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Journal of Infrastructure and Facility Asset Management – Vol. 2, Issue. 2, September 2020

Analysis of Project Performance Criteria for Design and

Build Contract

Taurista Yuristanti1,a), I Putu Artama Wiguna1,b) & Herry Budianto1,c)

1)
Postgraduate Program, Civil Engineering, Institut Teknologi Sepuluh Nopember (ITS)
Correspondent : a)[email protected], b)[email protected] & c)[email protected]

ABSTRACT
The design and build (DB) project delivery system recently begins to be widely used
for road projects in Indonesia. It has some advantages such as shorter completion time,
lower cost growth, lower schedule growth, and better performance in terms of quality.
The complexity of DB projects and the lack of complete rules and regulations in this field
have caused the implementation of DB projects to face various challenges and problems.
Thus, DB projects need to be evaluated to improve their performance. The purpose of this
study is to provide the concept of DB project performance, performance criteria, and
performance indicators that used to carry out a performance assessment. The analysis was
done based on a literature review and interviews. There are fifteen indicators generated
from this analysis. The indicators divided into three parts: design phase performance,
construction phase performance, and overall project performance and three criteria:
results quality, resource usage, and objectives achieved.
Keyword : infrastructure management, design and build, performance indicator

INTRODUCTION
The most commonly used project delivery system for road works in Indonesia is Design
Bid Build (DBB). It is the traditional project delivery where the planning, implementation, and
supervision stages are carried out separately and with different work contracts to produce a
separate product (Yunianto et al., 2014). Design and Build (DB) is one of the alternative
procurement systems where the client makes a contract with a single entity to perform both
design and construction under a single DB contract (Ratnasabapathy et al., 2006). It begins to
be widely used for road projects in Indonesia due to its advantages. DB system is considered
the fastest procurement system because it encourages overlapping between the design and
construction process (Chen et al., 2016). Construction works can begin while the design is still
in progress so that initial defects can be corrected immediately without a significant impact on
the project schedule (Nawi et al., 2014; Ojo et al., 2011). The DB system also allows effective
communication between the designer and the builder so that it can integrate the contractor's
knowledge and construction experience into the design. The resulting design is more construct-
able that it minimizes the possibility of design changes. Several studies have shown that the
performance of projects that use DB systems is better than projects that use Traditional Systems
in terms of cost, time, and quality. DB projects require shorter completion times, have lower
cost growth and schedule growth, and show better performance in terms of performance
specifications (Hale et al., 2009; Ojo et al., 2011; Ratnasabapathy et al., 2006).
In Indonesia, the DB system applied to acquire faster road infrastructure development and
a more efficient procurement process. Projects delivered using the DB system are projects that
fell under the category of a complex project or urgent project. According to the Regulation of
Minister of Public Works and the Housing Republic of Indonesia Number 1 the Year 2020,
complex projects are those that have high risk, require high technology, use specially designed

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equipment, have difficulties to be defined technically, and have a high probability of unforeseen
condition. Meanwhile, urgent projects are those that provide more benefits to the community
both economically and socially, must be utilized immediately, and contain difficulties in
carrying out design and construction work separately due to time constraints. These criteria
limit the number of projects delivered using the DB system. Below are the road projects
conducted using DB system during 2016-2018.
 Construction of Bts. Kota Singaraja-Mengwitani road
 Construction of Klonengan Fly Over
 Construction of Kesambi Fly Over
 Construction of Dermoleng Fly Over
 Construction of Kretek Fly Over
 Construction of Simpang Tugu Ngurah Rai Underpass
 Construction of New Yogyakarta International Airport (NYIA) Underpass
 Construction of Karang Sawah Underpass
Although some studies have shown that the performance of DB projects is better than
projects that use Traditional Systems, some DB projects have not shown good performance.
The complexity of DB projects and the lack of comprehensive rules and regulations in this field
have caused various challenges and problems during the project implementation, which lead to
ineffective and inefficient results. Therefore, it is necessary to evaluate the project through
performance assessment. If the project is performing well, it will also deliver reliable
infrastructure. Thus, construction performance will also increase. Infrastructure construction is
part of the asset life cycle that is important in infrastructure asset management, which aims to
ensure that infrastructure can function sustainably, efficiently, and following sustainable
principles (Soemitro & Suprayitno, 2018).
Researches on DB project performance generally focused on project performance in
forms of cost, time, and quality. However, those measures are not sufficient to assess their
actual performance (Ratnasabapathy et al., 2006). Project performance is not only about
financial success or early completion but also about the entire processes that occur during
project implementation. Besides, a project is unique in that each project differs from others
regarding its goals, activities (tasks), resources, and deliverables (Lauras et al., 2010). Different
project definitions might lead to different ways of measuring project performance.
Consequently, an appropriate performance indicator is needed as a benchmark or expected
performance standard so that it can accurately describe DB project performance. The purpose
of this study is to provide the concept of DB project performance, performance criteria, and
performance indicators that used to carry out a performance assessment.

