Water Design-Build Council Blog

Doug Wachsnicht,Vice President, Goodwin Brothers Construction

Recent Posts

Insights Into the Use of “Earned Performance Fees” in Design-Build Projects

Posted by Doug Wachsnicht,Vice President, Goodwin Brothers Construction on Fri, Jul 13, 2018 @ 07:16 PM

One of the questions frequently asked by owners is how and when to use “earned performance fees” in water and wastewater design-build projects. In this context, earned performance fees are defined as monetary benefits established to attain a specific achievement or goal.

The use of earned performance fees with any delivery method can be a powerful tool that helps both the owner and design-builder to better align accomplishing the project objectives. However, in a design-bid-build project, the intent of earned performance fees is often to drive innovation, collaboration, schedule, and cost savings, which are all hallmarks of design-build delivery. This begs the question: Why use earned performance fees for design-build delivery projects? One of the answers is: When earned performance fees are used with a design-build delivery project, it further stimulates maximizing innovation, collaboration, schedule, and cost savings – well beyond what can occur in the limited design-bid-build process, since much of the contractual arrangements are already locked in once the project goes out to bid.

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Topics: Collaborative Project Delivery

Insights Into the Use of “Earned Performance Fees” in Design-Build Projects

Posted by Doug Wachsnicht,Vice President, Goodwin Brothers Construction on Mon, Jan 08, 2018 @ 04:59 PM

earned-performance-fees-water-wastewater-projectsOne of the questions frequently asked by owners is how and when to use “earned performance fees” in water and wastewater design-build projects. In this context, earned performance fees are defined as monetary benefits established to attain a specific achievement or goal.

The use of earned performance fees with any delivery method can be a powerful tool that helps both the owner and design-builder to better align accomplishing the project objectives. However, in a design-bid-build project, the intent of earned performance fees is often to drive innovation, collaboration, schedule, and cost savings, which are all hallmarks of design-build delivery. This begs the question: Why use earned performance fees for design-build delivery projects? One of the answers is: When earned performance fees are used with a design-build delivery project, it further stimulates maximizing innovation, collaboration, schedule, and cost savings – well beyond what can occur in the limited design-bid-build process, since much of the contractual arrangements are already locked in once the project goes out to bid.

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Fixed-Price Design-Build Selection

Posted by Doug Wachsnicht,Vice President, Goodwin Brothers Construction on Mon, Jul 11, 2016 @ 03:02 PM

The fixed-price design-build delivery method allows owners of water infrastructure to select design-builders that best fit the project budget, scope and schedule requirements.  With a good understanding of their overall project objectives, budget, and schedule requirements in the procurement process, owners can achieve the great success using fixed-price design-build.

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Topics: design-build