Design Excellence/Design Build—An International Conference

September 27–29, 2007
RIBA Headquarters
London, U.K.

Sponsors

AIA UK
AIA Design-Build
AIA International Committee


Cosponsors

BST Global
Design-Build Institute of America


Supporting Organizations

Royal Institute of British Architects
Royal Institute of Architects of Ireland
European Construction Industry Federation
The Canadian Design-Build Institute
The Institution of Structural Engineers


Program with Presentations and Speaker Biographies (PDF, 1.52 MB)


Resources

RIBA study: "Constructive Change: A Strategic Industry Study into the Future of the Architects' Profession"
RIBA position paper: "Smart PFI" (PDF, 238 KB)


Podcast

Design-Build in the U.S. and the UK
Want to know more about alternative project delivery in the United Kingdom? In this podcast, Bill Quatman, FAIA, 2007 chair of the AIA Design-Build Knowledge Community, interviews British architect and author Andrew Thomas, RIBA. The podcast was created in conjunction with the joint AIA- and DBIA-sponsored international conference, “Design Excellence/Design-Build,” held September 27–29, 2007, in London. Thomas is the author of Design-Build: Architecture in Practice (Wiley, 2006), which focuses on design-build delivery in the United Kingdom.
Bios of Quatman and Thomas

To hear the podcast as an mp3 file, click on the title above. It is also available as a free podcast on iTunes. For more information, see the AIA PodNet page, which lists all programs in the AIA Architecture Review Podcast Series.

AIA’s First International Design-Build Conference
London, U.K., September 27–29, 2007
by William Carpenter, FAIA

Two AIA committees and one component joined with the Design-Build Institute of America (DBIA) to sponsor the first-ever international design-build conference. AIA’s International Committee, chaired by Harold Adams, FAIA; AIA’s Design-Build Knowledge Community (DBKC), chaired by Bill Quatman, FAIA; and AIA UK, chaired by Kevin Flanagan, AIA, teamed up to host this conference after a full year of planning and endorsement from the Institute. AIA’s International Director, Michael Lischer, AIA, assisted as conference cochair and the group assembled a “who’s who” of international architects and industry leaders to discuss and debate the growth of design-build in the international marketplace.

The House of Parliament and the Big Ben tower set the stage for the first-ever international design-build conference, held in London, U.K., September 27–29, 2007. Photo: G. William Quatman

Design Excellence/Design-Build: An International Conference was held at the headquarters of the Royal Institute of British Architects (RIBA) at 66 Portland Place in London’s historic Regent’s Park neighborhood. The program included 13 seminars held over two days, plus evening receptions, followed by two tours of London’s newest design-build projects. More than 100 attendees came from 17 countries around the globe, including Belgium, Canada, the Czech Republic, Germany, Greece, France, Ireland, Italy, the Netherlands, Nigeria, Portugal, Trinidad and Tobago, the United Arab Emirates, the United Kingdom, the United States, and even a representative from Mauritius, an island off the coast of Africa in the southwest Indian Ocean. All came for the same reason: to learn more about design-build and the architect’s rapidly changing role in the global construction market.

Corporate sponsorship for the conference was provided by DBIA, BST Global, Lutron, McGraw-Hill, Grace, and Woods Bagot. Conference topics included education of students in the United States and United Kingdom on the design-build method of delivery, legal risks and financial hurdles on both sides of the Atlantic, public-private partnerships, international design-build competitions, and panel discussions on the pros and cons of design-build addressing a wide variety of perspectives. The concept of architect-led design-build seemed to resonate with speakers at most sessions, with some embracing the concept while others steered clear for reasons of risk, culture, or legalities.

The theater at RIBA’s headquarters was a perfect forum for this international conference. Photo: G. William Quatman

The U.K. Market

In the United Kingdom, as in the United States, there has been an increased use of design-build (also called engineer procure construct [EPC], design and build, or private finance initiative [PFI]). A 2005 RIBA report found that alternative project delivery represented more than 60 percent of the U.K. market. The University of Reading reported that design-build emerged within the U.K. building industry during the 1970s and early 1980s to provide a greater degree of certainty for clients who wanted an integrated form of project delivery, to overcome cost and time overruns and reduce costly claims and possible litigation. These are the same concerns that have driven design-build in the United States. By 1998, less than 40 percent of construction in the United Kingdom was procured by the “traditional” method, a sharp decline from 70 percent in the mid-1980s. RIBA found that “The use of these alternative methods, in particular design and build, has now consolidated and is almost universal in some sections.” RIBA asks “What Can I Do?” and answers “Get Involved!” in its position statement Architects and the Changing Construction Industry. So it was fitting that this conference was held in London, at RIBA headquarters, where attendees learned how to “get involved” in design-build delivery.

