States are increasingly authorizing alternative project delivery methods like design-build and construction management at risk to help public agencies complete construction projects more efficiently. The use of these methods is growing in both public and private sectors. While they provide benefits like reduced costs and schedules, they also introduce new risks that all parties must understand and address. As the market for alternative delivery continues expanding, owners, designers, and contractors must work together to fully leverage the team approach and ensure projects succeed.
EY presented at the 22 World Petroleum Congress, focusing on the impact of the lower oil price on LNG megaprojects, the opportunities and challenges to adopt new practices to make megaprojects more cost effective.
Alternative Energy Vehicles, Clean Technologies Going Mainstream – Pipe Dream...Airfoil
We urge the automotive industry to look no further than the technology industry for inspiration, for best practices, for partnerships. Technology companies are fast companies. They have created a way of moving forward and placing the latest and greatest, often inconceivable, capabilities quickly in the hands of customers.
Tech developers also have much to learn from the best manufacturing practices of automotive companies.
Bringing these two industries together can propel the U.S. into regaining its manufacturing dominance and becoming a world leader in advanced automotive technologies, including alternative-energy vehicles. The Point of View lays out five steps that auto and tech companies should take to make it a reality.
According to this year's Global Innovation 1000 study -- an examination of the 1,000 public companies that spend the most on researching and developing products for their markets -- the world's major innovators are shifting more of their R&D to software and services. The shift is being driven by the supercharged pace of improvement in what software can do, the increasing use of embedded software and sensors in products as varied as power turbines and cars, and rising customer expectations. Between 2010 and 2015, the companies in the Global Innovation 1000 study increased their R&D spending on software offerings by 65 percent and their spending on service offerings by 36 percent. As this shift intensifies, companies are facing an array of managerial, organizational, and cultural challenges.
EY presented at the 22 World Petroleum Congress, focusing on the impact of the lower oil price on LNG megaprojects, the opportunities and challenges to adopt new practices to make megaprojects more cost effective.
Alternative Energy Vehicles, Clean Technologies Going Mainstream – Pipe Dream...Airfoil
We urge the automotive industry to look no further than the technology industry for inspiration, for best practices, for partnerships. Technology companies are fast companies. They have created a way of moving forward and placing the latest and greatest, often inconceivable, capabilities quickly in the hands of customers.
Tech developers also have much to learn from the best manufacturing practices of automotive companies.
Bringing these two industries together can propel the U.S. into regaining its manufacturing dominance and becoming a world leader in advanced automotive technologies, including alternative-energy vehicles. The Point of View lays out five steps that auto and tech companies should take to make it a reality.
According to this year's Global Innovation 1000 study -- an examination of the 1,000 public companies that spend the most on researching and developing products for their markets -- the world's major innovators are shifting more of their R&D to software and services. The shift is being driven by the supercharged pace of improvement in what software can do, the increasing use of embedded software and sensors in products as varied as power turbines and cars, and rising customer expectations. Between 2010 and 2015, the companies in the Global Innovation 1000 study increased their R&D spending on software offerings by 65 percent and their spending on service offerings by 36 percent. As this shift intensifies, companies are facing an array of managerial, organizational, and cultural challenges.
The vast and crucial auto suppliers industry faces several competitive challenges -- rapid growth in emerging markets, pressure to meet clean air and mileage regulations, and the impact of technology and connectivity. Amid intense competition, suppliers will have to learn how to differentiate themselves and their products to preserve a profitable place in the automobile ecosystem and maintain high entry barriers for rivals. To do so, they must reexamine the profit potential of their products and portfolios, and focus on the innovation potential inherent in each of them.
As the boundaries blur among hardware, software, services, and telecom, tech sectors become less relevant. Tech companies now distinguish themselves through their strategic identity. This analysis of leading enterprise-oriented information and communications technology (ICT) companies shows them competing for customers -- but setting themselves apart in new ways.
Canadian municipalities issued $8.8 billion worth of building permits in December, up 6.0% from November and the
fourth consecutive monthly increase. The gain was largely due to higher construction intentions for multi-family
dwellings and commercial buildings, with both components hitting record highs.
Each technological age has been marked by a shift in how the industrial platform enables companies to rethink their business processes and create wealth. In the talk I argue that we are limiting our view of what this next industrial/digital age can offer because of how we read, measure and through that perceive the world (how we cherry pick data). Companies are locked in metrics and quantitative measures, data that can fit into a spreadsheet. And by that they see the digital transformation merely as an efficiency tool to the fossil fuel age. But we need to stretch further…
Construction costs continue to grow nationwide, and many landlords are looking to redevelop existing stock in major markets.
Tenant improvements (TIs) are also gaining momentum, and office landlords are competing for by offering more attractive TI packages. These offerings allow tenants to customize interiors without paying for a full redesign out of pocket, and are a key piece of lease negotiations. The average TI allowance nationwide is $30.00 per square foot, and just over $50.00 per square foot in CBDs.
A white paper authored by the Benesch law firm, based on a national survey conducted by Benesch and the National Tank Truck Carriers and Ohio Trucking Association. The white paper outlines the ways in which the shale boom in the U.S. has and will continue to change trucking in this country. In short, the increase in shale drilling has lead to an increase in trucking--a positive sign of economic growth for the future.
In late 2014, oil prices experienced significant declines due to oversaturated supply and a slowdown in global demand. Prices have since stabilized but at depressed levels. Materials prices were projected to drop in correlation with oil, but high demand for most major construction inputs has kept prices up overall.
Low gas prices typically drive an uptick in demand for retail, e-commerce, and industrial real estate. However, shipping costs remain high due to a decline in available labor, negating much of the oil price savings.
In the office market, the development pipeline continues to expand alongside rents, which increased 3.1 percent this quarter. U.S. markets are set to deliver more than 80 million square feet currently under development. Energy-heavy markets such as Houston are exceptions to this trend, as declining demand stifles the need for new space.
Impact of the Manufacturing Renaissance from Energy Intensive SectorsMarcellus Drilling News
A report released March 20, 2014 from the U.S. Conference of Mayors that shows the impact of abundant, inexpensive natural gas is having and will continue to have to 2020 and beyond on nine key manufacturing sectors. The report shows that 72% of the benefit from cheap shale gas will go to 363 metropolitan areas across the United States. That is, America's major cities are the beneficiaries, in both jobs and economic impact, from abundant nautral gas.