LITERATURE REVIEW
Design and Build Project Delivery System
Design and Build (DB) is an integrated procurement system that delivers design and
construction services under one contract. In this system, a single entity performs both design
and construction and takes responsibility for all aspects of the project (Chen et al., 2016; Ojo et
al., 2011; Ratnasabaphaty et al., 2006). In the DB system, there is only one tender step to select
one entity to complete the project (Hale et al., 2009). Thus, it has significant time savings
compared to the traditional system that requires two tender steps. Design and construction,
either in part or in whole, can be carried out by a single design/ builder or can be subcontracted
to another contractor. In DB systems, designers work under a contractor as a team
(Ratnasabaphaty et al., 2006).

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The process in the DB procurement system is as seen in Figure1. It shows that an overlap
between the design and construction phases is common during DB projects, which can speed
up the project significantly.
DESIGN BUILD

Select
Concept Preliminary Final Design and
Design Construction
planning Design Project Clearence
Builder

Minimal to Extensive Contractor

Input Extensive Contractor Input

Owner Design & Builder

Figure1. Design and build procurement system process. (Alam, 2011)

Project Performance Measurement

Project performance is how the project works in terms of comparing the project results
with the objectives specified in the contract (Hafidy, 2010). Successful project performance is
when stakeholders get the expected requirements, both individually and collectively. The
stakeholders have to consider and distinguish three criteria that exist in the project life cycle:
procurement, process, and results to obtain the requirements (Takim et al., 2002). Generally,
Project success or failure determines project performance. The iron triangle (time, cost, quality)
is no longer sufficient to represent project success.
Performance measurement is a systematic way to evaluate the inputs and outputs in
manufacturing operations or construction activities and is a tool for continuous improvement
(Takim et al., 2002). According to Takim (2002), the element of success in a project deals with
efficiency and effectiveness measures. Efficiency measures refer to schedule, budget,
specification, and safety and would only be achieved through having standards, systems, and
methodology. Effectiveness measures refer to user satisfaction, the use of the project, fitness
for purpose, and free from defects. The level of project objectives achievement can also show
project effectiveness. The main priorities of the project objectives achievement are project tasks
and criteria, such as meeting project time, budget, and technical specifications. In line with
Takim, Ikediashi et al. (2012) mention that performance evaluation compares the actual and
expected performance in terms of effectiveness, efficiency, and quality regarding skill and
product. Lauras et al. (2010) use project tasks, performance indicators (time, cost, quality, and
risk), and performance triptych (effectiveness, efficiency, relevance) to analyze project
performance. Effectiveness describes whether the results of the project meet the objectives.
Efficiency indicates whether the resources used well to attain the results. Meanwhile, relevance
measures the sufficiency of the methods to meet project objectives.
Performance measurement requires an appropriate indicator, which is used as a
benchmark or expected performance standard and can describe project performance accurately.
Performance indicators must be able to determine the measurable evidence that proves that the
planned effort has achieved the expected results (Takim et al., 2002).

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Compliance to the Contract

The expected results of the project must be known to be able to measure project
performance precisely. Expected project results such as design, work methods, and building/
construction, stated in the contract document. According to Gransberg & Molenaar (2004), the
contract is a combination of the RFP and the winning proposal to become the technical
definition of the design and construction contract, as shown in Figure2. It means that DB project
performance must be seen as a whole process, starting from the pre-tender stage where the
project was defined.

Request
for
proposal Design-Build
Contract
Price
Technical
proposal
proposal

Plans
Specs Shop As-
Drawings Builts
Construction

Figure 2. Design and Build Contract Model.

