DBIA Final Exam Questions and Answers Graded A+ 2024
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DBIA Document 580 - Teaming Agreement - Between Design-Builder and teaming party
Components of Teaming Agreement - qualifications, insurance, matrix of responsibilities, confidentiality and exclusivity, payment of stipend/honoarrium
URS CORP v TRANSPO - does teaming agreement waiver survive if su...
DBIA Final Exam Questions and
Answers Graded A+ 2024-2025
DBIA Document 580 - Teaming Agreement - Between Design-Builder and teaming party
Components of Teaming Agreement - qualifications, insurance, matrix of
responsibilities, confidentiality and exclusivity, payment of stipend/honoarrium
URS CORP v TRANSPO - does teaming agreement waiver survive if subcontract
supersedes teaming agreement? - yes. subcontract was silent, waiver in prime flowed
down.
Common Procurement Challenges ANSWER conducting proprietary meetings
- handling alternative technical concepts
- evaluating non-price factors
- consideration of all proposal information
- use of work product fo unsuccessful proposers
Standard form contracts ANSWER reflect industry consensus on risk allocation
- predictable judicial interpretation
- convenient and cost effective
Current US Standard Form Contracts ANSWERDBIA (2010/2016)
- Consensus Docs (2016)
- AIA (2014)
- EJDC (2016)
DBIA OWNER/DESIGN-BUILDER AGREEMENTS ANSWER520 Preliminary Agreement
- 525 Lump Sum
- 530 Cost Plus Fee with Option for GMP
- 535 General Conditions
- 545 Progressive Design-Build Contract for the Water/Wastewater Sector
Contracting Approaches ANSWER Lump Sum
- Cost Plus
- GMP
- Unit Prices
- Target Pricing
LUMP SUM (DBIA 525) ANSWER single price regardless of actual cost
- no meaningful opportunity for Owner to be involved in subcontractor procurement
- no transparency into lump sum price
- limited audit rights
- undisclosed contingencies
,COST PLUS/GMP (DBIA 530) ANSWER compensation based on actual cost plus
fee up to GMP
- owner had broad audit rights
- owner has ability to be more involved ins subcontractor procurement
- most contingencies are transparent
- savings needs to be addressed
- administratively more complex
GMP PROCESS ISSUES ANSWER Timing of the GMP
- Assumptions (schedule)
- Contingency
- Savings
- Line item guarantees; not contemplated, general conditions could be capped
Progressive Design-Build (PDB) ANSWER Design-builder retained by Owner early in
projects's life primarily, if not exclusively, on qualifications
- Final project cost and schedule commitment is not established as part of the selection
process
- Two phases of work: preliminary services, & final design and construction, once the
parties have agreed on price and other commercial terms
- GMP contract is often used
PDB Process ANSWER Design-builder collaborates with Owner during Phase 1 to create
or confirm project's BOD
- Formal commercial proposal for Phase 2: "appropriate" level of definition often at 40-
60% design; dependent on amount of control Owner desires to maintain over design
definition and contingency
- Phase 2 initiated upon acceptance of commercial proposal
PDB Two-contract approach ANSWER parties first enter into a preliminary agreement,
such as DBIA 520 (Preliminary Agreement)
- if commercial proposal is accepted, parties then enter into a full design-build contract
such as DBIA 530 (Cost-plus with GMP)
PDB Single contract approach ANSWER parties enter into a full design-build contract
(DBIA 530) or for water/wastewater, DBIA 545
- these contracts establish the GMP after contract award
Progressive Design-Build Issue - Deciding what happens if relationship ends and the
"off-ramp" is exercised:
- owner's right to use work product
- owner's ability to use the designer without the builder
OWNER'S REVIEW OF DESIGN SUBMISSIONS
(DBIA 535) - §2.4.1 On or about the time of the scheduled submissions, Design-
, Builder and Owner shall meet and confer about the submissions, withDesign-Builder
identifying during the meeting, among other things, the evolution of the design and any
significant changes or deviations that have taken place from previous design
submissions.
§2.4.3 Neither Owner's review nor approval of any interim design
submissions, meeting minutes, and Construction Documents shall be
deemed to transfer any design liability from Design-Builder to Owner.
ADVANCETEC V WOHLSEN (2017) - "Though Plaintiff may have made clear that it
'intended that Wohlsen's rights to use the [IOS] would terminate if AdvanceTEC was not
selected as the subcontractor' and that it desired to retain the rights to the IOS until
construction was complete, the Court finds that there is nothing in the Executed LOI to
demonstrate that those intentions were ever
perfected in the resulting document."
DBIA Ownership of Work Product - ▪ Work Product is property of design-builder
▪ Owner given limited license to use documents conditioned on
▪ Payment of monies due under agreement
▪ Indemnity to design-build team
▪ No indemnity if design-builder in default
▪ Agreed-upon premium to design-builder if:
▪ Preliminary agreement does not result in contract
▪ Owner terminates for convenience
▪ Parties can agree that Owner will have greater property rights
▪ Unique architectural and other design elements and specifications
▪ Full ownership of everything
EXECUTION TECHNIQUE - The design
-builder and its team should
(a) establish a trend system early in the
design development process to identify,
track and evaluate any potential changes
before they adversely impact the project's cost or schedule;
(b) clearly, thoroughly, and contemporaneously communicate to the
Owner the information derived from the
trend system; and
(c) maintain the trend system throughout
the construction process until it is no
longer needed.
Incentives - ▪ Cost sharing on GMP or "gainshare" on target priced contract
▪ Early completion bonus
▪ Award Fee program
▪ Contingency pool
Disincentives - ▪ Liquidated damages for schedule delays
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