The Primer What are the Different Construction …

1 ProjectDeliverySystem*- Theprocessse le cte d toexecutea co nstructio nproject forthepurp oseof assigningre sponsibilities andriskto thepro ject ivery systemsincl ude : Des ign /Bid/ Build De sig n- Bu ild Co nst ruc tion Ma nageme nt-Age nc yCo ns tru ct io n Manag eme nt -At Ris kSi nceea ch con str uct io n project is differ ent , thepro ject delivery systemshouldbetai lored to theindivi dual requirement s of that uniqueproje ct . Typicallytheownerchoosestheprojec t delivery system th at willbe employed, butmayre ly onthepr ofessionalinputof designan d co nstru cti onco nsulta ntstode terminewhich pr oject delivery systemwillbes t fi t theproject. With publ ic fu ndedprojects,themethodof co nstruc tio n deliverymaybe spe ci fie d byth e localorstate jur ct ionof a deli very met ho d is typicallybaseduponhowyo urorg anizat ionoperates,in te rna l resourcesavaila bleandtheir level of expert iseorknowledge,fundingre quire ments, an d overal l sched ule fordelivery.

2 * Sour ce : Co ns truc tio n Manage mentAssoc iat ion of Amer ica ( anet .o rg)+F o u r P ro j e c t D e l i v e r y S y s t e m sThr eeConstructionManagementAgencyTw oFourConstruction Management-At RiskDesign/Bid/Build(General Contracting)Design-BuildCons tru ctionMa nag em ent-At R iskCons truc ti onMana ge ment- AgencyDes ign-Bui ldDes ign/Bid/BuildThe PrimerWhat are the Diffe rent Construction Deli ver y Typ es and A dva nta ges o f Ea ch?In Desi gn/B id/Bu ild, also kn own as thege ner al contract ing project del iver y method,the pro ces s is lin ear, where one phase iscompl eted befo re another phase is der the desig n/bid/build example, thearc hi tec t is selected under a separatecont ra ct th at is bas ed on a negotiatedprof es sio nal f ee. The cons tru ctio n firm ismost oft en selec ted based on the lowest bid,and the re may be many subcontr actor sun der h is c ontra ct /d irect ion.

3 Adv antagesAr chit ec t se rve s as o wne r s a dvo ca tewi th ex te ns ive owner int era cti onOne bid package for c onstructi onTrad itional meth odUnd erst ood by all parties - ow ners,arc hit ec t des ign er, co nt ra ct orOft en e as ier to m ana ge t he linea rpro cessDis ad van tagesCo ntr act or in po tent ial ad ver sari al ro lewi th ar chi tec t an d eng ine erRe st ricted o wne r c ont rol d ue t ose par at ion of rol es and r espo nsi bi litiesAc cu rat e c os t es timat ing duri ng de sig nph ase f rom arch itec t req uir eskno wl edg e of l at es t c onst ruct ionte ch niques an d mar ke tNo o pp or tun ity fo r c ont ract or i nputpr ior t o co ns tru ct ionLow b id me th od increa ses prob abi lityof co stly ch ang e or der s Re qu ire s ow ner re sour ces to m ana ge Ow ner m ay have to act as r efe re e tores olve di sag ree me nt sLinear or s equ ential p rocess, in whi chph as es or t as ks d on t ov erl apIf a pr oj ect i s ov er budg et o n b id day.

4 Itcau ses del ay s an d add itiona l co sts f orred ra wi ng an d re- bidding+ The h allma rk o f a D esign-Build pro jec t i s t haton e organ izati on , ei the r the a rc hit ect or t heco nstru ction fi rm, is so ley respo nsi ble t o th e own erfor bo th des ign an d co ns tru ct ion of th e faci lity. I n th edesign /bu ild pr oject de live ry met ho d, a singl e po intof con tac t has be en p rov en to fos te r be tte rco mm uni cation, re du ce a dv ers ari al ro les be twe ende sign and constr uc ti on , and acc eler ate p roj ec tdelive ry . Perhaps th e bigg est advantag e of thedes ign/bu ild proces s i s s peed of delivery .Because const ruc ti on is oc currin g conc urre nt withdes ign ph ase s, t he de livery of the projec t can b esp ed u p by 2 5 pe rce nt o r mo re a s co mp ar ed t oth e des ig n/bi d/bui ld met hod.

