Sec. 14.39.04.07. Design-Build

A. General.

(1) Design-build means a project delivery method in which a single entity is contractually responsible for both design and construction of a project.

(2) The LEA provides sufficient information to the design-build entity to guide it in the design of the project and specifies the reviews and approvals that will be required of the project.

(3) The design-build entity is responsible for the following:

(a) Quality of the design;

(b) Project costs;

(c) Construction quality;

(d) Adherence to the LEA's schedule for project completion and occupancy; and

(e) Other factors the LEA requires.

(4) Design-build may extend beyond the design and construction phases of a project to include:

(a) Financing, in which case the method is called finance-design-build; or

(b) Provision of furniture and equipment, occupant move-in, or other post-construction tasks, except as limited by §A(5) of this regulation.

(5) The design-build entity may not perform the routine maintenance and operation of a school building after occupancy.

B. IAC Approval.

(1) If the LEA decides to use the design-build method, the LEA:

(a) Shall request approval from the IAC or its designee 2 months prior to the release of the solicitation; and

(b) May not proceed with the design-build method until approval is obtained from the IAC or its designee.

(2) The request for approval shall at a minimum include the proposed:

(a) Brief description of the scope of work;

(b) Project phasing;

(c) Schedule for the submission of plans and specifications for review by the IAC or its designee;

(d) Solicitation schedule;

(e) Procurement method;

(f) Financing arrangement, if applicable; and

(g) Performance expectations.

(3) The LEA shall acknowledge in the request for approval that the State is not responsible for any project cost overruns.

(4) The LEA shall send the draft design-build solicitation to the IAC or its designee for approval not later than 1 month before it is released to bidders.

(5) Authorization by the IAC or its designee to proceed with the design-build method is independent of approvals of project planning and funding. If the IAC or its designee authorizes the use of the design-build method but project planning is not approved, the project may proceed as a locally funded project.

C. Design-Build Procurement.

(1) The LEA may develop a design-build solicitation based on:

(a) Performance specification;

(b) Performance specification combined with concept or schematic design; or

(c) Performance specification combined with the LEA's prototype design.

(2) The performance specification shall include at a minimum:

(a) Educational specifications;

(b) Performance characteristics of the school facility;

(c) A schedule for completion and occupancy; and

(d) General conditions that clearly describe the respective responsibilities of the LEA and the design-build entity.

D. State Reimbursement.

(1) If the LEA intends to seek State reimbursement, the LEA shall distinguish between preconstruction and construction scopes of work to allow the IAC or its designee to determine the costs that are eligible for State reimbursement.

(2) The State's maximum participation in the project is calculated when:

(a) The construction documents are complete; and

(b) The full scope of the project is known including ineligible items.

(3) Allowable preconstruction services, as determined by the IAC, shall be included in total construction cost.

(4) Final adjustment of the State's participation shall be made at project closeout.

(5) Total State reimbursement of eligible costs may not exceed the lesser of:

(a) The State's share of the guaranteed maximum price based on the cost-share formula; or

(b) The maximum State construction allocation.