Design professionals - who, for the purposes of this series, include architects or engineers - agree that public works clients need to understand key aspects of construction, especially how to select members of the project team. This is the second of three articles that introduces construction from a public works perspective, and it describes those procedures.

The series is co-sponsored as a public service by the American Institute of Architects - Illinois, Central Illinois Builders chapter of the Associated General Contractors of America, Consulting Engineers Council of Illinois and the Illinois Society for Professional Engineers.

Bidding May Be Illegal?

Selecting a design professional through bidding is usually illegal. The Brooks Act and the Architectural, Engineering and Land Surveying Qualifications Based Selection Act require federal and state agencies, respectively, to use Qualification-Based Selection (QBS) in procuring architectural, engineering and land surveying services. The Local Government Professional Services Selection Act applies to the selection of architects, engineers and land surveyors by most units of local government. The process is also recommended by all major professional design and contractor associations, the American Bar Association and client organizations such as the American Public Works Association.

Some exceptions to the QBS mandate for local government include:
• Home rule units of government or units of government representing more than 3,000,000 people,
• Prior established relationships with a design professional who is qualified to provide services for the pending local government project, or
• Strictly defined justifiable emergencies.

QBS Facilitation

After George Heck, P.E., and Michael Hartigan, P.E., retired from their respective engineering firms, each became a volunteer QBS facilitator who provides free services related to Qualification-Based Selection. They represent professional design organizations by explaining QBS and helping public entities set up a QBS selection process.

The media equates no bidding with "sort of a gray area of government," Hartigan notes. "They don't say it's evil, but there's something sleazy about no bid . . . My feeling is that QBS is really more competitive (than price-based selection) and the more exacting of the methodologies."

QBS also avoids potential problems, such as the scenario that Hartigan terms "an invitation to disaster." In a bidding environment, design professionals submit what they believe to be the lowest costs for services. Bids are based, however, on services the owners think are needed, even though they can seldom paint a complete picture of their needs at that stage. If owners later realize they inadvertently omitted something from their bid documents, they may expect the additional service but refuse to pay extra. That's when "the design people step out of the picture and the lawyers step in," Hartigan says.

A Three-Step Process

Three broad steps of QBS, selection, project definition and retention, avoid such confrontations. "It isn't complicated, and it makes sense," Heck says. QBS offers the opportunity to establish a sound working relationship between an owner and architect or engineer.

Local government project owners first determine if a firm that has provided prior design services is qualified to complete the pending project. If it is necessary to look for a new design firm, a designated selection committee begins step one, selection. The committee prepares a preliminary scope of work and the criteria, such as specialized experience and capabilities, by which to evaluate interested firms. These are components of a request for proposal (RFP) or request for qualifications (RFQ).

After evaluating all written responses, the selection committee prepares a short list of three-to-five firms for further consideration and interviews. Selection committees should ask about topics such as the firm's current work load, the firm's track record in cost estimating, expectations of the owner, anticipated project issues and challenges, planned reviews with the owner and construction-phase services.

Hartigan advises going beyond formal interviews. He recommends talking with the people who work in, operate or manage those facilities listed in the references and visiting each firm to talk with staff who will be assigned to the project. One firm will emerge from step one as exhibiting the best qualifications, project understanding and rapport with the owner.

In step two, project definition, representatives of the owner and the top-ranked firm define more fully the project scope and required services based on project expectations, time constraints and budget limitations. Using their experience, design professionals may offer suggestions that bring the project into sharper focus or clarify requirements owners may have not yet considered.

By the end of step two, the owners and the design professionals have agreed on the scope of the project

Pam Bruzan is the owner of Sangamon Valley Writing Associates, a Rochester firm specializing in technical and promotional writing."*

November 1996 / Illinois Municipal Review / Page 5

Unlike selection of a design professional, selection of a contractor by a public agency requires bidding for a design-bid-build project, such as the recent rehabilitation of the Town Branch sewer in Springfield.-(Photo is courtesy of the Consulting Engineers Council of Illinois 1996 Engineering Excellence Awards program.)

and the required professional services, including the possible evaluation of alternate solutions. If that agreement is not reached, they conclude their discussions, and the owner opens talks with the firm ranked second. During step three, retention, the owners and the selected firm discuss fees, concurring on an acceptable cost for those services agreed upon during step two. If the owner and firm cannot agree on the terms of a contract, they terminate their discussions, and the owners turn to their next choice.

When Bidding is Required

Unlike selection of a design professional, selection of a contractor by a public agency requires bidding for a design-bid-build project. Differences between the two selections are significant. When the design professional is chosen, owners generally are aware of their needs, but frequently do not understand a complete project scope. Construction bids are based on the design professionals' detailed plans and specifications from which specific material and labor costs can be determined.

Bids are usually awarded to the "lowest responsible bidder." Responsible bidders have the financial capability to purchase materials and pay their crews. In addition, they have a satisfactory record of performance, technical qualifications and equipment, and they will be able to comply with the project schedule.

Jeffrey C. Evans, assistant vice president of Evans Construction Company, Springfield, and Stuart W. Broeren, president of Broeren Russo Construction, Inc., Champaign, agree that public entities should strongly consider prequalifying bidders. Prequalification requires that the prospective contractors fill out a succinct form disclosing their financial and physical capability to perform the work. Evans says one disadvantage of prequalification is that newer contractors have not yet developed a track record that demonstrates their capability.

Another display of a contractor's responsibility is the ability to secure a bid bond and a performance bond. Both are legal requirements for bidding on public works projects in Illinois. The purpose of the bid bond, which normally is 5% to 10% of the bid, is to ensure that the low bidder will execute the contract. Evans cautions that while the bond is an indication of a firm's ability to complete the work, prequalification of contractors may also be warranted, depending upon the scope of the project. Broeren adds that once a company proves its financial capability, it is difficult to exclude them legally from bidding on a pending public project. Performance bonds ensure completion of a project if the contractor should become unable to finish the work.

State and national laws require the selection of architects and engineers using the Qualification-Based Selection process. A recent renovation of the art deco Champaign City Administration Building was combined with a significant addition to this historic National Trust-eligible structure. The building received the Heritage Award in Landmark Preservation from the Preservation and Conservation Association of Champaign County.-(Photo is courtesy of AIA Illinois.)

Project Delivery Alternatives

Project delivery refers to the type of relationships that exist among the project owner, design professional and contractor during the life of the project. Although different project delivery systems exist, Evans recommends that public works entities must carefully research them in order to determine if they are legal and desirable for public works entities.

"Design-bid-build" is the most common form of project delivery and is authorized by Illinois statutes. The owner contracts with the architect or engineer, seeks competitive bids from contractors and executes a separate contract with the building contractor.

"Design-build" is an alternative system whereby the owner contracts with one entity for design and construction services.

Under "construction management," another party, the construction manager, joins the team to oversee what are usually complex projects with tight budgets or schedules and a relatively greater need to coordinate consultants or subcontractors.

Preview

With the broad foundation of construction set, owners are now ready to explore in more detail the process of construction. These steps will be described in the final article of this series. •

Page 6 / Illinois Municipal Review / November 1996