Know the Difference: Project Delivery Methods

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Project Delivery Methods

• Design-bid-build
– Negotiated team

• Construction management

– CM as Advisor, CM as Agent

– CM as Constructor

• Design-build

– Design-build as Developer

• Bridging

Entities –

Principal/Owner, Agent, 3rd Party/Prime. Others – Advisor, Subs, Consultants

Multiple Prime – owner w/ subs (as primes, each contracted to owner)

Many Prime – owner w/ many contractors (primes ea. contracted to owner, ea. w/ their own subs, usually for fast-track overlap)

Fast-track – non-linear. Traditional – linear

SLOW

Design-Award-Build

-Traditional – Contractor awarded after dwgs. done, usually Fixed Fee aka Stipulated/Lump Sum, not time sensitive

Design-Bid-Build – Competitive Bidding (Gov.) – lowest by law.

Design-Negotiate-Build – Negotiated Select Team or Competitive Sealed Proposals (Gov.) – prequalify

-optional compensation of Cost Plus Fixed Fee (Labor/Time and Materials) if there are unknowns like cost outset

-Fast-track by hiring contractor before dwgs are finished

FASTER

Design-Build

-All usually Fixed Fee aka Stipulated/Lump Sum, for time sensitive, when owner has building experience

Integrated Entity – one contract

Bridging – 2 Architects, 1 as agent to complete design package & 1 from design/build team as prime

FASTEST

Construction Management

-All Fast-track, for time sensitive, not usually the cheapest

CM-advisor or agent (owner becomes prime)

CM-Multiple Prime (subs)

Fixed Fee aka Stipulated/Lump Sum

CM-contractor (as prime) – fastest, Construction Manager at Risk

Many Prime (primes/trades and their subs)

GMP (guaranteed maximum price) or Cost Plus Fee

[Source: http://www.areforum.org/forums/showthread.php?220388-list-of-Project-Delivery-methods-and-contracts]