(Gransberg & Molenaar 2001, cited in Gransberg & Molenaar, 2004)

In DBB, the constructor must deliver the quality specified in the design. While in the DB,
the design/ builder must provide not only the construction but also the design. In the DB, a set
of design criteria and basic design stated in the RFP (Request for Proposal) describe the project
scope. Both design criteria and basic design used as the basis for the design/ builder to prepare
a design proposal to be submitted. It is necessary for the owner and the design/ builder to
perform surveys and investigations before establishing the design so that it will reflect the
owner’s objectives and needs.
There are two phases in the DB contract: the design phase and the construction phase.
Consequently, the DB project performance consists of design phase performance and
construction phase performance. At the design phase, the design/ builder detailed the
preliminary design into DED (detailed engineering design). The problem that often occurs in
this process is that it does not match field conditions causing design change. It indicates that
the survey and investigation conducted, whether by the owner when establishing basic design
or by the design/ builder when setting up preliminary design, were not proper. The design
change will affect both the design and construction performance. Therefore, the quality of basic
design and preliminary design becomes an important variable that affects project performance.
At the construction phase, activities, and resources required to make the design a physical
reality are identified. During this phase, some changes are still possible to happen. The main
cause of these changes is methods, equipment, and materials chosen that are not suitable for the
field condition. This condition can lead to design change. The changes that occurred in the
design and construction phase show that ineffectiveness and inefficiency in the project. The
more changes occurred, the more ineffective and inefficient the project.

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According to Lauras et al. (2010), project performance must take into account the
uniqueness of each project. It must consider several universal dimensions of project
management, for example, measuring performance in the area of knowledge determined by the
PMI (Project Management Institute). In this study, variables cost, time, quality, safety, and
environmental performance analyzed to measure DB project performance (Chan&Chan, 2004;
Ikediashi et al., 2012; Lauras et al., 2010; Takim, 2002). These variables were reviewed not
only at the end of the project but also during the project. Through their progress, the
performance of the project can be assessed.

RESEARCH METHOD
The research methodology of this study consists of a literature review, data collection,
data analysis, and discussion. The literature review carried out is including books, journals,
previous researches, and regulations to provide the source of data in the field of DB contract
and DB project performance. The literature on the topic of performance criteria and indicators
for the DB project was also analyzed by comparing ideas, opinions, and understandings,
drawing a conclusion, and stimulating new ideas. The literature review is used as a basis to
build the concept of DB project performance.
Simultaneously, data collected by interviewing experts is including the requirements,
performance, and problems that often occurred in the DB projects. The interviews also carried
out to identify experts' opinions about the DB project performance concept, factors that affect
performance, and the technique/ method to measure the performance. An unstructured
interview method adopted for this research. It is the most suitable method to bring some
preliminary issues to the surface to determine which variables need further investigation (Lim,
2009). Experts are personnel who were known to have knowledge and experience related to DB
project implementation, particularly at the Directorate General of Highways, the Ministry of
Public Works, and Public Housing (PUPR). Directorate General of Highways is an agency
responsible for planning, building, and managing national road networks in Indonesia.
Interviews were conducted through face-to-face conversations and also by telephone due to
geographical limitations. It was about 30 minutes each, and a note was taken. A total of eight
experts were interviewed during the research.

RESEARCH ANALYSIS
Design and Build Project Performance Indicators
Based on data analysis and discussion above, the most appropriate way to measure DB
project performance is by using the effectiveness, efficiency, and relevance measures. The
effectiveness, efficiency, and relevance show the real performance of the project: not only from
the final results but also from the whole processes that happen during the project. Thus, the
three aspects become performance criteria with the following elaboration :
1. Effectiveness, reflected by the quality of project results
2. Efficiency, assessed by resource usage and
3. Relevance, measured by the objectives/ goals achieved in the project.
Therefore, the indicators divided into three parts: design phase performance, construction
phase performance, and overall project performance. Performance indicators are then
developed based on performance criteria, variables mentioned in the discussion above, and also
expert opinion. Expert opinion is required to decide which process in the project can reflect
project performance and how to measure it. There are fifteen indicators generated in this study.
DB project performance indicators development is as seen in Figure 3.