Day One: September 27

Conference Opening and Welcome

Harold Adams, former chancellor of the AIA College of Fellows, welcomed the 117 attendees on behalf of the AIA International Committee and commented on what a landmark this was for DBIA and AIA to join with the RIBA to sponsor this world-class event. Bill Quatman, FAIA, added to Adams’ welcome on behalf of the 8,500 members of the AIA’s DBKC, noting that the current AIA Board Position on Alternative Project Delivery, Policy Statement No. 26, is that “an architect is most qualified to lead alternative project delivery teams….[and] architects should be retained in that role regardless of which delivery method is used.” He challenged the audience to think about that concept, with a promise that the speakers would discuss the architect’s role in design-build, whether as the leader of the process, a teammate, or a subcontractor. Michael Lischer, AIA, followed the welcome with a promise that the conference would be an open discussion of the issues, from “both sides of the pond.” The conference then began.

AIA International Committee Chairman Harold Adams welcomes the audience to the first-ever international conference on design-build. Photo: G. William Quatman

Opening Keynote Presentation: Design Excellence, Design, and Build for Quality Cities—A Sustainable Model for the Future of Our Cities
Moderator: Kevin P. Flanagan, AIA, AFFL, RIBA

Following the introduction and welcome from his cohost, AIA UK President Kevin P. Flanagan, senior associate partner of Kohn Pedersen Fox (KPF) Associates (International), PA, showcased KPF’s design-build work throughout Europe, touching on new international work. London has recently emerged as the world’s premier financial center; it is also the home of complex contractual mechanisms reflecting the need to address the complex regeneration of aging infrastructure and transport of scale. Projects like the Victoria Station/Transport Redevelopment require enormous amounts of time and resources, and a broad range of expertise to realize scenarios of optimal value with manageable risk. Traditional contracts have been found to be inadequate for projects of this scale and clients are tending towards "flexibility" in contract forms, and back-to-back contracts. Many of these are based on performance and are broadly contractor-led; as in modified design-build contracts, with the architect novated; or acting in a leadership role at certain phases. Other KPF projects representing a range of contracts (PFI, public-private partnerships [PPP], design and build team approach with transparency) include the highly successful and recently completed River City Prague (in the Czech Republic) project/master plan, the De Hoftoren Ministry Headquarters in the Hague, Netherlands, and the Provincial Parliament, also in The Hague. As a measure of success the first two recently won Urban Land Institute awards for best office building design/performance, all three projects were procured using a modified version of traditional contracts.

General Seminar 1: AIA, DBIA, RIBA President’s Roundtable
Moderator: Bill Quatman, FAIA, Esq.

The three chief officers of three leading organizations—the presidents of AIA, DBIA, and RIBA—were assembled to respond and debate the architect’s changing role. Moderator Bill Quatman began by commenting that design-build is rapidly growing in the United States and the United Kingdom. Many architects are concerned that their role is being reduced to that of a “subcontractor” and a mere commodity. Others see this as an opportunity to work as a team and improve project relations and communication. Some even want to take on the lead role. Quatman invited the panel members—architects who are leading three of the world’s most prominent organizations—to comment on architects’ different reactions to design-build.

The President’s Roundtable session featured AIA President RK Stewart; DBIA Chair Rebekah Gladson; and RIBA President Sunand Prasad. The session was moderated by Bill Quatman. Photo: G. William Quatman

Quatman asked candidly, “Is it realistic to encourage architects to take the lead role in design-build? Or to suggest to owners that they should hire an architect as prime contractor?” Sunand Prasad, RIBA, president of RIBA, was impressed that some architects in the United States have formed design-build firms to hold the lead contract. “That is unheard of in the [United Kingdom],” he said. “We could learn a lot from what you are doing in America.” He urged further dialogue with the AIA and RIBA on best practices in architect-led design-build. “I would like to see some case studies from the [United States] on how architects have successfully led design-build projects.”

“Clients want more predictability in outcomes,” said AIA President RK Stewart, FAIA, “and that is part of the reason they are drawn to design-build.” DBIA’s current chair, Rebekah G. Gladson, AIA, agreed with Stewart, adding, “Owners are the ones driving the increased use of design-build due to their need for more reliable cost estimates and schedules.” Gladson spoke from her experience as the current associate vice chancellor and campus architect for the University of California-Irvine. She oversees more than $1.3 billion of construction on campus, much of which is being delivered via design-build. She challenged architects by saying, “This is a time to be leaders.”

AIA DBKC Chair Bill Quatman, RIBA President Sunand Prasad, and DBIA President Walker Lee Evey chat prior to the start of the conference, sponsored by all three organizations. Photo: G. William Quatman

Prasad felt that perhaps the biggest draw toward design-build was “single-point responsibility.” He commented that in the United Kingdom architects have abandoned project management over time. “We gave away our power,” he said, “first over costs, and then over project management, now even site safety,” and the contractors stepped in to offer those services. As to the concept of architects in the lead role, Prasad said that, “nobody else is as well qualified as an architect,” due to their education and training.

