Question

3. List the eight different construction delivery methods. (200 pts) a. What make each type of delivery method unique? b. When is each method best utilized? c. How are risks distributed with each method? d. Describe the payment terms for each? e. How does each method compare to the other method?

Answer 1

Answer :-

There are different construction delivery methods :-

1. Design bid build (DBB)
2. Construction management multi - prime (CM - MP)
3. Construction management at Risk (CM @ Risk)
4. Design build (DB)
5. Integrated project delivery
6. Public - private - Partnership

1. Design Bid Build (DBB) :-

• DBB is the most familiar and widely used project delivery method. Also one of the traditional methods.
• This method is lowest in price. (Low cost).
• During the design and planning phases, the owner can expect two contracts: one for design and one for construction.
• It offers owner plenty of opportunities as the designer/architect works directly with the owner. The GC also works directly for the owner.
• The GC is responsible for following the designer’s plans.
• The project duration tends to be longer due to the “in-series” nature of the delivery method.
• SOME OTHER DISADVANTAGES ARE :-
• Final cost changes: Owner responsible
• Most litigious
• Contractor has no input to project.

2. Construction Management Multi - Prime :-

• ​​​ Many contracts (Architect, Contractor, Subcontractors)
• Linear design
• CM is selected on qualifications.
• The project is divided into three phases–design, engineering and construction.
• SOME DISADVANTAGES ARE :-
  • 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.

3. Construction Management At Risk (CM @ RISK) :-

• ​​​​​​Two contracts (Architect & Contractor)
• CM is selected on qualifications and fees
• Some construction risks are transferred to GC
• Similar to CM Multi-Prime for selection and management of the work
• Open book on costs (subcontractor and supplier payments) and procurement process Flexibility to price the project s
• Subcontracts are re-assigned to the CM
• Bonding can be for the entire scope of the work (GC and subcontractors)
• Risks can push the CM not to act as the agent of the Owner
• Primary reason to choose :-
  • Retain control of design.
  • Contractor involved early.
  • Flexibility to price the project.
• DISADVANTAGES :-
  • Owner responsible for changes
  • Owner's qualification based selection of CM
  • Architect me not take input from CM during design.

4. Design Build (DB):-

• Single point of contact/responsibility
• Often is the fastest delivery
• Most cost effective
• Need a well defined scope.
• Need for timely decisions
• Most effectively administor design build process.
• BENEFITS TO THE OWNER :-
  • OWNER RETAINS CONTROL OF DESIGN.
  • Construction input occurs during the design process.
  • Overlaps and gaps In scope are indentified during pre- construction.
  • Cost benefit of procuring the construction directly from the trades.
  • There are no make-up on subcontractor or on changes.
  • Improved schedule due to early resolution of design and construction issues
  • CM as owner's representative manages the construction in the owner's best interest.
• DISADVANTAGES :-
  • Owner responsible for changes, overlaps and gaps in scope
  • Exposure to CM’s lack of proper oversight
  • Subcontractors may be brought into project late in the process
  • Need up-front program & performance criteria Owner Contractor
  • Owner needs to manage decisions on quality
  • Owner is pushed for early decisions.

5. INTEGRATED PROJECT DELIVERY (IPD) :-

• It is the most up-and-coming delivery method in construction with an emphasis on teamwork and collaboration.
• The primary goal of the integrated method is to spread liability, responsibility and risk (and rewards) among the stakeholders in a construction job.
• Under IPD, the owner, designer and general contractor are all under one contract.
• ADVANTAGES OF IPD :-
  • Architect and contractor are one entity (single point of responsibility)
  • Experts In design and construction contribute to ALL phases of the project
  • Owner can tailor the best of CM-Multi-Prime, CM@Risk and Design-Build
  • Allows for reduction of costs by eliminating redundant efforts.

6. Public Private Partnership (PPP) :-

• The P3 model involves a contract established between a government entity and a private corporation to fund, construct/renovate, and usually operate and maintain, public infrastructure.

• Some of the benefits of P3 are:

  • Taxpayers are relieved of some or all of the burden related to project funding
  • Private entities are typically seen to provide greater expertise and efficiency in construction and operation than the public sector (as there is profit motivation)
  • The public entity can still provide regulation over the operation of the infrastructure to help maintain proper operation

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