Design/Build: A Recipe for Waste

by Emily Reilly for 27AD [courtesy of Calitics - Front Page]

Recently, Governor Arnold Schwarzenegger indicated he wants to institutionalize private-sector deals for infrastructure upgrades in a plan he will outline in his State of the State address in January. Though details have yet to be disclosed, design/build projects will no doubt be included. This is a mistake.

The idea of public-private partnerships appeals to a lot of people, and it is easy to understand why. There is a perception that public projects are inefficient, and sexy terms like “design/build” make other options sound appealing. As Mayor of Santa Cruz I often hear arguments that projects like these simultaneously cut costs and improve efficiency. Unfortunately, in the real world, it hasn't worked. We have seen that design/build projects routinely outspend their budgets and outlast their deadlines, costing taxpayers more in the end.

In addition to the problems on the infamous 91 Express Lanes, we have seen other design/build projects overrun their budgets and deadlines. The carpool lanes being built on the Garden Grove Freeway have doubled in cost to $550 million dollars and have yet to open. The San Joaquin Hills Tollway, another design/build project, required more than $1 billion in bailouts from officials in Orange County. And a toll road in San Diego, slated to be completed in 2006, is still not complete and has a budget that has grown to $800 million, more than twice the projected cost.

The system we have successfully used for public works in the state of California for decades is based on qualified engineers designing a project first, and then allowing several qualified contractors to bid on the chance to build that project. My tenure on the transportation commission has shown me that the incentive for these contractors is to come up with a complete, reliable set of plans that can be built at a low cost with high quality – that is how a contractor wins the contract. To ensure quality, engineers who work for the public inspect the work.

This process is backward in the case of design/build projects, which negatively affects the cost, timeliness and quality of a project. Under the design/build process a contractor is awarded a contract without having to bid, picks a designer and estimates the cost without the benefit of detailed plans, and later hires the inspector that will inspect the work. The checks put in place to protect taxpayers and citizens who will use the project are gone. This is not the solution to California’s infrastructure needs.

Instead, we should be using the money generated through the $20 billion transportation bond to build quality projects that are forward looking and contribute to a sustainable future, with the reduction of carbon emissions being a key benchmark of sustainability. In the Assembly, I will work to ensure that California follows the right path in improving our infrastructure.