5 In addi ti on toprovi di ng th e owner wit h one sou rce ofac cou nt abil ity f or th e ent ire p roject de vel opmentproce ss a nd s pe ed o f de live ry, u sing d es ign/bu ildfo sters a t eam e ffo rt t o ac hieve c ost a nd s ch edulesa vings a nd to enha nc e over all value to th e own er. Th e two mos t es sen ti al con si derat ion s insel ect in g a desig n/bu ild team to co ns tru ct yo urfaci li ty ar e th eir depth of ex perience i n work ingtog eth er and proven record o f perfo rman ce i nsi mi lar pr oject s. Adv ant age s Earl y an d co ntinue d arch ite ct -con tract or col lab or ati on leads tored uced litiga tionAct ive ow ner part ici pat ion con tri bu testo a b et ter end p ro ductSi ngl e poi nt of ac coun tability, one- stopshop ping for bo th des ign andcon struct ion ser vicesAccu racy of es timat es en hance dthro ugh ea rl y inv ol vem en t ofcon struct ion ar mLes s det ai l req ui red to beg incon struct ionFew er ch an ge ord ers save s time an dex pens eSp eed s up ent ire desi gn andcon struct ion pro ces s - sa vi ng mont hson sch edu leOwner can sel ec t team b as ed o nqual ifi ca ti ons or thro ug h b id proce ssDisadv ant agesLes s owne r co ntr ol over final des ign andpos sibly les s des ign influe nce by arch ite ctPo ssibly redu ce d arc hitect-end us er i nteractionFewer ch ec ks and bal an cesReq uires ow ner s ex perti seCar e must be taken to bal an ce q ual ity withpro fit+ 2322212019181716151413121110987654321 MonthSel ec t P roj ec t D esig n T eamPro gr am mingSch em ati c Desi gnDes ign De vel opmentConstr uc tio n D ocumentsBid ding Sel ec t

6 Pr ime Co ntr actorCo nstructio nOccupancy262524232221201918171615141312 1110987654321 PhaseSel ect P roje ct Desi gn Te amProg ra mmingSch emat ic De sig nDesign D eve lop mentConstr uctabi lity Re viewConst ruction Do cume nt sCon st ru ctionOccupa ncy262524 Ow nerDes ign -B uild erDesign/Bid/BuildDesign-BuildOw ne rGene ral Contr act orCon tr actor is c ompetitiv el ybid per th e Publ ic Bi d hi te ct/Eng ineerAr chit ect/Eng in eer Subc ont ract or s26 Mon th s20 Mont hsTi me Sa vings Subcontr actors are competiti vel y bid to General Contr actors. Su bc ont ractor sSubcon tr actor s ar e compet it ively bid or negotiat ed wit h t he Design-Build t he C M-Agen cy ( CM a) p roject d el ive ry me tho d, al so known as Pu re C M, the Construction ma nager acts as a nextension o f th e o wner s s taf f a nd t he g eneral c ont ract or role i s el imi nat ed. In this scena ri o th e owner, rathe r than thegenera l c ontrac tor o r Construction ma nag er -at risk, ho lds a ll su bco ntracts.

7 Es se nti ally, e ach subcon tr ac to r be comes apri me c ontra ctor a nd i s responsible fo r c ost, s ch edule, q uality, an d safe ty o n the pr oj ec t. The constr ucti on m ana ge rovers ees these t asks i n the r ole a s a c onsultan t. The c onstru ct ion manager comp eti tive ly bi ds the diffe rent e leme nts ofconstruc tion t o t ra de co ntrac to rs (o r s ubco ntra ctor s), s uc h as e lect ri cal , m echa nica l, pl umbi ng, fr ami ng, encyAdvant ag esCM -Ag en cy is tru ly on the o wne r s sideas th e risk i s contr acte d to the p rimecontr acto rSelecti on b ased on cons tr uc tio n firm squalificati onsPre-c onstr uc ti on services a re p rovidedby qua lified i ndi vidua ls tha t are cur rentwith c ons tr uc ti on c osts and tr end sProduc es more p redicta ble andmanageable resu lts th rough acollabo rativ e e ffort of enti re te am Inc reases o pp ortu ni ty for localparti cipatio n of v endo rs, mate rial ssup pl iers , and s ubcontr acto rs No n-a dversa rial e ffort r educ es risks forowne r, archite ct-d esigne r.

