design-build: utility agreements · 2020. 10. 14. · – utility company self-perform design...

Design-Build: Utility AgreementsConnecting YOU with TexasGreg Faber, SIT, PMP, Project Finance Debt Division Project Manager

October 14, 2020

DB Utility Agreements October 14, 2020

Design-Build Utility Agreements

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Agreement Name Brief Description

Standard Utility Agreement (U-35) Managed by District Utility Staff/GECFor long-lead items.

Project Utility Adjustment AgreementDB-Managed (PUAA-DB Managed)

DB Contractor performs engineering and physical relocation.

Project Utility Adjustment AgreementOwner-Managed (PUAA-Owner Managed)

Utility Owner performs engineering and physical relocation

**Under Development**Pre-Construction Utility Agreement (PCUA)

Optional Agreement Managed by District Utility Staff/GEC.Performed prior to DB Contract execution.Facilitates executions of SUA’s and PUAA.

Interlocal Agreement (ILA) Agreement with Municipal Utility Owners


Standard Utility Agreement Timeline for Design-Build Project

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Planning/Pre-Procurement: Time Varies Procurement: 14 months

Post-AwardPre-Award

Implementation: Time Varies

ENV

Cle

aran

ce

Issu

e no

tice

of th

e Pr

ojec

t

Prop

osal

s D

ueResponsible Parties: District andUtility Company

Responsible Parties: District, Utility Companyand DB Contractor (inspection/verification)

Util

ity P

erfo

rms

adju

stm

ents

Identify long-lead items

Util

ity W

orks

hop

Issu

e N

OR

A

Exec

ute

SUA

Util

ity C

ompl

etes

adj

ustm

ent

CO

NTR

ACT

EXE

CU

TIO

N /

NTP

1

TxD

OT

reim

burs

es U

tility

Early

Coo

rdin

atio

n M

eetin

gs

Perfo

rm S

UE


Standard Utility Agreement (Form: ROW-U-35)

Follows the Design-Bid-Build (DBB) Utility Accommodations Process

Early coordination meetings with the Utility Owner determine if the utility can enter into a Standard Utility Agreement when in if the conflict with the project:

• reimbursable per Transportation Code 203.092

• requires a long lead item(s) and/or

• a necessary relocation that minimizes impact to innovation in the DB Contractor’s design.

Information pertaining to the adjustment/relocation should be added to the Reference Information Documents (RID’s).

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Standard Utility Agreement (Form: ROW-U-35)

The Parties will work together in a timely manner on:

– execution of the agreement

– scheduling and

– physical relocation.

Cost of the adjustment is not included in the DB Contractors bid

– What if the DB Contractor designs the project in a way that impacts the utility after the adjustment?

• Risk, Cost and Schedule Impact is that of DB Contractor

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Project Utility Adjustment Agreement – PUAA’s

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Post-AwardPre-Award


1 on

1’s

Perfo

rm S

UE

Prop

osal

s D


Responsible Parties: Utility Companyand DB Contractor

DBC

iden

tifie

s co

nflic

t


Util

ity W

orks

hop

DBC

and

Util

ity N

egot

iate

Early

Coo

rdin

atio

n M

eetin

gs

Com

plet

es a

djus

tmen

t

CO

NTR

ACT

EXE

CU

TIO

N /

NTP

1

DBC

reim

burs

es U

tility

NTP

2

DBC

/UC

Per

form

s Ad

just

men

ts

DBC

/UC

Exe

cute

PU

AA

TxD

OT

reim

burs

es D

BC

Ong

oing

Coo

rdin

atio

n M

eetin

gs

Issu

e no

tice

of th

e Pr

ojec

t


Project Utility Adjustment Agreements – PUAA’s

PUAA DB Contractor-Managed

– DB Contractor performs:

• design engineering plans and/or perform the physical adjustment/relocation.

PUAA Owner-Managed

– Utility Company self-perform design engineering plans and/or perform the physical adjustment/relocation.

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Early coordination meetings with TxDOT and Utility Owner determine if the utility adjustment/relocation:

– does NOT require a long-lead item and/or,

– has a relocation that greatly impacts innovation in the DB Contractors design

Proposers are allowed 1 on 1’s with the Utility Companies during procurement.

– This assists in better pricing of the utility coordination and adjustments line items associated with their bid.

– 1 on 1’s protocols are outlined in Section 2.5.2 of the Instructions to Proposers (ITP)

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Proposers incorporate utility costs in two lump sum line items in the schedule of values:

– coordination and,

– adjustment costs.

