Most countries continue to use traditional methods (Design-Bid-Build) to procure capital investment projects and all countries seem to be continuing with this process, except for England, which uses alternative methods extensively. The use of PPP model, which incorporates private finance, has significantly increased since a previous study by the same first author in 2002. The main new method uncovered during the study is the "Alliance model" and Early Contractor Involvement" (ECI). Refer to Table 2 which summarizes the practices of all countries as well as other tendering information. These alternative methods seem to provide better results and are more aligned to reduced time of construction, improved cost control, equal or better quality, and overall client satisfaction.
These models are as follows:
• Design-Build (DB)
• PPP or Design-Build Finance Operate (DBFO)
• Alliance model - tentatively recommended
The main differences between Design-Build and all its alternatives as compared to the traditional models are:
• More transfer of risks to the party best able to handle and manage
• A teaming effort
• More opportunities for alternative solutions (design, innovations, constructability, & project management)
• Less administration (according to interviews) by the client organization.
There have been some noticeable impediments or difficulties when beginning to adapt and utilize these new Design-Build and its alternative models. These new models take time to develop, implement, and understand all the "tricks of the trade". Also, it is difficult to transform all the know-how to all those involved in the road authority all the way throughout the organization and throughout all road region personnel. The use of these new and innovative practices can be limited due to issues as relinquishing control from the methods based or traditional practices, limiting the design development to less than 30% (some even recommend 15-20%), having a majority of performance specifications fully developed, not using low-bid, lack of a real teaming concept, transparent information & communications, understanding risk allocation and responsibility, and having the private industry understanding these practices.
These issues and development aspects can be summarized briefly and the following shows five major categories that can be grouped together:
Learning Process:
• As a logical progression, Design-Build should be the first model tested
• Takes time to implement
• Creating trust with industry takes time
• Continual learning process - reengineering the models
• Performance specifications should be developed for Design-Build and all related DB models
• Standardization of contracts & continuity amongst all regional road authorities
Risks:
• Knowledge and competence of risks
• Allocating risks to the proper party
• Risk optimization
Gains by Early Contractor Involvement (ECI):
• Using the Early Contractor Involvement (ECI) model
• Minimize design development to < 30% or less
• Potential of the "Alliance model"
Quality:
• QC by contractor
• Quality Based Selection criteria for contract award
• Performance Specifications
• Contractor rating program
• Professional services rating program
Procurement Portfolio:
• Having a proper procurement strategy & project portfolio
• Having expertise in all models & disseminated to all regional personnel
• Offset higher tendering cost by compensation via stipends
• Consider short listing to a maximum of 3 tenders for medium and large-sized projects
• Consider the use of integrated phases for professional consultants for continuity
• No low bid tenders for the innovative models (except really small projects)
More details on capital investment projects are discussed in the "Capital Investments" section.