Quatman asked the panel that if design-build is where we see the profession to be headed, what should educators be teaching today to prepare architects for tomorrow? AIA’s Stewart responded, “We need to change education for many reasons.” Sustainability and business issues should be part of architectural education, he said. Gladson agreed, noting that the University of California-Berkley was discussing this very topic. “New skill sets are needed just to be employable today,” she observed. “These new graduates need to know how to lead a team,” not just how to design a project. Prasad added, “I am amazed how architectural students can go through five years of college and never have to design to a budget!”

“We need to raise our game,” said Gladson, who encouraged the use of new tools like building information modeling (BIM) and integrated practice models. She also stressed the importance of developing skills like talking to the owners about financing. Gladson said that to be a leader, architects need to obtain education that might not have been a part of traditional architectural education. She emphasized the importance of classes in finance and accounting, which provide the ability to “speak the language” of the client. She feels that architects involved in design-build need to understand the risks of being in the lead role. “We can learn to be leaders,” she said, “but the future architecture school will need to emphasize teaming and business, with more interdisciplinary studies.” Gladson emphasized the importance of encouraging the team approach in the schools, which will reflect the reality of the marketplace upon graduation.

Prasad observed that the fragmentation of the construction process was an anomaly. “No other industry does that,” he said, adding that this approach to delivering an end product was “backwardness.” In 1834, when RIBA was founded, everyone wanted the high ground of the project. Then construction spun off as separate from design. “Now, it’s coming together again….and that’s great!” he concluded. But for architects not ready to take on the lead role of design-builder, he recommended that they consider “align-build.” “Team with a contractor who values design.” In the United Kingdom as in the United States, “value engineering takes off a lot after the building has been designed; so it is better to have the construction firm involved during design—especially a contractor who values design, not just cost.”

Finally, the panel addressed the issue of risk, which has kept many architects from considering the lead role in design-build. “Architects need to have some skin in the game,” said Gladson, “but most architects don’t want to be in that risk position.” Stewart wondered if owners would be willing to compensate architects for taking on that risk. Prasad agreed that in the United Kingdom the issue of risk has inhibited British architects from taking the lead. In addition, he noted that until the early 1900s an architect could not be an officer of a construction company. Contractors would love the architect to take the lead role, he felt, “and coordinate the design process.” He added that, “Some contractors have to hire an outside consultant just to do that!” This is a big opportunity for architects to take on that leadership role in the United Kingdom, via design-build. Gladson noted that a lot of general contractors are hiring in-house architects to manage the design process of their subcontractors and consultants. “Architects need to regain that role!”

AIA President RK Stewart participates in a panel discussion involving the national presidents of AIA, DBIA, and RIBA on how design-build has changed the role of the architect globally. Photo: G. William Quatman

Prasad made a candid admission that “Architects in the [United States] seem to be more entrepreneurial and run their offices like a business.” Gladson observed that buildings used to be much simpler and today are much more complex, such as medical research facilities. Stewart felt that in today’s market, “it’s all about team effort. An architect provides information that somebody else uses in building.” As to who should lead that process, Stewart felt it was a matter of “situational leadership,” as in “who is best to lead each aspect.”

General Seminar 2: Panel Discussion—Design-Build from All Sides of the Table
Moderator: Walker Lee Evey, DBIA

DBIA President Walker Lee Evey served as moderator for this panel, made up of U.K. construction industry leaders. Lee Evey said that DBIA was proud to cosponsor this program with the AIA, adding that, “With design-build burgeoning in Europe it seems appropriate—almost obligatory—for both of our organizations to prepare to take an active role in leading this effort. Given that our collaborations in recent years have proven to bring mutual benefit, we look forward to an open dialogue with regards to the future of this event and how we could join with your efforts.”

Speakers from the session Design-Build from All Sides of the Table include moderator Walker Lee Evey, Mike Hussey, Stephan Reinke, and Paul Broomer. Photo: G. William Quatman

The panel kicked off with Mike Hussey, who spoke from the owner’s side as managing director of developer Land Securities. Hussey was encouraged by the concept of the architect taking a more active role in the design-build process and said, candidly, he wished architects were more involved. “Design integrity is important to the U.K. owner,” he said. “We need a good design to start with.”

Stephan Reinke, FAIA, RIBA, managing director/Europe for Woods Bagot, spoke for the architectural profession and said that the best way for architects to learn design-build skills is by being on the site, adding, “But we can’t put all our architects on-site because we have more architects than we have sites.” As to the benefit of early contractor involvement in the design process, Reinke noted, “Early value management is what we need, not late value engineering.”

