QBS: The smart investment for Georgia’s local governments
Cost-based procurement prioritizes low cost, but ends up costing more.
QBS, short for Qualifications Based Selection, means a professional service provider is selected solely on their ability to do the work without considering price. This may seem like a bad deal for many of us who factor price into almost every decision. However, when it comes to engineering services, I can assure you that you get what you pay for. A recent ACEC Research Institute study conducted by researchers from the University of Colorado Boulder and Georgia Institute of Technology found that projects using QBS experienced less cost growth (3% vs. 6%) and schedule delays (7% vs. 10%) compared to national averages. Additionally, QBS projects received high satisfaction ratings from project owners (89%) and were more likely to foster innovative solutions.
Choosing an engineering firm based on qualifications and experience isn’t just about getting expertise — it’s a financial strategy that pays off over time. Here’s how:
Preventing delays
Every day on the schedule for most projects represents a substantial sum of money gained or lost. Delays from missed milestones and redesign are schedule killers, often due to inadequate planning and overlooked details. Experienced engineering firms are equipped to anticipate challenges and integrate solutions early in the project life cycle, reducing the risk of costly rework and missed deadlines. Less experienced firms may lack the foresight to address potential issues, leading to expensive delays.
Navigating regulations
Qualified engineering firms have a staff with extensive knowledge of local, state, and federal regulations. These regulations and requirements are often connected to funding sources essential to the project’s completion. The importance of understanding the nuances of regulations cannot be overstated. Non-compliance can prove costly, not just in loss of funding, fines, and fees but also in the cost of schedule delays spent rectifying errors to gain approval. The best way a municipality or DOT can protect against compliance failure is to have highly qualified professionals leading the project.
Optimizing costs
Experienced firms consider a project's life cycle, from construction to long-term maintenance. They have the expertise to incorporate value engineering into the concept and early preliminary design, saving money during construction through creative solutions that meet the project's needs. For example, an experienced design team can efficiently work through several design iterations using advanced design software to identify the optimal solution to a value engineering proposition. This ability to incorporate value engineering in the early design phases can save clients significant capital and O&M costs throughout a project’s life cycle.
Investing long term
While cost is important, it should never overshadow the value of an engineer’s competence. When decision makers select an engineering firm based solely on qualifications, they take out an insurance policy of sorts, with the engineering fee guarding the overall investment that can stretch into the hundreds of millions over the project's life cycle value. Investing in quality engineering design up front protects the construction investment and the community’s reputation and residents for years.
The QBS precedent
Georgia has required QBS at the state level since the 1980s, not long after the Brooks Act established QBS procurement procedures for all federal projects in 1972.
Recognizing the value of QBS, many states across the country have passed Mini-Brooks Act laws at the state and local levels based on this federal law. According to the 2013 ACEC Survey of State QBS Laws and Registration Boards, over half of the nation’s states require QBS locally.
These local governments aren’t struggling to contract with qualified engineering firms. Many seem to be doing quite well with it. They’re seeing the long-term value of hiring a partner who delivers quality on schedule and has the expertise to see the project through to success.
That’s what local governments in Georgia deserve, too. We urge the Georgia House of Representatives to support the final passage of Senate Bill 51, sponsored by Senator Ed Setzler (R-Acworth), and we are thankful for the efforts of similar proposed legislation in House Bill 152, sponsored by Representative Matt Reeves (R-Duluth). SB 51 is bipartisan legislation which passed the Georgia State Senate 54-1. It would extend the Mini-Brooks Act to local governments in Georgia and require QBS to procure architecture and engineering services. It’s past time for Georgia to implement these QBS requirements to protect Georgia’s standing as the No. 1 State for Business.
I think a quote attributed to Benjamin Franklin sums it up: “The bitterness of poor quality remains long after the sweetness of low price is forgotten.”
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