Industry 4.0 and the Innovation Gap in Advanced ManufacturingMike Nager
White paper describing the challenges the Industry 4.0 and Advanced Manufacturing will bring to workforce development and training of technicians and engineers.
Construction starts were up in 2014, driven largely by the office and industrial sectors in energy-producing markets, as well as traditional office markets like New York. Even as demand explodes, though, the cost to build is higher than ever thanks to the continued increase in labor and materials costs.
Demand for large retail space has declined as more consumers shop online. Much of the growth in the industrial sector, in fact, is to meet growing demand for shipping and warehousing space.
The Construction Backlog Index is high, indicating that 2015 will be a big year for construction. Industry unemployment rates remain high, so there is large potential employment pool to meet demand. In addition, we expect materials costs to drop.
Due to dropping oil prices, one sector that may see a construction decline in 2015 is energy. This will greatly impact Houston in particular, as it was a hub of construction activity last year.
The new and improved Construction Lead Generation - The Definitive Guide will share the results of our most recent national survey on construction lead generation. Importantly, the guide details the current state of the top two construction lead services: Dodge Data & Analytics, and ConstructConnect. Next, the guide identifies several other construction lead services that tend to specialize in regions, type of construction project or service offerings. Finally, other types of lead sources are identified and categorized by Traditional, Internet, and Social Media.
The vast and crucial auto suppliers industry faces several competitive challenges -- rapid growth in emerging markets, pressure to meet clean air and mileage regulations, and the impact of technology and connectivity. Amid intense competition, suppliers will have to learn how to differentiate themselves and their products to preserve a profitable place in the automobile ecosystem and maintain high entry barriers for rivals. To do so, they must reexamine the profit potential of their products and portfolios, and focus on the innovation potential inherent in each of them.
As the boundaries blur among hardware, software, services, and telecom, tech sectors become less relevant. Tech companies now distinguish themselves through their strategic identity. This analysis of leading enterprise-oriented information and communications technology (ICT) companies shows them competing for customers -- but setting themselves apart in new ways.
Canadian municipalities issued $8.8 billion worth of building permits in December, up 6.0% from November and the
fourth consecutive monthly increase. The gain was largely due to higher construction intentions for multi-family
dwellings and commercial buildings, with both components hitting record highs.
Each technological age has been marked by a shift in how the industrial platform enables companies to rethink their business processes and create wealth. In the talk I argue that we are limiting our view of what this next industrial/digital age can offer because of how we read, measure and through that perceive the world (how we cherry pick data). Companies are locked in metrics and quantitative measures, data that can fit into a spreadsheet. And by that they see the digital transformation merely as an efficiency tool to the fossil fuel age. But we need to stretch further…
Construction costs continue to grow nationwide, and many landlords are looking to redevelop existing stock in major markets.
Tenant improvements (TIs) are also gaining momentum, and office landlords are competing for by offering more attractive TI packages. These offerings allow tenants to customize interiors without paying for a full redesign out of pocket, and are a key piece of lease negotiations. The average TI allowance nationwide is $30.00 per square foot, and just over $50.00 per square foot in CBDs.
A white paper authored by the Benesch law firm, based on a national survey conducted by Benesch and the National Tank Truck Carriers and Ohio Trucking Association. The white paper outlines the ways in which the shale boom in the U.S. has and will continue to change trucking in this country. In short, the increase in shale drilling has lead to an increase in trucking--a positive sign of economic growth for the future.
In late 2014, oil prices experienced significant declines due to oversaturated supply and a slowdown in global demand. Prices have since stabilized but at depressed levels. Materials prices were projected to drop in correlation with oil, but high demand for most major construction inputs has kept prices up overall.
Low gas prices typically drive an uptick in demand for retail, e-commerce, and industrial real estate. However, shipping costs remain high due to a decline in available labor, negating much of the oil price savings.
In the office market, the development pipeline continues to expand alongside rents, which increased 3.1 percent this quarter. U.S. markets are set to deliver more than 80 million square feet currently under development. Energy-heavy markets such as Houston are exceptions to this trend, as declining demand stifles the need for new space.
Impact of the Manufacturing Renaissance from Energy Intensive SectorsMarcellus Drilling News
A report released March 20, 2014 from the U.S. Conference of Mayors that shows the impact of abundant, inexpensive natural gas is having and will continue to have to 2020 and beyond on nine key manufacturing sectors. The report shows that 72% of the benefit from cheap shale gas will go to 363 metropolitan areas across the United States. That is, America's major cities are the beneficiaries, in both jobs and economic impact, from abundant nautral gas.
Industry 4.0 and the Innovation Gap in Advanced ManufacturingMike Nager
White paper describing the challenges the Industry 4.0 and Advanced Manufacturing will bring to workforce development and training of technicians and engineers.
Construction starts were up in 2014, driven largely by the office and industrial sectors in energy-producing markets, as well as traditional office markets like New York. Even as demand explodes, though, the cost to build is higher than ever thanks to the continued increase in labor and materials costs.
Demand for large retail space has declined as more consumers shop online. Much of the growth in the industrial sector, in fact, is to meet growing demand for shipping and warehousing space.
The Construction Backlog Index is high, indicating that 2015 will be a big year for construction. Industry unemployment rates remain high, so there is large potential employment pool to meet demand. In addition, we expect materials costs to drop.
Due to dropping oil prices, one sector that may see a construction decline in 2015 is energy. This will greatly impact Houston in particular, as it was a hub of construction activity last year.
The new and improved Construction Lead Generation - The Definitive Guide will share the results of our most recent national survey on construction lead generation. Importantly, the guide details the current state of the top two construction lead services: Dodge Data & Analytics, and ConstructConnect. Next, the guide identifies several other construction lead services that tend to specialize in regions, type of construction project or service offerings. Finally, other types of lead sources are identified and categorized by Traditional, Internet, and Social Media.
It might be a stretch to say everything, but it is a fact that industry behaviors have changed dramatically. Specific and significant events have led to changes in the design and construction process.
