PROJECT DELIVERY METHODS Which one do I choose? By Jerry W. Preston, RA

DELIVERY THROUGH Design/Bid/Build – Traditional Method Alternative Delivery Methods Best Value Options Construction Management Agent or Adviser At Risk or General Contractor Design/Build

DELIVERY THROUGH DESIGN/BID/BUILD - Defined Design/Bid/Build is the traditional and standard method of delivery. It is a structured process of design producing a set of bidding documents, an open competitive bidding phase, and award of a contract to the responsive and responsible bidder offering the lowest price for the work.

DELIVERY THROUGH DESIGN/BID/BUILD – When to Use A low competitive bid procedure is desired. The project is straight forward and not requiring additional safe guards. There is a sufficient number of qualified contractors to bid on the project without prequalification. There is insufficient skilled staff to administer an alternative method.

Delivery Through Best Value Options - Defined Best-Value is a project delivery method similar to Design/Bid/Build, but evaluating potential contractors’ proposals on factors of qualifications and experience, technical approach, and price.

Delivery Through Best Value Options – Option One Request for Proposal Factors Qualifications & Experience – 60 Points Technical approach – 40 Points Prequalification – Points Cut-off (80) or a set number of qualifiers (3 to 5) Award contract to the responsive and responsible prequalified bidder with the lowest bid price for the work.

Delivery Through Best Value Options – Option Two Request For Proposals Factors Qualifications & Experience – 40 Points Technical approach – 30 Points Prequalification – Points Cut-off (56) or a set number of qualifiers (3 to 5) Bid Price – 30 points Award of a contract to the responsive and responsible prequalified proposer with the highest number of points out of 100.

Delivery Through Best Value Options – When to Use Project size – $3M to $15M – any size project requiring special consideration. Project complexity/quality concerns– the need for a higher level of qualifications and experience for licensed contractors. This evaluation should help in deciding between option one or two.

Delivery Through Construction Management Agent - Defined A delivery method where the owner engages a construction manager to advise the owner on the management of the design and construction of the project. The CMa may act as the owner’s agent during the design and construction phases. The CMa does not bear financial risk. The owner holds the construction contract(s).

Delivery Through Construction Management Agent – When to Use Project size – $5M & up – any size project requiring special consideration. When owners do not have the expertise or the time to manage a complex/difficult project. When adding a layer of management is justified in order to reduce the risk of potential cost and schedule overruns.

Delivery Through Construction Management at Risk - Defined A delivery method where the owner engages a construction manager to provide pre-construction and construction services. The CMr provides consulting and estimating services during design phases, and acts as the general contractor during the construction phases, holding the trade contracts and providing management of construction services.

Delivery Through Construction Management at Risk - Defined The CMr competitively procures the contracts with trade contractors and assumes the responsibility and risk of construction delivery within specified cost and schedule terms after providing a guaranteed maximum price (GMP) on a defined scope of Work.

Delivery Through Construction Management at Risk – When to Use Project size – $10M & up – any size project requiring special consideration. A CMr is needed for advice during the pre-construction phases of a project regarding budget, schedule, constructability, value analysis, operational functionality, lower maintenance demands.

Delivery Through Construction Management at Risk – When to Use The need for increased construction quality, leadership, supervision, coordination, workmanship, dependable performance, efficient management, and teamwork during the construction phase. “Fast-Track” construction is needed to allow early-stage construction to proceed while late-stage construction is still in design.

DELIVERY THROUGH DESIGN/BUILD - Defined The Design / Build method is where the D/B team provides the design, construction documents and the construction of the project based on the program and other criteria provided by the owner. The owner may engage an architect or engineer as a bridging agent to assist in the preparation of the program and related criteria documents and to assist the owner as appropriate throughout the project.

DELIVERY THROUGH DESIGN/BUILD - Defined The RFQ/RFP should be a two part process. Part One is Request For Qualifications and establishment of a shortlist (3 teams) of the most qualified teams who are eligible to submit a response to the Request For Proposals. The RFP requires the submission of a design, total cost for the completion of the design and the construction of the project.

DELIVERY THROUGH DESIGN/BUILD – When to Use There is a compelling reason to complete the total project (design and construction) in a minimum amount of time or to meet a fixed deadline for completion of the project.

DELIVERY THROUGH DESIGN/BUILD – When to Use Desire to have a single point of responsibility for the project and a single contract that includes both design and construction. Unique project requirements that may be best met by the joint efforts of a creative design and construction team.

DELIVERY THROUGH DESIGN/BUILD – When to Use A need to have a fixed total project cost very early in the project. The Owner has the ability (with the Bridging Agent, if required) to appropriately define the requirements for the project.

DELIVERY THROUGH Design/Bid/Build – Traditional Method Alternative Delivery Methods Best Value Options Construction Management Agent or Adviser At Risk or General Contractor Design/Build

Owner’s Considerations When Selecting an Alternative Delivery Method Cost of an alternative delivery process to the owner in relation to cost of project. Qualified manpower available to conduct an alternative delivery process. a. In house b. Out source Time required for an alternative process in relation to schedule demands.

PROJECT DELIVERY METHODS Which one do I choose? by Jerry W. Preston, RA