CHOP 4.1 - TYPES OF DESIGN - CONSTRUCTION PROGRAM DELIVERY Flashcards
Construction Manager
An individual or company employed to oversee and direct the construction elements of a project, usually the whole of the construction elements and the parties who are to perform them; a company that contracts with an owner to perform such services for a fee.
Design-Build
Method of project delivery in which one business entity or alliance (design-builder) forges a single contract with the owner, and undertakes to provide both the professional design services (architectural/engineering) and the construction.
Program
In the context of program and project management, a program is “a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.”
Project
A project is “a temporary endeavor undertaken to create a unique project service or result.”
Project Manager
the project manager is the individual assigned the responsibility to manage the design-construction project on behalf of the owner. The project architect and general contractor or construction manager report to the project manager.
Project delivery methods in the construction industry have evolved in response to:
1) increased owner requirements;
2) transfer of project risk from the owner to designers and constructors;
3) more urgent time frames;
4) increased demands for higher building performance and safety;
5) the desire to reduce adversarial relationships in construction to achieve higher quality outcomes through collaboration;
6) economic pressures.
Methods in the construction:
DESIGN-BID-BUILD
Standard Form of Contract:
1) RAIC Document six: canadian standard form of contract for architectural services.
Followed by
2) CCDC2 - Stipulated Price Contract
3) CCDC 3 - Cost + Plus Contract OR CCDC 4 - Unit Price Contract may also be used.
Methods in the construction:
CONSTRUCTION MANAGEMENT
CCDC 5A - Construction Management Contract for Services
CCDC 5B - Construction Management Contract for Services and Work.
Methods in the construction:
DESIGN BUILD
CCDC 14 - Design Build Stipulated Contract
CCDC 15 - Design - Builder / Consultant Contract (subcontract)
Methods in the construction:
PUBLIC - PRIVATE PARTNERSHIP (P3)
No standard form of contract
Methods in the construction:
INTEGRATED PROJECT DELIVERY
CCDC 30 - Integrated Project Delivery Contract
The Design Project Life Cycle and Project Delivery Methods
A life cycle is the sequence of phases, from initiation to project closure, that a project goes through to achieve the stated objective. The phases of the design project vary based on the method of project delivery.
The life cycle for the architect of a traditional design-bid-build project
Pre-design, schematic design, design development, construction documents, construction contract tendering, construction contract administration and general review, closing/commissioning and post-completion involvement in warranty.
The constructor’s project life cycle
starts with the tendering phase and ends with completed construction and the warranty period.
Program and Project Responsibilities and Project Delivery Methods:
Design-Bid-Build or Stipulated Price Construction Contract
DESIGN - BID - BUILD:
1) the owner engages an architect to prepare the design, drawings, and specifications
2) the architect engages engineering consultants to complete the design team or the owner engages engineering consultants separately
3) following completion of design documentation, the owner hires a contractor by competitive bidding to build the facility under a stipulated price Contract construction contract (usually CCDC 2)
4) the 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.
NOTE: two independent contracts between the client/owner and architect, and the client/owner and the construction contractor
Construction Management
a construction manager (CM) advises on and oversees such elements as schedule, cost, construction method or building technology. A construction manager may be:
1) an architect
2) a contractor
3) an engineer
4) a developer
5) an individual or team with specialized training in construction management.
Difference between CCDC 5A AND CCDC 5B
In a CCDC 5A contract, the construction manager is paid for the services delivered based on either a fixed fee, a percentage of construction cost, or an hourly rate. The construction manager is not at risk should the actual cost of construction exceed the budget.
CCDC 5B is a hybrid that combines elements of CCDC 5A, fee for construction management services, with CCDC 2, a guaranteed price for construction work. A construction manager for services and construction (also known inaccurately as “at risk”) provides the owner with a construction budget and a guaranteed maximum price (GMP).
Owner, Advocate Architect and Design/Builder
The owner will engage an “advocate” architect (sometimes called a “bridging” consultant or owner’s advisor) to prepare the owner’s statement of requirements.
Owner and Design-Builder
The owner retains a design-builder. A separate design team working for the design-builder prepares design documentation and provides general review during the construction.
Public-Private Partnership
P3s occur when a private sector consortium is engaged by a government or other public agency to deliver a complete capital program. The scale of a P3 project usually is significant and may include financing, design, construction, and very often facilities management and operations.
NOTE: The P3 approach is controversial as it fundamentally alters the supply chain relationships in the design-construction sector. Critics of the process argue that the cost of P3 projects exceeds the cost of the same projects delivered under more traditional forms of project delivery because of the costs for financing and the hidden costs of “risk transfer” to the private sector.
