California Reforms Infrastructure Delivery with Sweeping Design-Build Authorization
Washington, D.C., October 1, 2014
Passage of SB 785 Ensures Design-Build Authority in California for Next Decade
The Design Build Institute of America (DBIA), the only organization that defines, teaches and promotes design-build best practices, celebrated the passage of SB 785 in California. Working in close partnership with AGC of California (co-sponsor of the bill), DBIA and AGC proved the power and importance of joint industry leadership. Passage culminates the longtime industry effort to standardize design-build laws in California, and it is the eighth bill passed in California in the past year expanding design-build authority. SB 785, which was signed by Governor Jerry Brown on Sept. 30, streamlines California design-build laws and provides clarity and increased opportunity for project owners and practitioners.
While design-build was first authorized in California more than 20 years ago, the state legislature went on to pass statutes that included numerous limitations to utilizing design-build project delivery that resulted in many challenges, inconsistencies and confusion. The passage of SB 785 now allows those state and local agencies who were previously authorized under various, different design-build laws to navigate under a single statute with better provisions and including best value selection.
Examples of agencies in California benefiting from the passage of SB 785 for projects in excess of $1,000,000 include:
1. State agencies: Department of General Services and Department of Corrections and Rehabilitation
2. Local agencies:
a) A city, county, or city and county
b) A special district that operates wastewater facilities, solid waste management facilities, water recycling facilities or fire protection facilities
c) Any transit district, included transit district, municipal operator, included municipal operator, any consolidated agency
d) San Diego Unified Port District
e) Sonoma Valley Health Care District and the Marin Healthcare District
Richard Thomas, Director of State/Local Legislative Affairs for DBIA says, “In practical terms, this patchwork of laws was so confusing that agency heads and practitioners would often use a less efficient delivery method, design-bid-build, simply to avoid the legal confusion design-build caused in California. Project managers often wanted to use design-build to deliver higher-quality projects in less time with fewer change-orders, but wading through the myriad regulations simply became too time-consuming.”
“SB 785 changes things for the better,” Thomas continued. “This new law streamlines California’s design-build regulations so that design-build is easy to use. Thanks to this law, it is likely even more of California’s infrastructure will be built using the more efficient design-build project delivery method.”
Design-build project delivery is an integrated approach that offers design and construction services under one contract with a single point of responsibility. Across the country and around the world, the design-build method successfully delivers office buildings, schools, stadiums, transportation and water infrastructure projects with superior results. Benefits include faster delivery, cost savings and better quality than through traditional contracting methods. A single entity decreases owners’ administrative burden and allows them to focus on successfully delivering the project, rather than managing separate contracts. The approach also reduces their risk and results in fewer litigation claims for all parties involved.
Established in 1993, the Design-Build Institute of America (DBIA) is the only organization that defines, teaches and promotes best practices in design-build project delivery. Design-build is an integrated approach that delivers design and construction services under one contract with a single point of responsibility. Owners select design-build to achieve best value while meeting schedule, cost and quality goals. Learn more about design-build and DBIA’s certification and other programs at www.dbia.org.