivery by the ACEC Professional Procurement Committee and Ben Perez, Editor. Design-Build Project Delivery is available for sale through the ACEC Bookshop #LW-371, $29 members, $39 non-members, $4 s/h. Orders should be sent to ACEC (FAX (202) 789-7220, or e-mail, publications@acec.org). Please include your Mastercard, Visa, or American Express number with the expiration date, contact name, firm name, street address, phone number, and e-mail address.
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FAA to Speed Environmental Review The Federal Aviation Administration (FAA) will establish environmental impact (EIS) teams, hire more environmental specialists, and improve interagency coordination, to speed review of runway projects, according to a DOT report released May 24, 2001. The report dovetails with testimony delivered by ACEC President Dave Raymond to the House Aviation Sub-committee on May 24 (see the May 15 Last Word).Upon sending the report to Congress, as required by AIR-21, FAA Administrator Garvey said, "We want to reduce environmental review timelines while maintaining high standards of environmental protection." AIR-21 is the Aviation Investment and Reform Act for the 21st Century, which authorizes federal funding over four years (through 2003) to improve airports. One facet of the plan would establish an EIS team for each new EIS for a major runway project at a large hub airport. The teams would consist of FAA members, airport representatives, and EIS consultants, according to the report. A second facet of the plan calls for converting five positions in FAA’s Airport Office to "environmental specialist" positions. Finally, the report calls on FAA to "streamline environmental requirements for all airport projects," not only critical projects while staying "within the current structure of environmental laws." For more information, visit www.faa.gov/arp/app600/600home.htm . Public Relations Panel Delivers Recommendations ACEC’s Blue-ribbon Panel on Future Public Relations, chaired by Richard Weingardt, delivered its 100-page report in May, titled Eye to the Future. The report contained the following six recommendations:• Enhance communications with members; • Influence policy; • Create a positive public perception; • Create a positive client perception; • Attract and retain young professionals; and • Collaborate with others on specific [PR] projects both within the industry and in the broader community. The Panel also emphasized that public relations is not conducted in a vacuum. Public relations should not be treated as an isolated activity within the organization. Rather, since much of what ACEC does has potential to enhance public relations, we should take advantage of these opportunities. Members of the Panel included Robert Albee, John Baker, Albert Dorman, Hank Hatch, Brian Lewis, David Snyder, and Henry Stikes. For more information, contact Lee Herring (lherring@acec.org) at ACEC. EBAC to Merge with ACEC Environmental Business Committee Over the past year the Environmental Business Action Coalition and ACEC’s Environmental Committee have been transitioning into a closer relationship to form a "special interest" group. The increased coordination between two organizations, which share many of the same goals and priorities, has resulted in a stronger, more representative organization addressing the environmental business interests of engineering companies. To further promote the joining of these two groups, ACEC has created a new committee called the Environmental Business Committee. The Committee, appointed by ACEC’s Chairman, will continue to pursue the same objectives that the Environmental Committee and EBAC addressed separately. In addition to the creation of the new committee, a dues-paying Special Interest Group will be formed within the Environmental Business Committee to help facilitate promotion of ACEC’s legislative agenda. Participation in the Special Interest Group is open to all ACEC members and will be comprised of members who pay additional dues, based on the number of employees. The dues collected will support many of the same activities that EBAC was involved in, such as the monthly Washington Forums, the weekly newsletter, the Subcommittee activities, and the services of lobbying consultants. Now, however, membership is open to all ACEC members and at a reduced rate. For more information about the new Environmental Business Committee and the Special Interest Group, contact Emily Baker (202-682-4354 or ebaker@acec.org). We welcome new members to the Environmental Business Committee and its affiliate Special Interest Group. "Transportation Is the #1 Issue Affecting Our Country..."Said House Transportation and Infrastructure Chair Don Young (R-AK), at a meeting organized by the Transportation Reform Alliance this past week. The meeting, attended by ACEC Director of Transportation John Carney and CH2M HILL’s VP of Government Affairs Dick Corrigan, was a chance for the Alliance and Young to exchange ideas regarding issues facing his committee and the nation. Among Young’s observations was the quote above, along with the admonition that we [as an industry] help raise the level of consciousness regarding transportation issues and their effect on the nation’s economy, air pollution, and general well-being. Left to his own devices, Young would upgrade rail-beds and dock facilities, as well as build "double-decks" onto existing highways in order to alleviate congestion in certain areas.Young, and his staff, thanked ACEC for its participation in two of the four "congestion theme" hearings his committee held the week of May 22. ACEC Attends White House Tax Bill Signing Ceremony Yesterday, President Bush signed into law a reduction of the estate tax and reduction in marginal rates affecting all principals and smaller firms that operate as sub-chapter S Corporations, partnerships, and sole proprietorships. While the legislation needs to be re-visited in 10 years, the bipartisan agreement represents the largest tax cut in 20 years and is one of the most significant bills to be signed to help small businesses tax liabilities. Some additional benefits of the bill include: Ö Reduces taxes for all taxpayers at all tax levels.Ö Repeals the estate tax.Ö Provides relief from the marriage penalty.Ö Doubles the child tax credit to $1,000.ACEC lobbyists Jack Kalavritinos, Kate Koury, and John Carney attended the ceremony. Kalavritinos had the opportunity to greet the President immediately after he signed the bill, congratulating him and thanking him for his recognition of business groups like ACEC in his remarks at the bill signing ceremony . The following editions of the Last Word are available online, to retrieve a particular issue, choose the date from the drop down box below, and click "Go Get It!" |