Alternative Project Delivery - Texas Water Development Board

Issues Checklist
Design-Build (DB)
In a Design-Build project approach, a DB contractor is generally solicited by an
owner. A DB contractor may include a construction firm, an engineering firm, or be a
true joint venture containing both. In the water industry, DB contractor teams tend to
be led by well-established firms who have chosen to pursue the DB market.
The DB contractor is usually selected through a formal selection process. The owner
may select a contractor based on experience and qualifications only, or on
qualifications and price. The selected vendor team will have overall responsibility for
the development, design, and construction of the facility. As a result, the construction
of the facility is usually initiated before the design is complete. A separate contract
for operation of the facility is generally procured by the owner.
The typical project structure and the relationships of the various parties involved in a
DB project are shown below.
DB Project Structure
Customer
Customer Customer Customer Customer Customer
Bonds
Owner
DB Contractor
Design
Engineer
Contractor
Operator
Payment and
Performance Bond
Insurance for Risk
Mitigation
Design
Equipment &
Technology
Construction
Contractor
Startup / Testing
Operation &
Maintenance
4 Texas Water Development Board Issues Checklist