Representing the contractor’s perspective on the panel was Paul Broomer, RIBA, of Carillion PLC, a large U.K. construction firm. He made his views crystal clear when he said, “Design-build is here to stay.” He agreed that contractors need to value the design component for the process to succeed. “We need a covenant at the outset to protect design integrity.”

Hussey’s company, Land Securities, is a London developer that owns about five percent of the city. “Contractors’ risk margins are too high,” he noted, “a contract is an allocation of risk.” But no matter who is in the lead role, “relationships drive value and success.” As to value engineering late in the process, he said, “Delay does not pay.” His firm is passionate about the end user and he stated that relationships drive success. The key to their work is to design well, to the highest possible standard. Hussey stated that there is a “modal shift” in that design is now valued.

Architect-turned-contractor Broomer stated that, “we are going backwards,” in many ways compared to the traditional method of design-bid-build. “Architects don’t like to be managed,” he felt. However, budget is a big issue for them as well as for contractors and cost plans and parameters must be developed to be reliable.

Lee Evey stated that contracts should not assume you will fail. “There need to be more contract clauses that address success, not failure, and how to work together as a team.” He felt that too often there is no information about success, and the idea that we will treat each other as positive business partners. He encouraged attendees to simplify their contracts. “Incentive provisions or rewards are needed.” Addressing the label “subcontractor” that architects do not like to hear when working under a design-builder, Lee Evey suggested the title of “specialty contractor” instead.

DBIA President Walker Lee Evey challenges the audience to think about the global impact of design-build, and the potential to deliver more efficient projects, in less time and within budget. Photo: G. William Quatman

Lee Evey spoke on the reconstruction of the Pentagon after its destruction on September 11, 2001, by terrorist attack. He reported that just prior to the attack; the wedge of the Pentagon had just been renovated using the traditional method. However, in the reconstruction the U.S. government used design-build. “It was a perfect opportunity to compare the two methods on the very same project!” The results? The U.S. government saved $241 million on the design-build version, completing the work in just one year, instead of three. “It was almost a laboratory study of the same project done two different ways.” Lee Evey confirmed that in the United States, design-build is growing rapidly; in fact, about 50 percent of all U.S. construction dollars are spent on design-build projects.

Reception

The first day was capped by a reception on the second floor of RIBA headquarters, where attendees from all over the world had the opportunity to talk one-on-one with the speakers, network, and discuss the status of design-build in their different countries.

Attendees discuss the topic of design-build during one of the refreshment and networking breaks held at RIBA Headquarters. Photo: G. William Quatman

Day Two: September 28

Keynote Address: Graham Stirk, RIBA, Rogers Stirk Harbor & Partners

The second day began with a stirring presentation by Graham Stirk, a partner with London’s award-winning firm Rogers Stirk Harbour + Partners (formerly the Richard Rogers Partnership). Stirk presented his firm’s design-build work, noting that they normally start off with a direct-design contract with the owner and are then “novated” to the construction firm. In the United Kingdom, novation is the process by which the design firm starts off under contract to the project owner up to a certain level of design; then the architect’s contract is assigned to the construction firm and the architect completes the project working for the contractor. He said his firm sometimes declines to be novated, but that in the United Kingdom novation is the more common approach to design-build.

AIA UK President Kevin P. Flanagan asks questions of Graham Stirk of Rogers Stirk Harbour + Partners of London on his firm’s design-build experience. AIA International Director Michael Lischer listens. Photo: G. William Quatman

Stirk discussed quality of design, noting that it is a subjective topic. He presented a CGI image translation which he used as a catalyst for conceptual clarity. He discussed the city and context. He asked “How does a building meet the ground?” and followed up with “not all are user-centric.” He focused on the idea of giving something back, referencing Louis Kahn’s idea of served versus servant. He spoke about energy focusing on orientation, façade, and controls; and about giving manners to supertankers—cities and streets. He touched on design-build saying that there is a level of mutual respect but there is also a lot of risk involved. He mentioned diamond-white glass. He talked about maintaining a sharp focus on budgeting and tailoring your judgment. He spoke about beautiful entities and the humane scale and about the active façade system, Permastelisa. He focused on the importance of engineer involvement, using a cassette-like approach with mockups, as in 1 Hyde Park, which was very expensive.

Stirk addressed a topic that had been mentioned by other panels during the conference: risk. He said that the risk involved in design-build is an issue, but it is important for the architect to remain involved. “At what point do you stop designing?” he asked the audience.

