Design-first policy aims to reduce cost overruns but can delay construction timing, staff says

County staff described the rationale and operational consequences of the design-first approach that guides how projects are phased in the capital budget. The approach generally means design appropriations are made in one year and construction appropriations follow in a subsequent year once design is substantially complete; staff said this practice improves cost estimating and project efficiency and reduces contingency needs.

"The main goal of completing the design before appropriating construction funds is really to improve cost estimating and project efficiency," Masterson said. Staff added that combining design and construction in the same year for projects with incomplete design commonly increases contingency and schedule risk; that can lead to underbudgeting and the need for additional appropriations later. Committees acknowledged that moving construction out a year is not necessarily abandonment but rather a tool to ensure accurate scope and cost estimates.

Exceptions exist: projects addressing significant life-safety issues or very low-risk, simple projects (for example, playground replacement) may still be advanced in a single year. Staff advised members to expect conceptual estimates and to plan for the typical one-year gap between design approval and construction appropriation unless a justified exception applies.