Case Study: Houston North Houston Highway Improvement Project – Design-Build Delivery Disputes (2019)
Project Overview
• Name: North Houston Highway Improvement Project (NHHIP)
• Location: Houston, Texas
• Year: 2019
• Project Size: $7 billion (phase-wise)
• Scope: Widening and reconstruction of I-45 corridor using a phased Design-Build approach
• Lead Agencies/Contractors: Texas DOT, Design-Build Contractor JV
Category of the Issue, Problem, or Challenge
• Project Delivery Method
• Design-Build
Summary of the Issue, Problem, or Challenge
Significant disputes arose between owner and contractor over unforeseen site conditions and schedule pressures. Contract ambiguities over risk-sharing and scope changes led to multiple change orders and slowed construction progress.
Root Cause Analysis
- Contractual risk allocation unclear for subsurface conditions.
- Inadequate geotechnical investigations before construction.
- Aggressive schedule unrealistic for scope complexity.
- Lack of early collaboration on scope modifications.
Impacts Due to the Issue, Problem, or Challenge
• Construction delays exceeding 9 months.
• Cost overruns of approximately $150 million.
• Increased adversarial contract management environment.
Corrective Actions Taken
- Contract amendments clarifying risk sharing on site conditions.
- Enhanced subsurface investigation program for subsequent phases.
- Joint scheduling workshops to establish realistic timelines.
- Improved collaboration forums for scope and design changes.
Lessons Learned
- Clear risk allocation for site conditions is critical in Design-Build contracts.
- Thorough pre-construction investigations reduce surprises.
- Realistic scheduling reduces pressure-induced conflicts.
- Collaboration improves management of evolving project scope.
Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation
- Are site condition risks clearly allocated?
- Are geotechnical investigations adequate and timely?
- Is schedule development realistic and collaborative?
- Are change management processes well defined and cooperative?