Lecture 4: Project delivery systems Flashcards
The traditional project delivery system
involves three main parties:
- The Owner
- The Architect/Engineer (A/E)
- The Contractor(s) and his/her subs
Is the Owner’s agent and fiduciary.
The A/E
The relationship between the Owner and
the Contractor is usually an _______.
adversarial relationship
Traditional Project delivery System:
- Design
- Bid
- Build
What is the A/E responsible for under deign-bid-build?
1. Representing the owner during the construction stage 2.Observing the work for conformance with contract requirements 3. Observing project progress for review of contractor applications for payment 4. Preparing and recommending contract modifications 5. Attending project meetings 6. Inspecting the project to determine substantial and final completion
What is the Owner responsible for under Design-Bid-Build?
The owner is typically responsible for:
- Making periodic payments to the contractor
- Approving contract modifications involving changes to contract time or price
What is the project manager’s job under design-bid-build?
- Preparing
applications for payment - Administering subcontracts
- Purchasing
- Preparing, monitoring, updating, and revising project schedules
- Attending project meetings
- Communicating with the A/E and subcontractors
- Preparing proposal requests and responding to A/E issued contract
modification
proposals - Preparing and implementing safety programs
- Requesting clarifications and interpretations of the contract documents
- Administering the submital process
A form of design-bid-build where all parties are brought in at beginning. Stages of design and construction are
overlapped. Time from conception to occupancy is substantially reduced. A construction manager is used to
coordinate between all parties
Phased or “Fast Track”
Construction
1. Owner, designer, engineers, general contractors and mechanical and electrical specialty contractors form a team to develop design 2. General contractor evaluates design’s cost and time implications 3. This allows designer to maintain owner’s goals within budget, sometimes leads to major design changes which could not be made later
The design phase of Phased or “Fast Track” Construction.
- Construction Phase
- Project is being designed, bid, and
built in stages - Excavation, foundations, structure
are bid and started before design
work is finished - Mechanical and electrical are bid
and built while finishing and partition
work are still being designed
The construction phase of Phase or “Fast Track” construction.
A “pure” construction manager (Agency CM )will not guarantee a budget or schedule nor will they perform any work on site ______.
(CM for fee or ACM)
A general contractor acting as a
construction manager will guarantee
both and perform work that is critical
to control cost and schedule
(CM at risk)
1. Technology/process dependent 2. Used in industrial construction 3. Requires significant amount of engineering 4. Mechanical/electrical systems (piping, instrumentation) 5. Typically involve large pieces of engineered equipment (paper machine, vessels)
Engineer/Procure/Construct
EPC
Common problems with the traditional
approach include:
- Cost overruns
- Schedule delays
- Changes and modifications
- Claims and disputes
- Constructability issues
- is a project delivery system
that can be used as an alternative to the
traditional approach (Design/Bid/Build) - The project Owner consolidates the
Liabilities/Responsibilities into one party
(The design/builder)
Design/build
What are the six stages of Design/build?
- Project initiation
- Risk Allocation
- Performance specification
- Project Planning
- Construction Administration
- Project Closeout
- Starting point where the Owner defines needs and
expectations - Consultants and financial planners assist the Owner
in determining project objectives, budget, and financial resources
Design/build Project initiation
Project initiation Includes answers to what 8 issues?
- Benefits and cautions of the delivery system
- Program and feasibility studies
- Project timeline
- Budget and contingencies
- Project financing
- Life
- cycle options
- Project design alternatives
is essential to design-build and insurance issues need to be detailed (limits, provided by whom, etc.)
Risk Allocation
During Risk Allocation of the design-build phase, What 7 questions should be considered?
- Laws and licensing
- Design-Build contract fundamentals
- Owner/Design-Builder Contract
- Design/Builder formation and contracts
- Teaming arrangements
- Insurance
- Sureties and bonding
Entails Owner’s focus on methods to
solicit and award a contract for Design-Build.
