A construction project delivery method is a system used by an agency or owner for

organizing and financing design, construction, operations, and maintenance services for
a structure or facility by entering into legal agreements with one or more entities or
parties.

Design Bid build

- Traditional & most common approach
- Agency or owner contracts with separate entities for the design and construction
of a project.
- The architect is selected under a contract that is based on a negotiated
professional fee.
- The construction firm is most often selected based on the lowest bid, and there
may be many subcontractors under his contract/direction.

- Advantages:
o Design team looks out for the best interest of the owner/agency
o Design team prepares documents which contractors place bids. “Cheaper
the better” is invalid since the bids are based on complete documents.
o Assists the owner in establishing reasonable prices for the project

- Disadvantages:
o In lean times, the desire for work usually forces the low bidder of each
trade to be selected. This usually results in increased risk (for the general
contractor) but can also compromise the quality of construction.
o Contractor has no input for effective design alternatives
o Pressures may be exerted on the design and construction teams due to
competing interests (e.g., economy versus acceptable quality), which may
lead to disputes between the architect and the general contractor, and
associated delays in construction.
 Design Build
- Popular configuration for delivery in united states until 2025. Design-build will
likely act as the delivery method for 47% of all project
- This model is suitable for projects in which creativity is not necessarily a priority,
and the general contractor agrees to hold more liability for the project
- The method requires exorbitant levels of collaboration between the various
disciplines, input from multiple trades into the design, and a single party bearing
project risk

- Advantages:
o Minimizes Owner Risk. Owners chose design-build to reduce their risk.
o Design-build projects save in cost compared to traditional design-bid-build
and CMR.
o Design-build projects complete faster. The ability to effectively fast-track
projects is one key reason Owners use design-build.

- Disadvantages:
o No bidding process the project owner does not have the ability to select
their own price. As a result, the prices tend to be higher. Plus, most
design-builders will not begin any detailed design of a building until they
have been officially hired, making it hard to price shop for a design-builder.
o As a whole, the project owner will be less involved with the project than
they would be with traditional project delivery. Initially, the project owner
will be heavily included with designing and planning.
 Integrated project delivery
- In integrated project delivery, collaboration leads the way. The owner, contractor,
and architect/designer share responsibility and liability
- Like design-build, the design and construction are united in one contract. The
goal of IPD projects is a concentrated effort to increase productivity and
cooperation.
- The typical IPD project contains four phases: Conceptualization: All project
participants are chosen and make suggestions; Design: Goals are discussed with
consideration of waste reduction and efficiency; Implementation: Computer
modeling is used to predict outcomes; Construction: Physical building begins

- Advantages:
o Participants bound together in one multi-party contract
o Shared financial risk and reward based on project outcomes
o Liability waivers among the parties
o Collaborative decision making
- Disadvantages:
o Mutual respect and trust
o Willingness to participate and collaborate
o Open communication
o Selection of team members should be carefully considered to ensure
mutual respect and trust
 Construc2on Management at risk (CMAR)
- This delivery format is flexible and looks at the design and construction process
as individual blocks or elements.
- Elements include part of the building process that aren’t usually discussed in
more traditional methods. These involve: Financing, Planning, Schedule,
Milestones, Design, Analysis of cash flow, Construction.
- A construction management firm, not the designer, acts as the owner’s
consultant before the design is finalized and construction begins.
- Advantages:
o Builder input at all phases, to provide input regarding materials, methods,
scope of project, etc.
o Cost and schedule guaranteed.
o Bid process for materials and subcontractors is transparent, so the owner
is able to know who and what materials are being used in all aspects
- Disadvantages:
o Once construction begins, all control passes to the Construction Manager
from the owner.
o Owner bears responsibility for changes

Multi-Prime Construction Management (MP)

- The owner fills the role of the general contractor, which means that this probably
isn’t a good choice for owners without a great deal of knowledge in the field of
construction
- At the same time, the owner can oversee all costs and therefore keep an eye on
safety gaps or potential inefficiencies.

