design bid build design build construction management agency

design bid build design build construction management agency

PROJECT DELIVERY METHOD ANALYSIS DESIGN BID BUILD Getting the best value for your construction dollar DESIGN BUILD OWNER CONSTRUCTION MANAGEMENT A...

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PROJECT DELIVERY METHOD ANALYSIS DESIGN BID BUILD

Getting the best value for your construction dollar

DESIGN BUILD

OWNER

CONSTRUCTION MANAGEMENT AGENCY

CONSTRUCTION MANAGEMENT AT RISK

OWNER

OWNER

INTEGRATED PROJECT DELIVERY

OWNER OWNER

A/E

GENERAL CONTRACTOR

GENERAL CONTRACTOR

A/E

CM AGENT

A/E

CONSTRUCTION MANAGER

A/E CONSTRUCTION MANAGER

SUBCONTRACTORS

SUBCONTRACTORS

MULTIPLE PRIME CONTRACTORS

SUBCONTRACTORS

CHARACTERISTICS

CHARACTERISTICS

CHARACTERISTICS

CHARACTERISTICS

CHARACTERISTICS

• •

• •

• •





• • • •

Architect hired first by the owner Owner/Architect develop program and complete documents Architect is fully responsible for estimates, constructability and design After the project documents are completely designed, they are put out for bid Traditionally the low bidder is selected to complete project Communication is directed through the Architect to the Owner

ADVANTAGES • • • •

Familiar delivery method Defined roles/responsibilities for team Allows more firms to bid Initially presents the lowest potential cost for the project

DISADVANTAGES • • • • • • • • •

No “fast-tracking” process available Budgets may or may not be met...architects are not always current on pricing market(s) Low bidder may not understand project goals, objectives and criteria Owner has no control or input on sub- contractors Process puts Owner as issue resolution agent if architectural documents and construction conflict High potential for change orders and conflict Owner control over GC’s staff is limited No cost savings sharing Relationships can be adversarial

• •

Owner hires a GC or Design Build team The Design Build team is fully responsible to the owner for the delivery of a project Typically at some point (as early as possible) in the process a GMP is established Communication for the project flows through the GC or D/B team to the owner

ADVANTAGES •

• • •

Owner has a single contract for design and construction GMP is established early and owner risk is controlled Except for Owner changes, no change orders Project schedule can be accelerated/ “fast-tracked” if necessary Owner involvement in the process is limited Construction budget control Owner is not issue resolution agent



Opportunity for cost sharing

• • •

DISADVANTAGES • • • • •

Owner has limited involvement Difficult to establish criteria for selection of D/B team Design is complete at GMP Process may not bring best designer and best builder together for owner Quality control is responsibility of D/B team, no checks and balances

• •

Owner contracts directly with Architect firm Owner contracts directly with each sub-contractor Similar to CM at risk, but no guaranteed price CM and Architect can be selected based upon qualifications and expertise

ADVANTAGES • • • • •

CM and Architect selection based upon qualifications Projects can be delivered at accelerated/ “fast-tracked” schedule CM involved in budget development Owner can select sub-contractor CM responsible to deliver the project on budget and on schedule

DISADVANTAGES • • • • •

CM has no contractual responsibility/control with sub-contractors Final price not established until bids are received Owner must manage multiple contracts High level of Owner involvement Higher Owner risk since the Owner holds contracts

OPTION -

Select architect and general contractor separately, then form D/B team

KEY: A/E-Architect/Engineer | CM-Construction Manager | D/B-Design Build | GC-General Contractor | GMP-Guarantee Maximum Price

A/E

• • • •

Owner selects the Architect based upon qualifications and fee Owner selects CM based upon qualification and fee prior to design being completed or possibly started Architect and CM work together to deliver the project the owner requires A GMP is established early in documentation Competitive bid for subcontracts

ADVANTAGES • • • • • • • • •

CM and Architect selection based upon qualifications Owner can be involved in selection of CM team members Early CM involvement to control budget and schedule Owner may be involved in sub-contractor selection All work except CM and A/E is competitively bid GMP is established early Projects can be delivered at accelerated/ “fast-tracked” schedule Opportunity for cost sharing Ensures high quality at lowest cost

• • •

Owner selects CM and A/E based upon qualifications prior to design being started Owner/Architect/Construction Manager sign a joint contract Entire team establish the project goals and objectives Characteristics similar to those of CM at risk

ADVANTAGES • • • • • • • • •

CM and Architect selection based upon qualifications High efficiency delivery method “Fast-track” process Ultimate “team” project approach Early involvement of not only CM & A/E but subcontractors for major trades Owner risk is limited by team approach to risk/ reward incentives Success of team members is measured against success of project Opportunity for cost sharing Increased ability to deliver project within budget and schedule

DISADVANTAGES

DISADVANTAGES



• • •



Design team may not take input from CM during design Perception that price competition is limited

Newer delivery method Requires very involved owner Some contractual issues to be addressed