The April 11, 2014, Bond Buyer published an article by Squire Sanders lawyers Roderick N. Devlin and Gregory R. Daniels, “N.Y. State Budget Omits P3s and Design-Build Procurement.” The article notes that New York State failed to reauthorize “design-build” procurement or to authorize the use of P3s in its 2014/15 budget, as many had hoped.
Roddy and Greg note that since design-build procurement was authorized by the New York legislature in 2011 it has been widely and successfully used. As of March 2014, US$171.2 million of projects in the state have been completed using “design-build” procurement, with many more in process. The article argues that the New York State agencies employing design-build procurement have realized significant cost savings and accelerated the timetables of several important construction projects.
Design-build procurement was authorized by the New York legislature only for a three year period in 2011. If it is allowed to expire in December 2014, Roddy and Greg note that New York will become one of only five states that do not allow the use of design-build construction to deliver public infrastructure projects.