Project Delivery: A

Comprehensive Guide
Ossian Muscad

Last Updated on April 15, 2024 by

Delivering a project successfully is crucial to the success of any

business. For your project to be successful, you must understand its
delivery and how it works clearly. It might seem like a simple topic,
but proper delivery and turnover of projects are crucial to project
success.

This comprehensive guide will teach you everything you need to

know about project delivery, from the different delivery methods to
the challenges you may face along the way. With this guide, you’ll be
able to turn over your projects confidently and ensure their success!

What is Project Delivery?

Project delivery refers to the process of completing a project from
start to finish. This includes all the steps necessary to complete the
project, from planning and design to implementation and testing. It’s
a complex process that requires careful planning and execution.
There are many different project delivery methods, and the right
method for your project will depend on its nature and your specific
needs.

People Involved in Project Delivery

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 Successful project delivery hinges on the collaboration and
competency of a diverse team of professionals. From project
managers to technical architects, each member plays a pivotal role in
ensuring the project’s aims are met with precision and efficiency. The
project delivery process involves the following key personnel

Project Owner

The Project Owner, often considered the project’s sponsor, is

primarily responsible for initiating and funding the project. This role
involves setting the project’s objectives, determining the overall
scope, and ensuring that the project aligns with the organization’s
strategic goals. The Project Owner is critical in decision-making
processes, particularly in approving project deliverables and
changes within the project scope. They also play a major role in
stakeholder management, keeping all parties informed and engaged
throughout the project lifecycle.

Designer

Designers are tasked with bringing the Project Owner’s vision to life.
They are responsible for creating the project’s design and ensuring
that it meets the owner’s requirements, regulatory standards, and
industry best practices. Designers typically work closely with the
Project Owner and Project Manager to refine the project’s scope and
are integral in the planning and development phase. Their output
includes detailed drawings, specifications, and documents
necessary for the project’s implementation.

Project Manager

The Project Manager is the linchpin of the project delivery process

and is responsible for overseeing and coordinating all project
:
 activities from inception to completion. This role encompasses a
wide range of duties, including project planning, scheduling, budget
management, resource allocation, and quality control. Project
Managers ensure that projects are delivered on time, within budget,
and to the agreed-upon quality standards. They also serve as the
primary communication hub between the project’s various
stakeholders, reporting on progress and navigating any issues that
arise.

Contractor

Contractors are the entities or individuals responsible for executing

the work outlined in the project’s plans and specifications. Their work
involves managing construction activities, procuring materials, and
employing subcontractors to complete specific tasks. Contractors
must ensure that all work is performed to the specifications set out
by the Designer within the constraints of the project’s timeline and
budget. Effective Contractors are skilled in project management
themselves, often employing project managers or site supervisors to
ensure the smooth running of site operations and adherence to
safety standards.

Phases of Project Delivery

Whether it’s a small-scale or a large-scale project, the project
delivery process generally consists of the following phases:

Planning

Every project starts with planning. In this phase, the project team
develops a plan outlining all the tasks that must be completed to
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 achieve the project’s objectives. They also establish a project
schedule, set milestones and deadlines, and determine the
necessary resources. A comprehensive project plan features the
following elements:

Project scope
Goals and objectives
Work plan and structure breakdown
Stakeholder analysis
Schedule plan and management
Reporting and communications structure
Risk assessment and management

Design

After the project plan is approved, the project moves into the design
phase. In this phase, the project team develops the project’s designs
and specifications. The project’s designs are developed in
accordance with the project’s scope and objectives. In some cases,
a project plan can involve a business case that includes the following
aspects:

Estimated timetable and budget

Deliverables (project management, technicals, etc.)
Design specifications (drawings, drafts, exhibits, etc.)

Implementation

Once the project’s designs are approved, the project moves into the
implementation phase. In this phase, the project team carries out the
project’s tasks and activities. First, the project team works to
implement the project according to the project’s designs and
specifications.
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 Construction and monitoring typically take place at this phase. The
contractors will work on the job site to construct the project
according to the project’s designs. The project manager will monitor
the progress and ensure it is on track. Once the project is complete,
the team carries out necessary tests and inspections to ensure that
everything meets quality standards and specifications.