Integrated Project Delivery (IPD)
The integrated project delivery (IPD) method builds on the concept that when all players in the design-construction endeavour share the same method of reward, collaboration towards higher building performance, increased value, and cost savings can be achieved.
Rather than the adversarial approach that is created in traditional contractual relationships, the IPD involves a multi-party contract in which the owner, architect, engineers, constructor and major trades share in the rewards of the successful project.
Integrated Project Delivery (IPD) 4 major Phases?
The four major phases of the integrated project delivery approach are validation, design, implementation, and warrantee.
Just-in-Time
This approach combines aspects of fast-tracking, partnering, systems architecture and strong incentives for repeat work. Large projects are broken into small work packages.
Turnkey Development
Turnkey is generally described as a project delivery method that includes various real estate functions as well as design and construction.
Unit Rates
Use of this method is limited primarily to heavy civil engineering work – such as roads and site preparation – where the contractor is paid for measured quantities at quoted unit rates.
Lease-back
Under this method, the project is financed, constructed and owned by the builder, and the building is “leased back” to the owner.
Cost-plus
In the cost-plus method, the contractor is compensated for the actual costs of the work, plus a fee. The fee is based on:
1) an agreed-upon fixed sum;
OR
2) a percentage of the cost of the work.
Types of Construction Contracts
1) CCDC 2 – Stipulated Price Contract
2) CCDC 3 – Cost Plus Contract
3) CCDC 4 – Unit Price Contract
4) CCDC 5A – Construction Management Contract for Services
5) CCDC 5B – Construction Management Contract for Services and Construction
6) CCDC 14 – Design-Build Stipulated Price Contract.
Stipulated Price Contract:
CCDC 2 – Stipulated Price Contract and CCDC 20 – A Guide to the Use of CCDC 2
This is the most common type of fixed-price contract. The stipulated price is established through bidding – either open bidding or an invitation for bids from pre-qualified bidders. The successful contractor is paid a fixed price for the completed construction. The fixed price or time for construction can only be adjusted by change orders.
Design-Build Stipulated Price Contract:
CCDC 14 – Design-Build Stipulated Price Contract
In the design-build stipulated price contract, the owner deals with one single business entity, which arranges to provide both design services and construction of the project under one contract package.
The prime contract is between the owner and the design-builder, where the design-builder could be a contractor, an architect, a broker, or a joint venture between a contractor and an architect.
Cost Plus Contract (percentage or fixed fee):
CCDC 3 – Cost Plus Contract and CCDC 43 – A Guide to the Use of CCDC 3
In a cost-plus contract, the contractor is compensated for the actual costs of the work, plus a fee based upon either an agreed-upon fixed sum or a percentage of the costs.
Guaranteed Maximum Price Contract:
CCDC 3 – Cost Plus Contract with Guaranteed Maximum Price Option
In this type of contract, the contractor is compensated for the actual costs, plus a fee with an agreed-upon maximum price. This is sometimes called an upset price contract. The guaranteed maximum price can be adjusted only by a change order.
Unit Price Contract: CCDC 4 – Unit Price Contract
In a unit price contract, the contractor is paid a pre-determined price for each unit or quantity of work or material used in the project’s construction.
Other Types of Contracts
1) government or “in-house” contracts;
2) contracts with economic price adjustment;
3) incentive-based contracts;
4) standing offer contracts;
5) purchase order contracts;
6) oral contracts.
Government or “In-house” Contracts
Various federal, provincial and municipal governments have their own forms of contract which include different general conditions. These documents are printed forms, and normally are not amended.
Contracts with Economic Price Adjustment
Some fixed-price contracts contain economic price adjustment clauses that protect the contractor and the client against wide fluctuations in labour or material costs when market conditions are unstable.
Incentive-based Contracts
Incentive-based contracts are also known as incentive contracts, cost-plus-incentive-fee contracts, and cost-plus-award-fee contracts.
The contractor and the owner’s contracting officer agree on:
target cost;
target profit;
target fee;
incentive formula for determining the final fee.
Standing Offer Contracts
Government or institutional clients may retain one or more consulting firms, or construction companies pre-qualified by proposal call, to provide professional or construction services on an as and when requested basis (sometimes referred to as being “on retainer” or “on call”).
Purchase Order Contracts
Authorized officials (public or private) may purchase design and construction services not exceeding a stated amount using purchase orders. The use of purchase orders is usually restricted to:
small transactions;
one delivery and one payment;
off-the-shelf items;
small repairs.
Oral Contracts
Oral contracts should never be used. All agreements should be in writing and may be required in some jurisdictions. Written client-architect agreements are a regulatory requirement in several jurisdictions in Canada.
