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Design-Build Programmatic Updates October 14, 2020 Design-Build Programmatic Updates Joe Adams, PMP ® October 14, 2020 2020 Short Course
Design-Build Programmatic Updates October 14, 2020
Design-Build Programmatic UpdatesJoe Adams, PMP®
October 14, 20202020 Short Course
Design-Build Programmatic Updates October 14, 2020
Table of contents
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8-11
12-15
16-22
23-24
3-7Overview
New and Modified Relief
Risk Sharing
New Risk Sharing Concepts
Other Items
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2
3
4
5
Design-Build Programmatic Updates October 14, 2020
Overview
Design-Build Programmatic Updates October 14, 2020
Major Programmatic Changes - DBC
Reallocation of risks associated with certain delays
DBE requirements for work done by Utilities
Evaluation factors
– Bidding Capacity
– Experience working with DBEs
– Proposer requests for SUE
Move toward increased use of electronic submittals
Insurance requirements
4
For additional details please refer to the Programmatic
Documents V4.0
Design-Build Programmatic Updates October 14, 2020
Revising Programmatic Documents - Sources
5
Alternative Delivery Projects
Changes to the Design-Build Specifications
Electronic submittals requirements
Environmental approval commitments
Non-Project TxDOT
DBE experience reporting and reference forms
Bidding Capacity
Maintenance Management Plan requirements
FHWA and Industry
FHWA– Geotechnical and pavement
requirements– Intersection operational
requirements
Industry Feedback
– Risk Reallocation
V 4.0 incorporates more than 500 changes to V 3.1
Design-Build Programmatic Updates October 14, 2020 6
Revising Programmatic Documents - Process
Alternative Delivery Projects Non-Project TxDOT Sources FHWA and Industry
Statewide Programmatic Working Group
Programmatic Working Group
SCMSection Director
Project-Specific Documents
UpdatedProgrammatic
Documents
Draft Programmatic
Documents
Director of Planning and Development
Design-Build Programmatic Updates October 14, 2020
Collaboration with Industry
Delay risk and relief events– TxDOT is assuming greater responsibility for certain events outside of
DB Contractor’s control
Project Overhead– Project Overhead only applies to certain delays where DB Contractor
gets schedule relief– Daily Rate set during project procurement (8.5% to 10%)– DB Contractor can claim actual costs
New risk sharing concepts– Delay Deductible Aggregate Cap– Qualifying Delay Late Fee
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Design-Build Programmatic Updates October 14, 2020
New & Modified Relief
Design-Build Programmatic Updates October 14, 2020
Delay Event Cost Relief Schedule Project Overhead
Shared Risk
Differing Site Conditions Delay
Eminent Domain Delay
Force Majeure Delay
Uncooperative Utility Delay
Utility Owner Delay
Unidentified Utility Delay
New & Modified Relief – Qualifying Delays
9
Refer to Programmatic Documents V4.0 for details
Design-Build Programmatic Updates October 14, 2020
New & Modified Relief – Nonqualifying Events
10
Event Cost Relief Schedule Project Overhead
Shared Risk
Supply Chain Disruptions Delay
Railroad Documents
Railroad Agreement Delays
Special Events Delay
New Third Party Agreements
3rd Party Agreements Changes
Karst Features Delay
Unknown Karst Mitigation
New Utilities
New Drainage Permits
Refer to Programmatic Documents V4.0 for details
Design-Build Programmatic Updates October 14, 2020
Risk Sharing
Design-Build Programmatic Updates October 14, 2020
Tiered Risk Sharing Mechanism
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Details of risk sharing mechanism varies across events
Day in Tiers can be either event specific or cumulative
Days can be subject to event specific caps
Not all events have risk sharing
Design-Build Programmatic Updates October 14, 2020
Risk Sharing Mechanism
13
Basics of risk sharing mechanism
DB Contractor takes 100% of risk for X days
DB Contractor and TxDOT share next Y days of delay 50/50
TxDOT takes 100% of risk for each X+Y days
Events can be either per occurrence or cumulative
Risk sharing mechanism varies by event
Design-Build Programmatic Updates October 14, 2020
