San Diego Overhauls Infrastructure Approach to Tackle $12 Billion Backlog

San Diego is changing how it approaches infrastructure projects, shifting to a model where contractors participate in the design phase, rather than solely building plans created by city engineers. This move aims to address a staggering $12 billion in overdue projects.

City officials anticipate the new system, recently approved by the City Council, will reduce cost overruns, enhance project quality, increase clarity, and accelerate the completion of the city’s extensive infrastructure backlog.

“These changes aim to help the city meet growing infrastructure needs by streamlining the capital advancement programme, enhancing public works contracts and encouraging innovation,” explained city engineer Rania Amen. “This diversified approach will enable the city to better manage costs,schedules,risks and quality.”

The new method will be implemented in major upcoming projects, including the Hodges Dam replacement, the convention center expansion, and the construction of new drainage channels in southeastern San Diego, an area impacted by January 2024 flooding.

Early collaboration between contractors and city officials is expected to foster a clearer understanding of project goals and facilitate innovative solutions that improve overall quality.

San Diego currently faces a $6.5 billion infrastructure funding gap over the next five years – the largest in the city’s history, more than tripling from $2.16 billion in early 2020 – despite anticipating approximately $5.5 billion in infrastructure spending.

!City’s infrastructure funding gap widens

City officials believe the new approach will expedite the replacement of aging infrastructure, much of which was built during the city’s rapid population growth in the 1950s, 60s, and 70s.

while some projects may initially see higher costs due to the selection of contractors based on qualifications rather than solely the lowest bid, officials argue that early collaboration and value engineering will ultimately mitigate cost overruns and generate savings.

The city’s independent budget analyst suggests that although some projects might begin more slowly due to the contractor selection process preceding design, the overall timeline is likely to be faster by eliminating sequential tasks.

A crucial component of the process requires contractors to propose a guaranteed maximum price midway thru the design phase, which the city can either accept or reject in favor of another contractor.

Councilmember Sean Elo-Rivera hailed the new model as a notable policy change, stating, “We’ve actually missed out by not having these tools in the city’s toolbox.”

The new tools, known as “progressive design-build” and “construction manager at risk,” represent a key shift in how san Diego manages it’s infrastructure needs.