Case Study: San Francisco Central Subway – Design-Build Delivery Complexities (2013)

Project Overview
• Name: Central Subway Project
• Location: San Francisco, California
• Year: 2013
• Project Size: $1.6 billion
• Scope: Construction of a new subway tunnel and stations using Design-Build delivery
• Lead Agencies/Contractors: San Francisco Municipal Transportation Agency (SFMTA), Design-Build Contractor JV

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

Summary of the Issue, Problem, or Challenge
Significant construction delays and cost increases occurred due to coordination problems among design-build team members and unforeseen subsurface conditions. Contractual disputes arose over scope changes and risk allocation.

Root Cause Analysis

• Poor integration of design and construction teams early on.
• Unexpected geotechnical challenges requiring design changes.
• Ambiguities in contract regarding risk for subsurface conditions.
• Insufficient collaborative problem-solving mechanisms.

Impacts Due to the Issue, Problem, or Challenge
• Project delays exceeding 8 months.
• Cost overruns over $100 million.
• Contractor claims and prolonged dispute resolution.

Corrective Actions Taken

1. Strengthened integrated project delivery coordination protocols.
2. Clarified contract language on subsurface risk and scope changes.
3. Established joint task forces for rapid issue resolution.
4. Increased geotechnical investigation and monitoring efforts.

Lessons Learned

• Early team integration is crucial in Design-Build projects.
• Detailed geotechnical studies prevent costly surprises.
• Clear contract risk allocation improves dispute management.
• Collaborative problem-solving enhances project resilience.

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

• Are design and construction teams integrated early?
• Are geotechnical risks thoroughly investigated?
• Is contract language clear on subsurface risk?
• Are issue resolution processes collaborative and timely?