Case Study: Los Angeles Metro Purple Line Extension – Delivery Method Challenges (2017)

Project Overview
• Name: Metro Purple Line Extension
• Location: Los Angeles, California
• Year: 2017
• Project Size: $5.7 billion (Phase 1)
• Scope: Subway tunnel and station construction using a Design-Build delivery method
• Lead Agencies/Contractors: Los Angeles Metro, Design-Build Contractor JV

Category of the Issue, Problem, or Challenge
• Project Delivery Method
• Design-Build

Summary of the Issue, Problem, or Challenge
During construction, conflicts arose between the design-builder and the project owner related to scope changes and risk allocation under the Design-Build contract, leading to disputes, delays, and cost escalations.

Root Cause Analysis

• Ambiguity in contract scope definitions causing differing interpretations.
• Insufficient owner involvement during design development stages.
• Risk transfer provisions led to conservative contractor pricing and change orders.
• Limited early collaboration between owner and design-builder.

Impacts Due to the Issue, Problem, or Challenge
• Construction delays of approximately 8 months.
• Cost increases estimated at $75 million due to change orders and claims.
• Increased adversarial relationships impacting project morale and productivity.

Corrective Actions Taken

1. Improved contract clarity with detailed scope definitions and design criteria.
2. Established stronger owner engagement and oversight during design.
3. Instituted collaborative risk management workshops between owner and contractor.
4. Adopted integrated project delivery principles to improve communication and trust.

Lessons Learned

• Clear, detailed contract scopes reduce disputes in Design-Build projects.
• Owner involvement during design development is crucial for alignment.
• Risk allocation should balance incentives and avoid overly conservative pricing.
• Collaborative approaches improve outcomes in complex delivery methods.

Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation

• Is the contract scope clearly and comprehensively defined?
• How actively is the owner engaged during design and construction?
• Are risks allocated fairly to promote collaboration?
• Are communication and collaboration mechanisms built into the delivery method?