General Seminar 3: Architects As Leaders
Moderator: Harold Adams, FAIA, RIBA

Harold Adams is chairman emeritus of RTKL, with offices in the United States and the United Kingdom. He challenged architects to take back their role as project leaders, and in their communities. Adams is the first architect to serve as chairman of the DBIA and grew RTKL under his 34 years of leadership to 14 offices and a reputation for outstanding design work. He found himself the architect to the Kennedy family early in his career, and was project architect of the John F. Kennedy gravesite at Arlington Cemetery. “I was the first architect to design an eternal flame,” he said with a smile, “and now I get calls from people all over the world asking how it is done!” He was the personal advisor to President and Mrs. Kennedy on several projects. He learned early in his career that large contractors used to bid the project with a “team of lawyers” looking for loopholes and ways to get change orders. “That was a broken system,” he said. Design-build provides a way for the owner to get more reliable costs and fewer change orders. In the 1970s RTKL took a different path. Only some projects worked, and there were problems between design and the construction process. The goal was to deliver a project where design and build reside in one entity.

Harold Adams speaks on how architects can take back their leadership role through design-build, and on the importance of architects leading the process. Photo: G. William Quatman

Adams listed the pros and cons of design-build, noting that the positives include single-point responsibility, speed of delivery, guaranteed maximum pricing (GMP) (adding “owners love this!”), better risk management, and change order reduction. The downside of design-build includes lack of control over design, developing trust, and equitable sharing of risk and reward. He cautioned that “Project delivery and speed can sometimes trump design.” He confirmed the fact that design-build was growing in the public sector, saying that, “the [U.S. General Services Administration] loves design-build” and is moving almost exclusively to that process. Architects today have a decision to make on where their firm is headed, and according to Adams design-build provides a way to show leadership once again.

General Seminar 4: Andrew Thomas, RIBA, Author of Design-Build (Architecture in Practice)

Andrew M. Thomas, author of the new book Design-Build (Architecture in Practice) (John Wiley & Sons), talked about his motivation for writing a book about design-build in the United Kingdom—because nothing on the subject had been published to date! Thomas is a senior design manager for the London and South-East region of Laing O'Rourke, U.K. contractors. Until recently he was a senior design manager with Carillion Building. During his career in architecture, he has amassed more than 25 years of experience in the construction industry. A self-described “true believer” in design-build, Thomas showed a strong working knowledge of project management, particularly in design-build, which he has gained through his role as a design/project architect, an assessor of quality management systems, and the application of his design management role. He has experience in traditional design and construction, and sees great value in the combined process.

His book showcases how great design can be accomplished through design-build, breaking the myth perpetuated by some that the process can only produce marginal design. “In the [United Kingdom], design-build has been here since the mid-70s,” he noted. “Generally, little prestige is given to design-build contracts, with a feeling in architectural circles that ‘quality’ cannot be achieved by using a design-build form of procurement.” Chris Wilkinson, RIBA, Hon. FAIA, of Wilkinson Eyre Architects, challenged Thomas on his opinion that quality of design can be achieved through design-build. Thomas held his ground, noting the many examples in his book show that great design is being accomplished in the United Kingdom and abroad via design-build. “There are now many examples of superb buildings procured in this manner,” Thomas responded.

General Seminar 5: Panel Discussion—Architects Speak Up About Design-Build
Moderator: Robert Ivy, FAIA

Architectural Record Editor-in-Chief Robert Ivy acted as moderator, but first gave his own views on the changes in the industry and in the architectural profession. Ivy began speaking about increasing efficiencies like time, talent, and shifting responsibilities.

Architectural Record Editor-in-Chief Robert Ivy moderates an international panel of architects from the United Kingdom, the European Union, and the United States on design-build and its impact on the architectural profession. Photo: G. William Quatman

Brad S. Buchanan, FAIA, of Denver’s fast-growing design-build firm Buchanan Yonushewski Group, LLC, told how he was so excited as a young architectural student and enjoyed that “Wow” moment of design. He still gets that buzz all these years later by leading the design-build process in his firm, an architect-led design and construction firm. Buchanan told the audience that now is the time for architects to take back lost ground, by taking control of the process of project delivery. His firm contracts with its clients for a full range of services, including project analysis, site selection, financing, design, construction, and postoccupancy services. “Whatever the client needs, we try to deliver,” Buchanan said. He challenged the attendees to “learn the language of project finance,” adding that “If you cannot talk the language, you don’t have a seat at the table.” By educating yourself on project financing, an architect can better understand the client’s needs and can better meet those needs to have a return on its investment.

Disagreeing with Buchanan was Wilkinson, who stated that his firm “is against design and build,” adding that the process “is clearly flawed and does nothing for architecture.” Today he sees trade subcontractors as lessening the architect’s role by taking pieces of design away. He emphasized that, “We, as architects, are putting the environment together, which is something worth caring about.” He made no attempt to hide his disdain for the design-build movement, which he felt was a threat to architects and to architecture and the wrong way for the industry to move.

