Third Thursday sat down with Levi W. Barrett to learn more about why the design-build model isn't always so smooth.
RIVER EDGE, N.J. – As a partner in Peckar & Abramson's New Jersey and New York offices, Levi W. Barrett spends a lot of his time pondering legal risk within the construction trades. Working closely with contractors, construction managers, owners, and developers, Barrett structures and negotiates contract documents—pricing risk into projects nationwide
During a session at Construction Super Conference, Barrett shared his evolving thoughts during Pricing Risk – A Construction Insider's Point of View.
Third Thursday sat down with Barrett to learn more about why the design-build model isn't always so smooth.
Third Thursday: What is one key to
success for design-build projects?
Barrett: From the design builder's
perspective, one of the keys to success is making sure that
you've got a level of comfort and experience with the owner and
the subject matter, and that the owner has experience with the
subject matter as well.
Third Thursday: Where do parties tend
to go off the rails?
Barrett: Parties get into trouble when there is a
lack of experience with the delivery method, a limited
understanding of the process, or a lack of familiarity with the
ingredients that are necessary to make a design-build project
successful. We need to make sure that parties understand the
importance of appropriate risk allocation because we see parties
that use design-build in a manner that it was not intended to be
used. When you're working with an owner who views design-build
purely as a way to pass all the risks of the unknowns to
contractors, you are starting out misaligned. Risk
"dumping" is a practice to be avoided and a fair
allocation of risk is a critical component of project success.
Third Thursday: What are the
ingredients of a successful design-build project?
Barrett: A successful design-build project is one
that is collaborative — where the parties have good access to
one another and an understanding of the roles each party is
expected to play. They can work through problems together as they
arise. Where you don't have those factors, and there isn't
a shared understanding of the need to have all of the parties
rowing in the same direction, there's cause for concern.
Third Thursday: What are the sources
of tension between large general contractors and large design
professional firms?
Barrett: It goes back to the way risk is allocated
under a design-build contract. One of the tensions I've seen on
the designer side is making sure the designer is psychologically
oriented to work with a design builder as opposed to an owner. Many
designers are most comfortable working directly for an owner.
Moving from design-bid-build to the design-build world can be a fundamental shift and it's imperative that designers appreciate that change.
Third Thursday: How would you describe
the tone of design-build discussions at CSC and or within the
profession?
Barrett: It's hard to put a fine point on that
one. There's a level of concern from the design-build
community. There's a desire for better alignment between the
parties, making sure that everybody is engaging for the right
reasons—and it's not being utilized purely for purposes
of unfairly dumping risk.. Design-build should be used as a means
of fostering innovation, and allowing the market to resolve
problems on the project front.
Third Thursday: What new issues are on
the horizon for design build projects?
Barrett: I'm seeing a lot of talk and
discussion in the market around progressive design-build as a way
to strive for that alignment. Progressive design build is something
that is gaining a lot of traction in the discussion groups around
the United States for sure. It is a system where alignment between
the parties comes first and the price comes a little bit later. The
parties are allowed to gel. The project designs are allowed to come
together and crystallize a little bit more, and then we get to
finalize pricing. We're not putting the price out there first
and trying to make everything else work behind it.
Third Thursday: How do you like Las
Vegas as a destination point for CSC?
Barrett: I look forward to getting together with
my colleagues at the super conference regardless of the setting
– but Las Vegas truly has a lot to offer right now. With the
opening of the Sphere and some of the sports venues out there,
I'm really looking forward to making the trip.
The original article can be read here.
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