Honoraria for Design Build Projects

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• Honoraria for Design Build Projects
• Methodology Assessment Matrix

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Honoraria

• Principles for the selection of a Design Builder
• Development of the Honoraria Matrix
• How to use the Honoraria Matrix

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Joint Industry-Government Design-Build Task Force

• Association of Consulting Engineers of Canada
• Canadian Construction Association
• Canadian Design-Build Institute
• Construction Specifications Canada
• Royal Architectural Institute of Canada
• Department of Foreign Affairs and International
  Trade
• Department of National Defence
• Public Works and Government Services Canada
• Defence Construction Canada

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Joint Industry-Government Design-Build Task Force

• Principles for the selection of a Design Builder
• Remuneration
• 50 of a reasonable fee
• Based on complexity of the project and on level
  of detail contained in the Request for Proposal

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Guide for Calculation of Remuneration

• Remuneration estimate of construction cost x
  scope factor x cost factor

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Scope Factor

• Combination of
• Level of detail in the RFP documents
• High
• Medium
• Low
• Complexity of the project
• High
• Medium
• Low

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Scope Factor
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Cost Factor
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Example

• Aquatic Centre with competition pool, wave pool,
  leisure water play area, weight training, and
  exercise room - 32,000,000
• RFP included building program, functional
  relationships and description of intended image
  and character
• Best Value Selection 50 quality/50 price
  requiring a comprehensive proposal

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Example - Scope Factor
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Example - Cost Factor
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Example - Remuneration

• 32,000,000 x 0.006 x 0.872 167,000

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Remuneration

• Guide for the Calculation of Remuneration for
  Design-Build Proposals
• _at_
• www.cdbi.org

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Methodology Assessment Matrix

• Design
• For what project complexity is the delivery
  method best suited
• To what extent must user requirements be defined
  prior to tender
• What level of design quality is
  characteristically achieved with the delivery
  method

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Methodology Assessment Matrix

• Design
• How complex is the design review process for the
  owner
• To what extent can the delivery method
  accommodate scope/design changes during
  construction phase

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Methodology Assessment Matrix

• Design
• To what extent does the delivery method
  inherently minimize changes
• To what degree do the owner and user have direct
  contact with the designer and are they able to
  directly influence the design

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Methodology Assessment Matrix

• Schedule
• To what extent can the delivery method achieve
  accelerated delivery, or ensure delivery to
  specific schedule
• Ability to accommodate early construction start

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Methodology Assessment Matrix

• Cost
• Potential to obtain an early cost commitment
• To what extent does the method accommodate
  adjustments to scope change during construction
  to achieve final costs within budget
• To what ability can the delivery method reduce
  claims/costs for changes and delays

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Methodology Assessment Matrix

• Cost
• Ability to meet cash flow
• To what extent does the method permit the Owner
  to influence systems, materials and construction
  methods to minimize life cycle costs

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Methodology Assessment Matrix

• Contracting
• To what extent is the required design and
  construction experience and knowledge available
  for the method
• Ability to pre-qualify the prime contractor on
  publicly funded projects
• Ability to pre-qualify the prime contractor on
  privately funded projects

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Methodology Assessment Matrix

• Contracting
• Ability to pre-qualify subcontractors
• To what extent does the method employ a simple
  bid evaluation and selection system
• What level of construction quality can be
  achieved with the applicable delivery method

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Methodology Assessment Matrix

• Risk
• To what extent does the method permit the Owner
  to transfer the liability for design errors and
  omissions, delays, construction errors and
  omissions and non conformance to contract
  documents

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Methodology Assessment Matrix

• General
• To what extent do Owners have the experience and
  knowledge required to employ the method
• Market readiness