Performance specification
A performance specification should provide answers to what issues?
- RFP/RFQ definitions
- RFP/RFQ preparation and drafting
- Performance specifications
- Preparing the proposal response
- Estimating the proposal costs
- Proposal evaluation
- Criteria for Design-Builder Selection
1.Designer-builder involvement depends on
the stage at which they are introduced
2.Early DB involvement will assist the Owner in formulating the budget and the life-cycle options and alternatives
Project Planning
Project Planning should provide answers to what issues?
- Conceptual design
- Cost estimating and budgeting
- Project schedule
- Life-cycle cost
Owner and Designer-builder agree on issues related to schedule enforcement, cost and budget monitoring, quality assurance and control, and the management of changes.
Construction Administration
What should construction administration provide answers to?
- Progress payments
- QA/QC
- Cost and schedule control
- Change order management
- The need for Bridging
Upon completion of construction activities, a scheduled program for inspections, certification (substantial and final completion, occupancy, etc.), and commissioning is implemented.
Closeout and Commissioning
Closeout and Commissioning should provide answers to what questions?
- Warranties
- Facilities commissioning and training if needed
- Maintenance and operations
- Pre-defined scope
- Shorter duration
- Established cost
- Reduced cost
- Constructability / Innovation
- Established schedule
- Consolidation of responsibility
- Reduced claims
- Established completion date
Expected Advantages of D/B
D/B IS MOST SUITABLE FOR
PROJECTS WITH..
- Repetitive design needs
- Clearly defined design needs
- Process orientation of schedule
- Demanding schedules
- A need to control cost and schedule
risk
D/B is sometimes applied, even within the
traditional approach, in an unnoticed
form through:
- Performance specifications
- Shop drawings
- Some steel construction
- Curtain walls
The D/B team can be formed in 6 different ways:
- Through vertical integration
- A/E adds construction operations, or GC
adding design operations - Through short/long term partnering
- Could be with the same partner, or with
different partners - Through merging and/or joint ventures
- The team can be headed by either the A/E or the GC
is a process where the Owner
commissions a design professional to create a set of partial design documents to be used in the solicitation of the design
-build proposal
Bridging
can oversee the design, and later the construction project on behalf of the Owner.
The bridging consultant
This approach is sometimes referred to as
Design-Design-Build.
bridging
- Defines project scope
- Selects bridging consultant
- Develops budget
Owner’s job during Bridging
- Prepares program
- Develops conceptual drawings (up to 30% completion)
- Prepares RFP for the selection of the DB
firm
Bridging consultant’s job during Bridging
- Prepares contract documents
2. Performs design development and constructs the project.
Design-build firm’s job during Bridging
1. Relationship between the parties (Bridging) 2. Design professional’s standard of care Modifying contract provisions for “average levels of skill and care” 3. Performance warranties Similar to BOT (DBOT) 4. Entitlement to change orders Spearin Doctrine Misrepresentation (unintentional) 5. Licensing problems A/E heads the team 6. Conflicts with competitive bid laws QBS
Obstacles and solutions
- Fosters competitive bidding
- Takes time for complete design
- Method-based specifications
Design-bid-build unique features
- From method to performance specifications.
2. Transferring quality assurance (QA) to contractor for a price.
Design-Bid-Build Warranty Features
- time is money
2. Design is just ahead of construction
Design/CM-Bid-Build (Fast Track) features
- Time to market is important.
2. Mobilize to field (construction) when 50% design is complete.
Engineer/procedure/construction (industrial construction)
- Designer and contractor can be separate entities or same organization.
- Facilitates integration of design and construction.
Design-build
- User fee
- Full service planning, design, construction, and operation and maintenance.
- Can be for a specified length of time (say 20, 25, 30 years)
- Transfer ownership to another party.
Public sector.. and option when insufficient tax dollars available to meet critical needs
Design-build-Operate-Transfer (privatization)
