Limitations of Delivery Methods

Question 1

Design-Build-Build - Benefits

Answer 1

• Longest history of use
• Linear sequence of activities
• Documents completed prior to bid
• Competitive bidding, (results in “lowest cost)

Question 2

Design-Build-Build - Limitations

Answer 2

“Bid Day Surprise” when bids exceed budget

Inherently adversarial

Contractor can’t rely on Owner to have contingency funds

Owner has no control of the subcontractors used on the project

Question 3

Design-Negotiate-Build (D-N-B)

Pricing

• Similar to Design-Bid-Build, but negotiated
• Can be a protracted process
• Conducive to value analysis and repricing during negotiations
• Can be used along with D-B-B

Question 4

Construction Manager at Risk

Answer 4

• Allows for:
  
  • preconstruction services
  • design-assist services

related to budgeting and scheduling

• In CMaR construction manager works directly with the owner and architect/engineer to deliver projects.
• Design Assist during Design phase
• Update budget and project schedule in preconstruction phases
• Subs are bid “open book” - review with owner = best sub is selected
• Can be a more collaborative process than D-B-B

Question 5

Construction Manager at Risk - Benefits

Answer 5

• Typically used for multiple contracts and complex projects and GMP (Guaranteed Maximum Price) work
• CM’s provide services usually beyond those of the A/E’s basic services or the Owners expertise
• Allows for Design Assist by sub-contractors
• CM can help reduce change orders by aiding communication and coordination
• CM’s have advanced knowledge of:
• Coordination of construction
• Sub-contractors
• Cost/budget management
• Schedule management

Question 6

Construction Manager at Risk - Limitations

Answer 6

• Not typically suitable for small, one contract projects
• Owner often pays more in professional fees
• Potential exists for conflict of interest in bidding to subcontractors if bids are not disclosed

Question 7

Design-Build

Answer 7

* The A/E does not represent the owner

• The Owner may have a contract with an independent A/E, a Consultant, to provide Concept Phase services and advice during construction:
  
  • Establish the design criteria
  • Define quality standards for materials, systems & equipment
  • Review D-B contractor shop drawing submittals

Question 8

Design-Build - Benefits

Answer 8

• Single entity is responsible for design and construction
• More control over schedule and costs
• Fast-track scheduling is an option
• Close coordination between Contractor and A/E
• Design-builders usually specialize in specific project types
• Fewer Change Order requests resulting from errors or omissions in the CDs.

Question 9

Design-Build - Limitations

Answer 9

• Preparation of project description may be difficult for Owner due to lack of expertise in construction
• Less protection for Owner by A/E because A/E works for Contractor
• Documents may be less detailed and material selections made by design-builder
• Owner required to administer Contract
• Increased risk for design-builder

Question 10

Owner-Build

Answer 10

• Owner provides project management services
• A/E provides design services, sometimes to augment Owner’s in-house design work
• A/E services in construction may be replaced by Owner’s staff

Question 11

Owner-Build - Benefits

Answer 11

• Cost savings for Owner by doing work themselves
• Total control over project.

Question 12

Owner-Build - Limitations

Answer 12

• Significantly more risk to Owner
• No recourse for errors and omissions when design is performed in-house

Question 13

Integrated Project Delivery, (IPD)

Answer 13

Requires early collaboration during design phases.

“Break down the silos”

Parties involved in design process for this method:

• Contractor(s)
• Architects & engineers
• Facility Managers
• Subcontractors
• Manufacturers
• Suppliers

Question 14

Construction Manager as Agent, (CMa)

Answer 14

• CMa does NOT enter into contracts for construction, only advises the Owner

• Typically used for multiple contracts and complex projects
• CMa not at risk, works for a fee
• CMa not liable for contractor’s budget or schedule failures
• CM’s provide services usually beyond those of the A/E’s basic services or the Owners expertise
• CM’s have advanced knowledge of:
• Coordination of construction
• Cost/budget management
• Schedule management

Question 15

Program Management - Benefits

Answer 15

• Used on complex, multi-facility or multi-phase construction programs.
• Advise the Owner similar to the CM agent & CM advisor
• Typically does not contract for construction
• Program Managers provide services usually beyond those of the A/E’s basic services or the Owners expertise