Target cost can be estimated based on current industry norms and comparables for owner objectives. A good idea is to set the target cost below budget to drive innovation in solution and design. The difference between budget and target becomes the project contingency.
The target cost must be accurate. If it is unrealistically low, design-build firms will be reluctant to respond. On the flip side, if the target cost is too high, you leave money on the table. Airports can perform this work themselves or obtain assistance from one of the many consulting companies offering information technology master planning and concept design.
If the consultant has the experience, they might also assist with the QBS process and serve as an extension of owner staff during the construction phase.
Selection is typically a two-step process. The first step is ranking the proposers using written and interview responses, then negotiating the scope and fee with the best candidate. Once selected, contractors are willing to collaborate with the owner to get the best balance of scope and total cost for the work.
As technology and requirements for facilities continue to evolve at a high rate, finding new approaches becomes more and more important. Design-build processes have been tested in many different environments and should at least be considered when they can streamline integration.
The project is the first part of a $1.5 billion plan to overhaul the airport over the next 11 years.
This warning label raises a very salient point for the industry: the ability to fly is not the same as the capability to fly.