Think about what you now know about project delivery systems. Are there any specific enhancements that could be made to the currently used project delivery systems to help them to better address the needs of stakeholders? As you prepare for this Discussion, consider how stakeholder needs may change in the future. With these thoughts in mind, respond to the following questions: In your opinion, how will current project delivery systems evolve to accommodate the changing needs of society? How may the increased use of technology shape future project delivery systems? Solution The design and construction industry continues to debate which project delivery system is best. Just pick up a trade magazine and you will often find an article addressing the selection of project delivery systems for a design and construction project. It is also common for project delivery systems to be a seminar topic. So what is the “best delivery system” for a design and construction project? The answer is IT DEPENDS! There is NO silver bullet! There is NO best system! The “best delivery system” debate is wrong and misses a great opportunity for the design and construction industry. Selection of the project delivery system should be based on specific project requirements, specific characteristics and circumstances of the owner, and the successful formulation of the project team. The real opportunity for design professionals and the construction industry is to help educate owners regarding the available project delivery systems, and then assist owners in selecting the best delivery system for the specific project and circumstance. Selection should always benefit the owner while at the same time promote a winning opportunity for all project participants. This paper is intended to present concepts and tools to help owners, design professionals, and the construction industry to select and set-up a “winning delivery system” for projects. This paper is divided into three areas and each of these areas is divided into three parts: •Three Primary Project Delivery Systems—All project delivery systems can be derived from three primary systems. •Three Key Project Delivery System Principles—These include the seven major roles required for all design and construction projects, the two types of agreements owners have with design and construction providers, and the allocation of risk for winning projects. •Three Key Areas of Consideration for Project Delivery System Selection—Selection should include project, owner, and team building considerations. Three Primary Project Delivery Systems There are several good publications available that address project delivery systems. Four that are particularly helpful include: •Client Advisor by The Associated General Contractors of Massachusetts (AGC) and The Boston Society of Architects (BSA). •Handbook on Project Delivery by The American Institute of Architects, California Council (AIACC). •Project Delivery Systems for Building Construction by A.

1. Think about what you now know about project delivery systems. Are there any specific
enhancements that could be made to the currently used project delivery systems to help them to
better address the needs of stakeholders? As you prepare for this Discussion, consider how
stakeholder needs may change in the future. With these thoughts in mind, respond to the
following questions:
In your opinion, how will current project delivery systems evolve to accommodate the changing
needs of society?
How may the increased use of technology shape future project delivery systems?
Solution
The design and construction industry continues to debate which project delivery system is best.
Just pick up a trade magazine and you will often find an article addressing the selection of
project delivery systems for a design and construction project. It is also common for project
delivery systems to be a seminar topic.
So what is the “best delivery system” for a design and construction project? The answer is IT
DEPENDS! There is NO silver bullet! There is NO best system! The “best delivery system”
debate is wrong and misses a great opportunity for the design and construction industry.
Selection of the project delivery system should be based on specific project requirements,
specific characteristics and circumstances of the owner, and the successful formulation of the
project team. The real opportunity for design professionals and the construction industry is to
help educate owners regarding the available project delivery systems, and then assist owners in
selecting the best delivery system for the specific project and circumstance. Selection should
always benefit the owner while at the same time promote a winning opportunity for all project
participants.
This paper is intended to present concepts and tools to help owners, design professionals, and
the construction industry to select and set-up a “winning delivery system” for projects. This
paper is divided into three areas and each of these areas is divided into three parts:
•Three Primary Project Delivery Systems—All project delivery systems can be derived from
three primary systems.
•Three Key Project Delivery System Principles—These include the seven major roles required

2. for all design and construction projects, the two types of agreements owners have with design
and construction providers, and the allocation of risk for winning projects.
•Three Key Areas of Consideration for Project Delivery System Selection—Selection should
include project, owner, and team building considerations.
Three Primary Project Delivery Systems
There are several good publications available that address project delivery systems. Four that are
particularly helpful include:
•Client Advisor by The Associated General Contractors of Massachusetts (AGC) and The
Boston Society of Architects (BSA).
•Handbook on Project Delivery by The American Institute of Architects, California Council
(AIACC).
•Project Delivery Systems for Building Construction by Associated General Contractors of
America (AGC).
•Selecting Project Delivery Systems by The Project Delivery Institute (PDI).
These publications tend to present materials without significant bias and in the spirit of
benefiting the owner and creating a winning circumstance for all project participants. While there
is certainly some general overall consistency presented in these publications, they do not,
however, offer a consistent definition of what is a project delivery system or what are the
available project delivery systems.
PDI, in their publication listed above, perhaps offers the best definition of a project delivery
system. For the purpose of this paper, PDI’s definition has been adopted but slightly modified as
follows:
•Definition of a Project Delivery System—A project delivery system defines the structure of the
relationships of the parties, the roles and responsibilities of the parties, and the general sequence
of activities required to deliver the project (PDI, 1999, p. 4).

