An introduction to Progressive design and Build

Changes in U.S. Infrastructure Procurement Landscape: Are PDBs the future? 

The infrastructure sector in the United States is undergoing a profound transformation, reshaped by historic federal investments, innovative procurement models, and a heightened focus on sustainability and community equity. At the forefront of this evolution is the transport sector, particularly rail and highways, which are seeing unparalleled opportunities for growth and modernization. This transformation not only marks a pivotal moment for the industry but also demands fresh strategies and expertise to navigate the emerging landscape.

A key driver of change is the Bipartisan Infrastructure Law (BIL) of 2021, representing the largest federal infrastructure investment in over half a century. Rail infrastructure alone has received $66 billion, aimed at modernizing systems, eliminating maintenance backlogs, and fostering equitable, sustainable transportation solutions. The Federal Railroad Administration’s (FRA) Corridor Identification and Development (CID) program exemplifies this effort, focusing on funding intercity passenger rail projects that prioritize greenhouse gas reductions and address environmental justice. Such programs reflect a national shift toward infrastructure that integrates resilience and sustainability with transportation efficiency.

State-level initiatives have further accelerated the adoption of innovative procurement models. Progressive Design-Build (PDB) contracts, which emphasize collaboration between owners and contractors, are gaining traction across the United States. Although traditional models like Design-Bid-Build (DBB) and Public-Private Partnerships (P3s) remain prevalent, the flexibility and problem-solving capacity of PDB are increasingly appealing for complex projects. Despite varying levels of adoption, with some states yet to fully authorize or implement the model, the trend toward collaborative contracting signals a recognition of its potential to address challenges posed by risk allocation, project complexity, and market inefficiencies.

The PDB model itself represents a paradigm shift in project delivery. By incorporating a development phase focused on mutual understanding and the determination of a target cost, PDB ensures that risk is allocated to the parties best equipped to manage it. Unlike traditional fixed-price contracts, where risk is often disproportionately transferred to contractors, PDB fosters a shared responsibility approach. This results in a more realistic cost structure and an enhanced capacity for value engineering, wherein innovative solutions can be developed collaboratively to meet project goals. 

Whilst these benefits have been well documented in other parts of the western world for decades, they are still relatively new to North America. One recent example (where a whole portfolio of projects utilized this methodology) was the Metrolinx SmartTrack Stations program in Toronto, Canada. Here, the more collaborative PDB model was leveraged to promote value engineering and the resulting significant cost savings and accelerated timelines. Such examples illustrate the practical benefits of PDB, especially for large-scale, multifaceted projects. 

However, PDB is not without its challenges. Critics often highlight the potential for diminished competitive tension in the target-cost phase, raising concerns about inflated pricing. The absence of further competition post-development phase can lead to perceptions of inefficiency or inflated profit margins. Additionally, questions about supply chain alignment and contractor capacity sometimes arise, particularly when projects involve extensive tiers of subcontractors. Addressing these challenges requires robust independent assessment, providing impartial oversight and ensuring that cost benchmarks, risk management, and value for money criteria are rigorously met.

The United States rail and highway sectors exemplify the opportunities made possible by these evolving procurement models. Rail infrastructure, supported by the CID program, has become a focal point for investment. Projects like the California High-Speed Rail system and Brightline West represent a combined investment of over $118 billion, aimed at modernizing transportation between major urban centres while promoting sustainability. California’s rail initiatives alone promise significant economic and environmental benefits, reducing freeway congestion and greenhouse gas emissions. Similarly, highway infrastructure has seen advancements through initiatives such as the State of Good Repair program, which prioritizes upgrades to ensure resilience and sustainability.

Navigating this complex and rapidly changing environment demands expertise across multiple disciplines. Comprehensive bid preparation, aligned with the nuanced requirements of progressive procurement, is critical for success. Contract negotiation strategies must balance risk-sharing mechanisms, foster collaborative frameworks, and secure performance incentives that drive project outcomes. Furthermore, effective project management, underpinned by a culture of trust and collaboration, is essential for achieving the goals of progressive models like PDB.

How can we help?

CIVEX Consulting Group is uniquely positioned to guide clients through these challenges and opportunities. With extensive experience in rail and highway infrastructure, CIVEX provides tailored support to government agencies, contractors, and private developers. Our expertise spans bid preparation, contract negotiation, risk assessment, and project management, ensuring that clients are equipped to succeed in the evolving procurement landscape. Drawing on a proven track record in implementing progressive models, CIVEX offers a strategic edge, helping stakeholders achieve cost efficiencies, schedule acceleration, and superior project outcomes.

As the U.S. transport sector embraces this era of transformation, the opportunities for innovation and growth are boundless. By fostering collaboration and adapting to progressive procurement practices, stakeholders can not only meet today’s demands but also shape the future of infrastructure. With its multidisciplinary expertise and commitment to excellence, CIVEX Consulting Group is ready to partner with clients to navigate this dynamic landscape, delivering infrastructure that is resilient, efficient, and forward-looking.