CE 472

CONSTRUCTION ENGINEERING & MANAGEMENT

CHAPTER ONE

CONSTRUCTION PROJECTS

PART FOUR

DELIVERY METHODS
 DELIVERY METHODS
 Definition
Project delivery is the process by which all the procedures
and components of designing and building a facility are
organized and put together in an agreement that results in
a completed project.
It determines how the players will interact and
communicate with one another over the course of the
project.
 DELIVERY METHODS
 Project delivery methods
There are basically three project delivery methods.
These methods differ in five fundamental ways:
▪ The number of contracts the owner executes.

▪ The relationship and roles of each party to the contract.

▪ The point at which the contractor gets involved in the project.

▪ The ability to overlap design and construction.

▪ Who warrants the sufficiency of the plans and specifications.

 DELIVERY METHODS
1) Design-Bid-Build
▪ A project delivery method in which the owner holds two
separate contracts, one for design and one for
construction. This method is often referred to as the
traditional project delivery method.
▪ In this arrangement, all dealings between the designer
and the contractor go through the owner.
▪ There is no legal agreement between the designer and
the contractor.
▪ This method is very linear in nature, and the contractor
does not have any input regarding the design of the
project.
▪ The contractor is only responsible for carrying out the
work as spelled out in the plans and specs and will
utilize the various construction management functions to
accomplish this task.
 DELIVERY METHODS
▪ Under the design-bid-build method, the owner warrants
the sufficiency of the plans and specs to the contractor.
▪ If there are gaps between the plans and specs and the
owner’s requirements or any errors and omissions in the
design, the owner is responsible for paying for those
corrections.
 DELIVERY METHODS
2) Construction Management
▪ A project delivery method in which construction management
services are provided to the owner independent of the
construction work itself.
▪ There are two options for the owner to consider under this
method:-
Option #1 Agency CM
▪ It is defined as a construction management option in which
the construction manager acts in the owner’s best interests at
every stage of the project from design through construction.
▪ The construction manager offers advice and project
management services to the owner but is not financially
responsible for the construction.
▪ The construction management firm provides construction
management functions but as an independent agent or
representative of the owner.
 DELIVERY METHODS
▪ This arrangement involves three contracts: one between
the owner and the designer, one between the owner and
the contractor, and one between the owner and the
construction manager.

Option #2 at-risk CM (CM/GC)

▪ It is defined as a construction management option where
the construction manager acts as a consultant to the
owner in the development and design phases but as the
equivalent of a general contractor during the construction
phase.
 DELIVERY METHODS
▪ This arrangement involves two contracts, one between the
owner and designer and one between the owner and the at-
risk CM.

▪ The construction manager, acting on behalf of the owner, can

contribute by providing value engineering, life-cycle cost
analysis, conceptual estimating and scheduling, and what is
called constructability reviews during the design process and
head off possible incompatibilities between design and
construction, which typically result in cost overruns, time
delays, conflicts, and legal claims down the road.
 DELIVERY METHODS
▪ The advantage, the construction manager responsible for
performing the construction and carries financial liability
for bringing the project in on time and within budget.
▪ The disadvantage, under the agency CM model, the
construction manager is not at risk for the budget, the
schedule, or the performance of the work.
 DELIVERY METHODS
3) Design-Build
▪ A project delivery method in which there is only one
contract between the owner and a design-build entity. The
design-builder is responsible for both the design and the
construction of the project. This method is often referred to
as single-source project delivery.
▪ Fast tracking

A practice utilized to speed up a job by overlapping the

design phase and the construction phase of a project. It’s
often applied in design-build or construction management
project delivery.
 DELIVERY METHODS
▪ The design-builder warrants the sufficiency of the plans
and specs to the owner.
▪ The design-builder is liable for any gaps between the
plans and specs and the owner’s requirements for the
performance of the building.
▪ If there are any shortfalls, the design-builder picks up the
tab.
▪ One of the greatest advantages to design-build is the
possibility for early contractor involvement.
▪ Under this method, all of the team players—the
designers, the contractors, the material suppliers, and the
manufacturers—have an opportunity to be in continuous
communication throughout the project.
 DELIVERY METHODS
▪ The design-build entity can be configured in three basic
ways:
a) Designer and contractor partnership
A construction firm and a design firm join forces to go after a
project. One of the two partners takes the lead and actually
enters into a contract with the owner to provide both the
design and construction services.
b) Full-service design-build firm
The design professionals and the construction professionals
work for the same firm under the same roof.
c) Joint venture
o The design firm and the construction firm actually create
a legal entity, the joint venture, for the purpose of carrying
out the design and construction of a specific project.
o Under this arrangement, both parties are at financial risk
for delivering the project.