The outlook according to key players across the construction sector and the insurance industry
Key players in the construction sector recently met with leading construction insurers to discuss current trends and debate the future outlook for their industries. The meeting of minds was organised by Lucas Fettes & Partners and Constructing Excellence, the organisation charged with driving the change agenda in construction.
Read the report: The future for construction insurance
Lucas Fettes and Constructing Excellence have published a report that presents an overview of some of the insights that emerged from the initial discussion, including some direct extracts from the transcript of the evening.
Star America's latest Transportation Report. This report outlines the competitive environment in the State of Oregon. In this report you will find bid results for ORDOT projects from January 2017-September 2018 and ORDOT budget highlights.
Star America's latest Transportation Report. This report outlines the competitive environment in the State of Kentucky. In this report you will find bid results for FY2018 Kentucky Transportation Cabinet projects and Transportation Budget highlights.
Infrastructure and Design Build ContractingWagner College
This monograph was written for Wagner College's Hugh L. Carey Institute for Government Reform in August 2020 by Peter J. Kiernan, of counsel at Schiff Hardin in New York. Kiernan previously served as counsel to New York Gov. David Paterson, counsel to the deputy mayor for finance of the City of New York, and chief counsel to the New York State Senate Minority. As a Littauer fellow at the Kennedy School of Government at Harvard University, he wrote an analysis of the New York City fiscal crisis, which was published by Harvard. He is a graduate of John Carroll University, the Kennedy School of Government at Harvard, and Cornell Law School.
How to achieve productivity gains through digitisation (CIHT Annual Conferenc...Causeway Technologies
At the 2019 Annual Conference, our EVP of Contract Solutions, James Atkinson, discussed the full extent of the productivity problem in the construction sector, exploring the significant opportunity digitisation presents for contractors to address this issue on the front line, where profits are truly won or lost.
Infrastructure and Capital Investment| Canada | March 2019paul young cpa, cga
Transits are important to assist with moving people around from one location to another location
There are issues facing transit including the subsidies that government provide to support transit
Building more transit needs to include a proper risk management. There are routes being added that lose moneys which means more government moneys is required to support those routes
Transit needs to look at synergies including consolidation of transit systems within a geographic area
Govt need to bring back the non-refundable tax credit for Transit. This tax credit help the middle class
Infrastructure and Capital Investment| Canada | March 2019
ENR 2016 CM at Risk PLANT #89
1. New Laws Spur Market Growth
States increasingly are authorizing the use of alternative delivery to help
cash-strapped agencies build more efficiently By Gary J. Tulacz
Overview p. 40 // Design-Build Revenue p. 40 // CM-at-Risk Revenue p. 41 // 2016 Design-Build State Laws p. 42
Design-Build Total Revenue 2013-2015 p. 42 // CM-at-Risk Total Revenue 2013-2015 p. 42 // The ENR Top 100
Design-Build Firms List p. 43 // The ENR Top 100 Construction Management-at-Risk Firms List p. 44
PHOTOCOURTESYOFPCLCONSTRUCTIONENTERPRISES
enr.com June 13, 2016 ENR 39
NUMBER19TRAIN TO THE PLANE
PCL Construction Enterprises is
the design-builder on the South
200th Link Extension project, a
1.6-mile extension of the elevated
light-rail system to Sea-Tac
Airport in Seattle.
PROJECT DELIVERY FIRMS
ENR06132016_Top100PDF_Opener.indd 39 6/6/16 1:53 PM
2. 2007
$53.75
2007
$29.68
2008
$64.42
2008
$33.19
$ BILLIONS DOMESTIC REVENUE INTERNATIONAL REVENUE
2009
$59.33
2010
$50.23
2010
$28.01
2011
$54.68
2011
$37.37
2012
$56.56
2012
$47.33
2013
$60.92
2013
$47.87
2014
$69.26
2014
$40.32
2015
$72.74
2015
$34.432009
$30.10
As the overall market continues to grow in the U.S.,
so has the market for alternative project delivery. Own-
ers increasingly have been looking for means to
squeeze conflicts and inefficiencies out of the construc-
tion process and see the old system of looking for the
lowest first costs in the traditional design-bid-build
procurement process as failing to address these con-
cerns. This dissatisfaction with the old delivery systems
is shown by the growing volume of state legislation
authorizing public agencies to use alternative project
delivery methods.
The market for alternative project delivery in 2015
also mirrors the global construction market, as can be
seen in the rankings of ENR’s Top 100 Construction
Management-at-Risk (CMR) Firms and Top 100
Design-Build (DB) Firms. The Top 100 CMR firms
had a combined revenue from CMR of $102.97 billion
in 2015, down 1.0% from the $103.98 billion reported
by the group in 2014.
But what is striking in the numbers is that CMR
revenue from international projects in 2015 for the
Top 100 dropped 40.2%, to $10.30 billion from $17.21
billion, in 2014. In the domestic market, CMR rose
6.8%, to a record $92.67 billion, in 2015.
The DB list provides a similar contrast between
domestic and international project delivery: Overall,
the Top 100 DB firms had total revenue of $107.21
billion in 2015, down 2.2% from 2014; revenue from
domestic DB projects grew a healthy 5.0%, rising to
$72.74 billion, in 2015. On the other hand, interna-
tional DB revenue dropped 14.6% in 2015, thanks in
part to a falloff in huge engineering-procurement-
construction projects in the international mining,
power and petroleum markets.
Domestic Design-Build Rises
Alternative project delivery options such as design-
build and public-private partnerships continue to be
an evolving part of construction. “Inevitably, it is all
about creating partnerships that share in a risk-reward
scenario that drives everyone to do their best work.
We are regularly partnering with contractors to pursue
large-scale opportunities,” says John Jastrem, CEO of
Arcadis North America. He notes that Arcadis was part
of the team that delivered the massive Carlsbad De-
salination Plant using a design-build-operate-finance
project delivery approach (see ENR 10/21/13 p. 32).
Public Agency Growth
Many firms comment that alternate project delivery is
getting increased attention from owners—especially
in the public-sector markets, long bastions of tradi-
tional design-bid-build. For example, legislation
authorizing alternative approaches to project delivery
by public agencies has flourished over the past decade.
Transportation agencies have been particular benefi-
ciaries (see p. 24).