Buchanan gave a rebuttal to Wilkinson’s comments, saying he strongly disagreed. Buchanan characterized himself as an optimist who figured out how to integrate design and build into one firm to achieve better design in the process. “The idea is to vertically integrate the disciplines.” He stated that this is what the community wants and he emphasized focusing on what works. Buchanan has taken design-build to a whole new level in his midsized Denver architectural firm; he proclaimed “Our motto is ‘think like an owner,’ which carries through every decision we make”. Buchanan provided insight on how to develop an integrated single-source project delivery system, design, and construction services, as well as a system of designing, value engineering, managing, building, and developing that produces the greatest value for project owners. He mentioned that architects show leadership by expanding their role in the project beyond design, even beyond design-build, by “thinking like an owner,” and providing a full array of services to their clients, including “being” the client.

Karl Hartnack, AIA, president of AIA Continental Europe, described how his practice in Düsseldorf, Germany involves acting as owner’s representative in design-build project delivery. His firm, Hartnack Architekten + Projektsteuerer, helps owners to select the design and construction team and then manages the process for the owner. Hartnack stated that, “Everything is about money and that there is not a lot of talk about design.” He emphasized the importance of “cost transparency” and helping in selection and cost-estimating programs. He warned that when a general contractor prepares construction documents in design-build, “they will not be as extensive.”

“Can you get quality?” asked Wilkinson. As to the proposed concept of “align-build” and cooperation through teaming, Wilkinson said, “It is possible, but not probable.” Buchanan replied, “The truth is about integrity and culture.” Ivy asked, “Is design and build going to emerge in the [United Kingdom]?” Wilkinson shot back quickly, “Construction management will emerge as dominant.” Not all panelists agreed, but the discussion was lively, controversial and timely—just what the audience paid to hear.

General Seminar 6: Panel Discussion—Public Finance Initiative in the United Kingdom
Moderator: Stephen Andrews, RIBA, Canary Wharf Group

The panel discussed two modes of design-build that have been promoted by the U.K. government in recent years, PFI and PPP, processes endorsed by the United Kingdom’s Office of Government Commerce (OGC). The process is not without its critics, and our panel discussed the good and bad of these systems in the United Kingdom. Panelists included Andy Carty, chief operating officer for Partnerships UK; Dave Scott, a design manager with John Laing, a U.K.-based infrastructure investment company, with 36 years of experience in the construction industry; and Kevin Donnelly, an architect with more than 30 years of experience, including use of PFI. The program was moderated by Stephen Andrews, a design executive with the Canary Wharf Group. Andrews was previously a principal in Gensler’s London office.

Scott is a fan of design-build. He said, “It’s like a private-public partnership.” Like Hussey, he welcomes design leadership by the architect and said that the strength of the architect is essential. He emphasized the importance of sustainable development and being aware of what we do to the environment. “This is a huge opportunity,” he said, “and we must consider cost of ownership with a degree of certainty, and we must represent the long-term value.”

Carty is a driver for change. His company works with government investors and is half publicly owned, half privately owned. Donnelly is a social housing architect who became a client. He has worked on many schools and many PFI projects. His company designs, builds, operates, and manages. He emphasized the importance of funding. He agreed with those who call the competitive design-build process “flawed.” “If there are three sets of designs submitted and only one is selected, then there are two that are wasted.” He continued by saying that when you do a cost comparison, it is skewed toward PFI from the public owner’s viewpoint, since the private developer funds the up-front costs and the public owner pays it back over time. “The key is to risk transfer,” he concluded, which is driving public owners toward alternative financing like PFI.

General Seminar 7: The RIBA White Papers Constructive Changes and Client Concept Design Model
Moderator: Jack Pringle, RIBA

Jack Pringle, of London’s Pringle Brandon firm, gave an overview of the RIBA’s research into design-build and PFI in the United Kingdom. In 2005, the RIBA asked its members to rank “Drivers for Change in the Last Decade.” The number-one reported factor was “new procurement methods—Design & Build.” RIBA’s recent report, Constructive Change, recommends that if architects are committed to giving the “best value” to their clients (owners and future users), they “must improve greatly the coherence of the industry—to build more effective teams, which will require better interfaces between members of the whole supply chain, and very probably some fusion of its parts.” The report continued, “The key improvement to pursue at present lies in the interface between designers and constructors.” Pringle showed diagrams of the PFI process, and compared traditional delivery methods with design-build to show how the process is streamlined.

Jack Pringle's presentation on the PFI process as used in the United Kingdom to deliver public/private joint ventures, a form of design-build that has caught on in that nation. Photo: G. William Quatman

Breakout Seminar 8: International Design-Build Competitions
Moderators: Randy Dhar, OAA/PP, FRAIC, Public Works &Government Services Canada and Bill Quatman, FAIA, Esq., Shughart Thomson & Kilroy, P.C.