3. The issue of defining the available project delivery systems used in the United States today can
be simplified by first looking at the structure of the relationship and overall responsibility of the
performing parties with respect to the owner. In examining the multitude of ways that design and
construction projects are delivered, it is apparent that project delivery systems are structured in
three ways. These structures include single source responsibility, dual source responsibility, and
triple source responsibility. All project delivery systems can be derived from these three primary
systems or structures. The number of subsystems available for eachprimary system is limited
only by the creativity of the project team. Next let’s examine the structure and general sequence
of activities for each primary delivery system. The roles and responsibility for each system will
be examined in the next section.
Single Source Responsibility—Design-Build Project Delivery
Single source responsibility project delivery is accomplished by one entity that is responsible to
the owner for delivery of both the design and construction of the project. This delivery system is
often referred to as design-build or turnkey. The single source entity or design-build entity can be
a variety of types of firms. Examples include:
•Integrated Firm—Performs both design and construction, but subcontracts specialty services
and work.
Exhibit 1. Design-Build Project Delivery—Single Source Responsibility
Exhibit 2. Design-Build Project Delivery With Bridging
•Construction Firm—Performs construction work, but subcontracts selected construction work
to trade contractors and design services to a design firm.
•Design Firm—Performs the design services, but subcontracts specialty design services and
construction work to a general contractor or to trade contractors.
•Developer Firm—Performs very little of the actual design and construction with own forces.

4. The sequence of activities for this delivery method is usually consistent with that illustrated in
Exhibit 1. The degree of overlap between design and construction activities can vary
substantially depending on specific project circumstances. The selection of the design-build
entity can either be on a price bid or negotiated basis. For more complex projects, the owner may
use an independent design entity to prepare 15 to 30% documents in order to provide enough
definition to select and procure the design-build entity. This process is called bridging and is
illustrated in Exhibit 2. The bridging design effort can be accomplished by the owner, an
independent design firm, or under separate agreement to the design-build entity.
Dual Source Responsibility—General Contracting Project Delivery
Dual source responsibility project delivery is accomplished by two entities that are responsible
by contract to the owner but not to each other. One entity is responsible for design and the other
for construction. The construction entity is usually a general contracting firm; thus, this system is
often referred to as general contracting project delivery. Designer selection is usually
accomplished by negotiations while the selection of the general contractor can be by either a
price bid or negotiated basis. The method of selection of the general contractor impacts the
sequence of activities as illustrated in Exhibit 3 and described as follows:
Exhibit 3. General Contracting Project Delivery—Dual Source Responsibility
Exhibit 4. Advisory Construction Management—Triple Source Responsibility
•When the general contractor is selected by price bid, the activity sequence is linear and is
typically referred to as design-bid-build project delivery.
•When the constructor is selected by a negotiated basis, the general contractor usually enters the
project nearly at the same time as the designer and provides input during the design process. The
general contractor eventually negotiates a firm contract with the owner. This sequence also
allows for overlap of design and construction. This system is typically referred to as negotiated
team project delivery.

5. •When a construction management firm is used in lieu of a general contractor, this system is
typically referred to as construction management at riskproject delivery. The delivery sequence
is similar to that of the negotiated team delivery Triple Source Responsibility—Advisory
Construction Management
Triple source responsibility project delivery is actually an adaptation of the general contracting
delivery system with the difference being that a construction manager joins the designer and the
contractor as the third party responsible by contract to the owner. The construction manager is an
advisory to the owner and provides management services for the project. Thus, this system is
typically referred to as advisory construction management project delivery. (Sometimes this
system is called agency construction management. The difference is thatadvisors only advise
owners while agents are legally permitted to act on the owner’s behalf without obtaining the
owner’s approval.)
Exhibit 5. Project Delivery Role Responsibilities
Exhibit 6. Types of Agreement With Owners
In some cases, the construction manager is hired first and assists the owner in hiring the
designer. In other cases, the construction manager is hired during or after design. The owner
either contracts for construction with a general contractor or, in most cases, with several trade
contractors. In the latter case, the construction manager coordinates the construction activities.
Three Key Project Delivery System PrinciplesPrinciple 1—Seven Major Roles are Required on
all Design and Construction Projects
There are seven major roles that must be filled on every design and construction project. These
roles are the same regardless of the delivery system selected. The seven roles are:
•Owner Decision-Maker—This is the person or persons with the authority to make project
decisions on behalf of the owner.

