Lecture 4: Project delivery systems

Question 1

The traditional project delivery system

involves three main parties:

Answer 1

1. The Owner
2. The Architect/Engineer (A/E)
3. The Contractor(s) and his/her subs

Question 2

Is the Owner’s agent and fiduciary.

Answer 2

The A/E

Question 3

The relationship between the Owner and

the Contractor is usually an _______.

Answer 3

adversarial relationship

Question 4

Traditional Project delivery System:

Answer 4

1. Design
2. Bid
3. Build

Question 5

What is the A/E responsible for under deign-bid-build?

Answer 5

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

Question 6

What is the Owner responsible for under Design-Bid-Build?

Answer 6

The owner is typically responsible for:

1. Making periodic payments to the contractor
2. Approving contract modifications involving changes to contract time or price

Question 7

What is the project manager’s job under design-bid-build?

Answer 7

1. Preparing
   applications for payment
2. Administering subcontracts
3. Purchasing
4. Preparing, monitoring, updating, and revising project schedules
5. Attending project meetings
6. Communicating with the A/E and subcontractors
7. Preparing proposal requests and responding to A/E issued contract
   modification
   proposals
8. Preparing and implementing safety programs
9. Requesting clarifications and interpretations of the contract documents
10. Administering the submital process

Question 8

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

Answer 8

Phased or “Fast Track”

Construction

Question 9

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

Answer 9

The design phase of Phased or “Fast Track” Construction.

Question 10

1. Construction Phase
2. Project is being designed, bid, and
   built in stages
3. Excavation, foundations, structure
   are bid and started before design
   work is finished
4. Mechanical and electrical are bid
   and built while finishing and partition
   work are still being designed

Answer 10

The construction phase of Phase or “Fast Track” construction.

Question 11

A “pure” construction manager (Agency CM )will not guarantee a budget or schedule nor will they perform any work on site ______.

Answer 11

(CM for fee or ACM)

Question 12

A general contractor acting as a
construction manager will guarantee
both and perform work that is critical
to control cost and schedule

Answer 12

(CM at risk)

Question 13

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)

Answer 13

Engineer/Procure/Construct

EPC

Question 14

Common problems with the traditional

approach include:

Answer 14

1. Cost overruns
2. Schedule delays
3. Changes and modifications
4. Claims and disputes
5. Constructability issues

Question 15

1. is a project delivery system
   that can be used as an alternative to the
   traditional approach (Design/Bid/Build)
2. The project Owner consolidates the
   Liabilities/Responsibilities into one party
   (The design/builder)

Answer 15

Design/build

Question 16

What are the six stages of Design/build?

Answer 16

1. Project initiation
2. Risk Allocation
3. Performance specification
4. Project Planning
5. Construction Administration
6. Project Closeout

Question 17

1. Starting point where the Owner defines needs and
   expectations
2. Consultants and financial planners assist the Owner
   in determining project objectives, budget, and financial resources

Answer 17

Design/build Project initiation

Question 18

Project initiation Includes answers to what 8 issues?

Answer 18

1. Benefits and cautions of the delivery system
2. Program and feasibility studies
3. Project timeline
4. Budget and contingencies
5. Project financing
6. Life
7. cycle options
8. Project design alternatives

Question 19

is essential to design-build and insurance issues need to be detailed (limits, provided by whom, etc.)

Answer 19

Risk Allocation

Question 20

During Risk Allocation of the design-build phase, What 7 questions should be considered?

Answer 20

1. Laws and licensing
2. Design-Build contract fundamentals
3. Owner/Design-Builder Contract
4. Design/Builder formation and contracts
5. Teaming arrangements
6. Insurance
7. Sureties and bonding

Question 21

Entails Owner’s focus on methods to

solicit and award a contract for Design-Build.

Answer 21

Performance specification

Question 22

A performance specification should provide answers to what issues?