The first of three “breakout” sessions was a joint presentation by two architects experienced in international design-build competitions. Randy Dhar, a former chair of the AIA’s DBKC, presented a historical perspective on the architect’s role of “master builder,” and showed how that changed over time. His copresenter, Bill Quatman, the current AIA DBKC chair, underscored that theme by discussing the competition to build the great dome at Santa Maria del Fiore in Florence, Italy, held in the 1400s. Quatman said that the competition, won by Filippo Brunelleschi, was perhaps the first recorded public design-build competition.

Dhar shared his experience working with Canada’s Public Works & Government Services in running design-build competitions. Quatman talked about the two-phase selection process used by the U.S. government and many state and local entities. In the first phase, design-build teams are shortlisted based on qualifications only, with no consideration of price. In phase two, the teams submit designs and cost. “The team that represents the best value to the owner is the one selected,” he added. That may not be the lowest price team, but the one that overall presents the best cost and quality combination.

Quatman talked about the difficulty in doing public design-build in the United States, due to outdated laws that only accommodate the design-bid-build method. “But today, 47 states in the [United States] have passed some legislation that permits design-build in some form. That is what is driving the increased numbers in design-build nationally.” Dhar added that in Canada a major issue is the payment of stipends to the unsuccessful proposers. “It is very costly to prepare a design in a competition sufficient for the contractor to give a firm price,” he noted. For that reason, it is important for the public owner to pay an honorarium to the submitters not chosen from the short list, to encourage qualified teams to submit proposals and not bear the entire financial risk. Quatman agreed and showed examples of the range of stipends paid in the United States and the stipends required by some state laws, ranging from 0.2 percent to 0.5 percent of the estimated construction cost.

Dhar and Quatman both showed examples of great public design achieved via design-build competitions, ranging from courthouses to stadiums.

Breakout Seminar 9: Architect-Led Design-Build
Moderators: Betsy Downs, AIA, principal, OWP/P Architects, Chicago and Martin Sell, AIA, president, RKETEK.com, LLC, Madison

Betsy Downs and her copresenter Marty Sell discussed in a well-attended session how they have successfully led design-build projects, holding the prime contract as an architect and teaming with or acting as a contractor. These two Midwestern architects presented their individual experiences in designer-led design-build from varied perspectives.

Sell worked in a fully integrated architect-led design-build firm for 14 years, growing the company from virtually no sales to nearly $150 million in annual sales. The firm’s prime markets were K–12 schools and senior housing. The firm consisted of almost an equal mix of architects/engineers and construction managers/field superintendents. All projects were completed under a guaranteed schedule and GMP with 100 percent of all savings returned to the client. No work was self-performed, even though the firm held all contracts as a single source of project delivery for the client.

Sell also worked for four years as an architect/developer in a developer-led design-build firm in the indoor water park market. The firm grew from one project of about $25 million in its first year to more than $100 million in revenue annually at the end of the third year. In this model, the architect/developer contracted with design firms and specialty subcontractors to complete the work.

Downs has established a separate design-build entity for an established large Chicago architectural firm. Downs’ firm specializes in various markets, including education and heath care. In this model, the design-build subsidiary contracts with both the parent architectural firm and selected general contractors as the single-source project delivery for the client. Downs stated, “As projects become more complex, architects are better suited to lead the design-build process.” The two explained various financial nuances of design-build, including the fact that their projects include not only the traditional design fees, but also construction fees and general conditions. Many architects don’t realize that most costs of construction—including many of the contractors’ personnel costs—are borne by the general conditions, allowing the construction fee to drop to bottom-line profit. As a design-builder, architects can see three sources of revenue versus just one.

Breakout Seminar 10: Business Performance Management
Moderator: Eduardo Niebles, BST Global

Eduardo Niebles of BST Global gave a presentation on his company’s project management services, which help architects to establish a project positioned for success by defining a realistic scope to meet project objectives, manage resource scheduling, monitor project performance, and mitigate risk. More information on BST Global’s products and services can be found on the company’s Web site.

General Seminar 11: International Alliance for Interoperability
Moderator: Patrick MacLeamy, FAIA

HOK’s Chief Executive Officer Patrick MacLeamy traveled from San Francisco to present an historic perspective on the transition from the traditional master builder to the current process. MacLeamy spoke about the trade guilds of old and how the architect used to be the one who coordinated those trades. “Over time, however, the architect began to pull back from that role and became exclusively a designer.” He talked about when design and build became separate fields. He stated that buildings today are “assembled” and not built, with so many of their components being prefabricated or manufactured. Not unlike product manufacturing, there is one entity who manages the whole process. He emphasized the need for building smart and stressed the importance of making key decisions early, when changes can be made without great cost impact. “Information exchange and design, and team work,” are critical.

