Single Source PROJECT DELIVERY SYSTEMS: Engineer/Procure/Construct and Design-Build by Awad S. Hanna, Ph. D., P. E. The University of Wisconsin, Madison Department of Civil and Environmental Engineering Construction Engineering and Management Program Ⓒ Prof Awad S. Hanna Prof Awad Hanna

Single Source Project Delivery System Outlines: Introduction and definition of terms Advantages and disadvantages to owners and contractors Importance of involving major specialty contractors and vendor up front in the project development Required conceptual designs and assemblies cost data Value engineering studies Prequlaification, proposal evaluation, and insurance and bonding Ⓒ Prof Awad S. Hanna

Traditional Method (Design_then _Build) Also known as design_bid_build or hard money or competitive bid contract. Has three sequential phase design - bid - construction. Architect-Engineer hired Architect- Engineer hired Bid/Award Design Phase Construction Phase Single Construction Contract Ⓒ Prof Awad S. Hanna Prof Awad Hanna

Traditional Organization Owner A/E General Contractor Sub Contractor Sub Contractor Sub Contractor Sub Contractor Sub Contractor The owner contracts separately with designer and a contractor Ⓒ Prof Awad S. Hanna Prof Awad Hanna

Estimating Needs for Design-Bid-Build Complete set of drawings Specification Other contract documents General conditions Special conditions Addenda Others (soil report) Ⓒ Prof Awad S. Hanna Prof Awad Hanna

Single Source Delivery 1. Design Build 2.Engineer/Procure/Construct (EPC) EPC model#1 ( CM agency “pure” ) EPC model#2 ( CM at Risk ) Other Multiple prime contractors Owner design construct Integrated teams or strategic alliance Design-Build-Finance and Design-Build-Develop Ⓒ Prof Awad S. Hanna Prof Awad Hanna

Fast Track or Phased Construction Method CM and A/E or DB hired Concepts Working Drawing Design Phase Construction Phase Variable separate construction contracts Ⓒ Prof Awad S. Hanna Prof Awad Hanna

Level of Influence Time Project Cost Influence Ability to Influence Ⓒ Prof Awad S. Hanna Prof Awad Hanna

1. Design Build Owner Design-build entity Own force Subcontractors work Single firm performs both design and construction under single design-build contract. Ⓒ Prof Awad S. Hanna Prof Awad Hanna

Advantages of Design & Build for Owners Owner only has to communicate with one entity for the entire project Total project duration can be reduced because phased construction is easier to implement,(Fast tracking) Integration of construction planning and design phases Claims reduction (reduction of adversary relationships) Innovation in design and construction can be encouraged Risk assigned to party best able to manage that risk Ⓒ Prof Awad S. Hanna Prof Awad Hanna

Disadvantages of DB for Owners Fewer checks and balances, owner must rely on integrity of the design-build firm All your eggs in one basket Ⓒ Prof Awad S. Hanna Prof Awad Hanna

Advantages to a design-build organization Improved constructibility through design/construction integration A specialized organization can be developed that has a specific expertise which will be attractive to specific market areas Reduction of negligence claims between the Architect/Engineer and the construction contractor since they are under one umbrella firm Ability to react rapidly to change in scope Ⓒ Prof Awad S. Hanna Prof Awad Hanna

Disadvantages for the design-build firm Acceptance of additional project risk Scope of work changes can be difficult to identify under DB/ fast track construction Ⓒ Prof Awad S. Hanna Prof Awad Hanna

Summary of average differences between project delivery systems (CII-133) Ⓒ Prof Awad S. Hanna

Importance of Involving Specialty Contractors up front in the Project Development Specialty works represent 60% to 70% of the project cost Specialty works control the pace of construction Integration of electrical and mechanical systems early in the design stage Specialty works are labor intensive (high risk for cost overrun) Ⓒ Prof Awad S. Hanna

2. Engineer/Procure/Construct Model#1 (EPC) Pure CM (CM agency) Owner In-House Design or Engr. Firm CM Specialty Contractors and Vendor Specialty Contractors and Vendor Specialty Contractors and Vendor Specialty Contractors and Vendor EPC Model #1 Ⓒ Prof Awad S. Hanna Prof Awad Hanna

2. Engineer/Procure/Construct Model#2 (CM at Risk) General Contractor acting as CM Owner Engineering/Procure Construct Specialty Contractors and Vendor Specialty Contractors and Vendor Specialty Contractors and Vendor Specialty Contractors and Vendor EPC Model #2 Ⓒ Prof Awad S. Hanna Prof Awad Hanna

Estimating Needs for Single Source Delivery Conceptual Design General idea about the proposed quality Assemblies cost data Update your estimate as the design develops Value engineering studies Ⓒ Prof Awad S. Hanna Prof Awad Hanna

Value-Engineering Study Ⓒ Prof Awad S. Hanna

Required Conceptual Design and Assembly Cost Data Example of assembly cost data Ⓒ Prof Awad S. Hanna

Design-Build Issues 1. Prequalification The reduction of the number of possible bidders to a small group of serious, qualified bidders improves the effectiveness of the selection process. Ⓒ Prof Awad S. Hanna Prof Awad Hanna

Design-Build Issues (cont.) 2. Proposal Evaluation Cost only Cost and time Multiparameter (quality, safety…etc.) Ⓒ Prof Awad S. Hanna Prof Awad Hanna

Design-Build Issues (cont.) 3. Legal a. Insurance and bonding The contractor should have the proper insurance to cover design deficiencies or cover construction errors. b. Conflict of interest Design-build eliminates the checks and balance of the traditional methods. Ⓒ Prof Awad S. Hanna Prof Awad Hanna

Critical Success Factors for Design-Build Project team selection; Pre-qualification of contractors; Level of design complete prior to engaging construction team; Individual experience of team members with similar facility type; Individual experience of team members with the project delivery systems; Team’s prior experience as a unit; Project team communication; Owner type (public or private); Owner/project team relationship (first time, partnering or repeat); Owner’s ability to define the project scope; Project complexity; Ⓒ Prof Awad S. Hanna