Agreement assembly and reimbursement payment are processed and maintained by the DB Contractor.

– DB Contractor pays the utility for internal costs, inspection, construction, material, etc.

– DB Contractors costs are not part of the PUAA’s

– TxDOT reimburses the DB Contractor as milestones of the adjustment

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Pre-Construction Utility Agreement: Timeline for Design-Build Projects

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Post-AwardPre-Award


Util

ity In

voic

es T

xDO

T fo

r Pre

lim W

ork

Dev

elop

Sco

pe o

f SU

E

Responsible Parties: District andUtility Company



Util

ity W

orks

hop

Ong

oing

Util

ity M

eetin

gs

CO

NTR

ACT

EXE

CU

TIO

N /

NTP

1

Early

Coo

rdin

atio

n M

eetin

gs

Iden

tific

atio

n of

con

flict

Be

gin

Prel

imin

ary

Wor

k

TxD

OT

reim

burs

es U

tility

Exec

ute

PCU

A

DBC

iden

tifie

s co

nflic

t

DBC

and

Util

ity N

egot

iate

Com

plet

es a

djus

tmen

t

DBC

reim

burs

es U

tility

NTP

2

DBC

Per

form

s Ad

just

men

ts

DBC

and

UC

Exe

cute

PU

AA

TxD

OT

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BC

Issu

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UA

1 on

1’s

ENV

Cle

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Under Development! Pre-Construction Utility Agreement (DB-PCUA)

OPTIONAL agreement created for Utility Company’s on Design-Build Projects

– Encourage early engagement

– creates reimbursement mechanism for preliminary work

– Costs up to the DB Contract Execution/NTP1

– Partnering/Better information/quicker execution

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Under Development! Pre-Construction Utility Agreement (DB-PCUA)

TxDOT issues the PCUA serving as notice of the project.

TxDOT requires prior to execution:

– Cost estimate including: coordination services, engineering and staffing .

Upon execution reimbursable Preliminary Utility Work includes:

– deliverables

– development of TxDOT’s SUE scope

– answering questions from Proposers

MORE INFORMATION COMING SOON!

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Interlocal Agreement (ILA) Timeline for Design-Build Project

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Post-AwardPre-Award


Dev

elop

Con

cept

ual L

ayou

ts

Perfo

rm S

UE

Prop

osal

s D



DBC

Perfo

rms

Adju

stm

ents


Util

ity W

orks

hop

Dev

elop

and

neg

otia

te la

ngua

ge

Exec

ute

ILA

DBC

Com

plet

es a

djus

tmen

t

CO

NTR

ACT

EXE

CU

TIO

N /

NTP

1

Rei

mbu

rsem

ent v

arie

s

Early

coo

rdin

atio

n M

eetin

gs

NTP

2

Ong

oing

coo

rdin

atio

n M

eetin

gs

Issu

e N

OR

A

Det

erm

ine

if IL

A is

requ

ired

Iden

tify

Crit

ical

Infra

stru

ctur

e


Interlocal Agreement - ILA

ILA’s are project specific and customizable.

– Included in the Reference Information Documents (RID’s)

– Negotiations and cost estimate developed prior to DBA execution/NTP1.

Coordination meetings with Municipal Utility Owner determines if:

– use the Developer for design and construction

– impacts Critical Facilities

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When should TxDOT and Municipal Utility Owner use an ILA?

– Government Code 2269.003 and Local Government Code 252.021

• TxDOT District and PFD-SCM will coordinate with General Counsel Division (GCD)

– Municipal Utility Owner eligible costs:

• DB Contractor reimburses the Municipal Utility Owner

– Ineligible costs (ex: elective betterments)

• TxDOT acts as pass through for the Municipal Utility Owner funds to the DB Contractor.

– Clearly outlined in the ILA

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Will an ILA always be required when working with a Municipal Utility Owner?

– No, not always!

• 100% reimbursable and

• no elected betterments.

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Interlocal Agreement – ILA – Best Practices

Development and coordination of an ILA should begin during pre-procurement.

The language should clearly outline timelines.

Understand risks.

Understand critical facilities and conflicts.

Consider how easements are acquired and replaced.

Include a clause for Haz-Mat handling.

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Questions?

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Greg FaberProject Finance Debt and Strategic Contracts Management Division

(PFD-SCM)Cell: 512-987-0994

[email protected]