HOK Chief Executive Officer Patrick MacLeamy gives a presentation on the International Alliance for Interoperability, showing how historically the art of design became separated from the craft of construction. Photo: G. William Quatman

The International Alliance for Interoperability (IAI) is an alliance of organizations dedicated to bringing about a coordinated change for the improvement of productivity and efficiency in the construction and facilities management industry (Building Smart). “Our members engage in national-industrial programs that aim to change the organization, process, and technology of the industry,” MacLeamy said. The technology is here and it is now up to the construction industry worldwide to implement significant changes for productivity growth and efficiency enhancement. IAI’s concept of Building Smart is an initiative that offers an industry-wide forum for the industry and government to work through due process to identify, test, review, recommend, and implement smart ways to deliver quality buildings and services to the facility owner.

General Seminar 12: Design-Build Education for Architects
Moderator: Dan Rockhill

Professor Dan Rockhill discussed the award-winning Studio 804 program, run by the University of Kansas’ School of Architecture and Urban Design. Educating the architecture students of today for the marketplace of tomorrow is a challenge for our universities, he said. In 1995 Rockhill established Studio 804, a design-build program at the University of Kansas that provides hands-on experience for the students who design and build a new residence in one semester. “My students do it all, from the design, to pulling the building permits, to swinging a hammer and pouring concrete.” But these are not just ordinary houses these students are building. Projects from this studio were recognized as Project of the Year by Residential Architect in 2006 and Home of the Year by Architecture Magazine in 2004, competing against name firms for the honor. Jurors had no idea they were awarding these prizes to a group of college students, Rockhill added.

AIA President RK Stewart, speaker Dan Rockhill, and conference cochairs Bill Quatman and Michael Lischer share their connections with the University of Kansas, where Rockhill teaches and the other three graduated from the School of Architecture. Photo: G. William Quatman

Rockhill discussed the value of hands-on training for architecture students and how the students collaborate in this studio course to bring affordable housing design to fruition. “You talk about team work? These kids get it in one semester because they each depend on the other to do their job in order to graduate on time!” The presentation left the entire audience smiling at the thought of design-build being taught through programs like this, giving students an experience that truly trained them for the new world of design-build and teaming.

General Seminar 13: Keynote—The Work of Zaha Hadid
Moderator: Jim Heverin, BArch, DArch, ARB, RIBA, Zaha Hadid Architects

The conference sessions concluded with a presentation by Jim Heverin, director of Zaha Hadid Architects. Zaha Hadid, Hon. FAIA, won the Pritzker Architecture Prize in 2004 and leads an internationally respected design firm. Heverin was involved in the winning AIA UK 2007 Design Excellence Award for the Maggie's Cancer Caring Center, in Fife, Scotland. Heverin provided a comprehensive overview of the work of Zaha Hadid Architects, with commentary on Hadid’s design evolution and the firm’s use of design-build procurement.

William Carpenter, FAIA, talks with a representative of Zaha Hadid’s firm about the body of work that Hadid has produced internationally. Photo: G. William Quatman

The presentation included many design-build projects undertaken in Germany, where a modified form of this type of contract is more common, and indeed more successfully executed, as the “build-to-last” construction culture values teamwork, quality control, and execution, as well as high standards and excellence in design.

Reception

The reception for the second day was held at the headquarters of the Royal College of Physicians, on St. Andrews Place overlooking Regent’s Park. This Grade 1–listed, 1960s modern masterpiece was designed by Denys Lasdun. Attendees mingled with thousands of medical books and treatises that spoke of the profession’s history and advancements in medicine.

Tours

Conference attendees had the option of going on two building tours on Saturday morning. One tour visited the British Broadcasting Corporation’s (BBC’s) newly renovated and expanding Broadcasting House, located in London’s West End, near the RIBA. The redevelopment of Broadcasting House is the single largest and most complex property project ever undertaken by the BBC. The project incorporates the original BBC headquarters and two additions, one recently completed and the currently under construction.

The tour focused on the original Art Deco headquarters building, opened in 1932 and recently renovated under a design-build contract. The tour included visits to the Radio Theatre, where many famous broadcasts have taken place, new digital radio studios, and new office space.

Other delegates boarded a restored classic London double-decker bus for a trip to the London borough of Lambeth to visit the Lilian Baylis Technology School. This was constructed under the U.K. government’s Private Finance Initiative program. This 600-student secondary school was a design-build project by Ellis Williams Architects for contractor Bovis Lend Lease. The project integrated the needs of the users and the wider community into a coherent, durable, and flexible solution, that sits comfortably within its urban context and which also took into account the demanding construction timetable. After the tour, the participants boarded the bus for the trip back to RIBA.