Construction Engineering

CE-326

Dr. Salamat Ullah

Associate Professor
Civil Engineering Department

Abasyn University, Islamabad

 LECTURE-2

PROJECT DELIVERY METHODS

(PDM)
 Background
Before launching a construction job, a company should set
course by exploring project delivery methods and
selecting one that best meets its unique needs. No one
model is perfect; all have benefits and drawbacks.
However, there’s most likely an optimal delivery method
for your company or project. By choosing the right one for
your project, overall risk can be reduced, and budget and
schedule can be better managed.
 CONT.
Many methods of project delivery exist, but most are
variations of the five models we’ll describe. But first, we’ll
dive deep into the selection factors you should consider
to make an informed decision about your project delivery
method.
 Introduction
A 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.
 Introduction (continued)
Project delivery method describes
 How the participants are organized to
interact, transforming the owner’s project
goals and objectives into a finished facility.
 Factors to Consider Before
Selecting a PDM
Before selecting a project delivery method, one
probably will have a basic understanding of why and
what you are building. However, having a firm
understanding of the foundations of your project before
selecting a delivery method will aid your final decision.
Factors to Consider Before Selecting a
PDM
In general, start comparing the criteria that are most important
to your project’s success:

 Budget: how much to spend

 Design: what the final project will look like and how it will
function
 Risks: exposure to danger, financial loss and harm to the
brand
 Schedule: a timetable for completion and payments
 Owner Expertise: company’s experience in similar projects
 Budget
Set budget as soon as possible, then discuss it with
potential design and construction team members to
learn whether the figure is realistic. During this process,
consider how much wiggle room is available for change
orders, most likely an inevitable occurrence once a
project is underway and can be costly if not well
planned.
 Design
You might have a basic idea of how your project will
look, but it’s important to visualize both the general
design and functionality of your building. How do you
want your campus and floor plan? Are you looking for
innovative designs and complex over form and function?
Buildability will depend, in part, on the kind of design and
construction team you choose. Also, think about unique
features of your construction site, including existing
landscaping and the overall look of adjacent properties.
 Risks
Too many construction risks can result in increased costs and
even project failure. Therefore, a thorough risk evaluation
should be conducted before a project begins. One key
question to answer regarding risk concerns is who will be
liable for design problems that result in dangers during and
beyond construction?
Additionally, if you’re considering a project delivery method in
which your in-house team will be heavily involved in
administering the project, consider your responsibility for
reducing gaps in construction services and stages.
 Schedule
Accurately estimating a construction schedule is crucial for
project performance. Keep in mind that schedule and cost are
closely tied to each other. What kind of timing is necessary to
meet your expected schedule and costs? Sometimes owners
require the ability to fast-track construction before all drawings
and support plans, such as engineering documents, are
complete.
 Owner Expertise

Finally, consider your company’s level of familiarity with

construction, especially a project similar regarding
scope and size, as well as how many staff members
are capable of helping to oversee the process. Be
aware that some construction delays are caused by
bottlenecks at the owner level. Ensuring that the project
has the right amount of personnel, in addition to having
the expertise, will set the project up for smooth sailing
and success.
 Basic Project Delivery Methods in
Construction
Now that you have prioritized and evaluated your
selection criteria let’s explore the most common types of
project delivery methods. The main participants in a
construction project are the owner, the architect and
designers and the contractor. Depending on the delivery
method you choose, these roles may overlap a bit.
 Design-Bid-Build (DBB)
This project delivery method is the “traditional” means
of delivering a construction project, and creates a
clear separation between the design and construction
process. Typically the only criteria for selection of a
contractor in design-bid-build (DBB) projects are the
lowest construction price. To begin the DBB process,
an architect or engineer (A/E) is hired by an owner to
create design documents (drawings and technical
specifications) for a project. In addition, the A/E will
usually develop a project cost estimate and schedule.
 Design-Bid-Build (DBB)
Once the design documents are completed, a Request
for Bids (sometimes called a Request for Proposal) is
created a released to contractors. Contractors will then
evaluate the project documents and provide a price for
the work. The A/E is responsible for answering bidder
questions and for assisting the owner in evaluating the
received bids. Once a bid is selected, the owner
establishes a contract with the chosen contractor and
work begins on the project.
In general, the DBB process is best used on projects
that are simple, that are not under a tight time crunch
and that have a limited budget.
 Design-Bid-Build (DBB)
Benefits:
Design-bid-build is the most familiar and widely used
project delivery method. Generally, it is also the lowest in
price. It offers owners plenty of opportunities to providing
input about building appearance and function because
the designer/architect works directly with the owner. The
General Contractor (GC) also works directly for the
owner.
 Design-Bid-Build (DBB)
Drawbacks:
Due to the architect and GC not collaborating during the
design phase, there may be little collaboration with the GC
about materials and construction techniques called out in
drawings. This can slow the construction process or create the
need for change orders. Furthermore, since the owner
approves the designer’s drawings, consequently they bear the
liability for any misalignment of plans and construction
specifications.
Another drawback of DBB is that the project duration tends to
be longer due to the “in-series” nature of the delivery method.
 Design-Build (DB)
In a design-build project, the owner hires a company or team
under one contract to deliver the construction project from
start to finish. Since the team is responsible for both the
design and the construction components, pricing changes are
kept to a minimum, and are usually isolated only to those
instances where unknown conditions or owner requests
necessitate cost increases. If DB entities are comprised of
more than one company, it is important for the owner to
identify the working relationship between the members of a
potentially selected team in order to minimize conflicts further
down the road.
 Design-Build (DB)
The DB method provides the ability to deliver a project on
a tight schedule, as projects can be split up and delivered
in a package approach, where individual components are
designed and built as needed to achieve the final
completion date. Generally the owner can establish a
firm maximum price of the project early on, and has a
significant amount of cost control.

