9.1 Flashcards
Types of Project Delivery
Design-Bid-Build:
What characterizes this form of contract delivery?
- Two separate sequential contracts between the owner and the architect, and the owner and the construction contractor.
- The design project is followed by the construction project.
Design-Bid-Build:
At what stage does construction commence?
After design is substantially complete.
Design-Bid-Build:
Describe the phases of the Design-Bid-Build Method
- Begins with the owner contracting with a designer (architect) to complete a set of drawings and specs (bid documents)
- Owner hires a contractor by competitive bidding to build the facility under a stipulated price construction contract
- architect administers specified aspects of the construction contract, provides general review of construction works, certifies the payment of the contractor’s invoices, and has legislated and contractual involvements at project completion and during the warranty period.
Design-Bid-Build:
What are the advantages of this project delivery method?
- Most commonly used in the industry - well understood
- Owner knows the cost of the project with a high degree of certainty before construction beings (under a stipulated price contract)
- Owner has a thorough understanding of the projects design and program functionality prior to construction
- Owner has a direct relationship with the designer and the constructor
- Competitive pricing
Design-Bid Build:
What are the disadvantages of this project delivery method?
- Separation between the designer and the constructor limits information exchange about construction costs and constructability
- Clients may expect that the project can be completed for the tendered price without inclusion of a construction contingency
- Contracts, particularly for public sector projects, are awarded to the low bidder who may not be well qualified to do the work
- Generally longer overall time to deliver the project
Construction Management:
Describe this method of project delivery
A project delivery scenario were the
design team is augmented with the addition of a construction manager (CM) at an early stage to advise on and oversee such elements as schedule, cost, construction method or building technology.
Construction Management:
A CM typically has career experience as an:
- Architect
- Engineer
- Contractor
- Developer
- Individual specifically trained as a CM
Construction Management:
When is this method of project delivery most commonly used?
- Large and complex projects
- Were time is limited and construction may begin before design documents are complete
- When changes in design are anticipated and rapid responses are required
- When the general contractor does not want to assume the risks of a stipulated price contract
Construction Management:
At what capacity does the CM typically serve the project.
Depends of the contract. They can add value to the project by advising all or any particular stage of design, documentation, or construction, or any combination of the above.
Construction Management:
What are the typical responsibilities of a construction manager?
- Assists the preliminary planning of the design requirements of the project
- Advises on schedules, budgets and costs of construction methods, material selection, and detailing during design
- Advises on and arranges for services, trade contractors, and suppliers to carry out the work
- Planning, scheduling, coordinating and supervising the trade contractors
- Provides technical and clerical services in the administration of the project
Construction Management:
When is the budgeted construction cost realized as an actual cost?
When each tender package is released and sub contracts are awarded
Construction Management:
Why do architects/engineers typically decline to provide construction services?
The lack of experience or insurance. The CM typically assumes financial risk, once sufficient bids packages have been received and actual constructions costs are realized.
Construction Management:
What are the advantages of this project delivery method?
- CM has direct contractual relationship with the owner
- Advice on constructability and cost available to the design team
- Conducive to fast tracking (construction can start before design is complete)
- Costs can be monitored
Construction Management:
What are the disadvantages of this project delivery method?
- Added costs with the addition of another consultant
- More complex relationships means more complex modes of communication, more administrative costs
- Possibility of a conflict of interest if the CM is not a third party
- Less control of the final cost in an unstable market
Design-Build:
What defines this form of project delivery?
The owner contracts with a single entity that provides both design and construction services.
Design-Build:
What role can advocate architect play in this project deliver method?
The advocate architect can provide an owners statement of requirements, and conceptual design solutions to test those requirements. They may also provide advice on hiring the design builder
Design-Build:
What are the advantages to engaging with an advocate architect in the design-build relationship?
- The architect will develop a statement of requirements with a focus on the owners interests
- The owner benefits from the support of an industry professional advising them on project decision making.
Design-Build:
What are the disadvantages to engaging with an advocate architect in the design-build relationship?
