Project Delivery Methods

Why Is The Project Delivery Method Important?

The selection of a project delivery method is an important decision that defines the relationships among the owner, designer and constructor. These relationships (bound by specific contractual terms) can have wide-reaching effects on the project budget, schedule, quality and the amount of owner involvement required for the project.

What Are The Different Delivery Methods?

There are three primary methods of project delivery, each with its own contract structure and set of characteristics. These project delivery methods are:

Design/Bid/Build (D/B/B)
Design/Build (D/B)
Construction Management (CM)

The graph at the top shows the sequence of design, bid and construction as well as time saved for each delivery method. A more detailed description of each method is provided below.

Design/Bid/Build

Also known as the "Traditional Method" or "Plan & Spec", this method is characterized by a linear process where one task follows the completion of another, with virtually no overlap. First, a designer is selected, who completes the project plans and specifications based on the program or client's needs. Bids are solicited from general contractors, who then bid the project per the construction documents provided. The lowest bidder is typically awarded the work.

Characteristics:

Competitive bidding is used to achieve the lowest price for the drawings and specifications
Typical project duration is longer than all other delivery methods
Selection of the general contractor is typically based on price, rather than experience or qualifications
Owner and architect are responsible for completeness and accuracy of construction documents
No construction input during design
Firm project pricing can only be established after the owner has incurred the majority of the cost for a complete design
Owner is financially responsible for conflicts among team members (Architect/Engineers & General Contractor) and cost overruns

Design/Build

The Design/Build (D/B) method of project delivery is characterized by a contractual arrangement where the general contractor is retained by the owner to deliver a complete project, inclusive of design services. A budget estimate is provided by the team early in the project, based on preliminary design criteria. The D/B team then develops drawings that fulfill the criteria and complete the design, without exceeding the project budget. Bids are then solicited, and awards made to subcontractors.

Characteristics:

Single point of responsibility for design and construction
D/B team selection is based on qualifications, experience and individual team members
Owner benefits from early construction input during design, budget and planning phases (value-engineering/ constructability review)
Fastest project completion (design and construction activities can overlap)
Contract value can be established early in process
Reduced change-orders
Collaborative teaming approach
Majority of the project is competitively bid

Construction Management

The Construction Management (CM) method of project delivery allows the owner to interview and select a Construction Manager based on qualifications and experience. The Construction Manager and design team work together to develop and estimate the project. Contracts are awarded to subcontractors based on their submitted proposals.

Characteristics:

Selection of Construction Manager based on qualifications, experience and individual team members
Construction Manager can provide design-phase assistance for budget, project planning, and value-engineering analysis
Continuous budget & schedule feedback possible
Faster schedule than D/B/B method (works well with fast-track)
Early establishment of GMP possible
Increased ability to handle changes in design and scope
Fewer changes required once construction begins