Expanded Design-build Law is Overdue in New York

OP-ED

The state cannot let another year go by without letting architects, engineers and construction firms bid together on projects

By Thomas J. Spearing III

Crain’s New York Business

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Poor road conditions and traffic congestion cost motorists about $6.3 billion statewide, or an average of $694 per driver, according to the American Society of Civil Engineers’ report card on New York’s infrastructure. Of the state’s 17,000 bridges, most were built in the 20th century and over 50% are more than 75 years old. Nationwide, the average age of a bridge is 42 years. The typical New York City area commuter wastes 53 hours per year in traffic congestion. These workers comprise about half of the state’s population.

It’s obvious we need to make infrastructure improvements, but funding them continues to be challenging.

However, an approach called design-build continues to be promising. First passed in New York in 2011 as part of Gov. Andrew Cuomo’s tax-reform and jobs bill, design-build is a project delivery/procurement model proven to save the state money and reduce project duration. Design-build is expected to trim costs for the new Tappan Zee Bridge by $1.1 billion and accelerate completion by 18 months.

Another example is the first phase of the statewide accelerated bridge program, which bundles bridges into design-build contracts by region. It produced an estimated savings of 27% over traditional procurement, according to the Citizens Budget Commission.

Design-build is an integrated approach that links design firms and contractors or builders under one contract with a single point of responsibility, unifying design and construction from conception through completion. In today’s environment, design-build represents a tremendous opportunity over the traditional “design-bid-build” process where design and construction are split, resulting in separate entities receiving separate contracts and doing separate work.

Combining designers and contractors at a project’s onset enables projects to be delivered faster and more cost-effectively. Design-build’s speed and cost savings are helping cash-strapped state agencies do more with less, and to get projects under contract faster to qualify for federal funds.

Under current legislation, New York state’s Department of Transportation, Department of Environmental Conservation, Thruway Authority, Bridge Authority and Office of Parks, Recreation and Historic Preservation are authorized to use design-build in awarding contracts.

In the 2016 session, the Legislature failed to expand its availability to New York City agencies, despite support from a wide range of constituents including the city government, private companies, think tanks, building-trade organizations and labor unions.

New York City is preparing for an unprecedented building and rebuilding period over the next decade. Construction of the Gateway tunnel, overhauls of Penn Station and LaGuardia Airport and a new streetcar system in Brooklyn and Queens are planned.

New Yorkers deserve a significant improvement in the infrastructure they rely on every day. Expanding design-build to New York City and all state agencies must be a high priority for Albany in the January session.‍

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Thomas J. Spearing III is the New York office leader and a senior vice president at HNTB Corp., an infrastructure-solutions firm with offices in New York City and New Jersey.