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DB project performance

Effectiveness Efficiency Relevance

The results meet the The resources are well The means are adequate
objectives used to attain the results to the objectives

Criteria Results quality Resources usage Objectives achieved

 Conformity of survey and  Suitability of the quality of

investigation results conducted personnel (designers) and
by the design/ builder and the qualifications and
initial survey results conducted performance requirements
by the owner (to establish basic of the designer –
design) – Survey and Personnel quality
investigation quality
 Conformity of final design and
Design
preliminary design submitted -
Phase
by the design/ builder –
preliminary design quality
 Compatibility of methods
specified in the final design and
those of in the preliminary
design – design quality
 Conformity of DED and basic
design – basic design quality
Construction quality  Suitability of the quality of
 Compatibility of methods used personnel (builders) and
during construction and those the qualifications and
of in the final design performance requirements
 Conformity of As-Built of the builders –
Drawing with DED Personnel quality
(dimensions and elevations)  Conformity of materials
INDICATORS

Construct- used during construction

-
ion Phase and those of in the final
design – Material quality,
quantity, and availability
 Conformity of equipment
used during construction
and those of in the final
design – Equipment
quality
Project Objectives
 Compliance of project results
with specification
 Accuracy of project execution
time to that of in the contract
 Conformity of total project
costs with initial costs
specified in the contract
Risks
Overall
project
- -  Compliance of environmental
impact management during
construction with
environmental documents
specified in the contract
 Compliance of health and
safety management during
construction with occupational
health and safety documents
specified in the contract

Figure 3. Design and Build Project Performance Indicators Development

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Design Phase Performance

The design phase is a phase where the design/ builder detailed the preliminary design into
the final design. Indicators must be able to assess the quality of design phase results. The results
of the design phase are design drawings (DED) and the method of construction. The quality of
the results affected by the quality of the survey and investigation, basic design, preliminary
design, resources used (designers). Design phase performance indicators are as follows :
1. Conformity of survey and investigation results conducted by the design/ builder and
initial survey results conducted by the owner (to establish basic design).
The basic design is important as it used as the basis for the design/ builder to prepare the
preliminary and the final design. The basic design arranged according to field conditions
based on survey and investigation. Accurate data about field conditions are needed to get
a good basic design. Otherwise, it will cause many changes at the implementation stage.
Therefore, surveys and investigation must be carried out well to obtain accurate data.
Surveys and investigations not conducted properly will cause many changes in basic
design.
This indicator is to find out how well the survey and investigation conducted. It also
shows whether the owner has prepared the basic design precisely. The more changes and
the more significant the changes are, the worse the performance.
2. Conformity of final design and preliminary design submitted by the design/ builder.
The final design may differ from the preliminary design due to field conditions. Too many
changes from preliminary design to the final design led to an ineffective project.
This indicator will show whether the design/ builder has prepared the preliminary design
properly. The more changes that occur, the worse the design performance is.
3. Compatibility of methods specified in the final design and those of the preliminary
design.
A method is a crucial element in realizing all planned designs into physical buildings. It
compiled at the time the design/ builder was preparing the preliminary design. However,
there may be an incompatibility with the field conditions during the design stage so that
changes are necessary. This indicator is to find out how many work items experiencing
method changes and the effect of these changes on the design. The more the changes in
the methods, mainly if the changes cause a design change, the worse the performance is.
4. Conformity of DED and Basic Design.
DED is the most important output of the design phase used as a reference for work
execution at the construction stage. This indicator is to find out how many changes
occurred from the basic to DED. The more changes that occur, the worse the design
performance is.
5. Suitability of the quality of personnel (designers) and the qualifications and performance
requirements of the designer.
This indicator is to find out the designer’s performance by the number of errors in the
design documents and how quickly repairs made. It will show not only the performance
of the designer but also the relation between the qualifications of the personnel and their
performance in design making. The more error and the longer the repairs are made, the
worse the design performance is.

Construction Phase Performance

The construction phase is a phase where the design/ builder implements the final design
into construction. One of the reasons for using a DB procurement system is to reduce design
changes during the construction phase. Therefore, the number of design changes (drawings and
methods) that occur during the project represents the project performance. The performance also