8 A ndcons tr uc ti on manager Sa ves ti me a nd mone y b y r educ ingchange o rde rs Owner holds a ll s ubc ontr actsOp ti on to fast-tr ack b y pha sing bi dpackages allows qu icke r facility u sageAl lows f or m ore o wn er contr ol inselecti ng CM a s ta ff andsubc ontr acto rsDisadva nt age sMul ti pl e c ontr acts he ld by o wner c an c reateadm inistr ativ e c ha lleng es Po te nti al cha lleng e to dete rmine who i s a tfaul t if p roject is d elivered l ate w ith m ultip leprime c ontr acts+ The Con st ru ct ion Man agement (C M) method of projec tdel ive ry pr ovides the owner with flexibility in selecting acon tr ac tor based on several fa cto rs o the r than solely on pr ice .Th os e qualific ati ons i ncl ud e proj ect- spe cific expertise , historyof perf orma nce and st ab ili ty. Und er a CM method of de live ry , the owner selec ts t hecon tr acto r ba sed on qua lific ation s an d then the contrac tor sfee i s negot iate d.

9 The owner ha s op en book access to allpro ject costs. Th is i ncl ud es par tic ipati on in the bidding andselection of subc ontr act ors and ve ndors, which re presentsthe mo st costl y compon ent of development. Throughout thecou rse of c onst ru cti on, the con struc tion manager basi ca llyse rv es a s an exten sion of the owner s st aff. Many ow ners sel ect CM kno win g th at th e lo west in iti alpr ice d erived thro ugh the de si gn/b id/build bidding p rocessdoes n ot a lways ult imat ely tu rn ou t t o be the lowest pric e northe bes t value by the end of co nstr uctio n. Wh en a projectin cludes CM in the mix, th e transition fr om design tocon stru cti on i s al so more a pt to be a smo ot h one. Withi n theoverall label of co ns truction manag ement there are twodif feren t pro ject delivery systems, with variances relatedpr ima rily t o p ricing a nd co nt rac tua l ob ligat ions :* C M At -RiskThe CM ho lds th e sub cont ra ctor andve nd or c on trac ts , ta ki ng on t he financial risk of the projec t byproviding t he ow ner w ith a guar an teed maximum pr ice (GMP)for co nst ruct ion a nd a s et da te fo r c omp leti on, alo ng w ith ane go ti at ed p rof essi on al fe e (t ypi ca lly a p erc ent age of t he costof co nstru ctio n) fo r th e CM services.

10 This GMP is bestprov ide d at t he co mpl eti on o f the c onst ruc tion documents .* C M Age ncyUnde r t his form of C M, t he o wn er h oldsall s ub con tr ac tor a nd ve nd or co nt ra ct s and t he CM se rves a san extensio n of th eir staff, managing all the contracts, butholdin g no fin ancial risk . Th e ris k is contr acte d with eachpr ime c on trac to r/su bco ntr act or .The PrimerConstruction Management Methods Own erConstru ct io nMan ag er2322212019181716151413121110987654321 Mont hSelect Design P rofe ssi on alSelect Co nst ru ction Manage men tPro fe ssi ona lPro gram ming *Sc hem ati c De sig nsPre -Const ru ct ion Se rv ic es Es ti matin g Va lue A nalysis Quality Cont ro l Review Spec ReviewDes ig n D ev elo pmen tCons tr ucti on D ocu men tsPhas ed Bi d P ack ag esCo nstr uc ti onBa lance of P has ed Bid Pack age sOcc up anc y262524Co nstruction Man ag ement ProcessTi me Savings24 M on ths{*Owners.}