- Owner pays a fee to the advocate architect in addition to the design-builder
- Increase in time to deliver the project
- Communications between the client and designer may be limited to by the design-builder relationship
- Architects requirement to act in the publics interest may be more difficult to manage
Design-Build:
What defines the design-build form of project delivery?
The design-builder may support the owner in creating a statement of requirements. A separate design team working for the design-builder prepares the design documentation and provides general review during construction.
Design Build:
Describe the first phase of the design-build process.
Phase 1 - Design-builder provides the owner with a building design and related cost (including a stipulated maximum price and a fee for managing the project)
Design Build:
Describe the second phase of the design-build process.
Phase 2 - Parties enter into a stipulated price contract for the completion of the building. The builder works to save costs during construction. Any savings accrue to the owner, who pays only the actual cost of construction, plus the design-builder’s fee.
Design-Build:
What are the advantages of the owner retaining a design-builder?
- Functional program established early
- Cost-benefit analysis committed early
- Feedback can be obtained from the contractor on design options
- Streamlined process
- Team approach is reinforced
Design-Build:
What are the disadvantages of the owner retaining a design-builder?
- Design approval is on the-design builder
- Architects role as a leader is reduced
- Construction budget is determined before design is complete
- Decisions are based on cost rather than design value
- Risk of a lack of communication between the builder and architect
- Greater potential for tension between the architect and contractor
Design-Build:
What are the disadvantages to the architect in this delivery method?
Design builder generally expects the architect to absorb all the costs in competing for the design, therefore the architect takes on more risk.
Public-Private Partnership:
What defines a P3 project?
When a private sector entity is engaged by a public sector entity to deliver a complete capital program for a large scale project that generally includes financing, design, construction, facilities programs and operations
Public-Private Partnership:
What are the advantages of P3 projects?
- Utilizes the expertise and efficiencies of the private sector
- Allows financing in ways not usually possible by the public sector alone
- Operating costs and life cycle costs may be reduced
- Single point of responsibility
- Architects develop long term relationships
- Reduced time and construction schedule
- Design can become the differentiating quality in the proposal
Public-Private Partnership:
What are the disadvantages of P3 projects?
- Best value not always achieved as initial capital costs become more important
- Costly for architects and consultants to pursue (difficult for small firms to compete)
- Building users have less control over the process and outcomes
- Building owners have less control over the project quality and facility operations
- Inappropriate transfer of non-insurable risk from the government to the proponent then to the architect
Public-Private Partnership:
What incentivizes the private sector to engage in P3 projects?
The involvement of concessions of tax or other operating revenue, protection from liability, or partial ownership rights over nominally public services and property
Integrated Project Delivery:
What defines the IPD form of project delivery?
Involves a multi-party contract in which the owner, architect, engineers, constructor and major trades share the rewards of a successful project. This shared goal results in a higher building performance, increased value and cost savings.
Integrated Project Delivery:
What are the 4 phases of the IPD approach?
Validation, design, implementation, warrantee
Integrated Project Delivery:
Describe the validation phase of the IPD approach.
The project management team validates the projects objectives, requirements, scope, quality, cost and schedule to determine the projects feasibility. Owners may choose to abandon the project at this point.
Integrated Project Delivery:
Describe the design/implementation phase and who is responsible its implementation.
The project management team coordinates the design activities and prepares for implementation of the design. A project implementation team is established at this time and the projects final cost is determined.
Integrated Project Delivery:
Describe the warrantee phase of the IPD approach.
This phase see’s the resolution of deficiencies and the final resolution of the risk pool.
Integrated Project Delivery:
What are the advantages of this delivery method?
- Inefficiencies of tradition delivery methods are reduced
- Enhanced effectiveness of design and constructability
- Transparency of information between parties
- incentive for all parties to enhance performance and maintain schedule
Integrated Project Delivery:
What are the disadvantages of this delivery method?
- Increased need for PMT and collaborative meetings, taking time
- Owner must be fully engaged in the project
- Balance of interests/negotiations become crucial for success
- Non collaborative attitudes may result in more work and increased costs at the end of the project
