Digital Design-Build

Digital Design-Build: A Guide to Design-Build Project

Delivery Using Digital Transformation
11/2023

Outline
Chapter 1 The Power of the Design-Build
Chapter 2 The Power of Digital Transformation
Chapter 3 The Design-Build Extended Project Lifecycle
3.1 Portfolio Level
3.2 Program Level
3.3 Project Level
3.3.1 Procurement
3.3.2 Project Delivery
3.3.2.1 Initial Phase
3.3.2.2 Intermediate Phase
3.3.3.3 Final Phase
Chapter 4 The Future of Construction Project Management

Appendix A: Checklists and Templates

Appendix B: About PMWeb

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Preface
In the present day, decades after the resurgence of the design-build process, there exists a global
consensus that design-build is the preferred approach for most construction projects.
Over the years, the advantages and strengths of this process have become evident to decision-
makers. However, a fundamental question remains: How can design-build be executed correctly to
fully harness its potential benefits? Despite sincere and persistent efforts by organizations like the
DBIA (Design-Build Institute of America) and books by dedicated design-build enthusiasts
worldwide, the market still lacks a comprehensive Design-Build Guide and standard, akin to PMI's
PMBOK Guide. This guide should encompass the best practices of design-build and draw from the
lessons learned from both recent and historical design-build projects.
This book is aimed at bridging this gap by providing a practical design-build guide that can be
readily utilized by both project owners and design-builders, resulting in immediate, tangible
outcomes. It encompasses the entire expanded design-build project life cycle and offers a wealth of
best practices, trade secrets, checklists, and templates, ranging from the initial feasibility study to
the critical go-no-go decision, bidder screening and selection, bid-to-win strategies, contract award,
design-build implementation, and project closure.
Furthermore, as we navigate the digital era, the digitalization of design-build project management
processes and records has become an inevitable and essential step. Consequently, this book offers
digital transformation tools and techniques to harness the full potential of the presented design-
build knowledge and know-how. This transition to digitalization offers numerous advantages,
including predefined workflows, efficient storage and retrieval of project records, and, most
notably, the opportunity to unlock the vast potential of revolutionary artificial intelligence (AI).
The powerful combination of design-build project management methodology and digital
transformation enables the achievement of outstanding business results and project outcomes.

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Why design-build?
Design-build has historically been the predominant and only known construction project delivery
method. It was only during the Renaissance era in the fifteenth century in Europe that a clear
separation emerged between design and construction. However, design-build made a spectacular
revival in late the nineteenth century in the United States and remained ever since.
Initially, design-build encountered resistance because it represented a departure from the
established practice of handling design and construction as separate functions performed by
distinct entities. Nevertheless, design-build persevered and steadily gained popularity. In recent
decades and as we entered the 21st century, design-build has made significant inroads over other
traditional project delivery methods. Owners were drawn to design-build for its potential to save
time and costs while fostering innovation. Design-builders embraced this approach for the creative
freedom it offered and the satisfaction of bringing ideas to life.
What further affirmed the value of design-build and made it an obvious choice was the emergence
of construction project delivery concepts that gained worldwide attention and trended extensively.
These include Agile methodologies, the principles of Lean Construction, and the adoption of public-
private partnership (PPP). Notably, all three of these concepts emphasize the design-build
approach as the most effective path forward. Agile ensures that clients receive what they desire
and yields early benefits, Lean focuses on reducing time, costs, and coordination challenges, and
PPP enables the early opening of projects, leading to the prompt generation of income.
As such, design-build positions itself as the project delivery approach of the future. Awareness and
education regarding design-build need to be heightened in both practice and academia. Those who
master the process will emerge as the winners.

