3. The Art of Prediction
• “640K ought to be enough for anyone”;
Bill Gates, 1981
• “Everything that can be invented has been
invented”, Charles H. Duell, Commissioner US
Office of Patents, 1889
• “There is no reason anyone would want a
computer in their home”, Ken Olson, President,
Chairman, founder of Digital Equipment Corp, 1977
• quot;The wireless music box has no imaginable
commercial value. Who would pay for a message
sent to nobody in particular?” - David Sarnoff's
associates in response to his urgings for investment
in the radio in the 1920s.
4. The Art of Prediction
• quot;This 'telephone' has too many shortcomings
to be seriously considered as a means of
communication. The device is inherently of no
value to us.”; Western Union internal memo, 1876
• Design/build is still the
exception rather than the rule
today in the U.S.
5. Design Build Turnkey
Construction
• There are conflicting expectations in
the traditional Design/Bid/Build
process
• Design Build is an intensive
procedure
• More demanding on team than
“design/bid/build” type sale
• Team leader has to think about
building spirit, commitment, attitude
& motivation of the team
6. Owner A&E Contractor
Design meets Masterpiece – Build it and
owner’s use NO Changes move on…
requirement alowed!
A&E designs for Paid for basicPlans & specs
maintainability services on are clear,
time consise, error-
fee
A&E supervises Additional Build to the
construction compensation dwg, no liability
for service for design
A&E will inform Doesn’t want Owner is
owner of defects to supervise responsible
construction
Work to be NO Changes Paid in a timely
performed in fashion!
accordance with
accepted practices
Contractor to use Does not want No delays
good quality, new to be involved unles
materials in compensated
owner/contract
or disputes
Price is firm, RFI’s cannot Time & money
schedule firm, all be answered for extras
subs paid on time on job site
7. Determination of Owner
Requirements
• Stated Requirements
(“this is what I want or need!)
• Assumed Requirements
(I thought you knew I needed that!”)
• Withheld Requirements
(“I didn’t know I could get that!”)
• Unknown Requirements
(“I never thought of that”)
8. Req’d BOD Elements
Process Description & Process Flow Diagrams
Floor plan & general equipment arrangement
Sized major process equipment list, w/utilities
requirements/consumption
Sized Process support services utilities list
Functionality flow diagrams (process,people,
product, material, components, air, waste)
HVAC Zoning & room classifications, incl. microbial
limits
Budget quality (+ 20%) cost screening estimate
Preliminary “Scope of Work” description
(design/specify/furnish/install/inspect/test/
balance/certify/guaranty/challenge/qualify)
9. Facility Costs
Area Type $/Sq. ft.
Office 50-100
Lab 100-200
Mechanical space 30-60
Cleanroom:
Class 100K 250
Class 10K 350
Class 100 450-800
10. HVAC Capital & Operating Cost Comparison
Chilled Air Cooled Water
Water DX Cooled DX
Chillers 134K NA NA
MUA AHU 53K 178k 140K
Recirc Units 69.5K 102K 102K
Piping 88K 5K 69K
Total Capital $344K $285K $311K
Total Energy
(300 tons @
0.08/KWH) $168K $252K $189K
First year,
Excluding
Maintenance $512K $537K $500K
11. Design Build Turnkey
Construction
Strategy & Tactics
• Licensing - if NOT licensed in state, owner
has NO obligation to pay for services!
• 19 states permit engineer to be prime
contractor on D/B contracts - but engineer
must be licensed as GC
• Similarly, contractor may be required to
register as design professional - varies by
state
• Only 15 States do not require a license
12. Design Build Turnkey
Construction
Strategy & Tactics
• Contracts
- AIA favors owners/architects
- AGC favors contractor and
discourages the owner from
contracting with a
Design/Builder to perform
CONCEPTUAL work
13. Design Build Turnkey
Construction
Strategy & Tactics
DBIA's Contract Documents:
• These important documents are:
• Standard Form of Preliminary Agreement Between
Owner and Design-Builder (#520)
• Standard Form of Agreement Between Owner and
Design-Builder - Lump Sum (#525)
• Standard Form of Agreement Between Owner and
Design-Builder - Cost Plus Fee with an Option for a
Guaranteed Maximum Price (#530)
• Standard Form of General Conditions of Contract
Between Owner and Design-Builder (#535)
15. Design/Build doesn’t mean
“Design then Build”
It is NOT sequential as in traditional
design/bid/build
Design/Build means
single point
responsibility for
delivery of the
project!
16. Design/Build combines design
& construction in a single
contract -
A separate conceptual phase
or “BOD” engineering-only
contract is acceptable (to
determine “scope of work”).
19. Facilities Delivery
Design/Build (Design/Assist) Integrated Systems Approach
General Contractor
A&E Turnkey CIP/SIP Barrier
Cleanroom Compounding Technology
System System Systems
Building Offsites/Utilities Process Support
20. Design/Build Advantages
• Early, accurate cost input
• Decision to proceed can be made before
considerable amount expended on design
• Reduced project time, earlier facility use!
• SINGLE-SOURCE Responsibility - Builder
provides guarantee, NOT Owner!
• Improved Quality Control
• Reduced legal fees
• Eliminates Cost Creep!
21. Comparison of Project Delivery Systems
D/B CMatR D/B vs.
Metric
vs. vs. CMatR
D/B/B D/B/B
Unit Cost 6.1% 1.6 % 4.5%
lower lower lower
Construct 12% 5.8% 7%
Speed faster faster faster
Delivery 33.5 % 13.3% 23.5%
Speed faster faster faster
Cost 5.2% 7.8% 12.6%
Growth less more less
Schedule 11.4% 9.2% 2.2%
Growth less less less
Basis: 351 projects, 44% D/B, 23% CMatR, 33% D/B/B
17% “High Tech”, 43% public sector, 57% private sector
22. D/B & CMatR exceeded
quality expectations, D/B/B
did not!
• D/B/B provided overall lowest Turnover Quality as
measured by:
– ease of start-up
– lack of call backs
– operation & maintenance cost
• D/B/B provided overall lowest System Quality as
measured by:
– quality of envelope, roof, structure & foundation
– Quality of interior space & layout
– quality of environment
– quality of process equipment & layout