Agencies in a broad variety of sectors have gained
from this enabling legislation. In 2015, 70% of the
state bills to expand the use of design-build in the pub-
lic sector that were supported by the Design-Build
Institute of America, Washington, D.C., were passed,
says Lisa Washington, DBIA’s CEO. “Missouri just
became the 25th state to pass a law granting full au-
thorization for public agencies to use design-build,”
she notes.
The long-term lack of a federal highway bill and
uncertain infrastructure funding has forced public
agencies to seek ways to streamline their procurement
and project delivery processes. These factors have
“Inevitably, it is
all about
creating
partnerships
that share in a
risk-reward
scenario that
drives
everyone to do
their best
work.”
John Jastrem,
CEO, Arcadis
North America
THE TOP 100 PROJECT DELIVERY FIRMS #57
MESSER CONSTRUCTION recently
won an integrated project delivery
contract for Riley Hospital for Children at
Indiana University Health, Indianapolis.
40 Ⅲ ENR Ⅲ June 13, 2016 enr.com
SOURCE: DODGE DATA & ANALYTICS/ENR
ENR06132016TL_PDF_Overview.indd 40 6/6/16 2:30 PM
3. OVERVIEW
2007
$79.23
2007
$10.55
2008
$87.74
2008
$15.60
$ BILLIONS DOMESTIC REVENUE INTERNATIONAL REVENUE
2009
$73.87
2010
$63.97
2010
$14.35
2011
$64.19
2011
$19.19
2012
$70.89
2012
$20.63
2013
$77.83
2013
$19.01
2014
$86.77
2014
$17.21
2015
$92.67
2015
$10.30
2009
$15.47
created more opportunities for alternative delivery
methods, such as public-private partnerships (P3s) and
design-build, and forced all parties to work closer to-
gether. “Stronger relationships with contractors, con-
cessionaires, the financial community and other stake-
holders are no longer an option but a requirement,”
says Nick DeNichilo, CEO of Mott MacDonald,
North America, an Iselin, N.J.-based engineering firm.
While many designers resisted what they perceived
as design-build’s usurpation of their traditional role in
shaping the project’s concept and overseeing construc-
tion, many have embraced the team concept associated
with alternative project delivery. “With the fact that
design-build and CM-at-risk have dominated the de-
livery process for the past 15 or 20 years, the contrac-
tor has necessarily become a strategic partner,” says
Mike Medici, president of Detroit-based architect-
engineer SmithGroupJJR. “I truly believe that focusing
on collaboration is head and shoulders above the tra-
ditional design-bid-build process,” he says.
These enabling laws have paid dividends to firms
experienced in alternative project delivery. “In Ohio,
our clients have many delivery methods to choose
from. We see this as a positive for clients and our
organization,” says Brian Burgett, CEO of Kokosing
Inc. Kokosing currently is building a $98-million
wastewater facility for the city of Euclid, the largest-
ever CMR treatment facility to be let in Ohio, he says.
“We continue to see significant change in project
delivery in the water and wastewater-treatment
market,” says Kevin McCarthy, CEO of PC Construc-
tion. He says these markets used to be dominated by
design-bid-build projects, with owners seeking out the
lowest cost. “Now, they are seeing the benefits that
DomesticCM-at-RiskTopsRecord
design-build and construction management-at-risk
delivery provide.” PC Construction is working as a
CMR contractor for the city of Atlanta’s water-supply
program, the Charleston, S.C., water system and in-
frastructure projects for Paulding County, Ga..
Many firms formerly thought of primarily as design-
ers have developed their own in-house construction
capabilities and now are embracing their role as an inte-
grated design-builder. “Our ability to merge the tradi-
tionally separate build and design roles into a seamless
integrated team has proven to be a valuable service for
our clients,” says Greg Carlson, vice president of Burns
& McDonnell. Since these services are from a single
source, the firm is able to provide the flexibility to quickly
adapt and expedite critical-path items—design decisions,
permitting and staffing needs, for example—to achieve
aggressive schedules and budgets, Carlson says.
Concerns
Alternative project delivery has raised concerns. Some
design firms say that, when developing a project, own-
ers are looking more toward contractors, rather than
design firms. “In certain market sectors and in certain
regions, clients go to contractors first, and then design
teams work through contractors,” says Kevin Hydes,
CEO of Integral Group, an Oakland, Calif.-based en-
gineering firm. “Typically, a lot of clients in the tech
sector go that route.” To ensure their continued impact
on projects, it is important for design firms to develop
strong ties with contractors and owners, he notes.
Design firms worry about the legal implications of
design under processes such as design-build. The po-
tential shift in responsibility for design services from
the traditional design consultant to the contractor un-
“A troubling
trend is that
owners are
trying to get
more
sophisticated,
getting into
P3s or other
alternative
methods of
procurement
that they don’t
understand.
What happens
is, the risk is all
getting shoved
down to the
contractor
level.”
Bob Alger, CEO,
Lane
Construction
#20
SKANSKA USA recently completed a
new clinic for the Palo Alto Medical
Foundation, an integrated project
delivery project in San Carlos, Calif.
enr.com June 13, 2016 Ⅲ ENR Ⅲ 41
SOURCE: DODGE DATA & ANALYTICS/ENR
ENR06132016TL_PDF_Overview.indd 41 6/6/16 2:30 PM
4. der design-build and the emerging integrated project
delivery models create “contractually gray areas that
are presenting themselves and require cooperation and
creative solutions,” says Philip M. Davis, senior vice
president of architecture for Fishbeck, Thompson,
Carr & Huber Inc., a Grand Rapids, Mich.-based
architectural and engineering firm.
Risky Business
Many owners see alternative project delivery as a
means of limiting their risk on a project. However,
risk-shifting is a double-edged sword. Alternative proj-
ect delivery may help to mitigate some risks by foster-
ing teamwork, but no process can eliminate all risk.
Owners may not understand that shifting risk to the
contractor or the design-build team comes at a price.
Many firms engaged in alternative project delivery
say owners need to understand the cost of risk. “A trou-
bling trend is that owners are trying to get more
sophisticated, getting into P3s or other alternative
methods of procurement that they don’t understand.
What happens is, the risk is all getting shoved down to
the contractor level … with onerous contract terms
like consequential damages and the like. Then, when
you try to price that risk, the owner says your price is
too high. We need to find a balance between price and
risk,” says Bob Alger, CEO of Lane Construction.