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Chapter 1 The Power of the Design-Build

TBD

Chapter 2 The Power of Digital Transformation

TBD

Chapter 3 The Design-Build Extended Project Lifecycle

TBD – A primer on the design-build lifecycle and how it differs from traditional project delivery
The need to begin at the Portfolio and Program levels, show the three levels hierarchy
The need to begin project delivery at the Procurement stage

3.1 Portfolio Level

In design-build, more than ever, success begins at the portfolio level. That’s because they are more
sensitive to employer and functional requirements. The portfolio level is where projects are
conceived, and mandates are established – the reason for existence and the mission to accomplish.
Without anchoring the projects in the portfolio level, they become vulnerable to losing their way
and failing. This section offers a primer on what transpires at the portfolio management level,
including its themes, objectives, and mechanisms. Essentially, the portfolio level is the strategic
management level responsible for achieving organizational goals through projects. At this level,
decisions have the maximum impact and can either make or break organizational success. Design-
build projects should, therefore, stay organically connected to the portfolio management level. This
includes all steps and stages until projects are delivered, and benefits to the organization are
realized.
Following is a brief discussion of the top ten portfolio management themes, along with pertinent
checklists that can act as a guide to understanding and implementing portfolio management.
This will be followed by a larger discussion and a more comprehensive checklist with a focus on
selecting the right project or group of projects to implement.
1. Strategic Alignment:
Strategic alignment is the cornerstone of effective portfolio management in construction. It
involves clearly defining and communicating the organization's construction-related strategic
objectives, regularly assessing the portfolio to ensure alignment with these goals, and establishing
a process for updating the portfolio to reflect evolving strategies. The communication of these
strategic objectives to all stakeholders is essential, as is ensuring that project selection aligns with
these strategic goals. Monitoring demand and technological changes in the construction industry is
also crucial, along with aligning construction project budgets with the organization's objectives.

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Furthermore, the incorporation of environmental and sustainability goals is increasingly significant

in construction, and regular reviews and updates of the strategic plan ensure ongoing alignment.

Checklist Item Status

Define clear construction-related strategic objectives. []

Regularly assess portfolio alignment with objectives. []

Establish a process for updating the portfolio. []

Communicate strategic objectives to all stakeholders. []

Ensure project selection aligns with strategic goals. []

Continuously monitor changes in the construction industry. []

Engage key stakeholders in strategic discussions. []

Align construction project budgets with objectives. []

Incorporate environmental and sustainability goals. []

Regularly review and update the strategic plan. []

2. Selection and Prioritization:

A well-defined project and program selection process is crucial in construction. It should consider
criteria such as potential value, risk, and strategic fit to prioritize construction initiatives. Regular
evaluation of the construction portfolio helps maintain alignment with changing construction
priorities, ensuring that resources are channeled into projects with the highest construction
significance and potential benefits.

Checklist Item Status

Define project selection criteria specific to construction. []

Prioritize projects based on value, risk, and strategic fit. []

Establish a project ranking mechanism. []

Consider regulatory compliance in project selection. []

Evaluate project complexity and resource requirements. []

Monitor market trends influencing project priorities. []

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Checklist Item Status

Collaborate with key stakeholders in project ranking. []

Align project priorities with funding availability. []

Continuously assess and adjust project rankings. []

Document and communicate project selection criteria. []

3. Resource Optimization:
Efficiently allocating and managing construction resources, including labor, equipment, and
materials, is a critical aspect of portfolio management in construction. The objective is to distribute
construction resources to support the most critical projects and initiatives while taking into account
resource constraints and availability within the construction sector.

Checklist Item Status

Allocate construction resources efficiently. []

Balance resource allocation for key projects. []

Consider resource constraints and availability. []

Align workforce with project skill requirements. []

Evaluate the impact of resource fluctuations. []

Monitor resource utilization and productivity. []

Implement technology for resource management. []

Continuously adapt resource allocation strategies. []

Optimize equipment and material procurement. []

Consider outsourcing options when needed. []

4. Risk Management:
Managing construction-related risks is fundamental to safeguarding strategic construction
objectives. Continuously assess and mitigate risks associated with construction projects within the
portfolio. Implement risk management strategies specific to construction, and regularly monitor
and update risk assessments to adapt to changing construction circumstances and minimize

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potential disruptions. It's important to note that risk management is a dynamic process, with new
risks emerging and previously identified risks evolving or disappearing over time.

Checklist Item Status

Continuously assess construction project risks. []

Implement risk management strategies for each project. []

Regularly update and communicate risk assessments. []

Consider regulatory and safety-related risks. []

Monitor external factors affecting construction risks. []

Evaluate potential supply chain disruptions. []

Train project teams in risk identification and mitigation. []

Maintain a risk register for each construction project. []

Establish contingency plans for high-impact risks. []

Document lessons learned from past risk management. []

5. Performance Monitoring and Reporting:

Define construction-specific key performance indicators (KPIs) and metrics to measure the
performance of construction projects. Regularly monitor how each construction project is
progressing against these KPIs and provide construction stakeholders with reports to track
construction project and portfolio performance transparently.

