Project Delivery Methods Flashcards
What are the 3 major classifications that contracts are structured?
- Traditional
- Design-Build
- Construction Management
How can a builder be selected under Traditional contract structure?
- Open bidding
- Prequalified bidding
- Qualifications and negotiation
option 1&2 may be required for public projects (negotiations allow for opportunity for abuse)
option 3 can permit builder to join the project team during the design stage
Linear Model best represents which type of contract structure?
Traditional
What are the three stages of a traditional PDM?
Concept/Design, Procurement, Construction
3 Prime players in traditional PDM
Owner, Designer, Builder
How many contracts are normal for a Traditional PDM?
2.
Owner and Designer - Fee based, Lump sum
Owner and Builder - (Unit Price, Lump Sum, Negotiated)
What are the roles and responsibilities of the players in a traditional PDM?
Owner - Program (when, where, what etc.), Finance (funding for project)
Designer - Design (and field services)
Builder - Delivery of completed project
What are some advantages and disadvantages of traditional PDM?
Advantages: Familiar, procedure and contractual rules are well understood, final cost often known for linear projects, open bidding provides lowest price available,
Disadvantages: Builders input not available until construction stage, no contract between designer and builder, no opportunity to overlap design and construction to reduce time, unforeseen conditions are likely to occur and leads to disagreement
What types of projects are good for Traditional PDM?
Well-defined scope, minimal risk of changes, time is not a significant factor (think overlap) minimal political, technical or schedule restraints
What are some permutations of the design build model?
- Contractor led - builder engages design professionals required for the project
- Integrated - design-build entity provides most services itself
- developer - used by owners who do not intend to take financial responsibility for the project until it is completed
Characteristics of the design-build model.
two continuous stages - design-build
two prime players - owner and design-build entity
one contract - owner and design-build entity (typically fixed price, lump sum)
Roles and Responsibilities of players in design-build model.
owner - program (where, when what..) finance (unless developer is to finance)
design-build entity - design and deliver project, manage approvals with Project Stakeholders (MOTI, municipality)
Advantages and Disadvantages of Design-Build Model
Advantages - single point of contact for owner, good communication (good results lead to more profits), construction input during design stage can reduce costs, project can be FAST-TRACKED (2 continuous stages)
Disadvantages - no direct connection b/w owner and designer, lack of checks and balances (owner may hire his own consultant to oversee), construction quality may erode due to cost saving strategies
What types of Projects are good for Design-Build Model
- projects with tight schedule
- highly technical projects
Extensively used for industrial construction (producing a good –> fast track is important time to operational)
What is the Construction Management Method
- one firm controls all activities
- firm represents owner in all CM activities (start to finish, conception to completion)
- firm controls flow of information
- once contractual relationships are established, CM firm controls prime/main, all subs, as well as major suppliers fabricators
- CM firm uses the project schedule to move things in timely and cost effective manner
MAJOR FUNCTIONS DEPEND ON STAGE OF PROJECT
What is the difference between a CM w/out risk and CM w/ risk?
Who is signing the construction contract?
- Without risk is appropriate for large relatively complex projects for Owners who want to hire the designer and builder directly but do not have time or expertise to oversee the project
- With risk is appropriate for Owners (usually private sector) who do not intend to be involved in day-to-day design and construction process. Owner pays CM to carry the risk.
** owner taking risk = lower return. In signing contract owner must take and manage risk
What are characteristics of a CM without Risk model?
4 prime players
Owner, CM, Designer, Builder
3 separate contracts
What are characteristics of a CM at Risk model?
4 prime players
Owner, CM, Designer, Builder
3 separate contracts
Advantages and Disadvantages of CM model
Advantages - reduce workload for owner, careful monitoring of costs and schedule, fewer change orders and delay claims during construction, CM expertise can shorten project completion time, CM at risk protects owner from cost overruns from subs
Disadvantages - added cost of CM, confusion and potential friction can result without good communication b/w team members and clear definitions of roles, all parties must be committed to arrangement
Good candidates for CM model
Large complex projects, for owners without in-house expertise, commercial real estate developments
What is a P3?
A partnership arrangement in the form of a long-term performance-based contract between public sector (any level) and the private sector to deliver public infrastructure for citizens (anything citizens expect their government to provide)
P3 Variations
Design Build Operate Maintain
Design Build Finance Operate
Public owner doesn’t need to pay up front (lease instead of mortgage)
P3 Concepts
Taxpayers or users pay for project AFTER it is completed.
Private sector efficiencies
Government retains ownership, control and responsibility
Private partner is liable for cost risks, especially on project which include operation for a fixed period
P3 Drawbacks
Agreements take a long time to put together
Agreements can be costly
The size of projects require either very large companies or joint ventures
Proponents are pre-qualified (cost to bid)
Private party is responsible for both QA and QC. Risk to owner can be addressed by having QAQC audited