Washington of DBIA stresses that understanding
the process is the key to making design-build success-
ful, particularly for owners. “It’s all about education.
People have to understand the elements of design-
build done right,” she says.
To address the issue of education, DBIA has intro-
duced a series of best-practices guides, says Washington.
2016 Design-Build State Laws
She notes that DBIA produced a general guide to
design-build best practices early in 2015 but now is is-
suing a series of market-specific guides. “We came out
with our best-practices guide for the federal sector last
August, then one for the water and wastewater markets
in January and one for transportation in March.”
Progressive Design-Build
Many firms note the increased use of design-assist, a
process that brings in the contracting team early to
assist the design team in planning out the project. “We
are finding that the increasing need for design-assist
or other very early trade input on projects is promot-
ing much deeper relationships with the subset of sub-
contractors that are able to successfully collaborate
within teams and add value during the preconstruction
and planning phase,” says Steven F. Roznowski, CEO
of The Christman Co.
Washington of DBIA says there is a growing trend
to extend this design-assist concept into the use of
design-build; this method is called progressive design-
build. A design-build team is brought in early in the
design process to work closely with the owner on spec-
ification and equipment selection. Once the design is
about 35% complete, the design-build team offers a
guaranteed maximum price.
“This approach has become more common in the
water and wastewater sectors, where complicated
equipment selection is required early on,” says Wash-
ington. She says this approach gives owners greater
input into the design without sacrificing the collabora-
tion and single point of responsibility inherent in
design-build. “It also requires a qualifications-based
selection process to be the most effective,” she says. Ⅲ
“It’s all about
education.
People need to
understand the
elements of
design-build
done right.”
Lisa Washington,
CEO, Design-
Build Institute of
America
THE TOP 100 PROJECT DELIVERY FIRMS OVERVIEW#40
ROBINS & MORTON is the CMR for
the new $187-million, 534,000-sq-ft
replacement Baptist North Mississippi
Hospital in Oxford, Miss.
Design-build is permitted
by all agencies for all types
of design and construction
Design-build is limited to one
political subdivision, e.g., agency
commission, or special project
Design-build is
widely permitted
Design-build is
a limited option
SOURCE: DESIGN-BUILD INSTITUTE OF AMERICA, 2016
IL
WA
OR
CA
NV
ID
WY
UT
NE
SD
ND
MN
WI
OH
MI
NY
TX
MO
AL
SC
FL
KY
NC
ME
IN
LA
MS
TN
GA
AZ
OK
AR
AK
WV
KS
MT
CO
NM
PA
VA
IA
NJ
MD
DE
DC
HI
CT
RI
VT
NH
MA
CM-AT-RISK
2013 $96.84
DESIGN-BUILD
2013 $108.79
CM-AT-RISK
2014 $103.98
DESIGN-BUILD
2014 $109.59
$ BILLIONS
CM-AT-RISK
2015 $102.97
DESIGN-BUILD
2015 $107.21
42 Ⅲ ENR Ⅲ June 13, 2016 enr.com
ENR06132016TL_PDF_Overview.indd 42 6/6/16 2:30 PM
5. The Top 100 Design-Build Firms
COMPANIES ARE RANKED IN $ MILLIONS BASED ON 2015 REVENUE FROM DESIGN-BUILD CONTRACTS WHERE THE PROJECT IS DESIGNED BY EMPLOYEES OF THE FIRM OR JOINT-VENTURE PARTNER AND BUILT BY ITS OWN FORCE OR SUBCONTRACTORS
UNDER ITS SUPERVISION. **NOT RANKED IN 2015 AMONG THE TOP DESIGN-BUILD FIRMS.
THE TOP 100 PROJECT DELIVERY FIRMS #31
GRAY CONSTRUCTION is the
design-builder on the 578,742-sq-ft
Clemens Food Group pork-processing
facility in Coldwater, Mich.
enr.com June 13, 2016 ENR 43
RANK TOTAL REV. DOMESTIC INTER-
2016 2015 FIRM ($ MIL.) REVENUE NATIONAL
1 1 BECHTEL, San Francisco, Calif. 17,417.0 6,517.0 10,900.0
2 2 FLUOR CORP., Irving, Texas 11,552.2 4,484.6 7,067.6
3 3 CB&I INC., The Woodlands, Texas 10,446.1 6,907.3 3,538.8
4 4 JACOBS, Pasadena, Calif. 8,470.0 4,190.0 4,280.0
5 5 KIEWIT CORP., Omaha, Neb. 5,768.9 4,747.8 1,021.1
6 6 KBR, Houston, Texas 3,238.4 911.5 2,326.9
7 8 THE WALSH GROUP LTD., Chicago, Ill. 2,144.4 2,144.4 0.0
8 20 ZACHRY GROUP, San Antonio, Texas 1,991.0 1,991.0 0.0
9 7 WHITING-TURNER CONTRACTING, Baltimore, Md. 1,797.9 1,797.9 0.0
10 9 BLACK & VEATCH, Overland Park, Kan. 1,577.8 1,074.6 503.2
11 13 BURNS & MCDONNELL, Kansas City, Mo. 1,486.7 1,321.6 165.2
12 21 SWINERTON INC., San Francisco, Calif. 1,457.0 1,457.0 0.0
