project delivery methods cm 105 - construction documents kevin a. delorey 11 feb 2010
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Project Delivery Methods
CM 105 - CONSTRUCTION DOCUMENTSKevin 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 EJCDCOwner-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
Architect GC
Consultant
ConsultantSub
Contractor
Sub Contractor
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
Contracts
Communication
Owner
Design –Builder
Consultant
Consultant
Sub Contractor
Sub Contractor
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 ManagerAt-Risk
Owner
Architect CM At Risk
Consultant
ConsultantSub
Contractor
Sub Contractor
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 self-performed 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
SHARED RISK/REWARD
JOINTMANAGEMENT
Creating the Legal Relationship
Single "tri-party" agreement among:
Owner - A/E - CM/GC
Owner
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)
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