Exploring Project Delivery Methods: Choosing the Right Approach

Introduction:

In the world of construction, choosing the right project delivery method is akin to selecting the right foundation for a building. It sets the tone for the entire project, influencing factors such as cost, schedule, quality, and collaboration. With various options available, each with its unique pros and cons, understanding and selecting the most suitable delivery method is crucial for the success of any construction project.

What is a project delivery method?

A project delivery method is the process by which a construction project is organized, designed, and executed. It outlines the roles and responsibilities of the project stakeholders, defines the sequence of work, and establishes the contractual relationships between the parties involved. Construction project delivery methods can be broadly categorized into the main approaches below.

1.????? Design-Bid-Build (DBB):

·??????? In the DBB method, the project is divided into three distinct phases: design, bidding, and construction.

· Typically, the client hires the design consultant first to develop the project’s design, after which it is put out to bid.

·??????? Contractors then submit the competitive bids, and the lowest qualified bidder is awarded the contract.

·??????? This traditional and most used method across the world offers a clear separation of design and construction. Still, it can result in adversarial relationships among stakeholders as there is no collaboration at the design stage.

·??????? The client has complete control over the design in this method.

2.????? Construction Management Multi-Prime (CMMP):

·??????? This method is a variant of the DBB method, and it allows fast tracking.

·??????? In this method, the client contracts with all the design consultants and main trade contractors.

·??????? The Client team manages all the design consultants and the trade contractors.

·??????? This method suits those clients who have extensive in-house construction management experience.

·??????? It may lead to extensive coordination and interface issues among different trade contractors.

3.????? Design-Build (DB):

·??????? In the DB approach, a single entity, the design-build team, is responsible for the project's design and construction. It may be one entity, two entities in a joint venture, or one is main, and the other is a sub-contractor.

·??????? This method promotes collaboration and can lead to faster project delivery since design and construction activities can overlap.

·??????? The owner has a single point contact, simplifying communication and minimal coordination requirements.

·??????? In this method, the Client has less control over the design.

·??????? There are various iterations of the DB method, such as:

i.???? “Bridging”: The owner has its own design consultant, ODC, who prepares preliminary design and tender documents for a DB type of agreement.

ii.???? “Public Private Partnership” (P3 or PPP): In this method, a public entity partners with a private entity to deliver public infrastructure. There are further various variants of the P3 method. A few of them are Design-Build-Maintain (DBM), Design-Build-Operate (DBO), and Design-Build-Operate-Maintain (DBOM). In most of the variants, a private entity comprises a design-build team, a maintenance firm, and a financing firm. This method usually allows to close the funding gap for large public infrastructure projects.

4.????? Construction manager at risk (CMAR) or Construction Manager/General Contractor (CM/GC):

·??????? CMAR involves two phases: preconstruction (development and design) and construction.

·??????? During preconstruction, the construction manager is an adviser /Consultant to the client. He assists the owner in developing the project brief and initial budget, selecting the consultants, managing the design, and providing input on design, cost estimates, and constructability.

·??????? As the design progresses, the construction manager transitions into the role of the general contractor, managing the construction phase after agreeing with a guaranteed maximum price (GMP) with the client.

·??????? This method allows early contractor involvement in the form of CM, which becomes GC in the construction stage.

·??????? It offers flexibility and collaboration in the development and design stage but may become adversarial in the construction stage when CM becomes the GC.

5.????? Integrated Project Delivery (IPD):

·??????? It is a relatively new project delivery method. It required a multi-party contract among the main parties: owner, designer, and Contractor. Sub-consultants and subcontractors may also be included.

·??????? This project delivery method offers collaboration contractually among the primary parties: the Owner, the designer, and the contractor.

·??????? Risk responsibilities and liabilities for project delivery are collectively shared and managed.

How to choose the best delivery method for a project:

Selecting a project delivery method depends on various project-specific factors, such as complexity, budget, schedule, and the owner’s preference for control. Below are some key considerations when making this decision.

1.????? Project Complexity: Highly complex projects with specialized requirements may benefit from the DBB method, where the designers can focus on the design only. More straightforward projects may benefit from the DB or CMAR method.

2.????? Budget and Cost Control: DB and CMAR methods provide more cost control, while DBB may have less control over cost due to lake of input from the contractor side during the design stage. DBB method may be cheaper than other methods as in other methods, other parties share more risks, for which they may charge a premium. Where large funding is required for public infrastructure projects, PPP variants may be used.

3.????? Schedule: If time is a constraint, DB and CMAR methods may complete the job faster due to their collaborative nature and the ability to overlap design and construction phases.

4.????? Owners’ involvement and control: In the DBB and CMAR methods, the owner has a substantial amount of control over the end product, while in the DB method, the owner has less control.

5.????? Risk Tolerance: In the DBB method, the owner shares more risks than in the DB and CMAR method. In IPD, risks are equally shared among all the parties.