13 11 MATRIX SERVICE CO., Tulsa, Okla. 1,321.4 1,175.6 145.8
14 18 MORTENSON CONSTRUCTION, Minneapolis, Minn. 1,288.9 1,242.1 46.8
15 17 CLAYCO INC., Chicago, Ill. 1,282.5 1,282.5 0.0
16 19 CLARK GROUP, Bethesda, Md. 1,180.0 1,180.0 0.0
17 23 BABCOCK & WILCOX ENTERPR., Charlotte, N.C. 1,164.9 480.1 684.8
18 10 HENSEL PHELPS, Greeley, Colo. 1,154.4 952.4 202.0
19 16 PCL CONSTRUCTION ENTERPRISES, Denver, Colo. 1,110.9 33.5 1,077.5
20 24 SKANSKA USA, New York, N.Y. 1,103.6 1,103.1 0.0
21 25 MCCARTHY HOLDINGS INC., St. Louis, Mo. 1,018.0 1,018.0 0.0
22 14 BALFOUR BEATTY US, Dallas, Texas 1,006.6 977.2 0.0
23 22 CH2M, Englewood, Colo. 992.6 672.7 319.9
24 ** M+W GROUP, Albany, N.Y. 990.0 990.0 0.0
25 26 THE TURNER CORP., New York, N.Y. 871.4 859.3 12.1
26 15 FERROVIAL US CONSTRUCTION, Austin, Texas 815.0 815.0 0.0
27 58 AMEC FOSTER WHEELER, Tucker, Ga. 813.0 708.0 105.0
28 27 ARCO CONSTRUCTION COS., St. Louis, Mo. 773.9 773.8 0.0
29 29 RYAN COS. US INC., Minneapolis, Minn. 712.0 712.0 0.0
30 32 S&B ENG’RS & CONSTRUCTORS, Houston, Texas 700.3 700.3 0.0
31 43 GRAY CONSTRUCTION, Lexington, Ky. 660.0 660.0 0.0
32 31 GRANITE CONSTRUCTION INC., Watsonville, Calif. 649.0 649.0 0.0
33 75 LEIDOS, Reston, Va. 648.4 648.4 0.0
34 55 JE DUNN CONSTRUCTION, Kansas City, Mo. 629.6 629.6 0.0
35 38 HANOVER RS CONSTRUCTION, Houston, Texas 620.0 620.0 0.0
36 45 ALSTON CONSTRUCTION CO., Sacramento, Calif. 576.0 576.0 0.0
37 39 BL HARBERT INTERNATIONAL, Birmingham, Ala. 525.3 83.0 442.3
38 49 BARTON MALOW CO., Southfield, Mich. 500.0 500.0 0.0
39 30 WALBRIDGE, Detroit, Mich. 482.4 266.4 216.0
40 37 PARSONS, Pasadena, Calif. 477.2 426.3 50.9
41 34 HASKELL, Jacksonville, Fla. 476.2 454.6 21.6
42 ** AECOM, Los Angeles, Calif. 451.9 451.9 0.0
43 ** HOFFMAN CORP., Portland, Ore. 440.0 440.0 0.0
44 71 DPR CONSTRUCTION, Redwood City, Calif. 412.8 412.8 0.0
45 50 CDM SMITH, Boston, Mass. 410.6 384.6 26.0
46 61 DEVCON CONSTRUCTION INC., Milpitas, Calif. 405.0 405.0 0.0
47 48 DEACON CORP., Citrus Heights, Calif. 398.5 398.5 0.0
48 56 OHL USA INC., College Point, N.Y. 391.4 139.5 251.9
49 57 THE BECK GROUP, Dallas, Texas 376.8 376.8 0.0
50 ** SHIMIZU NORTH AMERICA LLC, Atlanta, Ga. 375.0 273.0 102.0
RANK TOTAL REV. DOMESTIC INTER-
2016 2015 FIRM ($ MIL.) REVENUE NATIONAL
51 33 DUKE CONSTRUCTION, Indianapolis, Ind. 368.7 368.7 0.0
52 46 FLATIRON CONSTR. CORP., Broomfield, Colo. 366.0 143.5 222.5
53 ** TUTOR PERINI CORP., Sylmar, Calif. 365.6 323.4 42.2
54 52 GEMMA POWER SYSTEMS, Glastonbury, Conn. 360.3 360.3 0.0
55 42 LANE INDUSTRIES INC., Cheshire, Conn. 336.2 336.2 0.0
56 91 AUSTIN INDUSTRIES, Dallas, Texas 322.5 322.5 0.0
57 62 MESSER CONSTRUCTION CO., Cincinnati, Ohio 319.5 319.5 0.0
58 53 THE MCSHANE COS., Rosemont, Ill. 316.8 316.8 0.0
59 73 GILBANE BUILDING CO., Providence, R.I. 316.2 274.4 41.8
60 68 TRAYLOR BROS. INC., Evansville, Ind. 314.5 314.5 0.0
61 64 ZACHRY CONSTRUCTION, San Antonio, Texas 312.0 312.0 0.0
62 ** LPCIMINELLI INC., Buffalo, N.Y. 309.6 309.6 0.0
63 ** MWH GLOBAL, Broomfield, Colo. 299.0 50.4 248.6
64 67 AMERICAN BRIDGE CO., Coraopolis, Pa. 293.4 232.0 61.4
65 60 LENDLEASE, New York, N.Y. 283.7 283.7 0.0
66 ** HERZOG FAMILY OF COS., St. Joseph, Mo. 280.7 274.6 6.1
67 74 KLINGER COS. INC., Sioux City, Iowa 280.0 280.0 0.0
68 ** XL CONSTRUCTION CORP., Milpitas, Calif. 275.0 275.0 0.0
69 93 TRANSCORE, Nashville, Tenn. 268.4 257.6 10.8
70 ** DOME CONSTR. CORP., So. San Francisco, Calif. 251.0 251.0 0.0
71 87 BBL CONSTRUCTION SERVICES LLC, Albany, N.Y. 249.6 249.6 0.0
72 47 DENNIS ENGINEERING GROUP, Springfield, Mass. 247.8 247.8 0.0
73 ** BIG-D CONSTRUCTION CORP., Salt Lake City, Utah 245.6 245.6 0.0
74 ** CAHILL CONTRACTORS INC., San Francisco, Calif. 236.0 236.0 0.0
75 81 CADDELL CONSTRUCTION CO., Montgomery, Ala. 231.9 46.0 185.9
76 ** FAGEN INC., Granite Falls, Minn. 228.7 228.7 0.0
77 78 CONTINENTAL BUILDING SYS., Columbus, Ohio 223.1 223.1 0.0
78 54 H&M CO. INC., Jackson, Tenn. 218.0 218.0 0.0
79 70 ARCADIS/CALLISONRTKL, Highlands Ranch, Colo. 212.0 192.0 20.0
80 77 ODEBRECHT CONSTRUCTION, Coral Gables, Fla. 210.0 210.0 0.0
81 66 STRUCTURE TONE, New York, N.Y. 210.0 125.0 85.0
82 ** PRIMUS BUILDERS INC., Woodstock, Ga. 193.0 193.0 0.0
83 63 VCC LLC, Irving, Texas 189.3 189.3 0.0
84 99 SUNDT CONSTRUCTION INC., Tempe, Ariz. 187.3 187.3 0.0