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assessed from the fulfillment of resources such as personnel, equipment, and materials.
Construction phase performance indicators are as follows :
1. Compatibility of methods used during construction and those of in the final design.
The design/ builder detailed the method at the design phase. However, method changes
are still possible at the construction phase regarding field conditions. Method changes
will cause many changes in project implementation because it affects the work sequence,
work schedule, and completion. Method changes can also cause design changes. If a
method change causes a design change, there will be more changes in the project. This
indicator is to find out whether the method used is following the method determined at
the design stage. It measures the number of method changes that occur and the effect of
these changes on the design. The more the changes, the worse the performance,
particularly when causing design change.
2. Conformity of As-Built Drawing and DED (dimensions and elevations).
Changes in design are also possible during the construction phase. The differences
between As-Built Drawing and DED shows the changes made. The more the changes, the
worse the performance at the construction phase. The high numbers of changes that occur
also indicate poor design performance. It shows that the design/ builder is not accurate in
design making.
3. Suitability of the quality of personnel (builders) and the qualifications and performance
requirements of the builders.
This indicator is to find out builder performance by the number of errors and defects in
the construction and how quickly the repairs made. It will show not only builder
performance but also the relationship between builder qualifications and their
performance in the construction phase. The more error/ defect and the longer the repairs
made, the worse the construction performance.
4. Conformity of materials used during construction and those of the final design.
Material requirements include quality, quantity, and availability. This indicator is to
determine whether, during the project, the material meets the specifications, quantity, and
material schedule specified in the contract. If one of the three aspects is not met, it will
affect project performance. The more aspects that are not fulfilled, the worse the
construction performance.
5. Conformity of equipment used during construction and those of in the final design.
The selection of equipment based on the method, field condition, and equipment
schedule. Equipment requirements include equipment type, number, capacity, and
condition. This indicator is to find out whether the equipment used during construction is
suitable for the methods, always on schedule and in good condition. The more aspects are
not fulfilled, the worse the construction performance.

Overall Performance
Overall performance is seen from the suitability with the project objectives in terms of
quality, cost, and time. Occupational health and safety and environmental impact management
are also taken into consideration in determining overall project performance. Below are indicators
to assess the overall performance of the DB project:
1. Conformity of project results with the specification.
The project considered a success if the project results quality complies with the
specifications stated in the contract. This indicator is to determine whether the project
meets the quality from the beginning or it needs some improvements before meet the
expected quality. The high number of results that do not meet the specifications indicates
that there are still poor job performances, both in the design and the construction phase.
2. Accuracy of project execution time to that of the contract.

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Completing time is one of the objectives of the project. Therefore, time is one indicator
of project performance. This indicator will show the accuracy of project execution time
through the progress based on the project schedule (s-curve). The more delays occur, the
worse the project performance.
3. Conformity of total project costs (including addendum) with initial costs specified in the
contract.
The innovation of the design/ builder is one of the advantages of the DB project. This
innovation makes the project more effective and efficient. This indicator is to know
whether there is innovation in the project. It shows whether the same project costs or even
lower project costs provide better results using the DB delivery system.
4. Compliance of environmental impact management during construction with
environmental documents specified in the contract.
The environment has become an important issue in construction projects. This indicator
determines whether the management of the environmental impacts during construction is
following the environmental documents specified in the contract. If environmental
documents are implemented well in the project, the project will not harm the environment
and the society around the project.
5. Compliance of health and safety management during construction with occupational
health and safety documents specified in the contract.
Construction works must meet occupational health and safety (OSH) requirements. The
application of OSH is an important factor in project implementation because it affects the
productivity and effectiveness of the project. This indicator measures health and safety
performance during construction through the presence or absence of work accidents and
the severity level of accidents that occurred.

CONCLUSION
Based on the research analysis above, several main conclusions can be written as follows.
 The DB project performance indicators divided into three parts: design phase
performance, construction phase performance, and overall performance, and three
criteria: results quality, resource usage, and objectives achieved.
 Design phase performance indicators are [1] Conformity of survey and investigation
results conducted by the design/ builder and initial survey results conducted by the owner
(to establish basic design); [2] Conformity of final design and preliminary design
submitted by the design/ builder; [3] Compatibility of methods specified in the final
design and those of the preliminary design; [4] Conformity of DED and basic design; [5]
Suitability of the quality of personnel (designers) and the qualifications and performance
requirements of the designer.
 Construction phase performance indicators are [1] Compatibility of methods used during
construction and those of in the final design; [2] Conformity of As-Built Drawing and
DED (dimensions and elevations); [3] Suitability of the quality of personnel (builders)
and the qualifications and performance requirements of the builders; [4] Conformity of
materials used during construction and those of the final design; [5] Conformity of
equipment used during construction and those of in the final design.
 Overall performance indicators are [1] Conformity of project results with the
specification; [2] Accuracy of project execution time to that of the contract; [3]
Conformity of total project costs (including addendum) with initial costs specified in the
contract; [4] Compliance of environmental impact management during construction with
environmental documents specified in the contract; [5] Compliance of health and safety
management during construction with occupational health and safety documents
specified in the contract.

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FURTHER RESEARCH
As a follow up to this research, further research is required. Recommendations for future
research are as follows.
 Assess DB projects using these indicators to determine the performance of each project.
 Analyze the factors that cause a lack of performance in the DB project.
 Determine DB project performance improvements needed based on the assessment and
the analysis.

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