Checklist Item Status

Define construction-specific key performance indicators. []

Regularly monitor project performance against KPIs. []

Provide transparent reporting to stakeholders. []

Track project progress on schedule and budget. []

Evaluate the quality and safety performance of projects. []

Document deviations from performance targets. []

Share performance data with project teams. []

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Checklist Item Status

Use performance data for decision-making and improvement. []

Maintain a performance dashboard for the portfolio. []

Conduct regular performance reviews and post-project evaluations. []

6. Governance and Decision-Making:

Effective governance and decision-making are vital for construction portfolio management. Define
a construction-specific governance structure with clear roles and responsibilities, and establish
decision-making processes and mechanisms specific to the construction sector. Ensure that senior
leadership plays an active role in overseeing construction projects and making decisions that align
with construction goals.

Checklist Item Status

Define construction-specific governance roles and responsibilities. []

Establish mechanisms for decision-making and conflict resolution. []

Ensure senior leadership's active involvement in construction oversight. []

Maintain a clear hierarchy of authority in construction management. []

Implement a construction-specific project review process. []

Consider input from cross-functional construction teams. []

Address regulatory and compliance issues in decision-making. []

Foster a culture of collaboration and knowledge sharing. []

Encourage open communication between construction stakeholders. []

Document governance processes and decisions. []

7. Benefits Realization:
Identify expected benefits for each construction project and develop a benefits realization plan for
each project. Monitor progress towards benefits realization, assess the impact of construction
projects on stakeholders, and adjust projects to ensure the achievement of benefits. Document and
communicate realized benefits, maintain a benefits register for the portfolio, and evaluate the

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alignment of benefits with strategic goals. Use benefits realization data for future project planning
and continuously improve benefits realization processes.

Checklist Item Status

Identify expected benefits for each construction project. []

Develop a benefits realization plan for each project. []

Monitor progress towards benefits realization. []

Assess the impact of construction projects on stakeholders. []

Adjust projects to ensure the achievement of benefits. []

Document and communicate realized benefits. []

Maintain a benefits register for the portfolio. []

Evaluate the alignment of benefits with strategic goals. []

Use benefits realization data for future project planning. []

Continuously improve benefits realization processes. []

8. Change Management:
Address cultural and change management challenges specific to the construction industry,
communicate the rationale and benefits of portfolio management in construction, and implement
construction-specific training and change management programs. Encourage stakeholder
engagement in the change process, recognize and celebrate successful change initiatives, and
foster a culture of adaptability and continuous improvement. Solicit feedback from construction
teams on change efforts, assess the impact of change on construction project outcomes, address
resistance to change through proactive strategies, and document and share lessons learned from
change management.

Checklist Item Status

Address cultural and change management challenges specific to construction. []

Communicate the rationale and benefits of portfolio management in construction. []

Implement construction-specific training and change management programs. []

Encourage stakeholder engagement in the change process. []

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Checklist Item Status

Recognize and celebrate successful change initiatives. []

Foster a culture of adaptability and continuous improvement. []

Solicit feedback from construction teams on change efforts. []

Assess the impact of change on construction project outcomes. []

Address resistance to change through proactive strategies. []

Document and share lessons learned from change management. []

9. Portfolio Review and Adaptation:

Conduct regular construction portfolio reviews to assess the relevance and value of construction
projects. Make necessary adjustments to the construction portfolio to reflect changing construction
priorities and business conditions, ensuring that the construction portfolio remains in line with the
organization's strategic direction and construction objectives. Consider the impact of external
factors on the portfolio, maintain a historical record of portfolio changes, encourage feedback from
construction project teams, evaluate the alignment of the portfolio with changing construction
priorities, incorporate lessons learned from past portfolio adaptations, and continuously update
the strategic plan based on portfolio insights.