85 ** CORVAL GROUP INC., St. Paul, Minn. 187.0 187.0 0.0
86 ** ELECTRICAL CONSULTANTS INC., Billings, Mont. 174.3 174.3 0.0
87 ** JINGOLI-DCO, Lawrenceville, N.J. 170.0 170.0 0.0
88 ** PRO CON INC., Hooksett, N.H. 165.6 165.6 0.0
89 90 SHIMMICK CONSTRUCTION CO., Oakland, Calif. 164.3 164.3 0.0
90 83 CAROTHERS CONSTRUCTION, Oxford, Miss. 160.0 160.0 0.0
91 ** LAUREN ENG’S & CONSTRUCTORS, Abilene, Texas 155.8 155.8 0.0
92 ** LAYTON CONSTRUCTION CO. LLC, Sandy, Utah 147.0 147.0 0.0
93 ** THE HUBBARD GROUP INC., Orlando, Fla. 145.1 145.1 0.0
94 ** ROSENBERGER CONSTR., Sugar Land, Texas 139.1 139.1 0.0
95 95 CONSIGLI BUILDING GROUP INC., Milford, Mass. 135.3 135.3 0.0
96 ** POWER CONSTRUCTION CO. LLC, Chicago, Ill. 122.5 122.5 0.0
97 ** DAVID E. HARVEY BUILDERS, Houston, Texas 120.0 120.0 0.0
98 ** BERNARDS, San Fernando, Calif. 116.7 116.7 0.0
99 ** THE WEITZ CO., Des Moines, Iowa 114.7 114.7 0.0
100 ** LEVEL 10 CONSTRUCTION, Sunnyvale, Calif. 114.5 114.5 0.0
ENR06132016Top100_PDF_List.indd 43 6/6/16 1:52 PM
6. Construction Management-at-Risk Firms
BASED ON 2015 REVENUE IN $ MILLIONS FROM “AT RISK” CONSTRUCTION MANAGEMENT OR PROJECT AND PROGRAM CONTRACTS IN WHICH A FIRM IS EXPOSED TO FINANCIAL RESPONSIBILITIES AND RISK SIMILAR TO THOSE OF A GENERAL CONTRACTOR
**=NOT RANKED IN 2015 AMONG THE TOP 100 CM FIRMS-AT-RISK.
THE TOP 100 PROJECT DELIVERY FIRMS #70
THE CHRISTMAN CO. is CM on the
$271-million medical-center project
for Mercy Health in Muskegon, Mich.
RANK TOTAL REV. INTER-
NATIONAL2016 2015 FIRM ($ MIL.)
1 1 THE TURNER CORP., New York, N.Y. 9,683.2 719.9
2 2 BECHTEL, San Francisco, Calif. 6,970.0 6,916.0
3 5 SKANSKA USA, New York, N.Y. 3,684.6 2.8
4 ** AECOM, Los Angeles, Calif. 3,233.4 0.0
5 8 STRUCTURE TONE, New York, N.Y. 3,098.2 123.2
6 6 GILBANE BUILDING CO., Providence, R.I. 3,093.3 214.7
7 7 BALFOUR BEATTY US, Dallas, Texas 2,944.6 0.0
8 9 THE WHITING-TURNER CONTRACTING CO., Baltimore, Md. 2,704.4 0.0
9 12 LENDLEASE, New York, N.Y. 2,689.1 43.1
10 11 DPR CONSTRUCTION, Redwood City, Calif. 2,660.0 0.0
11 14 SUFFOLK CONSTRUCTION CO., Boston, Mass. 2,481.0 0.0
12 10 PCL CONSTRUCTION ENTERPRISES INC., Denver, Colo. 2,174.8 1,555.7
13 13 JE DUNN CONSTRUCTION, Kansas City, Mo. 2,164.4 0.0
14 15 MORTENSON CONSTRUCTION, Minneapolis, Minn. 2,138.0 0.0
15 51 CLARK GROUP, Bethesda, Md. 2,019.0 0.0
16 17 HOLDER CONSTRUCTION CO., Atlanta, Ga. 2,017.0 0.0
17 16 MCCARTHY HOLDINGS INC., St. Louis, Mo. 1,789.0 0.0
18 20 DAVID E. HARVEY BUILDERS, Houston, Texas 1,650.0 0.0
19 28 SWINERTON INC., San Francisco, Calif. 1,477.0 0.0
20 19 KBR, Houston, Texas 1,280.7 130.8
21 27 WEBCOR BUILDERS, San Francisco, Calif. 1,207.8 0.0
22 22 BARTON MALOW CO., Southfield, Mich. 1,161.5 33.8
23 34 HUNTER ROBERTS CONSTRUCTION GRP., New York, N.Y. 1,139.0 0.0
24 ** HATHAWAY DINWIDDIE CONSTR., San Francisco, Calif. 1,098.0 0.0
25 26 HITT CONTRACTING INC., Falls Church, Va. 1,082.8 0.0
26 23 CHINA CONSTR. AMER./PLAZA CONSTR., Jersey City, N.J. 1,075.0 0.0
27 46 ALBERICI-FLINTCO, St. Louis, Mo. 1,050.2 282.6
28 41 LAYTON CONSTRUCTION CO. LLC, Sandy, Utah 1,029.4 0.0
29 25 SHAWMUT DESIGN AND CONSTRUCTION, Boston, Mass. 905.6 0.0
30 18 HOFFMAN CORP., Portland, Ore. 894.0 0.0
31 47 PEPPER CONSTRUCTION GROUP, Chicago, Ill. 893.9 0.0
32 31 COASTAL CONSTRUCTION GROUP, Miami, Fla. 885.0 0.0
33 32 MANHATTAN CONSTRUCTION GROUP, Naples, Fla. 862.7 0.0
34 49 EMJ CORP., Chattanooga, Tenn. 840.0 6.0
35 33 AVALONBAY COMMUNITIES INC., Arlington, Va. 815.6 0.0
36 57 THE BECK GROUP, Dallas, Texas 780.0 39.6
37 39 CONSIGLI BUILDING GROUP INC., Milford, Mass. 779.5 0.0
38 29 POWER CONSTRUCTION CO. LLC, Chicago, Ill. 768.0 0.0
39 54 TELLEPSEN, Houston, Texas 715.0 0.0
40 45 ROBINS & MORTON, Birmingham, Ala. 701.4 0.0
41 37 MESSER CONSTRUCTION CO., Cincinnati, Ohio 693.5 0.0
42 36 CHOATE CONSTRUCTION CO., Atlanta, Ga. 677.7 0.0
43 38 LEVEL 10 CONSTRUCTION, Sunnyvale, Calif. 676.4 0.0
44 ** AUSTIN INDUSTRIES, Dallas, Texas 670.4 0.0
45 48 KIEWIT CORP., Omaha, Neb. 635.4 0.0
46 43 KRAUS-ANDERSON CONSTRUCTION, Minneapolis, Minn. 634.0 0.0
47 56 HOAR CONSTRUCTION, Birmingham, Ala. 624.2 0.0
48 70 OKLAND CONSTRUCTION CO. INC., Salt Lake City, Utah 581.0 0.0
49 60 GLY CONSTRUCTION, Bellevue, Wash. 562.0 0.0
50 44 CLUNE CONSTRUCTION CO., Chicago, Ill. 540.6 0.0
RANK TOTAL REV. INTER-
NATIONAL2016 2015 FIRM ($ MIL.)