Answer 22

1. RFP/RFQ definitions
2. RFP/RFQ preparation and drafting
3. Performance specifications
4. Preparing the proposal response
5. Estimating the proposal costs
6. Proposal evaluation
7. Criteria for Design-Builder Selection

Question 23

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

Answer 23

Project Planning

Question 24

Project Planning should provide answers to what issues?

Answer 24

1. Conceptual design
2. Cost estimating and budgeting
3. Project schedule
4. Life-cycle cost

Question 25

``` Owner and Designer-builder agree on issues related to schedule enforcement, cost and budget monitoring, quality assurance and control, and the management of changes. ```

Answer 25

Construction Administration

Question 26

What should construction administration provide answers to?

Answer 26

1. Progress payments 2. QA/QC 3. Cost and schedule control 4. Change order management 5. The need for Bridging

Question 27

Upon completion of construction activities, a scheduled program for inspections, certification (substantial and final completion, occupancy, etc.), and commissioning is implemented.

Answer 27

Closeout and Commissioning

Question 28

Closeout and Commissioning should provide answers to what questions?

Answer 28

1. Warranties 2. Facilities commissioning and training if needed 3. Maintenance and operations

Question 29

1. Pre-defined scope 2. Shorter duration 3. Established cost 4. Reduced cost 5. Constructability / Innovation 6. Established schedule 7. Consolidation of responsibility 8. Reduced claims 9. Established completion date

Answer 29

Expected Advantages of D/B

Question 30

D/B IS MOST SUITABLE FOR | PROJECTS WITH..

Answer 30

1. Repetitive design needs 2. Clearly defined design needs 3. Process orientation of schedule 4. Demanding schedules 5. A need to control cost and schedule risk

Question 31

D/B is sometimes applied, even within the traditional approach, in an unnoticed form through:

Answer 31

1. Performance specifications 2. Shop drawings 3. Some steel construction 4. Curtain walls

Question 32

The D/B team can be formed in 6 different ways:

Answer 32

1. Through vertical integration 2. A/E adds construction operations, or GC adding design operations 3. Through short/long term partnering 4. Could be with the same partner, or with different partners 5. Through merging and/or joint ventures 6. The team can be headed by either the A/E or the GC

Question 33

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

Answer 33

Bridging

Question 34

can oversee the design, and later the construction project on behalf of the Owner.

Answer 34

The bridging consultant

Question 35

This approach is sometimes referred to as | Design-Design-Build.

Answer 35

bridging

Question 36

1. Defines project scope 2. Selects bridging consultant 3. Develops budget

Answer 36

Owner's job during Bridging

Question 37

1. Prepares program 2. Develops conceptual drawings (up to 30% completion) 3. Prepares RFP for the selection of the DB firm

Answer 37

Bridging consultant's job during Bridging

Question 38

1. Prepares contract documents | 2. Performs design development and constructs the project.

Answer 38

Design-build firm's job during Bridging

Question 39

``` 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 ```

Answer 39

Obstacles and solutions

Question 40

1. Fosters competitive bidding 2. Takes time for complete design 3. Method-based specifications

Answer 40

Design-bid-build unique features

Question 41

1. From method to performance specifications. | 2. Transferring quality assurance (QA) to contractor for a price.

Answer 41

Design-Bid-Build Warranty Features

Question 42

1. time is money | 2. Design is just ahead of construction

Answer 42

Design/CM-Bid-Build (Fast Track) features

Question 43

1. Time to market is important. | 2. Mobilize to field (construction) when 50% design is complete.

Answer 43

Engineer/procedure/construction (industrial construction)

Question 44

1. Designer and contractor can be separate entities or same organization. 2. Facilitates integration of design and construction.

Answer 44

Design-build

Question 45

1. User fee 2. Full service planning, design, construction, and operation and maintenance. 3. Can be for a specified length of time (say 20, 25, 30 years) 4. Transfer ownership to another party. Public sector.. and option when insufficient tax dollars available to meet critical needs

Answer 45

Design-build-Operate-Transfer (privatization)