3 - Tiered Risk Sharing Mechanism – Force Majeure Event Delay
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Tier 1: Cumulative Days 1 – 30 DB Contractor bears 100% of delay risk
No schedule relief or project overhead for first 30 days
Tier 2: Cumulative Days 31 – 90 Parties share delay risk equally, 2 days of delay = 1 day of relief
Maximum relief to DB Contractor in this tier is 30 days
Tier 3: Cumulative Days over 90 TxDOT bears 100% of the risk
DB Contractor is eligible for schedule relief and project overhead for every day of delay beginning on day 91
Design-Build Programmatic Updates October 14, 2020
4 - Tiered Risk Sharing Mechanism – Utility Owner Delay
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Tier 1: Cumulative Days 1 – 60 DB Contractor bears 100% of delay risk
No schedule relief or project overhead for first 60 days
Tier 2: Cumulative Days 61 – 120 Parties share the delay risk equally, 2 days of delay = 1 day of relief
DB Contractor eligible for schedule relief, but not project overhead
Tier 3: Cumulative Days 121 - 180 Parties share the delay risk equally, 2 days of delay = 1 day of relief
DB Contractor eligible for schedule relief and project overhead
Tier 4: Cumulative Days over 180 TxDOT bears 100% of delay risk
DB Contractor eligible for schedule relief and project overhead for every day, beginning on day 181
Design-Build Programmatic Updates October 14, 2020
New Risk Sharing Concepts
Design-Build Programmatic Updates October 14, 2020
New Risk Sharing Concepts
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Qualifying Delays
Delay Deductible
Delay Deductible Aggregate Cap
Qualifying Delay Late Fee
Refer to Programmatic Documents V4.0 for details
Design-Build Programmatic Updates October 14, 2020
Qualifying Delays
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Delays to the Critical Path
caused by the following events
• Uncooperative Utility Delay• Utility Owner Delay• Unidentified Utility Delay• Differing Site Conditions Delay• Force Majeure Delay• Eminent Domain Delay
Risk Sharing (Qualifying Days)
• Delay Deductible: DB Contractor does not get schedule relief and/or project overhead
• Relief days: DB Contractor gets schedule relief and/or project overhead
Design-Build Programmatic Updates October 14, 2020
Delay Deductible & Delay Deductible Aggregate Cap
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Delay Deductible• Qualifying days that DB Contractor does not
get schedule relief and/or project overhead
• Days contribute to the Delay Deductible Aggregate Cap
Delay Deductible Aggregate Cap
• 10% to 25% of the number of days from NTP1 to Substantial Completion deadline
• Determined on project by project basis
• TxDOT provides schedule relief and overhead for qualifying delays above Delay Deductible Aggregate Cap
Design-Build Programmatic Updates October 14, 2020
Delay Deductible & Relief
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Days Above Cap
Days At or Below Cap
Qualifying Delays
Delay Deductible Days Compensable Delays
Qualifying Delay Late Fee
Change OrderDelay
Deductible Aggregate
Cap
Design-Build Programmatic Updates October 14, 2020
Qualifying Delay Late Fee
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Daily late fee for failure to achieve Substantial Completion due to Qualifying Delays
Delay Late Fee applies to days after missed Substantial Completion
Not to exceed the number of days in the Delay Deductible Aggregate Cap
50% of amount set for liquidated damages for delay to Substantial Completion per day
Full Liquidated Damages for Delay apply for Substantial Completion exceeding Delay Deductible days
Design-Build Programmatic Updates October 14, 2020
Other Items
Design-Build Programmatic Updates October 14, 2020
Other Programmatic Changes
Sole discretion List of Reference Information Documents Advanced relocation utility agreements Utility investigation Utility adjustments Pre-proposal utility commitments Local approvals Level A SUE
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For additional details please refer to the Programmatic Documents V4.0
Design-Build Programmatic Updates October 14, 2020 24
Questions
