Risk Factors in Design-Build: Recommendations for Consideration

In many states, the use of design-build for transportation improvement projects has reached maturity. With that experience has come an ongoing dialogue regarding allocation and management of risk. This document intends to facilitate a conversation on this important topic, through a carefully-assembled set of discussion points.

In formulating it, ARTBA’s Construction Forum has utilized insights and experiences from the association’s diverse membership, working closely with leaders and practitioners from multiple divisions. Please note this is a compilation of “recommendations” in that ARTBA urges owners and design-build team members to review and consider the risk factors listed. It should be seen as a resource to help position the team—and project— for success. At the same time, every project, working environment and team are unique to some degree. Therefore, this document is not intended to be prescriptive, nor interpreted as a checklist of ways to allocate risk. Ultimately, the parties need to develop their own solutions to these risk factors.

Risk remains a wide-ranging and long-standing issue in transportation construction. This compilation looks at risk specifically through the lens of “traditional” design-build procurement. Some of the same risk factors may be found in public private partnerships (P3s), progressive design-build and other methods.

This compilation addresses six major risk areas:

1. Proposal/Procurement Approach
2. Unknown Conditions
3. Scope Expectations
4. Schedule
5. Standard of Care (SOC)
6. Liability

In some cases, the recommendations for each major risk item may overlap with others.

ARTBA’s role is not to advocate for the use of design-build or any other particular procurement type. Rather, ARTBA seeks to educate members about experiences with this and other delivery methods, so they can better explore these issues with state and local policymakers. Accordingly, this compilation should not be viewed as an endorsement of design-build itself.

With the passage of the Infrastructure Investment & Jobs Act (IIJA) in Nov. 2021, public owners and the industry face new—and welcome—challenges to effectively utilize record levels of federal investment. We hope these recommendations help inform substantive discussions on design-build’s appropriate role in this collaboration. Moreover, ARTBA will continue to host dialogues on these issues at the national level.