51 63 SUNDT CONSTRUCTION INC., Tempe, Ariz. 526.1 0.0
52 61 C.W. DRIVER COS., Pasadena, Calif. 517.8 0.0
53 53 THE BOLDT CO., Appleton, Wis. 497.5 0.0
54 ** LEASE CRUTCHER LEWIS, Seattle, Wash. 497.3 0.0
55 55 JACOBSEN CONSTRUCTION CO. INC., Salt Lake City, Utah 494.0 10.0
56 59 MCGOUGH, St. Paul, Minn. 477.0 0.0
57 58 LEE LEWIS CONSTRUCTION, Lubbock, Texas 475.0 0.0
58 30 HENSEL PHELPS, Greeley, Colo. 473.1 0.0
59 3 FLUOR CORP., Irving, Texas 455.1 175.6
60 ** FORTIS CONSTRUCTION INC., Portland, Ore. 444.0 0.0
61 85 THE WALSH GROUP LTD., Chicago, Ill. 437.8 20.3
62 62 O’NEIL INDUSTRIES INC., Chicago, Ill. 430.5 0.0
63 84 INTECH CONSTRUCTION LLC, Philadelphia, Pa. 430.0 0.0
64 87 WEIS BUILDERS INC., Minneapolis, Minn. 406.7 0.0
65 82 BARTLETT COCKE GEN’L CONTRACTORS, San Antonio, Texas 406.4 0.0
66 52 WALBRIDGE, Detroit, Mich. 402.6 13.6
67 75 BUILD GROUP INC., San Francisco, Calif. 401.7 0.0
68 66 KITCHELL CORP., Phoenix, Ariz. 390.0 0.0
69 65 GE JOHNSON CONSTRUCTION CO., Colorado Springs, Colo. 386.0 0.0
70 67 THE CHRISTMAN CO., Lansing, Mich. 380.8 0.0
71 42 THE YATES COS. INC., Philadelphia, Miss. 378.2 0.0
72 ** THE PIKE COS. LTD., Rochester, N.Y. 362.0 0.0
73 78 J.H. FINDORFF & SON INC., Madison, Wis. 354.0 0.0
74 77 HILL & WILKINSON GENERAL CONTR., Richardson, Texas 353.9 0.0
75 69 DIMEO CONSTRUCTION CO., Providence, R.I. 347.4 0.0
76 80 THE PENTA BUILDING GROUP, Las Vegas, Nev. 344.4 0.0
77 ** KNUTSON CONSTRUCTION, St. Louis Park, Minn. 332.0 0.0
78 ** T.G. NICKEL & ASSOCIATES LLC, Ronkonkoma, N.Y. 321.2 0.0
79 89 RODGERS BUILDERS INC., Charlotte, N.C. 319.5 0.0
80 74 SAUNDERS CONSTRUCTION INC., Centennial, Colo. 319.0 0.0
81 71 LECHASE CONSTRUCTION SERVICES LLC, Rochester, N.Y. 315.0 0.0
82 ** JAMES R. VANNOY & SONS CONSTR., Jefferson, N.C. 314.0 0.0
83 ** JOERIS GENERAL CONTRACTORS LTD., San Antonio, Texas 313.2 0.0
84 73 LPCIMINELLI INC., Buffalo, N.Y. 304.6 0.0
85 ** BNBT BUILDERS INC., Redwood City, Calif. 300.0 0.0
86 ** JORDAN FOSTER CONSTRUCTION LLC, El Paso, Texas 297.0 0.0
87 ** IMC CONSTRUCTION, Malvern, Pa. 290.0 0.0
88 91 J.P. CULLEN & SONS INC., Janesville, Wis. 289.9 0.0
89 94 PLANT CONSTRUCTION CO. LP, San Francisco, Calif. 289.3 0.0
90 ** SKENDER CONSTRUCTION, Chicago, Ill. 287.0 0.0
91 ** ENGINEERED STRUCTURES INC. (ESI), Meridian, Idaho 285.4 0.0
92 ** KAST CONSTRUCTION CO. LLC, West Palm Beach, Fla. 276.4 0.0
93 96 BARR & BARR INC., New York, N.Y. 274.6 0.0
94 21 M+W GROUP, Albany, N.Y. 271.1 12.0
95 72 BIG-D CONSTRUCTION CORP., Salt Lake City, Utah 266.5 0.0
96 ** COMMODORE BUILDERS, Waltham, Mass. 263.0 0.0
97 92 DELLBROOK/JK SCANLAN, Quincy, Mass. 260.7 0.0
98 ** NEW SOUTH CONSTRUCTION CO. INC., Atlanta, Ga. 259.5 0.0
99 81 SPAWGLASS HOLDING LP, Selma, Texas 259.5 0.0
100 ** W.M. JORDAN CO., Newport News, Va. 259.0 0.0
44 ENR June 13, 2016 enr.com
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