Delivery Close-Out

Project delivery doesn’t end when the project is completed. In fact,

the project only truly ends when the owner and all stakeholders have
accepted the project’s deliverables and are satisfied. The project
team will then hand over the project to the project owner and close
out the project. The delivery close-out phase wraps up all the tasks
and activities related to the project delivery, such as the following:

Accomplishing all administrative requirements.

Performance assessment against the goals and objectives in the
planning phase.
Recordkeeping of the lessons and other essential aspects
learned throughout the process.
Evaluating team performance.

Methods of Project Delivery

There are several methods of project delivery, each with its
advantages and disadvantages. Understanding these methods can
help the project team determine which type of project delivery suits
their project best. The most common methods of project delivery are
as follows:
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 Design-Bid-Build (DBB)

The Design-Bid-Build project delivery method is the most common

project delivery method. In this method, the project owner contracts
with a design firm to develop the project’s designs. Once the designs
are completed, the project owner contracts with a construction
company to build the project. Here’s an overview of the process:

1. The designer crafts the blueprints and detailed specifications in

alignment with the owner’s objectives and vision. This step
ensures that the project’s conceptual ideas are translated into
detailed, actionable plans that can guide the construction phase
accurately and efficiently.
2. After finalizing the design, the project enters the bidding phase.
General contractors present their proposals, enabling the owner
to choose the most advantageous bid from the pool. This
competitive process aims to find a balance between cost,
quality, and the contractor’s capability to deliver on the project’s
requirements.
3. The chosen contractor begins work on the project. With the
contract awarded, the construction phase begins. The
contractor, leveraging their expertise and resources, manages
the construction site, procures materials, and coordinates with
subcontractors to ensure the project is built according to the
agreed-upon specifications, timeline, and budget.

Pros of Design-Bid-Build (DBB)

Clear Project Phases: The DBB method offers a

straightforward project timeline with distinct phases (design,
bid, build), making it easier for project owners to understand
and monitor.
Competitive Bidding: Separating the design and construction
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 contracts allows for competitive bidding on the construction
part, potentially lowering costs.
Simplified Design Changes: As the design and construction
phases are distinct, changes in design are easier to manage and
approve before the construction phase begins.

Cons of Design-Bid-Build (DBB)

Time-Consuming: The sequential nature of DBB can lead to a

longer project timeline, as each phase must be completed
before the next one begins.
Potential for Increased Costs Due to Changes: Any changes
after the bidding phase can result in costly amendments to
contracts and delays in project timelines.
Lack of Contractor Input During Design Phase: The
contractor’s absence during the design phase may result in a
disconnect between design and practical implementation,
potentially leading to issues during construction.

Best for

The Design-Bid-Build method is best suited for projects where the

scope and specifications are well-defined before the bidding
process begins. It is particularly effective for straightforward projects
without the need for complex, specialized construction techniques.
Projects that can benefit from competitive bidding to lower costs and
where the project owner desires a high degree of control over each
phase will find DBB an advantageous approach.

Design-Build (DB)

The Design-Build project delivery method, where a single entity is

responsible for both designing and constructing a project, is gaining
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 traction across various industries. This approach simplifies the
project owner’s responsibilities by providing them with a single point
of contact, potentially reducing the project timeline and overall costs.
It fosters a collaborative environment between the design and
construction teams, leading to more innovative solutions and
efficient problem-solving during the project lifecycle.

This method contrasts with the traditional design-bid-build

approach, where design and construction services are split between
separate entities, often leading to increased complexity and possible
conflicts. As such, the design-build method is becoming a preferred
choice for project owners seeking streamlined, effective project
delivery.

Pros of Design-Build (DB)

Streamlined Process: The integration of design and

construction services streamlines project delivery, enabling
faster completion times by overlapping the design and
construction phases.
Single Point of Responsibility: Having a single entity
responsible for both design and construction simplifies
communication and decision-making, reducing the likelihood of
disputes and miscommunications between separate design and
construction teams.
Cost and Time Efficiency: The collaborative nature of the
design-build approach can lead to cost savings through more
accurate budgeting during the design phase and reduced
administrative burden. Additionally, potential issues can be
identified and addressed earlier, preventing costly delays and
modifications during construction.

