The document discusses various project delivery methods and factors that influence their selection. It describes design-bid-build, design-build, fast-track construction, and construction management at-risk and as an advisor. Key determinants of delivery method include owner sophistication, project size/complexity, schedule vs. budget priorities, and bidding climate. Each method has advantages and disadvantages related to communication, cost control, risk allocation, and owner involvement.

1. Project Delivery Determinants Owner Sophistication Type of Project Delivery Methods

2. Why Project Delivery? Owner’s approach to organizing the project team Manage the entire design and construction process Owner’s desire to deliver the project ON TIME, WITHIN BUDGET and will meet the owner’s needs most effectively

3. Determinants Common Elements to Defining Projects: Scope, Quality, Schedule & Budget Site Planning Approach Financing Delivery Process Aspirations

4. Determinants Which Delivery Process to Recommend: Size & Complexity of Project Schedule vs. Budget Driven Global Economy / Bidding Climate Owner Sophistication

5. Owner Sophistication Constantly Building Large Developers Large Government Agencies Infrequent Building Small Developers Small Government Agencies One-Time Builders Individuals

6. Owner Sophistication Constantly Building Great experience & knowledge of design & construction Identify specific project requirements Require little educating by architects and contractors. Usually have their own contracts, etc.

7. Owner Sophistication Infrequently Building Some experience & knowledge of design & construction Need help in identifying specific project requirements Require moderate educating by architects and contractors.

8. Owner Sophistication One-time Builder “ Kamikaze” Clients Require large amount of education Need Architect to define requirements Usually involves pre-design services by Architect (as Additional Services).

9. Who are the Players in a Construction Project? AKA The “Golden Triangle” Financial Marketing Legal Property Managers Users Owner

10. Who are the Players in a Construction Project? AKA The “Golden Triangle” Engineers Consultants CADD Design Development Specifier Owner Architect Contract

11. Who are the Players in a Construction Project? AKA The “Golden Triangle” Subcontractors Suppliers Estimating Procurement Scheduling Field Operations Owner Architect Contractor Contract

12. Project Delivery Methods Design-Bid-Build Design/Build Fast Track Construction Management

13. Project Delivery Methods DESIGN-BID-BUILD Most Common Method Used in U.S. Most “Traditional” Method Linear Progression Construction cost determined after all bids are received & accepted May have multiple contractors

14. Design-Bid-Build Project Timeline A need for a facility is identified by the owner Owner hires Architect to complete design and documentation Project is solicited for competitive bid Owner Selects Contractor based on submitted bids Owner awards contract to winning bidder and construction commences

15. Project Delivery Methods DESIGN-BID-BUILD Contractor is solely responsible for delivering the completed project Must comply with contract documents GC may subcontract much of the work (TYPICAL) Owner has A/E administer the contract or can have in-house people administer contract Still the most popular method of delivery but not predominant method.

16. Project Delivery Methods DESIGN-BID-BUILD $ Bid Price $ Owner Architect Contractor $ Design Fee $ Contract Documents Engineers/ Consultants Informal relationship Subcontractors/ Suppliers

17. Project Delivery Methods DESIGN-BID-BUILD ADVANTAGES Well-defined relationship Procedures and contractual rules have been worked out; well understood Reduces risk, no uncertainty Considerable contractual protection for owner Owner benefits from open market competition Owner not heavily involved in construction process DISADVANTAGES Contractor does not start construction process until design is complete Design features that could be built more economically often result in higher costs Timeline is linear & sequential; no way to overlap tasks May raise interest expenses and be subject to inflation All parties are self-governed Provides little opportunity for interaction and team building

18. Project Delivery Methods DESIGN/BUILD Single point of contact for Owner through entire project (design to construction) Owner must specify exact project requirements Typically Contractor has lead role Architect relinquishes control Contractor controls costs & quality Architect is selected by Contractor

19. Architect Contractor Subcontractors Suppliers Estimating Procurement Scheduling Field Operations Engineers Consultants CADD Design Development Specifier Formed Design-Build Owner

20. Project Delivery Methods DESIGN/BUILD Firm hired will complete both design and construction Design/Build Firms with in-house design and construction services Joint venture Firms that contractually come together Both entities can hire subcontractors to complete the work

21. Project Delivery Methods DESIGN/BUILD Project team is established at start of design Contract Award Completed Project Owner Design/Build Firm Engineers/ Consultants Subcontractors/ Suppliers

22. Project Delivery Methods DESIGN/BUILD ADVANTAGES Good communication between design team and construction team Tasks can overlap; project can be fast-tracked Construction input early in design phase Constructability analyses Value engineering Subcontractor pricing Easy incorporation of changes Owner involvement minimal in day-today communication between A/E and contractor DISADVANTAGES Owner can not obtain “real” pricing; design and construction costs can not be determined until later Firming up costs too soon puts constraints on scope of work; could effect quality to protect profit D/B works very fast, Owner needs to stay involved Owner could make decisions without fully understanding the issues No checks and balances

23. Project Delivery Methods FAST TRACK Process of administering multiple construction contracts for the same project Construction phases are staggered Portions of work are started as soon as design is completed Shortens construction timeline considerably Used when Schedule is most important Design and construction overlap

24. Project Delivery Methods FAST TRACK Design/Build works best for Fast Track Requires early design decisions to be adhered to, or very costly to change Construction cost management is RISKY If project runs late, project will incur huge cost overruns Design Fees Management Fees Changes

25. Project Delivery Methods FAST TRACK Design Fast-tracked Phased Construction Project Complete Project Complete Contract Package 1 2 3 4 -Bid -Build Design Procurement Construction Design Procurement Construction Design Procurement Construction Design Procurement Construction Design Procurement Construction Time Saved

26. Two Types: At-Risk Advisor Project Delivery Methods CONSTRUCTION MANAGEMENT

27. Project Delivery Methods CM-AT RISK Also known as “CM-Constructor” Often uses GMP (Guaranteed Maximum Price) – construction cost based on early (pre 100% CD) documents Owner hires design firm and construction firm early in the preconstruction phase Often CM is also hired during design phase – early decisions have direct affect on CM’s costs

28. Project Delivery Methods CM-AT RISK $ Bid Price $ Completed Project Contract Award Contractor Fee Owner Architect Contractor $ Design Fee $ Contract Docs Engineers/ Consultants Subcontractors/ Suppliers Contracting Services

29. ADVANTAGES Good communication between owner, design team and constructor Encourages collaboration and allows construction people to critique and influence the design before it’s bid Allows for good value-engineering Allows for fast-tracking Owners receives cost benefit of competitive bid from subcontractors Changes are worked out more easily DISADVANTAGES Everyone has to remain amicable throughout project Owner has to be involved; requires a knowledgeable owner Fast-tracking is usually required, but can be risky if the firm does not have the organizational sophistication to handle it. Project Delivery Methods CM-AT RISK

30. CM hired during design Provides services in support of design process: Cost Estimating Constructability Scheduling Phasing/Logistics CM may assist during Construction as an Advisor (not at risk) Project Delivery Methods CM-ADVISOR

31. Project Delivery Methods CM-ADVISOR Project team is established at start of design $ Design Fee $ Contract Award Completed Project Owner Architect Contract Documents Engineers/ Consultants Subcontractors/ Suppliers Management Services

32. NEXT LECTURE Contract Documents The Bidding Process Construction Contracts