Design Professional's Practice Bulletin

Volume 6, Number 1 — July 2002
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This Bulletin addresses recent developments affecting Design Professionals as well as business concerns as important as the specific professional and technical issues they face.

Editors: Neil P. Clain and Richard J. Davies

Regional Chapter of Design-Build Institute of America Continues to Thrive

By Gunther Carrle, Esquire

Several years ago, the rapid growth of design-build as a project delivery method prompted the Design-Build institute of America (“DBIA”) to charter a local chapter covering Pennsylvania, New Jersy and Delaware. While the popularity of design-build has been increasing on a national basis, the relatively rapid growth of design-build in this region is at least partially attributable to favorable changes in the statutes governing the practice of architecture in both Pennsylvania and New Jersey.

Prior to these statuatory revisions, it was difficult for owners to avail themselves of design-build unless the design-builder was organized as an archchitectural entity or the design professional was the prime in the relationship. Statuatory revisions that specifically permit the design professional to be a subcontractor to the design-builder have eliminated the licensing risks that were typically associated with such a relationship in both states. However, Pennsylvania and New Jersey continue to require that the entity ultimately responsible for providing the architectural or engineering services to be authorized to do so under each state’s licensing laws. Thus, integrated design-build entities which are assembled by adding a staff of architects or engineers to an entity not otherwise authorized to provided those services directly are not valid.

Despite this growth in the use of the method, the inability to use the designbuild delivery method for public projects continues to be the primary obstacle to full acceptance of the design-build process in both states. Although the new Pennsylvania Procurement Code expressly authorizes the use of design-build for public projects, it continues to make all procurement subject to the Commonwealth’s Separtions Act. That act requires the award of separate prime contracts for general, mechanical, electrical and plumbing construction on any public project with a construction value in excess of $25,000. Therefore, as a practical matter it is not possible to use design-build on most projects in Pennsylvania. Pennsylvania is trying to using design-build where ever possible, either by special statutory authorization or for projects of narrow scope in which only one trade is required.The situation in New Jersey is similary difficult. New Jersey public procurement is governed by a variety of statutes, each addressing a different public entity. Unfortunately, there is no specific statutory auhorization for the use of design-build on public projects.

Both states -- particulary Pennsylvania -- seem eager to implement design-build as a method for delivering projects, but legislative revisions are critical to fully do so. The local DBIA chapter is actively involved in advocating those changes. For those of you who may be interested in participating in the regional chapter’s activities call or email us (at info@powelltrachman.com) and we will forward your name to the Chapter.

© 2002 Powell, Trachtman, Logan, Carrle & Lombardo, P.C.

This bulletin is intended for general information purposes only and does not constitute legal advice. The reader should consult with legal counsel to determine how laws, suggestions and illustrations apply to specific situations.