Project Delivery Flashcards
Design-Bid-Build
is the traditional form of project delivery. The owner hires an architect who then designs the building. The drawings are sent to various contractors who then bid on the job and the owner selects the low bid.
Cost plus fixed fee, or cost-plus
is a way of controlling some of the costs of a project if the contractor needs to be selected before the design is finished. The owner will pay the contractor actual cost of labor and materials and a fixed fee for the contractors profit.
When does the owner select Cost plus fixed fee
Owners will select this method if cost is the primary factor in their decision. Risk is also considered but is secondary to cost
Design-Build
is a newer (compared to Design-Bid-Build) project delivery method that combines the designer and the builder in one entity.
When does the owner select Design-Build
Owners will select this method if risk is the primary concern
Bridging
is a tool owners may use to ensure they enter into an agreement that will result in the quality they want. The owner will hire a third party to provide the design-build entity with the program and the project requirements.
DESIGN - BID - BUILD pros & Cons
Pros: Competitve bidding Traditional method Division of responsibilities Architect can be owner’s agent.
Cons: Riskier Adversarial Costs unknown for longer
DESIGN - BUILD pros & Cons
PROS: Single point of responsibility Mitigates conflict between architect and contractor* Earlier known costs
CONS: Not bid competitvely Less transparency No agent for owner
Construction Manager as Advisor
is very similar to Design-Bid-Build delivery method with the exception that the Construction Manager acts as the owner’s advisor and not necessarily the builder. The CM-A will work for a fixed fee and pass on savings and cost overuns to the owners
Design-Bid-Build
THE TRADITIONAL LOW-BIDDER MODEL