Checklist Item Status

Conduct regular construction portfolio reviews. []

Assess the relevance and value of construction projects. []

Make necessary adjustments to the construction portfolio. []

Document the results of portfolio reviews and adaptations. []

Consider the impact of external factors on the portfolio. []

Maintain a historical record of portfolio changes. []

Encourage feedback from construction project teams. []

Evaluate the alignment of the portfolio with changing construction priorities. []

Incorporate lessons learned from past portfolio adaptations. []

Continuously update the strategic plan based on portfolio insights. []

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Checklist Item Status

10. Stakeholder Engagement:

Engaging stakeholders effectively is crucial for the success of construction portfolio management.
Ensure that construction stakeholders are actively involved and their feedback is considered in the
decision-making process. Maintain open communication channels and provide opportunities for
construction teams and key stakeholders to collaborate, share insights, and voice concerns.

Checklist Item Status

Identify and prioritize construction stakeholders. []

Establish communication channels for stakeholder engagement. []

Actively involve stakeholders in the construction portfolio process. []

Collect and consider feedback from construction teams and stakeholders. []

Provide opportunities for collaboration and knowledge sharing. []

Address concerns and issues raised by construction stakeholders. []

Celebrate construction successes with the stakeholder community. []

Share construction portfolio information and progress updates. []

Foster a culture of construction stakeholder involvement. []

Continuously evaluate and improve stakeholder engagement strategies. []

Selecting the Right Projects

The first and most crucial step toward project success is selecting the right project or group of
projects for implementation. Therefore, let's pause here and delve deeper into how to do this in a
systematic and well-structured manner.
The selection process typically involves evaluating several candidate projects that align with the
organization's strategic objectives and choosing the ones that offer the best fit and value. For this
purpose, the following checklist can guide your organization's construction portfolio management
project selection process. It aims to cover the key aspects of the process, but organization
management can add additional attributes and exercise expert judgment as needed.

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The checklist comprises a range of suggested evaluation criteria, along with explanations, and may
include a scoring system for comparing competing projects. Importantly, the checklist provides the
team with the opportunity to think, evaluate, and document the selection process while ensuring
no important decision-making factor is overlooked.

Portfolio Management Checklist with Weighted Scores, Explanations, and Scores for
ROI/PBP/IRR:

Weighted
Criteria Weight Score Score Explanation and Example

This criterion assesses the extent to which the

project aligns with the organization's long-term
strategic goals and contributes to achieving them.
Example: The construction of the new residential
housing development is aligned with our
organization's strategic objectives to expand our real
estate portfolio in suburban areas and cater to the
growing demand for family homes. This alignment is
1. Strategic reflected in our long-term goal of increasing market
Alignment 10 9 90 share in these regions.

Feasibility evaluates the project's technical,

operational, and financial viability, as well as the
presence of risk mitigation plans. Example: The
project feasibility study indicates that the site is
suitable for construction, the financial resources are
secure, and we have comprehensive risk mitigation
plans in place to address potential issues, including
weather-related delays and material price
2. Feasibility 9 8 72 fluctuations.

This element examines the comprehensiveness of

the project budget and the availability of financial
resources. Example: Our project budget has been
meticulously prepared, accounting for land
acquisition, construction materials, labor, permits,
and contingencies. Financial resources are available
3. Budget and Cost through a mix of company capital and loans,
Considerations 8 8 64 ensuring that the project is adequately funded.

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Weighted
Criteria Weight Score Score Explanation and Example

Resource availability evaluates the presence of

essential resources like labor, equipment, and
materials. Example: Skilled labor, construction
equipment, and building materials are readily
available in the local market. The project team has
4. Resource assessed and secured the necessary resources to
Availability 7 8 56 avoid any unexpected delays.

This criterion assesses whether the project's scope

and objectives are clearly defined and if they align
with the organization's strategic goals. Example: The
project's scope and objectives are well-defined in
our project plan. It outlines the construction of 100
single-family homes with specific features to cater
5. Project Scope and to the target demographic. These objectives directly
Objectives 6 8 48 support our strategic goals.

Stakeholder alignment examines the level of support

and alignment among key stakeholders. Example:
Key stakeholders, including the client, local
authorities, and the community, have expressed
strong support for the project. Regular
communication and engagement activities have
6. Stakeholder ensured alignment and minimized potential
Alignment 5 9 45 roadblocks.