Build Operate Transfer (BOT)

- A type of arrangement in which the private sector builds an infrastructure project,
operates it and eventually transfers ownership of the project to the government or
a joint venture partner.
- In many instances, the government or a joint venture partner becomes the firm's
only customer and promises to purchase at least a predetermined amount of the
project's output. This ensures that the firm recoups its initial investment in a
reasonable time span.

Build Own Operate Transfer (BOOT)

- Financing arrangement in which a developer designs and builds a complete
project or facility (such as an airport, power plant, seaport) at little or no cost to
the government or a joint venture partner, owns and operates the facility as a
business for a specified period (usually 10 to 30 years) after which transfers it to
the government or partner at a previously agreed-upon or market-price.
 Design Build Finance Operate (DBFO)
- Very similar to BOOT except that there is no actual ownership transfer.
- A single contractor (with design, construction and facilities management
expertise as well as funding capability) is appointed to design and build the
project and then to operate it for a period of time.
- The contractor finances the project and leases it to the client for an agreed period
(perhaps 30 years) after which the development reverts to the client.

Design Build Operate and Transfer (DBOT)

- DBOT is a more flexible approach designed to eliminate the large elements of
risk connected with outsourcing projects and provide a more convenient offering
for companies seeking to outsource their customer-facing functions.
- Customized to the needs of the client, the BOT model gives companies a greater
degree of control over their outsourcing partnership.

Build Lease Transfer (BLT)

- Financing arrangement in which a developer designs, finances and builds a
facility on leased public or joint venture partner's land.
- The private partner recovers its investment through payments made by the
government or joint venture partner.
- Ownership of the facility is transferred to the government or VP upon completion
of construction, and the concessionaire is granted the right to operate the facility
and receive government or VP's payments (lease payment plus operational cost)
based on its operational performance for a specified period of time.

Design Construct Manage Finance (DCMF)

- A private entity is built to design, construct, manage, and finance a facility, based
on the specifications of the government.
- Project cash flows result from the government's payment for the rent of the
facility.
- In the case of the hospitals/prisons, the government has the ownership over the
facility and has the price and quality control. The same financial model could be
applied on other projects such as prisons

Roles of Project Manager (PM)

- • The project manager (PM) is in overall charge of the project, responsible for the
rate of progress, financial control, safety, and ultimate profitability of the job. The
PM is the superintendent’s supervisor and is the person responsible for ensuring
the superintendent has the materials, supplies, equipment, labor, and
subcontractors available when they are needed. Project managers select
 equipment needed on the site, they negotiate the subcontracts, they submit the
progress and financial reports to the company; they are responsible for all
communications with the owner.

Roles of Project Superintendent

- The primary functions of a Superintendent are to coordinate the fieldwork and
supervise the trade foremen. They submit weekly cost reports to be used in the
control of the job costs. They work with the project schedules every day. They
inform the project manager when a change order is required, and what the
change order must accomplish. They are the planner of next week’s activities,
referee of subcontractor conflicts, and controller of the site layout. At the working
level, they are in charge. They set the standard for performance

Roles of Project Engineer

- A project engineer will be assigned responsibility for such documents as daily
reports, progress reports, concrete quantity calculations, RFI’s, and shop
drawings

Roles of Construction Manager (CM)

- A construction manager (CM) contract creates another dimension in owner-
contractor relations. The CM is now the owner's agent and consultant in matters
related to construction. Because of that relationship, the documentation takes on
a different perspective.
- The CM's daily activities as the owner's agent will require the CM to prepare
reports, schedules, and various cost and estimate analyses, recommendations
pertaining to contract awards, general contractor and subcontractor requests for
extras, and interrelationships with the architect and engineer, so correspondence
that would have previously been transmitted by the general contractor to the
architect/owner will then flow instead from the CM.