Design build is typically used for construction projects

where the owner has clearly established the
requirements prior to design. It can also be an
appropriate method when schedule is a concern.
 Design-Build (DB)
Benefits:
When using design-build, firms have to meet the performance
requirements specified in the owner’s contract. Therefore, the
intensive collaboration of the designer and builder in one firm
results in fewer change orders and litigation–saving costs.
Furthermore, project delivery tends to be faster when using
this method. Design changes can be examined and executed
faster in this type of delivery method.
 Design-Build (DB)
Drawbacks:
In DB, owners give up a lot of their control over designs and
have to be willing to let contractors make most of the
decisions. Also, although they are not responsible for
examining architectural drawings in this delivery method,
owners have to do their homework about selecting the right
firm to execute the job and then form a detailed contract
specifying performance expectations. If not, owners will not
have as much confidence in the final construction cost due to
the evolving design during construction.
Construction Management at Risk (CMAR)

CMAR stands for Construction Manager at Risk, and is a

relatively new type of project delivery method. In a CMAR
project, the owner selects a “Construction Manager” (CM)
who is responsible for building the project. The selection
of the CM is made using criteria in addition to the
construction cost, such as quality, detailed project
approach and ability to meet the schedule of the project.
In this delivery method the design work and construction
work are contracted separately.
 CMAR
The selected CM becomes a project team member early on
in the project process and, working directly with the owner
and the A/E, provides input as the project moves through
design into construction. The CM provides input on items
such as project budget, construction cost estimating and
the overall schedule as well as providing review of design
drawings to identify constructability issues and potential
cost savings. Typically the pricing of the construction is
begun early in the design process, and is refined as the
design progresses with a final guaranteed maximum price
(GMP) provided to the owner prior to beginning of
construction.
 CMAR
The CMAR process is most successful in projects that
have a large undefined scope and are under pressure to
finish in a limited time. This process may also be
applicable to some projects that involve complex
integration between disciplines or multiple phases of
construction, where the oversight and coordination
delivered by a construction manager is extremely
beneficial.
 CMAR

Benefits:
Similar to DBB projects, owners who choose CMR work
directly with their designers. They also have access to the
builder’s perspective from the outset. If done correctly, this
helps lead to earlier awareness of costs and faster project
delivery. Overall, owners get to lock in on a final construction
cost earlier in the process, and subsequent changes can be
clearly quantified and priced.
 CMAR
Drawbacks:
In CMR, the owner is still liable for completeness, accuracy
and details of the design plans. Disagreements with either
the designer or the CMR manager can lead to schedule
delays, increased costs and litigation.
 Integrated Project Delivery (IPD)
Integrated project delivery is relatively new delivery method. In
this delivery method the owner selects an A/E and CM prior to
the kickoff of project design. A joint contract is signed between
the three entities after goals and objectives are established
collaboratively. This delivery method incorporates early
participation from the contractor, which can lead to a
streamlined design that is directed specifically towards a
project objectives. Similar to the CMAR process, the owner
must remain highly involved in the project as a crucial member
of the project team. Integrated project delivery provides
opportunities for minimizing project costs and increasing
efficiency through cooperation of the team members.
 Integrated Project Delivery (IPD)
It is important to note that the owner, A/E, and CM are legally
bound into a single entity so risk that is normally assigned to
one party is now spread to all parties.
IPD is best suited for projects in the private sector that are
complex, under a tight schedule or may be largely undefined.
 Integrated Project Delivery (IPD)
Benefit:
If organized efficiently, all contracted participants in this
process are available to an owner before a construction project
breaks ground. IPD is one of the best ways to increase the
transparency throughout the construction process. Because of
the early stakeholder contracts and discussion, it’s clear to
what the objectives are.
 Integrated Project Delivery(IPD)
Drawbacks:
Using IPD won't automatically make team members trust each
other. You still need to work on developing good relationships
between contractors, owners, architects and engineers.
Otherwise, you may find your project slipping back into
traditional methods of project delivery.
 Multi-Prime (MP)  
In multi-prime, the project is divided into three phases–
design, engineering and construction. When implementing
MP, the owner forms separate contracts with the
professionals heading the separate stages of the project. For
example, one contract likely would include the architecture
firm and its subcontractors for engineering and interior
design. The owner would establish other contracts with the
GC and trade contractors, such as plumbers and electricians.
Each of these categories of contractors may oversee the
work of subcontractors, such as a GC who manages
carpenters and framers. Altogether, the main contractors are
the “primes.”
 Multi-Prime (MP)
Benefit:
With MP, owners who are experienced with the design
and construction process gain greater control over their
projects. MP may be the only choice for public sector
projects in some states that require maximum control of
contractors at all levels.
 Multi-Prime (MP)
Drawbacks:
It’s tough being your own general contractor, but that’s
what MP requires. Coordination of all the prime contractors
makes it difficult to determine final cost until a project
concludes. Additionally, poor coordination or
communication with so many providers may create
duplication and omission on orders. Finally, in this model,
it’s difficult to direct contractors’ schedules.
Thanks