This element focuses on compliance with local,

state, and federal regulations, as well as the
resolution of legal or permitting challenges.
Example: The project complies with all local, state,
and federal regulations. The necessary permits have
7. Legal and been obtained, and any potential legal challenges
Regulatory have been addressed through negotiations and legal
Compliance 4 8 32 resolutions.

8. Quality Assurance 3 8 24 Quality assurance and control assess the presence of

and Control processes that ensure the project meets quality
standards. Example: Robust quality assurance and
control processes are in place, including regular

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Weighted
Criteria Weight Score Score Explanation and Example

inspections, material testing, and a documented

quality plan. These processes ensure that
construction meets established quality standards.

This criterion evaluates the effectiveness of resource

and risk management plans, including risk mitigation
strategies. Example: Resource and risk management
plans are well-structured. Resource allocation is
tracked using a resource management system, and
9. Resource and Risk risk mitigation strategies address potential issues,
Management 2 8 16 such as a backup supplier for construction materials.

This project offers unique value because it

capitalizes on a growing housing market in the
suburban area, providing housing options that cater
specifically to the needs of families. It offers
strategic advantages by differentiating our
organization from competitors in this market.
Example: The project offers unique value because it
capitalizes on a growing housing market in the
suburban area, providing housing options that cater
10. Why this project specifically to the needs of families. It offers
and not others? strategic advantages by differentiating our
(Differentiation) 10 8 80 organization from competitors in this market.

The project provides substantial benefits by

increasing our real estate portfolio's size and
diversifying our investment. It aligns with our
mission to provide high-quality housing solutions,
contributing to our long-term growth and
profitability. Example: The project provides
substantial benefits by increasing our real estate
portfolio's size and diversifying our investment. It
aligns with our mission to provide high-quality
11. Why We Should housing solutions, contributing to our long-term
Do It 9 8 72 growth and profitability.

12. Return on 9 9 81 ROI assesses the expected return on investment

Investment (ROI) based on net gains and project costs. A higher score

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Weighted
Criteria Weight Score Score Explanation and Example

indicates a more favorable ROI. Example: If the ROI

is 15%, it means that for every dollar invested,
there's an expected return of $1.15.

The Payback Period (PBP) calculates how long it will

take for the project to recoup its initial investment.
A shorter PBP is generally more favorable. Example:
If the PBP is 2 years, it means the project will
13. Payback Period recover its initial investment within 2 years of
(PBP) 7 8 56 operation.

IRR calculates the project's expected rate of return

based on cash flows. A higher IRR is more favorable.
14. Internal Rate of Example: An IRR of 12% means that the project is
Return (IRR) 8 9 72 expected to generate a 12% return on investment.

Total Weighted
Score (Maximum:
100) 834

Total Weighted
Score as Percentage 83.4%

Total Weighted Score (Maximum: 100): 83.4%, which indicates a satisfactory position as it exceeds
the say Go/No-Go Pass Score of 70, making it a "Go" for further consideration.

==============LIFECYCLE AND OUTLINE REMINDER====================================

The Design-Build Extended Lifecycle

Portfolio Level
Select Project to Implement
Program Level
Select Project for Design-Build Delivery

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Project Level
Procurement
Appoint a Bridging Consultant
Prepare RFP
Appoint a Design-Build Contractor
Prequalification
Bid Preparation
Select the Best Design-Build Solution
Bib Evaluation
Award Design-Build Contract
Appoint a Supervision Consultant
Project Delivery
Initial Phase
Project Charter
Project Scope Statement
Project Management Plan
Agile Management Plan
Design-Build Management Plan
Integration Management Plan
Scope Management Plan
Time Management Plan
Overlapping Design and Construction Activities
Apply Schedule Buffers
Cost Management Plan
Quality Management Plan
Resources Management Plan
Communications Management Plan

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Risk Management Plan

Procurement Management Plan
Stakeholders Management Plan
Claims Management Plan
Financial Management Plan
Safety Management Plan
Environmental Management Plan
Intermediate Phase
IFC Gateway Reviews
Monitor compliance with Performance Criteria
Monitor compliance with Employer Requirements
Monitor achievement of the Design-Build Process
Continues Dispute Resolution
Teaming and Partnering
Final Phase
Validation of Employer Requirements
Lessons Learned

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