6. Exhibit 7. General Rules for the Fair Allocation of Project Risk Among Owners, Designers, and
Contractors
•Project Management—The guidance of project and project related activities from beginning to
end through the application of knowledge, skills, tools, and processes in order to meet or exceed
stakeholder needs and expectations from the project.
•Design—The solution to the owner’s project needs in the form of contract documents from
which cost estimates can be obtained and the project constructed.
•Contracting—The arranging for or holding of the contracts with performing (trade) contractors.
•Construction—The hands-on work of the performing (trade) contractors who actually build the
project with their own workforces.
•Construction Coordination—Directing of the performing (trade) contractors during
construction.
•Construction Contract Administration—The servicing of contracts for construction held by
contractors.
Exhibit 5 indicates which party is typically responsible for filling each of the seven roles for
each of the three primary project delivery systems.
While actual role assignments can, of course, vary on specific projects (remember methods of
project delivery are only limited by the creativity of the project team), each of the seven roles
must be assigned to a responsible party in the project delivery structure. Without excellent
performance in each of these roles, a project has limited prospect for unqualified success—at
least from the owner’s perspective.
While it is the owner’s responsibility to assign a responsible party to each of these roles, many
owners do not understand this responsibility or the available delivery systems and processes.
Therefore, design professionals and the construction industry have an opportunity to lead owners

7. through the project delivery selection process and to assist the owner in filling the seven essential
roles.
Think of a project that you have been involved in that did not go well. Next study the roles and
the typical assignments for the particular delivery system of your example. Can you identify one
or more roles that were either not assigned or were assigned to a party that did not perform with
excellence?
One of the most common failings in project delivery is in the project management role
particularly in the general contracting and advisory construction management delivery systems.
In the general contracting system, the designe but neglects the management of the overall
project. This does not suggest that the designer should manage the actual construction process,
but rather the management of the design and construction as they relate to the delivery of the
successful project. In the construction management delivery system, there is often confusion
regarding assignment of the project management role between the designer and the construction
manager. Design professionals have a great opportunity to provide project leadership in the
project management role for many forms of project delivery.
Principle 2—Two Types of Agreements Owners Have With Designers and Constructors
Owners enter into agreements with various entities to perform design or management services
and construction work. These agreements are of two general types. It is important to the
understanding and selection of the delivery system to recognize the difference in performance
responsibilities required by these two types of agreements. The two types, advisory agreements
and contractor agreements, are defined as follows:
•Advisory Agreement—An advisor is expected to make all decisions to the benefit of the owner.
•Contractor Agreement—A contractor is expected to make decisions to their own benefit
(improve the efficiency of construction) as long as such decisions are consistent with the terms
and conditions of the contract and the plans and specifications.
Exhibit 6 indicates the type of agreement each party has with the owner for each delivery
system. This is a tool owners can use in helping to select a delivery system for their projects. In
the design-build delivery system, the single agreement is a contractor type agreement. In the
general contracting and advisory construction management delivery systems, agreements are

8. both advisory and contractor types. Some owners will have a greater comfort with certain types
of agreements. The important thing is that neither type of agreement is good nor bad, but the
parties holding each type of agreement have a different responsibility to the owner.
Principle 3—Allocate Risks for a Winning Project
It is often said that agreements (contracts) are only needed if there is a problem with the project
and when lawyers get involved. While contracts are indeed important for dispute resolution, they
are foremost important in establishing a “meeting of the minds” or “an understanding between
the parties.” Meaningful contact negotiations cannot only lead to a meeting of the minds, but can
also serve as an excellent tool in building project teams. The project participants often overlook
this important benefit of contracts.
It is important to the success of a project that contracts create a win-win scenario for all parties.
An important principle for accomplishing this through contracts is by the fair allocation of
project risks to the all the parties. Exhibit 7 provides a few general rules for use in the fair
allocation of project risk.