Cons of Design-Build (DB)

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 Limited Competitive Bidding: The bundled approach of design
and construction limits the owner’s ability to compare different
design proposals, potentially leading to less competitive pricing
for the project.
Reduced Owner Control: The project owner may have less
control over the design details, as the design-build firm handles
both design and construction. This can be a disadvantage for
owners who wish to be closely involved in design decisions.
Potential for Design Compromise: In the interest of ensuring
constructability or staying within budget, there is a risk that the
design aspect might be compromised or not as innovative,
especially if cost-cutting measures dominate the project’s
execution.

Best for

The Design-Build method is particularly suited for projects requiring

fast-track construction or those with a tight schedule, as it can
significantly reduce project delivery time. It is also beneficial for
projects where the owner is looking for a turnkey solution with
minimal involvement in the day-to-day management of the design
and construction process. This approach is ideal for owners who
prioritize the ease of having a single point of contact over having
control over every detail of the design and construction phases.

Construction Management at Risk (CMAR)

The Construction Management at Risk project delivery method is

similar to the Design-Bid-Build method. In this method, the project
owner contracts with a construction management firm to provide
preconstruction services. Once the project’s designs are completed,
the construction management firm contracts with a construction
company to build the project. In this approach, the owner supplies
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 the initial design and delegates the management responsibilities to
the Construction Manager (CM). From this point forward, the CM will
oversee the remaining process:

Consulting Designers for Their Design Plans: The CM works

closely with designers to ensure the project’s design aligns with
the owner’s vision and project requirements.
Creating the Process Timeline: Developing a comprehensive
timeline that outlines all critical milestones and deadlines for the
project to ensure timely completion.
Calculating the Greatest Maximum Price (GMP): The CM
calculates the GMP, which represents the total cost ceiling for
the project, including costs for labor, materials, and additional
expenses.
Tracking the Budget and Not Exceeding the GMP: The CM
monitors the project’s financial health, ensuring that all
expenses stay within the predetermined GMP.
Selecting Contractors That Meet the Owner’s Needs: The
CM chooses contractors based on their expertise, reliability, and
ability to meet the project’s specifications and quality standards.
Overseeing the Quality of Work During Construction: The
CM supervises construction to ensure that all work meets or
exceeds the quality expectations and complies with the
project’s design.
Coordinating Any Changes Required by the Owner: The CM
serves as the primary point of contact for any design or
construction changes requested by the owner, managing the
necessary adjustments efficiently to minimize impact on the
project timeline and budget.

Pros of Design-Bid-Build (DBB)

Clear Separation of Design and Construction: DBB allows for

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 a distinct separation between the design phase and the
construction phase, providing the owner with full visibility and
control over the design before any construction begins.
Competitive Bidding: This method allows for competitive
bidding during the construction phase, which can lower
construction costs as contractors bid for the project.
Increased Owner Control: The owner plays a more significant
role in selecting both the designer and the contractor, providing
them with greater control over the project’s design and
construction quality.

Cons of Design-Bid-Build (DBB)

Lengthy Process: The sequential phases can lead to longer

project durations since construction cannot begin until the
design is fully completed and a contractor is selected.
Potential for Increased Costs and Conflicts: Changes or
discrepancies in the project’s design during the construction
phase can lead to costly modifications and potential conflicts
between the designer and contractor.
Less Flexibility: Once the construction contract is awarded,
making changes to the design can be difficult and expensive, as
changes may require renegotiating contracts and can result in
delays and additional costs.

Best for

The Design-Bid-Build process is best suited for projects where the

owner wishes to have complete control over the design and a clear
understanding of the project’s specifications before any construction
begins. It is ideal for projects with a less urgent timeline and for
owners who value the ability to thoroughly assess and refine the
project’s design and specifications through a competitive bid
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 process. This method allows owners to separate the design and
construction contracts, providing an opportunity to select the best
candidates for both roles based on their specific requirements and
qualifications.

Integrated Project Delivery (IPD)

The Integrated project delivery method is a relatively new method. In

this method, the project owner contracts with a design-build firm to
develop the project’s designs and build the project. However, in this
method, the project team members work together from the
beginning of the project to the end.

