Design-build contractor pitches single-team approach to Taos board, promises fewer change orders
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Summary
Performance Services representatives told the Taos board that design-build contracting bundles design and construction accountability, offers open-book pricing and can reduce delays and change orders; board members asked about local subcontractor use and procurement pathways.
A national design-build contractor, Performance Services, presented to the Taos Municipal Schools board on Dec. 10, describing the design-build delivery method and saying it can reduce cost uncertainty, speed delivery, and eliminate many change orders.
Bob (Robert) Georgoff opened the presentation and introduced Chris Garrity and Russell Kennedy, who explained the difference between design-bid-build or construction manager models and design-build. Chris Garrity said design-build places design and construction under a single contract and team, which reduces disputes. Russell Kennedy described the firm's approach of vertical integration, open-book pricing and direct subcontracting to limit double markups and asserted the company can “guarantee no change orders,” adding that the firm will "eat" mistakes rather than issue change orders to the district.
Board members queried the firm's New Mexico experience, local hiring practices, procurement pathways and references. The presenters said they operate in 17 states, have completed projects in New Mexico previously, will use local subcontractors when appropriate, and can participate through cooperative procurement (TIPS), RFQ/RFP or other accepted public-procurement routes.
Several trustees said they liked the accountability and speed the model promises but raised concerns about ensuring local trades benefit from bond dollars and asked to see references and contract terms before any selection. The board did not take an action to change procurement practices at this meeting; the presentation was framed as informational so trustees could weigh options before deciding whether to pursue design-build for specific bond projects.
Representative quote: “When we present the design documents and the price, that is the price. We have mistakes. We eat it.”
Next steps: staff will provide procurement options and references so the board can compare traditional and design-build approaches before selecting a contracting path for bond-funded projects.