Transcript Project Delivery Methods

Project Delivery Methods
CM 105 - CONSTRUCTION DOCUMENTS
Kevin A. Delorey
11 Feb 2010
Most Common Delivery Methods
• Design / Bid / Build
• Design-Build
• Construction Manager
– Agency (CMa)
– At Risk (CMAR)
• Each method has its pros and cons
• Each is the subject of well-developed
contract forms incorporating years
of experience, jurisprudence, etc.
• Forms (various "families"):
AIA
AGC (now ConsensusDocs)
DBIA
EJCDC
Owner-specific forms
Design - Bid – Build
(competitive bidding)
Process
• Owner hires architect to design project and
prepare construction documents
– (plans & specs)
• Construction documents used for bidding
• Owner selects and hires Contractor
– Lump sum
– Cost plus (with or without GMP)
Design - Bid - Build
Owner
Sub
Contractor
Consultant
Architect
GC
Sub
Contractor
Consultant
Contracts
Communication
Suppliers
Design - Bid - Build
Most Common Form
of Project Delivery
• Three phases, three prime players
• Independent contracts between architect/owner
and contractor/owner
• Linear sequence of work
• Common with public owners with requirements to
select low bid
Design - Bid - Build
Advantages
• Common and familiar
• Linear process
• Design complete prior to construction
– i.e., fully-defined scope
• Clear roles assigned to each party
• Competition leads to lowest price
• Both design and construction teams
accountable to Owner
Design - Bid - Build
Disadvantages
• Relatively lengthy process – longer schedule
• Price not known until bids received – may lead to
redesign and rebidding if budget exceeded
• Lowest price ("first cost") does not necessarily
produce lowest final cost or best quality
• Change orders and delay claims are more likely
• No design phase input from Contractor
Design - Build
Process
• One entity hired by Owner to complete
design and construction
• May all be Contractor's in-house design
expertise or Contractor may engage outside
Architect
• Early cost commitment is made (GMP) by
Contractor based upon preliminary design
Design - Build
Owner
Consultant
Consultant
Design –
Builder
Sub
Contractor
Sub
Contractor
Contracts
Communication
Design - Build
Owner Contracts with a single entity
• Contractors more commonly head the team
• Single point of responsibility
• Not legal in all states for public projects –
where lowest competitive bid is required
Design - Build
Advantages
• Single point of accountability for design and
construction
• Selection flexibility – qualifications based
• Team Concept – contractor assists with
planning and budget during design phase
• Enables fast-track delivery— construction
begins before design is complete
• Early GMP reduces Owner concern with cost
overruns
Design - Build
Disadvantages
• Architect is not under separate contract
w/Owner. Who is watching out for Owner?
• Owner selects a team rather than the best
architect and best builder
• Design is completed after GMP is given,
making change more difficult and costly
• Potential for compromises in quality to meet
budget
• Faster schedule can produce more errors
Design - Build
D – B as Developer
• Also known as turn-key or build to suit
• DB entity maintains and operates building
to ensure all systems
• DB entity takes on responsibility for real estate
development
• Characterized by legal transfer of title to real property
•
Construction Management
Process (General)
• CM is hired by owner
• Architect is hired for construction documents
• CM oversees (or assists with) design
(cost, schedule and constructability)
• Construction documents are used to bid or negotiate
the work
• Contractor is selected
• CM is on board through construction
Construction Management
Appropriate for large, complex projects
• Used by owners without
the time or in-house expertise
to oversee the process
Construction Management
CM as constructor
• Also known as CM At Risk (CMAR)
• Acts as project coordinator and general contractor
• Includes early cost commitment
• CM assumes all liability as the contractor
Construction Manager
At-Risk
Owner
Sub
Contractor
Consultant
Architect
CM At Risk
Sub
Contractor
Consultant
Contracts
Communication
Construction Management
CM At Risk Advantages
• Team Concept
• CM firm selected by interview based on quality rather than
low cost (RFQ selection process)
• Hired pre-design allows design assist and
CM involvement in estimating and constructability
• Competitive pricing for subcontractor work (and selfperformed if Owner requires)
• Single point of accountability: CM At Risk signs contracts with
all subcontractors
• Guaranteed maximum price
• Enables fast-track delivery – time savings
• Good for large complex projects and multi-phase projects
that are time critical
Construction Management
CM At Risk Disadvantages
• Difficult for Owner to evaluate validity of GMP and
value of contract
• Typically less competition in bidding (especially for
self-performed work)
• Additional pre-construction fees and CM fee may
increase "first cost" (but may result in lower final
cost)
• Not legal for public projects in many states
Construction Management
CM as advisor
• Acts as advisor to the owner
• Architect and Contractor maintain
conventional roles
•
Traditional Construction
3 main parties/multiple contracts:
» Owner*
» Designer
» Constructor
*Plus CMa if applicable
Complaints include
• Errors and omissions in design
• Inefficiencies
• Defects in construction
• Coordination problems
• Delays
• Cost overruns
• Adversarial/fault-based relationships
Reasons include
• Multiplicity of parties with conflicting
interests and motivations
• Incompatible cultures
• Poor communication and limited access
to necessary info (silos) - (leading to
numerous RFI's)
Integrated Project Delivery
 New Goals for Building Performance
- Efficiency
- Sustainability
- Evidence-Based Design
 Certainty of Outcomes
- Cost
- Quality
- Reduction in Claims
IPD Definitions
"IPD
is
a
project
delivery
approach
that
integrates people, systems, business structures and
practices into a process that collaboratively harnesses
the talents and insights of all participants to optimize
project results, increase value to the owner, reduce
waste, and maximize efficiency through all phases of
design, fabrication, and construction.“
A Working Definition: Integrated Project Delivery AIA Integrated Project Delivery Task Force (2007)
IPD Definitions
Projects where:
 The key participants are involved from an
early stage of design;
 The project is jointly managed by the project
team; and
 Risk and reward are shared based upon
project outcome.
Howard Ashcraft, Hanson Bridgett, LLP, San Francisco (2009)
Integrated Project Delivery
COLLABORATION
JOINT
MANAGEMENT
SHARED
RISK/REWARD
Creating the Legal Relationship
Owner
Single "tri-party"
agreement among:
Owner - A/E - CM/GC
A/E
CM/GC
IPD Principles
▪ Early involvement of key participants
▪
▪
▪
▪
▪
Mutual respect and trust
Transparency
Advanced technology (BIM)
Early goal definition
Intensified planning
▪ Collaborative decision-making
▪ Shared risks & rewards
Benefits of IPD
 Increased productivity–
 Less time lost waiting for documentation
 Shop drawings can be included in construction model
 Better coordination of documents
 Fewer RFI’s and conflicts
 More informed decision making
 Better project cost control –
 Improved budget management
 Higher predictability of outcomes
 Greater understanding and control
over the construction process
Building Information Modeling
(BIM)
• Process of generating and managing building
data during its life cycle
• Uses three-dimensional, real-time, dynamic
building modeling software that
increases productivity in building
design, construction and operations
• Creates a model that encompasses building
geometry, spatial relationships,
geographic information, and quantities
and properties of building components.
Wikipedia
Building Information Modeling
(BIM)