Pros of Integrated Project Delivery (IPD)

Collaborative Process: IPD facilitates a highly collaborative

environment where all stakeholders (owner, designer,
contractor) work together from the project’s inception to its
completion. This integrated approach fosters innovation,
efficiency, and a shared responsibility for the project’s success.
Enhanced Communication: The IPD method ensures that
communication lines are always open among all parties involved,
reducing the likelihood of misunderstandings and errors. This
continuous dialogue helps in making informed decisions quickly
and effectively.
Cost and Time Savings: By involving all key participants early
in the process, IPD can lead to significant cost and time savings.
The collaborative effort helps identify and solve problems early,
reducing the need for changes and rework during later stages.
Shared Risk and Reward: IPD often involves shared risk and
reward contracts, which align the interests of all parties towards
the project’s objectives. This model encourages all members to
focus on achieving the best outcomes as efficiently as possible.
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 Cons of Integrated Project Delivery (IPD)

Complexity in Contracts: The contractual agreements in IPD

can be complex, requiring clear definitions of roles and
responsibilities and sharing of risk and reward. This complexity
necessitates thorough understanding and careful negotiation by
all parties.
Requires High Level of Trust: The success of an IPD project
largely depends on the mutual trust among its participants.
Building and maintaining this level of trust requires effort and
time, and it may be challenging if parties have not previously
worked together.
Limited Flexibility for Owner: The owner commits to the team
and the project’s path early in the process, which can limit their
ability to make significant changes as the project progresses
without impacting the project’s dynamics and potentially
incurring additional costs.

Best for

Integrated Project Delivery is best suited for complex projects where

collaboration between the design and construction teams can bring
added value, reducing errors and aligning goals from the start. It’s
ideal for owners who are willing to be actively involved in the process
and prefer a more holistic approach to project delivery, focusing on
outcomes rather than just the bottom line. IPD is particularly
beneficial for projects with innovative or unique elements, requiring
close collaboration to solve challenges creatively. This approach is
also fitting for projects where time and cost savings are a priority,
and the owner is ready to share risks and rewards with their project
partners.

Build-Operate-Transfer (BOT)
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 The Build-Operate-Transfer (BOT) project delivery method is a form
of public-private partnership that allows for the efficient execution
and management of large-scale infrastructure projects. In this
method, a private entity or consortium is responsible for financing,
constructing, and then operating a facility for a specified period.

This period is often long enough to allow the private party to recoup
its investment, plus a reasonable profit, through the operation of the
project. After this time, ownership of the project is transferred to the
public sector, usually at no cost.

BOT arrangements are commonly used in sectors such as

transportation (e.g., roads, bridges, tunnels) and public utilities (e.g.,
water treatment plants, power plants). This model incentivizes the
private sector to complete projects on time and within budget while
also ensuring that the facility is well maintained and efficiently
operated throughout the contract, ultimately benefiting the public.

Pros of Build-Operate-Transfer (BOT)

Incentivizes Efficiency: BOT projects incentivize the private

sector to design, build, and operate projects efficiently, as their
return on investment is directly linked to the project’s success.
Access to Private Sector Capital: This allows government
entities to undertake large-scale infrastructure projects without
the immediate need for public funds, thereby alleviating the
state’s financial burden.
Risk Transfer: This involves transferring the risks associated
with the design, construction, and operation of the facility to the
private sector, which is often better equipped to manage these
risks.
Quality and Innovation: The private sector’s involvement can
lead to higher-quality and more innovative solutions in project
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 design and operation due to the competitive nature of the
procurement process and the drive for efficiency to maximize
returns.

Cons of Build-Operate-Transfer (BOT)

Complex Contract Negotiations: BOT projects require

complex and time-consuming negotiations to establish clear
and mutually beneficial terms, which can delay project initiation.
Potential for Higher Costs to Consumers: Since private
entities aim to recoup their investments with a profit, there is a
risk that the cost to consumers, particularly in utility projects,
will be higher than if the project were financed publicly.
Political and Economic Risks: Changes in government,
regulations, or economic conditions can impact long-term BOT
projects, potentially leading to disputes or the need for contract
renegotiations.
Limited Public Control: The government may have limited
control over the operation and maintenance of the project
during the contract period, which can lead to concerns about
service quality and availability.

Best for

The Build-Operate-Transfer (BOT) model is best suited for large-

scale infrastructure projects where upfront capital investments are
significant and operational expertise is critical for the project’s long-
term success. It is ideal for governments looking to leverage private
sector efficiency and innovation without initially bearing the full
financial burden. BOT is particularly useful in sectors where
infrastructure can be operated profitably over time, such as toll
roads, bridges, tunnels, and utility services. This model works well in
environments where there is political and economic stability,
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 ensuring that the long-term nature of BOT agreements can be
sustained without significant risk of disruption.

Which Method is Right for Your Project?

Choosing the right project delivery method is crucial to the success
of your project. Your method will determine how your project is
designed, built, and operated. Therefore, you should choose a
project delivery method best suited to your project’s needs.

The project manager will work with the project owner to determine
the best project delivery method for the project. The project
manager will consider the following factors:

The nature of the project

The project’s goals and objectives
The project’s budget
The project’s timeline
The skills and experience of the team
The project’s risks
The project’s complexity
The owner’s preferences and needs
The availability of resources
The project’s stakeholder engagement strategies

After considering these factors, the project manager and owner will
choose the best method for the project. The project manager will
ensure that the project is on time, within budget, and on par with
quality standards. In addition, the project manager will use their
knowledge of project management to plan, execute, and deliver the
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 project.

The project team will work together to design, build, and operate the
project. They will use their skills and experience to achieve the
project’s goals and objectives. The project owner is responsible for
ensuring that the project meets its needs. In addition, the project
owner will work with the project manager and project team to
achieve the project’s goals and objectives.

Frequently Asked Questions (FAQs)

Q1: What are the key differences between the BOT
method and the PPP model?

The BOT method is a form of PPP, but it specifically involves private

entities financing, building, and operating a project before
transferring it back to the public sector. Conversely, PPPs can involve
various arrangements that may not necessarily include the transfer
of ownership to the public sector after a set period.

Q2: How is the risk allocation determined in BOT

projects?

Risk allocation in BOT projects is typically determined during the

contractual negotiation phase. The goal is to allocate each risk to the
party best equipped to manage it, ensuring efficiency and project
viability. For example, construction risks are often borne by the
private entity, while the public sector may retain regulatory or
environmental risks.

Q3: Can BOT projects be refinanced or renegotiated

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 during their operation phase?

Yes, BOT projects can be refinanced or renegotiated, especially if

there are significant changes in project scope, unforeseen risks, or
shifts in economic conditions. Such adjustments require the
agreement of all stakeholders and are usually aimed at ensuring the
project’s continued viability and mutual benefit.

Q4: What strategies are employed to ensure the

project meets its public service obligations during
the operation phase?

Typically, performance benchmarks, regular monitoring, and

penalties for non-compliance are built into the contract. These
mechanisms ensure that the private entity maintains the quality of
service required by the public sector agreement, thus safeguarding
public interests.

Q5: How do governments ensure they are getting

the best value from a BOT project?

Governments employ several strategies to ensure value for money,

including competitive bidding processes, comprehensive project due
diligence, and engaging independent advisors to evaluate bids.
Additionally, clear contract terms, including performance metrics and
penalties, are essential for holding the private sector accountable.

Q6: What happens if a BOT project fails or the

private entity goes bankrupt?

In the event of bankruptcy or project failure, the contract usually

includes pre-defined mechanisms that dictate the course of action.
Often, the project may be taken over by the government or tendered
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 to a new private entity. Insurance and guarantees may also be in
place to protect the public sector’s interests and ensure project
continuity.

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Conclusion
Never take project delivery lightly. You should have a clear
understanding of project delivery before starting any project. The
choice of a project delivery method can significantly impact the
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 success and efficiency of your project, affecting everything from
timeline and budget to overall project quality. It’s crucial to weigh the
pros and cons of each delivery method, taking into account the
specific requirements and challenges of your project. Remember, the
right foundation and approach can make the difference between a
project’s success and failure.

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